Intro To Business Test 1

Suppose a firm has $150,000 in sales revenues, and paid the workers $40,000, and the building and utilities cost another $30,000. The taxes due for the year were $10,000. The firm received a loan for $10,000 during the year. Calculate the firm's profits. Do not include a dollar sign, commas, or any decimal points in your answer.

$70,000

The two fastest growing business occupations are management and MIS. They are growing ---- percentage points faster than the average business occupation.

12%

Susan Doyle

9/11

Ponzi schemes and Pyramid schemes are similar because A Both require that new investors join to keep it going B Both pay returns that are well above market returns C Both require that investors continue to contribute money into the scheme D They are not similar at all

A Both require that new investors join to keep it going

Which of the following is legal, but unethical? A Cancelling the company's pension plan and stopping payments to retirees B Selling unpastuerized milk for human compsumption C Using the firm's petty cash fund to pay for your personal lunches D Paying an official in a foreign company to allow you to import your products to their country

A Cancelling the company's pension plan and stopping payments to retirees

Which of the following is NOT a factor to consider when choosing a foreign market to enter? A Weather and climate B Support infrastructure C Product competition D Business climate

A Weather and climate

An engineer discovers a design flaw in the airbags that have been installed in thousands of cars that have been sold around the country. This flaw could prevent the airbags from deploying in a car crash. He reports the flaw to his superior, but the company does nothing the information. He instead goes to the media and reports the problem anonymously. He is -----.

A Whistle Blower

When Hurricane Harvey, local businesses made several decisions that affected the people of Houston. Please select all of the decisions that could be considered unethical. Multiple answers: You can select more than one option A A gas station charged $18 a gallon for gas because of the shortages the city experienced. B A grocery store sold chicken for 15 cents a pound C A convenience store chared $24 a case for bottled water D Individuals with boats came from neighboring states to rescue people trapped in the flood waters E A local restaurant owner donated catering services to a young couple whose wedding was disrupted by the storm F A hotel charges reporters triple the price for hotel rooms in the days following the storm G A furniture store in Houston allowed displaced victims to sleep on new matresses in his store

A,C,F

Which of the following would NOT be included in current GDP? Pick all that apply. A The sale of a dress at a consignment shop B The sale of a box of Kleenex at the grocery store C The sale of a Toyota produced in Kentucky and sold in Texas D The sale of a Ford produced in Canada and sold in Canada E A workbench that was produced last year but not sold until this year. F The sale of fabric to a pillow manufacturing plant.

A,D,E,F

Ian Jenkins suggests bringing a Career Outline with you to meetings with your network rather than a traditional resume. The Career Outline includes all of the following EXCEPT: A:Your work experience B:Your favorite areas of interest C:Your preferred work environment D:Your strongest skills

A: Your work experience

Which of the following would most likely be studied by a macroeconomist? A The market for Christmas trees in Argentina B The growth rate of the economy of China C The labor market for professional basketball players in the NBA D An individuals decision to purchase a car

B The growth rate of the economy of China

Suppose the US government is considering placing a tariff or quota on imported cars. Which of the following statements is NOT true regarding tariffs and quotas? A Tariffs and quotas both increase the price of foreign cars in the US B US car producers only benefit from the tariffs because it allows them to charge more for the US cars C A tariff is a tax on imported cars and a quota is a limit on the number of cars that may be imported D Domestic car producers would like to see either a tariff or quota on imported cars

B US car producers only benefit from the tariffs because it allows them to charge more for the US cars

__________ is the organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy society's needs.

Business

Compared to big business, small business contributes to the overall economic vitality of the US in all of the following ways EXCEPT: A Promote more innovation B Provide more first jobs C Enjoy more economies of scale D Generate more new jobs

C Enjoy more economies of scale

Austin Yoder began his international tea business in Taiwan. He gave three suggestions for succeeding in international business. Which of the following was NOT one of his suggestions? A Think international early B Pick a partner that complements your weaknesses C Pick a product you already know well D Have a local mentor

C Pick a product you already know well

hile eating out in a restaurant, you overhear two of your co-workers talking about confidential financial information of a prominent client of your firm. Do you: A Ignore it B Report it to your supervisor at work C Talk to your co-workers about confiddentiality with respect to client information and tell them about what you overheard

C Talk to your co-workers about confiddentiality with respect to client information and tell them about what you overheard

Ian Jenkins recommends asking your network for advice about your career, rather than for leads on jobs. He says this improves your chances for finding a job for all of the following reasons, EXCEPT: A:Your confidence will increase B: You will get valuable instight into the career fields in which you are interested C: People are more apt to give advice than they are to help D:Your talents will gain exposure to people who can help you

C: People are more apt to give advice than they are to help

Some skills I will develop by studying business include all of the following EXCEPT: A: Project Management B: Public Speaking C: Texting D: Time Management

C: Texting

Which of the following businesses ventures might be considered social entrepreneurship? A A neighborhood convenience store that is part of a national chain B A warehouse company that donated a truckload of goods to Hurricane Harvey victims C A neighborhood restaurant that sponsors a Little League baseball team D A small consignment store that was formed to hire, train and employ people with disabilities

D A small consignment store that was formed to hire, train and employ people with disabilities

Who is responsible for ethics in an organization? A Senior management B The employees C Human resources D All of the above

D All of the above

Which of the following factors in picking a foreign market was not mentioned in Video 2.4 by the Thai businessman for why he chose to do business with Australia A The products would sell well in the Thai market B The business climate with respect to the cooperation of the Australian government was compatible C There were no similar products being sold in the Thai market D He was comfortable living and working in Australia

D He was comfortable living and working in Australia

Your company produces and sells widgets in the US. They were wildly popular for about 5 years, but are waning in popularity. Which of the following is the best rationale for your business to enter a foreign market? A Children everywhere will love them B It mitigates market risk C To improve competitiveness D To extend the sales life of the widgets

D To extend the sales life of the widgets

___________ is the study of how wealth is created and distributed.

Economics

Carson, Scott and Eric form a partnership to do tax returns for households. Eric, ignoring the protests of his two partners, signs a contract to perform an audit for the local school district. The two partners are very upset by this contract because it is out of the scope of the firm's general business. The partnership is unable to perform the audit adequately and is sued by the school district. Who is liable for the damages if the lawsuit is successful? A:No one, the contract was invalid because not all three partners agreed to it B:Only the parternship, not the partners individually C:Only Eric, as he is the one who signed the contract D:All three partners

D: All three partners

Two young entrepreneurs currently distribute their product, the spinning lollipop, throughout the United States through a large multinational chain of grocery stores. They are considering trying to sell their product internationally. Which strategy might be most successful for this pair? A Partnering B Joint ventures C Franchising D Piggybacking

D: Piggybacking

If your professor brings a candy bar to every person in your class, then scarcity doesn't exist in your class that day. (T/F)

False

It appears that the primary reason President Trump is introducing new tariffs on steel and aluminum is to increase government revenues.(T/F)

False

Ponzi schemes are legal as long as the investors continue to be paid. (T/F)

False

Suppose the Japanese yen becomes stronger relative to the Australian dollar. This means the Japanese can expect to export more to Australia. (T/F)

False

Suppose your firm's code of ethics contained a provision that said that "If any employee divulges the secret formula to our product, they will be subject to fines, suspension without pay or dismissal from the company." This company most likely has an integrity-based code of ethics.(T/F)

False

Tariffs effectively raise the price of the goods on which the tariff is placed which generates more profits to domestic and foreign producers of the product. (T/F)

False

The Law of Supply indicates that supply is downward sloping because as prices fall, consumers are better able to afford more of a product and are more willing to buy more of a product.(T/F)

False

The main difference between a Ponzi scheme and a Pyramid scheme is that people investing in the Ponzi scheme are aware of what is happening, while those participating in a Pyramid scheme do not.(T/F)

False

Which of the following is NOT one of the modes of entry used by Starbucks when entering a foreign market? A Franchising B Joint ventures C Wholly-owned subsidiaries D Licensing

Franchising

_____________ is the total dollar value of all goods and services produced by all people within the boundaries of a country during a specified time period - usually a one-year period.

GDP

Suppose that on average, prices have risen a bit, but the price of Smart television sets have gone down. This means:

Inflation is happening, but something else is affecting the market for television sets

One of the strategies that a firm can use to enter a foreign market is to sell the rights to produce and sell a US product for a fee. This is called

Licensing

The beer industry is represented by a few large dominant firms and a variety of smaller firms. Beer is a differentiated good (not uniform) and beer companies have a strong degree of control over the price of their good. Barriers to enter the national market are high even through small microbreweries exist. The beer industry is most likely an _ industry.

Oligopolistic

During the economic periods of ___________ , the economy is at its highest point and unemployment is low, in addition, total income is high and consumers are willing to buy products and services.

Prosperity

A ----- is a form of business organization in which the owner maintains complete control over the business and is personally liable for any debts of the firm.

Sole Proprietorship

It is a beautiful sunny Saturday with mild spring-like temperatures. You have to choose between spending your afternoon playing tennis or studying for your economics exam. If you choose to study for your economics exam,

The opportunity cost of giving up the tennis game is higher because the weather so good

In this video, the speaker asserts that Hong Kong is a very wealthy country because it allows unilateral free trade. (T/F)

True

Which of the following is not a factor of production? a. Land b. Services c. Labor d. capital

b. Services

The most personal determinants of our behavior are our ---------.

Values

Which of the following best represents the three types of business organizations today? a. Financial, sales, and product creation b. Services, marketing intermediaries, and manufacturing c. Service, sales, and manufacturing d. Purchasing, advertising, and manufacturing

b. Services, marketing intermediaries, and manufacturing

Check My Work Which of the following best describes the relationship between productivity and economic growth? a. An increase in productivity results in economic growth because a larger number of goods and services are produced by a given labor force. b. An increase in productivity results in economic growth because there is a larger given labor force. c. An increase in productivity results in economic growth because there are more goods and services produced worldwide. d. A decrease in productivity results in economic shrinkage because there are fewer people in the labor force to produce goods and services.

a. An increase in productivity results in economic growth because a larger number of goods and services are produced by a given labor force.

Which of the following resources must a business combine in order to be successfully organized? a. Materials, human, financial, and informational b. Financial, location, materials, and analytical c. Location, product, utility, and price d. Materials, financial, informational, and organizational

a. Materials, human, financial, and informational

Our economic system provides freedom that allows businesses to _________

adapt

Which of the following most closely explains the purpose of economics as used by experts? a. Experts use economics to explain why one choice is better than another. b. Experts use economics to explain the choices we make and how these choices change as we cope with the demands of everyday life. c. Experts use economics to explain why some people have greater wealth than others. d. Experts use economics to explain what the government should do.

b. Experts use economics to explain the choices we make and how these choices change as we cope with the demands of everyday life.

a tractor

physical capital

Which of the following best explains the use of gross domestic product (GDP) in world economic analysis? a. It permits companies to compare their economic health against similar companies in other countries. b. The GDP figure facilitates comparisons between the United States and other countries because it is the standard used in international guidelines for economic accounting. c. It is not useful for comparing the GDP for one nation over several different time periods. d. It does not require any adjustments for inflation or deflation to make multi-year comparisons.

b. The GDP figure facilitates comparisons between the United States and other countries because it is the standard used in international guidelines for economic accounting.

Modern businesses must compete in a challenging technological environment. Which of the following most closely explains the technological challenges facing businesses? a. Modern technology makes it difficult to track and control sales to businesses in foreign countries. b. The current technological environment is undergoing constant change in manufacturing equipment, distribution of products, and communication with customers. c. Social media hinders the ability of businesses to keep their employees focused on the tasks they have to accomplish. d. Employees enter the workforce using social media and find it difficult to adapt and learn new methods of communication at the workplace.

b. The current technological environment is undergoing constant change in manufacturing equipment, distribution of products, and communication with customers.

Due to the forces of competition, providing products and services that meet the needs of customers is essential for a business to survive in a(n) _______ economy.

capitalistic

an airplane

physical capital

Jeff Bezos of amazon

entrepreneur

Steve Jobs would be considered a(n) -----, a factory supervisor is ------ and a assembly line worker is ------.

entrepreneur, human capital, labor

An accountant makes more money than a bookkeeper because the account has more ------.

human capital

professor doing research

human capital

Grad Assistant making copies

labor

a receptionist answering the phone

labor

a coal mind an apple orchard

land

_______________ are affected by anything that affects supply and demand.

market prices

When a business cycle enters a trough of a recession or depression, the federal government can use ________ and _______ to offset its effects.

monetary, fiscal policies

a computer

physical capital

According to the authors, many individuals, business leaders, and politicians, ______ that the future of the nation's economy ______________________ .

worry, could lead to a bumpy road and another recession