BUAD-201-02
The individuals who are elected by stockholders of a corporation to represent their interests are known as _____.
A board of directors
A corporation is a form of business ownership in which:
A business is considered a legal entity that is separate from its owners
A sole proprietorship is a form of business ownership in which:
A single owner actively manages a company
Grettzee, a musical instruments manufacturing company, imports high-quality maple wood from Resumbro, a South Asian country where maple is found in abundance. Which of the following is most likely to have influenced Grettzee's decision to import raw materials from Resumbro?
Access to factors of production
In the context of key economic considerations when entering a foreign market, which of the following is an example of the transportation infrastructure in a country?
Airports
Which of the following countries most likely has a comparative advantage
An Asian country that produces quality automobiles with little opportunity cost compared to other countries
Iris has been told by her boss that the company is planning to lay off some people and that only one employee in her department will be retained. In order to keep her job, Iris has to sabotage the professional image and good work of her colleagues or she will be laid off. This situation is an example of _____.
An ethical dilemma
Which of the following is a similarity between venture capital firms and angel investors?
Both invest in start-up companies with high growth potential in exchange for a share of ownership.
Melvin and Neil run a pawnshop in their neighborhood. They offer loans to individuals in exchange for personal items of higher or equal value, which are used as collateral. If an individual is unable to repay the loan, Melvin and Neil then sell these items at higher rates. In this scenario, Melvin and Neil's pawnshop is an example of a _____.
Business
A(n) _____ refers to a group of countries that have eliminated tariffs and harmonized trading rules to facilitate the free flow of goods among the member nations.
Common Market
Unless they face major trade barriers, the industries in any country tend to produce products for which they have a _____, which means that they tend to turn out those goods that have the lowest opportunity cost compared to other countries.
Comparative Advantage
_____ includes all business donations to nonprofit groups, including both money and products.
Corporate Philanthropy
Treslex, a retailer, employs Olympic hopefuls in its stores through the Olympic Job Opportunities Program. It offers athletes full-time pay and benefits for a flexible 20-hour workweek in order to accommodate demanding training schedules. This is an example of _____.
Corporate Responsibility
During a period of inflation in the United States, the Federal Reserve sells treasury bonds. Buyers of these bonds write checks to the Fed, and the Fed cashes these checks from banks. Given this information, the banks will most likely:
Cut back on the loans they make
Lefrada, a luxury watchmaker, stops production for three months and lays off 30 employees because of a sharp decline in its sales during the period of recession. In the given scenario, the laid off employees are facing _____.
Cyclical Unemployment
A newly appointed government in the United States requests Congress to raise the amount of money that the government can borrow. This borrowed money is intended to be used to cover the costs of the major policies that the government plans to implement. In this scenario, the government has asked the Congress to hike its _____.
Debt calling
CuberTech, an American electronics company, set up its production facilities in Chuaga, an Asian country, because the workers in Chuaga work for about one-third the pay of American workers. This substantially lowered CuberTech's cost of production. This scenario is an example of _____.
Direct Investment
Cella, a clothing manufacturer, has licensed Crux Corp. to market and sell its products. This is an example of a _____.
Distributorship
Meria Het, a footwear company, designs formal and casual footwear for White American women. However, to increase its customer base, it introduces a line of footwear for Chinese women in the United States, even though they form only a small market in the country. Which of the following dimensions of the social environment does this scenario exemplify?
Diversity
Debbie, along with Mick and Rory, decided to start a new catering business. She invested her time, money, and efforts in the project, and she directly managed the business development process. In this scenario, Debbie is most likely a(n) _____.
Entrepreneur
In the context of the history of American business, the _____ emerged in the second half of the 1800s, by building on the foundation of the industrial revolution.
Entrepreneurship era
In a business cycle, the _____ is a period of robust economic growth and high employment.
Expansion
_____ refers to selling products in foreign nations that have been produced or grown domestically.
Exporting
A(n) _____ type of communication channel has the highest level of channel richness and is used when the message is personal, emotional, or high-priority.
Face-to-face meeting
In the context of federal debt, if spending is lower than revenue, the government incurs a budget deficit.
False
Socialism is an economic system that encourages privatization and believes that all enterprises should be publicly owned.
False
The Global Entrepreneurship Monitor (GEM) shows that people living in high-income countries tend to be much more willing to start their own businesses than people who live in low-income countries.
False
It is possible to establish a corporation by a simple verbal agreement.
False
Rudy owns a small metal fabrication business that employs 23 workers. As the owner of a small business, one of the major advantages that Rudy will enjoy when competing against larger firms will be a lesser burden of complying with government regulations.
False
The best employers do not go beyond the law when it comes to providing a good working environment to employees.
False
During the production era, managers focused mostly on customer satisfaction and not on production efficiency.
False-During the production era, managers focused on efficiency, and the customer was an afterthought.
The value of all natural resources tends to rise with low demand, high supply, or both.
False-The value of all natural resources tends to rise with high demand, low supply, or both.
U.S. corporations are forbidden to offer bribes since 1977 under the _____.
Foreign Corrupt Practices Act
____ is the authority granted by a domestic firm to an overseas firm for the rights to produce and market its product or to use its trademark/patent rights in a defined geographical area.
Foreign Licensing
_____ refers to the unrestricted movement of goods and services across international borders.
Free Trade
Compared to the US , China and India have:
Higher gross domestic product growth rates.
Which of the following is a drawback of buying a franchise?
If the national brand suffers, so does the franchisee.
Real gross domestic product (GDP) measures the total value of final goods and services produced within a nation's physical boundaries over a given period of time, adjusted for:
Inflation
The basic mission of the _____ is to promote global economic cooperation and stable growth.
International Monetary Fund
Identify a true statement about dynamic delivery.
It begins and ends with preparation
Which of the following statements is true of profit in a business?
It is the financial reward that comes from starting and running a business.
Which of the following statements best describes the role of the government in a capitalist economy?
It monitors the competition to ensure compliance to regulations.
Which of the following statements is true about the Fed?
It regulates financial institutions
To achieve its basic mission of promoting international economic cooperation and stable growth, the International Monetary Fund (IMF):
Lends money to member nations
Alice, the global marketing director of a multinational electronic goods manufacturing firm, is assigned the task of expanding her firm in new markets. She learns that hiring labor is expensive and that the required technical manufacturing equipment is unavailable in the international market. In this scenario, which of the following is most likely affecting the global trade of Alice's firm?
Limited access to factors of production
In communication, the term _____ refers to any interference that causes the message one sends to be different from the message one's audience understands.
Noise
When a country produces more of one good, it must produce less of another good (assuming that resources are finite). The value of the second-best choice—the value of the production that a country gives up in order to produce the first product—represents the _____ of producing the first product.
Opportunity cost
Identify the type of communication barrier that arises when operational managers are not allowed to communicate with the senior managers or the top-level management in a firm?
Organizational Barrier
Which of the following aspects of a limited partnership differentiates general partners from limited partners?
Participation in management of a company
In the context of supply and demand, which of the following statements is true of the free market system?
People tend to buy more products with lower prices
During the English class, Ingrid was having difficulty paying attention to the presentation given by his professor as the classroom was too cold and his table was creaking. In this case, the cold and the table are both _____ to communication.
Physical Barriers
The arguments for and against trade restrictions are called _____
Protectionism
In the context of international trade restrictions, _____ are limitations on the amount of specific products that may be imported from certain countries during a given time period
Quotas
In a business cycle, the _____ is the transition period between contraction and expansion.
Recovery
Which of the following statements is true of business emails?
Response to emails should be as prompt as possible
Olivia is a part-time worker at a jam-producing company in her village. Her job entails picking and cleaning grapefruits. Because grapefruits grow only in winter, Olivia is unemployed for most part of the year. In the given scenario, Olivia's unemployment exemplifies _____.
Seasonal Unemployment
Iris has been told by her boss that the company is planning to lay off some people and that only one employee in her department will be retained. In order to keep her job, Iris has to sabotage the professional image and good work of her colleagues or she will be laid off. This situation is an example of _____.
Social Responsibility
Bresnee, a European automobile company, plans to sell its automobiles in Lador, an Asian country. To do this, Bresnee has to make certain modifications in its marketing strategy such as using the regional language of Lador in its advertisements. Without such changes, Bresnee would not be able to establish a market in the country. In the given scenario, Bresnee is most likely facing the barrier of _____.
Sociocultural Differences
Which of the following communication channels should be ideally be used when the content is uncontroversial and a quick response regarding relatively simple issues is required?
Texting
Which of the following firms supported by the Small Business Administration (SBA) provides free, comprehensive counseling for small businesses from qualified volunteers?
The Service Corps of Retired Executives
During a period of grave financial crisis in the United States, Congress is pressurized to raise the limit on the maximum amount of money the government can borrow. Congress increases the limit on the condition that it will implement sharp tax hikes and across-the-board spending cuts to compensate for the raise and to ensure that the overall budget deficit decreases. In this scenario, the measures implemented by Congress will most likely create:
The fiscal cliff
Consumerism is a widely accepted social movement. Proponents of this movement believe that _____ is a right of all consumers.
The right to be informed
Which of the following is an advantage of a C corporation?
The shareholders have limited liability in the firm
Which of the following is a characteristic of limited liability companies (LLCs)?
They are made to pay an annual franchise tax in many states
How do non-profit organizations play a critical role in an economy?
They play a critical role in the economy by addressing social issues and providing essential services.
Which of the following is a characteristic of entrepreneurs?
They risk their time,money,and other resources to start and manage their business.
Which of the following is the purpose of a written code of ethics?
To provide guidance to help employees make sound ethical decisions across a range of situations
Dominic feels that an incredible string of bad luck has affected his personal life. He also feels that his boss is subjecting him to unfair treatment at work for no fault of his own. Dominic's perceptions suggest that he has an external locus of control.
True
In the context of capitalist economy, the right to free choice directly feeds competition
True
Unfair business practices such as predatory pricing hinder capitalism from achieving its potential.
True
Stakeholders are any groups that have a stake—or a personal interest—in the performance and actions of an organization.
True
Capital, one of the factors of production, includes machines, tools, buildings, information, and technology.
True-Capital, a factor of production, includes machines, tools, buildings, information, and technology—the synthetic resources that a business needs to produce goods or services.
Value is the relationship between the price of a good or a service and the benefits that it offers its customers.
True-Value is the relationship between the price of a good or a service and the benefits that it offers its customers.
In the context of key economic considerations when entering a foreign market, the energy infrastructure in a country most likely includes _____.
Utilities
A person who reports illegal or unethical behavior within an organization is known as a(n) _________.
Whistle Blower
The Federal Trade Commission:
actively promotes fair competitive practices.
Before beginning her presentation, Niharika told her audience she would answer questions at the end of her presentation. Vincent walked in late during the presentation and began asking her questions. The ideal way for Niharika to handle this is by:
advising Vincent and reminding the audience that there is plenty of time for questions at the end.
Damien is a programmer in a software firm. He has recently received a promotion and an annual bonus. He believes that this is a result of random luck as he does not work very hard. Damien has _____.
an external locus of control
A Franchise Disclosure Document:
contains information about every aspect of the franchise agreement.
A general partnership avoids the problem of _________ endemic to corporations.
double taxation
While raising start-up funds from friends and family, it is:
essential to keep the relationship as professional as possible.
Loren LLC is a small bicycle store that competes effectively with much larger companies since it focuses exclusively on selling bicycles for senior citizens and orthopedic patients. The company has been successful since it has:
exploited a small but profitable market niche
A partnership
is a voluntary agreement under which two or more people act as co-owners of a business for profit.
Which of the following is a tip for dynamic delivery?
low down, listen to yourself, and stick to your allotted time.
The primary reason many people become entrepreneurs is to:
make more money
In the context of capitalism, describe the four degrees of competition with examples of each.
monopolies mono competition oligopoly perfect competition
In the context of the relationship era, leading-edge firms believe that:
satisfied customers can promote their business with more speed than promotional campaigns.
In challenging business decisions, a true ethical dilemma occurs when:
someone is forced to choose among bad options
Miguel has an idea for a new project management software application that will enhance the efficiency of his unit's operations. His supervisor has asked him to present his ideas to the entire unit. Miguel is excited about the opportunity, but also a little nervous because he has never given a presentation in public before. In order to reduce his speech anxiety, Miguel should _____.
take a sip of water, send himself positive messages, and visualize success
Which of the following would be an example of a corporation?
the owners of Octave Inc. are not personally responsible for the debts and obligations of the firm.
In the context of international trade, India, China, and the Philippines attract multibillion-dollar investments because:
they have a large cohort of technically skilled university graduates who work for about one-fifth the pay of comparable American workers.
A key reason most sole proprietorships remain relatively small is that:
they have limited ability to raise the funds necessary to finance growth
A key to a successful dynamic delivery is to :
vary your voice, expressions, and body language
Xavi develops a cell phone battery that can be charged by a solar panel and can run efficiently for up to three hours. His friends point out that it would be difficult to get cell phone manufacturers to adopt this new technology and that it could take a long time for people to start relying on it. However, Xavi is convinced that he can make his idea popular and successful. He plans to start a new company called EnerMob Inc. that would promote and sell the cell phone battery to the public. In this scenario, Xavi is said to be demonstrating _____.
vision
Which of the following is a difference between a C corporation and an S corporation?
A C corporation is double taxed, whereas an S corporation is taxed as a partnership.
Which of the following is an advantage of starting a business from scratch?
One does not have to deal with the prior owner's bad decisions and mistakes.
Which of the following should ideally be followed in one's presentation?
Tell the audience the key points before launching into the body of the presentation
Which of the following is a disadvantage of franchising?
The franchisee has no flexibility as it is required to follow the franchisor's procedures to the letter.
Small business start-ups are likely to find that getting commercial loans is:
difficult because commercial lenders are reluctant to give loans to firms that do not have an established record of successful performance.
Technological developments over the past two decades, such as the rise of the Internet and email, have:
given small business owners more flexibility in business management.
