Business 101 Midterm Exam

Which of the following approaches, which emerged during the marketing era, continues to influence business decisions today as global competition heats up to unprecedented heights? A consumer focus that permeates successful companies in every department, at every level A focus on aggressive persuasion designed to separate consumers from their cash A narrow focus on using digital resources to gather customer information A focus on increasing profits that result in a high standard of living for people across the country

A consumer focus that permeates successful companies in every department, at every level

In the context of the economic environment of business, which of the following is most likely to reduce the risks of running a business? A high federal tax rate Legislation that contradicts enforceable contracts A low level of corruption Absence of government agencies dedicated to monitoring business practices

A low level of corruption

social audit

Andrew, an employee in a corporate company, is asked to conduct a systematic evaluation of how well the company is meeting its ethics and corporate responsibility goals. In the given scenario, Andrew is most likely asked to do a _____ focus groups philanthropists prosumers social audit

In the context of globalization, which of the following is the most challenging issue faced by companies and individuals that are involved in international business? Low span of control Lack of human resources Whistle-blowing Bribery

Bribery

In the context of social responsibility, which of the following is a way of contributing to nonprofits? Consumerism Green marketing Cause-related marketing Planned obsolescence

Cause-related marketing

Which of the following can be considered a business? Albertos, a state-funded firm that specializes in providing free consultations for at-risk teens Mender, a private charity organization that donates clothes and notebooks to orphans Davent, an online shopping portal that offers discounted prices on clothes Javonson, a federal agency that establishes and enforces environmental regulations

Davent, an online shopping portal that offers discounted prices on clothes

Vertibram, a packaged food company, solely manufactured food products that catered specifically to the Islamic community in the United States. However, after facing a stagnation in its sales, the company started manufacturing other products that contained pork to cater to the whole community. Which of the following dimensions of the social environment does this scenario exemplify? Ethics Age Diversity Social responsibility

Diversity

Larry is part of the Board of Governors that manages U.S. monetary policy. He has been elected by the President to serve a single 14-year term. In addition to setting the monetary policy, he is responsible for extending banking services to commercial banks. In this scenario, Larry is most likely part of the _____. Federal Reserve Department of Commerce Bureau of Economic Analysis U.S. Treasury

Federal reserve

In the context of ethics and social responsibility in the global arena, U.S. corporations are forbidden to offer bribes since 1977 under the _____. Foreign Corrupt Practices Act Sarbanes-Oxley Act Landrum-Griffin Act Corruption of Foreign Public Officials Act

Foreign Corrupt Practices Act

In the context of emerging economies, which of the following statements is true of the BRIC countries? India's subscriber base for cell phones has grown explosively over the past five years. Brazil has a high employment rate and stands out to be the lone bright spot among the BRIC countries. China is the only BRIC country that has an economy larger than the United States. Over the past few years, China has seen a rapid growth in the number of low-wage manufacturing jobs.

India's subscriber base for cell phones has grown explosively over the past five years.

___ range from simple barter to a complex web of exchanges that end up meeting the needs of multiple parties. Individual outsourcing agreements Individual countertrade agreements Individual direct selling agreements Individual licensing agreements

Individual countertrade agreements

Prost was the first automobile company in the world to introduce child safety locks in its vehicles. This feature soon became a major selling point for consumers all over the world. As a result, other automobile companies began providing a similar feature in their vehicles. In this scenario, which of the following is most likely to have influenced other companies to install child safety locks? Reduced risk Establishment of new industries Inflow of innovation Access to factors of production

Inflow of innovation

In the context of factors of production, which of the following statements is true of capital? It includes all inputs that offer value in their natural state. It does not include money. It involves the creative contributions of people working within an economy. It is not a fundamental resource for nonprofits

It does not include money

Identify a true statement about foreign licensing. It is the costliest form of direct investment. It is one of the means to seek foreign suppliers. It is especially common in the food and beverage industry. It is the most basic level of international market development.

It is especially common in the food and beverage industry.

In the context of the fundamental principles of a free market system, which of the following statements is true of the equilibrium price? It refers to the price at the point where the supply curve and the demand curve intersect. It is the price at which a seller breaks even. It is the point at which the final cost of production equals the price of the raw materials used for a product. It refers to a situation where the cost price of a product is equal to its selling price.

It refers to the price at the point where the supply curve and the demand curve intersect.

In the context of the free market system, which of the following market structures has a low barrier to entry? Natural monopolies Oligopolies Monopolies Pure competitions

Pure competitions

The _____ limits conflict-of-interest issues by restricting the consulting services that accounting firms can provide for the companies they audit. Sarbanes-Oxley Act Blaine Act Landrum-Griffin Act Dawes Act

Sarbanes-Oxley Act

Heleus Oil & Gas Company routinely performs emission tests to keep a check on the emissions produced by its corporate operations and find new ways to reduce them significantly. In this scenario, Heleus Oil & Gas Company is tracking its: Scope 1 emissions. Scope 2 emissions. Scope 3 emissions. Scope 4 emissions.

Scope 1 emissions.

Leading-edge companies have focused on customer satisfaction, with a goal to develop long-term, mutually beneficial relationships with customers. Which of the following dimensions of a business environment does this illustrate? The economic environment The global environment The social environment The competitive environment

The competitive environment

Which of the following dimensions of a business environment embodies the values, attitudes, customs, and beliefs shared by groups of people? The economic environment The technological environment The competitive environment The social environment

The social environment

Ryron Bank, a private bank, introduced Internet banking facilities for its customers after the government demonetized hundred dollar bills. Customers who were reluctant to use credit cards for their daily purchases were enthusiastic about this new option. In this context, which dimension of the business environment is affected the most? The social environment The technological environment The political environment The global environment

The technological environment

Which of the following statements is true of nonprofit organizations? They are usually in the business of financial gains. They employ people and take in revenue. They do not produce goods and services. They are not business-like establishments.

They employ people and take in revenue

The government in the town of Rodenham has granted exclusive rights to a few telecommunications companies to operate in specific geographic areas. The companies have to provide their services in the areas allotted to them, and no company is allowed to extend its services to the areas allotted to its competitors. This system has been put in place because it would be inconvenient for each company to build its own infrastructure in all areas. The given scenario exemplifies: pure competition. a natural monopoly. monopolistic competition. an oligopoly.

a natural monopoly.

A _____ refers to the overage that occurs when more money flows into a nation than out of that nation. balance of trade surplus balance of trade deficit balance of payments surplus balance of payments deficit

balance of payments surplus

When the Fed sells securities, _____ banks become flush with funds banks cut back on the loans credit becomes readily available the money supply increases

banks cut back on the loans

In 1982, the total expenditure of the government of Kargenia, a European country, exceeded its revenue by a substantial amount. This forced the government of Kargenia to borrow funds to meet its legal obligations. In this scenario, the government of Kargenia incurred a _____ in 1982. fiscal drag budget deficit debt brake revenue backlog

budget deficit

Danny is a citizen of Finiz, a North American country. He is able to run his handicraft business without any intervention from the government because Finiz has an economic system that encourages private ownership. He is able to make independent decisions for his business and has the freedom to decide the prices of his products. In this scenario, Finiz most likely has a _____. socialist economy totalitarian economy capitalist economy communist economy

capitalist economy

One of the ways by which companies can show their responsibility toward the environment is by reducing their _____. anaerobic digestion leapfrogging carbon footprint green procurement

carbon footprint

Rupert is an individual who believes in contributing to the community by using eco-friendly products. In the context of universal ethical standards, Rupert most likely possesses the core value of _____. trustworthiness fairness citizenship assertiveness

citizenship

When the industries in a country tend to produce products that have the lowest opportunity cost relative to other countries, the country most likely has a _____. comparative advantage balance of payments surplus positive balance trade surplus

comparative advantage

Krempe Foods, a fast-food chain in Dallas, gives paramount importance to consumer feedback and has a well-established consumer feedback system. Given this information, it can be said that Krempe Foods supports ___ integralism. protectionism. neorealism. consumerism.

consumerism

In the context of economic systems, the two key phases of a business cycle are: stagflation and hyperinflation. depression and retrieval. contraction and expansion. recession and deflation.

contraction and expansion.

Homebound, a home decor company, annually donates blankets to various nonprofit organizations. These nonprofit organizations distribute the blankets among the poor. Given this information, Homebound's gesture is an example of: consumerism. corporate responsibility. corporate philanthropy. freeganism.

corporate philanthropy.

Trexlex, a sports 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 to accommodate their training schedules. In the context of a business's responsibility toward the community, this act by Trexlex exemplifies _____ corporate opportunism corporate relativism corporate etiquette corporate responsibility

corporate responsibility

The country of Trevanvia goes through a period of recession, which leaves a large number of people unemployed due to extensive layoffs by companies. The companies use the strategy of job termination to cut down their costs and reduce their output as the people are now more cautious with their spending. In the given scenario, the layoffs exemplify _____. seasonal unemployment structural unemployment frictional unemployment cyclical unemployment

cynical employment

During an especially difficult year of weakening financial conditions, the government of Geriva, a European nation, borrows money to meet its financial obligations. However, once the borrowed amount reaches a certain limit, the government is not allowed to borrow more money. If this was to happen in the United States, it could be said that this is because the government has hit the _____. fiscal cliff reserve requirement debt ceiling price ceiling

debt ceiling

Boson Corp., an American software development company, wants to expand its business in international markets. Therefore, it buys property in Greitch, a South Asian country, and sets up a production facility despite the high costs involved. In this scenario, Boson Corp. is most likely involved in _____. foreign franchising countertrade exporting direct investment

direct investment

Rolliand Bank is going through a financial crisis. Therefore, it takes a loan from the Federal Reserve. The bank has to repay the loan within a year, and it also has to pay a monthly interest of 6% to the Fed. In this case, the 6% interest rate that the Fed charges from Rolliand Bank is the _____. prime rate nominal rate discount rate exchange rate

discount rate

A(n) _____ is a structure for allocating limited resources. dynamical system credit system economic system accounting system

economic system

In the context of international trade restrictions, a(n) _____ is a total ban on the international trade of a certain item. voluntary export restraint tariff embargo quota

embargo

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 relationship era marketing era production era

entrepreneurship era

Russia and China are both rich in natural resources and human resources, and both countries have a solid level of capital. Yet, neither country is wealthy. The missing ingredient seems to be _____. synthetic resources taxable income workforce entrepreneurship

entreprenuership

Welterwes, a multinational company, has 15 members in its top management. These executives have to abide by the same company policies as the other employees. However, when it came to light that the executives were not following the appropriate office timings and were abusing their power, the HR department had to pass new policies aimed specifically at the top management. These policies stated that the executives would lose a part of their monthly commission if they failed to abide by the company policies. Identify the dimension of the social environment that this scenario exemplifies. Ethics Income Age Diversity

ethics

In the context of global trade, the _____ is a measurement of the value of one nation's currency relative to the currency of other nations. liquidity ratio exchange rate countertrade ratio discount rate

exchange rate

Neminski, an Arab country, is renowned for its rich oil reserves. It earns approximately $1.3 billion annually by selling crude oil to other countries. Given this information, Neminski is most likely involved in _____. foreign outsourcing exporting foreign franchising countertrade

exporting

Susan, the Human Resources Director at Trangend Cosmetics, is responsible for recruiting, hiring, and training employees. In the context of the given scenario, Susan is a _____. factor of production mode of capital loyal advocate cause-related marketer

factor of production

In the context of universal ethical standards, being open-minded and not taking advantage of others exemplifies the core value of _____. responsibility fairness respect caring

fairness

The country of Ukanturk has been facing an economic downturn for two consecutive years. To revive the financial condition of the country, its government tries to influence the economy through taxation and spending decisions that are designed to encourage growth and increase employment. In this scenario, the government of Ukanturk is implementing its _____. monetary policy monetary policy fiscal policy investment policy supply-side policy

fiscal policy

Pyoiunalek's, a restaurant chain, markets and endorses its businesses in other countries by offering buyers the rights to launch and operate the restaurant in that country. It lends financial and marketing assistance to the buyers. In this scenario, Pyoiunalek's is employing the strategy of _____ to reach global markets. foreign franchising exporting direct investment importing

foreign franchising

Rubicon Inc., an American guitar manufacturing company, signed a contract with a supplier in Umreia, an Asian country, to manufacture guitars. Rubicon then imported these products and sold them in its markets under its own brand name. Rubicon did this because of the availability of cheap labor in Umreia that substantially cut down Rubicon's cost of production. In this scenario, Rubicon is most likely involved in _____ foreign direct investment foreign franchising foreign outsourcing foreign licensing

foreign outsourcing

Broche Technologies, a brand of electronic appliances, develops a new range of refrigerators that do not release chlorofluorocarbons. The company promotes these products as the most eco-friendly refrigerators in the market. In this scenario, Broche Technologies is engaging in _____ astroturfing greenwashing cause-related marketing green marketing

green marketing

Richard is a technical analyst at a marketing firm. He is highly regarded by his peers and supervisors who always seek his advice while making important decisions for the company. In this scenario, Richard can be classified as a(n) _____. capital good human resource entrepreneur natural resource

human resource

In the context of the barriers to international trade, the term _____ refers to a country's physical facilities that support economic activity. quorum embargo logistics infrastructure

infrastructure

Vertivius, a gaming device manufacturer, entered the gaming market only after conducting a thorough survey of the potential customer base. Vertivius waited for five years before introducing its unique product-the first handheld gaming device-in the market. It introduced this product after ensuring that it would be embraced by the customers. In this scenario, Vertivius: has a high speed-to-market. is a leading-edge firm. uses the concept of fast-laning. is a bleeding-edge firm.

is a leading edge firm

Promoting high-calorie/low-nutrient foods with inadequate information about the risks is a(n) _____ practice. legal but unethical illegal and unethical legal and ethical illegal but ethical

legal but unethical

When a business brings in less money than it needs to cover expenses, it incurs a _____. deferral loss depreciation bondage

loss

____ is a market structure with just a single producer completely dominating the industry. Oligopoly Monopoly Monopolistic competition Pure competition

monopoly

Twilight Glitters sells ornate diamond jewelry. The company obtains diamond ore from the Yakutia region of Russia. In this scenario, the ore obtained by Twilight Glitters can be classified as _____. human resources capital resources natural resources man-made resources

natural resources

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. money cost opportunity cost sunk cost differential cost

opportunity cost

Research from the Ethics Resource Center suggests that _____ has more influence than any other variable on the ethical conduct of individual employees. workplace diversity organizational culture sexual orientation socioeconomic background

organizational culture

In its role as a regulator, the Fed: maintains the federal government's checking account. influences the economy through taxation and spending decisions. oversees mergers and acquisitions. coordinates the check-clearing process for checks on behalf of banks.

oversees mergers and acquisitions.

In the context of foreign direct investment, a _____ is a voluntary agreement under which two or more people act as co-owners of a business for profit. franchisee partnership sole proprietorship golden parachute

partnership

In the context of economic considerations when entering a foreign market, which of the following is an example of the energy infrastructure in a country? Railroads Cell phone coverage Power plants Radio

power plants

A giant telecommunications company that was previously owned by the government of Sunzabia, a European country, is sold to an independent industrialist to ensure that the company is handled in a more efficient way. The given scenario exemplifies ___ privatization globalization a joint venture a coalition

privatization

In the context of the history of American business, during the _____, jobs became more specialized, increasing productivity and lowering costs and prices. entrepreneurship era production era marketing era relationship era

production era

In the context of monetary policy, the Fed is most likely to reduce the discount rate during: inflations. periods of investment recovery. periods of low money supply. recessions.

recessions

Nescat Autos, an automobile manufacturing company, developed a secondary market for its products in a foreign country. This allowed the company to minimize its losses when its primary market failed to generate enough revenue to benefit the company. In this scenario, which of the following is most likely to have influenced Nescat Autos's decision to set up a market in another country? Inflow of innovation Reduced risk Access to factors of production Growth of domestic industries

reduced risks

President Barack Obama spearheaded passage of a massive economic stimulus package, which was designed not only to create jobs but also to build infrastructure, with a focus on _____. reduced taxation eliminating corruption excessive regulation renewable energy

renewable energy

In the context of monetary policy, the _____ is a rule set by the Fed, which specifies the minimum amount of funds a bank must hold, expressed as a percentage of the bank's deposits. debt ceiling statutory framework reserve requirement fiscal drag

reserve requirement

Ethics refer to: the obligation of a business to contribute to society. legal codes written in the constitution. social movements that focus on key consumer rights. sets of beliefs about right and wrong.

sets of beliefs about right and wrong.

The obligation of a business to contribute to society is referred to as ____ planned obsolescence growthism societal consumerism social responsibility

social responsibility

Companies that step in with on-site day care programs for employees facing challenges such as caring for elderly parents are fulfilling their: stakeholder criterion. social responsibility. legal obligation. fiduciary duty.

social responsibility.

The government of Bakhraan, an Asian country, owns key industries that directly affect public welfare, such as healthcare and telecommunications. To fund public welfare schemes, such as free childcare and free education, the government levies high taxes on its citizens. In the given scenario, the economic system followed by Bakhraan is ____ capitalism socialism communism distributism

socialism

In Fidaro, a North American country, punctuality is considered a sign of integrity. On the other hand, in Gwary, an African country, punctuality is considered a sign of anxiety and is given less importance. This exemplifies: legal differences. political differences. economic differences. sociocultural differences.

sociocultural differences.

In the context of the competitive environment of business, the rate at which a new product moves from conception to commercialization is referred to as _____. power-to-cost speed-to-market on-site prototyping market base flow

speed-to-market

In the context of social responsibility, _____ include employees and investors who have a personal interest in the performance and actions of an organization. focus groups philanthropists prosumers stakeholders

stakeholders

Romernia, an Asian country, imported goods and services worth $700 million in the last fiscal year. It exported goods worth $400 million in the same year. The difference in the value of Romernia's imports and exports is known as _____. an absolute advantage the balance of trade a comparative advantage the balance of payments

the balance of trade

Macroeconomics involves the study of: spatial changes in the population of a country. the gross domestic product of a country. the competitive aspects of identical products. family incomes in a given region.

the gross domestic product of a country.

The term _____ refers to the shortfall that occurs when the total value of a nation's imports is higher than the total value of its exports. exchange rate balance of payments surplus trade deficit positive balance

trade deficit

Lily, a salesperson at a clothing store, observes the department head misbehaving with a customer. She brings the issue to the notice of the store manager, and the offender is immediately dismissed from his job. In this scenario, Lily is a _____. social auditor corporate philanthropist grandstander whistle-blower

whistle-blower