BUSINESS PRINCIPLES

Ted's new company is experiencing a steady decline in profit. He needs external financing to prevent his company's profits from declining further. Considering the fact that he wants to exercise sole ownership and control over the firm for as long as possible, Ted is likely to find angel investors who are interested in helping him meet his financial needs.

ANSWER: 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 living in low-income countries.

ANSWER: FALSE

The ethical dilemma involves clear misconduct in the workplace

ANSWER: FALSE

The most common type of corporation is an S corporation.

ANSWER: FALSE

The consumer market is a basket of goods and services in which the consumers' price index CPI measures the change in weight of an average of prices over time created by the U.S. Labor of Statistics

ANSWER: T

In the context of consumerism smart businesses view customers' complaints as an opportunity to create better products and stronger relationships.

ANSWER: TRUE

In the context of small businesses and the economy of a country, entrepreneurship rates are significantly lower in countries where it is hard to get fired.

ANSWER: TRUE

In the context of the U.S. economy, small firms tend to be effective innovators because of the presence of revolutionary new ideas.

ANSWER: TRUE

In the context of the barriers to international trade, the infrastructural differences between the two countries fall into the category of economic differences.

ANSWER: TRUE

One of the disadvantages of general partnerships is the lack of continuity.

ANSWER: TRUE

Small businesses often have an advantage in foreign markets where customers want to deal directly with a company's top management.

ANSWER: TRUE

Studies cited by the Wall Street Journal suggest that face-to-face communication 30% comes from the meaning of the tone

ANSWER: TRUE

Sustainable development means that we as environmentalism throughout the business decision-making processes

ANSWER: TRUE

The most basic form of a partnership is known as a general partnership.

ANSWER: TRUE

Which of the following statements is true of organizational barriers to communication?

ANSWER: They are hard to change.

The Fed requires that all of its member banks hold funds called reserves equal to a state's percentage of deposits held by customers.

ANSWER: This percentage is called the reserve requirement.

FabHotels is a hotel aggregator that buys budget hotels that succumb to financial losses and then refurbishes them under the company's brand name. Fabotels recently purchased Ravine Comforts, a small lodge that was running into huge debts. The business deal between Fabotels and Ravine Comforts exemplifies a(n) _____.

ANSWER: ACQUISITION

A benefit of using active voicing in business communications is accountability

ANSWER: TRUE

According to research from the Epic Resources Center organizational culture is the most influential in shaping the ethical conduct of individual employees

ANSWER: TRUE

Although a trade deficit signals the wealth of an economy that can afford huge amounts of corn products a large deficit can be a staleway

ANSWER: TRUE

If an email is intended for a recipient who is likely to feel negative about it, you should end the email on a positive note.

ANSWER: TRUE

In the context of international trade, often countries with the highest trade barriers have the least competition.

ANSWER: TRUE

Philanthropy includes all business donations to nonprofit groups except for employee time

ANSWER: FALSE

In the context of social responsibility corporations that don't have profits as a first priority are referred to as a D corp

ANSWER: FALSE

Diana has to present air pollution and its effects at a conference. She begins the presentation by asking the conference participants to imagine themselves carpooling to work instead of using their individual vehicles. This small exercise helps the participants to relate to the topic at hand. In the given scenario, Diana uses _____ to open her presentation.

ANSWER: AUDIENCE INVOLVEMENT

In the Context of Monterey policy when a company's economy contracts the feds typically decrease the money supply

ANSWER: F

In the context of competitive advantage, the value of the first best choice represents the opportunity cost of producing a second product

ANSWER: F

In the context of monetary policy when a Fed reduces a discount rate the banks will have to obtain funds that higher the cost

ANSWER: F

Reserve Requirements is fed that requires banks' oldest funds percentage of deposits called by their customers.

ANSWER: F

The amount of input divided by output equals productivity

ANSWER: F

A corporation can be a partner in a partnership.

ANSWER: FALSE

A limited partnership is an agreement between two or more individuals to operate a business as co-owners for a limited period of time.

ANSWER: FALSE

A social audit is a systematic evaluation of the positive and negative use of public business and firms

ANSWER: FALSE

Based on statistics from the U.S. Small Business Administration (SBA), small businesses account for 78% of all private sector employees.

ANSWER: FALSE

Contingent expenses are costs that a firm incurs in the regular functioning of its business

ANSWER: FALSE

Economists declare a recession when GDP decreases for 6 consecutive orders

ANSWER: FALSE

Ideally opening up your business presentation will summarize key points

ANSWER: FALSE

In spite of the growth of many high-population countries being weak, most of these nations remain ahead of the U.S in terms of development and prosperity

ANSWER: FALSE

In the context of global trade exchange rate can directly measure global commoners

ANSWER: FALSE

In the context of self-reliance, when things go well, people with an internal locus of control feel that the actions of other people have led to their success.

ANSWER: FALSE

All natural resources tend to rise with low demand and high supply

Answer: F

Speed-to-market is the rate at which a company's competitors copy its new product innovations.

Answer: F

_ illustrating the theoretical relationship between taxation resulting levels of govt tax revenues supply curve, the demand curve, the Laffer curve

Answer: Laffer Curve-tax rate vs tax revenues

Digital natives only spend when a business offers them value.

Answer: T

The Central Banking system of the U.S is the federal reserves

Answer: T

The Federal Trade Commission

Answer: actively promotes fair competitive practices.