Business Principles Midterm Quizzes

Haeben has decided to supplement his job application to Curious Corporation with a cover letter to the director of human resources. However, he knows neither the name nor the gender of the director he wishes to address. In this scenario, which of the following is the most appropriate way Haeben can address the recipient formally without displaying gender bias?

"Dear Director of Human Resources"

Truitt, the CEO of a marketing company, wants to invest in a new technology that could provide the company with a huge profit if it is successful. However, the board of directors is doubtful about the success of this technology and refuses to support Truitt's proposal. Which of the following communication barriers does Truitt face in the given scenario?

A perceptual barrier

In the context of the frameworks developed by experts for reaching ethical decisions, which of the following is one of the key principles of most decision guides? Correct answer:

Are the alternative solutions legal?

Taijo, a trend forecaster at Golden Co., is required to address all employees of the company on their findings for the next fiscal quarter. To help employees get a clear understanding of their proposed trends and to reduce pressure on them, Taijo uses several jokes and innuendos that are not received well by his managers. In the given scenario, which of the following communication guidelines does Taijo not take into consideration?

Avoid slang

In the context of social responsibility, _____are a new corporate structure that value profits, but not more than other priorities such as employees, suppliers, the community, and the environment.

B-Corps

Which of the following statements best supports the concept of countertrade?

Barter opportunities tend to increase during economic downturns.

What happens when a country earns more revenue than its total expenditure in the last fiscal year?

Budget surplus

The Federal Reserve sells treasury bonds during a period of inflation in the United States. Buyers of these bonds write checks to the Fed, and the Fed cashes these checks from banks. What will the banks most likely do given this situation?

Cut back on the loans they make

Palmer Textiles, a men's fashion retail store, is renowned for offering designer clothes for Latino Americans. However, it introduces a new line of designer clothing that especially caters to young African Americans to widen its customer base. Which of the following dimensions of the social environment is highlighted in this scenario?

Diversity

In the context of ethics and social responsibility, which of the following has become a core issue in the marketplace? Correct answer:

Doing business today without harming the ability of future generations to meet their needs

In the context of monetary policy, when is the Fed most likely to reduce the discount rate?

During recessions

Which of the following is most likely a nontariff barrier to international trade?

Establishing standards on how certain products are produced or grown

As globalization gains speed,intercultural communicationwill become less important to business success.

False

In the context of foreign direct investment, a partnership typically involves a less formal, less encompassing agreement than a strategic alliance. Correct answer:

False

In the context of social responsibility, a corporation that does not have profits as a first priority is referred to as a D-Corp.

False

In the context of strategies for reaching global markets, franchising is a strategy that can be used to seek foreign suppliers.

False

In the context of the history of American business, the "hard sell" emerged during the relationship era of marketing.

False

Which of the following is a duty of a socially responsible organization toward its customers?

Following laws that prevent anticompetitive behavior such as predatory pricing

Iggy has an upcoming meeting with Matt, a prospective client. Jerry, Iggy's senior manager, tells her to observe Matt's body language to determine whether the firm can expect business from him. To gauge Matt's interest in the conversation, Jerry tells Iggy to observe whether he turns his head inward while listening. Which of the following forms of nonverbal communication is Jerry referring to for gauging the outcome of the conversation between Iggy and Matt? Correct answer:

Gestures and posture

Which of the following communication channels should ideally be used whenyou need to reach a large audience with an important message?

In-person presentation

Which of the following statements is true of the Troubled Assets Relief Program (TARP)?

It ended up costing taxpayers far less than expected.

In the context of foreign direct investment, which of the following is a benefit of offshoring?

It has the potential for high profits.

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.

In the context of bringing the code of ethics of a company to life, which of the following statements is true when experts try to advocate a forceful, integrated approach to ethics?

It should be ensured that the company's ethics code is both local and global in scope.

May, the global marketing director of an international food 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 May's firm?

Limited access to factors of production

Which of the following statements is true about nonverbal communication?

People communicate through a wide range of facial expressions.

Which of the following factors is most likely to be covered by the social environment of business?

Population size

In the context ofeconomic considerations when entering a foreign market, which of the following is an example of the energy infrastructure in a country?

Power plants

Which of the following refers to national policies designed to restrict international trade, usually with the goal of protecting domestic businesses?

Protectionism

In the context of monetary policy, which of the following statements is true about the money supply?

The M1 money supply includes all currency plus checking accounts and traveler's checks.

In the context of the strategies for reaching global markets, which of the following is a disadvantage of foreign outsourcing?

The adherence to ethical standards by foreign producers is at risk.

Sassy Turtle, a clothing boutique, offers personalized customer service in its store and engages in post-purchase surveys to take feedback from its customers. It also gives promo codes with customized messages to its customers on their birthdays. The company values the importance of building long-term customer relationships. In this context, which dimension of the business environment is affected the most?

The competitive environment

In the context of strategies for reaching global markets, which of the following statements is true about direct investment?

The cost involved in direct investment is high.

Vroom Co., a ride share service agency, employs a strict code of conduct that is aimed at minimizing unethical practices within the company. The policy describes the actions that would be taken against anyone who violates the company rules. This ensures that the business faces minimal risk. In this context, which dimension of the business environment is affected the most?

The economic environment

Which of the following statements is true of effective business communication?

The speaker should seek and understand feedback from the speaker's audience.

Qiana Scuba Academy uses scuba simulation games to train its students in the basics of diving. It uses these games to make its students more effective and efficient. In addition, it also offers 12 months of scuba training. In this context, which of the following dimensions of the business environment is affected the most?

The technological environment

In the context of social responsibility, which of the following statements is true of benefit corporations, or B-Corps?

They do not have profits as their first priority.

Which of the following is a characteristic of entrepreneurs?

They risk their time, money, and other resources to start and manage their business.

A drawback of communism, which was adopted by some countries in the 1900s, was the inability of people to make basic choices such as where to work or what to buy.

True

Balance of trade incorporates trade with all foreign nations.

True

Globalization has made ethics and social responsibility more complicated for workers at every level.

True

In a capitalist economy,private-sector businesses are free todecide how much they will charge for their products.

True

Planned obsolescencerepresents a clear violation of social responsibility.

True

The personal needs, culture, and family of an individual influence his or her ethical choices.

True

Which of the following is a difference between the supply curve and the demand curve?

Unlike the supply curve, the demand curve for most goods and services slopes downward as it moves to the right.

In the context of American culture, which of the following is one of the dos for better listening?

Use your extra mental capacity to summarize what the speaker is saying.

Which of the following practices is most likely to strike the right tone in a business message?

Using common words

In the context of the dimensions of the business environment, which of the following is true of the competitive environment?

Vocal promoters of a firm's products can get the firm new customers effectively.

Identify a true statement about the debt ceiling.

Voting on the debt ceiling happens separately from voting on taxes and spending.

The _____ is aninternational cooperative of 188-member countries, working together to reduce poverty in the developing world.

World Bank

In the context of monitoring ethics and social responsibility, when firms monitor themselves, the process is referred to as ____.

a social audit

Farah, the head of sales for a technology company, always begins her presentations by sharing lesser-known facts and figures about the impact of the relevant issue. This helps the members of the audience get a better picture of the importance of the issue and how it can help the team sell more. Given this information, it can be assumed that Farah uses _____ to open her presentations.

a startling statistic

Hadas House, an international company, wants to hire a new engineer. It posts a job advertisement in a newspaper that states that the company is looking for an older individual who is creative and has a graduate degree inengineering. In the given scenario, Hadas House's advertisement shows _____.

age bias

Keith has excellent speaking skills. He is clear, well spoken, and very innovative. However, people are often distracted by his unusual mannerisms while speaking, such as his constant hand movement, his slouched posture, and his habit of swaying back and forth. In the given scenario, people get distracted because of _____ to communication.

body language barriers

A university has contracted a construction company to build a dining hall for its new campus. In the context of the factors of production, the heavy machinery and equipment used by the contractor in the construction process are referred to as _______.

capital

In the context of the legal and ethical dimensions of business conduct, it is illegal but ethical to ________.

collaborate with other medical clinics to guarantee low prices in low-income counties

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. Correct answer:

comparative advantage

In the context of keyeconomic considerations when entering a foreign market, the financial infrastructure in a country most likely includes _____.

credit

In the context of the competitive environment of business, customer satisfaction comes in large part from _______.

delivering unsurpassed value

Ebru & Co., a South Americaninternational corporation, wants to expand its customer base and decides to target the African market. As most African countries have comparatively low per capita income, the company introduces cheaper versions of its products that would appeal to the target market. In this scenario, Ebru & Co. is most likely facing the barrier of _____.

economic differences

Dai, along with Maddy and Rafe, have decided to start a new jewelry business. Dai invests her time, money, and efforts in the project, and she directly manages the business development process. In this scenario, Dai is most likely a(n) _______.

entrepreneur

Lakelyn and Sadler want to start a dance company that would provide local children with a space to learn and practice their talents. Lakelyn and Sadler are willing to invest their own resources in this project. In the context of the factors of production, the given scenario exemplifies the concept of _______.

entrepreneurship

In the context of global trade, the _____ is ameasurement of the value of one nation's currency relative to the currency of other nations.

exchange rate

In a business cycle, _____ is a period of robust economic growth and high employment

expansion

During a period of grave financial crisis in the United States, Congress is pressured 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 a(n) _______.

fiscal cliff

Jeff, the CEO of a company, always uses statements such as "The manager who listens to his employees will earn the respect of his employees" and "The best employee is he who effectively communicates to his boss" while addressing his employees. Given this information, it can be concluded that Jeff shows _____.

gender bias

Lalo is a data analyst at a finance company. He is highly regarded by his peers and supervisors, who always seek his advice while making important decisions for the company. In this scenario, Lalo can be classified as a(n) _______.

human resource

A coal mining company has employed around 250 miners who work 8-hour shifts every day. In the context of the factors of production, the miners can be classified as _______.

human resources

In the context of the legal and ethical dimensions of business conduct,providing rock-bottom prices only to distributors in underserved areas is _____.

illegal but ethical

Naime, a publishing company in the United States, sells the distribution rights of a book to its distributors in underserved areas at rock-bottom prices, while it sells the rights of the same book to distributors in other areas at normal prices. In the context of business behavior, Naime's business practice in this instance is _____.

illegal but ethical

Terrence, a glassblower, used to own a workshop in the 1750s where he made hand-blown glass bottles of high quality. However, due to technological advances, glass bottles started being mass-produced in factories, and Terrence's business began to decline. Given this information, it can be assumed that Terrence belonged to the _______. Correct answer:

industrial revolution era

In the context of customer satisfaction, a product has value when _______.

its benefits to the customer are equal to or greater than the price that the customer pays

A chocolate manufacturing company promotes a high-calorie product without providing complete information about the risks involved in its consumption. In the context of business behavior, the company's business conduct is ________.

legal but unethical

Taichi, an electric car brand, is known for its excellent autonomous driving capabilities and reduced emissions. However, most of its users complain of certain technical issues after a period of one year. The company is well aware of these issues because it has deliberately designed these products to fail after a certain period—a strategy to generate revenue through service charges. In the context of business behavior, Taichi's business conduct is ________.

legal but unethical

Cal's Hardware, a home and hardware company, was established post-World War II with the aim of catering to the demands of consumers looking for access to the best quality tools for any job. To differentiate itself from its competitors, the company developed a distinctive identity as the producer of quality tools. In the context of the history of American business, Cal's Hardware was most likely established during the _______.

marketing era

Rahat Inc. is a large clothing corporation that owns all the small clothing boutiques in Ebba and a few stores internationally. Any new clothing boutique that tries to establish itself in Ebba soon runs out of business because of the overpowering presence of Rahat Inc. This scenario is an example of a(n) _____.

monopoly

Rahul & Co. sells premium quality wine. The company owns 400 acres of land on which it has established a vineyard with a winery. In this scenario, the land owned by Rahul & Co. can be classified as _______.

natural resources

In the context of business communication, one should ________.

not use slang in either written or verbal communication

Chairs in an office that force visitors to sit at a lower level thanpresenter can create a(n) _____ to communication.

physical barrier

During her History class, Mabyn struggles to focus on the lecture given by her professor because the classroom is extremely hot. Also, the person next to her is chewing gum loudly. In this scenario, both the hot atmosphere in the classroom and the gum chewing are _____ to communication.

physical barriers

The economy of the country of Uba is under severe financial distress. However, over the last several months, the economy has gradually picked up, and employment levels are slowly going back to normal levels. Consumers are alsoparticipating in buying activities again. In this scenario, the economy of Uba is currently in the _____ phase of its business cycle.

recovery

The economic situation in Franklin, a North American country, gradually picks up after a severe financial downturn. Over a period of 20 months, businesses expand and employment levels rise. Consumers begin to engage in normal buying behavior. In this scenario, the economy of Franklin is currently in the _____.

recovery phase

Sydney was a computer (that is, a person who makes important mathematical calculations by hand) at a corporate firm. When the company adopted number-crunching software for the purpose of efficiency, Sydney's job became redundant. Therefore, she was laid off. The increased use of technology in most companies has made Sydney's skills inessential, and she has remained unemployed for a long time. In the given scenario, Sydney is facing _____.

structural unemployment

To strike the right tone while writing a business message, it is suggested that you should ________.

uses the active voice to facilitate concise communication

Kaholo, an employee at an online magazine, learns that the reason his colleague was asked not to pursue an article further was because the editor of the magazine was bribed by the concerned party to suppress the matter. Kaholo reveals this information to the chief editor and his colleagues and also reports it to the news. In this scenario, Kaholo is a _____.

whistle-blower

Valkyrie, a ticket salesperson at a movie theater, observes the manager misbehaving with a few customers. She brings the issue to the notice of the theater director, and the offender is immediately dismissed from their job. In this scenario, Valkyrie is a _____.

whistle-blower

Which of the following is an example of capital?

A truck used to transfer tools from one place to another for a construction company

Which of the following best describes a whistle-blower?

An employee who reports their employer's illegal behavior to the media

In the context of the right to private property, identify a true statement about capitalist economies.

Individuals have the right to will property to family members.

Which of the following is an example of a natural monopoly?

Public utilities

Eliza Corp., an American software development company, outsources its support operations to Madan, an African nation, because it has found that Madan has a large cohort of English-speaking college graduates who are ready to work for one-third the pay of comparable American workers. Which of the following is most likely to have influenced Eliza Corp.'s decision to outsource its support operations to Madan?

Access to factors of production

Which of the following statements is true of ethics?

Actions that are completely legal can still be unethical.

The _____ was an $825 billion economic stimulus package, passed by Congress, designed to turn the economy by cutting taxes, building infrastructure, and investing in green energy.

American Recovery and Reinvestment Act

When drafting an email using block paragraphs, you shoulduse single spacing between paragraphs.

False

The country of Pamelia is renowned for its rich cotton fields. It earns approximately $2.1 billion annually by selling cotton to other countries. Given this information, Pamelia is most likely involved in _____.

exporting

After the Federal Reserve cashed the checks that it received for selling government securities the funds of Boyne City Bank decreased. As a result, Boyne City Bank had to cut back on its loan offerings as it did not have sufficient funds to provide loans. This is an example of ________.

open market operations

The number-one goal of any business is tocontribute to society.

False

Landry starts his presentation on a new project by comparing the project to a puppy. He states that just as a mother dog is careful while taking care of a new puppy, managers should be careful during the initial stages of a project. In the given scenario, which of the following types of hooks does Landry use to open his presentation?

A simile

The government of Tadahiro, a Central American country, learns that low-priced mineral imports from Oda, a European country, are affecting the sales of domestic textile companies. The Tadahiro government decides to levy a 7% tax on all mineral goods imported from other countries. In this scenario, which of the following trade restrictions does the Tadahiro government impose?

A tariff