BUSN 1101 Test 1

A firm that expands through foreign franchising is called a franchise.

False

An ethical dilemma involves clear misconduct at the workplace

False

Companies that choose to export products to a foreign country spend more to enter that market than companies that choose to build their own factories

False

During the production era, managers focused mostly on customer satisfaction and not on production efficiency.

False

GDP measures the total value of all the imports and exports of a nation on a quarterly basis

False

In the context of business behavior, producing products that you know will break before their time is illegal and unethical

False

Socialism is an economic system that encourages privatization and believes that all enterprises should be publicly owned.

False

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

True

The central banking system of the US is the federal reserve

True

Value is the relationship between the price of a good or a service and the benefits that it offers its customers.

True

Demographic factors include the milestones achieved during the developments in telecommunications and other digital products.

false

Each year, the Federal Open Market Committee holds eight regularly scheduled meetings to make decisions about open market operations.

false

In the United States, nonprofits employ about one in hundred workers, accounting for less paid workers that the entire construction industry and less than the finance, insurance, and real-estate sectors combined

false

In the contect of the competitive environment of business, a product has value when its benefits to the customer are lesser than the price that the customer pays

false

A country has an absolute advantage when it can produce more of a good than other nations, using the same amount of resources.

true

A firm that contracts with foreign producers has an obligation to ensure that those factories adhere to ethical standards.

true

Although a trade deficit signals the wealth of an economy that can afford to buy huge amounts of foreign products, a large deficit can be destabilizing.

true

The balance of trade plays a central role in determining the balance of payments

true

The significance of the social dimension of a business environment is highlighted when a number of states--from Alabama to Nevada--make their local economies more appealing by providing special tax deals to attract new firms.

False

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

false

In the context of the competitive environment of business, unlike leading-edge firms, bleeding-edge firms offer products just as the market becomes ready to embrace them.

false

In the context of the strategies for reaching global markets, franchising is a strategy to seek foreign suppliers

false

In the context of your career choice, your own business skills cannot influence the level of your personal financial success

false

Online technology prevents leading-edge companies from offering customized products at prices that are comparable to standardized products

false

The amount of input divided by the amount of output equals productivity.

false

The financial assistance offered by the World Bank usually comes in the form of a high-interest loans

false

capital, one of the factors of production, includes machines, tools, buildings information and technology

true

in the context of capitalist economy, the right to free choice directly feeds competition.

true

in the context of social responsibilty, B-Corps recieve special tax treatment.

true

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

true

in the context of the legal and ethical dimensions of business conduct, practicing collusion with competitors is legal but unethical

true

planned obsolescence represents a clear violation of social responsibility

true

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

true