BUSN CH 1-3 QUIZZES

Which of the following is NOT a product? -A business profit -A veterinarian's treatment of a pet's injuries -A Dell personal computer -A checkup by a doctor

A business profit

Which of the following is an example of an intangible product? -A sandwich -A movie DVD -A sports car -A music concert

A music concert

Which of the following is likely to be an impact of a decrease in the value of yen in relation to dollar? -An increase in the demand for Japanese yen in the foreign exchange market -An increase in the number of Japanese tourists in the U.S. -An increase in Japanese imports of U.S. goods -An increase in the price of U.S. goods in Japanese markets

An increase in the price of U.S. goods in Japanese markets

Which of the following is a similarity between businesses and nonprofit organizations? -Both of them do not need to adapt to technological changes. -Both do not have to abide by government regulations. -Both are unaffected by political or social change. -Both of them engage in management and finance activities.

Both of them engage in management and finance activities.

Which of the following statements is true? -The concerns of what is legal and ethical do not change over time. -All actions deemed unethical by society are also illegal. -The terms social responsibility and ethics should be used interchangeably. -Companies can be both profitable and socially responsible.

Companies can be both profitable and socially responsible.

Which of the following statements is true about businesses and profits? -Businesses do not have the right to use their profits the way they choose. -Profit-making businesses often weaken the economy of a country. -Earning profits contributes to society by providing employment. -Profit making is a business activity that seldom requires risk taking.

Earning profits contributes to society by providing employment.

Which of the following statements is FALSE about ethics? -Ethical conduct builds trust among individuals and in business relationships. -Ethical conflicts may evolve into legal disputes. -Business ethics goes beyond legal issues. -Ethical issues are limited to for-profit organizations.

Ethical issues are limited to for-profit organizations.

Which of the following statements about business ethics is FALSE? -Studying it can help one recognize ethical issues and understand how others take unethical decisions. -It concerns the impact of a business's activities on society. -It refers to principles and standards that define acceptable behavior in business organizations. =It relates to an individual's values and moral standards and the resulting business decisions he or she makes.

It concerns the impact of a business's activities on society.

Which of the following is true of the responsibilities of the people involved in a business? -Marketing refers to all activities concerned with obtaining money for the firm and using it effectively. -Nonprofit organizations include all the functions that businesses do, except for the marketing function. -Finance is concerned with acquiring, developing, and using human effectively and efficiently. -It is the primary responsibility of the owners to provide financial resources for the operation of the business.

It is the primary responsibility of the owners to provide financial resources for the operation of the business.

The _____ Act criminalized securities fraud and toughened penalties for corporate fraud.

Sarbanes-Oxley

Which of the following is likely to cause a trade deficit? -When a country focuses on long-term benefits than short-term gains -When a country reduces taxes on imports -When a country invests more on producing domestic goods than services -When a country focuses on increasing the domestic output of one sector over another

When a country reduces taxes on imports

A(n) _____ exists when a country is the most efficient producer of an item.

absolute advantage

A(n) ______ exists when a country is the only source or producer of an item.

absolute advantage

When a country devalues its currency, this causes:

an increase in its exports

The difference between the flow of money into and out of a country is called its ____.

balance of payments

The principles and standards that determine acceptable conduct in business organizations are referred to as:

business ethics

Colombia can produce coffee much more efficiently than it can produce other items; this gives Columbia a(n) ____ advantage.

comparative

A favorable balance of trade exists when a country:

exports more than it imports

A specific amount of money levied on each unit of a product brought into the country is a(n) ____.

fixed tariff

The Sarbanes-Oxley Act was passed to:

help restore confidence in corporate America.

The functions of organizing, staffing, planning, and controlling are most closely associated with:

managers

According to the National Business Ethics Survey, _____ is the number one area of misconduct observed in the workplace.

misuse of company time

Studying business ethics will NOT necessarily:

motivate individuals to perform acts of social responsibility.

_____ is the transferring of manufacturing or other tasks—such as data processing—to countries where labor and supplies are less expensive.

outsourcing

Businesses differ from nonprofit organizations in that a business's focus is on:

profit

____ is the primary goal of business.

profit

The term social _____ refers to a business's obligation to maximize its positive impact and minimize its negative impact on society.

responsibility

All the groups that have an interest in an organization's success and outcomes are known as the organization's ____.

stakeholders

One of the most difficult things for a business to restore after an ethics scandal is:

trust