DECA I Final Exam Review

One difference between business ethics and the law is that business ethics

are often unwritten

The Scott company decided to sell stock to raise capital. Under what form of business organization does the company operate?

corporation

You decide not to take a certain action because you know its the wrong thing to do. You have made this decision based on your

ethics

Of the following methods of entering a foreign market, which is the least risky?

exporting

Government uses some of the tax money it collects from individuals and businesses to support public welfare programs. What is the benefit of these welfare programs in a private enterprise economy?

funds received by recipients are spent in business

In a socialist economic system, who tends to answer the question on how products will be produced?

government and businesses

Environmental degradation occurs because of

increased production

Which of the following is a public good that is provided by government

interstate highways

Which of the following is a potential consequence of poor business ethics

negative public image

The American red cross is an example of a ______ organization

nonprofit

Globalization can be a disadvantage for domestic workers when they lose their jobs due to the practice of

offshoring

What type of corporation may be owned by just a few people and does not offer its shares for sale to the general public?

private

What type of corporation sells millions of shares and must furnish complete information about its earnings, assets, and debts?

public

Illegally run organizations that emphasize the collection of high fees from potential product distributors are often referred to as

pyramid schemes

What actions are consumers most likely to take when the economy is poor

restrain their spending

People who go into business know that the business may not succeed. This possibility is referred to as business

risk

Government owns the basic means of production, but there is some private ownership of business under

socialism

A major problem for individuals and private businesses in a socialist command economy is

taxes

An example of a country that has a socialist command economy is

Canada

Which of the following is a potential problem in market economies?

Financial loss

Wendy's sells the right to operate its restaurants to individuals who meet the company's criteria. The arrangement between Wendy's and these individuals is an example of

Franchising

If all of the individuals who own a business share unlimited liability for the business's losses, these individuals are part of a(n)

General Partnership

In a communist command economy, who decides how the economic questions will be answered?

Government

Why does the government set and collect taxes?

Help pay for taxes of government

Lois and Lora plan to open a florist shop. Lois is unable to devote full time to the daily operations of the shop but wishes to provide financial support. Which form of business partnership is most likely to appeal to Lois?

Limited

Which of the following government actions is most likely to stimulate the economy

Lowering tax rates

A country that currently has a communist command economic system is

North Korea

"To form my business, I used all of my savings. borrowed from the bank, and I'm personally liable for all of the debts." This is an example of what type of business ownership

Private

The two main sources of revenue used to pay the costs of government regulations are

Taxes and borrowing

The technology that has had the most influence on globalization has been

The internet

One of the characteristics of the form of a business ownership known as an LLC is that

The owner's personal property cannot be taken to pay the business' debts

Which of the following is a true statement about business ethics and law

The two are not the same thing but they overlap

Which of the following is a true statement about ethical business practices

They do not guarantee positive outcomes

Lack of economic growth is a major problem for __________ economic systems.

Traditional

"Brain Drain" occurs when

a country loses talented employees to better opportunities overseas

An organization that has the ability to adapt quickly is

agile

Globalization can be an advantage for businesses because it

can help cut cost for certain resources

A business' philanthropic responsibility involves its contributions to

charity

The government controls the economic system and does not allow private ownership of the means of production and distribution in a _____ economy

communist

Which of the following is an example of increased financial risk for a company with poor business ethics

decreased company value

A business with poor ethics causes internal problems for itself by

decreasing productivity

A business suddenly moves its operations to a new town, leaving its current employees jobless. Its reason for taking this action, which some consider unethical, might be that the action

is not illegal

Some people believe that a business' only true ethical obligation is to

make money

Individuals and businesses own the means of production and distribution with limited government regulation in a _______ economy

market

What type of economic system is used in the United States

market

The most common medium of exchange in modern economic systems is

money

Which of the following is not a main reason for businesses to expand into foreign markets

to spread culture

Which of the following types of economic systems adopts the fewest new ideas or improvements

traditional

In a traditional economic system, the question of what to produce is answered by producing

what has always been produced