Global Biz 2 Tampa

A company's net income is $16 million, and its owner's equity is $10 million. The company's return on equity is ________.

160

Which one of the following statements best describes what a dividend is?

A percentage of profits that is distributed to each owner of a corporation

Which of the following statements correctly describes a difference between S corporations and C corporations?

An S corporation is limited to no more than 100 owners, while a C corporation may have an unlimited number of owners.

Which of the following are advantages of sole proprietorships?

Because all earnings are treated as personal income, the only taxes that need to be paid are the individual federal, state and local income taxes, The owner has complete decision-making control of the business operations, The sole proprietor keeps all of the profits if the business is successful

In these types of business organizations, businesspeople are able to avoid the key disadvantage of unlimited liability.

C corporations, S Corporations, limited partnerships

________ are mergers or acquisitions where the companies are not in the same industry or do not provide access to customers or supplies.

Conglomerates

________ must keep detailed financial records and file reports on their business operations and finances with local, state and federal governments

Corporations

The cash a firm spends to carry out its business activities is known as ________.

Cost of goods sold

Which one of the following is likely to occur when a company relies on referrals from existing employees to reach new job applicants?

Employees are likely to refer people they can count on to perform well for the organization.

Envisioned benefits that a potential employee sees in working for a specific organization is referred to as ________.

Employer attractiveness

When compared to other modes of entry, ________ is a relatively low risk and highly flexible strategy to reach global markets.

Exporting

Approximately 70% of corporations in the U.S. are classified as C corporations.

False

Recent empirical evidence suggests that there is a strong correlation between openness to trade and low environmental standards.

False

The income statement reports the financial results of a firm at a specific point time.

False

________ costs are those that are independent of output.

Fixed

________ is the purchase of permanent capital goods, such as a manufacturing factory or a business in a different country

Forgein direct investment

A ________ consists of the terms and conditions associated with purchasing the franchise.

Franchise agreement

The set of standards that govern accounting in the United States are known as ________.

Generally accepted accounting priciples

Focusing on strategies that capitalize on people can result in ________, which positively impact the bottom line

High performance work systems

Which one of the following statements best describes what a quota is?

It is a limit on the overall quantity of a certain good that can be imported into a country.

In June 2020, the U.S. Supreme Court ruled that the protections in Title VII of the Civil Rights Act extended to

LGBTQ+ individuals

Total imports and exports around the world in 2019 represented ________ of global GDP

Over 60%

Retained earnings are part of a company's ________.

Owners equity

A ________ is an owner of a corporation.

Shareholder

Which of the following statements about US trade in services are true

The United States is a net importer of services, The United States only trades services with Canada and Mexico because they border the United States

Suppose someone who lives in the United States obtains prescription drugs from a pharmacy in Canada because they are less expensive there. Which of the following statements about this transaction are true?

The drugs are considered an export for the United States, The drugs are considered an import for Canada

Which one of the following statements about unstructured interviews is true?

They become more valid when multiple interviewers are included

A positive balance of trade is also known as a ________.

Trade surplus

Anyone who does business without creating a separate business organization has a sole proprietorship.

True

Developing countries with limited skills, capital, or technology can benefit from trade, even if they do not have an absolute advantage in any industry.

True

Which one of the following statements regarding hiring from within an organization is false?

Unlike external hires. when hired internally employers are trained on company processes and goals

Which of the following are essential elements of a general partnership?

an equal right to be involved in the management of the business, a sharing of profits or losses, a joint ownership of the business

Which of the following are items that would be found on a company's balance sheet?

cash, long-term debt, retained earnings

Which of the following is the most difficult and expensive legal form of business to set up?

corporations

Double taxation means that:

corporations must pay taxes on their profits, and once shareholders receive their dividends from a corporation, they too must pay taxes on the dividends received.

Which of the following are types of expenses you would find on an income statement?

cost of goods sold, income taxes, research and development

Which of the following are steps in the accounting cycle?

creating a journal where all transactions are recorded, gathering all financial transactions, preparing a trial balance

Which one of the following statements best describes the duties of the Financial Accounting Standards Board?

creating, updating, and enforcing the rules of accounting for publicly traded companies

Which of the following ratios would you calculate if you wanted to assess a company's ability to pay its short-term liabilities with the cash it has on hand?

current ratio

Which of the following are benefits of global trade?

exposure to new product ideas, access to more markets, exposure to new technology, enhanced cross-country relationships

Financial accounting is the branch of accounting that focuses primarily on the needs and requirements of ________ stakeholders.

external

Suppose a German telecommunications company purchases a telecommunications company in Brazil, and the Brazilian company continues to operated as a domestic company within Brazil after the purchase. In this situation, the Brazilian telecommunications company is an example of a

foreign subsidiary

Firms are able to access global markets through which one of the following techniques?

franchising

In some countries, terminating employees without cause is difficult. This helps to explain why ________.

identifying top talent in the selection process is important

The general openness of a country to trade can be seen by

looking at the sum of exports and imports as a share of the country's gross domestic product.

Which one of the following incentive types is the most difficult one for monitoring and measuring an individual employee's contribution

lump-sum

Which of the following are physical barriers to trade?

no sea ports, mountains, road blocks

An acquisition occurs when

one company takes over another company, usually by purchasing it from its owners.

Before starting a ________, owners agree to a contract that details each owner's responsibilities, financial investment, and right to a share of the profit.

partnership

A company's operating budget:

projects the revenue that will be brought in through sales and the costs that are required to meet the sales projections.

Which of the following ratios would you calculate if you wanted to assess how productive a company is at turning total assets into net income?

return on assets

Which of the following are purposes of the World Trade Organization?

set global prices for goods and services traded among countries

The ________ is the simplest form of business.

sole proprietorship

In an independent audit:

the financial reports of a company are reviewed by someone who is not employed within the firm.

Retained earnings are

the profits that are reinvested into the company instead of being distributed to the owners.

Which one of the following statements correctly defines what absolute advantage is?

the raw productivity advantage of a country in a certain industry compared to other countries.

Which of the following are reasons that countries may pursue trade protection?

to protect domestic jobs, to protect small domestic companies, to remove any price advantage a foreign good may have in the domestic marketplace

ABC Organization uses strategies that have been shown to predict various aspects of performance to choose among a pool of job applicants. ABC Organization is using ________ to decide which applicants to choose.

validated selection tools

hich one of the following statements best describes what a royalty is?

A royalty is an ongoing fee based on the amount of revenue a franchise earns.

Which of the following statements about incentives are true?

Incentives are a way to motivate employees, Incentives matter within businesses because workers have interests that are not always aligned with the mission of the business, There are two general types of incentives a business can use to compensate an employee: a lump-sum payment or piece-rate payment

In a sole proprietorship, the owner alone bears the burden of any losses or liabilities incurred by the business.

True

One of the potential drawbacks of international trade is the loss of a national identity as a divergence grows between those who benefit from trade and those who don't.

True

Which one of the following is a correct definition of imports?

any goods or services produced in a foreign country but purchased domestically.

Which one of the following is a correct definition of exports?

any goods or services produced within the domestic country but sold in a foreign country.

Research has found that job seekers are attracted to a number of factors, including all of the following except ________

autonomy

Which of the following is an example of a leverage ratio?

debt-to-owners equity ratio

Which of the following are important types of cost within cost accounting?

direct costs, fixed costs, indirect costs, opportunity costs

In the development phase of training, managers may do which one of the following:

ensure that training environments are conducive to learning and that the training meets the organization's goals and objectives.

Are partnerships taxed the same as sole proprietorships

true