Intro to Business test 1
The Association of Southeast Asian Nations (ASEAN) effectively united Singapore, Britain, and Japan into one market
false
The Webb-Pomerene Export Trade Act allows selected U.S. firms to form monopolies to compete with foreign monopolistic organizations and also to operate as monopolies within the United States.
false
The World Trade Organization agreements were rejected by most of the world's trading nations
false
The concept of social responsibility is universally accepted.
false
When a nation imports more than it exports, it has a positive balance of trade
false
David is an accountant for a small company. As such, he participates primarily in ________ activities.
financial
People in the entertainment industry claim that requiring warning labels on movies and videogames violates their ________ right.
first amendment
A specific amount of money levied on each unit of a product brought into a country is termed as a(n) ________ tariff
fixed
Which of the following is likely to be a reason for some U.S. companies to bring their outsourced production processes back to the United States?
high cost of transporting products to the home country
Recently, ________ became the number-one consumer complaint with the Federal Trade Commission.
identity theft
The fact that environmental responsibility requires trade-offs means that it
imposes costs on both business and the public
Offshoring is different from outsourcing because
in offshoring, the company retains control of the process
A fixed tariff differs from an ad valorem tariff because an ad valorem tariff
is based on the value of an item
Which of the following is a key step in evaluating ethical decisions in business?
learning how to recognize and resolve ethical issues
Obeying the law is a business's
legal responsibility
Which of the following can be best defined as a trade agreement in which one company allows another company to use its company name, products, patents, brands, trademarks, raw materials, and/or production processes in exchange for a fee or royalty?
licensing
Codes of ethics foster ethical behavior by
limiting the opportunity to behave unethically by providing punishments for violations of the rules and standards
Which of the following can be grouped under a single segment among the various elements of business activity?
marketing and consumers
A ________ strategy can be best defined as a plan, used by international companies, that involves customizing products, promotion, and distribution according to cultural, technological, regional, and national differences
multinational
Which of the following organizations funds programs to train the hard-core unemployed so that they can find jobs and support themselves?
national alliance of businessmen
Which of the following indicates that a person has begun the process of resolving an ethical issue?
recognizing the ethical issue and openly discussing it with others
According to the National Business Ethics Survey, employees in organizations that have written codes of conduct and ethics training, ethics offices or hotlines, and systems for reporting are more likely to
report misconduct when they observe it
Which of the following laws reformed the financial industry and offered consumers protection against complex and/or deceptive financial products?
the Dodd-Frank Act
All of the following are nations that have been subject to economic sanctions for political reasons in recent years EXCEPT
the United States
Which of the following was established by the industrialized nations in 1946 to loan money to underdeveloped and developing countries?
the World Bank
Which of the following is the international organization based in Geneva, Switzerland, that was created in 1995 by the Uruguay Round of the General Agreement on Tariffs and Trade (GATT)?
the World Trade Organization
Ethical decisions in an organization are influenced by individual moral standards, the influence of managers and coworkers, and
the opportunity to engage in misconduct
Licensing allows a company to enter the international marketplace without spending large amounts of money abroad
true
Nations trade with other nations to obtain resources that would otherwise be unavailable to them
true
Political unrest in countries often creates a hostile environment for foreign businesses and can act as a barrier to international trade
true
One of the most difficult things for a business to restore after an ethics scandal is
trust
All of the following are examples of misusing company resources EXCEPT
using company phones for occasional personal calls
Being a "good corporate citizen" is an example of the ________ dimension of social responsibility
voluntary
________ is the act of an employee exposing an employer's wrongdoing to outsiders.
whistleblowing
________ is the buying or selling of stocks by insiders who possess material that is still not public.
Insider trading
Which of the following is true of misuse of company time?
Time theft costs can be difficult to measure but are estimated to cost companies hundreds of billions of dollars annually
All of the following are criteria the Ethisphere Institute uses to select its annual list of the world's most ethical companies EXCEPT
innovation that contributes to the company's well-being
Philanthropic contributions made by a business to a charitable organization represent the ________ dimension of social responsibility.
voluntary
Which of the following is true about the role of the Federal Trade Commission's Bureau of Consumer Protection?
It protects consumers against unfair, deceptive, or fraudulent practices
Which of the following is true about the Association of Southeast Asian Nations (ASEAN)?
It will not have fully free labor flows between member-nations
Which of the following countries was a member nation of Asia-Pacific Economic Cooperation (APEC) when it was established in 1989?
Japan
Which of the following is an industrialized nation?
Japan
Businesses have the right to keep and use their profits as they choose, without limitations.
false
Importing is the sale of goods and services to foreign markets
false
Owners have little responsibility to provide funds for the operation of the business.
false
Businesses differ from nonprofit organizations in that a business's focus is on
profit
________ is the primary goal of business.
profit
A survey of employers conducted in Indiana revealed that ________ percent reported leaving positions unfilled because the applicants were not qualified
39
Which of the following is true of bullying?
Although sexual harassment has legal recourse, bullying has little legal recourse at this time
All of the following are examples of multinational strategy EXCEPT
American clothing companies use social media sites to connect with global customers
Which of the following is an argument that supports social responsibility?
As members of society, businesses and their employees should support society through taxes and contributions to social causes
________ is the single largest trading partner of the United States
Canada
Which of the following countries is included in the list of least corrupt countries?
Denmark
________ emerged as a major issue in the 20th century in the face of increasing evidence that pollution, uncontrolled use of natural resources, and population growth were putting increasing pressure on the long-term sustainability of these resources.
Environmental protection
________ is best described as the sale of goods and services to foreign markets.
Exporting
Which of the following is a reason why a code of ethics is important?
It alerts employees about important issues and risks to address
Which of the following is true of the Dodd-Frank Act passed by the U.S. Congress in 2010?
It encourages whistleblowers to provide information about corporate misconduct through monetary rewards
Which of the following is a true statement about the European Union?
It is working toward the creation of a standardized currency
All of the following are true of the causes of ethical conflict EXCEPT
Many employees utilize the same ethical standards at work and at home
Laws regarding workplace safety are enforced by the
Occupational Safety and Health Administration
________ involves taking someone else's work and presenting it as your own
Plagiarism
Which of the following is NOT true of the marketing mix?
Product management involves making sure products are available in the right place at the right time.
Which of the following is true of how the mass media reports on the ethical conduct of businesses?
The mass media focuses more on misconduct than good ethical conduct
Which of the following is true of the responsibilities of the people involved in a business?
The primary responsibility of providing financial resources for the operation of the business lies with the business owners.
Which of the following is true of multinational corporations (MNCs)?
They are the highest level of international business involvement
Which of the following is true regarding trading companies?
They handle all activities required to move products from one country to another
On which of the following grounds are multinational corporations (MNCs) often criticized by antiglobalization activists?
They misuse and misallocate scarce resources
Which of the following has developed a Corruption Perceptions Index?
Transparency International
True or False. Finance refers to all activities concerned with obtaining money and using it effectively.
True
According to the National Business Ethics Survey (NBES), ________ is the greatest determinant of future misconduct.
a company's ethical culture
Which of the following is an example of an intangible product?
a music concert
According to the National Business Ethics Survey, ________ is the most common ethical problem for employees
abusive behavior
Among the major activities of business, which of the following is an element of management?
acquiring resources
A U.S. citizen may bring $200 worth of merchandise into the United States duty free. After that, U.S. citizens must pay a(n) ________ based on the cost of the item and the country of origin
ad valorem tariff
Which of the following is an example of a tangible product?
an automobile
If the United States were to devalue its currency, the most likely result would be
an increase in its exports
A nation's ________ can be best defined as the difference in value between its exports and imports
balance of trade
The right to ________ assures consumers that their interests will receive full and sympathetic consideration when the government formulates policy.
be heard
The right to ________ gives consumers the freedom to review all details about the products they wish to buy.
be informed
________ are payments, gifts, or special favors intended to influence the outcome of a decision.
bribes
Which of the following is associated with a hostile workplace when a person or group is targeted and is threatened, harassed, belittled, verbally abused, or overly criticized?
bullying
The principles and standards that determine acceptable conduct in business organizations are referred to as
business ethics
A set of formalized rules and standards that describes what a company expects of its employees is called a
code of ethics
All of the following are associated with dishonesty EXCEPT
competition
The right to choose ensures that
consumers have access to a variety of goods and services at competitive prices
Which of the following involves the activities and organizational processes adopted by businesses to meet their social responsibilities?
corporate citizenship
Exporting may occur through ________, which involve bartering products for other products rather than currency.
countertrade agreements
Managers are responsible for
creating a work environment that helps the organization achieve its objectives and fulfill its responsibilities
Many countries do not allow children to be used in advertising. This is an example of a(n) ________ barrier
cultural
The effective translation of product names can be crucial to the success in foreign markets because of
cultural barriers
Which of the following acts is associated with bullying?
discrediting others' ideas and opinions
Abusive behavior is difficult to assess and manage because of
diversity in culture and lifestyle
Many businesses, recognizing that employees lack basic work skills, are becoming more concerned about the quality of ________ in the United States.
education
A(n) ________ is best defined as a prohibition on trade in a particular product
embargo
All of the following are people and forces beyond an organization's control that have an impact on the business's daily operations EXCEPT
employees
Which of the following is an example of corporate citizenship?
engaging in organic farming
A common reason for establishing quotas or tariffs is to encourage dumping
false
________ is an element of the management activity in a business.
operations
When a business fails or does not make a profit, ________ have the most to lose in terms of finances.
owners
The outcomes of a business's efforts are
products
All of the following are true about gestures that are viewed as rude or unacceptable in particular countries EXCEPT
sitting with the soles of the shoes showing is unacceptable in Brazil and Germany
All the groups that have an interest in an organization's success and outcomes are known as the organization's
stakeholders
Auto Depot is working to find a way to produce the SUVs and trucks its customers want while meeting environmental requirements. This is an effort to please multiple
stakeholders
More and more companies are moving from the multinational strategy to a global strategy that involves ________ products
standardizing
All of the following are true of nonprofit organizations EXCEPT they
support businesses through donations from employees
________ involves the interaction among nature and individuals, organizations, and business strategies and includes the assessment and improvement of business strategies, economic sectors, work practices, technologies, and lifestyles, so that they maintain the health of the natural environment.
sustainability
Sue hired an attorney to help her draft a purchase and sale agreement for her new home. The home is an example of a product that is a(n)
tangible item
Which of the following is an international trade alliance between 21 nations that promotes open trade and economic and technical cooperation among its member nations?
the Asia-Pacific Economic Cooperation (APEC)
