Midterm 3 questions

Which set of ethics codes defines an organization's guiding values, creates an environment that supports ethically sound behavior, and stresses shared accountability?

Integrity-based ethics codes

______ are creative people who work as entrepreneurs within corporations. Multiple choice question.

Intrapreneurs

What type of business relationship benefits both a trainee and a business owner and occurs when a trainee is hired to learn small-business management while assisting the owner in getting daily work done?

apprenticeship

Limits on the number of products in certain categories a nation can import is best described as

import quota

Which of these are centers that offer new businesses in the critical stage of early development low-cost offices with basic services such as accounting, legal advice, and secretarial help?

Business incubators

What is the name of the U.S. free trade agreement with Costa Rica, the Dominican Republic, El Salvador, Guatemala, Nicaragua, and Honduras?

CAFTA

Which code of ethics emphasizes preventing unlawful behavior by increasing control and penalizing wrongdoers?

Compliance-based ethics codes

______ refers to accepting the risk of starting and running a business.

Entrepreneurship

A contractual agreement where someone sells a business idea and gives the rights to use the name and sell a product/service in a given are is considered a:

Franchising

The four functions of management include:

Planning, organizing, leading, controlling

What is considered to be a major hurdle to successful global trade?

Sociocultural differences

Mediating trade disputes among nations and overseeing cross-border trade issues and global business practices are functions of:

The World Trade Organization (WTO)

True or False: Equity financing is about ownership, not about borrowing

True

True or false: Most entrepreneurs do not get their ideas from a flash of inspiration; they come more from their passions or looking at problems.

True

True or false: The principles of management are similar for a small neighborhood business and a giant global firm

True

A systematic evaluation of an organization's progress toward implementing socially responsible and responsive programs is called:

a social audit

what is the legal obligation of a corporation

acquire wealth for stockholders

The guiding principle of free economic exchange is ______ ____theory.

comparative advantage

The guiding principle of free economic exchange is:

comparative advantage theory

Corporate social responsibility is based on a _____

concern for the welfare of society

A foreign country's production of private-label goods to which a domestic company then attaches its brand name or trade mark is called

contract manufacturing

The concern businesses have for the welfare of society, not just for their owners is referred to as

corporate social responsibility

which business has double taxation?

corporation

Export Assistance Centers work with small and medium-sized businesses who wish to get involved in

direct exporting

People learn their organizational _____from observing the standards, values, and behaviors of leaders and other employees.

ethics

A social audit is used by organizations to

evaluate its progress toward implementing socially responsible programs

A company in another country that is owned by a U.S. company would be an example of a

foreign subsidiary

The definition of ____ states: the movement of goods and services among nations without economic or political barriers.

free trade

The definition of ______ _____states: a partnership in which two or more companies,often from different countries, join to undertake a major project.

joint venture

Of all the strategies for reaching global markets, which one offers the least amount of commitment, control, risk, and profit potential?

licensing

What entry strategy gives a firm the right to manufacture another firm's product or use its trademark for a royalty fee?

licensing

when the US dollar is trading for less than a foreign currency, the cost of foreign goods are

more expensive

Two advantages small firms have over large firms include more personal customer service and the ability to respond quickly to ____.

opportunities

A foreign subsidiary is a company owned in a foreign country by another company called the

parent company

A business that is independently owned and operated, is not dominant in its field of operation, and meets certain standards of size in terms of employees or annual receipts is a(n):

small business

Job seekers interested in working in global trade should consider applying to:

small businesses major companies

When it comes to ethics,_____ sets the standards for moral behavior, that is behavior defined as right or wrong.

society

Who sets the standards of right and wrong as defined by ethics?

society

which business entity is the easiest to form?

sole proprietorship

Naomi invests in new businesses in exchange for partial ownership in those businesses. Naomi is a(n) _____.

venture capitalist

Free trade is the movement of goods and services among nations___

without political or economic barriers

The total value of a nation's exports compared to its imports measured over a particular period is the definition of

balance of trade

What is the global strategy in which a firm allows a foreign company to produce its product in exchange for a fee?

Licensing

When it comes to getting involved in international business what are the three strategies that require the least amount of commitment and effort?

Licensing, exporting, franchising