MIE 201 Test 1
Which one of the following statements is NOT accurate in describing approaches to CSR?
A company is simply being defensive when it engages in CSR while in the glare of public criticism.
Member countries of the ________ represent 40 percent of the world's population and more than half of the world's gross domestic product (GDP).
APEC
Which of the following statements INNACURATELY describes one of the responsibilities of businesses toward their employees?
Affirmative action programs guarantee equal opportunities in housing, transportation, education, employment, and other areas for people in the United States who have disabilities.
Among the four perspectives on corporate social responsibility, which one results in both philanthropy and strategic CSR?
Companies have a duty to help society, in addition to simply paying taxes and following the law.
Which one of the following statements about consumerism is NOT accurate?
Consumerism is a synonym for materialism.
Every company takes risks in order to conduct business. Which of the following statements linking risk and reward is not correct? A.Without entrepreneurs and companies willing to accept risk, very little would get done in the economy. B. The risk associated with business decisions needs to stay attached to those decisions. C.Businesses take risks in anticipation of future rewards. D. Without rewards, businesses would have no incentives to take risks. E. Any company that believes it can pursue rewards without facing risks has strong decision-making entrepreneurs.
E. Any company that believes it can pursue rewards without facing risks has strong decision-making entrepreneurs.
Which one of the following examples is NOT correct in distinguishing philanthropy from strategic corporate social responsibility?
If a company helps develop the workforce by supporting job training efforts, it is considered generic philanthropy.
Which one of the following statements does NOT reflect true understanding of the demand and supply relationship?
If demand weakens, the businesses can keep the prices consistent.
What is the difference between monopolistic and oligopolistic competition?
Monopolistic competition has numerous sellers who offer products that can be distinguished from competing products, whereas in an oligopoly, the number of competitors in the market is quite small.
Which one of the following statements does NOT accurately describe foreign exchange rates and currency valuations?
a currency is called strong relative to another when its exchange rate is lower than what is expected normal
While still controversial, _____________ was created to encourage organizations to hire and promote individuals whose economic success may have been otherwise hindered through established practices.
affirmative action
The broadest indicator of international trade is the ________.
balance of payments
A(n) _______ is a firm pursing profits that offers products and services projected to fulfill consumers' needs.
business
The framework that outlines how a firm plans to generate revenue is known as a(n) ____________.
business model
Which of the following represents a specific procedure set in place to allow companies some independence in dealing with the environmental influence of toxins and emissions?
cap and trade
An economic system centered on financial liberty and competition is known as ___________.
capitalism
Which legislation addresses job discrimination?
civil rights act of 1964
Company LMT competes with other companies in the industry by offering the lowest prices around. By offering products at the lowest possible cost compared with other companies, Company LMT has a(n) ____________.
competitive advantage
The theory of comparative advantage supports which motivation for countries and companies to trade internationally?
concentrating on relative strengths
Which of the following is a recurring measurement that determines changes in the costs of a specific set of customer products and services?
consumer price index
___________ is a movement that insists companies take into account customer demands and interests.
consumerism
The top managers at ABCD International have always believed that every business has responsibilities to the community in which it does business beyond chasing the profits. This refers to ________.
corporate social responsibility
The ____________ function ensures consumers have the assistance and information they require before, during, and after a purchase is made.
customer support
A business accused of negligent behavior that markets itself as being socially responsible without making significant enhancements in its business practices is employing a(n) __________ approach to CSR.
cynical
Which of the following views of corporate social responsibility involves a reaction to pressures from activists?
defensive CSR
____________ is an economic situation in which costs fall steadily throughout the economy.
deflation
A _____________ charts the amount of merchandise consumers tend to buy at varying costs.
demand curve
The WTO is guided by five principles, which do NOT include ________.
dictating policies to national governments
________________ is not one of the primary functions of the IMF.
discouraging unfair practices
Aaron was in an accident a few years ago and is now in a wheelchair. Although being in a wheelchair does not affect his ability to work, he finds getting hired and obtaining promotions difficult. Aaron is most likely a victim of ___________.
discrimination
___________, such as smart phones and social media, fundamentally change the nature of an industry and can be influential enough to create or destroy whole companies.
disruptive technologies
Which function can be utilized for both marketing products to retailers and delivering products after the sale?
distribution
FixIt Tools, an Indian tool manufacturer, has just entered the German market. FixIt started selling large quantities of its tools at a significantly lower price than the cost of production and below what FixIt would charge in India. This practice is called ________.
dumping
________________ occurs when expenditure declines, the job market drops, and the economy as a whole declines.
economic contraction
The _____________ involves the circumstances that form the behavior of consumers and merchants and affect the cost and accessibility of products and services.
economic enviroment
Which of the following transpires when the economy is developing and buyers are spending currency, inspiring a rise in hiring and salaries, and motivating higher customer purchasing levels?
economic expansion
_____________ refers to the analysis of how a society utilizes its limited assets to create and allocate various products and services.
economics
When ABC Manufacturing buys parts and materials in large quantities and thereby obtains much better pricing and cost savings, it is utilizing _____.
economies of scale
Service businesses create value by performing activities that provide benefits to consumers, such as _____________.
enteratainment
Which of the following terms describes a scenario in which an individual is given multiple conflicting options, each with valid arguments, and is forced to make a decision between those options even though each option may be unfavorable?
ethical dilemma
Amanda works at a retail store in the mall. She has recently been promoted and now is in charge of opening and closing the store, which involves handling money. After counting the money from the register at the end of the day, she comes up with an extra $25 that somehow wasn't accounted for. Since the money isn't officially recorded, she wonders whether it would be okay to take the money or whether she should put the money in the bank and explain the situation to her boss in the morning. She decides that she deserves the extra money for her hard work and pockets the $25. Which of the following describes Amanda's actions?
ethical lapse
Your roommate is from France and often judges individuals and groups according to French standards, behaviors, and customs. This tendency is called ______.
ethnocentrism
When Company A sells products outside the country in which those products are produced, it is engaging in which of the following?
exporting
Which two business functions listed below ensure that a corporation has the resources it needs to operate, and develop reports for company management and government regulators?
finance and accounting
______________ involves the utilization of government funds and expenditures in order to motivate the business cycle.
fiscal policy
Countries and companies trade internationally for all of the following reasons EXCEPT ________.
focusing on competitors strengths
________ occurs when a company enters a foreign market through ownership and control of assets in that country.
foreign direct investment
Which of the following is an economic system in which judgements about what to manufacture and in what amounts are determined by the market's shoppers and retailers?
free market system
If a country's government elects to bankroll exporters for their products by giving financial support, such subsidies will not lead to ________.
free trade
A company is using a(n) __________ when it views the world as a single integrated market and maintains a highly centralized control on all units.
global strategy
_____________ create value by making tangible and intangible things.
goods-producing business
Matt is a manager at Lawn Care Products (LCP). His primary responsibilities include recruiting, hiring, and supporting employees as well as making sure the company is in compliance with regulations regarding employee rights and workplace safety. Which function does Matt perform at LCP?
human resources
Which of the following involves corruption in which private information is stolen and manipulated in order to acquire types of financing as well as to commit other methods of fraud?
identity theft
Member countries of the European Union benefitted from switching to the common currency called the euro for all of the following reasons EXCEPT ________.
in reducing transparency in pricing
Which of the following describes an economic situation in which costs increase gradually through the economy as a whole?
inflation
Which of the following involves systems that permit companies to promote communication and information usage in order to offer new services to their customers?
information technology
Mark works at EFG, Inc. and has access to sensitive stock market information. Mark often uses that information to make decisions about when to buy and sell stocks, often before the public has any such information. Which of the following describes Mark's actions?
insider trading
Which of the following allows a firm to use some or all of another company's intellectual property in exchange for a fee?
licensing
The _________________ is comprised of specific consumers, influences that affect the purchasing behavior of those consumers, and competitors that sell similar products to those consumers.
market enviroment
The ___________ function's responsibility involves finding opportunities in the marketplace, working with research and development to create products that take advantage of those opportunities, creating promotional strategies to connect with likely consumers, and establishing prices.
marketing
__________ is analysis of economic activity among firms, customers, and industries that collectively establish the extent of products and services that are required and distributed at various prices.
microeconomics
_________________ is the political procedures and actions put into place in order to control the country's currency source.
monetary policy
Which term describes a condition in which a sole company controls a particular market to the extent that it has the ability to control prices?
monopoly
Company XYZ creates autonomous subsidiaries in each new country it enters, thereby giving local managers independence in decision making and running the unit. Company XYZ is enlisting which of the following strategies?
multidomestic strategy
Which of the following involves a political system's seizure of particular firms or business ventures?
nationalizing
____________________ attempt to operate efficiently and effectively to accomplish their goals but are not motivated by profits.
not-for-profit organizations
A(n) ________ represents a market situation in which a small number of sellers offer a certain product or service.
oligopoly
____________ includes people and processes used to produce goods and perform services that a specific company offers.
operation management
Which of the following business functions involves purchasing, logistics, and facilities management?
operations managment
Which of the following represents the worth of the most attractive option that was ultimately not selected?
oppertunity cost
Gross domestic product represents the worth of all the final goods and services created by firms based inside a country's boundaries but excludes __________.
outputs from foreign operations of domestic firms
_________ involves a company's contributing funds, volunteer time, products, and services to causes or establishments without concern for immediate company advantages.
philanthropy
In a ________ system, governments for the most part dictate the distribution of resources and restrict freedom of choice.
planned
______________ consists of transferring services that were previously performed by the government to business firms.
privatizing
Top managers at InfoAll, Inc., believe deeply that they have responsibilities beyond making a profit. They back their beliefs with specific actions taken on their own initiative. This describes which approach to CSR?
proactive
Which term is a statistic that assesses fluctuations in the costs of products that businesses are purchasing?
producer price index
Which of the following is defined as the value of performing at a high level and behaving with determination and pride?
proffesionalism
In a business, after all expenses are paid, the leftover money is called ___________.
profit
Practicing good business ethics involves all of the following EXCEPT ________.
putting personal interests above those of other stakeholders
Restricting the quantity of specific goods that nations allow to be imported during a given year is known as ________
quotas
Which of the following occurs when revenue, employment, and manufacturing decline over at least a 6-month period of time?
recession
Tips for improving communication with a person from another culture include all of the following EXCEPT ________.
regarding the person as a representative of another culture
__________ is the functional area in charge of visualizing and creating new products.
research and devlopment
___ is the money a company generates through the sale of products and services
revenue
Nicole works at ABC Retailers. Her primary responsibility is to get to know customers to determine their wants and needs in order to persuade them to make a transaction. Which function is Nicole performing?
sales
The _________ environment involves trends and forces in society, such as population trends affecting companies, changing consumer markets, and fluctuations in the workforce.
social
_____________ is an economic structure involving government possession and control of significant business activities joined with private possession and control of less vital business activities.
socialism
A company developing an internship program to help improve the workforce and to train potential employees for valuable roles within the company is an example of _______.
strategic CSR
Which term describes a long-term partnership between Company A and Company B to jointly develop, produce, or sell products?
strategic alliance
The government of Zenovia levies a surcharge of 200% on the value of every electronic product that is brought in the country. This is an example of _______.
tarrifs
The ________ environment involves the application of science to innovations, products, and processes.
technological
Macroeconomics is the study of ________.
the analysis of a nation's more significant economic concerns, such as the manner in which firms compete, the impact of government policies, and the allocation and preservation of an economy's limited resources
The right to buy safe products and to buy them safely includes __________.
the right of protection from identity theft
Fundamental consumer rights that form the basis of much of the consumer-related legislation in the United States include all of the following EXCEPT __________.
the right to sustainable development
____________ exists in countries whose legal structure is based on religious principles.
theocratic law
Common markets that endorse trade within the region while creating barriers against goods entering the region from nonmember nations are known as ________.
trading blocs
When using a(n) __________ strategy, a company uses a mixed approach in which it attempts to gain the benefits of international scale while responding to local needs.
transnational strategy
Choosing the option that delivers the maximum good for the maximum number of people describes the ________ approach to resolving ethical dilemmas.
utilitarianim
__________ occur(s) when an employee witnesses illegal or unethical actions within the company and chooses to reveal the evidence through formal means such as the media or the authorities.
whistle-blowing
A collection of five financial institutions whose main goals are eliminating the most extreme levels of poverty around the globe and enhancing the income of the poorest people in every nation is the ________.
world bank