SmartBook Chapter 2 Questions - IBUS 310

A businesses' property consists of which 3 things?

- Buildings - Equipment - Land WRONG ANSWERS - Individuals - Contracts

Which of the following are ways in which property rights can be violated?

- Through private action - Through public action WRONG ANSWERS - Through religious intent - Through foreign direct investment

What should Stephen, the CEO of an athletic clothing company, obtain to prevent competitors from copying the company logo?

A trademark

What is the objective of a pure command economy?

Allotment of resources for the overall good of society

______ refers to a political system that values the needs of society over that of an individual.

Collectivism

To determine which country is attractive for potential investments, you need to balance which three considerations?

Costs Risks Benefits

it can be more costly to do business in a country where local laws and regulations set strict standards with regard to product safety.

Countries with free market economies in which property rights are protected tend to achieve greater economic growth rates than other economies.

China and Vietnam have experienced greater individual freedom in the economic sphere; however, this is not a reflection of the presence of a(n) _____.

Democracy

Political systems that emphasize individualism tend to promote _____.

Democracy

The total annual income received by residents of a single nation is reflected in which official measure?

Gross national income

______ refers to a philosophy that promotes the free exercise of one's goals and desires in economic and political pursuits.

Individualism

Jenner is obtaining a patent for the new diet drink formulation he created. He hopes that Coca Cola and other companies will be interested in licensing his formula. Jenner is protecting his _____ property with the patent.

Intellectual

______ property refers to property that is the product of any innovative activity, such as a screenplay, a music score, or the chemical formula for a new drug.

Intellectual

Which statement BEST describes a totalitarian system?

It is a form of government in which the state recognizes no limits to its authority and strives to regulate all aspects of public and private life.

A ______ grants an inventor exclusive rights for a defined period to the manufacture, use, or sale of his or her invention.

Patent

Harper Electronics Corp. was forced to pay off the government representative of the foreign country before Harper Electronics was allowed to do business there. Which type of factor affected the company's cost of doing business?

Political

The term ______ refers to the interconnection of the political, economic, and legal systems of a country.

Political economy

In the last half of the twentieth century, Britain's Conservative Party sold state-owned enterprises to individual investors in order to create a free market economy. What process was Britain using to create this economy?

Privatization

______ refers to the process of selling state-owned enterprises to private investors.

Privatization

Which statement accurately describes the effects of social unrest on a country?

Social unrest can result in abrupt changes in government which tend to have negative economic implications.

When assessing country attractiveness, the costs might include _____.

corruption

In a market economy, the government's role is to

encourage free and fair competition and minimize restrictive business practices.

When assessing the legal factors that determine the cost of doing business in a country, it's important to know that

it can be more costly to do business in a country where local laws and regulations set strict standards with regard to product safety.

Along the continuum between democracy and totalitarianism, it can be said that

it is possible to have a democratic state in which some degree of collectivism exists.

A(n) ______ risk is one that arises from failure to follow statutory or regulatory obligations and, therefore, one that can impact a trading partner.

legal

The political economy of a country refers to the interaction of the political, economic, and _____ systems of a country.

legal

Product ______ is the area of law that holds a firm and its officers responsible for injuries caused by their product.

liability

In a ______ economy, both private enterprise and state ownership co-exist.

mixed

Millie, a research associate at an information technology firm, develops a program that allows more than six parties to interface at the same time. In order to prevent the competition from duplicating her invention, the company should apply for a

patent

The system of government in a nation is called the _____ system.

political

As used in the text, the term "______" refers to a resource that an individual or business legally owns.

property

Collectivism refers to a political system that

restricts an individual's right to do something on the grounds that it runs counter to the "good of society."

A nation that fosters individualism would

stress that the interests of the people are more important than the interests of the state.

A pseudo-democracy is the term given to a nation in which

the government is in control of the machinery of the state and uses this power to deny political and civil liberties.

A society that is based on collectivism would agree that

the welfare of the society is best served by a governing body dictating what is in the society's best interest.

A(n) ______ is a recognizable sign, design or name, often officially registered, that identifies products or services from a particular source.

trademark