World of Business
Darla's boss has asked her to review the IT department's financial statements. Her boss is concerned that the chief information officer is engaging in wasteful spending practices, and she's hoping that Darla can help her confirm or refute her suspicions by combing through these statements. Darla is most likely a(n) _________.
Internal auditor
Various U.S. presidents, including presidents Hoover, Trump, and Biden, have encouraged citizens to "Buy American" rather than buying products made abroad. This sentiment is a hallmark of _________.
protectionism
Sweden has long been associated with successful socialist policies, but recently the Swedish government has had to cut back on some of the social services it provides its citizens, especially those that benefit older adults. One issue is that the younger working population isn't large enough to support the much larger elderly population. Another is the flight of investors and entrepreneurs, who tend to seek out countries with more favorable tax rates. These latter countries are an example of ______.
the fundamental rights of capitalism
Boun is a farmer in Laos, a landlocked country in Asia that has a single-party government that controls all means of production. This means that even though Laotian farmers like Boun may have a high demand for products like commercial chicken feed, the government will decide which products get made. Laos is an example of a __________ economy.
Communist
Wilhelm is the project manager for a software company. He has been asked to track all costs that are related to the company's newest product release, including the salaries of anyone working on that specific product. Wilhelm is tracking the _______________.
Direct costs
Leonardo is hosting a meeting where he and his coworkers can practice their public speaking skills. He has reserved a meeting room at work during their typical lunch period, and when the meeting begins, he learns that another coworker has reserved the meeting room next to his to watch the World Cup with some other coworkers. The wall between the rooms is thin enough that Leonardo and his public speaking colleagues can hear the loud cheering and laughing from the other room throughout the duration of their own meeting, which is incredibly distracting. This kind of poor setup is an example of a(n) ________ barrier to communication.
Physical
Melissa is examining the major financial statements of a company that she has invested in. Although the company's stock has been increasing in value, she believes they may be having issues with liquidity. Refer to Scenario 8.1. Melissa is concerned that the company has too many immediate costs related to their core operations. Melissa is thinking about the company's ___________.
expenses
Many U.S.-based automobile manufacturers, like Ford, have opened factories in Mexico in order to cut costs. Mexico is able to manufacture cars more cheaply because it has a(n) _______ relative to the United States when it comes to labor.
absolute advantage
Carmen has been asked to make recommendations on how her company can reduce costs associated with her company's office building, which is separate from their manufacturing facilities. She has considered making a recommendation on how the company heats and cools the building. This would be considered a(n) __________.
indirect cost
Allie owns a clothing store in Canada and is working to develop a line of her own branded apparel called "Noon Day." Although she would like to have all of her clothing manufactured in Canada, she can't afford the high domestic production costs right now. She is exploring a(n) _______ agreement with a company in Sri Lanka as a way to cut down on the manufacturing costs.
foreign outsourcing
Ji-woo works for the Korean branch of an international cosmetics company. He works with a team of market researchers in Korea, a country that leads the way in skincare trends, to learn about the most in-demand skincare products and ingredients. Twice a year, Ji-woo and his team present their findings to the company's product development teams in the United States and Europe so that they can develop new trends before the competition. This is an example of how a company can use international business to _______.
increase the inflow of innovation
Shobha was contracted to perform an audit for a company that builds and manages senior living care facilities. She has reviewed the company's financial statements and delivered a qualified opinion in her report to shareholders, despite objections from management. What kind of document did Shobha present to shareholders?
An independent auditor's report
One way the government can help boost the economy is through large-scale infrastructure projects that create jobs. One famous historical example of this was the construction of the Hoover Dam during the Great Depression under Franklin D. Roosevelt's administration. This is an example of ______.
Fiscal policy
Although the U.S. government does control certain enterprises, such as Medicare and Social Security, private enterprises largely rely on the principles of _______.
Supply and demand
Liliana's favorite part of her job is getting to work across departments to evaluate their various business needs for the coming years. She enjoys the process of planning and then compiling all of the different inputs into a central document that provides a holistic view of the company's goals and what resources they will need to achieve those goals. What document is Liliana most likely creating?
The company's master budget
Heath works for a popular Australian retailer that advertises a 24-hour helpline for customers using their online platform. While they only sell their products in Australia, hiring enough qualified customer service associates to cover all shifts around the clock in Australia would be prohibitively expensive, so Heath's company contracted with a company in India that provides this kind of customer service coverage. Why did Heath's company engage in this kind of global trade?
To access factors of production
In 2021, hackers launched a successful cyberattack against the Colonial Pipeline, effectively halting operations for a week. The attack led to a shortage of gasoline for drivers in the United States, which drove the price for a gallon of gas to its highest rate in six years. Since a gallon of gas is included in the basket of goods used to calculate the ______, we can assume that this higher price would contribute to an increase in that measure for 2021.
Consumer price index
The leadership team of an international office supply company wants to provide a company-wide update on the company's performance that ideally would include a way for people to ask questions at the end. They are hoping to make this a semiannual event, so they have to consider the overall cost of such a presentation. Which channel should they consider for their presentation?
Video conference
Xiomara and her family immigrated from Cuba when she was a small child. She has always dreamed of selling popular Cuban products in her chain of small grocery stores in Florida to help her family and others in the Cuban diaspora to feel more connected to their heritage. Unfortunately, the United States only recently lifted some restrictions on doing business in Cuba. Xiomara is unable to import certain products from Cuba because of a(n) _______.
Embargo
Leandra is in charge of sending out a monthly memo that includes information on company-sponsored events. This month, she includes the following information about a coding workshop: "Know a budding young coder? Send him to our upcoming Coding for Kids workshop!" After she distributes the memo, a few of her coworkers email her to say that her wording demonstrates a(n) ________
Gender bias
Despite the fact that the United States espouses capitalist economic policies, the government controls certain enterprises, such as Medicare and Social Security. This is an example of the trend toward _______ systems.
Mixed market
Joshua works for a company that manufactures electronic parts for cars. He has been asked to report the various costs involved in his company's operations. He spends a lot of his time calculating the amount of money it takes to produce each electronic control module (ECM). The amount changes depending on how much volume the company does each year. For this reason, Joshua reports ECMs as a(n) _____________.
variable cost
A local school district has invited a communications expert to train their teachers in __________. Understanding this subject will help the teachers better understand how students are feeling just by observing their gestures, posture, and facial expressions—even when those students aren't speaking.
Nonverbal communication
RxBar was the brainchild of Peter Rahal and Jared Smith, who made the first batch of the product, which includes egg whites, dried fruit, nuts, and dates, in Peter's parents' basement. After a few years of solid growth, Peter and Jared sold their company, the Chicago Bar Co., to The Kellogg Company. Kellogg's ________ of the Chicago Bar Co. allowed the company to use its expertise in brand-building to accelerate RxBar's growth among health-conscious consumers around the United States.
acquisition
Justin manufactures custom amplifiers and sells them to audiophiles across the United States and Canada. He recently attended an international conference where he met with a number of audio engineers who expressed an interest in buying his products. Most of the demand would come from Singapore, so he has decided to start exporting his products to retailers in that market. This is an example of a business expanding internationally to _________.
access a growth market
After evaluating the company's immediate costs, Melissa has decided to examine the company's ability to sell off property to help generate quick cash. To find this information, Melissa should look at the company's ________.
assests
Madina's boss has asked her to confirm the total claims that owners have against the company. To find this information, Madina looks at the company's ________.
balance sheet
In the 1990s, most trade between the United States and the former Soviet Union was restricted by an embargo. That meant that most U.S. companies could not legally sell their products in the Soviet Union. Pepsi Co. found a way around the embargo by implementing a(n) _________ deal: they exchanged Pepsi Cola for vodka instead of currency.
countertrade
Manoj agreed to make his auto repair services company a _________ for the Goodyear Tire & Rubber Company. As part of this agreement, he will only sell tires made by Goodyear to his customers, and in return, he will have the right to use official Goodyear marketing materials to help advertise his business.
distributor
Canada espouses many free market principles while also offering some vital social services, like free healthcare, to its citizens. The Canadian government's decision to allocate healthcare in this way is an example of how they structure their _______.
Economy
Refer to Scenario 6.1. Val mentions to Jasmine that he has a friend who may join him in starting the pierogi truck. His friend has experience with marketing and operations, whereas Val is more experienced in restaurant management. They would plan to divide tasks a certain way to make sure that the work is divided fairly. Jasmine explains that the business ownership option he is describing is a(n) ____________.
Partnership
If the U.S. government were to take control of all enterprises that affect the social welfare of its citizens, a likely outcome would be an increase in _______.
Taxes
Germany attracts more investment than it extends into the rest of the world. This means that Germany enjoys a _______.
balance of payments surplus
Hannah owns a restaurant group that incorporated as a limited liability company (LLC) in Ohio. One of her top-performing restaurants, Mrs. Newman's Pie Factory, has been invited to open a location in Pittsburgh, which is just two hours away from the original location. Even though the two locations are so close, Hannah knows that she will have to file additional paperwork and pay separate taxes and fees in order to operate her business in Pennsylvania. This additional work is driven by ___________ that Hannah must deal with as the owner of an LLC.
the company's foreign status in other states
Siti is the CEO of a tech company in California. She is planning a new product launch, and she will need to hire a few new developers and engineers to get the product ready. She raised money for her company by issuing common stock on the New York Stock Exchange (NYSE). What kind of business is Siti running?
A C corporation
Amit is preparing a job advertisement for a new tech developer for his company. He is looking for someone with a lot of energy, so he included this wording in the ad: "Must be under 30 and proficient in emerging technology." Amit shared the job ad with a colleague for proofreading, and his colleague pointed out that Amit was demonstrating ________.
Age bias
When U.S. President Donald Trump imposed tariffs on imported steel, Charmaine was working as a project manager for a U.S.-based construction company. Charmaine's company had to pay more for the steel they imported from China, which decreased the overall profit on some of their biggest builds. After a few months, her company decided to raise the price of materials for all future builds to offset those extra costs. In this case, who ended up paying for the tariffs?
American consumers
Therese is an independent auditor who was hired to write an auditor's report for the shareholders of an entertainment-focused holding company. During her review, she found major discrepancies in how the company reported earnings versus what she could confirm by interviewing employees and reviewing transactions. What kind of opinion should Therese issue?
An adverse opinion
When the U.S. government decreases taxes and increases spending, as it did by passing stimulus packages in the wake of the COVID-19 pandemic, it may need to borrow money to cover its expenses. Members of Congress may bring attention to this growing federal debt as a political bargaining chip, especially as the amount the government has borrowed nears the _______.
Debt ceiling
Ahmad is a sole proprietor. When he decided to start selling his handmade greeting cards, he set up a website and started advertising his business, Daily Smiles, through social media. He did not have to file any special paperwork with the g
Ease of formation
Nevin manages a McDonald's franchise in the middle of Manhattan. He recently oversaw the installation of self-checkout kiosks, which promises to make the ordering process 30% more efficient and 50% faster. Refer to Scenario 2.1. If all fast food franchises in the United States were able to use the same technology, it would contribute to a(n) ______ in productivity for the country.
Increase
In 2008, Congress passed the Troubled Assets Relief Program (TARP) to help large financial institutions and automakers that were on the brink of bankruptcy. While this has been referred to as a "bailout", in reality, it functioned more like a _______, which many institutions have been able to repay over time.
Loan
The rising popularity of cryptocurrencies like Bitcoin, Etherium, and even Dogecoin has forced many consumers to rethink their definition of money. Now that many businesses are willing to use cryptos as their _______, consumers are also becoming more comfortable using It.
Medium of exchange
Kennedy is an event manager at a large hospital. He has been tasked with planning a large conference that will attract prominent physicians from around the world. Part of Kennedy's job is to ensure that there is as little interference as possible during meeting sessions. Refer to Scenario 5.1. Kennedy plans to research optimal room layouts and temperature, check the audio equipment well in advance of the meeting, and help each speaker understand how to use the microphones and where to stand to ensure that the audience will easily see and hear them. Kennedy is working to reduce __________ at the conference.
Noise
As many workers were forced to stay home during the COVID-19 pandemic, the demand for home-improvement supplies increased. Homeowners scrambled to secure contractors who would help with remodels and additions, many of which called for the use of lumber. As a result, the price of lumber skyrocketed. The United States could see an increase in the _______ as a result of shortages and supply-chain disruptions throughout the world.
Producer price index
The dairy industry is comprised of many producers who offer nearly identical products, such as whole milk and skim milk, offered at nearly identical prices. Despite this, a large beverage company called Hearts Cola chose to enter the dairy market with YumMilk, its line of premium, ultra-filtered milk products that boast lower sugar and higher protein contents. What kind of competitive market did Hearts Cola enter?
Pure competition
Catriona is scheduled to facilitate a new-employee training session. This is the first time the company has held an official training session like this, and Catriona is nervous that she won't have all of the information that new hires might be interested in. To prepare, Catriona has compiled a list of potential things they might ask about, along with plans on how to respond. Catriona is preparing the _________ part of her presentation.
Question
en and her partner decided to purchase a home in 2007 to take advantage of the low interest rate their bank advertised. After submitting a short application that didn't include a credit check, they were surprised that their bank chose to award them a much larger mortgage than they expected or believed they could afford. When the housing market began to decline, they found that their house was suddenly worth less than the total amount they owed the bank. Jen and her wife were likely victims of the ________.
Subprime mortgage crisis
Troy works in finance for a company that manufactures aerosol disinfectant sprays in the United States. His company, like many other companies in the United States, imports aluminum from overseas. He noticed in 2017 that the price of aluminum had increased, and that as a result, his company's overall profit had decreased. This increase in aluminum prices was a direct result of an increase in ______.
Tariffs
Recently, the Swedish government has had to cut back on some of the social services it provides its citizens, especially those that benefit older adults. One issue is that the aging population is much larger than the younger working population. The younger workers help fund those social services through _______.
Taxes
Bethany is a customer service agent at an insurance company. During her most recent performance review, her manager mentioned that she sometimes comes across as angry or bored during customer calls because she does not regulate the intensity of her voice: sometimes she is too intense, which can translate to anger, and other times she is not energetic, which can translate to boredom. Bethany's manager requested that she practice her __________ to improve her communication skills.
Tone of voice
The Trans-Pacific Strategic Economic Partnership Agreement is an agreement between four countries (Brunei, Chile, Singapore, and New Zealand) that calls for a reduction in 90% of the tariffs between each country. This ________ is meant to promote positive trade relations between the countries involved.
Trading bloc
Terry works as an independent auditor. He recently reviewed the financial statements for a long-haul trucking company. In his auditor's report, he indicated that there were no issues with the statements that he reviewed. What kind of opinion has Terry issued?
Unqualified opinion
In the 1980s, the U.S. government worried that Japanese car manufacturers would crush the U.S. car industry. At the time, Japanese cars were more fuel efficient and cheaper to buy. Rather than wait for the United States to impose import taxes, Japan decided to preemptively restrict the number of cars they would sell in the United States. This is an example of a(n) _______.
VER (voluntary export restraint)
Refer to Scenario 6.2. The J.M. Smucker Company acquired the Pillsbury brand of baking products in 2004. In 2018, the company decided to sell the brand to a private equity firm. As part of the sale, known as a(n) ________, The J.M. Smucker Company handed over all of the operations of the brand to the new firm.
divestiture
Drea is the director of marketing for a company that makes mobile phone batteries. She has been asked to evaluate international business opportunities. She initially recommended that her company focus on expanding to countries in the European Union because of their high gross domestic product (GDP), but recently she learned that cell phone penetration is an indication of _______ growth, so she reworked her recommendation to include India and parts of Africa.
economic
Allegra was hired to work for a large consulting firm right out of college, and she has only been with the company for six months. She is responsible for compiling, organizing, and analyzing accounting information for the company's stockholders. She spends most of her time meeting with various business-unit managers to discuss how they should present their numbers to the public. Allegra could best be described as a ________.
financial accountant
Graham manages a manufacturing facility. He is in charge of negotiating contracts for the building's rent, ensuring that the building and equipment are properly insured, and ensuring that the company is paying the correct taxes. Graham is most concerned about
fixed costs
Andrew wants to expand his baked goods business to other countries, but he worries about how his products will taste if he bakes them in his industrial kitchen in Montreal and then ships them overseas. He believes the best way to preserve the quality of his products is to sell the rights to his recipes and brand to bakeries in other countries so that they can deliver his products fresh. This is an example of entering international markets using _________.
foreign licensing
Chick-fil-A is known for having one of the most desirable _____________. In fact, it is harder to become the owner of a local Chick-fil-A than it is to get into Princeton University. One reason is that the contract doesn't require any upfront investment from the local owner. Another is that Chick-fil-A promises to provide top-notch support and training to ensure that each location is successful.
franchise agreements
Rory is in talks with Camp Bow Wow, a dog care services company, to establish a new location in Nashville, Tennessee. Before she signs any contracts, Rory wants to understand what kind of support the company will provide her as she opens the business. She also wants to know what will be expected of her in return. Rory should ask Camp Bow Wow for their __________.
franchise disclosure document (FDD)
The director of sales has asked Madina to show her the first quarter results for the sales team. Madina needs to determine how much money the team spent on travel versus how much revenue the team brought into the company. Madina refers to the company's _________ for this information.
income statement
Clio uses her accounting knowledge to help her colleagues understand the company's financial position and budgeting process. She even acts as an internal consultant, making recommendations about the best way to proceed based on the numbers she reports. Clio is acting as a __________.
managerial accountant
Jimmy works as a management accountant for an industrial landscaping business. He has been helping his colleagues determine the total amount of money they'll need to fulfill the anticipated number of contracts over the next three years. Jimmy has looked at trends in the cost of supplies and calculated the potential revenues from each anticipated contract. The final result of Jimmy's work is part of the company's _________.
operating budget
Theo is an app developer, and they have recently launched a new product that allows people to advertise their freelance work. Theo would like to launch their app in Mexico, but they worry that they don't understand the language or work culture well enough to customize the app for that market. Theo is concerned about __________.
sociocultural differences
When starting her consulting business, Ekaterina was worried about having to fill out complicated paperwork and doing taxes for both her personal and business incomes. She was less concerned about losing her personal assets because her startup costs were minimal (all she needed was a laptop and some business cards). She started a _________ for its ease of formation and possible tax advantages.
sole proprietorship
Blake's manager is out of the office today to take her kids to an amusement park, but he needs a quick answer on something that is relatively important. He knows that his boss will have her phone with her, and that the amusement park, which is a few hours away, will be noisy. Which communication channel should Blake consider in this situation?
text
Carlos is working on his start-up pitch. He is going to present his business plan to potential investors, and he believes that showing them a prototype of his product will be more impactful than just telling them about it. Which presentation element does the prototype represent?
visual aids
Each country develops a system that helps determine how resources are allocated: who can start a business, how those business owners should hire and pay workers, and what assistance the government will provide for those who cannot work. These are just a few examples of the decisions that contribute to a country's
Economy
Huy is putting together the financial statements for his company's upcoming annual meeting. The sales numbers over the last year were below expectations, but the company is planning to protect profits by cutting costs. Since the company has signed long-term contracts with the companies from whom they buy raw materials, they have to find other ways to cut costs. Which key users of accounting information are most likely to be concerned by this information?
Employees
Two long-time friends, Ben Cohen and Jerry Greenfield, decided that they wanted to go into business together. They took a correspondence course in ice cream making and then both put in an equal amount of money to fund their new business in a converted gas station in Vermont. Both Ben and Jerry were active in managing the business, and both accepted equal liability for any risks associated with it. Ben and Jerry likely started their business as ___________.
general partners
Annmarie started making earrings as a hobby, and she would give them to friends and family as gifts. Some of her friends started requesting more jewelry and even offered to pay Annmarie for her work. This prompted her to set up a website where she could sell her jewelry to a wider audience. Although she is just getting started, Annmarie believes that she can grow the business by investing more of her time into marketing her products and coming up with new designs. Annmarie has not filed any articles of incorporation. What kind of business has Annmarie formed?
A sole proprietorship
When Jerome started his computer repair service, he was the only owner. As his business picked up, he soon realized he would need to expand his operations. Luckily, he was able to bring on additional owners who were willing to invest in the company and help him create a long-term growth strategy. Which benefit of forming a limited liability company (LLC) does this describe?
Flexible ownership
Julia lives in a country where she is free to open her own plumbing business. She is also able to keep any profits she earns after paying taxes. Julia most likely operates in a _______ economy.
Free market
Massimo comes from a culture where it's considered incredibly rude to point, regardless of whether a person is pointing at a person or a location. During a recent meeting with some of his U.S.-based colleagues, he was shocked when he saw a few of people pointing directly at each other during a casual conversation. Massimo is observing how __________ can communicate different things in different cultures.
Gestures and posture
One of the contributing factors to the Great Recession was a lack of ______, which is what allowed banks to issue subprime mortgages without maintaining sufficient cash reserves.
Government regulation
Van's boss asked him to provide an analysis of future opportunities for their custom printing business, which has locations across Maryland. Van believes that his company has a really smart business model that could be leveraged across markets beyond Maryland. One of Van's long-term goals is to help his company launch in Asia because of the massive opportunity for _______ based on its developing economy.
Growth
Nevin manages a McDonald's franchise in the middle of Manhattan. He recently oversaw the installation of self-checkout kiosks, which promises to make the ordering process 30% more efficient and 50% faster. This new technology also means that each franchise could operate with fewer cashiers. Refer to Scenario 2.1. If all fast food franchises in the United States were able to use the same technology, it would contribute to a(n) ______ in unemployment for the country.
Increase
One of Andre's coworkers just retired. Andre missed the coworker's retirement party but still wants to say a quick goodbye. Unfortunately, he is not able to connect with his coworker before he leaves the office on his last day of work. Andre doesn't know this coworker outside of work, but he still wants to wish him well. What is the best method for Andre to communicate this message to his newly retired coworker?
Voice mail
Ramón studied business and accounting as an undergraduate and then went on to work for an accounting firm for three years. He recently left his job to attend a one-year master's program in accounting, and he wants to earn a professional license to assure his future employer and clients that he takes the profession seriously. Ramón is most likely pursuing a career as a(n) _________.
certified public accountant (CPA)
When Sean visited his grandparents in Edinburgh, Scotland, over the summer, he noticed that things he would normally buy at home in Alabama were much more expensive there. One morning, he used his credit card to purchase Starbucks coffee, which would normally cost $4 at home, but it showed on his credit card as $6.25 when converted back to U.S. dollars. Sean is experiencing a difference in the ________ between the United States and Scotland.
exchange rate
When Daniella is concentrating, it sometimes appears that she is frowning. She has noticed that sometimes when she is in meetings, her boss will suddenly interrupt and ask, "Daniella, is there something wrong?" Even though she is not upset, Daniella's _________ makes it seem like she is.
facial expression
New Zealand and Australia have developed an agreement to make doing business between the two countries seamless. As part of their agreement, they have eliminated all tariffs and quotas, and most products that can be sold in one country can be legally sold in the other. This is a prime example of the movement towards _______.
free trade
Cecilia started her own business offering accounting services to small businesses. She filed articles of incorporation to her state's corporation commission and named her company Grow Smart, LLC. Cecilia didn't mind having to put together the paperwork and pay a fee to incorporate her business; she was happy to do so to ensure she had __________ and the flexibility to add more owners and investors as her business grows.
limited liability
Lara and Armando have pooled their money to open a high-end hair salon in Manhattan, New York. Lara is an experienced stylist who is responsible for the overall operations of the salon, while Armando is an investor who does not actively participate in managing any part of the business. If the business were to fail, Lara would be personally liable for the business' debts. Armando, however, would not assume any personal liability. This is because they have formed a __________.
limited partnership
Austin has a meeting with the chief marketing officer (CMO) of his company this afternoon. Austin knows that he should come to the meeting prepared to talk through the company's financial statements and what the numbers mean for the marketing department. Austin has also offered to walk the CMO through the department's budget and provide recommendations on how to optimize spending over the next year. Austin is most likely a(n) _________.
management accountant
Melissa wants to understand how the company's sales performance and their operational efficiency balance each other out. She should refer to the company's _________ to understand this relationship.
net income
Dev works at a corporation called First Tee, whose mission is to "introduce the game of golf and its inherent values to kids and teens." Although Dev's company is a corporation, there are no stockholders, and their earnings are tax-exempt. Dev's company is a(n) ___________.
nonprofit corporation
Merle's boss is worried about stockholders' reaction to their company's recent performance. He has asked Merle to add extraneous information in the financial statements to help disguise the bad numbers. Merle knows that this would be a violation of the generally accepted accounting principles (GAAP) requirement that financial statements be _________, so he has escalated the issue to the company's chief financial officer.
relevant
Mei is an engineer who was awarded a patent for a new medical device that she invented. She wants to start a company so that she can market this new device and continue to research and develop similar medical devices. The startup funds she needs are more than she can raise from family and friends, so she is in talks with some experienced investors who would like to be active in helping her manage the company. They have recommended that she form a(n) __________ so that the company will be its own legal entity, and so the investors can be intimately involved in how the company grows without having to worry that their ownership stake will be eventually diluted.
statutory close (or closed) corporation
The chief financial officer wants a current view of the company's assets now that the company has issued stock. Madina has been asked to see how the company has structured its debt in terms of liabilities versus equity. Madina refers to the company's _________ to quickly demonstrate the debt structure.
Accounting equation
Sandra is independently working on a document that provides potential revenue opportunities for her company. She has compiled a list of resources that the company will need if they do decide to pursue any of the proposed opportunities, and she plans to present this to the company's leadership for their input and direction. She hopes that leadership will recognize her initiative and ask her to lead one of the projects she is proposing. Which company process is Sandra engaging in?
Budgeting
Apple sells its popular products, including the iPhone and Apple Watch, around the globe. Currently, most iPhones are assembled in Shenzhen, China. When Apple purchases these finished iPhones from the Chinese factories, which country can count those revenues toward their gross domestic product (GDP)?
China
Rosemary works in HR at a start-up in Silicon Valley. She has just been asked to fire a developer who has been with the company since it started. Rosemary knows that this is a delicate situation that requires some forethought. She wants to make sure that she uses the correct ___________ for delivering the bad news; her experience tells her that a face-to-face conversation is the most appropriate.
Communication channel
Refer to Scenario 6.2. Around the same time that The J.M. Smucker Company sold the Pillsbury brand, the company decided to purchase a firm, Big Heart Pet, which operated in a completely different industry: pet food and treats. This ____________ allowed The J.M. Smucker Company to diversify its product offerings even further.
Conglomerate merger
Marwa works as an accountant for a mortgage company. Her company is planning to add another wing onto their building, so Marwa anticipates that she will soon be asked to provide the company's latest financial statements to __________, who will evaluate the company's ability to repay a loan.
Creditors
Kennedy is also aware that there will be many attendees who do not speak English as their first language and who do not live in the United States, where the conference is taking place. He has put together a document for the conference speakers that outlines best practices when speaking to such a diverse audience. Kennedy is using this document in an effort to prevent _________ barriers.
Intercultural communication
Refer to Scenario 6.1. Jasmine is speaking to Val about his proposal for a pierogi food truck. Val's number one goal when forming his business is to protect his personal assets. He just bought a home and has a car that he shares with his spouse. Jasmine explains to him that he is describing _
Limited liability
Anders and his family make economic decisions on a daily basis: things like where to shop, what prices they are willing to pay, and which brands they prefer. The study of these choices is known as ________.
Microeconomics
Joon is a successful entrepreneur who lives in Denmark. He started his business in 2010 when the tax rates were higher. He considered moving his business to a country with more favorable tax rates, but then Denmark lowered its corporate tax rate to encourage domestic investment. Joon is encouraged by this move towards a more _______ economic system.
Mixed market
Camilla just started working at a large, multinational law firm. Her previous job was in a small firm where coworkers were close-knit and collegial. At her new firm, she has noticed that older, more experienced associates keep their office doors closed and don't often make eye contact in the hallways. Camilla is worried that these associates are not open to speaking with her. Camilla's workplace may have a(n) ______ barrier to communication.
Organizational
Annabelle is working on a cover letter to include with her job application for a position at Google. She knows that jobs at Google are incredibly competitive, so she needs to put her best foot forward. In her closing paragraph, she writes: "Google is such an incredible company, and I am hoping to one day be hired by them so that I can help contribute to their mission 'to organize the world's information and make it universally accessible and useful.'" This sentence can be improved because it includes __________.
Passive voice
Yunyun is running for a seat on the local school board. She has two children in the school district and is concerned about the lack of arts classes and programming available. She has had some private conversations with other parents and learned that some believe that adding more arts programs will mean that the school has to cut classes in other subjects. Yunyun doesn't believe that other classes should be cut, but she worries that when she speaks about increasing access to the arts, other parents will become hostile to the idea. Yunyun should prepare for potential _________ barriers to communication.
Perceptual
Abel is preparing his firm's accounting statements for the year, and he notices that someone has changed some of the terminology. Although some terms are interchangeable, like "sales" and "revenues," he is concerned that these changes may be a violation of the generally accepted accounting principles (GAAP) requirement that financial statements be ____________.
consistent
Miriam just moved to the United States. In her home culture, looking down is sometimes a sign of respect, but in her new job, she has noticed that her coworkers will ask her if she is feeling well if she looks down too much. They seem to think that she is either unwell or upset. Miriam may be struggling with the concept of _________ as a positive communication tool in the United States.
eye contact
Anong has always wanted to open his own restaurant in his hometown, Bangkok, but he has worried about the time and investment needed to build a brand and menu from scratch. He decided to pursue ownership of a Kentucky Fried Chicken. Anong entered a contract with Yum! Brands, Inc., which is headquartered in Louisville, Kentucky. Per the contract, Anong must adhere to corporate rules about branding, menu, sourcing, employee uniforms, etc. The relationship between Anong and Yum! Brands is an example of _______.
foreign franchising
Ricardo has always wanted to own his own business, but he doesn't want to have to build a brand from the ground up. After doing some research, he realizes that the best way to reconcile his entrepreneurial spirit with his reluctance to start from scratch is to become a ________. That way, he can leverage the power of an existing brand while still managing his own business.
franchisee
Omar and Jaqueline want to open their own law practice. Both are ready to invest in startup costs, like paying rent for an office space and putting together a website that helps advertise their new firm. The only thing that is holding them back is the fear of losing personal assets if the business does not do well, and if they are unable to repay business-associated debts with their revenues. Based on these concerns, Omar and Jaqueline should explore forming a(n) __________.
limited liability partnership (LLP)
In the early 1900s, Martín's family grew grapes on their land in California. Over time, grocery stores, their biggest customers, began to import grapes from countries like China. Martín's family started shifting their focus to growing almonds instead of grapes so that they could avoid being underpriced by international markets. In this situation, growing grapes is the second-best choice for Martín's family. So, the value from growing and selling grapes represents the ________ for Martín's family.
opportunity cost
Patricia and Yon started a coffee shop together. Patricia is in charge of managing food prep and marketing while Yon manages coffee roasting and hiring. They try to split up all other tasks evenly. Patricia and Yon have most likely formed what kind of business?
a general partnership
Many items that are in high demand among U.S. consumers are no longer manufactured in the United States. One such item is mobile phones. Most of the mobile phones that are purchased in the United States are imported from China. This is one product that contributes to the _______ that the United States has with China.
trade deficit
Geraldine is preparing a proposal for a new memory-care facility that would represent a significant expansion to the current continuing care retirement community where she works. The proposal is long and includes a lot of information about the current demand for memory care, relevant demographic trends, a cost analysis, and a proposed timeline. Geraldine wants to make sure that the document is organized and easy to read. What formatting element should she consider using?
Block paragraphs
Peter has always been shy, but he's trying to practice his presentation skills so that he can advance at work. Peter attends a class on effective communication skills, and the facilitator points out that Peter often crosses his arms in front of his chest when he speaks, which can make him appear "closed off" or defensive. The facilitator is pointing out a potential _________ barrier to communication that Peter should be careful to avoid.
Body language
The U.S. government earns revenues from taxes and fees paid by both citizens and businesses. When the government is able to spend less than it earns through these revenues, there is a _______
Budget surplus
Eeva is preparing a company-wide email that includes a list of action items that each employee must complete before the end of the year. She wants to make sure that employees can easily see that she is presenting a list. What formatting element should Eeva consider for her list?
Bulleted lists
Refer to Scenario 6.1. Val's long-term plan is to expand his pierogi truck into a brick-and-mortar restaurant. Eventually, he would like to open numerous locations of his restaurant in cities around the United States. Once he grows to that level, Val would like to file articles of incorporation that establish his business as a separate entity, where all of his business assets are separate from any of his personal assets. Jasmine explains that he is describing a ____________.
Corporation
Hiro has been working closely with the engineering team at his company on a new, highly technical project. The company has invested a lot of money in this project, but Hiro is worried that the prototype won't be finished by the expected deadline. His engineering counterpart seems stressed out by the project, and Hiro suspects that he may be falling behind on his work. Hiro wants to have a candid conversation to figure out where the project stands and devise a way to keep things on track. Which communication channel should Hiro consider for this conversation?
face to face meeting
Japan has one of the largest national economies in the world and enjoys robust trade relations with the United States and China. One of its main exports is automobiles and auto parts. In fact, Japanese cars are so popular around the world that when considering total trade, they have one of the highest _______ in the world.
trade surpluses
When Jessica took out a loan to finance her coffee delivery service, she hoped that she would earn enough revenue to repay the loan and interest within the first five years of operation. Unfortunately, she had to abandon the business after just three years. Despite her business no longer being in operation, Jessica was still responsible for the remaining balance of the loan, which she had to pay back using her personal funds. This situation was the result of the ________ Jessica faced when starting a sole proprietorship.
unlimited liability
Shawnika owns a successful interior design business in New York. She is looking to expand into Europe by opening an office in Barcelona. She has weighed different options for expansion and has decided to work with her friend James, who owns a contracting business in New York and who is also exploring international expansion. Shawnika and James will lease office space together in an historic building in Barcelona. They will create a joint marketing budget, advertise their services in tandem, and also share administrative staff. This is an example of ___________.
a joint venture
Jodie works in the graphic design department at a financial services firm. She loves the part of her job that allows her to be creative, but she struggles when it comes to understanding all the different products the company offers. She knows that she should have a deep understanding of their product offerings, but she has trouble with _______ during meetings where they discuss the specifics. She sometimes finds herself doodling on her notepad or daydreaming instead of paying attention.
active listening
Ray Kroc bought a small fast food restaurant called McDonald's in 1961. Under his ownership, the restaurant became so popular that he needed help rapidly expanding into new locations around the United States, and eventually the world. To help with this rapid growth, McDonald's became a _______, allowing others to enter into strict contracts that allowed them to use McDonald's branding, recipes, building design, and operational procedures in exchange for a percentage of revenues.
franchisor
