23SP BUSN 110 - Introduction to Business - Week Two: Quiz 1

The original purpose of the _____ was to help build infrastructure in developing countries and to help relief the debt burden of these countries.

World Bank

Which of the following businesses provides its customers with a service?

a law office

Which of the following statements about ethics training is true?

All of the above statements about ethics training are true.

_____ are government regulations that give special priority and privileges to domestic manufacturers.

Buy-national regulations

Which of the following statements about those people designated by demographics as millennials is true?

Millennials are technologically savvy and prosperous young people.

The Uruguay Round of trade negotiations:

was the most ambitious global trade agreement ever negotiated

Which of the following statements about a general partnership is true?

Partners in a general partnership co-own the company's assets.

_____ are corporate takeovers financed by large amounts of borrowed money.

Leveraged buyouts

Iris Souza started the summer with $30. She took $10 and made signs for her dog walking service. She posted the signs all over her neighborhood. She used the other $20 to buy a stout leash and a pooper-scooper. At the end of the summer, after buying herself a new pair of shoes for $50 (she had worn her other shoes out walking dogs), she had $125 left. What was Souza's profit for her summer job?

$125

Why would a company choose to engage in a conglomerate merger instead of a vertical or horizontal merger?

A conglomerate merger is done to reduce risk.

What is the primary difference between a good and a service?

A good is tangible, and a service is intangible.

Rebecca Siddoway own and operate Country Candies. Siddoway specializes in making rich, creamy toffees that she packages in attractive gift boxes and sells through the mail. What would be the advantage to Siddoway if she decides to incorporate her business?

Corporations have an enhanced ability to attract financing.

With its ease of registration and pro-corporate policies, _____ is called the "state of incorporation." About half of the Fortune 500 companies are incorporated there.

Delaware

_____ combine the inputs in the production of goods and services for what are intended to be profitable ventures.

Entrepreneurs

Curtiss Anaya is planning to sell kites on the beach this summer to pay for next year's school expenses. _____ refers to the potential that Curtiss will lose money and waste his time and end up at the end of the summer with not enough money to cover his expenses.

Risk

_____ is a philosophy that focuses on the consequences of an action to determine whether it is right or wrong. This philosophy holds that an action that affects the majority adversely is morally wrong.

Utilitarianism

Restricted operating freedom in franchising means that the franchisee must conform to:

all of the above

A _____ regulation in the United States bans the use of foreign steel in constructing U.S. highways.

buy-national regulation

The two types of cooperatives are:

buyer and seller

A domestic firm may decide to contract for the production of its goods by an established foreign manufacturer. Such private-label manufacturing by a foreign company is called:

contract manufacturing

A _____ is a form of trading arrangement in which part or all of the payment for purchased goods or services is in the form of other goods and services.

countertrade

All of the following terms are associated with international trade EXCEPT:

discount rate

At the base of the corporate social responsibility pyramid is:

economic responsibilities

A company can only be concerned about its _____ responsibilities once it has met its economic and legal responsibilities.

ethical

The fifth factor of production identified by many managers and academicians is:

knowledge

Inputs, such as natural resources, labor, capital, and entrepreneurship, are known as:

factors of production

Currency markets operate under a system called _____. This means that prices of currencies vary based upon demand and supply of that currency.

floating exchange rate

Nations sometimes form free-trade associations and establish areas where there are few, if any, export and import duties or other regulations that would act as barriers to trade among partners. These are called:

free trade zones

Which of the following is an example of a factor of production?

labor

Utilitarianism:

is difficult to implement because it is hard to tell how one decision will impact a large number of people.

The Caucasus Mountains along the northeastern border of Georgia (one of the former Soviet republics) makes it difficult for the nation to trade with other former Soviet republics that are to its north and east. The mountain range acts as a(n):

natural trade barrier

In a(n) _____, a few sellers can exert substantial control over prices.

oligopoly

An S corporation is generally set up to:

reduce tax burdens

Strategic giving:

refers to the practice of tying philanthropy closely to the corporation's mission or goals

Tonya Thomas is tired of working for other people. She wants to start her own administrative services businesses and control her own work schedule. She wants to have sole responsibility for all business decisions. Thomas should form a(n):

sole proprietorship

For Lladro Comercial, S.A., the manufacturer of handcrafted porcelains, its employees, suppliers of the paints used to decorate its porcelains, retailers of its products, and people who benefit from its philanthropy are all:

stakeholders

The _____ of any country is measured by the output of goods and services people can buy with the money they have.

standard of living

Seeds of Change manufactures and markets certified organic entrees. Its mission reads, "At Seeds of Change, we're committed to making delicious foods that are healthy for you as well as the planet." In support of this mission, the company donates money to support environmental protection activities. In other words, Seeds of Change engages in:

strategic giving

Back in the late 19th century, the Carnegie Steel company controlled not only the mills where the steel was manufactured, but also the mines where the iron ore was extracted, the coal mines that supplied the coal, the ships that transported the iron ore and the railroads that transported the coal to the factory. Through several _____ mergers the steel company gained control of the various resources it needed to product steel.

vertical

Social responsibility goes beyond obligations provided by law or union contract. Two important aspects of social responsibility are that the obligation is both:

voluntary and broad