AdvBusCC: IntroBus/MGMT100 DC): Section 501
What does double taxation mean?
Companies must pay taxes on their earnings, and then stockholders pay taxes on their dividends.
the organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy society's needs is called
business
Before seeking financial backing for his new business, Tyler puts together a concise document explaining the nature, mision, and goals of his new business and its expected costs and potential. Tyler has constructed a(n)
business plan
Despite trade restrictions, international business is
increasing
The rivalry among businesses for sales to potential customers
is referred to as competition
What is the significance of the name preferred stock?
its claims on dividends are paid before those of common stock
Which economist has been called the father of communism?
karl Marx
To raise capital, Candace Tyson and Martha Black plan to sell stock to between 108 and 200 investors. They also want to avoid double taxation. Which type of business ownership would you recommend?
limited liabilty company
When a firm's expenses are greater than its sales revenue, the firm has a
loss
When economists study the national economy or global economy, they are using a _________________ approach
macroeconomics
Perfect competition is characterized by
many buyers and sellers
A group of people who have been singled out for unfavorable treatment on the basis of race, religion, politics, or national origin is called
minority
The SBA places special emphasis on aid to _____________________.
minority-owned businesses
The United States, whose economy exhibits elements of boh capitalism and socialism, has what is known as a __________ economy.
mixed
Which of the following is necessary for starting a sole proprietorship?
no specific legal documents
__________________ is a market situation (or industry) in which there are few sellers.
oligopoly
One factor that influences ethical decision making is the _____________ factor
oppurtunity
Approximately what percentage of the jobs in the United States do small businesses provide?
over 50 percent
A voluntary association of two or more people acting as co-owners of a business is known as a
partnership
A corporation is an artificial person created by law
true
A license to operate an individually owned business as though it were part of a chain is a franchise.
true
Consumerism consists of all those activities that are undertaken to protect the rights of consumers in their dealings with
true
Government intervention into business increased after the Great Depression of the 1930's
true
Profits of a large corporation are taxed twice, once as a corporate income and again as personal income of the stockholders.
true
Six basic rights of consumers are the right to safety, the right to be informed, the right to choose, the right to be heard, the right to consumer education, and the right to serve.
true
Social responsibility is the recognition that business activities have an impact on society and the consideration of the impact in the business decisions.
true
The main reason small businesses fail are poor management skills on the part of owners, inadequate capital, and poor planning.
true
Today, few firms are either purely economic or purely socioeconomic in their outlook.
true
When a country imports more than it exports, it has a(n)
unfavorable balance of trade
All of the following are advantages of the partnership form of organization except:
unlimited liabilty
Who arethe members of NAFTA?
us, canada, mexico
Acid rain causes ______________ pollution
water
Funding for a program of social responsibility can come from
corporations that absorb the costs as a business expense
Which of the following is a disadvantage of the corporate form of organization?
Both the corporation and its stockholders are taxed on profits retained and distributed.
Which of the following is a requirement for an S-corporation?
Can have no more than 100 stockholders.
Kerry wants to start a business to sell handmade jewelry. She is very competent at making the jewelry and teaching others to make it, and she has saved a reasonable amount of money to start the business. Who of the following would make the best partner for Kerry?
. Natalie, who has business experience with accounting, management and marketing
Which form of franchising is the most common today?
A franchisor supplies brand names, techniques, or other services instead of a complete product
In 1967, several Asian countries banded together to reduce the trade barriers between themand encourage trading among themselves. Thisis known as the:
Association of Southeast Asian Nations
At present, the US has an embargo against North Korea because
At present, the US has an embargo against North Korea because
A government agency with the power to investigate complaints of discrimination and to sue firms that practice discrimination is the
Equal Employment Opportunity Commission
One example of an economic community is the organization started by France, Germany, Belgium, Italy, the Netherlands, and Luxembourg. This organization is known as the
European Union
An international organization formed at the end of WWII by the United States and 22 other countries whose goal was to reduce or eliminate tariffs and other barriers to world trade is called the:
GATT
Which of the following scenarious would best exemplify Adam Smith's view of best serving the intersts of society?
Individuals in the country may pursue their own economic growth and self-interest by doing whatever is best for them
What do franchisees typically have to pay to the franchisor?
One-time franchise fee and monthly royalties based on sales
SBA stands for
Small Business Administration
Sarah owns a 7-elevan franchise. What is the primary disadvantage of owning a franchise for Sarah?
The franchisor still retains a great deal of control.
What is the common mistake that small-business owners make when their business begins growing?
They over-expand without proper planning.
A guide to acceptable and ethical behavior is known as
a code of ethics
A reduction of the value of a nation's currency relative to the currencies of other countries is called
a currency devulation
According to economists, inflation is
a generalin the level of prices
An employee's decision to inform the press or government officials of his/her firm's unethical practices is referred to as
a whistle-blowing
Pollution in our country is made up of
a. air pollution b. land pollution c. water pollution Selected: d. all of the above
In addition to political considerations, all of the following are reasons for trade restrictions, except:
a. protecting new and weak businesses b. protecting health of citizens c. protecting national security Selected: d. All of the above
Because it controls the world's diamond deposits, the DeBeers Consolidated Mines, LTD, has a(n)
absolute advantage
A plan designed to increase the number of minority employees at all levels within an organization is called
affirmative action program
Globalization represents a huge opportunity for
all countries- rich or poor
The _____________________ is a legal document that lists and explains the terms of the partnership.
article of partnership
The primary financial function of the Small Business Administration is to __________________.
assist in any means, one in which is to guarantee loans
When was GATT first established
at the end of WWII
Steve Wilson, a chef at a major restaurant in San Francisco, wants to start his own restaurant. He surveys the market, finds a suitable location, and calculates how much money he will need to lease the building and purchase the necessary equipment and supplies. Steve visits his banker and requests a loan. The money Steve will receive from the loan and the resources he will purchase with it are known as
capita
Mars, Inc., maker of M&M's and other candy is 100 percent owned by the Mars family and is therefor referred to as an
closed corporation
A system where the basic economic questions are determined, at least to some degree, through centralized government planning is referred to as a _______________ economy.
command
Kim, Sandra, Jerry, and Wilma belong to a business that buys groceries in bulk, then distributes them to members. This type of business is called ________________.
cooperative
The form of business organization that accounts for just over 80 percent of all sales revenue in the United States
coporations
The form of business ownership most heavily regulated by the government is the _____________
corporation
The most effective form of business organzation for raising capital is the
corporation
Microeconomics is the study of
decisions made by individuals
A distribution of earnings to the stockholders of a corporation is a(n)
dividend
All of the following are disadvantages that Sean should consider before entering a partnership agreement( Articles of Partnership) with his cousin except:
double taxation
Which of the following is not a disadvantage of sole proprietorships?
double taxation
_____________ is the exportation of large quanties of a product at a price lower than that of the same product in the home market
dumping
______________ is the study of how wealth is created and distributed.
economics
The United States bans Cuban cigars and other Cuban products from entering the U.S. due to political difficulties. This action is called a(n)
embargo
The United Kingdom sells industrial supplies and materials to many nations around the world. The U. K. engages in
exporting
According to economists, natural resourses, labor, capital and entrepreneurship are called
factors of production
A policy of considering only nonminority applicants for job openings is called reverse discrimination.
false
An argument for increased social responsibility is the fact that, because business managers are primarily responsible to business owners, they must be concerned with providing a return on the owner's investment.
false
Because there are two or more people in a general partnership, bankers, suppliers, and other creditors are not concerned about unlimited liability.
false
Every partnership must have at least one limited partner.
false
Franchising experienced tremendous growth during the early 1730's.
false
Franchising is limited only to fast food establishments.
false
Small businesses account for all nongvernment employment.
false
The economic model of social responsibility places emphasis not only on profits but also on the impact of business decisions on society.
false
The purchaser of a franchise is called the franchisor.
false
Whistle-blowing is an attempt by business to stop employees from exposing their unethical business behavior.
false
Working conditions in the early twentieth century were not much different from those that exist today, except for the more advanced technology involved.
false
Eric decides to purchase and operate a SUBWAY restaurant. Eric is the ____________.
franchisee
An individual or organization granting a license to operate an individually owned business as though it were part of a chain of outlets or stores is a(n) _____________. a. franchise
franchisor
All of the following are advantages that small businesses have, except:
greater potential for making a profit
The total dollar value of all goods and services produced by all people within the boundaries of a country is called
gross domestic produc
The U.S. wishes to import no more than 100 million tons of sugar from India in any given year. The type of import restriction imposed is a(n)
import quota
Purchasing products or materials in other nations and bringing them into one's country is
importing
When a firm's sales revenues are greater than its expenses, the firm has a
profit
Which of the following is an advantage of a sole proprietorship?
profits are taxed as individual income
Economists define a __________________ as two consective three-month periods of decline in a country's GDP
recession
An import duty has the effect of all of the following except:
reducing a trade restriction
Which of the following is not one of the four states included in a typical business cycle?
repression
Mary's cleaning business has several customers but is not dominate in its field. This is an example of a(n) _____________ business.
small
Example of command economies include
socialism and communism
Another name for a tax on trading.
tariff
When the United States levies tax on textiles from India, this tax is a type of
tariff
Productivity can bst be described as
the average level of output per worker per hour
Initiating a social responsibility program takes
the commitment of top executives
An individual's desire to create a new business is referred to as ____________________.
the entrepreneurial spirit
In the 1970's, Steve Jobs and Steve Wozniak, the founders of Apple, were creative, free-spirited individuals who decided that being corporate underlings was not what they wanted from a career. They had an innovative idea for a product and desired to create their own business based on this idea. All of the following are factors that could have led them to go into business, except:
the low risk and high rewards
Unlimited liability means:
the owner is responsible for all business debts