BA Chapter 4, MIE CH 4 Smartbook, Chapter 4, Exploring Business: Chapter 4, Ch. 5 Understanding Business: How to Form a Business, Business Chapter 5 test, Chapter 4 Smartbook, Intro To Business, Chapter 3 concepts of business, BUS 100 CH. 3 business...
Which of the following is NOT true about APEC?
Its common currency is the euro.
"There are more ________ than _______, but _______ make more profit than ________."
"There are more sole proprietorships than corporations, but corporations make more profit than sole proprietorships."
___? advantage exists when a country has a monopoly on producing something and __? advantage theory states a country should produce what it can produce most effectively and efficiently.
*Absolute *comparative
which of the following are function of export trading (& export-management companies) that assist companies engaged in direct exporting?
*Assistance in establishing trading relationship *match buyers and seller *help with foreign customs offices
Global trade is measured using two key indicators known as the?
*Balance of payment *Balance of trade
An embargo?
*Bans all trade of a certain product *Bans all trade with particular country
Which of these countries are among the united states top trading partners?
*Canada *China *Mexico
The North American Free Trade Agreement (NAFTA) created a free-trade area among the United States, ___, and ___.
*Canada *Mexico
which of the following are benefits associated with offshore outsourcing ?
*Companies can focus on business areas where they can expand and grow *Companies can create efficiencies
Darla's bicycle shop in the United States is experiencing a slowdown in its growth. She knows the global market offers many opportunities. Which of the following are ways Darla's business could engage in the global market?
*Create an online sales site that ships globally *Import materials from Germany. *Export bicycles to retailers in Australia.
Which of the following are common markets?
*EU *ASEAN *Mercosur
a business can legally compete in global markets by using which of the following strategy ?
*Franchising *licensing *exporting
Which of the following countries are members of the Central Free Trade Agreement (CAFTA)?
*Honduras *Nicaragua *Guatemala *Costa Rica
Which of the following are likely benefits of exporting/
*Increased number of potential customers *Increased sales and revenues
Aiden does not offer any direction to his employees regarding ethical behavior. Because of this, Aiden is putting his company at risk for which of the following?
=manipulation -dishonesty -conflicts of interest
Which of the following are considered benefits of contract manufacturing?
*Labor costs in foreign market may be lower than the labor costs in the firm's host country *It can be used to temporarily meet an unexpected increase in orders *It enables producer or business to experiment in a new market without incurring heavy start-up costs
culture can include which of the following ?
*Language *Religion *Values and Attitudes
when it comes rtf getting involved in international business what are the three strategies that require the least amount of commitment and effort ?
*Licensing *exporting *franchasing
The development of a common market changes the way goods and services are traded within that market. Which of the following are examples of such charges?
*No internal tariffs *Common external tariff *Coordinated laws to facilitate exchange among members.
Which of the following are disadvantages of international joint ventures?
*Shared technology may become obsolete *The joint ventures may become too large and inflexible
____? and ____? sized businesses are often better prepared for the global market because they are able to react more quickly to opportunities.
*Small *Medium
which of the following are considered licensors benefits of licensing ?
*The foreign licensee purchases items (start-up and/ or supplies) from the licensor *Gaining new revenues *Licensors spend little or no money to produce products
Which of the following are changes induced by NAFTA?
*The trade volume among the United States, Canada, and Mexico more than tripled *The value of U.S exports to NAFTA partners has increased
Which of the following are considered to be positive effects of NAFTA?
*The value of U.S. exports to NAFTA partners has increased. *Trade volume among the three partners has expanded significantly.
which of the following are reasons why some governments establish trade protectionism?
*To avoid foreign competition *To save local jobs *To allow domestic producers to survive and grow *To guard against dumping
Which of the following are functions of the world trade organization?
*To mediate trade disputes among nations *To oversee cross-border trade issues
which of the following ae functions of export assistance centers (EACs)?
*Trade- finance support *hands on exporting assistance
why is it important to analyze the local technological and physical forces in the business environment before doing global business in a given market?
*Transportation systems may be affected by weather *Communication systems may be primitive
Which of the following are possible ways offshore outsourcing could have a negative impact on the home country?
*Wages fall *Permanent loss of jobs *Reduced product quality
Contract manufacturing is a type of outsourcing when a ___? company produces private label goods which a __?company then markets under its own brand name.
*foreign *domestic
which of the following are ways to experience other cultures that can help one to think globally?
*learning about foreign cultures *study foreign languages *traveling abroad
The benefits associated with strategic alliances is that they provide broad access to?
*market *capital *technical expertise
unlike joint ventures, strategic alliances share?
*market *expertise
Which of the following are considered to be sociocultural forces that affect global trade?
*religion *social structures *values
the benefits of creating a joint venture when doing business internationally include ?
*shared marketing expertise *shared technology *access to restricted local market
,
,
Select the questions to consider when determining whether an action is ethical
- Are there legal restrictions? - How does this activity fit with your own beliefs and values? -Is this action customary in your industry? Would this activity be accepted by your co-workers?
Select the three items that are usually listed in the articles of partnership.
- Contribution (money or assets) of each partner - How profits will be distributed - Authority and responsibility of each partner
Disadvantages of a Corporation
- Double Taxation - Expensive to Form - Must Disclose Information to many people - many employees are not stockholders
Advantages of a Partnership
- Ease of Organization - Availability of Capital and Credit - Combined Knowledge and Skills - Quicker Decision-Making - Fewer Regulatory Controls
Advantages of Sole Proprietorships
- Easy and relatively inexpensive to start up - Secrecy - All profits belong solely to the owner - Flexibility/Control of the Business - Most freedom from government regulation - No Double Taxation - Easy to dissolve sole proprietorship
A sole proprietor needs skills in which of the following? (select all that apply) Finance
- Finance - Personnel management - Marketing
Advantages of a Corporation
- Limited Liability - Ease of Transfer and Ownership - Corporations do not die if an owner leaves - External Sources of Funds - Most potential to expand
Select from the following three resources available to a sole proprietor to obtain funds.
- Loans from a bank - Money from friends and family - The business owner's own personal funds
What are two advantages to the partnership form of ownership?
- More skills and knowledge are available - More financial resources are available
What does an article of partnership contain?
- Name, Purpose, Location - Duration of the Agreement - Partnership Capital: money or assets that each partner has contributed - Each partner's individual role - Salaries of each partner - Division of profits and losses - Restrictions
What does an article of incorporation contain?
- Name, Purpose, Location - Expected Life of the Corporation - Classes of stock & number of shares - Names and addresses of the initial board of directors/ incorporators - Salaries of each partner - Division of profits and losses - Restrictions
According to John F. Kennedy, which of the following represent the four basic rights of consumers?
- The right to choose - The right to be heard - The right to be informed - The right to safety
Disadvantages of a Partnership
- Unlimited Liability - All partners are responsible for the business actions of other partners - Partnership dissolves if one partner leaves - Profit must be evenly distributed - Limited Source of Funds
Disadvantages of Sole Proprietorships
- Unlimited Liability - Limited Sources of Funds - Higher Interest Rates on loans - Limited Skills - Business usually doesn't continue if the owner dies or stops working - Lack of Qualified Employees - High Marginal Tax Rate
Select from the following those items that represent a misuse of company resources.
- Using the company computer for sending personal e-mails - submitting personal expenses on a company expense report - Using the company copier for personal use
Having carefully chosen partners with different skills and knowledge can help a partnership succeed because ______. (select all that apply)
- it allows people to specialize in a particular area -no one person has all of the skills needed
Which of the following are the three most common factors that executives give for increase in employee turnover?
- loss of trust in the company -unfair employee treatment - a lack of transparency among company leaders
According to your text, ethical decisions in organizations are influenced by which of the following key factors?
- the opportunity to engage in misconduct - individual moral standards and values - the influence of managers and co-workers
Select the three items that are usually listed in the articles of partnership.
-Contribution (money or assets) of each partner -Authority and responsibility of each partner -How profits will be distributed
What three barriers to trade fall into the ethical/legal/political category?
-Different ethical values -Trade restrictions imposed on international trade -International laws
A sole proprietor needs skills in which of the following? (select all that apply)
-Marketing -finance -personal management
What are two advantages to the partnership form of ownership?
-More skills and knowledge are available -More financial resources are available
Select the two main types of partnerships.
-general -limited
A code of ethics serves to ______.
-help to establish uniform ethical conduct -alert employees about important issues and risks -provide the foundation for evaluating ethical decision making
An advantage of having one or more partners is that ______. (select all that apply)
-more skills and knowledge are available -more financial resources are available
Having carefully chosen partners with different skills and knowledge can help a partnership succeed because ______. (select all that apply)
-no one person has all of the skills needed -it allows people to specialize in a particular area
Payments, gifts, or special favors intended to influence the outcome of a decision are considered ______.
Bribery and are unethical
.
.
The US Census Bureau estimates that ______ out of every _______ businesses in the US is a franchise.
1 out of every 10
*** why is it important to analyze the local technological and physical forces in the business environment before doing global business in a given market?
1. Communication systems may be primitive 2. Transportation systems may be affected by weather
International marketplace(companies with complex relationships)
1. Different laws of its own nation, international laws and the laws of the nation with which its trading. 2. Various trade restrictions. 3. Changing political climates. 4. Different ethical values.
Rank the strategies for reaching global markets according to the level of risk and commitment. (Highest level of risk and commitment first.)
1. Foreign direct investment 2. International joint ventures and strategic alliances 3. Contract manufacturing 4. Franchising 5. Exporting 6. Licensing
Types of Partnership
1. General Partnership 2. Limited Partnership
Firm doing business most obey the laws of host country
1. Some countries restrictions on how much local currency can be taken out of its borders. 2. Other countries may forbid foreigners from owning property. 3. Some countries fail to honor U.S. laws and/or fail to enforce their own laws. 4. In some parts of the world, copyright and patent laws are less strict than in the U.S.
Function of the World Trade Organization (WTO)
1. To oversee cross-border trade issues 2. To mediate trade disputes among nations
the north american free trade agreement (NAFTA) went into effect in 1994 and merged which three countries into one free trade market?
1. canada 2. mexico 3. untied states
which of the following barriers to trade fall into ethical/legal/political category?
1. different ethical values 2. trade restrictions imposed on international trade 3. international laws
name the two major factors that are making it possible for more and more companies to become involved in international trade.
1. falling political barriers 2. tachnology
_ is buying products from another country while _ is selling products to another country
1. import 2. export
which of the following are considered major hurdles to successful international trade?
1. legal barriers 2. economic barriers 3. political barriers
-Sole Proprietorship -Partnership -Corporation -S Corporation
1. one owner 2. Two or more owners 3. Any number of shareholders 4. Up to 100 shareholders
in order to discourage dumping (the act of a country or business selling products at less than what it costs to produce them), a country can implement which of the following?
1. quotas 2. tariffs
which of the following is part of the infrastructure of a country and thus supports its economic activities?
1. schools 2. hospitals 3. railroads
When it comes to fairness and honesty, which two actions are expected of businesses?
1. to avoid harming customers , employees, clients, or competitors 2. to follow applicable laws and regulations
International trade barriers
1.Economic barriers 2.Ethical, legal and political barriers. 3. Social and cultural barriers. 4. Technological barriers.
The Global Business Ethics Survey found that nearly_______of employees surveyed observed examples of ethical misconduct.
50%
minority-owned businesses are growing at more than ________ times the national rate.
6
trademark
A __ is a brand (name, mark, or symbol) that is registered with the U.S. Patent and Trademark Office and is thus legally protected from use by any other firm.
contract
A __ is a mutual agreement between two or more parties that can be enforced in a court if one part chooses not to comply.
In a partnership, why is shared business responsibility considered a disadvantage?
A bad business decision by one partner can jeopardize the personal resources of the other partner.
Cooperative
A business owned and controlled by the people who use it - producers, consumers, or workers with similar needs who pool their resources for mutual gain.
What is a sole proprietorship?
A business that is owned (and usually operated) by one person
Sole Proprietorship
A business that is owned, and usually managed,by one person
liability
A business's legal responsibility for negligence in the design, production, sale, and consumption of products is referred to as product __.
Social responsibility is defined as ________.
A business's obligation to maximize its positive impact and minimize its negative impact on society
social responsibility
A business's obligation to maximize positive impact and minimize impact on society
maximize the owner's investments in the firm
A business's primary obligation to its owners and investors is to ____
- alert employees about important issues and risks - provide the foundation for evaluating ethical decision making - help to establish uniform ethical conduct
A code of ethics serves to __
corporate citizenship
A commitment to __ by a firm indicates a strategic focus on fulfilling the legal, ethical, economic, and voluntary responsibilities expected of it by its stakeholders.
corporate citizenship
A commitment to ____ by a firm indicates a strategic focus on fulfilling the legal, ethical, economic, and voluntary responsibilities expected of it by its stakeholders
A common market (also called a trading block) is a regional group of countries with?
A common external tariff
Franchisor
A company that develops a product concept and sells others the rights to make and sell the products.
A business owned and controlled through pooled resources by the people who use it is a(n) ______.
A cooperative
Tariff
A country may attempt to protect its own domestic industries by imposing a(n) _____, a type of tax, on imported products.
arbitrator mediator
A decision handed down by a(n) __ must be followed, whereas a(n) __ merely offers suggestions and facilitates negotiation.
A bill of lading is defined as:
A document issued by a transport carrier to an exporter to prove that merchandise has been shipped.
attracting investors retaining employees building customer relationships
A firm that is viewed negatively may have a hard time __.
Cartel
A group of firms or nations that agrees to act as a monopoly and not compete with each other, in order to generate a competitive advantage in world markets.(OPEC)
truthful
A key component of ethical communications from companies to consumers is that the communication be __.
Corporation
A legal entity with authority to act and have liability apart from its owners.
Partnership
A legal form of business with two or more partners.
Vertical merger
A merger between companies operating at different but related levels of an industry
Horizontal merger
A merger between firms that make and sell similar products to the same customers
Conglomerate merger
A merger between two firms in unrelated industries
a mini-trial
A method of dispute resolution that may become increasingly important in settling complex disputes is __, in which both parties agree to present a summarized version of their case to an independent third party.
Absolute advantage
A monopoly that exists when a country is the only source of an item, the only producer of an inter, or the most efficient producer of an item.
White Knight
A more acceptable firm that is willing to acquire a threatened company
Trade deficit
A nation's negative balance of trade, which exists when that country imports more products that it exports.
What type of behavior creates a hostile workplace environment but has little legal recourse?
Bullying
profitability
A number of studies have found a direct relationship between social responsibility and __ as well as a link that exists between employee commitment and customer loyalty.
General Partnership
A partnership in which all owners share in operating the business and assuming liability for the business's debts.
Limited Liability Partnership (LLP)
A partnership that limits partners' risk of losing their personal assets to only their own acts and omissions and to the acts and omissions of people under their supervision.
Master Limited Partnership (MLP)
A partnership that looks much like a corporation (in that it acts like a corporation and is traded on a stock exchange) but is taxed like a partnership and thus avoids the corporate income tax.
Limited Partnership
A partnership with one or more general partners and one or more limited partners.
facilitation
A payment made to obtain or retain business and is not considered a bride within the United States is defined as ___.
Franchisee
A person who buys a franchise.
Fixed tariff
A specific amount of money levied on each unit of product brought into the country.
Conventional (C) Corporation
A state-chartered legal entity with authority to act and have liability separate from its owners.
Import tariff
A tax levied by a nation on goods into the country.
S Corporation
A unique government creation that looks like a corporation but is taxed like sole proprietorships and partnerships. Reason formed: to avoid double taxation. Company must have no more than 100 shareholders, shareholders are individuals or estates, US permanent residents, have only one class of stock
______, which was established in 1989, promotes open trade and economic and technical cooperation among 21 member nations representing nearly 44% of world trade, and 54% of world GDP.
APEC
The ___? Economic Community was established in 1967 in Thailand to create economic cooperation among its five original members (Indonesia, Malaysia, Singapore, and Thailand).
ASEAN
Which trade alliance, established in 1967, promotes trade and economic integration among member nations in Southeast Asia?
ASEAN
Which trade alliance, established in 1967, promotes trade and economic integration among ten member nations in Southeast Asia?
ASEAN
What are two ways ASEAN differs from the EU?
ASEAN does not have fully free labor flows between member nations. ASEAN does not have a common currency.
the definition of __? advantage is the advantage that exists when a country has a monopoly on producing or is able to produce something more efficiently than all other countries.
Absolut
Which behavior is the most common ethical problem for employees?
Abusive behavior
people have very diverse cultures and lifestyles
Abusive behavior is difficult to assess and manage because __.
The right to safety The right to be informed The right to be heard The right to choose
According to John F. Kennedy, which of the following represent the four basic rights of consumers?
choose
According to the consumer bill or rights, the right to ____ ensures that consumers have access to a variety of goods and services at competitive prices
the opportunity to engage in misconduct individual moral standards and values the influence of managers and co-workers
According to your text, ethical decisions in organizations are influenced by which of the following key factors?
False
Active bribery is an offense committed by the official who receives the bribe.
_______ are based on the value of the item and levied on each unit of a product brought into the country.
Ad valorem tariffs
When entering foreign market what do successful businesses do to ensure a product will be successful?
Adapt products to fit the wants and needs of foreign customers
Sarbanes-Oxley
After numerous accounting scandals at a number of well-known firms, which act was passed by Congress in the early 2000s to help restore confidence in corporations and markets?
NAFTA
Agreement that eliminates most tariffs and trade restrictions on agricultural and manufactured products to encourage trade among Canada, the U.S. and Mexico.
Will this activity further my career?
All of the following are questions to consider in determining whether an action is ethical EXCEPT __. How does this activity fit with your own beliefs and values? Would this activity be accepted by your co-workers? Is this action customary in your industry? Will this activity further my career?
______ is/are principles and standards that determine acceptable conduct in business.
Business ethics
government agency
All of the following generate discussion about the ethical nature of a decision EXCEPT ___. government agency individuals in the business the mass media blogs and podcasts special interest groups
Which of the following is a disadvantage of being in a partnership?
All partners are responsible for the business actions of all other partners.
bullying
Although sexual harassment has legal recourse, __ has little recourse at this time.
Dodd-Frank
An act that was passed to reform the financial industry and offer consumers protection against complex and/or deceptive financial products?
Franchise Agreement
An arrangement whereby someone with a good idea for a business sells the rights to use the business name and sell a product or service to others in a given territory.
Leveraged Buy Out (LBO)
An attempt by employees, management, or a group of investors to purchase an organization primarily through borrowing.
ethical issue
An identifiable problem, situation, or opportunity that requires a person to choose between actions that may be evaluated as ethical or unethical
ethical issue
An identifiable problem, situation, or opportunity that requires a person to choose between actions that may be evaluated as ethical or unethical is referred to as __.
personal ethics
An individual's values, principles, and standards of conduct
personal ethics
An individual's values, principles, and standards of conduct are referred to as __.
General Partner
An owner (partner) who has unlimited liability and is active in managing the firm.
Limited Partner
An owner who invests money in the business but does not have any management responsibility or liability for losses beyond the investment.
Which of the following is an area of environmental concern in society today?
Animal rights, waste disposal, business practices that harm endangered wildlife, and land pollution
Corporation
Any number of shareholders
Which legal document sets forth the basic agreement between partners?
Articles of Partnership
What is required to start a partnership?
Articles of partnership
Which document sets forth the basic legal agreement between partners?
Articles of partnership
absolute advantage
Assume that Indonesia is the only country that can produce tapestry fabrics. If this were true, then Indonesia would have a(n) ______related to the production of these fabrics
Select all that apply Which three items are usually listed in the articles of partnership?
Authority and responsibility of each partner How profits will be distributed Contribution (money or assets) of each partner
What are the two indicators nations rely on to measure global trade?
Balance of trade and balance of payment
legal
Bankruptcy is sometimes called __ insolvency.
Ad valorem tariff
Based on the value of the item.
Why is the "second wave" of offshore outsourcing proving to be more disruptive to the U.S. job market
Because it affects skilled, educated, middle-income workers
Why is ethical decision making difficult?
Because there are always gray areas that create dilemmas
_____ are legally liable for the mismanagement of the firm or for any misuse of funds.
Board members
Money given in exchange for a special favor is called a _____ and benefits an individual or a company at the expense of other stakeholders.
Bribery
___ refers to ethical or unethical behaviors by a manger or employee of an organization.
Business ethics.
_______ refers to the rules and regulations that govern the conduct of business.
Business law
Because of ___, it may be legal to bribe other businesses and government officials in some South American countries, while this practice is illegal in the U.S.
Business practice laws.
earning a profit
Businesses must first be responsible to their owners, who are primarily concerned with __.
Which of the following are ways the world trade organization (WTO) promotes global business?
By mediating trade disputes among nations
Which scenario exemplifies one of the most common ways employees abuse company resources?
Callie uses her company computer to shop online and check her Facebook page.
Which countries are the United States' best trading partners for U.S. exports?
Canada and Mexico
A(n) ___ is an association of producers that control supply and prices.
Cartel.
determines which law(s) are pertinent to the case Judge applies laws to resolve dispute Draws factual conclusions
Characteristic of a trial court
does not hear witness testimony reevaluates cases based on interpretation of law does not draw factual conclusions
Characteristic of an appellate court
Which country does the United States have the highest trade deficit with?
China
Which of the following is not one of the dimensions of social responsibility?
Citizenship
ethics
Codes of ___ are formalized rules and standards that describe what the company expects of its employees.
ethics
Codes of ____ are formalized rules and standards describing expected employee behavior
Which unit of the U.S. Department of Commerce offers small and mid-sized U.S. firms practical knowledge about international markets and industries?
Commercial Service
The warning on cigarette packages about the health implications of smoking is an example of which of the following ethical issues?
Communications
___ ___? theory states a country should sell to other countries those products it produces most efficiently and import those it doesn't.
Comparative advantage theory
The United States is efficient at producing software and engineering services, but cannot produce clothes and electronics as efficiently as other nations. As such, the United States sells software and engineering services to other countries and buys clothes and electronics. This is an example of:
Competitive Advantage
This exists when a person must choose whether to advance his or her own personal interests or those of others.
Conflict of interest
Which ethical issue is being exhibited by a manager that makes decisions which profit him personally rather than profiting the firm and its investors?
Conflict of interest
Dodd-Frank
Congress passed the __ Act, which includes a "whistleblower bounty program."
The activities that independent individuals, groups, and organizations undertake to protect their rights as consumers is called ______.
Consumerism
Brazil has excellent resources and expertise to farm and produce coffee beans, whereas the United States is ill-suited for the production of coffee. Brazil should:
Continue to produce coffee and trade it for U.S. products Brazil needs and cannot produce.
Brazil has excellent resources and expertise to farm and produce coffee beans, whereas the untied states is ill suited for the production of coffee. brazil should?
Continue to produce coffee and trade it for U.S. products brazil needs cannot produce.
Simpson's Window Coverings, based in Chicago, hired a company in Taiwan to sew all of the window treatments for 15 hotels that Simpson contracted with. The company in Taiwan also includes a label indicating the Simpson name. What is this an example of?
Contract manufacturing-foreign
Ace Hardware has many independently-owned stores across the United States. These stores all share in the savings that result from the company buying supplies in large quantities and providing advertising for the stores. Which form of ownership does this represent?
Cooperative
Why are countries like China and Vietnam flooded with counterfeit videos, movies, CDs, computer software, furniture and clothing?
Copying is a tradition in those countries. Laws protecting copyrights in those countries are weak. Intellectual property laws in those countries are minimally enforced.
Types of Acquistion
Corporate Raider, Poison Pill, Shark Repellent, White Knight
Which of the following have not been cited in your text as incidents of unethical business activity recently?
Corporate charitable giving
What is a legal document that the state issues to a company based on information the company provides in the articles of incorporation?
Corporate charter
A state-chartered legal entity with authority to act and have liability separate from its owners is a ______.
Corporation
The situation known as "double taxation" only occurs with which form of business ownership?
Corporation
S-Corporation
Corporation taxed as if it were a partnership with restrictions on shareholders
The situation known as "double taxation" only occurs with which form of business ownership?
Corporations
_____ must make information available to their owners, usually through an annual report to shareholders.
Corporations
sometimes, due to a nation's unreliable currency, the only way to trade is _____, which is defined as the exchange of merchandise for merchandise or service for service with no money traded.
Countertrading
related to lying by commission
Creating a perception or belief by words that intentionally deceives someone is ___. related to lying by ommission lying by intent "noise" lying by commission what is defined as white lie
common law
Criminal and civil laws are derived from four sources (constitution, common law, statutory law, administrative law). Which source refers to precedents established by judges?
Read the items to determine if they apply to civil or criminal law
Criminal law: - enforced by the state or nation -imposed a fine or imprisonment - prohibits a specific kind of action like unfair competition Civil law: - enforced through the courts system by individuals or organizations - specifies the rights and duties of individuals and organizations - imposes a fine, but not imprisonment
When meeting for the first time with a Chinese client Jeremy stepped forward, reached out his hand, and looked the client directly in the eye. Jeremy later learned that prolong eye contact is rude in Asian cultures. This example shows that?
Culture can affect global trade
***Benefits of contract manufacturing?
Def: foreign company produces private-label goods to which a domestic company then attaches its own brand name or trademark 1. It can be used to temporarily meet an unexpected increase in orders. 2. It enables a producer or business to experiment in a new market without incurring heavy start-up costs. 3. Labor costs in foreign market may be lower than labor costs in firm's host country.
By buying more than it has sold, making the value of its exports less than its imports, the United States faces a trade?
Deficit
The United States has had a trade ____? Since 1975, when it first started importing more products than it exported.
Deficit
When a government intentionally decreases the value of its currency in relation to other currencies, it is called
Devaluation
Knowing the importance of employee relations, what is the likely result of a company that does NOT listen to employee grievances or treat employees fairly?
Difficulty in attaining company goals
union affiliation
Discrimination on the basis of all but which of the following is defined as harassment? age gender marital status union affiliation national origin
What is the main information included on the tax return for a partnership?
Distribution of profits among the partners
Limited Partner
Do not participate in the management of the business but share in the profits in accordance with the terms of a partnership agreement
Congress passed the _______ - __________ Act, which includes a "whistleblower bounty program"
Dodd- Frank Act
Which act was passed to reform the financial industry and offer consumers protection against complex and/or deceptive financial products?
Dodd-Frank
Types of Corporations
Domestic, Foreign, Alien, Private, Public, Quasi-Public, Nonprofit
The law of demand maintains that buyers will purchase (demand) more of a product as its price ___.
Drops.
The definition of ___? states: selling products in a foreign country at lower prices than those charges in the producing country.
Dumping
U.S. laws against ____? are specific. To keep domestic product prices competitive, U.S. law requires foreign firms to price their products to include 10 percent for overhead costs and 8 percent for profit.
Dumping
Selling a product abroad for less than the cost of production is referred to as:
Dumping.
The selling of products in a foreign country at lower prices than those charged in the producing country is called:
Dumping.
Eventually, the EU plans to eliminate all trade barriers between
EU member nations
To meet growing global demand for pineapples, Hawaiian producers of pineapples have increased sales outside of the United States in recent years.
EXPORTING
What are advantages of sole proprietorships?
Ease of starting and ending the business, being your own boss, pride of ownership, leaving a legacy, retention of company profits, no special taxes
Which of the following is considered an advantage of corporations?
Ease of transfer of ownership
NAFTA effects
Easier to invest in Mexico and Canada. Protects intellectual property. Expands trade by requiring equal treatment.
Being profitable relates to which social responsibility dimension?
Economic
What person is engaged in plagiarism?
Edmund, a manager, takes credit for his employee's ideas.
- specifies the rights and duties of individuals and organizations - imposes a fine, but not imprisonment - enforced through the court system by individuals or organizations
Elements of civil law
- imposes a fine or imprisonment - enforced by the state or nation - prohibits a specific kind of action like unfair competition
Elements of criminal law
What was the primary benefit for the European Union (EU) of adopting the euro in 1999?
Eliminating currency conversions.
The North American Free Trade Agreement went into effect in 1994 and effectively merged Canada, the United States, and Mexico into one market by implementing what three measures?
Eliminating virtually all tariffs on good produced and traded among the three member nations, Providing intellectual property protections, Making it easier for businesses to invest in the other member countries
A(n) ___ is a government order forbidding exportation and/or importation of a particular product from a particular country.
Embargo.
- Pay them adequately for their work - keep them informed of what is happening in their company - provide a safe workplace
Employees expect businesses to __.
___ are people who assume the risks of business ownership.
Entrepreneurs.
Water and soil pollution from oil and gas drilling is primarily what type of concern?
Environmental Issues
While unemployment is seen as an economic issue, it carries _____ implications when the gap between rich and poor is large.
Ethical
individual moral standards and values, the influence of managers and co-workers, the opportunity to engage in misconduct
Ethical decisions in an organization are influenced by three key factors:
An identifiable problem, situation, or opportunity that requires a person to choose between actions that may be evaluated as ethical or unethical is called a(n) _________.
Ethical issue
Which statement is TRUE of business ethics?
Ethical issues are not limited to for-profit organizations.
true
Ethical issues often emerge from conflict (t/f)
Codes of _______ are formalized rules and standards describing expected employee behavior.
Ethics
Fairness and honesty are at the heart of business _______ and relate to the general values of decision makers.
Ethics
How are laws different from ethics?
Ethics are a belief system whereas laws are written rules that support accepted ethical behavior.
culture
Experience with the __ in which a business operates is critical to understanding what is ethical or unethical
A trade surplus occurs when a country's ?
Experts are greater than imports
When Ford Motor Company ships and sells its cars in China, it is involved in
Exporting
breach of contract
Failure or refusal of a party to a contract to live up to his or her promise is called a __ of __.
ethics
Fairness and honesty are at the heart of business ____ and relate to the general values of decision makers
T/F? All a business has to do to maintain ethical conduct is to follow the law.
False
T/F? Conflicts of interest are payments, gifts, or special favors intended to influence the outcome of a decision.
False
T/F? Corporate citizenship is the extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their owners.
False
T/F? It is almost always easy to recognize specific ethical issues.
False
T/F? Managers consider social responsibility on an annual basis.
False
T/F? Only corporations have to worry about ethics scandals and social responsibility issues.
False
The General Agreement on Tariffs and Trade replaced the World Trade Organization?
False
True or false: An advantage of partnerships is that all the partners are responsible for the business actions of all the other partners.
False
True or false: There is a set formula for all partnerships to divide profits.
False
communication
False and misleading advertising is an example of how __ is an area in which ethical concerns may arise.
A foreign subsidiary is a company owned in a foreign country by another company called the ?
Parent Company
communication
False and misleading advertising is an example of how ____ is in an area in which ethical concerns may arise
Of all the federal regulatory units, the_____ most influences business activities related to questionable practices that create disputes between businesses and their customers
Federal Trade Commission
Which organization allocates a large portion of its resources to curbing false advertising, misleading pricing, and deceptive packaging and labeling?
Federal Trade Commission
Match the stages of social responsibility with the appropriate example. -Financial viability -Compliance with legal and regulatory requirements -Ethics, principles, and values -Philanthropic activities
Financial viability- Starbucks offers investors a healthy return on investment, including paying dividends. Compliance with legal and regulatory requirements- Starbucks specifies in its code of conduct that payments made to foreign government officials must be lawful according to the laws of the U.S. and the foreign country. Ethics, principles, and values- Starbucks offers healthcare benefits to part-time employees and supports coffee growers by offering them fair prices. Philanthropic activities- Starbucks created the Starbucks Foundation to award grants to eligible nonprofits and to give back to its communities.
Select from the following the four stages of social responsibility.
Financial; Ethics; Legal compliance; Philanthropy
Conglomerate Merger
Firms in unrelated industries merge
Horizontal Merger
Firms that make and sell similar products merge
Vertical Merger
Firms that operate at different but related levels of an industry merge
The definition of __ ___ ___ states the buying of percent properties or businesses in foreign nations.
Foreign direct investment
ethics legal compliance financial philanthropy
Four stages of social responsibility.
___? trade is the movement of goods and services among nations without political or economic barriers.
Free
What is a disadvantage of the partnership form of business?
Friction between general and limited partners
Which of the following is a disadvantage of the partnership form of business?
Friction between general and limited partners
A ______ partnership is a partnership that involves a complete sharing in both the management and the unlimited liability of the debts of the business.
General
This trade agreement, originally signed by 23 nations in 1947, provides a forum for tariff negotiations and a place where international trade problems can be discussed and resolved.
General Agreement on Tariffs and Trade (GATT)
Which trade agreement, originally signed by 23 nations in 1947, provides a forum for tariff negotiations and a place where international trade problems can be discussed and resolved?
General Agreement on Tariffs and Trade (GATT)
GATT
General Agreement on Tariffs and Trade. Trade agreement signed by 23 nations in 1947, provided a forum for tariff negotiations and a place where international trade problems could be discussed and resolved.
in 1948 government leaders from 23 nations formed a global forum for reducing trade restrictions on goods, services, ideas, and cultural programs. What was the title of this forum?
General Agreement on tariffs and Trade (GATT).
Although the United States has a market of over 317 million people, there are over 7.1 billion potential customers in the ___? market
Global
When carbon dioxide collects in the earth's atmosphere, it traps the sun's heat and prevents the earth's surface from cooling. This is referred to as
Global Warming
When carbon dioxide collects in the earth's atmosphere, it traps the sun's heat and prevents the earth's surface from cooling. This is referred to as _____ _____.
Global Warming
Which statement is accurate regarding the use of alternative energy?
Government subsidies will most likely be needed in order to make significant progress in the use of alternative energy.
______ refers to creating a positive association with environmental issues for an unsuitable product, service, or practice.
Greenwashing
McDonald's sends all new franchisees and managers to _______ _____ in Oak Brook, Illinois for intensive training.
Hamburger University
Which scenario is an example of importing?
Hewlett-Packard buys computer parts from suppliers in Asia to build its laptops.
Knowing the importance of employee relations, what is the likely result of a company that listens to employees' grievances and treats them fairly?
Higher morale among employees
Types of Mergers
Horizontal, Vertical, Conglomerate
Select the questions to consider when determining whether an action is ethical. (Select all that apply)
How does this activity fit with your own beliefs and values? Are there legal restrictions? Would this activity be accepted by your co-workers? Is this action customary in your industry?
When identifying the factors of production, the term ___ may also be used to refer labor.
Human Resources
a ___ ___ ? is a limit on the number of products in certain categories that a nation can import and is considered a form of trade protetionism.
Import Quota
A country may attempt to protect its own domestic industries by imposing a(n) _____, a type of tax, on imported products.
Import duty (tariff)
What type of tax is levied by a nation on goods imported into the country?
Import tariff
When Casey went to work at the corporate offices of Simpson Department Stores, he soon realized that 60% of the clothing the company bought to sell in the stores wasn't even made in the United States but was shipped to them from other countries. What process does Simpson Department Store use to bring this clothing to their stores?
Importing
The difference between importing and exporting is?
Importing is buying from another country whereas exporting is selling to another country.
whistleblowers to come forward with information
In 2010, Congress passed the Dodd-Frank Act, which includes a bounty program to provide incentives for ____
True
In a dilemma all of the alternatives have negative consequences, so the less harmful choice is made.
principal
In an agency relationship, the __ is one who wishes to have a specific task accomplished.
legality
In business law, the state or condition of being lawful is referred to as __.
body language
In the 1970s, during a visit to Brazil, President Richard Nixon gave the A-OK sign to the crowd. This hand gesture in America means OK, however, Brazilians were embarrassed because in their culture the gesture is considered obscene. This situation exemplifies how even simple differences in________can cause misunderstandings in international relationships
Is not a long-term goal of the European Union (EU)?
Increase trade between EU countries and the United States.
Which three are outcomes of having effective business ethics programs and organizational ethics initiatives?
Increased customer loyalty Increased profitability for the firm Greater employee satisfaction
Which of the following are likely benefits of exporting?
Increased sales & revenues; Increased number of potential customers
Sole proprietorship
Individual income is taxed.
partnership
Individual owners' income is taxed.
IPO
Initial Public Offering; a corporation that becomes public by selling stock for the first time (opposite: privatization)
______ is an example of conflict of interest.
Insider trading
_______ is an example of a conflict of interest.
Insider trading
stocks
Insider trading is the buying or selling of ____ by insiders who possess material that is still not public
The _______ was established in 1947 to promote trade among member nations by eliminating trade barriers and fostering financial cooperation.
International Monetary Fund
Which organization is considered the closest thing the world has to an international central bank?
International Monetary Fund
the _ was established in 1947 to promote trade member nations by eliminating trade barriers and fostering financial cooperation
International Monetary Fund (IMF)
What is one way that APEC differs from other international trade allowances?
It allows the business/private sector to participate in a wide range of APEC activities.
Which of the following statements about business ethics is false?
It concerns the impact of a business's activities on society.
How does ethical conduct validate and promote confidence in business relationships?
It creates a sense of trust between partners.
What was the primary benefit for the European Union (EU) of adopting the euro as a common currency?
It eliminates the need for currency conversions.
- using the company copier for personal use - submitting personal expenses on a company expense report - using the company computer for sending personal e-mails
Items that represent a misuse of company resources.
misuse of company time
Joe spends an hour or more each day at work checking his Facebook page, Twitter account and watching YouTube videos. Joe is guilty of which form of misconduct?
Which person is engaged in a misuse of company time?
Joel spends an hour or more a day surfing the web and checking his social media sites.
Shared technology and risk marketing and management expertise and entry into markets where foreign companies are often allowed unless goods are produced locally are all benefits of ?
Joint ventures
________ are formed by two or more groups or businesses to form a business entity to achieve a specific goal or to operate for a specific period of time
Joint ventures
Employees expect businesses to ______. (select all that apply)
Keep them informed of what is happening in their company; Pay them adequately for their work; Provide a safe workplace
___ includes the physical and intellectual contributions people make while working.
Labor.
The term of the business being dependent on the life of the business owner is referred to as ______.
Lack of continuity
Smaller firms based in the United States can learn more about international business opportunities from the work done by CIBERs which are located at
Leading business schools in the United States.
LBO
Leveraged Buyout; a group of investors borrows money from banks and other institutions to acquire a company, using the assets of the purchased company to repay the loan.
A contractual agreement in which one firm permits another to produce and market its product and use its brand name in return for a royalty or other compensation is known as:
Licensing
What type of trade agreement involves one company that allows another company to use its company name, products, patents, brands, trademarks, raw materials, and/or production processes in exchange for a fee or royalty?
Licensing
LLC
Limited Liability Company; a form of business ownership that provides limited liability, as in a corporation, but is taxed like a partnership.
What is one advantage of corporations?
Limited liability
Which of the following is an advantage of the corporate form of business ownership?
Limited liability
__________ protect(s) investors' personal assets which makes them more likely to take a risk on investing in a corporation.
Limited liability
Select all that apply What are the two main types of partnerships?
Limited, general
Many countries have ___ that require that products sold in a particular country be partly made there.
Local content laws.
Dumping involves selling products in a foreign country at ___? prices than those charged in the producing country.
Lower
Select from the following the typical actions of consumerism. (Select all that apply)
Making public service announcement;Boycotting companies; Writing letters to companies; Lobbying government agencies
Select from the following the typical actions of consumerism. (Select all that apply)
Making public service announcements Boycotting companies Writing letters to companies Lobbying government agencies
Shark repellant
Management requires a large majority of stockholders to approve a takeover
Identify the TRUE statement about legal issues in business.
Many problems in business could be avoided if managers and employees knew more about business law and the legal system.
whistleblower
Maribeth has first-hand knowledge that her supervisor is engaged in in insider trading. At a minimum, this practice goes against company policy and may even be illegal so Maribeth reported her supervisor to the Securities and Exchange Commission. Maribeth is acting as a __.
In a(n) ___ economy, the price of apples will be determined by supply and demand.
Market.
The main purpose of the World Trade Organization is to?
Mediate trade disputes among nations
Fluffy Cloud Mattress and So Soft Mattress combined to form a new company called Fluffy Soft Mattress. What type of ownership does this represent?
Merger
The North American Free Trade Agreement (NAFTA) has been controversial, and disputes continue to arise over the implementation of the trade agreement including:
Mexico's rising standard of living has increased the cost of doing business there. Mexicans have been disappointed that the agreement failed to create more jobs.
Then the North American Free Trade Agreement (NAFTA) went into effect in 1994, it merged which three countries into one free trade market?
Mexico, canada, and US
Joe spends an hour or more each day at work checking his Facebook page, Twitter account, and watching YouTube videos, even though it is against company policy to do so. Joe is guilty of which form of misconduct?
Misuse of company time
true
Most legal issues arise as choices that society deems unethical, irresponsible or unacceptable.
true
Most legal issues arise as choices that society deems unethical, irresponsible, or unacceptable (t/f)
What is the famous principle of the General Agreement on Tariffs and Trade (GATT), which means that each member nation is to be treated equally by all contracting nations?
Most-favored-nation status (MFN)
A ___? corporations is an organization that manufactures and markets its products in many different countries and has managers and stockholders from many countries.
Multinational
What strategy is a company using when it customizes its products, promotion, and distribution to fit cultural, technological, and other national differences?
Multinational
A firm that operates on a worldwide scale without ties to any specific nation or region is known as a:
Multinational enterprise.
Ratification of which agreement in 1994 created a free trade area among the United States, Mexico, and Canada?
NAFTA
Which craft brewer is the first all-wind-powered brewery in the United States?
New Belgium Brewing Company
Which craft brewer is the first all0wind -powered brewery in the United States?
New Belgium Brewing Company
Laws regulating safety in the workplace are enforced by ______.
OSHA
safety
OSHA regulates the __ of employees in the workplace.
safety
OSHA regulates the ____ of employees in the workplace
Laws regarding safety in the workplace are enforced by the _____?
Occupational Safety and Health Administration (OSHA)
Quasi-Taxable Organization
Occurs in a partnership; partners file as individuals and do not pay taxes when submitting the partnership tax return to the Internal Revenue Service
Federal Trade Commission
Of all the federal regulatory units, the __ most influences business activities related to questionable practices that create disputes between businesses and their customers.
Nelson Manufacturing, based in Cleveland, decided to relocate the process of installing component parts to Mexico. It made this decision to take advantage of lower wage rates. Nelson Manufacturing still retains control of the process because it is not subcontracting the work to another company. What is this an example of?
Offshoring
Regarding the misconduct of business firms, which of the following statements is TRUE?
Often, misconduct evolves from ethical conflicts into legal disputes.
Acquisition
One company's purchase of the property and obligations of another company.
Sole proprietorship
One owner
ethics should be a part of core organizational values
Organizations that adopt integrity-based ethical initiatives recognize that ____
false
Organizations that exhibit a high ethical culture discourage employees from acting with integrity and adhering to business values (t/f)
What term describes the situation when an American firm transfers manufacturing and other tasks to companies in countries where labor costs are less expensive?
Outsourcing
When Hewlett Packard transferred call center jobs from the United States to India, where labor costs were lower, the company took part in a practice called
Outsourcing
When a company contracts with another company, often in a different country, to perform some or all of its functions it is called ?
Outsourcing
the definition of contract manufacturing state a foreign country's production of private label goods to which a domestic company company then attaches its brand name or trademark contract manufacturing is a part of the broad category of ____?
Outsourcing
Preferred Stock
Owned by people that generally do not have any say in running the company, but have a claim to profits before any other stockholders do.
Common Stock
Owned by people who have voting rights in the corporation, but do not receive payment until after preferred stockholders are paid. - one vote per share - receive first dibs at preemptive right
All profits from a sole proprietorship belong exclusively to the ______.
Owner
How is taxation handled in partnerships?
Partners pay taxes at the income tax rate for individuals.
Joint Venture
Partnership established for a specific project or for a limited time
____________ do not pay taxes when submitting the organization's tax return to the Internal Revenue Service; the tax return simply provides information about the profitability of the organization and the distribution of profits.
Partnerships
bribery and unethical
Payments, gifts, or special favors intended to influence the outcome of a decision are considered __.
In a market characterized by ___, all firms must be small and the number of firms in the industry must be large.
Perfect competition.
An individual's values, principles, and standards of conduct are referred to as ______.
Personal ethics
Which is not a dimension of social responsibility?
Philosophic
Primitive transportation and storage system that make local distribution ineffective if not impossible, the lack of clean water, and the lack effective sewer systems are all examples of what type of barriers?
Physical and environmental
abusive behavior
Physical threats, false accusations, use of profanity and yelling at others all fall under which category of organizational misconduct?
Less developed countries
Potentially huge, and profitable, untapped market.
Types of stock issued by corporations
Preferred, Common
Quantum Manufacturing was founded in 1955 by Earl and Jenni Maxwell. Today, their two sons own the business and are closely involved in managing the day-to-day workings of the company. What kind of company is Quantum Manufacturing?
Private corporation
What term refers to a corporation that is owned by just one or a few people, often a family, who are closely involved in managing the business?
Private corporation
In a market economy, the factors of production are allocated by:
Producers and Consumers
A number of studies have found a direct relationship between social responsibility and _______ as well as a link that exists between employee commitment and customer loyalty.
Profitability
This is a corporation whose stock anyone may buy, sell, or trade.
Public corporation
______ corporations are owned and operated by the federal, state, or local government.
Quasi-public
Are there legal restrictions? Would this activity be accepted by your co-workers? Is this action customary in your industry? How does this activity fit with your own beliefs and values?
Questions to consider when determining whether an action is ethical.
A ___ restricts the number of a certain type of product that can be imported into a country.
Quota.
Often, misconduct evolves from ethical conflicts into legal disputes
Regarding the misconduct of business firms, which of the following statements is TRUE
society
Regardless of what an individual believes about a particular action, if __ judges it to be unethical or wrong, whether correctly or not, that judgment directly affects the organization's ability to achieve its business goals.
The activities of U.S. firms that are engaged in international trade are governed by which of the following?
Regulations Laws Treaties
Exchange controls
Regulations that restrict the amount of currency that can be bought or sold.
What is an example of an informal, non-tariff barrier?
Restrictive standards
russia is producing more naturel gas than it needs. Japan lacks natural gas resources, but it produces more cars and computers than its residents need. Therefore ?
Russia and japan can mutually benefit from trading with each other.
A unique government creation that looks like a corporation but is taxed like a sole proprietorship or partnership is called _______ corporation.
S
A unique government creation that looks like a corporation but is taxed like sole proprietorships and partnerships is:
S corporation
OSHA regulates the ______ of employees in the workplace.
Safety
Thinking of the various categories for misconduct in the workplace, select from the following the person who is engaged in misconduct based on "fairness and honesty"
Sandra takes reams of copy paper from the office to use with her printer at home.
Thinking of the various categories for misconduct in the workplace, select the person who BEST fits misconduct based on "fairness and honesty."
Sandra takes reams of copy paper from the office to use with her printer at home.
The _______ Act criminalized securities fraud and toughened penalties for corporate fraud.
Sarbanes-Oxley
Which act criminalized securities fraud, strengthened penalties for corporate fraud, and created an accounting oversight board?
Sarbanes-Oxley Act
making public service announcements writing letters to companies boycotting companies lobbying government agencies
Select from the following the typical actions of consumerism.
Sub-Saharan Africa is home to __________ of the top-ten fastest-growing economies in the world.
Seven
The_____ Antitrust Act, passed in 1890, was put in place to prevent businesses from restraining trade and monopolizing markets.
Sherman
To truly create an ethical culture, managers must ______.
Show a strong commitment to ethics and compliance
Limited Liability Companies (LLC)
Similar to an S corporation without the special eligibility requirements.
what size of businesses do export assistance centers work with?
Small and medium sized
Built-right Manufacturing has a positive image in the community in which it operates. The company gives a percentage of its profits every year to support local charities and causes, its employees regularly volunteer within the community and it is committed to using sustainable manufacturing processes. The actions taken by Built-right manufacturing exemplify ______.
Social responsibility
What do studies show about the relationship between social responsibility and profitability?
Social responsibility is associated with improved business performance.
a business's obligation to maximize its positive impact and minimize its negative impact on society
Social responsibility it defined as
Match the terms to their descriptions.
Social responsibility- this relates to the impact of an entire businesses' activities on society Business ethics- this relates to an individual's or work group's decision that society evaluates as right or wrong
___ is the way a business tries to balance it's commitments to groups and individuals in it's social environment.
Social responsibility.
Match the type of business ownership with the description of how it is taxed. - Sole Proprietorship - Partnership - Corporation
Sole Proprietorship --> Individual income is taxed. Partnership --> Individual owners' income is taxed Corporation --> The business and shareholders are taxed
Of the following forms of business ownership, which is relatively easy and inexpensive to form?
Sole proprietorship
The owner of a _______ has complete control over the business and can make decisions on the spot without anyone else's approval.
Sole proprietorship
Which form of business allows for the greatest degree of secrecy?
Sole proprietorship
______ are businesses owned and operated by one individual, and are the most common form of business organization in the United States.
Sole proprietorship's
______ have fewer financial resources since they are limited to what the owner is able to borrow.
Sole proprietorship's
Match the type of business ownership listed on the left with the description that characterizes its ownership listed on the right.
Sole proprietorship-One owner Partnership-Two or more owners Corporation-Any number of shareholders S Corporation-Up to 100 shareholders
What is the name given to businesses that owned and operated by one individual, and are the most common form of business organization in the United States?
Sole proprietorships
______ are businesses owned and operated by one individual, and are the most common form of business organization in the United States.
Sole proprietorships
______ have fewer financial resources since they are limited to what the owner is able to borrow.
Sole proprietorships
investment funds controlled by governments holding large stakes in foreign companies are called?
Sovereign wealth funds
the misuse of company resources
Spending work hours looking at personal email, submitting personal expenses on company reports and using the company copier for personal use are all example of ____
philanthropic activities
Starbucks created the Starbucks Foundation to award grants to eligible nonprofits and to give back to its communities (philanthropic dimension of social responsibility)
Philanthropic activities
Starbucks created the Starbucks Foundation to award grants to eligible nonprofits and to give back to its communities.
ethics, principles, and values
Starbucks offers healthcare benefits to part-time employees and supports coffee growers by offering them fair prices (ethical dimension of social responsibility)
Ethics, principles, and values
Starbucks offers healthcare benefits to part-time employees and supports coffee growers by offering them fair prices.
financial viability
Starbucks offers investors a healthy return on investment, including paying dividends (economic dimension of social responsibility)
Financial and economic viability
Starbucks offers investors a healthy return on investment, including paying dividends.
compliance with legal and regulatory requirements
Starbucks specifies in its code of conduct that payments made to foreign government officials must be lawful according to the laws of the U.S. and the foreign country (legal dimension of social responsibility)
Compliance with legal and regulatory requirements
Starbucks specifies in its code of conduct that payments made to foreign government officials must be lawful according to the laws of the U.S. and the foreign country.
Many problems in business could be avoided if managers and employees knew more about business law and the legal system.
Statement about legal issues in business.
What are two long-term goals of the European Union (EU)?
Stimulate economic growth, Improve the economic efficiency of the EU nations
more
Studies have shown that organizations that employ a diverse set of leaders tend to be __ profitable.
A foreign subsidiary operates like a normal domestic firm with production, distribution, promotion, pricing, and other business functions under the control of the?
Subsidiary's management
Conducting activities in such a way as to provide for the long-term well-being of the natural environment is referred to as _____.
Sustainability
Conducting activities in such a way as to provide for the long-term well-being of the natural environment is referred to as ________.
Sustainability
A country may attempt to protect its own domestic industries by imposing a(n) _____, a type of tax, on imported products.
TARIFF
A tax on imported goods or products?
Tariff.
The function of protective ___? on imports is to raise the retail price of imported products so that domestic goods are more competitively priced.
Tariffs
Which of the following is a trade restriction that governments' impose on business in response to political events?
Tariffs
Which scenario exemplifies one of the most common ways employees abuse company resources?
Taylor uses her company computer to shop online and check her Facebook page.
According to the International Monetary Fund (IMF), what are the world economic growth projections?
The IMF predicts a gradual global growth in both advanced and developing countries.
Which organization was established in 1947 to promote trade among member nations by eliminating trade barriers and fostering financial cooperation?
The International Monetary Fund
When the price at which the quantity of a product willing to be purchased by customers and the quantity of product willing to be made by a producer are equal, this is known as:
The Market Price or The Equilibrium Price.
Which of the following agreements, when ratified, created a free trade area among the United States, Mexico, and Canada?
The North American Free Trade Agreement (NAFTA)
Clayton Act
The __ prohibits price discrimination, tying and exclusive agreement, and the acquisition of stock in another corporation where the effect may be to substantially lessen competition or tend to create a monopoly.
Sherman Antitrust Act
The __, passed in 1890, was put in place to prevent businesses from restraining trade and monopolizing markets.
Consumerism
The activities that independent individuals, groups, and organizations undertake to protect their rights as consumers
The balance of ___? is the difference between money from exports and money from imports, as well as from other sources such as foreign investment and military expenses.
The balance of PAYMENTS
Comparative advantage
The basis of most international trade, when a country specializes in products that it can supply more efficiently or at a lower cost than it can produce other items.
corperation
The business and shareholders are taxed.
Which of the following is an advantage of a sole proprietorship?
The business can easily be dissolved.
International Business
The buying, selling, and trading of goods and services across national boundaries. Most of the world's population and 2/3 of its total purchasing power are outside of the U.S. Global marketing requires balancing global brands with the needs of local consumers.
legally; culturally
The current trend is to move away from __-based ethical initiatives in organizations to __-based initiatives that make ethics a part of core organizational values.
legally; cultural
The current trend is to move away from ____-based ethical initiatives in organizations to ____-based initiatives that make ethics a part of core organizational values
Balance of payments
The difference between the flow of money into and out of a country.
Balance of trade
The difference in value between what a nation exports and its imports.
Is a disadvantage of trading through a export agent
The export agent makes a profit, which cuts into the company's profit.
corporate
The extent to which businesses meet the four dimensions of social responsibility placed on them by stakeholders is referred to as __ citizenship.
corporate citizenship
The extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their stakeholders is referred to as ____
Poison Pill
The firm allows stockholders to buy more shares of a stock at lower prices than the current market value
codes of ethics
The formalized rules and standards describing expected employee behavior are outlined in ____
What is not an area of environmental concern in society today?
The hard-core unemployed
Conglomerate Merger
The joining of firms in completely unrelated industries.
Vertical Merger
The joining of two companies involved in different stages of related businesses. ie. soft drink company and artificial sweetener maker.
Horizontal Merger
The joining of two firms in the same industry. ie. soft drink company and a mineral water company.
Louie discovered that when he dropped the price of his paintings, more people were interested in buying. Louie is experiencing ___.
The law of demand.
capacity
The legal ability to enter into a contract is called contractual __ and may be restricted by age or mental capacity.
Jurisdiction
The legal power of a court, through a judge, to interpret and apply the law and make a binding decision in a particular case is referred to as __.
business law
The legal rules and regulations that govern the conduct of business is referred to as __.
What role does the media play when it comes to ethical conduct by business?
The media reports on unethical behavior by businesses far more often than businesses with good ethical behavior.
Which of the following best defines the term business cycle?
The pattern of short-term ups and downs in an economy.
Infrastructure
The physical facilities supporting a country's economic activities, such as railroads, highways, ports, airfields, utilities and power plants, schools, hospitals, communication systems and commercial distribution systems.
Camille and Rosa have decided to open a business together. Which of the following is true for their business?
The pooled financial resources and talents of the partners will be an advantage to the business.
Exchange Rate
The ratio at which one nation's currency can be exchanged for another nation's currency. They can vary and affect cost of imports and exports. A government may intentionally alter the value of the currency through fiscal policy.
Limited Liability
The responsibility of a business's owners for losses only up to the amount they invest; limited partners and shareholders have limited liability.
Unlimited Liability
The responsibility of business owners for the debts of a business.
Merger
The result of two firms forming one company.
According to John F. Kennedy, which of the following represent the four basic rights of consumers?
The right to choose The right to be heard The right to safety The right to be informed
Franchise
The right to use a specific business's name and sell its products or services in a given territory.
Which scenario best represents a company with a strong ethical culture?
The top management at Tom's company clearly communicate to all employees the ethical behavior that is expected of them.
Outsourcing
The transferring of manufacturing or other tasks--such as data processing-- to countries where labor and supplies are less expensive.
How is it possible for the united states to exhibit, while being one of the largest exporting nations in the world
The value of the goods the united states imports is higher than the value of the goods it exports.
Which of the following responses best defines the term demand?
The willingness and ability of buys to purchase a product, good, or service.
privacy
There are few regulations on how businesses can obtain and use customer's personal information. Therefore, protecting personal __ has emerged as the central focus of future legislation concerning how business is conducted online.
How are the members of a board of directors selected?
They are elected by the stockholders of the corporation.
Which of the following is TRUE of S corporations?
They are taxed like a partnership.
Which statement is an accurate description of S corporations?
They are taxed like a partnership.
Takes reams of copy paper from the office to use with her printer at home
Thinking of the various categories for misconduct in the workplace, select from the following the person who is in misconduct based on fairness and honesty.
fraud
This is a purposefully unlawful act to deceive or manipulate in order to damage others.
implied
This type of warranty is imposed on the producer or seller by law, although it may not be a written document provided at the time of sale.
loss of trust in the company a lack of transparency among company leaders unfair employee treatment
Three most common factors that executives give for increases in employee turnover
employee loss of trust in the company, a lack of transparency among company leaders, and unfair employee treatment
Three most common factors that executives give for why turnover increases are:
ethical
To build trust among individuals, organizations should adhere to conduct that is __ in order to validate and promote confidence in business relationships.
ethical
To build trust among individuals, organizations should adhere to conduct that is ____ in order to validate and promote confidence in business relationships
When it comes to fairness and honesty, what two things are expected of businesses?
To follow applicable laws and regulations; To avoid harming customers, employees, clients or competitors
Are functions of the World Trade Organization
To provide technical assistance for developing countries To mediate trade disputes among nations. To monitor national trade policies
What is the function of revenue tariffs?
To raise money for the government
Balance of ___? is the total value of nations exports compared to its imports measured over a particular period.
Trade
Trade ___? is the use of government regulations to limit the import of goods and services such as import tariffs and quotas.
Trade Protectionism
when the value of a country's imports is more than its exports, the country exhibits?
Trade deficit
Common markets are also called ___ ___?
Trading Blocs
International Spaces, Inc. handles all the activities required to move a company's products from one country to another. They act as consultants, handle all marketing and advertising, conduct product research and design, and provide warehousing. What type of company is International Spaces, Inc?
Trading company
Which of the following was not an original objective of the North American Free Trade Agreement (NAFTA)
Transfer and create jobs in Mexico and Canada.
A business can start in one form of ownership, but does not have to stay in that form.
True
A disadvantage of a sole proprietorship is limited financial resources.
True
International business is the buying, selling and trading of goods and services across national boundaries.
True
Specialized professionals in fields like accounting are often hired by sole proprietors who lack knowledge in that area.
True
T/F? A major social responsibility for business is providing equal opportunities for all employees.
True
T/F? Codes of ethics are formalized rules and standards that describe what the company expects of its employees.
True
T/F? Ethical decisions in an organization are influenced by three key factors.
True
T/F? Ethics is related to the culture in which a business operates.
True
T/F? Increasingly, companies are introducing eco-friendly and socially responsible products to satisfy consumer demand and improve their images.
True
T/F? Nearly all business decisions may be judged as right or wrong, ethical or unethical.
True
T/F? Sustainability involves conducting activities so as to provide for the long-term well-being of the natural environment, including all biological entities.
True
T/F? The most basic ethical concerns have been formalized through laws and regulations that encourage conformity to society's values and norms.
True
T/F? Theft of time is the leading area of misconduct observed in the workplace.
True
T/F? Voluntary responsibilities are optional activities that promote human welfare or goodwill
True
T/F? Workplace bullying is an increasing problem
True
True or false: An advantage for a sole proprietor is the ability to respond quickly to competitive business conditions or to changes in the economy without anyone else's approval.
True
True or false: Ethical issues often emerge from conflict.
True
True or false: Most legal issues arise as choices that society deems unethical, irresponsible or unacceptable.
True
True or false: Perceptions of ethics can differ in different societies.
True
True or false: When it comes to business ethics in the workplace, the "fairness and honesty" principle means, in part, not harming customers, employees, clients or competitors knowingly through deception.
True
Partnership
Two or more owners
Industrialized nations
U.S., Japan, Great Britain, and Canada.
Which of the following should help reduce the incidence of unethical behavior in an organization?
Understanding that individual moral standards, the influence of managers and coworkers, and opportunity influence ethical behavior
__________ liability means partners can lose everything they own if the business loses a lawsuit.
Unlimited
What is a disadvantage of sole proprietorship?
Unlimited liability
Disadvantages of Partnerships
Unlimited liability, Division of profits, Disagreements among partners, Difficulty of termination
What two criticisms are levied against businesses regarding unemployment?
Unwillingness to train employees Unfair hiring standards
S Corporation
Up to 100 shareholders
What has been identified as the most common way employees abuse company resources?
Using company computers for personal use
What three items represent a misuse of company resources?
Using the company copier for personal use Submitting personal expenses on a company expense report Using the company computer for sending personal e-mails
Which 4 ethical norms are often used by companies to help individuals make ethical decisions?
Utility, rights, justice, caring.
___________ ___________ are the joining of two companies involved in different stages of related businesses.
Vertical mergers
Philanthropic contributions made by a business to a charitable organization represent which dimension of social responsibility?
Voluntary
Which organization, established in 1946, primarily serves to loan funds to underdeveloped and developing nations, where the funds are used to finance projects ranging from road and factory construction to the building of medical and educational facilities?
WORLD BANK
social responsibility is associated with improved business performance
What do studies show about the relationship between social responsibility and profitability?
ethical conflict
What is likely to result when managers or employees of an organization have ethical beliefs that differ from those of the organization?
through donations to local and national charitable organizations
What is the most common way businesses exercise their community responsibility?
abusive
What kind of behavior is the most common ethical problem for employees?
bribery insider trading
What represents a conflict of interest in the workplace?
the media reports on unethical behavior by businesses far more than businesses with good ethical behavior
What role does the media play when it comes to ethical conduct by business?
unfair hiring standards unwillingness to train employees
What two criticisms are levied against businesses regarding unemployment?
personal property intellectual property real property (look for definitions of these)
What type(s) of property is covered by property law?
meeting obligations and responsibilities avoiding conflicts of interest
What would be considered ethical behavior in a business.
plagiarism
When employees copy the work or ideas of others and present it as his or her own this is called __.
to avoid harming customers, employees, clients or competitors to follow applicable laws and regulations
When it comes to fairness and honesty, which of the following are excepted of businesses?
Acquisition
When one company purchases another by buying most of its stock
lawsuit
When one individual or organization takes another to court using civil laws, that individual is attempting to resolve a conflict through a __.
Which of the following are situations where working with an export trading company or export management company would be helpful?
When the culture and governmental policies of the foreign market are unfamiliar
Dodd-Frank
Which act created a consumer financial protection bureau to protect consumers from complex or deceptive financial products?
Sarbanes-Oxley Act
Which act criminalized securities fraud, strengthened penalties for corporate fraud, and created an accounting oversight board?
abusive behavior
Which behavior is the most common ethical problem for employees
New Belgium Brewing Company
Which craft brewer is the first all-wind-powered brewery in the United States?
Uniform Commercial Code
Which is a set of statutory laws enacted in every state (except Louisiana) intended to simplify commerce?
conflict of interest
Which of the following ethical issues is being exhibited by a manager that makes decisions which profit him personally rather than profiting the firm and its investors?
c
Which of the following examples best represents a company with a strong ethical culture? a. The human resource department at Taryn's company does not see the need for a formal, written ethics policy b. Ashley is a middle-level manager. She gets no direction from top management on ethical behavior, but tries to do what is right c. The top management at Tom's company clearly communicate to all employees the ethical behavior that is expected of them d. Derek follows the lead of his immediate supervisors. If they bend the rules, it is acceptable for him to do the same.
affirmative action programs
Which of the following involve efforts to recruit, hire, train, and promote qualified individuals from groups that have been discriminated against into employment positions? facilitation payments employment quotas optimization dual relationships affirmative action programs
working more hours than reported
Which of the following is NOT one of the top types of observed misconduct? internet use abuse lying to employees abusive behavior putting one's own interests ahead of the org working more hours than reported
Using company computers for personal use
Which of the following is the most common way employees abuse company resources?
unemployment
Which of the following issues surrounding factory closures can be considered an ethical issue because of the repercussions it has on other businesses -- mainly in the loss of sales?
Paying off a car loan after someone is unable to.
Which of the following represents a contract that must be in writing to be enforceable?
ethical
While employment is seen as an economic issue, it carries __ implications when the gap between rich and poor is large.
Maribeth has first-hand knowledge that her supervisor is engaged in insider trading. At a minimum, this practice goes against company policy and may even be illegal so Maribeth reported her supervisor to the Securities and Exchange Commission. Maribeth is acting as a ______.
Whistleblower
Employees who report concerns about a unethical company practices to a government regulatory agency are called ______.
Whistleblowers
________ is the act of an employee exposing an employer's wrongdoing to outsiders.
Whistleblowing
Because there are always gray areas that create dilemmas
Why is ethical decision making difficult?
All of the following are questions to consider in determining whether an action is ethical EXCEPT ______.
Will this activity further my career?
All of the following are questions to consider in determining whether an action is ethical EXCEPT __________.
Will this activity further my career?
energy
Wind power, solar power, and nuclear power are all forms of alternative __ sources that businesses are turning to in order to reduct carbon emissions.
Name the organization established in 1946 to loan funds to developing nations, where the funds are used to finance projects ranging from road and factory construction to the building of medical and educational facilities.
World Bank
An independent entity whose purpose it is to oversee cross-border trade issues and global business practices is called the ____ ____ ____ ?
World Trade Organization
The ___ ___ ___ is the organization that replaced the General Agreement on Tariffs and Trade (GATT), and was assigned the duty to mediate trade disputes among nations
World Trade Organization
What was the organization that replaced the General Agreement on Tariffs and trade (GATT), and was assigned the duty to mediate trade disputes among nations?
World Trade Organization
The organization established by the Uruguay Round of the GATT, whose purpose is to mediate trade disputes among nations is called:
World Trade Organization (WTO)
WTO
World Trade Organization. International organization dealing with the rules of trade between nations, evolved from GATT.
abusive behavior
____ is difficult to assess and manage because of diversity in culture and lifestyle
business ethics; social responsibility
____ relates to the principles and standards that determine acceptable conduct in business organizations, whereas ____ is a broader concept that concerns the impact of the entire business's activities on society
Social Responsibility
a business's obligation to maximize its positive impact and minimize its negative impact on society
Social responsibility is defined as ______.
a business's obligation to maximize its positive impact and minimize its negative impact on society
social responsibility
a business's obligation to maximize its positive impact and minimize its negative impact on society
A corporation is defined as:
a chartered legal entity with authority to act apart from its owners
agency
a common business relationship created when one person acts on behalf of another and under that person's control
Corporate Raider
a company or individual that wants to acquire or take over another company and first offers to buy some or all its stock at a premium in a tender offer
quasi-public corporation
a corporation charted by the government as an approved monopoly to perform services to the general public. Public utilities are examples of quasi-public corporations.
Public Corporation
a corporation in which anyone may buy, sell, or trade stock, that must disclose financial information to the public
MNC (multinational corporation)
a corporation that operates in a worldwide scale, without significant ties to any one nation or region
trading company
a firm that buys goods in one country and sells them to buyers in another country.
multinational corporation
a firm that operates in several countries
franchising
a form of licensing in which a company-the franchiser-agrees to provide a franchisee a name, logo, methods of operation, advertising, products, and other elements associated with a franchiser's business, in return for a financial commitment and the agreement to conduct business in accordance with the franchiser's standard of operations.
A disadvantage of a partnership where remaining partners are unwilling to buy the share of a partner who retires can be referred to as _______
a frozen investment
There are many kinds of partnerships. Which of the following best describes a general partnership?
a general partnership is a partnership in which the partners have full or shared responsibility for operating the business
cartel
a group of firms or nations that agrees to act as a monopoly and not compete with each other, in order to generate a competitive advantage in world markets
The definition of _______ states: The sharing of the costs and operation of a business between a foreign company and a local partner.
a joint venture
Corporate Charter
a legal document that the state issues after filing the articles of incorporation
Corporation
a legal entity, created by the state, whose assets and liabilities are separate from its owners - may be privately owned or publically owned by stockholders - profits paid in cash payments called dividends
The primary difference between a limited-liability partnership (LLP) and limited partnership is
a limited partnership must have at least one general partner that has unlimited liability
strategic alliances
a long-term partnership between or more companies established to help each company build competitive market advantages
Less developed countries are characterized by ______.
a low per-capita income
absolute advantage
a monopoly that exists when a country is the only source of an item, the only producer of an item, or the most efficient producer of an item.
trade deficit
a nation's negative balance of trade, which exists when that country imports more products than it exports
strategic alliance
a partnership formed to create competitive advantage on a worldwide basis
joint ventures
a partnership in which two or more companies ) often from different countries) join to undertake a major project
Limited Partnership
a partnership that has at least one general partner, who assumes unlimited liability, and at least one limited partner, whose liability is limited to his or her investment in the business. (exist only for risky businesses)
General Partnership
a partnership that involves a complete sharing in the management of a business
royalty
a percentage commission based on sales, not profit
multinational strategy
a plan used by international companies that involves customizing products, promotions, and distribution according to cultural technological regional and national differences.
tort
a private or civil wrong other than breach of contract. For example, a tort can result if the driver of a Domino's Pizza delivery car loses control of the vehicle and damages property or injures a person.
ethical issue
a problem, situation, or opportunity that requires an individual, group, or organization to choose among several actions that must be evaluated as right or wrong, ethical or unethical
Sustainability refers to____
a product's or company's ability to exist without causing harm to the environment
Embargo
a prohibition on trade for a particular product.
fraud
a purposeful unlawful act to deceive or manipulate in order to damage others
Quota
a restriction on the number of units of a particular product that can be imported into a country
Uniform Commercial Code (UCC)
a set of statutory laws covering several business law topics -- Article II of the Uniform Commercial Code covers sales agreements for goods and services
global strategy (globalization)
a strategy that involves standardizing products for the whole world as if it were a single entity.
Import tariff
a tax levied by a nation on goods imported into the country. Fixer tariff is a specific amount of money levied on each unit of a product brought into the country, while an ad valorem tariff is based on the value of an item.
licensing
a trade agreement in which one company, the licensor-allows another company, the license, to use its company name, products, patents, brands, trademarks, raw materials, and/or production processes in exchange for a fee or royalty.
GATT (general agreement on tariffs and trade)
a trade agreement originally signed by 23 nations in 1947 that provided a forum for tariff negotiations and a place where international trade problems could be discussed and resolved.
When the value of a country's imports is more than its exports, the country exhibits
a trade deficit
EU (European union)
a union of european nations established in 1958 to promote trade among its members; one of the largest single markets today
Under the US Uniform Partnership Act a partnership is defined as
a voluntary association of two or more persons to act as co-owners of a business for profit
There are many disadvantages to forming a sole proprietorship, such as lack of continuity and difficulty raising capital. Which of the following is not an advantage of forming a business as a sole proprietorship?
ability to pay all taxes
what type of advantage exists when a country is the only source of an item, the only producer of a n item, or the most efficient producer of an item?
absolute
The advantage that exists when a country has a monopoly on producing a specific product is called
absolute advantage
Physical threats, false accusations, use of profanity and yelling at others all fall under which category of organizational misconduct?
abusive behavior
Which behavior is the most common ethical problem for employees?
abusive behavior
_____ is difficult to assess and manage because of diversity in culture and lifestyle.
abusive behavior
physical threats, false accusations, use of profanity's and yelling at others all fall under which category of organizational misconduct?
abusive behavior
can differ from person to person
abusive or intimidating behavior ___. can differ from person to person relates only to profanity does not relate to ignoring someone does not need intent as a consideration is a problem but is clearly defied by the legal sysem
The advantages of becoming a conventional corporation include:
access to more capital, limited liability, size, perpetual life, ease of ownership change, ease of attracting talented employees, separation of ownership from management
When some chemical compounds emitted by manufacturing facilities react with air and rain, the resulting type of air pollution is called_______
acid rain
The purchase of one company by another, usually by buying its stock, is a(n) ______________.
acquiaition
A(n) ______ is where one company purchases the property and obligations of another.
acquisition
A(n) ______ occurs when one company purchases the property and obligations of another.
acquisition
One company's purchase of the property and obligations of another is called:
acquisition
The purchase of one company by another, usually by buying its stock, is called a(n) ______.
acquisition
consumerism
activities that independent individuals, groups, and organizations undertake to protect their rights as consumers
Reasons a business might change ownership form:
adding a partner to the firm, dropping a partner from the firm, seeking limited liability
when considering doing business abroad, U.S. businesspeople need to recognize that they cannot take for granted that other countries offer the same things as are found in industrialized nations--economically _ countries such as the U.S., japan, great britain and canada
advanced
A partnership ________ can spell out the requirements of terminating a partnership.
agreement
NAFTA (north american free trade agreement)
agreement that eliminates most tariffs and trade restrictions on agricultural and manufactured products to encourage trade among Canada, the U.S. and Mexico.
The only legal condition to dissolving a sole proprietorship is that ______.
all financial obligations must be paid or resolve
The only legal condition to dissolving a sole proprietorship is that ______.
all financial obligations must be paid or resolved
A form of business ownership that looks like a corporation but is taxed as though it were a partnership with restrictions on shareholders is ______.
an S corporation
A form of business ownership that looks like a corporation but is taxed as though it were a partnership with restrictions on the number of shareholders is ______.
an S corporation
Partnership
an association of two or more persons who carry on as co-owners of a business for profit
Ethical Issue
an identifiable problem, situation, or opportunity that requires a person to choose from among several actions that may be evaluated as right or wrong, ethical or unethical
ethical issue
an identifiable problem, situation, or opportunity that requires a person to choose from among several actions that may be evaluated as right or wrong, ethical or unethical
The selling of a corporation's stock on public markets for the first time is known as ______.
an initial public offering
World Bank
an org. established by the industrialized nations in1946 to loan money to underdeveloped and developing countries; formally known as the international bank for reconstruction and development.
Cooperative (Co-Op)
an organization composed of individuals or small businesses that have banded together to reap the benefits of belonging to a larger organization - popular with farmers and artisans
Trade deficit:
an unfavorable balance of trade, which occurs when the value of a country's exports is less than its imports
What is the dispute resolution method that involves submission of a dispute to one or more people, usually chosen by the disputing parties, whose decision usually is final and must be followed?
arbitration
Even though there are plenty of people unemployed, many companies have positions that go unfilled. A survey in Indiana revealed that 39% of companies surveyed say the reason positions go unfilled is because applicants ______.
are not qualified
conventional corporation
articles of incorporation, bylaws, hard/expensive to terminate, perpetual life, easy to change owners/just sell stock, more money to start/operate/may sell stocks/bonds, limited liability, corporate, double taxation, separate management from ownership, usually better benefits and wages, advancement opportunities
S corporation
articles of incorporation, bylaws/must meet criteria, hard/expensive to terminate, perpetual life, can sell stock/but with restrictions, more money to start/operate/may sell stocks/bonds, limited liability, taxed as personal income, double taxation, separate management from ownership, usually better benefits and wages, advancement opportunities
The legal rules and regulations that govern the conduct of business is referred to as ______.
business law
_______________ refers to the rules and regulations that govern the conduct of business
business law
limited liability company
articles of organization and operating agreement; no eligibility requirements, may be difficult, depending upon operating agreement to terminate, varies according to dissolution dates in articles of organization, can't sell stock, limited partners' capital and loans, limited liability, taxes varies, management responsibilities varies, benefits varies, but are not tax deductible
Which legal document sets forth the basic agreement between partners?
articles of partnership
When are joint ventures and syndicates dissolved?
as soon as their purposes have been achieved
Which of the following is a reason for trade restrictions?
b. Protection for new or weak industries
For the United States, importing involves the purchase of goods and services from foreign sources while exporting involves selling goods and services to foreign markets
balance of trade
The total value of a nation's exports compared to its imports measured over a particular period is the definition of
balance of trade
The total value of a nation's exports compared to its imports measured over a particular period is the definition of a ______.
balance of trade
if the value of a country;s imports exceed the value of its exports, the country is said to have a negative:
balance of trade
If a business cannot meet its financial obligations its must sometimes file for______
bankruptcy
According to the textbook, a partnership usually has more capital available than a sole proprietorship because partners can pool their funds. This additional capital, in addition to the general partners' unlimited liability and partners working together in management skills, may encourage _________ to extend more credit or approve larger loans to a partnership than to a sole proprietor
banks and suppliers
The right to ______ gives consumers the freedom to review complete information about the products they are buying.
be informed
Why is ethical decision making difficult?
because there are always gray areas that create dilemmas
One of the benefits of being a sole proprietorship is _________, which is evidenced by a sole proprietor being completely free to make decisions about the firm's operations, location, expansion plans, business hours, and other details
being your own boss
A _____ is/are elected by the stockholders to oversee the general operation of the corporation and set its long-range objectives.
board of directors
Nonverbal, usually unconscious communication through gestures, posture, and facial expression is referred to as _____ language
body
Nonverbal, usually unconscious communication through gestures, posture, and facial expression is referred to as
body language
In a leveraged buyout, employees, managers, or investors finance the purchase of the company by:
borrowing against its assests
In a leveraged buyout, employees, managers, or investors finance the purchase of the company by ______.
borrowing against its assets
What are two typical forms of consumerism?
boycotting companies and writing letters to companies
Money given in exchange for a special favor is called a _____ and it benefits an individual or a company at the expense of other stakeholders
bribe
money given in exchange for a special favor is called a ______ and it benefits an individual or a company at the expense of other stakeholders.
bribe
Money given in exchange for a special favor is called a _____ and benefits an individual or a company at the expense of other stakeholders.
bribery
Payments, gifts, or special favors intended to influence the outcome of a decision
bribery and are unethical
Payments, gifts, or special favors intended to influence the outcome of a decision are considered ______.
bribery and are unethical
why is size an advantage of the corporation?
build modern facilities, diversify through acquisition, acquire the latest equipment, attract experts for hire
Although sexual harassment has legal recourse, _______had little recourse at this time
bullying
Although sexual harassment has legal recourse, workplace _______ has little legal recourse at this time.
bullying
During the 2020 pandemic shutdown, many companies were forced to move to a remote working situation. In terms of unethical behavior, the likely reduced incidents of
bullying
What type of behavior creates a hostile workplace environment but has little legal recourse?
bullying
Swiss drugmaker Roche paid $43 billion to take control of biotechnology giant Genentech. Belgium's InBev purchased the largest US brewer, Anheuser-Busch and its Budweiser and Bud Light brands, for $52 billion.
business acquisitions
____is/are principles and standards that determine acceptable conduct in business
business ethics
when franchising internationally deciding not to adapt a product or service to local conditions can lead to ?
business failure
If a manager pressures a subordinate to engage in activities that he or she may otherwise view as unethical, such as engaging in accounting fraud or stealing a competitor's secrets, there exists an ethical issue related to _______.
business relationships
Sole Proprietorship
businesses owned and operated by one individual, employing less than 50 people.
product liability
businesses' legal responsibility for any negligence in the design, production, sale, and consumption of products
importing is:
buying products from another country
how the firm is to be operated from both legal and managerial points of view:
bylaws
The legal ability to enter into a contract is called contractual _________ and my be restricted by age or mental capacity.
capacity
Global Warming
carbon dioxide in the earths atmosphere prevents the earth's surface from cooling
global warming
carbon dioxide in the earths atmosphere prevents the earth's surface from cooling
OPEC, the Organization of Petroleum Exporting Countries, was founded in the 1960s to increase the price of petroleum throughout the world and to maintain high prices. OPEC is an example of a(n) _____.
cartel
less-developed countries
characterized by low per-capita income, which means that consumers are less likely to purchase nonessential products.
Natalia notices that one of her coworkers takes extended lunch hours and often leaves the office early. In deciding whether or not to report this behavior, what should Natalia do first?
check her company's policies and codes of ethics regarding this behavior
acid rain
chemical compounds that react with air and rain
COPPA was enacted in 2000 to protect which aspect of Internet activity ?
children's online activities
According the the consumer bill of rights, the right to _____ ensures that consumers have access to a variety of goods and services at competitive prices.
choose
According to the consumer bill of rights, the right to ________ ensures that consumer have access to a variety of goods and services at competitive prices.
choose
______ law specifies the rights and duties of individuals and organizations and violations may result in fines but not imprisonment
civil
Project Repat is classified as a(n) ________ because only a few people own shares of its stock
closed corporation
A(n) _______ corporation is a corporation whose stock is owned by relatively few people and is not sold to the general public; while, a(n) ________ corporation is one whose stock can be bought and sold by any individual
closed; open
The actions of a fellow franchisee will affect your franchise. This is known as the ___________ ___________.
coattail effects
the customer passion for high-flying franchisor Krispy Kreme sank as the market became flooded with new stores and the availability of the product at retail locations caused overexposure
coattail effects
The formalized rules and standards describing expected employee behavior are outlined in ______.
codes of ethics
Partnerships operate as both an entity and as a collection of individuals. When it comes to taxes, partnerships are a(n) _______ and _______
collection of individuals; pay no income tax
voluntary agreement
comes about when one party makes an offer and the other accepts. If both the offer and the acceptance are freely, voluntarily, and knowingly made, the acceptance forms the basis for the contract
*** No internal tariffs is a benefit enjoyed by members of ____ markets, or "trading blocs."
common
Although owners of ___________ stock do not get any preferential treatment with regard to dividends, they do get some say in the operation of the corporation.
common
Although owners of ____________ stock do not get any preferential treatment with regard to dividends, they do get some say in the operation of the corporation.
common
The right to vote for the board of directors is given to ______ stockholders.
common
Criminal and civil laws are derived from four sources. Which source refers to precedents established by judges?
common law
***A regional group of countries with a common external tariff, no internal tariffs, and coordinated laws to facilitate exchange among members is the definition of:
common market
The Uniform Partnership Act defines the three key elements of a general partnership as:
common ownership, shared profits and losses, participation in operations
False and misleading advertising is an example of how _______ is an area in which ethical concerns may arise.
communication
Making claims about dietary supplements or the health benefits of certain unproven ingredients is an issue related to ________.
communications
A _______ advantage is when a country specializes in products that it can supply more efficiently or at a lower cost than it can produce other
comparative
which type of advantage occurs when a country specializes in products it can supply more efficiently or at a lower cost than it can produce other items?
comparative
u.s. business will experience increased ___? in the future due to the effects of globalization.
competition
LLCs are flexible, simple to run, and do not require the members to hold meetings, keep minutes, or make resolutions, all of which are necessary in _______________.
corperations
sustainability
conducting activities in a way that allows for the long-term well-being of the natural environment, including all biological entities. Sustainability involves the assessment and improvement of business strategies, economic sectors, work practices, technologies, and lifestyles so that they maintain the health of the natural environment
Sustainability can be defined as _____.
conducting activities in such a way as to provide for the long-term well-being of the natural environment
Sustainability can be defined as ______
conducting activities in such a way as to provide for the long-term well-being of the natural environment
Sustainability can be defined as ______.
conducting activities in such a way as to provide for the long-term well-being of the natural environment
Sustainability can be defined as________
conducting activities in such a way as to provide for the long-term well-being of the natural environment
sustainability
conducting activities in such a way as to provide for the long-term well-being of the natural environment
sustainability can be defined as.
conducting activities in such a ways as to provide for the long-term well-being of the natural environment.
This exists when a person must choose whether to advance his or her own personal interests or those of others
conflict of interest
This exists when a person must choose whether to advance his or her own personal interests or those of others.
conflict of interest
Which ethical issue is being exhibited by a manager that makes decisions which profit him personally rather than profiting the firm and its investors?
conflict of interest
If a chemical company merged with a textile manufacturer, it would be an example of a ______.
conglomerate merger
The joining of firms in completely unrelated industries is a _________ ___________.
conglomerate merger
The joining of firms in completely unrelated industries is a(n) _______.
conglomerate merger
The joining of firms in completely unrelated industries is a(n) ________
conglomerate merger
real property
consists of real estate and everything permanently attached to it
The activities that independent individuals , groups, and organizations undertake to protect their rights as consumers is called______
consumer
The activities that independent individuals, groups, and organizations undertake to protect their rights as consumers is called ______.
consumerism
The activities that independent individuals, groups, and organizations undertake to protect their rights as consumers is called _________.
consumerism
A ________ is a mutual agreement between two or more parties that can be enforced in a court if one part chooses not to comply.
contract
A_________is a mutual agreement between two or more parties that van be enforced in a court if one party chooses not to comply
contract
An American denim company hires a foreign firm to cut, sew, and finish the company's jeans before putting the American company's brand name on the product. This is an example of
contract manufacturing
An American jeans company hires a foreign firm to cut, sew, and finish the jeans before putting the American company's brand name on the product. This is an example of ______.
contract manufacturing
According to most states, all of the following contract should be in writing EXCEPT ___________.
contracts for the sale of goods under $500
The most common way that businesses exercise community responsibility is through ______.
contributions to charitable organizations
When farmers join together to get better prices for their food products, they form a farm ________.
cooperative
When producers, consumers, or workers with similar needs pool their resources for mutual gain, they start a(n) ______.
cooperative
when producers, consumers, or workers w/similar needs pool their resources for mutual gain, they start a:
cooperative
_______ protect the ownership rights on material (often intellectual property) such as books, music, videos, photos, and computer software.
copyrights
The formation of a ____________ can be costly. A charter must be obtained, and this usually requires the services of an attorney and payment of legal fees.
corperation
The formation of a ______________ can be costly. A charter must be obtained, and this usually requires the services of an attorney and payment of legal fees.
corperation
Corporations have the ability to offer benefits such as stock options which serves to attract talented employees. This is an advantage of what form of business?
corporate
The _______ form of business assists people in becoming owners without having to work at the firm.
corporate
The extent to which businesses meet the four dimensions of social responsibility placed on them by stakeholder is referred to as _______ citizenship.
corporate
A legal document that the state issues to a company based on information the company provides in the articles of incorporation is called a ______.
corporate charter
Based on the information in the articles of incorporation, the state issues a ___________ ______________ to the company.
corporate charter
Before the owners of a corporation can establish the company's bylaws and elect a board of directors, they must receive a _____ from the state in which they are doing business.
corporate charter
Which of the following is a legal document that the state issues to a company based on information the company provides in the articles of incorporation?
corporate charter
The extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their stakeholder is referred to as ________.
corporate citizenship
The extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their stakeholders is referred to as ______.
corporate citizenship
The company (or individual) that wants to acquire or take over another company is known as a(n) __________ _____________.
corporate raider
What is a company (or individual) called that wants to acquire or take over another company?
corporate raider
A _________ not only limits the liability of owners but often eanbles many people to share in the ownership (profits) without working there or having other commitments to it.
corporation
A _____________ is a state-chartered entity that exists in the eyes of the law and controls risk to the owners of the firm.
corporation
As a legal entity, _____, have many of the rights, duties, and powers of a person, such as the right to receive, own, and transfer property.
corporation
As a legal entity, _______ have many of the rights, duties, and powers of a person, such as the right to receive, own, and transfer property.
corporation
As a legal entity, _______ have many of the rights, duties, and powers of a person, such as the right to receive, own, and transfer property.
corporations
If the owner of a sole proprietorship wants to incorporate, the following disadvantages must be considered:
cost of incorporation, double taxation
A ______ agreement is a complex form of bartering in which several countries may be involved, each trading goods for goods or services for services.
countertrade
_____law not only prohibits a specific kind of action, such as unfair competition or mail fraud, but also imposed a fine or imprisonment for violating the law.
criminal
Laws are classified as either criminal or civil. _______ law not only prohibits a specific kind of action, such as unfair competition or mail fraud, but also imposes a fine or imprisonment for violation the law. ________ law specifies the rights and duties of individuals and organizations and violations may result in fines but not imprisonment.
criminal civil
When a business is accused of mail fraud and members of the staff face possible imprisonment, it is an example of
criminal law
Sarbanes-Oxley Act
criminalized securities fraud and strengthened penalties for corporate fraud
Which of the following countries are under U.S. embargo ?
cuba
Differences in spoken and written language are a(n) ______ barrier to international trade.
cultural
What is considered ethical may differ depending on the ______ in which a business operates.
culture
Experience with the _____ in which a business operates is critical to understanding what is ethical or unethical.
culture, cultural, or society
What are stakeholders?
customers, competitors, government regulators, interest groups, the public
appellate court
deals solely with appeals relating to the interpretation of law. Thus, when you hear about a case being appealed, it is not retried, but rather reevaluated
Uniform Partnership Act (UPA) <Louisiana is the only state that does not adopt the UPA>
defines the three key elements of any general partnership as (1) common ownership, (2) shared profits and losses, and (3) the right to participate in managing the operations of the business.
Unethical behavior in business can be reduced if management does all of the following except _______.
depends totally on employees' personal ethics.
today economists suggest we are moving into the "second wave"of offshore outsourcing shifting from product assembly to?
design and architecture
Business Ethics
determine acceptable conduct in business organizations
The definition of ___ states: lowering the value of one nation's currency relative to other currencies.
devaluation
when a government intentionally decreases the value of its currency in relation to other currencies, it is called _.
devaluation
Companies that want to retain control and are willing to invest resources in international business will consider_____which is he ownership of OVERSEAS facilities
direct investment
When Lowe's builds its home improvement stores in Australia and other countries, this level of international business is called
direct investment
When Lowe's builds its home improvement stores in Australia and other countries, this level of international business is called ______.
direct investment
It is important to have Articles of Partnership because problems between partners may occur due to
disagreements over dividing profits
Aiden does not offer any direction to his employees regarding ethical behavior. Because of this, Aiden is putting his company at risk for which three of the following? (Select all that apply)
dishonesty conflicts of interest manipulation
Sole proprietors keep all of their profits, but partners must ________ profits based on their ownership stake.
divide
Sharing risk means sharing rewards in a partnership. A partner expects to be rewarded for putting time and money into a firm through:
division of profits
if one partner puts in more money and the other puts in more hours, each may feel justified in asking for a bigger share of the profits could cause conflicts
division of profits
Advantages of farm cooperatives for their members is that they:
do not pay taxes as corporations do, increase economic power
Advantages of farm cooperatives for their members:
do not pay taxes as corporations do, increase economic power
foreign corporation
does business in one state but is chartered in another. about one-third of all corporations are charted in Delaware because of its relatively attractive rules for incorporation. A foreign corporation must register in states where it operates.
alien corporation
does business in the United States but is chartered (incorporated) in another country
domestic corporation
does business in the state in which it's chartered<incorporated>
U.S. exports become relatively cheap for international markets when the value of the
dollar declines relative to other currencies.
free trade can cause __? workers to lose their jobs due to increased imports or production shifts to low wage global markets.
domestic
When a corporation pays a tax on its profits and individual stockholders each pay tax on dividends distributed by the corporation, it is called ______.
double taxation
When the corporation pays a tax on its profits and individual stockholders each pay tax on dividends distributed by the corporation, it is called ______.
double taxation
A corporation can elect to change its tax status to an S corporation. Which of the following is an advantage of electing S corporation status?
double taxation is eliminated as profits and losses pass directly to stockholders through the business and are reported on the owners' personal income tax returns
Selling products in a foreign country at a lower price than what is charged in the producing country is called ___.
dumping
The Uruguay Round of GATT negotiations, provided new rules to prevent
dumping
The act of a country or business selling products at less than what it costs to produce them is referred to as
dumping
Businesses must first be responsible to their owners, who are primarily concerned with ______.
earning a profit
Businesses must first be responsible to their owners, who are primarily concerned with _______.
earning a profit
Businesses must first be responsible to their owners, who are primarily concerned with______
earning a profit
One of the most important advantages of the sole proprietor form of ownership is that a business owner:
easier to start and end the business
political, __?and social forces are important to understand when involved with global trade. For example the exchange rate of the dollar causes foreign labor costs to vary.
economic
exchange rates and labor costs both affect trading in global markets. what category of forces affecting global trade do they fall under?
economic and financial
distribution in many developing countries is difficult because of the lack of reliable transportation infrastructure. This is an example of what type of barriers affecting global trade?
economic barriers
Which of the following are considered major hurdles to successful international trade?
economic, legal, political barriers
Industrialized nations
economically advanced countries
comparative advantage theory states that a country should export goods it produces most efficiently and import those it doesn't. Absolute advantage occurs when a country is able to produce a specific products more ___? than any other country.
efficiently
Board of Directors
elected by the stockholders to oversee the general operation of the corporation and set the long-range objectives of the corporation. - hire corporate officers
What was the primary benefit for the Europeans Union (EU) of adopting the euro in 1999?
eliminating currency conversions
If the United States were to prohibit Venezuela from selling its coffee in the United States, then the U.S. is establishing ______ on that particular product.
embargo
a(n) _ is a complete ban on the import or export of a certain product, or the stopping of all trade with a particular country.
embargo
Wind power, solar power, and nuclear power are all forms of alternative ________ sources that businesses are turning to in order to reduce carbon emissions.
energy
Wind power, solar power, and nuclear power are all forms of alternative _____ sources that businesses are turning to in order to reduct carbon emissions.
energy, power, or fuel
Partners must ______ their taxes and make quarterly payments or suffer penalties for nonpayment.
estimate
To build trust among individuals, organizations should adhere to conduct that is _____ in order to validate and promote confidence in business relationships.
ethical
While unemployment is seen as an economic issue, it carries _____ implications when the gap between rich and poor is large.
ethical
What is likely to result when managers or employees of an organization have ethical beliefs that differ from those of the organization?
ethical conflict
An identifiable problem, situation, or opportunity requiring a choice among several actions that must be evaluated as right or wrong, ethical or unethical
ethical issue
An identifiable problem, situation, or opportunity that requires a person to choose between actions that may be evaluated as ethical or unethical is called a(n) _________.
ethical issue
Jarek is short of his sales goal this month. He knows if he adds small items to his customer's orders, they most likely won't notice the small increase and then he would be able to make his goal. His only other choice is to accept he hasn't met the goal and will lose some of his commission. The exemplifies a(n)______
ethical issue
Trevor is short of his sales goal this month. He knows if he adds small items to his customer's orders, they most likely won't notice the small increase and then he would be able to make his goal. This exemplifies a(n) ______.
ethical issue
Codes of _______ are formalized rules and standards describing expected employee behavior.
ethics
Codes of _______ are formalized rules and standards that describe what the company expects of it s employees.
ethics
Fairness and honesty are at the heart of business _____ and relate to the general values of decision makers.
ethics
Fairness and honesty are at the heart of business ______ and relate to the general values of decision makers.
ethics
Organizational _____ initiatives have been supportive of many positive and diverse organizational objectives, such as profitability, hiring, employee satisfaction, and customer loyalty.
ethics
Organizations that adopt integrity-based ethical initiatives recognize that ______.
ethics should be a part of core organizational values
Organizations that adopt integrity-based ethical initiatives recognize that _______.
ethics should be a part of core organizational values
What are the 4 categories of social responsibility?
ethics, legal, economic, philanthropy
U.S. businesspeople are often accused of ___ an attitude that your own culture is superior to other cultures.
ethnocentricity
The common currency adopted by the European Union is called the
euro
puffery
exaggerated advertising, blustering, and boasting upon which no reasonable buyer would rely
Major League Baseball enters into an agreement with a Canadian clothing company allowing it to sell its clothing with the MLB logo.
example of a licensing agreement.
An American auto manufacturer invests in building a factory in Sweden and moves its manufacturing operations to that country.
example of direct investment
When a country restricts the amount of currency that can be bought and sold it is implementing a(n)
exchange control
When a country restricts the amount of currency that can be bought and sold it is implementing a(n) ______.
exchange control
the ratios at which one nation's currency can be exchanged for another nation's currency is called the:
exchange rate
the value of one nations currency relative to currencies of other countries is the ?
exchange rate
conflict of interest
exists when an individual must choose whether to advance his or her own interests, those of the organization, or those of some other group
export agent
export agents seldom produce good themselves, instead, they usually handle international transactions for other firms. They either purchase products outright or take them on consignment . They then eventually mark-up the price.
To meet growing global demand for almonds, American producers of almonds have increased sales outside of the United States in recent years
exporting
when ford motor company ships and sells its cars in china, it is involved in _
exporting
A trade deficit occurs when ______.
exports are less than imports
The balance of trade is the total value of a nation's ____ compared to its ___ over a particular period of time.
exports; imports
If Sony was investigated for allegedly raising prices of its PlayStation excessively during the Christmas buying season and thereby manipulating the supply of games available at that time, this would be an ethical issue concerned primarily with _____.
fairness and honesty
That businesspeople are expected not to harm customers, clients, and competitors knowingly through deception, misrepresentation, coercion, or discrimination is part of ______.
fairness and honesty
What is at the heart of business ethics?
fairness and honesty
True or false: An advantage of partnerships is that all the partners are responsible for the business actions of all the other partners.
false
True or false: Copyright and patent laws are universal worldwide.
false
True or false: The Asia-Pacific Economic Cooperation (APEC) is a trade alliance that promotes trade and economic integration among member nations in Southeast Asia.
false
The inital goal of a _________ __________ was to join together to get better prices for their food products.
farm cooperative
What are the most popular businesses for franchising?
fast food restaurants, gas stations with convenience stores, full service restaurants
What does a business need prior to opening a bank account or hiring employees?
federal tax identification number
The Dodd-Frank Act was passed to reform the ______ industry.
financial
What is industry is least trusted in business?
financial services
There are many ways in which corporations can merge. Which of the following describes a vertical merger?
firms that operate at different but related levels in the production and marketing of a product join together
double taxation
first: corporation pays tax on its income before it can distribute any, as dividends, to stockholders, second: the stockholders pay income tax on the dividends they receive
A ________ tariff is a specific amount of money levied on each unit of a product brought into the country.
fixed
*** The possibility of having all foreign assets expropriated is a disadvantage of ____ ____ ____.
foreign direct investment
The possibility of having all foreign assets expropriated is the major shortcoming of what strategy?
foreign direct investment
counter trade agreements
foreign trade agreements that involves bartering products for other products instead of for currency
How can someone starting a business avoid losses if sued?
form a corporation
A code of ethics represents ______ rules and standards of what a company expects of its employees.
formalized
codes of ethics
formalized rules and standards that describe what a company expects of its employees
The right to use a specific business' name and sell its products or services in a given territory is a ________________ agreement.
franchise
_ is a form of licensing in which one company, the franchiser, agrees to provide a franchisee a name, logo, methods of operation, advertising, products and other elements associated with the franchiser's business, in return for a financial commitment and agreement to conduct business in accordance with the franchiser's standard of operations.
franchising
One role of the FTC's Bureau of Consumer Protection is to protect consumers from _____.
fraud
What is a purposefully unlawful act to deceive or manipulate in order to damage others?
fraud
____ trade is the movement of goods and services among nations without political or economic barriers.
free
A key disadvantage of a general partnership is ______.
friction between partners
A key disadvantage of the partnership form of business is ______.
friction between partners
A ___________ partnership is a partnership that involves a complete sharing in both the management and the unlimited liability of the debts of the business.
general
Mark, Cal and Aidan have decided to form a business where all owners will share in operating the business and in assuming liability for the business debts. They are most likely forming a __________ partnership.
general
The two major types of partnerships are ______.
general and limited
A partnership where all owners share in operating the business and in assuming unlimited liability for the business's debts is a(n) ______.
general partnership
What are examples of types of partnerships?
general, limited, master limited
A _______ partner has responsibility or liability for losses beyond their investment, but a _______ partner only has liability for the amount they invest
general; limited
The following behavior is an example of ethical consideration within business relationships:
keeping company secrets
While there may be 300 million people in the United States, there are over 7 billion people in the global market. Therefore, global businesses value employees who:
have experience in other countries.
How to qualify to be S corporation?
have no more than 100 shareholders<all members of a family count as one shareholder>, have shareholders that are individuals or estates, and who (as individuals) are citizens or permanent residents of the US, have only one class of stock, derive no more than 25 percent of income from passive sources<rents, royalies, interest>
choosing a strategy that involves high rise generally has the potential for ____? profits.
high
Knowing the importance of employee relations, what is likely result of a company that listens to employees' grievances and treats them fairly?
higher morale among employees
LLCs do have to submit articles of organization and an operating agreement, but do not have to:
hold annual meetings, file written resolutions, keep minutes
If two companies that both make water valves for plumbing contractors merge, it would be an example of a ______ merger.
horizantal
The joining of two firms in the same industry is a __________ merger
horizontal
A merger of two firms in the same industry that allows the companies to diversify or expand their products is a(n):
horizontal merger
A merger of two firms that sell similar products to the same customers is a(n) ______.
horizontal merger
If Project Repat were to acquire another firm that makes or sells similar products in similar markets, it would be an example of a
horizontal merger
When the management and board of directors of a firm targeted for acquisition disapprove of a merger, this is known as a:
hostile takeover
A manufacturer made the decision to buy less expensive materials from another supplier which resulted in the reduced quality of its products. As a result, company sales dropped and many retailers refused to carry the product line. This is an example of ______.
how negative impressions of a business can affect its ability to achieve its goals
A manufacturer made the decision to buy less expensive component parts from a supplier which resulted in the reduced quality of its products. As a result, company sales dropped and many retailers refused to carry the product line. This is an example of ________
how negative judgements can affect an organization's ability to achieve its goals
what do bylaws consist of?
how/when/where shareholders/directors meetings are held/how long directors are to serve, directors authority, duties/responsibilities of officers/length of their service, how stock is issued, employment contracts
An ___ ___ is a limit on the number of products in certain categories that a nation can import and is considered a form of trade protectionism.
import quota
What type of tax is levied by a nation on goods imported into the country?
import tariff
implied warranty
imposed on the producer or seller by law, although it may not be a written document provided at the time of sale
What is 'Trust in Business' ?
in business, trust is the glue that holds relationships together.
APEC (asia-pacific economic cooperation)
in international trade alliance that promotes open trade and economic and technical cooperation among member nations
many companies eventually ______ to avoid liability for losses.
incorporate
Since the implementation of NAFTA in 1994, trade between Mexico, Canada, and the United States has
increased
Currency devaluation ___________ the cost of foreign goods and _______ the cost of domestic goods to foreign firms.
increases; decreases
An advantage of a sole proprietorship is
independent decision making
Ethical decisions in organizations are influenced by what 3 key factors?
individual moral standards, the opportunity to engage in misconduct, the influence of managers and co-workers
3 factors that influence Business Ethics
individual standards and values, influence of managers and co-workers, opportunity: codes and compliance requirements
incorporators
individuals creating the corporation - three incorporators are usually required to incorporate a business
The three types of mergers are differentiated by analyzing whether the companies merging are in the same, related, or different ___________ .
industries
The three types of mergers are differentiated by analyzing whether the companies merging are in the same, related, or different ____________ .
industries
A country's economic activity is supported by that country's _____, which may include things such as highways, schools, utilities and power plants, and commercial distribution systems.
infrastructure
disadvantages of corporations
initial cost, extensive paperwork, double taxation, two tax returns, size<too inflexible and tied down in red tape>, difficulty of termination, possible conflict with stockholders and board of directors
In a partnership, the liability of limited partners is limited to their ______.
initial investment
A private corporation that needs more money to expand or to take advantage of opportunities may have to obtain financing by "going public" through a(n) _______, that is, becoming a public corporation by selling stock so that it can be traded in public markets.
initial public offering
What is the difference between an inside director and an outside director?
inside directors work within the company; outside directors are not affiliated with the company
The buying, selling, and trading of goods and services across national boundaries is referred to as
international business
The buying, selling, and trading of goods and services across national boundaries is referred to as ______.
international business
WTO (world trade org.)
international organization dealing with the rules of trade between nations, the legal grounds for international commerce
A global strategy
involves standardizing products, and their promotion and distribution if possible, for the whole world.
Arbitration
involves submission of a dispute to one or more third-party arbitrators, usually chosen by the disputing parties, whose decision usually is final
Franchising
is a form of licensing which one company, the franchiser, agrees to provide a franchise a name, logo, methods of operation, adverting, products, and other elements associated with the franchiser's business, I return for a financial commitment and agreement to conduct business in accordance with the franchiser's standard of operations.
Offshoring
is defined as the relocation of business processes by a company or subsidiary to another country.
integrity
is one of the most important and oft-cited elements of virtue, and refers to being whole, sound, and in an unimpaired condition. fairness integrity values reciprocity honesty
nonprofit (or one-for-profit) corporation
is one that doesn't seek personal profit for its owners.
professional corporation
is one whose owners offer professional services (doctors, lawyers, etc.).Shares in professional corporations aren't publicly traded.
closed<private>corporation
is one whose stock is held by a few people and isn't available to the general public
A non-for-profit corporation
is organized for charitable purposes
A master limited partnership looks much like a corporation because it:
is traded on the stock exchange
The fact that environmental responsibility requires trade-offs means that _____.
it imposes costs on both business and the public
A disadvantage of a sole proprietorship is that ______.
it is directly linked to the owner's ability to work
One advantage of a partnership is that ______.
it is easy to create
A sole proprietorship has a limited life span unless:
it is sold to someone else, it is taken over by an heir
It is easy to start a sole proprietorship because ______.
it may only require a simple permit or license to start
The definition of ___ ___ states: a partnership in which two or more companies, often from different countries, join to undertake a major project
join venture
A partnership established for a specific project or for a limited time is called a _________ venture.
joint
A partnership established for a specific project or for a limited time is called a venture.
joint
A company that lacks sufficient resources to operate in another country may choose to form a(n)________by finding a local partner to share the costs and operation of the business.
joint venture
A partnership established for a specific project or for a limited time (for example a US company joining with a foreign firm to enter new markets) is called a(n):
joint venture
A partnership established for a specific project or for a limited time is called ______.
joint venture
A partnership established for a specific project or for a limited time is called a ______.
joint venture
The legal power of a court, through a judge, to interpret and apply the law and make a binding decision in a particular case is referred to as _______
jurisdiction
Employees except businesses to__________
keep them informed of what is happening in their economy, pay them adequately for their work, provide a safe workplace
The term of the business being dependent on the life of the business owner is referred to as ______.
lack of continuity
disadvantages of franchises
large start-up costs, shared profit, management regulation, coattail effects, restrictions on selling, fraudulent franchisors
legal and regulatory forces can create problems in the global market because ?
laws regulation vary greatly between countries.
When one individual or organization takes another to court using civil laws, that individual is attempting to resolve a conflict through a
lawsuit
The primary method of resolving conflicts and business disputes using civil law is through_____
lawsuits
The start-up costs of filing for incorporation are high because:
lawyers and accountants are needed to do the complex filings
The startup costs of filing for incorporation are high because ______.
lawyers and accountants are needed to do the complex filings
Sole proprietors can leave their business to their heirs:
leaving a legacy
Bankruptcy is sometimes called ______ insolvency.
legal
Bankruptcy is sometimes called ________ insolvency.
legal
Problems arising from differences in antitrust rules, labor relations, patents, copyrights, taxes, and other issues are all considered examples of _____ and regulatory forces within a global market.
legal
Tariffs and other trade restrictions are part of a country's ______ structure but may be established or removed for political reasons.
legal
Tariffs and other trade restrictions are part of a country's_____structure but may be established or removed for political reasons.
legal
Select from the following the four stages of social responsibility.
legal compliance ethics financial philanthropy
Articles of Incorporation
legal documents filed by incorporators in a state that set forth the basic agreement in a corporation
Articles of Partnership
legal documents that set forth the basic agreement between partners.
In business law, the state or condition of being lawful is referred to as ________.
legality
The current trend is to move away from _______ -based ethical initiatives in organizations to _______ -based initiatives that make ethics a part of core organizational values.
legally; cultural
A country whose consumers are less likely to purchase nonessential products because they have a low per-capita income is considered to be a
less-developed country
A(n) ______ is an attempt by employees, management, or a group of investors to purchase an organization primarily through borrowing.
leveraged buyout
A ___________ ____________ can be initiated by employees, managers, or investors who borrow necessary funds to purchase all shares of a firm's stock.
leveraged buyout (LBO)
What are some ways an LLP deals with liability for partners?
liability is limited to losing only personal assets directly related to personal acts, when a partner is sued individually for malpractice, it does not affect other partners, partners are not held liable for each others' actions
attributes of a corporation:
liability separate from owners, legal entity, state chartered
a licensor may compete by licensing the right to manufacture its products or use its trademark to a foreign company, known as a ?
licensee
This is a trade agreement in which one company allows another company to use its company name, products, patents, brands, trademarks, raw materials, and/or production processes in exchange for a fee or royalty.
licensing
What is the global strategy in which a firm allows a foreign company to produce its product in exchange for a fee?
licensing
When the NBA formed an agreement with Adidas to allow Adidas to be the official apparel provider of the NBA, it entered into what type of arrangement?
licensing
_ is a trade agreement in which one company allows another company to use its company name, products, patents, brands, trademarks, raw materials, and/or production processes in exchange for a fee or royalty.
licensing
of all the strategies for reaching global markets, ___? offers the least amount of commitment, control, risk, and profit potential.
licensing
what is the global strategy in which a firm allows a foreign company to produce its product in exchange for a fee?
licensing
which strategy for reaching global markets provides for the lowest risk?
licensing
Perpetual _________ for a corporation means that the death of one owner does not end the corporation
life
Limited liability would only be granted to a _____ partner.
limited
Owners in an LLC have ______ liability.
limited
Stockholders' liability for losses only up to the amount they invest is called ______ liability.
limited
___________ liability means that the owners of the business are responsible for its losses only up to the amount they invest.
limited
Bob and Dan are doctors in a medical practice. Dan is being sued for malpractice, but it will not affect Bob's assets because they formed an __________ ________ partnership.
limited liability
Don wanted to incorporate his business and liked the attributes of an S-corporation, however, he did not feel the eligibility requirements would work for his purposes. He is likely to choose to form a <n> ______.
limited liability
For a firm like Project Repat, one of the advantages of incorporation is
limited liability
Stockholders' liability for losses only up to the amount they invest is called ______________.
limited liability
Which of the following is an advantage of corporations?
limited liability
liability means that the owners of the business are responsible for its losses only up to the amount they invest.
limited liability
advantages of corporations
limited liability, ability to raise more money for investment, size, perpetual life, ease of ownership change, ease of attracting talented employees, separation of ownership from management
Advantages of LLCs:
limited liability, choice of taxation<as partnerships or as corporations>, flexible ownership rules, flexible distribution of profits and losses, operating flexibility
Advantages of a corporation
limited liability, perpetual life, ease of transfer of ownership
What are some of the advantages of a corporation?
limited liability, perpetual life, ease of transfer of ownership
you can operate without the fear that one of your partners might commit an act of malpractice resulting in a judgment that takes away your house, car, retirement plan, even your collection of vintage Star Wars action figures, as would be the case in a general partnership.
limited partner in an LLP
When there is one or more general partners and one of more limited partners, the firm is a:
limited partnership
Select the two main types of partnerships.
limited, general
Which form of business ownership provides limited liability, as in a corporation, but is taxed like a partnership and is not restricted on the number of allowed stockholders?
limited-liability company
Codes of ethics foster ethical behavior by _______.
limiting the opportunity to behave unethically by providing punishments for violations of the rules and standards
Less developed countries are characterized by a
low per-capita income
advantages of franchising:
lower failure rate, personal ownership, recognized name
The UPS Store provides its more than 4,700 franchisees with a software program that helps them build customer databases along with quick and personal one-on-one phone an de-mail support.
management and marketing assistance advantage of Franchises
advantages of franchises
management and marketing assistance, personal ownership, nationally recognized name, financial advice and assistance, lower failure rate
taking a firm private
management or a group of stockholders obtain all the firm's stock for themselves by buying it back from the other stockholders
Sunoco Inc. formed the MLP Sunoco Logistics Partners (SXL) to acquire, own, and operate a group of crude oil and refined-product pipelines and storage facilities. Income received by SXL is not taxed before it is passed on to investors as dividends as it would be if SXL were a corporation.
master limited partnership (MLP)
Social responsibility defined
maximize positive and negative impact
3 major factors associated with corporate social responsibility
maximize positive societal impact, minimizing negative societal impact, and acting in the organization's best interest in returning a profit
A business's primary obligation to its owners and investors is to_____
maximize the owner's investments in the firm
A business's primary obligation to its owners and investors is to ______.
maximize the owners' investments in the firm
Protective tariffs
meant to protect domestic products by raising the price of imported ones. These allow more expensive domestic goods to compete with foreign ones.
Select the three items that would be considered ethical behavior in a business.
meeting obligations and responsibilities avoiding conflicts of interest keeping company secrets
The result of two firms (usually corporations) combining to form one company is called a __________
merge
When two firms join together to form one new company, it is called a(n) _________________.
merge
The result of two firms (usually corporations) combining to form one company is called a(n) ______.
merger
When two firms join together to form one new company, it is called a ______________.
merger
Rachel spends an hour or more each day at work checking her Facebook feed, Instagram account, and watching Youtube videos. Rachel is guilty of which form of misconduct?
misuse of company time
A limited partnership is specially designed to help raise what?
money
consideration
money or something of value must be given in return for fulfilling a contract
Studies have shown that organizations that employ a diverse set of leaders tend to be _____ profitable. (more/less)
more
Studies have shown that organizations that employ a diverse set of leaders tend to be ______ profitable.
more
Advantages of Partnerships
more financial resources, shared management and pooled/complementary skills and knowledge, longer survival, no special taxes
Laws and Regulations
most basic ethical and social responsibility concerns have been codified by laws and regulations; encourage businesses to confirm to society's standards, values, attitudes
Federal Trade Commission (FTC)
most influences business activities related to questionable practices that create disputes between businesses and their customers
When an international company customizes its product, promotion, and distribution according to cultural, technological, regional, and national differences, it is using a
multinational
a(n) _ corporation is an organization that manufactures and markets products in many different countries and had multinational stock ownership and management.
multinational
When an international company customizes its product, promotion, and distribution according to cultural, technological, regional, and national differences, it is using a
multinational strategy
Model Business Corporation Act recommends what should be added to a partnership agreement?
name of the business, names/addresses of all partners, purpose/nature of the business, location of offices/where business conducted, date partnership will start/how long will last, contributions made by each partner, management responsibilities, duties of each partner, salaries/drawing accounts of each partner, provisions for sharing profits, provision for accounting, requirements for new partners, special restrictions/rights/duties of any partner, provisions for retiring partner, provisiton for purchase of deceased or retiring partner's share, provision for grievances, provision for how to dissolve the partnership
the articles of incorporation
name, people who incorporated it, purposes, duration, number of shares that can be issues, voting rights, shareholder rights, minimum capital, address, name/address of person responsible/first directors, any other public info needed
Whistleblowers can be helped by protecting them from ______.
negative treatment on the job
sole proprietor ship
no documents needed to start, may need permit/license, easy to terminate/just pay debts and quit, terminates on death of owner, can be sold to quailified buyer, limited owner's capital/loans, unlimited liability, taxed as personal income, owner manages all areas of the business, usually fewer benefits/lower wages
Benefits of being a member of common market, or "trading bloc" include?
no internal tariffs
Disadvantages of LLC:
no stock<nontransferable>, limited lifespan, fewer incentives, taxes<pay self-employment taxes-MC/SS taxes paid by sole proprietors and partnerships-on their profits>, paperwork
Which type of corporation focuses on providing a service rather than earning a profit, but is not owned by a government entity?
not-for-profit corporation
Balance payments
of is the difference between the flow of money into and out of country
Balance trade
of is the difference in value between a nation's exports and its imports.
the shift of jobs from developed economies to low wage global markets called__? outsourcing has become a major issue.
offshore
every partnership must have at least ___ general partner.
one
According to the text, ethical decisions in an organization are influenced by (1) individual moral standards, (2) the influence of managers and co-workers, and (3) ______.
opportunity to engage in misconduct.
IMF (international monetary fund)
org. established in 1947 to promote trade among member nations by eliminating trade barriers and fostering financial corporation.
Acceptability of behavior determine by
organization
Many American firms______manufacturing or other tasks to countries where labor and supplies are less expensive.
outsource
many american firms _ manufacturing or other tasks to countries where labor and supplies are less expensive.
outsource
What term describes the situation when an American firm transfers manufacturing and other tasks to companies in countries where labor costs are less expensive?
outsourcing
Quasi-Public Corporation
owned and operated by the federal, state, or local government (ex: NASA)
Private Corporation
owned by just one or a few people who are closely involved in managing the business
A sole proprietorship often grows slowly because the _____ is the sole source of know-how and funding.
owner
All profits from a sole proprietorship belong exclusively to the ______.
owner
Domestic Corporation
participates in business in the state in which it is chartered
Foreign Corporation
participates in business outside of the state in which it is chartered
Alien Corporation
participates in business outside the nation in which it incorporated
Select ways an LLP deals with liability for partners:
partners are not held liable for each others' actions, liability is limited to losing only personal assets directly related to personal acts when a partner is sued individually for malpractice, it does not affect other partners.
A legal form of business with two or more owners is a(n) ______
partnership
A legal form of business with two or more owners is a(n) ______.
partnership
A legal form of business with two or more owners is a(n):
partnership
A limited liability company is taxed like a(n) _______.
partnership
A(n) is an association of two or more persons who carry on as co-owners of a business. (Enter one word in the blank.)
partnership
An association of two or more persons who carry on as co-owners of a business for profit is the definition of a(n)
partnership
general partnership
partnership agreement needed<oral/written>, may be hard to terminate<depends on agreement>, terminates on death/withdrawal of partner, must have other partner<s> agreement, limited to partners' capital/loans, unlimited liability, taxed as personal income, partners share management, fewer benefits/lower wages/promising employee could become partner
All of the following are advantages of partnerships, EXCEPT ______.
partnerships have unlimited liabilities for the debts incurred by the business
Sherman Antitrust Act
passed in 1890 to prevent businesses from restraining trade and monopolizing markets, condemns "every contract, combination, or conspiracy in restraint of trade."
A country with a trade surplus generally has a favorable balance of
payment because it is receiving more money from trade with foreign countries than it is paying out.
Bribes
payments, gifts, or special favors intended to influence the outcome of a decision
bribes
payments, gifts, or special favors intended to influence the outcome of a decision
Abusive behavior is difficult to assess and manage because ________.
people have very diverse cultures and lifestyles
When a corporation is separate from its owners and does not terminate with the death of one owner, the corporation has ______.
perpetual life
An individual's values, principles, and standards of conduct are referred to as ______.
personal ethics
An individual's values, principles, and standards of conduct are referred to as _______
personal ethics
An individuals values, principles, and standards of conduct are referred to as _________.
personal ethics
The partnership business entity is not taxed, because each partner pays tax on the business's profits as their ____
personal income
The partnership business entity is not taxed, because each partner pays tax on the business's profits as their ______.
personal income
What is the focus for future legislative efforts regarding business conducted on the internet?
personal private protection
For a firm to be considered a multinational corporation, it must have a _____.
physical presence in several different nations.
If an employee learned of a significant cost-saving idea from a coworker and then informed management of the idea without revealing its true source, then the employee would be involved in ______.
plagiarism
When employees copy the work or ideas of others and present it as his or her own this is called _______.
plagiarism
When employees copy the work or ideas of others and present it as his or her own this is called __________.
plagiarism
Trade restrictions imposed on international trade are an example of a _____ barrier.
political
Which of the following is an advantage of partnerships?
pooled financial resources
When companies follow the key factors of Corporate Social Responsibility, a _____ usually results, thus_____
positive public image, attracting more customers
Of the two types of stock, owners of ______________ stock receive preferential treatment regarding dividends.
preferred
This is a special type of stock whose owners, though not generally having a say in running the company, have a claim to profits before other stockholders do.
preferred
Which of the following is a special type of stock whose owners cannot vote regarding the running of the company, yet have a priority claims to profits?
preferred
There are many advantages to conducting business as a corporation. Which of the following is not an advantage of conducting business as a corporation?
pressure to improve
The Uruguay Round of GATT negotiations provided new rules to ______.
prevent dumping
The Uruguay Round of GATT negotiations, provided new rules to
prevent dumping
An agency relationship, the ______ is the one who wishes to have a specific task accomplished
principal
business ethics
principles and standards that determine acceptable conduct in business
A ___________ corporation is owned by just one or a few people who are closely involved in managing the business.
private
A(n) ______ is owned by just one or a few people who are closely involved in managing the business.
private corporation
Having a partner may share the risk, but it also means sharing _______________, because each partner must be rewarded for their participation in the business.
profit
Having a partner may share the risk, but it also means sharing ______ , because each partner must be rewarded for their participation in the business.
profit
A number of studies have found a direct relationship between social responsibility and _______ as well as a link that exists between employee commitment and customer loyalty.
profitability
A number of studies have found a direct relationship between social responsibility and_________as well as a link that exists between employee commitment and customer loyalty
profitability
Studies have found a direct link between social responsibility and _______ in business.
profitability
As an entity, cooperatives are not set up to make _____________.
profits
embargo
prohibition on trade in a particular product, these are generally directed specific goods or countries and may be established for political, economic, health, or religious reasons.
Clayton Act
prohibits price discrimination, tying and exclusive agreements, and the acquisition of stock in another corporation where the effect may be to substantially lessen competition or tend to create a monopoly
The Association of Southeast Asian Nations (ASEAN)
promotes trade and economic integration among member nations in Southeast Asia.
Real, personal, and intellectual property are all covered under ______ law when it comes to disputes about ownership and transfer.
property
Employees expect businesses to ______. (select all that apply)
provide a safe workplace keep them informed of what is happening in their company pay them adequately for their work
A _______ corporation is one whose stock anyone may buy, sell, or trade.
public
The foreign corrupt practices act of 1978 prohibits ____? payment to foreign officials to secure business contract.
questionable
a limit on the number of products in certain categories that a nation can import and is considered a form of trade protectionism
quota
a(n) _ is a limit on the number of products in certain categories that a nation can import and is considered a form of trade protectionism
quota
Protective tariffs are typically imposed on imports in order to protect domestically produced products by
raising the price of the imported products.
Which type of property consists of real estate and anything permanently attached to it ?
real property
International business
refers to the buying, selling, and trading of goods and services across national boundaries.
nation's balance of trade
refers to the difference in value between imports and exports.
business law
refers to the rules and regulations that govern the conduct of business
society
regardless of what an individual believes about a particular action, if ____ judges it to be unethical or wrong, whether correctly or not, that judgment directly affects the organization's ability to achieve its business goals
the most popular businesses for franchising are:
restaurants<fast food/full service>, gas stations<convenience stores>
The Sarbanes-Oxley Act was passed to help ______.
restore confidence in Corporate America
exchange controls
restrict the amount of currency that can be bought or sold, when foreign currency is in short supply, the gov. uses foreign currency to purchase necessities and capital goods and produces other products locally, limiting its need for foreign imports.
Quota
restriction on the number of units of a particular product that can be imported into a country.
Plagiarism
the act of taking someone else's work and presenting it as your own without mentioning the source
Land pollution
results from the dumping of residential and industrial waste, strip mining, forest fires, and poor forest conservation
land pollution
results from the dumping of residential and industrial waste, strip mining, forest fires, and poor forest conservation
Acid rain
results when certain chemical compounds emitted by manufacturing facilities react with air and rain
Water Pollution
results when the burial of industrial waste leeches into underground water supplies
A firm that is viewed negatively may have a hard time ______. (select all that apply)
retaining employees attracting investors building customer relationships
An advantage of a sole proprietorship is that the owner ______.
retains all profits
_______ of company profits is considered an advantage of a sole proprietorship.
retention
Which of the following is an advantage of a sole proprietorship?
retention of all profits
Partnerships have both advantages and disadvantages, which of the following was not a disadvantage or advantage addressed by the authors?
retention of profits, but when the partnership retains profits, the partners are still taxed on this money
Preemptive Right:
right to purchase new shares of common stock in the marketplace
OSHA regulates the ______ of employees in the workplace.
safety
OSHA regulates the _______ of employees in the workplace.
safety
Customer
safety; the right to safety, the right to be informed, the right to choose, and the right to be heard
In developing a partnership agreement, it is recommended that you:
seek legal advice
For the United States, importing involves the purchase of goods and services from foreign sources while exporting involves ______.
selling goods and services to foreign markets
open<public>corporation
sells stock to the general public. General motors and ExxonMobil are examples of public corporations.
what is the fastest growing franchised business?
senior care
disadvantages of operating a franchise:
shared profit, restrictions on selling, large start-up costs
To truly create an ethical culture, managers must ______.
show a strong commitment to ethics and compliance
To truly create an ethical culture, manager must _________.
show a strong commitment to ethics and compliance.
Corporations can raise large amounts of money, take advantage of economies of scale, and hire experts in all areas of operation. This can be summarized as ________ advantage.
size
when a company decides to do business outside its own country, it will encounter a number of barriers to international trade. Any firm considering international business must research the other country's economic, legal, political, _, and technological background
social
Built-right Manufacturing has a positive image in the community in which it operates. The company gives a percentage of its profits every year to support local charities and causes, its employees regularly volunteer within the community and it is committed to using sustainable manufacturing processes. The actions taken by Built-right manufacturing exemplify ______.
social responsibility
What do studies show about the relationship between social responsibility and profitability?
social responsibility is associated with improved business performance.
Regardless of what an individual believes about a particular action, if _____ judges it to be unethical or wrong, whether correctly or not, that judgment directly affects the organization's ability to achieve its business goals.
society
Regardless of what an individual believes about a particular action, if ______ judges it to be unethical or wrong, whether correctly or not, that judgement directly affects the organization's ability to achieve its business goals
society or the public
The hurdles to success are higher and more complex in global markets than in domestic markets. such hurdles include ___? forces, economic and financial forces, political legal and regulatory forces, and physical and environmental forces.
sociocultural Forces
After working for years at one of the big accounting firms, Joslyn has decided to go into business for herself. She has opened up her own accounting and tax preparation firm. While she is the only accountant right now, Joslyn hopes to hire more people in the future. Joslyn's business can be defined as a ______.
sole proprietorship
After working for years at one of the big accounting firms, Nadine has decided to go into business for herself. She has opened up her own accounting and tax preparation firm. While she is the only accountant right now, Nadine hopes to hire more people in the future. Nadine's business can be defined as a ______.
sole proprietorship
Of the following forms of business ownership, which is relatively easy and inexpensive to form?
sole proprietorship
The owner of a _______ has complete control over the business and can make decisions on the spot without anyone else's approval.
sole proprietorship
Studies have indicated that partnerships are four times more likely to succeed than:
sole proprietorships
In order to protect the brand name and image, the franchisor has tight management _________.
standards and controls
Society
the right to contributions for the betterment of society
A corporation is a _____-______ legal entity with authority to act and have liability separate from its owners.
state-chartered
Comparative advantage theory
states that a country should sell to other countries those products it produces most effectively and efficiently, and buy from other countries those products it cannot produce as effectively or efficiently
The Uniform Commercial Code is a set of ______
statutory laws covering several business laws topics
express warranty
stipulates the specific terms the seller will honor
Corporations issue shares of ____________ to shareholders and they can sell or trade them to other people without causing the termination of the corporation.
stock
Insider trading is the buying or selling of _____ by insiders who possess material that is still not public.
stock
Shareholders are not liable for the debts of a corporation beyond the money they invest in it by buying company _____________.
stock
The owner of a corporation is known as the _______
stockholders
Statements that are accurate as related to corporate taxation:
stockholders pay income tax on the dividends they receive, double taxation occurs
A __? is along term partnership between two or more companies established to help each company build competitive market advantages, although they do not share costs, profit, or management
strategic alliance
A ____ ____ is along-term partnership between two or more companies established to help each company build competitive market advantages, although they don't share costs, profits, or management.
strategic alliance
a(n) _ is a partnership formed to create competitive advantages on a worldwide basis.
strategic alliance
A company situated in a foreign country that is owned by a parent company located in a different country, is a foreign _____.
subsidiary
outsource
supplies less expensive
a trade _ is an economic measure of a positive balance of trade, where a country's exports exceeds its imports
surplus
Conducting activities in such a way to provide for the long-term well-being of the natural environment is referred to as______
sustainability
Two or more businesses or individuals may join together temporarily for many business reasons including to perform a specific task. If they join together to raise a large amount of capital for that specific task, what type of organization have they created?
syndicate
What association might be formed because no one person or firm is willing to put up the entire amount required for the undertaking of a project; for example, to underwrite a large insurance policy or investment?
syndicate
What are the two subsets of personal property?
tangible and intangible
A country may attempt to protect its own domestic industries by imposing a(n)____a type of tax, on imported products.
tariff
a __? is a tax imposed on imports. (one blank/one word)
tariff
a(n) _ is a tax imposed on imports.
tariffs
There are many disadvantages to creating a corporation and conducting business as a corporation. One of the disadvantages is double taxation. Which of the following best describes what is meant by double taxation?
taxation on profits when they are earned and taxation again as personal income of stockholders
One of the big differences between corporations and S corporations is how profits are:
taxed
attributes of a master limited partnership:
taxed like a partnership, acts like a corporation, traded on the stock exchange
Advances in the development of computers, cell phones, and access to broadband Internet in developing countries are examples of _____ advances that are creating global marketing opportunities.
technological
Hewlett Packard, Dell, and Lenovo are all companies that have been affected by competition stemming from ______ advances in developing countries.
technological
Advances in the development of computers, cell phones, and access to broadband Internet in developing countries are examples of______advances that are creating global marketing opportunities.
technology
Gathering leads on a company website, selling products and keeping up to date on news via email, and chat rooms all serve as examples of using ____ to assist franchisees and customers.
technology
What industry is globally trusted in business?
technology
Studying business ethics will not necessarily _______.
tell you what you ought to do
financial
the Dodd-Frank Act was passed to reform the ____ industry
Public corporations must file reports with ______, the government regulatory agency that regulates securities such as stocks and bonds.
the Securities and Exchange Commission
dumping
the act of a country or business selling products at less than what it costs to produce them
Dumping
the act of a country or business selling products at less than what it costs to produce them.
whistleblowing
the act of an employee exposing an employer's wrongdoing to outsiders, such as the media or government regulatory agencies
plagiarism
the act of taking someone else's work and presenting it as your own without mentioning the source
comparative advantage
the basis of the most international trade, when a country specializes in products that it can supply more efficiently or at a lower cost than it can produce other items.
Jacinta has high individual moral standards and values but the opportunity still exists for her to engage in misconduct in her company. Which of the following is a key factor in keeping Jacinta from behaving unethically?
the behavior of her manager's and co-workers.
water pollution
the burial of industrial waste that may leech into underground water supplies
Merger
the combination of two companies to form a new company - Merger Mania: explosion of mergers/acquisitions/LBOs in 1980s and 1990s
A country with a trade surplus generally has a favorable balance of payments, which means:
the country is receiving more money from trade with foreign countries than it is paying out.
trial court
the court (acting through the judge or a jury) must determine the facts of the case (if there is conflicting evidence, the judge or jury must decide who to believe) Second, the judge must decide which law or set of laws is pertinent to the case and must then apply those laws to resolve the dispute.
Balance of payments
the difference between money coming into a country (from exports) and money leaving the country (from imports) plus money flows coming into/leaving a country from other factors such as tourism, foreign aid, military expenditures, and foreign investments
balance of payments
the difference between the flow of money into and out of a country
balance of trade
the difference in value between a nation's exports and its imports
Jacinta has high individual moral standards and values but the opportunity still exists for her to engage in misconduct in her company. What key factor would keep Jacinta from behaving unethically?
the ethical behavior of her managers and co-workers
Corporate citizenship
the extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their stakeholders
breach of contract
the failure or refusal of a party to a contract to live up to his or her promises
The biggest disadvantage of a home-based franchise is ___________.
the feeling of isolation
Who accepts the loss in a limited partnership if the business fails?
the general partner.
contract manufacturing
the hiring of a foreign company to produce a specified volume of the initiating company's product to specification; the final product carriers the domestic firm's name.
According to your text, ethical decisions in organizations are influenced by which three key factors?
the influence of managers and co-workers the opportunity to engage in misconduct individual moral standards and values
According to your text, ethical decisions in organizations are influenced by which three key factors?
the influence of managers and co-workers; the opportunity to engage in misconduct; individual moral standards and values
contractual capacity
the legal ability to enter into a contract.
Jurisdiction
the legal power of a court, through a judge, to interpret and apply the law and make a binding decision in a particular case
Spending work hours looking at personal email, submitting personal expenses on company expense reports and using the company copier for personal use are all examples of ______.
the misuse of company resources
Spending work hours looking at personal email, submitting personal expenses on company expense reports and using the company copier for personal use are all examples of _______.
the misuse of company resources
Each corporate stockholder's financial liability is typically limited to
the money he or she paid for the corporation's stock
According to your text, ethical decisions in organizations are influenced by what three key factors?
the opportunity to engage in misconduct, individual moral standards and values, the influence of managers and co-workers
direct investment
the ownership of overseas facilities
Infrastructure
the physical facilities that support a county's economic activities, such as railroads or highways, schools, ect.
bribery
the practice of offering something (usually money) in order to gain an illicit advantage
Importing
the purchase of goods and services from foreign markets. 2011 U.S. imports= $2.6 trillion
importing
the purchase of goods and services from foreign sources
exchange rate
the ratio at which one nation's currency can be exchanged for another nation's currency
offshoring
the relocation of a business process by a company to another country
offshoring
the relocation of business processed by a company or subsidiary to another country. Offshoring is different than outsourcing because the company retains control of the offshored processes.
Offshoring is defined as ______.
the relocation of business processes by a company or subsidiary to another country
ROI
the right to a return on investment
Environment
the right to a sage environment and just compensation
A corporation is an artificial person created by law, with most of the legal rights of a real person. Which of the following is not a legal right held by a corporation?
the right to total privacy
exporting
the sale of goods and services to foreign markets
Exporting
the sale of goods and services to foreign markets. 2011 U.S. exports= $2.1 trillion
Joint venture
the sharing of the costs and operation of a business between a foreign company and a local partner
joint venture
the sharing of the costs and operation of a business between a foreign company and a local partner.
In a sole proprietorship, the possibility that competitors can obtain trade secrets is minimized because _______.
the sole proprietor does not have to discuss publicly his or her operating plans
equality, reciprocity, and optimization
the three fundamental elements that motivated people to be fair are ___.
outsourcing
the transfer or manufacturing or other tasks to companies in other countries where labor costs are lower
outsourcing
the transferring of manufacturing or other tasks--such as data processing --to countries where labor and supplies are less expensive
While unemployment is seen as an economic issue, it carries ethical implications when ______.
the unemployment gap between rich and poor is large
While unemployment is seen as an economic issue, it carries ethical implications when________
the unemployment gap between rich and poor is large
Which of the following is NOT usually stated in the articles of partnership?
the value of each partner's retirement accounts
Ending a partnership can be difficult because of problems deciding:
the worth of a retiring partner's share, how to distribute assets, how a partner can retire
_____is a common area of misconduct observed in the workplace
theft of time
Corporations have all the rights and privileges listed below EXCEPT ______.
their owners have unlimited liability
Studies have found that firms have a better chance of generating stronger profits when ______.
there are equal numbers of male and female managers
Which of the following statements about ethical issues is false?
they are are limited to for-profit organizations.
the countries represent by the acronym BRIC are important because ?
they are emerging countries that will be among the wealthiest by 2030
Many parties take part in the operation of a corporation. Which of the following describes the duties of corporate officers?
they help make plans, carry out strategies, hire employees, and manage day-to-day business activities
business ethics
this relates to an individual's or work group's decisions that society evaluates as right or wrong
Social Responsibility
this relates to the impact of an entire business's activities on society
What is the most common way businesses exercise their community responsibility?
through donations to charitable organizations?
When it comes to fairness and honesty, what two things are expected of businesses?
to follow applicable laws and regulations to avoid harming customers, employees, clients or competitors
What is the primary function of protective tariffs?
to raise the price of imported products so that domestic goods are more competitively priced
show a strong commitment to ethics and compliance
to truly create and ethical culture, managers must ____
If the driver of Quick Eats, a grocery delivery service, loses control of the car and damages property or injures a person when making a delivery, a resulting lawsuit would be an example of a
tort
balance of _ is the difference in value between a nation's exports and imports
trade
_ _ promote trade among member nations by eliminating or reducing barriers to trade.
trade agreement
NAFTA and the European Union are ______ that promote trade among member nations by eliminating tariffs and trade restrictions.
trade agreements
when the value of a country's imports is more than its exports, the country exhibits a(n):
trade deficit
What are some attributes of a master limited partnership?
traded on the stock exchange, acts like a corporation, taxed like a partnership
A(n) _____ buys goods in one country and sells them to buyers in another country.
trading company
A(n)_______buys goods in one country and sells them to buyers in another country.
trading company
The united states is the largest importing nation in the world ?
true
True or False: Ethical issues often emerge from conflict?
true
True or false: By linking sellers and buyers of goods in different countries, trading companies promote international trade among nations.
true
True or false: International business is the buying, selling, and trading of goods and services across national boundaries.
true
True or false: Maquiladoras are production facilities set up to take advantage of Mexico's low labor cost and proximity to the United States.
true
True or false: Some countries have strict laws limiting the amount of local currency that can be taken out of the country; while other countries limit how foreign companies can operate with the country.
true
True or false: Specialized professionals in fields like accounting are often hired by sole proprietors who lack knowledge in that area.
true
One of the most difficult things for a business to restore after an ethics scandal is _____.
trust
A key component of ethical communications from companies to consumers is that the communication be ______.
truthful
Which issue resulting from factory closures can be considered an ethical issue because of the repercussions it has on other businesses—mainly in the loss of sales?
unemployment
When each general partner is liable for the debts of the firm, no matter who was responsible for causing the debt, this is called ______ liability.
unlimited
A key disadvantage of a general partnership is:
unlimited liability
As a sole proprietor, Ellie enjoys many advantages. Which of the following is NOT one of them?
unlimited liability
Each general partner is liable for the debts of the firm, no matter who was responsible for causing them. You are liable for your partners' mistakes as well as your own. Like sole proprietors, general partners can lose their homes, cars, and everything else they own if the business loses a lawsuit or goes bankrupt.
unlimited liability
If your company debts or damages are solely your responsibility you could be experiencing the disadvantage associated with owning a sole proprietorship called:
unlimited liability
In a sole proprietorship, any debts or damages incurred by the business are your personal debts and you must pay them. This disadvantage is known as:
unlimited liability
In a sole proprietorship, any debts or damages incurred by the business that cannot be paid by the business are considered personal debts and the owner must pay them. This disadvantage can be termed _____.
unlimited liability
In a sole proprietorship, any debts or damages incurred by the business that cannot be paid by the business are your personal debts and you must pay them. This disadvantage is known as ______.
unlimited liability
The following is considered a disadvantage of a sole proprietorship?
unlimited liability
________ is a legal concept that holds a business owner personally responsible for all the debts of the business
unlimited liability
As a sole proprietor, Ellie enjoys many advantages. Which of the following is NOT one of them?
unlimited liability (disadvantage)
What are disadvantages of sole proprietorships?
unlimited liability, limited financial resources, management difficulties, overwhelming time commitment, few fringe benefits, limited growth, limited lifespan
Air pollution
usually the result of smoke and other pollutants emitted by manufacturing facilities
air pollution
usually the result of smoke and other pollutants emitted by manufacturing facilities
A merger between a soft drink company and an artificial sweetener maker could be considered a ___________ merger.
vertical
A merger that joins two companies involved in different but related levels of an industry is a(n) ______ merger
vertical
A merger that joins two companies involved in different but related levels of an industry is a(n) ______ merger.
vertical
When two firms operating in different stages of related businesses join, it is called ______ __________.
vertical merger
The joining of two companies involved in different but related levels of an industry is called a(n) _________ merger.
verticle
The International Monetary Fund
was established in 1947 to promote trade among member nations by eliminating trade barriers and fostering financial cooperation.
Match the description to the pollution term it represents. Water pollution Air pollution Acid rain Global warming Land pollution
water pollution- the burial of industrial waste that may leech into undergrounds water supplies Air pollution- usually the result of smoke and other pollutants emitted by manufacturing facilities Acid rain- Chemical compounds that react with air and rain Global warming- carbon dioxide in the earths atmosphere prevents the earth's surface from cooling Land pollution- results from the dumping of residential and industrial waste, strip mining, forest fires, and poor forest conservation
The North American Free Trade Agreement
went into effect in 1944 and effectively merged Canada, the United States, and Mexico into one market by: Making it easier for business to invest in the other member countries. Eliminating virtually all tariffs on good produced and traded among the three member nations. Providing intellectual property protections
Mergers and acquisitions have existed for a very long time; however, the reasons behind mergers and acquisitions has changed. Historically mergers and acquisitions
were made by companies desiring to expand their business by using the processes of the acquired companies to improve the acquiring company
Project Repat has a corporate charter. Which of the following would NOT likely be found in a corporate charter?
what each partners' duties will be
Funds available for a sole proprietorship are limited to ______.
what the owner can provide
Funds available for a sole proprietorship are limited to:
what the owner can provide
trade surplus
when a nation exports more than imports, it has a favorable balance of trade.
lawsuits
where one individual or organization takes another to court using civil laws
APEC
which was established in 1989, promotes open trade and economic and technical cooperation among 21 member nations and represents approximately 47% of world trade, and 60% of world GDP.
APEC
which was established in 1989, promotes open trade and economic and technical cooperation among 21 member nations representing 40% of the world's population, 44% of world trade, and 55% of world GDP.
Maribeth has first-hand knowledge that her supervisor is engaged in insider trading. At a minimum, this practice goes against company policy and may even be illegal so Maribeth reported her supervisor to the Securities and Exchange Commission. Maribeth is acting as a _____________.
whistelower
Maribeth has first-hand knowledge that her supervisor is engaged in insider trading. At a minimum, this practice goes against company policy and may even be illegal so Maribeth reported her supervisor to the Securities and Exchange Commission. Maribeth is acting as a ______.
whistleblower
Employees who report concerns about a unethical company practices to a government regulatory agency are called ______.
whistleblowers
In 2010, Congress passed the Dodd-Frank Act, which includes a bounty program to provide incentives for ______.
whistleblowers to come forward with information
The_____was established by the world's industrialized nations in 1946 to loan money to underdeveloped and developing countries.
world bank
Which organization, established in 1946, primarily serves to loan funds to underdeveloped and developing nations, where the funds are used to finance projects ranging from road and factory construction to the building of medical and educational facilities?
world bank
limited partnership
written agreement/must file certificate of limited partnership, may be hard to terminate<depends on agreement>, terminates on death/withdrawal of partner, must have other partner<s> agreement, limited to partners' capital/loans, limited liability, taxed as personal income, can't participate in management, fewer benefits/lower wages/promising employee could become partner
A key advantage of a sole proprietorship is that ______.
you have flexibility and control over the business