BUS 120 Final Exam Study Guide
_____ is an economic system based on private ownership, economic freedom, and fair competition.
Capitalism
In the context of various strategies for reaching global markets, which of the following strategies represents the deepest level of global involvement?
Direct investment
Which of the following strategies for reaching global markets allows firms to expand into foreign markets with little or no investment?
Foreign licensing
In a business, which of the following statements best describes profit?
It is the money that a business earns in sales, minus expenses.
In the context of fundamental principles of a free market system, which of the following statements is true of a demand curve?
It shows the relationship between price and quantity from a customer standpoint.
Which of the following is a feature of capitalism?
Private-sector businesses are free to make their own choices regarding what they will produce.
_____ is the obligation of a business to contribute to society. Ex: Companies that step in with on-site day care programs for workers facing challenges such as raising kids are fulfilling their
Social responsibility
The Federal Trade Commission:
actively promotes fair competitive practices.
In the context of a limited partnership, which of the following statements is true of general partners?
all partners take an active role in managing
In the context of social responsibility, stakeholders refer to:
any groups that have a personal interest in the performance and actions of an organization.
The United States goes through a period of recession because of the continuous decrease in the nation's gross domestic product. The Fed intervenes and improves the situation by reducing the discount rate. This move by the Fed will result in:
banks obtaining funds at a lower cost.
An advantage of a general partnership is that the:
business is taxed as the personal income of its owners.
One of the ways by which companies can show their responsibility toward the environment is by reducing their _____.
carbon footprint
In a sole proprietorship, any debts the company incurs are:
considered to be the owner's personal liabilities.
_____ is the rate of interest that the Federal Reserve charges when it loans funds to banks.
discount rate
Perggy's Bakes, a bakery in New Orleans that exclusively sells its confectionery products online, makes its products only when it receives an order. The bakery produces the products as per the order and delivers to the customer's homes. It does not produce any excess products. In the given scenario, the price associated with the demand and supply of the products at Perggy's Bakes reflects the _____.
equilibrium price
In the context of various strategies for reaching global markets, _____ is also referred to as contract manufacturing.
foreign outsourcing
A _____ is a licensing arrangement under which one party allows another party to use its name, trademark, patents, copyrights, business methods, and other property in exchange for monetary payments and other considerations.
franchise
_____ refers to developing and promoting environmentally sound products and practices to gain a competitive edge.
green marketing
_____ is the total value of all final goods and services produced within a nation's physical boundaries over a given period of time.
gross domestic product
A _____ is formed when two or more companies share resources, risks, and profits without actually merging, to pursue specific opportunities.
joint venture
In the context of the business cycle, _____ is an economic downturn marked by a decrease in the gross domestic product (GDP) for two consecutive quarters.
a recession
When a business brings in less money than it needs to cover expenses, it incurs a _____.
loss
The goal of nonverbal communication should be to:
reinforce the meaning of a message.
In the context of American culture, which of the following is one of the dos for better listening?
Use your extra mental capacity to summarize what the speaker is saying.