Business 101 Chapter Review

Which of the following statements best describes a corporate strategy?

A corporate strategy defines the business, market, or industry in which organizations will operate.

Which of the following is not an example of a data breach?

A coworker who is authorized to access information about customers sees customer records on your computer.

According to the Law of Supply, which of the following statements is true if we impose the ceteris paribus assumption?

An increase in the market price of pickles will result in an increase in the quantity of pickles supplied.

________ involves building analysis models and simulations to create scenarios, understand realities, and predict future states.

Business Analytics

Which of the following statements best explains the difference between data and information?

Companies collect data about customers, and information is data that has been analyzed and formatted for use by decision makers.

________ allows a company to access international markets by simply allowing a foreign company the ability to produce its product.

Contract manufacturing

Which of the following is the first step of Kotter's Eight Principles of Leading Change?

Create a sense of urgency

Which of the following is not an advantage of having online access to credit card accounts?

Customers can use their online accounts to have cash delivered to them.

Which of the following describes a centralized organizational structure?

Decisions are made at the top by a defined group of firm leaders.

To establish a strong organizational culture, organizational leaders should do which of the following?

Develop a set of core values

Both nonprofit and for-profit businesses exist in a market economy. Which of the following is not an example of a for-profit business?

Doctors Without Borders

Business analytics requires a company to collect data before deciding how to use it.

False

Businesses that do not make a profit will always be able to continue operations.

False

Companies only use the data that they collect about customers, because it is more reliable that the data customers provide.

False

Everyone within a country is better off if that country opens up to increased global trade.

False

Firms are not liable for the unethical actions of their employees in the workplace.

False

International trade only consists of trade in tangible manufactured products such as t-shirts and automobiles.

False

Only large companies like Walmart can afford to use clouds.

False

Suppose Vietnam has an absolute advantage in the production of all goods compared to its neighbor Laos. Because Vietnam is more productive in all areas, it is not in its best interest to enter into a trading relationship with Laos.

False

The largest share of GDP in the United States is government spending.

False

________ unemployment occurs because it takes time for workers to search for the jobs that best suit their tastes and job skills.

Frictional

Which of the following statements is true?

Globally, women are paid on average 85% of what men are paid.

________ are a special type of partnership between two or more companies in different countries that share many parts of the business, including technology, costs, profits, and risks.

International joint ventures

The three questions that are usually asked when addressing ethical scenarios are

Is it legal? Would I want to be treated that way? Would I want to hide this from others?

Which of the following statements about the security of devices connected to the Internet in homes is the most correct one?

It is necessary to secure the networks used in homes to ensure that only authorized users can access them.

Which of the following best describes a "race to the bottom" in reference to a pollution haven?

Manufacturing moves to the country with the fewest environmental regulations.

Which of the following statements best describes the impact of automation on jobs in the United States?

Nearly half of all workers perform jobs that are at risk of being automated.

Which of the following statements best describes the difference between nominal GDP and real GDP?

Nominal GDP is calculated using prices from the current year, while real GDP is adjusted for price changes from the base year.

Which of the following statements about ethical dilemmas is true?

People face ethical dilemmas, because the proper course of action is not always clearly defined.

Bolivia has no sea ports, and much of the country is located high in the Andes mountains. These factors create ______.

Physical barriers to trade

________ are limits on imports from a country.

Quotas

________ occurs when organizations expand into businesses related to their core business.

Related diversification

Suppose consumers consider goods C and D to be substitutes. If the price of good D decreases, ceteris paribus, which of the following will happen?

The demand curve for good C will shift to the left.

Because peanut butter and jelly are considered to be complementary consumption goods, if the price of peanut butter decreases, which of the following would we expect to occur?

The demand curve for jelly would shift to the right.

Suppose a company attempts to improve its financial performance by downsizing its operations. As a result of this downsizing, some of the company's employees lose their jobs. However, the company does become more profitable. Which of the following statements is true?

The employees who lost their jobs were harmed by the company's actions, and it is possible that other stakeholders were as well.

Which of the following statements about learning management systems is not true?

They are less useful for online courses than for face-to-face courses.

________ have lowered the trade barriers for some previously non-tradable products.

Trade alliances

Which of the following statements best describes the difference between transformational and transactional leaders?

Transformational leaders are characterized by charisma, while transactional leaders ensure tasks are completed.

A currency appreciates when its price increases in terms of another currency.

True

A firm's stakeholders can be harmed by the negative actions taken by the firm.

True

All employees in firms should be held equally accountable to following the company's ethical code.

True

Businesses provide goods and services. Consulting with an attorney about a legal issue is an example of a service.

True

If a marketing professional in Detroit was paid to prepare a set of promotion materials for her client (Volkswagen) in Germany, we would call that an export from the United States.

True

Increased access to data makes data breaches more likely.

True

Individuals or businesses located in the United States that import goods and services benefit from the appreciation of the dollar.

True

It has been predicted that the number of interconnected devices in the world will exceed 20 billion by the year 2020.

True

Offshoring provides a company with an opportunity to take advantage of lower labor costs in another country.

True

Safety or environmental regulations often serve as non-tariff barriers to trade.

True

Services such as haircuts or lawn care that require the consumer and producer to be in the same location are examples of non-tradable goods.

True

The action taken in response to an ethical scenario may be acceptable to one culture but not to another culture.

True

The action taken in response to an ethical scenario may be legal, but unethical.

True

The only current example of a centrally planned economy is North Korea.

True

To get one thing that you like, you often have to give up something else that you like. This is called a trade-off.

True

Which of the following is an example of a firm adding value to its stakeholders?

When Google develops stronger search optimization engines

If China and the United States have a trade dispute, they can take the dispute to the ________.

World Trade Organization

A Toyota is produced in the United States and sold in Canada. That Toyota would be considered

an imported good for Canada.

When the company that produces Peter Pan peanut butter acquires a peanut farm in Georgia, the company is using a ________ strategy.

backward vertical integration

The consumer price index is a measure of

changes in the cost of buying a market basket of goods and services purchased by a typical family over time.

In addition to their own hard drives, companies use ________ to store and analyze large volumes of data.

clouds

A firm's ________ is an important means of minimizing the uncertainty regarding the decisions that employees may encounter when faced with ethical dilemmas in the workplace.

code of ethics

To derive an ethics quotient for companies, Ethisphere considers factors that include

company reputation and leadership

Chris owns a lawn service in Tampa that only provides service to residential customers. The business is using a ________ strategy/

concentration

This type of unemployment occurs because of economic contractions and recessions.

cyclical

Suppose canned pineapple is considered to be an inferior good for Kim. If Kim's income increases, ceteris paribus, the:

demand curve for canned pineapple will shift to the left.

Immediately after the Brexit vote in June 2016, the value of the British pound fell from US$1.50 to US$1.33. In this example, the pound ________.

depreciated

When a firm sells premium goods at premium prices, the firm is engaging in a ________ strategy?

differentiation

Which of the following roles is considered one of Mintzberg's informational roles?

disseminator

A mission statement should be ____________.

flexible

A company in one country purchases a company in another country. The company that has been purchased is known as a ________.

foreign subsidiary

The way a choice is presented to customers is known as _____________.

framing

Businesses provide goods and services. Which of the following is an example of a service?

home cleaning

Corporate social responsibility refers to

how a company makes its profits and what its does with those profits.

Societies in which sensitivity and benevolence towards people are encouraged are likely to have higher levels of ________.

humane orientation

A(n) ________ course is delivered partially using the traditional face-to-face format with the remainder being delivered online.

hybrid

A positive incentive differs from a negative incentive in that a positive incentive ______________.

makes the choice more likely

The word _________ means to do a little more or a little less of something.

marginal

In societies such as Japan, fewer women hold few managerial positions and a large wage gap between men and women exists. Such societies are characterized by this Hofstede dimension:

masculinity

When compared with negative incentives, positive incentives are __________.

more likely to motivate change

In a stylized business cycle, an economic contraction is best described as a

negative change in GDP from an economic peak to a trough.

The highest-valued good or service that a business must give up when making a choice is known as ___________.

opportunity cost

If organizational leaders want the structure of their organization to be less rigid, less hierarchical, and more flexible, they should choose this type of organization.

organic

The price of organic milk on the market increased. As a result, a local farm started to produce more organic milk. The increase in the price on organic milk is a __________ for the local farm's decision to produce more organic milk.

positive incentive

The factors of production include all of the following except

profits

When people in some societies consider corruption acceptable due to the norms within their societies, they are applying ethical ________.

relativism

To establish a strong organizational culture, organizational leaders should:

seek input from employees

A(n)____________ is a person who stands to gain or lose by the decisions made by a business.

stakeholder

Economists lump measures of satisfaction, enjoyment, pleasure, etc., into the category ________.

tastes and preferences

Enron presents an example of a company in which:

the internal firm culture differed from the company's code of ethics.

According to Milton Friedman:

the only social responsibility of a business is to increase its profits so long as it stays within the rules of the game.

An ethical dilemma occurs when:

there is some ambiguity in determining which action to take when presented with an ethical scenario.