business 4

What is the maximum amount a business owner may borrow with a Small Business Administration microloan?

$50,000.00

True or false: The owner of a sole proprietorship is responsible for developing any fringe benefits they have.

TRUE

True or false: The principles of management are similar for a small neighborhood business and a giant global firm.

TRUE

True or false: To end a sole proprietorship, you simply stop operations.

TRUE

A corporation is a legal with authority to act and have liability separate from its owners.

entity

A LLC has the choice of taxation and can be taxed as a(n) or as a corporation.

individual

Home-based franchises have many advantages, such as:

low overhead expenses,relief from the stress of commuting

Since 1975 the United States has bought more goods from other nations than it has sold resulting in a:

trade deficit

The use of government regulations to limit the import of goods and services is called:

trade protectionism

When the value of a country's exports exceeds that of its imports, the country exhibits a(n):

trade surplus

Termination of a partnership is difficult without a(n) ______ agreement.

partnership

A partnership can spell out the requirements of terminating a partnership.

agreement

A benefit of free markets is that it

allows for open competition among companies.

Many corporate executives reported that they use social media to communicate their socially responsible activities to customers because it:

allows them to reach specific groups more directly,allows them to connect directly with customers,reaches broad and diverse groups

A unique government creation that looks like a corporation but is taxed like sole proprietorships and partnerships is:

an S corporation

According to recent U.S. Census Bureau research volunteerism is at an all time high, but

3 out of 4 citizens do not give any time to the communities in which they live

What is the \Executive Summary\" component of a business plan?"

A short description of the business along with major goals and objectives

What are two advantages of the corporate form of business?

Ability to raise more money for investment,Limited liability

What is the best definition of entrepreneurship?

Accepting the risk of starting and running a business

What two factors could be associated with small-business success?

Adequate financial planning,Managerial competence

Which two of the following are correct with regards to a free-market economy?

Another name for capitalism.,An economic system in which economic decisions are made by the market

Which of the following behaviors are illegal in the United States, but potentially put our companies at a disadvantage in overseas markets?

Bribery,Influence peddling

How did the 1990 Immigration Act encourage entrepreneurs to relocate to the United States?

By creating a category of investor visas

is a business's concern for the welfare of society.

C,S,R

The acronym for the U.S. free trade agreement with Costa Rica, the Dominican Republic, El Salvador, Guatemala, Nicaragua, and Honduras is .

CAFTA

The North American Free Trade Agreement (NAFTA) created a free-trade area among the United States, , and .

Canada,Mexico

Which section of the comprehensive business plan indicates the amount of capital needed to commence or continue operations, and describes how these funds are to be used?

Capital required

is the economic system that has led to wealth creation in much of the developed world.

Capitalism

The largest automobile market in the world is .

China

Which country is the world's largest exporter and second largest economy?

China

Which of these are advantages of a limited liability companies?

Choice of taxation,Limited liability,Flexible ownership rules

A good business plan is between 25 and 50 pages long and takes many months to write. A comprehensive business plan will include which three items?

Company background,Executive summary,Cover letter

theory states that a country should sell to other countries those products it produces most efficiently and import those it doesn't.

Comparative,Advantage

- ethics codes emphasize preventing unlawful behavior by increasing control and penalizing wrongdoers. - ethics codes define an organization's guiding values, create an environment that supports ethically sound behavior, and stresses shared accountability.

Compliance,based,Integrity,based

Which set of ethics codes emphasizes preventing unlawful behavior by increasing control and penalizing wrongdoers?

Compliance-based ethics codes

In what way will globalization impact U.S. businesses?

Concerns for product safety,Increased competition ,Loss of jobs in manufacturing

The laws of which two states make the process of incorporation easier than it is in other states?

Delaware,Nevada

Match the goals with the type of business person.

Desire to grow the business and generate wealth.,Desire to remain small and balance lifestyle with work.

lowers the value of a nation's currency relative to others.

Devaluation

Which of the following are examples of outside stakeholders that must be told about a company's ethics program?

Distributors,Customers,Suppliers

Select the characteristics of an entrepreneurial team that will be developing and marketing a new product.

Each from different areas of business,Members have complementary skills and are creative,A group of experienced people

Select the reasons why size is an advantage of the corporation.

Easier to raise funds to build modern facilities,Easier to raise capital to acquire the latest equipment,Easier to attract experts for hire

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

Which of the following are considered major hurdles to successful global trade?

Economic and financial forces,Legal and regulatory forces

zones are specific geographic areas to which governments attract private business investment by offering lower taxes and other government support.

Empowerment

What are some of the advantages of franchising?

Financial advice,Recognized name,Lower failure rate

There are a few hurdles that prevent many small businesses from engaging in the global market. Which of the following are examples of such problems?

Financing is often difficult to find.,Would-be exporters do not know how to get started.

is the buying of permanent property and businesses in foreign nations. (Enter one word in each blank.)

Foreign,Direct,Investment

Three major U.S. economic indicators are:

GDP,price indexes,the unemployment rate

What motivated the unethical behavior of real estate agents, lenders, and borrowers that led to the financial crisis of 2008?

Greed

What is the total value of final goods and services produced in a country in a given year called?

Gross domestic product

Which of the following are functions of export assistance centers (EACs)?

Hands-on exporting assistance,Trade-finance support

Which of following are true about the advantages and disadvantages of being a franchise owner

Having a nationally recognized name for your business in a franchise can help with marketing and awareness,While the upfront costs of a franchise may be steep, a franchise has a better chance of succeeding than starting a business from scratch

Which are considered disadvantages of incorporating?

Initial Cost,Extensive paperwork,Double Taxation

Which of the following characteristics are needed to become a successful entrepreneur?

Initiative,Tolerant of uncertainty,Action-oriented

trading is using knowledge or information that individuals gain through their position that allows them to benefit unfairly from fluctuations in security prices.

Insider

Which set of ethics codes defines an organization's guiding values, creates an environment that supports ethically sound behavior, and stresses shared accountability?

Integrity-based ethics codes

Blank______ are creative people who work as entrepreneurs within corporations.

Intrapreneurs

are creative people who work as entrepreneurs within corporations.

Intrapreneurs

A company similar to an S corporation but without the special eligibility requirements is an:

LLC

______ make business people more accountable for their actions than knowing what is ethical.

Laws

Problems created by differences between countries' antitrust rules, labor laws, patents, copyrights, taxes, product liability, and child labor laws relate to which forces in the global business environment?

Legal and regulatory forces

What is the global strategy in which a firm allows a foreign company to produce its product in exchange for a fee?

Licensing

When it comes to getting involved in international business what are the three strategies that require the least amount of commitment and effort?

Licensing, exporting, franchising

Which is an advantage of the corporate form of business ownership?

Limited liability

What are the advantages of the LLC form of organization?

Limited liability,Flexible ownership rules,Choice of taxation

Which section of a business plan provides a comprehensive demographic analysis of consumers in the area of the proposed business as well as a traffic-pattern analysis and vehicular and pedestrian counts?

Location Analysis

At what point is it most important to make your marketing decisions?

Long before you introduce a product or open a store

Which of the following is considered to be a disadvantage of offshore outsourcing for the United States?

Loss of jobs in the United States

Who sets the standards of right and wrong as defined by ethics?

Society

Customers as watchdogs can negatively affect a companies profits.

TRUE

True or false: A disadvantage of a sole proprietorship is limited financial resources.

TRUE

True or false: An entrepreneur must be resilient and responsible for success or failure.

TRUE

Which of the following are important reasons to do business globally?

There are many potential customers in other countries,There are more people and countries in the world markets

Which statements regarding entrepreneurs are true?

They are self-disciplined.,They are thoroughly comfortable being their own boss.

Which statement is true regarding entrepreneurs?

They have job-creating powers.

Venture capitalists try to safeguard their investment by taking some control over the business. What could happen if a venture capitalist takes too large a stake in your company?

You could lose control of the business.

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:

a common market

A franchise owner will experience the coattail effect when:

a fellow franchisee does something that has an impact on growth and profitability

The system in which the value of a currency is fixed by supply and demand is

a floating exchange rate

Because owners are only responsible for losses up to the amount they have invested in a corporation, limited liability is considered:

a major advantage

All consumers with unsatisfied wants and needs who have both resources and the willingness to buy are:

a market

A systematic evaluation of an organization's progress toward implementing socially responsible and responsive programs is called:

a social audit

The United States has spent more money on imports than it has made by exporting. Accordingly, the United States experiences:

a trade deficit

When the value of a country's imports is more than its exports, the country exhibits:

a trade deficit

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.

absolute

The advantage that exists when a country has a monopoly on producing a specific product is called:

absolute advantage

Job seekers should recognize that small businesses in the U.S.

account for about 1/3 of the total U.S. exports

Some of the services that incubators provide entrepreneurs to help stimulate their growth are:

accounting services,legal services,secretarial services

To keep track of daily sales, expenses, profits, inventory control, customer records, and payroll a small business needs a good

accounting system

One company's purchase of the property and obligations of another is called a(n):

acquisition

By making socially conscious decisions about whether or not to buy a company's products, customers are:

acting as watchdogs,affecting a company's sales

When the government spends money on such projects as roads and bridges, it is expected that the money will trickle down to the consumers eventually leading to:

an increase in consumer spending

Understanding where to locate your business, who your target market is, and how to reach them, can be accomplished through

an inexpensive market research study

question

answers

Selling shares of stock to anyone allows a _________ to raise more money to grow.

corporation

LLCs can be taxed as or , which allows the business owners to choose their method of taxation.

corporations,partnerships

When prices are declining, is occurring.

deflation

People who are successful have job-creating powers.

entrepreneurs

The supply concept refers to the relationship between the quantity of products produced and price. If the market price of a product increases, quantity supplied will Blank______.

increase

The expansion and development of the Internet has sprouted a world of small web-based businesses. This, among other reasons, may explain why online sales are rapidly:

increasing

One advantage of a partnership is that:

it is easier to raise money

Stockholders' liability for losses only up to the amount they invest is called ______________.

limited liability

The form of business ownership called _______ protects the person's personal assets from the debts of the business.

limited liability

When the continued operation of the business is dependent on the life of the business owner, it is referred to as:

limited life span

In recent decades, most capitalist countries like the United States have moved toward socialism. Communist countries like China have moved toward capitalism. In other words the trend is to move toward economies.

mixed

Most countries today are trending toward economies.

mixed

When some allocation of resources is made by the market and some is made by the government an economy is said to be a(n) economy.

mixed

In recent decades, most capitalist countries have added social programs while communist countries have reformed and permitted such liberties as the right to own private property. These developments are an example of the trend toward:

mixed economies

The Federal Reserve Bank manages the money supply and interest rates in an effort to balance the economy. This is referred to as policy.

monetary

The management of the money supply and raising and lowering interest rates by the Federal Reserve Bank is called policy.

monetary

Monetary policy consists of the Federal Reserve's management of the:

money supply,interest rates

A(n) ______ corporation is an organization that manufactures and markets its products in many different countries and has managers and stockholders from many countries.

multinational

The sum of government deficits over time is called the:

national debt

The refers to the sum of government deficits over time.

national,debt

Benefits of being a member of a common market, or \trading bloc\" include:"

no internal tariffs

A common market, also called a trading bloc, is a regional group of countries with:

no internal tariffs,a common external tariff

What are three threats to the future of global trade?

nuclear proliferation,rogue states,terrorism

Amy wants to start a business but is concerned with starting from scratch without much business experience. To alleviate her concern Amy could

obtain a franchise

Ethical problems such as influence peddling and bribery:

occur in many countries

The emergence of the green movement has affected businesses by

offering consumers more product choices

Perfect competition, monopolistic competition, , and monopoly are the four degrees of competition. (Enter one word in the blank.)

oligopolies

A small business is defined as:

one that is independently owned and operated,one that meets certain standards of size in terms of employees or receipts,one that is not dominant in its field

A key advantage of a home-based franchise is low costs, which can be ongoing. These are the costs associated with rent, utilities, and other fixed costs.

operating

Two advantages small firms have over large firms include more personal customer service and the ability to respond quickly to Blank______.

opportunities

When implementing an ethics code, it is important to share it with all because pressure to act unethically often comes from the outside.

outsiders

U.S. workers will see increased competition from other countries in the future due to:

outsourcing to foreign countries

Select those items considered fringe benefits that people working for a company are likely to receive, but a sole proprietor has to develop on his own:

paid health insurance,a pension plan,paid sick or vacation leave time

A foreign subsidiary is a company owned in a foreign country by a(n) ______ company.

parent

A foreign subsidiary is a company owned in a foreign country by another company called the:

parent company

A disadvantage of franchises is that most demand a from the franchisee for the right to start the franchise.

payment

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.

payment

The balance of is the difference between the flow of money into and out of a country. (Remember to type only one word in the blank.)

payment

The degree of competition where there are many sellers of identical products in a market is called:

perfect competition

What are the four different degrees of competition within free markets?

perfect competition,monopolies,monopolistic competition,oligopolies

Foundations, universities, and other nonprofit organizations own shares in publicly held companies, whose value is dependent directly upon the ______ of those companies.

performance

When a corporation is separate from its owners and does not terminate with the death of one owner, the corporation has:

perpetual life

Having means that a corporation's existence will not terminate if one or more owners die.

perpetual,life

The most common source of funding for small businesses after friends and family is savings.

personal

Limited liability is considered an advantage of forming an LLC because:

personal assets are protected

Even small companies participate in _______ through donations and volunteer support of local causes and national charities, such as the Red Cross and the United Way.

philanthropy

For a firm to be considered a multinational corporation, it must have a(n)

physical presence in several different nations.

Using information from the internet or other sources without giving credit to the author is:

plagiarism

Although there are many functions that are important in both the start-up and management phases of the business, what two functions are considered to be primary concerns?

planning and financing

Primary concerns when starting a business are and .

planning,capital

A good lawyer for a small business does not have to be expensive. Several prepaid legal offer documents and other services for a small annual fee.

plans

Measuring levels of inflation, deflation, disinflation, and stagflation are greatly facilitated by the use of indexes.

price

One of the most damaging economic phenomena is a sustained high rate of inflation. That is why economists and the Federal Reserve closely watch:

price indexes

Taking a firm is when a corporation decides to maintain, or in some cases regain, control of a firm internally by obtaining all of the stock.

private

Gross Domestic Product refers to the total value of goods and services produced in a country in a given year. The goods and services can be:

produced by domestically owned companies,produced by foreign owned companies located in the country

In perfect competition:

products appear to be identical,there are many sellers

Select reasons why people become entrepreneurs.

profit,independence,opportunity

Flexible distribution of profits and losses is considered an advantage of an LLC because:

profits/losses do not have to be distributed in proportion to the money each person invests

The quantity of products that people are willing to at different prices at a specific time describes the demand curve.

purchase

When there are many sellers in a market and none are large enough to control the price of a product, then competition exists.

pure

The United States, which has a very capitalistic economy, has introduced social welfare programs such as social security. China, which is a Communist country, has adopted many capitalist practices. One can conclude that:

pure communist or capitalist countries rarely exist today

Productivity in the service sector is difficult to measure because new technology adds to , but not necessarily the of the service produced.

quality,productivity

Stockholders are from the managers and employees of the firm because they are not actively involved in the operations of the firm.

separated

Shareholders are not liable for the debts of a corporation beyond the money they invest in it by buying company .

shares

Through flexible distribution of profits and losses, LLC members agree on the of profits/losses to be distributed to each member.

shares

Kayla wanted to open her own dress design business. She spent a few hours putting together a marketing plan, then selected an award-winning dress she designed and wore it to the meeting with the bank. The most likely reason she did not receive a loan was Blank______.

she did not develop a thorough business plan

To truly create an ethical culture, managers must:

show strong commitment to ethics and compliance

Enforcement in a timely manner is the and most critical step in the development of an ethics code program.

sixth

Venture capitalists may ask for a large stake in your small business - as much as percent which could cause you to lose control of the business.

sixty

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

Factors like the customer needing a lot of personal attention, the product not being easily made, and sales not being large enough to appeal to a larger firm all create opportunities for business success.

small

Job seekers who want to work in global business should recognize that businesses account for about 1/3 of the U.S. exports.

small

The SBA defines a business as one that is independently owned and operated, is not dominant in its field of operation, and meets certain standards of size in terms of employees or annual receipts.

small

The easiest type of business entity to form is a

sole proprietorship

Studies have indicated that partnerships are four times more likely to succeed than:

sole proprietorships

What are two reasons that franchises are attractive to minority populations?

some offer financial support to aspiring business owners,they provide personal ownership of a business

Select the characteristics of an intrapreneur.

someone who uses company's resources to launch new products,he or she generates profits by leveraging a firm's human financial and physical resources.,a creative person who works within a corporation

If prices continue to rise as the economy is slowing, then is occurring.

stagflation

Unlike inflation where prices rise even if the economy is not slowing down, the situation when the economy is in fact slowing but prices are going up is called:

stagflation

A business person concerned about high costs should not invest in a franchise which is associated with this disadvantage.

starting

Entrepreneurs often come up with an idea for a new business and need financing. At this stage, it is important to develop a business , which forces potential small-business owners to be quite specific about the products or services they intend to offer (answer is one word).

strategy

Studies have found a _____ correlation between academic dishonesty and dishonesty at work.

strong

Mary worked for a GM factory in Detroit all her life. Unfortunately, when GM closed the plant because of restructuring, she could not find any jobs in the automotive industry in or around Detroit. Mary would be counted as an example of:

structural unemployment

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

Global trade with 7.7 billion potential customers is attractive, but the threats to trading globally include

terrorism,income inequality,rogue states

What is an important quality for entrepreneurs to possess?

the ability to tolerate uncertainty

Eduardo owns a farm in a country where taxes are very high and where the government openly considers the possibility of taking over the agricultural sector. Eduardo stopped investing in his farm and only works enough hours to be able to grow the food necessary for him and his family. Eduardo's behavior demonstrates that:

the freedom to own property and keep the profits from work is necessary to the survival of an economy

In an economic and political system called communism:

the government owns almost all the factors of production

The level of productivity is important to businesses because:

the higher it is, the lower the cost of producing goods and services

According to Adam Smith, as long as farmers, laborers, and businesspeople received economic reward for their efforts, they would work hard. As a result of this self-directed desire to gain, the economy would prosper and everyone would become wealthier. Smith called this process:

the invisible hand

Small businesses may be reluctant to trade internationally because

the large amount of bureaucratic paperwork can be overwhelming,they may not understand the cultural and marketing differences in other countries

In a free market system, decisions about what and how much is produced are made by

the market consisting of buyers and sellers.

What four items are addressed in a business plan?

the nature of the business,the target market,any competitive advantages the business has,qualifications of owners

The SBA microloan program awards loans based on belief in the borrowers' integrity and Blank______.

the soundness of their business idea

A business plan is a detailed written statement that describes:

the target market,the resources and qualifications of its owner(s)

Corporate social responsibility is a business's concern for:

the welfare of society

If the statement \ethics is caught more than it is taught\" is true

then management facilitates this by:" setting a good example

Many franchises are expanding internationally because:

there are large new markets available

If the price of the goods and services in the Consumer Price Index are increasing too rapidly, it means:

there is a strong chance that inflation is occurring,consumers can buy less for their dollars

What are two characteristics of businesses that practice corporate social responsibility?

they care about being fair and honest with their stakeholders,they care for the welfare of society as a whole

Which SEC regulation regarding insider trading stipulates \if companies tell anyone

they must tell everyone\"?" Regulation FD

Learning from others is a useful way to avoid pitfalls when starting a small business. Some things you may be told would include:

to hire a good lawyer and accountant,that finding and retaining good workers is hard,starting with enough money

Some common causes of small business failure include:

underpricing or overpricing goods or services,no experience in that business or industry,starting with too little capital

Daniel wanted to start his own small business. After spending his own money on marketing research, Daniel asked his friend Chase to be his accountant. They spent a few months writing a business plan, which then they presented to a bank. Daniel:

understands the steps needed to start a small business

When two firms operating in different stages of related businesses join, it is called a(n) merger.

vertical

The firms often better prepared to leap into global markets and react quickly to opportunities are:

small and medium businesses

A business that is independently owned and operated, is not dominant in its field of operation, and meets certain standards of size in terms of employees or annual receipts is a(n):

small business

What is the political and economic system in which the government makes almost all economic decisions and owns almost all the major factors of production, as well as choosing religion, where to live, and jobs for its citizens?

Communism

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.

The monthly statistic that measures the pace of inflation or deflation is called the:

Consumer Price Index

Identify which of the following would classify as Internet plagiarism.

Copying full article content from Internet sites and presenting it as your own,Cutting and pasting information from a website without giving proper credit,Buying research papers online and submitting them as your own

Which of the following are some reasons for the growth of home-based businesses?

Corporate downsizing,Tax laws that allow home office deductions,Computer technology

What are some of the disadvantages of a corporation?

Cost of forming a corporation,Double taxation

Which of the following countries are members of the Central American Free Trade Agreement (CAFTA)?

Costa Rica,Nicaragua,Guatemala,Honduras

Which part of the business plan summarizes the most attractive points of your project in as few words as possible?

Cover letter

Blank______ of the ethics code in a timely manner is the most forceful way to communicate its importance.

Enforcement

______ are specific geographic areas to which governments attract private business investment by offering lower taxes and other government support.

Enterprise zones

must be emotionally, mentally, and physically able to work long and hard. However, they mostly seek achievement rather than power and are self-motivated.

Entrepreneurs

Blank______ refers to accepting the risk of starting and running a business.

Entrepreneurship

Which type of advocacy group applies pressure by naming companies that do not abide by environmental standards?

Environmentalists

Which watchdog group would be most likely to directly engage companies who do not make efforts to be environmentally responsible?

Environmentalists

are the activists who apply pressure by publicly naming companies that pollute the air and water.

Environmentalists

Regarding ethics in business, which of the following is generally true?

Ethics are based on character and observation of a company's managers. ,Employees behave ethically if management models ethical behavior

Blank______ guide peoples' decisions about how to treat one another in an honest and responsible way, whereas Blank______ are narrower and protect us from fraud, theft, and violence.

Ethics; laws

What section of a business plan is intended to catch the readers interest quickly and convince them to read it further and not throw it away?

Executive Summary

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?

Export bicycles to retailers in Australia,Create an online sales site that ships globally,Import materials from Germany

In the long run, unethical activities will successfully add to the bottom line of their companies.

FALSE

One of the perks of being an entrepreneur is that it takes less energy and you often have to work less hours.

FALSE

The coattail effect in franchising means that you will do well as long as other franchises are doing well, even if your particular franchise is not profitable.

FALSE

True or false: A protective tariff is designed to raise money for the government.

FALSE

True or false: A quota is a tax placed on imports.

FALSE

True or false: A trade deficit occurs when the value of Germany's exports is greater than its imports.

FALSE

True or false: Addressing the cover letter on your business plan \To whom it may concern\" is considered preferable."

FALSE

True or false: Bribery is a business practice unanimously held as an ethical violation across the globe.

FALSE

True or false: Devaluation is the value of one nation's currency relative to the currencies of other countries.

FALSE

True or false: If more entrepreneurs can be encouraged to start businesses in the United States, fewer jobs will be created in the economy.

FALSE

True or false: If producers, consumers, or workers with similar needs pool their resources for mutual gain, they have created a franchise.

FALSE

True or false: If you and a friend start a business together, you have started a sole proprietorship.

FALSE

True or false: In a limited partnership, the liability of the limited partners is unlimited and personal assets are at risk.

FALSE

True or false: Licensing is a contractual agreement whereby someone with a good idea for a business sells others the rights to use the business name to sell a product or service in a given territory in a specified manner.

FALSE

True or false: Non-profit organizations are not affected by the behavior of their funding organizations as long as they continue to receive the money they need to continue their operations.

FALSE

True or false: Partnerships are less likely to survive than sole proprietorships.

FALSE

True or false: Social responsibility and ethical problems exist primarily in the U.S. because we have more laws about those problems.

FALSE

True or false: Starbucks Coffee only buys its product supply from fair trade companies to insure coffee farmers in foreign countries are not being exploited. This is a form of corporate philanthropy.

FALSE

True or false: The SBA microloan demonstration program analyzes a small-business owners' credit history very carefully.

FALSE

True or false: The buying of permanent property and businesses in foreign nations is called a strategic alliance.

FALSE

Trust and cooperation between workers and managers must be based on which of the following?

Fairness,Honesty,Moral integrity

Which of the following are true regarding ethical behavior?

It does not subtract from the bottom line; it adds to it.

Small companies started by entrepreneurs may grow into large corporations that employ thousands of people. Match the entrepreneurs below with the corporations they developed.

Jeff Bezos,David McConnell,George Eastman,Mark Zuckerberg,Howard Schultz

The most important things investors want to know are what makes the product more desirable than what's already available and whether or not the product can be patented. In which section of the business plan should investors look to find this information?

Marketing plan

Blank______ are entrepreneurs willing to accept the risk of starting and managing a business that remains small, lets them do the kind of work they want to do, and offers them a balanced lifestyle.

Micropreneurs

Blank______ want to maintain a balanced life style while doing the kind of work they want to do.

Micropreneurs

do not have the goal of growing their businesses into large corporations but rather desire to maintain a balanced lifestyle while doing the kind of work they want to do. Most commonly these people own home or web-based businesses.

Micropreneurs

Which of the following would be unethical in a business setting?

Misleading a customer so s/he will sign a contract.,Secretly extending a customer's contract without permission.,Hanging up on a customer to prevent the person from canceling a service.

Select all advantages of the partnership form of business.

More financial resources,Pooled skills,Longer survival

A widely debated issue of the early 1990s was the ratification of the __ __ __ __ Agreement, which created a free-trade area among the United States, Mexico, and Canada.

North American Free Trade

What agreement created a free-trade area among the United States, Canada, and Mexico?

North American Free Trade Agreement (NAFTA)

Primitive transportation and storage systems that make local distribution ineffective if not impossible, the lack of clean water, and the lack of effective sewer systems are all examples of what type of barrier?

Physical and environmental

Distribution in many developing countries is difficult because of the lack of reliable transportation infrastructure due to natural disasters. This is an example of what type of forces affecting global trade?

Physical and environmental forces

Managers address many activities including planning, financing, marketing, human resource development, and record keeping. Of these functions, which two are of a primary concern when starting a business?

Planning and financing

Chris spent his own money on marketing research, and consulted his sister Kara, who is an accountant. They spent the next few months writing a business plan. Which of the following are some business functions Chris would have addressed?

Planning,Financing,Marketing

Blank______ help gauge the health of the economy by measuring the levels of inflation, disinflation, deflation, and stagflation.

Price indexes

Wayne is starting a small business, but needs help with management training, financial advice, and loans. He should contact the .

S,B,A

What are some of the disadvantages of operating a franchise?

Shared profit,Large start-up costs,Management regulation

The U.S. government agency that advises and assists small businesses by providing management training and financial advice and loans is called the:

Small Business Administration

True or false: The owner of McDonald's, Ray Kroc, turned to his business associates - his suppliers - for funds to keep the business going.

TRUE

There are many advantages small businesses have when engaging in international trade. What are two examples of such advantages?

Small companies can give customers personal service and undivided attention.,Overseas buyers often enjoy dealing with individuals rather than with large corporate bureaucracies.

and sized businesses are often better prepared for the global market because they are able to react more quickly to opportunities.

Small,medium-sized

Which of the following are considered to be a major hurdle to successful global trade?

Sociocultural differences

Which is the easiest form of business to start up?

Sole proprietorship

Which of the following are examples of how U.S. companies try to influence overseas suppliers to act according to our ethics?

Starbucks buying only fair-trade coffee from overseas suppliers.,Companies choosing not to do business with unethical overseas suppliers.,Refusing to buy goods produced by prison labor

In free markets the price of a product depends on how much consumers are willing and able to buy and how much the producers are willing and able to sell. What does the market price depend on in a free market?

Supply and demand

True or false: Corporate Social Responsibility (CSR) and corporate profits can at times go hand in hand.

TRUE

True or false: Individuals have social responsibilities regarding their ethical behavior in the business world.

TRUE

True or false: Many investors believe that by choosing to put their money into companies whose goods and services benefit society, they can improve society's financial health as well as their own.

TRUE

True or false: Most entrepreneurs do not get their ideas from a flash of inspiration; they come more from their passions or looking at problems.

TRUE

True or false: Personal savings, venture capitalists, and government agencies such as the Small Business Administration (SBA) are possible sources of capital or information when starting a small business.

TRUE

True or false: The main advantage of a sole proprietorship is ease of start up.

TRUE

True or false: The most important thing investors want to know about in the Marketing Plan portion of the business plan, is what makes the product (or service) more competitive than what already exists.

TRUE

While your are still your own boss as a franchise owner, your territory or selling boundaries may be regulated by the franchisor.

TRUE

Whistleblowers are often concerned about retaliation.

TRUE

What happens if a borrower takes out a loan from a community development financial institution (CDFI) and fails to repay the loan?

The CDFI takes the hit and is stuck with the defaulted loan.

How do the U.S. standards for ethics and social responsibility compare to those in less-developed countries?

The U.S. standards are stricter than those in less-developed countries.

Mediating trade disputes among nations and overseeing cross-border trade issues and global business practices are functions of:

The World Trade Organization (WTO)

Which of the following are true regarding the process of forming a corporation?

The bylaws of the corporation describe how the firm is to be operated,The articles of incorporation are usually filed in the state in which the company will be incorporated

What factor increases the chances of success of a small business over a large one?

The customer requires a lot of personal attention

Select all attributes that make the initial cost of incorporating a disadvantage.

The high cost of hiring lawyers and accountants for the complex filings needed,High start-up costs associated with documentation

Which of the following are disadvantages of international joint ventures?

The joint venture may become too large and inflexible,Shared technology may become obsolete

What is the definition of trade protectionism?

The use of government regulations to limit the import of goods and services

In which three ways are taxes used to influence the economy?

They are used to stabilize the economy.,High taxes draw the money away from the private sector.,Low taxes increase the profits a small business can earn.

Which of the following are true regarding micropreneurs?

They do not want to grow their businesses into large corporations.,They are interested in maintaining a balanced life style.

What are two characteristics of mixed economies?

They exist when the distribution of resources involves elements from more than one economic system.,They contain elements of more than one system.

How are U.S. companies likely to pressure foreign companies to change their standards of ethics and social responsibility?

They may choose to cancel orders when there are environmental abuses.,They may choose to cancel orders when there are human rights abuses.

Which of the following is true regarding businesses with low failure rates, such as veterinary services, dental practices, and medical practices?

They often require advanced training to start.,They do not tend to produce much growth.

Which of the following are true of entrepreneurs?

They tolerate uncertainty well,They will take calculated risks

Which of the following are reasons a business should be managed ethically?

To maintain a good reputation,To attract customers ,To avoid lawsuits

Which of the following are functions of the World Trade Organization?

To oversee cross-border trade issues,To mediate trade disputes among nations

What is the function of revenue tariffs?

To raise money for the government

What is the primary function of protective tariffs?

To raise the price of imported products so that domestic goods are more competitively priced

Which of the following facts best exemplifies the statement that \ethical problems are not unique to the United States\"?"

Top leaders from other countries have been charged with bribery.

Examples of how ethical standards differ among countries and cultures include

U.S. executives who complain that their businesses are at a competitive disadvantage when bidding against non-U.S. companies, since foreign companies don't abide by bribery laws

What do strong managers help instill into the corporation when setting examples of ethical behavior?

Values

What term is given to individuals or companies that invest in new businesses in exchange for partial ownership in those businesses?

Venture capitalists

Which of the following are examples of green jobs that cannot be outsourced offshore?

Weatherizing existing buildings,Installing solar panels to existing buildings

Which of the following is an example of a corporate social initiative?

Wegman's Supermarkets donating regularly to Foodlink

What are some of the questions entrepreneurs often ask themselves?

What really irritates me, and what product or service would help?,What do I want, but can never find?

Which of following are true about the advantages and disadvantages of being a franchise owner:

While the upfront costs of a franchise may be steep, a franchise has a better chance of succeeding than starting a business from scratch,Having a nationally recognized name for your business in a franchise can help with marketing and awareness

are insiders who report illegal or unethical behavior (answer is one word).

Whistleblower

An inexpensive marketing research study may help you determine which of the following?

Whom to select as your target market,Where to locate ,What is an effective strategy for reaching your target market

Ahmed is the owner of a small U.S. shoe manufacturing business. He knows he could export some of his shoes, but he does not know if they fit other markets. Also, he cannot afford to hire an international trade expert to help with all the paperwork. What does this situation demonstrate?

Why many small business have difficulty engaging in global business

Which of the following are good ways to learn how to run your own business?

Work for a successful entrepreneur,Run a small business during your off hours,Talk to other business owners

An independent entity whose purpose it is to oversee cross-border trade issues and global business practices is called the .

World,Trade,Organization

What occurs in contract manufacturing?

a foreign company produces private-label goods to which a domestic company then attaches its own brand name or trademark

What two tasks are important to complete when writing a business plan?

analyze the competition,calculate how much money you need to start

The statement by Patagonia that \A love of wild and beautiful places demands participation in the fight to save them

and to help reverse the steep decline in the overall environmental health of our planet\" is an example of:" corporate policy

What type of business relationship benefits both a trainee and a business owner and occurs when a trainee is hired to learn small-business management while assisting the owner in getting daily work done?

apprenticeship

David opened his own bicycle shop 30 years ago, and although he enjoyed his work, he needed more free time. When Josie requested to work as an apprentice, David was very willing. Before long Josie was able to run the store without any help. This is an example of how Blank______.

apprenticeships can benefit both the business owner and the apprentice

In a free market, the prices of products exchanged in the market:

are negotiated by buyers and sellers

An advantage of the separation of ownership from management in corporations is that the company can raise money from investors but the investors:

are not involved in daily operations

A corporation is formally formed with:

articles of incorporation and bylaws

A necessary and invaluable aid to entrepreneurs is a competent, experienced who knows and understands small business. This person can help with leases, contracts, partnership agreements, and protection against liabilities.

attorney

Studies show that companies with reputations for good corporate social responsibility

attract and retain better employees

The definition of Blank______ states: the difference between money coming into a country (from exports) and money leaving the country (from imports) plus money flows coming into or leaving a country from other factors such as tourism, foreign aid, military expenditures, and foreign investment.

balance of payments

Global trade is measured using two key indicators known as the:

balance of payments,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

McDonald's wrote a on the practice of grazing cattle on cleared rain-forest land.

ban

An embargo:

bans all trade of a certain product,bans all trade with a particular country

In addition to good ideas, entrepreneurs must

be action oriented,have a burning desire to realize and actualize their dream,want to see their dream become reality

Howard Schultz started Starbucks for which two reasons?

because he liked the ambience of Italian coffee houses,because he enjoyed the sense of community of the Italian coffee bars

Attracting and retaining better employees is an example of a corporate social responsibility:

benefit

In 2019, online retail sales reached over $365 , or approximately percent of all retail sales.

billion,12

In a leveraged buyout, employees, managers, or investors finance the purchase of the company by:

borrowing against its assets

The loss of the best and brightest people to other countries is the:

brain drain

Due to much higher taxes in socialist countries, the best and brightest tend to leave such countries causing a .

brain,drain

Top officials in countries like Japan, South Korea, and China have faced legal charges of influence peddling and which serve as examples of the unethical behavior that U.S. companies face in overseas markets.

bribes

Many businesses believe that they should have an influential and important role in:

building communities

The executive summary is the part of the Blank______ plan that consists of a two- or three-page management summary of the proposed venture, including a short description of the business, and discusses major goals and objectives.

business

The periodic rises and falls that occur in economies over time are called:

business cycles

A(n) ______ is a detailed written statement that describes the nature of the business, the target market, the advantages the business will have over competition, and the resources and qualifications of the owner(s).

business plan

If you want bankers or other investors to provide capital for your business venture, it is essential that you have a(n) Blank______ before you talk with them

business plan

Many investors believe it makes as well as sense to invest in companies that plan to create a better environment

business,ethical

Adam hopes to show the bank lending manager he is meeting with that he is aware of who the target market is, who the competition is, how much money he needs, and exactly how he intends to turn a profit by supplying him with a(n) .

business,plan

It is extremely important to develop a(n) before going to a bank for a loan, because it shows that you are aware of who the target market is, who the competition is, how much money you need, and exactly how you intend to turn a profit.

business,plan

Jason has prepared a comprehensive which includes a cover letter, executive summary, company background, management team, financial plan, capital required, marketing plan, location analysis, manufacturing plan, and an appendix.

business,plan

Mark recently started a small consulting firm. He is drafting a detailed written statement that describes the nature of the business, the target market, the advantages the business will have over competition, and the resources and qualifications of the owner(s). Mark is writing a(n) .

business,plan

One of the most difficult tasks is raising money for a start-up. To raise money, entrepreneurs talk with bankers and other potential investors, and try to sell their ideas. In order to have a chance, most of the time, entrepreneurs have to present a(n) .

business,plan

Some CEOs and business owners today like Mark Benioff and John Mackey,believe that:

businesses should serve all major stakeholders, not just their owners,not just a business, but all of its stakeholders should benefit from its success

A market consists of consumers with unsatisfied wants and needs who have both resources and the willingness to:

buy

In a free market, prices are determined by:

buyers and sellers negotiating in the marketplace

Importing is:

buying products from another country

One company's purchase of the property and obligations of another company is a(n) .

buyout

Effective ethics officers implement ethical standards in what two ways?

by conducting objective investigations to ensure fairness,by maintaining confidentiality with employees

Small and medium-sized firms are often better prepared to leap into global markets because they:

can react quickly to opportunities

Partnerships have the advantage over sole proprietorships of pooled knowledge and resources.

capital

When the government makes almost all economic decisions and owns almost all the major factors of production, the country is considered to be under the political system called .

communism

When starting a small business, government agencies such as the Small Business Administration (SBA), the Farmers Home Administration, the Economic Development Authority, and the Minority Business Development Agency are possible sources of:

capital,information

All organizations require the following:

capital,planning,information management

Comparing the most developed nations with less developed nations, one could conclude that the foundation of the economic system of most developed nations is:

capitalism

In many developed nations such as the United States, the UK, Australia, and Canada, is the foundational economic system.

capitalism

An economic system based on freedom of choice and privately owned factors of production is .

capitalist

Hugo lives in a country where individuals own all or most of the factors of production. Clearly Hugo lives in a ______ country.

capitalist

The long-term global trend has been toward a blend of and economic systems to create mixed economies.

capitalist,socialist

When the free market largely determines what goods and services to produce, a economy exists.

capitalistic

Totals that are shown in the Capital Required portion of a business plan should be the same as the ones shown in the statement.

cash,flow

Bruce is meeting with his accountant to choose whether his LLC is to be taxed as a partnership or a corporation. This advantage of forming an LLC is called:

choice of taxation

When the actions of other franchises have an affect on your business operation, this is called:

coattail effects

The actions of a fellow franchisee will affect your franchise. This is known as the .

coattail,effect

The economic system in which the government largely determines what products get produced, who gets them, and how the economy grows is called a:

command economy

No internal tariffs is a benefit enjoyed by members of markets, or \trading blocs.\"

common

A(n) , or trading bloc, is a regional group of countries with a common external tariff, no internal tariffs, and coordinated laws to facilitate exchange among members.

common,market

When a government decides what goods and services will be produced, the country is functioning within a economy

communist

While there are incentives to work hard in the private sector for capitalist, socialist, and mixed economies, there is little incentive to work in a economy.

communist

A small business is considered \small\" only in relationship to other in its industry."

companies

Local community college classes are a good place to start to learn about starting your own .

company

The ______ section of a business plan describes company operations to date (if any), potential legal considerations, and areas of risk and opportunity. This portion also summarizes the firm's financial condition, and includes past and current balance sheets, income and cash flow statements.

company background

The guiding principle of free economic exchange is theory.

comparative ,advantage

China has excellent manufacturing capabilities, whereas Russia has excellent natural gas production capabilities. Therefore, China manufactures products for Russia and Russia produces natural gas for China. This is an example of:

comparative advantage

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:

comparative advantage

The guiding principle of free economic exchange is:

comparative advantage theory

According to Mark Benioff, CEO of Salesforce, an economic system that benefits all major stakeholders so they share in the benefits of capitalism is:

compassionate capitalism

According to Mark Benioff, CEO of Salesforce, an economic system that benefits all major stakeholders so they share in the benefits of capitalism is .

compassionate,capitalism

Ethics codes that emphasize control and punishment of wrong-doers are - ethics codes.

compliance,based

What is a reason for the growth and success of home-based businesses?

computer technology has leveled the playing field

Corporate social responsibility is based on a

concern for the welfare of society

An important factor in enforcing an ethics code is:

conducting objective investigations,having an ethics officer who is fair

If a software company and a snack food company merged, it would be called a(n) merger.

conglomerate

The joining of firms in completely unrelated industries is a(n) merger.

conglomerate

A merger that joins firms in completely unrelated industries is a:

conglomerate merger

The monthly statistic that measures the pace of inflation or deflation is called the price index.

consumer

The pace of inflation or deflation can be measured using monthly statistics from the .

consumer,price,index

A foreign country's production of private-label goods to which a domestic company then attaches its brand name or trade mark is called:

contract manufacturing

A business owned and controlled through pooled resources by the people who use it is a(n) ______.

cooperative

When producers, consumers, or workers with similar needs pool their resources for mutual gain, they start a(n):

cooperative

The dimension of social responsibility known as social responsibility includes everything from hiring minority workers to making safe products, minimizing pollution, using energy wisely, and providing a safe work environment.

corporate

A corporate donation to a local food bank would be considered

corporate philanthropy.

The dimension of social responsibility, which includes certain aspects such as producing low-emission vehicles, is called:

corporate responsibility

Enhanced forms of philanthropy directly related to the company's competencies are called:

corporate social initiatives

The concern businesses have for the welfare of society, not just for their owners is:

corporate social responsibility,based on a commitment to integrity and respect

A state-chartered legal entity with authority to act and have liability separate from its owners is a:

corporation

A(n) is a state-chartered entity that exists in the eyes of the law and controls risk to the owners of the firm.

corporation

When it comes to ethics, sets the standards for moral behavior, that is behavior defined as right or wrong.

culture

More personal service and the ability to respond quickly is an advantage for small businesses.

customer

When implementing a new ethics program, businesses must also communicate the changes to outside parties such as:

customers

The sum of government deficits over time is called the national .

debt

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

What are two elements of an integrity-based ethics code?

defines guiding values,promotes shared accountability

If too many products are produced and there are too few buyers able to buy them, then will occur.

deflation

Rising unemployment levels tend to stifle demand for goods and services, which can have the effect of forcing prices downward, a condition known as .

deflation

The situation in which prices are declining is called:

deflation

What is a good tactic for entrepreneurs to implement in order to keep a new company growing?

delegate authority to employees

The quantity of products that people are willing to buy at different prices at a specific time is called:

demand

Mark, the marketing manager of a large U.S. corporation, realizes that Afghanistan has virtually no supply of tomatoes. He conducts a study to see what quantity of tomatoes Afghan customers would be able and willing to buy at different prices. Mark is analyzing Afghanistan's:

demand for tomatoes

The Location Analysis portion of a business plan should include a comprehensive analysis.

demographic

Examples of businesses that require high rates of advanced training are:

dental practices,electricians,veterinary services

The definition of ______ states: lowering the value of one nation's currency relative to other currencies.

devaluation

The definition of states: lowering the value of a nation's currency relative to other currencies.

devaluation

The Financial Plan part of a business plan should show how you plan to fund the business at various stages of the company's .

development

Among the hurdles small businesses must overcome in starting to operate globally are:

difficulty finding financing,understanding cultural differences,bureaucratic paperwork

Export Assistance Centers work with small and medium-sized businesses who wish to get involved in

direct exporting.

Among the reasons that disagreements can ruin a partnership are:

disagreement over workload,arguments over dividing profits,opposing management styles

It is important to have Articles of Partnership because problems between partners may occur due to

disagreements over dividing profits

About 30 percent of franchises are owned by African Americans, Latinos, Asians, and Native Americans. Franchisors are becoming more focused on recruiting franchisees.

diverse

The loss of the best and brightest people to other countries is called brain .

drain

Selling a product at a lower price in a foreign country than in the country where it is produced is .

dumping

Selling products at a lower price in a foreign country than in the producing country is:

dumping

Many brick and mortar franchisees are using Blank______ to expand their businesses online to lower costs and better meet the needs of their customers.

e-commerce,technology,websites

An increase or decrease in government regulations has a(n) Blank______ effect on business success due to the costs of adhering to the regulations.

economic

GDP, unemployment rate, and price indexes are considered the three major __ indicators.

economic

When engaging in global trade, economically depressed nations may not be able to afford to buy popular products in large quantities. Therefore, it is important for a company to understand a country's:

economic and financial forces

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

The definition of ______ states: a complete ban on the import or export of a certain product, or the stopping of all trade with a particular country.

embargo

The benefits of a free market economy include:

encouraging efficiency among competing businesses,the opportunity for people to work their way out of poverty ,competition that benefits consumers with better prices and service

Perpetual life for a corporation means that the death of one owner does not the corporation.

end

The most forceful way to communicate the importance of an ethics code is to:

enforce it

Walmart has retail stores in China, and Staples has retail stores in Australia. These are examples of U.S. companies:

engaged in the global market

Research has shown that companies engaged in corporate social responsibility (CSR):

enjoy greater employee loyalty,retain better employees,draw more customers

Another way to encourage entrepreneurship is to create specific geographic areas called in which governments offer lower taxes to attract private business.

enterprise,zones

Being self-directed, self-nurturing, action-oriented, and tolerant of uncertainty are all considered characteristics of a(n):

entrepreneur

A(n) ______ team is a group of experienced people from different areas of business who join together to form a managerial team with the skills needed to develop, make, and market a new product.

entrepreneurial

If you want to start a business, you cannot be afraid to fail. Many well-known failed several times before achieving success. This is why these people are considered to be tolerant of uncertainty.

entrepreneurs

Individuals who possess such attributes as being self-directed, action-oriented, and tolerant of uncertainty can become like Bill Gates and Steve Jobs.

entrepreneurs

The movement has had a positive impact on the U.S. labor force by creating jobs in new industries such as the manufacture of solar panels.

environmentalist

As negotiation occurs between buyers demanding products and sellers supplying products, the price will be determined in the long run.

equilibrium

A corporation can sell to anyone who is interested to raise more money for investment.

equity

For a business to grow, prosper, and create economic opportunity, many people have to be willing to invest money in it. An advantage of a corporation is its ability to raise money through the sale of .

equity

Facing a decision to either act unethically at the request of a supervisor or be fired for not acting as directed is referred to as an:

ethical dilemma

Your supervisor has asked you to increase your expense account meal and taxi charges to match his. You will both make a little extra on the recent trip you took. This has created an:

ethical dilemma for you

behavior can add to the bottom line while behavior can ruin companies financially.

ethical,unethical

The many small choices we make daily about working or goofing off, using company phones and computers responsibly, and following safety rules, make it clear that decisions start with each individual.

ethics

Having a(n) ______ is vital in enforcing the ethics code of an organization.

ethics officer

An important factor in enforcing ethics codes is selecting a(n) .

ethics,officer

The selection of a(n) is an important part of enforcing an ethics code.

ethics,officer

U.S. businesspeople are often accused of , an attitude that your own culture is superior to other cultures.

ethnocentrism

A social audit is used by organizations to Blank______.

evaluate its progress toward implementing socially responsible programs

The value of one nation's currency relative to currencies of other countries is the:

exchange rate

The is the value of one nation's currency relative to the currencies of other countries.

exchange,rate

A good business plan takes a lot of time to write, but you have only a few minutes to convince readers not to throw it away. This is why your summary is very important.

executive

An advantage small businesses have in international trade is that they can begin much faster.

exporting

A trade surplus occurs when a country's:

exports are greater than imports

A trade deficit occurs when a country's:

exports are less than imports

Except for states like Delaware, _______ creates a disadvantage to incorporating.

extensive paperwork

Some causes of small-business Blank______ include underpricing or overpricing goods or services, starting with too little capital, going into business without first learning something about the industry or market, and underestimating how much time it will take to build a market.

failure

The SEC rule that requires companies to share information with everybody at the same time, instead of a select few, is known as Regulation FD which stands for .

fair ,disclosure

In order to have trust and cooperation between workers and managers there needs to be

fairness, honesty, openness

In terms of operating flexibility, what are three things that LLCs are not required to do?

file written resolutions,keep minutes,hold annual meetings

Potential sources of for an entrepreneur are personal savings and government agencies such as the Small Business Administration (SBA), the Farmers Home Administration, the Economic Development Authority, and the Minority Business Development Agency.

finances

Included in the comprehensive business plan, the Blank______ plan provides five-year projections for income, expenses, and funding sources.

financial

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.

financial

Managers have many functions, such as planning, financing, marketing, human resource development, and accounting. Of those, ______ and ______ are the two primary concerns in the start up phase.

financing,planning

One of the most important advantages of the sole proprietor form of ownership is that a business owner:

finds it easier to start and end the business

By increasing or decreasing taxes or government spending, the government is affecting policy to keep the economy stable.

fiscal

The federal government's efforts to keep the economy stable by increasing or decreasing taxes or government spending is called policy.

fiscal

When the value of a currency is fixed by supply and demand it is the system known as rates.

floating,exchange

The loss of jobs in the U.S. job market for unskilled, middle-income workers is a negative effect of outsourcing.

foreign

The definition of __ __ __ states: the buying of permanent properties or businesses in foreign nations.

foreign direct investment

A company in another country that is owned by a U.S. company would be an example of a:

foreign subsidiary

An agreement that gives a business the right to use a business's name and sell a product or service in a given area is a(n):

franchise

An entrepreneur would buy a if they are uncomfortable starting their business from scratch.

franchise

Financial advice and a nationally recognized name are both benefits of owning a(n) .

franchise

Many minority business owners prefer a(n) because it offers business connections and support.

franchise

Businesses that are , like McDonald's, have both a direct and indirect impact on the economy through job creation and spending.

franchises

The right to use a specific business' name and sell its products or services in a given territory is a(n) agreement.

franchising

What form of business ownership is a contractual agreement whereby someone with a good idea for a business sells others the rights to use the business name and sell a product or service in a given territory in a specified manner?

franchising

Ed has decided to purchase and follow a business format by becoming a franchisee. The he will sign gives him the right to use the business name and sell the products of the firm.

franchising,contract

A contractual agreement in which someone with a good idea for a business sells others the rights to use a business name and sell a product or service in a given territory in a specified manner is a(n) . (Enter one word in the blank.)

franchisor

The definition of _blank _ Blank______ states: the movement of goods and services among nations without economic or political barriers.

free trade

Buyers and sellers negotiate prices for goods and services through supply and demand in a(n) economy.

free,market

An economic system in which the market largely determines what products get produced, who gets them, and how the economy grows is a ______ economy.

free-market

Mark graduated from college a short time ago and is still looking for his first (dream) job. Mark is part of the unemployment category known as Blank______ unemployment.

frictional

If you are your own boss, you are responsible for paying your own wages/salary and for your own .

fringe,benefits

Most entrepreneurs get ideas for products and services:

from looking around,from asking questions

The responsibility of the owner of a sole proprietorship for all of the debts of the business is liability.

full

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(n) partnership.

general

A partnership where all owners share in operating the business and in assuming unlimited liability for the business's debts is a:

general partnership

The three major types of partnerships are:

general, limited, and master limited

In socialism:

government owns and operates some basic industries such as steel mills, utilities, or transportation,individuals own some smaller businesses and property

Efforts to improve labor conditions in foreign countries have not always been as successful as U.S. companies intended because in some foreign countries

government regulations are weak.

Mixed economies exist where some allocation of resources is made by the:

government,market

The mortgage bankers and real estate companies who helped create the financial crisis of 2008 were driven by .

greed

The motives of those involved in unethical behavior that caused the financial crisis in the real estate, banking, and mortgage industries included:

greed ,the wish to inflate their own earnings

As a result of the green movement, emerging energy industries account for 9 million jobs in the United States.

green

If you want to be both independent and rich, you need to pursue a business with high:

growth

Socialism has several negative outcomes such as:

higher taxes,fewer incentives to work hard,a brain drain

Entrepreneurial attributes include:

highly energetic,action-oriented,tolerant of uncertainty

The outcome of FDI (foreign direct investment) is a foreign subsidiary, a company located in a different country from the company.

home

Many people today who need to combine work and family are starting - businesses.

home,based

Relief from the stress of commuting, extra time for family activities, and low overhead expenses are all advantages of - franchises.

home,based

A subsidiary must observe the legal requirements of both the country where the parent firm is located, called the ______ country, and the foreign country where the subsidiary is located, called the ______ country.

home; host

When a soft drink company and a mineral water company merge and then are able to supply a variety of drinking products they have formed a(n) 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

Because of the difficulty in ending a partnership, decisions regarding which two areas should be spelled out in a partnership agreement?

how to distribute assets,when a partner can retire

Nike suffered criticism due to its violations in their overseas manufacturing facilities.

human ,rights

A limit on the quantity of products in a certain category that a nation can import is called a(n)

import quota

The definition of __ __ states: a limit on the number of products in certain categories that a nation can import.

import quotas

Buying goods and services from other countries is referred to as:

importing

Equipment in hospitals, such as CAT scanners, PET scanners, and MRI scanners:

improve the quality of services provided, but do not necessarily increase productivity

Compliance-based ethics codes focus on:

increasing control,penalizing wrong-doers

Fiscal policy is the government's efforts to keep the economy stable by:

increasing or decreasing government spending,decreasing taxes,increasing taxes

Companies that try to act in a socially responsible way are likely to focus on such activities as

increasing the diversity of their workforce,providing safety equipment and training for their workers ,using recyclable packaging

According to a recent study, offering low-cost offices with basic services to new businesses in the early stages of development results in an 87% success rate of graduates.

incubator

Chase has a great idea for a new business, but lacks the funds needed to pay rent and hire a part-time accountant and lawyer. Accordingly, he decides to locate his offices temporarily in a business where he can receive accounting, legal, and secretarial help at little cost to him.

incubator

Business are centers that offer businesses in the critical stage of early development low-cost offices and access to basic services such as accounting, legal advice, and secretarial help.

incubators

Responsible business behavior depends on the responsible behavior of each ______ in the business world.

individual

A fault in capitalist economic systems that concerns many today is income:

inequality

A persistent increase in the level of consumer prices or a persistent decline in the purchasing power of money, caused by an increase in available currency and credit beyond the proportion of goods and services is the official definition of :

inflation

A persistent increase in the level of consumer prices or a persistent decline in the purchasing power of money, caused by an increase in available currency and credit beyond the proportion of goods and services is the official definition of:

inflation

Using knowledge or information about a company for personal gain which is not available to the public is called ______.

insider trading

Because investors want to be protected against any possible mishaps, it is also a good idea to include a description of coverage in the Company Background portion of the business plan.

insurance

A(n) ethics code creates an environment which supports ethically sound behavior by stating an organization's guiding values, shared responsibilities, and accountability.

integrity,based

Written ethics codes can be categorized as

integrity-based ,compliance-based

Becoming a(n) is one of the best ways to learn about how to run a business.

intern

Gaining financing, knowing how to get started in exporting, and navigating bureaucratic paperwork are major hurdles to consider when getting started in business.

international

Which statement best describes insider trading?

investors using private company information to further their own fortunes

A business that meets the criteria for a small business

is small only in relationship to the rest of its industry,is independently owned and operated

An important reason for a company to maintain its ethical reputation is

it attracts and retains customers

The United States has had a trade deficit since 1975 because:

it bought more goods from other nations than it has sold

An entrepreneur could choose to buy a franchise because:

it can be started as a sole proprietorship, partnership, or corporation,it's a business brand with a proven track record,it is less stressful than starting a business from scratch

China has transformed the world economic map because

it has become an exporting powerhouse,it has a population of 1.4 billion people

China has been penalized for selling steel at a lower price in the U.S. than it does in China because:

it is dumping

There are more than 7 billion potential customers in 195 countries around the globe. Each country possesses unique materials and skills, and as technology advances, communication barriers are being brought down. Therefore:

it is important to conduct business globally

A sole proprietorship has a limited life span unless:

it is sold to someone else,it is taken over by an heir

The attributes of a conventional corporation include that:

it is state chartered,corporate liability is separate from owners ,it is a legal entity

Those who oppose corporate social responsibility believe that

it is using investors' money in ways they did not intend

Many investors believe

it makes financial as well as moral sense to invest in companies that plan to create a better environment,that they can improve their own financial health by investing in companies whose goods and services benefit the community

It is easy to start and end a sole proprietorship because:

it may only require a simple permit or license to start,only one person is involved in the decision to dissolve the business

A business should be managed ethically because

it reduces employee turnover,it reduces the likelihood of lawsuits by employees or customers,businesses with good reputations attract customers

What three items are included in the \Management Team\" section of a business plan?"

job descriptions of listed positions,an organizational chart,resumes of current and proposed executives

Franchises not only help many entrepreneurs start a business but also create many new .

jobs

A disadvantage of an international ______ ______ is one partner can learn the other's technology and practices, then use what it learned to its own advantage.

joint venture

The definition of __ __ states: a partnership in which two or more companies, often from different countries, join to undertake a major project.

joint venture

When two or more companies, often from different countries, join together to take on a major project it is called a:

joint venture

The definition of states: a partnership in which two or more companies,often from different countries, join to undertake a major project.

joint,venture

LLC's are considered to have operational flexibility because while they must submit articles of organization, they are not required to:

keep minutes or hold annual meetings

Unethical behavior by financial and real estate businesses has led to

lack of trust in the free market system

Unethical behavior in business, especially in the real estate and banking industries, has resulted in

lack of trust in the free market system,severe financial crises

Legal and regulatory forces can create problems in the global market because:

laws and regulations vary greatly between countries

The start-up 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. This is called:

leaving a legacy

Leaving a means owners can leave an ongoing business for future generations.

legacy

When a sole proprietor leaves an ongoing business to future generations, it is said that the owner is leaving a .

legacy

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

In a general partnership, all partners share the responsibility for operating the business and assume for the business's debts.

liability

Of all the strategies for reaching global markets, offers the least amount of commitment, control, risk, and profit potential.

licensing

What entry strategy gives a firm the right to manufacture another firm's product or use its trademark for a royalty fee?

licensing

An S corporation has the liability protections of a corporation but is taxed:

like a partnership or sole proprietorship

A company that has socially responsible human resources management is

likely to perform better financially

An advantage of the corporate form of business is that limited liability allows it to:

limit individual responsibility for losses

A key advantage of LLCs is liability where personal assets are protected.

limited

Taryn and Eilysh have decided to form a partnership. Taryn will not have management responsibility, but will invest money in the business. Taryn will be considered a(n) partner.

limited

The form of partnership that limits liability to the limited partner's own acts or those of the people they supervise is a:

limited liability partnership

When there is one or more general partners and one or more limited partners, the firm is a(n):

limited partnership

The limited partners' risk of losing their personal assets in an LLP is:

limited to the outcomes of their own acts and omissions

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 a(n) partnership.

limited,liability

Limited liability, choice of taxation, flexible ownership rules, and operating flexibility are all advantages of a(n) company.

limited,liability

Franchises offer those starting a business the advantage of a recognized name, management assistance, and:

lower failure rates

Since entrepreneurs can't compete with larger firms' pay and benefits, what are three ways they can motivate employees?

maintain good employee relations,be respectful of employees' opinions,provide more challenging opportunities to learn

Job seekers interested in working in global trade should consider applying to:

major companies,small businesses

The strong relationship between academic dishonesty and dishonesty at work is likely to

make employers reluctant to hire those who have cheated

Financial and political leaders can restore trust in the free market system by

making businesspeople more accountable for their actions,passing laws to make accounting records more transparent

Managing a small business became relatively easy with the advent of inexpensive personal computers. Inexpensive computer systems and off-the-shelf or even free, open-source software make it easy for the small business manager to Blank______.

manage customer records,follow the daily sales and expenses

Who is most responsible when unethical behavior becomes widespread throughout a corporation?

management

Many people do not like working for someone, so being your own is an advantage of sole proprietorships.

manager

The part of a business plan that includes an organization chart, job descriptions of listed positions, and detailed resumes of the current and proposed executives is called the section.

managerial ,team

Within the comprehensive business plan, the ______ plan outlines sales, advertising, promotion, and public relations programs. This section also compares prices to competitors and forecasts sales in dollars and units.

marketing

Franchises are expanding internationally to access additional that have new customers and to increase their profit potential.

markets

The main types of partnerships include:

master limited,limited,general

When trying to decide where to expand his operations, a small business owner studied several different nations. He analyzed each nation's balance of trade and balance of payments. This small business owner was:

measuring global trade

The result of two firms (usually corporations) combining to form one company is called a .

merger

The result of two firms joining to form one is called a(n):

merger

When two firms join together to form one new company, it is called a(n) .

merger

Started by the Small Business Administration in 1991, the ______ program provides very small loans (up to $50,000) and technical assistance to small-business owners.

microloan

Entrepreneurs start a business with the desire to grow the business and generate wealth while start a business that will stay small, allowing them to have a balanced lifestyle and the ability to do the kind of work they want to do.

micropreneurs

Entrepreneurs who are not interested in starting a mammoth corporation, but rather are interested in a balance between lifestyle and work are called

micropreneurs

Many use their time, money, and energy to turn their passions into sustainable businesses. They are comfortable being their own bosses and are not afraid of failure.

micropreneurs

A legal form of business with two or more owners is a(n):

partnership

General, limited, and master limited are the three main forms of a(n) .

partnership

When two or more people legally agree to become co-owners of a business, the organization is called a(n) .

partnership

Corporate is the dimension of social responsibility that refers to a position a firm takes or statement it makes on social and political issues.

policy

Dow Chemical expects suppliers to conform to tough U.S. and safety laws.

pollution

An advantage of an LLC is flexible distribution of profits and losses, which means profits/losses do not have to be distributed in to the money each person invests.

proportion

To allow whistleblowers to come forward with information organizations should

protect them from retaliation,allow for complete anonymity

Trade is the use of government regulations to limit the import of goods and services such as import tariffs and quotas.

protectionism

When the retail price of imported products is increased for the purpose of making domestic goods more competitively priced it is called a(n)

protective tariff

Community Development Financial Institutions (CDFI) have been successful because they:

provide counseling on improving cash flow,maintained financial discipline other lenders lack,offer counseling on marketing strategies

The Small Business Administration (SBA) is the U.S. government agency that advises and assists small businesses by:

providing management training,providing loans,providing financial advice

Many companies believe they have a role in promoting , so they donate to local food banks, promote literacy, and provide computer lessons for inner city children.

public,responsibility

The percentage of the population who are included in the standard unemployment rate and those who are underemployed, discouraged, and have looked for a job in the past year are included in the:

real unemployment rate

Effective ethics officers:

relate well to employees at all levels,can be trusted to maintain confidentiality

What are two ways that a company's ethics officer can help to enforce the company's ethics code?

relate well to employees at every level,communicate in a positive manner

Micropreneurs are willing to accept the risk of starting and managing a business that:

remains small,lets them do the kind of work they want to do,offers them a balanced lifestyle

Dow Chemical, Calvin Klein and Tommy Hilfiger have tried to influence their international suppliers by:

requiring they conform to U.S. standards for pollution and safety,canceling orders that violate their ethical, environmental or human rights code

An inexpensive marketing study may help you determine your location, as well as your target market and how to reach it.

research

Companies often conduct to understand customers' attitudes on their environmental or social policies.

research

Studies have shown that what most influences a company's effectiveness and financial performance is:

responsible management of human resources

Whistleblowers can be helped by protecting them from:

retaliation

Defenders of CSR argue that it makes more for investors in the long run.

revenue

The share of profits or sales revenue paid to the franchisor are called .

royalties

A form of business ownership that provides limited liability, as in a corporation, but is taxed like a partnership is a(n) company.

s,corporation

Export Assistance Centers provide hands-on exporting assistance and trade-finance support for and -sized businesses.

small,mid

Many companies believe they have a role in promoting Blank______ that goes way beyond simply \giving back.\"

social justice

A communication tool many companies use to inform diverse groups of their social responsibility efforts at little cost is

social media

A positive goal of Blank______ is social equality, while a negative outcome is taking income from citizens at extremely high rates.

socialism

Free education, free health care, and more free time are some benefits of while a brain drain is one of its most negative outcomes.

socialism

The economic system based on the premise that some, if not most, basic industries should be owned by the government so that profits can be more evenly distributed among the people is called .

socialism

The idea that some basic businesses such as steel mills, coal mines and utilities, should be owned and controlled by the government is indicative of a economic system.

socialism

U.S. economist Milton Friedman believed that the only social responsibility of the corporation was to its stockholders. He also believed anything other than that would be considered:

socialism

From the list below, identify the five groups considered to be a type of watchdog group.

socially conscious research organizations,socially conscious investors,customers,environmentalists,union officials

Goods or services from the U.S. can be to many countries for different uses, such as snowplows to clear sand from driveways in Saudi Arabia.

sold

If you start and manage a landscaping business on your own, you have likely started a:

sole proprietorship

What are the four types of unemployment?

structural,seasonal,cyclical,frictional

A company situated in a foreign country that is owned by a parent company located in a different country, is a foreign .

subsidiary

Many U.S. businesses demand socially responsible behavior from their international Blank______ to assure they do not violate U.S. human rights and environmental standards.

suppliers

Socially conscious investors insist that a company extend its own high standards to its .

suppliers

Quantities of products manufacturers are willing to sell at different prices is known as .

supply

The quantity of products that manufacturers or owners are willing to sell at different prices at a specific time is called:

supply

Prices in a free market economy are determined by:

supply and demand

An advantage of partnerships is a longer rate than sole proprietorships, because they become more disciplined and the business's life is based on all the partners.

survival

Although definitions and means of measuring a carbon footprint aren't yet clear, many companies try to become more by claiming to reduce it.

sustainable

Burger King and Gymboree were publicly traded companies until a group of stock holders bought all the firms' stock in order to regain control. This is referred to as a firm .

taking,private

The definition of a(n) ______ is a tax imposed on imports.

tariff

A(n) is a tax imposed on imports. (one blank/one word)

tariffs

Fiscal policy is the federal government's effort to keep the economy stable by increasing or decreasing:

taxes,government spending

Himanshu called his large U.S. supplier to ask for an urgent delivery to his firm in Japan, but his request needed the approval of a high-level manager in the supplying firm. After 10 minutes browsing the Internet, Himanshu found a small business in the U.S. offering the same product. Seconds later, he was talking to the owner. The shipment left for Japan that day. What does this example illustrate?

the advantages small businesses have over large businesses in international trade

Because of the poor publicity at a fellow franchise location, you notice that sales at your location have decreased. The impact of the poor publicity on your company is referred to as

the coattail effect

Productivity is important to businesses because the higher it is Blank______. (Select all that apply)

the cost of production is lower, so profits can be higher,the cost of production is lower and prices can be lower,the lower the cost of producing goods and services

John is an economist with a large American Fortune 500 company. While looking over the data, he observes that both the producer price index (PPI) and consumer price index (CPI) have been growing very fast for the last 3 quarters. John is afraid that:

the economy is experiencing inflation

What are business cycles?

the periodic rises and falls that occur in economies over time

Benefits of exporting goods such as snowplows and sand to the Middle East include that:

the product may be used differently than in the U.S. ,there is likely to be less competition

Deflation may occur if:

too few dollars are chasing too many products,countries produce so many products that people cannot afford to buy them all

Implementing ethical standards within an organization starts with:

top management

Balance of is the total value of a nation's exports compared to its imports measured over a particular period.

trade

The definition of a states: an unfavorable balance of trade, which occurs when the value of a country's exports is less than its imports.

trade,deficit

The unemployment rate refers to the percentage of civilians at least 16 years old who are ______ and ______.

tried to find a job within the prior 4 weeks,unemployed

The major economic indicators are the GDP, the inflation rate, the rate, and price indexes.

unemployment

The rate refers to the percentage of civilians at least 16 years old who do not have a job but tried to find a job within the prior 4 weeks.

unemployment

According to some, the most recent financial crisis in the United States occurred as a result of the ______ business practices of greedy lenders and borrowers alike.

unethical

Which type of watchdog group hunts down violations and forces companies to comply?

union officials

When you own a sole proprietorship you and the business are considered one, so you have liability for financial obligations such as debt.

unlimited

A key disadvantage of operating a sole proprietorship is:

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

The disadvantage of sole proprietorships is that any debts or losses incurred by the business are your debts because you and the business are legally one and you have:

unlimited liability

If your company's debts or damages are solely your responsibility you could be experiencing the disadvantage associated with owning a sole proprietorship called .

unlimited,liability

People learn their organizational from observing the standards, values, and behaviors of leaders and other employees.

values

Phil invests in new businesses in exchange for partial ownership in those businesses. Phil is a(n) .

venture,capitalist

A merger that joins two companies involved in different but related levels of an industry is a(n) ______ merger.

vertical

In the United States, many employees report that they are unethical at work because they:

violate safety standards,goof off

Many CEOs and business owners today recognize that capitalism has created large disparities.

wealth

Insiders, such as employees, who report concerns about a company's accounting or auditing practices are called:

whistleblowers

The real unemployment rate includes the percentage of the population:

who are included in the standard unemployment rate and those who are underemployed, discouraged, and have looked for a job in the past year

After working for a large auto manufacturing company for over 20 years, Silvia decided to start her own auto accessory store. While facing new challenges every day, Silvia enjoys being free to manage her company as she desires. This example illustrates:

why people take the risks of entrepreneurship

Free trade is the movement of goods and services among nations:

without political or economic barriers

Studies have found a strong correlation between academic dishonesty and dishonesty at .

work

Students attending colleges and universities abroad often notice products that are unavailable in their home countries and

work with native producers to import the products to their home countries,have to develop financing and work long hours to import the products to their home countries,develop start up financing to become importers of that product while still students

Franchisors often use technology to meet the needs of both their customers and their because technology makes communication faster and more widespread.

workers

Companies such as United Parcel Service and Wal-mart have experienced much success by expanding into the market.

world

Although the United States has a market of over 300 million people, there are over 7.7 billion potential customers in the market.

worldwide

U.S. business people are often accused of ethnocentricity which is a belief that:

your own culture is superior to other cultures