Bussiness exam study

A business proposal, inquiry, agreement, or professional recommendation would best be delivered via which communication channels?

A letter

What is NOT true of a sole proprietorship?

A sole proprietor may only use his or her legal name for the business.

A company might put money in FDI because:

All of these answers

An effective press release should include what information?

All of these answers.

What is the best explanation of corporation transparency?

The concept of removing all barriers to—and the facilitation of—free and easy public access to corporate information

What type of unemployment occurs during the time period between jobs when a worker is searching for or transitioning from one job to another?

frictional

What event occurred alongside the development of industrial capitalism in 19th Century Britain?

universal adult male suffrage

Small businesses often face a variety of problems related to their size because they

are often vulnerable to undercapitalization.

The market facilitates _______.

trade

What would NOT be considered an external stakeholder?

employees

When choosing what and how to write to a target audience, an organization's first goal should be

ensuring that readers grasp the messaging quickly and accurately.

Government regulation includes controls on all of the following EXCEPT _______.

market failures

Organizational ethics is how an organization ethically responds to an internal or external _________.

stimulus

One of the downsides of outsourcing for a company is that it:

Reduces confidentiality

What is an example of external financing?

Venture capital investing

Which demographic has seen a great deal of recent growth in entrepreneurial areas?

Women

According to the U.S. Small Business Administration, what percentage of businesses fail within the first four years of launching?

56%

What statement about business divisions is NOT true?

A corporation is not responsible for all its divisions

What is a corporate ethics code?

a detailed policy, containing specific behavioral requirements

A statistic that reports the status of the economy a few months in the past is known as what?

a lagging indicator

A technique that uses bias-free language can be best described as

using messaging that is free from gender, race, age, and disability bias.

What is NOT true about NAFTA

NAFTA helps the US, but harms Mexico

What rules of writing is attributed to the famous and celebrated 20th century writer, George Orwell?

Never use the passive where you can use the active.

Businesses that experience organic growth do so due to what reason?

New sales

What is NOT true regarding the legal aspects of nonprofit organizations?

Non-for-profit organizations are not required to have board members or steering committee members.

Successful small business owners often need a high level of _______, due to the high likelihood of drawbacks and failure.

Perseverance

What characteristics is NOT conducive with entrepreneurial drive?

Risk aversity

What is NOT generally an outlet for the benefits of productivity growth to be distributed to?

The media

What would NOT be an associated negative faced by a business that is focused on cheating the customer?

a desirable reputation in the community

What occurs when real GDP reaches its maximum, stops rising, and begins to decline?

a peak

What does transparency imply?

accountability; openness; communication

What is considered an example of a market stakeholder?

all of these answers

An extemporaneous speech sounds spontaneous because the presenter is

delivering the speech from a prepared outline.

Which is the following is NOT an acceptable use of surplus revenues generated by a non-profit?

distribution to shareholders

A measure of the benefit that an economic actor can gain from either a good or service is __________.

economic value

Effective organization promotes a high level of _______

efficiency

Effective organization allows a firm to directly result in all of the following EXCEPT:

higher profits

To determine the tone of a letter, memo, proposal, or other business communication, the writer must consider

the purpose of the communication.

How are stakeholders contributing to the heightened motivation for corporations to become more socially responsible?

they expect corporations to understand and address social issues relevant to the stakeholders

Navigating government regulations is one of the primary advantages of owning a sole proprietorship since

sole proprietorships do not have to pay corporate taxes.

Which of Andrew Carnegie's business principles advocates that the rich hold their money "in trust" for the rest of society, using it for any purpose society deems appropriate?

stewardship

In what area do nonprofits NOT play a role?

stock exchanges

What is NOT true about cooperatives?

Co-ops only exist in agriculture

What is an example of a syndicate?

Co-venture; Joint venture; Bank syndicate

What is NOT a benefit of contract manufacturing?

Complete control of production

In the U.S., what has spurred a freewheeling expansion of new types of investments that helped fuel a vast increase in international finance and commerce?

Economic deregulation

The ethical argument against international trade can best be explained as an increase in international trade leading to:

A disproportionate advantage to capital owners

The theory of competitive advantage can best be explained as suggesting that:

Businesses create high-quality goods to sell at high prices in the market

Assume you own an American office supplies company. Which part of your business process would most likely be relocated to another country?

Manufacturing

To be eligible for S corporation status, a corporation must have no more than

100 shareholders.

According to Adam Smith, the party which can produce more of a good or service than competitors while using the same amount of resources, is said to have:

Absolute advantage

Mark wants to end his speech so that it makes a lasting impression on his audience. What techniques should he use to "wow" his audience and complete his presentation?

End with a personal story

Assuming the US is efficient in growing corn and therefore sells is to other countries. We call this:

Exporting

Entrepreneurs can increase their odds of success by avoiding what drawbacks when starting a small business?

Failing to set aside cash reserves that can be used during economic downturns

What makes it difficult for franchisors to control the activities of franchisees?

Franchisees and franchisors are often separated by geography.

Suppose you, as an american company, started a phone business in India. Which cultural barriers might you face?

Ignorance of emerging markets; Transaction complexity; Market entry

The term balance of trade incorporates the measure of what?

Imports and Exports

Who usually controls the day-today activities of a corporation?

Individuals appointed by members

A corporation can be forced to shut down by the government if:

It breaks the law

According to economist Milton Friedman, why is the term "business cycle" a misnomer?

It is non-cyclical in nature.

What is a method used to organize, create and manage a social venture to achieve a desired social change?

social entrepreneurship

Gary Lyons, senior coach at The TAI Group, encourages speakers to "build on their story spine" using a five-step structure. Which step should follow after conflict is introduced in the presentation?

Struggle

Complete the following sentence. Tariffs, as they relate to global trade, are:

Taxes on imports

The most significant update to the GATT in 1993 was:

The establishment of the WTO

Which approach to calculating GDP works on the principle that the incomes of the productive factors must be equal to the value of their products?

The income approach

Which approach to calculating GDP involves summing the outputs of every class of enterprise?

The product approach

The one reason MNC can be harmful for the host country is:

They obtain strong negotiating power with local government

In order to be a successful joint venture, both parties must be equally invested in a project in terms of:

Time; Effort; Money

What best describes when the passive voice should be used in business writing?

To hide the identity of the subject or person

What is a primary advantage of using transparencies in business presentations?

Transparencies allow speakers to write while talking toward the crowd.

What is business ethics?

Written and unwritten codes of principles and values that govern decisions and actions within a company

What would most likely cause unethical behavior?

a competitive business environment

What occurs when real GDP declines and unemployment rises?

a contraction

Businesses can avoid miscommunication due to lack of trust by

sharing information, communicating openly and honestly, and involving others in decisions.

What is the process in which a government dictates which goods or services are produced, how they are produced, and who will receive them?

central planning

The amount of franchise or capital values tax limited liability companies must pay is based on

company revenues.

The question and answer (Q&A) format is most successful in business writing when it employs a

conversational tone.

What is the process managers use to transfer authority and responsibility to positions below them?

delegation

A private or public corporate entity in which an existing government owns a stake through a holding company is referred to as a

government-linked company.

What can be thought of as the fairness that can be promoted by providing explanations for decisions and delivering news with sensitivity and respect?

interactional justice

IT is changing the basis of business from labor and manual skills to _________.

knowledge management

Economists usually emphasize the degree to which government does not have control over markets in a capitalist system - what is a term for this concept?

laissez faire

An organization where the liability of the business owners is limited to the full, paid-up value of the share capital is referred to as a

limited liability.

Industries with a high concentration of small businesses generally require

little investment capital up front.

The section of the business plan that states how a company will sell and communicate to its potential customers and suppliers is described in the

marketing and sales management section.

According to economist Milton Friedman, the main purpose of a business is to_______.

maximize profits for its owners.

What is a useful indicator of the outlook for future jobs?

new claims for unemployment insurance

The total opportunity costs (both explicit and implicit) of a venture to an investor represent ________.

normal profit

What type of companies do individuals tend to want to work for?

ones in which ethical dilemmas are minimized

If the presentation is more formal, the speaker should open his or her speech with a(n)

overview.

Stakeholder theorists believe that______.

people outside of the business enterprise (e.g., consumers) ought to have a say in how the business operates

What is NOT an example of a category of economic indicator?

policy briefings

Free enterprise is based solely on what as the means of production?

private ownership

According to recent studies, presentation programs reinforced with proper formatting and use of visuals help participants

reach decisions and consensus in less time.

Businesses are more willing to sell a product when the price ________ and less willing to sell it when the price _________.

rises; falls

What belief has driven customers, businesses, home buyers, and the U.S. government itself to rely increasingly on debt?

that the value of their investments would continue to grow

Entering a franchise poses a low risk to companies and individuals due to

the ability to expand into international markets.

In a sole proprietorship, there is no legal distinction between:

the owner and the business.

An organization continuing to meet an employee's expectations of fairness creates a reciprocal relationship between organizational justice and _______.

trust

What technological development has allowed individuals to meet "face-to-face" over the Internet and have discussions related to a project they are working on together?

videoconferencing