DECA I Final Exam Review
One difference between business ethics and the law is that business ethics
are often unwritten
The Scott company decided to sell stock to raise capital. Under what form of business organization does the company operate?
corporation
You decide not to take a certain action because you know its the wrong thing to do. You have made this decision based on your
ethics
Of the following methods of entering a foreign market, which is the least risky?
exporting
Government uses some of the tax money it collects from individuals and businesses to support public welfare programs. What is the benefit of these welfare programs in a private enterprise economy?
funds received by recipients are spent in business
In a socialist economic system, who tends to answer the question on how products will be produced?
government and businesses
Environmental degradation occurs because of
increased production
Which of the following is a public good that is provided by government
interstate highways
Which of the following is a potential consequence of poor business ethics
negative public image
The American red cross is an example of a ______ organization
nonprofit
Globalization can be a disadvantage for domestic workers when they lose their jobs due to the practice of
offshoring
What type of corporation may be owned by just a few people and does not offer its shares for sale to the general public?
private
What type of corporation sells millions of shares and must furnish complete information about its earnings, assets, and debts?
public
Illegally run organizations that emphasize the collection of high fees from potential product distributors are often referred to as
pyramid schemes
What actions are consumers most likely to take when the economy is poor
restrain their spending
People who go into business know that the business may not succeed. This possibility is referred to as business
risk
Government owns the basic means of production, but there is some private ownership of business under
socialism
A major problem for individuals and private businesses in a socialist command economy is
taxes
An example of a country that has a socialist command economy is
Canada
Which of the following is a potential problem in market economies?
Financial loss
Wendy's sells the right to operate its restaurants to individuals who meet the company's criteria. The arrangement between Wendy's and these individuals is an example of
Franchising
If all of the individuals who own a business share unlimited liability for the business's losses, these individuals are part of a(n)
General Partnership
In a communist command economy, who decides how the economic questions will be answered?
Government
Why does the government set and collect taxes?
Help pay for taxes of government
Lois and Lora plan to open a florist shop. Lois is unable to devote full time to the daily operations of the shop but wishes to provide financial support. Which form of business partnership is most likely to appeal to Lois?
Limited
Which of the following government actions is most likely to stimulate the economy
Lowering tax rates
A country that currently has a communist command economic system is
North Korea
"To form my business, I used all of my savings. borrowed from the bank, and I'm personally liable for all of the debts." This is an example of what type of business ownership
Private
The two main sources of revenue used to pay the costs of government regulations are
Taxes and borrowing
The technology that has had the most influence on globalization has been
The internet
One of the characteristics of the form of a business ownership known as an LLC is that
The owner's personal property cannot be taken to pay the business' debts
Which of the following is a true statement about business ethics and law
The two are not the same thing but they overlap
Which of the following is a true statement about ethical business practices
They do not guarantee positive outcomes
Lack of economic growth is a major problem for __________ economic systems.
Traditional
"Brain Drain" occurs when
a country loses talented employees to better opportunities overseas
An organization that has the ability to adapt quickly is
agile
Globalization can be an advantage for businesses because it
can help cut cost for certain resources
A business' philanthropic responsibility involves its contributions to
charity
The government controls the economic system and does not allow private ownership of the means of production and distribution in a _____ economy
communist
Which of the following is an example of increased financial risk for a company with poor business ethics
decreased company value
A business with poor ethics causes internal problems for itself by
decreasing productivity
A business suddenly moves its operations to a new town, leaving its current employees jobless. Its reason for taking this action, which some consider unethical, might be that the action
is not illegal
Some people believe that a business' only true ethical obligation is to
make money
Individuals and businesses own the means of production and distribution with limited government regulation in a _______ economy
market
What type of economic system is used in the United States
market
The most common medium of exchange in modern economic systems is
money
Which of the following is not a main reason for businesses to expand into foreign markets
to spread culture
Which of the following types of economic systems adopts the fewest new ideas or improvements
traditional
In a traditional economic system, the question of what to produce is answered by producing
what has always been produced