Exam 1 Review
In some countries, it is customary to pay government officials to secure necessary business contracts and permits. American businesses must follow US law and cannot make these payments according to the?
Foreign Corrupt Practices Act
When a country has a monopoly on producing a product or is able to produce it at a cost well below that of all other countries, it has a(n)?
absolute advantage
An evaluation of franchising would conclude that this type of arrangement:
appeals to people who want to own a business, but are not comfortable starting a company from scratch
All else being equal, socially responsible firms:
are viewed more favorably by consumers
An entity that seeks to earn a profit by providing a good or service is known as a(n)?
business
A nation has a ___________ in the production of a good or service if it can produce that good or service more effectively or efficiently than it can produce other goods.
comparative advantage
A firm's corporate social responsibility describes its:
concern for the welfare of society
We describe charitable donations by corporations to nonprofit organizations as _________.
corporate philanthropy
If a business fails to meet its responsibilities to its employees, which of the following is likely to occur?
employees doing the minimum needed to get by
A(n) _____ is a person who assumes the risk of starting a business.
entrepreneur
Ernesto recently started selling his invention: a robotic lawn mower that mows the lawn by itself. Even though the venture is risky, he feels that his product will be successful. Ernesto is a(n):
entrepreneur
_____ refers to society's standards of moral behavior
ethics
_____ is the selling of products to another country
exporting
A(n) ______ is an agreement whereby someone with a proven idea for a business sells the rights to use the business model, to sell a product or service to others in a given territory
franchise agreement
_____ is buying products from another country
importing
When it comes to corporate social responsibility, some people feel that "before you can do good, you must do well". This reflects a firm's primary responsibility to its:
investors
Which item is considered to be a factor of production?
knowledge
studies have found a strong relationship between academic dishonesty and:
later dishonesty at work
The ____ is the most common form of business ownership
sole proprietorship
Which statement about the factors of production is the most accurate?
the 5 factors of production are land, labor, capital, entrepreneurship, and knowledge
The largest importing nation in the global market today is?
the United States
To many businesspeople, one of the major attractions of a sole proprietorship is:
the chance to be their own boss
Why does it make sense to trade with other nations?
A nation will produce what it can produce most efficiently and effectively and buy from other nations what they can produce most efficiently and effectively and efficiently
Which statement best summarizes the experience of US-based franchisors in foreign countries?
Both large and small franchises have found success in foreign countries by providing convenience and a predictable level of service and quality
What is an advantage of offshore outsourcing?
Companies can create efficiencies by hiring low-wage employees.
Compliance-based ethics codes typically:
rely on laws and regulations outside the firm for guidance.
What is the most popular type of business for franchising?
restaurants
The total amount of money that businesses take in by selling goods and services is called
revenue
What is the result of utilizing technology in business?
Technology makes business processes more productive
A business incurs a ___________ if its costs and expenses exceed its revenues.
loss
Following an ethics-based approach to decision making will normally lead to:
lower employee turnover
The theory of comparative advantage exists because?
no nation can produce all the products its people want and need
When U.S. firms choose to hire skilled and unskilled workers in other countries to produce goods and services, rather than producing them in the United States, we refer to this as?
offshore outsourcing
_______ is the amount a business earns after deducting what if spends for salaries and other expenses.
profit
Last year, Belter Manufacturing reported revenues of $44 million while its total expenses were $20 million. Based on this information, Belter reported: (profit or loss? How much?)
profits of $24 million
Which statement regarding ethical dilemmas is true?
they often force us to choose between equally unsatisfactory alternatives
One of the major disadvantages of a sole proprietorship is the:
unlimited liability the owner has for the debts of the firm
What term describes someone who reports illegal or unethical behavior?
whistleblower
