Exam 1

Not-for-profit organizations must meet specific guidelines in order to obtain tax-exempt status. These guidelines are structured by the

Internal Revenue Service

Which president stated that consumers have the right to safety, to be informed, to choose, and to be heard

John F. Kennedy

When starting a corporation, people submit articles of incorporation to

The Secretary of State or appropriate state official

The United States joined with Mexico and Canada to promote the movement of resources and products; it formed a(n)

economic community

During the 1980s, very few organizations created and implemented ethics codes

false

When economists study the national economy or global economy, they are using a(n) _____ approach

macroeconomics

Which of the following statements is true?

most LLCs are formed in the state where they do the most business.

During which phase of the business cycle would a company like General Electric introduce new products

peak

Business Ethics

principles and standards that determine acceptable conduct in business

Common stock carries all the following rights except

receive part of the profit before other classes

A social audit is a

report of what a business has done and is doing about social issues.

Which of the following is not one of the four states included in a typical business cycle

Repression

Although changes have occurred over the years, ____ is historically considered to have a communist economy.

North Korea

For a business, stakeholders represent

all of the different people or groups who are affected by the business

Refer to Thomas Bernerd, Inc. When the transport carriers notify the exporter that the product has been shipped, they use a ____

bill of lading

The most effective form of business organization for raising capital is the

corporation

TO compare the productivity of the United States to that of Japan, one should examine their respective

gross domestic products

The primary financial function of the Small Business Administration is to

guarantee loans

Countries experiencing balance-of-payments deficits can obtain short-term loans from the

international monetary fund

An effective program for social responsibility takes time, money, and organization

true

False and misleading advertising is illegal and unethical.

true

Political considerations usually are involved in a country's decision to impose a trade embargo.

true

SCORE is a group of retired and active businesspeople who volunteer their services to small businesses through the SBA

true