Exam one

Iris Souza started the summer with $30. She took $10 and made signs for her dog walking service. She posted the signs all over her neighborhood. She used the other $20 to buy a stout leash and a pooper-scooper. At the end of the summer, after buying herself a new pair of shoes for $50 (she had worn her other shoes out walking dogs), she had $125 left. What was Souza's profit for her summer job?

$125

When sales of cheese in the United States began to stagnate, the U.S. dairy industry looked for a quick and easy method to reach global markets. From your understanding of how companies participate in the global marketplace, you should know that the dairy industry selected:

exporting

A code of ethics:

is accurately described by all of the above

Hard Rock Cafe International and Sol Melia Hotels and Resorts have allied to develop a multimillion-dollar hotel. This relationship is a _____ because their alliance will end as soon as the hotel is completed.

joint venture

A _____ offers the same liability protection as a corporation but may be taxed as either a partnership or a corporation.

limited liability company

Fred Pittman has invested $10,000 in his son's motorcycle repair shop, but he takes no part in its management. Pittman is a(n):

limited partner

In 2018, the country of Brazil, had imports of $78.02 billion and had a favorable balance of trade. This means that Brazil had:

more than $78.02 billion in exports

The Ford Motor Company has investing $6 billion to build a "world car," the midsize Mondeo. The car was designed in the U.S., Germany, and the United Kingdom to be adaptable to any market in the world. Ford is a(n) _____ company.

multinational

Japan bans importation of rice to protect its domestic rice industry. This ban is an example of:

protectionism

_____ is the money a company earns from providing services or selling goods to customers.

revenue

Fairmount Food Group purchased Swissrose International Inc., market of several brands of specialty and food service cheese from ConAgra. The _____ will make Fairmount the largest U.S. importer and marketer of specialty and deli-style cheese.

acquisition

The form of business ownership that is easiest to dissolve is the:

sole proprietorship

_____ is the practice of charitable giving by corporations; includes contributing cash, donating equipment and products, and supporting the volunteers' efforts of company employees.

Corporate philanthropy

Which of the following is a disadvantage of sole proprietor ownership?

Difficulty in raising capital

For partnerships to be legal, they must be established in writing.

False

The new employee that Dunn Photographic Services hired is an example of which factor of production

Labor

Thom Nielssen owns 500 acres of woodland. His forest is an example of which factor of production?

Natural resources

_____ is the amount of money remaining from a firm's sales revenue after it deducts production costs, interest costs, and taxes.

Profit

How does the current boom in mergers and acquisitions differ from ones in earlier years?

There is a greater number of U.S. and foreign companies making cross-border acquisitions.

Corporations face many more government restrictions and regulations than sole proprietorships and partnerships.

True

One of the disadvantages of the sole proprietorship is that the owner has unlimited liability.

True

Social responsibility is a voluntary obligation.

True

Some multinational corporations are so large that they resemble small countries.

True

Multinational oil companies such as ExxonMobil, Royal Dutch Shell, or BP are active all the way along the supply chain from locating crude oil deposits, drilling and extracting crude, transporting it around the world, refining it into petrochemicals such as gasoline, to distributing the fuel to company-owned retail stations, where it is sold to consumers. To gain this complete control of the various resources needed to product oil and gas, the companies had to have engaged in _____ mergers.

Vertical

CoolBrands International has entered an agreement with Binney & Smith to create a line of frozen novelties based on the Crayola brand, including pops, bars, sandwiches, cups, cones, sundaes and shakes. CoolBrands will pay Binney & Smith a royalty for the right to use the Crayola trademark. This is an example of:

a licensing agreement

_____ is the quantity of a good or service that people are willing to buy at various prices.

demand

A retailer that allowed its employees to handle a customer complaint without having to ask for permission or direction from management would have:

empowered its employees to help customers

Why do most large companies have outside directors on their boards?

to bring a fresh view to all of the corporation's activities

3 is a prime number.

true

A term that means that business damages and/or debts can also be attached to the personal assets of the owners is ______ liability.

unlimited

Which of the following is an example of a disadvantage associated with a partnership?

unlimited liability

Not-for-profit organizations have the same goals as for-profit organizations.

False

Registration procedures for incorporation are uniform from state to state across the U.S.

False

The Federal Reserve System can print money and raise taxes.

False

The higher the price of a good or service, the greater the quantity demanded.

False

Botswana produces diamonds, copper, nickel, soda ash, meat, and textiles, which it sells to the members of the European Union. To Botswana, the diamonds, copper, nickel, soda ash, meat, and textiles it produces are examples of:

export

Ottens Flavors, Philadelphia, announced its combination with MK Flavors & Co., Mexico City. The Mexican operation will offer the U.S.-based company an increased market presence in Central and South America. The new company will be renamed MK Ottens Flavors. MK Ottens Flavor was created through a(n):

merger