Into Business Chapter 1-16 Review

The highest level of the corporate social responsibility pyramid is:

philanthropic responsibilities

Laws passed by the U.S. Congress concerning how U.S. businesses trade with Cuba would be an example of _____ factors that influence the business environment.

political and legal

Which of the following is an example of a business?

all of the above choice were: Jack & Jill, a specialty clothing store for young children /// Ford Motor Company /// Lawson & Tyler law offices /// Wal-Mart

_____ is the practice of tying philanthropy closely to the corporate mission or goals and targeting donations to regions where a company operates.

Strategic giving

Which of the following statements about utilitarianism is true?

Utilitarianism holds that an action that affects the majority adversely is morally wrong.

Which of the following factors would most likely result in a dramatic change in supply?

a change in the price of raw materials used in the production process

In perfect competition, there is:

a large number of sellers producing nearly identical products

In terms of economic trends, the complete opposite to communism is:

capitalism

Individual ownership of property is a key element in:

capitalism

At the base of the corporate social responsibility pyramid is:

economic responsibilities

All of the following are characteristics unique to the capitalistic or private enterprise system EXCEPT:

economies of scale

The purchase of savings bonds by individuals allows the U.S. government to:

eliminate crowding out

When the government decides to cut military spending, it is implementing a(n) _____ policy.

fiscal

A market in which there are a large number of firms that differentiate their products is called:

monopolistic competition

With a communist economy system:

none of the above is true

With a communist economy system:

none of the above is true (other answers were:there are strong incentives for workers /// consumers can expect a mixed economic reaction /// basic industries such as railroads and utilities are owned by government, while other industries are owned by the private sector /// there is complete freedom of trade

In the middle of the desert in Arizona, there are five service stations competing for all the business that exists in this isolated location. When one service station lowers its price on gas, all must follow suit. These service stations are operating in a(n) _____ market structure.

oligopoly

For most agricultural products, farmers produce homogeneous products, sell them to a common market, and generally cannot affect prices greatly. This is an example of which kind of market structure?

perfect competition

There are a large number of small firms that provide entertainment for children's birthday parties. There is little difference between one company's inflatable slide and another company's. Clowns and magicians do similar tricks. Both the sellers and the parents buying the entertainment are well informed as to price and sources although sometimes it is difficult to hire the same entertainer two years in a row because the business is so easy to open and close. What type of market structure do local party entertainers depict?

perfect competition

Martha Maguire recently was laid off from her telemarketing job for a large catalog retailer. Each January, Maguire is laid off as soon as the Christmas season is over. She will be hired back sometime during the summer. In terms of unemployment, Maguire is a good example of _____ unemployment.

seasonal

Alonzo Dwork will not buy stock in a company that sells bottled water because more than 1.5 million barrels of oil are used annually to make the plastic bottles used for water, and nearly 90 percent of these bottles are disposed of after one use. Dwork is a strong believer in environmental protectionism, and this _____ is his way of expressing that belief.

social investing

_____ is the practice of limiting investments to securities in companies that behave in accordance with the investor's beliefs about ethical and social responsibility.

social investing

Wal-Mart ran a series of ads in trade journals with the following headline: "We're Looking for Quality Products That Are Guaranteed Not to Last." What Wal-Mart was in fact doing was asking its suppliers to develop more environmentally friendly products and to use material that could be recycled. This concern about the environment is one way that Wal-Mart practices:

social responsibility

The economic system under which basic industries are operated by the government or owned by the private sector under strong government control is called:

socialism

Archer Daniels Midland Co. (ADM) has joined with Baron Spices and Seasonings to market spices, seasonings and herbs to the foodservice industry. ADM will provide the raw materials, and Baron will act as the distributor and use its already existing relationships with participants in the food service industry to make a success of this:

strategic alliance

Forty-five percent of the labor force in Armenia is involved in the agricultural sector, but the economic growth in the nation comes from industry and tourism. What type of unemployment would such a mismatch of ability and job requirements cause?

structural

In a mixed economy, the government is involved in the economic system through:

taxing, spending, and welfare activities

Which of the following countries has a high standard of living?

the United States

Which of the following is an example of a demographic factor?

a persons age

Inputs, such as natural resources, labor, capital, and entrepreneurship, are known as:

factors of production

A company has achieved the level of _____ responsibilities when it has met its ethical, legal, and economic responsibilities.

philanthropic

The government does not consider full employment to mean 100 percent of its citizens are employed because:

all of the above conditions can and do exist other choice were: some people choose to stay home to raise children rather than have a job outside the home /// some people are not working because jobs are limited, and competition for jobs is intense. /// some people are preparing for later employment by attending school /// some people are temporarily unemployed while they wait to start new jobs

Labor, as a factor of production, refers to:

all workers in business

The Healing Garden is the manufacturer and marketer of organic beauty aids. Its annual $40,000 donation to The Nature Conservancy in support of the nonprofit organization's pledge to preserve the environment is an example of:

corporate philanthropy

In 1998 the tourism industry in Egypt had 43 percent unemployment due to an economic downturn that gripped the country as a result of an increase of terrorists' activities. The workers in the tourism industry were experiencing _____ unemployment.

cyclical

A homebuilder who disposes of asbestos shingles by burying them on his own property may please the home owner because it is a less expensive means of disposal but will be punished by various legal agencies if any become aware of his crime. At which stage of the social responsibility pyramid is the builder most likely operating?

economic

Inflation and interest rates are most closely associated with _____ within the external business environment.

economic forces

One of the keys to ethical business behavior is:

how the company's top management conducts themselves

The average price of construction materials increased by 8.1 percent in 2005. The head of the Home Builders Association said it was due totally to increases in lumber, metal, and labor costs. The 8.1 percent increase is probably an example of:

inflation

The situation in which the average of all prices of products is rising is called:

inflation

Utilitarianism:

is difficult to implement because it is hard to tell how one decision will impact a large number of people

The standard of living is low in Honduras. This means:

its citizens cannot afford to buy much

Another factor influencing business ethics is _____, or what is fair according to prevailing standards of society.

justice

Many weight-loss programs advertise that they can help individuals lose a great deal of weight without any changes in the individual's lifestyle. Typically when the person who has lost the weight leaves the program, he or she regains all the lost weight. This yo-yoing is almost as bad for the body as the excess weight. These weight-loss programs are engaged in _____ behavior.

legal but irresponsible

The implementation of an expansionary policy by the Federal Reserve would result in:

lower interest rates

Which of the following statements about social responsibility is true?

The obligation that a business has to act socially responsible extends beyond the investors in the company to include workers, suppliers, consumers, and communities.

PGE supplies all of the electricity to Portland, Oregon. PGE is an example of:

a pure monopoly

When a single firm accounts for 100 percent of industry sales, it is an example of:

a pure monopoly

Upward and downward changes in aggregate economic activity, as measured by GDP, are called:

business cycles

Corporate philanthropy:

can be either a cash or a noncash donation

An economic system based on competition in the marketplace and private ownership of the factors of production is known as:

capitalism

As one of the factors of production, natural resources includes all of the following EXCEPT:

machinery

When determining the GDP in 2006 for Chile, the economists adjusted the current market prices by 3.1 percent to correct for inflated values. This adjusted GDP is called the nation's _____ GDP.

real

Kraft Foods Inc. joined with the National Latino Children's Institute to announce Salsa, Sabor y Salud - a first-of-its-kind healthy lifestyles educational program designed by Latinos for Latinos. The program was created by NLCI in partnership with Kraft to support Hispanic families, a population particularly at risk for obesity and accompanying health problems. Kraft donated $2 million to the program's startup. This donation is an example of:

strategic giving

Which of the following is an example of a trend in ethics and social responsibility?

strategic giving

In 2005, more than two-thirds of population of Haiti were not working, but were actively seeking employment. This 66.67 percent represents the nation's:

unemployment rate

Successful owners and managers must continually study which of the following elements of the environment to remain successful?

all above answers were: social change /// Evolving economic systems /// Demographic change /// Emerging technology

It has been alleged that a Coca-Cola water bottling plant in India has caused illegal water shortages in fifty villages that surround the bottler. If this accusation is true, than Coke was operating at which stage of the social responsibility pyramid?

economic

If you were told the output of goods and services produced in Tajikistan, a former Soviet Republic had increased by eight percent in 2006, you would correctly refer to this increase as:

economic growth

Corrine Attlee has always enjoyed cooking more than doing anything else. Atlee has decided to quit her job as a college professor and invest her life savings in starting a restaurant. Attlee is an example of a(n):

entrepreneur

In the chocolate market, Green & Black is acting at the _____ responsibilities level of the pyramid of corporate social responsibility when it makes a profit, does so by abiding by the laws, and helps cocoa farmers by agreeing to pay above-market prices for cocoa.

ethical

_____ is the set of moral standards for judging whether something is right or wrong.

ethics

The laborers displaced due to assembly line automation at the textile plant may not have the skills needed to operate the computerized machines that replaced them. This is an example of _____ unemployment.

structural

Criticism of South Africa's post-apartheid government contends that the new government has not extended liberties to its black majority population, but has instead concentrated on proving to a white minority that a black-run administration can govern a reasonably sophisticated economy and society. The belief that the new South African government is behaving unethically is an expression of the philosophy associated with:

utilitarianism

Mamma's Diner was a small restaurant that was a popular hangout for many Bedford College students, but because of the owner's inability to make the bathroom stalls handicapped accessible for the one wheel-chair student on campus, it was forced to close down. The belief that this it was morally wrong to deprive the majority of the people of this experience is an expression of the philosophy associated with:

utilitarianism

In 1993, Purdue Pharmaceuticals of Stamford, Conn. applied for the first in a series of patents on Oxycontin, a painkiller. The U.S. Patent and Trademark Office (PTO) granted those patents based on the manufacturer's contention that the drug contained a novel innovation: It had been engineered so that only a very small dose was required for the drug to be effective for 90 percent of patients. As a result of the patent Purdue was the only company that could sell Oxycontin. Thus, Purdue became an example of which of the following market structures?

a pure monopoly

Which of the following is a characteristic of pure competition?

all of the above

Seeds of Change manufactures and markets certified organic entrees. Its mission reads, "At Seeds of Change, we're committed to making delicious foods that are healthy for you as well as the planet." In support of this mission, the company donates money to support environmental protection activities. In other words, Seeds of Change engages in:

strategic giving

The Home Depot supplies all the materials and the labor expertise for Habitat Homes in various regions of the country where the retail giant has a store. Its top management believes that this type of philanthropy better reflects the company's commitment to the community than simple donations to the American Cancer Society and similar national charities. The Home Depot is using the practice of:

strategic giving

Market equilibrium is:

the point at which quantity supplied equals quantity demanded