Introduction to Business: Study Guide (Week 1-16)
120) Which of the following can create bias in AI systems? A) Algorithms and data built with human bias B) Lack of understanding why AI makes the decisions it does C) Lack of user training D) Few risk-assessment tools within the software E) Increased autonomy within systems
A) Algorithms and data built with human bias Which of the following can create bias in AI systems?
135) Who is responsible for reviewing the long-term plans and major strategic decisions of an organization? A) Board of directors B) External stakeholders C) Institutional investors D) Shareholders E) Philanthropists
A) Board of directors Who is responsible for reviewing the long-term plans and major strategic decisions of an organization?
111) Consumers have the right to buy safe products, and to buy them safely. Who enforces this? A) Consumer Product Safety Commission B) Civil Rights Act of 1964 Board C) Affirmative Action Board D) Equal Employment Opportunity Commission (EEOC) E) Fair Credit Reporting Act Commission
A) Consumer Product Safety Commission Consumers have the right to buy safe products, and to buy them safely. Who enforces this?
100) ________ involves donating money, employee time, or other resources to various causes without regard for any direct business benefits for the company. A) Philanthropy B) Cap and trade C) Affirmative action D) Sustainable development E) Strategic CSR
A) Philanthropy ________ involves donating money, employee time, or other resources to various causes without regard for any direct business benefits for the company.
61) ________ rate is the rate a bank charges its best loan customers. A) Prime B) Federal funds C) Overnight D) Paper E) Discount
A) Prime ________ rate is the rate a bank charges its best loan customers.
80) Which of the following has been created to promote trade and ensure economic growth of member nations? A) The World Trade Organization B) Multinational corporations C) Trading blocs D) Transnational organizations E) Tax havens
A) The World Trade Organization Which of the following has been created to promote trade and ensure economic growth of member nations?
115) Social media has given consumers numerous ways to ask questions, voice concerns, and otherwise demand attention, supporting which consumer right? A) The right to be heard B) The right to buy safe products C) The right to digital security D) The right to choose E) The right to buy products in a safe manner
A) The right to be heard Social media has given consumers numerous ways to ask questions, voice concerns, and otherwise demand attention, supporting which consumer right?
124) Which of the following is a disadvantage of a sole proprietorship? A) They usually have fewer financial resources and fewer ways to get funds from lenders or investors. B) There is a smaller limit on personal liability. C) There are no support groups specifically designed for sole proprietors to seek council on key decisions. D) Paid vacation time is limited to two weeks per year. E) Social media sites can be hard to manage.
A) They usually have fewer financial resources and fewer ways to get funds from lenders or investors. Which of the following is a disadvantage of a sole proprietorship?
12) Which one of the following is true regarding the economic environment of business that shapes the behavior of buyers and sellers? A) Virtually every decision made is influenced by the economic environment. B) Population trends, social values, and relationships of society and business are dependent on the economic environment. C) Forces resulting from the practical application of science are affected by the economic environment. D) Laws and regulations that restrain, support, and protect businesses protect the economic environment. E) Targeted customers and competitors that market similar products will not affect the economic environment.
A) Virtually every decision made is influenced by the economic environment. Which one of the following is true regarding the economic environment of business that shapes the behavior of buyers and sellers?
137) In a(n) ________, one company buys a controlling interest in the voting stock of another company. A) acquisition B) limited partnership C) joint venture D) strategic alliance E) consolidation
A) acquisition In a(n) ________, one company buys a controlling interest in the voting stock of another company.
126) In a general partnership, ________. A) all partners have joint authority to make decisions B) the number of partners is limited to five C) all partners have limited liability for financial obligations D) risk is limited to the amount invested in a partnership E) units of ownership are sold to the general public
A) all partners have joint authority to make decisions In a general partnership, ________.
99) Choosing an unethical course of action, even where choices are clear, results in ________. A) an ethical lapse B) an ethical dilemma C) opportunity D) whistle-blowing E) conflicts of interest
A) an ethical lapse Choosing an unethical course of action, even where choices are clear, results in ________.
110) The Magnuson-Moss Warranty Act (1975) requires complete written warranties in ordinary language and requires warranties to be ________. A) available before purchase B) contained on package labeling C) supported by the retailer D) applicable for a minimum of one year E) supported by the manufacturer
A) available before purchase The Magnuson-Moss Warranty Act (1975) requires complete written warranties in ordinary language and requires warranties to be ________.
83) Legal systems in Great Britain and the United States are based on ________, in which tradition, custom, and judicial interpretation play important roles. A) civil law B) common law C) theocratic law D) prevailing custom E) tax law
A) civil law Legal systems in Great Britain and the United States are based on ________, in which tradition, custom, and judicial interpretation play important roles.
8) Businesses can impact society in both positive and negative ways. Occupying land and displacing existing businesses are examples of ________. A) disrupting communities B) generating pollution C) creating waste D) creating safety risks E) causing financial instability
A) disrupting communities Businesses can impact society in both positive and negative ways. Occupying land and displacing existing businesses are examples of ________.
69) The number of units of one currency that must be given for a unit of the second currency is known as the ________ between the currencies. A) exchange rate B) tariff rate C) trading bloc D) balance payment E) trade balance
A) exchange rate The number of units of one currency that must be given for a unit of the second currency is known as the ________ between the currencies.
122) Profits of sole proprietorships ________. A) flow directly to the owners B) are taxed at corporate rates C) are considered fixed assets D) reach shareholders through intermediaries E) are subject to double taxation
A) flow directly to the owners Profits of sole proprietorships ________.
38) In a ________, companies can decide what to produce, how to produce, whom to sell to, and at what price to sell. A) free-market system B) socialist economy C) planned system D) communist economy E) regulated economy
A) free-market system In a ________, companies can decide what to produce, how to produce, whom to sell to, and at what price to sell.
76) Dumping ________. A) involves selling a product at a price lower than the cost of production B) is typically prevented by providing export subsidies to local producers C) is a strategy to revoke a countries normal trade relations status D) refers to the practice of selling products in small quantities E) is a strategy used by organizations to reduce trade barriers between countries
A) involves selling a product at a price lower than the cost of production Dumping ________.
16) The policies and practices of government bodies would shape the ________ environment for a business. A) legal and regulatory B) economic C) technological D) market E) social
A) legal and regulatory The policies and practices of government bodies would shape the ________ environment for a business.
125) A(n) ________ is an unincorporated company owned by two or more people. A) partnership B) S corporation C) corporation D) sole proprietorship E) limited company
A) partnership A(n) ________ is an unincorporated company owned by two or more people.
139) With a ________, a targeted company invokes some move that makes it less valuable to the potential raider, with the hope of discouraging the takeover. A) poison pill defense B) proxy fight C) white knight tactic D) direct offer E) tender offer
A) poison pill defense With a ________, a targeted company invokes some move that makes it less valuable to the potential raider, with the hope of discouraging the takeover.
56) When a downward swing or recession is over, the economy enters into a period of ________. A) recovery B) contraction C) stagnation D) depression E) repercussion
A) recovery When a downward swing or recession is over, the economy enters into a period of ________.
113) According to the ________, consumers have the right to know what they are buying, how to use the product, and potential risks. A) right to be informed B) right to buy products in a safe manner C) right to buy safe products D) right to be heard E) right to choose which product to buy
A) right to be informed According to the ________, consumers have the right to know what they are buying, how to use the product, and potential risks.
13) All groups affected by a company's activities are referred to as its ________. A) stakeholders B) suppliers C) shareholders D) customers E) employees
A) stakeholders All groups affected by a company's activities are referred to as its ________.
48) The ________ depicts the relationship between prices and quantities that sellers will offer for sale, regardless of demand. A) supply curve B) business cycle C) fiscal cycle D) competitive analysis E) equilibrium point
A) supply curve The ________ depicts the relationship between prices and quantities that sellers will offer for sale, regardless of demand.
133) Corporate officers are the ________. A) top executives who run a corporation B) middle level managers of a corporation C) lower level employees of an organization D) people who elect directors of a company E) official representatives of shareholders
A) top executives who run a corporation Corporate officers are the ________.
71) Which of the following is the broadest indicator of international trade and shows how much is spent on international transactions? A) Trade surplus B) Balance of payments C) Balance of trade D) Economies of scale E) Exchange rate
B) Balance of payments Which of the following is the broadest indicator of international trade and shows how much is spent on international transactions?
17) Which of the following is a component of the specific market environment within which each business operates? A) Technological innovations B) Competitors C) Environmental restrictions D) Ethical restrictions E) The speed of granting permits and licenses
B) Competitors Which of the following is a component of the specific market environment within which each business operates?
7) What key aspect of running a business includes the ability to offer valuable goods and services while contributing to society? A) Business mindset B) Corporate social responsibility C) Producing intangibles D) Opportunities in the marketplace E) Vertical integration
B) Corporate social responsibility What key aspect of running a business includes the ability to offer valuable goods and services while contributing to society?
142) Which type of analytics finds patterns in numerical data? A) Predictive analytics B) Data mining C) Text mining D) Machine learning E) Business intelligence
B) Data mining Which type of analytics finds patterns in numerical data?
116) Which of the following regulatory agencies is responsible for monitoring the hiring practices of companies and can require them to compensate individuals who have been victimized by unfair hiring practices? A) Employee Protection Commission (EPC) B) Equal Employment Opportunity Commission (EEOC) C) Civil Rights Commission (CRC) D) Employment Regulatory Commission (ERC) E) Federal Employment Commission (FEC)
B) Equal Employment Opportunity Commission (EEOC) Which of the following regulatory agencies is responsible for monitoring the hiring practices of companies and can require them to compensate individuals who have been victimized by unfair hiring practices?
85) Which of the following strategies is best when attempting to enter a foreign market slowly and then designing the firm's product offerings for that market? A) Business merger B) Exporting C) Foreign direct investment D) Franchising E) Joint venture
B) Exporting Which of the following strategies is best when attempting to enter a foreign market slowly and then designing the firm's product offerings for that market?
84) Which of the following acts outlaws payments that are intended to get government officials to break the laws of their own countries or to secure "improper advantage" in gaining or retaining sales? A) Foreign Direct Investment Act B) Federal Corrupt Practices Act C) Theocratic Laws Payment Act D) Economic Globalization Act E) Foreign Corrupt Practices Act
B) Federal Corrupt Practices Act Which of the following acts outlaws payments that are intended to get government officials to break the laws of their own countries or to secure "improper advantage" in gaining or retaining sales?
41) Which of the following involves changing the government's revenues or expenditures to change the growth rate of the economy? A) Antitrust regulation B) Fiscal policy C) Monetary policy D) Regulation E) Deregulation
B) Fiscal policy Which of the following involves changing the government's revenues or expenditures to change the growth rate of the economy?
86) ________ refers to buying goods or services from a supplier in another country. A) Franchising B) Importing C) Licensing D) Intermediating E) Partnering
B) Importing ________ refers to buying goods or services from a supplier in another country.
26) ________ can be used to get timely, accurate information to the right people via computer and communication systems. A) Forensic technology (FT) B) Information technology (IT) C) Product engineering D) Research and development (R&D) E) Strategic marketing
B) Information technology (IT) ________ can be used to get timely, accurate information to the right people via computer and communication systems.
34) In the global marketplace, which of the following is often a type of key asset needed to successfully utilize an advantage? A) Supplies B) Intellectual C) Capital D) Production location E) Workforce
B) Intellectual In the global marketplace, which of the following is often a type of key asset needed to successfully utilize an advantage?
72) Which of the following arguments supports the idea of free trade? A) Organizations should prefer local workers to home country workers. B) International trade takes place without any government interference. C) Governments should subsidize exporters to promote global trade. D) Dumping rules and tariffs should be stricter in developing countries. E) Local businesses should obtain help from governments.
B) International trade takes place without any government interference. Which of the following arguments supports the idea of free trade?
87) ________ agreements entitle one company to use some or all of another firm's intellectual property in exchange for a royalty payment. A) Franchising B) Licensing C) Joint venture D) Exporting E) Strategic alliance
B) Licensing _______ agreements entitle one company to use some or all of another firm's intellectual property in exchange for a royalty payment.
64) ________ offer financial services to businesses, particularly in the area of international finance. A) Private banks B) Merchant banks C) Investment banks D) Credit unions E) Retail banks
B) Merchant banks ________ offer financial services to businesses, particularly in the area of international finance.
93) The ability to cover all costs of customization while offering competitive prices in an international market should be considered in which functional strategy category? A) Product B) Pricing C) Promotional D) Staffing E) Customer support
B) Pricing The ability to cover all costs of customization while offering competitive prices in an international market should be considered in which functional strategy category?
4) ________ is the term used to describe the difference between revenue and expenses. A) Owner's equity B) Profit C) Interest D) Sales E) Economies of scale
B) Profit ________ is the term used to describe the difference between revenue and expenses.
73) Which of the following is an objective of protectionism? A) Increasing foreign direct investment B) Protecting industries and workers through government policies C) Helping developing nations engage in global trade D) Reducing the purchasing power of individuals E) Enhancing trade between nations
B) Protecting industries and workers through government policies Which of the following is an objective of protectionism?
51) ________ occurs when no single firm is large enough to influence prices and distort the workings of the free-market system. A) Pure monopoly B) Pure competition C) Inflation D) Recession E) Deflation
B) Pure competition ________ occurs when no single firm is large enough to influence prices and distort the workings of the free-market system.
1) ________ is money that an organization brings in through the sale of its goods and services. A) Finance B) Revenue C) Competitive advantage D) Capital investment E) Sales
B) Revenue ________ is money that an organization brings in through the sale of its goods and services.
108) ________ is defined as meeting the needs of the present without compromising the ability of future generations to meet their own needs. A) Cap and trade B) Sustainable development C) Materialism D) Consumerism E) Greenwashing
B) Sustainable development _______ is defined as meeting the needs of the present without compromising the ability of future generations to meet their own needs.
74) Taxes, surcharges, or duties levied against imported goods are known as ________. A) restrictive import standards B) tariffs C) embargoes D) import sanctions E) import quotas
B) Tarifs Taxes, surcharges, or duties levied against imported goods are known as ________.
123) Which of the following is a key difference between a corporation and a sole proprietorship? A) Establishing a sole proprietorship has complex legal requirements unlike a corporation. B) Unlike a sole proprietorship, a corporation has limited financial liability. C) Regulatory requirements are less severe for corporations than sole proprietorships. D) Compared to establishing a proprietorship, establishing a corporation is easier. E) Unlike a corporation, a proprietorship is subject to double taxation.
B) Unlike a sole proprietorship, a corporation has limited financial liability. Which of the following is a key difference between a corporation and a sole proprietorship?
78) ________ is a permanent forum for negotiating, implementing, and monitoring international trade procedures and for mediating trade disputes among member countries. A) International Labor Organization B) World Trade Organization C) World Bank D) European Union E) International Monetary Fund
B) World Trade Organization _______ is a permanent forum for negotiating, implementing, and monitoring international trade procedures and for mediating trade disputes among member countries.
119) Two areas of concern with artificial intelligence from an ethical perspective are embedded biases and ________. A) use for security issues B) a lack of transparency and accountability C) lack of simplification D) use of facial recognition software E) limited language processing
B) a lack of transparency and accountability Two areas of concern with artificial intelligence from an ethical perspective are embedded biases and ________.
47) A(n) ________ shows the relationship between the amount of product that buyers will purchase at various prices, all other factors being equal. A) inflation rate B) demand curve C) deflation rate D) competitive balance E) supply curve
B) demand curve A(n) ________ shows the relationship between the amount of product that buyers will purchase at various prices, all other factors being equal.
15) The conditions that affect the cost and availability of goods, services and labor, and the behavior of buyers and sellers are BEST described as the ________ environment. A) regulatory B) economic C) social D) legal E) market
B) economic The conditions that affect the cost and availability of goods, services and labor, and the behavior of buyers and sellers are BEST described as the ________ environment.
98) A situation in which you must choose between two conflicting but arguably valid alternatives would be known as a(n) ________. A) corporate opportunity B) ethical dilemma C) insider trading D) ethical lapse E) conflict of interest
B) ethical dilemma A situation in which you must choose between two conflicting but arguably valid alternatives would be known as a(n) ________.
92) In a ________ strategy, managerial control is highly centralized and major decisions for the company's international operations are made at the company's headquarters in the home country. A) distributed B) global C) franchising D) transnational E) multidomestic
B) global In a ________ strategy, managerial control is highly centralized and major decisions for the company's international operations are made at the company's headquarters in the home country.
121) A sole proprietorship ________. A) has many owners, but only one person runs the business B) is owned by only one person C) has limited tax liability D) is owned by two or more people but is not a corporation E) is taxed as a separate corporation
B) is owned by only one person A sole proprietorship ________.
23) The ________ function of an organization coordinates the incoming flow of materials and the outgoing flow of finished products. A) human resource B) logistics C) sales D) finance E) purchasing
B) logistics The ________ function of an organization coordinates the incoming flow of materials and the outgoing flow of finished products.
24) Creating branding and advertising strategies to communicate with potential customers would fall under the ________ function of a business. A) accounting B) marketing C) research and development D) human resource E) logistics
B) marketing Creating branding and advertising strategies to communicate with potential customers would fall under the ________ function of a business.
82) A(n) ________ is a country that allows companies the opportunity to shield some of their income from higher tax rates in their own countries. A) exchange premium B) tax haven C) fiscal incentive D) income shelter E) investment schema
B) tax haven A(n) ________ is a country that allows companies the opportunity to shield some of their income from higher tax rates in their own countries.
59) Money serves as a ________ when it is used as a way of accumulating wealth until it is needed. A) temporary store of value B) unit of accounting C) medium of exchange D) standard of deferred payment E) means of payment
B) unit of accounting Money serves as a ________ when it is used as a way of accumulating wealth until it is needed.
67) A country has a trade surplus when the ________. A) total flow of money into the country equals the total flow of money out of the country B) value of its exports exceeds the value of its imports C) exchange rate of its currency with other currencies is fixed D) value of its imports exceeds the value of its exports E) exchange rate of its currency with other currencies is variable
B) value of its exports exceeds the value of its imports A country has a trade surplus when the ________.
97) A person's disclosure that exposes illegal or unethical behavior by others within the organization is ________. A) philanthropic B) whistle-blowing C) illegal D) unethical E) insider trading
B) whistle-blowing A person's disclosure that exposes illegal or unethical behavior by others within the organization is ________.
9) ________ refers to the resources or capabilities a company must have before it can start competing in a given market. A) Assets B) Technological requirements C) Barriers to entry D) Economies of scale E) Fixed costs
C) Barriers to entry ________ refers to the resources or capabilities a company must have before it can start competing in a given market.
141) ________ is/are the massive data sets that companies collect and analyze to find trends and insights. A) Proxy B) Self-serve analytics C) Big data D) Proprietorship E) White knights
C) Big data ________ is/are the massive data sets that companies collect and analyze to find trends and insights.
40) Which of the following is one of the ways the government helps to stabilize or stimulate the national economy? A) Changes in supply B) Instituting an oligopoly C) Changing monetary policy D) Adjusting equilibrium pricing E) Eliminating monopolies
C) Changing monetary policy Which of the following is one of the ways the government helps to stabilize or stimulate the national economy?
5) ________ refers to some aspect of a product or company that makes it more appealing to target customers. A) Barrier to entry advantage B) Horizontal integration C) Competitive advantage D) Vertical integration E) Economies of scale
C) Competitive advantage ________ refers to some aspect of a product or company that makes it more appealing to target customers.
53) Which of the following is a characteristic feature of economic contraction? A) Decreased consumer spending B) Increased income C) Decreased unemployment rates D) Increased employment E) Increased demand
C) Decreased unemployment rates Which of the following is a characteristic feature of economic contraction?
18) What types of technologies are strong enough to create or destroy companies? A) Collaborative B) Mobile C) Disruptive D) Connective E) Gig
C) Disruptive What types of technologies are strong enough to create or destroy companies?
30) ________ is/are led by innovation, initiative, and the willingness to take the risks in creating and operating businesses. A) Socialization B) Opportunity costs C) Entrepreneurship D) Deregulation E) Macroeconomics
C) Entrepreneurship _______ is/are led by innovation, initiative, and the willingness to take the risks in creating and operating businesses.
25) ________ verify the financial reports of public companies as required by law. A) Management accountants B) Credit managers C) External auditors D) Internal accountants E) Forensic accountants
C) External auditors ________ verify the financial reports of public companies as required by law.
109) Which of the following federal legislations limits a credit card holder's liability for unauthorized use? A) Fair Packaging and Labeling Act (1966, 1972) B) Deceptive Mail Prevention and Enforcement Act (1999) C) Fair Credit Reporting Act (1970) D) Truth in Lending Act (Consumer Protection Credit Act) (1968) E) Magnuson-Moss Warranty Act (1975)
C) Fair Credit Reporting Act (1970) Which of the following federal legislations limits a credit card holder's liability for unauthorized use?
63) Which of the following offers investing and advisory services to organizational customers, including governments? A) Thrift bank B) Merchant bank C) Investment bank D) Credit union E) Private bank
C) Investment bank Which of the following offers investing and advisory services to organizational customers, including governments?
65) ________ use(s) cloud technology to provide services through mobile and digital channels, thereby reducing the cost of banking services. A) Freddie Mac B) Peer-to-peer lending C) Neobanks D) Fintech E) FDIC
C) Neobanks ________ use(s) cloud technology to provide services through mobile and digital channels, thereby reducing the cost of banking services.
22) ________ is the act of designing new and better ways to run a company's operations. A) Facilities B) Purchasing C) Process R&D D) Human resources E) Marketing
C) Process R&D ________ is the act of designing new and better ways to run a company's operations.
31) Which of the following creates competition for finite resources, thereby forcing trade-offs by participants in the economy? A) Redundancy B) Opportunity costs C) Scarcity D) Free market systems E) Planned systems
C) Scarcity Which of the following creates competition for finite resources, thereby forcing trade-offs by participants in the economy?
81) Where is the world's largest economy? A) India B) South America C) The United States D) The European Union E) China
C) The United States Where is the world's largest economy?
95) ________ refers to the degree to which information flows freely within an organization, among managers and employees, and outward to stakeholders. A) Collaboration B) Utilitarianism C) Transparency D) Ethics E) Conflicts of interest
C) Transparency ________ refers to the degree to which information flows freely within an organization, among managers and employees, and outward to stakeholders.
55) A deep and prolonged recession is known as ________. A) stagnation B) deflation C) a depression D) an economic contraction E) demand immobilization
C) a depression A deep and prolonged recession is known as ________.
42) Governments established ________ in an effort to ensure all competitors have an equal chance of succeeding. A) deregulation legislation B) fiscal policies C) antitrust legislation D) free-market economies E) trusts
C) antitrust legislation Governments established ________ in an effort to ensure all competitors have an equal chance of succeeding.
129) An S corporation ________. A) does not split the ownership into smaller units B) combines limited liability of a corporation with the federal taxation advantages of a partnership C) combines limited ownership of a proprietorship with the capital-raising options of a corporation D) does not have such advantages as limited liability of investments E) must have over 100 investors
C) combines limited ownership of a proprietorship with the capital-raising options of a corporation An S corporation ________.
131) An S corporation is allowed to have ________. A) a maximum of 500 investors B) an unlimited number of investors C) fewer than 100 investors D) only investors who are fully responsible for the liabilities of the company E) fewer than 500 investors in the U.S. but an unlimited number in the global market
C) fewer than 100 investors An S corporation is allowed to have ________.
128) A disadvantage of the corporate structure is that it ________. A) increases the risk of conducting business B) limits the liquidity that businesses have C) involves strict reporting requirements D) imposes unlimited liability on the owners E) limits the business's ability to raise capital
C) involves strict reporting requirements A disadvantage of the corporate structure is that it ________.
2) The risk and reward relationship ________. A) is a key aspect of social responsibility B) applies only to service-intensive businesses C) is fundamental to businesses in every modern economy D) is an outdated concept that's been replaced by corporate sustainability E) is essential to the counter-cyclical business model
C) is fundamental to businesses in every modern economy The risk and reward relationship ________.
60) Money serves as a(n) ________ to simplify transactions because a buyer can trade it for a good or service. A) indication of value B) unit of accounting C) medium of exchange D) measure of liquidity E) debt obligation
C) medium of exchange Money serves as a(n) ________ to simplify transactions because a buyer can trade it for a good or service.
136) In a ________, two companies join to form a single entity either by pooling their resources or by one company purchasing the assets of the other. A) limited partnership B) joint venture C) merger D) consolidation E) strategic alliance
C) merger In a ________, two companies join to form a single entity either by pooling their resources or by one company purchasing the assets of the other.
54) The term ________ indicates two consecutive quarters of decline in the country's gross domestic product. A) stagflation B) deflation C) recession D) stagnation E) depression
C) recession The term ________ indicates two consecutive quarters of decline in the country's gross domestic product.
11) Population trends that change the composition of consumer markets and the workforce are a part of a company's ________ environment. A) economic B) regulatory C) social D) technological E) political
C) social Population trends that change the composition of consumer markets and the workforce are a part of a company's ________ environment.
14) The term ________ refers to forces resulting from the practical application of science to innovations, products, and processes. A) business mindset B) social trends C) technological environment D) research and development E) barriers to entry
C) technological environment The term ________ refers to forces resulting from the practical application of science to innovations, products, and processes.
68) A country has a trade deficit when the ________. A) exchange rate of its currency with other currencies is fixed B) exchange rate of its currency with other currencies is variable C) value of its imports exceeds the value of its exports D) total flow of money into the country equals the total flow of money out of the country E) value of its exports exceeds the value of its imports
C) value of its imports exceeds the value of its exports A country has a trade deficit when the ________.
140) With the ________ tactic, a third company is invited to acquire a company that is in danger of being swallowed up in a hostile takeover. A) proxy fight B) direct offer C) white knight D) countdown E) tender offer
C) white knight With the ________ tactic, a third company is invited to acquire a company that is in danger of being swallowed up in a hostile takeover.
39) The economic system that allows individuals the least degree of economic freedom is ________. A) free-market B) authoritarianism C) planned D) mixed capitalism E) capitalism
Communism ?
134) Which is the highest-ranked officer of a corporation? A) Chief financial officer B) Chief information officer C) Chief technology officer D) Chief executive officer E) Chief operating officer
D) Chief executive officer Which is the highest-ranked officer of a corporation?
88) ________ allows a firm to sell the rights for the use of a specific business system, including trade secrets and brand names. A) A strategic alliance B) Joint venturing C) Foreign direct investment D) Franchising E) Export licensing
D) Franchising ________ allows a firm to sell the rights for the use of a specific business system, including trade secrets and brand names.
28) Which of the following refers to people and their individual talents and capabilities? A) Knowledge B) Natural resources C) Capital investments D) Human resources E) Entrepreneurship
D) Human resources Which of the following refers to people and their individual talents and capabilities?
75) ________ limit the amount of particular goods that countries allow to be imported during a given year. A) Import subsidies B) Restrictive import standards C) Embargoes D) Import quotas E) Import tariffs
D) Import quotas ______ limit the amount of particular goods that countries allow to be imported during a given year.
33) Which factor of production represents the collective intelligence of an organization? A) Human resources B) Natural resources C) Capital D) Knowledge E) Entrepreneurship
D) Knowledge Which factor of production represents the collective intelligence of an organization?
35) What can companies use to protect themselves in long-term purchasing contracts? A) Consumer price index B) Price-escalation clauses C) Gross domestic product rates D) Producer price index E) Inflation rate clauses
D) Producer price index The Producer Price Index (PPI) is a family of indexes that measures the average change over time in selling prices received by domestic producers of goods and services. 35) What can companies use to protect themselves in long-term purchasing contracts?
21) ________ activities are intended to identify new ideas and designs that have the potential to result in new goods and services. A) Human resources B) Operations management C) Accounting D) Research and development E) Information technology
D) Research and development ________ activities are intended to identify new ideas and designs that have the potential to result in new goods and services.
114) Which of the following has helped buyers educate each other, shifting power from sellers to buyers? A) Consumer Product Safety Commission B) Consumer Bill of Rights C) Sustainability reports D) Social media E) Surgeon General's reports
D) Social media Which of the following has helped buyers educate each other, shifting power from sellers to buyers?
79) If a country needed help in dealing with a natural disaster, where might they go? A) Area trading blocs B) The World Trade Organization C) The Trans-Pacific Partnership D) The International Monetary Fund E) The World Bank
D) The International Monetary Fund If a country needed help in dealing with a natural disaster, where might they go?
58) Which of the following reflects the percentage of the labor force currently without work? A) Economic fluctuation B) Economic contraction C) Deflation D) Unemployment rate E) Monopolistic competition
D) Unemployment rate Which of the following reflects the percentage of the labor force currently without work?
29) The money, equipment, and buildings that a business needs in order to produce goods and services are called ________. A) entrepreneurship B) human resources C) natural resources D) capital E) knowledge
D) capital The money, equipment, and buildings that a business needs in order to produce goods and services are called ________.
70) When the U.S. dollar is strong, U.S. exports will likely ________. A) be restricted by governments across the world B) face embargoes in developing nations C) become more competitive in foreign markets D) cost more in other countries E) be limited by the U.S. government
D) cost more in other countries When the U.S. dollar is strong, U.S. exports will likely ________.
57) When demand for goods and services drops, businesses reduce production, resulting in economic contraction. The unemployment resulting because of this phenomenon is known as ________ unemployment. A) frictional B) intrinsic C) seasonal D) cyclical E) structural
D) cyclical When demand for goods and services drops, businesses reduce production, resulting in economic contraction. The unemployment resulting because of this phenomenon is known as ________ unemployment.
49) The point at which the demand and supply curves intersect—the point at which the quantity demanded and supplied are balanced is called the ________. A) aggregation point B) distribution point C) marginal point D) equilibrium point E) break-even point
D) equilibrium point The point at which the demand and supply curves intersect—the point at which the quantity demanded and supplied are balanced is called the ________.
130) A company that is incorporated in one state but does business in several other states where it is registered is called a(n) ________. A) international corporation B) domestic corporation C) global corporation D) foreign corporation E) holding corporation
D) foreign corporation A company that is incorporated in one state but does business in several other states where it is registered is called a(n) ________.
52) When the number of competitors in a market is small, and competitors influence each other through production and pricing decisions, a situation known as ________ is created. A) monopolistic competition B) duopoly C) pure competition D) oligopoly E) monopoly
D) oligopoly When the number of competitors in a market is small, and competitors influence each other through production and pricing decisions, a situation known as ________ is created.
32) The value given up when a different opportunity was pursued is referred to as ________. A) factors of production B) scarcity value C) affordability D) opportunity cost E) finite supply
D) opportunity cost The value given up when a different opportunity was pursued is referred to as ________.
37) The ________ measures price at the producer or wholesaler level, reflecting what businesses are paying for the products they need. A) inflationary stability index (ISI) B) gross domestic product (GDP) C) economic stimulus index (ESI) D) producer price index (PPI) E) consumer price index (CPI)
D) producer price index (PPI) The ________ measures price at the producer or wholesaler level, reflecting what businesses are paying for the products they need.
132) In a publicly held corporation, the board of directors is ________. A) comprised of institutional investors B) the top executives running a corporation C) elected by corporate officers D) representatives of the shareholders E) elected by the employees of the organization
D) representatives of the shareholders In a publicly held corporation, the board of directors is ________.
118) Which of the following Acts guarantees equal opportunities in education and employment for those with health issues and who may require reasonable accommodation to perform certain job tasks? A) Occupational Safety and Health (OSHA) B) The Civil Rights Act of 1991 (CRA) C) Equal Employment Opportunity (EEO) D) Affirmative Action E) Americans with Disabilities Act (ADA)
E) Americans with Disabilities Act (ADA) Which of the following Acts guarantees equal opportunities in education and employment for those with health issues and who may require reasonable accommodation to perform certain job tasks?
43) ________ laws limit what businesses can and cannot do to ensure that all competitors have an equal chance of succeeding. A) Stabilization B) Fiscal C) Discrimination D) Equilibrium E) Antitrust
E) Antitrust ________ laws limit what businesses can and cannot do to ensure that all competitors have an equal chance of succeeding.
45) Which of the following refers to the amount of a good or service that customers will buy at a given time at various prices? A) Equilibrium B) Want C) Utility D) Necessity E) Demand
E) Demand Which of the following refers to the amount of a good or service that customers will buy at a given time at various prices?
106) ________ is the study of the relationship between organisms and the natural environment. A) Energy conservation B) Ergonomics C) Greenwash D) Sustainability E) Ecology
E) Ecology ________ is the study of the relationship between organisms and the natural environment.
27) ________ is/are the study of how a society uses scarce resources to produce and distribute goods. A) Entrepreneurship B) Socialism C) Opportunity costs D) Capitalism E) Economics
E) Economics ________ is/are the study of how a society uses scarce resources to produce and distribute goods.
94) ________ is/are the principles and standards of moral behavior that are accepted by society as right and wrong. A) Business mindset B) Etiquette C) Philanthropy D) Mandates E) Ethics
E) Ethics ________ is/are the principles and standards of moral behavior that are accepted by society as right and wrong.
62) The ________ is the federal agency responsible for protecting money in customer accounts and managing the transition of assets whenever a bank fails. A) Federal National Mortgage Association B) Federal National Loan Corporation C) Federal Mortgage Corporation D) Federal Home Loan Association E) Federal Deposit Insurance Corporation
E) Federal Deposit Insurance Corporation The ________ is the federal agency responsible for protecting money in customer accounts and managing the transition of assets whenever a bank fails.
112) ________ is/are where criminals steal personal information and use it to commit other types of fraud. A) Online privacy violations B) Social Security breach C) Social commerce D) Economic freedom E) Identity theft
E) Identity theft ________ is/are where criminals steal personal information and use it to commit other types of fraud.
20) Which of the following best describes a gig economy? A) Independent workers who utilize sharing services B) Workers who use smartphones to produce services C) Workers who use technology to track offerings of competitors D) Workers who telecommute at least part of the work week E) Independent contractors who work on short-term projects
E) Independent contractors who work on short-term projects Which of the following best describes a gig economy?
107) The ________ establishes procedures for creating geologic repositories of radioactive waste. A) Solid Waste Disposal Act B) Clean Air Act C) Resource Recovery Act D) Toxic Substances Control Act E) Nuclear Waste Policy Act
E) Nuclear Waste Policy Act The ________ establishes procedures for creating geologic repositories of radioactive waste.
36) The ________ measures the rate of inflation by comparing changes in the prices of a representative basket of goods and services such as clothing, food, housing, and utilities. A) inflationary stability index (ISI) B) gross domestic product (GDP) C) economic stimulus index (ESI) D) producer price index (PPI) E) consumer price index (CPI)
E) consumer price index (CPI) The ________ measures the rate of inflation by comparing changes in the prices of a representative basket of goods and services such as clothing, food, housing, and utilities.
127) Which of the following is a key difference between private corporations and public corporations? A) Public corporations cannot own property, whereas private corporations can own property. B) Private corporations are legally a group of people, whereas public corporations are distinct from any individual persons. C) Private corporations cannot own property, whereas public corporations can own property. D) Private corporations do not have the power to run a business of its own, whereas public corporations can run a business of its own. E) Private corporations are owned by a few people, whereas public corporations can be owned by anyone who has the means to buy stake.
E) Private corporations are owned by a few people, whereas public corporations can be owned by anyone who has the means to buy stake. Which of the following is a key difference between private corporations and public corporations?
77) ________ are politically motivated embargoes that revoke a country's normal trade relations status. A) Quotas B) Subsidies C) Tariffs D) Restrictive standards E) Sanctions
E) Sanctions ________ are politically motivated embargoes that revoke a country's normal trade relations status.
46) ________ refers to the quantities of a good or service that producers will provide on a particular date at various prices. A) Utility B) Want C) Necessity D) Demand E) Supply
E) Supply ________ refers to the quantities of a good or service that producers will provide on a particular date at various prices.
117) Activities undertaken by businesses to recruit and promote members of groups whose economic progress had been hindered through either legal barriers or established practices are known as ________ programs. A) multiculturalism B) selective recruiting C) sustainable development D) greenwashing E) affirmative action
E) affirmative action Activities undertaken by businesses to recruit and promote members of groups whose economic progress had been hindered through either legal barriers or established practices are known as ________ programs.
50) The term ________ is used to characterize the fluctuations in an economy's rate of growth over a period of several years. A) microeconomics B) economic repercussions C) competitive pressures D) cyclical machinations E) business cycles
E) business cycles The term ________ is used to characterize the fluctuations in an economy's rate of growth over a period of several years.
3) A(n) ________ is a framework of how a business intends to generate revenue. A) profitability analysis B) entrepreneurial mindset C) strategic management tool D) competitive advantage E) business model
E) business model A(n) ________ is a framework of how a business intends to generate revenue
10) Businesses that need very large amounts of money, equipment, or other material resources in order to get started are ________ businesses. A) not-for-profit B) labor-intensive C) competitively-advantaged D) service sector E) capital-intensive
E) capital-intensive Businesses that need very large amounts of money, equipment, or other material resources in order to get started are ________ businesses.
96) A(n) ________ refers to a written statement setting forth the principles that guide an organization's decisions regarding what is right or wrong. A) statement of sustainable development B) employee procedure policy C) limited liability agreement D) statement of corporate opportunity E) code of ethics
E) code of ethics A(n) ________ refers to a written statement setting forth the principles that guide an organization's decisions regarding what is right or wrong.
138) A ________ merger occurs when a parent company buys one or more companies in unrelated industries. A) product-extension B) market-extension C) vertical D) retail E) conglomerate
E) conglomerate A ________ merger occurs when a parent company buys one or more companies in unrelated industries.
105) Companies have a choice in CSR, but at a minimum, all should practice ethical choices that ________. A) are dictated by pressure from outside forces B) improve stakeholder standing C) put philanthropy before profits D) result in steady profit E) do no harm
E) do no harm Companies have a choice in CSR, but at a minimum, all should practice ethical choices that ________.
89) In a(n) ________, two or more firms work together to create a new business entity that is legally separate and distinct from either parent company. A) operational alliance B) international franchise C) strategic alliance D) operational partnership E) joint venture
E) joint venture In a(n) ________, two or more firms work together to create a new business entity that is legally separate and distinct from either parent company.
103) According to the ________ view, the only social responsibility of business is to pay taxes and obey the law. A) proactive B) cynical C) defensive D) strategic E) minimalist
E) minimalist According to the ________ view, the only social responsibility of business is to pay taxes and obey the law.
104) Nongovernmental organizations are usually ________. A) firms that apply sustainable business strategies to achieve their business goals B) composed primarily of sovereign states (referred to as member states), or of other intergovernmental organizations C) publicly traded and owned entities D) firms that derive a substantial portion of their income from trade E) nonprofit groups that provide charitable services or promote causes
E) nonprofit groups that provide charitable services or promote causes Nongovernmental organizations are usually ________.
6) An organization that seeks to operate efficiently and effectively to achieve its goals without focusing on profit as a motive is a ________. A) goods-producing business B) service business C) government-owned corporation D) business intermediary E) nonprofit organization
E) nonprofit organization An organization that seeks to operate efficiently and effectively to achieve its goals without focusing on profit as a motive is a ________.
101) Supporting job-training efforts in the community as a way to develop the workforce is an example of ________. A) cap and trade B) strategic CSR C) affirmative action D) sustainable development E) philanthropy
E) philanthropy Supporting job-training efforts in the community as a way to develop the workforce is an example of ________.
66) The classic theory of comparative advantage suggests that each country should ________. A) produce a wide range of products to maintain an attractive international portfolio B) produce all goods and services it requires for domestic consumption C) attempt to maintain a trade deficit by importing more than what it exports D) attempt to maintain a trade surplus by exporting more than what it imports E) specialize in those areas where it can produce more efficiently than other countries
E) specialize in those areas where it can produce more efficiently than other countries The classic theory of comparative advantage suggests that each country should ________.
19) Which of the following best describes a purpose-driven business? A) A company that strives to create high financial return for stakeholders B) A company that strives to follow all laws and regulations in the international environment C) A company that strives to incorporate as much technology as possible D) A company that strives to do more than just make money E) A company that strives to limit the demand for goods and services
[Not sure but most likely] E) A company that strives to limit the demand for goods and services Which of the following best describes a purpose-driven business?
