Study Guide BUS
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
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
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
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
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
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.
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.
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
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
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
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
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
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
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
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
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
A) indication of value
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
102) Unlike general philanthropy, strategic CSR ________. A) is aligned with a company's overall business strategy B) is aimed at specific sections of the society that have been historically discriminated against C) promotes an antagonistic business-versus-society mindset D) leads to weakening of both the business and the society E) refers to CSR activities that are mandatory according to law
A) is aligned with a company's overall business strategy
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
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
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
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
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
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
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
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
A) temporary store of value
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
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
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
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
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
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)
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
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
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
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)
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
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.
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
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
B) Price-escalation clauses
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
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
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
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
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
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.
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
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
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
B) combines limited liability of a corporation with the federal taxation advantages of a partnership
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
B) common law
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
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
90) Multinational corporations are companies that ________. A) have formed strategic alliances with companies across the world B) establish a physical presence in multiple countries through foreign direct investment C) have formed operational alliances with companies across the world D) procure supplies from multiple countries to improve their production E) export to multiple countries from a central location
B) establish a physical presence in multiple countries through foreign direct investment
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
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
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
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
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
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) tariffs
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
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
C) Trading blocs
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
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
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
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
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
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
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
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
C) planned
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
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
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
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
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
19) Which of the following best describes a purpose-driven business? A) A company that strives to incorporate 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 demand for goods and services
D) A company that strives to do more than just make money
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
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
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
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
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
D) Internal accountants
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
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
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
81) Where is the world's largest economy? A) India B) South America C) The United States D) The European Union E) China
D) The European Union
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
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)
D) Truth in Lending Act (Consumer Protection Credit Act) (1968)
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
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
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
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
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
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
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
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
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)
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
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)
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
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
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
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
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
91) Which of the following is one of the least risky forms of international business activity? A) Franchising B) Licensing C) Joint venture D) Strategic alliance E) Exporting
E) Exporting
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
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
E) Foreign Corrupt Practices Act
44) Which of the following best describes deregulation? A) Putting rules in place to govern economic activity B) Increasing the revenues to stimulate spending and limiting inflation C) Encouraging all stakeholders to put pressure on organizations to save money D) Adjusting the amount of "spendable" money in the economy at any given time E) Having fewer rules and relying on the market to prevent excesses
E) Having fewer rules and relying on the market to prevent excesses
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
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
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
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.
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
E) Retail banks
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
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
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
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
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
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
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
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
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)
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
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
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
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
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
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
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
