Question Master The activities needed to operate a business can be divided into a number of

· Question 1 1 out of 1 points The activities needed to operate a business can be divided into a number of _____. Answer · Question 2 1 out of 1 points The unemployment rate measures the number of unemployed people who _____ seeking work. Answer Answer Selected Answer: CPI Correct Answer: CPI · Question 4 1 out of 1 points One useful indicator of the outlook for future jobs is the number of new _____. Answer Selected Answer: unemployment claims Correct Answer: unemployment claims · Question 5 1 out of 1 points Generally speaking, economic systems can be divided into _____ and _____ systems. Answer Selected Answer: planned / free market Correct Answer: planned / free market · Question 6 1 out of 1 points Generally speaking, we find products more attractive at higher prices because we believe that other people find value in them. Answer Selected Answer: Correct Answer: · Question 7 1 out of 1 points If the quantity demanded for cars is lower than the quantity supplied, we can expect that (select one) Answer Selected Answer: the price of cars will decrease Correct Answer: the price of cars will decrease · Question 8 1 out of 1 points In marketing, supply and demand interact to create a(n) _____price—the price at which buyers are willing to purchase the amount that sellers are willing to sell. Answer Selected Answer: equilibrium Correct Answer: equilibrium · Question 9 1 out of 1 points When we plot a supply curve and a demand curve for apples on one graph, the point at which the two points intersect is the _____. Answer Selected Answer: equilibrium price Correct Answer: equilibrium price · Question 10 1 out of 1 points The study of the economic choices made by individual consumers or businesses is called _____. Answer Selected Answer: microeconomic s Correct Answer: microeconomic s · Question 11 1 out of 1 points Asset-producing resources are the outputs used to produce inputs in a business. Answer Selected Answer: Correct Answer: · Question 12 1 out of 1 points Soup, Salad, & Sandwich is a regional chain of restaurants in the northeast that provides dine-in, carry-out, and catering services. Owners Jesse and Mataya Peña currently operate six locations and are in the process of opening a new restaurant in another state. Their operation is quite successful and appeals to health-conscious consumers, busy moms, and executives in a hurry. Staying open longer hours, enlarging the menu, and expanding the scope of the business are among the many goals set by the Peñas. They want to follow a traditional business model in reaching their goals. As part of their business plan, the Peñas identify their customers' needs, design products and services to meet those needs, and manage customer relationships. In this respect, they're engaged in _____. Answer Selected Answer: marketing Correct Answer: marketing · Question 13 1 out of 1 points In calculating gross domestic product (GDP), the U.S. government does not include the following: (select one) Answer Selected Answer: goods and services produced by U.S. companies in facilities outside the United States Correct Answer: goods and services produced by U.S. companies in facilities outside the United States · Question 14 1 out of 1 points A _____ accountant prepares information, such as reports on the cost of materials used in the production process, for internal use only. Answer Selected Answer: managerial Correct Answer: managerial · Question 15 1 out of 1 points _____ involve(s) planning, organizing, staffing, directing, and controlling a company's resources so that it can achieve its goals. Answer Selected Answer: Management Correct Answer: Management · Question 16 1 out of 1 points As a functional area of business, _____ measures, summarizes, and communicates financial and managerial information and advises other managers on financial matters. Answer Selected Answer: accounting Correct Answer: accounting · Question 17 1 out of 1 points _____ study the interactions between households and businesses and the ways in which the factors of production are combined to produce goods and services. Answer Selected Answer: Economists Correct Answer: Economists · Question 18 1 out of 1 points Among free market theorists, the principle of laissez-faire calls for government intervention to equalize the distribution of resources. Answer Selected Answer: Correct Answer: · Question 19 1 out of 1 points Weight Off, a local weight-loss clinic, maintains a clientele of more than 200 busy executives who travel frequently and need specialized diet and exercise regimes. The activities needed to operate this business include all of the following except _____. Answer Selected Answer: research and development Correct Answer: research and development · Question 20 1 out of 1 points Which of the following is not an example of a service company? Answer Selected Answer: Candy store Correct Answer: Candy store · Question 21 1 out of 1 points In theory, a _____ economy is one in which the government owns all or most enterprises. Answer Selected Answer: communist Correct Answer: communist · Question 22 1 out of 1 points When the overall price level of consumer goods goes up, we have _____; when they go down, we have _____. Answer Selected Answer: inflation / deflation Correct Answer: inflation / deflation · Question 23 1 out of 1 points During periods of _____ money, interest rates are down, it's cheaper to borrow money, and banks are more willing to make loans. Answer Selected Answer: easy Correct Answer: easy · Question 24 1 out of 1 points _____ concerns the use of scarce resources to produce outputs— goods and services —and how they're distributed among people. Answer Selected Answer: Economics Correct Answer: Economics · Question 25 1 out of 1 points If the government spends more than it takes in, we have a budget _____. Answer Selected Answer: deficit Correct Answer: deficit · Question 26 1 out of 1 points The U.S. government uses _____ policy regulate the money supply and interest rates. Answer Selected Answer: monetary Correct Answer: monetary · Question 27 1 out of 1 points Businesses are more willing to sell a product when the price _____ and less willing to sell it when prices _____. Answer Selected Answer: rises / fall Correct Answer: rises / fall · Question 28 1 out of 1 points If, in any given year, the government takes in more money than it spends on goods and services, the result is a budget _____. Answer Selected Answer: surplus Correct Answer: surplus · Question 29 1 out of 1 points Reported monthly by the Bureau of Labor Statistics, the _____ is the most widely publicized measure of inflation. Answer Selected Answer: consumer price index Correct Answer: consumer price index · Question 30 1 out of 1 points One way that economists measure the performance of an economy is by looking at a widely used measure of total output know as the _____. Answer Selected Answer: gross domestic product Correct Answer: gross domestic product · Question 31 1 out of 1 points General Motors operates several divisions in supplying cars, trucks, vans, and SUVs to its customers. Each division engages the usual business participants, overlaps management functions with other divisions, and works in basically the same functional areas as all of the others. Chevrolet, Pontiac, Oldsmobile, Cadillac, Saturn, and GMC trucks are among the company's product lines. Its few major competitors include Ford, DaimlerChrysler, Nissan, Honda, and Toyota. Each automaker sells a large portion of all the products sold in the marketplace, and each differentiates its product lines. The industry conditions illustrated in this scenario are best characterized as _____. Answer Selected Answer: oligopoly Correct Answer: oligopoly · Question 32 1 out of 1 points This week, Billy Bob's Barbeque had sales of $4,000. Employees were paid $1,000; food costs were $1,500; and rent was $500. Profit for the week was (select one) Answer Selected Answer: $1,000 Correct Answer: $1,000 · Question 33 1 out of 1 points A supply curve shows the relationship between (select one) Answer Selected Answer: the price of a product and the quantity that producers are willing to sell Correct Answer: the price of a product and the quantity that producers are willing to sell · Question 34 1 out of 1 points The _____ is an index based on results of a monthly survey of 5,000 households published by the Conference Board. Answer Selected Answer: consumer confidence index Correct Answer: consumer confidence index · Question 35 1 out of 1 points If the Fed believes that inflation is a problem, it will (select one): Answer Selected Answer: bring about an increase in interest rates Correct Answer: bring about an increase in interest rates · Question 36 1 out of 1 points If average weekly manufacturing hours by production workers is on the rise, the economy will probably improve. Answer Selected Answer: Correct Answer: · Question 37 1 out of 1 points Because the government limits them by law, there are few _____ in the United States. Answer Selected Answer: monopolies Correct Answer: monopolies · Question 38 1 out of 1 points Lagging economic indicators report the status of the economy for periods of a _____ in the past. Answer Selected Answer: few months Correct Answer: few months · Question 39 1 out of 1 points In the early 1980s, the United States experienced a slowdown in economic activity called _____. Answer Selected Answer: recessio n Correct Answer: recessio n · Question 40 1 out of 1 points The ups and downs due to the expansion and contraction of the economy constitute the _____. Answer Selected Answer: business cycle Correct Answer: business cycle · Question 41 1 out of 1 points Good _____ management is particularly important when a company is first formed because new businesses usually need to borrow start-up money. Answer Selected Answer: financial Correct Answer: financial · Question 42 0 out of 1 points Which of the following is not a characteristic of a business? Answer Selected Answer: establishes goals and meets them in an efficient manner Correct Answer: provides society with social or educational services without concern for making a profit · Question 43 1 out of 1 points The United States federal government influences economic activity by two means, including _____. Answer Selected Answer: fiscal policy Correct Answer: fiscal policy · Question 44 1 out of 1 points The difference between the revenue that a company brings in from selling goods and services and the cost of generating this revenue is called _____. Answer Selected Answer: profi t Correct Answer: profi t · Question 45 1 out of 1 points Scalpers sell tickets for such events as the World Series and the Super bowl for prices many times the amount printed on the tickets. This situation is an example of which of the following conditions? (select one) Answer Selected Answer: shortage causing an increase in market price Correct Answer: shortage causing an increase in market price · Question 46 1 out of 1 points During a recession, the economy expands, unemployment is low, incomes rise, and consumers buy more products. Answer Selected Answer: Correct Answer: · Question 47 1 out of 1 points To counter a recession, the Fed will take _____ measures to increase the money supply and reduce interest rates. Answer Selected Answer: expansionar y Correct Answer: expansionar y · Question 48 1 out of 1 points Because they operate in a(n) _____ industry, a fare decrease at American Airlines will likely result in decreases at Continental, United, and other carriers. Answer Selected Answer: oligopolistic Correct Answer: oligopolistic · Question 49 1 out of 1 points Because the cost of starting a business in an oligopoly is usually _____, the number of firms entering it is _____. Answer Selected Answer: high / low Correct Answer: high / low · Question 50 1 out of 1 points Businesses such as hospitals, insurance companies, financial institutions, and attorneys convert resources into _____ products. Answer Selected Answer: intangible Correct Answer: intangible Monday, January 9, 2012 4:45:44 PM EST OK · Question 1 1 out of 1 points When companies find that responding to public needs gives them a competitive edge and enhances long-term success, they have moved to which stage of corporate responsibility? Answer Selected Answer: strategic Correct Answer: strategic · Question 2 1 out of 1 points Which of the following companies got into trouble when upper-level management purposely deceived shareholders with fraudulent financial statements? Answer Selected Answer: WorldCom Correct Answer: WorldCom · Question 3 1 out of 1 points The rights identified by the consumer bill of rights include all of the following except _________ Answer Selected Answer: right to receive the lowest price possible Correct Answer: right to receive the lowest price possible · Question 4 1 out of 1 points If a manager makes a decision that financially benefits the manager but harms the company, this is an ethical issue related to Answer Selected Answer: conflict of interest Correct Answer: conflict of interest · Question 5 1 out of 1 points Lucretia finds herself caught between loyalty to her employer on the one hand and loyalty to a friend who works in her office on the other. The potential ethical issue that she's facing is best characterized as a matter of _____. Answer Selected Answer: conflict of loyalty Correct Answer: conflict of loyalty · Question 6 1 out of 1 points When you say to yourself, "I know I lied to make the deal, but it'll bring in a lot of business and pay a lot of bills," which of the four common rationalizations for misconduct are you using? Answer Selected Answer: "My action is in everyone's best interest." Correct Answer: "My action is in everyone's best interest." · Question 7 1 out of 1 points An organization's culture is strongly influenced by its _____, who inform members what's considered acceptable behavior and what happens if it's violated. Answer Selected Answer: senior executives Correct Answer: senior executives · Question 8 1 out of 1 points The federal minimum wage is set by the _____. Answer Selected Answer: U.S. government Correct Answer: U.S. government · Question 9 1 out of 1 points The _____ Agency has been a major force in cleaning up U.S. waters. Answer Selected Answer: Environmental Protection Correct Answer: Environmental Protection · Question 10 1 out of 1 points In balancing its responsibilities toward all stakeholders when making legal, economic, ethical, and social decisions, Condare Upholstery Supply Inc. takes an approach to organizational activities called _____. Answer Selected Answer: corporate social responsibility Correct Answer: corporate social responsibility · Question 11 1 out of 1 points Which of the following is a rationalization for misconduct in the workplace? Answer Selected Answer: telling yourself that you acted in everyone's best interests Correct Answer: telling yourself that you acted in everyone's best interests · Question 12 1 out of 1 points In planning a statement of core values and a code of ethics for his start up company, Gordon McDonald realized that ethical organizational activities include all of the following except _____. Answer Selected Answer: drawing up a list of product-safety standards Correct Answer: drawing up a list of product-safety standards · Question 13 1 out of 1 points Herb and Betty Cogwell are husband-and-wife owners of a regional chain of restaurants with 108 employees. Recently, one of their chefs discovered some spoiled produce that had been delivered by one of the company's regular suppliers. The products were sent only to one restaurant and Herb and Betty weren't aware of the problem until two customers became ill. Why hadn't the chef reported the tainted food? He didn't see any reason for implicating the supplier, and he thought that, with the proper preparation, he could avoid any problems with it. He was, of course, wrong. Subsequently, Kari, a waitress, overheard Herb and Betty discussing the problem and was ready to report them to the authorities if they didn't take responsibility for their chef's actions. The chef's mistake was in trying to rationalize the situation. Which of the following is not regarded as a common rationalization for workplace misconduct? Answer Selected Answer: "I'm defending my employer's reputation." Correct Answer: "I'm defending my employer's reputation." · Question 14 1 out of 1 points Generally speaking, in terms of ethics, the next generation entering business will find a world that's _____ than the one encountered by the previous generation. Answer Selected Answer: more challenging Correct Answer: more challenging · Question 15 1 out of 1 points When companies give employees time off to do volunteer work, which stakeholders are they being responsible to? Answer Selected Answer: communities Correct Answer: communities · Question 16 1 out of 1 points Laws governing equal opportunity require that people must be hired on the basis of _____, not _____. Answer Selected Answer: merit / personal characteristics Correct Answer: merit / personal characteristics · Question 17 1 out of 1 points According to the Wall Street Journal article, Barcleys worst punishment for violations of U.S. sanctions was Answer Selected Answer: to its reputation Correct Answer: to its reputation · Question 18 1 out of 1 points Which of the following is an example of an example of an unethical dilemma? Answer Selected Answer: deciding whether to relocate your plant (that employs 1,000 workers) from an urban area with high unemployment to an undeveloped rural area 100 miles away where labor costs are cheaper Correct Answer: deciding whether to relocate your plant (that employs 1,000 workers) from an urban area with high unemployment to an undeveloped rural area 100 miles away where labor costs are cheaper · Question 19 1 out of 1 points Clayton Moore must choose between taking actions that promote personal interests and the interests of others at work? The ethical issue that he's facing is best characterized as a matter of _____. Answer Selected Answer: conflict of interest Correct Answer: conflict of interest · Question 20 1 out of 1 points Herb and Betty Cogwell are husband-and-wife owners of a regional chain of restaurants with 108 employees. Recently, one of their chefs discovered some spoiled produce that had been delivered by one of the company's regular suppliers. The products were sent only to one restaurant and Herb and Betty weren't aware of the problem until two customers became ill. Why hadn't the chef reported the tainted food? He didn't see any reason for implicating the supplier, and he thought that, with the proper preparation, he could avoid any problems with it. He was, of course, wrong. Subsequently, Kari, a waitress, overheard Herb and Betty discussing the problem and was ready to report them to the authorities if they didn't take responsibility for their chef's actions. Who is not a stakeholder in this scenario? Answer Selected Answer: the owners' family Correct Answer: the owners' family · Question 21 1 out of 1 points In 2002, a federal law known as the _____ Act was created to protect whistle-blowers. Answer Selected Answer: Sarbanes-Oxley Correct Answer: Sarbanes-Oxley · Question 22 1 out of 1 points Which of the following is not among the four consumer rights identified by President John F. Kennedy in 1962? Answer Selected Answer: the right to have products available Correct Answer: the right to have products available · Question 23 1 out of 1 points When you ask yourself the question, "If I didn't get caught, did I really do it?" which of the four common rationalizations for misconduct are you using? Answer Selected Answer: "No one will find out what I've done." Correct Answer: "No one will find out what I've done." · Question 24 1 out of 1 points If you work for a company that expects you to deceive customers about the quality of your product, you should ________ Answer Selected Answer: leave the organization Correct Answer: leave the organization · Question 25 1 out of 1 points Pembroke Native Flower Seeds has a unique _____ or ways of doing things that evolve through shared values and beliefs. Answer Selected Answer: culture Correct Answer: culture · Question 26 1 out of 1 points Which of the following statements about business ethics is false? Answer Selected Answer: business ethics concern the actions taken by a company to show concern for its stakeholders Correct Answer: business ethics concern the actions taken by a company to show concern for its stakeholders · Question 27 1 out of 1 points Neal works for a company with a contract to cater events for a community college while his uncle Daniel owns a bakery which also caters locally. The potential ethical issue that he's facing is best characterized as a matter of _____. Answer Selected Answer: conflict of interest Correct Answer: conflict of interest · Question 28 1 out of 1 points In the 1990's, Nike was heavily criticized for its labor practices. Today the company works closely with agencies around the world to improve global working conditions. What stage of corporate responsibility has Nike progressed to? Answer Selected Answer: civil Correct Answer: civil · Question 29 1 out of 1 points Owners are the stakeholders who invest _____ in a firm in expectation of financial return. Answer Selected Answer: capital Correct Answer: capital · Question 30 1 out of 1 points Herb and Betty Cogwell are husband-and-wife owners of a regional chain of restaurants with 108 employees. Recently, one of their chefs discovered some spoiled produce that had been delivered by one of the company's regular suppliers. The products were sent only to one restaurant and Herb and Betty weren't aware of the problem until two customers became ill. Why hadn't the chef reported the tainted food? He didn't see any reason for implicating the supplier, and he thought that, with the proper preparation, he could avoid any problems with it. He was, of course, wrong. Subsequently, Kari, a waitress, overheard Herb and Betty discussing the problem and was ready to report them to the authorities if they didn't take responsibility for their chef's actions. Of all the people involved in this business, who most needs ethics counseling? Answer Selected Answer: the chef Correct Answer: the chef · Question 31 1 out of 1 points The automobile industry conducts extensive safety testing before introducing new models, and recalls _____. Answer Selected Answer: remain common Correct Answer: remain common · Question 32 0 out of 1 points Employees at Barclays New York branch noticed and refused payments from Sudan in compliance with U.S. law. They also warned management that the payments were illegal. In having to decide whether to go to the police or handle the problem themselves, the employees were faced with the possibility of a(n) _____. Answer Selected Answer: ethical dilemma Correct Answer: ethical lapse · Question 33 1 out of 1 points In contrast to the "right-versusright" problem posed by an ethical dilemma, the problem posed by a(n) _____ entails a "rightversus- wrong" decision. Answer Selected Answer: ethical decision Correct Answer: ethical decision · Question 34 1 out of 1 points Which of the following is the best definition of business ethics? Answer Selected Answer: the practice of competing fairly and declining to put your own interests above those of your company or its stakeholders Correct Answer: the practice of competing fairly and declining to put your own interests above those of your company or its stakeholders · Question 35 1 out of 1 points The misdeeds of Betty Vinson and her accomplices at WorldCom didn't go undetected. They caught the eye of Cynthia Cooper, who could have looked the other way but chose instead to be a(n) _____. Answer Selected Answer: whistle-blower Correct Answer: whistle-blower · Question 36 1 out of 1 points Organizational leaders must be willing to _____ and take appropriate action. Answer Selected Answer: hold employees accountable for their conduct Correct Answer: hold employees accountable for their conduct · Question 37 0 out of 1 points Which of the following criteria are not helpful in distinguishing a bribe from a gift? Answer Selected Answer: connection between the giver and the receiver Correct Answer: all these criteria are helpful in distinguishing a bribe from a gift · Question 38 1 out of 1 points Which statement about ethical decision making is false?: Answer Selected Answer: most people believe they are ethical all of the time Correct Answer: most people believe they are ethical all of the time · Question 39 0 out of 1 points Because Black Diamond Mining Co. takes environmental action mainly to protect its brands and reputation and to reduce the risk of litigation, it's in the _____ stage of corporate responsibility Answer Selected Answer: defensive Correct Answer: compliant · Question 40 1 out of 1 points Which of the following companies was charged with $11 billion in the largest fraud in U.S. history? Answer Selected Answer: WorldCom Correct Answer: WorldCom Monday, January 9, 2012 6:22:57 PM EST OK · Question 1 1 out of 1 points _____ has become a popular location for software development and customer-call centers for American companies. Answer Selected Answer: India Correct Answer: India · Question 2 1 out of 1 points The country of Cretonia is the only source of the rare mineral zhytan used in nuclear reactors. The country of Fredonte can produce twice as much creosote as any other country using the same amount of input resources. Both nations enjoy a(n) ____ advantage. Answer Selected Answer: absolute Correct Answer: absolute · Question 3 1 out of 1 points A _____ is a working partnership between companies in different countries who pool their resources to achieve goals and benefits for both firms. Answer Selected Answer: Correct Answer: · Question 4 1 out of 1 points Under a(n) _____, a foreign company pays a royalty fee to manufacture or sell your U.S. company's products, using your name and processes and perhaps your intellectual property. Answer Selected Answer: international licensing agreement Correct Answer: international licensing agreement · Question 5 1 out of 1 points The formal establishment of business operations on foreign soil, such as factories, sales offices, or branch stores, is called _____. Answer Selected Answer: foreign direct investment Correct Answer: foreign direct investment · Question 6 1 out of 1 points The difference between a country's total outflows and inflows of money over a period of time is its _____. Answer Selected Answer: balance of payments Correct Answer: balance of payments · Question 7 0 out of 1 points Which of the following organizations is a powerful world trading block? Answer Selected Answer: WTO Correct Answer: NAFTA · Question 8 1 out of 1 points Policies that restrict free trade among nations are called _____. Answer Selected Answer: trade controls Correct Answer: trade controls · Question 9 1 out of 1 points _____ is a common method of protecting domestic goods and trade. Answer Selected Answer: Adding taxes to imported goods Correct Answer: Adding taxes to imported goods · Question 10 0 out of 1 points The principle of _____ explains why France can produce white wine at a lower opportunity cost than the neighboring country of Germany. Answer Selected Answer: absolute advantage Correct Answer: comparative advantage · Question 11 1 out of 1 points According to the independent organization Transparency International, _____ suffers less business corruption than any other country. Answer Selected Answer: Finland Correct Answer: Finland · Question 12 1 out of 1 points Increased sales of German luxury cars in China has led to some concern that Answer Selected Answer: the profitability of German car makers will rely too much on sales in China. Correct Answer: the profitability of German car makers will rely too much on sales in China. · Question 13 1 out of 1 points Both manufacturing and nonmanufacturing functions can be _____ to nations with lower _____. Answer Selected Answer: outsourced Correct Answer: outsourced · Question 14 1 out of 1 points The World Bank uses gross national income per capita (an estimate of each citizen's share of national income) to divide countries into four income categories: high, uppermiddle, lowermiddle, and low income. is an example of a country in the upper-middle category, and is an example of a country in the low income category Answer Selected Answer: Poland Correct Answer: Poland · Question 15 1 out of 1 points If a foreign currency _____ relative to the U.S. dollar, Americans must pay more for goods and services bought from sellers in the country that issues the currency. Answer Selected Answer: goes up Correct Answer: goes up · Question 16 1 out of 1 points In communicating with other countries or cultures, it's valuable to understand all of the following except _____. Answer Selected Answer: English, which is the prevalent language of business Correct Answer: English, which is the prevalent language of business · Question 17 1 out of 1 points If the U.S. dollar goes down relative to a foreign currency, buyers using that currency pay ____ for American goods and services. Answer Selected Answer: less Correct Answer: less · Question 18 1 out of 1 points In _____ cultures, personal and work relationships tend to be compartmentalize d. Answer Selected Answer: low-context Correct Answer: low-context · Question 19 1 out of 1 points Basically, nations trade_____. Answer Selected Answer: because no nation's economy can produce all of the goods and services that it needs Correct Answer: because no nation's economy can produce all of the goods and services that it needs · Question 20 1 out of 1 points According to some experts, American businesspeople are at a competitive disadvantage when they're prohibited from _____ foreign officials or businesspeople. Answer Selected Answer: giving bribes or undercover payments to Correct Answer: giving bribes or undercover payments to · Question 21 0 out of 1 points According to the principle of _____, a country that decides to specialize in the production of a particular product must sacrifice the production of another product. Answer Selected Answer: comparative advantage Correct Answer: opportunity cost · Question 22 1 out of 1 points A country's level of economic development is related to its _____. Answer Selected Answer: standard of living Correct Answer: standard of living · Question 23 1 out of 1 points Under NAFTA, the United States, Canada, and Mexico are free to produce what each country does best and trade its goods and services without _____. Answer Selected Answer: restrictions Correct Answer: restrictions · Question 24 1 out of 1 points All of the following are conducive to economic growth except Answer Selected Answer: an unfavorable balance of trade and payments Correct Answer: an unfavorable balance of trade and payments · Question 25 0 out of 1 points Generally speaking, nations tend to _____. Answer Selected Answer: exploit their production and trade advantages Correct Answer: do all of these things · Question 26 1 out of 1 points German auto makers have received higher profits from their sales in China due to Answer Selected Answer: the euro has declined in value against the yuan and the dollar Correct Answer: the euro has declined in value against the yuan and the dollar · Question 27 1 out of 1 points _____ is not one of the purposes of the General Agreement on Tariffs and Trade. Answer Selected Answer: Setting protectionist levels Correct Answer: Setting protectionist levels · Question 28 1 out of 1 points The euro, the common currency of the European Union, facilitates trade and finance by _____. Answer Selected Answer: simplifying exchange rate differences Correct Answer: simplifying exchange rate differences · Question 29 1 out of 1 points To offset the dumping of goods on its soil, a country will usually _____. Answer Selected Answer: impose punitive tariffs on dumped goods Correct Answer: impose punitive tariffs on dumped goods · Question 30 1 out of 1 points We determine a country's _____ by dividing all of the goods and services that it produces by its average population. Answer Selected Answer: GNI per capita Correct Answer: GNI per capita · Question 31 1 out of 1 points If a country buys more goods and services than it sells over a specified period of time, it has a _______ Answer Selected Answer: trade deficit Correct Answer: trade deficit · Question 32 1 out of 1 points The largest factor in a country's balance of payments is its _____. Answer Selected Answer: import-export balance Correct Answer: import-export balance · Question 33 1 out of 1 points Under a(n) _____ between a U.S.- based company and a foreign company, in return for the right to use the parent company's brand name and sell its goods and services, the foreign company is required to adhere to an established business model. Answer Selected Answer: international franchising agreement Correct Answer: international franchising agreement · Question 34 1 out of 1 points One way of dealing with local laws and regulations in foreign countries is to hire local _____ to provide advice. Answer Selected Answer: attorneys Correct Answer: attorneys · Question 35 1 out of 1 points Which of the following is generally not true of Americans? Answer Selected Answer: they are more casual about meeting times than are individuals than are individuals from Latin American countries, such as Brazil Correct Answer: they are more casual about meeting times than are individuals than are individuals from Latin American countries, such as Brazil · Question 36 1 out of 1 points When it sets controls to protect domestic industries by reducing foreign competition, the federal government is _____. Answer Selected Answer: practicing protectionism Correct Answer: practicing protectionism · Question 37 1 out of 1 points High domestic ____ costs have made international contract manufacturing, or outsourcing, attractive to many U.S. companies. Answer Selected Answer: labor Correct Answer: labor · Question 38 1 out of 1 points RJR Nabisco (a U.S. company) allows a company in Singapore to use its brand name and recipe to produce and sell one of its products- Planters Nuts. In return RJR Nabisco receives a royalty fee. This type of international arrangement is called _______ Answer Selected Answer: licensing Correct Answer: licensing · Question 39 1 out of 1 points The United States is currently experiencing an international trade _____. Answer Selected Answer: deficit Correct Answer: deficit · Question 40 1 out of 1 points Alliances range in scope from informal cooperative agreements to _____. Answer Selected Answer: joint ventures Correct Answer: joint ventures Tuesday, January 10, 2012 6:52:29 PM EST OK · Question 1 1.7 out of 1.7 points The _____ in a limited partnership has(have) limited involvement in the business and suffer loss only to the extent of their business investments. Answer Selected Answer: limited partners Correct Answer: limited partners · Question 2 1.7 out of 1.7 points Under _____ competition, many sellers sell differentiated products that serve similar purposes. Answer Selected Answer: monopolistic Correct Answer: monopolistic · Question 3 1.7 out of 1.7 points The principle of _____ explains why Germany can produce automobiles at a lower opportunity cost than the neighboring country of Austria. Answer Selected Answer: comparative advantage Correct Answer: comparative advantage · Question 4 1.7 out of 1.7 points According to the WSJ, franchisers are concerned that new store openings are being limited by Answer Selected Answer: a credit crunch. Correct Answer: a credit crunch. · Question 5 1.7 out of 1.7 points A demand curve shows the relationship between (select one) Answer Selected Answer: the price of a product and the quantity that consumers are willing to buy Correct Answer: the price of a product and the quantity that consumers are willing to buy · Question 6 1.7 out of 1.7 points Which of the following is a disadvantage of the corporate form of organization? Answer Selected Answer: owners and managers are not always the same people Correct Answer: owners and managers are not always the same people · Question 7 1.7 out of 1.7 points All of the following are macroeconomic concerns except (select one): Answer Selected Answer: the price of flying between Boston and California Correct Answer: the price of flying between Boston and California · Question 8 1.7 out of 1.7 points _____ and decisiveness are the best responses to unethical behavior. Answer Selected Answer: Promptness Correct Answer: Promptness · Question 9 1.7 out of 1.7 points Karen learns from a coworker at her pharmaceutical company that one of the firm's most profitable drugs will be pulled off the market. Before the news becomes public, she sells all of her stock in the company. This action is best characterized as _____. Answer Selected Answer: insider trading Correct Answer: insider trading · Question 10 1.7 out of 1.7 points Which of the following is not true about not-forprofit corporations: Answer Selected Answer: exempt from paying income taxes if its purpose is religious, educational, scientific or literary and its revenues are less than $1 million Correct Answer: exempt from paying income taxes if its purpose is religious, educational, scientific or literary and its revenues are less than $1 million · Question 11 1.7 out of 1.7 points Maria Martin owns an advertising company. She gets to keep all of the income earned by the business. She operates it as a(n) _____. Answer Selected Answer: sole proprietorship Correct Answer: sole proprietorship · Question 12 0 out of 1.7 points All of the following are common criticisms of MNCs except _____. Answer Selected Answer: their constant demand for resources jeopardizes the physical environments of host countries Correct Answer: they inflate standards of living in host countries · Question 13 1.7 out of 1.7 points McDonald's, Burger King, Pizza Hut, and KFC restaurants, all of which operate in many different countries, are best characterized as _____ corporations. Answer Selected Answer: multinational Correct Answer: multinational · Question 14 1.7 out of 1.7 points A _____ is entirely separate from the parties who own it. Answer Selected Answer: corporation Correct Answer: corporation · Question 15 1.7 out of 1.7 points A corporation pays taxes on its earnings. When the earnings are distributed as dividends, the shareholders pay taxes on these dividends. This is called _____. Answer Selected Answer: double taxation Correct Answer: double taxation · Question 16 0 out of 1.7 points The sole regional supplier of Gasanol, a fuel made of gasoline and soy oil, operates in a(n) _____ market. Answer Selected Answer: oligopolistic Correct Answer: monopoly · Question 17 0 out of 1.7 points The major problem with general partnerships is: Answer Selected Answer: disputes among partners Correct Answer: unlimited liability · Question 18 1.7 out of 1.7 points According to the principle of _____, a country that decides to specialize in the production of a particular product must sacrifice the production of another product. Answer Selected Answer: opportunity cost Correct Answer: opportunity cost · Question 19 1.7 out of 1.7 points An absolute quota (as opposed to a quota) puts a(n) _____ on the quantity of a good that can be imported during a given period of time. Answer Selected Answer: upper limit Correct Answer: upper limit · Question 20 0 out of 1.7 points Product differentiation can be achieved by _____. Answer Selected Answer: geographical circumstance Correct Answer: all of these · Question 21 1.7 out of 1.7 points Because Jenny Craig's bank provides payment services, loan and insurance products, investments, credit cards, and online banking, it is a _____ company. Answer Selected Answer: service Correct Answer: service · Question 22 0 out of 1.7 points Soup, Salad, & Sandwich is a regional chain of restaurants in the northeast that provides dine-in, carry-out, and catering services. Owners Jesse and Mataya Peña currently operate six locations and are in the process of opening a new restaurant in another state. Their operation is quite successful and appeals to health-conscious consumers, busy moms, and executives in a hurry. Staying open longer hours, enlarging the menu, and expanding the scope of the business are among the many goals set by the Peñas. They want to follow a traditional business model in reaching their goals. The Peñas hire a manager for each restaurant and assign specific goals and responsibilities. Each manager will perform each of the traditional management functions except _____. Answer Selected Answer: staffing Correct Answer: auditing · Question 23 1.7 out of 1.7 points Managers have a(n) _____ responsibility to owners to safeguard a company's assets and handle its funds in a trustworthy manner. Answer Selected Answer: fiduciary Correct Answer: fiduciary · Question 24 1.7 out of 1.7 points The largest factor in a country's balance of payments is its _____. Answer Selected Answer: import-export balance Correct Answer: import-export balance · Question 25 0 out of 1.7 points General Motors operates several divisions in supplying cars, trucks, vans, and SUVs to its customers. Each division engages the usual business participants, overlaps management functions with other divisions, and works in basically the same functional areas as all of the others. Chevrolet, Pontiac, Oldsmobile, Cadillac, Saturn, and GMC trucks are among the company's product lines. Its few major competitors include Ford, DaimlerChrysler, Nissan, Honda, and Toyota. Each automaker sells a large portion of all the products sold in the marketplace, and each differentiates its product lines. If the automobile industry included many rather than few manufacturers of differentiated their products, we might conclude that it was characterized by _____ conditions. Answer Selected Answer: oligopoly Correct Answer: monopolistically competative · Question 26 1.7 out of 1.7 points A very important consideration in picking a legal form of business is Answer Selected Answer: How much legal liability you are willing to accept Correct Answer: How much legal liability you are willing to accept · Question 27 0 out of 1.7 points If you're asking yourself whether you want to make it easy for the ownership of your new business to change hands, which of the key questions about legal form of ownership are you posing? Answer Selected Answer: How much control do you want? Correct Answer: Should it be possible for the business to continue without you? · Question 28 1.7 out of 1.7 points Which of the following is not an advantage of a partnership (relative to a sole proprietorship)? Answer Selected Answer: limited liability Correct Answer: limited liability · Question 29 1.7 out of 1.7 points _____ refers to the quantity of a product that sellers are willing to sell at various prices Answer Selected Answer: Supply Correct Answer: Supply · Question 30 1.7 out of 1.7 points If a country buys more goods and services than it sells over a specified period of time, it has a _______ Answer Selected Answer: trade deficit Correct Answer: trade deficit · Question 31 1.7 out of 1.7 points The purchase of one company by another with no new company being formed is called a(n) _____. Answer Selected Answer: acquisition Correct Answer: acquisition · Question 32 1.7 out of 1.7 points Herb and Betty Cogwell are husband-and-wife owners of a regional chain of restaurants with 108 employees. Recently, one of their chefs discovered some spoiled produce that had been delivered by one of the company's regular suppliers. The products were sent only to one restaurant and Herb and Betty weren't aware of the problem until two customers became ill. Why hadn't the chef reported the tainted food? He didn't see any reason for implicating the supplier, and he thought that, with the proper preparation, he could avoid any problems with it. He was, of course, wrong. Subsequently, Kari, a waitress, overheard Herb and Betty discussing the problem and was ready to report them to the authorities if they didn't take responsibility for their chef's actions. Betty and Herb should probably have created a document detailing the procedures to follow in the event of such an incident (after all, it's not an uncommon occurrence in the food-services business). Such a document is usually called a _____. Answer Selected Answer: code of conduct Correct Answer: code of conduct · Question 33 1.7 out of 1.7 points Which of these statements is true in regard to the sole proprietorship form of business? Answer Selected Answer: It makes financing more difficult Correct Answer: It makes financing more difficult · Question 34 1.7 out of 1.7 points If Cajun Chicken opens companyowned stores and restaurants in Europe, it will be engaged in _____. Answer Selected Answer: foreign direct investment Correct Answer: foreign direct investment · Question 35 1.7 out of 1.7 points The U.S. government uses _____ policy regulate the money supply and interest rates. Answer Selected Answer: monetary Correct Answer: monetary · Question 36 1.7 out of 1.7 points _____ refers to the quantity of a product that buyers are willing to purchase at various prices. Answer Selected Answer: Demand Correct Answer: Demand · Question 37 1.7 out of 1.7 points All of the following are best categorized as _____: the U.S. Postal Service, museums, and almost all colleges and universities. Answer Selected Answer: nonprofits Correct Answer: nonprofits · Question 38 1.7 out of 1.7 points Entrée Specialités, which produces food products and ships them to several independent buyers throughout Western Europe, is in the _____ business. Answer Selected Answer: exporting Correct Answer: exporting · Question 39 0 out of 1.7 points A strategic alliance between a U.S. firm and a German firm can achieve all of the following benefits except _____. Answer Selected Answer: improving products Correct Answer: guaranteeing increased market share · Question 40 1.7 out of 1.7 points The shareholders elect a ___________, a group of people who are legally responsible for governing the corporation. Answer Selected Answer: board of directors Correct Answer: board of directors · Question 41 1.7 out of 1.7 points What's the international language of business? Answer Selected Answer: English Correct Answer: English · Question 42 1.7 out of 1.7 points The study of the economy as a whole is called _____. Answer Selected Answer: macroeconomic s Correct Answer: macroeconomic s · Question 43 1.7 out of 1.7 points As factors of production, equipment, buildings, vehicles, and cash are considered _____. Answer Selected Answer: capital Correct Answer: capital · Question 44 0 out of 1.7 points The country of East Anglia exports domestically made products and imports products that aren't available locally. When exports are compared to imports, the resulting _____, which shows that more dollar value is exported than imported, reveals a(n) _____. Answer Selected Answer: balance of trade Correct Answer: balance of trade · Question 45 1.7 out of 1.7 points Because the sovereign republic of Lower Slipponia desires economic growth and increased foreign investment, the government has made great strides in improving the nation's infrastructure, including _____ Answer Selected Answer: all of these Correct Answer: all of these · Question 46 1.7 out of 1.7 points A recent trend has franchisers like Popeye's Chicken assisting their franchisees with Answer Selected Answer: obtaining loans when banks are hesistant to help new businesses. Correct Answer: obtaining loans when banks are hesistant to help new businesses. · Question 47 1.7 out of 1.7 points Who is considered hostile in a hostile takeover? Answer Selected Answer: the targeted company's management Correct Answer: the targeted company's management · Question 48 1.7 out of 1.7 points Unethical behavior in organizations can be reduced if management does all of the following except ________ Answer Selected Answer: depend totally on employee's personal ethics Correct Answer: depend totally on employee's personal ethics · Question 49 1.7 out of 1.7 points When it distributes a portion of its income to shareholders in the form of cash payments, a corporation pays out _____. Answer Selected Answer: dividends Correct Answer: dividends · Question 50 1.7 out of 1.7 points __________ are earnings distributed to shareholders by a corporation. Answer Selected Answer: dividends Correct Answer: dividends · Question 51 1.7 out of 1.7 points Mary and Diane drafted a partnership agreement for their apparel business. Which element below should not have been included? Answer Selected Answer: projected financial statements Correct Answer: projected financial statements · Question 52 1.7 out of 1.7 points Ethics refers to _____. Answer Selected Answer: the ability know right from wrong and to know when you're practicing one instead of the other Correct Answer: the ability know right from wrong and to know when you're practicing one instead of the other · Question 53 1.7 out of 1.7 points The difference between a country's total outflows and inflows of money over a period of time is its _____. Answer Selected Answer: balance of payments Correct Answer: balance of payments · Question 54 1.7 out of 1.7 points An example of a company known for responding appropriately to an ethical dilemma is __________ Answer Selected Answer: Johnson & Johnson Correct Answer: Johnson & Johnson · Question 55 0 out of 1.7 points A(n) _____ occurs when two companies join together and form a new company. Answer Selected Answer: joint venture Correct Answer: merger · Question 56 1.7 out of 1.7 points Cajun restaurants is looking to expand through franchising. In granting franchise rights, Cajun would be the _____ and the buyer would be the _____. Answer Selected Answer: franchiser Correct Answer: franchiser · Question 57 1.7 out of 1.7 points In planning a statement of core values and a code of ethics for his start up company, Gordon McDonald realized that ethical organizational activities include all of the following except _____. Answer Selected Answer: drawing up a list of product-safety standards Correct Answer: drawing up a list of product-safety standards · Question 58 1.7 out of 1.7 points _____ is a common method of protecting domestic goods and trade. Answer Selected Answer: Adding taxes to imported goods Correct Answer: Adding taxes to imported goods · Question 59 1.7 out of 1.7 points If the price of the US Dollar goes down in exchange with the Canadian dollar Answer Selected Answer: Canadians will likely buy more imports from the US. Correct Answer: Canadians will likely buy more imports from the US. · Question 60 1.7 out of 1.7 points In a _____ culture, the numerous interlocking personal and family connections that hold people together have an effect on almost all interactions. Answer Selected Answer: high-context Correct Answer: high-context Wednesday, January 11, 2012 6:04:06 PM EST OK · Question 1 1 out of 1 points When it has more than one ____, a business can operate as a partnership or a corporation. Answer Selected Answer: owner Correct Answer: owner · Question 2 1 out of 1 points The _____ section of the business plan explains why your proposed offerings are better than those of competitors and indicates what market needs will be met by your products. Answer Selected Answer: "Goods and Services" Correct Answer: "Goods and Services" · Question 3 1 out of 1 points A local bakery is acting as a _____ when it sells desserts to a restaurant. Answer Selected Answer: wholesaler Correct Answer: wholesaler · Question 4 1 out of 1 points Accounting, finance, management, marketing, and production are the _____ areas of business. Answer Selected Answer: functional Correct Answer: functional · Question 5 1 out of 1 points Which of the following is the most important question you need to ask yourself when you're thinking about starting a business? Answer Selected Answer: What will customers want to buy? Correct Answer: What will customers want to buy? · Question 6 1 out of 1 points Which of the following is the most common but riskiest option in becoming a small business owner? Answer Selected Answer: starting from scratch Correct Answer: starting from scratch · Question 7 1 out of 1 points _____ tend to offer environments that appeal to individuals with the talent to invent new products or improve the way things are being done. Answer Selected Answer: Small businesses Correct Answer: Small businesses · Question 8 1 out of 1 points The _____ section of the business plan describes the purpose of the proposed business —its reason for existence. Answer Selected Answer: "Mission Statement" Correct Answer: "Mission Statement" · Question 9 1 out of 1 points The _____ section of the business plan specifies the proposed legal form of the organization—sole proprietorship, partnership, or corporation. Answer Selected Answer: "Management Plan" Correct Answer: "Management Plan" · Question 10 1 out of 1 points The _____ section of the business plan is designed to convince the reader that the company will be operated by wellqualified and experienced people. Answer Selected Answer: "Management Plan" Correct Answer: "Management Plan" · Question 11 1 out of 1 points Which of the following is not a characteristic of an entrepreneur? Answer Selected Answer: avoids risk Correct Answer: avoids risk · Question 12 0 out of 1 points According to the WSJ article, which of the following is NOT a question you should ask before starting your own business? Answer Selected Answer: Will I be able to avoid burnout? Correct Answer: Am I willing to accept the financial risk? · Question 13 1 out of 1 points A ____ is considered a blueprint for a company. Answer Selected Answer: business plan Correct Answer: business plan · Question 14 1 out of 1 points Before asking for a $155,000 bank loan, Shelia Pataki must include a(n) _____ in her business plan. Answer Selected Answer: executive summary Correct Answer: executive summary · Question 15 1 out of 1 points Which of the following is not an important reason for preparing a business plan? Answer Selected Answer: all of the above are reasons for preparing a business plan Correct Answer: all of the above are reasons for preparing a business plan · Question 16 1 out of 1 points Which of the following is not a reason that many business fail? Answer Selected Answer: they focus on the customer rather than their product or service Correct Answer: they focus on the customer rather than their product or service · Question 17 1 out of 1 points As a business owner, you're in charge and can decide when and where you want to work. This managerial freedom best reflects the _____ advantage of small business ownership. Answer Selected Answer: lifestyle Correct Answer: lifestyle · Question 18 1 out of 1 points Entrepreneurs usually start _____, beginning with _____ resources. Answer Selected Answer: small / limited Correct Answer: small / limited · Question 19 1 out of 1 points According to the Small Business Administration, one of the most common reasons for starting a business is to _____. Answer Selected Answer: be your own boss Correct Answer: be your own boss · Question 20 1 out of 1 points The most important step in the process of starting a business is _____ Answer Selected Answer: creating a business plan Correct Answer: creating a business plan · Question 21 1 out of 1 points Manufacturing is primarily the domain of _____ businesses. Answer Selected Answer: large Correct Answer: large · Question 22 1 out of 1 points Which of the following is not a criteria used by the SBA in defining a small business? Answer Selected Answer: has fewer than 300 employees Correct Answer: has fewer than 300 employees · Question 23 1 out of 1 points Which of the following topics is/are included in the "Marketing" section of the business plan? Answer Selected Answer: promotion Correct Answer: promotion · Question 24 1 out of 1 points Which of the following best describes entrepreneurs? Answer Selected Answer: They're risk takers who can adjust to changing situations. Correct Answer: They're risk takers who can adjust to changing situations. · Question 25 0 out of 1 points Which of the following questions is addressed in the business plan section entitled "Description of Proposed Business"? Answer Selected Answer: What goods or services will the business provide? Correct Answer: All of these. · Question 26 1 out of 1 points If you run a _____, you may find that you must adhere to certain rules even if you disagree with some of them. Answer Selected Answer: franchise Correct Answer: franchise · Question 27 1 out of 1 points The Small Business Administration defines a small business as one with 500 or fewer _____. Answer Selected Answer: employees Correct Answer: employees · Question 28 1 out of 1 points Donna Graves has just completed research to determine the types of advertising to use in her proposed business. She will discuss advertising under the _____ heading in the "Marketing" section of her business plan. Answer Selected Answer: "Promotion" Correct Answer: "Promotion" · Question 29 0 out of 1 points Which of the following business options makes it easiest for the owner to predict future business success? Answer Selected Answer: buying an existing business Correct Answer: buying a franchise · Question 30 1 out of 1 points The _____ section of the business plan describes the fundamental beliefs about what is and isn't appropriate in conducting company activities. Answer Selected Answer: "Core Values" Correct Answer: "Core Values" · Question 31 1 out of 1 points To succeed in a business, a new owner must understand _____. Answer Selected Answer: the principles of cash flow Correct Answer: the principles of cash flow · Question 32 1 out of 1 points A franchise business is appealing because franchisers _____. Answer Selected Answer: provide a proven business model Correct Answer: provide a proven business model · Question 33 1 out of 1 points In order to meet the financial needs for future business growth as well as current demands, TruWood Cabinet Makers must secure a business loan of $125,000 from a local bank. The loan committee has asked owner and general manager Jarret Jones to write a comprehensive business plan that meets all of First Security Bank's requirements for such a large loan. After a lot of research and careful writing, the plan is constructed and ready for presentation to the loan committee. The dollars and cents of the business plan are especially important to loan committees. Jones is well aware that an entrepreneur must show how, when, and why the business will make a profit. He thus ensures that his _____ section details his startup costs and sources of funding, his projections of sales revenue, cost of goods sold, operating and financing expenses, profits, and his forecasts of cash flow. Answer Selected Answer: "Financial" Correct Answer: "Financial" · Question 34 1 out of 1 points Managing the money that comes in and goes out of a business means managing _____. Answer Selected Answer: cash flow Correct Answer: cash flow · Question 35 1 out of 1 points The monthly fee that a franchisee must pay to keep the company's trade name is called a(n) _____. Answer Selected Answer: royalty fee Correct Answer: royalty fee · Question 36 1 out of 1 points While many _____ ventures are based on innovative ideas, others revolve around improvements to existing goods or services. Answer Selected Answer: entrepreneurial Correct Answer: entrepreneurial · Question 37 0 out of 1 points Clarke Santiago and his wife Teresa, parents of two children, opened a buffet restaurant last year. They've been so successful with their family-style atmosphere that some investor friends have offered funding to expand into two additional locations. The investors also want to consider opening several more restaurants each year. After thinking it over, the Santiagos decided to stick with one restaurant and add catering services —a move that should provide them with a satisfactory income. The Santiagos' business is a good example of a _____. Answer Selected Answer: sole proprietorship Correct Answer: lifestyle business · Question 38 1 out of 1 points A(n) _____ is someone who identifies a business opportunity and assumes the risk of creating and running a business to take advantage of it. Answer Selected Answer: entrepreneur Correct Answer: entrepreneur · Question 39 1 out of 1 points The question "What is the outlook for the industry?" i