Cheat Sheet for Data Mining for
Business and Governance Exam
T/F: A democracy is a political system in which all citizens take part in making the rules
that govern them - answers True
T/F: Democratic socities do not usually have a market economy - answers False
T/F: A totalitarian political system usually has a dictatorship in which the military makes
all the decisions - answers False
T/F: Most countries have either a pure democratic system or a pure totalitarian system:
mixed systems are rare - answers False
T/F: A multinational enterprise in a host country must operate within the host country's
economic, social, and legal constriants - answers True
T/F: Multinational comapanies usually do not benefit the citizens of the host country -
answers False
T/F: A multinational company needs to exhibit social responsibility in both its host
countries and its home country - answers True
Of the following characteristics, the one not typical of a democratic system is that -
answers The economy is usually a command economy
A political system in which one political party holds all the power and prohibits members
of other parties from participating is a - answers Totalitarian system
A multinational enterprise is not acting with social responsibility if it - answers Hires all
employees from the home country labor force
T/F: An outbreak of civil war within a country is an example of political risk - answers
False
T/F: Value-added tax is added only when the final product is sold to the consumer -
answers False
T/F: Import quotas are used to help protect domestic companies and foreign
competition - answers True
T/F: Customs duties are often assessed to make imported products more expensive
than similar products produced locally - answers True
, T/F: A foreign buyer who goes bankrupt before paying off his debt is an example of
political risk - answers False
T/F: Sales taxes are regressive taxes because people with lower income pay a larger
percentage of their income than do people with a higher income - answers True
T/F: Personal income taxes are progressive taxes because they are usually set up so
that the more one earns, the higher percentage of income taxes that person pays -
answers True
T/F: A double taxation avoidance treaty between two countries allows each country to
tax the multinational corporation on the same earned income - answers False
A tax holiday releases foreign investors from paying corporate income taxes - answers
True
Excise taxes are examples of payroll taxes - answers False
Tariffs, quotas, and boycotts are examples of - answers Trade barriers
Value-added and excise taxes are taxes on - answers The sale of goods
Protectionism policies such as tariffs and quotas are used because - answers The
government wants to make it harder for companies in other countries to compete with
local companies
T/F: The USA is the only country whose government provides export counseling -
answers False
T/F: Governments try to discourage other countries from investing and locating plants in
their countries by using tax incentives - answers False
T/F: A country with most favored nation status usually exports into the granting country
at lower customs duty rates than other companies - answers True
T/F: A free-trade agreement between two companies results in increased trade between
the countries because barriers to trade are removed - answers True
T/F: The main reason countries join together in a common market is to allow workers to
move freely across borders - answers False
T/F: If a US exporter has export credit insurance from EXIM, its shipments are insured
against damage or destruction caused by wars, revolution, and civil disorders - answers
True
Business and Governance Exam
T/F: A democracy is a political system in which all citizens take part in making the rules
that govern them - answers True
T/F: Democratic socities do not usually have a market economy - answers False
T/F: A totalitarian political system usually has a dictatorship in which the military makes
all the decisions - answers False
T/F: Most countries have either a pure democratic system or a pure totalitarian system:
mixed systems are rare - answers False
T/F: A multinational enterprise in a host country must operate within the host country's
economic, social, and legal constriants - answers True
T/F: Multinational comapanies usually do not benefit the citizens of the host country -
answers False
T/F: A multinational company needs to exhibit social responsibility in both its host
countries and its home country - answers True
Of the following characteristics, the one not typical of a democratic system is that -
answers The economy is usually a command economy
A political system in which one political party holds all the power and prohibits members
of other parties from participating is a - answers Totalitarian system
A multinational enterprise is not acting with social responsibility if it - answers Hires all
employees from the home country labor force
T/F: An outbreak of civil war within a country is an example of political risk - answers
False
T/F: Value-added tax is added only when the final product is sold to the consumer -
answers False
T/F: Import quotas are used to help protect domestic companies and foreign
competition - answers True
T/F: Customs duties are often assessed to make imported products more expensive
than similar products produced locally - answers True
, T/F: A foreign buyer who goes bankrupt before paying off his debt is an example of
political risk - answers False
T/F: Sales taxes are regressive taxes because people with lower income pay a larger
percentage of their income than do people with a higher income - answers True
T/F: Personal income taxes are progressive taxes because they are usually set up so
that the more one earns, the higher percentage of income taxes that person pays -
answers True
T/F: A double taxation avoidance treaty between two countries allows each country to
tax the multinational corporation on the same earned income - answers False
A tax holiday releases foreign investors from paying corporate income taxes - answers
True
Excise taxes are examples of payroll taxes - answers False
Tariffs, quotas, and boycotts are examples of - answers Trade barriers
Value-added and excise taxes are taxes on - answers The sale of goods
Protectionism policies such as tariffs and quotas are used because - answers The
government wants to make it harder for companies in other countries to compete with
local companies
T/F: The USA is the only country whose government provides export counseling -
answers False
T/F: Governments try to discourage other countries from investing and locating plants in
their countries by using tax incentives - answers False
T/F: A country with most favored nation status usually exports into the granting country
at lower customs duty rates than other companies - answers True
T/F: A free-trade agreement between two companies results in increased trade between
the countries because barriers to trade are removed - answers True
T/F: The main reason countries join together in a common market is to allow workers to
move freely across borders - answers False
T/F: If a US exporter has export credit insurance from EXIM, its shipments are insured
against damage or destruction caused by wars, revolution, and civil disorders - answers
True
