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Quiz on Untitled, created by brookepeshke on 30/03/2014.
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Quiz by brookepeshke, updated more than 1 year ago
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Created by brookepeshke about 10 years ago
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Question 1

Question
__________ is the amount a business earns after deducting what it spends for salaries and other expenses.
Answer
  • Profit
  • Revenue
  • Interest
  • Dividends

Question 2

Question
The total amount of money that businesses take in by selling goods and services is called _______.
Answer
  • profit
  • revenue
  • loss
  • retained earnings

Question 3

Question
The customers, employees, stockholders, suppliers, creditors, and others who stand to gain or lose by the policies and activities of a business represent the firm's:
Answer
  • market makers
  • economic environment
  • stakeholders
  • social mentors

Question 4

Question
Which of the following is the best example of a business whose goal is to earn a profit?
Answer
  • a community college
  • the salvation army
  • boy scouts of america
  • best buy

Question 5

Question
The resources that contribute to the creation of wealth are known as _______.
Answer
  • production coefficients
  • factors of production
  • production technologies
  • production aggregates

Question 6

Question
Two factors of production that seem to contribute the most to a nation's ability to create wealth are: land and labor.
Answer
  • land and labor
  • land and capital
  • entrepreneurship and labor
  • entrepreneurship and knowledge

Question 7

Question
he Internet and the emergence of an information-based economy are important parts of the ___________ environment in which businesses operate
Answer
  • economic and legal
  • technological
  • competitive
  • global

Question 8

Question
Which of the following best describes the main difference between B2B and B2C transactions? B2B transactions:
Answer
  • involve transactions where the buyers and sellers are both businesses, while B2C involves transactions between businesses and consumers.
  • focus on financial transactions while B2C e-commerce focuses on the sale of manufactured goods.
  • refer to business between nonprofit organizations while B2C e-commerce is carried out by business firms seeking to earn a profit.
  • involve sales in foreign markets while B2C e-commerce is restricted to domestic markets.

Question 9

Question
Empowerment means:
Answer
  • giving employees the authority to make decisions.
  • making certain that employees always defer to management when making decisions.
  • hiring employees that do not require training due to the costly nature of this activity.
  • asking employees to write the policies which govern their jobs.

Question 10

Question
During the past 150 years, the U.S. has evolved from:
Answer
  • An agrarian economy to an information technology economy.
  • A business to business economy to a business to consumer economy.
  • An agrarian economy to a manufacturing economy to a service oriented economy.
  • A manufacturing economy to a service economy, to a cottage economy, and now we are trending back to an agrarian economy.

Question 11

Question
___ is considered by some to be the father of modern economics.
Answer
  • John Maynard Keynes
  • Adam Smith
  • Thomas Carlyle
  • Thomas Maithus

Question 12

Question
Adam Smith believed that countries would prosper if businesspeople were free to start and run their own businesses. Businesspeople would make a profit by providing the goods, services and ideas that others in the economy wanted, and they would hire others to help increase those profits, leading to social and economics benefits for many. This idea was called the __________.
Answer
  • kinked demand theory
  • invisible hand
  • spending multiplier
  • demand accelerator

Question 13

Question
Under capitalism:
Answer
  • Most of the means of production and distribution are privately owned and operated for profit.
  • the primary function of the government is to distribute wealth more evenly.
  • Utilities, health care, education, and other important services are operated by the government.
  • Markets operate to carry out the decisions made by central planners.

Question 14

Question
When prices are free to adjust over time, in the long run, the market price of a good tends to:
Answer
  • Rise above the equilibrium price in the long run
  • equal the equilibrium price
  • fall below the equilibrium price in the long run
  • have no specific relationship to the equilibrium price

Question 15

Question
the presence of competition in free markets:
Answer
  • Is undesirable because it results in unnecessary duplication of efforts.
  • Usually results in better quality and lower prices.
  • Is rare, since most markets eventually evolve into monopolies.
  • Is undesirable, because one big firm can usually produce goods more efficiently than a large number of small firms.

Question 16

Question
One of the greatest concerns associated with capitalism is that:
Answer
  • it is not very successful at creating wealth
  • some businesspeople may let greed guide their behavior
  • the amount of economic free enjoyed by consumers is very limited
  • Producers are unlikely to supply the goods and services that consumers value the most.

Question 17

Question
Communism is an economic system in which:
Answer
  • the government and private citizens own equal shares of the economic resources.
  • Almost all of the productive resources are owned by private businesses.
  • Individual consumers make all economic decisions.

Question 18

Question
Today, the economic systems of most nations could most accurately be classified as:
Answer
  • Pure capitalism
  • Pure socialism
  • command nconomies
  • mixed economies

Question 19

Question
The total value of final goods and services produced within a nation's borders in a given year is known as that nation's:
Answer
  • aggregate production quota
  • aggregate domestic output
  • index of aggregate economic output
  • gross domestic product

Question 20

Question
In the U.S., the __________ has the role of managing the money supply and interest rates.
Answer
  • United States Treasury
  • Federal Reserve Bank
  • State Department
  • Federal Deposit Insurance Corporation

Question 21

Question
____________ is the selling of products to another country.
Answer
  • In-trading
  • Exporting
  • Importing
  • Dumping

Question 22

Question
_____________ is buying products from another country.
Answer
  • Importing
  • Outsourcing
  • Retailing
  • Exporting

Question 23

Question
The concept of free trade means:
Answer
  • buyers and sellers contract with each other and offer some goods at no cost.
  • goods and services can be traded freely across borders without political and/or economic barriers.
  • there is no exchange of currency for these products.
  • there is no exchange of currency, but the trading partners determine the value of the product and perform a bartering process to exchange goods.

Question 24

Question
A favorable balance of trade occurs when the value of:
Answer
  • imports equal the value of exports.
  • the cash inflows equal the value of the cash outflows
  • the value of imports is less than the value of exports
  • the value of the dollar is greater than the value of the Euro

Question 25

Question
The _____________ is the total value of a nation's exports compared to its imports measured over a specific period of time.
Answer
  • balance of payments
  • balance of trade surplus
  • balance of trade deflict
  • balance of trade

Question 26

Question
_________ is the practice of selling a product in foreign countries for a lower price than the good is sold in the producing country.
Answer
  • Deflating
  • Counter trading
  • Inflating
  • Dumping

Question 27

Question
When Anheuser-Busch/In Bev sells Budweiser beer made in St. Louis, MO., to Germany, the sales of its product would be classified as a U.S. ___________.
Answer
  • countertrade arrangement
  • export
  • import
  • foreign aid shipment

Question 28

Question
The value of goods imported into France exceeds the value of French exports. This indicates that France:
Answer
  • Has an exchange rate decrease
  • Utilizes high tariffs
  • Has a budget deficit
  • had a trade deficit

Question 29

Question
Granting a foreign company the right to manufacture your product or to use your firm's trademark in return for a fee is called:
Answer
  • A joint venture
  • A foreign subsidiary
  • Licensing
  • Outsourcing

Question 30

Question
the fee paid to a firm in a licensing agreement that gives another firm the right to manufacture their product or use its trademark is called:
Answer
  • a joint venture
  • a royalty
  • a licensee
  • an outsource agreement

Question 31

Question
A major advantage of licensing is:
Answer
  • these arrangements almost always lead to a joint venture.
  • the bulk of the revenues gained by licensee come back to the licensor
  • your company name does not need to be associated with the product in a foreign country
  • very little cost to the licensor

Question 32

Question
A disadvantage of licensing is:
Answer
  • it's very costly for the licensor
  • the licensee can decide to end the contract at a moment's notice
  • your company's image is never permitted to be associated with the product, even though you are the developer
  • the licensee may decide to use the expertise you have developed, break the agreement, and begin producing the product on his/her own.

Question 33

Question
When a company's strategy is __________ the firm makes arrangements for a foreign manufacturer to produce the product. The domestic company's label and/or trademark are attached to the completed product.
Answer
  • franchising
  • contract manufacturing
  • import sourcing
  • export trading

Question 34

Question
A __________ is a partnership in which two or more companies (often from different countries) join together and share the risk and costs in order to undertake a major project.
Answer
  • multinational cooperative
  • joint venture
  • franchisee transfer
  • recruit affiliation

Question 35

Question
A __________ represents a long-term partnership between two or more companies established to help each firm build competitive market advantages, without sharing the cost of risk.
Answer
  • multinational cooperative
  • shared venture
  • global franchise
  • strategic alliance

Question 36

Question
rm of foreign direct investment, where a domestic company purchases a company in a foreign country to produce a similar product or service is a:
Answer
  • licensor
  • joint venture
  • foreign subsidiary
  • host company

Question 37

Question
rm of foreign direct investment, where a domestic company purchases a company in a foreign country to produce a similar product or service is a:
Answer
  • licensor
  • joint venture
  • foreign subsidiary
  • host company

Question 38

Question
An advantage of forming a joint venture is:
Answer
  • no shared costs of risks
  • a perpetual arrangement
  • it's a good strategy for entering new markets where you have never had a presence.
  • it's a great way to enter new markets without divulging any marketing or management strategy to the other member of the joint venture.

Question 39

Question
When foreign firms build production facilities in the United States, they are engaging in:
Answer
  • exporting
  • foreign direct investment
  • importing
  • countertrading

Question 40

Question
A benefit of contracting with export trading companies is:
Answer
  • hey are the experts in establishing trading partners abroad, and negotiating all the details in retaining customers.
  • they are experts in staying out of the financial transactions of establishing new markets.
  • They will always assume the risk if your product does not sell to the foreign customer.
  • They keep you legal because they serve as the franchisor and make certain that your products meet ISO requirements.

Question 41

Question
In the Connecting Across Borders box titled "McDonald's: Over 100 Cultures Served" McDonald's, the largest food franchise in the world, continues to tweak its business and marketing model to appeal to the tastes of the markets in the 117 countries that it serves. One unique product offering adopted in Hong Kong is:
Answer
  • Chinese barbeque, for which the local market usually pays three times what McDonald's is charging.
  • extending similar play structures that it is known for in the U.S., but with Chinese dragons and other more familiar imaginary characters suitable to the local market.
  • international clothing that suits the international market, a place where east meets west.
  • McWeddings, which cater to couples who want a wedding package without going into debt.

Question 42

Question
A fast-growing form of foreign direct investment is sovereign wealth funds (SWFs). Why do these investments by governments with surplus cash flows worry trade experts?
Answer
  • SWFs invest in high risk start-ups with no proven history of producing goods and services that developing or developed countries need. They may likely undermine the years of development of growing economies.
  • SWFs have a greater risk of going bankrupt than other investments because governments are not good at running businesses.
  • Some fear that governments investing their SWFs in large firms may gain control of natural resources, sensitive technologies, and the decision making of management.
  • some trading experts believe that SWFs are supported by terrorist organizations, and their strategy is an indirect way to undermine the creation of U.S. jobs.

Question 43

Question
Which of the following terms describes the set of values, beliefs, rules, language, and institutions held by a specific group of people?
Answer
  • culture
  • ethnocentricity
  • institutional society
  • social myopia

Question 44

Question
which of the following represents the value of one nation's currency relative to the currencies of another country?
Answer
  • euro rate
  • currency rate
  • exchange rate
  • standard of living

Question 45

Question
which of the following represents the value of one nation's currency relative to the currencies of another country?
Answer
  • euro rate
  • currency rate
  • exchange rate
  • standard of living

Question 46

Question
In an effort to protect domestic jobs, some countries will place a limit on the number of certain types of products that can be imported. These limits are called:
Answer
  • revenue tariffs
  • protective tariffs
  • import quotas
  • tariffs

Question 47

Question
A(n) __________ refers to a complete ban on importing or exporting of products from a specific country.
Answer
  • absolute tariff
  • health quarantine
  • quota
  • embargo

Question 48

Question
________ refers to standards of moral behavior.
Answer
  • legality
  • responsibility
  • integrity
  • ethics

Question 49

Question
ethical behavior covers a ________ range of conduct than legal behavior.
Answer
  • wider
  • more limited
  • smaller
  • less demanding

Question 50

Question
Many Americans define ethical behavior according to the situation in which they find themselves. This suggests that there may be situations where ________ to cheat, steal, or lie.
Answer
  • it is absolutely wrong
  • it might be OK
  • business people are expected
  • capitalism forces people

Question 51

Question
When WorldCom used intentional accounting irregularities to make the company look more profitable than it actually was, it:
Answer
  • provided its stockholders profit through a tax-loophole
  • acted in an acceptable business manner
  • engaged in illegal behavior
  • executed its responsibility to its owners

Question 52

Question
Which of the following terms describes someone who reports illegal or unethical behavior?
Answer
  • whisterblower
  • horn blower
  • watch tower sentinel
  • integrity watchdog

Question 53

Question
corporate social responsibility describes the firm's:
Answer
  • exclusive responsibility to its stockholders.
  • ability to plan for the unexpected.
  • commitment to a management training program.
  • concern for the welfare of society

Question 54

Question
Going green means:
Answer
  • increased global warming.
  • increasing one's bottom line, before any other social considerations.
  • increasing one's carbon footprint
  • increasing one's initiatives toward a concern for the environment.

Question 55

Question
The social audit is:
Answer
  • a company report that always include a net social contribution.
  • a government mandated report required of all firms who have a business license.
  • a company report that measures the firm's social contributions inside and outside of the firm.
  • a recent development that creates a ratio to compare a firm's corporate philanthropy to its profits.

Question 56

Question
According to the Connecting Across Borders box, which of the following is true?
Answer
  • Corporate ethics are intended to be consistent with cultural ethics.
  • Corporate ethics have priority over corporate profit.
  • corporate profits have priority over corporate ethics.
  • Corporate ethics can clash with cultural ethics.

Question 57

Question
Sharon, a CPA for a large firm noticed that the company's accounting records drastically overstated the amount of inventory on hand, which led to overstating the assets of the firm. Initially, she brought it to the attention of her supervisor, but when nothing was done to correct the mistake in a timely manner; she decided the best course of action was to report it to the appropriate government official. Although her actions took her outside the company, she was counting on current law, under the ____________ to protect her against company retaliation.
Answer
  • Cellar-Kefauver Act
  • Sarbanes-Oxley Act
  • Robinson-Patman act
  • sherman act

Question 58

Question
A ___________ is a form of business that is owned, and usually managed, by one person.
Answer
  • closed corporation
  • subchapter S corporation
  • sole proprietorship
  • limited partnership

Question 59

Question
One of the major disadvantages of a sole proprietorship is the:
Answer
  • Possibility of disagreements between owners.
  • Unlimited liability the owner has for the debts of the firm.
  • Fact that any income earned by this type of business is taxed twice.
  • High cost of starting or ending the company.

Question 60

Question
In a sole proprietorship, the profits earned by the business are:
Answer
  • Taxed as income for the business, but is exempt from the personal income tax paid by the owner.
  • Taxed at the lowest corporate rate.
  • the property of the owner, except for taxes owed to the government.
  • tax-free if the appropriate exemption is filed with the local government.

Question 61

Question
A type of partnership called a ___________ acts much like a corporation and is traded on stock exchanges, but it is taxed like a partnership with profits passing through to the owners and taxed as the owner's personal income.
Answer
  • limited partnership
  • combined general partnership
  • cooperative partnership
  • master limited partnership

Question 62

Question
A(n) ___________________ is a state-chartered legal entity with authority to act and to have liability separate from its owners.
Answer
  • limited partnership
  • conventional corporation
  • unlimited partnership
  • nonprofit organization

Question 63

Question
Which of the following is an advantage of the corporate form of business when compared to sole proprietorships and partnerships?
Answer
  • Ease of formation
  • lower taxes
  • simplified paperwork
  • limited liability of owners

Question 64

Question
Which of the following is normally considered a disadvantage of the corporate form of business?
Answer
  • Unlimited liability of owners.
  • difficult transfer of ownership
  • limited life
  • double taxation of earnings

Question 65

Question
The board of directors for a corporation is elected by its:
Answer
  • creditors
  • stockholders
  • managers
  • employees

Question 66

Question
one reason many companies do not organize themselves as an S corporation is that this form of business:
Answer
  • is subject to a higher tax rate than a general partnership
  • does not provide owners with limited liability
  • has a special eligibility restriction, wich many businesses are unable to meet
  • is much more difficult to set up than C corporations

Question 67

Question
"Double taxation" means:
Answer
  • If stockholders decide to sell their shares, they are subject to paying twice the amount of taxes on any capital gains.
  • as the owner of the company, you pay twice the amount in employment taxes on yourself, as you do on your employees.
  • Corporations pay taxes on their profits. If they distribute after-tax profits to the stockholders, the stockholders also pay taxes on the distribution.
  • If the corporation doubles its profits from the previous year, the firm's tax rate (the percentage it pays in taxes) will also double.

Question 68

Question
A ____________ is two firms combining to form one company.
Answer
  • joint tenancy
  • tenancy in common
  • merger
  • leveraged buyout

Question 69

Question
A(n) _________ occurs when one company buys the property and obligations of another company.
Answer
  • cooperative
  • hostile takeover
  • leveraged buyout
  • acquisition

Question 70

Question
Three types of corporate mergers are:
Answer
  • Economic, geographic, and financial.
  • Vertical, horizontal, and conglomerate.
  • Flexible, differentiated, and conditional.
  • Explicit, implicit, and intrinsic.

Question 71

Question
Three types of corporate mergers are:
Answer
  • Economic, geographic, and financial.
  • Vertical, horizontal, and conglomerate.
  • Flexible, differentiated, and conditional.
  • Explicit, implicit, and intrinsic.

Question 72

Question
When two companies in the same industry agree to become one firm, the result is called a:
Answer
  • vertical merger
  • joint venture
  • monopoly
  • horizontal merger

Question 73

Question
When two companies in completely unrelated industries agree to become one firm, the result is called a:
Answer
  • vertical merger
  • joint venture
  • conglomerate merger
  • horizontal merger

Question 74

Question
One result of taking a firm private is:
Answer
  • the firm's stock is no longer available for purchase on the open market
  • managers lose some control as the number of stockholders increases
  • the public image of the firm will suffer
  • the firm will have access to more capital

Question 75

Question
A ___________ is an arrangement whereby someone with proven idea for a business sells the rights to use the business model, to sell a product or service to others in a given territory.
Answer
  • conditional grant
  • franchise agreement
  • trade contract
  • extended ownership agreement

Question 76

Question
A person who buys the right to use a business name and sell a product within a given territory is called a:
Answer
  • stockholder
  • franchisee
  • limited franchisor
  • venture capitalist

Question 77

Question
One reason franchises have become so popular is that this arrangement provides the franchisee with:
Answer
  • a nationally recognized name and product
  • a low cost way to start a business
  • limited liability
  • the right to retain all profits earned by their franchise

Question 78

Question
Entrepreneurship is:
Answer
  • managing businesses for others.
  • a controlling interest in the ownership of a corporation.
  • managing businesses that operate in multiple countries
  • accepting the risk of starting and running a business.

Question 79

Question
Business owners who prefer to maintain their businesses at a manageable size are called:
Answer
  • macropreneurs.
  • intrapreneurs.
  • micropreneurs.
  • home workers

Question 80

Question
a creative person working within a corporation to launch new products and generate new profits is known as a(n):
Answer
  • arbitrator
  • micropreneur
  • macropreneur.
  • intrapreneur.

Question 81

Question
a creative person working within a corporation to launch new products and generate new profits is known as a(n):
Answer
  • arbitrator
  • micropreneur
  • macropreneur.
  • intrapreneur.

Question 82

Question
Enterprise zones are specific geographic areas that:
Answer
  • the government has set aside for major corporations that promise to spend at least $10 million to create new jobs.
  • attract business investment by offering lower taxes and government support for development.
  • the government has recognized as having the fastest growth rates in the country.
  • are characterized by government ownership of small businesses.

Question 83

Question
Business incubators are usually government-funded facilities intended to:
Answer
  • provide health care benefits for small business owners and their families.
  • offer startup firms low-cost office space and basic business services
  • help rebuild the nation's infrastructure
  • assist foreign investors in identifying business opportunities in the U.S.

Question 84

Question
Historically entrepreneurs in the U.S.
Answer
  • created wealth for themselves, but have had a minor impact on the economy as a whole.
  • started many small firms that later became major corporations employing thousands of workers.
  • experienced success only when they worked in partnership with the federal government.
  • played an important role, but are less important now in creating jobs and wealth.

Question 85

Question
Affiliate marketing is a web-based business strategy that:
Answer
  • relies on customers that enter the sites of large companies such as GAP™ and Nike™.
  • asks you to offer the names and emails of ten of your friends who may be interested in the products or services the web-site is selling.
  • is currently illegal, but difficult to stop.
  • Rewards individuals who are willing to link a company's website to their blog or social network page.

Question 86

Question
Small Business Administration defines a small business as a firm that:
Answer
  • has fewer than 100 partners
  • is independently owned bot not dominant in its industry
  • is dominant in its industry, but small in the numbers of works it employs
  • has annual receipts of more than a specified amount demanding upon the industry

Question 87

Question
According to SBA guidelines, a manufacturing firm with 1,000 employees:
Answer
  • would be classified as a large firm in the industrial sector
  • may be classified as a small business depending upon the size of other firms in the industry.
  • is too small to achieve the efficiencies of large scale production.
  • is classified as an S corporation

Question 88

Question
Which of the following statements accurately depicts an advantage that small business has over big business?
Answer
  • if the small business owner can project his business as being big, if not very similar to big businesses that sell in the same industry, then he will realize a significant advantage.
  • The size of the business (small being better in this case) is an important consideration in the management of legal, payroll, and tax concerns
  • A small business can maneuver and change quicker than most large businesses can. It can react to market conditions and customer concerns much faster.
  • The slower pace of small businesses translates into better quality for its customers.

Question 89

Question
Two key management functions that need particular attention when starting a business are:
Answer
  • human relations and accounting
  • planning and financing
  • marketing and public relations
  • staffing and controlling

Question 90

Question
A __________ is a written document that details the business idea, the target market and the business's competitive advantage, financial resources available for the business, and the qualification of the management.
Answer
  • feasibility product
  • marketing plan
  • business plan
  • statement of intent

Question 91

Question
________ are private individuals who invest their own money in potentially hot new companies before these firms become larger, publicly traded companies.
Answer
  • leveraged buyout specialists
  • angel investors
  • venture investors
  • corporate raider investors

Question 92

Question
A firm or individual providing financial capital to small businesses in exchange for an ownership stake in the company is called a:
Answer
  • corporate raider
  • takeover specialist
  • financial capitalist
  • venture capitalist

Question 93

Question
Which of the following government agencies is responsible for encouraging the development of small business?
Answer
  • small business administration
  • federal trade comission
  • entrepreneur assistance center
  • federal microloan authority

Question 94

Question
A Small Business Investment Company (SBIC) is a(n):
Answer
  • agency of the federal government that loans money to high tech firms.
  • private investment company that is licensed by the SBA to make loans to small businesses.
  • private firm that offers loans to small businesses in return for a share of ownership in the firm.
  • agency set up by state governments to provide managerial advice and support to small businesses.

Question 95

Question
One of the best places for young entrepreneurs to start shopping for a SBA loan is a:
Answer
  • Small Business Development Center.
  • financial institution specializing in business loans.
  • college or university financial aid office
  • the internet webpage of the venture capitalists association

Question 96

Question
Labels Plus, LLC, exports specialty printing equipment for the labeling, flexible packaging, and carton industry. Due to increased support from _______, this company's sales to Brazilian companies and other global opportunities have significantly increased.
Answer
  • its newly revised web site
  • department of Commerce's Bureau of Industry and Security
  • the fda
  • local politicians
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