BA133 Part 1

1.

1 point

In addressing social responsibility, managers must consider their firms' relations with

employees

owners

customers

the community

All of the above

2.

1 point

Another often-used name for a stockholder is

unit holder

vote holder

percentage holder

shareholder

value holder

3.

1 point

The dimensions of social responsibility include economic, legal, ethical, and voluntary responsibilities.

True

False

4.

1 point

Financial management is concerned with obtaining money and using it effectively.

True

False

5.

1 point

Ethics and social responsibility mean the same thing.

True

False

6.

1 point

Differences in spoken language and body have no impact on international business.

True

False

7.

1 point

The purchase of goods and services from foreign sources is called

importing

exporting

natural advantage

comparative advantage

batering

8.

1 point

Increasingly, consumers are choosing not to patronize businesses that receive negative publicity concerning misconduct.

True

False

9.

1 point

Codes of ethics foster ethical behavior by

expanding the opportunity to behave ethically by providing rewards for following the rules.

limiting the opportunity to behave unethically by providing punishments for violations of the rules and standards.

limiting the opportunity to behave unethically by providing rewards for violations of the rules and standards.

expanding the opportunity to behave ethically by providing punishments for following the rules.

All of the above

10.

1 point

Because it virtually controls the world's deposits of gem-quality diamonds, DeBeers Consolidated Mines, Ltd. has a(n)

comparative advantage

balance of payment

advantage based on efficient production

trade deficit

absolute advantage

11.

1 point

All of the following are arguments in favor of social responsibility except

businesses created many of the problems, so they should participate in finding solutions

as members of society, businesses should do their fair share

businesses may lose their focus on profit-making

businesses that are socially responsible prevent more government regulation

the survival of a healthy economy depends on businesses being socially responsible

12.

1 point

A strategic alliance is a partnership formed to create competitive advantage on a worldwide basis.

True

False

13.

1 point

When a nation takes more from taxes than it spends, it has a budget deficit.

True

False

14.

1 point

In a general partnership, each partner is liable only for the debts he or she incurs

True

False

15.

1 point

Which of the following questions are addresses by all economic system?

What goods and services should be produced?

How much of each good and service be produced?

Who will produce the goods?

How should the goods and services be distributed?

All of the above

16.

1 point

Establishing and enforcing ethical standards and policies within business can help reduce unethical behavior by prescribing which activities are acceptable and which are not and by removing the opportunity to act unethically.

True

False

17.

1 point

The International Monetary Fund promotes trade among member nations by eliminating trade barriers and fostering financial cooperation.

True

False

18.

1 point

Capitalism is an economic system in which the government owns and operates basic industries while individuals own most other businesses.

True

False

19.

1 point

Which form of business organization is the least used in the U.S. ?

S-corporation

Sole proprietorship

Corporation

Franchise

Partnership

20.

1 point

The primary problem with a trade deficit is

that a country is exporting more than it is importing

that a country is spending more than saving

that a country is saving more than spending

export taxes

that more cash is leaving the country than is flowing in

21.

1 point

Studies have found a direct link between social responsibility and _____ in business

Global Warming

Declining stock prices

Ethics

Profitability

Happiness of stockholders

22.

1 point

Because many countries do not permit foreign companies to purchase and operate facilities in their countries, a company wishing to do business in such a country may share the business costs with the host country by forming a

sole proprietorship

joint venture

contract manufacturing arrangement

direct investment

corporation

23.

1 point

All of the following are advantages of a sole proprietorship except

unlimited liability

secrecy

ease of formation

limited government regulation

control of the business

24.

1 point

If you want to go into business for yourself, the easiest way is a sole proprietorship.

True

False

25.

1 point

Owners always manage their business.

True

False

26.

1 point

Under a capitalist system, goods and services provided are determined by all of the following except:

competition

consumer demand

supply

business owned by the government

market forces

27.

1 point

The focus of all marketing activities is consumer satisfaction.

True

False

28.

1 point

In most statism corporations must have "corporation," "incorporated," or "limited" in their names to show that their owners have limited liability.

True

False

29.

1 point

A business's responsibility to its owners and inverters include

protecting the owners' rights and investments

maintaining proper accounting procedures

providing all relevant information about current and projected performance of the firm

maximizing their investment in the firm

All of the above

30.

1 point

Which of the following systems has the greatest degree of competition?

Communism

Socialism

Mixed economy

Pure capitalism

Modified capitalism

31.

1 point

Business ethics refers to principles and standards that define acceptable conduct in business organizations.

True

False

32.

1 point

Customizing product, promotion, and distribution accruing to cultural, technological, and national differences indicates a

globalization strategy

multinational corporation

strategic alliance

multinational strategy

joint venture

33.

1 point

If an employee learned of a significant cost-saving idea from a coworker and then informed management of the idea without revealing its true source, then the employee would be involved in

egalitarianism

career advancement

keeping a secret

socialism

plagiarism

34.

1 point

Demand is the quantity of goods and services that consumers are willing to buy at different prices at a specific time.

True

False

35.

1 point

PepsiCo allows a Canadian firm to use its name, formula, and brands in return for a royalty. This arrangement is known as

a joint venture

direct investment

licensing

contract manufacturing

exporting

36.

1 point

A central issue of economics is how to fulfill an unlimited demand for goods and services in a world with limited resources.

True

False

37.

1 point

Corporations distribute profit to their owners in the form of

retained earnings

tax-free dividends

interest

dividends

brides

38.

1 point

Which of the following is not an area of environmental concern in society today?

The hard-care unemployed

Waster disposal

Animal rights

Business practices practices that harm endangered wildlife

Land pollution

39.

1 point

A group of nations or companies that band together to act as a monopoly is known as a

conglomerate

cartel

licensee

multinational

licensor

40.

1 point

When a company decides to do business outside its own country, it must research several factors, including potential barriers to international trade. Which of the following is not a potential barrier cited in your text?

Cultural

Political

Economic

Scientific

Legal

41.

1 point

All the following are factors of production used to make goods and services except:

natural resources

financial resources

capital

customers

human resources

42.

1 point

The biggest advantage of the corporate form of ownership may be the limited liability of its owners

True

False

43.

1 point

Nations trade with other nations to obtain resources that would otherwise be unavailable to them.

True

False

44.

1 point

The goal of business activities is profit.

True

False

45.

1 point

Competition fosters efficiency because

the government regulates prices

businesses can set whatever prices they want.

all buyers have perfect knowledge

supply depresses prices

producers have to offer the best products at reasonable prices

46.

1 point

Licensing is a way of entering the international marketplace without spending large amounts of money abroad.

True

False

47.

1 point

Economic expansion occurs when

an economy is growing and people are spending more money

fewer goods and services are produced then consumers demand

prices begin to rise and incomes begin to fall

employment levels decline over time

a nation's standard of living drops quickly

48.

1 point

The U.S. has a trade deficit because

America imported more products than it exported

American companies sold more goods to other countries than foreign companies sold here.

American consumers stopped buying Japanese goods and services

American consumers bought far more domestic goods and services than foreign goods and services

Japan stopped exporting goods to the United States

49.

1 point

Profit is what is costs to make and sell a product.

True

False

50.

1 point

In a partnership, if the goals of one partner change, the result may be friction and even legal disputes

True

False