MIDTERM Flashcards
For a business, stakeholders represent
a. lenders that have provided loans. b. investors in the business. c. employees who work for the firm. d. all of the different people or groups who are affected by the business. e. suppliers that have extended credit to the firm in search of profit for the firm..
d. all of the different people or groups who are affected by the business.
___ is the study of how wealth is created and distributed.
a. Marketing b. Capitalism c. Finance d. Business e. Economics
e. Economics
The concept of sustainability focuses on which of the following?
a. The needs of the government in the future b. The ability to maintain or improve standards of living without damaging natural resources for present and future generations c. The ability to increase profits for the present but still conserve resources for the future d. The needs of future employees e. The maximization of profits for the company and its employees
b. The ability to maintain or improve standards of living without damaging natural resources for present and future generations
The government uses tax dollars to
a. invest in foreign corporations. b. purchase resources and products needed to provide services. c. increase consumer income. d. purchase other nations. e. invest in foreign bonds.
b. purchase resources and products needed to provide services.
Monopolistic competition is a market situation in which
a. the same price is charged for all products. b. only one product is available. c. the government regulates prices. d. similar but not identical products are available. e. several identical products are available.
d. similar but not identical products are available.
If all leading corporations in the soft-drink industry merged, this would
a. create a monopoly. b. create a recession. c. encourage pure competition. d. lead to an oligopoly. e. encourage monopolistic competition.
a. create a monopoly.
Which of the following issues will not be a challenge for our economy in the years to come?
a. How can we preserve the benefits of competition? b. How can we meet the needs of the less fortunate? c. How can we conserve natural resources? d. How can individuals reinvest all the profits that have been made in the stock market as a result of the strong economy? e. How can we create a more stable economy?
d. How can individuals reinvest all the profits that have been made in the stock market as a result of the strong economy?
During 2018, Just-the-One Jewelry had sales revenues of $1,500,000. This retailer also had expenses that totaled $800,000. What is the firm’s profit or loss amount?
a. $1,500,000 b. It is impossible to calculate profit or loss with the above information. c. $2,300,000 d. $800,000 e. $700,000
700,000
Stephanie would like to study abroad for a year before graduating from college. She would like to live in a country that has experienced economic growth for at least five years. She can choose from campus abroad programs in three different countries. What could she use to measure the economic performance of the three countries?
a. Accounting processes. b. Marketing measures. c. Gross Domestic Product. d. Productivity and Gross Domestic Productivity.
Andrew and Timmy are neighbors. Andrew owns a boat but never uses it. Timmy owns a car that he no longer needs since his son left for college in another state. Andrew needs a car. Andrew and Timmy make an agreement to trade the boat for car. What is the economic term given to this kind of exchange?
a. Bargained-for exchange. b. Replevin. c. Buying and selling. d. Barter.
d. Barter.
When an individual chooses his or her ideal career, it is most likely a reflection of one’s
a. values. b. hobbies. c. skills. d. education. e. desire to be rich
a. values.
The ultimate objective of every firm, such as Apple and Starbucks, must be to
a. pay out money to cover the various expenses of doing business. b. sell either to other firms or to consumers. c. know that people generally buy a product and store it. d. satisfy the needs of its customers. e. make it impossible to satisfy customers.
d. satisfy the needs of its customers.
What are the three sets of factors that influence the standards of behavior in an organization?
a. Peer pressure, attitudes, social factors b. Historical factors, management attitudes, opportunity c. Opportunity, individual factors, social factors d. Financial factors, opportunity, morals e. Organizational norms, circumstances, morals
c. Opportunity, individual factors, social factors
What is probably the most effective way for a company to encourage ethical behavior?
a. Threaten employees with immediate termination for unethical behavior. b. Have ethics training sessions for interested employees. c. Hire employees who are ethical and in agreement with the company's views. d. Develop and enforce a written code of ethics for the organization. e. Post signs discouraging sexual harassment and discrimination.
d. Develop and enforce a written code of ethics for the organization.
Suppose a manager at the Post-it Brand has recently become aware that employees are taking office supplies home and taking longer coffee and lunch breaks than the personnel policy allows. The manager finds these are widespread practices and wants to solve the problem. The best way to do this would be to
a. change the code of ethics in the personnel policy manual to prohibit these practices. b. call the police and arrest both the "time" thieves and the office supplies thieves. c. let the union know about the problem during next year's pay negotiations. d. make the corporate culture encourage more ethical behavior. e. fire all those who have taken office supplies, and suspend those who have taken too much time.
d. make the corporate culture encourage more ethical behavior.
The recognition that business activities affect society and the consideration of that impact when making business decisions is referred to as
a. corporate ethics. b. code of ethics. c. business ethics. d. community responsibility. e. social responsibility.
e. social responsibility.
With whom does social responsibility of business have to begin?
a. Consumers b. Government c. Management d. Consumer protection groups e. Society
c. Management
By ensuring that products are safe and reliable, the Food and Drug Administration and the Consumer Product Safety Commission are taking part in a movement known as
a. consumerism. b. product activism. c. product liability management. d. socialism. e. protectionism.
a. consumerism.
Business ethics
a. is the application of moral standards to business situations. b. do not vary from one person to another. c. is well-defined rules for appropriate business behavior. d. is most important for advertising agencies. e. is laws and regulations that govern business.
a. is the application of moral standards to business situations.
Customers expect a firm’s products to
a. be profitable. b. boost sales. c. be safe, reliable, and reasonably priced. d. earn a reasonable return on investment. e. be available everywhere.
c. be safe, reliable, and reasonably priced.
Investors expect management to do all of the following except
a. increase sales. b. consult them on ethical decisions. c. make sensible financial decisions. d. increase the return to the investor. e. boost the company's profit.
b. consult them on ethical decisions.
Taking credit for others’ ideas or work or not meeting one’s commitments in a mutual agreement are ethical issues concerning
a. fairness and honesty. b. conflict of interest. c. freedom of choice. d. communications. e. organizational relationships.
e. organizational relationships.
For health-related companies such as Jenny Craig, Inc., one of the most frequent ethical issues related to communications that they face is
a. seeking FDA approval. b. deception. c. experiments on animals. d. providing too much information. e. safe packaging.
b. deception.
Over the past several decades, concern for the environment has
a. become stronger in the United States but not yet in the rest of the world. b. been carefully handled by businesses because they are the primary source of pollutants. c. been relatively steady because people expect to live in a clean and safe environment. d. increased because pollution became a threat to life and health. e. decreased because today's industrialized processes are naturally more environmentally friendly.
d. increased because pollution became a threat to life and health.
Which of the following is not one of the steps in developing and implementing a program of social responsibility?
a. Commitment of employees b. The social audit c. Commitment of top executives d. Planning e. Appointment of a director
a. Commitment of employees
A distribution of earnings to the stockholders of a corporation is a(n)
a. distributed payment. b. earnings per share. c. par distribution. d. common payment. e. dividend.
e. dividend.
A ____ is a form that enables stockholders to allow someone else to vote for them.
a. rights transfer b. voter registration c. waiver d. proxy e. dividend
d. proxy
The top governing body of a corporation is known as the
a. management. b. stockholders. c. officers. d. board of directors. e. incorporators.
d. board of directors.
Unless specified in the charter, a corporation has a
a. life of seventeen years, which is renewable. b. life of fifty years. c. legally recognized life, which varies from state to state. d. perpetual life. e. legal life of one decade.
d. perpetual life.
In many cases a limited-liability company is
a. similar to a cooperative. b. the result of a horizontal merger. c. taxed like a not-for-profit corporation. d. always used to organize charitable organizations. e. taxed like a partnership.
e. taxed like a partnership.
A hostile takeover is a situation in which
a. the targeted firm is dismantled to avoid the merger. b. stockholders are paid a golden parachute. c. the corporate raider receives a sum of money to leave the targeted firm alone. d. the management and board of directors of the targeted firm disapprove of the proposed merger. e. the government makes the decision that the corporate raider can purchase the targeted firm.
d. the management and board of directors of the targeted firm disapprove of the proposed merger.
____ is the ability to produce a specific product more efficiently than any other product.
a. Relative advantage b. Dominant advantage c. Comparative advantage d. Specialization
c. Comparative advantage
Selling and shipping raw materials or products to other nations is called
a. deficit trading. b. tariffing. c. alien trading. d. exporting. e. importing
d. exporting.
When a country imports more than it exports, it has a(n)
a. favorable balance of trade. b. unfavorable balance of trade. c. favorable exchange role. d. trade surplus. e. favorable balance of payments.
b. unfavorable balance of trade.
Another name for an import duty is a(n)
a. tariff. b. limitation. c. quota. d. embargo. e. devaluation.
a. tariff.
___ is the exportation of large quantities of a product at a price lower than that of the same product in the home market.
a. Dumping b. Embargo c. Duty d. Dropping e. Export quota
a. Dumping
When the U.S. government will not allow meat from another country to be marketed in the United States, it is imposing a(n)
a. duty. b. devaluation. c. quota. d. tariff. e. embargo
e. embargo
The primary objective of the World Trade Organization is to
a. help underdeveloped nations increase their standard of living. b. achieve world peace. c. enforce worldwide political and trade regulations. d. remove barriers to trade worldwide. e. promote the invention of new technologies.
d. remove barriers to trade worldwide.
A ____ is a partnership formed to achieve a specific goal or to operate for a specific period of time.
a. trading company b. strategic alliance c. countertrade agreement d. licensing company e. joint venture
e. joint venture
Totally owned facilities overseas are an example of
a. roundabout investment. b. licensing. c. indirect investment. d. direct investment. e. joint venture.
d. direct investment.
