Midterm

Question 1

Proxy

Answer 1

A legal form listing issues to be decided at a stockholders’ meeting and enabling stockholders to transfer their voting rights to some other individual or individuals

Question 2

Dumping

Answer 2

Exportation of large quantities of a product at a price lower than that of the same product in the home market

Question 3

Consumer goods

Answer 3

Drill press = nonconsumer goods

Question 4

Embargo

Answer 4

A complete halt to trading with a particular nation or in a particular product

Question 5

Quota

Answer 5

A limit on the amount of a particular good that may be imported into a country during a given period of time

Question 6

Social responsibility

Answer 6

The recognition that business activities have an impact on society and the consideration of that impact in business decision making

Question 7

What is the ultimate purpose of a corporation

Answer 7

Make money by providing goods or services that satisfy the needs of a consumer

Question 8

Corporation

Answer 8

An artificial person created by law with most of the legal rights of a real person, including the rights to start and operate a business, to buy or sell property, to borrow money, to sue or be sued, and to enter into binding contracts

Question 9

Non-profit

Answer 9

A corporation organized to provide a social, educational, religious, or other service rather than to earn a profit

Question 10

Service economy

Answer 10

An economy in which mote effort is devoted to the production of services than to the production of goods

Question 11

Limited liability company

Answer 11

A form of business ownership that combines the benefits of a corporation and a partnership while avoiding some of the restrictions and disadvantages of those forms of ownership

Question 12

Limited partnership

Answer 12

A person who invests money in a business but has no management responsibility or liability for losses beyond the amount he or she invested in the partnership

Question 13

Partnership

Answer 13

A voluntary association of two or more persons to act as co-owners of a business for profit

Question 14

Oligopoly

Answer 14

A market or industry in which there are few sellers

Question 15

Demand

Answer 15

The quantity of a product that buyers are willing to purchase at each of various prices

Question 16

Supply

Answer 16

The quantity of a product that producers are willing to seek at each of various prices

Question 17

Monetary policies

Answer 17

Federal reserves decisions that determine the size of the supply of money in the nation and the level of interest rates

Question 18

Fiscal policies

Answer 18

Government influence on the amount of savings and expenditures; accomplished by altering the tax structure and by changing the levels of government spending

Question 19

World trade organization (WTO)

Answer 19

Powerful successor to GATT that incorporates trade in goods, services, and ideas

Question 20

Licensing

Answer 20

A contractual agreement in which one firm permitted another to produce and market its product and use its brand name in return for a loyalty or other compensation

Question 21

Letter of credit

Answer 21

A legal document issued by a bank or other financial institution guaranteeing to pay a seller a staged amount for a specified period of time

Question 22

How do you calculate profit?

Answer 22

Sales - expenses = profit

Question 23

Open stock

Answer 23

A corporation whose stock can be bOught and sold by any individual

Question 24

Closed stock

Answer 24

Stock that is owned by relatively few people and is not sold to the general public

Question 25

Alien corporation

Answer 25

A corporation chartered by a foreign government and conducting business in the United States

Question 26

Ethics

Answer 26

The study of right and wrong and of the morality of the choices individuals make

Question 27

Common stock

Answer 27

Stock owned by individuals or firms who may vote on corporate matters but whose claims on profits and assets are subordinate to the claims of others

Question 28

Dividend

Answer 28

A distribution of earnings to the stockholders of a corporation

Question 29

Federal trade commission (FTC)

Answer 29

A five member committee charged with the responsibility of investigating illegal trade practices and enforcing antitrust laws

Question 30

Absolute advantage

Answer 30

The ability to produce a specific product more efficiently than any other nation

Question 31

Comparative advantage

Answer 31

The ability to produce a specific product more efficiently than any other product

Question 32

Social audit

Answer 32

A comprehensive report of what an organization has done and is doing with regard to social issues that affect it

Question 33

Whistle-blowing

Answer 33

Informing the press or government officials about unethical practices within ones organizations