Unit One Test

Question 1

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

Answer 1

Ethics

Question 2

The application of moral standards to business situations.

Answer 2

Business ethics

Question 3

Provides sweeping new legal protection for employees who report corporate misconduct.

Answer 3

Sarbanes-Oxley Act of 2002

Question 4

A guide to acceptable and ethical behavior as defined by the organization.

Answer 4

Code of ethics

Question 5

Informing the press or government officials about unethical practices within one’s organization.

Answer 5

Whistle-Blowing

Question 6

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

Answer 6

Social responsibility

Question 7

A Latin phrase meaning “let the buyer beware”

Answer 7

Caveat emptor

Question 8

The view that society will benefit most when business is left alone to produce and market profitable products that society needs.

Answer 8

Economic model of social responsibility

Question 9

The concept that business should emphasize not only profits but also the impact of its decisions on society.

Answer 9

Socioeconomic model of social responsibility

Question 10

A plan designed to increase the number of minority employees at all levels within an organization.

Answer 10

Affirmative action program

Question 11

A government agency with the power to investigate complaints of employment discrimination and the power to sue firms that practice it.

Answer 11

EEOC

Question 12

All activities undertaken to protect the rights of consumers

Answer 12

Consumerism

Question 13

A racial, religious, political, national, or other group regarded as different from the larger group of which it is a part and that is often singled out for unfavorable treatment.

Answer 13

Minority

Question 14

Workers with little education or vocational training and a long history of unemployment.

Answer 14

Hard-core unemployment

Question 15

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

Answer 15

Social Audit

Question 16

Green Marketing is the process of creating, making, delivering, and promoting products that are green.

Answer 16

False

Question 17

Recycling is the converting of used materials into new products or components.

Answer 17

True

Question 18

The EPA is a federal agency that was created to enforce laws designed to protect the environment.

Answer 18

True

Question 19

Legislation and regulations play a crucial role in pollution control.

Answer 19

True

Question 20

Businesses and corporations do not have any pollution today.

Answer 20

False

Question 21

Unlike bullying, sexual harassment is illegal.

Answer 21

True

Question 22

People are not entitled to be fully informed about their rights as consumers.

Answer 22

False

Question 23

Consumers are entitled to convenience, courtesy, and responsiveness from manufactures and sellers of consumer products.

Answer 23

True

Question 24

Consumers have access to complete information about a product before they buy it.

Answer 24

True

Question 25

False and misleading advertising is illegal and unethical.

Answer 25

True

Question 26

All business activities that involve exchanges across national boundaries.

Answer 26

International Business

Question 27

Selling and shipping raw materials or products to other nations

Answer 27

Exporting

Question 28

Purchasing raw materials or products other nations and bringing them into one's own country

Answer 28

Importing

Question 29

The total value of a nation's exports minus the total value of its imports over some period of time

Answer 29

Balance of trade

Question 30

A negative balance of trade

Answer 30

Trade deficit

Question 31

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

Answer 31

Import quota

Question 32

A tax levied on a particular foreign product entering a country

Answer 32

Import duty (TARIFF)

Question 33

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

Answer 33

Dumping

Question 34

A nontax measure imposed by a government to favor domestic over foreign suppliers

Answer 34

Nontariff barrier

Question 35

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

Answer 35

Embargo

Question 36

A restriction on the amount of a particular foreign currency that can be purchased or sold

Answer 36

Foreign-exchange control

Question 37

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

Answer 37

Licensing

Question 38

An international organization of 159 nations dedicated to reducing or eliminating tariffs and other barriers to world trade

Answer 38

General Agreement on Tariffs and Trade (GATT)

Question 39

An organization of nations formed to promote the free movement of resources and products among its members and to create common economic policies.

Answer 39

Economic Community

Question 40

An international organization of 159 nations dedicated to reducing or eliminating tariffs and other barriers to world trade

Answer 40

General Agreement on Tariffs and Trade (GATT)

Question 41

A partnership formed to create competitive advantage on a worldwide basis

Answer 41

Strategic Alliance

Question 42

A firm that operates on a worldwide scale without ties to any specific nation or region

Answer 42

Multinational enterprise

Question 43

An independent agency of the U.S government whose function is to assist in financing the exports of American firms

Answer 43

Export-Import Bank of the United States

Question 44

An internationally supported bank that provides loans to developing countries to help them grow

Answer 44

Multilateral development bank (MDB)

Question 45

An international bank with 188-member nations that makes short-term loans to developing countries experiencing balance of payment deficits

Answer 45

International Monetary Fund

Question 46

Joint ventures are a partnership formed to achieve a specific goal or to operate for a specific period of time.

Answer 46

True

Question 47

Trading companies provide a link between buyers and sellers in different countries.

Answer 47

True

Question 48

Multinational enterprises are firms that only state with in national borders.

Answer 48

False

Question 49

Tariffs are a type of tax.

Answer 49

True

Question 50

Cultural barriers can impede acceptance of products in foreign countries.

Answer 50

True