Intro To Business Exam 1

Front 1

Cultural diversity represents

(page 6)

Back 1

difference among people in a work force

Front 2

Mike amerson decides to start a residential landscaping business. How would this business most likely be classified?

(page 9)

Back 2

service business

Front 3

There are several types of businesses. which of the following, according to its primary business activities, would be classified as a service business?

(page 9)

Back 3

Hertz rent-a-car

Front 4

The ultimate objective of every firm such as IBM is:

Back 4

to satisfy the needs of every customer

Front 5

Shawn decides to start his own business. How likely is he to still be in business in 5 years?

(page 7)

Back 5

unlikely because half of new business fail

Front 6

Organizations that combine raw materials, machinery, and labor to produce goods are called

Back 6

manufacturing business

Front 7

when firm expenses are greater than its sale revenue, the firm has a

Back 7

loss

Front 8

______________ is the study of how wealth is created and distributed.

Back 8

Economics

Front 9

A person who risks their time, effort and money to start a business is _______________.

Back 9

entreprenuer

Front 10

An economic system is which individuals and business make the decision about what to produce and buy, and the market determines how much is sold and at what prices is called a ______________ economy.

Back 10

Market

Front 11

Examples of command economics includes:
1.
2.

Back 11

1. Socialism
2. Communism

Front 12

________________ is the application of moral standards to business situtation.

Back 12

Business ethics

Front 13

Some Enron executives were aware of the financial problems the company was facing and yet failed to reveal this information to the public. These actions taken by Enron executives were ___________.

Back 13

Unethical

Front 14

What is probably the most effective way for a company to encourage ethical behavior?

Back 14

Develop a written code of ethics for the organization

Front 15

The recognition that business activites affect society and the consideration of that impact when making business decisions is referred to as ____________.

Back 15

social responsibility

Front 16

Social responsibility is ______________________________.

Back 16

costly but provides tremendous benefits to society and the business

Front 17

A social audit is a _______________________________________.

Back 17

a report that business does and is doing about social issues.

Front 18

______________ is the ability to produce a specific product more efficently than any other product.

Back 18

Comparative advantage

Front 19

Because it controls the worlds diamond deposits, the debeers consolidated mines, ltd, has a ________________.

Back 19

Absolute advantage

Front 20

Purchasing products or materials in other nations and bringing them into one's own country is _____________.

Back 20

Importing

Front 21

The UK sells industrial supplies and materials to many nations around the world. The UK engages in _____________.

Back 21

exporting

Front 22

An unfavorable trade balance is called ______ _________.

Back 22

Trade deficit

Front 23

when a country imports more than it exports, it has ____________________.

Back 23

Unfavorable trade balance

Front 24

Another name for an import duty is a ________.

Back 24

Tariff

Front 25

The US wishes to import no more than 100 million tons of sugar from India in any given year. The type of import restriction it should impose is a ______________.

Back 25

Import Quota

Front 26

_____________ is the exporation of large quantities of a product at a price lower than that of the same product in the home market.

Back 26

Dumping

Front 27

The newest forms of international business structure developed to create competitive advantage on a worldwide basis are called

Back 27

Strategic alliances

Front 28

Which of the following is false concerning the international monetary fund?

Back 28

its loans to developing countries are interest free

Front 29

In the US, slightly over 71% of all businesses are:

Back 29

Sole Proprietorships

Front 30

Which form of business is the easiest to start?

Back 30

Sole proprietorships

Front 31

Which of the following is NOT an advantage of a sole proprietorship?

Back 31

It has unlimited liability

Front 32

The person who assumes full co-ownership of a partnership, including unlimited liability, is a

Back 32

General partner

Front 33

Roger helps his brother’s business by contributing money, but he lets his brother take care of the daily operations of the business. Roger is also protected by limited liability. Roger is a:

Back 33

Limited partner

Front 34

What is the primary reason that so many new businesses fail?

Back 34

Mismanagement resulting from lack of business know-how

Front 35

The industry concerned with the movement of goods from producer to consumer is:

Back 35

Distribution

Front 36

Which of the following statements is true regarding the profitability of new businesses?

Back 36

It may take several years for a new business to begin showing a profit

Front 37

What is a common mistake that small-business owners make when their businesses begin growing?

Back 37

They overexpand without proper planning

Front 38

Small businesses have traditionally added _____________ new jobs to the economy

Back 38

More than their proportional share of

Front 39

Large firms generally buy parts and assemblies from smaller firms because

Back 39

It is less expensive than making their own

Front 40

Which of the following statements is correct?

Back 40

The more information a manager has, the less risk there is when making a decision.

Front 41

Data that are presented in a form that is useful for a specific purpose AKA

Back 41

Information

Front 42

You are asked to make sense out of the list of students on your campus, and you organize the student population by age, major, ethnicity, and gender. You create charts and graphs to show the distribution of each of these catergories. These graphs are

Back 42

information

Front 43

On its company computer system, Gymboree has numerical and verbal descriptions about its suppliers and their prices, which as a whole is called ____________. Managers can access and use this to make decisions about suppliers.

Back 43

A database

Front 44

The purpose of ______________ is to distribute timely and useful information from both internal and external sources to the decision makers who need it.

Back 44

Management Information System

Front 45

Data collection

Back 45

is a ongoing process

Front 46

Which of the following statements is true regarding the profitability of new businesses?

Back 46

It may take several years for a new business to begin showing a profit

Front 47

What is a common mistake that small-business owners make when their businesses begin growing?

Back 47

They overexpand without proper planning

Front 48

Small businesses have traditionally added _____________ new jobs to the economy

Back 48

More than their proportional share of

Front 49

Large firms generally buy parts and assemblies from smaller firms because

Back 49

It is less expensive than making their own

Front 50

Which of the following statements is correct?

Back 50

The more information a manager has, the less risk there is when making a decision.

Front 51

Data that are presented in a form that is useful for a specific purpose AKA

Back 51

Information

Front 52

You are asked to make sense out of the list of students on your campus, and you organize the student population by age, major, ethnicity, and gender. You create charts and graphs to show the distribution of each of these catergories. These graphs are

Back 52

information

Front 53

On its company computer system, Gymboree has numerical and verbal descriptions about its suppliers and their prices, which as a whole is called ____________. Managers can access and use this to make decisions about suppliers.

Back 53

A database

Front 54

The purpose of ______________ is to distribute timely and useful information from both internal and external sources to the decision makers who need it.

Back 54

Management Information System

Front 55

Data collection

Back 55

is a ongoing process

Front 56

Profit is the payment business owners receive for assuming the risks of ownership.

Back 56

TRUE

Front 57

An ethical decision or action is one that is right according to some standard of behavior.

Back 57

TRUE

Front 58

The lesser the competition, the greater the choice available to consumers.

Back 58

FALSE

Front 59

A firm’s social responsibility program will be ineffective if it has less than the total commitment of the company’s top business officials

Back 59

TRUE

Front 60

Absolute advantage is the ability to produce a specific product more efficiently than any other nation.

Back 60

FALSE

Front 61

If a country imports more than it exports, its balance of trade is said to be favorable

Back 61

FALSE

Front 62

The US has enjoyed a trade surplus during the last two decades.

Back 62

FALSE

Front 63

Political considerations usually are involved in a country’s decision to impose a trade embargo.

Back 63

TRUE

Front 64

Cultural barriers can impede acceptance of products in foreign countries

Back 64

TRUE

Front 65

The corporation, partnership, and sole proprietorship are the most common forms of business ownership in the US

Back 65

TRUE

Front 66

Every partnership must have at least one limited partner

Back 66

FALSE

Front 67

Compared to a corporation, a partnership is more difficult and expensive to establish.

Back 67

FALSE

Front 68

The SBA has defined a small business as one independently owned, operated for profit and not dominant in its field.

Back 68

TRUE

Front 69

Small businesses are generally managed by professional managers.

Back 69

FALSE

Front 70

It is rare that managers of small businesses lack the management skills necessary to run their businesses.

Back 70

FALSE

Front 71

Small businesses are prone to failure.

Back 71

TRUE

Front 72

Economically, the US government is not concerned with whether or not small businesses make it.

Back 72

FALSE

Front 73

While it is possible to recruit and train employees by using the Internet, the cost makes it prohibitive.

Back 73

FALSE

Front 74

A spreadsheet program is a software package that allows the user to organize numerical data into a grid of rows and columns

Back 74

TRUE

Front 75

Globalization, convergence of technologies, and demographic forces are considered external forces that affect e-business

Back 75

TRUE

Front 76

Balance of payments is a much broader concept than balance of trade.

Back 76

TRUE