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Business Module 1 (Proctored) Exam with
Correct Answers
An entrepreneur risks both ___ and ___ in the hope of earning a profit. - Correct answer money, time The amount of goods and services that a person can buy with the money they have - Correct answer standard of living when businesses and their employees pay taxes in a community - Correct answer the quality of life is improved for many the general sense of well being in a society that includes political freedom, safety and amount of leisure is called its ___ of ____ - Correct answer quality of life what is the term for all groups that stand to gain or lose by the policies and activities of a business and whose concerns the business needs to address? - Correct answer stakeholders the interests of such stakeholders as employees, communities, suppliers, and governments may be hurt by a company’s decisions to outsource functions to other countries. the stakeholders who are most likely to benefit are - Correct answer stockholders and customers when a company contracts with another sometimes in another country to do some of its functions such as production or accounting, its known as - Correct answer outsourcing public schools and charitable organ. like the united way are examples of - Correct answer non profit organizations an organization whose function is to serve a societal need rather than make a profit for its owners is a - Correct answer nonprofit true or false: many skills needed to manage profit making oragn. are the same as those needed in managing nonprofits - Correct answer true
profit or loss is the difference between revenues and the expenses needed to run the business - Correct answer true the definition of a business is - Correct answer an organization that seeks to provide goods and services to others while operating at a profit good are ____ products such as cars, while services are ___ products such as insurance and travel - Correct answer tangible, intangible an intangible product such as health care is a - Correct answer service many small businesses fail every year - Correct answer true unlike those who work for a company, entrepeneurs - Correct answer have to provide their own vacation and health benefits the resources of land, capital, and entrepreneurship, and knowledge are - Correct answer the factors of production the business environment either encourages or discourages entrepen. which explains why some states and countries are richer than others - Correct answer true match the element of the business envir. with the correct sector legal technological social competitive - Correct answer contract laws the internet demographic changes customer service demography is the statistical study of - Correct answer the human pops characteristics such as size, density, age, gender, and income cell phones, computers, and fax machines can be categorized as technological changes that make people more productive - Correct answer true
fiscal policy is the federal governments effort to keep the economy stable by increasing or decreasing: - Correct answer government spending taxes rank the tree economic systems where the system with lease amount of govt involvement is on the top and least on bottom - Correct answer 1. capitalism
- socialism
- communism a _____ is a severe recession accompanied by deflation - Correct answer depression in socalism: - Correct answer individuals own some smaller businesses and property govt own and operates basic industries such as steel mills, utilities, or transportation having only a few sellers dominate a market indicated - Correct answer oligopoly list the four degrees of competition generally agreed on by economists, starting with the most competitive one at the top - Correct answer 1. perfect competition
- monopolistic compe
- oligopoly
- monopoly how are taxes used to influence the economy? - Correct answer they are used to stabilize the economy high taxes draw the money away from the private sector low taxes increase the profits a small business can earn in a free market, the prices of products exchanged in the market: - Correct answer are negotiated by buyers and sellers in the long run, the equilibrium price trends toward the: - Correct answer market price
On a graph showing both supply and demand curves, the intersection point between the two curves shows the: - Correct answer equilibrium point as negotiation occurs between buyers demanding products and sellers supplying products, the ____ price will be determined in the long run - Correct answer market in perfect competiton: - Correct answer there are many sellers products appear to be identical under monopolistic competition - Correct answer products are perceived as different by the buyers there are a large number of sellers in the market when there are sellers in a market and none are large enough to control the price of a product, then ____ competition exists - Correct answer perfect mixed economies: - Correct answer exist when the distribution of resources involves elements from more than one economic system have elements of ore than one system when the government spends money on such projects as roads and bridges it is expected that the money will trickle down to thecnsumers eventually leading to - Correct answer an increase in consumer spending what is the total value of final goods and services produced in the country in a given year called? - Correct answer gross domestic product ____ is the study of how society chooses to employ resources good and services and distribute them for consumption among various competing groups and individuals - Correct answer economics in a free market economy, as the price of a product increases, so will the amount supplied. why? - Correct answer high prices lead to high profits attracting new firms to the market high prices lead to increased revenues which allows firms to buy more raw materials and employ more workers
the economic system in which the govt largely determines what products get produced, who gets them, and how the economy grows is called a socialism and communism are on this one - Correct answer command economy what are the characteristics of the recovery stage of a business cycle? - Correct answer the economy stabilizes the economy starts to grow The supply concept refers to the relationship between the quantity of products produced and price. If the market price of a product increases, quantity supplied will ____. If the market price of a product decreases, quantity supplied will ______. - Correct answer increase decrease the situation in which proces are declining is called - Correct answer deflation the monthly statistic that measures the pace of inflation or deflation is called the - Correct answer CPI patterns of the rising and falling of economies over time are known as - Correct answer business cycles the operation of a nations economy as a whole is - Correct answer macroeconomics an economic system based on free markets, in which all or most of he factors of production and distribution are privately owned and operated for profit - Correct answer capitalism businesses in communist economies often have - Correct answer shortages of materials due to higher than predicted demand for a product oversupply of some because demand has been estimated incorrectly problems predicting quantities to produce a common market also called a trading bloc, is a regional group of countries with - Correct answer a common external tariff no internal tariffs
common markets are also called trading blocs - Correct answer true what agreement created a free trade area among us canada and mexico? - Correct answer North american free trade agreement (NAFTA) although the us has a market of over 300 mil people ther are over 7.7 bil potential customers in the ____ market - Correct answer global rank the strategies for reaching global markets according to the level of risk and committment lowest amount of risk & c at top - Correct answer licensing exporting franchising contract manufacturing joint ventures and strategic alliances foreign direct investment what is the global strategy in which a firm allows a foreign company to produce its product in exchange for a fee - Correct answer lisencing export assistance centers work with small and medium sized businesses who are hesitant to do - Correct answer direct exporting a contractual agree ment whereby someone with a good idea for a business sells others the rights to use the business name and sell a product or service in a given territory in a specific manner - Correct answer franchising contract manufacturing is a type of outsourcing when a ___ company produces private label goods which a ____ company then markets under its own brand name - Correct answer foreign domestic s partnership in which two or more companies often from different countries join to undertake a major project - Correct answer joint venture
advantages of doing business globally include - Correct answer bringing ideas for business in other countries to new markets finding financing for a new business in other cuntries a major benefit of ___ is that selling goods and services to other countries results in an economic boost to the us - Correct answer exporting the total value of a nations exports compared to its imports measured over a particular period is the definition of - Correct answer balance of trade a trade surplus occurs when a countrys - Correct answer exports are greater than imports a trade deficit occurs when a countrys - Correct answer exports are less than imports the balance of __ is the difference between money from exports and money from imports as well as from other sources such as foreign investment and military expenses - Correct answer payments the us has had a trade _____ since 1975 - Correct answer deficit selling products in a foreign country at a lower price than what is charged in the producing country is called ____ - Correct answer dumping culture can include the following - Correct answer language values and attitudes religion Walmart has retail stores in China, and Staples has retail stores in Australia. These are examples of US companies:buying - Correct answer engaged in the global market buying goods and services from other countries is refferred to as - Correct answer importing contries need to trade with other countries because - Correct answer no nation can produce all the products its people want and need other countries can produce some products more cheaply and efficiently
the movement of goods and services among nations without economic or political barriers - Correct answer free trade when a country has a monopoly on producing a specific product or is able to produce it more efficiently than all other countries it is said to have an _______ advantage - Correct answer absolute ____ and ___ sized businesses are often better prepared for the global market because they are able to react more quickly to apportunities - Correct answer small medium the process whereby one firm contracts with other companies often in different countries to do some or all function - Correct answer outsourcing ________ tariffs are designed to raise money for the government. - Correct answer revenue what is the definiton of trade protectionism? - Correct answer the use of govt regulations to limit the import of goods and services lowering the value of a nations currency relative to other currency - Correct answer devaluation a tax imposed on imports - Correct answer tariff which set of ethics codes emphasizes preventing unlawful behavior by increasing control and penalizing wrongdoers? - Correct answer compliance based ethics what would a statement from Patagonia be called? "a love of wild and beautiful places demands participation in the fight to save them..." - Correct answer corporate policy corporate social responsibility is based on the belief that businesses should be concerned with the welfare of ____ and not only their owners - Correct answer society making decisions that we know are different from what is right erodes our ___ - Correct answer self esteem
Rank the following jobs according to their importance in influencing the implementation of ethical standards most on top - Correct answer top management supervisor full time co-workers part-time co workers an ______ _______ ethics code creates an environment which supports ethically sound behavior by stating an organizations guiding values, shared respons, and accountability - Correct answer integrity based many corporate executives reported that they use social media to communicate their socially responsible activities to customers because it - Correct answer allows them to connect directly with customers reaches broad and diverse groups allows them to reach specific groups more directly The use of private company information by an employee for personal financial gain is called_ - Correct answer insider trading which of the following would be classified as unethical behavior by employees - Correct answer frequently violating safety standards taking office supplies from work which of the following practices would be considered an ethical business choice that does more than the law requires? - Correct answer giving part time employees paid holidays it is important to have a committed workforce because employee ____ costs us based businesses about 5% each year and causes about 30% of all businesses failure - Correct answer fraud identify examples of how companies contribute to social justice - Correct answer cleaning up the environment contributing toward caring for the elderly donating time and goods to food banks many companies believe they have a role in promoting ____ _____ that goes way beyond simply giving back - Correct answer social justice
increasing public concern for the environment created by the ____ movement has more businesses looking for environmentally friendly ways to do business - Correct answer green a products carbon _____ is one possible, although sometimes controversial measure of the products impact on the environment - Correct answer footprint all manufacturers are careful to use the green label correctly - Correct answer false ciba specialty chemicals process that decreases production costs while reducing damage to the environment allows it to charge a higher price on its patented dye product. this is an example of? - Correct answer increasing profits by reducing environmental damage social audits should measure activities such as - Correct answer respect for human rights from the list below identify the groups considered to be a type of watchdog group - Correct answer union officials customers environmentalists foundations, universities, and other non profit organizations own shares in publicly held companies whose value is dependent on the ___ of those companies - Correct answer performance identify examples of how companies contribute to social justice - Correct answer donating time and goods to food banks cleaning up the environment contributing toward caring for the elderly a person who lacks moral absolutes declares what is right and wrong - Correct answer depending on the situation for their individual need at any time
how does unethical financial reporting affect a company's stockholders - Correct answer stock prices are likely to fail over the long term the sec brings charges against those involved CEOS and other important executives are likely to leave the company which of the following are true regarding ethical behavior - Correct answer it does not subtract from the bottom line, it adds to it when CEOs of publicly traded companies resign amidst allegations of wrongdoing the companys shareholders are affected in which of the following ways - Correct answer the companys stock price plummets as a result of the wrongdoings
