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374 Multiple choice questions

  1. 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
  2. c. dividend.
  3. a. sole proprietorship
  4. informing the press or government officials about unethical practices within one's organization
  5. a technique used to gather enough stockholder votes to control a targeted company
  6. A statistic that measures the lending activity of commercial financial institutions
  7. Placed more responsibility for accurate credit data on credit issuers; required creditors to verify that disputed data are accurate and to notify a consumer before reinstating the data
  8. 1-Because business is a part of our society, it cannot ignore social issues.
    2-Business has the technical, financial, and managerial resources needed to tackle today's complex social issues.
    3-By helping resolve social issues, business can create a more stable environment for long-term profitability.
    4-Socially responsible decision making by firms can prevent increased government intervention, which would force businesses to do what they fail to do voluntarily.
  9. trade deficit of $100 million.
  10. B - American Recovery & Reinvestment Act
  11. an organization of nations formed to promote the free movement of resources and products among its members and to create common economic policies.
  12. ...
  13. ...

  14. The price at which the quantity demanded is exactly equal to the quantity supplied
  15. D. 77
  16. Fair Packaging and Labeling Act
  17. An internationally supported bank that provides loans to developing countries to help them grow

    World Bank, Inter-American Development Bank (IDB), Asian Development Bank (ADB), African Development Bank (AFDB), European Bank for Reconstruction and Development (EBRD)
  18. North American Free Trade Agreement (NAFTA)
    Central American Free Trade Agreement -Dominican Republic(CAFTA-DR)
    Association of Southeast Asian Nations (ASEAN)
    European Economic Area (EEA)
    Pacific Rim
    Commonwealth of Independent States (CIS)
    Caribbean Basin Initiative (CBI)
    Common Market of the Southern Cone (MERCOSUR)
    Organization of Petroleum Exporting Countries (OPEC)
    Organization for Economic Cooperation and Development (OECD)
  19. 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
  20. Established standards for safer cars
  21. a. True
  22. National Environmental Policy Act (1970)
    Clean Air Amendment (1970)
    Water Quality Improvement Act (1970)
    Resource Recovery Act (1970)
    Water Pollution Control Act Amendment (1972)
    Noise Control Act (1972)
    Clean Air Act Amendment (1977)
    Resource Conservation and Recovery Act (1984)
    Clean Air Act Amendment (1987)
    Oil Pollution Act (1990)
    Clean Air Act Amendments (1990)
    Food Quality Protection Act (1996)
    American Recovery and Reinvestment Act (2009)
  23. True
  24. The percentage of a nation's labor force unemployed at any time.
  25. Individual, social, and opportunity factors all affect the level of ethical behavior in an organization.
    1-Individual factors include knowledge level, moral values and attitudes, and personal goals.
    2-Social factors include cultural norms and the actions and values of co-workers and significant others.
    3-Opportunity factors refer to the amount of leeway that exists in an organization for employees to behave unethically if they choose to do so.
  26. False
  27. Expenses + Profit
  28. an international organization of 158 nations dedicated to reducing or eliminating tariffs and other barriers to world trade
  29. 1. Have a dream—know what you want
    2. Adapt to changes in the environment—work hard to turn your dreams into reality
  30. an economic system in which businesses and individuals decide what to produce and buy, and the market determines quantities sold and prices
  31. c. The right to all profits
  32. Limited credit-card holder's liability to per card and stopped credit-card companies from issuing unsolicited cards
  33. powerful successor to GATT that incorporates trade in goods, services, and ideas
  34. a. True
  35. 1. Technology becomes affordable
    2. Growth of service businesses (Service Economy)
    3. Although many economic indicators are strong, there is a feeling of pessimism, a large number of business failures, high unemployment, and terrorist threats
  36. First federal act to regulate business practices; provided regulation of railroads and shipping rates
  37. Ethical issues arise often in business situations out of relationships with investors, customers, employees, creditors, or competitors. Businesspeople should make every effort to be fair, to consider the welfare of customers and others within the firm, to avoid conflicts of interest, and to communicate honestly.

    1. Fairness & Honesty
    2. Organizational Relationships
    3. Conflict of Interests
    4. Communications
  38. a limit on the amount of a particular good that may be imported into a country during a given period of time
  39. ...
  40. False
  41. Government influence on the amount of savings and expenditures; accomplished by altering the tax structure and by changing the levels of government spending
  42. False

  43. The study of how wealth (anything of value) is created and distributed
  44. A business that is owned (and usually operated) by one person

    The simplest form of business ownership and the easiest to start

    Many large businesses began as a small struggling sole proprietor ships

    The most popular form of business ownership
  45. C. social problems affect society in general, so individuals businesses should not be expected to solve these problems.
  46. 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
  47. 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
  48. differences among people in a workforce owing to race, ethnicity, and gender
  49. False
  50. a. To generate income for the government
  51. The total of all federal deficits
  52. False
  53. an economy that exhibits elements of both capitalism and socialism
  54. True
  55. --Firms that provide a link between buyers and sellers in different countries

    --Takes title to products and perform all the activities necessary to move the products from one country to another
  56. False
  57. Directed the FCC and the FTC to coordinate so that their rules are consistent regarding telemarketing call practices including the Do Not Call Registry and other lists, as well as call abandonment
  58. The General Agreement on Tariffs and Trade (GATT) was formed to dismantle trade barriers and provide an environment in which international business can grow. Today, the World Trade Organization (WTO) and various economic communities carry on this mission. These world economic communities include the European Union, the NAFTA, the CAFTA, the Association of Southeast Asian Nations, the Pacific Rim, the Commonwealth of Independent States, the Caribbean Basin Initiative, the Common Market of the Southern Cone, the Organization of Petroleum Exporting Countries, and the Organization for Economic Cooperation and Development.
  59. True
  60. 1. Environmental Protection
    2. Product Performance
    3. Safety
  61. 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
  62. Ease of start-up
    Pride of ownership
    Retention of all profits
    No special taxes
    Flexibility of being your own boss
  63. a corporation organized to provide a social, educational, religious, or other service rather than to earn a profit
  64. +Some countries are better equipped than others to produce particular goods or services
    --Absolute advantage
    --Comparative advantage

    +Goods and services are produced more efficiently when each country specializes in the products for which it has a comparative advantage

    +Countries trade when they each have a surplus of the product they specialize in and want a product the other country specializes in
    --Exporting
    --Importing

    +Balance of Trade
    +Trade Deficit
    +Balance of Payments
  65. Amended the Truth in Lending Act to enable consumers to challenge billing errors
  66. 1. Economic systems in which the government decides what will be produced, how it will be produced, who gets what is produced, and who owns and controls the major factors of production

    2. Socialism
    --Key industries (e.g., transportation, utilities, and banking) are owned and controlled by the government
    --Small-scale private businesses may be permitted and workers may choose their own occupations
    --Production is based on national goals, and distribution is controlled by the state
    --Intent is the equitable distribution of income, elimination of poverty, social services to all who need them, elimination of the economic waste of capitalistic competition

    3. Communism
    --All factors of production are owned and controlled by the government as proxy for ownership by all citizens
    --Production is based on centralized state planning to meet the needs of the state and not necessarily the needs of its citizens
    --The state dictates occupational choices and sets prices and wages
    --Intent is to create Karl Marx's concept of a classless society where all contribute according to their ability and receive benefits according to their needs.
  67. False
  68. c. Loss of jobs
  69. c. 23
  70. Required lenders and credit merchants to disclose the full cost of finance charges in both dollars and annual percentage rates
  71. Sole proprietorship

  72. Creating and maintaining the conditions under which humans and nature can exist in productive harmony while fulfilling the social, economic, and other requirements of present and future generations.

  73. The study of the decisions made by individuals and businesses
  74. A firm can enter international markets in several ways. It may license a foreign firm to produce and market its products. It may export its products and sell them through foreign intermediaries or its own sales organization abroad, or it may sell its exports outright to an export-import merchant. It may enter into a joint venture with a foreign firm. It may establish its own foreign subsidiaries, or it may develop into a multinational enterprise.

    Generally, each of these methods represents an increasingly deeper level of involvement in international business, with licensing being the simplest and the development of a multinational corporation the most involved.
  75. True
  76. United States
    Canada
    Mexico
    Chile is expected to become the 4th member
  77. A general rise in the level of prices (EI)
  78. 1. Choosing either the sole proprietorship, partnership, corporate or some special form of ownership.
    2. Constructing a partnership agreement.
    3. Incorporating a business
    4. Registering a corporation's stock
    5. Obtaining a trademark, patent, or copyright
    6. Filling for licenses or permits at the local, state, and federal levels.
    7. Purchasing an existing business or real estate
    8. Creating valid contracts
    9. Hiring employees and independent contractors
    10. Extending credit and collecting debts.
  79. a temporary association of individuals or firms organized to perform a specific task that requires a large amount of capital
  80. Economic performance among nations is not equal; growth in advanced countries slowed and then stopped in 2009, while emerging and developing economies continue to grow rapidly

    International experts expected global economic growth in 2010 and 2011, despite the high oil prices

    Canada and Western Europe
    --Canada is projected to show growth in 2010 and 2011
    --Euro area is expected to grow in 2011
    --U.K. and smaller European countries are expected to experience a recession

    Mexico and Latin America
    --Mexico is expected to show growth in 2010 and 2011
    --Latin America and Caribbean economies are recovering at a robust pace

    Japan
    --Projected to show growth in 2010 and 2011

    Other Asian Countries
    --Lead by China emerging as a global economic power, growth is strong
    --Key emerging economies is Asia are leading the global recovery

    Emerging Europe
    --Growth has been faster than in western Europe and continued growth is expected in 2010 and 2010

    Commonwealth of Independent States
    --Projected to show growth in 2010 and 2011
    --With the collapse of communism, trade between the U.S. and central and Eastern Europe expanded substantially

    Exports and the U.S. Economy
    --In 2008, exports as a percentage of GDP reached its highest level since 1916
    --In the past 50 years, exports have become increasingly important to the U.S. economy
  81. an independent agency of the U.S. government whose function is to assist in financing the exports of American firms
  82. provides sweeping new legal protection for employees who report corporate misconduct. The law deals with corporate responsibility, conflicts of interest, and corporate accountability.
  83. 1. Right to Safety
    2. Right to be Informed
    3. Right to Choose
    4. Right to Be Heard
    5. Right to Consumer Education
    6. Right to Courteous Service
  84. International business encompasses all business activities that involve exchanges across national boundaries. International trade is based on specialization, whereby each country produces the goods and services that it can produce more efficiently than any other goods and services. A nation is said to have a comparative advantage relative to these goods. International trade develops when each nation trades its surplus products for those in short supply.

    A nation's balance of trade is the difference between the value of its exports and the value of its imports. Its balance of payments is the difference between the flow of money into and out of the nation. Generally, a negative balance of trade is considered unfavorable.
  85. A monthly index that measures the changes in prices of a fixed basket of goods purchased by a typical consumer in an urban area
  86. Many government and international agencies provide export assistance to U.S. and foreign firms. Sources of export assistance include U.S. Export Assistance Centers, the International Trade Administration, U.S. and Foreign Commercial Services, Export Legal Assistance Network, Advocacy Center, National Trade Data Bank, and other government and international agencies.
  87. The process of developing and promoting differences between one's products and all similar products
  88. True
  89. True
  90. a plan designed to increase the number of minority employees at all levels within an organization
  91. Partnerships formed to create competitive advantage on a worldwide basis
  92. Absolute advantage is the ability to produce a particular product more efficiently than any other country.
  93. a feature of corporate ownership that limits each owner's financial liability to the amount of money that he or she has paid for the corporation's stock
  94. an international bank with 188 member nations that makes short-term loans to developing countries experiencing balance-of-payment deficits
  95. 1-The basic premise of the economic model of social responsibility is that society benefits most when business is left alone to produce profitable goods and services.

    2-According to the socioeconomic model, business has as much responsibility to society as it has to its owners. Most managers adopt a viewpoint somewhere between these two extremes.
  96. Provided for limited supervision of interstate sales of meat and meat products

  97. The market situation in which there are many buyers and sellers of a product and no single buyer or seller is powerful enough to affect the price of that product.
  98. 1-Business managers are responsible primarily to stockholders, so management must be concerned with providing a return on owners' investments.
    2-Corporate time, money, and talent should be used to maximize profits, not to solve society's problems.
    3-Social problems affect society in general, so individual businesses should not be expected to solve these problems.
    4-Social issues are the responsibility of government officials who are elected for that purpose and who are accountable to the voters for their decisions.

  99. the recognition that business activities have an impact on society and the consideration of that impact in business decision making
  100. D- Kennedy
  101. True
  102. Brunei
    Myanmar
    Cambodia
    Indonesia
    Laos
    Malaysia
    Philippines
    Singapore
    Thailand
    Vietnam
  103. 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
  104. True
  105. Resource Recovery Act
  106. Provided equal credit opportunities for males and females and for married and single individuals
  107. Although the worldwide recessions of 1991 and 2001-2002 slowed the rate of growth, and 2008-2009 global economic crisis caused the sharpest decline in more than 70 years, globalization is a reality of our time

    In the U.S., international trade accounts for over ¼ of GDP

    Trade barriers are decreasing, new competitors are entering the global marketplace, creating more choices for consumers and new job opportunities

    International business will grow with the expansion of commercial use of the Internet
  108. creating and maintaining the conditions under which humans and nature can exist in productive harmony while fulfilling the social, economic, and other requirements of present and future generations
  109. ...
  110. A loose, subjective measure of how well off an individual or a society is mainly in terms of want satisfaction through goods and services
  111. a situation in which the management and board of directors of a firm targeted for acquisition disapprove of the merger
  112. The competitive, global, technological, and economic environments affect business today
  113. True
  114. The system through which a society creates and distributes wealth.
  115. A tax levied on a particular foreign product entering a country

    Revenue tariffs are imposed to generate income for the government

    Protective tariffsare imposed to protect a domestic industry from competition by keeping the prices of imports at or above the price of domestic products
  116. workers with little education or vocational training and a long history of unemployment
  117. oligopolies
  118. False

  119. A general decrease in the level of prices
  120. a voluntary association of two or more persons to act as co-owners of a business for profit

    Less common form of ownership than sole proprietorship or corporation

    No legal limit on the maximum number of partners; most have only two

    Large accounting, law, and advertising partnerships have multiple partners

    Partnerships are usually a pooling of special talents or the result of a sole proprietor taking on a partner
  121. the application of moral standards to business situations
  122. b. False
  123. False
  124. 1. Listen and learn
    2. Identify the ethical issues.
    3. Create and analyze options
    4. Identify the best option from your point of view.
    5. Explain your decision and resolve any differences that arise.
  125. National Export Strategy (NES)

    Trade Promotion Coordinating Committee (TPCC)
    -Assists U.S. firms in developing export-promotion programs
    -Help American firms compete in foreign markets and create new jobs in the U.S.
  126. ...
  127. a comprehensive report of what an organization has done and is doing with regard to social issues that affect it
  128. Stock - The shares of ownership of a corporation

    Stockholder - A person who owns a corporation's stock

    Closed corporation - A corporation whose stock is owned by relatively few people and is not sold to the general public

    Open corporation - A corporation whose stock is bought and sold on security exchanges and can be purchased by any individual

  129. Goods and Services purchased by individuals for personal consumption.
  130. False
  131. Ethics is the study of right and wrong and of the morality of choices. Business ethics is the application of moral standards to business situation
  132. --An international barter transaction

    --Avoids restrictions on converting domestic currency to foreign currency
  133. An economic statistic that tracks the increase in prices of goods and services over a period of time; usually calculated on a monthly or annual basis
  134. Licensing
    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

    Advantage
    -It allows expansion into foreign markets with little or no direct investment
    Disadvantages
    -The product image may be damaged if standards are not upheld
    -The original producer does not gain foreign marketing experience
  135. False
  136. The total value of all goods and services produced by all people within the boundaries of a country during a one-year period. (EI)
  137. The total income earned by various segments of the population, including employees, self-employed individuals, corporations, and other types of income
  138. selling and shipping raw materials or products to other nations
  139. be informed
  140. Rivalry among businesses for sales to potential customers.
  141. In a socially responsible business, management realizes that its activities have an impact on society and considers that impact in the decision-making process.

    Before the 1930s, workers, consumers, and government had very little influence on business activities; as a result, business leaders gave little thought to social responsibility.
    All this changed with the Great Depression.

    Government regulations, employee demands, and consumer awareness combined to create a demand that businesses act in socially responsible ways.
  142. a. 3 million
  143. True
  144. A system of manufacturing in which all the materials, machinery, and workers required to manufacture a product are assembled in one place
  145. b. Internal Revenue Service
  146. 1. Economics
    2. Microeconomics
    3. Macroeconomics
    4. Economy
  147. d. Raising money
  148. False.
  149. The financing of international trade is more complex than that of domestic trade. Institutions such as the Ex-Im Bank and the International Monetary Fund have been established to provide financing and ultimately to increase world trade for American and international firms
  150. C- The average work week was approx 40 hours
  151. An index that measures prices that producers receive for their finished goods
  152. Despite the benefits of world trade, nations tend to use tariffs and non-tariff barriers (import quotas, embargoes, and other restrictions) to limit trade. These restrictions typically are justified as being needed to protect a nation's economy, industries, citizens, or security. They can result in the loss of jobs, higher prices, fewer choices in the marketplace, and the misallocation of resources.
  153. The recurrence of periods of growth and recession in a nation's economic activity.
  154. ...
  155. Eliminated many forms of price discrimination that gave large businesses a competitive advantage over smaller firms
  156. a. True
  157. a. True
  158. a. No more than 12 stockholders
  159. 1. International organization of 153 nations dedicated to reducing or eliminating tariffs and other trade barriers

    2. Most-favored-nation status (MFN)—Each member of GATT was to be treated equally by all other members

    3. Kennedy Round, Tokyo Round, Uruguay Round, Doha Round
  160. a. True
  161. Two or more consecutive three-month periods of decline in a country's gross domestic product
  162. ...
  163. a term created by Adam Smith to describe how an individual's personal gain benefits others and a nation's economy
  164. The average level of output per worker per hour
  165. True
  166. Prevented monopolies or mergers where competition was endangered
  167. The total value of a nation's exports minus the total value of its imports over a specific period of time
  168. Established limited supervision of interstate sales of food and drugs
  169. ...
  170. A method of manufacturing in which an entrepreneur distributes raw materials to various homes, where families process them into finished goods to be offered for sale by the merchant entrepreneur
  171. the top governing body of a corporation, the members of which are elected by the stockholders
  172. Advantages -
    1. Ease of start-up
    2. Availability of capital and credit
    3. Personal interest
    4. Combined business skills and knowledge
    5. Retention of profits
    6. No special taxes

    Disadvantages -
    1. Unlimited liability
    2. Management disagreements
    3. Lack of continuity
    4. Frozen investment
  173. import quota.
  174. stock owned by individuals or firms who usually do not have voting rights but whose claims on dividends are paid before those of common-stock owners

  175. The quantity of a product that PRODUCERS are willing to SELL at each of various prices
  176. a corporation whose stock is owned by relatively few people and is not sold to the general public
  177. issued by a bank on request of an importer stating that the bank will pay an amount of money to a stated beneficiary
  178. False
  179. May use an export/import merchant who assumes the risks of ownership, distribution, and sale

    Letter of credit -Issued by a bank on request of an importer stating that the bank will pay an amount of money to a stated beneficiary

    Bill of lading -Issued by a transport carrier to an exporter to prove merchandise has been shipped

    Draft -Issued by the exporter's bank, ordering the importer's bank to pay for the merchandise, thus guaranteeing payment once accepted by the importer's bank

    May use an export/import agent who arranges sale for a commission or fee; the exporter retains title to products until they are sold

    May establish own sales offices or branches in foreign countries
  180. Federal Trade Commission
  181. True
  182. the total flow of money into a country minus the total flow of money out of that country over some period of time.
  183. True
  184. d. Demand
  185. True
  186. Federal Trade Commission
  187. True
  188. Import Duty (Tariff)
    Dumping
    Non-Tariff Barriers
  189. False
  190. Required warning labels on household chemicals if they were highly toxic
  191. El Salvador
    Guatemala
    Honduras
    Nicaragua
    Dominican Republic
    Costa Rica
  192. The total number of new homes started during a specific time period
  193. Promoted the financial stability of the United States by improving accountability and responsibility in the financial system; established a new Consumer Financial Protection Agency to regulate home mortgages, car loans, and credit cards; became Public Law on July 21, 2010
  194. False
  195. Mexico
  196. True
  197. a person who assumes full or shared responsibility for operating a business
  198. True
  199. ...
  200. True
  201. Production and marketing facilities in one or more foreign nations

    Advantage
    -Direct investment provides complete control over operations

    Disadvantage
    -Risk is greater than that of a joint venture

    Two forms
    -Building new facilities in the foreign country
    -Purchasing an existing firm in the foreign country
  202. a partnership formed to create competitive advantage on a worldwide basis
  203. document issued by a transport carrier to an exporter to prove that merchandise has been shipped
  204. Each employee completed at least 200 hours of service to community functions.
  205. the total value of a nation's exports minus the total value of its imports over some period of time
  206. all activities undertaken to protect the rights of consumers
  207. a. True
  208. the contamination of water, air, or land through the actions of people in an industrialized society
  209. a corporation in the state in which it is incorporated
  210. False

  211. Individuals are free to decide what to produce, how to produce it, and at what price to sell it
  212. True
  213. A person who risks time, effort, and money to start and operate a business
  214. Collection agencies with harsh and abusive collection practices
  215. the view that society will benefit most when business is left alone to produce and market profitable products that society needs.

    Managers who adopts this attitude, social responsibility is someone else's job. Social Responsibility becomes the problem of the government, various environmental groups, charitable foundations, and similar organizations.
  216. Water, Air, Land and Noise

    Industry has contributed to noise pollution and pollution of our land and water through the dumping of wastes, and to air pollution through vehicle and smokestack emissions.

    This contamination can be cleaned up and controlled, but the big question is: Who will pay? Present cleanup efforts are funded partly by government tax revenues, partly by business, and in the long run by consumers.
  217. True
  218. a non-tax measure imposed by a government to favor domestic over foreign suppliers

    Other Non-Tariff Barriers:
    *import quota
    *embargo
    *foreign exchange control
    *currency devaluation
    *bureaucratic red tape
    *cultural attitudes
  219. 1. Balance of Trade
    2. Bank Credit
    3. Corporate Profits
    4. Inflation Rate
    5. National Income
    6. New Housing Starts
    7. Prime Interest Rates
  220. balance of payments
  221. ...
  222. a corporation chartered by a foreign government and conducting business in the United States
  223. The reasons for restricting trade range from internal political and economic pressures to mistrust of other nations.

    Nations are generally eager to export their products to provide markets for their industries and develop a favorable balance of trade.

    Most trade restrictions are applied to imports from other nations.
  224. A partnership formed to achieve a specific goal or to operate for a specific period of time

    Advantages
    -Immediate market knowledge and access
    -Reduced risk
    -Control over the product attributes

    Disadvantages
    -Complexity of establishing agreements across national borders
    -High level of commitment required of all parties involved
  225. Called for all products sold across state lines to be labeled with net weight, ingredients, and manufacturer's name and address
  226. economic model of social responsibility.
  227. What remains after all business expenses have been deducted from sales revenue.
  228. a. 19; 82
  229. Advantages -
    1. Ease of start-up
    2. Pride of ownership
    3. Retention of all profits
    4. No special taxes
    5. Flexibility of being your own boss

    Disadvantages -
    1. Unlimited liability
    2. Lack of continuity
    3. Lack of money
    4. Limited management skills
    5. Difficulty in hiring employees
  230. False
  231. True
  232. Established testing practices for drugs and required manufacturers to label drugs with generic names in addition to trade names
  233. The market situation in which there are many buyers and sellers of a product, and no single buyer or seller is powerful enough to affect the price of that product
    a) Supply
    b) Demand
    c) Market Price (Equilibrium)
  234. b. False
  235. True

  236. The quantity of a product that BUYERS are willing to PURCHASE at each of various prices
  237. True
  238. Limited Partners - A person who contributes capital to a business but has no management responsibility or liability for losses beyond the amount he or she invested in the partnership

    Limited partnership - A business co-owned by one or more general partners who manage the business and limited partners who invest money in it

    Master limited partnership (MLP) - A business partnership that is owned and managed like a corporation but taxed like a partnership
  239. False
  240. Created the Federal Trade Commission to investigate illegal trade practices
  241. b. False
  242. ...
  243. A firm that operates on a worldwide scale without ties to any specific nation or region
  244. the purchase of one corporation by another
  245. 1970s
  246. How they answer the four basic economic questions
    -What goods and services will be produced?
    -How will they be produced?
    -For whom will they be produced?
    -Who owns and controls the major factors of production?
  247. 1. A market situation (or industry) in which there are few sellers (Ex. automobile manufacturers, car rental agencies, and farm implement industries)
    a) Sizable investments are required to enter into the market
    b). Each seller has considerable control over price
    c). The market actions of one seller can have a strong effect on competitors
  248. an agreement between two or more groups to form a business entity in order to achieve a specific goal or to operate for a specific period of time
  249. a government agency with the power to investigate complaints of employment discrimination and the power to sue firms that practice it
  250. a person who owns a corporation's stock
  251. True
  252. Federal Reserve decisions that determine the size of the supply of money in the nation and the level of interest rates
  253. The economic model
  254. An independent agency of the U.S. government whose function it is to assist in financing the exports of American firms
  255. True
  256. Prevented discrimination based on race, creed, color, religion, age, and income when granting credit
  257. True
  258. A monopoly created when a government entity issues a franchise, license, copyright, patent, or trademark protecting the owners of written materials, ideas, or product brands from unauthorized use by competitors
  259. An economy in which more effort is devoted to the production of services than tot he production of goods.
  260. False
  261. C. the right to personalized service
  262. General Partnerships
    Limited Partnerships
  263. Prohibited the use of automated dialing and prerecorded-voice calling equipment to make calls or deliver messages
  264. 1. Created in the Uruguay Round of GATT negotiation as a successor to GATT

    2. WTO oversees GATT provisions, has judicial powers to meditate trade disputes arising from GATT rules and exerts more binding authority than GATT
  265. Results when a firm's expenses are greater than its revenues
  266. the ability to produce a specific product more efficiently than any other product
  267. False
  268. the organized effort of individuals to produce and sell through the Internet, for a profit, products and services that satisfy society's needs--became an accepted method of conducting business
  269. False
  270. 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
  271. 1. Barter System
    2. Domestic System
    3. Factory System
    4. Specialization
  272. Incorporating "buy-in" from all employees
  273. the concept that business should emphasize not only profits but also the impact of its decisions on society

    1. Business is dominated by the corporate form of ownership and the corporation is a creation of society. If a corp doesn't perform as a good citizen, society can and will demand changes.

    2. Many firms have begun to take pride in their social responsibility records, among them Starbucks Coffee, HP, Colgate/Palmolive, Coca Cola.

    3. Many business people believe that it is in their best interest to take the initiatives in this area. The alternative may be legal action brought against the firm by some special interest group; in such a situation the firm may lose control of its activities.
  274. Percentage of a nation's labor force unemployed at any time (EI)
  275. 1. Rapid growth of large industries (automobiles, steel, oil, chemical) and the mass production of consumer goods
    2. The Roaring Twenties ended with the 1929 stock market crash
    3. Government intervention became necessary to get the economy moving again
    4. In the last part of the 1900s, a large number of business failures and declining stock values suggested larger economic problems to come
  276. the chairman of the board, president, executive vice presidents, corporate secretary, treasurer, and any other top executive appointed by the board of directors
  277. Required manufacturers to place standard warning labels on all cigarette packages and advertising
  278. a legal concept that holds a business owner personally responsible for all the debts of the business
  279. An international bank with 186 member nations that makes short-term loans to developing countries experiencing balance-of-payment deficits
  280. 1. WWII, the Korean War, and the Viet Nam War
    2. Rapid economic growth and higher standard of living during the 1950s and 1960s
    3. The social responsibility movement during the 1960s
    4. A shortage of crude oil and higher prices for most goods in the mid-1970s
    5. High inflation, high interest rates, and reduced business profits during the early 1980s
    6. Sustained economic growth in the 1990s
  281. provides a link between buyers and sellers in different countries
  282. True
  283. World trade is generally increasing. Trade between the United States and other nations is increasing in dollar value but decreasing in terms of our share of the world market. Exports as a percentage of U.S. GDP have increased steadily since 1985, except in the 2001 and 2008 recessions.
  284. the shares of ownership of a corporation
  285. 1. Mixed economy with elements of capitalism and socialism
    2. Households
    -- Consumers of goods and services
    -- Resource owners of some factors of production
    3. Businesses
    -- Produce goods and services to exchange for revenues (money)
    -- Use revenues to purchase factors of production
    4. Governments
    -- In exchange for taxes, governments provide public services that would not be provided by business or would be produced only for those who could afford them
  286. The total amount of profits made by corporations over selected time periods
  287. Provided the most sweeping changes in credit card protections since the Truth in Lending Act of 1968
  288. a corporation that is taxed as though it were a partnership
  289. the ability to produce a specific product more efficiently than any other nation
  290. a society's best interests are served by individuals pursuing their own self-interest
    a) Creation of wealth is the concern of private individuals
    b) Resources used to create wealth must be privately owned
    c) Economic freedom ensures the existence of a free market economy. Businesses and individuals decide what to produce and buy; the market determines quantities sold and prices
    d) Limited role of government
  291. False
  292. Customers eventually find put which firms act responsibly and which do not.
  293. a business co-owned by two or more general partners who are liable for everything the business does
  294. exportation of large quantities of a product at a price lower than that of the same product in the home market.
  295. the online interaction that allows people and businesses to communicate and share ideas, personal information, and information about products or services
  296. the reduction of the value of a nation's currency relative to the currencies of other countries

  297. The Total dollar value of all goods and services produced by all people within the boundaries of a country during a one-year period.

  298. The organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy society's needs
  299. a corporation whose stock can be bought and sold by any individual
  300. The study of the national economy and the global economy.
  301. Articles of partnership - An agreement listing and explaining the terms of the partnership; written is preferable to oral

    Agreement should state
    1. Who will make final decisions
    2. What each partner's duties will be
    3. How much each partner will invest
    4. How much profit or loss each partner receives or is responsible for
    5. How the partnership can be dissolved
  302. ① Prepare before you go to class.
    ② Read the chapter.
    ③ Underline or highlight important concepts.
    ④ Take notes.
    ⑤ Apply the concepts.
    ⑥ Practice critical thinking.
    ⑦ Prepare for exams.
  303. Governments, trade associations, and individual firms can establish guidelines for defining ethical behavior.
    1- Governments can pass stricter regulations.
    2- Trade associations provide ethical guidelines for their members.
    3-Companies provide codes of ethics—written guides to acceptable and ethical behavior as defined by an organization—and create an atmosphere in which ethical behavior is encouraged. 4-An ethical employee working in an unethical environment may resort to whistle-blowing to bring a questionable practice to light.
  304. True
  305. Placed parents in control over what information is collected online from their children younger than 13 years; required commercial website operators to maintain the confidentiality, security, and integrity of personal information collected from children
  306. True
  307. resources used to produce goods and services
    1. Land and natural resources
    2. Labor
    3. Capital
    4. Entrepreneurship
  308. The separation of a manufacturing process into distinct tasks and the assignment of the different tasks to different individuals
  309. False
  310. 1. Perfect (or pure) competition
    2. Monopolistic competition
    3. Oligopoly
    4. Monopoly
  311. Required the Food and Drug Administration to review current food labeling and packaging focusing on nutrition label content, label format, ingredient labeling, food descriptors and standards, and health messages
  312. purchasing raw materials or products in other nations and bringing them into one's own country
  313. D- Sarbanes-Oxley
  314. Established an abbreviated procedure for registering certain generic drugs
  315. True
  316. Legislation and public demand have prompted some businesses to correct past abuses in employment practices—mainly with regard to minority groups.

    Affirmative action and training of the hard-core unemployed are two types of programs that have been used successfully.
  317. True
  318. Individual
    Social
    Opportunity
  319. issued by the exporter's bank, ordering the importer's bank to pay for the merchandise, thus guaranteeing payment once accepted by the importer's bank
  320. A system of exchange in which goods or services are traded directly for other goods and/or services without using money
  321. 1-A program to implement social responsibility in a business begins with total commitment by top management.
    2-The program should be planned carefully, and a capable director should be appointed to implement it.
    3-Social audits should be prepared periodically as a means of evaluating and revising the program.
    4-Programs may be funded through price increases, reduction of profit, or federal incentives.

    1. Commitment of Top Executives
    2. Planning
    3. Appointment of a Director
    4. The Social Audit
  322. Unlimited liability
    Lack of continuity
    Lack of money
    Limited management skills
    Difficulty in hiring employees
  323. A severe recession that lasts longer than a recession
  324. False
  325. a. True
  326. A shortfall created when the federal government spends more in a fiscal year than it receives
  327. a firm that operates on a worldwide scale without ties to any specific nation or region
  328. a distribution of earnings to the stockholders of a corporation

  329. An economic system in which individuals own and operate the majority of businesses that provide goods and services

    Derived from Adam Smith's laissez-faire capitalism
  330. 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

    Unlike a real person, however, a corporation exists only on paper

    There are approximately 6 million corporations in the U.S.

    They comprise about 19 percent of all businesses, but they account for 83 percent of sales revenues
  331. an internationally supported bank that provides loans to developing countries to help them grow
  332. ...
  333. Provided for minimum disclosure standards for written consumer-product warranties for products that cost more than $15
  334. False
  335. all the different people or groups of people who are affected by an organization's policies, decisions, and activities
  336. Significantly Higher
  337. False
  338. ...
  339. a restriction on the amount of a particular foreign currency that can be purchased or sold
  340. False
  341. consumerism
  342. True
  343. True
  344. An industry requiring huge investments in capital and within which duplication of facilities would be wasteful and thus not in the public interest
  345. 1. Gross Domestic Product (GDP)
    2. Inflation
    3. Deflation
    4. Unemployment Rate
    5.Consumer Price Index (CPI)
    6. Producer Price Index (PPI)
  346. True
  347. False
  348. A general decrease in the level of prices (EI)
  349. 1. For help in choosing a career
    2. To be a successful employee
    3. To improve your management skills
    4. To start your own business
    5. To become a better informed consumer and investor
  350. Outlawed abusive collection practices by third parties

  351. Federal Reserve's decisions that determine the size of the supply of money in the nation and the level of interest rate.
  352. the study of right and wrong and of the morality of the choices individuals make
  353. Required credit bureaus to provide credit reports to consumers regarding their own credit files; also provided for correction of incorrect information
  354. an offer to purchase the stock of a firm targeted for acquisition at a price just high enough to tempt stockholders to sell their shares
  355. A market situation where there are many buyers along with a relatively larger number of sellers who differentiate their products from the products of competitors
  356. General partner - A person who assumes full or shared responsibility for operating a business

    General partnership - A business co-owned by two or more general partners who are liable for everything the business does
  357. 1. Productivity
    2. Economic Indicators
  358. Incorporation - the process of forming a corporation
    Most experts recommend consulting a lawyer.
  359. The lowest interest rate that banks charge their most creditworthy customers
  360. Conflict of Interest
  361. a. True
  362. ...
  363. False
  364. a market (or industry) with only one seller, and there are barriers to keep other firms from entering the industry
  365. all business activities that involve exchanges across national boundaries
  366. a Latin phrase meaning "let the buyer beware". In other words, "what you see, is what you get."
  367. True
  368. 1. Recession
    2. Depression
    3. Monetary Policies
  369. True
  370. a negative balance of trade
  371. an international barter transaction
  372. a guide to acceptable and ethical behavior as defined by the organization
  373. a corporation in any state in which it does business except the one in which it is incorporated
  374. False