Exam #1

Company X reports that it made $2.3 million last year selling its goods and services. It spent $1.8 million in cost running the business. Which number below represents the revenue for the company?

$2.3 million

The policies and practices of government bodies would shape the __________ environment for a business.

legal and regulatory

All groups affected by a company’s activities are referred to as its _________.

stakeholders

An organization that seeks to operate efficiently and effectively to achieve its goals without focusing on profit as a motive is a ______________.

nonprofit organization

Societal trends that result from result from diversity and demographic changes are a part of a company’s _________ environment.

social

Most of the competition in the US is this type of competition where there are multiple buyers and sellers, and at least slide differences in product and services offered.

Monopolistic competition

Nestle donated skids of water bottles to Flint, Michigan during its water crisis. This donation represents Nestle’s commitment to_________

Corporate social initiatives

Judy became angry at her boss and decided to quit her job without lining up a new one first. She has now been looking for a job for over 6 weeks. Which type of unemployment is she facing?

Frictional unemployment

Which of the following refers to the amount of a good or service that customers are willing to buy at a given time at various prices?

Demand

Some predict that soon, the United States will experience two or more consecutive quarters of decline in the country’s gross domestic product. What would this be called?

Recession

When demand for goods and services drops, businesses reduce production, resulting in economic contraction. The unemployment resulting because of this phenomenon is known as ___________ unemployment.

Cyclical unemployment

Sarah wanted to major in the discipline that allowed her to study how a society uses scarce resources to produce goods and services. Which discipline should she study?

Economics

The government has noticed that the economy might be entering a recession and it needs to stabilize it. Because of this, it has decided that it needs to change the government’s expenditures and perhaps decrease taxes to change the growth rate of the economy. Which of the following would they use to do so?

Fiscal policy

Entrepreneurs take a _______ amount of risk when starting a new business.

Medium

What is gross domestic product?

A measure of a country’s productivity and is calculated using the total of all the goods and services produced within a country’s borders.

Sam is a recent hire at Jelly Beans R Us. On his first day in his new job, his store manager handed him a small booklet consisting of company rules. He was asked to read it and sign and submit the last page, before starting his work. Among other things, the organization’s rules explicitly discussed punishments for grievous behavior and firing if the firm could prove that the employee was stealing product from the store. This booklet represented the _____________ of the store.

Compliance-based ethics codes

What is the first question to consider when deciding how to handle an ethical dilemma?

Is it legal?

A long-term partnership between two or more companies established to help each company build competitive market advantages, yet not share risks, costs, management or profits is a(n)

Strategic alliances

A country has a trade surplus when?

value of its exports exceed the value of its imports

Which of the following acts outlaws payments that are intended to get government officials to break the laws of their own countries or to secure “improper advantage” in gaining or retaining sales?

Foreign Corrupt Practices Act

James feels as if his culture is superior and tends to judge all other groups according to its standards, behaviors, and custom. This is known as________ and can _____ the chances of successfully working with global partners.

Ethnocentrism / Decrease

Taxes, surcharges, or duties levied against imported goods are known as ______.

Tariffs

The United States has decided to limit the amount of raw sugar allowed to be imported in the country to 3 billion pounds per year. The country has imposed a(n)

Import quota

You and a friend are discussing how important international trade is to the economy of the United States and you were trying to explain the differences between importing and exporting. How would you describe the difference?

Exporting is selling goods to another country. Importing is purchasing goods from another country and bringing them into the country.

_________ is/are the principles and standards of moral behavior that are accepted by society as right and wrong.

Ethics

_________ is the notion that business has obligations to society beyond the pursuit of profits.

Corporate social responsibility

A situation in which you must choose between two conflicting but arguably valid alternatives would be known as a(n)

Ethical dilemma

Amazon donates charitable donations in the form of donating money to local non-profit organizations. They are practicing___________

Philanthropy

An employee at a hospital informs the media of certain health law violations and negligence that lead to documented illness and even death in certain cases. This is an example of __________

Whistle-blowing

The CEO of a large retail store learns that the store will be going bankrupt and it will have a negative impact on the company’s stock price. He quickly calls his broker to sell all of his shares of stock in the company before the news is announced. This is an example of_________

Insider trading

This type of ethics code creates an environment that supports ethically sound behavior and stresses shared accountability.

Integrity-based ethics codes

What happens when government spending exceeds tax revenues in the current year?

The total national debt will likely increase.

This represents amount of goods and services people can buy with the money they have.

Standard of living

George wants to begin producing airlines. He is excited because he knows the number of competitors in this market is small, but he is worried because he also knows it is expensive to enter into this type of situation. Which type of competition would he face in this industry?

Oligopoly

After many years in business, Julie’s business has finally reached the point at which the demand and supply curves intersect. This is called _______.

Equilibrium point

The term _______ is used to characterize the fluctuation in an economy’s rate of growth over a period of several years.

Business cycles

Justin has a great idea for a new restaurant and has decided to sell others the rights to use the name and sell the product and service in a given area. What type of business does this describe?

Franchise

When an entrepreneur decides to begin a new business, they are taking this ______, which is the chance they will lose time and money invested in a business that could prove to be unprofitable.

Risk