Chris orders a salad at a restaurant. What is the BEST definition of what he is buying?
Chris orders a salad at a restaurant. What is the BEST definition of what he is buying?
Chris is buying neither a good nor a service.
Chris is buying a service.
Chris is buying a good.
Chris is buying a service, but not a good.
Chris is buying both a good and a service.
Nina’s furniture store has had a successful year and made a significant profit. Which of the following actions using Nina’s store profits would BEST increase productivity?
Create an emergency fund.
Hire more staff.
Service her community through social and educational means.
Pay for utilities and inventory in advance.
Develop a website that would enable customers to place orders online.
The various resources used to create a company’s goods and services are collectively referred to as ________.
factors of production
Which of the following is an example of real capital?
a business loan
a manufacturing plant
The economy of the United States is ________.
Leroy owns a small hardware store that is known for its high level of customer service. A large chain home improvement store has just opened up in his community. Which of the following would BEST help Leroy deal with his new competitor?
Move his store in order to be farther away from the large store.
Raise their prices, to show that their customer service is worth paying a premium for.
Pay his employees “under the table” to avoid costly payroll taxes and keep prices lower.
Advertise aggressively to increase consumer awareness of his reputation for service.
Close the business, since small stores cannot compete effectively with chain stores.
atricia owns a small electronics store in a rural area. She carries two different brands of weather radios that are equally priced. One model is selling well, but the other does not seem to be attracting customers. What should Patricia do?
Try to discourage customers from buying the model that is selling well.
Donate the poorly selling radios to local schools.
Reduce the price of the model that is not selling well.
Stop advertising the radio that is not selling well.
See if a rival electronics store will purchase the poorly selling radios.
BUS 100 Exam
01 : 04 : 03
· Addison wants her new t-shirt store to be environmentally friendly. With the concept of the green economy in mind, which of the following business initiatives would BEST make her business greener?
giving a discount to customers who claim to be environmentally conscious
mail out paper fliers advertising her business
raise prices to include the cost of a donation to a green nonprofit organization
install solar panels on her store’s roof to provide electricity
sell t-shirts with environmental slogans
________ refers to a company’s choice to relocate its production facilities overseas or subcontract at least some of the components to foreign companies at low costs.
Which of the following BEST enables all companies, regardless of size, to compete in the global market?
a talented workforce
Bill is an information technology manager for a large firm. His company needs to install a new software program, which he orders from his company’s online supplier. This is an example of ________ e-commerce.
consumer to consumer
The WAWA chain of convenience stores has over 500 locations in five states in the mid-Atlantic region of the United States. WAWA is an example of ________.
a national business
a specialty business
a regional business
a state business
a local business
A(n) ________ is the process by which products, information, and money move between supplier and consumer.
Celeste is interested in studying the effects that natural disasters have on the value of goods and services in the affected areas. Her area of study should be ________.
ohn is an employee at a car manufacturer. Today he has come into work to find that production has stopped because the government has determined that the steel used in the cars will be better used in the manufacture of a new railway line. John doesn’t mind, because although his wages are low, he gets paid whether there is any work for him to do or not. John MOST likely lives in a ________.
Which transaction best describes bartering?
an exchange of goods for currency, in which the price of something is determined by establishing its value against an underlying commodity
a transfer of goods without an exchange of currency, in which the price of something is determined by the seller, and the buyer agrees to pay at a later time
an exchange of goods without an exchange of currency, in which the price of something is determined by the needs and resources of each person involved in the exchange
an exchange of goods for currency, in which the price of something is determined by what buyers are willing to pay
an exchange of currency without an exchange of goods, in which the price of something is determined by what sellers demand
Mae’s Country Kitchen sells out of her cinnamon rolls every morning before 8:30 a.m., and her later customers ask her to make more. The next day, Mae makes an additional two dozen cinnamon rolls and raises the price of an individual cinnamon roll by 50¢. She sells all but one of them. Mae has found the ________ price of her cinnamon rolls.
A supply curve illustrates ________.
the effects of price on quantity supplied
that as supply decreases, demand decreases
the effects of price on quantity demanded
that as supply increases, the price stays the same
the effects of changes in resource prices on supply
When the supply curve and the demand curve for a single product or service are shown on the same graph, the point at which the curves intersect identifies the ________.
total profit earned by the producers
amount of the surplus to be anticipated
quality of the good or service being purchased
market price of the good
the number of substitute goods available
What best determines the level of competition?
the number of complementary products or service
the number of substitutes for a certain good or service
the degree of change in income levels
the degree of population change
the existence of complementary goods
_______ occurs when there are many buyers and sellers of products that are virtually identical and any seller can easily enter and exit the market.
The gross domestic product (GDP) measures ________.
the overall gross profit a country earns in a given year
a country’s overall increase in profitability from one year to the next
the overall market value of final goods and services produced in a country in a given year
a country’s overall income resulting from production in a year
a country’s overall expenditures in a given year
What does the monthly consumer price index (CPI) measure?
the number of new products purchased by consumers
the changes in prices of the resources used to create consumer goods
the changes in prices of goods and services as determined by the sellers
the amount of products and services manufactured domestically
the changes in prices of goods and services purchased by households
________ unemployment measures permanent unemployment associated with massive industry-wide changes that lead to complete elimination of the positions formerly held.
The government determines the appropriate level of taxes and spending through its ________.
The government manages the supply of money through its ________.
Cindy is a popular actress and has won countless acting awards in her 15 years in the industry. People always ask her what her secret is, and Cindy tells them, “Hard work always pays off!” She adds that each time she acts she’s giving her all. Cindy’s belief is most likely in line with her ________.
“Nice guys finish last.” and “Hard work always pays off” are examples of ________.
Which of the following ethical issues should be of the LEAST concern to a business?
A customer has failed to report all of her income to the IRS.
An employee who operates equipment drinks several beers while offsite eating lunch.
An employee spends time shopping online and on Facebook when he should be working.
An employee uses recreational drugs on the weekends.
A manager is having a romantic relationship with one of his team members.
In business relations all of the following are influenced by our personal ethics EXCEPT ________.
Which of the following would LEAST likely be a source of a company’s values and principles?
the owner’s behaviors and priorities
the company’s marketing campaign
the company’s record of legal compliance
the company’s mission statement
the company’s code of ethics
Victor is using the Internet to research past charges that have been filed against the pharmaceutical company Pharmacure. Victor is primarily trying to find out about Pharmacure’s ________.
record of legal compliance
code of ethics
Which of the following is NOT an example of how corporate social responsibility can be consistent with profitability?
paying employees in a developing nation more than the minimum
offering bonuses to employees who embellish profit and loss statements
improving environmental practices in their factories and plants
using recycled styrofoam as cups in a coffee shop
encouraging employees to volunteer within the local community
Since goods are more widely manufactured and sold in the global marketplace, this has caused U.S. companies to ________.
close down offshore manufacturing facilities because of different ethical standards
face difficult decisions about ethical standards on tough issues such as child labor, pollution, fair wages, and human rights
ignore ethical standards in their U.S. facilities to make them more competitive
have more control over ethical standards in other countries since governments are eager to meet the expectations of companies that wish to operate within their borders
respect and care for their employees in the U.S. with higher ethical standards
When the banana supplier Chiquita begins to improve conditions for its workers by constructing schools for employees’ families, this is an example of which of the pillars of corporate social responsibility?
marketing and consumer issues
ethical sourcing and procurement
environmental, health, and safety concerns
human rights and employment standards in the workplace
ethics training program
What is a company’s unique responsibility to its stockholders?
to be a good corporate neighbor
to create a stable balance sheet between income and expenses
to provide jobs to workers
to make a profit
to produce products that the public will find useful
A toy company regularly donates some of its profits to charitable organizations. This company is exercising ________.
public ratings and rankings
socially responsible investing
Jeremy is a telemarketer who is hearing impaired. His hearing aid helps him take calls at work and this compensates for his disability. He accidentally broke his hearing aid and did not have the money to replace it. He asked for an advance on salary and was refused. He asked for a loan and was refused. As a result, Jeremy was unable to take calls from customers and he was fired from his job because of “poor performance.” Which government agency shall he call to help Jeremy in this situation?
the Equal Employment Opportunity Commission
the Securities and Exchange Commission
the United States Congress
the Department of Health and Human Services
the United States Department of Agriculture
The Sarbanes-Oxley Act requires that ________.
companies uphold the ADA
CEOs verify their companies’ financial statements and vouch for their accuracy with the SEC
companies be held financially responsible for environmental damage caused by their actions
all food packaging displays complete nutritional information
investment bankers disclose the percentage of their assets that are considered high risk
The link between labor costs in China and the price of MP3 music players in the U.S. is an example of ________.
Apple’s selling iPhones to customers in Africa, Asia, and Europe is an example of the globalization of ________.
An example of globalization of ________ is Toyota opening a factory in Kentucky.
A term that describes the movement of production away from a domestic production site to a foreign location is ________ outsourcing.
An engineering team has members from Egypt, Malaysia, Australia, Argentina, and the U.S. They communicate by email and videoconferencing. The work of this globalized team is made easier because of ________.
declines in trade barriers
increases in quotas
increases in democratization
a shrinking role for developing nations
The nation of Baa-Baa raises sheep relatively more efficiently than the nation of Snuggle. Snuggle weaves woolen blankets relatively more efficiently than Baa-Baa. Baa-Baa decides to specialize in sheep raising, to sell wool to Snuggle, and to buy blankets from Snuggle. Snuggle decides to specialize in blanket weaving, to sell blankets to Baa-Baa, and to buy wool from Baa-Baa. This international trade illustrates ________ advantage.
If the U.S. has the ability to produce more steel than any other country in the world, the U.S. has a(n) ________ advantage in steel production.
According to the theory of comparative advantage, if the U.S. and Mexico increase their trade with each other, the two countries will experience ________ standards of living.
no change in
The country of Kappa sells pizza for $1.00 each within its borders. But Kappa exports pizzas at a price of $0.30. This is an example of ________.
a local content requirement
cheap foreign labor
an administrative trade barrier
If Ecuador has a dispute with France over the importation of bananas, from which agency can Ecuador seek arbitration?
A free trade area that includes Canada and the U.S., but not Japan, is the ________.
North American Free Trade Agreement (NAFTA)
The Asia-Pacific Economic Cooperation (APEC)
Association of Southeast Asian Nations (ASEAN)
European Union (EU
What is the term for the sale of a domestically produced good in a foreign market?
An American company enters the Mexican market by sharing ownership of a subsidiary firm with a Mexican company. This is an example of a(n) ________.
contract manufacturing arrangement
In order to enter the Spanish market, a Moroccan firm establishes a store that is entirely owned by the Moroccan firm. This is an example of a(n) ________.
wholly owned subsidiary
contract manufacturing arrangement