Exam Flashcards by Morgan White

What are Bonds?

debt

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A business classified as a Small Business is based on the “size standard” which:

is based on either number of employees or annual revenue based on the industry.

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___ awards the inventor with the exclusive right to make and sell an invention for a period of time.

Patent

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A company wishing to reinforce its commitment to ethical behavior could institute:

A Whistleblower program

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Kate and Felice have come to an agreement. Kate will sell Felice a specific number of her prescription pills for a set dollar amount. This is not a legal contract because it fails to meet which requirement(s) of a contract:

legality

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Nike uses a “swoosh” on their apparel. This is an example of a:

trademark

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You work for a company that manages apartment buildings. The company did not renew their contract with a local landscaping company and are now looking for a new landscaping services provider for the apartment complex. You are asked by management to locate a new landscaping company. Your son runs his own lawn care business. If he gets the contract for the apartment complex you will no longer need to make his car payments and he might even start paying you rent. This situation brings up a potential ________ for you.

conflict of interest

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A company acquires goods or products from another country and sells them in domestic markets. This is an example of:

importing.

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A breach of contract is when a party in a contract fails to ________.

fulfill their obligations

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The term “failing forward” refers to:

Learning from mistakes.

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Which is an examples of a tort suit?

a tenant who damages a landlord’s property

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The American Accounting Association refers to accounting as the process of identifying, measuring, and communicating economic information. Accounting is also referred to as:

The Language of Business

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For a/the ________, the/an ________ is an alternative to expanding through the establishment of a new location, which avoids the financial investment and liability of a chain of stores.

Franchisor, franchise

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A legal partnership agreement should include:

how future business decisions will be made, including how the partners will divide profits, resolve disputes, change ownership, and how to dissolve the partnership.

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Companies today are held to higher standards than ever before. Consumer and other groups consider not only the quality and price of a company’s products but also its ________.

commitment to environmental and social concerns

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__ regulate(s) actions and behaviors that lie beyond control from government and applies to all aspects of business conduct relevant to an entire organization and individual actions.

Business ethics

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A ________ gives the owner the right to prevent others from using a company’s product name or logo.

trademark

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____ provides individuals within an organization with the financial information needed to make good business decisions.

Managerial accounting

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A ________ tends to support a company’s obligation to its’ stakeholders, rather than regulating a profession.

code of ethics

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Bitcoin is an example of which of the following?

cryptocurrency

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The accounting equation represents the relationship between assets, liabilities, and:

the owner’s equity of a business

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The daily stress of day-to-day business in a startup requires an entrepreneur to have these (have what it takes) to survive:

Motivation and passion.

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Exports are an important source of what for many countries?

revenue

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Businesses are most likely to hire new employees during which stage of the economic cycle?

expansion

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Creativity, vision, and ________ are the elements without which there is not entrepreneurial venture according to the author.

an ability to identify opportunities.

Which of the following is a legal entity completely separate from the entities who own it?

corporation

Benefits of being a franchisee include:

access to a template for the business.

The primary goal of a nonprofit business is to:

use its revenues to provide a public service.

Infrastructure needed to transport goods in a foreign country include:

roads, railways, and port systems.

___ measures a company’s ability to pay its debts, while ________ measures the company’s ability to earn a profit.

liquidity ratios: profitability tests

The accounting equation for a given point in time can be calculated using which financial statement?

balance sheet

A competitive market is one in which:

there are a large number of buyers and sellers.

The ________ bans unfair or deceptive acts or practices.

Federal Trade Commission Act

A person who seeks to earn profits by assuming the risk of owning and running a business is a(n):

entrepreneur.

The one unique point in which quantity demanded equals quantity supplied is called:

equilibrium.

The four accounting statements required by GAAP are prepared in a certain order. What is the order?

Income Statement, Statement of Owner’s Equity, Balance Sheet, Statement of Cash Flows.

The principle of caveat emptor

insufficient for consumers safety

Which of the following has primary responsibility for financing economic development on behalf of the international community?

The World Bank

Corporations whose stock can be sold to the general public are, by definition:

public corporations

This group makes up the largest economic group:

consumers

A ________ is owned and managed by a group of individuals who share in decision-making and risk.

partnership

Precedent means that future cases are decided by similar previous cases unless ________.

new precedent is established

The purpose of this legislation is to reduce unethical corporate behavior, protect investors from the possibility of fraudulent accounting activities by corporations, and decrease the likelihood of future corporate scandals. It is the:

Sarbanes-Oxley Act (SOX).

The ________ shows the income and expenses of a company over a period of time.

income statement

What business function is responsible for making sure that organizational strategies and goals are aligned with staffing plans?

management

One of the main responsibilities of the World Trade Organization is to ______

provide a forum for negotiations, agreements and settling disputes among nations.

Apple Pay is an example of which of the following?

mobile commerce

The ________ provides a snapshot of the company’s financial position at a specific point in time.

balance sheet

Patents, trademarks and ________ are three main ways to protect intellectual property.

copyrights

Pertaining to international trade, the acronym WTO stands for:

World Trade Organization.

Financial reports are created and used to evaluate the financial performance of the business. Which function is responsible for creating the reports?

finance

Using their comparative and absolute advantages allows countries to:

enter global trading markets.

Whistleblower laws in the United States are designed to protect:

Employees

Which type of intellectual property protection is available to both published and unpublished works?

A business established a website. Now their customers can order products online without visiting the store, they are engaged in:

e-commerce.

A ________ is owned by a single individual who is responsible for all decisions and liabilities.

sole proprietorship

A tort ___

is a wrong that creates a legal liability.

The first three topics in Guy Kawasaki’s more V.C.-friendly business plan structure are:

Problem, Your Solution, and Business Model.

Becoming an entrepreneur is attractive to many because it is not just a job, but a:

lifestyle.

What is an LLC?

Limited Liability Company—a business structure that is attractive to small business owners because they provide the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership.

Corporate Social Responsibility strategies encourage:

a positive impact on the environment and stakeholders.

You are the Chief Purchasing Officer for an established business. Your daughter (a recent college grad with a business degree) applies for a job with your company. If hired, your family relationship could constitute concerns of:

Nepotism

If an owner of a business were to die, which of the following entities would cease to exist (which type of business would “die” too)?

a sole proprietorship

____ is the relationship between the price a customer pays for the good or service and perceived benefits the customer receives.

Value

David is looking to buy a used kayak through an online auction. He wants some type of protection, however this sale would be covered by the principle of ________.

caveat emptor (“buyer beware”)

Golf outings, meals, entertainment, and vehicles have been used in lieu of cash to pay purchasing agents in exchange for business deals. This type of payment is known as:

Bribery

What government entity is responsible for monitoring the U.S. money supply?

Federal Reserve

A business collects demographic information about what potential and current customers purchase, where they live, and how they spend their time. This business is responding to the:

social environment.

A ________ is a guarantee that a product meets certain standards of performance.

warranty

What type of environment impacts a business if low interest rates and government incentives are offered to open or expand businesses?

the economic environment

The purpose of a financial institution such as a bank or credit union is to ______

act as an intermediary between savers and borrowers

The acid-test (quick) ratio is different from the current ratio in that it:

emphasizes assets that are quickly and reliably turned into cash.

If a company adjust its processes to offer good service and high-quality products at competitive prices, they are responding to which external force?

the competitive environment

A supply curve is a graphical illustration of the relationship between price and:

quantity supplied.

__ are a set of standards that govern the conduct of a person, especially a member of a profession. A good example is the medical profession’s oath to "do no harm."

Ethics

_ is the way a service or good is produced and divided into a variety of tasks performed by different workers, instead of the same person performing all the tasks.

division of labor

Financial accounting is utilized by ________ in order to make investment decisions:

stockholders and creditors

___ usually creates one larger company and one of the original two companies ceases to exist.

A merger

In general, supply curves slope:

upward from left to right.

Intellectual property law governs the protection of ________.

ideas

A franchisee is generally expected to pay:

royalty fees for support from the franchiser.

The net income from the income statement will be used in the:

statement of retained earnings (or owner’s equity)

99% of all U.S. business is made up of:

Small business.

The most common form of business ownership in the U.S. is a:

sole proprietorship

An organization that provides goods or services for the purpose of making a profit is called a(n):

business.

What are some important factors to consider when choosing an organizational type?

Control versus responsibility, and risk tolerance.

The reason we rarely use the barter system today is:

It is difficult to find two parties that have something they both want to trade.

The merger of large corporations who compete in the same market must pass the scrutiny of:

Antitrust legislation

A franchise:

provides a proven product, business model and brand to the franchisee.

What are four main purposes for law?

establishing standards, maintaining order, resolving disputes, and protecting liberties and rights

External forces that affect businesses include:

advances in technology.

Which of the following entities are subject to double taxation?

corporations

Bribery is one of ________ examples of a corporation engaged in unethical behavior.

the most common

The structure of the business, the introduction of the team, and an organization chart would be described in this section of the business plan:

Organization and Management.

Sylvania claims that their light bulbs “last 10 times longer and use 75% less energy than standard bulbs.” This is an example of a(n) ________.

express warranty

___ is a form of protection provided to the authors of “original works of authorship,” including literary, dramatic, musical, artistic, and certain other intellectual works.

Countertrade is the exchange of goods and services without:

exchanging currency.

A free market is described by which of the following statements?

The government does not intervene in any way.

The body of law resulting from laws passed by legislature is _____

Statutory law

Which of the following are external stakeholders in a business?

creditors

___ damages are intended to compensate a victim, while ________ damages are intended to punish a defendant.

Compensatory : punitive

License agreements usually cover property that is ________, such as trademarks, images, patents, or production techniques.

intangible

The accounting equation is:

assets − liabilities = owner’s equity

Import quotas ______

set limits on the quantity or value of imports.

The term ________ refers to a factory that is guilty of some sort of labor abuse or violation, such as unsafe working conditions, employment of children, mandatory overtime, payment of less than the minimum wage, unsafe working conditions, abusive discipline, sexual harassment, or violation of labor laws and regulations.

sweatshop

If a bribe has been paid to a foreign government official to obtain or retain business, then it is a violation of the:

Foreign Corrupt Practices Act.

Noah’s company is privately owned. His company:

does not offer shares of the company to the public.

Federal consumer protection laws are mainly enforced by _____

Federal Trade Commission, Consumer Financial Protection Bureau, FDA & US Department of Justice

The market value of all goods and services produced by the economy in a given year is known as:

Gross Domestic Product (GDP).

Often the ethical tone of a business is set by:

organizational leadership.

The downward slope of a demand curve illustrates the pattern that as ________ decreases, ________ increases.

price : quantity demanded

When more goods and services are exported than imported it is known as a:

trade surplus.

A company produces goods or products locally and sells them in foreign markets. This is called:

exporting.

The U.S. imports more goods from China than it sells or exports to China. We are said to have a ________ with China.

Trade Deficit

Businesses exist in an environment shaped by:

culture.

Common law is based on ____

precedent

While ________ beliefs are held by individuals, they can also be reflected in the values, practices and policies of decision makers in organizations.

ethical

The ________, sometimes called an earnings statement or profit and loss statement, reports the profitability of a business organization for a stated period of time.

income statement

Entrepreneurs are grouped into these 4 categories by Abraham’s BOSI framework:

Builder, Opportunist, Specialist, and Innovator

When two companies combine to form a new company it is called a(n):

merger

Exam Flashcards

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