midterm 3 Flashcards
a soul proprietorship introduces a form of risk
true
in which form of organization do owners have limited liability
LLC
which stockholders have the right to vote for board of directors
common
which business is easiest to form
soul proprietorship
which business entity involves mutual agency
partnership
which business entity has double taxation
corporation
which business entity has the most government regulation
corporation
which business entities have the hardest time gaining capital
sole proprietorship and partnerships
which business entity has the longest life span
corporation
which allows profit to belong to the owners
soul proprietorship
when 2 firms combine to make a new firm its called…
merger
what is an advantage of the corporation form of an organization
smooth transfer of ownership
when the US dollar is trading less than a foreign currency, the costs of foreign goods are…
more expensive
a contactual agreement where someone sells a business idea and gives the rights to use the name and sell a product/service in a given area is a…
franchise
what is the legal obligation of a corporation
acquire wealth for the stockholders
equity financing is about ownership not borrowing
true
the Sarbanes-Oxley act of 2005
establishes new or enhanced standards for all US public boards, managements, and accounting firms
the Dodd-Frank act of 2010
tightened regulation of credit rating agencies
4 functions of management
planning, organizing, leading, controlling
limits on number of products in a certain category a nation can import is called a …
import quota
setting work standards and schedules necessary to implement the firms tactical objectives is called
operational planning
ethical conflicts can occur due to
differing ethics codes, ignorance, organizational and cultural ethics, unrealistic performance goals
this tool identifies internal strengths and weaknesses
SWOT
studies suggest the leadership of the organization
plays and essential goal in ethical behavior
developing detailed, short-term statements about what is to be done, who is to do it, and how it has to be done describes
tactical planning
firms that consistently place value on ethical behavior and foster a culture and climate that orginates at the __ of the organization are more likely to be ethical
top
what % of the population is actively pursuing a new business venture
10%
__ is the tool of entrepreneurs where they exploit change as an opportunity for a different business or different service
innovation
a feasibility analysis
is an initial way to test the viability of the business concept
feasibility analysis can be valued for a product or a service based on a business concept
true
I will have to pay an interest on __ financing
debt
I will give up a portion of ownership through __ financing
equity
entrepreneurs and their ventures
create jobs, are innovative, are often better in touch with market needs, are highly adaptive
countries like __ are known for their expansive natural resources
saudi arabia and Venezuela
a potential negative impact of outsourcing might be
reduction of domestic jobs
exporting produces jobs for the exporting country
true
there is no global or international. system of laws therefore these laws are inconsistent
true
US firms must follow US laws while conducting global business
true
a partnership in which firms join to undertake a major project and share technology and risk is called a
joint venture
a partnership between firms established to help each other build competitive advantage but not risk and profits is called
strategic alliances
these are taxes on imports that make imported goods more expensive
tariff
government tariffs benefit
producers of products with tariffs
a favorable balance of trade occurs when the value of
imports is less than the value of exports
a major advantage of licencing is
very little cost to owner
a business __ obey the law or deal with consequences
must
primal and civil law are derived from these sources
statutory law
if global trade experts predict that the value of the dollar will soon fall it will result in
prices of imported goods falling but prices of US goods sold overseas to rise
people from other nations sometimes comment in the ethnocentric attitudes of US businesses
believe that American culture is superior to other cultures
obeying the law is __ ethical behavior
the first steps toward
violations of __ law may result in fines but not imprisonment
civil
a purposeful unlawful act to deceive or manipulate to trick people
fraud
a firm’s corporate social responsibility describes its
concern for the wealfare of society
organizational structure of a corporation permits
stockholders to elect the board of directors
a merger involving a bakery and a grocery store is an example of a…
linear
which alternative disputes resolution is a form of negotiation involving a thirds party mediator to help reach a non binding settlement
mediation
current trade data shows one county exports far more to other nations than its imports, this country has
an unfavorable balance of trade
Us consumers purchasing olives from Spanish, California, and Texas grown varieties, imported olives are subjected to tariffs. what is most likely to mean for US consumers
domestically grown olives will cost less than Spanish- grown olives
a __ is a written document that details the business ideas the target market, and the business’ competitive advantage, financial resources available and the quantification of the management
business plan
what description best reflects entrepreneural personality traits
tolerant of uncertainty and highly energetic
a patent gives inventors elusive rights to their inventions for
20 years
a __ will protect the creators of original works of authorship such as literary, dramatic, musical, and artistic works
copyright
__ will protect use of symbols, shapes, colors, and sounds- all parts of a firms trade dress
trademark
__ will protect other from coping the unique design a physical product
patent
an ethical dilemma refers to a situation where you must
chose between a correct and incorrect options
a merger involving a software manufacture and a clothing manufacturer is an example of a
conglomerate
which of the following is required for enforcing a legal contract
voluntary agreement, consideration, contractual capacity, legal purpose
charitable donations corporations are considered
corporate philanthropy
a person working within a corporation to launch a new products and profit is called a
intraprneur
although the FTC regulates a variety of business practices, it allocates a large portion of its resources to curbing
false advertising, misleading pricing, deceptive packaging, deceptive labeling
the _ was enacted to simplify law for business transaction
Uniform commercial code
violations of the clean air act are enforced by the
environment protection agency EPA
what alternative dispute method is a form of negotion involving a third part to reach a binding settlement
binding arbitration
what are angel investors
private investors in emerging startups in exchange for equity stakes
what are the 9 building blocks
value proposition, customer segments, channels, customer relations, revenue model,ket resources, key partnerships, key activities, cost structure
what are the strategies for reaching global market
licensing, exporting, franchising, joint ventures, control manufacturing, foreign direct
