PF Intro to Business Combined Exams Study Guide Flashcards
The idea that countries should produce and sell goods that they produce most effectively and efficiently, and buy goods that other countries produce most effectively and efficiently, is known as
A. comparative advantage theory.
B. absolute advantage theory.
C. free trade.
D. efficiency balanced trade.
Consider two used-car dealers: Bob’s Better Wheels and Dewey, Cheatum, and Howe Motors. Their prices are basically the same for similar vehicles even as their advertising screams that their products are different. Which kind of competition is going on here?
Monopolistic competition
The _______, created in 1995, is assigned the task of mediating international trade disputes.
WTO
In global trade, when the difference between money coming into a country from exports and money leaving a country due to imports or money flows from other factors is known as the
balance of payments
The EU is an example of a trading bloc, or _______, that has a common external tariff and no internal tariffs, and that coordinates laws to facilitate trade between member countries.
common market
Often, the _______ the risk, the _______ the rewards.
higher; higher
Typically, the quantity of products people are willing to buy will _______ when prices _______.
decrease; increase
In general, a person who owns and operates his or her own business can be thought of as a/an
entrepreneur.
Which statement best characterizes Adam Smith’s concept of the “invisible hand”?
The quest for personal gain works for the common good.
Uniform product codes are also known as
bar codes.
Calendula, Inc. sells its herbal teas at a lower price in foreign countries than those charged to consumers in Calendula’s home nation. In global trade, this is known as
dumping
_______ is the study of how to increase resources and create conditions that will make better use of resources.
Resource development
Americans are often accused of being ethnocentric. This means that
Americans feel their culture is superior to other cultures.
Which of the following about a capitalist system is correct?
It relies on honesty, integrity, and high ethical standards.
In a _______, consumers ultimately decide what should be produced.
free market system
The _______ denotes a common pattern wherein there’s a period of rapid growth in the economy when supply and demand stimulate each other, alternating with a period of decline accompanied by diminishing demand and supply.
business cycle
The number of businesses owned by immigrants, minority groups, and women has _______ in recent years.
increased
The trend toward two-family income has led to
flexible work schedules, pregnancy benefits, and elder-care programs.
The five factors of production include land, _______, capital, entrepreneurship, and _______.
labor; knowledge
To help employees become more effectively productive, companies may form cross-_______ teams that draw on people from different departments to work on a special project.
functional
Fair pay, respect for persons, and faithfully kept promises are characteristics of social responsibility to
employees.
In any company, _______ must guide and inspire the implementation and enforcement of an ethics code.
managerial leadership
Which of the following statements about the Revised Uniform Partnership Act is correct?
It’s a default agreement for establishing such things as how partners will divide profit.
Without doubt, the biggest disadvantage to franchising is
the startup cost.
In the world of business, a _______ is made up of a group of people or organizations who have unsatisfied wants and needs and the resources to fulfill those wants and needs.
market
The employees of Abs “R” Us, which includes 12 fitness parlors in and around the metro area, feel they can improve the performance of the company. They decide to pool their resources to purchase the company. This would be called a _______ buyout.
management
Some equivalent of the Golden Rule, which says we should treat others the way we wish to be treated, is found
in all major religious and philosophical systems.
As derived from the Markkula Center for Applied Ethics, which of the following should be one of eight guiding principles?
Preventing harm to others and to the world around us
It looks a lot like a corporation and can sell stock, but it’s taxed like a partnership. This would be a/an
master limited partnership.
The major disadvantage of a sole proprietorship is
unlimited liability.
A/An _______-based ethics code emphasizes preventing unlawful behavior through controlling behavior and punishing wrongdoers.
compliance
Xerox has a program called Social _______ Leave that allows employees to take leave for up to a year, at full pay and benefits, to work for a nonprofit organization.
Service
Respecting corporate social responsibility, Ronald McDonald Houses provides an example of corporate
philanthropy.
You learn that your friend has cheated on a final exam. If you decide to follow your text’s five-step process for making ethical decisions in your personal life, your first
recognizing that an ethical issue exists.
A social _______ is a systematic evaluation of a company’s progress in implementing socially responsible programs.
audit
According to your text, our main sources of ethical standards are religion and
culture.
The idea of providing the greatest good for the greatest number would best apply to the _______ approach to establishing ethical standards.
utilitarian
You’re in search of a type of company organization that provides limited liability, management flexibility, a choice of taxation schemes, and freedom from the hassles of selling stock or holding annual meetings. You would almost certainly choose to organize as a/an
LLC company.
True or False about the Sarbanes-Oxley Act?
It offers some protection to whistleblowers.
True
According to the _______ approach as a basis for ethical standards, you’ll make an ethical decision based on respecting and protecting the moral rights of those who will be affected by your decision.
rights
