BUS 150 EXAMS TEST PAPER ANSWERS AND
QUESTIONS SET A+
✔✔Pure monopoly - ✔✔A market structure in which a single firm accounts for all
industry sales of a particular good or service and in which there are barriers to entry.
✔✔Monopolistic competition - ✔✔A market structure in which many firms offer products
that are close substitutes and in which entry is relatively easy.
✔✔Oligopoly - ✔✔A market structure in which a few firms produce most or all of the
output and in which large capital requirements or other factors limit the number of firms.
✔✔Macroeconomics - ✔✔The subarea of economics that focuses on the economy as a
whole by looking at
aggregate data for large groups of people, companies, or products.
✔✔Microeconomics - ✔✔The subarea of economics that focuses on individual parts of
the economy, such as households or firms.
✔✔Recession - ✔✔A decline in GDP that lasts for at least two consecutive quarters.
✔✔Monetary policy - ✔✔A government's programs for controlling the amount of money
circulating in the economy and interest rates.
✔✔Fiscal policy - ✔✔The government's use of taxation and spending to affect the
economy.
✔✔Profit - ✔✔The money left over after all costs are paid.
✔✔Revenue - ✔✔The money a company receives by providing services or selling
goods to customers.
, ✔✔What philosophies and concepts shape personal ethical standards? - ✔✔According
to this approach, people should act so as to generate the greatest good for the greatest
number. Every human is entitled to certain rights such as freedom and the pursuit of
happiness. Another approach to ethical decision-making is justice, or what is fair
according to accepted standards.
✔✔How can organizations encourage ethical business behavior? - ✔✔Top
management must shape the ethical culture of the organization. They should lead by
example, offer ethics-training programs, and establish a formal code of ethics.
✔✔What is corporate social responsibility - ✔✔The concern of businesses for the
welfare of society as a whole. It consists of obligations beyond just making a profit and
goes beyond what is required by law or union contract.
✔✔How do businesses meet their social responsibilities to various stakeholders? -
✔✔Businesses are responsible to employees. They should provide a clean, safe
working environment.
✔✔What are the trends in ethics and corporate social responsibility? - ✔✔Today,
corporate philanthropy is shifting away from simply giving to any needy group and is
focusing instead on strategic giving, in which the philanthropy relates more closely to
the corporate mission or goals and targets donations to areas where the firm operates.
A second trend is toward a new social contract between employer and employee.
Instead of the employer having the sole responsibility for maintaining jobs, now the
employee must assume part of the burden and find ways to add value to the
organization.
As the world increasingly becomes a global community, multinational corporations are
now expected to assume a global set of ethics and responsibility. Global companies
must understand local customs. They should also involve local stakeholders in decision-
making. Multinationals must also make certain that their suppliers are not engaged in
human rights violations.
✔✔Justice - ✔✔What is considered fair according to the prevailing standards of society;
an equitable distribution of
the burdens and rewards that society has to offer.
✔✔Utilitarianism - ✔✔A philosophy that focuses on the consequences of an action to
determine whether it is right or wrong; holds that an action that affects the majority
adversely is morally wrong.
✔✔Ethics - ✔✔A set of moral standards for judging whether something is right or wrong.
✔✔Stakeholders - ✔✔Individuals or groups to whom a business has a responsibility;
include employees, customers,
the general public, and investors.
QUESTIONS SET A+
✔✔Pure monopoly - ✔✔A market structure in which a single firm accounts for all
industry sales of a particular good or service and in which there are barriers to entry.
✔✔Monopolistic competition - ✔✔A market structure in which many firms offer products
that are close substitutes and in which entry is relatively easy.
✔✔Oligopoly - ✔✔A market structure in which a few firms produce most or all of the
output and in which large capital requirements or other factors limit the number of firms.
✔✔Macroeconomics - ✔✔The subarea of economics that focuses on the economy as a
whole by looking at
aggregate data for large groups of people, companies, or products.
✔✔Microeconomics - ✔✔The subarea of economics that focuses on individual parts of
the economy, such as households or firms.
✔✔Recession - ✔✔A decline in GDP that lasts for at least two consecutive quarters.
✔✔Monetary policy - ✔✔A government's programs for controlling the amount of money
circulating in the economy and interest rates.
✔✔Fiscal policy - ✔✔The government's use of taxation and spending to affect the
economy.
✔✔Profit - ✔✔The money left over after all costs are paid.
✔✔Revenue - ✔✔The money a company receives by providing services or selling
goods to customers.
, ✔✔What philosophies and concepts shape personal ethical standards? - ✔✔According
to this approach, people should act so as to generate the greatest good for the greatest
number. Every human is entitled to certain rights such as freedom and the pursuit of
happiness. Another approach to ethical decision-making is justice, or what is fair
according to accepted standards.
✔✔How can organizations encourage ethical business behavior? - ✔✔Top
management must shape the ethical culture of the organization. They should lead by
example, offer ethics-training programs, and establish a formal code of ethics.
✔✔What is corporate social responsibility - ✔✔The concern of businesses for the
welfare of society as a whole. It consists of obligations beyond just making a profit and
goes beyond what is required by law or union contract.
✔✔How do businesses meet their social responsibilities to various stakeholders? -
✔✔Businesses are responsible to employees. They should provide a clean, safe
working environment.
✔✔What are the trends in ethics and corporate social responsibility? - ✔✔Today,
corporate philanthropy is shifting away from simply giving to any needy group and is
focusing instead on strategic giving, in which the philanthropy relates more closely to
the corporate mission or goals and targets donations to areas where the firm operates.
A second trend is toward a new social contract between employer and employee.
Instead of the employer having the sole responsibility for maintaining jobs, now the
employee must assume part of the burden and find ways to add value to the
organization.
As the world increasingly becomes a global community, multinational corporations are
now expected to assume a global set of ethics and responsibility. Global companies
must understand local customs. They should also involve local stakeholders in decision-
making. Multinationals must also make certain that their suppliers are not engaged in
human rights violations.
✔✔Justice - ✔✔What is considered fair according to the prevailing standards of society;
an equitable distribution of
the burdens and rewards that society has to offer.
✔✔Utilitarianism - ✔✔A philosophy that focuses on the consequences of an action to
determine whether it is right or wrong; holds that an action that affects the majority
adversely is morally wrong.
✔✔Ethics - ✔✔A set of moral standards for judging whether something is right or wrong.
✔✔Stakeholders - ✔✔Individuals or groups to whom a business has a responsibility;
include employees, customers,
the general public, and investors.
