BUSI 1301 Study Guide Final Answered 100% Correct

Common stock - ANSWER-Mark owns stock in Walgreens. He has the right to vote on company issues and examine corporate records, and he receives dividends from Walgreens' profits. What type of stock does Mark own? a. "A" class b. Preferred c. Proxy d. Dividend e. Common****** Closed corporation. - ANSWER-Shares of Burger House stock cannot be purchased on any stock exchange or by just any individual. This means that Burger House is a(n) a. partnership. b. open corporation. c. alien corporation. d. closed corporation.***** e. family corporation. Receive part of the profit before other classes of stock. - ANSWER-Common stock carries all the following rights except the right to a. attend the annual stockholders' meeting. b. receive information about the corporation. c. share in profits. d. receive part of the profit before other classes of stock.****** e. vote on changes to the corporate charter. a. exporting.****** - ANSWER-The United States sells industrial supplies and materials to many nations around the world. The United States thus engages in a. exporting.****** b. dumping. c. tariffing. d. deficit trading. e. importing. False******* informational resources - ANSWER-The four resources that a business must use to operate successfully include material resources, human resources, financial resources, and operational resources. True False******* informational resources b. was conceived as a collective-bargaining unit.***** - ANSWER-The Organization of Petroleum Exporting Countries (OPEC) a. was founded in 1975. b. was conceived as a collective-bargaining unit.***** c. was organized in response to the formation of the European Community. d. was effective in increasing the supply of oil. e. has as its objective completely free trade among its members. True***** - ANSWER-Licensing and exporting can be considered relatively low-risk methods of entering foreign markets. True***** False e. all of the above.******* - ANSWER-The major forces in consumerism are a. individual consumer advocates. b. consumer organizations. c. consumer education programs. d. consumer laws. e. all of the above.******* e. requiring that ethical behavior be profitable.****** - ANSWER-As a result of the Bhopal incident, in which a toxic gas leak killed thousands of people, leading officials at Union Carbide have dedicated themselves to operating their business ethically. Ways in which the company can encourage ethical behavior include all of the following except a. holding ethics training sessions. b. formalizing a corporate code of ethics. c. encouraging whistle-blowing. d. promoting open decision making. e. requiring that ethical behavior be profitable.****** d. syndicate.****** - ANSWER-Prudential and several other large insurance companies have joined together to underwrite an extremely large insurance policy. This sort of association is referred to as a(n) a. cooperative. b. vertical merger. c. alliance. d. syndicate.****** e. conglomerate. e. strategic alliances.***** - ANSWER-The newest forms of international business structure developed to create competitive advantage on a worldwide basis are called a. export agents. b. trading companies. c. licensees. d. countertraders. e. strategic alliances.***** b. it is less expensive than making their own.***** - ANSWER-Large firms generally buy parts and assemblies from smaller firms because a. they can control small businesses this way. b. it is less expensive than making their own.***** c. doing so creates goodwill. d. they are required to do so by government regulations. e. large firms want to keep small firms in business. e. nontariff barrier.****** - ANSWER-Any measure imposed by a government to favor domestic products over foreign products not involving taxes is a(n) a. nonmonetary restriction. b. embargo. c. import duty. d. restriction of trade. e. nontariff barrier.****** a. Land and natural resources, labor, capital, and entrepreneurship.****** - ANSWER-Tilly, geologist, has discovered a new mineral which she named brellio. She believes that it can be used to generate clean energy. The mineral is much like uranium and can be used to create energy without the harmful radiation side-effects. What factors of production will she use to mine the mineral and establish her energy business? a. Land and natural resources, labor, capital, and entrepreneurship.****** b. Labor, advertising, and capital. c. Natural resources, political associations, and capital. d. Entrepreneurship, labor, and ethics. True****** - ANSWER-A bill of lading is issued by the transport carrier to the exporter to prove that merchandise has been shipped. True****** False e. be informed.******* - ANSWER-The motion picture industry uses a rating system to describe the content of its movies. Movies are accompanied by ratings such as PG (parental guidance suggested) or R (not suitable for those under 17). This rating system satisfies consumers' right to a. be heard. b. censorship. c. safety. d. watch what they want to watch. e. be informed.******* c. National Franchise Mediation Program***** - ANSWER-Which of the following was established to arbitrate disputes between franchisors and franchisees? a. Federal Trade Commission b. Partnership for Franchisees' Rights c. National Franchise Mediation Program***** d. Association for Franchise Arbitration e. Court system c. created by individual inventors and small companies.***** - ANSWER-Penicillin, airplanes, and air conditioning were all a. created through government-sponsored research. b. created by large corporations. c. created by individual inventors and small companies.***** d. invented in the nineteenth century. e. invented by Russians. a. The purchase of Marathon Oil Company by U.S. Steel****** - ANSWER-Which of the following is an example of a vertical merger? a. The purchase of Marathon Oil Company by U.S. Steel****** b. The purchase of Gulf Oil by Standard Oil Company of California c. The purchase of Malone's Cost-Plus Supermarkets by the Kroger supermarket chain d. The purchase of TWA by American Airlines e. The purchase of Kentucky Fried Chicken by PepsiCo b. franchisee.******* - ANSWER-Eric decides to purchase and operate a Subway restaurant. Eric is the a. franchisor. b. franchisee.******* c. licensor. d. franchise. e. trainer. d. satisfy the needs of its customers.**** - ANSWER-The ultimate objective of every firm, such as IBM, Hewlett-Packard, JC Penney, and Cengage Learning, must be to a. pay out money to cover the various expenses of doing business. b. know that people generally buy a product and store it. c. sell either to other firms or to consumers. d. satisfy the needs of its customers.**** e. make it impossible to satisfy customers. a. Horizontal merger.***** - ANSWER-If Pizza Hut and Papa John's Pizza united to become the new company of Papa's Hut, what transaction created the new company? a. Horizontal merger.***** b. Horizontal melding. c. Proxy war. d. Vertical acquisition. True********* - ANSWER-Small firms have traditionally added more than their proportional share of new jobs to the economy. True************* False True****** - ANSWER-SCORE is a group of retired businesspeople who volunteer their services to small businesses through the SBA. True****** False b. $300,000****** - ANSWER-The average size of an SBA-guaranteed business loan is about a. $200,000. b. $300,000.****** c. $500,000. d. $25,000. e. $100,000. a. have a relatively low initial investment.******* - ANSWER-Businesses such as flower shops, restaurants, bed and breakfasts, and automobile repair are good candidates for entrepreneurs because they a. have a relatively low initial investment.******* b. do not require any skills. c. require no special equipment. d. can obtain financing easily. a. whistle-blowing.****** - ANSWER-Excellent Air Incorporated (EAI) Excellent Air Inc. is a well-known establishment in the airline business. It is currently one of the top firms in the industry. The company prides itself on good customer service and being concerned with the broader societal good. EAI management is not only concerned with doing things right, but also with doing the right things. Many of their decisions reflect this philosophy. Initially, the company had a problem with employees reporting their suspicions about unethical behavior to the press instead of to EAI management. As a result, the company made sure its employees knew the firm's guidelines on fixing ethical issues. EAI also developed a code of conduct based on standards that continue to be upheld within the company. Since the code of conduct has been put in place, there have been fewer ethical violations. Although employee salaries at EAI are not as high as those at competing firms, the company experiences very low employee turnover. The firm has created a corporate culture that not only makes its employees want to stay, but that also results in higher profits. If EAI can maintain the relationship it has built with its employees and customers, it will have little difficulty keeping up its remarkable success.