BUS 101: Test 1 (Chapters 1-4) questions with
verified answers
Ans✓✓✓Form of business ownership and the easiest to establish
Ans✓✓✓Suppose Coca-Cola allows a Mexican firm to use its name,
formula, and brands in return for loyalty
Absolute advantage Ans✓✓✓Exists when a country is the only source
or producer of an item
Adam Smith Ans✓✓✓Father of capitalism
All partners sharing business responsibility Ans✓✓✓Is not a
disadvantage of forming a partnership
Articles of partnership Ans✓✓✓Legal documents that identify the basic
agreements between partners
Balance of payments Ans✓✓✓The difference between the flow of
money into and out of a country
Board of directors Ans✓✓✓A group elected by the stockholders of a
corporation to oversee its general operation and set long-term objectives
, Budget deficit occurs when a nation: Ans✓✓✓Spends more than it
takes in from taxes
Business ethics Ans✓✓✓The principles and standards that determine
acceptable conduct in business organizations
Canada, US, Mexico Ans✓✓✓Merged into one market by NAFTA
Cartel Ans✓✓✓A group of nations or companies that agree to act
together as a monopoly and not compete with each other in order to
generate a competitive advantage in the world markets
Code of ethics Ans✓✓✓A set of formalized rules and standards that
describes what a company expects of its employees
Company time Ans✓✓✓Number one area of misconduct observed in
the workplace
Comparative advantage Ans✓✓✓One country can produce a product
much more efficiently than it can product other items
Consumerism Ans✓✓✓The activities that individuals, groups, and
organizations undertake to protect their rights as customers
verified answers
Ans✓✓✓Form of business ownership and the easiest to establish
Ans✓✓✓Suppose Coca-Cola allows a Mexican firm to use its name,
formula, and brands in return for loyalty
Absolute advantage Ans✓✓✓Exists when a country is the only source
or producer of an item
Adam Smith Ans✓✓✓Father of capitalism
All partners sharing business responsibility Ans✓✓✓Is not a
disadvantage of forming a partnership
Articles of partnership Ans✓✓✓Legal documents that identify the basic
agreements between partners
Balance of payments Ans✓✓✓The difference between the flow of
money into and out of a country
Board of directors Ans✓✓✓A group elected by the stockholders of a
corporation to oversee its general operation and set long-term objectives
, Budget deficit occurs when a nation: Ans✓✓✓Spends more than it
takes in from taxes
Business ethics Ans✓✓✓The principles and standards that determine
acceptable conduct in business organizations
Canada, US, Mexico Ans✓✓✓Merged into one market by NAFTA
Cartel Ans✓✓✓A group of nations or companies that agree to act
together as a monopoly and not compete with each other in order to
generate a competitive advantage in the world markets
Code of ethics Ans✓✓✓A set of formalized rules and standards that
describes what a company expects of its employees
Company time Ans✓✓✓Number one area of misconduct observed in
the workplace
Comparative advantage Ans✓✓✓One country can produce a product
much more efficiently than it can product other items
Consumerism Ans✓✓✓The activities that individuals, groups, and
organizations undertake to protect their rights as customers
