BUS 101: Test 1 (Chapters 1-4) Comprehensive Exam.

Consumerism - correct answer The activities that individuals, groups, and organizations undertake to protect their rights as customers OSHA (Occupational Safety and Health Administration) - correct answer Enforces laws regarding workplace safety Absolute advantage - correct answer Exists when a country is the only source or producer of an item Comparative advantage - correct answer One country can produce a product much more efficiently than it can product other items Outsourcing - correct answer The transferring of manufacturing or other tasks to countries where labor and supplies are less expensive Balance of payments - correct answer The difference between the flow of money into and out of a country Cartel - correct answer 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 General agreement on tariffs and trade - correct answer A forum to discuss trade problems and negotiate a reduction of trade barriers Canada, US, Mexico - correct answer Merged into one market by NAFTA IMF (International Monetary Fund) - correct answer Makes short term loans to member countries with trade deficits and provides foreign currencies to member nations - correct answer Suppose Coca-Cola allows a Mexican firm to use its name, formula, and brands in return for loyalty Offshoring - correct answer The relocation of business processes by a company or subsidiary to another country Joint venture - correct answer The sharing of costs and operations a business between a foreign company and a local partner Strategic alliance - correct answer A partnership formed to create competitive advantage on a worldwide basis Direct investment - correct answer The purchase of overseas production and marketing facilities - correct answer Form of business ownership and the easiest to establish Secrecy - correct answer Advantages of a sole proprietorship Limited partnerships are generally used: - correct answer Articles of partnership - correct answer Legal documents that identify the basic agreements between partners All partners sharing business responsibility - correct answer Is not a disadvantage of forming a partnership Dividends - correct answer Profits of a corporation that are distributed in the form of cash payments to stock holders Corporate charter - correct answer A legal document that the state issues to a company based on information the company provides in the articles of incorporation