BUSA 4000 ACTUAL EXAM SCRIPT 2026
QUESTIONS WITH SOLUTIONS GRADED A+
◉ international collaborative venture . Answer: cross-border business
alliance in which partnering firms pool their resources and share costs
and risks of a venture.
◉ joint venture (JV) . Answer: form of collaboration between two or
more firms to create a jointly-owned enterprise.
◉ ex of FDI . Answer: •Volkswagen spent $1 billion to build a factory in
Poland to manufacture delivery vans.
•The British pharmaceutical firm GlaxoSmithKline purchased the global
Vaccines division of Switzerland's Novartis for $5.25 billion.
•Denmark's Lego Group spent more than 100 million euros to build a toy
factory in China.
•Japan's Toshiba formed a joint venture with the U.S. firm United
Technologies to establish R&D centers in Europe and India to support
joint innovation in the heating and air conditioning industry.
,◉ vertical integration . Answer: the firm owns, or seeks to own,
*multiple stages* of a value chain for producing, selling, and delivering
a product.
◉ horizontal integration . Answer: arrangement whereby the firm owns,
or seeks to own, the activities involved in a *single* stage of its value
chain
◉ ethical connections of FDI . Answer: side effects can harm the natural
environment, especially in countries with weak environmental laws.
Pollution and ecological destruction may emerge alongside rapid
economic growth.
◉ organizing framework . Answer: corporate governance
-ethics
-corporate social responsibility
-sustainability
◉ pyramid of ethical behavior . Answer: 1. corporate social
responsibility
2. ethical behavior
3. complying with laws and regulations
, ◉ Ethics . Answer: moral principles and values that govern the behavior
of people, firms, and governments, regarding right and wrong.
◉ corruption . Answer: practice of obtaining power, personal gain, or
influence through illegitimate means, usually at others' expense. The
abuse of power to achieve illegitimate personal gain.
◉ Bribery . Answer: refers to offering, giving, receiving, or soliciting
anything of value to influence the actions of a government official or a
corporate manager.
◉ Improper Ethical Behavior May Result When: . Answer: •Top
management sets goals and incentives aimed at promoting good
outcomes (e.g., profits) that instead encourage bad behaviors.
•Employees overlook unethical behavior in others because of peer
pressure or self-interest.
•Managers tolerate lower ethical standards in value-chain activities
performed by suppliers or third-party firms.
•Unethical practices are allowed to accumulate in the firm slowly over
time.
QUESTIONS WITH SOLUTIONS GRADED A+
◉ international collaborative venture . Answer: cross-border business
alliance in which partnering firms pool their resources and share costs
and risks of a venture.
◉ joint venture (JV) . Answer: form of collaboration between two or
more firms to create a jointly-owned enterprise.
◉ ex of FDI . Answer: •Volkswagen spent $1 billion to build a factory in
Poland to manufacture delivery vans.
•The British pharmaceutical firm GlaxoSmithKline purchased the global
Vaccines division of Switzerland's Novartis for $5.25 billion.
•Denmark's Lego Group spent more than 100 million euros to build a toy
factory in China.
•Japan's Toshiba formed a joint venture with the U.S. firm United
Technologies to establish R&D centers in Europe and India to support
joint innovation in the heating and air conditioning industry.
,◉ vertical integration . Answer: the firm owns, or seeks to own,
*multiple stages* of a value chain for producing, selling, and delivering
a product.
◉ horizontal integration . Answer: arrangement whereby the firm owns,
or seeks to own, the activities involved in a *single* stage of its value
chain
◉ ethical connections of FDI . Answer: side effects can harm the natural
environment, especially in countries with weak environmental laws.
Pollution and ecological destruction may emerge alongside rapid
economic growth.
◉ organizing framework . Answer: corporate governance
-ethics
-corporate social responsibility
-sustainability
◉ pyramid of ethical behavior . Answer: 1. corporate social
responsibility
2. ethical behavior
3. complying with laws and regulations
, ◉ Ethics . Answer: moral principles and values that govern the behavior
of people, firms, and governments, regarding right and wrong.
◉ corruption . Answer: practice of obtaining power, personal gain, or
influence through illegitimate means, usually at others' expense. The
abuse of power to achieve illegitimate personal gain.
◉ Bribery . Answer: refers to offering, giving, receiving, or soliciting
anything of value to influence the actions of a government official or a
corporate manager.
◉ Improper Ethical Behavior May Result When: . Answer: •Top
management sets goals and incentives aimed at promoting good
outcomes (e.g., profits) that instead encourage bad behaviors.
•Employees overlook unethical behavior in others because of peer
pressure or self-interest.
•Managers tolerate lower ethical standards in value-chain activities
performed by suppliers or third-party firms.
•Unethical practices are allowed to accumulate in the firm slowly over
time.
