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Mercer BUS101 exam 1




Question 1;Which of the following goals is a primary purpose of tariffs on imports?;maintain domestic competitiveness;decrease exports;increase imports;subsidize domestic industry;promote free trade;2 points;Question 2;Which of the following BEST describes economic stability?;the measure of economic growth that compares how much a system produces with the resources needed to produce it;a condition in an economic system in which the amount of money available and the number of goods and services produced are growing at about the same rate;the economic condition in which a country's exports exceed its imports;a relative equality between what the government owes its creditors and the revenue it gets from imports;the economic value of all the products that a country exports minus the economic value of all the products it imports;2 points;Question 3;What does a start-up company need in order to estimate the required size of a plant, store, or office, to decide how much inventory to carry, and to determine how many employees to hire?;sales forecast;tax estimate;business objective;stock options;funding source;2 points;Question 4;Olivia has found a viable business, a small furniture store, she is interested in purchasing. She has learned that the store is supplied by reliable vendors and has a steady stream of local and online buyers. What should be Olivia's next step at this point?;Analyze the furniture store's past financial statements.;Start negotiating a purchase price with the current owner.;Approach a banking institution about financing her purchase.;Consult a marketing agency about ways to reach more customers.;Search for vendors that can provide similar products at lower costs.;2 points;Question 5;Advertising for which of the following products is MOST likely to have ethical ramifications?;swimwear;sporting equipment;decaffeinated beverages;books;alcohol;2 points;Question 6;What marks the key difference between economic systems?;the way they manage the factors of production;the way they transport goods within their borders;the way rules and regulations are legislated;the way workers are relocated to different regions;the way basic necessities are determined;2 points;Question 7;U.S. imports of Canadian softwood timber are limited to 14.7 billion board feet per year. What is this practice called?;tariff;embargo;subsidy;dumping;quota;2 points;Question 8;Which of the following is one of the elements required in private enterprise?;adequate representation in the government;freedom from foreign competition;the opportunity for market leadership;the right to ownership of property;numerous regulatory agencies;2 points;Question 9;Which economic system emphasizes the private ownership of most factors of production?;socialism;communism;capitalism;Marxism;federalism;2 points;Question 10;Kent and Patrick have decided to start a landscaping business. One of the first things that they do is sign a document that describes the investments and responsibilities of the partners and makes provisions for the allocation of profits and dissolution of the business. What is the name of this document?;articles of incorporation;partnership charter;partnership agreement;corporate charter;financial proposal;2 points;Question 11;What term do economists use for the pattern of short-term expansions and contractions in the economy?;business cycle;aggregate output;standard of living;consumer price index;purchasing power parity;2 points;Question 12;What are beliefs about what is right and wrong or good and bad called?;motivators;rules;cultures;ethics;laws;2 points;Question 13;Which of the following is a likely cause of increased prices for products, decreased purchasing power, and decreased profit margins?;low unemployment;stagnant wages.;declining living standards;cyclical inflation;limited credit;2 points;Question 14;How does monopolistic competition differ from perfect competition?;There are more sellers in a market characterized by monopolistic competition.;It is easier for sellers to enter a market or industry characterized by monopolistic competition.;In a perfectly competitive market, products are more dissimilar.;In a market characterized by monopolistic competition, individual firms have some control over price.;In a perfectly competitive market, the size of the firms must be large.;2 points;Question 15;Lucy has organized her craft shop as a sole proprietorship. Her sister has warned Lucy about the legal principle holding her responsible for paying off all of the debts of the business. What is the name of this principle?;unlimited liability;limited liability;privity;unrestricted debt;accountability;2 points;Question 16;Which of the following will force a sole proprietorship to be legally dissolved?;sales exceed $1 million;the partners reorganize the firm's structure;earnings are less than $500,000";the owner donates profits;the owner dies;2 points;Question 17;What is the term for an activity that may benefit the individual to the detriment of his or her employer?;agency dispute;leadership challenge;conflict of interest;proactive stance;ethical standard;2 points;Question 18;Which of the following types of firms design, produce, and manufacture products in many nations?;multinational firms;importing firms;domestic firms;international firms;exporting firms;2 points;Question 19;Under which of the following treaties are Canada, the United States, and Mexico gradually eliminating tariffs and all other trade barriers?;the EURO Agreement;the Pan-American Agreement;the North American Free Trade Agreement;the General Agreement on Tariffs and Trade;the G-3 Free Trade Agreement;2 points;Question 20;Which type of business is legally considered a separate entity from its owners and is liable for its own debts?;sole proprietorship;corporation;limited partnership;cooperative;general partnership;2 points;Question 21;How do top managers BEST demonstrate a commitment to ethical business practices?;by adopting written codes of ethics;by reading employees' e-mails;by decentralized decision-making practices;by cooperating with other companies;by monitoring employees' Web searches;2 points;Question 22;What is the MOST significant disadvantage of owning a franchise?;start-up costs;operational guidelines;difficulty obtaining loans;double taxation;competition;2 points;Question 23;What is a chief goal of an economic system?;economic stability;income equality;money supply growth;national debt reduction;product innovation;2 points;Question 24;What type of policy is made up of fiscal and monetary policy?;trade;employment;stabilization;tax;foreign;2 points;Question 25;Which of the following is characterized by having few sellers, similar prices among sellers, and difficult market entry?;oligopoly;pure competition;monopoly;monopolistic competition;state socialism;2 points;Question 26;Which of the following should be the first step in assessing ethical behavior in a certain situation?;Seek the advice of managers.;Make a judgment based on the outcome of the activity.;Consider appropriate moral values.;Collect facts related to the situation.;Gather a range of opinions on the effectiveness of the policy.;2 points;Question 27;In the United States, milk is produced on thousands of farms, with no producer dominating the market. Producers sell milk at the going price and are unable to influence this price. Millions of gallons of milk are purchased every day. What type of competition is the market for milk?;a monopoly;an oligopoly;perfect competition;monopolistic competition;a cooperative;2 points;Question 28;In a small town of 3,000 people, the number of car washes has grown from two to five in the last two months. Which result will likely occur?;The increase in supply will have no effect on the equilibrium price.;The increase in supply will lead to a decrease in demand.;The increase in supply will lead to a decrease in the equilibrium price.;The increase in supply will lead to an increase in demand.;The increase in supply will lead to an increase in equilibrium price.;2 points;Question 29;What are specific locations of Ramada, McDonald's, and Subway examples of?;government entities;university sponsored businesses;franchises;networking businesses;cooperatives;2 points;Question 30;Two businesses, Rio Books and Devereaux Holdings, collaborate to create and run a new bookselling business. What is this action called?;corporatization;vertical merger;joint venture;strategic alliance;institutional investment;2 points;Question 31;Why are lenders most willing to loan to corporations?;Continuity and legal status are assured.;Links with owners and founders are established.;Professional management teams can be changed.;Commitment to expansion is readily available.;Brand and marketing strategies can be diversified.;2 points;Question 32;Which of the following exists when a country can produce something more cheaply and/or of higher quality than any other country can?;monopolistic advantage;national competitive advantage;resource advantage;absolute advantage;comparative advantage;2 points;Question 33;Which of the following has NOT been identified as a basic consumer right?;a right to safe products;a right to low prices;a right to be heard;a right to choose what they buy;a right to be informed about a product;2 points;Question 34;Ford, an American car company, purchased Volvo, which is based in Sweden. What is this an example of?;a multinational firm;an independent agency;a licensing arrangement;a foreign direct investment;a strategic alliance;2 points;Question 35;What is the MOST important source of money for new business start-ups?;banks;the SBA;personal resources;government grants;venture capital;2 points;Question 36;SeaBreeze Sailing Company manufactures sailboats for personal pleasure use. Which of the following would suggest that SeaBreeze Sailing Company is NOT committed to corporate social responsibility?;Sailboats are available for customer rental only when weather conditions are safe.;The boats are constructed from scarce or nonrenewable natural resources.;Employees are provided with excellent vacation packages.;The company engages in practices that benefit local investors.;Advertisements for sailboat rentals contain correct pricing information.;2 points;Question 37;Suppose BrightLights Online Video purchases another company, QuikFlix. What is this an example of?;merger;spin-off;divestiture;acquisition;collapse;2 points;Question 38;What resources does a sole proprietorship primarily depend on?;the corporation;foreign investors;capital markets;those of the owner;a committed clientele;2 points;Question 39;What is the MOST effective step that a company can take to promote ethical behavior?;conduct frequent comprehensive audits of all financial information;have employees sign a code of conduct upon hiring;demonstrate top management support of ethical standards;publicize efforts to become more ethical;survey employees on their personal ethical codes;2 points;Question 40;Which of the following denotes a government order forbidding exportation and/or importation of a particular product from a particular country?;tariff;embargo;subsidy;local content law;business practice law;2 points;Question 41;When the value of one country's currency relative to that of another varies with market conditions, which of the following exists?;floating exchange rate;fixed exchange rate;indexed exchange rate;flat exchange rate;balanced exchange rate;2 points;Question 42;In perfect competition, which of the following conditions must prevail?;All firms must adhere to cost and pricing standards.;The number of firms in the industry must be limited.;A single firm is able to influence the price of its product.;It is relatively difficult to enter the industry.;All firms in a given industry must be small.;2 points;Question 43;What do both sole proprietorships and partnerships lack?;trust;legal standing;continuity;shared vision;adaptable processes;2 points;Question 44;Which of the following denotes the practice of protecting domestic business at the expense of free market competition?;fair trade;balanced trade;free trade;market liberalism;protectionism;2 points;Question 45;Which of the following refers to the situation when a country's imports exceed its exports?;balance of payments;balance of trade;trade deficit;trade surplus;trade advantage;2 points;Question 46;What does a planned economy rely on a centralized government to do?;support free enterprise in every way possible;allocate all or most factors of production;encourage citizens to buy shares of stock in small companies;keep its control activities to a minimum;direct workers to start their own small businesses.;2 points;Question 47;What term refers to the way in which a business tries to balance its commitments to groups and individuals in its social environment?;business ethics;socialization;stakeholder consciousness;social responsibility;corporatization;2 points;Question 48;American Business Machines is organized as a corporation. Its income will be taxed at the corporate level and also on shareholder returns as dividends. What is this situation known as?;dual costs;double taxation;regulatory costs;double ownership;financial balancing;2 points;Question 49;Which of the following is a way to tell how an organization is doing in meeting its social responsibility goals?;governmental mandate;executive summary;social audit;government initiative;financial report;2 points;Question 50;Country Z can produce pig iron more efficiently than any other goods. Which type of advantage in pig iron does Country Z have?;absolute advantage;national competitive advantage;comparative advantage;monopolistic advantage;resource advantage


Paper#29610 | Written in 18-Jul-2015

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