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Mercer BUS101 exam 1




Question;Question 1Which of the following goals is a primary purpose of tariffs on imports?maintain domestic competitivenessdecrease exportsincrease importssubsidize domestic industrypromote free trade2 points Question 2Which 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 ita 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 ratethe economic condition in which a country's exports exceed its importsa relative equality between what the government owes its creditors and the revenue it gets from importsthe economic value of all the products that a country exports minus the economic value of all the products it imports2 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 forecasttax estimatebusiness objectivestock optionsfunding source2 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 5Advertising for which of the following products is MOST likely to have ethical ramifications?swimwearsporting equipmentdecaffeinated beveragesbooksalcohol2 points Question 6What marks the key difference between economic systems?the way they manage the factors of productionthe way they transport goods within their bordersthe way rules and regulations are legislatedthe way workers are relocated to different regionsthe way basic necessities are determined2 points Question 7U.S. imports of Canadian softwood timber are limited to 14.7 billion board feet per year. What is this practice called?tariffembargosubsidydumpingquota2 points Question 8Which of the following is one of the elements required in private enterprise?adequate representation in the governmentfreedom from foreign competitionthe opportunity for market leadershipthe right to ownership of propertynumerous regulatory agencies2 points Question 9Which economic system emphasizes the private ownership of most factors of production?socialismcommunismcapitalismMarxismfederalism2 points Question 10Kent 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 incorporationpartnership charterpartnership agreementcorporate charterfinancial proposal2 points Question 11What term do economists use for the pattern of short-term expansions and contractions in the economy?business cycleaggregate outputstandard of livingconsumer price indexpurchasing power parity2 points Question 12What are beliefs about what is right and wrong or good and bad called?motivatorsrulesculturesethicslaws2 points Question 13"Which of the following is a likely cause of increased prices for products, decreased purchasing power, and decreased profit margins?"low unemploymentstagnant wages.declining living standardscyclical inflationlimited credit2 points Question 14How 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 15Lucy 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 liabilitylimited liabilityprivityunrestricted debtaccountability2 points Question 16Which of the following will force a sole proprietorship to be legally dissolved?sales exceed $1 millionthe partners reorganize the firm's structure"earnings are less than $500,000"the owner donates profitsthe owner dies2 points Question 17What is the term for an activity that may benefit the individual to the detriment of his or her employer?agency disputeleadership challengeconflict of interestproactive stanceethical standard2 points Question 18"Which of the following types of firms design, produce, and manufacture products in many nations?"multinational firmsimporting firmsdomestic firmsinternational firmsexporting firms2 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 Agreementthe Pan-American Agreementthe North American Free Trade Agreementthe General Agreement on Tariffs and Tradethe G-3 Free Trade Agreement2 points Question 20Which type of business is legally considered a separate entity from its owners and is liable for its own debts?sole proprietorshipcorporationlimited partnershipcooperativegeneral partnership2 points Question 21How do top managers BEST demonstrate a commitment to ethical business practices?by adopting written codes of ethicsby reading employees' e-mailsby decentralized decision-making practicesby cooperating with other companiesby monitoring employees' Web searches2 points Question 22What is the MOST significant disadvantage of owning a franchise?start-up costsoperational guidelinesdifficulty obtaining loansdouble taxationcompetition2 points Question 23What is a chief goal of an economic system?economic stabilityincome equalitymoney supply growthnational debt reductionproduct innovation2 points Question 24What type of policy is made up of fiscal and monetary policy?tradeemploymentstabilizationtaxforeign2 points Question 25"Which of the following is characterized by having few sellers, similar prices among sellers, and difficult market entry?"oligopolypure competitionmonopolymonopolistic competitionstate socialism2 points Question 26Which 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 monopolyan oligopolyperfect competitionmonopolistic competitiona cooperative2 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 entitiesuniversity sponsored businessesfranchisesnetworking businessescooperatives2 points Question 30"Two businesses, Rio Books and Devereaux Holdings, collaborate to create and run a new bookselling business. What is this action called?"corporatizationvertical mergerjoint venturestrategic allianceinstitutional investment2 points Question 31Why 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 32Which of the following exists when a country can produce something more cheaply and/or of higher quality than any other country can?monopolistic advantagenational competitive advantageresource advantageabsolute advantagecomparative advantage2 points Question 33Which of the following has NOT been identified as a basic consumer right?a right to safe productsa right to low pricesa right to be hearda right to choose what they buya right to be informed about a product2 points Question 34"Ford, an American car company, purchased Volvo, which is based in Sweden. What is this an example of?"a multinational firman independent agencya licensing arrangementa foreign direct investmenta strategic alliance2 points Question 35What is the MOST important source of money for new business start-ups?banksthe SBApersonal resourcesgovernment grantsventure capital2 points Question 36SeaBreeze 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?"mergerspin-offdivestitureacquisitioncollapse2 points Question 38What resources does a sole proprietorship primarily depend on?the corporationforeign investorscapital marketsthose of the ownera committed clientele2 points Question 39What is the MOST effective step that a company can take to promote ethical behavior?conduct frequent comprehensive audits of all financial informationhave employees sign a code of conduct upon hiringdemonstrate top management support of ethical standardspublicize efforts to become more ethicalsurvey employees on their personal ethical codes2 points Question 40Which of the following denotes a government order forbidding exportation and/or importation of a particular product from a particular country?tariffembargosubsidylocal content lawbusiness practice law2 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 ratefixed exchange rateindexed exchange rateflat exchange ratebalanced exchange rate2 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 43What do both sole proprietorships and partnerships lack?trustlegal standingcontinuityshared visionadaptable processes2 points Question 44Which of the following denotes the practice of protecting domestic business at the expense of free market competition?fair tradebalanced tradefree trademarket liberalismprotectionism2 points Question 45Which of the following refers to the situation when a country's imports exceed its exports?balance of paymentsbalance of tradetrade deficittrade surplustrade advantage2 points Question 46What does a planned economy rely on a centralized government to do?support free enterprise in every way possibleallocate all or most factors of productionencourage citizens to buy shares of stock in small companieskeep its control activities to a minimumdirect workers to start their own small businesses.2 points Question 47What term refers to the way in which a business tries to balance its commitments to groups and individuals in its social environment?business ethicssocializationstakeholder consciousnesssocial responsibilitycorporatization2 points Question 48American 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 costsdouble taxationregulatory costsdouble ownershipfinancial balancing2 points Question 49Which of the following is a way to tell how an organization is doing in meeting its social responsibility goals?governmental mandateexecutive summarysocial auditgovernment initiativefinancial report2 points Question 50Country Z can produce pig iron more efficiently than any other goods. Which type of advantage in pig iron does Country Z have?absolute advantagenational competitive advantagecomparative advantagemonopolistic advantageresource advantage


Paper#54236 | Written in 18-Jul-2015

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