A sole proprietorship has a limited life span unless:
1)it is taken over by an heir
2) it is sold to someone else
A sole proprietorship has a limited life span unless:
1)it is taken over by an heir
2) it is sold to someone else
1)it is taken over by an heir
2) it is sold to someone else
When you own a sole proprietorship you and the business are considered one, so you have ______ liability for financial obligations such as debt.
When you own a sole proprietorship you and the business are considered one, so you have ______ liability for financial obligations such as debt.
Answer: unlimited.
A state-chartered legal entity with authority to act and have liability separate from its owner is a:
A state-chartered legal entity with authority to act and have liability separate from its owner is a:
Answer: corporation
Partnerships are less likely to survive than sole proprietorship.
Partnerships are less likely to survive than sole proprietorship.
Answer: False
When there is one or more general partners and one or more limited partners, the firm is a(n)
When there is one or more general partners and one or more limited partners, the firm is a(n)
Answer: limited partnership
If you are your own boss, you are responsible for paying your own wages/salary and your own____
If you are your own boss, you are responsible for paying your own wages/salary and your own____
Answer: fringe benefits
An advantage of the separation of ownership from management in corporations is that the company can raise money from investors but the investors:
An advantage of the separation of ownership from management in corporations is that the company can raise money from investors but the investors:
Answer: are not involved in daily operations
A partnership______ can spell out the requirements of terminating a partnership.
A partnership______ can spell out the requirements of terminating a partnership.
Answer: agreement
Select all reasons that disagreements can ruin a partnership
Select all reasons that disagreements can ruin a partnership
1) arguing over profits
2) disagreements over workload
3) opposing management styles
Select the attributes of a corporation
Select the attributes of a corporation
1) legal entity
2) state chartered
3) liability separate from owners
When two or more people legally agree to become co-owners of a business, the organization is called a(n)
When two or more people legally agree to become co-owners of a business, the organization is called a(n)
Answer: partnership
The limited partner's' risk of losing their personal assets in an LLP is:
The limited partner's' risk of losing their personal assets in an LLP is:
Answer: limited to the amount of their investment
If the sole proprietor dies, is incapacitated or retires, the business no longer exists. This disadvantage of a sole proprietorship is called _______ life span.
If the sole proprietor dies, is incapacitated or retires, the business no longer exists. This disadvantage of a sole proprietorship is called _______ life span.
Answer: limited
Mark, Cai and Aidan have decided to form a business where all owners will share in operating the business and in assuming liability for the business debts. They are most likely forming a(n)______ partnership.
Mark, Cai and Aidan have decided to form a business where all owners will share in operating the business and in assuming liability for the business debts. They are most likely forming a(n)______ partnership.
Answer: general
Select the disadvantages of a sole proprietorship
Select the disadvantages of a sole proprietorship
1) limited financial resources
2) overwhelming time commitment
3) unlimited liability
Ending a partnership can be difficult because of problems deciding:
Ending a partnership can be difficult because of problems deciding:
1) the worth of a retiring partner's share
2) how to distribute assets
3) how a partner can retire
Rank the order in which members of a corporation are chosen in order to separate ownership from management. Start at the top of the managerial hierarchy
Rank the order in which members of a corporation are chosen in order to separate ownership from management. Start at the top of the managerial hierarchy
1)owners/stockholders elect board of directors
2) board of directors hire officers of the corporation
3)officers hire managers of the corporation
4) managers hire employees
Select those items considered fringe benefits that people working for a company are likely to receive but a sole proprietor has to develop on his own
Select those items considered fringe benefits that people working for a company are likely to receive but a sole proprietor has to develop on his own
1) paid sick or vacation leave time
2) a pension plan
3) paid health insurance
A corporation is defined as:
A corporation is defined as:
Answer: a chartered legal entity with authority to act apart from its owners
Minority-owned businesses are growing at more than _____ times the national rate.
Minority-owned businesses are growing at more than _____ times the national rate.
Answer: 6
Franchisees can begin to feel burdened if the _____ creates too many managerial orders, directives or limitations.
Franchisees can begin to feel burdened if the _____ creates too many managerial orders, directives or limitations.
Answer: franchiser
What are some of the disadvantages of operating a franchise?
What are some of the disadvantages of operating a franchise?
1) large start-up costs
2)Restrictions on selling
3) shared profit
A business person concerned about high______ costs should not invest in a franchise which is associated with this disadvantage.
A business person concerned about high______ costs should not invest in a franchise which is associated with this disadvantage.
Answer: startup
_____ owned businesses are growing more than the national rate.
_____ owned businesses are growing more than the national rate.
Answer: minority
In order to protect the brand name and image, the franchiser has right management ______
In order to protect the brand name and image, the franchiser has right management ______
1) controls
2) standards
The share of profits or sales revenue paid to the franchiser is called a(n)
The share of profits or sales revenue paid to the franchiser is called a(n)
Answer: royalty
The large _____ costs for the rights to a franchise can vary from a few thousand to millions of dollars.
The large _____ costs for the rights to a franchise can vary from a few thousand to millions of dollars.
Answer: startup
One of the fastest growing franchise sector is_______
One of the fastest growing franchise sector is_______
Answer: senior care
A company similar to an S corporation but without the special eligibility requirements is an:
A company similar to an S corporation but without the special eligibility requirements is an:
Answer: LLC
Home-based franchise have many advantages such as:
Home-based franchise have many advantages such as:
1) extra time for family activities
2) low overhead expenses
3) relief from the stress of communicating
About 9 percent of franchises are owned by African Americans, Latinos, Asians, and Native Americans. Franchisers are becoming more focuses on recruiting _____ franchisees.
About 9 percent of franchises are owned by African Americans, Latinos, Asians, and Native Americans. Franchisers are becoming more focuses on recruiting _____ franchisees.
Answer: minority
A franchise owner will experience the coattail effect when:
A franchise owner will experience the coattail effect when:
Answer: a fellow franchise does something that has an impact on growth and profitability
Franchises must follow the franchise_______, which limits the control of the operating by the franchisee through regulations and guidelines.
Franchises must follow the franchise_______, which limits the control of the operating by the franchisee through regulations and guidelines.
Answer: agreement
A business person concerned about startup costs of a business opportunity should consider a venture other than a(n) _____ which has this disadvantage.
A business person concerned about startup costs of a business opportunity should consider a venture other than a(n) _____ which has this disadvantage.
Answer: franchise
A disadvantage of franchises is that most demand a ____ from the franchisee for the right to start the franchise.
A disadvantage of franchises is that most demand a ____ from the franchisee for the right to start the franchise.
Answer: fee
What are some advantages of franchising?
What are some advantages of franchising?
1) lower failure rate
2) recognized name
3) personal ownership
The most popular businesses for franchising are ______
The most popular businesses for franchising are ______
Answer: restaurants
The joining of firms in completely unrelated industries is a(n)_______ merger.
The joining of firms in completely unrelated industries is a(n)_______ merger.
Answer: conglomerate
A merger of two firms in the same industry that allows the companies to diversify or expand their products is a(n)
A merger of two firms in the same industry that allows the companies to diversify or expand their products is a(n)
Answer: horizontal merger
When two firms operating in different stages of related businesses join, it is called a(n) ______merger.
When two firms operating in different stages of related businesses join, it is called a(n) ______merger.
Answer: vertical
One company's purchase of the property and obligations of another company is a(n)
One company's purchase of the property and obligations of another company is a(n)
Answer: acquisition
The result of two firms joining to form one is called:
The result of two firms joining to form one is called:
Answer: merger
LLCs do have to submit articles of organization and an operating agreement, but do not have to:
LLCs do have to submit articles of organization and an operating agreement, but do not have to:
1) file written resolutions
2) hold annual meetings
3) keep minutes
Don wanted to incorporate his business and liked the attributes of an S-corporation, however, he did not feel the eligibility requirements would work for his purposes. He is likely to choose the form a(n)
Don wanted to incorporate his business and liked the attributes of an S-corporation, however, he did not feel the eligibility requirements would work for his purposes. He is likely to choose the form a(n)
Answer: limited liability
In order to qualify to become an S corporation, a company must have:
In order to qualify to become an S corporation, a company must have:
1) no more than 100 shareholders
2) shareholders who are individuals or estates
An S corporation has the liability protections of a corporation but is taxed:
An S corporation has the liability protections of a corporation but is taxed:
Answer: like a partnership or sole proprietorship
The objective, "avoid criminal misconduct" describes which of type of ethical code?
The objective, "avoid criminal misconduct" describes which of type of ethical code?
Answer: compliance-based
Although definitions and means of measuring a carbon footprint aren't yet clear, many companies ty to become more____ by claiming to reduce it.
Although definitions and means of measuring a carbon footprint aren't yet clear, many companies ty to become more____ by claiming to reduce it.
Answer: green
The objective, "avoid criminal misconduct" describes which type of ethical code?
The objective, "avoid criminal misconduct" describes which type of ethical code?
Answer: compliance-based
Increasing public concern for the environment created by the ____ movement has more businesses looking for environmentally friendly ways to do business.
Increasing public concern for the environment created by the ____ movement has more businesses looking for environmentally friendly ways to do business.
Answer: green
Foundations, universities and other nonprofit organizations own shares in publicly held companies, whose value is dependent directly upon____ of those companies.
Foundations, universities and other nonprofit organizations own shares in publicly held companies, whose value is dependent directly upon____ of those companies.
Answer: performance
The United States is charged with setting the standard for ethics and social responsibility for which one of the following reasons?
The United States is charged with setting the standard for ethics and social responsibility for which one of the following reasons?
Answer: Its size and influences as a "super power"
Whistleblowers can be helped by protecting them from?
Whistleblowers can be helped by protecting them from?
Answer: retaliation
The watchdog group that is most concerned with worker's rights and hunts down companies who violate them is:
The watchdog group that is most concerned with worker's rights and hunts down companies who violate them is:
Answer: union leaders
The Dodd-Frank Wall Street Reform and Consumer Protection Act:
The Dodd-Frank Wall Street Reform and Consumer Protection Act:
Answer: provides a "bounty" for successful whistleblowers
Patagonia's statement that they donate at least 1 percent of sales to reserve the steep decline in the overall health of out planet is an example of:
Patagonia's statement that they donate at least 1 percent of sales to reserve the steep decline in the overall health of out planet is an example of:
Answer: corporate policy
From the list below identify the groups considered to be a type of watchdog group
From the list below identify the groups considered to be a type of watchdog group
1) union officials
2) environmentalists
3) customers
All the manufactures make sure they are not misusing the "green label"
All the manufactures make sure they are not misusing the "green label"
Answer: false
Ciba Specialty Chemicals' process that decreases production costs while reducing damage to the environment allows it to charge higher price on its patented dye product. This is an example of:
Ciba Specialty Chemicals' process that decreases production costs while reducing damage to the environment allows it to charge higher price on its patented dye product. This is an example of:
Answer: increasing profits by reducing environmental damage
A product's carbon _______ is one possible, although sometimes controversial, measure of the products impact on the environment.
A product's carbon _______ is one possible, although sometimes controversial, measure of the products impact on the environment.
Answer: footprint
Corporate social initiatives are an enhanced form of corporate philanthropy dealing directly with a company's core _______
Corporate social initiatives are an enhanced form of corporate philanthropy dealing directly with a company's core _______
Answer: competencies
Socially conscious investors insist that a company extend its own high standards to its______
Socially conscious investors insist that a company extend its own high standards to its______
Answer: suppliers
Which of the following illustrates the difficulties in enforcing U.S. ethical standards on foreign countries.
Which of the following illustrates the difficulties in enforcing U.S. ethical standards on foreign countries.
1) banning child labor when the child's salary is needed to support the family.
2) sometimes what would be considered as bribes in the united states are considered gifts in other countries.
The_____ protects whistleblowers by requiring all public corporations to allow employee concerns about accounting and auditing to be submitted confidentially and anonymously.
The_____ protects whistleblowers by requiring all public corporations to allow employee concerns about accounting and auditing to be submitted confidentially and anonymously.
Answer: Sarbanes-Oxley Act
Many. U.S businesses demand socially responsible behavior from their international ____ to assure they do not violate U.S. human rights and environmental standards.
Many. U.S businesses demand socially responsible behavior from their international ____ to assure they do not violate U.S. human rights and environmental standards.
Answer: suppliers
Socially conscious research organizations exist to analyze and _____ on corporate social responsibility.
Socially conscious research organizations exist to analyze and _____ on corporate social responsibility.
Answer: report
_______ protect people from fraud, theft, and violence, while _____ are used to decide how we treat others responsibly according to society's views of right and wrong.
_______ protect people from fraud, theft, and violence, while _____ are used to decide how we treat others responsibly according to society's views of right and wrong.
Answer:
- Laws
- ethics
In the 1970s the Foreign Corrupt Practices Act sent a chill throughout the U.S. business community by criminalizing the act of _______ business or government leaders to get business.
In the 1970s the Foreign Corrupt Practices Act sent a chill throughout the U.S. business community by criminalizing the act of _______ business or government leaders to get business.
Answer: bribing
The emergence of the green movement has affected businesses by
The emergence of the green movement has affected businesses by
Answer: offering consumers more product choices
Starbucks Coffee only buys its products supply from fair trade companies to insure coffee farmers in foreign countries are not being exploited. This is a form of corporate philanthropy.
Starbucks Coffee only buys its products supply from fair trade companies to insure coffee farmers in foreign countries are not being exploited. This is a form of corporate philanthropy.
Answer: False
An____ ______ creates a situation where you must choose between two equally unsatisfactory alternatives.
An____ ______ creates a situation where you must choose between two equally unsatisfactory alternatives.
Answer: ethical dilemma
_____-_______ ethics codes emphasize preventing unlawful behavior by increasing control and penalizing wrongdoers, _____-_____ ethics codes define an organization's guiding values, create an environment that supports ethically sound behavior, and stresses shared accountability.
_____-_______ ethics codes emphasize preventing unlawful behavior by increasing control and penalizing wrongdoers, _____-_____ ethics codes define an organization's guiding values, create an environment that supports ethically sound behavior, and stresses shared accountability.
Answer: Compliance-based and integrity-based
When implementing an ethics code, it is important to share it with all ________ because pressure to act unethically often comes from the outside.
When implementing an ethics code, it is important to share it with all ________ because pressure to act unethically often comes from the outside.
Answer: stakeholders
Corporate_______ includes charitable donations by corporations to nonprofit groups of all kinds.
Corporate_______ includes charitable donations by corporations to nonprofit groups of all kinds.
Answer: philanthropy
____ are the activists who apply pressure by publicly naming companies that pollute the air and water.
____ are the activists who apply pressure by publicly naming companies that pollute the air and water.
Answer: environmentalists
Social responsibility and ethical problems exist primarily in the U.S. because we have more laws about those problems?
Social responsibility and ethical problems exist primarily in the U.S. because we have more laws about those problems?
Answer: false
Which of the following are examples of outside stakeholders that must be told about a company's ethics program?
Which of the following are examples of outside stakeholders that must be told about a company's ethics program?
1) distributors
2) customers
3) suppliers
The SEC regulations on Fair Disclosure are designed to prevent ______
The SEC regulations on Fair Disclosure are designed to prevent ______
Answer: insider trading
Which of the following practices would be considered an ethical business choice that does more than the law requires?
Which of the following practices would be considered an ethical business choice that does more than the law requires?
Answer: giving part time employees paid holidays and sick days
Customers prefer to do business with companies they trust, proving the old saying that ______ is the best policy.
Customers prefer to do business with companies they trust, proving the old saying that ______ is the best policy.
Answer: honesty
A company's effectiveness and financial performance are most affected by responsible _______ management.
A company's effectiveness and financial performance are most affected by responsible _______ management.
Answer: human resource
Facing a decision to either act unethically at the request of a supervisor or be fired for not acting as directed is referred to as an:
Facing a decision to either act unethically at the request of a supervisor or be fired for not acting as directed is referred to as an:
Answer: ethical dilemma
Written ethics codes can be categorized as:
Written ethics codes can be categorized as:
Answer:
- compliance-based
- integrity-based
Top officials in countries like Japan, South Korea, and China have faced legal charges of influence peddling and _____ charges, which serve as examples of the unethical behavior that U.S. companies face in overseas markets.
Top officials in countries like Japan, South Korea, and China have faced legal charges of influence peddling and _____ charges, which serve as examples of the unethical behavior that U.S. companies face in overseas markets.
Answer: bribery
Implementing ethical standards within an organization starts with:
Implementing ethical standards within an organization starts with:
Answer: top management
Socially______ companies are viewed more favorably by consumers.
Socially______ companies are viewed more favorably by consumers.
Answer: conscious
The selection of a(n)____ _____ is an important part of enforcing an ethics code.
The selection of a(n)____ _____ is an important part of enforcing an ethics code.
Answer: ethics officer
The mortgage bankers and real estate companies who helped create the financial crisis of 2008 were driven by
The mortgage bankers and real estate companies who helped create the financial crisis of 2008 were driven by
Answer: greed
Even small companies participate in _______ through donations and volunteer support of local causes and national charities, such as the Red Cross and the United Way.
Even small companies participate in _______ through donations and volunteer support of local causes and national charities, such as the Red Cross and the United Way.
Answer: philanthropy
When it comes to ethics, _____ sets the standards for moral behavior, that is behavior defined as right or wrong.
When it comes to ethics, _____ sets the standards for moral behavior, that is behavior defined as right or wrong.
Answer: society
The most effective ethics officers are equally comfortable as_______ and investigators.
The most effective ethics officers are equally comfortable as_______ and investigators.
Answer: counselors
Many companies believe they have a role in promoting ______ ______ that goes beyond simply "giving back".
Many companies believe they have a role in promoting ______ ______ that goes beyond simply "giving back".
Answer: social justice
Enforcement in a timely manner is the_____ and most critical step in the development of an ethics code program.
Enforcement in a timely manner is the_____ and most critical step in the development of an ethics code program.
Answer: last
The dimension of social responsibility known as ______ includes everything from hiring minority workers to making safe products, minimizing pollution, using energy wisely, and proving a safe work environment.
The dimension of social responsibility known as ______ includes everything from hiring minority workers to making safe products, minimizing pollution, using energy wisely, and proving a safe work environment.
Answer: corporate
According to recent U.S, Census Bureau research volunteerism is at an all time high, but
According to recent U.S, Census Bureau research volunteerism is at an all time high, but
Answer: 3 out of 4 citizens do not give any time to the communities in which they live.
The statement by Patagonia that "a love of wild and beautiful places demands participation in the fight to save them, and to help reverse the steep decline in the overall environmental health of our planet" is an example of:
The statement by Patagonia that "a love of wild and beautiful places demands participation in the fight to save them, and to help reverse the steep decline in the overall environmental health of our planet" is an example of:
Answer: corporate policy
Companies that try to act in a socially responsible way are likely to focus on such activities as:
Companies that try to act in a socially responsible way are likely to focus on such activities as:
1) increasing diversity of their workforce
2) providing safety equipment and training for their workers
3) using recyclable packaging.
The ______ is a systematic evaluation of an organization's progress toward implementing socially responsible and responsive programs.
The ______ is a systematic evaluation of an organization's progress toward implementing socially responsible and responsive programs.
Answer: social audit
_____ are insiders who report illegal or unethical behavior.
_________ are insiders who report illegal or unethical behavior.
Answer: Whistleblowers
Corporate _____ is the dimension of social responsibility that refers to a position a firm takes or statement it makes on social and political issues.
Corporate _____ is the dimension of social responsibility that refers to a position a firm takes or statement it makes on social and political issues.
Answer: policy
The use of private company information by employee for personal financial gain is called _____ _____
The use of private company information by employee for personal financial gain is called _____ _____
Answer: insider trading
Which set of ethics codes defines an organization's guiding values, creates and environment that supports ethically sound behavior, and stresses shared accountability?
Which set of ethics codes defines an organization's guiding values, creates and environment that supports ethically sound behavior, and stresses shared accountability?
Answer: integrity-based ethics codes
Companies such as Sears and Dow Chemical have tried to influence their international supplies by:
Companies such as Sears and Dow Chemical have tried to influence their international supplies by:
1) refusing products made by prison labor
2)requiring they conform U.S. standards for pollution and safety.
A systematic evaluation of a company's progress toward implementing socially responsible program is known as a(n)
A systematic evaluation of a company's progress toward implementing socially responsible program is known as a(n)
Answer: social audit.
Unethical behavior in business, especially in the real estate and banking industries, has resulted in:
Unethical behavior in business, especially in the real estate and banking industries, has resulted in:
1) severe financial crisis
2) lack of trust in the free market.
The dimension of social responsibility, which includes certain aspects such as seeking employees that are racially diverse or producing low-emission vehicles, is called:
The dimension of social responsibility, which includes certain aspects such as seeking employees that are racially diverse or producing low-emission vehicles, is called:
Answer: corporate responsibility
______ is a business's concern for the welfare of society.
______ is a business's concern for the welfare of society.
Answer: Corporate Social Responsibility
Investment funds controlled by the government holding large stakes in foreign companies are called:
Investment funds controlled by the government holding large stakes in foreign companies are called:
Answer: sovereign wealth funds
_______leads to less imported goods and services; its reasoning rest with the hope that domestic producers are given a better opportunity to survive and grow, which eventually leads to more local jobs.
_______leads to less imported goods and services; its reasoning rest with the hope that domestic producers are given a better opportunity to survive and grow, which eventually leads to more local jobs.
Answer: trade protectionism
Which of the following are reasons why some government establish trade protectionism?
Which of the following are reasons why some government establish trade protectionism?
1) to save local jobs
2) to guard against dumping
3) to allow domestic producers to survive and grow
4) to avoid foreign competition
Which of the following are negative effects associated with the establishment of NAFTA?
Which of the following are negative effects associated with the establishment of NAFTA?
1) safety conditions for workers in Mexico continue to be poor
2) an estimated 680,000 U.S. manufacturing jobs were lost.
The countries represented by the acronym BRIC are important because:
The countries represented by the acronym BRIC are important because:
Answer: They are emerging countries that will be among the wealthiest by 2030
Which of the following countries are members of the Central American Free Trade Agreement CAFTA?
Which of the following countries are members of the Central American Free Trade Agreement CAFTA?
1) guatemela
2) nicaragua
3) costa rica
4) honduras
Which of the following are U.S. jobs that are being disrupted by the "Second wave" of offshore outsourcing?
Which of the following are U.S. jobs that are being disrupted by the "Second wave" of offshore outsourcing?
1) information technology
2) accounting
3) health care.
In addition to goods and services, countries also _________ art, cultural events, medical advances, space exploration and labor.
In addition to goods and services, countries also _________ art, cultural events, medical advances, space exploration and labor.
Answer: exchange
The development of a(n) _______ market changes the way goods and services are traded within the market by establishing a similar external tariff, no internal tariff, and coordinated laws to facilitate exchange among members.
The development of a(n) _______ market changes the way goods and services are traded within the market by establishing a similar external tariff, no internal tariff, and coordinated laws to facilitate exchange among members.
Answer: common
The benefits associated with strategic alliances is that they provide broad access to:
The benefits associated with strategic alliances is that they provide broad access to:
1) capital
2) technical expertise
3) markets
The outcome of FDI is a foreign subsidiary, a company located in a foreign country tat is owned by another company, called the ______ company.
The outcome of FDI is a foreign subsidiary, a company located in a foreign country tat is owned by another company, called the ______ company.
Answer: parent
The________ Economic Community was established in 1967 in Thailand to create economic cooperation among its five original members (indonesia, Malaysia, Philippines, Singapore, and Thailand).
The________ Economic Community was established in 1967 in Thailand to create economic cooperation among its five original members (indonesia, Malaysia, Philippines, Singapore, and Thailand).
Answer: ASEAN
What is an example of a non-tariff barrier?
What is an example of a non-tariff barrier?
Answer: Restrictive standards.
The definition of _______ states; selling products in a foreign country at lower prices than those charged in the producing country.
The definition of _______ states; selling products in a foreign country at lower prices than those charged in the producing country.
Answer: dumping
U.S. laws against_______ are specific. To keep domestic product prices competitive, U.S. law requires foreign firms to price their products to include 10 percent of overhead costs and 8 percent for profit.
U.S. laws against_______ are specific. To keep domestic product prices competitive, U.S. law requires foreign firms to price their products to include 10 percent of overhead costs and 8 percent for profit.
Answer: dumping
What was the primary benefit for the European Union (EU) of adopting the euro in 1999?
What was the primary benefit for the European Union (EU) of adopting the euro in 1999?
Answer: eliminating currency conversions
The definition of contract manufacturing states: a foreign country's production of private-label goods to which a domestic company then attaches its brand name or trademark; contract manufacturing is a part of the broad category of ______.
The definition of contract manufacturing states: a foreign country's production of private-label goods to which a domestic company then attaches its brand name or trademark; contract manufacturing is a part of the broad category of ______.
Answer: outsourcing
In 1948 government leaders from 23 nations formed a global forum for reducing trade restrictions on goods, services, ideas and cultural programs.
In 1948 government leaders from 23 nations formed a global forum for reducing trade restrictions on goods, services, ideas and cultural programs.
Answer: General Agreement on Tariffs and Trade (GATT)
When choosing a(n)________ for reaching global markets, it is important to analyze the amount of commitment, risk, and profit potential.
When choosing a(n)________ for reaching global markets, it is important to analyze the amount of commitment, risk, and profit potential.
Answer: strategy
What are the two indicators nations rely on to measure global trade?
What are the two indicators nations rely on to measure global trade?
Answer: balance of trade and balance of payments
Free trade can cause ________ workers to lose their jobs due to increased imports or production shifts to low-wage global markets.
Free trade can cause ________ workers to lose their jobs due to increased imports or production shifts to low-wage global markets.
Answer: domestic
In what ways will globalization impact U.S. businesses
In what ways will globalization impact U.S. businesses
1) loss of jobs in manufacturing
2) increased competetition
The possibility of having all foreign assets expropriated is a disadvantage of ____.
The possibility of having all foreign assets expropriated is a disadvantage of ____.
Answer: foreign direct investment
A business can legally compete in global markets by using which of the following strategies?
A business can legally compete in global markets by using which of the following strategies?
1) exporting
2) franchising
3) licensing
Which strategy for reaching global markets provides for the lowest risk?
Which strategy for reaching global markets provides for the lowest risk?
Answer: licensing
The United States is the largest ______ nation in the world.
The United States is the largest ______ nation in the world.
Answer: importing
When a company wants to enter the global market without incurring heavy start-up costs, creating a successful brand and penetrating a new market with low risk, they are engaging in:
When a company wants to enter the global market without incurring heavy start-up costs, creating a successful brand and penetrating a new market with low risk, they are engaging in:
Answer: contract manufacturing
The loss of jobs in the U.S. job market for unskilled, middle-income workers is a negative effect of _______ outsourcing.
The loss of jobs in the U.S. job market for unskilled, middle-income workers is a negative effect of _______ outsourcing.
Answer: offshore
Many times free trade has a(n) ______ impact on U.S. domestic jobs, particularly manufacturing jobs.
Many times free trade has a(n) ______ impact on U.S. domestic jobs, particularly manufacturing jobs.
Answer: negative
________ is a complex form of bartering in which several countries may be involved, each trading goods for goods or services for services.
________ is a complex form of bartering in which several countries may be involved, each trading goods for goods or services for services.
Answer: countertrading
The benefits of creating a joint venture when doing business internationally include:
The benefits of creating a joint venture when doing business internationally include:
1) shared marketing expertise
2) access to restricted local markets
3) shared technology
Benefits of being a member of a common market, or "trading bloc" include:
Benefits of being a member of a common market, or "trading bloc" include:
Answer: no internal tariffs
Sometimes, due to a nation's unreliable currency, the only way to trade is ___________ which is defined as the exchange of merchandise for merchandise or service for service with no money traded.
Sometimes, due to a nation's unreliable currency, the only way to trade is ___________ which is defined as the exchange of merchandise for merchandise or service for service with no money traded.
Answer: bartering
_____advantage is a monopoly that exists when a country is the only source of an item, the only producer of an item, or the most efficient producer of an item while_______advantage is the basis of most international trade, when a country specializes in products that it can supply more efficiently or at a lower cost than it can produce other items.
_____advantage is a monopoly that exists when a country is the only source of an item, the only producer of an item, or the most efficient producer of an item while_______advantage is the basis of most international trade, when a country specializes in products that it can supply more efficiently or at a lower cost than it can produce other items.
Answer: absolute, comparative
What was the organization that replaced the General Agreement on Tariffs and Trade (GATT) and was assigned the duty to mediate trade disputes among nations?
What was the organization that replaced the General Agreement on Tariffs and Trade (GATT) and was assigned the duty to mediate trade disputes among nations?
Answer: World Trade Organization (WTO)
U.S. business will experience increased_______ in the future due to the effects of globalization.
U.S. business will experience increased_______ in the future due to the effects of globalization.
Answer: competition
What is the primary function of protective tariffs?
What is the primary function of protective tariffs?
Answer: to raise the price of imported products so that domestic goods are more competitively priced
The shift of jobs from developed economies to low-wage global markets, called ______ outsourcing, has become a major issue.
The shift of jobs from developed economies to low-wage global markets, called ______ outsourcing, has become a major issue.
Answer: offshore
The _______ organization was established to mediate trade disputes among nations, is headquartered in Geneva and is an independent entity of 159 member nations whose purpose is to oversee cross-boarder trade issues and global business practices.
The _______ organization was established to mediate trade disputes among nations, is headquartered in Geneva and is an independent entity of 159 member nations whose purpose is to oversee cross-boarder trade issues and global business practices.
Answer: World Trade
When the retail price of imported products is increased for the purpose of making domestic goods more competitively priced it is called a(n) ?
When the retail price of imported products is increased for the purpose of making domestic goods more competitively priced it is called a(n) ?
Answer: protective tariff
A major benefit of ______ is that selling goods and services to other countries results in an economic boost to the United States.
A major benefit of ______ is that selling goods and services to other countries results in an economic boost to the United States.
Answer: exporting
What law prohibits "questionable" or "dubious" payments to foreign officials to secure business contracts?
What law prohibits "questionable" or "dubious" payments to foreign officials to secure business contracts?
Answer: Foreign Corrupt Practices Act of 1978
A weak transportation infrastructure results in a(n)_____ barrier to global business.
A weak transportation infrastructure results in a(n)_____ barrier to global business.
Answer: physical
Darla's bicycle ship in the United States is experiencing a slowdown in its growth. She knows the global market offers many opportunities. Which of the following are ways Darla's business could engage in the global market.
Darla's bicycle ship in the United States is experiencing a slowdown in its growth. She knows the global market offers many opportunities. Which of the following are ways Darla's business could engage in the global market.
1) export bicycles to retailers in Australia
2) import materials from Russia
3) create an online sales site that ships globally
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