BUSI 1301 Final Exam Review Answers 2022- Houston Community College
FINAL EXAM REVIEW
The principles and standards that determine acceptable conduct in
... [Show More] business organizations are
a. social responsibility.
b. business strategies.
c. business ethics.
d. business stances.
e. corporate citizenship.
Which of the following statements is true regarding business ethics and social responsibility?
a. All actions deemed unethical by society are also illegal.
b. The concerns of what is legal and ethical do not change over time.
c. The terms social responsibility and ethics should be used interchangeably.
d. Companies can be both profitable and socially responsible.
e. Business whose sole objectives is to earn profit may not consider their social responsibility.
The term ________ refers to a business’s obligation to maximize its positive impact and
minimize its negative impact on society.
a. social citizenship
b. social strategy
c. social ethics
d. social responsibility
e. social rule
How do the terms business ethics and social responsibility differ from each other?
a. Business ethics concerns the impact of the entire business’s activities on society, whereas
social responsibility relates to an individual’s decisions that society evaluates as right or wrong.
b. Business ethics concerns the impact of the entire business’s activities on society, whereas
social responsibility relates to a work group’s decisions that society evaluates as right or wrong.
c. Business ethics relates to an individual’s or a work group’s decisions that society evaluates as
right or wrong, whereas social responsibility concerns the impact of the entire business’s
activities on society.
d. Business ethics and social responsibility can be used interchangeably because they mean the
same thing.
e. Business ethics is a broader concept, whereas social responsibility is narrower.
The _____Act criminalized securities fraud and toughened penalties for corporate fraud.
a. Dodd-Frank
b. Federal Trade Commission
c. Foreign Corrupt Practices
d. Sarbanes-Oxley
e. Sherman Antitrust
All of the following statements are true of the government regulation of sole proprietorships
EXCEPT
a. many government regulations apply only to businesses that have a certain number of
employees.
b. securities laws apply only to corporations that issue stock.
c. sole proprietorships must obey employee and consumer regulations.
d. sole proprietorships have the most freedom from government regulations.
e. sole proprietors must follow all laws, including, federal, state, and local regulations; securities
laws; and employee and consumer protection regulation.
All of the following are keys to a successful partnership EXCEPT partners must
a. have different skill sets or resource contributions.
b. maintain effective communications skills.
c. focus on customer satisfaction and product quality.
d. keep profit sharing equal regardless of contributions.
e. maintain transparency with stakeholders.
Which of the following is a disadvantage of partnerships over sole proprietorships?
a. Unlike sole proprietorships, partnerships do not face any regulatory controls that affect their
activities.
b. In partnerships, all owners have unlimited liability, whereas in sole proprietorships they have
limited liabilities.
c. In partnerships, profits have to be shared, whereas in sole proprietorships all profits belong
exclusively to the owner.
d. In sole proprietorships, the owners have access to more funds than in partnerships.
e. Unlike a sole proprietorship, a partnership is terminated when a partner dies or withdraws.
A(n) ______is a legal entity, created by the state, whose assets and liabilities are separate from
its owners.
a. general partnership
b. unlimited partnership
c. corporation
d. proprietorship
e. strategic group
Which of the following statements describes and advantage of franchising instead of building an
independent business from scratch?
a. The time required to set up an independent business is much lower than obtaining a
franchise.
b. A franchise outlet often reaches the break-even point faster than an independent business
would.
c. A franchisee would experience more flexibility in decision making than the owner of the
independent business.
d. The quality of goods and services needs to be more standardized and uniform in an
independent business than in franchises.
e. Access to managerial and financial assistance is more limited in franchises than in
independent businesses.
Why has outsourcing become a controversial practice in the United States?
a. Many jobs have moved overseas where those tasks can be accomplished for lower costs.
b. Outsourcing empowers the outsourcing company with more managerial control.
c. The losses incurred out of the hidden costs of outsourcing are making companies go
bankrupt.
d. Delegation of several processes leaves the outsourcing company with much less time to
concentrate on its core business process.
e. The outsourced products end up having sub-standard quality because their producers lack
expertise.
Which of the following is one of the implications of trade deficits?
a. the success of businesses
b. the import of more products
c. the loss of jobs
d. the export of more services
e. a higher standard of living
If the United States were to devalue its currency, the most likely result would be
a. a decrease in the number of foreign tourists to the United States.
b. a decrease in the sale of domestic goods abroad.
c. an increase in the cost of American goods abroad.
d. an increase in its imports.
e. an increase in its exports.
14. Which of the following is a true statement about barriers to international business?
a. Devaluation discourages the sale of domestic goods and tourism.
b. Revaluations occur daily because of the daily changes in exchange rates.
c. Legal and ethical requirements for successful business are decreasing globally.
d. Many of the legal rights that Americans take for granted do not exist in other countries.
e. The Webb-Pomerene Export Trade Act of 1918 allows selected U.S. firms to limit free trade
within the United States.
15. Which of the following statements is true about tariffs and trade restrictions?
a. Countries are not allowed to levy tariffs for political reasons.
b. Protective tariffs allow more expensive domestic goods to compete with foreign ones.
c. Critics of protective tariffs argue that their use inhibits free trade and competition.
d. Countries cannot allow citizens traveling abroad to bring home merchandise without paying
an import tariff.
e. Quotas cannot be established by voluntary agreements.
Which of the following statements is true about communist economy?
a. It is characterized by the people (through the government) owning and operating all
businesses.
b. It relies on supply and demand to make decisions about pricing and production of goods.
c. It encourages private ownership of the means of production.
d. It encourages free market and competition.
e. It provides scope for the production of a large variety of goods and services.
Which of the following is a true statement about a socialist system of economy?
a. Individuals own and operate the majority of businesses that provide goods and services.
b. Central planning determines what basic goods and services are produced.
c. Competition, supply, and demand determine which goods and services are produced and how
they are produced.
d. All economic decisions are made without government intervention.
e. Consumers have a wide choice of goods and services.
How does mixed economies differ from pure capitalism?
a. The government intervenes and regulates all business.
b. The government doesn’t intervene or regulate business at all.
c. The government intervenes and regulates business to some extent.
d. The government intervenes and regulates basic industries only.
e. The government relies on individuals to regulate all aspect of business, including passing
laws.
The United States has a budget deficit of over $18 trillion dollars. A budget deficit occurs when a
nation
a. reduces its expenditures.
b. receives excess taxes.
c. has not national debts.
d. spends more than it takes in from taxes.
e. balances taxes and expenditures.
20. The American economic system is best described as ________ because the government
regulates business to preserve competition and protect consumers and employees.
a. socialism
b. laissez-faire capitalism
c. mixed economy
d. communism
e. Marxism
Which of the following is a key step in evaluating ethical decisions in business?
a. assuming that ethical issued do not include all areas of organizational activities.
b. recognizing that social responsibility and ethics are inversely related to each other.
c. understanding that business ethics does not go beyond legal issues.
d. identifying that ethics is not culture-specific.
e. learning how to recognize and resolve ethical issues.
Which of the following indicates that a person has begun the process of resolving an ethical
issue?
a. deciding not to discuss what he or she is doing with co-workers or supervisors.
b. recognizing the ethical issue and openly discussing it with others.
c. ignoring the ethical issue until it goes away.
d. making decisions without recognizing the embedded ethical issue.
e. recognizing the ethical issue and keeping it secret.
23. A set of formalized rules and standards that describes what a company expects of its
employees is called a
a. contractual capacity.
b. consumerist code.
c. moral philosophy.
d. social responsibility.
e. code of ethics.
What is the following that is true
encourage whistle blower to provide info to provide miss conduct
________ movement of money of money through an organization on a daily ,
weekly , monthly , or annually
Cash flow is the movement of money
Diviation between expected ________ feed back loop to launc h more detailed financial analisys
….. and opportunities:
Operating revenues
Which of the following is true for financial statement
Onesize definetly does not fit all
Income statement shows:
_______ presents a snapshot of an organization financial position at a given moment
Balance sheet
_______ is the single most important source of CAPITAL FOR MOST NEW COMPANY
Common stock
all of the following a major responcibilities of the federal borad reserve
except
Providing a short term busines loan to businesses
Which of the following effect is seen on the money supply and the economy when the federal
reserved board raises the discount rate: interest rate increase, the money supply decreased,
and economic activity slows down
An investor once wants to sell their stocks and bonds to other investors, which of the following
provides an mechanism for them to buy and sell stocks and bonds:
Security markets
______study of how money manage by individuals companies and goverments
Finance
Code of ethics foster ethical behavior by
a. highlighting the religious implications of behaving in an unethical manner.
b. limiting the opportunity to behave unethically by providing punishments for violations of
rules and standards.
c. making employees understand that they should use their own judgment to determine if an
action is ethical.
d. pointing out to the employees that ethical behaviors are subjective and are dependent on
social perceptions.
e. encouraging employees to be more competitive and profit-oriented.
Managers are responsible for
a. creating a work environment that helps the organization achieve its objectives an fulfill its
responsibilities.
b. encouraging employees to engage in activities that might otherwise view as unethical.
c. providing vague supervision on ethical issues to avoid overly influencing employees.
d. offering no ethical direction to employees to create opportunities for individual ethics.
e. influencing employee’s actions to save costs.
Ethical decisions in an organization are influenced by individuals moral standards, the influence
of managers and coworkers, and
a. individual religious values.
b. informal ethical policies or rules
c. the opportunity to engage in misconduct.
d. family influence.
e. ethical values of clients.
All of the following are true of the causes of ethical conflict EXCEPT
a. Many employees utilize the same ethical standards at work and at home.
b. Ethical conflict increases when employees feel that their company is exerting pressure on
them to engage in unethical conduct.
c. Business managers often experience some tension between their own ethical beliefs and
their obligations to the organizations where they work.
d. Employees often experience some tension between their own ethical beliefs and their
obligations to the organizations where they work.
e. Many employees utilize different ethical standards at work than they do at home.
_________ is the greatest determinant of future ethical misconduct.
a. A company’s workforce composition
b. The external environment surrounding a business
c. The universal business overview
d. A company’s ethical culture
e. A company’s stakeholders.
Studies have found a direct relationship between social responsibility and _____ in business.
a. profitability
b. ethics
c. declining stock prices
d. happiness of stakeholders
e. global warming
_______ make decision about the use of an organization’s resources and are concerned with
planning, organizing, directing, and controlling the organization’s activities.
a. Managers
b. Shareholders
c. Creditors
d. Consumers
e. Suppliers
To earn a profit, managers must acquire, coordinate, and control all of the following resources
EXCEPT
a. people.
b. competitive products.
c. services.
d. money.
e. raw materials and equipment.
Determining an organization’s objectives and deciding how to accomplish them, a management
function, is known as
a. planning.
b. nearshoring.
c. staffing.
d. crowdsourcing.
e. factoring.
Which of the following statements is true of the management function of organizing?
a. Organizing is the process of evaluating and correcting activities to keep a business on course.
b. Organizing involves determining and administering appropriate rewards and recognition for
employees in an organization.
c. Organizing is a management function that leads to the duplication of resources.
d. Organizing is the last step in the process of managing a business.
e. Organizing helps create synergy, whereby the effect of a whole system equals more than that
of its parts.
Which of the following is true of the management function of directing/leading?
a. All managers are involved in directing/leading, but it is most important for top-level
managers.
b. Directing/leading designs the map that lays the groundwork for the other managerial
functions.
c. Good directing/leading does not require the implementations of deadlines.
d. Directing/leading involves determining and administering appropriate rewards and
recognition.
e. Telling employees what to do and when to do it is against the principles of directing/leading.
E-business differs from traditional business in that
a. the latter caters to business-to-business deals, which do not include direct selling.
b. the former carriers out the goals of business through the use of the Internet.
c. the former permits guerilla marketing.
d. the latter uses the pull strategy.
e. the latter used the push strategy.
All of the following are true regarding how marketers can use digital media to learn about
consumers EXCEPT
a. conduct mail, telephone, or personal interviews.
b. use Twitter and Facebook as substitutes for focus groups.
c. use social networking sites to gather useful information about consumers.
d. use social networking sites to determine consumer preferences.
e. conduct online survey.
Which of the following is a difference between high technology businesses and other small
businesses?
a. High technology businesses never start in garages, basements, kitchens, or dorm rooms,
while some other types of small businesses can start in these places.
b. High technology businesses require greater capital and have higher initial startup costs than
other small businesses.
c. High technology businesses are less innovative than other small businesses.
d. High technology businesses are the only type of small business that uses technology.
e. High technology businesses have lower initial startup costs than other small businesses.
Which of the following situations illustrates online fraud?
a. forgetting login details for e-mails
b. reading content on other people’s profiles on social networking sites
c. posting derogatory remarks about companies on blogs
d. posting negative reviews on online forums about companies and individuals
e. deceiving Internet users into revealing personal information
Which of the following statements is true of the impact of digital media in the marketing mix?
a. Digital media has increased the opportunities for businesses to target their promotions to the
right audiences.
b. For a business that wants to compete on price, digital marketing provides no opportunities.
c. The concept of online shopping created by the digital media can be found only in the Western
world.
d. Consumer consumption patterns have undergone little change with the advent of digital
media.
e. Social networking sites are the least useful when it come to increasing the brand exposure of
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