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Exam 1 for Introduction to Business!
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1. Which of the following are organized for profit and provide goods and services?
a. / Public schoolsb. / Churches
c. / Government
d. / Businesses
2. In the U.S. economy, ______are considered the reward for the risk of entering business.
a. / revenuesb. / profits
c. / sales
d. / generated income amounts
3. In his book The Wealth of Nations, economist Adam Smith was the first person to describe ______.
a. / socialismb. / communism
c. / capitalism
d. / entrepreneurship
4. Capitalism is founded on ______.
a. / the social changes that followed the Industrial Revolutionb. / the idea that 80 percent of the nation's wealth should be owned by no more than 20 percent of the people
c. / the idea that the government must own all factors of production
d. / the belief that competition among business firms best serves the needs of society
5. Donovan Corporation's named Timber Trails, an American Northwest lumber company, utilizes ______as its primary production factor.
a. / natural resourcesb. / capital
c. / entrepreneurship
d. / human resources
6. Business ethics begins with ______.
a. / the individual employeeb. / the government
c. / a code of conduct
d. / a firm's customers
7. Businesses should ______.
a. / do what is right regardless of profitsb. / find the balance between doing what is right and what is profitable
c. / do whatever is profitable
d. / do whatever is in the company's best interests
8. Individuals who focus only on their own self interests when making any decisions are at the ______stage of ethical development.
a. / Preconventionalb. / Conventional
c. / Postconventional
d. / Concentrations
9. In today's business environment, who can make the difference in ethical expectations and behavior?
a. / Everyoneb. / No one
c. / Only managers
d. / Only the CEO
10. Businesses have responsibilities to ______.
a. / investors onlyb. / investors and customers
c. / investors, customers, and employees
d. / investors, customers, employees, and society
11. When management considers social and economic issues in decision making, the company is practicing ______.
a. / business ethicsb. / social responsibility
c. / consumerism
d. / social welfare
12.Computers that are manufactured in the United States and sold in Norway are categorized as U.S. ______.
a. / importsb. / exports
c. / countertrades
d. / Outsourcing
13.A balance of payments surplus means ______.
a. / an overall inflow of money from abroadb. / an overall outflow of money to other countries
c. / that imports exceed exports
d. / that exports exceed imports
14.A balance of payments deficit occurs when ______.
a. / imports exceed exportsb. / the net inflow of money from abroad exceeds the net outflows of money to other countries
c. / exports exceed imports
d. / the net outflow of money from a country exceeds the net inflow of money from abroad
15. A trade deficit occurs when ______.
a. / imports exceed exportsb. / foreign-aid payments exceed exports
c. / imports are sold at low profits
d. / there is a net flow of money into a country
Essay Answers (please answer at least 2 of the following 4 questions if you wish to answer all you will get extra credit)
1. List and describe the four basic rights in the private enterprise system. Is it in your mind important that people can own land (businesses, building, etc…) Why?
1. Define the term vision. Why is vision an important skill today? In your view what is more important in promoting world peace businesses and business creation (employment) or Government? Explain?
2. What was the most important lesson that you will take away from the ENRON movie? Please explain in at least two paragraphs! I am looking for of course your writing skills, but more importantly as your professor I am looking for how you will use the classroom knowledge in real life (in the real world of business).
3. What are business ethics and why are they important? Can you make money being unethical? What happens in the long-run?
4. Why have U.S. firms become increasingly focused on international business? Would you ever consider getting involved in international business. Explain what your might could try?