Introduction to Business-B101
Study Guide
Test 1 (Chapters 1-4)
1) Define consumerism
2) Define Social audit
3) Define transaction management
4) What does a demand curve show?
5) Know about the US population in relation to the labor pool
6) What happens to consumer spending and unemployment during an economic recovery?
7) How is ethical leadership measured?
8) Know how technology has affected our society as it relates to ethical issues
9) Know the stages of ethical development
10) Define relationship management
11) What does the federal government spend the most money on?
12) Define importing and give an example
13) How does a supply curve look on a graph?
14) Know some examples of social and cultural barriers
15) What is a countries exchange rate based on?
16) What are the factors in evaluating a firm’s social performance?
17) Define ethical reasoning
18) Define economics
19) How does pollution affect us?
20) Define indirect exporting and give an example
21) Who are some entrepreneurs?
22) Know how freedom of choice affects private enterprise systems
23) Define creativity?
24) How do business managers practice business ethics?
25) Define microeconomics and give examples
26) Define a partnership
27) Who do businesses have responsibilities to?
28) Define socialism, capitalism, and communism, and know the difference between each
29) What are some ways to be successful in the private enterprise system?
30) Know about ethical standards
31) Define capital
32) Know who can effect ethical expectations and behavior
True and False
____ 1. The highest level of ethical and moral behavior is known as the postethical stage.
____ 2. Preconventional behavior is the term used to describe an employee’s disclosure to the media or government authorities of illegal, immoral, or unethical practices of the organization.
____ 3. The World Trade Organization (WTO) makes decisions that are binding on member nations involved in disputes.
____ 4. The majority of the world’s population lives in less-developed countries.
____ 5. The principal federal agency responsible for protecting investors form financial misdeeds is the Federal Trade Commission.
____6. Microeconomics and macroeconomics are interrelated.
____ 7. Economics deals only with the allocation of abundant resources by business.
____ 8. Fiscal policy is used primarily to increase or decrease interest rates.
____ 9. In the recovery stage of the business cycle, the economy emerges from recession.
____ 10. Consumerism is the concept that business must give consideration to employee wants and needs.
____ 11. Restrictive monetary policy reduces the money supply and helps to reduce inflation.
____ 12. The U.S. has international trade deficit in the sale and purchase of goods, but a trade surplus in services.
____ 13. The current philosophy among managers today is best described as transaction management.
____ 14. Growth leads to expanded job opportunities, improved wages, and an increased standard of living.
____ 15. Persons of Hispanic and Asian decent represent the fastest growing segments of the U.S. population.