1) There is a small, family-owned store that sells food and household goods in a small town. The owners have good relations with the community, especially with local farmers who supply much of the food. The farmers aren't organized into a cooperative or union, and the store deals with each individually. Which is a stakeholder in the store?

Select one:

a. The firm's family

b. The farmers

c. The customers

d. All of the above

2) To ensure ethical business practices, what step is sufficient when engaging in international business?

Select one:

a. All home country laws are followed.

b. All foreign country laws are followed.

c. The Law of the Sea is followed.

d. There is not a single step since ethics are relative.

3) There is a small, family-owned store that sells food and household goods in a small town. The owners have good relations with the community, especially with local farmers who supply much of the food. The farmers aren't organized into a cooperative or union, and the store deals with each individually. Suppose the store wanted to buy some farms to control the supply of certain vegetables. How would you classify this strategic move?

Select one:

a. Horizontal integration

b. Forward integration

c. Backward integration

d. Concentric integration

4) What is the most important business tool to access the economic gains from globalization?

Select one:

a. Hand-held calculator

b. Solar energy cell

c. Books

d. The internet

5) There is a large European multinational firm that sells coffee to consumers. They buy coffee from around the world, process it, and distribute it to stores around the world. What is the best term for this activity?

Select one:

a. Diversification

b. Integration

c. Value chain

d. Profit maximization

6) There is a small, family-owned store that sells food and household goods in a small town. The owners have good relations with the community, especially with local farmers who supply much of the food. The farmers aren't organized into a cooperative or union, and the store deals with each individually. Based on this scenario, where would the firm's good relations with the community and farmers be placed in the Five Forces analysis?

Select one:

a. Threat of new entrants

b. Threat of substitutes

c. Bargaining power of buyers

d. Bargaining power of suppliers

7) There is a small, family-owned store that sells food and household goods in a small town. The owners have good relations with the community, especially with local farmers who supply much of the food. The farmers haven't been organized into a cooperative or union, and the store has dealt with each individually. Suppose the farmers organized to form a cooperative to coordinate sales to suppliers. What can we expect will happen to the profit from the farming production?

Select one:

a. Some of the profit shifts from the store to the farmers.

b. Some of the profit shifts from the farmers to the store.

c. The profit allocation does not change because farming is perfectly competitive.

d. The profit allocation does not change because the price of the product in the store remains the same.

8) There is a large European multinational firm that sells coffee to consumers. They buy coffee from around the world, process it, and distribute it to stores around the world. The firm attempts to buy the coffee beans at the lowest possible cost. Suppose there is an effective social movement to pay coffee farmers a "fair trade" higher wage. In a Five Forces analysis, where would this be classified?

Select one:

a. Threat of new entrants

b. Threat of substitutes

c. Bargaining power of buyers

d. Bargaining power of suppliers

9) How are economies of scale generally achieved?

Select one:

a. Government regulation

b. Patents and copyrights

c. Exclusive control over a resource

d. Mass production techniques

10) There is a small, family-owned store that sells food and household goods in a small town. The owners have good relations with the community, especially with local farmers who supply much of the food. The farmers aren't organized into a cooperative or union, and the store deals with each individually. Based on this scenario, where would the firm's good relations with the community and farmers be placed in a PEST?

Select one:

a. Political

b. Economic

c. Social

d. Technological