5. Adonijah owns a structural engineering firm. Business is slow due to a recent economic downturn, and he hears from multiple clients that many engineers, architects, and construction workers are out of work. Adonijah advocates for government spending on labor-intensive infrastructure projects to stimulate employment during the economic slump. Which form of capitalism does Adonijah believe in?

a. Keynesian capitalism

b. Laissez-faire capitalism

c. Bimodal wealth distribution

d. Socialism

6. Azaza Superstore, a public company with operations in more than 200 countries, does not have significant ties to any one nation. Azaza was founded in the United States, but now it is a globally recognized brand with a strong global strategy. Azaza is so large that it generates higher revenue than the gross domestic product (GDP) of some of the countries where it does business. Which of the following would Azaza Superstore be categorized as?

a. Made-to-break

b. A vertical system

c. A multinational corporation

d. Business for Social Responsibility

7. Globo Tech, a multinational smartphone company, has several factories in Thailand and China where labor is affordable. Globo Tech pays very low wages compared to local employers in Thailand and China, but people need the work. To which common criticism of MNCs does this scenario relate?

a. Exploiting the labor markets of host countries

b. Being too large

c. Breeding unfair competition

d. Being too powerful

8. Cocoa & Co, a chocolate company, joins a global organization that supports business responsibility. Cocoa & Co. has agreed to abide by the organization's set of 10 principles that promote human rights, sustainability, and the eradication of corruption. For example, one of the principles relates to human rights abuses. Since the cocoa supply chain is known for its child labor issues, Cocoa & Co. pledges to only source cocoa from regions where child labor is not an issue. Which global organization is Cocoa & Co. a member of in this scenario?

a. United Nations Global Compact

b. Amnesty International

c. Association of National Advertisers

d. Council on Economic Priorities Accreditation Agency

9. Leonard & Cho, an international accounting firm, has adopted the International Financial Reporting Standards (IFRS). These standards are simple and more flexible than other standards, so Leonard & Cho employees can observe a set of overarching principles instead of precise rules. The partners at Leonard & Cho prefer these standards because they allow for creative problem-solving. Which of the following describes the type of standards Leonard & Cho uses in this scenario?

a. Instincts-based standards

b. Rules-based standards

c. Integrity-based standards

d. Principles-based standards

10. Mega Goods, an American multinational consumer goods corporation, is a corporate member of a national marketing organization that promotes self-regulation. The organization receives nearly 100 complaints about a Mega Goods advertisement for dish detergent. Consumers suggest its "spot-free" claims are misleading. As a result, the marketing organization works with Mega Goods to help the company come into compliance. Which organization is Mega Goods a member of in this scenario?

a. Association of National Advertisers (ANA)

b. The Academy of Management Code of Ethics (AOM)

c. The Chartered Financial Institute/Analyst Association (CFAI/CFA)

d. The United Nations Global Compact