Which of the following is a characteristic of a service economy?

Multiple Choice

• It is concerned with the indigenous production of food, clothing, and furniture.

• It is devoted to producing services that make life easier for busy consumers.

• It is devoted to producing goods and services rather than producing agricultural products.

• It is significant for the development of factories along the railways to manufacture farm equipment.

• It is particularly important for enabling farmers to send their surplus crops and goods all over the nation for barter or for sale.

If a country balances the money it spends for social, defense, and other programs with the amount of money it takes in from taxes, this country is eliminating a

Multiple Choice

• budget deficit.

• national debt.

• budget surplus.

• trade imbalance.

• recession.

During a recent recession, the government of a country provided loans and took ownership positions in its main bank, Savings Co. What economic system does this exemplify?

Multiple Choice

• modified capitalism

• pure capitalism

• laissez-faire capitalism

• communism

• socialism

_____ relates to the number of goods and services that consumers are willing to buy at different prices at a specific time.

Multiple Choice

• Demand

• Supply

• Elasticity

• Balance of payments

• Deficit

How are profits handled in communist systems?

Multiple Choice

• Profits earned by small businesses may be reinvested in the business.

• Individuals are free to keep profits after paying taxes.

• Businesses are free to keep profits after paying taxes.

• Excess income goes to the government.

• Only profits from government-owned industries go to the government.

Economic expansion occurs when

Multiple Choice

• fewer goods and services are produced than consumer demand.

• an economy is growing and people are spending more money.

• a nation's standard of living drops dramatically.

• employment levels decline over time.

• prices begin to rise and incomes begin to fall.

Which of the following is true of misuse of company time?

Multiple Choice

• Theft of time is not a common area of misconduct observed in the workplace.

• Time theft costs can be difficult to measure but are estimated to cost companies hundreds of billions of dollars annually.

• The average employee steals 10 hours a week with late arrivals, leaving early, and long lunch breaks.

• The average employee doesn't misuse company time often enough to negatively affect productivity.

• Time theft costs are easy to measure and cost companies millions of dollars annually.

Which of the following organizations funds programs to train the hard-core unemployed so that they can find jobs and support themselves?

Multiple Choice

• Transparency International

• Boston Consulting Group

• National Alliance of Businessmen

• National Business Ethics Organization

• British Financial Services

Jancy and Kevin are competing for a promotion. Hoping to sway her manager to promote her over Kevin, Jasmine gives her manager an expensive watch. This is an example of

Multiple Choice

• misuse of company resources.

• bribery.

• dishonesty.

• conflict of interest.

• an acceptable gift.

Pollution of water and soil from activities such as oil and gas drilling is primarily related to

Multiple Choice

• consumer relations.

• sustainability issues.

• community relations.

• employee relations.

• relations with stockholders.

Which of the following countries is included in the list of least corrupt countries?

Multiple Choice

• Denmark

• Somalia

• North Korea

• Sudan

• Afghanistan

Which of the following statements is true regarding business ethics and social responsibility?

Multiple Choice

• All actions deemed unethical by society are also illegal.

• The concerns of what is legal and ethical do not change over time.

• The terms social responsibility and ethics should be used interchangeably.

• Companies can be both profitable and socially responsible.

• Businesses whose sole objective is to earn profit may not consider their social responsibility.

Which of the following involves the activities and organizational processes adopted by businesses to meet their social responsibilities?

Multiple Choice

• carbon neutrality

• corporate citizenship

• hierarchical clustering

• social dominance

• organizational ethics

The right to choose ensures that

Multiple Choice

• consumers' interests will receive full and sympathetic consideration when the government formulates policy.

• consumers do not have to pay service taxes.

• consumers enjoy fair treatment if they voice complaints about a purchased product.

• consumers enjoy freedom to review complete information about a product before they buy it.

• consumers have access to a variety of goods and services at competitive prices.

John F. Kennedy's 1962 consumer bill of rights outlined four rights: the right to be informed, the right to choose, the right to be heard, and the right to

Multiple Choice

• regulations.

• service.

• nondiscrimination.

• fix prices.

• safety.

Which of the following laws reformed the financial industry and offered consumers protection against complex and/or deceptive financial products?

Multiple Choice

• the Glass-Steagall Legislation

• the Dodd-Frank Act

• the Sarbanes-Oxley Act

• the Clayton Act

• the Celler-Kefauver Act

Which of the following is likely to be a reason for some U.S. companies to bring their outsourced production processes back to the United States?

Multiple Choice

• increasing labor unionization in the United States

• increased government regulation of business in the United States

• increasingly strict enforcement of intellectual property rights in Asian countries

• high cost of transporting products to the home country

• increase in labor turnover rates in the United States

What type of company benefits the most from licensing?

Multiple Choice

• a large manufacturer that wants to launch a new brand internationally

• a small manufacturer that wants to launch a well-known brand internationally

• a small manufacturer that wants to launch a new brand internationally

• a large manufacturer that wants to transform a less-known brand into a well-known brand internationally

• a small manufacturer that wants to launch a well-known brand locally

DMC Inc., headquartered in Malyia, has completely transferred its tax services to Apex Corp in Thelisia because there are many well-educated workers and lower labor costs. This is an example of

Multiple Choice

• licensing.

• franchising.

• offshoring.

• insourcing.

• outsourcing.

Which of the following is one of the possible results of trade deficits?

Multiple Choice

• the success of businesses

• the import of more products

• the loss of jobs

• the export of more services

• a higher standard of living