BA 10 - Spring 2003 - Himelstein - Module 5

BA 10 - Spring 2003 - Himelstein - Module 5 - ugba 10 % 55C...

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Unformatted text preview: ugba 10 % 55C Principles of Business H AS SCHOOL OF BUSINESS May 2003 Module 5 Exam: Global Business and Entrepreneurship Dan Himelstein Make sure your family name comes first! Instructions , o This is an exam—please do not talk 0 Your books and notes must be put completely . v ay 0 Do not open the exam until you are told to ' raise your band 0 While you are waiting an m, enter the following on your Scantroni Nanw: LAST, First M. Sunken 1234—5678 your Student Identification Number Tthba {A, B, C, or D} This is the test version—you won’t know this Until you open the test Date: (1, 2, etc) This module number Houn Your Section number: (101 m 116) Module 5 Exam Questions - Spring 2003 1. Which of the following sources of funds are more likely to be used to help with the purchase of an existing business? a) equity markets b) capital markets c money markets _ lending institutions bond markets 2. The United States' single largest trading partner is China. True ~——/:7 3. imall businesses must answer the same social responsibility questions as big businesses. I ) False 4. Venture capital firms provide capital to small business in return for stock. a True ’ False 5. Which of the following is NOT one of the key myths that helped drive the boom in ology stocks? @lr‘lechnology companies can not generate breathtaking growth gains in earnings, sales ‘ and productivity for years to come b) Technology companies are not subject to ordinary economic forces \/ c) Prospects are more important than earnings V/ d) Exponential Internet growth has just begun and, if anything, will accelerate\/ e) This time; things are differentv 6. Which method provides the best odds for a person making $1 million? a) Winning a game show b) Saving $800 a month for 30 years "c ' Owning a small business ) Winning the lottery 7. Of the following financial indicators, which one requires the most attention from the entrepreneurial venture? a) Income Statement b) Breakeven Analysis 0) Balance Sheet {9 Cash Flow Statement 8. Because of the investment normally required in equipment, energy, and raw materials, a d deal of money is usually needed to start a (a manufacturing business. ) retailing business. c) service business. d) agriculture business. e) wholesaling business. 9. Jan Pennington is opening a flower shop and has decided to operate as a sole proprietorship. Which of the following is NOT one of the advantages of operating the business as a sole proprietorship" ' a) freedom\/ b simple to form\/ limited liability Ad) low start-up costs e) tax benefits 10. Partnerships, like sole proprietorships, lack a) trust: b) clarification. c) profits. 6? continuity. e) internal conflicts. 11. Which of the fol wing is NOT an advantage of the corporate form of organization? I n W a) continuity - b) professional management c; limited liabilityx/ _ low startup cost the ability to raise moneyx/ 12. American Business Machines is organized as a WES income will be taxed first at the corporate level and also on shareholder returns as dividends. This situation is known as a a tender offer. @ double taxation. regulatory costs. d) limited liability. e) acquisition. 13. Top managers hired by the board of directors to run the corporation on a day—to-day basis ./ - called corporate officers. b) first-line supervisors. c) staff members. d) stockholders. e) department heads. ’14. Which of the following are reasons provided by the authors of your textbook mm“ existing business rather than starting a neueoge from scratch? a) better odds of success W M70 b) proven ability to draw customers c) established working relationships (1) an established track recordx/ (We) all of the above I, 15. In addition to describing the business concept, a business plan needs to include the ggested model for achieving commercial viability of that concept: @. True ) False 16. 12 of the 15 European Union member countries are participating in the EURO, llof which were part of the original grou of nations that adopted the EURO. As of January 1, 2001, which country became the 12t and most recent participant? a) Britain b Sweden Greece ) _ Denmark 17. Which of the following is the key characteristic of regional co on markets? a) Coordination of laws to faci 'tate trade amongst memberw?m b) Common external tariffs c No internal tariffs\/f @ All of the above e) None of the above 18. What is the key argument for free trade & the comparative advantage theory? a) Efficiency & specialization - b) Economies of scale c) Innovation (9 All of the above 19. Government economists in the small nation of Redland reported that their country's imports for 1998 were $3 billion greater than its exports. They also reported that Redland experienced a balance of payments surplus for 1998. These reports suggest that: edland's economists are mistaken. The nation must have had a balance of payments deficit since more money flowed out of Redland for imports than flowed into the country for its exports. I , b) Redland's gold reserves apparently appreciated in value. @ Money inflows from tourism, foreign aid, foreign investment and other sources k more than offset the difference between imports and exports. d) Redland's government must have revalued the country‘s currency to obtain a more favorable exchange rate. 20. The Federal Express market entry strategy in China is a good example of: a) Think globally, act locally International foolishness , ‘Global marketing 21. Eca Hardware, a US. retailer, buys much of its inventory from Asian countries. Eca Hardware would benefit if the value of the dollar relative to the currencies of the countries from which Eca imports: ‘ , Rose .. Fell Remained constant d’)/Floated unpredictany 22. Which of the following is NOT one of the proposed lobal labor standa __as outlined in lecture? , / a) Do not use child or forced labor b) Provide a safe working environmerV/ c Respect workers' right to unionizé‘ @ Regularly require more than 48—hour work weeks . e) Pay fair wages to meet workers' basic nee 23. In his guest lecture, Dean Tom Campbell focused primarily on what region of the world? a) North America Asia Africa d) Latin America 24. The is an organization that encourages its 140 member nations to negotiate trade agreements and resolve disputes about trade policies and practices. a) United Nations b) League of Nations c) International Board of Trade (1) Import-Export Board World Trade Organization 25. According to which one of the following agreements, Canada, the United States, and Mexico will gradually eliminate tariffs and all other trade barriers? ~ EURO b PanAmerican NAFTA CMA e) GE A greement 26. A firm that makes products in one country and then distributes and sells therh in others is a(n) Iimporter‘g 0/}? @ exporter. / X1)» financier. >( / d) investment bankerX w e) multinational firm. Which of the following types of firms have planning and decision-making functions that are geared to international markets? a multinational firms § international firms M \CQ Iii/“d ) exporting firms domestic firms none of the above 28. Which of the following international organizational strategies often represent several firms at once and usually do not specialize in a particular product or market. " a licensing arrangement independent agent \ [53/ branch office )( royalty arrangement Ar strategic alliance ’7 29. The United States has embargoes against which of the following countries? / a) Cuba 4—4 b) Iraq \ c) Libya d) Iran\/ ® All of the above 30. Tariffs that are imposed strictly to .aise money for the government are referred to as tariffs. LK/ revenue ) quota c) subsidy d) protectionist e) union 31. The practice of protecting domestic business at the expense of free market competition is called local content laws. b) imposing quotas. \ adding tariffs. -protectionism. ‘ putting an embargo on exports. 32. Which of the fc\>}owing groups is NOT considered an organizational stakeholder? a) employees / b) investorsV/ / c) customersé—f d) suppliers e) all of the above are organizational stakeholders 33. Social activism dedicated to protecting the rights of consumers in their dealings with businesses is called “ kiting. consumerism. collusion. ,da" price gouging. e) whistle blowing. 34. In maintaining and reporting its financial status, every corporation must conform to a) corporate rules. the FDA. GAAP. insider information. )a/AACSP. 35. Firms adopting a(n) stance to social responsibility do not necessarily or proact' 7- y. seek avenues for contributing, but participate afier solicitation. accommodative ‘3) obstructionist ,fi/ proactive Md)” defensive e) societal 36. Which of the following is not a step mentioned by the authors of your textbook to foster a company wide sense of social responsibility? a) Social responsibility must start at the top§/ / b A committee of top managers must develop a plan. fl Governmental initiatives dictate starting a plan. / d) One executive is put in charge of the firm's agenda. ‘ e) The organization must conduct occasional social audits. \/ 37. The US. Department of Commerce considers a business "small" if it has fewer than how many employees? a) 10,500 employees b) 500,000 employees c) 5,000 employees (7 (1) 50,000 employees 500 employees 38. According to the SBA, small businesses supply what percent of all "innovations" introduced into the American marketplace? a) 10 percent b) 90 percent c) 15 percent 55 percent 96 percent 39. This is version C. Bubble in C for this question and write C in the identification section of your Scantron. If you do not answer this question, you lose the point. ...
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BA 10 - Spring 2003 - Himelstein - Module 5 - ugba 10 % 55C...

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