BA 10 - Global Business and Entrep. - Fall 2002 - Himelstein

BA 10 - Global Business and Entrep. - Fall 2002 -...

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Unformatted text preview: OLOBQL mums-U I-mo ENWEPZEMeuKSHrP Frau. 2.002. OF Bumss Principles of Business . migmnéréa 70 ugba 10 December 2002 Module 5 Exam: Global Business & Entrepreneurship Daniel Himelstein Make sure your family name comes first! Instructions 0 This is an exam—please do not talk 0 Your books and notes must be put completely a 0 Do not open the exam until you are told raise your hand . While you are waiting to = , enter the following on your Scantron: Name: LAST, First M. Sunken 1234—5678 your Student Identification Number TthOn {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 - Fall 2002 1. Which of the following buys products in foreign markets and then sells them for resale in its home country? \ gy importer " ) exporter c) international firm d) direct investor 6) investment banker 2. Selling a product abroad for less than the cost of production is referred to as: a) setting up a business office. b)“ setting up quotas. 9y dumping. d) imposing tariffs. 6) direct foreign investment. 3. The United States and Canada are each other's largest trading partners. fl) ," True B) False 4. Organizational stakeholders can best be defined as: 21), individuals and businesses that own stock in a company. 65" individuals and groups that are directly affected by the practices of an organization. c) the officers and key employees of an organization. d) government regulators who oversee an industry. e) competitors. 5. According to the authors of your textbook, since its founding, NAFTA has resulted in: a) an increase in jobs in Mexico, but decreases in the United States and Canada. d3) an increase in jobs in Mexico, the United States, and Canada. _‘ c) a decrease in jobs in Mexico, the United States, and Canada. 91:!) a decrease in jobs in Mexico and Canada but an increase in the United States. Jek'an increase in jobs in Canada, accompanied by a decrease in jobs in the United States and Mexico. 6. Which of the following exists when a country can produce something more cheaply and/or of higher quality than any other country can? a) balance of payments b) monopoly e); oligopoly 6)} absolute advantage e) comparative advantage 7. In general, the United States has fairly large trade deficits with which of the following countries? a) Brazil b) Bulgaria 0) Egypt (1) South Korea {6)} Japan 8. As the value of a country's currency rises, a) domestic companies will have a harder time selling their products in foreign markets. b) foreign companies will find it easier to sell their products in local markets. 9). imports and exports will remain relatively constant. sly both a and b e) all of the above 9. Which of the following has NOT been identified as a basic consumer right? a) Consumers have a right to safe products. (by Consumers have a right to collude. c) Consumers have a right to be informed about a product. d) Consumers have a right to be heard. e) Consumers have a right to choose what they buy. 10. As a rule, irresponsible behavior toward shareholders/means abuse of a firrn's: a) managers. fb)‘ suppliers. c2) financial resources. d) customers. e) environment. 11. Firms that have adopted a(n) stance to social responsibility have little regard for ethical conduct and will generally go to great lengths to hide wrongdoing. % accommodative }) obstructionist c) proactive d) defensive e) societal 12. 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. c)\ Governmental initiatives dictate starting a plan. One executive is put in charge of the finn's agenda. 6) The organization must conduct occasional social audits. 13. In a social audit, an independent group of examiners evaluate a company's compliance with GAAP. a) True (l3)! False 14. The SBA bases its definition of small businesses on: a) number of suppliers. b) annual net income after taxes. J c) number of employees. (1) total annual sales. . e) both c and d 15. Approximately what percent of all US. businesses employ 20 or fewer people? (3.)) 86 percent i'b) 14 percent 0) 19 percent CI) 59 percent 6) 38 percent 16. Most of the products made by big manufacturers are sold to consumers by: a) large retailers. b) large wholesalers. . J_ c); small businesses. ‘ d) large discount stores. e) middlemen. 17. More than any other industry group, this business form lends itself to big business. a) retailing b) wholesaling c) agriculture d) service ‘.""e')) manufacturing 18. Marsha Brady has organized her craft shop as a sole proprietorship. Her sister has warned her about , the legal principal holding Marsha responsible for paying off all of the debts of the business. a),_,l unlimited liability b) limited liability c) privity d) unconnectedness e) unrestricted debt 19. The most common type of partnership is a: - a) limited partnership. b) corporate partnership. ( c); general partnership. " sole partnership. e) none of the above 20. In theory, the legal life of a corporation is: a) ten years. b) fifty-years. (”(3)133 unlimited. Md) dependent on the firm's management. e) seventeen years. 21. American Business Machines is organized as a corporation. Its income will be taxed first at the corporate level and also on shareholder retums as dividends. This situation is known as: a) a tender offer. , b) " double taxation. 0) regulatory costs. d) limited liability. e) acquisition. 22. The roles of shareholders, directors, and other managers in corporate decision—making are called: 6 a) articles of incorporation. .; b)/ corporate governance. c) bylaws. d) partnership agreements. e) articles of ownership. 23. Which of the following factors contribute to small business failure? a) managerial incompetence or inexperience b) neglect 0) weak control systems d) insufficient capital g c) all of the above 24. Approximately what percent of new businesses started in the past decade were bought from someone else? rf El...) 30 percent 5) 93 percent 0) 81 percent d) 70 percent e) 5 percent 25. Which of the following sources of funds are usually relied on by individuals starting up new businesses? a) bond markets b) stock markets c)‘ capital markets , d); personal resources e) lending institutions 26. By definition, a small business cannot be part of another business. 3).- True b) False 27. Which of the following is NOT one of the key myths that helped drive the boom in technology stocks? a) Technology companies can generate breathtaking growth gains in earnings, sales and productivity for years to come vb) Technology companies are not subject to ordinary economic forces (ch Earnings are more important than prospects d) Exponential Internet growth has just begun and, if anything, will accelerate e) This time, things are different 28. An entrepreneur has the most control over the following aspect of his/her business: _ a) Organizational culture by Size of the target market 0) Actions of its competitors d) All of the above e) None of the above 29. At a minimum, a business plan should include the following financial projections: a) Income Statement ‘ b) ’Cash Flow Statement ‘ 0) Balance Sheet d) All of the above 6) None of the above 30. Which of the following is an example of an international firm? a) Consumers Supermarkets . N b) Wal—Mart c) Skaggs Department Stores d) Bill's Gas and Oil 6) Sunrise Computer Systems 31. Which of the following types of payments are usually received by an exporter as an ongoing payment calculated as a percentage of the license holder's sales? a) flat fees b) quantity discounts 0) agent fees d) direct investments C e) royalties 32. The United States government forbids the importation of cigars from Cuba into the United States. This government order is known as a(n): a) tariff. b)”; embargo. YB) subsidy. (1) local content law. e) quota. 33. Which of the following type of tariff is meant to discourage the import of particular products? a) rev‘enue tariff b) quota tariff c) subsidy tariff (”61)“) protectionist tariff e)' union tariff 34. In addition to describing the business concept, a business plan needs to include the suggested model 6 for achieving commercial viability of that concept: C a) True b) False 35. Which of the following is NOT one of the proposed global labor standards as outlined in lecture? a) Do not use child or forced labor b) Provide a safe working environment c) ReSpect workers' right to unionize d)” Regularly require more than 48-hour work weeks 6:) Pay fair wages to meet workers' basic needs 36. The UPS market entry strategy in China, outlined in the reader article, "Orient Express: Just How Hard Should a US. Company Woo Foreign Markets?", is a good example of: a) Ethnocentrism f b) Think globally, act locally c)", International foolishness d) Global marketing 74 " r‘ ((43. i. it??? MU 37. 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: a) Redland'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. b) Redland's gold reserves apparently appreciated in value. C) Money inflows from tourism, foreign aid, the buying and selling of currency, and other sources 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. 38. The existence of the informal Keiretsu system in Japan, which makes it extremely difficult for foreign firms to sell their products in that country, is an example of: a) Protective tariffs b) Embargoes c) Export quotas 7d) )Nontariffbarriers 39. 12 of the 15 European Union member countries are participating in the EURO, 11 of which were part of the original group of nations that adopted the EURO. As of January 1, 2001, which country became the 12th and most recent participant? a) Britain ' b) Sweden c) Greece d) Denmark 40. The represents the first attempt to establish a truly global mediation center to resolve international trade disputes. a) International Trade Court f 13)) World Trade Organization C) Global Trade Commission d) United Nations International Mediation Center 41. Last Question: This is version A. Bubble in A for this question and write A in the identification section of your Scantron. If you do not answer this question, you lose the point. mmrrnutsgnnr ”Emu-cm um: um.- m... 1 .1. . .1 _.. .. - '— — — — '- I“ — _I— — _I— _I- — — — — — — — — — — — — — — — ...
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