BA 10 - Global Business and Entrep. - Spring 2002

BA 10 - Global Business and Entrep. - Spring 2002 - OLDBm...

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Unformatted text preview: OLDBm GUSWESV AND EN‘mEPneweuRSHtP SWIM: 2002 Module 2 Exam Version C - Spring 2002 1. As more and more firms engage in international business, the world economy is fast becoming a single interdependent system, a process called: a. exporting b. importing 0. capital mobility @globalization e. direct investment 2. When two or more firms agree to collaborate on wrongful acts, it is referred to as: a. monopolizing b. consumerism Eiollusion d. brokering e. segmenting 3. Which of the following occurs when someone uses confidential information to gain from the purchase or sale of stocks? a, checking kiting b. a margin purchase 0. going “short" @‘insider trading ie. a margin sale 4. When a country’s imports exceed its exports, the nation has a: 2.1:. balance of payments @trade deficit c. balance of trade d. trade surplus e. competitive advantage 5. A small business cannot be part ofanother busmess: Ejme b. False 6. Which of the following i532; an international organizational strategy? a. independent agents b. licensing arrangements c. branch offices @domestic headquarters e. strategic alliances 7. Firms give individuals or companies in a foreign country exclusive rights to manufacture or market their products in that market through which of the following international organizational strategies? (3.1 licensing arrangements b. independent agents c. branch offices d. strategic alliances e. direct investment 8. There are many hurdles to trading in global markets. The story Executive Director Himelstein told about his client in Texas who failed to close a business deal in Japan is an example of which type of hurdle? a. Economic ®ocial & Cultural c. Currency shifts d. Legal & Political 9. An entrepreneur has the most control over the following aspect of his/her business: @rganizational culture b. Size of the target market c. Actions of its competitors d. All ofthe above 6. None of the above 10. 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. Ovming a small business 0‘. Winnlng the lottery 11. In addition to describing the business concept, a business plan needs to include the suggested model for achieving commercial viability of that concept: ‘QJTrue b. False l2. When owners of small businesses meet regularly with one another to discuss common problems and opportunities and possibly to pool resources, it is referred to as: a. forming an SBI b. opening an SBDC c: asking for advice from an SBI ”dinetworking E. opening a franchise 13. A firm taking this stance toward social responsibility goes beyond the bare minimum of responsibility ifspeciiically asked to do so: a. social obligation approach ("Al/3:. social reaction approach ‘0. social response approach (1. community indifferent approach e. community minimal approach 14. The systematic analysis of an organization's success in using funds earmarked for its social responsibility goals is called a: a. government mandate b. community activist approach c. government initiative (cDocial audit 6. balance sheet recognition 15. Service businesses are the fastest-growing segment of small business enterprise: @ True b. False 16. The SBA bases its definition of small businesses on: a. number of suppliers b. annual net income after taxes c. number of employees glutotal annual sales Eyboth c and d 17. Country A is an extremely efficient producer of tin. However, its climate and terrain make it difficult to produce corn. According to the theory of comparative advantage, Country A should: 21. Split its production between tin and corn. b. Watch the global market to see which product is bringing the highest price. 9. Develop its capabilities to produce com. d. Concentrate its production on tin. 18. 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 CLExport quotas /dj\lontaiiffbarricrs 19. 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: @Think globally, act locally b. International foolishness c. Global marketing 20. Under a system of floating exchange rates. the value ofa country‘s currency is determined by: a. The govemment of that country. b. The United Nations. [QThe supply and demand in the market for that currency. "d. The political power ofthe country's trading partners. 21. Which of the following is the key characteristic of regional common markets? a. Coordination of laws to facilitate trade amongst members b. Common external tariffs c. No internal tariffs x’fl? All of the above “é. None of the above 22. The three basic concepts of social responsibility are profit responsibility, stakeholder responsibility and societal responsibility: I {3 rue b. False 23. 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. @Money inflows from tourism, foreign aid, foreign investment 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. 24. Today, the SBA estimates that at least for what percent of small businesses can expect to survive for six years? a. 10 percent b. 15 percent '940 percent d. 80 percent e. 90 percent 25. 12 of the 15 European Union member countries are participating in the EURO, llof 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 @Greece d. Denmark 26. 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 13. Technology companies are not subject to ordinary economic forces @Eamings are more important than prospects d. Exponential Internet growth hasjust begun and, if anything, will accelerate e. This time, things are different 27. The practice of protecting domestic business at the expense of free market competition is called: a. local content laws b. imposing quotas 0. adding tariffs g) protectionism e. putting an embargo on exports 28. Associations ofproducers that control supply and prices are called: independent agents @cartels c. business offices d. foreign direct investments e. quotas 29. Which of the following factors contribute to small business failure? a. managerial incompetence or inexperience b. neglect c. weak control systems (i insufficient capital e.~all of the above 30. Which of the following sources of funds are more likely to be uses to help with the purchase of an existing business? a. equity markets b. capital markets 0. money markets @lending institutions 31. More than any other industry group, this business fonn lends itselfto big business. a. retailing b. wholesaling c. agriculture dzservice @fmanufacturing 32. People who assume the risk of business ownership with a primary goal of grth and expansion are called: a. service providers b. manufacturers c. retailers d. wholesalers @entrepreneurs 33. At a minimum, a business plan should include the following financial projections: a. Income Statement b. Cash Flow Statement 9. Balance Sheet t d/All of the above e. None ofthe above 34. Last Question: This is verSion <C>. Bubble in <C> for this question and write <C> in the identification section of your Scaritron. If you do not answer this question, you lose the point. ...
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