The U.S. Business Environment
Which of the following is a key way for businesses to strengthen ethical practices in the workplace?
A) Foster transparency and honesty
B) Refrain from working with industry peers
C) Focus on logical reasoning skills
D) Look beyond surface-level information
E) Analyze market trends and connections
A) Foster transparency and honesty
What are an individual’s beliefs about what is right and wrong or good and bad called?
A) Laws
B) Motivators
C) Ethics
D) Rules
E) Cultures
C) Ethics
Which industry group represents the largest segment of small businesses?
A) Manufacturing
B) Retailing
C) Transportation
D) Wholesaling
E) Services
E) Services
Which type of organization manufactures goods in one country and then distributes and sells them in other countries?
A) Importer
B) Exporter
C) Multinational firm
D) International firm
E) Direct foreign investor
B) Exporter
Which aspect of the management process involves determining what needs to be done and how best to achieve it?
A) Organizing
B) Planning
C) Controlling
D) Processing
E) Monitoring
B) Planning
What is the point at which the supply curve and the demand curve intersect, setting the market price for goods and services?
A) Surplus price
B) Equilibrium price
C) Decision point
D) Parity price
B) Equilibrium price
Which category of ethics deals with issues such as hiring, firing, working conditions, and employee privacy?
A) Behavior toward the organization
B) Behavior toward economic agents
C) Behavior toward employees
D) Elimination of conflicts of interest
E) Corporate responsibility
C) Behavior toward employees
What is the process of seeking business opportunities under conditions of risk called?
A) Leadership
B) Entrepreneurship
C) Financial planning
D) Franchising
E) First-mover advantage
B) Entrepreneurship
Why do countries allow others a comparative advantage?
A) Strengthen trade ties
B) No country can make everything
C) Learn business strategies
D) Stabilize exchange rates
E) Prevent goods "dumping"
B) No country can make everything
What is the primary skill managers develop through on-the-job experience rather than formal education?
A) Technical skills
B) Human relations skills
C) Management skills
D) Analytical skills
E) Operational skills
C) Management skills
Experts assess the strength and performance of the U.S. economy using which of the following statistical measures?
A) Market trends, stock prices, and corporate earnings
B) GDP, unemployment rates, and inflation
C) Consumer spending habits, advertising reach, and wages
D) Business profits, tax rates, and interest rates
B) GDP, unemployment rates, and inflation
What term refers to the way businesses try to balance their commitments to groups and individuals in their social environment?
A) Business ethics
B) Stakeholder consciousness
C) Social responsibility
D) Corporatization
E) Socialization
C) Social responsibility
Why is developing a business plan crucial for an aspiring entrepreneur?
A) It helps establish a succession path
B) It eliminates the need for setting goals and objectives
C) It determines financial needs and strategy implementation
D) It identifies potential sales without forecasting
E) It simplifies legal requirements for starting a business
C) It determines financial needs and strategy implementation
What happens to U.S. exports to the EU when the dollar weakens against the euro?
A) Exports decrease
B) Higher production costs
C) Exports become cheaper, boosting sales
D) U.S. imposes tariffs
E) U.S. product value drops
C) Exports become cheaper, boosting sales
What type of analysis examines external factors that could affect an organization’s strategy and performance?
A) Organizational analysis
B) Tactical analysis
C) Environmental analysis
D) Functional analysis
E) Financial analysis
C) Environmental analysis
Which economic system prioritizes private ownership, free markets, and minimal government intervention in industries?
A) Socialism
B) Communism
C) Capitalism
D) Marxism
E) Mixed
C) Capitalism
Which of the following relates to right and wrong behavior in a business environment?
A) Corporate responsibility
B) Workplace conduct
C) Business ethics
D) Ethical leadership
E) Professional values
C) Business ethics
What is a key reason businesses choose to incorporate?
A) Simplified decision-making
B) Increased personal liability
C) Ability to raise capital more easily
D) Limited ability to expand
E) Less regulatory oversight
C) Ability to raise capital more easily
In a globalized economy, how can tariffs on imports influence international trade relationships?
A) They encourage trade by reducing the cost of goods across borders
B) They strengthen trade relations by promoting free-market policies
C) They may lead to retaliatory tariffs and trade disputes between countries
D) They reduce the need for international regulations and standards
E) They help establish alliances between countries by easing market restrictions
C) They may lead to retaliatory tariffs and trade disputes between countries
Why is goal setting crucial for a company’s success?
A) To determine when a SWOT analysis should be conducted
B) To ensure the company stays aligned with external factors
C) To define the methods for achieving the company's objectives
D) To assess the company’s growth mindset
E) To help managers evaluate performance
E) To help managers evaluate performance
This business environment is influenced by government regulations, international trade laws, and compliance.
A) Domestic business environment
B) Political-legal environment
C) Global business environment
D) Economic environment
E) Technological environment
B) Political-legal environment
Companies that actively seek ways to contribute to the well-being of society because they genuinely want to improve social welfare are taking which social responsibility stance?
A) Defensive
B) Social accommodation
C) Accommodative
D) Proactive
E) Obstructionist
D) Proactive
What is a key disadvantage of sole proprietorships?
A) High start-up costs
B) Limited work flexibility
C) Short-term shareholder focus
D) Unlimited liability
E) Complex tax structure
D) Unlimited liability
What’s a long-term effect of heavy reliance on tariffs?
A) Stronger domestic industries
B) Higher prices, less efficiency
C) Lower inflation
D) More foreign market access
E) Reduced trade revenue
B) Higher prices, less efficiency
How can senior leaders help managers handle emergency situations?
A) Strong mission statement
B) Empowering decision-making
C) Crisis management strategies
D) Ongoing training
E) Contingency planning
C) Crisis management strategies