Chapter 1
Which of the following is an example of a tangible product?
A) an automobile
B) a movie
C) a haircut
D) a music concert
E) a business conference
A) an automobile
T/F: While ethical behavior can enhance a company's reputation, it often has a negative effect on the company's financial performance.
False
T/F: A merger occurs when two companies combine to form a new company.
T\rue
T/F: Small businesses, by their very nature, are small and therefore do not contribute significantly to job creation.
false
T/F: Mount Everest is located in India.
False (It’s on the border between Nepal and China)
Hamad works for a custom furniture manufacturer. His job is to oversee the process of taking raw materials—lumber, fabric, and metal components—and ensure that they are transformed to the customer's exact specifications. Hamad's job falls under the business activity known as:
A) operations.
B) advertising.
C) sales promotion.
D) finance.
E) marketing.
A) operations.
The principles and standards that determine acceptable conduct in business organizations are referred to as ____.
Business Ethics
T/F: An acquisition occurs when one company purchases another company by buying most of its stock.
true
Abdulaziz runs Night Dream, his own party planning company. He has built a good reputation for organizing weddings and corporate events and his business has grown. He recently moved his business from his home to an office located in a corporate building and has increased his staff to 40 employees. Abdulaziz's company can be categorized as a
A) multinational corporation.
B) limited liability company.
C) franchise.
D) micropreneurship.
E) small business.
E) small business.
Which country has the most islands in the world?
A) Indonesia
B) Sweden
C) Philippines
D) Japan
B) Sweden
Amhmed hired an attorney to help him draft a purchase and sale agreement for his new home. The home is an example of a product that is a(n)
A) idea.
B) service.
C) tangible item.
D) process.
E) intangible good.
C) tangible item.
All of the following are common areas of misconduct observed in the workplace EXCEPT:
A) misuse of company time.
B) abusive and intimidating behavior.
C) separation of personal financial interests from business dealings.
D) misuse of company resources.
E) conflict of interest.
C) separation of personal financial interests from business dealings.
Which form of business ownership is the easiest to establish?
sole proprietorships
A person who is involved in the process of creating and managing a business to achieve his or her desired objectives is engaged in _______.
entrepreneurship
Which animal can sleep for up to three years if conditions are too dry?
A) Snail
B) Frog
C) Lizard
D) Turtle
A) Snail
________ describe(s) how a particular society distributes its resources to produce goods and services.
B) An economic system
_____ is an identifiable problem, situation, or opportunity that requires a person or organization to choose from among several actions that may be evaluated as ethical or unethical.
Ethical issue/ ethical delimma
Hamad is an independent contractor who prepares architectural plans for building contractors; however, he is not an employee of any of the contractors for which he works. Hamad is a(n)
A) corporate contractor.
B) sole proprietor.
C) limited partner.
D) general partner.
E) independent partner.
B) sole proprietor.
Take One Inc. is a small apparel store started by an aspiring designer. The store needs to compete against larger, well-established multinational brands. What strategy will most help Take One Inc. avoid competition from larger firms?
A) Set up multiple levels of management like the larger firms.
B) Target large market segments that the competitors serve.
C) Expand the scale of production to enjoy greater economies of scale.
D) Start to work with customers only when the products are ready for sale.
E) Focus on and target small market niches or product needs.
E) Focus on and target small market niches or product needs.
Which celebrity holds the record for the most-followed person on Instagram (as of 2025)?
A) Taylor Swift
B) Cristiano Ronaldo
C) Selena Gomez
D) Kylie Jenner
B) Cristiano Ronaldo
What is true of product availability in a communist system?
A) Consumers have a wide choice of services but not goods.
B) Consumers have a limited choice of both goods and services.
C) Consumers have a wide choice of goods, but they are expensive.
D) Consumers have a limited choice of goods, but they are inexpensive.
B) Consumers have a limited choice of both goods and services.
Which of the following best exemplifies a company with a strong ethical culture?
A) The top management at Ahmed's company clearly communicates to all employees the ethical behavior expected of them.
B) Norah reports to two different supervisors—one who follows the company's ethics policy and one who makes exceptions to the rules. Nora is not sure who to follow.
C) Since the top management at Latifa's company feels they only hire ethical employees, they do not see the need for a formal, written ethics policy.
D) The middle-level managers at Khaled's company do not get direction from top management regarding ethical behavior, but they all try to do what is right.
A) The top management at Randy's company clearly communicates to all employees the ethical behavior expected of them.
A ________ is an association of two or more persons who carry on as co-owners of a business for profit.
partnership
List 3 difficulties faced by small business owners.
high stress levels
undercapitalization
inability to cope with growth
managerial incompetence
The _____ House in Kuwait City once served as the British Political Agency residence.
The Dickson House in Kuwait City once served as the British Political Agency residence and was home to Harold Dickson and his wife Violet.