A: satisfy customer needs.
B: ensure operating efficiency.
C: facilitate manufacturing.
D: enable healthy competition.
E: manage the tasks involved in staffing
A: They are firms that do not provide goods or services.
B: They are startup companies that have not yet generated any profits.
C: They engage in management activities to help reach their goals.
D: They do not engage in fundraising as their aim is not to generate profits.
E: They do not have a management structure like that of for-profit organizations.
A: The president of a company, who is not the owner, has to put up resources—money or credit—to start a business.
B: People and forces beyond an organization’s control do not have an impact on the daily operations of businesses.
C: A nonprofit organization does not use promotional strategies as it is not concerned with profits.
D: Employees have the most to lose if a business fails to make a profit.
E: Managers control the tasks required to carry out the work of a company or nonprofit organization.
A: Being socially responsible is considered a resource for a firm.
B: Good reputation for quality services does not constitute a resource.
C: Human resources refer to the products that are made by people.
D: The funds used to acquire land can be classified as natural resources.
E: Intangible resources are those that do not provide a competitive advantage.
A: capital resources
B: human resources
C: financial resources
D: natural resources
E: intangible resources
A- In practice, they have a high standard of living.
B- In practice, they seldom face shortages in consumer goods.
C- On paper, they appear to be efficient and equitable.
D- In theory, they produce a huge gap between rich and poor.
E- In practice, they regulate prices of goods based on supply and demand.
A- There is only private ownership of business.
B- There is only government ownership of all factors of production.
C- The government owns and operates basic industries.
D- The government disregards basic individual freedoms.
E- The citizens cannot own or operate businesses.
A- Communism limits central government planning.
B- Communism disregards Karl Marx’s ideal.
C- Communism guarantees high standards of living.
D- Communism is declining and its future as an economic system is uncertain.
E- Communism allows consumers to have a wide choice of goods and services.
A- Relations with owners
B- Relations with competitors
C- Supplier relations
D- Consumer relations
E- Employee relations
B: a bribe.
D: an embargo.
E: a social responsibility.
A: All business actions deemed unethical by society are necessarily illegal.
B: Business ethics and personal ethics are synonymous.
C: The acceptability of behavior in business is determined by not only an organization but also its stakeholders.
D: Business ethics is independent of an organizational culture.
E: Profit in business is the only glue that holds relationships together.
A- economic responsibility.
B- legal responsibility.
C- ethical responsibility.
D- voluntary responsibility.
E- political responsibility.
A- overly aggressive business objectives.
B- environmental marketing.
C- a high rate of employee turnover.
D- globalization and technological advancement.
E- the presence of a code of ethics.
A- The right to own property
B- The right to sell assets
C- The right to minimum prices
D- The right to safety
E- The right to vote
A- Being a good corporate citizen
B- Earning profits
C- Doing what is right
D- Obeying the law
E- Saving the environment
A- Legal and economic concerns have long been acknowledged in business, but voluntary and ethical issues are more recent concerns.
B- Organizations can fulfill their legal responsibilities only after they have fulfilled their voluntary responsibilities.
C- Political responsibilities of a firm are additional activities that may not be required but which promote human welfare or goodwill.
D- Complying with the law is the final step in the pyramid of social responsibility.
E- Being profitable is not a social responsibility of businesses.
A- capital gain
D- ad valorem tariff
A- It would make trips to the United States more expensive for foreign tourists.
B- It would lower the cost of American goods abroad.
C- It would discourage the sale of domestic goods.
D- It would reduce the cost of purchasing goods from abroad.
E- It would make trips to other countries less expensive for American tourists.
A- customs union
B- trade bloc
A- A poison pill
B- A shark repellent
C- A white knight
D- A class action
E- A leveraged buyout
A- Sole proprietorships
C- General partnerships
D- Joint ventures
E- Private corporations
A- poison pill
B- shark repellent
C- white knight
D- tender offer
E- leveraged buyout
A- Financial Accounting Standards Board.
B- Federal Trade Commission.
C- National Advisory Committee on Accounting Standards.
D- Securities and Exchange Commission.
E- Warren Commission.
A- companies operating at different but related levels of an industry merge in a horizontal merger, whereas firms that make and sell similar products to the same customers merge in a vertical merger.
B- two firms in unrelated industries merge in a horizontal merger, whereas firms that make and sell similar products to the same customers merge in a vertical merger.
C- companies operating at different but related levels of an industry merge in a horizontal merger, whereas two firms in unrelated industries merge in a vertical merger.
D- one corporation merges with one of its customers or suppliers in a horizontal merger, whereas a firm merges with its direct competitor in a vertical merger.
E- firms that make and sell similar products to the same customers merge in a horizontal merger, whereas companies operating at different but related levels of an industry merge in a vertical merger.
A- Sole proprietorships
B- Joint ventures
E- General partnerships
A- A vertical integration
B- An equity carve-out
C- A conglomerate diversification
D- A divestment
E- A horizontal merger
A- Unlike retailing, high technology as an industry is not suitable for small businesses and entrepreneurs.
B- Small businesses do not provide any employment opportunities to high-tech workers.
C- High-technology businesses have low initial startup costs.
D- High-technology businesses require greater capital than other small businesses.
E- Small-business owners in the high-technology industry find it impossible to focus on specific groups of consumers.
A- Reinvesting a small portion of profits back into a business
B- Using personal assets like savings in a bank to start a business
C- Obtaining a mortgage by providing some personal property as collateral
D- Selling stocks of a company to friends and relatives
E- Selling ownership interest or stock to people interested in funding a business idea
A- trade creditor
C- category captain
E- venture capitalist
A- debt financier
B- contract manufacturer
C- category captain
D- trade creditor
E- venture capitalist