BUSN 101 TEST QUESTIONS WITH
ALL CORRECT ANSWERS
What is considered when calculating a country's balance of payments? - Answer-
military expenditures
Licensing is a popular strategy because - Answer-the licensee has incentive to work
hard and succeed because they have borne the cost.
An important principle for firms desiring to export is - Answer-find a need in the global
market and fill it.
When Anheuser-Busch InBev sells Budweiser beer made in St. Louis, MO, to Germany,
the sales of its product would be classified as a - Answer-U.S. export.
The __________ is the difference between money flowing into a country from exports,
and money leaving the country for imports, plus money flows coming from other factors
such as tourism, foreign aid, military expenditures, and foreign investment. - Answer-
balance of payments
__________ is the practice of selling a product in foreign countries for a lower price
than the good is sold in the producing country. - Answer-Dumping
What is included when calculating a country's balance of payments? - Answer-foreign
aid
In volume of exports, the two leading nations are - Answer-the United States and China.
The __________ is the total value of a nation's exports compared to its imports
measured over a specific period of time. - Answer-balance of trade
When a company's strategy is __________, the firm makes arrangements for a foreign
manufacturer to produce the product. The domestic company's label and/or trademark
are attached to the completed product. - Answer-contract manufacturing
Which statement is the best description of comparative advantage? - Answer-Each
nation should produce those goods that it can produce more efficiently and effectively
than other nations, and buy the goods it cannot produce as efficiently as the nations that
can.
, Companies may have several reasons for creating joint ventures. Which statement is
one reason why firms may decide to form a joint venture? - Answer-They will save time
to market if they pool their technological know-how.
Determining what is involved for a firm to be socially responsible - Answer-varies, and
has several dimensions.
It is accurate to state that ethical dilemmas in business - Answer-often force us to
choose between equally unsatisfactory alternatives.
Following an ethics-based approach to decision making will normally lead to lower -
Answer-employee turnover.
What policies tend to favor business? - Answer-minimal government spending because
it keeps taxes to a minimum
Employers provide tools and technology for their employees in order to - Answer-
improve their efficiency and productivity.
Efficiency means - Answer-producing goods and services using the least amount of
resources.
When we compare the factors of production in wealthy versus poor nations, we find -
Answer-wealthy nations have knowledge and entrepreneurial opportunities, while poor
nations are often lacking in these areas. (The factors of production known as knowledge
and entrepreneurship contribute toward a nation's opportunity to innovate and create
new products and services. Entrepreneurs use their knowledge to grow their businesses
and increase wealth.)
Often in business the greater the risk, the - Answer-greater the potential reward.
Starting a business always involves - Answer-risk.
Public schools, charities, and government agencies generally - Answer-do not seek to
earn a profit. (Although schools, charities, and government agencies often provide
goods and services, they do not seek a profit. Therefore, they are nonprofit
organizations rather than businesses.)
__________ refers to the amount of output generated with a given amount of input, e.g.,
the number of pizzas produced per worker per hour. - Answer-Productivity
__________ means producing items using the least amount of resources. - Answer-
Efficiency
ALL CORRECT ANSWERS
What is considered when calculating a country's balance of payments? - Answer-
military expenditures
Licensing is a popular strategy because - Answer-the licensee has incentive to work
hard and succeed because they have borne the cost.
An important principle for firms desiring to export is - Answer-find a need in the global
market and fill it.
When Anheuser-Busch InBev sells Budweiser beer made in St. Louis, MO, to Germany,
the sales of its product would be classified as a - Answer-U.S. export.
The __________ is the difference between money flowing into a country from exports,
and money leaving the country for imports, plus money flows coming from other factors
such as tourism, foreign aid, military expenditures, and foreign investment. - Answer-
balance of payments
__________ is the practice of selling a product in foreign countries for a lower price
than the good is sold in the producing country. - Answer-Dumping
What is included when calculating a country's balance of payments? - Answer-foreign
aid
In volume of exports, the two leading nations are - Answer-the United States and China.
The __________ is the total value of a nation's exports compared to its imports
measured over a specific period of time. - Answer-balance of trade
When a company's strategy is __________, the firm makes arrangements for a foreign
manufacturer to produce the product. The domestic company's label and/or trademark
are attached to the completed product. - Answer-contract manufacturing
Which statement is the best description of comparative advantage? - Answer-Each
nation should produce those goods that it can produce more efficiently and effectively
than other nations, and buy the goods it cannot produce as efficiently as the nations that
can.
, Companies may have several reasons for creating joint ventures. Which statement is
one reason why firms may decide to form a joint venture? - Answer-They will save time
to market if they pool their technological know-how.
Determining what is involved for a firm to be socially responsible - Answer-varies, and
has several dimensions.
It is accurate to state that ethical dilemmas in business - Answer-often force us to
choose between equally unsatisfactory alternatives.
Following an ethics-based approach to decision making will normally lead to lower -
Answer-employee turnover.
What policies tend to favor business? - Answer-minimal government spending because
it keeps taxes to a minimum
Employers provide tools and technology for their employees in order to - Answer-
improve their efficiency and productivity.
Efficiency means - Answer-producing goods and services using the least amount of
resources.
When we compare the factors of production in wealthy versus poor nations, we find -
Answer-wealthy nations have knowledge and entrepreneurial opportunities, while poor
nations are often lacking in these areas. (The factors of production known as knowledge
and entrepreneurship contribute toward a nation's opportunity to innovate and create
new products and services. Entrepreneurs use their knowledge to grow their businesses
and increase wealth.)
Often in business the greater the risk, the - Answer-greater the potential reward.
Starting a business always involves - Answer-risk.
Public schools, charities, and government agencies generally - Answer-do not seek to
earn a profit. (Although schools, charities, and government agencies often provide
goods and services, they do not seek a profit. Therefore, they are nonprofit
organizations rather than businesses.)
__________ refers to the amount of output generated with a given amount of input, e.g.,
the number of pizzas produced per worker per hour. - Answer-Productivity
__________ means producing items using the least amount of resources. - Answer-
Efficiency
