Archives: Quiz

regional economic integration involves agreements among countries in a geographic region to reduce, and ultimately remove, tariff and nontariff barriers to the free flow of goods, services, and factors of production between each other. with an interest-bearing note, the amount […]

Doing business in Russia involves risks because the country has shown signs of shifting back toward greater state involvement in economic activity and authoritarian government. the strategy, operations, and organization of a firm must all be consistent with each other […]

concentration of production is not favored when important exchange rates are expected to remain relatively stable. tariffs on industrial goods remain higher than tariffs on services. Answer: false tariffs on services remain higher than on industrial goods. the average tariff […]

The budget is the main instrument of financial control in an organization. the costs and risks associated with doing business in a foreign country are typically high in an economically advanced and politically stable democratic nation. Answer: false the costs […]

a chinese firm borrows 1 million u.s. dollars from an american bank. the cost of this loan will be less if u.s. dollar appreciates against the chinese currency. according to the infant industry argument, many developing countries have a potential […]

support activities are always less important than the primary activities in achieving a competitive advantage. according to rawls, inequalities are unjust even if the system that produces inequalities is to the advantage of everyone. Answer: false rawls accepts that inequalities […]

buying a product from external vendors is highly appropriate when a firm intends to protect proprietary technology. in mixed economies, in certain sectors the state set prices, owned businesses, limited private enterprise, restricted investment by foreigners, and restricted international trade. […]

according to porter, the way to create superior value is to drive down the cost structure of the business and/or differentiate the product in some way so that consumers value it more. payroll taxes include the employers share of social […]

expatriate failure refers to a manager’s failure to understand host-country cultural norms and values, leading to ineffective work. if a country’s economy is to sustain long-run economic growth, the business environment must be conducive to innovations and entrepreneurial activity. Answer: […]

domestic currency deposits are regulated in most industrialized countries. markets can be segmented in only one way: by socio-cultural factors. Answer: false markets can be segmented in numerous ways: by geography, demography (sex, age, income, race, education level, etc.), sociocultural […]

upon meeting a foreign business executive, a japanese executive will hold his business card in both hands and bow while presenting the card to the foreigner. this is an example of ritual behavior. the great depression had roots in the […]

an investor purchases the right to receive a specified fixed stream of income from the corporation when he purchases a share of stock. Gold was declared as the formal reserve asset in the Jamaica agreement of 1976. Answer: FALSE In […]

in a classic matrix structure, individual managers belong to two hierarchies (a divisional hierarchy and an area hierarchy) and have two bosses (a divisional boss and an area boss). an importer obtains a letter of credit from a bank in […]

According to supporters of free trade, as countries get richer they commit greater violation of environmental and labor regulations. the cold war was a war between collectivism and individualism. Answer: true the cold war, in many respects, was a war […]

arbitrage opportunities abound in the foreign exchange markets and they tend to be available for long periods of time. product liability can be much lower if a product does not conform to required safety standards. Answer: false product liability involves […]

Capital budgeting is the technique financial managers use to try to quantify the benefits, costs, and risks of an investment. resources always move easily from one economic activity to another. Answer: false resources do not always move easily from one […]

the process of identifying distinct groups of consumers whose purchasing behavior differs from others in important ways is known as consumer behavior analysis. to establish moral intent, managers need to stand in the shoes of a stakeholder and ask how […]

A police officer may not secure drugs that have been abandoned or that are in plain view if a warrant has not been obtained. Contracts entered by minors are voidable contracts. Answer: True Feedback: The most common voidable contracts are […]

The National Pollutant Discharge Elimination System (NPDES) requires all dischargers to secure a permit, most often from the Environmental Protection Agency, before pouring effluent into a navigable stream. The European Union has negotiated certain safe harbors for U.S. companies not […]

According to Milton Friedman, the firm that maximizes its profits is not necessarily maximizing its contribution to the society. The Internet delivers private communications between particular users, much as a phone system. Answer: True Feedback: The Internet delivers private communications […]

Articles IV and VI, as well as the 14th Amendment, address the relationship between the federal government and the states. The bulk of the environmental laws and regulations in the United States were drafted to address compartmentalized and discrete issues. […]

Chapter 11 of the Bankruptcy Act keeps creditors from a debtor’s assets while the debtor, under the supervision of the court, works out a financial reorganization plan and continues to pay creditors. Based on Julia’s credit history, TrueMoney Bank denies […]

Jurisdiction refers to a court’s power and authority to hear a dispute. Under the Fair Credit Billing Act, a creditor must acknowledge receipt of a consumer complaint regarding an erroneous bill within 90 days. Answer: False Feedback: The Fair Credit […]

Section 8(b) of the National Labor Relations Act permits a labor organization to try to make an employer compensate workers for services not performed. Labor unions can lawfully establish political action committees to solicit and disburse voluntary campaign contributions. Answer: […]

Supreme Court justices are appointed by the Senate. The Internet is increasing national boundaries. Answer: False Feedback: The Internet breaks down national boundaries and rules to allow free interchange of communications, ideas, goods, and services around the world. Over 2.4 […]

Article III establishes the court system. Chapter 04 The American Legal System Answer: True/False Questions Pushing managers to adopt a bigger and broader conception of social responsibility will reduce the chances of establishing a sustainable, enduring global community where resources […]

Congressional authority is formally limited to certain enumerated powers. The Sherman Act applies to the conduct of American business abroad when that business has a direct effect on American commerce. Answer: True Feedback: The Sherman Act applies to the conduct […]

Employers who have contracts of $100,000 or more with the federal government or receive aid from the government must provide drug-free awareness programs for their employees. To the deontologist, the end is primary and that end or result is the […]

The cap-and-trade program leads to the use of the least cost-effective pollution reduction methods to reach the desired environmental goals. A seller may resist a Robinson-Patman charge by establishing that the price differential is attributable to cost savings. Answer: True […]

Corporations incur the disadvantage of double taxation. One of the major objectives of the Fair Labor Standards Act is the establishment of a minimum wage that provides at least the foundation for a modest standard of living for employees. Answer: […]

A number of states forbid random drug testing or limit it to safety-sensitive situations. The conglomerate category includes all mergers that are neither horizontal nor vertical. Answer: True Feedback: A conglomerate merger involves firms dealing in unrelated products. Thus, the […]

The National Labor Relations Act recently changed labor laws related to closed-shop arrangements, permitting labor unions to pursue closed-shop arrangements. The Landrum-Griffin Act has regulated the manner in which unions represent employees in the collective bargaining process. Answer: True Feedback: […]

Social Accountability Accreditation Services accredits companies that meet the Social Accountability 8000 standards in the area of child labor. According to the contributory negligence defense, a plaintiff’s recovery is reduced by a percentage equal to the percentage of the plaintiff’s […]

In an implied-in-fact contract, the contract is inferred on the basis of the behavior of the parties. Moral identity involves the degree to which moral concerns are central to our sense of self. Answer: True Feedback: Early evidence suggests that […]

Although shareholders are the owners of the corporation, control rests with the board. In 2000, Microsoft was charged with violating federal antitrust laws by maintaining market dominance through anticompetitive means. Answer: True Feedback: A federal district court in 2000 and […]

A mere interest in the problem at hand is sufficient to grant standing to sue. With the prior consent by one of the parties to the communication, an employer may lawfully monitor an employee phone call. Answer: True Feedback: The […]

Sole proprietorships are mutual agencies. Arbitration is never used in international trade disputes. Answer: False Feedback: In light of the difficulty of litigation between parties of diverse nationalities and the desire for more certainty and expediency in business transactions, parties […]

One of the primary tasks of the National Labor Relations Board (NLRB) is conducting elections for union representation within the chosen bargaining unit. The Family and Medical Leave Act entitles eligible employees up to 15 weeks of paid leave for […]

The perception of business misdeeds or indifference, in conjunction with the growing influence of business values throughout American life, has led in recent decades to the development of the doctrine of corporate social responsibility. The Equal Employment Opportunity Commission (EEOC) […]

The greater the Herfindahl-Hirschman Index (HHI), the more likely the government will be concerned about the merger. A cash balance plan is a defined benefit plan that acts somewhat like a defined contribution plan. Answer: True Feedback: A prominent hybrid […]

Employment quotas and affirmative action justified broadly by ‘societal discrimination” are constitutional. Maximizing right rather than good is the teleological standard. Answer: False Feedback: Maximizing right rather than good is the deontological standard. The deontologist might well refuse to lie, […]

Distributors purchase goods from a seller, then negotiate sales to foreign buyers on their own behalf. Direct subsidies in the nature of rebates were used in the 2009 federal Cash for Clunkers program. Answer: True Feedback: Direct subsidies in the […]

Contracts for services are governed by the Uniform Commercial Code (UCC). Workers’ compensation provides a form of no-fault protection in the workplace. Answer: True Feedback: In general, injuries, illnesses, and deaths are compensable where the harm (1) arose out of […]

Private clubs are not exempt from Title VII of the Civil Rights Act of 1964. In a limited liability company, the owners are referred to as interest holders. Answer: False Feedback: Limited liability companies are entities in which the owners […]

Generally, when a subsidiary is sued, the parent company is also liable. Regulatory takings normally do not require government compensation. Answer: True Feedback: Regulatory takings, whether temporary or permanent, normally do not require government compensation because doing so would severely […]

The genetic variability produced by meiosis is A)rare. B)male dominant. C)adaptive. D)female dominant. Johann’s father and grandfather were fishermen, and so he has decided to be a fisherman, too. Which identity status characterizes Johann? A)identity achievement B)identity foreclosure C)identity moratorium […]

In later pregnancy, a diabetic mother’s excess blood glucose causes the fetus to A)lose weight. B)grow unusually large. C)secrete abnormally low levels of insulin. D)develop chromosomal abnormalities. Researchers using the violation-of-expectation method may use __________ by exposing babies to a […]

As vocabulary expands and pronunciation improves, A)underextensions increase. B)overextensions gradually decline. C)overextensions increase. D)underextensions replace overextensions. Children who get along well with agemates tend to A)request an explanation when they do not understand a peer’s behavior. B)attend selectively to social […]

Eight-year-old Lin, a Chinese child, is likely to A)say that telling the truth is always good. B)say that telling a lie is always bad. C)rate lying favorably when the intention is modesty. D)favor lying to support the individual at the […]

Which of the following statements about morality is true? A)Adolescents and adults mention relying on intuition as their most frequent strategy for resolving moral dilemmas. B)Adolescents rarely report feeling confused or torn by temptation when confronting real-life dilemmas. C)Situational factors […]