Archives: Quiz

Personal liability of the owners for any business debts is an important consideration when selecting an appropriate form of business organization. The Securities and Exchange Commission is instrumental in the development of financial accounting standards. TRUE When a corporation issues […]

Target cost equals target price plus profit margin. The entity principle states that the affairs of the owners are not part of the financial operations of a business entity and should be separated. TRUE Total quality management centers on new […]

The primary job of the Chief Technology Officer of the United States is to: A. build an integrated technology policy especially designed to meet the needs of the national government. B. support scientific research, to stimulate the national economy, and […]

The Model Rules of Professional Conduct for attorneys was established by: A. the American Bar Association. B. the National Conference of Commissioners on Uniform State Laws. C. the American Lawyer’s Cooperative System. D. Congress. If Phil finds an iPhone in […]

When an assignment occurs, the assignee assumes the contractual obligations previously held by the assignor. An e-check is sometimes called an electronic check transfer. FALSE Some banks have arrangements for payment by e-check (sometimes called electronic check conversion), which is […]

If a law enforcement officer induces a law-abiding citizen to commit a crime that he or she would not otherwise commit, entrapment may be used as a defense. Robin orders merchandise from Internet Enterprises. If no delivery date is promised, […]

Tender of payment requires the buyer of goods to offer legal tender only. In a registered limited liability partnership (LLP), each partner is personally liable and may be sued in a separate action or in a joint action. FALSE A […]

United States Generals Groves and LeMay advocated preventative war against the Soviet Union. A business receiving money by electronic transfer is known as the beneficiary. TRUE Under the UCC, a business that orders money to be sent electronically is called […]

Laura promises to pay Stuart “a reasonable amount” for repairing her car. Stuart sends Laura a $500 invoice and Laura sends Stuart a $350 check marked “payment in full”. There is an accord and satisfaction created if Stuart cashes the […]

Chapter 7 bankruptcy petitions are filed in state district courts that are within the federal court structure. Ted, one of the consultants in a two-man business, cannot take life insurance on his business partner, Brendan, because he does not have […]

Expedited credit can be claimed by consumers who have suffered losses related to substitution checks. A product in a defective condition is unreasonably dangerous to the user, consumer, or property. TRUE Anyone who produces or sells a product in defective […]

The annual percentage rate (APR) is calculated by consumers with tables provided by the Federal Trade Commission. Brink Hospital employs emergency room physicians who are independent contractors. Brink may be liable for their torts under the doctrine of apparent authority. […]

Sue contracts to purchase Sanyo’s auto. Only Sue needs to make a tender of performance. In a Chapter 7 bankruptcy filing, the debtor is referred to as a debtor in possession. FALSE A debtor is referred to as a debtor […]

In federal diversity cases, corporations are only considered a citizen of the state in which they have their principal place of business. If Alfredo, a small business owner, engages in cost-benefit thinking, he will generally only focus on the benefits […]

A furniture store that puts up its inventory as collateral for a loan will grant the lender a floating lien. Garcia purchases a used shotgun from Andy, who had purchased it from Jane, who purchased it from Maria, who had […]

A compilation of all the statutes of a particular state or the federal government is known as a code. A security agreement can either be oral or in writing. FALSE A security agreement must be in writing, be signed by […]

The Equal Credit Opportunity Act makes it illegal for businesses to discriminate against credit applicants receiving public assistance income. The Daubert v. Merrell Dow Pharmaceuticals case involved a question of expert testimony and the causation of the plaintiff’s injuries. TRUE […]

In an involuntary bankruptcy filing, the petition itself becomes the order for relief and is effective the moment it is filed with the court. Patricia mistakenly believes she could personally hold a lottery to raise money for her favorite charity. […]

Ethical theories are all based on the assumption that people want to live ethical lives. A durable power of attorney preserves the authority of an agent when the principal becomes incapacitated. TRUE Generally, an agency relationship is terminated upon the […]

A civilization with a recognized central state is generally less stable and more war-like than one without a recognized central state. A gift is legally considered the same as a sale, since title passes in both a gift and a […]

The manager of a manager-run LLC is protected by the business judgment rule, but not the fairness rule. When two or more persons own real property as tenants in common, each person owns an undivided share of the whole property. […]

Under the UPA, a tenancy in partnership means a deceased partner’s interest in real property held by the partnership passed to the partner’s surviving heirs. When the insurance company gives up one of its rights to help the insured, the […]

Fish not yet caught by a commercial fisher are called future goods. Lending one’s car to a friend would be an example of a mutual benefit bailment. FALSE When personal property is transferred to a bailee with the intent that […]

A credit cardholder is liable for all unauthorized charges if he or she does not report the unauthorized charges within twenty days of receiving a statement on which the unauthorized charges appear. Carl is tall and looks like he is […]

As their overseas operations have increased in importance, companies have felt the need to: A. eliminate the international division. B. establish worldwide organizations based on product, function, region, or customer classes at the top level. C. lower production costs by […]

According to the text, which of the following is true? A. Zara’s competitive advantage comes from its stylish fashion design. B. Zara’s supply chain management processes are combined with a strategy of limited availability of its merchandise. C. Two of […]

The United States avoids extraterritorial application of its laws. The law of one price states that in an efficient market, like products will never have like prices. FALSE The law of one price suggests that in efficient markets, like products […]

In FAS (free alongside ship, loading port) the buyer pays all the transportation and delivery expenses up to the ship’s side and clears the goods for export. Risk passes at the ship’s rail. The U.S. enforcement of Equal Employment Opportunity […]

Countries in which strong competition already exists are eliminated from consideration by most managers. The more familiar, or the more similar, conditions in the host country are perceived to be, the more likely headquarters is to rely on subsidiary management. […]

When a company’s primary strategic orientation is multidomestic, an ethnocentric orientation is particularly appropriate. Advertisers have followed glocalization to reduce costs, enabling them to develop a common strategy for large regions. TRUE As stated directly in the text. CeBIT is […]

For the conservative international firm, there is no reason to move money other than the repatriation of profits. If a firm decides to set up its own export operation rather than do indirect exporting, the firm must obtain overseas distribution. […]

Although engineers are required for the maintenance of specialized machinery, only highly-skilled people are needed to attend the machines. Gift-giving across cultures is a simple kindness and need not be complicated with attempts to understand. The act of generosity says […]

The EU does not apply its competition policy beyond the EU. Michael Porter claims that demand conditions, factor conditions, related and supporting industries, and firm strategy, structure, and rivalry, rather than government and chance, are factors that affect national competitiveness. […]

Some of the culture dimensions that are involved in change are tolerance of ambiguity and power distance. Incoterms are 11 trade terms that describe the responsibilities of the buyer and seller in international trade. TRUE As stated directly in the […]

The product global corporate form eliminates the duplication of product and area specialists. The local manufacturing organization is usually integrated vertically to a greater extent than the parent company is. FALSE The local manufacturing organization is rarely integrated vertically to […]

Critics of large global firms compare these firms’ sales with nations’ total sales to illustrate the tremendous size of these firms. U.S. ocean shipping companies are benefiting from U.S. government subsidies. TRUE This is the case, and it is an […]

The traditional functions of purchasing, such as supplier determination, analysis, and selection, have to be accomplished before the actual purchasing via e-procurement. The effectiveness of supply chain management efforts is strongly influenced by how a company manages the interface of […]

Accounting is an objective, fact-based discipline and is not influenced by culture. Swap contracts exchange foreign currency debt for another liability in the home currency. FALSE Swaps are agreements to exchange currencies at specified rates and times, and they can […]

Trompenaars’ achievement vs. ascription dimension describes social status based on what one does or who one is. The United States is a culture in which people build who they are through work, so its social status tends to be based […]

Leadership traits may vary some by culture, but underneath they build on the idea that all people want to be led and directed. A confirmed letter of credit guarantees payment to the seller. TRUE As stated directly in the text. […]

Currency exchange rate movements are well understood by economists and can be accurately forecast, which eliminates risk for the international seller operating with exposure outside the home currency. The matrix overlay organizational form attempts to eliminate some of the problems […]

There is a growing tendency for firms to use strategic planners to devise the corporate plan, which is then handed to operations people for execution. An example of an informal, cognitive institution would be the celebration of Halloween. TRUE The […]

The International Finance Corporation (IFC) acts as an investment banker, arranging private risk ventures in developing countries. The GLED model is used to develop management skills. FALSE GLED is a global leadership expertise development model. Managers may consider entering a […]

Firms may choose to issue stock in foreign markets in order to tap into a broader investor pool. The United States has only about 10 percent of the world’s population, so the vast proportion of most companies’ potential customers are […]

A fronting loan is used when the firm does not have the collateral or reputation to borrow in a foreign environment. Low-context cultures such as the United States have explicit communication patterns. TRUE Low-context cultures are explicit in their communication. […]

In the year 2008, twice as much FDI invested in the United States was spent in acquiring established businesses than in setting up new ones. Globalization increases the complexity of the external but not the internal context of the company. […]

Historically, foreign direct investment has followed foreign trade, and one reason is that foreign trade is typically less costly and less risky than making a direct investment into foreign markets. Failure rates for expatriate assignments have been reported to range […]

Pricing that is established for transactions between members of the enterprise is called transfer pricing. When managers are assigned and move abroad with their families, the most difficult adjustments are frequently for the children. TRUE As stated directly in the […]

The three main team leadership activities in any environment are establishing the team, coaching team members, and setting team norms. Supply chains are an integral part of global quality and cost management initiatives, since a typical company’s supply chain costs […]

Historically, approximately two-thirds of the value of corporate investments made in the United States from abroad has been spent to acquire going companies rather than to establish new ones. Currencies float because they are allowed to make their own adjustments […]