POBF 5.03a Economics Fall 2019

A U.S. company would decide to offer its products in other countries as a reason to:

• subsidize developing countries.

• sell obsolete, outdated products.

• expand to new, untapped markets.

• provide jobs to people in other countries.

Businesses that successfully adapt to current market situations often realize that:

• cutting costs is important.

• more financing is necessary.

• diversification is the key.

• change is an opportunity.

Which situation would most likely indicate the need to adapt to changes in the business environment?

• The supply of materials used in manufacturing a product has

  decreased.

• The number of the business's competitors has decreased.

• The demand for the product is stable.

• The business has experienced little employee turnover during the past year.

If a business is not concerned about social responsibility, it is likely to:

• become solvent.

• prosper.

• grow.

• be a failure.

A small-business owner whose business is a sole proprietorship is planning to “go global.” What method for going global would be best to recommend to the small-business owner?

• Start by hiring an export management company.

• Start by building facilities in the countries of interest.

• Start by merging with a foreign business that can sell your products.

• Start by renting facilities in the countries of interest and hiring foreign employees.

Business ethics involve considering issues about what is:

• positive and negative.

• legal and illegal.

• safe and unsafe.

• right and wrong.

Three primary factors that affect the organizational structure of a business include interpersonal relationships, tasks, and:

• injunction.

• authority.

• initiative.

• attrition.

A group of individuals wants to open a museum that will display items from early settlers of the area. The group will charge just enough admission to pay the expenses of operating the museum. Will the museum be a business?

• No, the museum will not be considered a business.

• No, the museum will be a charitable institution.

• Yes, the museum will be a not-for-profit business.

• Yes, the museum will be a for-profit business.

Kim invests heavily in a marketing campaign to stimulate sales for her company. What type of management process is this an example of?

• competitive aggression

• innovative management

• organizational learning

• proactive management