Principles of Business - Objective 5.03

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

• be a failure.

• prosper.

The owner of a small company decides to stock a new product. Which business activity should the owner use to inform potential customers about the new product?

• production

• marketing

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 merging with a foreign business that can sell your products.

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

• change is an opportunity.

• diversification is the key.

Business ethics involve considering issues about what is:

• legal and illegal.

• right and wrong.

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

• expand to new, untapped markets.

• subsidize developing countries.

Which is an example of ethical business behavior?

• testing products to ensure they are safe to use

• accepting a bribe from a prominent customer

One reason why many small businesses develop an organizational design that requires a board of directors is because a board usually:

• provides experience that increases the business's credibility.

• helps with the day-to-day operations of the business.

Which is a factor that affects the business environment?

• information management

• industry competition

Which is an example of an economic factor that affects the business environment?

• management style

• business cycle