POB 5.02/5.03 Review

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

• become solvent. 
• prosper
• grow. 
• be a failure.

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?

• finance 
• marketing
• management
• production 

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• sell obsolete, outdated products.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.

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.

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. 

The two main divisions of the trade industry are: 

• manufacturers and wholesalers. 
• wholesalers and retailers.
• producers and retailers.
• wholesalers and producers. 

Which affects the business environment because it provides the most options for consumers? 

• command economy
• international sanctions 
• monopoly
• global competition 

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

• injunction.
• authority. 
• initiative.
• attrition. 

Business ethics involve considering issues about what is: 

• positive and negative.
• legal and illegal.
• safe and unsafe.
• right and wrong.

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.