5.02, 5.03, 5.04, 5.05 Review

Which is an example of ethical business behavior?

• Testing products to ensure they are safe to use
• Accepting a bribe from a prominent customer
• Using advertisements to confuse customers
• Disclosing partial information about products

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

• Business cycle
• Employee morale
• Management style
• Long-term goals

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.
• Assumes all legal responsibility for the business's actions.
• Helps with the day-to-day operations of the business.
• Evaluates the performance of the business's employees.

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

The two main divisions of the trade industry are:

• Manufacturers and wholesalers.
• Wholesalers and retailers.
• Producers and retailers.
• Wholesalers and producers.

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.

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

• Command economy
• International sanctions
• Monopoly
• Global competition

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• Sell obsolete, outdated products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

Which is a factor that affects the business environment?

• Industry competition
• Staff organization
• Information management
• Conflict negotiation