Business Mana Midterm

Which organization was developed to promote economic and cultural cooperation among Asian countries?

• ASEAN
• EU
• NAFTA
• OPEC

When a country exports more than it imports, which of the following is created?

• Experiencing a trade surplus.
• Experiencing a trade deficit.
• Maintaining a balance of trade.
• Not specializing according to comparative advantage.

The value of the U.S. dollar has declined when compared to the Euro. Which of the following is the likely outcome for U.S. firms who ship products to the European Union?

• Increased profits
• Decreased profits
• No change in profits
• No longer able to ship products

What is a difference between an international firm and a multinational firm?

• An international firm designs, produces, and markets products in many nations, while a multinational firm conducts a significant portion of its business in foreign countries.
• An international firm conducts a significant portion of its business in foreign countries, while a multinational firm designs, produces, and markets products in many nations.
• There is no difference between an international firm and a multinational firm.
• An international firm and a multinational firm are both domestic companies that do not operate in foreign countries.

The practice of using suppliers in foreign countries to perform business processes that were previously done in the United States is called

• offshoring
• onshoring
• outsourcing
• insourcing

Which of the following industry groups is the largest segment of small business enterprise?

• Services
• Retail trade
• Manufacturing
• Wholesale trade

Why is it difficult to compare relative job growth for different-sized businesses?

• Sourcing up-to-date employment figures is difficult.
• Many small businesses experience rapid unreported growth.
• Spheres of influence overlap between the small and big business sectors.
• Staff size of small businesses tends to change faster than staff size of big businesses.
• It is hard to determine the cutoff point at which a small business becomes a large business.

Which of the following can assist a small business and helps to determine standards based on industry?

• The U.S. Department of Commerce
• The Small Business Administration
• A franchise
• Venture capitalist
• The Small Business Development Center

Even though an investor is not interested in owning their own business, why do they need to understand entrepreneurship?

• To understand why someone would want to work so hard for a small return
• To determine the key characteristics of success
• To understand how to convert a great idea to a profitable idea
• To assess the market potential for up-and-coming businesses

In a small business, who determines prices for wholesalers and customers?

• Customers
• Franchise owners
• Market forces
• Small business administration