P1- STUDY GUIDE

An ethical decision or action is one that is right according to some standard of behavior.

• True

• False

International business includes all business activities that involve exchanges across state boundaries.

• True

• False

The corporation, partnership, and sole proprietorship are the three most common forms of business ownership in the United States.

• True

• False

About 85 percent of all business firms in the United States are sole proprietorships.

• True

• False

The field of business ethics applies moral standards to business situations.

• True

• False

By definition, every country has a comparative advantage in some product.

• True

• False

Unlimited liability holds a sole proprietor personally responsible for all the debts of the business.

• True

• False

Relationships with customers and co-workers rarely create ethical problems.

• True

• False

Purchasing raw materials or products in other nations and bringing them into one's own country is known as importing.

• True

• False

A country has a favorable balance of trade if it imports more than it exports.

• True

• False