BA 110 Midterm Practice Test

Which of the following is not one of the updates to NAFTA found in the USMCA?

• It strengthens labor laws and provides for greater enforcement of them.

• It has significant dispute resolution systems.

• It includes funds to address environmental issues.

• It requires all three nations to re-ratify the agreement every ten years.

• It includes provisions related to digital technology and intellectual property.

The planning stage of a social responsibility program can involve outside consultants to help develop it.

• True

• False

The SBA has defined a small business as an independent business having fewer than 500 employees.

• True

• False

Which of the following is not one of the reasons Jala has for starting her own small business?

• She needed a job with flexibility to allow her to care for her children.

• She was unable to find a job.

• She wanted to capitalize on an opportunity she recognized.

• The opportunity arose.

• She wanted to supplement her family’s income.

Reducing costs and enabling employees to work more efficiently are at the core of all attempts to improve productivity.

• True

• False

Trading companies do not take title to products.

• True

• False

Which of the following is not an argument for imposing trade restrictions?

• To protect national security

• To protect strong domestic industries

• To protect new or weak domestic industries

• To protect the health of citizens

• To equalize a nation’s balance of payments

President Franklin D. Roosevelt declared that consumers are entitled to safety, to be informed, to choose, and to be heard.

• True

• False

A restriction on the amount of a particular foreign product that can be purchased or sold is called currency devaluation.

• True

• False

Lilliana is the assistant manager of a midsized logistics firm. She believes her manager, Jeff, has become carried away with supporting nonprofit organizations and encouraging employees to do community service. What argument would Lilliana most likely use to turn Jeff to her point of view?

• Social problems affect society in general, so it is important to protect our society.

• The company's time and money should be spent maximizing the owner's wealth, not solving society's problems.

• The logistics business has unique resources that could be used to address serious social issues.

• By contributing to social issues, business will decrease its opportunity for long-run profitability.

• Socially responsible decision making by firms can prevent increased government regulation.