BUS101 Midterm Review

1. _____ are best described as goods or services with both tangible and intangible characteristics that provide satisfaction and benefits. 

• Products 

• Capital Reserves

• Liabilities 

• Stakeholders

2. The focus of all marketing activities is to: 

• Facilitate manufacturing

• Enable healthy competition

• Satisfy customer needs 

• Ensure operating efficiency

• Manage the tasks involved in staffing 

3. Which of the following statements is true of the people and activities involved in business? 

• Managers control the tasks required to carry out the work of a company or nonprofit organization.

• Employees have the most to lose if a business fails to make a profit. 

• A nonprofit organization does not use promotional strategies as it is not concerned with profits.

• People and forces beyond an organization's control do not have an impact on the daily operations of businesses.

• The president of a company, who is not the owner, has to put up resources—money or credit—to start a business. 

The doctrine of egalitarianism, which is professed by socialist economies, refers to:

• strict regulation of prices by the government. 

• distribution of social services to the poor only.

• equal distribution of income and social services.

• distribution of social services based on economic status. 

• production of goods based on competition, supply, and demand. 

Which of the following statements is true of a free-enterprise system? 

• Individuals have the right to choose what career to pursue. 

• Individuals do not have the right to own property.

• Businesses succeed or fail on the basis of central government planning.

• Businesses are independent of market demand and competition. 

• Businesses do not have the right to earn profit. 

5. Which of the following statements is true of the early American economy before the Industrial Revolution? 

• Money for the colonies' burgeoning industries was supplied exclusively from within the American territory.

• Farmers began to move to cities to find jobs in factories and have a higher standard of living.

• Factories began to spring up along the railways to manufacture farm equipment and a variety of other goods to be shipped by rail.

• Abundant natural resources and a moderate climate nourished industries such as fishing, shipping, and fur trading.

6. An ethical issue is an identifiable problem, situation, or opportunity that requires a person or organization to choose from among several actions that may be evaluated as ethical or unethical.  

• True

• False

7. The principles and standards that determine acceptable conduct in business organizations are referred to as:  

• corporate citizenship. 

• business strategies. 

• business ethics. 

• social responsibility. 

8. Which of the following statements is true?  

• The concerns of what is legal and ethical do not change over time. 

• All actions deemed unethical by society are also illegal. 

• Companies can be both profitable and socially responsible. 

• The terms social responsibility and ethics should be used interchangeably. 

9. The _____ Act criminalized securities fraud and toughened penalties for corporate fraud.  

• Sarbanes-Oxley 

• Dodd-Frank 

• Federal Trade Commission 

• Sherman Antitrust