Exam 500005RR Government, Ethics, and International Business
1. Which of the following acts like internal consultants to management?
B. Internal auditors
C. External auditors
2. Businesses use which of the following to influence government?
3. Tonya is the Chief Executive Officer of a technology company. She reports to
A. the union.
C. senior management.
D. the Board of Directors.
4. Regarding global management models, world-oriented means _______ management.
5. A coal mining company released significant amounts of smoke into the air. Which governmental body
will most likely address this violation?
A. Securities Exchange Commission (SEC)
B. Environmental Protection Agency (EPA)
C. Department of Justice (DOJ)
D. Federal Trade Commission (FTC)
6. Which governmental agencies are involved in the National Do-Not-Call Registry program?
A. Central Intelligence Agency (CIA) and Federal Bureau of Investigations (FBI)
B. Securities and Exchange Commission (SEC) and Department of Justice (DOJ)
C. Federal Trade Commission (FTC) and Federal Communications Commission (FCC)
D. Federal Depository Insurance Corporation (FDIC) and Federal Communications Commission (FCC)
7. The Chief Executive Officer of a corporation should possess which of the following?
A. More soft ultimatums and less soft sell
B. Less soft skills and more hard changes
C. More soft skills and less hard skills
D. Less soft ultimatums and more hard controls
8. Regarding business contracts, which of the following are indirect and special damages that can be paid to
an injured claimant, plaintiff, or victim?
9. A company makes sure it is maximizing sales, minimizing costs, and makes good business decisions to
grow the company. From a corporate social responsibility perspective, this is an example of the company's
10. A multinational company is based in Canada and does business in the United States, Mexico, and
Japan. What is the company's home country?
C. United States
11. A multinational company has one strategy for North America, a different strategy for Europe, and yet a
different strategy for Asia. This is called a/an _______ strategy.
12. A contract says that $10,000, based on a genuine estimate, is to be paid to the injured party in case of
breach. The $10,000 represents _______ damages.
13. If a company doesn't comply with government regulations and is found guilty, it incurs the cost of
C. hiring employees.
D. hiring a legal expert.
14. In corporate bankruptcy, a company
A. can renegotiate its stockholdings.
B. can continue operating while following a repayment plan.
C. must repay its debts before it can continue operations.
D. must close its operations.
15. In which of the following cultures is communication used primarily to exchange facts and information?
16. The first step in a risk management process is risk
17. When communicating, people in high-context cultures tend to emphasize
A. explicit codes.
B. the spoken word.
C. the environment surrounding them.
D. the written word.
18. Which Act is relevant when a company plans an initial public offering (IPO) for its stock?
A. The Securities Exchange Act of 1934
B. Dodd-Frank Act of 2013
C. Sarbanes-Oxley Act of 2002
D. The Securities Act of 1933
19. Regarding business contracts, courts might consider which of the following damages in a fraud case that
can be paid to an injured claimant, plaintiff, or victim?
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20. Which of the following requires the most involvement and interactions between home country and host
A. Licensing or franchising
D. Foreign direct investment
1. Which of the following is used to calculate the cost-of-living index?
A. Balance of payments (BOP)
B. Balance of trade (BOT)
C. Consumer price index (CPI)
D. Producer price index (PPI)
2. A country's government is dealing with major, complex, and crosscutting issues such as climate change
and pollution control that involves several agencies to work together and resolve the issues. Which of the
following items is more useful than the other three items to resolve such issues?
A. Focus groups
C. Task forces
3. Which of the following groups is the primary cause for an organization's failure?
4. Which of the following is a self-replicating mechanism?
A. Worm attacks
B. Spamming attacks
C. Virus attacks
D. Spoofing attacks
5. Which of the following eliminates incoming inspection of materials coming from a supplier to a buyer?
A. Early involvement of suppliers in product design
B. Integrating suppliers
C. Supplier certification methods
D. Supplier reduction strategies
6. In a manufacturing company, the number of hours it takes to manufacture a car measures organizational
7. ECC Company has collected the following data on quantity produced, variable costs, fixed costs for its
production, and cost analysis.
What is the variable cost per unit at 5,000 units of production for the ECC Company?
Quantity Produce Total Variable Costs Total Fixed Costs Total Costs
0 $0 $10,000 10,000
1,000 $4,000 $10,000 $14,000
5,000 $20,000 $10,000 $30,000
10,000 $40,000 $10,000 $50,000
8. The proper roles expected of the board of directors of a corporation include which of the following?
A. Custodians, guardians, and stewards
B. Guarantors, guardians, and fiduciaries
C. Guardians, protectors, guarantors
D. Officers, custodians, and owners
9. When a potential buyer approaches a seller to buy materials from the seller, it's called
A. reverse logistics.
B. reverse purchasing.
C. forward logistics.
D. traditional purchasing.
10. Organizational controls affect which of the following?
A. Ethics, fraud, costs, audit, and risks
B. Fraud and audit
C. Ethics and laws
D. Risks and costs
11. Safety stock _______ the carrying costs.
A. slightly affects
C. does not affect
12. Mary in the accounting department is dealing with many work-related disputes with her manager,
Nancy. It has reached to a point where Mary cannot do her job anymore. Where should Mary go to file a
complaint about Nancy?
13. When managing in a global environment and in relationship-oriented societies, business leaders should
do which of the following?
A. Take a strong personal interest in employees
B. Minimize the emphasis on personal relations
C. Feel free to criticize as much as they feel they need to
D. Focus only on business results
14. What are the internal factors affecting job recruiting?
A. Supply of labor
B. Demand for labor
C. Legal considerations
D. Promotion policies
15. Regarding alternate backup sites, low-impact computer systems require which of the following?
A. Mobile sites
B. Hot sites
C. Warm sites
D. Cold sites
16. The proper roles expected of the Chief Executive Officer of a company include which of the following?
A. Leader, mentor, motivator, and communicator
B. Task-oriented, coercive leader, results-driven, and hard seller
C. Communicator, dictator, rank-puller, and hard negotiator
D. Mentor, doubter, motivator, and hard bargainer
17. Which of the following focuses on the relationship between employee behavior and organizational
A. Organizational development
B. Organizational innovation
C. Organizational change
D. Organizational structure
18. Just-in-time strategies _______ investment in inventories.
19. What are the core functions of business organizations?
A. Accounting, finance, human resources, and information technology
B. Marketing, accounting, manufacturing, and human resources
C. Manufacturing, service, marketing, and sales
D. Sales, service, finance, and information technology
20. The best way to treat a computer-based customer relationship management system is to consider it as
a/an _______ system.
21. Job performance is affected by motivation and
22. Regular payback period is defined as the
A. average annual profits divided by initial cash outlay.
B. net investment divided by average cash inflows.
C. present value of benefits minus present value of costs.
D. present value of cash inflows divided by present value of cash outflows.
23. A recent regulatory audit of RBI Financial Corporation revealed that the company is in compliance with
six new regulations and noncompliance with three new rules. The RBI legal counsel gathered the following
financial data with the cooperation of functional management. All data is in thousands (k).
What is the out-of-pocket cost of noncompliance for the RBI Corporation?
Cost of planning $5K
Cost of hiring employees $10K
Fines and penalties $100K
Cost of training $6K
Cost of implementation $20K
Court costs $1K
Cost of reporting $2K
Cost of legal fees $15K
Reputation costs $50K
24. The Uniform Commercial Code applies to
A. real property.
B. personal property.
25. The scope of collective bargaining unit includes which of the following?
A. Grievances, reprisals, wages, and working conditions
B. Committees, arbitrators, conciliators, and mediators
C. Consultants, contractors, advisors, and attorneys
D. Management, unions, lobbyists, and regulators
26. Backward or reverse electronic auction occurs between
A. one buyer and one seller.
B. many buyers and many sellers.
C. one seller and many buyers.
D. one buyer and many sellers.
27. Which of the following represents the correct sequence of tasks in the human resources department?
A. Job analysis → Job design → Job specifications → Job description
B. Job description → Job analysis → Job design → Job specifications
C. Job design → Job analysis → Job description → Job specifications
D. Job specifications → Job analysis → Job design → Job description
28. Which of the following represents the correct sequence of handling physical security threats?
A. Deter → Deny → Detect → Delay
B. Delay → Deny → Detect → Deter
C. Deny → Detect → Deter → Delay
D. Detect → Delay → Deny → Deter
29. Which of the following represents the correct relationships in the accounting equation?
A. Assets equal liabilities plus owners' equity
B. Assets plus owners' equity equal liabilities
C. Assets plus liabilities equal owners' equity
D. Assets equal liabilities minus owners' equity
30. A supervisor just completed one of his employee's annual performance review. The supervisor saw a
growth potential for this employee in the company. Which of the following is the next step for the
supervisor to do?
A. Identify training and development needs
B. Inform his manager about the amount of pay raise that is within the budget
C. Inform the human resources department about the completion of the review
D. Decide the amount of pay raise to give
31. The Securities Act of 1933 focuses on _______ transactions.
C. computer trading
32. A retail store sells CDs for $15.00. If the cost per CD is $11.00, what is the store's markup on selling
33. Macroeconomics deals with which of the following?
34. Which of the following attacks refers to electronic garbage and harassment?
35. _______ show the amount of time needed to complete activities as well as the amount of activity that
needs to be completed within a timeframe.
A. Organizational charts
B. Gantt charts
C. Fishbone diagrams
D. Process diagrams
36. Regarding supplier performance measurement, a supplier's willingness to participate in the minimum
purchase requirement comes under _______ measures.
37. Which of the following types of leaders strives to have no ego?
A. Level 5
38. A company can increase revenues and profits if they focus on
A. major customers and average customers.
B. loyal customers and average customers.
C. average customers and below-average customers.
D. loyal customers and major customers.
39. Which of the following are both an open-book management practice and an informal communication
A. Water-fountain meetings
B. Grapevine sessions
C. Management by walking around
D. Fire-side chats
40. Higher-level managers need
A. no soft skills and all hard skills.
B. more soft skills and less hard skills.
C. average soft skills and average hard skills.
D. less soft skills and more hard skills.
41. Regarding selling methods, traditional salespeople do not spend any time on
A. approaching the clients.
B. prospecting clients.
C. identifying a client's needs.
D. presenting the product to a client.
42. When management is empowering employees, it means management is giving employees
A. power, authority, delegation, and decision making.
B. power, authority, money, and security.
C. authority, delegation, status, and promotion.
D. money, status, responsibility, and recognition.
43. Which of the following inventory turnover rates indicates a high movement in selling of products for a
44. A partial cash budget for BRP Corporation is shown below in millions (M).
What is the cash shortage or surplus amount for the BRP Corporation?
Cash receipts $2M
Beginning cash balance $1M
Minimum cash balance required $1.75M
Cash disbursements $3M
A. Cash surplus of $1.75M
B. Cash shortage of $1.75M
C. Cash surplus of $2.0M
D. Cash shortage of $2.0M
45. The scope of private law includes which of the following?
A. Contract law, tort law, and property law
B. Tort law, administrative law, and property law
C. Constitutional law, administrative law, and criminal law
D. Criminal law, contract law, and constitutional law
46. Which of the following leaders fosters creativity and growth?
47. Marketing management focuses on _______-term results.
A. near long
48. Which of the following bases of power refers to a person having and sharing valuable information to
others who need such information?
49. Which of the following is the most restrictive trade barrier resulting from political actions?
End of exam
D. Product standards
50. Which of the following can act as a planning and controlling tool?
B. Quality management principles
C. Liquidity ratios
D. Profitability ratios