14. During a recession, unemployment ________ while inflation
A. rises; falls.
B. rises; rises.
C. falls; falls.
D. falls; rises.
15. What prompted Congress to enact the Sarbanes-Oxley Act in 2002?
A. Major companies requested government regulation following negative publicity.
B. A series of improper financial disclosures were found during investigations.
C. Congress wanted to make accounting practices more efficient.
D. Stockholders petitioned for increased access to financial records.
16. If you want to turn self-directed gain into social and economic benefits for all, you should use a/an _______ strategy.
A. invisible hand
C. visible hand
D. charitable aid society
17. Nearly a week before Hurricane Katrina reached New Orleans, Wal-Mart began moving trucks and supplies into position, as specified in the company's ________ plan.
18. Student A says that customer satisfaction is a mark of a world-class business. Student B says that proactive ethics is a mark of a world-class business. Which student is correct?
B. Student B only
C. Student A only
19. Ida works on creating ways to ensure that customers receive goods at the right time and correct location. Ida is involved in her firm's ________ strategy.
20. What is the name for a complex form of bartering in which several countries may be involved, each trading goods for goods or services for services?
B. Exchange activity
D. Currency fluctuations
21. All of the following are assets except
D. bank loans.
22. According to the doctrine of supply, the amount _______ will increase as the _______ increases.
A. supplied; price
B. bought; cost
C. sold; demand
D. demanded; cheapness
23. Union workers at an auto parts plant go out on strike. In response, management closes the plant. This tactic is a
A. cooling-off period.
D. secondary boycott.
24. One way for a country to obtain an absolute advantage in marketing a product outside its borders is to .
A. adopt many trade restrictions.
B. enter into an orderly marketing agreement.
C. revalue the currency.
D. produce the good at the lowest cost.
25. In the U.S. economy, ________ are considered the reward for the risk of entering business.
26. Which of the following represents the basic accounting equation?
A. Liabilities = Assets + Owners' Equity
B. Assets = Liabilities + Owners' Equity
C. Owners' Equity − Liabilities = Assets
D. Assets + Liabilities = Owners' Equity
27. Suppose you want to price goods and services at price points that make the product appear less expensive than it is. Which strategy should you use?
28. Team diversity is often established in a ________ team, by bringing together the expertise of members from various functions in the organization.
29. In which stage of the product life cycle are profits at their highest?
A. Introductory stage
B. Maturity stage
C. Decline stage
D. Growth stage
30. _______ planning involves choosing specific work targets and assigning employees and teams to carry out plans.
31. The North American Free Trade Agreement (NAFTA) can be expected to
A. result in political unification of the member countries.
B. increase the number of low-wage jobs in the U.S.
C. vastly increase trade among the member nations.
D. increase trade restrictions among the member nations.
32. Forbes, Fortune, and similar types of magazines often contain ads for Rolex watches, BMW automobiles, and other luxury items. Advertisers are trying to reach a market segment based on
33. The rate the Fed charges member banks for short-term loans is called the
A. reserve requirement.
B. federal funds rate.
C. discount rate.
D. margin rate.