exam 497041

1. (TCO 4) An entrepreneur who wishes to start a business with little delay or hassle, and who wants to be his or her own boss, should organize the business as a:
sole proprietorship.
cooperative.
C corporation.
general partnership.
2. (TCO 4) In a limited liability partnership, each partner’s risk of losing personal assets is:
limited to the amount that each partner invested in the company.
limited to losses that result from their own acts and omissions and the acts and omissions of those who work under their supervision.
determined entirely by the maximum loss provision established by the articles of co-partnership.
nonexistent.
3. (TCO 4) The form of business ownership that is best suited to raising large amounts of money for expansion is the:
sole proprietorship.
partnership.
corporation.
cooperative.
4. (TCO 4) Entrepreneurs applying for a bank loan should realize that bankers will
expect to receive a share of ownership in the business in exchange for their loan.
expect the entrepreneur to have a well-prepared business plan.
generally make loans only to small businesses in dot.com related industries.
offer only short-term financing.
5. (TCO 3) Free trade between nations generally results in:
industrialized nations gaining at the expense of developing nations.
the loss of jobs in developed nations.
mutually beneficial exchange relationships.
higher prices for goods that are imported.
6. (TCO 3) The two basic types of tariffs are:
goods and services.
revenue and protective.
comparative and absolute.
general and limited.
7. (TCO 3) Which of the following represents the value of one nation’s currency relative to the currencies of another country?
Euro rate.
Currency exchange rate.
Value rate.
Standard of living.
8. (TCO 2) Which of the following reflects the desire of an ethical manager to achieve a “win-win” relationship with others?
Is it legal?
Is it balanced?
How will it make me feel about myself?
How can I benefit at the expense of others?
9. (TCO 2) After developing a code of ethics, it should be communicated to:
everyone with whom the business has dealings.
the Attorney General in jurisdictions where the business has operations.
all levels of management.
stockholders.
10. (TCO 2) Corporate ________ encompasses various issues such as setting minority hiring practices, manufacturing safe products, and minimizing pollution.
responsibility
philanthropy
diversity
structure and strategy
11. (TCO 2) The Enron scandal revealed ________ corporate behavior.
legal but unethical
predictable
illegal
ethical
12. (TCO 1) A typical supply curve shows a relationship between the:
amount of labor a firm hires and the amount of output it can produce.
amount of time required to produce a good and the relevant production costs.
price of a good and the quantity sellers would be willing to offer for sale.
amount of a good a firm produces and the total profit it earns.
13. (TCO 1) When the government runs a budget deficit, it increases the:
national debt.
balance of payments deficit.
federal capital account.
money supply.
1. (TCO 1) Kathleen manages a manufacturing plant for ScanRite, Inc., a producer of scanners and other input devices connected to computers. About six months ago, Kathleen asked an assistant to keep track of both work hours and output at her plant. She has compared these figures, and has found that even though the number of workers (and the hours they worked) remained relatively steady over the past six months, the plant’s output increased significantly. This indicates that:
the productivity of workers at the ScanRite plant has increased.
the ScanRite plant must have sold off some of its excess inventory.
ScanRite prices have increased faster than the wages it pays to its workers.
Kathleen should hire more workers.
2. (TCO 9) Harriet Smith started her own used bookstore four years ago. Her business has prospered and she now has a large number of regular customers. She wants to computerize her records so that she can easily keep track of the names, addresses, and phone numbers of each customer, as well as the types of books each customer likes. She plans to use this information to contact customers when she receives books they might like. The type of software that would be most useful to Harriet is:
a database program.
groupware.
a systems configuration package.
communications software.

3.(TCO 9) The most likely reason a firm would decide to establish an extranet would be the desire to:(Points : 6)speed the flow of information on its private network by increasing the bandwidth.
make the information on its network widely available to the general public.
share information and collaborate with a select group of outside organizations or individuals.
overcome the speed and capacity limitations of its external connection to the Internet by gaining access to the very high speed Backbone Network Service.

store copies of crucial data in several different locations to protect against its loss during disasters such as earthquakes, floods, or terrorist attacks.
protect its data from unauthorized outsiders.
increase the rate at which information flows through a firm’s intranet.
discover hidden relationships among the data it accumulates.