Midterm Test (Introduction to business)
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I. Determine which of the following statements are true and which are false. Then put T or F in the blanks.
1. _______ International Business refers to the buying, selling, and trading of goods and services in the national boundaries.
2. _______ Absolute advantage exists when a country is the only source of an item, the only producer of an item, or the most efficient producer of an item
3. _______ Comparative advantage occurs when a country specializes in products that it can not supply more efficiently or at a lower cost than it can produce other items
4. _______ International trade barriers are Economic, Legal/political, Social/cultural, and Technological.
5. _______ General Agreement on Tariffs and Trade (GATT) is
Trade agreement that provided a forum for tariff negotiations and a place where international trade problems could be discussed/solved. This is formed by 32 nations in 1974.
6. _______ Counter trade agreement is Foreign trade agreements that involve bartering products for other products instead of for currency
7. _______ Trading company is a firm that buys goods in one country and sells them to buyers in the same country
8. _______ Licensing is a trade agreement in which one company-licensor- allows another company –licensee- to use its company name, products, patents, brands, trademarks, raw materials, or production process in exchange for a fee or royalty
9. _______ Franchising is a form of a licensing in which a company – franchiser- agrees to provide a franchisee a name, logo, methods of operations, advertising, products, and other elements associated with the franchiser’s business, in return for a financial commitment and the agreement to conduct business in accordance with the franchiser’s standard of operations.
10. _______ Contract Manufacturing is the hiring of a foreign company to produce a specified volume of the initiating company’s product to specification, the final product carries the domestic firm’s name
II. Circle the letter of the answer that completes each of the sentences below:
1. Joint Venture is :
a. The sharing of costs and operation of a business b/t a foreign of company and a local partner.
b. A partnership formed to create competitive advantage on a worldwide basis.
c. The ownership of overseas facilities.
d. A form of direct investment that involve transferring of manufacturing or other tasks- such as data processing, to countries where labor and supplies are less expensive.
2. Direct Investment is:
a. The sharing of costs and operation of a business b/t a foreign of company and a local partner.
b. A partnership formed to create competitive advantage on a worldwide basis.
c. The ownership of overseas facilities.
d. a form of direct investment that involve transferring of manufacturing or other tasks- such as data processing, to countries where labor and supplies are less expensive.
3. Outsourcing is:
a. The sharing of costs and operation of a business b/t a foreign of company and a local partner.
b. A partnership formed to create competitive advantage on a worldwide basis.
c. The ownership of overseas facilities.
d. A form of direct investment that involve transferring of manufacturing or other tasks- such as data processing, to countries where labor and supplies are less expensive.
4. Multinational corporation is:
a. The sharing of costs and operation of a business b/t a foreign of company and a local partner.
b. A partnership formed to create competitive advantage on a worldwide basis.
c. The ownership of overseas facilities.
d. A form of direct investment that involve transferring of manufacturing or other tasks- such as data processing, to countries where labor and supplies are less expensive.
5. Sole Proprietorship is :
a. A business owned and operated by one individual;
b. A business owned and operated by more than one individual;
c. A business owned and operated by 2 individuals.
d. A business owned and operated by three individual.
6. What is the one that is disadvantages of Sole Proprietorship?
a. Ease and cost of formation
b. Secrecy
c. Distribution and use of profits
d. Unlimited liability
7. What is the one that is not disadvantage of Sole Proprietorship?
a. Unlimited liability
b. Limited sources of funds
c. Limited skills
d. Closing the business.
8. What is the merger?
a. The combination of two companies (usually corporations) to form a new company.
b. A partnership formed to create competitive advantage on a worldwide basis.
c. The ownership of overseas facilities.
d. a form of direct investment that involve transferring of manufacturing or other tasks- such as data processing, to countries where labor and supplies are less expensive.
9. What is the acquisition?
a. The purchase of one company by another, usually by buying its stock.
b. A partnership formed to create competitive advantage on a worldwide basis.
c. The ownership of overseas facilities.
d. a form of direct investment that involve transferring of manufacturing or other tasks- such as data processing, to countries where labor and supplies are less expensive.
10. What is the Leveraged Buyout (LBO)?
a. A purchase in which a group of investors borrow money from banks and other institutions to acquire a company (or division of one) using the assets of the purchased company to guarantee repayment of the loan.
b. The purchase of one company by another, usually by buying its stock.
c. A partnership formed to create competitive advantage on a worldwide basis.
d. The ownership of overseas facilities.
III. Select the terms below to fill in the right blanks
- Technical skills
- leadership skills
- Tactical Plans
- Operational Plans
- Strategic Plans
-
- Objectives
- management
- small business
- entrepreneurship
1. The process of creating and managing a business to achieve a desired objective can be defined as (____________________________________________).
2. Any independently owned and operated business that is not dominant in its competitive area and employs fewer than 500 people can be defined as
(_______________________________________________)
3. A process designed to achieve an organization’s objectives by using its
resources effectively and efficiently in a changing environment is defined as (______________________________________________).
4. The ends or results desired by the organization and are derived from the organization’s mission is defined as (__________________________).
5. The statement of an organization’s fundamental purpose and basic philosophy is defined as ( ______________________________ ).
6. Those plans that establish the long-range objectives and overall strategy or course of action by which a firm fulfills its mission is defined as (_____________________________________).
7. Short-range plans designed to implement the activities and objectives specified in the strategic plan can be defined as (_____________________________).
8. very short-term plans that specify what actions individuals, work groups, or department need to accomplish in order to achieve the tactical plan and ultimately the strategic plans is known as (________________________).
9. The ability to influence employees to work toward organizational goals is called (_________________________________).
10. The specialized knowledge and training needed to perform jobs that are related to particular areas is known as (_________________________).
IV. Answer the following questions about marketing
1. What do you define the word “manager”?
___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
2. What are the functions of management?
___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
3. What are the skills needed by the manager?
___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
4. How can you define “leadership skill”?
___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
5. What is the difference between strategic plans and tactical plans?
___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
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The End