Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
Business
Chapter 4/5 True and False World Trade
| Term | Definition |
|---|---|
| It is fair to say that a strong small business sector is the backbone of the private enterprise system. | True |
| Only 10% of today’s large businesses were started by entrepreneurs | False |
| In the United States, the number of small businesses is declining. | False |
| Almost two-thirds of all new jobs are created by small businesses. | True |
| Less than a fourth of the nation’s private workforce are employed by small businesses. | False |
| Small businesses account for barely one-quarter of the nation’s private GDP. | False |
| Small businesses are more likely to hire women and military veterans returning to the workforce than are larger businesses. | True |
| Franchising is a contractual business arrangement between a manufacturer or supplier and a dealer. | True |
| A well-established franchise is cheaper to open than an independent small business. | False |
| Franchisees often have little support offered to them by franchisors. | False |
| Major advantages of franchises include a tested management system, name recognition, and a proven business model. | True |
| The buyer of a franchise is known as the franchisee. | True |
| One franchise unit can suffer from the actions or poor performance of other units of the same franchise. | True |
| Franchising offers entrepreneurs greater independence and flexibility than other types of small businesses. | False |
| Sole proprietorships give owners ease of formation and dissolution, maximum flexibility, and the owner retains all the after tax profits. | True |
| Corporations are the most common form of business ownership | False |
| Like sole proprietorships, partnerships are easy to form and dissolve | False |
| Major advantages that can be achieved through the partnership form of ownership include complimentary management skills and expanded financial capability. | True |
| Corporations face double taxation. | True |
| Top managers include job titles like CEO, CFO, COO, and CIO | True |
| Top managers are responsible for the day-to-day operational functions of the firm | False |
| States often require at least one incorporator. | False |
| The board of directors is elected by the corporation’s common stockholders and appoints top management. | True |
| A corporation that operates outside the state of incorporation is known as a domestic corporation | False |
| A corporation that operates outside the country of incorporation is known as an alien corporation. | True |
| Most businesses in the United States are small businesses. | True |
| The quickest and simplest form of business ownership to start is the sole proprietorship. | True |
| The government usually offers small businesses the option of foregoing the paperwork required of larger businesses. | False |
| Partnerships often prove difficult to form. | False |
| In a partnership, the death of one partner does not affect the business in any way. | False |
| Many small business owners get added help in lowering costs by involving family members who often contribute without being paid. | True |
| There are less Limited Liability Companies (LLCs) today than there were in the past. | False |
| A franchise owner typically can generate profits faster than an independent business owner can. | True |
| Most small businesses prove successful after the first year. | False |
| The SBA will lend money to anyone with a really good idea. | False |
| The SBA will lend money to anyone with a really good idea. | True |
| A conglomerate merger combines similar firms in order to drive profits. | False |
| Poor management is a frequently cited reason for small business failure. | True |
| An organization that is operated collectively by its owners is a cooperative. | True |
| An organization that is operated collectively by its owners is a cooperative. | False |
| Fewer than 20% of businesses in the United States qualify as small businesses. | False |
| Small Business Investment Company (SBIC) is an investment group that funds small businesses under an SBA license. | True |
| The number of minority-and women-owned businesses is decreasing. | False |
| An important disadvantage of sole proprietorships is lack of continuity. | True |
| Sole proprietorships are easy to dissolve. | True |
| Small business plays a key role in international trade, accounting for over 30% of U.S. exports. | True |
| Foreign trade makes up a large portion of American’s business activity | True |
| The U.S. mainly trades with Western Europe over other areas of the world. | False |
| Trading with other countries increases a company’s dependence on economic conditions in its home market. | False |
| Trading with other countries spreads out risk for multinational firms. | True |
| A positive balance of trade is referred to as a balance surplus | True |
| An unfavorable balance of trade results in a trade deficit. | True |
| A strong dollar helps the United States create a favorable balance of trade. | False |
| Currency values rarely fluctuate. | False |
| The overall flow of money into or out of a country comprises that country’s balance of trade. | Flase |
| All of the world’s major currencies are based on a fixed standard: the price of gold | False |
| Where obstacles to multinational economic integration still exist, the trend is toward greater free trade. | True |
| The European Union (EU) is composed of only western European countries in order to avoid trading or job-related conflicts. | False |
| The General Agreement on Tariffs and Trade (GATT) has been succeeded by the World Trade Organization (WTO). | True |
| The General Agreement on Tariffs and Trade (GATT) has been succeeded by the World Trade Organization (WTO). | True |
| The World Bank is also known as the International Monetary Fund (IMF). | False |
| country’s level of risk falls as its level of involvement in global business increases. | False |
| Contracting with a foreign manufacturer to produce a product rather than exporting it is known as foreign licensing | True |
| Franchising works well for companies working to expand into international markets. | True |
| While it is not generally considered a way of initiating business internationally, offshoring, or the relocation of business processes to a lower-cost location overseas, has become widespread practice | True |
| In general, the greater degree of control a company exercises through foreign investment, the less risk the company faces. | False |
| In a global business strategy, a business will adjust how they sell a particular product for each country. | False |
| When a unique product and/or marketing strategy is designed for each foreign market, a multidomestic business strategy is in use. | True |
| Companies that neglect the global nature of the Internet can unwittingly cause problems for potential customers by failing to adapt their strategy | True |
| Regardless of global business strategies, companies need to be aware of cultural and business customs in the countries in which they do business and of whether certain behaviors are accepted. | True |
| The United States is the world’s largest importer. | True |
| Foreign trade is less critical to the United States than to countries such as Mexico. | False |
| When a nation’s imports exceeds its exports, it is said to have a favorable balance of trade. | False |
| When a nation’s imports exceeds its exports, it is said to have a favorable balance of trade. | False |
| Countertrade involves business payments with currency rather than products. | True |
| Dumping refers to a practice of countries carrying their waste products out to sea beyond their international boundary and disposing of them in the ocean. | False |
| An embargo imposes a total ban on importing a specified product or even a total halt to trading with a particular country. | True |
| The European Union is a common market. | True |
| A tariff produces revenue for the government of the importing country. | False |
| A complete ban on certain products is called a tariff. | False |
| In a free-trade area, the participants have no tariffs or trade restrictions. | True |
| Most companies choose not to establish an overseas division. | False |
| Exchange control is the regulation of foreign trade through a central bank or government agency. | True |
| If a firm allows a foreign company to produce and distribute its products or use its trademarks or patents it is engaged in dumping. | False |
| The International Monetary Fund was created to promote trade through financial cooperation. | True |
| The International Monetary Fund was established to make long-term loans to countries requiring assistance in conducting trade. | False |
| The International Monetary Fund was established to make long-term loans to countries requiring assistance in conducting trade. | False |
| Developing nations often prove to have higher GDP growth rates. | True |
| The number-one trading partner of the United States is now China. | False |
| country’s size, per-capita income, and stage of economic development are among the economic factors to consider when evaluating it as a candidate for an international business venture. | True |
Created by:
tiffanie1719
Popular Business sets