1. When management’s decisions align with social and economic issues, the company is practicing ________.

2. Which of the following is a benefit of entrepreneurship?

3. The business philosophy that advocates determining what consumers want and need, and then designing products to satisfy those needs, is known as ________.

4. In accounting terms, profits are ________.

5. ________ is the ability to perceive marketplace needs and what an organization must do to satisfy these needs.

6. In his book The Wealth of Nations, the Scottish economist Adam Smith was the first person to describe ________.

7. Which of the following is considered to be the most fundamental right of the private enterprise system?

8. All of the following are businesses EXCEPT ________.

9. Which of the following can improve ethical reasoning in a company?

10. Individuals who focus only on their own interests when making decisions are at the ________ stage of ethical development.

11. Which federal agency is responsible for setting workplace health and safety standards?

12. Technology has ________ ethical issues.

13. Embellishing your résumé shows a lack of ______ and ______.

14. Despite the recession, the ethical climate seems to be ___________.

15. Online simulation training such as the Ethics Challenge can help to improve ethical ________.

16. In today’s business environment, who can make the difference in ethical expectations and behavior?

17. Most industrialized nations operate economies based on ________.

18. Many of the gains in U.S. productivity can be attributed to ________.

19. A demand curve is the schedule that shows the relationship between the price of a product and ________.

20. Which of the following fields is concerned with understanding the choices people make in using scarce resources?

21. ________ provides a running measure of consumer price changes.

22. According to a supply curve, ________.

23. Control over price by individual firms is highest in a(n) ________.

24. Monopolistic competition has ________.

25. ________ is the relationship between the goods and services produced in a nation each year and workers, raw materials, and other inputs necessary to produce them.

BUS 508 Midterm Exam 2

1. An absolute advantage occurs when a country can maintain ________.

2. Los Angeles-based PMI Telecom purchases cell phones manufactured in Asia and sells them in the United States. PMI is engaging in the international business activity known as ________.

3. A country with a balance of payments surplus means ________.

4. An understanding of religious holidays is essential in order to overcome ________ international trade barriers.

5. The European Union (EU) ________.

6. By allowing a company to purchase another existing firm in the host country, a(n) ________ permits a largely domestic business to gain an international presence very quickly.

7.When a company operates in other countries, it ________ risk

8. A large part of the U.S. economy’s growth comes from ________.

9. A country’s exchange rate is based on ________.

10.The majority of all U.S. firms employ

11. ________ of small businesses are considered home-based businesses.

12. ___________ use their own capital supplemented with government loans to invest in small businesses.

13. The board of directors of a corporation is elected by the ________.

14. A restaurant franchisee purchases which of the following from the franchisor?

15. If you are considering starting your own business, a key priority for you should be to:

16. When a government unit owns and operates an organization, the arrangement is known as ________.

17. Owners of small businesses can increase their chances of success if they:

18. Franz and Arlene had an idea for a different type of ice cream. They struggled to open their own small business, and later, to expand production and distribution. Their products are distributed nationwide and their sales continue to increase. Franz and Arlene are examples of ________.

19. Logan is an entrepreneur who takes personal responsibility for the success or failure of his actions rather than believing in luck or fate. Which characteristic best describes Logan’s entrepreneurial philosophy?

20. Studies indicate that most entrepreneurs spend ______ on their new business.

21. Collin works for a large bank that recently merged with another financial institution. Word of layoffs has been discussed. Collin is most likely to become an entrepreneur in order to ________.

22. Concerning education and entrepreneurs, all of the following statements are correct EXCEPT:

23. Financial success ________.

24. Which of the following is a major consideration in selecting a business idea?

25. An entrepreneur