“1. The political-legal environment reflects the relationship
between the business and ___________.
a. labor unions
b. government
c. foreign trade
d. industry
2. Tangible goods that organizations use in conducting their
businesses are referred to as
_____________.
a. the money supply
b. information resources
c. capital
d. physical resources
3. A ____________ economy has characteristics of both planned
and market economies.
a. hybrid
b. mixed market
c. capitalist
d. privatized
4. A(n) ____________ occurs when the quantity supplied
exceeds the quantity demanded.
a. demand deficit
b. overage
c. surplus
d. shortage
5. _____________ occurs when two or more businesses vie for
the same resources or customers.
a. Competition
b. Socialism
c. Differentiation
d. Conflict
6. _____________ exists when an industry has only a handful
of sellers, most of which are large.
a. Monopolistic competition
b. Perfect competition
c. An oligopoly
d. A monopoly

Unit 1 Examination
40
BAM 105 Introduction to Business
7. Which of the following is NOT a factor of production?
a. labor
b. entrepreneurs
c. capital
d. government
8. In the market for breakfast cereals, only a few large
producers dominate the market. This
situation best describes which of the following?
a. monopolistic competition
b. monopoly
c. pure competition
d. oligopoly
9. Which of the following is an example of a natural
monopoly?
a. automobiles
b. motion pictures
c. electric companies
d. sporting goods
10. Economists refer to the pattern of short-term expansions
and contractions in the economy as
the _____________.
a. business cycle
b. consumer price index
c. standard of living
d. aggregate output
11. ____________ refers to ethical or unethical behaviors by
employees in the context of their jobs.
a. Business ethics
b. Social responsibility
c. Social ethics
d. Collusion
12.
Bob
Crawford
sold
shares
in
XYZ
Company
after
finding
out
from
XYZs
CEO
that
XYZs
stock
was about to drop in price. Bob engaged in _____________.
a. an accommodative stance to social responsibility
b. insider trading
c. whistle-blowing
d. misrepresentation of finances

Unit 1 Examination
41
BAM 105 Introduction to Business
13. A(n) _____________ stance to social responsibility
involves doing as little as possible and may
involve attempts to deny or cover up violations.
a. proactive
b. defensive
c. accommodative
d. obstructionist
14. The systematic analysis of an organizations success in
using funds earmarked for its social
responsibility goals is called a _____________.
a. community activist approach
b. social audit
c. government initiative
d. governmental mandate
15. The ethical norm of _____________ considers if the
decision is fair.
a. rights
b. justice
c. utility
d. caring
16. What is the most important source of money for
new-business start-ups?
a. grants
b. personal resources
c. the SBA
d. banks
17. _____________ are groups of small investors seeking to
make profits on companies with rapid
growth potential.
a. Venture capital companies
b. Business incubators
c. Investment clubs
d. Financial partnerships
18. Officers are _____________.
a. non-voting stockholders
b. members of the board
c. participate in day-to-day management
d. None of the above.

Unit 1 Examination
42
BAM 105 Introduction to Business
19. More than any other industry group, _____________ lends
itself to big business.
a. wholesaling
b. retailing
c. manufacturing
d. agriculture
20. A sole proprietorship depends primarily on the resources
of _____________.
a. the corporation
b. capital markets
c. a single individual
d. foreign investors
21. Developing countries are also called _____________.
a. viral marketers
b. geographic clusters
c. low-income countries
d. low middle-income countries
22. Which country dominates the Pacific Asia region
economically?
a. Taiwan,
b. Japan
c. China
d. South Korea
23. With a(n) _____________ exchange rate, the value of a countrys
currency remains constant
relative to that of another country.
a. fixed
b. floating
c. adjusted
d. indexed
24. Ford purchased Volvo. What does this illustrate?
a. foreign direct investment
b. strategic alliance
c. social responsibility
d. licensing arrangement

Unit 1 Examination
43
BAM 105 Introduction to Business
25. Selling a product abroad for less than the cost of
production is called ______________.
a. setting up a business office
b. dumping
c. direct foreign investment
d. imposing tariffs

1. The political-legal environment reflects the relationship
between the business and ___________.a. labor unionsb. governmentc. foreign traded. industry2. Tangible goods that organizations use in conducting their
businesses are referred to as_____________.a. the money supplyb. information resourcesc. capitald. physical resources3. A ____________ economy has characteristics of both planned
and market economies.a. hybridb. mixed marketc. capitalistd. privatized4. A(n) ____________ occurs when the quantity supplied
exceeds the quantity demanded.a. demand deficitb. overagec. surplusd. shortage5. _____________ occurs when two or more businesses vie for
the same resources or customers.a. Competitionb. Socialismc. Differentiationd. Conflict6. _____________ exists when an industry has only a handful
of sellers, most of which are large.a. Monopolistic competitionb. Perfect competitionc. An oligopolyd. A monopolyUnit 1 Examination40BAM 105 Introduction to Business7. Which of the following is NOT a factor of production?a. laborb. entrepreneursc. capitald. government8. In the market for breakfast cereals, only a few large
producers dominate the market. Thissituation best describes which of the following?a. monopolistic competitionb. monopolyc. pure competitiond. oligopoly9. Which of the following is an example of a natural
monopoly?a. automobilesb. motion picturesc. electric companiesd. sporting goods10. Economists refer to the pattern of short-term expansions
and contractions in the economy asthe _____________.a. business cycleb. consumer price indexc. standard of livingd. aggregate output11. ____________ refers to ethical or unethical behaviors by
employees in the context of their jobs.a. Business ethicsb. Social responsibilityc. Social ethicsd. Collusion12.BobCrawfordsoldsharesinXYZCompanyafterfindingoutfromXYZsCEOthatXYZsstockwas about to drop in price. Bob engaged in _____________.a. an accommodative stance to social responsibilityb. insider tradingc. whistle-blowingd. misrepresentation of financesUnit 1 Examination41BAM 105 Introduction to Business13. A(n) _____________ stance to social responsibility
involves doing as little as possible and mayinvolve attempts to deny or cover up violations.a. proactiveb. defensivec. accommodatived. obstructionist14. The systematic analysis of an organizations success in
using funds earmarked for its socialresponsibility goals is called a _____________.a. community activist approachb. social auditc. government initiatived. governmental mandate15. The ethical norm of _____________ considers if the
decision is fair.a. rightsb. justicec. utilityd. caring16. What is the most important source of money for
new-business start-ups?a. grantsb. personal resourcesc. the SBAd. banks17. _____________ are groups of small investors seeking to
make profits on companies with rapidgrowth potential.a. Venture capital companiesb. Business incubatorsc. Investment clubsd. Financial partnerships18. Officers are _____________.a. non-voting stockholdersb. members of the boardc. participate in day-to-day managementd. None of the above.Unit 1 Examination42BAM 105 Introduction to Business19. More than any other industry group, _____________ lends
itself to big business.a. wholesalingb. retailingc. manufacturingd. agriculture20. A sole proprietorship depends primarily on the resources
of _____________.a. the corporationb. capital marketsc. a single individuald. foreign investors21. Developing countries are also called _____________.a. viral marketersb. geographic clustersc. low-income countriesd. low middle-income countries22. Which country dominates the Pacific Asia region
economically?a. Taiwan,b. Japanc. Chinad. South Korea23. With a(n) _____________ exchange rate, the value of a countrys
currency remains constantrelative to that of another country.a. fixedb. floatingc. adjustedd. indexed24. Ford purchased Volvo. What does this illustrate?a. foreign direct investmentb. strategic alliancec. social responsibilityd. licensing arrangementUnit 1 Examination43BAM 105 Introduction to Business25. Selling a product abroad for less than the cost of
production is called ______________.a. setting up a business officeb. dumpingc. direct foreign investmentd. imposing tariffs”