Term
| In recent years, the value of the dollar relative to the euro has declined. What does this mean for European businesses exporting to the United States? |
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Definition
| European countries are more likely to import US goods or services |
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Term
| Computers that are manufactured in the United States and sold in Norway are categorized as U.S. ________. |
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Definition
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Term
| A foreign-made household appliance is popular and is highly competitive with the same product manufactured domestically. To give the domestic industry a better chance to operate profitably, the government restricts the number of these appliances that can be imported by applying a(n) ________. |
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Definition
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Term
| A trade deficit occurs when ________. |
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Definition
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Term
| The Coca-Cola Company designs its ads around the world to emphasize a common theme. These ads are adapted only slightly for local markets. Coca-Cola is using which of the following strategies in its international operations? |
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Definition
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Term
| A country with a balance of payments surplus means ________. |
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Definition
| Monetary inflow exceeds monetary outflow |
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Term
| AusterTech, a U.S. company, produces computer parts and sells them to South American countries. AusterTech is engaging in the international business activity known as ________. |
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Definition
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Term
| An understanding of religious holidays is essential in order to overcome ________ international trade barriers. |
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Definition
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Term
| The objective of an import quota is to ________. |
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Definition
| Protect domestic industries |
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Term
| The hypothetical country of Austrica requires foreign companies that buy and sell Austrica products to use only Austrica currency in these transactions. Austrica is using ________ as a means of controlling international trade. |
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Definition
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Term
| Although people in developing nations have lower per capita incomes than more highly developed nations, their __________ represents a lucrative market for global trade. |
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Definition
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Term
| One effect of the North American Free Trade Agreement (NAFTA) is: |
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Definition
| An increase in trade among the NAFTA member nations |
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Term
| Which of the following groups is likely to be hurt economically if the value of the U.S. dollar rises relative to the euro? |
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Definition
| American farmers exporting goods to Europe |
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Term
| Speedy Lube enters into a contract with a foreign company to produce and distribute its products in a specific geographic area. Speedy Lube is involved in ________. |
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Definition
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Term
| Decisions made by the ___________ regarding trade disputes are binding on the parties involved. |
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Definition
| WTO (World Trade Organization) |
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Term
| Which type of business is least likely to be bought by large companies? |
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Definition
| Business that sell personalized services |
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Term
| In exchange for an ownership share, Benita's small business receives financing from a group of individuals known as _____________, |
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Definition
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Term
| ___________ use their own capital supplemented with government loans to invest in small businesses. |
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Definition
| Small Business Investment Companies (SBIC) |
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Term
| The board of directors usually includes some individuals who are not employed by the corporation. These people are referred to as ________. |
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Definition
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Term
| The board of directors of a corporation is elected by the ________. |
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Definition
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Term
| Which of the following statements regarding franchising is FALSE? |
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Definition
| Franchises are more risky than other forms of business ownership |
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Term
| Lucia is a chief financial officer in a large corporation. Her responsibilities include the full financial authority to make appropriations and authorize expenditures. Lucia is likely to be a member of ________ management. |
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Definition
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Term
| Small-business owners want to determine whether their companies meet the standards for small-business designation because |
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Definition
| government agencies offer benefits designed to help small businesses compete with larger firms. |
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Term
| The maximum number of shareholders is limited to ________ for a firm to qualify as a subchapter S corporation. |
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Definition
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Term
| Which of the following is a trend in the area of franchising? |
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Definition
| More franchises are opening outside the United States. |
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Term
| ________ newly-launched businesses fail within two years after commencing operations. |
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Definition
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Term
| Assume that Microsoft decides to invest some of its excess cash by acquiring fellow Seattle-based Starbucks Coffee. This would be a ________. |
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Definition
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Term
| When the Small Business Administration (SBA) assists a small business in applying for a major loan, it acts as the lender's ________. |
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Definition
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Term
| The advertising plan for a franchise is usually put together by the ________. |
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Definition
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Term
| The ________ is most likely an example of public ownership |
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Definition
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Term
| Greg buys a McDonald's franchise. Greg is the ________ and ________ for McDonald's. |
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Definition
| Franchisee: does not work for McDonald |
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Term
| Richard, Sarah, and Trevor form a partnership because it offers the following advantage: |
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Definition
| Greater financial Resources |
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Term
| Which of the following statements is true regarding employee-owned corporations? |
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Definition
| Employees buy shares of stock in the company that employs them |
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Term
| All of the following organizations are regularly and directly involved in sponsoring business incubators EXCEPT ________. |
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Definition
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Term
| The stock of Old Germany Brewery is totally owned by the Prechter family. When the family elected to move from a sole proprietorship to a corporation, the greatest concern was ________. |
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Definition
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Term
| Which type of merger results in decreased competition within the same industry? |
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Definition
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Term
| Which government agency establishes standards for small businesses? |
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Definition
| Small Business Administration |
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Term
| Chen is a franchisee of a local retail shop. One of his chief concerns regarding owning a franchise is that: |
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Definition
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Term
| Devon and Keith opened a restaurant as a partnership. Two years later, Keith left the restaurant, and Devon discovered that Keith had charged numerous expenses to their account. These expenses resulted in thousands of dollars worth of debt for the restaurant. What option does Devon have in this situation? |
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Definition
| Business creditors will expect full payment from Devon. |
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Term
| Franchising offers all of the following advantages EXCEPT ________. |
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Definition
| Guaranteed level of profitability |
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Term
| ________ are business organizations or groups of private individuals who invest in new or growing firms. |
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Definition
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Term
| Paterno routinely bids on contracts even though most of the other bidders are extremely large firms. Paterno believes his company offers better service at lower prices. He is exhibiting which personality trait common in entrepreneurs? |
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Definition
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Term
| Louis works as an artist for a major textile company and created an innovation for producing designs. The company will implement Louis's idea as part of its ________ strategy. |
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Definition
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Term
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Definition
| Accepts the risk of starting and running a business |
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Term
| Enrique wants to start a new business, but his bank will not lend him the money he needs. Enrique saw an advertisement sponsored by a business organization that provides financing for promising small companies. The organization sponsoring the advertisement would be considered a(n) ________. |
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Definition
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Term
| 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 ________. |
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Definition
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Term
| Kayla is opening a home health care business that she knows will do well in her community based on prior research. Although she must repay borrowed funds, Kayla chooses ________ to maintain complete control over the business without having to answer to investors or partners |
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Definition
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Term
| ________ are pioneers of innovations that benefit humanity |
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Definition
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Term
| Dina is a single mother who is required to work evenings and weekends at a local retail store. She is thinking of starting a consulting business primarily so she can ________. |
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Definition
| enjoy a higher quality of life |
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Term
| Michael is a successful financial advisor looking to invest money directly into a new consulting business in return for equity in the company. Michael is an example of a(n) ________. |
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Definition
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Term
| Financial success ________. |
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Definition
| is part of the appeal of becoming an entrepreneur |
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Term
| 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 ________. |
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Definition
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Term
| Entrepreneurs possess all of the following traits EXCEPT ________. |
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Definition
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Term
| All of the following are important characteristics of entrepreneurs EXCEPT: |
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Definition
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Term
| Which of the following persons is LEAST likely to become an entrepreneur? |
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Definition
| A calm, low-energy person |
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Term
| ________ of the fastest-growing small companies in the United States have international sales. |
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Definition
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Term
| Which of the following has contributed the LEAST to the boom in entrepreneurship? |
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Definition
| The rise of Service Industries |
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Term
| Which of the following demographic/economic trends has increased the opportunities for entrepreneurs? |
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Definition
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Term
| Which of the following is a major consideration in selecting a business idea? |
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Definition
| Find something you love to do and are good at doing. |
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Term
| ________ percent of large firms allocate funds towards intrepreneurship |
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Definition
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