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Business MCQs

Which of the following is a for-profit organization?

A charity
Google
A social enterprise
A government department

A stakeholder's role in a company is best described as...

One of influencing the company
One of being owed money by the company
One of ownership of the company
One of influencing the company and being influenced by the company

Entrepreneurs value all but which of the following?

Ability to raise funding
Good infrastructure
A complex regulatory framework
Efficient communications systems

The franchise arrangement offers the entrepreneur which one of the following benefits?

Abundant funding
The attraction of a well-known brand
Complete control of the business
Lower taxes

Why is limited liability an attractive principle for the business person?

The owner of company shares is liable only up to the amount invested
It is a means of avoiding tax
It is a means of avoiding paying off debts
The owner of company shares is not liable for debts of the business

Which one of the following is a privatized company?

A public limited company in which the government has shares
A former government agency that has been floated off as a company into the private sector
A private company that carries out government contracts
A government department that uses private-sector services

Which one of the following characterizes a private company?

Disclosure requirements more onerous than those pertaining to a public company
Its shares can be freely traded
It is usually dominated by a few insiders
It is only suitable for small companies

A shareholder is entitled to all but which one of the following?

To attend the annual general meeting (AGM)
To receive a dividend if one is declared
To have a say in the running of the business
To be called a 'member' of the company

Which of the following business functions occurs in every business, however small?

Human Resource Management (HRM)
Research & Development (R&D)
Marketing
Accounting

The multinational enterprise (MNE) is characterized by all but which one of the following attributes?

It is able to co-ordinate activities of affiliates globally
It has ownership stakes in key strategic businesses
It is invariably a public company
It adapts to new markets

Which one of the following is a principle of good practice in corporate governance?

Appoint a number of non-executive directors
Adopt a dual-class share structure
Appoint a CEO who has been with the company a long time
Promote the interests of dominant shareholders

The collapse of which company led to the enactment of the Sarbanes-Oxley Act in the US?

Lehman Brothers
Enron
Royal Bank of Scotland (RBS)
Lloyds Bank

Which one of the following is intellectual property (IP)?

Buildings
Stock
Patents
Innovative strategies

Which one of the following sets of goals best describes the sustainable business?

Promoting environmental protection, societal well-being and human rights
Obeying the law, paying taxes and adhering to national environmental law
Complying with national law, giving to charity and maximizing shareholder value
Paying the minimum wage, obeying the law and building innovative capacity

The company that shifts production from its home country to a country where costs are much lower faces criticism for all but which one of the followin...

The move adversely affects stakeholders in the home country
The company is putting profits before communities
The company is acting unethically
The company is likely to be criticized by shareholders

To turn Tesco around, Lewis did all of the following except:

Cut Costs
Sell Land
Close unprofitable stores
Build 49 new stores

Which on of the following is not a reason for Tesco's decline?

Accounting irregularities
Breach of industry codes of conduct
Competition from Wal-mart
Negative media attention

Which of the following is not a change in consumer behavior?

More consumers are shopping at discount stores
More consumers are shopping at up-market grocers
Consumers are shopping at large stores
Consumers prefer to shop more often and buy less

The value chain is defined as...

Networks of suppliers co-ordinated by an MNE
Co-ordinated stages of production of a product, from sourcing through to distribution
Sourcing of raw materials from the most advantageous location
Co-ordination of affiliate companies by the MNE

Which one of the following most accurately characterizes the globalization of markets in consumer products?

Selling a standard product in all markets
Launching new products at the same time in all markets
Pricing products the same in all markets
Adapting products to national markets, based on local consumer preferences

Advocates of 'hyperglobalization' point to all but which one of the following phemonena?

The breaking down of borders between countries
The spread of market values globally
The persistence of national cultures
The empowerment of individuals

Which one of the following is not a process associated with globalization?

Interdependence of countries in the global economy
National governments controlling national markets
Interconnectedness facilitated by new technology
Global financial flows

Which one of the following describes the economies of poor developing countries?

Focus on primary production, notably agriculture and natural resources
Extensive industrialization and growing service sector
Focus on service sector and high-tech manufacturing
Concentration on industrial development, especially low-cost manufacturing

The UN Human Development Index takes in three criteria, which are...

Wealth, industrial output and level of education
Economic indicators, health and education
Employment, health and education
Economic indicators, education and infrastructure

Which one of the following describes a 'transition' economy, according to the UN?

Making the transition from agriculture to manufacturing industries
Making the transition from communist government to democracy
Making the transition from colonialist government to independent institutions
Making the transition from planned economy to market economy

Which pair of emerging markets have enjoyed economic growth based mainly on exploiting natural resources?

India and Indonesia
Brazil and Russia
China and Indonesia
South Africa and China

Which one of the following is a 'pull' factor encouraging companies to internationalize?

High costs in the home market
Stagnant sales in the home market
Large potential markets in emerging economies
High wages in the home country

All but which one of the following is an advantage of greenfield FDI?

New manufacturing site
Government incentives in the host country
Access to low-cost labour
Little prospect of immediate profits

Production under licence has been particularly prevalent in the manufacturing of consumer products such as smartphones. Why?

Global brand owners look for cheap labour above all other criteria
Large-scale manufacturers in low-cost countries are able to deliver large orders quickly
Manufacturing consumer devices benefits from migrant labour
Countries with low-cost labour seek to attract investors

The sovereign wealth fund is important in the global economy because...

It invests state funds in companies globally, and is in a position to shape those companiesâ€™ strategies
It has lots of money
It helps the country's rulers to generate more wealth for themselves
It is subject to political influence

What are the three sets of advantages in the theory of the OLI paradigm?

Location, technology and ownership
Ownership, location and internalization
Internationalization, technology and markets
Location, markets and supply chains

Which one of the following is a negative aspect of FDI from the perspective of a developed country whose companies outsource manufacturing?

Its consumers enjoy cheap consumer products
The country loses manufacturing jobs
Increased profits flow to the country's large companies
The companies can reach more consumers in global markets

Spillover effects of FDI benefit host countries because...

The foreign investor always hands over its technology to host companies
The foreign investor seeks to preserve its IP
The host country always requires the foreign investor to transfer technology
The local workers can absorb technology from the foreign investorâ€™s operations

What percentage of Zara's products are made in Spain, Portugal, Morocco and Turkey?

25%
50%
75%
100%

Which of the following is not a major driver of sales for Zara?

Advertising
Location in high profile shopping areas
Online retailing
Zara store managers

Which of the following is not key for the success of fast fashion?

CSR
Low-cost labor
Constant Renewal
Responsiveness to consumer demand

Which one of the following best describes the foundation of ethics?

Respect for community
Respect for the individual human being
Respect for authority
Respect for the state

Utilitarian theories focus on all but which one of the following?

The self-interested individual
Minimal government
Social welfare
The aggregate of individual goods

Kant's theory of the categorical imperative focuses on which of the following?

Treating people as ends, and not means to an end
The maximum happiness of the greatest number
Negative freedom
Individual rights

The Universal Declaration of Human Rights (UDHR) is considered authoritative in international law for what reason?

It articulates a comprehensive view of human rights
It is a treaty
It is agreed by all states
It dates from 1948

Which of the following is an 'absolute' right?

Freedom of speech
The right not to be tortured
Freedom of religion
Freedom of association

Which one of the following comes within the category of economic and social rights?

Freedom of speech
The right to work
Freedom of movement
Freedom of religion

Which one of the following describes the duty to take reasonable care?

Doing everything possible to avoid causing harm to others
Doing as much as others in the industry do to avoid accidents
Doing as much as a reasonable person would do to avoid causing harm
Doing as much as the firm can afford to avoid accidents

Labour rights include all but which one of the following?

Right to join a trade union
Right to safe working conditions
Right to negotiate with management of the firm over pay and conditions
Right of employees to have a representative on the board of the firm

The weak interpretation of corporate social responsibility (CSR) consists of which of the following?

Committing the firm to social goals
Making corporate donations to charity
Devising strategies that maximize shareholder value
Abiding by national laws

Carroll's theory of CSR focuses on which of the following sets of obligations?

Economic, social and legal obligations
Economic, legal, ethical and philanthropic obligations
Social, ethical and philanthropic obligations
Economic, environmental and social obligations

Which of the following are secondary stakeholders?

Workers in the company's factories
Suppliers of the company
Customers of the company
Workers in an outsourcing factory making the companyâ€™s products

Corporate social performance theory concerns which of the following?

The company's dialogue with shareholders
The companyâ€™s social responses in different contexts
The company's social obligations under CSR theory
The company's social values

Environmental, social and governance (ESG) reporting is mandatory in all but which one of the following countries?

the US
Norway
France
South Africa

Fiduciary duty of directors is owed to which of the following?

The dominant shareholders
The aggregate of shareholders
Stakeholders
The company as a whole

The social enterprise serves which of the following purposes?

Welfare services
Social causes
Public services
Charitable causes

Which of the following is not one of VW's brands?

Porsche
Audi
Seat
Lancia

The primary cause to VW's malfeasance was which of the following?

The failure of EU officials to investigate the defeat devices
Failure to test new vehicles on roads instead of in labs
Competitive pressure
Ethical relativism

Which of the following is not a negative outcome of the VW scandal?

Claw back of 9 billion euros in R&D investments
Increased corporate visability
34% drop in stock price
18 billion in proposed EPA penalties

Which one of the following best describes the cause of environmental degradation?

Climate change
Human activity
Global warming
Modern farming

Industrial development is responsible for all but which one of the following?

Depletion of natural resources
Deforestation
Sustainable agriculture
Pollution

The concept of the 'global commons' can be defined as which of the following?

The high seas
The common environment shared by all on the planet
Obligations owed by all countries
The north and south poles

Emissions of greenhouse gases are increasing most rapidly where?

The US
Africa
China and India
Europe

Where does climate change have the most damaging impacts?

Disadvantaged communities everywhere
Developing countries
The poorest developing countries
Low-lying countries

The Kyoto Protocol set a precedent by mandating which of the following?

Setting limits to GHG emissions in the large emerging countries
Setting limits to GHG emissions in developed countries
Setting limits to GHG emissions globally
Setting limits to GHG emissions in developing countries

Why is the 'carbon footprint' a helpful concept in assessing emissions?

It focuses on developed countries
It focuses on low-cost manufacturing
It covers the whole product life cycle
It focuses on the role of consumers

Sustainable consumption is best described as which one of the following?

Using more recyclable products
Buying green products
Investing more in recycling
Changing to less pollutant lifestyles

The continued reliance on coal in China and India is due to which of the following reasons?

Their governments are against measures to reduce emissions
They are not investing in nuclear power generation
Their growth models depend on fossil fuel
Their governments are importing large quantities of coal

Nuclear power raises concerns for all but which one of the following reasons?

Worries following the Fukushima disaster in Japan
The risks of radioactive contamination
The problems of dealing with nuclear waste
The fact that nuclear power has high levels of emissions

Which of the following is included in the Rio principles?

Companies should be liable for environmental damage
There is a link between reducing poverty and sustainable development
The sovereign state is not liable for transboundary pollution
The sovereign state should not be liable for pollution caused by companies in their territory

The Sustainable Development Goals (SDGs) place primary responsibility on which of the following?

Governments
Individual people
Private-sector companies
NGOs

All but which one of the following is linked to the spread of genetically-modified (GM) crops in Africa?

Control in the hands of agribusiness
Smallholder dependence on companies
Risks to biodiversity
The promotion of traditional agriculture

Chevron has resisted legal claims that it is liable for environmental damage in Ecuador in all but which one of the following ways?

Denying liability for the activities of Texaco, which it later took over
Denying that oil extraction causes environmental damage
Obtaining a judgment in the US that the case should be heard in Ecuador
Using the ISDS process

The Paris accord requires countries' nationally defined emissions reductions to be monitored by which mechanism?

Review by UN monitors
Stocktaking at defined intervals
Reporting to the climate change panel
National reporting

Which of the following is not true about Uruguay?

It relies heavily on clean energy
It is the second smallest country in south America
Education is heavily influenced by the catholic church
Smoking has fallen in recent years

Between 2010 and 2015 the following occurred in Uruguay:

Economy grew and inequality grew
Economy shrank and inequality grew
Economy grew and inequality did not grow
Economy shrank and inequality did not grow

Which of the following is not an energy source for Uruguay?

Wind
Hydroelectric
Biomass
Nuclear

Cultural convergence includes which one of the following phenomena?

Diversity of national cultures
The growth in a â€™cosmopolitanâ€™ culture
The existence of distinctive national cultures
Religious values

National culture is fostered by all but which one of the following?

Education
Language
Sense of national identity
The persistence of many immigrant communities

Which of the following characterizes a business person from a high-context culture?

Giving forthright opinions in a business meeting
Asking direct questions in a business meeting
Expressing views in an ambiguous way
Demanding a written agreement on all contractual issues

All but which one of the following is taking place in language communication?

The rise in numbers of speakers of Chinese languages
The use of English as a second language
The unrivalled dominance of English on the internet globally
The use of English as a cross-cultural means of communication

Religious freedom is recognized in international law as a human right in which document?

The US Bill of Rights
The International Covenant on Civil and Political Rights
The Declaration of Independence
The US Constitution

Which of the following business functions is subject to a system based on Islamic law for application in Islamic contexts?

Banking and finance
Operations
Marketing
R&D

In Hofstede's theory of cultural dimensions, power distance signifies which of the following in an organization?

The bosses of the organization feel they own it
A person at the lower end of the organizationâ€™s hierarchy feels remote from those at the top
The workers in the organization look on each other as equals
The workers in the organization are invariably poorly treated

Organizational culture is exemplified in all but which of the following ways?

Degrees of formality in the organization
Degrees of empowerment of staff
Application of employment law
Adherence to ethical standards

How is the worker envisaged in Taylor's scientific management?

An individual
An empowered member of the organization
A troublemaker
A pair of hands

The Fordist factory is characterized by all but which one of the following?

Regimentation
Monotonous work
Co-operative industrial relations
Lack of innovation

In what ways did Japanese companies improve on Fordism?

By becoming more flexible and reducing waste
By abolishing trade unions
By introducing more technology
By reducing costs

Human well-being is best described as which of the following?

Ability to access healthcare and adequate food
Ability to enjoy a satisfying life, through health, viable work and educational opportunities
Ability to access adequate food and shelter
Ability to participate in community life

All but which one of the following sectors rely heavily on migrant labour?

The construction industry
Mining
Skilled manufacturing
Domestic service

Urbanization in poor developing countries is best characterized by which of the following?

Industrial jobs and educational opportunities lacking in rural environments
Poor housing, poor healthcare and shortage of employment
Good housing and improved infrastructure compared to rural areas
Low levels of crime

The number of people over the age of 60 is growing most rapidly in which of these locations?

The US
Europe
Developed countries
Developing countries

Which of the following was not apart of McDonalds original strategy?

Standardized menus
Consistent quality
Moderate prices
Quick Service

Based on the case, which of the following was not a criticism of McDonalds employment practices?

Low pay
Poor working conditions
Lack of health insurence
Retaliation

The Public sector is owned and controlled by

The government
Individuals and households
Shareholders
The general public

What does limited liability refer to?

Shareholders' personal assets cannot be claimed by creditors for money owed by the firm
The maximum a shareholder can lose is equal to their initial investment, but nothing more
The directors are exempt from adhering to company law and legislation
Both (A) and (B)

Which of the following is not a for-profit organization?

Public-private partnerships
Sole traders
Limited liability companies
Non-governmental organizations

If an individual wants full and total control over a firm and wishes to minimize the legal bureaucracy in setting up, which of the following is most s...

Partnership
Sole proprietorship
Private limited company
Public limited company

Which of the following is not a valid advantage of a sole proprietorship?

The proprietor has limited liability
The proprietor has total control and more flexibility
Fewer legal formalities are required
The proprietor does not have to share profits with others

Which of the following is not a disadvantage of being a sole trader?

Unlimited liability
Limited availability of, and access to, funds
Time consuming to set up
Continuity challenges

Who do the profits made by a sole trader belong to?

The government
The sole trader
Employees
Shareholders

Which of the following is not a characteristic of partnerships?

Limited liability for all members
A deed of partnership is drawn out
Shared control, ownership and profits
Greater continuity

Which of the following is not an advantage of a partnership?

Larger amounts of capital can be raised by selling shares to friends and family
There is greater continuity compared with sole traders
There is a greater wealth of knowledge and expertise than setting up as sole traders
Corporate confidentiality is relatively high as financial statements do not have to be released to the public

Which of the following is not a disadvantage of partnerships?

Financial resources are pooled
Partners have unlimited liability
Profits are shared with all partners
Conflicts in decision-making are more likely to occur

Which of the following is not a characteristic of a company (corporation)?

There is a separation of ownership and control
Shareholders have limited liability
Profits are distributed amongst managers and directors
They can be either privately or publicly owned

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