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DEVRY BUSN115 MIDTERM EXAM

(TCO 1) The amount of money a business takes in during a given time period by selling goods and/or selling services.

Student Answer: Business

Goods

Services

Entrepreneur

Revenue

Question 2. Question : (TCO 1) A behavioral science that studies how society chooses to employ resources to produce goods and services and distribute them.

Student Answer: Economics

Microeconomics

Macroeconomics

Resource development

Invisible Hand

Question 3. Question : (TCO 1) That part of economics that studies the behavior of people and organizations in particular markets.

Student Answer: Economics

Microeconomics

Macroeconomics

Resource development

Invisible Hand

Question 4. Question : (TCO 2) An unethical activity in which insiders use private company information to further their own fortunes or those of their family and friends.

Student Answer: Insider trading

Social audit

Socially conscious investors

Environmentalists

Union officials

Question 5. Question : (TCO 3) The difference between money flowing into a country and money flowing out of a country.

Student Answer: Balance of payments

Balance of trade

Common Market

Countertrading

Devaluation

Question 6. Question : (TCO 3) An unfavorable balance of trade occurs when the value of a country’s imports exceeds that of its exports.

Student Answer: Trade surplus

Trade deficit

Tariffs

Strategic alliance

Multinational corporation

Question 7. Question : (TCO 4) Investors who provide money to finance new businesses or turnarounds in exchange for a portion of ownership, with the objective of reselling the business at a proft.

Student Answer: Venture Capitalists

Extrapreneurs

Intrapreneurs

Angel Investors

None of the above

(TCO 1) Describe and explain capitalism and how it functions in a free market economy.

Question 2. Question : (TCO 2) Describe and explain corporate responsibility using an ethical perspective. Your stakeholder group for your answer is parents of high school students. Your company designs, produces, and sells video game apps for the mobile market. A concern has been raised in the community where your company is located about the violence portrayed in your mobile video game apps. What do you say to the parents? Why?

Question 3. Question : (TCO 3) Describe the importance of understanding cultural and legal differences in the global business environment.

Question 4. Question : (TCO 4) Describe the importance of small business and entrepreneurship in the U.S. Economy.

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