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BM 1st Semester Final Review
Corporations are many in number and generally large in size.
F
Corporations sell more goods and services annually than do proprietorships and partnerships combined.
T
All corporations are large in size.
F
A corporation is authorized to act as if it were a single person, separate from its owners, by
a. the federal government
c. the U.S. Attorney General
b. the city in which it is located
d. the state in which it is located
Which activities are corporations allowed to practice?
a. Make contracts but not borrow money.
b. Make contracts but not own property.
c. Make contracts but not be sued.
d. Make contracts, borrow money, and be sued.
Ownership of a corporation is measured in
a. dividends
b. charters
c. shares
d. prospectuses
A shareholder cannot
a. transfer ownership to others
b. vote for members of the ruling body of the corporation
c. share in the net proceeds should the corporation go out of business
d. create contracts for the corporation
If the corporation fails, stockholders are responsible for
a. only the amount invested in the corporation
b. only the value of the assets of the corporation
c. all of the debts of the corporation
d. only the amount owed in dividends
If the assets of a corporation amount to $900,000 and its debts amount to $550,000, what is the value of the capital stock?
a. $1,450,000
c. $550,000
b. $900,000
d. $350,000
A stockholder who cannot attend a stockholders' meeting can submit votes via
a. prospectus
c. dividend
b. proxy
d. contract
A monopoly exists as long as there are at least two producers.
F
Prices are usually higher where a monopoly exists than where competition exists.
T
Competitive pricing causes less efficient companies to struggle for survival.
T
Which act forbids a business to require buyers to purchase other goods in order to get the product they want from that
business?
a. Clayton Act
c. Sherman Antitrust Act
b. Robinson-Patman Act
d. Federal Power Act
Which act outlaws unfair practices, such as false advertising?
a. Clayton Act
c. Sherman Antitrust Act
b. Robinson-Patman Act
d. Wheeler-Lea Act
Selling tires at $40 each to one buyer and $43 each to another buyer is prohibited by the
a. Wheeler-Lea Act
c. FTC Act
b. Sherman Antiturst Act
d. Robinson-Patman Act
The practice that allows a business to sell its assets to pay its debts is called
a. liquidation
c. licensing
b. consolidation
d. bankruptcy
When a business files for bankruptcy, what does the law allow when cash is not available to pay the debts after assets are
sold?
a. The law excuses the business from paying all the remaining unpaid debts.
b. The law excuses the business from paying some of the remaining unpaid debts.
c. The law requires paying all creditors the full amount owed.
d. The law requires paying all creditors a portion of the debt, depending upon the reason for
the debt.
Which statement is true about patents?
a. Japan’s patents protect inventors as well as promote technology sharing.
b. U.S. patents protect inventors as well as promote technology sharing.
c. Japan’s patents do not promote technology sharing, and U.S. patents do not protect
inventors.
d. Japan’s patents promote technology sharing, but U.S. patents protect inventors.
A patent can be considered a
a. permanent monopoly
b. temporary monopoly
c. fair-use guarantee
d. protection against recall
The terms data and information mean the same thing.
True
False
What type of software would you use to create high-quality newsletters, brochures, and special documents?
a. desktop publishing
b. graphics
c. training
d. utilities
A browser and a search engine are the same thing.
True
False
The modern electronic office is an information center operated by:
a. computer operators.
b. information specialists.
c. knowledge workers.
d. technocrats.
A mouse pointer positioned over a hyperlink will turn into an hourglass.
True
False
A person sending a message to a friend in another country is using the:
a. Extranet.
b. internet
c. Intranet.
A system using special software that screens people who enter or exit a network by requesting passwords is called a(n):
a. antivirus software.
b. firewall.
c. security checkpoint.
d. spam blocker.
What type of software is used to prepare diagrams, graphs, and other kinds of illustrations?
a. desktop publishing
b. graphics
c. training
d. utilities
ISP stands for Internet Selling Place.
True
False
What type of software aids other software to work more effectively?
a. desktop publishing
b. graphics
c. training
d. utilities
A key capability of a ________ is the ability to analyze "what if?" scenarios.
a. decision support system
b. executive information system
c. management information system
d. regression analysis system
VoIP refers to using the Internet:
a. for telephone service.
b. for video conferencing.
c. instead of telephone calls.
d. instead of video conferences.
________ businesses are traditional businesses that use the Internet to support their business activities.
a. Bricks-and-clicks
b. Bricks-and-mortar
c. Dot-com
d. Virtual
The entire customer transaction can be completed using the Internet in the ________ of e-commerce development.
a. incubation stage
b. information stage
c. integration stage
d. interaction stage
In 2004, total Internet sales to consumers represented ________ of all consumer purchases.
a. less than 2.5 percent
b. less than 5 percent
c. less than 12.5
d. less than 25 percent
Doing business online is called:
a. e-commerce.
b. e-tail.
c. e-trade.
d. e-work.
Consumers report that one of the primary reasons they do not shop online is concern about security issues such as
identity theft.
True
False
In the information stage of e-commerce development, customers use the Web site to learn more about the
company and its products, but they cannot make a purchase.
True
False
The Internet has proven to be an important tool in reducing the cost of some business activities.
True
False
The Internet has made it easier to obtain information about the competition.
True
False
When was the World Wide Web invented?
a. early 1950s
b. late 1960s
c. late 1970s
d. early 1990s
The most common business use of the Internet is communication.
True
False
There are more than ________ times the number of Internet domains today than there were in 1993.
a. 10
b. 30
c. 100
d. 300
A private business that maintains the Web sites of individuals and organizations on its computers for a fee is called a:
a. domain server.
b. Internet registrar.
c. Internet service provider.
d. Web-hosting service.
Which of the following is NOT a factor that consumers list as important in maintaining their loyalty to an e-commerce business?
a. familiar brand names
b. lower prices
c. quick delivery of products
d. useful and accurate information.