Diablo Valley College Foundations of Business Framework Building

It will cover Chapters 1-4 offered in the text Foundations of Business, (6^th edition) and lecture notes. The twenty questions are short and offered in three mixed formats – Multiple Choice, Fill-Ins, and Short Answers.

• To be successful, a business must perform three activities. Name them.
• Name the six factors of production discussed during our recent lecture, both in the textbook, and as a result of our dialogue.
• Adam Smith conceived our Capitalistic economic system as a result of the “invisible hand.” Explain what he meant.
• Name the four external environments in our competitive business world.
• Which is not one of the four degrees of competition?
• Define what ethics are.
• Besides obeying all laws and regulations, businesspeople are expected to refrain from _________________________________________________________________________.
• A wise rule to remember is that anything given to a person that might influence that person’s decision is a:
• Under the veil of social responsibility, companies large, and small, are striving to be recognized as ___________________________________________.
• Some managers believe that they have a responsibility not only to stockholders, but also to customers, employees, suppliers, and the general public. What is this view known as?
• What is the difference between absolute advantage and comparative advantage?
• Explain the difference between an export and an import.
• Define what a balance of trade is.
• What is the difference between a tariff and a quota?
• Which was the first major International Trade Agreement after the Second World War?
• What is the difference between a Sole Proprietor and a Partnership?
• A typical partnership agreement will include five important items. Name them.
• Who is responsible for a corporation’s overall operation?
• Which is more disadvantaged in terms of the number of stockholders?
• Which of the four below identifies the merger where a company merges with another from a completely different industry?

• Perfect competition
• Oligopoly
• Monopoly
• Supply and demand

• Scam
• Miscalculation
• Bribe
• Conflict of interest

• WTO
• GATT
• NAFTA
• EU

• Board of Directors
• Stockholders
• Corporate Officers
• A Government Regulatory Agency

• A corporation
• An LLC
• An S-Corporation
• None of the above

• Conglomerate merger
• Horizontal merger
• Vertical merger
• Domestic merger

EXTRA CREDIT QUESTIONS (worth 2 points each)

• Define what an economic community is.
• What are the six basic consumer rights?