QUESTION What are the three main purposes for which taxes are used? What will be an ideal response? ANSWER Answer: Taxes are used to pay for public services, such as schools, roads, and public safety. They are used to discourage certain behavior. Taxes on cigarettes and alcohol are meant to discourage smoking and drinking […]
QUESTION Hollister’s response suggests that he unreasonably assumes which of the following? A) Any attempt to reduce the personnel costs of the Legal Division cannot succeed. B) The number of managers in the Legal Division cannot be reduced. C) There can be no change in the number of employees supervised by Legal Division managers. D) […]
QUESTION Which of the four most important antitrust laws was set up primarily as a way to help enforce other antitrust laws? Explain. What will be an ideal response? ANSWER Answer: The Federal Trade Commission Act of 1914 established the Federal Trade Commission, which has the power to define unfair competition and to issue […]
QUESTION Agencies such as the Environmental Protection Agency, the Equal Employment Opportunity Commission, the Federal Trade Commission, and the Food and Drug Administration are designed to keep big business in line. What type of agency are they? What will be an ideal response? ANSWER Answer: These agencies are regulatory agencies, created to keep big […]
QUESTION MaryBeth has credit card debt of about $80,000. She also has unpaid medical bills totalling nearly $60,000 and has not been working because of illness. Her house is worth about $275,000, but she has nearly $230,000 left to pay on the mortgage. Her household furnishings are worth about $60,000. If MaryBeth’s creditors took her […]
QUESTION Which of the following statements, if true, supports the vice president’s argument? A) Ocean Spray would get an immediate court injunction against Cranberry Bog because the name is a clear copyright infringement on “Craisins.” B) It is a catchy name that hints at the unique flavors being introduced. C) Some consumers might not tie […]
QUESTION The two sides reach an impasse, with the union demanding more expensive safety measures than management feels are necessary. If the two sides opt for arbitration as the next step, which of the following should both sides take care to do? A) Gain popular support for their position through carefully chosen media exposure. B) […]
QUESTION Which of the following, if true, weakens the argument for developing organic beauty products? A) Few companies have obtained patents for their organic product innovations. B) Competitors in this segment are quick to copy any new product innovation and mimic product design. C) Organic offerings have a shorter shelf-life compared to synthetic products. D) […]
QUESTION iStore has been criticized for offering higher discounts to DataCorp, a major computer manufacturer. Which of the following is the most effective defense in this scenario? A) Other companies offer similar discounts to DataCorp. B) iStore’s costs are lower on such sales because of higher volumes. C) iStore has always offered lower rates to […]
QUESTION Which response to the current business environment is considered legal? A) iStore discriminates in its pricing because it manufactures different qualities of headphones for different computer manufacturers. B) iStore requires dealers to charge a specified retail price for its products. C) iStore raises memory card prices and then announces a huge discount. D) iStore […]
