Q&A Hero

Q: Which of the following is a typical function of a trademark? A.It marks the sales territory for which individual salespeople are assigned. B.It restrains authors, composers, playwrights, artists, and publishers from trading their creative work. C.It signifies that a country is a member of the World Trade Organization. D.It acts as a permit to expand a business globally. E.It allows merchants or manufacturers to designate and differentiate their products.

Q: Patents, copyrights, and trademarks establish ownership rights over what type of property? A.Intellectual B.Real C.Tangible D.Non-performing E.Stolen

Q: Which of the following protects the Nike "Swoosh" logo from being used by any other shoe manufacturer? A.Trademark B.Affidavit C.Patent D.Warrant E.Writ

Q: Which of the following is most likely to be protected by a copyright? A.A new manufacturing process invented in a company B.A newly invented telecommunication device C.Tangible property like land and building D.Movies produced and directed by a person E.A new type of car invented by an automobile company

Q: A composer can protect an original musical score from being copied and sold by someone else by acquiring for the score a(n): A.patent. B.warrant. C.trademark. D.copyright. E.affidavit.

Q: Silver Tape Corporation has developed a new type of adhesive tape. Which of the following types of legal protections can grant the company exclusive rights for a defined period to the manufacture, use, or sale of the new adhesive tape? A.Warrant B.Patent C.Copyright D.Trademark E.Writ

Q: Which of the following grants the inventor of a new product or process exclusive rights for a defined period to the manufacture, use, or sale of that invention? A.Copyright B.Trademark C.Patent D.Warranty E.Service mark

Q: Initech Incorporated, a multinational giant, runs a number of diversified businesses. Which of the following can be considered as an intellectual property of the firm? A.Income arising from renting land and buildings B.Profits arising from the sale of agricultural crops C.Interest earned by lending capital to other firms D.Innovations and capabilities, and skills of the employees E.Investments made in raw materials and machinery

Q: Products of the mind, such as computer software, a screenplay, a music score, or the chemical formula for a new drug, constitute: A.assets which receive no protection under law. B.non-performing assets. C.tangible assets. D.intellectual property. E.real property.

Q: Which of the following best exemplifies facilitating or expediting payments in business? A.Making payments to government officials not to cancel the business license after violating local laws B.Paying a lump sum amount in order to win a government tender for road construction in a foreign country C.Making unsolicited payments to the concerned officers in return for employing child labor D.Making payments to customs officials in order to ship pirated merchandise E.Making small payments to government officials in order to speed up the work they are already obligated to perform

Q: As per the U.S. law and OECD convention, which of the following is most likely to be considered as a grease payment? A.Gold Fire Inc. paid a fine of $2500 for violating the labor laws in a foreign country. B.Gold Fire Inc. made a small payment of $20 to speed up some paperwork related to tax returns in a less developed country. C.The proprietor of Gold Fire Inc. made payments to the Mafia as a protection against violent retribution. D.Gold Fire Inc. gave gift vouchers to all its product wholesalers in order to promote the product. E.Gold Fire Inc. made an unrecorded payment to one of its accountants in return for window dressing the company's accounts.

Q: Which of the following does the U.S. law and OECD convention allow as an exception? A.Bribing a foreign government official to obtain a contract B.Failure to keep records that would reveal if a violation of the Foreign Corrupt Practices Act has occurred C.Grease payments or speed money D.Private action E.Breach of the rule of law

Q: In the United States, the Foreign Corrupt Practices Act was passed during the 1970s following revelations that: A.U.S. companies had bribed government officials in foreign countries in an attempt to win lucrative contracts. B.U.S. companies were involved in bribing U.S. government officials in cases related to major corporate and accounting scandals. C.U.S. government bureaucrats demanded bribes from U.S. companies in return for a permit to operate in a foreign country. D.several companies were selling their products at lower prices in foreign countries than in the United States. E.successful business owners in the United States often had to pay "protection money" to the Mafia or face violent retribution.

Q: Which of the following terms best defines the relationship between the level of corruption and economic growth rate in a country? A.Directly proportional B.Inversely proportional C.Independent D.Positive correlation E.Zero correlation

Q: The Republic of Marwa has decided to open its economy to globalization. Which of the following will facilitate this decision of Marwa? A.A strong commitment to communism B.A strong presence of private action in the nation C.Adopting the Contracts for the International Sale of Goods (CIGS) D.Creating a national environment that promotes public action E.Breaking the rule of law

Q: Which of the following best exemplifies public action? A.The mafia in Cedia Republic demands "protection money" from successful domestic business owners. B.Cedian proprietors in the hospitality industry often complain about protection rackets by criminal groups. C.Government bureaucrats demand bribes from international businesses in return for the rights to operate in Cedia Republic. D.The Cedian government has been criticized for its inability to curb theft of trade secrets of international businesses by private domestic owners. E.To promote the Cedian culture, the government has made Cedian movies, which are based on Cedian history, tax-free.

Q: In the context of property rights, which of the following best exemplifies private action? A.Levying excessive taxes B.Requiring expensive licenses or state permits from private property holders C.Taking assets into state ownership without compensating the owners D.Government bureaucrats demanding bribes from businesses in return for the rights to operate in a country E.Business owners stealing their competitors' trade secrets and intellectual properties

Q: After the collapse of communism in Dehran, successful business owners often had to pay "protection money" to the mafia or face violent retribution. In the context of property rights, the behavior of the mafia is an example of: A.active violation. B.public action. C.private action. D.boundary spanning. E.industrial espionage.

Q: In the context of property rights, which of the following refers to theft, piracy, blackmail, and the like by private individuals or groups? A.Private consumption B.Private practice C.Privacy tort D.Private action E.Privacy violation

Q: The bundle of legal rights over the use to which a resource is put and over the use made of any income that may be derived from that resource are called what type of rights? A.Civil B.Political C.Shareholder D.Property E.Public

Q: When firms do not wish to accept the rules of the CIGS, what do they often opt for to settle contract disputes? A.UN involvement B.Arbitration C.Collective bargaining D.The common law system of the United States E.Islamic law

Q: Which of the following establishes a uniform set of rules governing certain aspects of the making and performance of everyday commercial contracts between sellers and buyers who have their places of business in different nations? A.Contracts for the International Sale of Goods B.Bill of Exchange C.United Nations Charter D.International Forwarding Agent Contract E.International Promissory Note

Q: Which of the following statements is true about the difference between contracts in common law and civil law systems? A.Contracts drafted under a common law system tend to be longer than those drafted under a civil law system. B.Contracts drafted under a civil law system tend to be more specific than those drafted under a civil law system. C.It is more expensive to draw up contracts in a civil law system than in a common law system. D.Resolving contract disputes tends to be less adversarial in common law systems than in civil law systems. E.Civil law systems have the advantage of greater flexibility and allow for judges to interpret a contract dispute in light of the prevailing situation but this feature is absent in common law systems.

Q: Which of the following refers to documents that specify the conditions under which an exchange is to occur and detail the rights and obligations of the parties involved? A.Memoranda B.Manifestoes C.Contracts D.White papers E.Minutes

Q: Jewish law is an example of what type of law system? A.Autocratic B.Civil C.Common D.Theocratic E.Universal

Q: Which of the following is true about the three main types of legal systems? A.Judges under a civil law system have more flexibility than those under a common law system. B.The common law system evolved in the United States over hundreds of years. C.Although Islamic law is primarily concerned with moral behavior, it has been extended to cover certain commercial activities. D.A theocratic law system is based on a detailed set of laws organized into codes. E.Common law cannot be altered, clarified, or amended to deal with new situations.

Q: What is the most widely practiced theocratic legal system in the modern world? A.Christian law B.Islamic law C.Jewish law D.Hindu law E.Buddhist law

Q: A legal system which is based primarily on religious teachings is referred to as a: A.civil law system. B.theocratic law system. C.common law system. D.precedent law system. E.public law system.

Q: Which of the following is a law system based on a detailed set of laws organized into codes? A.Civil B.Theocratic C.Common D.Traditional E.Precedent

Q: The common law system enjoys a degree of flexibility not found in other systems because: A.it is usually found in democratic republics. B.it originated from Great Britain and can be found in almost all of its former colonies. C.it is interpreted by the law courts with regard to tradition, precedent, and custom. D.it is based on a detailed set of laws organized into codes. E.it has originated recentlyjust a decade ago.

Q: In the context of common law, which of the following terms refers to the ways in which laws are applied in specific situations? A.Tradition B.Precedent C.Custom D.Interpretation E.Culture

Q: Which of the following legal systems is most likely to be based on tradition, precedent, and custom? A.Common law B.Civil law C.Autocracy law D.Monarchy law E.Universal law

Q: Which of the following is true about legal systems? A.All countries have the same, uniform legal environment. B.Unlike the economic system of a country, the legal system is independent of the country's political system. C.The government of a country defines the legal framework within which firms do business. D.The attractiveness of a country as an investment site or market is unaffected by its legal system. E.Collectivist-inclined totalitarian states tend to enact laws that are pro-private enterprise.

Q: Collectivist-inclined totalitarian states tend to enact laws that severely restrict private enterprises, whereas the laws enacted by governments in democratic states, where individualism is the dominant political philosophy, tend to be pro-private enterprise and pro-consumer. This indicates that the: A.economic system of a country is independent of its legal system. B.legal system of a country is not influenced by the prevailing political system. C.legal system does not affect the attractiveness of a country as an investment site or market. D.all countries have the same legal environments. E.the legal framework of a country reflects the rulers' dominant political ideology.

Q: The Boldovian government took Sea Lion Inc., a domestic, private shipbuilding firm, into state ownership to save the company from bankruptcy. However, the other private competitors in the shipbuilding industry were enraged by this decision of the government. As a result, the government had to reduce the tax burden on all other private shipbuilding firms so that both the state-owned enterprise and private firms could co-exist. According to this information, Boldovia has most likely adopted what type of economy? A.Mixed B.Market-based C.Command D.Laissez-faire E.Communist

Q: Which of the following is true about the three broad types of economic systems? A.For a pure market economy to function efficiently product supply must be restricted. B.In a command economy, state-owned enterprises have little incentive to control costs and be efficient. C.The sole role of government in a command economy is to encourage vigorous free and fair competition between private producers. D.Mixed economies were once uncommon throughout much of the world, although they are becoming more popular now. E.Production in command economies is determined by the interaction of supply and demand and signaled to producers through the price system.

Q: In mixed economies, governments sometimes tend to take into state ownership troubled firms whose continued operation is thought to be vital to national interests. Once a government takes into state ownership such troubled firms, they are said to be: A.privatized. B.decentralized. C.liberalized. D.nationalized. E.deregulated.

Q: In what type of economy are certain sectors of the economy left to private ownership and free market mechanisms, while in other sectors there is significant state ownership and government planning? A.Command B.Pure market C.Mixed D.Centrally planned E.Laissez-faire

Q: In comparison to market economies, command economies lack: A.government interference in allocation of resources. B.dynamism and innovation. C.concern for the interests of the nation. D.commitment to communism. E.any opposition to private ownership.

Q: In what type of economy are all businesses state owned, the rationale being that the government can then direct them to make investments that are in the best interests of the nation as a whole rather than in the interests of private individuals? A.Free market B.Deregulated C.Pure command D.Mixed E.Laissez-faire

Q: Which of the following statements is most likely to be true regarding private ownership? A.It reduces a nation's dynamism and its investments in innovation and creativity. B.It is most commonly found in command economies. C.It eliminates competitors and reduces pressure to lower production costs. D.It gives entrepreneurs an incentive to search for better ways of serving consumer needs. E.It is based on the philosophy that "the good of society is more important than the interests of an individual."

Q: Which of the following refers to an economic system in which the interaction of supply and demand determines the quantity in which goods and services are produced? A.Barter B.Command C.Market D.Regulated E.Centrally planned

Q: In which countries are we likely to find free market economies? A.Countries where the good of the society has precedence over private profit B.Countries where individual goals are given primacy over collective goals C.Countries where state-owned enterprises have a monopoly in certain industries D.Countries that have adopted communism as their political system E.Countries where the government plans the goods and services produced

Q: A common feature of many right-wing dictatorships is: A.total restriction on individual economic freedom. B.strong commitment to socialist or communist ideas. C.governments that are made up of military officers. D.politicians from a particular tribe dominating the political system. E.the direct involvement of the citizens in decision making.

Q: The fascist regimes that ruled Germany and Italy in the 1930s and 1940s had adopted: A.right-wing totalitarianism. B.theocratic totalitarianism. C.representative democracy. D.pure democracy. E.totalitarian democracy.

Q: Which of the following generally permits individual economic freedom, but restricts individual political freedom on the grounds that it would lead to the rise of communism? A.Pure democracy B.Right-wing totalitarianism C.Free market capitalism D.Representative democracy E.Communist totalitarianism

Q: A totalitarian political system in which a party, group, or individual that represents the interests of a particular ethnic group monopolizes political power is referred to as: A.theocratic totalitarianism. B.communist totalitarianism. C.right-wing totalitarianism. D.tribal totalitarianism. E.democratic totalitarianism.

Q: States that limit the freedom of religious expression with laws based on religious principles most likely follow the political system of: A.theocratic totalitarianism. B.communist totalitarianism. C.right-wing totalitarianism. D.pure democracy. E.representative democracy.

Q: Which of the following is a form of totalitarianism which advocates that socialism can be achieved only through a totalitarian dictatorship? A.Tribal totalitarianism B.Democratic totalitarianism C.Communist totalitarianism D.Theocratic totalitarianism E.Right-wing totalitarianism

Q: Which of the following applies to most totalitarian states? A.Free and fair elections are not denied to the citizens. B.There is free access to state information. C.All the basic civil liberties are granted to the citizens. D.The right to freedom of expression and organization is not curbed. E.Media are heavily censored.

Q: Which of the following is a feature of representative democracy? A.Restrictions on an individual's right to freedom of expression, opinion, and organization B.Inability of the citizens to vote out elected representatives who fail to perform their job adequately at the next election C.An unlimited term for elected representatives D.A court system that is linked to the political system E.A nonpolitical police force and armed service

Q: Which of the following is a form of government in which one person or political party exercises absolute control over all spheres of human life and prohibits opposing political parties? A.Capitalism B.Totalitarianism C.Pure democracy D.Republicanism E.Representative democracy

Q: Democracy, in its purest form, is based on the belief that: A.citizens should be directly involved in decision making. B.political freedom of the citizens should be limited. C.citizens are responsible for their own economic health and thus need no government. D.individual freedom in the economic sphere should be restricted. E.one person should have an absolute control over all the citizens of a nation.

Q: In practical terms, which of the following translates into an advocacy for democratic ideals and free market economics, which in general creates the most favorable environment for international businesses to operate in? A.Collectivism B.Totalitarianism C.Individualism D.Communism E.Socialism

Q: Which of the following is most likely to be advocated by individualism? A.Communal property is more highly productive than private property. B.Public good should be preferred over private profit. C.State-owned companies should monopolize certain industries. D.The welfare of society is best served by some collective body such as government. E.Free market ideologies should be followed for achieving better standards of living.

Q: In the context of individualism, which of the following is inconsistent with the works of the ancient Greek philosopher Aristotle? A.Guaranteeing individual freedom B.Government dictating what is in the best interest of society C.Guaranteeing self-expression D.Committing to private ownership E.Treating individual diversity as desirable

Q: The Cedian government believes that its citizens should have complete freedom in their economic and political pursuits, and the Cedian ideology is "private profit over public good." In this context, it can be said that Cedia most likely follows the philosophy of: A.totalitarianism. B.socialism. C.individualism. D.communism. E.Marxism.

Q: Which of the following can be traced to the ancient Greek philosopher Aristotle? A.Collectivism B.Individualism C.Socialism D.Totalitarianism E.Communism

Q: The sale of state-owned enterprises to independent, nonpublic investors is referred to as: A.privatization. B.nationalization. C.collectivism. D.communalism. E.public action.

Q: Which of the following is true about communism? A.Communism propagates the idea of "private profit rather than public good." B.By the mid-1990s communism started rising worldwide. C.China has moved sharply away from strict adherence to communist ideology in the economic sphere. D.Communists committed themselves to achieving socialism by turning their backs on violent revolution and dictatorship. E.Communism stresses that the interests of the individual should take precedence over the interests of the state.

Q: Which of the following is inconsistent with Marxist philosophy? A.Concern over public good rather than private profit B.Monopoly of state-owned companies in certain industries C.Opposing the ideologies of capitalist societies D.Substantial limits on individual political freedom E.Selling state-owned enterprises to private investors

Q: Those who attempt to achieve the same ideologies as that of the communists without violent revolution and totalitarian dictatorship are: A.pure capitalists. B.social democrats. C.individualists. D.anarchists. E.aristocrats.

Q: In the early twentieth century, the socialist ideology split into two broad camps and the people who believed that socialism could be achieved only through violent revolution and totalitarian dictatorship were referred to as: A.communists. B.capitalists. C.democrats. D.individualists. E.anarchists.

Q: Which of the following was advocated by Karl Marx? A.Capitalist society B.Individualism C.Selling state-owned enterprises to private investors D.Socialism E.Private profit over public good

Q: Modern socialism traces its intellectual roots to: A.Aristotle. B.David Hume. C.Karl Marx. D.Adam Smith. E.Milton Friedman.

Q: A person who believes in public ownership of the means of production for the common good of society is a(n): A.socialist. B.capitalist. C.individualist. D.monarchist. E.feudalist.

Q: In the country of Normian Republic, an individual's right to own land is restricted to a large extent on the basis that it runs counter to "the common good." In this context, which of the following is most likely to be the political system adopted by Normian Republic? A.Individualism B.Democracy C.Collectivism D.Capitalism E.Protectionism

Q: The needs of society as a whole are generally viewed as being more important than individual freedoms when the emphasis is on: A.democracy. B.collectivism. C.individualism. D.capitalism. E.privatization.

Q: Which of the following statements is true about political systems? A.The political system of a country is independent of its economic and legal systems. B.The political system of a country is of no importance to international business. C.It is not possible to have democratic societies that emphasize a mix of collectivism and individualism. D.It is possible to have totalitarian societies that are not collectivist. E.The societal culture of a country does not influence its political system.

Q: Which of the following systems is a part of the political economy? A.Religious system B.Value system C.Demographic system D.Legal system E.Technological system

Q: Other things being equal, a nation with democratic political institutions is clearly more attractive as a place in which to do business than a nation that lacks democratic institutions.

Q: The benefits, costs, and risks associated with doing business in a country are independent of that country's political, economic, and legal systems.

Q: When product safety laws are tougher in a firm's home country than in a foreign country, the ethical thing to do is to adhere to home-country standards.

Q: Liability laws are typically the least extensive in highly developed nations.

Q: The term "public action" refers to the exclusive legal rights of authors, composers, playwrights, artists, and publishers to publish and disperse their work as they see fit.

Q: Intellectual property laws stimulate innovation and creative work.

Q: When firms do not wish to accept the Contracts for the International Sale of Goods, they often opt for arbitration by a recognized arbitration court to settle contract disputes.

Q: By adopting the Contracts for the International Sale of Goods (CIGS), a nation signals to other adopters that it will treat the convention's rules as part of its law.

Q: Compared to a common law system, it is more expensive to draw up contracts in a civil law jurisdiction.

Q: Islamic law is primarily a moral rather than a commercial law and is intended to govern all aspects of life.