Question 12

1. An argument for increased social responsibility is the fact that, because business managers are primarily responsible to business owners, they must be concerned with providing a return on the owners investments.

   True

   False

1.5 points

Question 13

1. Consumerism consists of all those activities that are undertaken to protect the rights of consumers in their dealings with business.

   True

   False

1.5 points

Question 14

1. Licensing is a difficult method of globalizing and the enterperneur undertakes great risk.

   True

   False

1.5 points

Question 15

1. A restriction on the amount of a particular foreign product that can be purchased or sold is called a foreign-exchange control.

   True

   False

1.5 points

Question 16

1. Licensing and exporting can be considered relatively low-risk methods of entering foreign markets.

   True

   False

1.5 points

Question 17

1. Because of unlimited liability, it is easy for sole proprietors to borrow large sums of money.

   True

   False

1.5 points

Question 18

1. Because there are two or more people in a general partnership, bankers, suppliers, and other creditors are not concerned about unlimited liability.

   True

   False

1.5 points

Question 19

1. Profit is not the main concern of government-owned corporations.

   True

   False