Your response to each question should answer the question completely in approximately two- to three-paragraphs. Please provide examples with your answers. If you cite outside material, either as a direct quote or as paraphrased information, be sure to include appropriate reference citations in APA style formatting. The exam reflects the following course objectives and possible topics. TCO 1: Given a description of a typical business, demonstrate how that business acts within our economic system to achieve its goals as well as those of society, along with an understanding of how the future may impact these goals. • Define importing and exporting. • Explain free trade. • Explain the difference between absolute advantage and comparative advantage. • Explain business, goods, services, and revenue. • Define and explain entrepreneurship. • Explain economics and resource development. • Summarize Adam Smith’s theory. • Define and explain the various forms of business organization to include partnerships, franchising, and corporations. • Define and explain international and global marketing. • Explain the major concepts related to a small business startup to include business plans, venture capitalists, the SBA, the SBIC, and SCORE. • Know the elements of a business plan. • Explain acquisition, LBO, and LLP. TCO 2: Given the importance of ethics in business, be able to understand and address ethical dilemmas that may occur in workplace activities and offer suggestions to prevent their recurrence. • Explain corporate policy and corporate responsibility. • Describe corporate social initiatives. • Define ethics. • Define CSR. • Describe insider trading. • Explain various interested stakeholders. • List and explain the steps to be considered when determining the ethics of an action. • Explain the differences between compliance- and integrity-based ethics codes. TCO 3: Given the need to increase profits through cost reductions, describe the use of globalization strategies to accomplish this initiative, along with a discussion of the pros and cons of this approach. • Define balance of payments and balance of trade. • Describe common market, countertrading, and devaluation. • Identify and explain WTO, SWFs, NAFTA, and FDI. • Describe an embargo. • Describe and explain trade surplus, deficit, tariffs, a strategic alliance, and a multinational corporation. TCO 4: Given understanding of entrepreneurship, be able to describe the major elements necessary for success, along with an understanding of the potential risks associated with starting a business venture. • Explain the steps to establish a new business. • Describe an entrepreneur. • Explain microloans and the management team. • Describe and explain GDP, communism, depression, recession, and capitalism. • Explain some of the reasons for the success and failure of small businesses. • Describe the forms of business ownership; know how they are used and the advantages and disadvantages of each one. • Describe a franchise, and know its advantages and disadvantages. • Define a business merger. • Describe the purpose of a limited liability company. • Describe what advantages a small business may have when entering a foreign country’s market. • Describe what the difference is between privately and publicly owned businesses. • Describe the reasons why some people become entrepreneurs. • Explain the steps that should be taken in the buying of a franchise. • Describe and explain SCORE. • Describe the aspects of a limited liability company.