BUS 151 - Practice Exam

The World Bank's emphasis has recently shifted from helping to build infrastructure of developing countries to:

Offering loans to help relieve their debt burden

Scientific management is based on economic incentives and the premise that there is "one best way" to perform any job

True

_____ is a permanent organization structure that combines functional and product departmentalization

A matrix structure

_____ is the process of ensuring that the organization's objectives are being met and of correcting deviations from the plan

Controlling

A team is made up of employees from about the hierarchical level, but different functional areas of organization is called a:

Cross-Functional team

_____ is the practice of giving a great deal of authority and decision-making freedom to lower level managers

Decentralization

Dissolving a partnership is easier than dissolving a sole proprietorship

False

The internal labor market is made up of all employees in an industry

False

____ involves presenting an accurate and positive image of the firm to those it is recruiting for jobs

Recruitment branding

The ____ of any country is measured by the output of goods and services people can buy with the money they have.

Standard of living

An entrepreneur is a person who opens and manages his or her own business

True

At the equilibrium point, quantity demanded equals quantity supplied

True

The distributive process by which the burdens and rewards that society has to offer are shared varies from society to society.

True

The three basic levels of the managerial hierarchy are:

top, middle, & supervisory

The ____ style of management is based on a pessimistic view of human nature and assumes that the average person dislikes work, will try to avoid work, prefers to be directed, avoids responsibility, and wants security above all else

Theory X

A business is an organization that strives for a profit by providing goods and services desired by its customers

True

Division of labor is process of dividing work into separate jobs and assigning tasks to workers

True

Human resource management is the process of hiring, developing, motivating, and evaluating people in order to achieve organizational goals

True

Micropreneurs are entrepreneurs who start small and plan to stay small

True

Motivation is basically a need-satisfying process

True

The higher the price of a good or service, the greater the amount a producer is willing to supply

True

_____ inflation is triggered by increases in production costs which increase the costs of final goods and services.

Cost-push

Ethical decisions making begins in the marketing department.

False

Having a global vision simply means having a willingness to sell outside one's national borders if, and when, the opportunity arises.

False

If the sole proprietorship acquires a legal business name. the owner then has limited liability

False

When Linda McAnem began Story, a New York-based computer services company, she ran it as a sole proprietorship. As a sole proprietor, McAnem:

Found the business to be easy and inexpensive to form

The three basic rolls of management are:

interpersonal, decisional, and informational

What is the primary difference between a good and a service?

A good is tangible, and a service is intangible

Laws have curtailed smoking, and as a result, the sale of cigarettes is down. Rather than fighting the law, the cigarette industry is looking for ways to take their business beyond cigarettes. Many experts believe that the cigarette producers have found a way around the law with the promotion and distribution of smokeless tobacco, which has shown consistent sales gains over the last decade. In terms of the social responsibility pyramid, at which level is the cigarette industry operating?

Legal

The original Hawthorne studies were set up to study:

Lighting

Ottens Flavors, Philadelphia, announced its combination with MK Flavors & Co., Mexico City. The Mexican operation will offer the U.S. based company an increased market presence in Central and South America. The new company will be renamed MK Ottens Flavors. MK Ottens Flavor was created through a(n):

Merger

Two co-workers at Nortel came up with an idea for renting software over the Internet. Nortel's top management liked the idea and set up a special division called Channelware devoted to taking the idea and making a new product. The establishment of a new company and assigning the employees in the division the task of making an idea a reality requires which management function?

Organizing

An employee who was more worried about having a safe work environment and a financially sounds pension plan than anything else would be most concerned with which of the needs in Maslow's hierarchy of needs?

Safety needs

Which is the following is an example of a trend in ethics and social responsibility?

Strategic giving

A company with a wide span of control and short chain of command is a ____ organization. A company with a narrow span of control and long chain of command is a ____ organization

flat; tall

Which of the following is an examples of a business?

All of the above (Jack & Jill, Walmart, Ford Motor Company, Lawson & Tyler Law Offices)

Hannah Li wants to quit her job as a secretary and start her own small business. She knows that she will be successful if she can find the right idea. Where can Li look for ideas or her new business?

All of the above (Problems she noticed in her old job, her interest in the history of Asian art, suggestions from her family, other businesses in other regions of the country)

Which of the following factors would most likely result in a shift in the supply curve?

An increase in the price of raw materials used in the production process

Kent Huston is a middle manager at a management consulting company. He has the ability to negotiate, impress the right people, and make the right connections. Huston has ____ skills.

Human relations

A(n) ____ is a tax levied by a nation on imported goods

Tariff

According to Herzberg, hygiene factors are:

Potential job dissatisfiers

Demography is the study of how people use their free time, how people integrate their hobbies and their vocations, and how people make their purchase decisions

False

Ethics training programs typically teach how to disguise unethical behavior and not how to avoid unethical behavior.

False

The first two steps in the selection process are the initial contact and preliminary interview

False

The major difference between a good and a service is how the producer uses the factors of production to create each

False

The European Union (EU) bans the importation of hormone-fed U.S. beef and bioengineered corn and soybeans on safety grounds although Americans eat this food everyday. This ban is so consumers in the EU will buy domestic beef and products made from domestically produced corn and soybeans. This ban is an example of

Subsidy

An increase in the price of crude oil could trigger cost-push inflation

True

Human rights include an individual's right to life, to freedom, and to the pursuit of happiness

True

One of the basic functions of management is controlling

True

Planning is the process of deciding what needs to be done to achieve organizational objectives; identifying when and how it will be done, and determining by whom it should be done

True

The tax that the United States imposes on imported carbon steel products is called a tariff.

True

Mandy Ewing has been working as a veterinarian's assistant for almost a year. Her friend recently told that her employee was in violation of the ____ because she was not being paid the minimum wage

Fair Labor Standards Act

A farmer's market where sixty farmers come weekly to sell the produce they grow in their gardens is an example of monopolistic competition

False