Business 1301 Exam 1

When would picketing not be protected under the U.S. Constitution as freedom of speech? A)When it involves violence B)When its purpose is to demand fewer working hours C)When it negatively affects surrounding businesses D)When it creates traffic congestion

A)When it involves violence

Miguel is the manager of a local electronics store.. He reorders products from a local supplier once every three months. This is an example of _____. A)a programmed decision B)span of control C)span of management D)a nonprogrammed decision

A)a programmed decision

Dimitri is scheduled for a 360-degree performance review at Finnacle Corp. The advantage of this type of review is that: A)it gathers feedback from multiple perspectives. B)it is less time consuming than a traditional review. C)it involves less work for employees and managers. D)it results in outcomes untainted by personal disputes.

A)it gathers feedback from multiple perspectives.

Diverse employee teams tend to perform _____ and develop _____ than do homogeneous employee groups. A)more effectively; better solutions B)less effectively; worse solutions C)more effectively; worse solutions D)less effectively; better solutions

A)more effectively; better solutions

An advertising agency creates departments for creative personnel, media buyers, and account executives. This is an example of _____ departmentalization. A)geographical B)process C)product D)functional

D)functional

All of the following are major advantages of buying an existing business over starting a new business EXCEPT: A)less risk is involved. B)obtaining financing is often easier. C)existing suppliers and employees are in place. D)product or service is not known in the marketplace.

D)product or service is not known in the marketplace.

Nurturing customer loyalty by gathering knowledge of customer needs and preferences is an approach known as _____. A)transaction management B)financial management C)marketing management D)relationship management

D)relationship management

A company that emphasizes centralization: A)always uses process departmentalization. B)locates decision making at the lower levels of the management hierarchy. C)always uses functional departmentalization. D)retains decision making at the top of the management hierarchy.

D)retains decision making at the top of the management hierarchy.

The board of directors of a corporation is elected by the _____. A)bondholders and other creditors B)corporation's employees C)corporate officers D)stockholders

D)stockholders

The primary reasons people become entrepreneurs include all of the following reasons EXCEPT: A)to create one's own job security. B)to achieve financial success. C)to be one's own boss. D)to avoid taking risks.

D)to avoid taking risks

A company removes a profitable product from the market because it may be dangerous. This company is demonstrating _____. A)conflict of interest B)green marketing C)contango D)ethical behavior

D)ethical behavior

Michelle works for a large bank that recently merged with another financial institution. Word of layoffs has been discussed. Michelle is most likely to become an entrepreneur in order to _____. A)obtain job security B)avoid taking risks C)have employment as a cushion for failures D)guarantee financial success

A)obtain job security

Namesh recently sold his Ford Taurus to a personal friend. Namesh's sale of his automobile illustrates the right to _____. A)private property B)freedom of choice C)profit making D)set ground rules for competitive activity

A)private property

A foreign-made household appliance is popular and is highly competitive with the same product manufactured domestically. To give the domestic industry a better chance to operate profitably, the government restricts the number of these appliances that can be imported by applying a(n) _____. A)quota B)protective tariff C)embargo D)revenue tariff

A)quota

Rangsey was a foreman at Hi-Way Construction and discovered his company was deliberately using faulty materials for a project. Although Rangsey was worried about his family's financial security if he lost his job, he went to authorities and informed them of the potentially dangerous construction. Rangsey's action is called _____. A)whistle-blowing B)ethical allegations C)fear mongering D)ethical compliance

A)whistle-blowing

Which of the following statements is NOT true regarding businesses? A)Businesses are the economic pulse of a nation. B)Businesses are nonprofit organizations that provide services to the public. C)Businesses provide goods and services necessary to an economic system. D)Successful businesses seek to meet their social and ethical responsibilities.

B)Businesses are nonprofit organizations that provide services to the public.

Which of the following statements is true of leadership styles? A)The best leadership style is dependent on employee feedback. B)No single leadership style is best for every firm in every situation. C)A free-rein style of leadership is the most effective form of leadership. D)A democratic style of leadership is the best form of leadership.

B)No single leadership style is best for every firm in every situation.

_____ set guideposts by which managers define an organization's desired performance. A)Mission statements B)Objectives C)Opportunities D)Standards

B)Objectives

Which of the following statements best describes how entrepreneurs view failure? A)They worry that if they fail they'll never get another opportunity. B)They view failure as a learning experience. C)They enjoy risk and gambling. D)They are easily discouraged when things don't go as planned.

B)They view failure as a learning experience.

If a sporting goods manufacturer combines with a firm that operates sporting goods retail stores, this would be an example of: A)a conglomerate merger. B)a vertical merger. C)an employee ownership arrangement. D)a horizontal merger.

B)a vertical merger.

Amit, CEO of Charter Chemical, has recognized the financial opportunities in China. Amit has hired a foreign freight forwarder to coordinate selling Charter Chemical's products outside the United States. Charter Chemical is now involved in _____. A)overseas marketing B)direct exporting C)foreign licensing D)international production

B)direct exporting

The human resources of a firm refers to _____. A)top management executives B)everyone who works for the business C)full-time employees D)household consumers

B)everyone who works for the business

Emiko works in an organization that manufactures goods that is in compliance with the standards set by the Federal Trade Commission. All of its products have little or no ill effect on the environment and hence has earned itself a nice reputation in the industry. The company's marketing strategy is therefore developed on its reliance on safer and cleaner uses of resources. The company is practicing _____ marketing. A)loyalty B)green C)freebie D)guerrilla

B)green

Franchising offers all of the following advantages EXCEPT _____. A)training B)guaranteed level of profitability C)prior performance record D)a recognizable company name

B)guaranteed level of profitability

All of the following are typically part of the not-for-profit sector EXCEPT _____. A)labor unions B)hotels C)museums D)religious organizations

B)hotels

Fiscal policy involves: A)curbing political activities by limiting the spending on political campaigns. B)influencing economic activities by making decisions about taxes and government spending. C)controlling the flow of foreign currency by reducing exports and increasing imports. D)adjusting money supply by varying the exchange rate of the national currency.

B)influencing economic activities by making decisions about taxes and government spending.

Argonia imposes a total ban on importing sugar from Paldia. What type of trade restrictions has Argonia used? A)embargo B)revenue tariff C)quota D)protective tariff

B)revenue tariff

In addition to financial assessments, Dominic has arranged for his company to conduct a(n) _____ to evaluate activities that relate to social issues such as employment practices, environmental protection, and philanthropy. A)code of conduct B)social audit C)EEOC evaluation D)social responsibility inventory

B)social audit

The _____ of a coffee-growing company usually include its employees, customers, suppliers, and the community members where the company is located. A)corporate philanthropy B)stakeholders C)social audit D)social responsibility

B)stakeholders

A balance of payments deficit occurs when _____. A)exports exceed imports B)the net outflow of money from a country exceeds the net inflow of money from abroad C)imports exceed exports D)the net inflow of money from abroad exceeds the net outflows of money to other countries

B)the net outflow of money from a country exceeds the net inflow of money from abroad

Capitalism is founded on _____. A)the idea that government must own all factors of production B)the principles of a private enterprise system C)the social changes that followed the Industrial Revolution D)the idea that 80 percent of a nation's wealth should be owned by no more than 20 percent of its people

B)the principles of a private enterprise system

Santiago, a management trainee, completed a leadership profile in which he was identified as having Theory Y assumptions about people. Therefore, Santiago would believe that: A)the typical employee dislikes work and tries to avoid it whenever possible, so management must coerce him or her to get the job done. B)the typical person actually likes work and will seek and accept greater responsibility. C)the worker involvement is the key to increased productivity for the company and improved quality of work life for employees. D)the average person has relatively little ambition and wants security above all.

B)the typical person actually likes work and will seek and accept greater responsibility.

Vvey Inc., a pet accessories manufacturer, exports large quantities of its products to the United States and sells them at lower prices than it charges in its home market. Vvey Inc. could be accused of _____. A)embargo B)quota C)exporting D)dumping

D)dumping

Which of the following is true of monetary policy? A)It is a mechanism to control the flow of foreign currency into a nation by reducing its exports. B)It is dictated by international organizations like the United Nations. C)It uses variations in interest rate and money supply to influence a nation's economy. D)It uses taxation and spending to control economic activities

C)It uses variations in interest rate and money supply to influence a nation's economy.

Harlson Inc. is the sole supplier of cosmetic nose implants. Which of the following market structures does Harlson exhibit? A)Pure competition B)Oligopoly C)Monopoly D)Monopolistic competition

C)Monopoly

According to a supply curve, _____. A)as prices rise, quantity of a product supplied falls B)as prices fall, consumers will buy in smaller quantities C)as prices rise, the quantity of a product that is supplied also rises D)as prices rise, consumers will buy in larger quantities

C)as prices rise, the quantity of a product that is supplied also rises

A _____ is an organized attempt to keep the public from purchasing the goods or services of a company. A)strike B)walkout C)boycott D)lockout

C)boycott

The government of Oaksland, a less-developed country, has been spending the revenue generated from taxes and fees on infrastructural development, health care, and public utilities. Its expenditure has exceeded its revenue. This condition referred to as a _____. A)positive balance of payment B)break-even point C)budget deficit D)trade surplus

C)budget deficit

If the government of a country takes in more money than it spends, it is said to have a _____. A)balanced budget B)trade deficit C)budget surplus D)negative balance of payment

C)budget surplus

Naomi graduated from college in May and is currently looking for a job. This is an example of _____. A)seasonal unemployment B)cyclical unemployment C)frictional unemployment D)structural unemployment

C)frictional unemployment

The Coca-Cola Company designs its ads around the world to emphasize a common theme. These ads are modified only slightly for local markets. Coca-Cola is using which of the following strategies in its international operations? A)multidomestic strategy B)uniform pricing strategy C)global business strategy D)host country strategy

C)global business strategy

Star Airlines' purchase of Hispania Airlines combines the resources and capabilities of both firms to create the world's largest airline. The newly formed company is an example of a _____. A)vertical merger B)joint venture C)horizontal merger D)conglomerate company

C)horizontal merger

Timber Trails, a northwest lumber company, utilizes _____ as its primary production factor. A)capital B)entrepreneurship C)natural resources D)human resources

C)natural resources

The equilibrium price is established when the _____. A)demand curve and the supply curve are parallel to each other B)production cost of an item is greater than its selling price C)prevailing market price of an item is same as the price at which a consumer can buy the item D)opportunity cost of a product is greater than its production cost

C)prevailing market price of an item is same as the price at which a consumer can buy the item

Antonio is paid $55,000 per year as a research analyst. This type of compensation is called a(n) _____. A)employee benefit B)time wage C)salary D)wage

C)salary

A(n) _____ is another form of intrapreneurship initiated by an employee who conceives an idea, convinces top management of its potential, and then recruits human and other resources from within the company to turn that idea into a commercial project. A)angel investor B)debenture C)skunkworks D)wealth creation

C)skunkworks

When Target Inc. donates 5 percent of its federally taxable income to non-profit groups, the company is highlighting its _____. A)code of conduct B)social audit C)social responsibility D)altruism

C)social responsibility

Which of the following is an implication of demand curves sloping downward? A)Sellers will supply greater quantities of a good or service as its prices fall. B)Buyers will purchase greater quantities of a good or service as their incomes fall. C)Sellers will supply greater quantities of a good or service as taxes increase. D)Buyers will purchase greater quantities of a good or service as its price falls.

D)Buyers will purchase greater quantities of a good or service as its price falls.

Which of the following statements is true regarding employee-owned corporations? A)The number of employee-owned corporations is declining in the United States. B)Stock prices in employee-owned corporations typically decrease. C)Employee-owned corporations may not publicly trade their stock. D)Employees buy shares of stock in the company that employs them.

D)Employees buy shares of stock in the company that employs them.

Assume that a tech firm decides to invest some of its excess cash by acquiring a coffeehouse chain. This would be a _____. A)joint venture B)horizontal merger C)vertical merger D)conglomerate company

D)conglomerate company