Chapter 1, 2, 3 Quizzes, Section 1 Test, Chapter 4, 5, 6 Quizzes, Section 3 Test, Chapter 7, 8, and 9 Quizzes, Section 2 Test, Chapter 11, 12, 13 Quizzes, Section 4 Test, Chapter 16 Quizzes, Chapter 15 Quizzes, Chapter 14 Quizzes

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If the dividend of a stock is $3.00 and its current price is $150.00, then its dividend yield is: 1. 3%. 2. 5%. 3. c8%. 4. 1%. 5. 2%.

Which of the following is a basis for using a matrix structure within an organization? 1. customers 2. revenue 3. products 4. geographic region 5. projects

Digital marketing excludes mobile channels. T or F

False

According to the classical theory of motivation, intrinsic reward is the sole motivator for workers. T or F

True

Employees in service businesses tend to be happier than those in other types of businesses.

True

NPR is a nonprofit organization because it does not have the fundamental purpose of earning a profit. T or F

True

The Dodd-Frank Act is an example of how the most basic ethical and social responsibility concerns have been codified by laws and regulations. T or F

True

Drive & Co. is an auto repair company with a reputation for quality service and being socially responsible. Drive & Co's reputation is an example of ?

an intangible resource

Which of the following is one of the possible results of trade deficits? 1. the success of business 2. a higher standard of living 3. the loss of jobs 4. the export of more services 5. the import of more products

The primary advantage of owning preferred stock is that it: 1. offers more business control than common stock. 2. yields higher profits than common stock. 3. is a cheaper investment than common stock. 4. is a safer investment than common stock. 5. offers more voting rights than common stock.

In a balance sheet, assets may exceed liabilities plus owners' equity. T or F

False

In a communist system, competition is restricted in basic industries but encouraged in other businesses. T or F

False

In a review of her company's assets, Beatrice found a list that included land owned by the company, the new office desks she had purchased recently, and several pieces of machinery that she expected to last for many years. The list Beatrice found was a list of current assets. T or F

False

The terms social responsibility and ethics can be used interchangeably. T or F

False

Procter & Gamble is a large corporation. Procter & Gamble's assets and liabilities are separate from its owners. T or F

True

What is considered a command economy?

communism

Antonia must resolve an urgent work issue but needs Graham's help. She has emailed and called him several times, but Graham doesn't respond to any of her communications. Antonia texts him as a last resort but he fails to return the communication. Graham's behavior is an example of ?

bullying

The US, Canada, Japan and Australia are examples of economic systems based on ?

capitalism

OPEC is an example of a

cartel

What is not an example of a service?

smartphone

Philanthropic contributions made by a business to a charitable organization represent the ?? dimension of social responsibility?

voluntary

Aditi wants to foster collaboration over collectivism, so she establishes a ?? which consists of members with complementary skills that have a common purpose. 1. matrix 2. hierarchy 3. panel 4. work team 5. focus group

Service industries now account for about half of the US economy. T or F

False They account for 80% or better.

At the heart of all business is the product. T or F

False

Businesses have the right to keep and use their profits as they choose, without limitations. T or F

False

Mark Zuckerberg, Oprah Winfrey, and Elon Musk are all entrepreneurs. T or F

True

Nestle, with headquarters in Switzerland, operates more than 400 factories around the world and receives revenues from Europe, North, Centra, and South America; Africa; and Asia. Nestle is an example of a

multinational corporation

In the context of operations management, which of the following is true of the transformation process? 1. it occurs only in manufacturing companies because they use tangible inputs 2. it involves replacing quality with productivity when manufacturing goods 3. it occurs in all organizations regardless of what they produce or their objectives 4. it includes the same methods and number of steps in all organizations 5. it focuses on producing outputs that are worth less than the combined costs of the inputs

Sebastian borrowed $75,000 from his stepmother to fund his new animation business. He said that she would be a partner in the business and would be entitled to a significant percentage of profits from the business. This is an example of: 1. bartering 2. franchising 3. equity financing 4. bootlegging 5. initial public offering

When a company sets a low price for a new product to discourage competition from entering the market, it is using the ________ strategy. 1. price skimming 2. psychological pricing 3. penetration pricing 4. even/odd pricing 5. symbolic pricing

Providing incentives to employees to motivate them toward achieving organizational objectives relates to the management function of: 1. Evaluating 2. Controlling 3. Benchmarking 4. Directing 5. Factoring

Which of the following is not an example of misusing company resources? 1. engaging in activities that are not necessary for the job. 2. spending an excessive amount of time in personal emails. 3. submitting persona expenses on company expense reports 4. shipping personal items using a firm's account number 5. using the company copier for personal use.

Before an organization can plan a course of action, it must first: 1. take corrective action 2. allocate and organize the required resources 3. determine what it wants to achieve 4. develop a blueprint of the plan 5. decide on the people to be involved in the plan

Whitney secures a license to use another's name in business and sell their products. This is called a: 1. collusion 2. mortgage 3. collateral 4. cartel 5. franchise

Why is customer relationship management important in a market orientation? 1. It tracks the rate at which trends, fashions, and tastes change. 2. It overlooks efficient production. 3. It shifts the focus from existing to new customer bases. 4. It reduces fixed costs for businesses. 5. It can result in loyal and profitable customers.

________ distribution exists when a manufacturer gives an intermediary the sole right to sell a product in a defined geographic territory. 1. Intensive 2. Relaxed 3. Selective 4. Sporadic 5. Exclusive

________ states that motivation depends not only on how much a person wants something but also on the person's perception of how likely he or she is to get it. 1. Theory X 2. Equity theory 3. Theory Y 4. Theory Z 5. Expectancy theory

________ stocks were responsible for the huge increase in stock prices in the period between 1982 and 2000. 1. Automobile 2. Banking 3. Clothing 4. Manufacturing 5. Technology

?? is the price at which the number of products that businesses are willing to supply equals the number of products consumers are willing to purchase at a point in time. 1. competition 2. maximum retail 3. equilibrium 4. bundled 5. discount

Hiten owns an outdoor gear store. He decides to announce a storewide sale. Generally, when a retailer announces a discount sale on all its products ?

consumers will demand more products

Harrold's Hardware offers its customers weekly mobile coupons for specific products. This is an example of: 1. personal selling. 2. advertising. 3. sales promotion. 4. buzz marketing. 5. publicity.

A company with a low return on assets: 1. does not need to file a tax return. 2. is making profits. 3. does not have debts. 4. is probably not using its assets very productively. 5. is lending its assets to other companies.

A strategic alliance is a partnership formed to create a competitive advantage on a worldwide basis. T or F

True

An ________ is the personal satisfaction and enjoyment that a person feels from attaining a goal. 1. intrinsic reward 2. extrinsic need 3. extrinsic reward 4. extrinsic motivation 5. intrinsic need

Hugo is the owner of a popular restaurant. He supervises all of the staff in the restaurant. Thus, Hugo's restaurant is using a ?? structure. 1. line 2. matrix 3. line-and-staff 4. multidivisional 5. web

Small businesses commonly employ ?? departmentalization. 1. functional 2. customer 3. product 4. geographical 5. line

When an organization has a structure in which decision-making authority is delegated as far down the chain of command as possible, it is called: 1. decentralized 2. overspecialization 3. a hierarchy 4. downsizing 5. a bureaucracy

Which of the following types of consumer marketing channels is used for the distribution of products like refrigerators, televisions, soft drinks, cigarettes, clocks, watches, and office products? 1. producer-to-wholesaler-to-retailer-to-consumer 2. indirect 3. producer-to-retailer-to-consumer 4. direct-from-producer-to-consumer 5. long

________ ratios provide information about how much debt an organization is using relative to other sources of capital, such as owners' equity. 1. Debt utilization 2. Quick 3. Asset utilization 4. Receivables turnover 5. Current

Minty Fresh tries to make its toothpaste available at every location where a consumer might desire to purchase it, including grocery stores, gas stations, and drugstores. Thus, Minty Fresh is distributing its toothpaste: 1. sporadically. 2. selectively. 3. intensively. 4. exclusively. 5. weakly.

Which of the following is a disadvantage of sole proprietorships? 1. stringent government regulations 2. absence of a tax-exempt retirement account 3. lack of continuity 4. lack of business control 5. sharing of profits with major stockholders

Which of the following is an element of the promotion mix? 1. place 2. distribution 3. advertising 4. product 5. price

________ is the most flexible of the promotional methods. 1. Sales promotion 2. Advertising 3. Personal selling 4. Publicity 5. Packaging

Corporations usually employ ________ to help sell their securities in the primary market. 1. capital budgeters 2. commercial banks 3. stockbrokers 4. investment banking firms 5. over-the-counter agencies

The amount of money budgeted for the purchase of long-term assets is called the ________ budget. 1. master 2. commercial 3. current 4. capital 5. fixed

A shoe company is looking to hire an intermediary who handles international transactions for other firms. The company is looking for a(n): 1. licensing agent 2. franchising agent 3. direct investor 4. contract manufacturer 5. export agent

In the context of corporations, what is a white knight? 1. an attempt to fend off a hostile takeover by selling stock at prices below the market value 2. a group of investors who have borrowed money to acquire a firm 3. an attempt to fend off a hostile takeover by raising capital through an initial public offering 4. an attempt to find off a hostile takeover by requiring the deal to be approved by a majority of shareholders 5. a more acceptable firm that is willing to acquire the firm threatened by a hostile takeover

Nonbusiness entities typically obtain revenue through: 1. the sale of goods. 2. the sale of services. 3. the rental of property. 4. investments. 5. donations.

Which of the following is a major difference between the Theory X and Theory Y views of management? 1. Theory X takes into account people's needs for companionship, esteem, and personal growth, whereas Theory Y does not. 2. Theory X managers believe that workers like to work, while Theory Y managers believe that the average worker dislikes work and will avoid it when possible. 3. Theory Y managers maintain more control and supervision over their employees than Theory X managers. 4. Theory Y managers believe that the average worker prefers to be directed, while Theory X managers believe that people will exercise self-direction and self-control to achieve objectives to which they are committed. 5. Theory Y takes into account people's needs for companionship, esteem, and personal growth, whereas Theory X does not.

Which of the following is least likely to be a reason used by consumers to rationalize piracy and online fraud? 1. They feel they just don't have the money to pay for what they want. 2. Because their friends engage in piracy and swap digital content, some users feel influenced to engage in this activity. 3. They enjoy the thrill of getting away with something with a low risk of consequences. 4. They feel being tech-savvy allows them to take advantage of the opportunity to pirate content. 5. They fear getting caught and arrested for online fraud.

Which of the following statements is true about e-mail communication. 1. email policies are illegal 2. all tasks are usually communicated via e-mail 3. e-mail sent from corporate accounts is property of the sender 4. employees and managers are increasingly using phone conversations instead of e-mail. 5. using work e-mail accounts to send personal information may be against company police

Which of the following statements is true of taxation in partnerships? 1. they pay taxes before distributing profits 2. they report their share of profits as partnership incomes 3. they are exempted from tax 4. they are taxed based on the number of shareholders 5. they pay taxes at the income tax rate for individuals.

What is an example of a product of monopolistic competition?

Asprin

In Norway, most citizens are able to afford basic necessities and some degree of comfort. This means Norway has a(n)

High Standard of Living

Following a devastating storm which resulted in a bad harvest, the prices of soy, wheat and corn in a country increased dramatically. Though the government attempted to intervene, efforts failed to arrest the rising prices. Based on this information, the country is undergoing ?

Inflation

Which of the following is a factor of production for a firm?

Land

Rhiannon, a long time employee for a healthy pet food company, conducts research about what customers want for their pets. She also tries to understand changes in competition and consumers. What major activity of business is Rhiannon responsible for?

Marketing

About half of households have a cell phone but no landline telephones. T or F

True

Adam is a senior product developer looking for a new job. He wants to work for a business that can introduce new products in a short period of time. Adam should work for a small business. T or F

True

Authentic leaders form long-term relationships with stakeholders. T or F

True

Digital media can improve communication within and between businesses. T or F

True

Disadvantages of product departmentalization are that it duplicates functions and does not focus on an organization's overall objectives. T or F

True

Internet markets are more similar to traditional markets than they are different. T or F

True

Inventory decisions, product deterioration, and theft control are tasks in the risk-taking function of wholesaling. T or F

True

Junk bonds offer high rates of interest. T or F

True

Kenta wants to start a business that is relatively easy and inexpensive to form. Because of the nature of his high-tech business, he also want the greatest degree of secrecy and the most freedom from government regulation. Kenta should choose a sole proprietorship as his form of business. T or F

True

Material-requirements planning can be, and often is, used in conjunction with just-in-time inventory management. T or F

True

Olivia loves her job as a software engineer. She views her company favorably, and she enjoys working with her colleagues. This demonstrates Olivia's morale. T or F

True

Proctor & Gamble is a large corporation. Proctor & Gamble's assets and liabilities are separate from its owners. T or F

True

Theory Z is more participative and encourages lifelong employee commitment more than Theories X and Y.

True

There is a negative relationship between regulatory actions and innovation in firms. T or F

True

Members of wholesale clubs like BJs, Costco, or Sam's club tend to buy items like toilet paper and groceries in bulk to save money. This is an element of ?

demand

A cotton candy company agrees to provide another company with its name, logo, methods of operation, advertising, products and other elements in return for a financial commitment and the agreement to conduct business in accordance with its standard of operations. What form of licensing is this?

franchising

Juan purchases a snack from Target. Upon inspection, he sees the snack is produced and sold by a Japanese company. This means the snack is a What kind of good?

imported

A certain country has a low per-capita income and is not economically advanced. This country would be considered a ?

less developed country

Rory is hired by a company to handle organizing, staffing, planning and controlling activities. These functions are most closely associated with ?

managers

Contractions of the economy lead to ?

recession

A snack subscription service wants to attract new customers. The company offers coupons to new users and a sweepstake on social media to get people to subscribe. These are all examples of?

sales promotion

The US imports more from China than it exports to China. This means the US has a

trade deficit

Aroma Candles Co. has different departments for wholesale buyers and consumer buyers. This illustrates ?? departmentalization. 1. customer 2. seniority 3. geographical 4. functional 5. product

Businesses that do now have hard-to-reach financial objectives are more likely to experience unethical behavior. T or F

False

Cultural differences, such as variations in body language and personal space, usually have an almost negligible impact on international business. T or F

False

Labor unions create a barrier to achieving safety in the workplace. T or F

False

Lawonda participated in a focus group for a new product. This type of research is secondary data since it came through Lawonda. T or F

False

McDonald's introduces the Karubi Mac in Japan, specifically designed for Japanese consumers. This is an example of a globalization strategy. T or F

False

Nations with a high GDP have a higher standard of living. T or F

False

The customer value of a product refers to anything a buyer must give up to obtain the benefits the product provides. T or F

False

The process of analyzing the needs of the business and selecting the fixed assets that will maximize its value is called financial planning. T or F

False

The two kinds of stock issued by corporations are common stock and dividend stock. T or F

False

Today, savings and loan associations focus almost exclusively on real estate lending and accept only savings accounts. T or F

False

When the Federal Reserve Board (the Fed) buys securities, it decreases the money in circulation. T or F

False

An up-and-coming video game developer is told she must include a warning label on her new first-person shooter video game. Lime many others in the entertainment industry, the developer claims that requiring warning labels on video games violates her which amendment right?

First Amendment

Cory often felt belittled by comments her boss made. On multiple occasions, her boss criticized Cory's work in front of the entire department, making her feel like a target. This is an example of a hostile environment. T or F

True

Disadvantages of product departmentalization is that it duplicates functions and does not focus on the organization's overall objectives. T or F

True

Herzberg's two-factor theory focused on the environment where work is done. T or F

True

Muhammad owns a flower business out of his home. He employs one person to help prepare flower arrangements, but Muhammad manages the business. All of the profits from the business goes to Muhammad and is taxed at an individual rate. His business is likely to be a sole proprietorship. T or F

True

One disadvantage of general partnerships is that the general partners have unlimited liability for the debts incurred. T or F

True

Guha starts a new job as a programmer at a telecommunications company. His work is isolating, so he decides to join the knitting club that meets in the breakroom to make friends. Guha is satisfying a physiological need. T or F

False

Net income is the total profit (or loss) after most expenses, with the exception of taxes, have been deducted from revenue. T or F

False

Nonbusiness entities typically obtain revenues through the sale of their assets. T or F

False

Once idea development is completed, the next step in the product development process is product development. T or F

False

Penetration pricing is more flexible than price skimming because it's less difficult to raise a penetration price than to lower a skimming price. T or F

False

Product is the most flexible element of the marketing mix. T or F

False

Scheduling is the sequence of operations through which the product must pass. T or F

False

Takumi was optimistic that he would get the promotion he wanted because of his work experience. Because of this, Takumi was motivated to work hard. This demonstrates equity theory. T or F

False

Technological advances and an increase in service exports have eliminated opportunities for small companies to expand their operations abroad. T or F

False

The 200 companies that make up the Dow Jones Industrial Average account for 75% of the value of the NYSE. T or F

False

The Association of Southeast Asian Nations (ASEAN) effectively united Singapore, Britain, and Japan into one Market. T or F

False

The Credit CARD Act of 2009 was passed to give card issuers the right to raise interest rates without restrictions. T or F

False

The Federal Reserve insures individual bank accounts. T or F

False

The Internet has eliminated opportunities for businesses to forge relationships with customers. T or F

False

The WTO agreements were rejected by most of the world's trading nations. T or F

False

Trying to determine customers' true needs is difficult because no one fully understands what motivates people to buy things. T or F

True

________ describes how marketers use digital media to find out the opinions or needs of potential markets. 1. Crowdsourcing 2. Networking 3. Groupthink 4 Collecting 5. Surveying

?? are legal documents that the state issues to companies based on information the company provides in the articles of incorporation. 1. articles of partnership 2. articles of proprietorship 3. state bonds 4. corporate charters 5. corporation contracts

The right to What assures consumers that their interests will receive full and sympathetic consideration when the government formulates policy?

be heard

The effective translation of product names can be crucial to success in foreign markets because of ?

cultural barriers

A certain country has low per-capita income and is not economically advanced. This country would be considered a

less-developed country.

Gold is an example of fiat money. T or F

False

A mobile tool that marketers have found useful is ________ which are scanned by smartphones and open a link, video, or image on the phone's screen. 1. QR codes 2. digital wallets 3. a Facebook pixel 4. podcasts 5. SMS messages

A primary reason for using standardization is to: 1. reduce production costs 2. foster creativity 3. increase the choices available for customers 4. support variability of the resources used 5. reduce product quality

For free enterprise to exist, individuals and businesses must have the right to make decisions about how a business operates without regulation. T or F

False

All of the following are examples of industrial services except: 1. paper supplies. 2. marketing research. 3. exterminating. 4. security. 5. legal services.

An advantage of line structure in organizations is that it: 1. enables managers to make decisions quickly 2. gives all employees the power to veto a decision, irrespective or hierarchy 3. does not require managers to possess a wide range of knowledge and skills 4. allows managers to specialize in the one activity in which they are knowledgeable 5. allows managers facing a decision to consult with many superiors

________ includes the owners' contributions to a company along with income earned by the company and retained to finance continued growth and development. 1. Owners' equity 2. Owners' assets 3. Owners' liabilities 4. Revenue 5. Profits

If consumers do not pay off their entire credit card balance, they: 1. will have their purchased goods repossessed by the creditors. 2. have to pay interest on the total paid and unpaid amount. 3. will get a rebate from the card issuer. 4. have to pay interest on the unpaid amount. 5. will receive interest on the paid amount.

Apollo, the warehouse manager for a fulfillment company, divides labor into small, specific tasks. He assigns each employee to do a single task. For example, one person picks products from the shelf, one person packs the order, and one person labels the shipment. This process refers to: 1. job rotation 2. crowdsourcing 3. specialization 4. centralization 5. outsourcing

Bookish Publishing is a public corporation. With the desire for flexibility to make decisions for restructuring Bookish Publishing's operations, its managers bought all the stock, thus: 1. converting it to a nonprofit 2. making it quasi-public 3. taking it private 4. making an initial public offering 5. shutting it down

Brett determines how many supplies and goods are needed and keeping track of quantities on hand, each item's location, and who is responsible for it within an organization. The process Brett is in charge of is called: 1. facility planning 2. succession planning 3. inventory control 4. affirmative action 5. benchmarking

Business products such as lumber, cotton, and iron ore are classified as: 1. component parts. 2. accessory equipment. 3. raw materials. 4. major equipment. 5. supplies.

What is the extent to which businesses met the legal, ethical, economic, and voluntary responsibilities place on them by their various stakeholders?

Corporate citizenship

What indicates the income level of "average" Americans. It is useful in determining how much "average" consumers spend and how much money Americans are earning.

Per Capita Income

Studies have found a direct relationship between social responsibility and What in business?

Profitability

In the country Freedonia, income and social services are distributed equally among its citizens. However, they must pay high taxes, and they experience high levels of unemployment. Freedonia is an example of a(n) ? nation.

Socialist

Which member of the EU decided to leave the trade bloc?

The UK

Two countries have been in an escalating trade war related to furniture. One country announces a government order to indefinitely prohibit the trade of furniture with the other country. This is known as a

trade embargo

Total quality management (TQM involves decreasing employee participation in quality control. T or F

False

The IMF promotes trade among member nations by eliminating trade barriers and fostering financial cooperation. T or F

True

The balance sheet presents a "snapshot" of an organization's financial position at a given moment. T or F

True

According to Herzberg's theory, which of the following is a hygiene factor? 1. achievement 2. responsibility 3. salary 4. involvement 5. recognition

McGregor's Theory Y corresponds to: 1. Herzberg's hygiene factors. 2. Herzberg's motivational factors. 3. the equity theory. 4. the traditional view of management. 5. the humanistic view of management.

Which of the following best exemplifies political, legal, and regulatory forces in a marketing environment? 1. economic conditions in a country 2. computers and technological advances in a country 3. opinions and attitudes of the public 4. purchasing power of the people 5. political actions of interest groups

Which of the following is one of the difficulties faced by small-business owners? 1. high cost of formation 2. limited scope for innovation 3. bureaucratic decision-making 4. inability to focus on specific groups of customers 5. worries about employee problems or competition

A compressed workweek is most likely to: 1. reduce a company's operating expenses. 2. increase instances of virtual teams. 3. add more tasks to a job than of treating each task as separate. 4. allow employees to move from one job to another. 5. shorten working hours.

When the Federal Reserve Board sells government securities, the: 1. property taxes increase. 2. money supply and economic activity decrease. 3. money supply in the market becomes stable. 4. money supply and economic activity increase. 5. property taxes decrease.

Maga Corp. has departments for marketing, sales, finance, customer service, human resources, and production. Mega Corp. is organized by: 1. product 2. territory 3. function 4. geographic region 5. customer

You Create It Inc. creates building blocks for children. Each individual piece can be assembled in different configurations. This is an example of: 1. standardization 2. reverse engineering 3. flexible manufacturing 4. modular design 5. lean manufacturing

________ accounting involves analyzing financial documents in search of fraudulent entries or financial misconduct. 1. Financial 2. Management 3. Operational 4. Forensic 5. Tax

________ are legal documents that the state issues to companies based on information the company provides in the articles of incorporation. 1. Articles of partnership 2. Articles of proprietorship 3. State bonds 4. Corporate charters 5. Corporation contracts

Social responsibility is an area of business with issues that ? 1. stays constant due to consistent societal demands. 2. are easy to resolve 3. will eventually be completely resolved. 4. change occasionally in response to society's demands 5. change constantly in response to society's demands

LDCs are characterized by high per-capital income. T or F

False

What term refers to a business's obligation to maximize it's positive impact and minimize it's negative impact on society?

social responsibility

Marco is in the Navy and is a member of the Navy's bank, which is controlled by its depositors. He has a share account. This financial institution is most likely to be a(n): 1. credit union. 2. savings and loan association. 3. commercial bank. 4. insurance company. 5. federal bank.

To gain market share in the US, Thailand begins selling electric scooters at less than what it costs to produce them. This is an example of ?

dumping

Louisa borrowed money from a bank to expand her business. Her direct cost of borrowing this money is known as her ________ expenses. 1. interest 2. selling 3. general and administrative 4. research and development 5. depreciation

What is the first function of management? 1. Planning 2. crowdsourcing 3. directing 4. factoring 5. staffing

Which of the following is a hallmark of the Hawthorne effect? 1. decrease in productivity regardless of supervision 2. increase in productivity regardless of physical conditions 3. productivity remaining the same despite an increase in efficiency 4. increase in productivity as pay increased 5. decrease in productivity as work hours increased

Which of the following is true of line structure in comparison with the different forms of organizational structure? 1. It slows down decision making. 2. It is the simplest organizational structure. 3. It requires managers to specialize in any one particular skill. 4. It has an ambiguous chain of command. 5. It is common in large, multinational organizations.

Which of the following statements is true about corporations? 1. Many smaller firms typically elect to incorporate as C corporations. 2. They account for the majority of all U.S. sales and income. 3. Only mega-companies can incorporate. 4. They can't sue or be sued in court. 5. They can't enter into contracts with individuals.

Tennessee Quality Labs purchases kaolin clay powder, salicylic acid, and other materials to make skincare products for its customers. In this scenario, the materials are an example of a ________ product. 1. technical 2. convenience 3. business 4. specialty 5. consumer

At the weekly management meeting, Dakota is recognized by his boss for a job well done on a recent project. This is an example of an intrinsic reward. T or F

False

Digital media monitoring and evaluation are not important when it comes to maximizing resources in social media marketing. T or F

False

Anna works for a shoe manufacturer. A superior pressures Anna to ask her former employer for a copy of an internal document. Anna believes her boss wants her to engage in theft of trade secrets. This ethical issue is related to: Business Relationships Plagiarism Communications Social Responsibility Conflicts of interest

Business Relationships

Distribution channels for consumer products and business products are the same. T or F

False

What was the first communist country to make strong economic gains by adopting capitalist approaches to business?

China

Adam Neumann, former WeWork CEO, made money on real estate properties he owned and then leased back to WeWork. Investors were concerned the arrangement was an example of: Bribery Conflict of Interest Intimidating behavior Misuse of company time Bullying

Conflict of Interest

What measures changes in the price of goods and services purchased for consumption by typical urban households?

Consumer Price Index

What is defined as the activities that individuals, groups and organizations undertake to protect their rights as customers?

Consumerism

Behavior modification is the most widely discussed application of equity theory, the theory that behavior can be strengthened or weakened through the use of rewards and punishments. T or F

False

Both the NYSE and Nasdaq are not-for-profit organizations. T or F

False

Harry regularly posts reviews of restaurants on Yelp and Google, sharing his dining experience and uploading photos. This is referred to as user-generated content. T or F

True

Money is a medium of exchange. T or F

True

A fixed tariff differs from an ad valorem tariff because an ad valorem tariff is

based on the value of an item

The wheat market in one particular country has a large number of sellers and buyers, and there is no difference in the products sold by each seller. As a result the prices are determined by ?

forces of supply and demand

A country has an extensive network of railroads and highways. Additionally, the country has strategically located ports in all of its major coastal cities. These all support its superior commercial distribution systems which support its economic activities. This means the country has a strong

infrastructure

All of the following are true of direct selling except: 1. it requires a large investment in inventory 2. those who do it have the opportunity to recruit other distributors 3. the cost of getting involved is low 4. it can be done part-time 5. those who do it receive commissions on sales

Allowing some employees to work at home part-time is: 1. a flexible scheduling strategy. 2. a type of job enrichment. 3. an example of job enlargement. 4. likely to increase overhead costs for businesses. 5. ideal for all companies.

U.S. money includes subtle colors in addition to the traditional green, as well as enhanced security features, such as a watermark, security thread, and color-shifting ink. Which of the following characteristics of money is being protected by these measures? 1. difficulty to counterfeit 2. portability 3. stability 4. acceptability 5. divisibility

Which of the following is the largest pension fund? 1. Social Security 2. a corporate insurance plan 3. a Roth individual retirement account 4. an individual retirement account 5. a money market fund

Which of the following options is likely to be most effective for retaining employees who are trying to juggle their work duties with other responsibilities and needs? 1. Job sharing 2. Job rotation 3. Job enrichment 4. Job hopping 5. Job enhancement

Ultimate Optics, an eyewear company, sells prescription glasses online. The company uses its email newsletter to communicate with customers about its new online consultation service to help customers find the perfect frames. This is an example of how Ultimate Optics: 1. allows its customers to directly compare prices with the competition. 2. enhances the value of products by providing extra benefits. 3. keeps its store in business. 4. gets the most money possible out of its customers. 5. gives its employees too many responsibilities.

What is the main supplier of external financing to small businesses? 1. friends 2. banks 3. venture capitalists 4. the small business administration 5. family members

Sunshine Inc., a sunscreen company, is developing a piece of wearable technology that will alert users when they need to reapply sunscreen. The company is in the process of developing its first prototype that should reveal the intangible attributes the product possesses as perceived by the consumer. Sunshine Inc. is currently in the ________ stage. 1. commercialization 2. idea development 3. product development 4. test marketing 5. business analysis

Taraneh wants to create a tutoring center for high school students. She develops a precise statement of the rationale for her business and a step-by-step explanation of how the business will achieve its goals. This is known as a(n) 1. promissory note. 2. business agreement. 3. business plan. 4. article of partnership. 5. article of incorporation.

The cash return as a percentage of a stock's price is called its: 1. capital in excess of par value. 2. par value. 3. dividend yield. 4. retained earnings. 5. price-earnings ratio.

Which of the following is a function of the Public Company Accounting Oversight Board (PCAOB)? 1. It provides relief to banks during financial crisis. 2. It ensures that accounting firms do not separate their consulting and auditing businesses. 3. It makes rules and policies for accounting firms and businesses. 4. It overlooks the accounts department of the federal government. 5. It certifies individuals to provide accounting services.

Which of the following is a reason that credit cards are a popular substitute for cash payments? 1. They exempt users from paying transaction fees to merchants. 2. They provide tax benefits. 3. They are accepted by merchants around the world. 4. They allow merchants to avail unlimited credit. 5. They allow users to attain interest-free credit.

Which of the following is a true statement about a socialist system of economy? 1. individuals own and operate the majority of businesses that provide goods and services. 2. consumers have a wide choice of goods and services. 3. central planning determines what basic goods and services are produced. 4. all economic decisions are made without government intervention. 5. competition, supply, and demand determine which goods and services are produced and how they are produced.

Integrity Health Alliance, a health care company, allows its employees to work at home a few days per week, staying connected via email, phone, and videoconference calls. This arrangement is called: 1. job rotation. 2. flextime. 3. a compressed workweek. 4. telecommuting. 5. job enlargement.

Laws regarding workplace safety are enforced by: 1. FTC 2. Consumer Bill of Rights 3. EPA 4. OSHA 5. Corrupt Practices Act

Uncommon Confections is a bakery that produces all gluten-free baked goods to target customers who have trouble digesting gluten but still want to be able to enjoy tasty treats. What type of segmentation is this company using? 1. demographic segmentation 2. lifestyle segmentation 3. geographic segmentation 4. benefit segmentation 5. psychographic segmentation

Vroom Company, a carmaker, partners with The Glass Company on a one-time project to develop a new type of impenetrable glass. What type of partnership is this? 1. sole proprietorship 2. conglomerate 3. limited 4. joint venture 5. cooperative

Asset utilization ratios measure: 1. the performance of the firm relative to others on a per-share basis. 2. how much income a firm generates relative to its assets, equity, and sales. 3. how much debt the firm is using relative to other sources of financing. 4. the speed with which a company can turn its short-term assets into cash to pay off its short-term debts. 5. how well a firm uses its assets to generate each $1 of sales.

Which of the following is a major difference between credit cards and debit cards? 1. Debit cards offer a purchase "grace period," while credit cards do not. 2. It is easier for computer hackers to steal credit card information than debit card information. 3. Credit cards result in immediate payment, while debit card payments take longer to process. 4. Debit cards provide a "paper trail," while credit cards do not. 5. Debit cards do not have the same level of protection as credit cards.

Advertising is direct, two-way communication with buyers and potential buyers. T or F

False

All groups are teams, but not all teams are groups. T or F

False

Amy is a private accountant, therefore she cannot be a certified public accountant (CPA). T or F

False

An S corporation is taxed just like any other corporation. T or F

False

Laws regarding workplace safety are enforced by:

OSHA

Alan's financial advisor suggests he invest in a special type of mutual fund that offers a higher rate of interest than bank money market accounts. The fund in question invests in short-term debt securities issued by governments and large corporations. This refers to a money market fund. T or F

True

Anna makes decisions about the use of her company's resources. She plans, organizes, leads, and controls the organization's activities so as to reach its objectives. Based on this information, Anna is a manager. T or F

True

Arya wants to intern in the finance department for a major retailer. Since Arya will be learning about finance which refers to all activities concerned with obtaining money and using it effectively. T or F

True

It is necessary for nonprofits, government institutions, and even people to market themselves to spread awareness and achieve desired outcomes. T or F

True

Marlon is an entrepreneur who sells homemade goods such as custom aprons and kitchen tools. Since his business is done exclusively online and he makes goods at home, he saves on building and other brick-and-mortar costs, which allows him to pass that savings on to his customers. Reducing prices to customers is an element of ?

competition

Which is true about less-developed countries? 1. LDCs are characterized by high per-capita income. 2. Businesses should not invest in LDC's because they are not profitable. 3. LDCs represent a potentially huge and profitable market for many businesses. 4. Many countries in Europe are LDCs 5. In LDCs, consumers tend to purchase more nonessential products.

Which of the following is true about the role of the Federal Trade Commission's Bureau of Consumer Protection? 1. It doesn't investigate unfulfilled holiday delivery promises by online shopping sites or scholarship scams. 2. It protects companies from unfair consumer demands. 3. It protects consumers against unfair, deceptive, or fraudulent practices. 4. The Division of Enforcement investigates consumer violations of laws. 5. It is divided into three divisions.

IKEA has been criticized in the past for failing to issue furniture recalls in a timely manner. In the realm of business ethics, this is an issue related to: Financing Product Design Communications Conflict of Interest Business Relationships

Communications

Which of the following involves the activities and organizational processes adopted by businesses to meet their social responsibilities? Code of Ethics Corporate Citizenship Economic Responsibility Social dominance Organizational ethics

Corporate Citizenship

Which of the following statements is true of business ethics?Ethical conduct does not have any impact on business relationships Ethical issues are not affected by social perceptionsEthical conflicts do not evolve into legal disputes Business ethics does not go beyond legal issues Ethical issues are not limited to for-profit organizations

Ethical issues are not limited to for-profit organizations

What is the closest thing the world has to an international central bank?

IMF

Luca's father is the CEO of a textile company. His father tells him that the company may file for bankruptcy in the near future and suggests Luca sell off his company stock. Luca follows the advice and cashes out. This behavior is an example of?

Insider Trading

The IMF promotes trade among member nations be eliminating trade barriers and fostering financial cooperation. T or F

True

An ethical issue is an identifiable problem, situation, or opportunity that requires a person or organization to choose from among several actions that may be evaluated as ethical or unethical. T or F

True

The US imports more from China than it exports to China. This means the US has

a trade deficit

Acme corporation makes a strong effort to meet or exceed the legal, ethical, economic and voluntary responsibilities expected from its stakeholders. This company is demonstrating ?

corporate citizenship

A US cosmetics company released a brightening face powder in a foreign country using fair-skinned models. Activists in the foreign clamied this ad reinforced negative racial stereotypes and called for a boycott against the cosmetics company. This is an example of What kind of barrier?

cultural

The fact that environmental responsibility requires trade-offs means that it: instigates trade relations facilitates international competition promotes the practice of fair trade imposes costs on both business and the public helps in generating profits

imposes costs on both business and the public

A cleaning supply company sells a new spray cleaner. Consumer awareness is very limited for the new spray, and profits are negative because the company has spent money on research and development as well as advertising. This product is most likely in the ________ stage of the product life cycle. 1. introductory 2. growth 3. intermediate 4. maturity 5. decline

A company wants to use Twitter to build relationships with its customers. All of the following are ways businesses can do this except: 1. ignoring customer complaints to keep its Twitter feed positive. 2. posting polls to get customer feedback on pizza flavors. 3. posting announcements about promotions and deals. 4. posting humorous tweets and one-liners. 5. sharing short promotional videos with customers.

A company wants to use Twitter to build relationships with its customers. All of the following are ways businesses can do this except: 1. ignoring customer complaints to keep its Twitter feed positive. 2. posting polls to get customer feedback on pizza flavors. 3. sharing short promotional videos with customers. 4. posting humorous tweets and one-liners. 5. posting announcements about promotions and deals.

A company's assets that are used or converted into cash within the course of a calendar year are: 1. current assets. 2. current liabilities. 3. fixed assets. 4. long-term assets. 5. equity.

A compressed workweek is: 1. a four-day or shorter period in which employees work 40 hours. 2. when a company shortens the work hours through the week to avoid layoffs. 3. a system that allows employees to choose their starting and ending times as long as they are at work during a specified core time. 4. when two people do one job. 5. a system that allows employees to choose to work part of a week from home.

A disadvantage of the line structure is that it: 1. requires managers to possess a wide range of knowledge and skills 2. creates work duplication and confusion 3. makes decision making excessively complicated for managers 4. lacks a clear chain of command 5. provides no direct lines of authority

A prominent computer company allows buyers to select how much memory they want and what software they want installed. Though most parts of the laptops can be altered to meet the buyers' specifications, their structural body remains the same. This is an example of 1. mass customization. 2. standardization. 3. benchmarking. 4. lean manufacturing. 5. crowdsourcing.

A software company regularly sends marketing communications via email to its customers. At the bottom of its emails, the company always includes a message inviting customers to reply and express their needs and wants directly to the firm. Which of the following characteristics of digital marketing does this scenario best describe? 1. interactivity 2. accessibility 3. connectivity 4. addressability 5. control

Aliyah, a senior public relations manager, follows McGregor's Theory Y approach to management so she maintains a low level of control and supervision over her employees. Aliyah is likely to assume that: 1. workers will exercise self-direction and self-control. 2. her subordinates avoid responsibilities. 3. workers are not capable of self-control. 4. the average worker has little ambition. 5. the average worker prefers to be directed.

Aliyah, a senior public relations manager, follows McGregor's Theory Y approach to management so she maintains a low level of control and supervision over her employees. Aliyah is likely to assume that: 1. workers will exercise self-direction and self-control. 2. her subordinates avoid responsibilities. 3. the average worker has little ambition. 4. workers are not capable of self-control. 5. the average worker prefers to be directed.

All of the following are elements of creating a corporation except: 1. the procedure for chartering a corporation is the same in all states 2. a corporation's name must end in "company," "corporation," "incorporated," or "limited" to show that the owners have limited liability. 3. each state has a specific procedure for incorporating a business. 4. the new corporation's name cannot be similar to that of another business 5. most states require a minimum of three incorporators.

All of the following are examples of the activities marketing performs to accomplish objectives and generate exchanges EXCEPT 1. Jim doesn't want his car anymore, so he leaves it on the side of the road with a "free" sign on it. 2. Mattress Liquidators offers customers a deal; if they can take the mattress themselves, they can pay for it in four monthly installments. 3. Gwen uses FedEx to ship her handmade jewelry to her customers. 4. Matt packages fruit for the grocery store, labeling organic fruits to distinguish them from non-organic fruits. 5. Julie conducts a student focus group to see what students think of her company's new textbook.

All of the following are items that are classified as fixed assets except: 1. temporary investments. 2. equipment. 3. reputation. 4. trademarks. 5. corporate "goodwill."

Alpha Cut, a company that makes lawnmowers, has a small warehouse, so the company's procurement department orders small quantities of materials as and when they are required. This scenario best illustrates: 1. just-in-time inventory management 2. mass customization 3. continuous-manufacturing systems 4. crowdsourcing 5. contract-manufacturing

An engineering firm borrows $200,000 from a bank and pays back $220,000. In this scenario, the $200,000 represents the: 1. principal. 2. collateral. 3. interest. 4. down payment. 5. trade credit.

An online sticker store uses an analytics tool on its website to track what products customers view most often and how long customers spend on the website. Which of the following characteristics of digital marketing does this scenario best describe? 1. accessibility 2. interactivity 3. control 4. connectivity 5. addressability

Anish owns a company that sells high-end bicycles. He hires accountants to summarize the information from his company's business transactions into a financial statement. Which of the following is a reason Anish would use a financial statement? 1. to report externally to the Internal Revenue Service 2. to pinpoint areas of employee weakness 3. to pinpoint individual employee successes 4. to determine who to promote 5. to determine the types of customers the company has

Archie checks his investment app and sees a corporation he invested in has distributed profits in the form of cash payments to stockholders. What is this cash payment called? 1. dividends 2. bonds 3. common stocks 4. preferred stocks 5. retained earnings

Ayana, Nia, and John decide to start a new law firm, so they draft articles of partnership. All of the following are items they should include except: 1. the total money and assets of each partner's estate. 2. how much each partner is allowed to withdraw. 3. the duration of the agreement. 4. the authority and responsibility of each partner. 5. the business's name, purpose, and location.

Before buying a new smartwatch, Christopher goes to several stores and searches online to compare competitive products in terms of price, features, quality, and style. In this scenario, the watch is an example of a ________ product. 1. shopping 2. specialty 3. luxury 4. convenience 5. capital

Before it was repealed, the ________ Act prohibited commercial banks from being in the insurance and investment banking business. 1. Glass-Steagall 2. Gramm-Leach-Bliley 3. Sarbanes-Oxley 4. Celler-Kefauver 5. Dodd-Frank

Beth is a business professional in the communist country in which she lives. Which of the following statements is true about a communist economy? 1. It is characterized by the people (through the government) owning and operating most businesses. 2. it provides scope for the production of a large variety of goods and services 3. it relies on supply and demand to make decisions about the pricing and production of goods. 4. it encourages private ownership of the means of production. 5. it encourages the free market and competition

Bulk Grocers sells items in large volumes, which allows it to sell items for less per unit. This is known as a ________ discount. 1. quantity 2. reference 3. promotional 4. seasonal 5. temporary

Burgerama Inc., a popular fast-food chain, is famous for its fries and hash browns. It is one of the few fast-food chains to exclusively use the potatoes from its own farms. However, its potatoes can be harvested for only three months of the year. Which of the following marketing functions can Burgerama employ to achieve time utility and satisfy year-round demand for its exclusive fries and hash browns? 1. storing 2. grading 3. selling 4. financing 5. buying

Business law refers to 1. the laws and regulations that govern the conduct of business. 2. formalized rules and standards that describe what a company expects of its employees 3. the extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their stakeholders. 4. An identifiable problem, situation, or opportunity that requires a person to choose from among several actions that may be evaluated as right or wrong, ethical or unethical. 5. a business's obligation to maximize its positive impact and minimise its negative impact on society.

Business law refers to: 1. the laws and regulations that govern the conduct of business. 2. formalized rules and standards that describe what a company expects of its employees 3. the extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their stakeholders. 4. An identifiable problem, situation, or opportunity that requires a person to choose from among several actions that may be evaluated as right or wrong, ethical or unethical. 5. a business's obligation to maximize its positive impact and minimise its negative impact on society.

Cash, investments, accounts receivable, and inventory are: 1. current assets. 2. long-term liabilities. 3. current liabilities. 4. long-term assets. 5. retained earnings.

Chandni owns a frozen yogurt shop. Due to fluctuations in seasonal demand, her business has struggled. If Chandni fails to repay her bank loan, what will the lending institution do to recover its loss? 1. claim and sell the collateral or mortgage 2. claim and rent out the business 3. claim and sell all the owner's personal property 4. sell stock in the business 5. take over the business and keep profits

Coins are used primarily to provide: 1. divisibility. 2. inimitability. 3. stability. 4. portability. 5. acceptability.

Computech Computers, a private corporation, became a public corporation when it sold its stock to raise the money it required for the costs associated with international expansion. As a result, anyone could buy, sell, or trade the stocks of the company. This process of obtaining financing is referred to as: 1. initial public offering 2. factoring 3. franchising 4. angel investment 5. bartering

Daniel and Mark both collect baseball cards. Daniel has a valuable and rare card that Mark has been wanting for a long time. What must Mark do to convince Daniel to part with this card? 1. Mark must offer Daniel something he values enough to give up his valuable and rare card. 2. Mark must find a clever way to steal Daniel's valuable and rare card. 3. Mark must trick Daniel into giving up his valuable and rare card. 4. Mark must simply have something valuable to exchange for Daniel's valuable and rare card. 5. Mark must hide the fact that he wants Daniel's valuable and rare card.

Daring is a clothing store that is contemplating whether to sell its products in brick-and-mortar stores or to sell them at its online store. To which of the following elements in the marketing mix does this decision most closely relate? 1. distribution 2. price 3. product 4. process 5. promotion

Diagonal communication 1. occurs when individuals from different units and departments within an organization communicate 2. is the traditional flow of communication between employees and customers. 3. flows from lower organizational levels to higher ones 4. occurs with communication between peers and colleagues within a department 5. is an informal method of communication that can improve decision making within an organization

Diya, a senior finance manager for a chain of sporting goods stores, informs her subordinates of the organization's new policies and code of conduct. This is an example of ?? communication. 1. downward 2. diagonal 3. horizontal 4. upward 5. informal

Downsizing is an effective way to: 1. gain the advantages of small businesses 2. increase the management layers 3. increase organizational tasks 4. reduce entrepreneurial spirit among employees 5. gain employee trust

Dr.Eye and Eye Tears are two eyedrop companies. They promote similar products that differ in some characteristics such as packaging but satisfy the same consumer need. The competitive environment is most likely to be: 1. monopolistic competition 2. socialist 3. pure competition 4. an oligopoly 5. a monopoly

During his weekly trip to the grocery store, Diego purchases a gallon of milk to eat with cereal. The gallon of milk is an example of a(n) ________ product. 1. convenience 2. shopping 3. specialty 4. accessory 5. processed

During the ________ stage, various elements of the marketing mix must be developed for testing such as copyrights, tentative advertising copy, packaging, labeling, and descriptions of a target market. 1. product development 2. idea generation 3. test marketing 4. idea development 5. product commercialization

Economic expansion occurs when: 1. an economy is growing and people are spending more money 2. prices being to rise and incomes begin to fall 3. employment levels decline over time 4. a nation's standard of living drops dramatically 5. fewer goods and services are produced than consumer demand

Emery manages the customer service team for an airline. She uses digital media to store knowledge, information, and records in a management information system, so her employees can access it when they are faced with problems to solve. Which key business function is Emery focused on improving in this scenario? 1. communication 2. omni-channel retailing 3. job satisfaction 4. popularity 5. adaptability

Every year, Jordan buys a calendar to keep track of his appointments and events. However, this year, he bought a smartphone that has a built in calendar, so he did not buy a new paper calendar. Which psychological variable does this scenario most closely describe? 1. learning 2. perception 3. attitude 4. personality 5. motivation

Fitness Gym provides its clients with personal training sessions, small group exercise classes, fitness machines and weights to use, and a separate kids' gym with day care specialists, so members can bring their children to the gym with them. These items are most closely associated with the ________ aspect of the marketing mix. 1. product 2. process 3. price 4. promotion 5. distribution

Fly High Drones, a corporation owned and managed by volunteers, delivers medical supplies to remote populations in Africa. Its focus is not on earning a surplus but on serving the community. Fly High Drones is an example of a: 1. nonprofit corporation 2. domestic corporation 3. quasi-public corporation 4. limited partnership 5. private corporation

For greater accessibility, Hakin Inc. has placed its products at every popular superstore. The convenience provided by the company is an example of reducing ________ costs. 1. nonmonetary 2. overhead 3. fixed 4. variable 5. tangible

Gerald is assessing the appropriateness of a proposed option to resolve his publishing company's plagiarism issue. When considering the consequences of the option, he should: 1. consider its impact on the organization as a whole 2. think narrowly about the one department most affected by the decision 3. choose the option that partially addresses the problem 4. limit the evaluation to objective procedures 5. disregard the practicality of the options available

Giovanni was laid off from his software engineering job. Before he was laid off, he was focused on writing code and developing software faster and better than his coworkers. Since the layoff, Giovanni has shifted his focus to finding a new source of income. What does this scenario highlight about laid-off workers in terms of Maslow's hierarchy of needs? 1. They shift their focus from high-level esteem needs to the need for security. 2. They focus on social needs, which are especially important after a significant life event. 3. They will keep their focus on the higher-level need. 4. They revert all the way back to focusing on physiological needs. 5. They shift their focus from high-level self-actualization needs to the need to be accepted by others.

Google can use web searches done through its search engine to learn about customer interests. This underlies the ________ aspect of digital communication. 1. accessibility 2. interactivity 3. connectivity 4. addressability 5. control

Hakim Goals for his story that included satisfying his customers while making enough money to open a second store. Which component of a goal did Hakim leave out? 1. Hakim Forgot to include a time frame in which the goal is to be achieved. 2. Hakim Didn't leave anything out. 3. Hakim Forgot to include what his stores purpose and basic philosophy are. 4. Hakim Forgot to include exactly how much profit he wanted to make. 5. Hakim Forgot to include the overall strategy or course of action he would use to fulfill his mission.

Harrold & Sons makes cough drops. It uses a facility layout in which the workers remain in one location, and the cough drops move from one worker to another. Each person in turn performs their required tasks. Harrold & Sons is using a ________ layout. 1. product 2. web 3. fixed-position 4. project 5. process

Henry, the owner of a furniture company, reviews the organization's balance sheet but wants more information about the firm's financial position. Henry should look at the ________ which explains how the company's cash changed from the beginning of the accounting period to the end. 1. statement of cash flows 2. revised balance sheet 3. income statement 4. master budget 5. profit-loss statement

Highland Green is a group of luxury hotels that caters exclusively to high-end customers, who form a small part of the total hotel market. The hotel has incorporated all possible luxuries to satisfy these customers. The marketing approach employed by Highland Green best exemplifies 1. niche marketing. 2. mass marketing. 3. multisegment marketing. 4. the contingency approach. 5. the total-marketing approach.

Home Decor Emporium sells rugs, art, lamps, and other decorative pieces to homeowners, so they can express their personal styles in their homes. This is an example of: 1. business-to-consumer marketing. 2. market segmentation. 3. total marketing. 4. target marketing. 5. business-to-business marketing.

In a free-market system, 1. all economic decisions are made without government intervention. 2. modified capitalism is the norm. 3. laissez-faire capitalism is absent. 4. government regulates business. 5. central government planning determines what goods and services satisfy citizens' needs.

In regard to the Federal Reserve Board's credit controls, which of the following can the Fed do? 1. determine how large a down payment individuals and businesses must make on credit purchases of expensive items 2. determine who can and cannot have credit cards 3. raise and lower the prices for items that are commonly purchased with credit cards 4. determine whether a business can or cannot accept credit card payments 5. prevent certain items from being purchased with credit cards

In the context of a business's objectives, which of the following is an ineffective practice? 1. Isolating them from the business's mission 2. Keeping them elaborate or simple 3. Stating them in such a way that they are measurable 4. Using them to make tactical plans for the business 5. Using them to establish criteria to evaluate performance

In the context of operations management, which of the following is true of the transformation process? 1. It occurs in all organizations regardless of what they produce or their objectives. 2. It occurs only in manufacturing companies because they use tangible inputs. 3. It includes the same methods and number of steps in all organizations. 4. It focuses on producing outputs that are worth less than the combined costs of the inputs. 5. It involves replacing quality with productivity when manufacturing goods.

Ivette has a high credit score. She applies for a loan at the bank to start a new business, and the bank gives her a loan based on her good reputation and previous credit rating alone. Which type of bank loan does this scenario best describe? 1. an unsecured loan 2. a line of credit 3. a secured loan 4. a collateral loan 5. a prime rate loan

Jasmine runs a store that sells commercial kitchen equipment. She started the business with her own money and solely manages the day-to-day operations of the business. Which of the following is true in this scenario? 1. Jasmine can easily dissolve the business whenever she wants. 2. Jasmine's business will be constantly regulated by federal and state laws. 3. Jasmine's business will be subjected to double taxation 4. Jasmine will have to share her profits with stockholders 5. Jasmine must file articles of incorporation to start her business.

Jin sells markets essential oils through face-to-face sales presentations in people's homes. This is known as: 1. direct selling. 2. wholesaling. 3. intermediary selling. 4. in-store retailing. 5. direct marketing.

Kaito is a certified public accountant who provides accounting services to individuals and businesses. Which of the following rights does his certification give him? 1. the right to express, officially, an unbiased opinion regarding the accuracy of a client's financial statements 2. the right to publicly express a biased opinion about the accuracy of a firm's financial statements 3. the right to express his personal opinion in all financial matters 4. the right to handle every firm's reports by different rules 5. the right to limit the types of assets commercial banks can buy

Kiera, an entrepreneur, borrows money from a large bank to acquire Energy Solutions, a small oil and gas company. She promises to repay the bank using the assets of Energy Solutions as collateral. In this scenario, Kiera is involved in a: 1. leveraged buyout 2. horizontal merger 3. conglomerate merger 4. vertical merger 5. poison pill

Malachi is a manager at a home goods store. He subscribes to Theory X. In managing his employees, he is most likely to: 1. ignore his employee's needs for personal growth. 2. avoid micromanaging his employees. 3. ignore the security needs of his employees. 4. trust his employees. 5. ignore the physiological needs of his employees.

Many employees of a prominent university conduct their financial transactions through a financial institution, which is also owned by them. This financial institution is most likely to be a(n): 1. credit union. 2. federal bank. 3. commercial bank. 4. insurance company. 5. savings and loan association.

Many people are under the impression that misconduct is more rampant than it really is because the mass media 1. focus more on misconduct than good ethical conduct 2. focus equally on misconduct and good ethical conduct 3. rarely report on the ethical conduct of business 4. focus more on good ethical conduct than misconduct. 5. support businesses by giving the public the impression that misconduct is not widespread.

Maren wants to open a third-party logistics firm. She has enough funds to start the business, but not enough to run it effectively. What is one thing she can do to provide working capital to her company? 1. He can refrain from drawing a full salary. 2. He can invest his profits into other businesses. 3. He can invest in the stock market. 4. He can use his profits to pay his salary. 5. He can work to find venture capitalists to support his business.

Marvin and Troy co-own a ski rental shop in Colorado for profit. This is an example of a: 1. partnership 2. c corporation 3. cooperative 4. quasi-public corporation 5. sole proprietorship

Neema is a manager for a television manufacturer. She manages the logistics, quality, and productivity of the service department. Thus, Neema is a(n) 1. operations manager. 2. finance manager. 3. sales manager. 4. marketing manager. 5. human-resource manager.

Nolan who works in operations management oversees the ?? process through which inputs are converted into outputs. 1. transformation 2. raw materials 3. intangible 4. planning 5. uniformity

Nuwa has saved up a substantial sum of money. She is interested in investing her money in a mutual fund that invests in short-term debt securities issued by governments and large corporations. She also wants to be able to write checks as needed and reinvest interest income from her investments. Which of the following types of institutions would Nuwa most likely choose for her investments? 1. a money market fund 2. a brokerage firm 3. a pension fund 4. a money market bank account 5. an insurance company

Ollie manages a custom manufacturing company. He is concerned about accomplishing the work—producing custom components for customers—with the least cost and waste possible. His primary managerial concern is: 1. efficiency. 2. effectiveness. 3. delegation. 4. hiring. 5. expertise.

Petra owns a pizza shop. Guests can build their own custom pizzas using a variety of ingredients such as pepperoni, mushrooms, and green peppers. From an operations perspective, the pizza he sells to customers is a(n): 1. output 2. inventory 3. component part 4. transformation 5. input

Plentiful Auto Parts manufactures engines, brakes, mufflers, and batteries and sells them to car manufacturers. This is an example of: 1. business-to-business marketing. 2. business-to-consumer marketing. 3. target marketing. 4. market segmentation. 5. total marketing.

Production and operations managers are concerned with: 1. transforming resources into goods and services. 2. planning, pricing, and promoting products. 3. identifying and efficiently using sources of financing. 4. recruiting new employees and developing employee programs. 5. managing an entire market segment of a business.

Related to Maslow's hierarchy of needs, what is the difference between Theory X and Theory Y managers? 1. Theory X managers focus on physiological and security needs, while Theory Y managers address Maslow's high- level needs as well as physiological and security needs. 2. Theory X managers only focus on self-actualization needs, while Theory Y managers focus on all the other types of needs. 3. Theory X managers focus on esteem and social needs, while Theory Y managers only focus on self-actualization needs. 4. Theory X managers focus on the high-level needs, while Theory Y managers focus on the low-level needs. 5. Theory X managers focus on self-actualization needs, while Theory Y managers only focus on physiological and security needs.

Richard is using the double-entry bookkeeping system to account for all of his business transactions. All of the following could be specific asset categories for Richard except: 1. loans. 2. cash. 3. tools. 4. inventory. 5. equipment.

Rosalyn is a social media manager. Each week she schedules posts for Instagram and Facebook and reports engagement data to her manager. One day, she decides to compare the company's engagement data against the company's top competitor and shares the insights with her boss. Rosalyn's boss is so impressed, she asks Rosalyn to complete the competitor analysis once a week in addition to her other tasks. This scenario best describes job: 1. enlargement. 2. sharing. 3. reduction. 4. enrichment. 5. rotation.

Service experience tends to vary each time because: 1. of the human element 2. goods are superior to services 3. of the tangible element inherent in delivering services 4. services are not labor-intensive 5. services are less customized than tangible products

Starbucks created the Starbucks Achievement Plan that offers eligible employees full tuition to earn a Bachelor's degree in partnership with Arizona State University. This action represents the ?? dimension of social resonsibility. 1. voluntary 2. ethical 3. legal 4. economic 5. corporate citizenship

The face value of a bond in its initial sales price is typically: 1. $1,000. 2. $10,000. 3. $100. 4. $1. 5. $10.

The following provides direction for all managerial decisions and establishes criteria for evaluating performance within organizations? 1. Objectives 2. Minutes 3. Protocols 4. Statutes 5. Referendums

The process of spreading the costs of long-lived assets, such as buildings and equipment, over the total number of accounting periods in which they are expected to be used is called: 1. depreciation. 2. gross profit. 3. budget. 4. net income. 5. revenue.

The products of service providers tend to be more customized than those of manufacturers because: 1. different customers have different needs. 2. the requirements of all customers are the same. 3. technological innovations have reduced variability. 4. there is more capital required in service provision. 5. goods cannot be customized.

The term ________ refers to all raw materials, components, completed or partially completed products, and pieces of equipment a firm uses. 1. inventory 2. capital reserve 3. share 4. intangible 5. input

The two biggest stock markets in the United States are the: 1. New York Stock Exchange and the Nasdaq market. 2. Chicago Stock Exchange and the International Securities Exchange. 3. Southeast Regional Stock Exchange and the Chicago Board Options Exchange. 4. American Stock Exchange and the New York Stock Exchange. 5. American Stock Exchange and the Nasdaq market.

Theory Z was first described by: 1. William Ouchi. 2. Abraham Maslow. 3. Lillian Gilbreth. 4. Douglas McGregor. 5. Frederick Taylor.

TriTops has placed its products strategically in areas where the population density is high. The segmentation done by TriTops is an example of ________ segmentation. 1. geographic 2. behavioristic 3. demographic 4. ethnographic 5. psychographic

Trung and Dylan are business partners. Their company, Grow iO, develops pesticide-resistant seeds. They initially started the business with their savings. However, now the company plans to expand its operations, and the required amount of capital cannot be raised through savings or reinvesting profits. Thus, the partners have decided to sell stock in their business to family members, friends, and employees. Which of the following sources of capital have Trung and Dylan planned to use for the expansion of their business? 1. equity financing 2. bootstrapping 3. factoring 4. mortgaging 5. debt financing

What is the rationale behind job enlargement strategies? 1. Jobs are more satisfying as the number of tasks performed by an individual increases. 2. Jobs are more satisfying as the opportunity for job sharing increases. 3. Jobs are more satisfying when employees are provided with greater perks. 4. Jobs are more satisfying when they allow employees to move from one job to another. 5. Jobs are more satisfying when employees are offered flextime.

What is true of economic expansion? 1. The standard of living rises because more people are employed and have money to spend. 2. there is a decline in production, employment and income 3. there is a decline in spending 4. the prices stagnate during this period 5. consumer spending is low and business output is sharply reduced.

What is upward communication? 1. communication that flows from lower to higher levels of an organization. 2. communication about organizational goals to employees 3. communication between customers and employees 4. communication between different units and departments within an organization 5. communication between peers and colleagues

What of the following is a characteristic of economic depression? 1. business output is sharply reduced 2. consumer spending is high 3. buying power of consumers is significantly increased 4. unemployment levels are low or almost absent. 5. individuals' incomes increase at the same pace as rising prices.

What was the ultimate result of the Hawthorne studies? 1. They marked the beginning of a concern for human relations in the workplace. 2. They failed to incite change. 3. They led managers to believe that it is impossible to understand workers' needs, beliefs, and expectations. 4. They led to the belief that nothing will motivate workers who are not intrinsically motivated. 5. They led to companies providing better physical work conditions to increase productivity.

When Dr. Eicholz, a local veterinarian, retired, she sold her clinic to a young, new veterinarian. What is likely to be the greatest challenge to this new veterinarian will face initially in taking over the business? 1. assuring customers that the business will continue to meet their needs. 2. figuring out the best way to distribute profits 3. preventing the business from experiencing double taxation 4. fending off government regulation 5. replacing the outdated equipment with new equipment

Which of the following demographic segments should both small retailers and small-service providers specializing in ethnic products target? 1. immigrants 2. drivers 3. baby boomers 4. Generation X 5. echo boomers

Which of the following is a difference between limited liability companies (LLCs) and S corporations? 1. LLCs are very simple to run, whereas S corporations are not. 2. LLCs provide limited liability to owners, whereas S corporations do not. 3. LLCs require the members to hold meetings, whereas S corporations do not. 4. LLCs are found only in the United States, whereas S corporations are present worldwide. 5. LLCs are taxed as partnerships, whereas S corporations are taxed as corporations.

Which of the following is a long-term debt instrument that requires the issuer to repay the lender in regular interest payments until the loan is repaid on or before the specified maturity date? 1. a bond 2. a certificate of deposit 3. a Treasury bill 4. trade credit 5. commercial paper

Which of the following is an example of a diversified, nonfinancial firm? 1. Elgort Construction helps customers purchase its expensive equipment through its finance subsidiary. 2. Hot Cakes Bakery offers a pension plan for employees through an independent life insurance company. 3. Morgan & Brooke, an insurance company, protects its clients against financial losses. 4. Cash Cow Bank allows customers to write checks and borrow money. 5. Aero Engineering Credit Union is owned and controlled by its depositors.

Which of the following is an ineffective practice to follow while implementing the marketing concept? 1. adopting a product orientation instead of a consumer orientation to deliver the right good or service 2. involving the entire organization instead of only the marketing department in achieving customer satisfaction 3. using the customer's perception of value as the ultimate measure of work performance 4. striking a balance between achieving organizational objectives and satisfying customers 5. adapting products and services according to the changing consumer needs and wants

Which of the following is an ineffective practice to follow while implementing the marketing concept? 1. adopting a product orientation instead of a consumer orientation to deliver the right good or service 2. using the customer's perception of value as the ultimate measure of work performance 3. striking a balance between achieving organizational objectives and satisfying customers 4. adapting products and services according to the changing consumer needs and wants 5. involving the entire organization instead of only the marketing department in achieving customer satisfaction

Which of the following is likely to be a reason for some US companies to bring their outsourced production processes back to the US? 1. high cost of transporting products to the home country 2. increase in labor turnover rates in the US 3. increasing labor unionization in the US 4. increased gov't regulation of business in the US 5. increasingly strict enforcement of intellectual property rights in Asian countries.

Which of the following is one of the possible results of trade deficits? 1. the loss of jobs 2. the import of more products 3. the success of business 4. higher standard of living 5. the export of more services

Which of the following is stated by the expectancy theory? 1. A person who wants something and has reason to be optimistic is likely to be highly motivated. 2. Employees need to be involved in all aspects of company decision making to keep them motivated. 3. In a fair situation, a person receives rewards proportional to the contribution he or she makes to the organization. 4. How much people are willing to contribute to an organization depends on their assessment of the fairness, or equity, of the rewards they will receive in exchange. 5. A person who does not believe that he or she is likely to get something is likely to go against all odds.

Which of the following is true of a piece of equipment when it is fully depreciated? 1. It has a zero value on the firm's balance sheet. 2. It needs to be auctioned off. 3. It can no longer be used. 4. It is economically worthless. 5. It will still appear on the firm's balance sheet at the full purchase price.

Which of the following is true of the role of ethics and social responsibility in business? 1. Ethical conduct and corporate social responsibility are linked to increased profits. 2. business misconduct is likely to be widely excused if it enhances firms' profits. 3. investors and retired employees remain unaffected in case of scandals. 4. businesses' reputations depend solely on their profits. 5. businesses do not need to consider social values in the contemporary scenario

Which of the following statements describes the portability of money? 1. For money to function as a medium of exchange, it must be easily moved from one location to the next. 2. Money must be very difficult to counterfeit. 3. To be effective, money must be readily acceptable for the purchase of goods and services and for the settlement of debts. 4. Money must be stable and maintain its declared face value. 5. For money to serve effectively as a measure of value, all items must be valued in terms of comparable units.

Which of the following statements is true? 1. It costs more to produce pennies and nickels than their face value. 2. The U.S. government never redesigns currency. 3. Many countries are creating new large-denominated bills that are used in illegal trade such as drugs or terrorism. 4. Metal coins have a shorter useful life than paper bills. 5. Paper currency is far less portable than metal.

Which type of commercial loan offers an advantage when interest rates are falling but represents a distinct disadvantage when interest rates are rising? 1. a floating-rate loan 2. a flexible loan 3. an unsecured loan 4. a secured loan 5. a non-variable loan

Why has outsourcing become a controversial practice in the United States? 1. Many jobs have moved overseas where certain tasks can be accomplished for lower costs. 2. The outsourced products end up having sub-standard quality because their producers lack expertise. 3. delegation of several processes leaves the outsourcing company with much less time to concentrate on its core business processes. 4. outsourcing empowers the outsourcing company with more managerial control 5. the losses incurred out of the hidden costs of outsourcing are making companies go bankrupt.

William manages a popular smoothie shop where he supervises 40 employees. Because he manages a large number of employees, fewer management layers are needed. As a result, what is most likely true of William's duties, in comparison with managers in tall organizations? 1. he performs more administrative duties 2. he spends more time communicating with middle management 3. he spends less time working with subordinates 4. he spends less time supervising subordinates 5. he performs fewer administrative duties

________ accounts are similar to interest-bearing checking accounts but with more restrictions. 1. Money market 2. Current 3. Certificates of deposit 4. Savings 5. Negotiable Order of Withdrawal

________ are also called debentures and are not backed by specific collateral. 1. Unsecured bonds 2. Commercial certificates of deposit 3. Trade credits 4. Treasury bills 5. Dividends

________ are businesses that protect their clients against financial losses from certain specified risks in exchange for a fee called a premium. 1. Insurance companies 2. Finance companies 3. Commercial banks 4. Investment banks 5. Mutual savings banks

________ are reinvested in the assets of the firm and belong to the owners in the form of equity. 1. Retained earnings 2. Dividend yields 3. Transaction balances 4. Trade credits 5. Secured bonds

________ includes the owners' contributions to a company along with income earned by the company and retained to finance continued growth and development. 1. Owners' equity 2 Owners' assets 3. Owners' liabilities 4. Revenue 5. Profits

________ is a virtual peer-to-peer currency that can be used to make a payment via smartphone. 1. Bitcoin 2. Speedy cash 3. Google Wallet 4. Square Cash 5. Zynga coin

________ underwrites new issues of securities for corporations, states, and municipalities needed to raise money in the capital markets. 1. An investment banker 2. A cashier 3. A private accountant 4. A certified management accountant 5. A certified public accountant

dividing work into small units and assigning it to specific individuals is a task related to the management function of: 1. Organizing 2. Recruiting 3. Controlling 4. Evaluating 5. Staffing

which of the following provides direction for all managerial decisions and establishes criteria for evaluating performance within organizations? 1. Objectives 2. Minutes 3. Protocols 4. Statutes 5. Referendums

18th-century economist Adam Smith illustrated improvements in efficiency in manufacturing units through the application of: 1. downsizing 2. specialization 3. decentralization 4. standardization 5. crowdsourcing

?? are typically owned by many individuals and organizations who own shares of the business in the form of stocks. 1. limited partnerships 2. corporations 3. general partnerships 4. franchises 5. sole proprietorships

?? can be considered as both an advantage and a disadvantage of a sole proprietorship. 1. transparency 2. taxation 3. continuity 4. secrecy 5. liability

?? measures changes in the prices of goods and services purchased for consumption by typical urban households. 1. trade balance 2. consumer price index 3. GDP 4. per capita income 5. worker productivity

?? plans, a type of plan for meeting objectives, establish the long range objectives and the overall course of action by which a firm fulfills its mission. 1. Functional 2. Strategic 3. Tactical 4. Operational 5. Static

A cell phone factory can produce a maximum of 37,000 phones each day. This refers to the ?? of the manufacturing unit. 1. variability 2. capacity 3. utility 4. agility 5. perishability

A checking account at a credit union is commonly referred to as: 1. a negotiable order of withdrawal account. 2. a share draft account. 3. a savings account. 4. an individual retirement account. 5. a share account.

A finance company that buys other companies' accounts receivable for less than they are worth and assumes the responsibility for collecting the debt is known as a: 1. conciliator. 2. factor. 3. collateral. 4. brokerage. 5. lockbox.

A kitchen knife that stays sharp for the life of the blade and never needs to be sharpened is an example of: 1. level of quality. 2. consistency of quality. 3. proper packaging. 4. product labeling. 5. customer service.

A major social responsibility for businesses is proving ?? for all employees regardless of their sex, age, race, religion, or nationality. 1. premium health care 2. equal opportunities 3. an employee stock ownership plan 4. flexible paid time off 5. more free time

A nation's ?? can be best defined as the difference in value between its exports and imports. 1. balance of export 2. balance of trade 3. trade surplus 4. trade deficit 5. balance of import

A restaurant is able to identify customers the moment they walk in the door because of beacons it uses that communicate with nearby smart devices. Which of the following characteristics of digital marketing does this scenario best describe? 1. independence 2. addressability 3. connectivity 4. interactivity 5. control

A third-party logistics firm employs specialized a computer system to actually guide and control the transformation process of inputs into outputs. This refers to: 1. a transaction processing system 2. computer-assisted manufacturing (CAM) 3. computer-assisted design (CAD) 4. the in-basket technique 5. a turnkey project

According to Herzberg's theory, the presence of which of the following factors is likely to motivate employees though their absence may not result in dissatisfaction? 1. supervision 2. achievement 3. security 4. working condition 5. salary

According to Herzberg's theory, which of the following is a hygiene factor? 1. recognition 2. salary 3. achievement 4. responsibility 5. involvement

According to Maslow's hierarchy of needs, the need for love, companionship, and friendship and the desire for acceptance by others are a part of ________ needs. 1. esteem 2. social 3. security 4. self-actualization 5. physiological

Adam is the CEO of a large oil and gas company. After severe losses, he met with other leaders at the company to discuss what to do next. His human resources manager suggested that the company should reduce its workforce to help the company cut costs and continue working on current projects. In this scenario, which of the following strategies is Adam's company planning to use? 1. crowdsourcing 2. downsizing 3. outsourcing 4. franchising 5. offshoring

Aditi's company is currently organized into departments such as marketing and production. She wants to reorganize for greater efficiency. How would this company most likely organize the work? 1. around individuals 2. into teams 3. to other managers 4. around traditional departments 5. to independent consultants

All of the following are examples of the activities marketing performs to accomplish objectives and generate exchanges EXCEPT: 1. Matt packages fruit for the grocery store, labeling organic fruits to distinguish them from non-organic fruits. 2. Jim doesn't want his car anymore, so he leaves it on the side of the road with a "free" sign on it. 3. Julie conducts a student focus group to see what students think of her company's new textbook. 4. Mattress Liquidators offers customers a deal; if they can take the mattress themselves, they can pay for it in four monthly installments. 5. Gwen uses FedEx to ship her handmade jewelry to her customers.

All of the following are reasons organizing is important to except it: 1. improves competitiveness 2. eliminates synergy 3. establishes lines of authority 4. improves communication 5. helps avoid duplication of resources

An accountant offers accounting services to an office supply firm in exchange for office supplies and equipment. Which of the following sources of funding does this scenario best illustrate? 1. equity financing 2. bartering 3. trade credit 4. line of credit 5. mortgaging

Andy is a business professional in a country that promotes the individual right to own property, earn profits, make decisions about business operations, and choose productivity systems. This country's economy is based on: 1. communism 2. free enterprise 3. the free market 4. socialism 6. mixed economies

Anna is an environmental activist who avoids buying paper-based products unless they are made from recycled paper. Which psychological factor is primarily responsible for Anna's buying behavior in this scenario? 1. social role 2. attitude 3. self-efficacy 4. social class 5. culture

Because consumers associate a drug's price with potency, some pharmaceutical companies use the ________ strategy to price their over-the-counter drugs. 1. discounting 2. symbolic/prestige pricing 3. penetration pricing 4. price dipping 5. even/odd pricing

Bernie manages all activities involved in obtaining and managing raw materials and component parts for a computer company, such as hard drives and memory cards, in addition to managing finished products, packaging them, and sending them to customers. These activities are part of: 1. reverse engineering 2. supply chain management 3. value chain management 4. benchmarking 5. operations control

Bookish Publishing is a public corporation. With the desire for flexibility to make decisions for restructuring Bookish Publishing's operations, its managers bought all the stock, thus: 1. making it quasi-public. 2. taking it private. 3. making an initial public offering. 4. converting it to a nonprofit. 5. shutting it down.

Business has not been good for Jake's bakery. Jake has a poor credit rating, and his business's credit limit has been exhausted. Which of the following institution would be the lender of last resort for Jake? 1. an insurance company 2. a finance company 3. a mutual fund provider 4. a brokerage firm 5. an investment firm

Daily Shop was criticized by the community for its use of plastic bags. In view of the concerns raised by the members of the community, the supermarket's management made the decision to start using biodegradable bags. This decision has been influenced by ________ forces. 1. competitive 2. social 3. technological 4. economic 5. political

Determining an organization's objectives and deciding how to accomplish them is which management function? 1. Crowd sourcing 2. Planning 3. Staffing 4. Nearshoring 5. Factoring

Diego feels he has achieved some measure of respect as a cosmetic surgeon. Now, Diego focuses on being the best he can be. Which need is Diego trying to meet? 1. esteem needs 2. self-actualization needs 3. security needs 4. social needs 5. physiological needs

Digi-Time Inc. measures and evaluates the quality of its smart watches against the market leader in the wearables industry. Wherever there is a gap, Digi-Time Inc. tries to bridge the gap. This is known as: 1. licensing 2. benchmarking 3. crowdsourcing 4. sampling 5. nearshoring

Digital communication makes it easier for businesses to do all of the following except 1. sell goods and services online. 2. interface face-to-face with customers. 3. conduct marketing research. 4. advertise. 5. provide and obtain price information.

During an economic recession, the United Provinces of Utopia government provided loans and took ownership positions in the country's primary financial institution, Bank Co. What economic system does this exemplify? 1. socialism 2. modified capitalism 3. communism 4. pure capitalism 5. laissez-faire capitalism

During the ________ stage, various elements of the marketing mix must be developed for testing such as copyrights, tentative advertising copy, packaging, labeling, and descriptions of a target market. 1. product commercialization 2. product development 3. idea generation 4. idea development 5. test marketing

Earth-moving equipment, stamping machines, and robotic equipment used on auto assembly lines are examples of: 1. industrial services. 2. major equipment. 3. component parts. 4. supplies. 5. accessory equipment.

Edmonton Lighting is a store that sells light fixtures. They employ 12 permanent workers as well as 6 temporary workers to cover the holiday season traffic with enough office furniture to accommodate up to 20 employees. The company has invested $5,000 in Treasury bills and has $1,000 in outstanding trade credit. Which of these is a fixed asset? 1. Treasury bills 2. office furniture 3. temporary workers 4. permanent workers 5. trade credit

Endless Thread, a t-shirt company, invites customers to submit their apparel ideas, which can then be voted on by other users for the chance to be created. Which of the following characteristics of digital marketing does this scenario best describe? 1. control 2. connectivity 3. accessibility 4. addressability 5. privacy

Fatima and Joseph own and operate a dairy farm. They want to obtain a small-business loan after suffering from poor sales during the summer months, but their rural bank lacks assets sizable enough to counter the risks involved with small-business loans. Which of the following problems is his business facing? 1. competition 2. undercapitalization 3. bureaucracy 4. lack of product 5. overregulation

Felicity purchased stock in a plasma therapy company. As a stockholder, she is prioritized in the distribution of a firm's dividends, but she doesn't have voting and control rights. What type of stockholder is Felicity? 1. a secured stockholder 2. a preferred stockholder 3. a preemptive stockholder 4. a proxy stockholder 5. a common stockholder

Fiat Bank does not have enough money to meet the Federal Reserve Board's reserve requirements, so it must take a loan from the Fed. In this scenario, Fiat Bank is said to have borrowed at the: 1. "discount door." 2. "discount window." 3. "reserve source." 4. "reserve discount." 5. "reserve window."

Flat Surfaces Pro sells photography backdrops. It communicates products and information as well as the opportunity to purchase via its website. This is an example of: 1. direct selling. 2. direct marketing. 3. indirect marketing. 4. wholesaling. 5. intermediary selling.

For manufacturers, measuring productivity is fairly straightforward because: 1. of their high contact with customers 2. of the tangibility of their output 3. their output lacks uniformity 4. they are labor-intensive 5. of the variability of their inputs

Gayashan buys a candle business instead of starting his own from scratch. Once he assumes control of the business, he learns that there is a high volume of complaints that the company's distributor doesn't pack items with care, so items are often broken or damaged. What is Gayashan's responsibility in resolving this problem? 1. he is not responsible for problems that existed before he bought the company 2. he is responsible for taking on and resolving any problems the business already has 3. he can expect the customers and distributor to resolve the problem themselves 4. neither he nor the previous owner is responsible for resolving this problem 5. he can require the previous owner to resolve this problem

Gerald manages two employees at his electronics company. He is based in Texas while one subordinate is in New York and one is in Oregon. In addition to managing the employees, Gerald has many responsibilities. What type of span of management does this scenario describe? 1. wide 2. narrow 3. centralized 4. broad 5. specialized

Gifts Galore is deciding whether to sell its products through vending machines outside subway stations or in stores at popular malls. To which of the following elements in the marketing mix does this decision most closely relate? 1. product 2. distribution 3. price 4. promotion 5. process

Gina owns a cidery. She gathered and examined the checks, credit card receipts, and other related evidence concerning specific transactions. She also recorded each financial transaction in a journal and transferred that information into a ledger. What should Gina do before preparing the cidery's financial statements? 1. She must have her journal certified by an accountant. 2. She must prepare a trial balance to see if the accounting equation is in balance. 3. She must hire an accountant to recheck all her source documents. 4. She must attest that she used generally accepted accounting principles. 5. She must repeat these steps with a new ledger.

Grayson was hired as a customer service agent for an insurance company. His boss recognized his strong communication skills and praised him for a job well done. This is an example of a(n): 1. personal motivator. 2. extrinsic reward. 3. intrinsic reward. 4. intrinsic motivator. 5. morale deflator.

Hakim is a tax accountant employed by a cookware company called Sleek Chef. Hakim is deeply involved in financial decisions at his company. He prepares and analyzes Sleek Chef's financial statements. Based on this information, Hakim is a: 1. secret accountant. 2. private accountant. 3. legal accountant. 4. legislation consultant. 5. forensic accountant.

Harold is developing a tech startup. He wants to develop a strong organizational culture, a good marketing plan, and a coherent business strategy in order to attract investors and customers. What is the foundation for developing these strengths? 1. an elaborate set of business goals 2. a mission statement that delivers a clear answer to the five basic questions 3. a plan for achieving success 4. a set of clear and measurable objectives 5. a target to be achieved

High morale contributes to high: 1. levels of absenteeism. 2. returns to stakeholders. 3. occurrences of groupthink. 4. costs of operation. 5. levels of turnover.

Inspiration Dollz Inc., a brand of dolls for children, uses contract manufacturers in different countries. The company benefits because of the lower cost of labor and minimal government regulations in other countries compared to its home country. This is an example of: 1. benchmarking 2. outsourcing 3. reverse engineering 4. bartering 5. franchising

It is especially difficult to measure quality characteristics when 1. a firm uses ISO 9000. 2. the product is a service. 3. a firm has a total quality management program. 4. the output is highly tangible. 5. a firm applies quality control.

Jamie, a hairstylist, often trades haircuts with the restaurant owner down the street from his salon for free food. This scenario best describes 1. using "IOUs." 2. bartering. 3. purchasing. 4. using fiat money. 5. operating actions

Jayden owns stock in a medical device company. He does not have any say in running the company but has a claim to profits before other types of stockholders. What type of stock does Jayden own? 1. ownership stock 2. preferred stock 3. common stock 4. restricted stock 5. dividend stock

Jeremy has decided to buy a new car. He has done a lot of research online and gone to several car dealerships to test drive cars. However, in order to buy the car, Jeremy must take a car loan. He also must get the car inspected and registered before he can start driving it. In this scenario, which of the following is a nonmonetary cost associated with Jeremy's car purchase? 1. the monthly installments of the car loan 2. the time taken to test drive various car models 3. the interest rates on the car loan 4. the registration fees paid on the car 5. the inspection fees paid on the car

Juan purchases a snack from Target. Upon inspection, he sees the snack is produced and sold by a Japanese company. This means the snack is a What kind of good? 1. absolute 2. imported 3. exported 4. domestic 5. outsourced

Kalida's music store developed a smartphone application to improve its distribution, promotion, and new-product development. In this scenario, Kalida's store is using ________ forces. 1. social 2. technological 3. economic 4. political 5. competitive

Manny applied for a loan for his business. The bank asked him to pledge assets as collateral, so he offered the land the business owns. Which type of bank loan does this scenario best describe? 1. a line of credit 2. a secured loan 3. an unsecured loan 4. a credit rating loan 5. a prime rate loan

Maria, Landon, and Kim meet quarterly to determine their organization's objectives and decide how to accomplish them. Together, they forecast events and identify various options to determine the best course of action. This is which management function? 1. staffing 2. planning 3. organizing 4. nearshoring 5. crowdsourcing

Mega Corp. has $10,000 in net income and $40,000 in sales. What is Mega Corp.'s profit margin? 1. 400% 2. 25% 3. 4% 4. 100% 5. 20%

Multinational corporations often use a geographical approach to departmentalization because 1. they want to avoid duplication of tasks. 2. of vast differences between different regions. 3. they lack resources. 4. they require a small administrative staff. 5. of their ability to standardize products and services.

Plentiful Auto Parts manufactures engines, brakes, mufflers, and batteries and sells them to car manufacturers. This is an example of 1. market segmentation. 2. business-to-business marketing. 3. total marketing. 4. business-to-consumer marketing. 5. target marketing.

Prism Phones is targeting college students and young professionals. The company, therefore, has decided to advertise its cell phones over social networking and other popular websites instead of print ads and television. Prism Phones' decision to advertise through different media than the ones adopted by other firms illustrates the ________ activity of the marketing mix. 1. price 2. promotion 3. profit 4. product 5. distribution

Ready Go Games is a large company that produces video game consoles. Ready Go Games has stock that anyone can buy, sell, or trade, but since it is a large company, its stockholders are far removed from its management. However, it must disclose its financial information to the public under specific laws that regulate the trade of stocks and other securities. What type of business is this? 1. limited partnership 2. public corporation 3. general partnership 4. domestic corporation 5. private corporation

Rehana is responsible for the specific operations of the marketing department for her company. Rehana is a(n): 1. external auditor. 2. middle manager. 3. chief executive officer. 4. trade creditor. 5. top-level manager.

Rehana is responsible for the specific operations of the marketing department for her company. Rehana is a: 1. external auditor. 2. middle manager. 3. chief executive officer. 4. trade creditor. 5. top-level manager

Rory is hired by a company to handle organizing, staffing, planning and controlling activities. These functions are most closely associated with: 1. investment advisors 2. managers 3. assembly line workers 4. stockbrokers 5. direct sales executives

Sampling as a method to determine whether a product meets quality standards is most likely to be used when: 1. a firm has allotted a significant amount of time and money for testing 2. inspection tests are destructive 3. every product must be tested because of human life and safety 4. an elaborate testing technique is required 5. each product is highly customized

Sandra is hired by a sparkling water manufacturer. Her primary function at the company is transforming resources into goods and services. Sandra is involved in: 1. crowdsourcing 2. operations management 3. customer relationship management 4. financing 5. staffing

Shazia manages a butcher shop. Recently, the butcher shop has had trouble competing with national grocery store chains. Shazia wants to develop a list of possible courses of action to attract more customers, so she gathers her team. They discuss the issue and suggest ideas to solve the problem. This is called: 1. moderated discussion. 2. brainstorming. 3. groupthink. 4. crowdsourcing. 5. analyzing options.

Shumaker & Schumaker, a bridge construction firm, uses a fixed-position layout because it is involved in large, complex projects. As a result, this company may be called ?? organization. 1. a continuous-manufacturing 2. a project 3. a product 4. a contract-manufacturing 5. an intermittent

Smart Speaker Plus and AI Assist, two virtual assistant technology companies, merged, reducing the number of corporations competing within the smart speaker industry. This merger is an example of a: 1. shark repellent merger. 2. horizontal merger. 3. conglomerate merger. 4. vertical merger. 5. leveraged buyout.

Socket Electronics creates a new, high-end laptop. It researches the highest possible price consumers would be willing to pay for the computer due to its premium graphics and top-of-the-line performance. The company decides to list it at $4,000. The pricing strategy Socket Electronics is using is: 1. psychological pricing. 2. price skimming. 3. price discounting. 4. emotional pricing. 5. penetration pricing.

Stay Away is a vacation rental service. The company allows customers to post ratings and reviews of its rental properties. Why is it important for this company to encourage customer feedback? 1. Customers always share positive feedback. 2. Most online shoppers search the Internet for ratings and reviews before making major purchase decisions. 3. Online shoppers will only buy products if they can voice their opinions about them after the purchase. 4. Negative consumer feedback attracts sales. 5. Allowing consumer feedback makes it less likely that consumers will provide their feedback.

Summoning with an index finger is unacceptable in Japan, Hong Kong, and the Middle East. This is an example of a(n) ?? barrier. 1. political 2. social 3. technological 4. economic 5. legal

Systems Food Inc. buys food products from producers and then sells them to restaurants. Systems Food Inc. is most likely a: 1. retailer. 2. wholesaler. 3. producer. 4. consumer. 5. marketer.

Tactical plans usually cover a period of: 1. three years 2. one year or less 3. ten years 4. five years or more 5. one week or less

The Dodd-Frank Wall Street Reform and Consumer Protection Act did which of the following? 1. prohibited contracts, combinations, or conspiracies to restrain trade 2. created a Consumer Financial Protection Bureau (CFPB) to protect consumers from complex or deceptive financial products. 3. prohibited price discrimination 4. stiffened penalties for corporate fraud 5. creating an accounting oversight board

The board of directors of an electric car company wants to allocate resources to an investment or project that has the least risk. Which of the following projects is the board most likely to undertake? 1. adding a new car to their existing line of automobiles 2. repairing the old manufacturing equipment 3. buying new manufacturing equipment 4. expanding their automobile business into a new market 5. introducing a new car in a new market

The effective translation of product names can be crucial to success in foreign markets because of: 1. political barriers 2. cultural barriers 3. the presence of export quotas 4. legal barriers 5. the differences in body language

The financial value placed on an object involved in an exchange between a buyer and a seller is known as its: 1. discount. 2. price. 3. comparable value. 4. negotiated value. 5. nominal value.

The independently owned and operated cafeteria inside the local hospital uses inputs such as money, groceries, and labor to transform food into hot meals. In this scenario, which of the following is a transformation process? 1. receiving positive feedback from guests 2. cooking the ingredients 3. hiring employees 4. paying rent to the hospital 5. bookmarking recipes online

The person primarily associated with the Hawthorne studies is 1. Nathaniel Hawthorne. 2. Elton Mayo. 3. Abraham Maslow. 4. Douglas McGregor. 5. O. C. Ferrell.

The right of owners of common stock to have the opportunity to purchase new shares of stock is called a: 1. first offer right 2. preemptive right 3. profit-sharing right 4. cooperative right 5. stock-split right

Theresa used her personal savings to purchase the rights to own and operate a Sonic Drive-In rather than starting her own fast-food restaurant. She is most likely to be a(n) 1. category captain. 2. franchisee. 3. venture capitalist. 4. trade creditor. 5. intrapreneur.

Theresa used her personal savings to purchase the rights to own and operate a Sonic Drive-In rather than starting her own fast-food restaurant. She is most likely to be a(n): 1. category captain. 2. franchisee. 3. venture capitalist. 4. trade creditor. 5. intrapreneur.

Tiffany & Co learned that in order to sell more jewelry in Japan, it needed more attentive customer service. This is an example of what kind of barrier? 1. legal 2. social 3. political 4. technological 5. economic

True Pharmaceuticals manufactures and sells a variety of drugs for a market consisting of people of different genders, ages, educational backgrounds, lifestyles, geographic locations, and income levels. It assumes that all buyers have similar medical needs and wants. In this scenario, True Pharmaceuticals is most likely demonstrating a ________ approach to marketing. 1. multisegment 2. total-market 3. differentiated-market 4. niche-market 5. concentration

What is a characteristic of economic depression? 1. Individuals' incomes increase at the same pace as rising prices. 2. Business output is sharply reduced. 3. consumer spending is high 4. buying power of consumers is significantly increased 5. unemployment levels are low or almost absent.

What type of company benefits the most from licensing? 1. a large manufacturer that wants to transform a less-known brand into a well-known brand internationally. 2. a small manufacturer that wants to launch a well-known brand internationally 3. a small manufacturer that wants to launch a new brand internationally 4. a small manufacturer that wants to launch a well-known brand locally 5. a large manufacturer that wants to launch a new brand internationally.

When an organization has a structure in which decision-making authority is delegated as far down the chain of command as possible, it is called 1. downsizing. 2. decentralized. 3. overspecialization. 4. a hierarchy. 5. a bureaucracy.

When starting a new business, two friends decide to become business partners. Together, they create the legal documents that identify the basic agreements between themselves. These documents are called: 1. partnership charters 2. articles of partnership 3. articles of incorporation 4. articles of proprietorship 5. partnership bonds

Which key element of the marketing mix directly relates to the generation of revenue and profits? 1. place 2. price 3. product 4. distribution 5. promotion

Which of the following acts restricted commercial banks from engaging in certain high-risk trading activities and raised the required capital that banks must hold on their balance sheets? 1. the Federal Deposit Insurance Act 2. the Dodd-Frank Act 3. the Glass-Steagall Act 4. the Gramm-Leach-Bliley Act 5. the Financial Services Modernization Act

Which of the following involves the activities and organizational processes adopted by businesses to meet their social responsibilities? 1. Code of Ethics 2. Corporate Citizenship 3. Economic Responsibility 4. Social dominance 5. Organizational ethics

Which of the following involves the activities and organizational processes adopted by businesses to meet their social responsibilities? 1. social dominance 2. corporate citizenship 3. organizational ethics 4. codes of ethics 5. economic responsibility

Which of the following is a disadvantage of line-and-staff structures? 1. they result in both line-and-staff managers performing the same functions or tasks. 2. they create ambiguous lines of communication 3. they allow staff managers to have direct authority over line managers 4. they are limited to small organizations 5. they fail to allow managers to have direct authority over subordinates in their own deparments

Which of the following is a feature of democratic leadership? 1. monitoring employee actions very closely and in great detail 2. encouraging employees to discuss concerns and provide inputs 3. allowing employees complete autonomy to work on their own 4. making decisions and telling employees what must be done and in what manner 5. using economic rewards as sole means to motivate employees

Which of the following is a reason why a code of ethics is important? 1. It serves as an internal document, which is not shared with the public, suppliers, or regulatory authorities. 2. It alerts employees about important issues and risks to address 3. It provides an individual approach to dealing with ethical decisions 4. It negates the need to have systems for reporting or places to go for advice when facing an ethical issue. 5. It negates the need to evaluate and improve ethical decision making

Which of the following is an example of work-in-process inventory for a sporting good company? 1. baseball bat for sale in one of the company's outlets 2. football helmets that are in the initial stages of the assembly line 3. fishing rods for sale online 4. thread used for stitching baseballs 5. kayaks in the company's warehouse

Which of the following statements accurately describes intrapreneurs? 1. employees who become a part of a company's board of directors through internal promotions are referred to as intrapreneurs 2. individuals in large firms who take responsibility for the development of innovations within the organizations are intrapreneurs 3. Entrepreneurs who sell the rights to use their products to independent owners are intrapreneurs 4. independent investors who help a company raise capital through internal financing are intrapreneurs 5. entrepreneurs who are involved in international business are referred to as intrapreneurs

Which of the following statements is true about corporations? 1. many smaller firms typically elect to incorporate as C corporations. 2. they account for the majority of all US sales income 3. only mega-companies can incorporate 4. they can't sue or be sued in court 5. they can't enter into contracts with individuals

Which of the following statements is true about organizational layers? 1. The more layers in an organization, the lower its administrative costs. 2. The more layers in an organization, the slower the communication. 3. The more layers in an organization, the wider its span of management. 4. The more layers in an organization, the fewer managers it has. 5. The more layers in an organization, the flatter its organizational structure.

Which of the following statements is true about task forces? 1. they are usually permanent 2. they may occasionally include individuals from outside an organization 3. they are responsible for routine quality checks 4. their membership is usually based on organizational position rather than expertise. 5. The comprise members from a single functional department

Which of the following statements is true of online shopping? 1. Online shopping does not involve the use of cookies on a user's computer. 2. Marketers collect vast quantities of personal information, often without consumers' knowledge. 3. Customers can completely protect their personal information. 4. Companies never share or sell consumer information to third parties. 5. Businesses cannot track the purchasing habits of customers online.

Which of the following types of consumer marketing channels is used for the distribution of products like refrigerators, televisions, soft drinks, cigarettes, clocks, watches, and office products? 1. long 2. producer-to-wholesaler-to-retailer-to-consumer 3. producer-to-retailer-to-consumer 4. direct-from-producer-to-consumer 5. indirect

Which statement is true of misuse of company time? 1. The average employee doesn't misuse company time often enough to negatively affect productivity. 2. Time theft costs can be difficult to measure but are estimated to cost companies hundreds of billions of dollars annually. 3. Theft of time is not a common area of misconduct observed in the workplace. 4. Time theft costs are easy to measure and cost companies millions of dollars annually. 5. The average employee steals 10 hours a week with late arrivals, leaving early, and long lunch breaks.

________ are typically owned by many individuals and organizations who own shares of the business in the form of stocks. 1. Limited partnerships 2. Corporations 3. General partnerships 4. Franchises 5. Sole proprietorships

________ is a trial minilaunch of a product in limited areas that represent the potential market. 1. Business analysis 2. Test marketing 3. Commercialization 4. Concept testing 5. Idea screening

________ is a written promise from one company to another to pay a certain amount of money. 1. Certificate of deposit 2. Commercial paper 3. U.S. Treasury bill 4. Secured bond 5. Trade credit

________ is the difference between a desired state and an actual state. 1. A goal 2. A need 3. A problem 4. Motivation 5. Morale

________ refers to money owed to a company by its clients or customers who have promised to pay for the products at a later date. 1. Accounts payable 2. Accounts receivable 3. Current assets 4. Current liabilities 5. Balance sheet

determining an organization's objectives and deciding how to accomplish them is which management function? 1. Crowd sourcing 2. Planning 3. Staffing 4. Nearshoring 5. Factoring

which of the following is a difference between strategic and tactical plans? 1. Strategic plans are short term, while tactical plans are long term 2. strategic plans are long term, while tactical plans are short term. 3. Strategic plans are narrow in scope, while tactical plans are broader 4. strategic plans cover a period of one year or less, while tactical plans cover a period of one year or more 5. strategic plans are easier to adjust or abandon than tactical plans

which of the following statements is true of tactical plans? 1. They deal with potential disasters, such as product tampering, oil spills, fire, earthquake, or computer viruses 2. they allow a firm to react to changes in the environment 3. they specify what actions each individual needs to accomplish in a firm 4. they established the long range objectives of a firm 5. they help establish strategic plans

A checking account at a credit union is commonly referred to as: 1. a savings account. 2. an individual retirement account. 3. a share draft account. 4. a share account. 5. a negotiable order of withdrawal account.

A compressed workweek is most likely to: 1. Shorten working hours 2. Allow employees to move from one job to another 3. Reduce a company's operating expenses 4. Add more tasks to a job than of treating each task as separate 5. Increase instances of virtual teams

A compressed workweek is: 1. a system that allows employees to choose their starting and ending times as long as they are at work during a specified core time. 2. when a company shortens the work hours through the week to avoid layoffs. 3. a four-day or shorter period in which employees work 40 hours. 4. when two people do one job. 5. a system that allows employees to choose to work part of a week from home.

A disadvantage of the line structure is that it: 1. creates work duplication and confusion. 2. makes decision making excessively complicated for managers. 3. requires managers to possess a wide range of knowledge and skills. 4. lacks a clear chain of command. 5. provides no direct lines of authority.

A group of cybercriminals breaks into an online retailer's website to steal users' personal information. Which method of online fraud are the cybercriminals using? 1. phishing 2. cookies 3. hacking 4. intellectual property theft 5. credit card fraud

A hair salon can service 12 clients at any one particular time. This is referred to as its: 1. perishability 2. agility 3. capacity 4. utility 5. variability

A health food company decides to rebrand. To coordinate, the vice president of marketing regularly communicates with the vice president of sales. Any related communication between them will be referred to as ________ communication. 1. downward 2. informal 3. horizontal 4. asynchronous 5. upward

A tech company decides to pay dividends to shareholders out of its net earnings. This will decrease its: 1. revenue and expense accounts. 2. checking and savings accounts. 3. cash and capital accounts. 4. liabilities and equity accounts. 5. assets and stock accounts.

A work program that allows employees to choose their starting and ending times as long as they are at work during a specified core period is called: 1. job sharing. 2. compressed workweek. 3. flextime. 4. job enrichment. 5. work sharing.

A(n) ?? is a legal entity, created by the state, whose assets and liabilities are separate from its owners. 1. proprietorship 2. general partnership 3. corporation 4. unlimited partnership 5. strategic group

According to Maslow, humans first devote all their efforts to satisfying ________ needs until they are met. Only when these needs are met can people focus their attention on satisfying the next level of needs. 1. esteem 2. security 3. physiological 4. self-actualization 5. social

After assigning specialized tasks to individuals, the senior manager next organized workers doing similar jobs into groups to make them easier to manage. The manager grouped the working units by job function. This is an example of: 1. specialization. 2. downsizing. 3. departmentalization. 4. nearshoring. 5. centralization.

Alfred is in the market for a tiny house. He comes across a manufacturer who builds tiny houses using a modular design. All of the following are benefits of building a home this way EXCEPT: 1. his home will cost less than a conventionally built house 2. if he decides to change the home in the future, he can add new modules. 3. if any portion of a modular component of the home fails, he can repair the component instead of needing to replace it. 4. future home repairs can be done quickly, reducing the cost of labor. 5. he can mix and match components to get exactly the home he wants

All of the following are major responsibilities of the Federal Reserve Board except: 1. fostering payment and settlement system safety and efficiency. 2. promoting financial system stability. 3. providing short-term loans to businesses. 4. conducting monetary policy. 5. supervising and regulating financial institutions and activities.

All of the following are people and forces beyond an organization's control that have an impact on the business's daily operations except: 1. competition 2. the political environment 3. employees 4. regulatory forces 5. technology

All of the following are true of nonprofit organizations except they: 1. utilize skills related to management, marketing and finance. 2. may engage in fund-raising 3. support businesses through donations from employees 4. include charities and social causes 5. may provide goods or services

All of the following statements are true of the government regulation of sole proprietorships except: 1. sole proprietorships have the most freedom from government regulation 2. sole proprietors must obey employee and consumer protection regulations 3. sole proprietors must follow all laws, including federal, state, and local regulations, securities laws, and employee and consumer protection regulation 4. many government regulations apply only to businesses that have a certain number of employees 5. securities laws apply only to corporations that issue stock

Amy purchased a truck for her company with a loan obtained from National Together Bank. If Amy fails to repay the loan, the bank will repossess the truck. The truck represents: 1. accounts receivable. 2. a lockbox. 3. collateral. 4. retained earnings. 5. a line of credit.

Ayana, Nia, and John decide to start a new law firm, so they draft articles of partnership. All of the following are items they should include except: 1. the business's name, purpose, and location 2. how much each partner is allowed to withdraw 3. the total money and assets of each partner's estate 4. the authority and responsibility of each partner 5. the duration of the agreement

Based on a qualitative assessment of capital budgeting risk, which of the following potential investment projects is the riskiest? 1. repairing old equipment 2. adding to an existing product line 3. introducing a new product in a foreign market 4. expanding into a new market 5. buying new equipment for an established market

Big Time Inc. has an independent, permanent work group that develops and revises codes of ethics, suggests ways the organization can contribute to preserving the environment, and regularly reviews other specific issues and concerns within the organization. This is an example of: 1. cooperative 2. labor union 3. committee 4. task force 5. project team

Chelsea is a marketing associate at a cosmetics company. She submits a weekly activity report summarizing her work to the marketing manager. What type of communication does this scenario describe? 1. horizontal communication 2. downward communication 3. upward communication 4. diagonal communication 5. confidential communication

Chen, the marketing manager for a restaurant, wants to send a text message that is less than 160 characters to prospective customers. What mobile marketing tool should Chen use? 1. mobile applications 2. social networks 3. SMS messages 4. mobile advertisements 5. mobile websites

Christopher is a technician for a local cable company. He visits about 20 new customers per day to install equipment, so he interacts with a lot of customers who often have an array of questions to ask. Christopher's job is: 1. capital-intensive 2. uniform in terms of inputs 3. labor-intensive 4. standardized 5. uniform in terms of output

Claudia and Jason are celebrating their 1-year wedding anniversary, and they are having a couples' massage at a spa. Jason hands his credit card to the cashier at the spa to pay for their massages. This is an example of 1. a service agreement. 2. a donation. 3. an exchange. 4. barter. 5. a monopoly.

Computer World, a small business, sources microchips and keyboards from Technology with Integrity, Inc. Because the two businesses have a good relationship, Technology with Integrity, Inc. agrees to supply Computer World with the necessary goods from its next purchase order and pay for them at a later date. This is an example of: 1. mutual fund. 2. nonrecourse loan. 3. trade credit. 4. stock dividend. 5. trust fund.

Cook Tech, which sells kitchen appliances and accessories such as slow cookers, pressure cookers, and sous vide cookers, often sends reinforcement advertising to current users. What is the primary reason Cook Tech would use reinforcement promotion? 1. to identify potential buyers of its products 2. to inform potential buyers about the organization and its products 3. to assure current users of the product that they have made the right choice 4. to provide a history of the company 5. to stabilize sales

During the ________ stage of the product cycle, a firm tries to strengthen its position in the market by emphasizing the product's benefits and identifying market segments that want these benefits. 1. decline 2. introductory 3. growth 4. intermediate 5. maturity

Eduardo owns a small specialty ice cream shop. When a chain ice cream store opened across the street from his business, Eduardo lowered his prices and added more unique flavors. His ability to make these decisions on the spot without anyone else's approval gave him a: 1. guaranteed profit 2. loyal customer base 3. competitive advantage 4. quick profit 5. trade secret

Email and social networks have made it possible for many proprietorships to develop in the services area. This speaks to which advantage of sole proprietorships? 1. unlimited liability 2. secrecy 3. ease and cost of formation 4. ease of closing the business 5. distribution and use of profits

Emily makes handmade jewelry and sells it to consumers at craft fairs. This is an example of the ________ marketing channel. 1. indirect 2. producer-to-retailer-to-consumer 3. direct-from-producer-to-consumer 4. producer-to-wholesaler-to-retailer-to-consumer 5. long

Emory needs to go to the drugstore to purchase batteries for her wireless mouse and plans to purchase whatever brand is available. In this scenario, the batteries are an example of a ________ product. 1. shopping 2. generic 3. convenience 4. specialty 5. difficult-to-obtain

Erica is a social media influencer. She is hired by a snowboard company to promote their boots, helmets, and boards but is told not to disclose her connection with the brand. What legal or social issue in Internet marketing does this most closely relate to? 1. intellectual property theft 2. privacy 3. transparency 4. identity theft 5. phishing

Felicity purchased stock in a plasma therapy company. As a stockholder, she is prioritized in the distribution of a firm's dividends, but she doesn't have voting and control rights. What type of stockholder is Felicity? 1. a secured stockholder 2. a common stockholder 3. a preferred stockholder 4. a proxy stockholder 5. a preemptive stockholder

Ferava Inc. is a company that markets its products—luxury wristwatches—exclusively to high-income individuals and celebrities. Thus, high-income individuals and celebrities are most likely Ferava Inc.'s: 1. reference group. 2. control group. 3. target market. 4. total market 5. secondary market.

Freedom Clothing has several locations in Dallas and Houston. Each location has a manager who runs the location as they see fit. The clothing retailer has achieved success by empowering its employees to make their own decisions and follow their passions. Which management theory does Freedom Clothing follow? 1. McGregor's Theory X 2. equity theory 3. McGregor's Theory Y 4. Maslow's hierarchy of needs 5. Herzberg's two-factor theory

Growth objectives essentially relate to; 1. building an organization's ability to promote diversity 2. focusing on profit as the sole indicator of growth 3. adapting and releasing new products in the market 4. coordinating and organizations resources smoothly 5. making the best use of an organization's resources

Gwendolyn manages a resort boutique. Her goal is to run this business in such a way that she achieves the desired result providing her customers with items they need to enjoy their vacation period thus her primary managerial concern is: 1. Efficiency 2. Standardization 3. Effectiveness 4. Innovation 5. Expertise

Heartbeat Inc. has an idea for a new continuous glucose monitoring system for people with diabetes. Unlike existing products, the new system would be painless, accurate, user-friendly, and convenient. When doing a business analysis, the most important question Heartbeat Inc. should consider when deciding whether to develop this product is: 1. "how will we advertise this product?" 2. "will enough customers want to replace their existing glucose monitor with this product?" 3. "how will the product affect our sales, costs, and profits?" 4. "are there any uses for this product in other industries?" 5. "is a similar product currently in the idea screening stage at another firm?"

Hiten is a manager for a large pet food company. He hires an accountant from one of the Big Four accounting firms to file the company's tax return. In this scenario, Hiten has most likely hired a ________ accountant. 1. certified private 2. forensic 3. certified public 4. certified management 5. noncertified

Homemakers Hub is a website that contains thousands of articles about home improvement topics. Users can add or edit the content of the posted articles. Homemakers Hubs is an example of a(n): 1. blog. 2. Facebook page. 3. wiki. 4. online newspaper. 5. corporate website.

House & Home is a home furnishing store that uses Pinterest to share photos of the products it carries as well as various decorating ideas. House & Home organizes its pins into boards grouped by interest, such as holiday decorating and rustic kitchens. How does House & Home benefit from using Pinterest in this way? 1. House & Home does not benefit from using Pinterest in this way. 2. House & Home can send disappearing photos and videos to followers. 3. House & Home has a chance to develop marketing messages encouraging users to purchase products or brands that interests them. 4. House & Home can prevent consumers from posting their own thoughts, opinions, and reviews. 5. House & Home can post messages of up to 280 characters for followers to read.

IKEA has been criticized in the past for failing to issue furniture recalls in a timely manner. In the realm of business ethics, this is an issue related to: 1. Financing 2. Product Design 3. Communications 4. Conflict of Interest 5. Business Relationships

If a company develops an advertising campaign exclusively for a segment of consumers with a certain income and education, which segmentation variable is the company using? 1. geographic 2. behavioristic 3. demographic 4. psychographic 5. ethnographic

In an attempt to raise long-term funds, a company decides to issue bonds to lenders. These bonds do not have fixed interest payments, and the rate of interest changes depending on economic conditions. The bonds issued by this company are examples of ________ bonds. 1. junk 2. serial 3. floating-rate 4. secured 5. debenture

In the context of business relationships, ethical behavior in a business involves with of the following? 1. whistleblowing 2. communicating about safety and quality 3. keeping company secrets 4. donating to local charities 5. obeying environmental laws

In the context of managing cash in an organization, which of the following is true? 1. Business organizations make money from idle cash. 2. Corporate checking accounts typically earn interest. 3. To manage a firm's cash, companies try to speed up cash collections from customers. 4. Money managers try to keep as much cash in their hands as possible. 5. Managers measure cash flow as the amount of cash the firm spends in a period of one year.

In the process of starting a business, the step that immediately follows the development of a business plan involves: 1. filing for tax returns for the business with the IRS 2. organizing resources like labor and supplies 3. deciding an appropriate legal form of business ownership 4. developing some general business ideas 5. promoting the business to the customers

It took Luxe Designs years to develop its new necklace, establish channels through which to distribute it, and design and implement its advertising campaign for the necklace. However, the necklace's price can be set or changed in a few minutes. This reflects the fact that: 1. the longer the other marketing mix variables take, the higher the price of the product must be set. 2. the quantity demanded never changes. 3. price is probably the most flexible variable in the marketing mix. 4. the product's viability depends on it fitting within standard pricing parameters. 5. pricing is the least important variable in the marketing mix.

Joaquin owns Let Them Eat Cake, an independently owned and operated bakery run out of a small commercial kitchen he rents. After six months of growing his business, he hires 12 employees. Let Them Eat Cake is best described as a 1. limited liability company. 2. conglomerate. 3. small business. 4. publicly owned business. 5. publicly traded company.

Joaquin owns Let Them Eat Cake, an independently owned and operated bakery run out of a small commercial kitchen he rents. After six months of growing his business, he hires 12 employees. Let Them Eat Cake is best described as a: 1. limited liability company. 2. conglomerate. 3. small business. 4. publicly owned business. 5. publicly traded company.

Julianne is a human resource (HR) manager for a marketing strategy firm. After conducting an internal survey, she discovered the majority of employees belong to Generation Z. In this scenario, which of the following HR strategies should Julianne implement in order to best serve the needs of the employees? 1. She should avoid giving regular, direct feedback to the employees. 2. She should use financial rewards to motivate the employees to improve their productivity. 3. She should create a fun, flexible work environment. 4. She should keep the training sessions highly formal and standardized. 5. She should restrict the employees from using work from home or telecommuting options.

Jumping Jacks fitness has a particular change that it needs to be developed and then implemented. The president establishes a temporary group of employees chosen for their expertise who will be responsible for bringing about this change. What is this type of group called? 1. committee 2. cooperataive 3. task force 4. union 5. interest group

Kraft is required by law to include the ingredients, nutrition facts, and the manufacturer's contact information on its product packaging. This presentation of important information on the package is known as: 1. packaging standards. 2. quality control. 3. labeling. 4. trademarking. 5. branding.

Leila interviews at a civil engineering firm. She requests to speak to some of the employees about the office's culture. All of the following things she learns relate to the office's culture EXCEPT: 1. some of the employees formed an office bowling league 2. The employees pride themselves on maintaining a clean, comfortable, and positive environment 3. her job will consist of drafting and project management 4. the office has a business casual dress code 5. the senior managers often chip in to buy the rest of the office lunch on Fridays.

Madden owns an equestrian clothing store. After many customers complained that her clothing only fit petite riders, she decided to add a new brand of riding clothes that includes clothing for all body shapes and sizes. In regards to the marketing concept, which of the following statements describes Madden's decision? 1. Before altering, adapting, or developing products to keep pace with changing consumer needs and wants, companies should wait to make sure these needs and wants will be long lasting. 2. Companies must adapt their product lines to fulfill customers' needs and wants, even if doing so prevents them from achieving their own objectives. 3. To remain competitive, companies must be prepared to add to or adapt their product lines to satisfy customers' desires. 4. Adding to or adapting product lines is expensive, so companies must carefully weigh their options before choosing to make such drastic changes. 5. Since customers' needs change so continuously, companies should not make drastic changes to their product lines to satisfy momentary customer desires.

Many service providers are considered retailers because they: 1. require a high initial start-up cost. 2. employ only a small number of people. 3. provide their services directly to ultimate consumers. 4. focus on large market segments and institutional buyers. 5. sell their services from a single store location.

Marcia inherited a piece of land in a popular neighborhood. She sold the land and used the money to start a business. Which of the following sources has Marcia used to raise funds for the business? 1. venture capital 2. initial public offering 3. equity financing 4. angel investment 5. debt financing

Mega Marketing is a large digital marketing company with partners that specialize in email, social media, advertising, and e-commerce. Since each partner specialized in a different area, customers would likely to: 1. view the service as lower quality than that provided by one person. 2. prefer to work with one person who has diverse skills 3. view the service as higher quality than that provided by one person 4. take their business to a sole proprietor, rather than this partnership. 5. question the qualifications of each partner.

Mega Marketing is a large digital marketing company with partners that specialize in email, social media, advertising, and e-commerce. Since each partner specializes in a different area, customers would be likely to: 1. view the service as lower quality than that provided by one person. 2. prefer to work with one person who has diverse skills. 3. view the service as higher quality than that provided by one person. 4. take their business to a sole proprietor, rather than this partnership. 5. question the qualifications of each partner.

Melanie went to the grocery store but forgot her wallet. Instead of using her physical credit card, when she went to the register she pulled out her smartphone and paid using a mobile application, tapping the phone at the point of sale for the transaction to be registered. What did Melanie use to pay for her groceries? 1 Pinterest 2. a social network 3. a mobile payment app 4. a QR code 5. SMS messaging

Misha applied for a loan from the bank for a new sporting goods store. The bank requires Misha to put up a financial interest in the property of the business to guarantee payment of the debt. What is this called? 1. venture capital 2. cash flow statement 3. collateral 4. business plan 5. trade credit

Nirav, Samantha, and Nev want to incorporate their small skateboard business. To do so, they must file legal documents with the appropriate state office. What are these legal documents called? 1. corporate charters 2. corporate doctrines 3. articles of incorporation 4. corporation bylaws 5. articles of partnership

Nixon's Jewelers invests extra cash in marketable securities for periods as short as one day or for as long as one year, until it is needed. The company favors safe, preferably risk-free, investments. Which of the following is a temporary investment type Nixon's Jewelers would likely use to invest these funds? 1. stock dividends 2. transaction balances 3. U.S. Treasury bills 4. cash deposits 5. tradable equities

Oban plans to open an African restaurant in his neighborhood. He will be solely responsible for the management of the restaurant. Which of the following problems is Oban likely to face while running the business? 1. his business will not be able to quickly adapt to changing market demands 2. he will find it difficult to make quick decisions 3. he may experience physical and psychological stress 4. his restaurant may not be able to focus on a specific group of customers 5. he will not have the flexibility to make critical decisions independently

Pedro, Evelyn, and Ingrid work for a federal agency. Their main responsibility is working together to find evidence of cooked books at major companies. Pedro, Evelyn, and Ingrid are ________ accountants. 1. criminal 2. managerial 3. forensic 4. certified public 5. noncertified

Petra owns a pizza shop. Guests can build their own custom pizzas using a variety of ingredients such as pepperoni, mushrooms, and green peppers. From an operations perspective, the pizza he sells to customers is a(n): 1. inventory. 2. transformation. 3. output. 4. input. 5. component part.

Profitability ratios measure: 1. how efficiently a firm uses its assets to generate sales. 2. how much debt the firm is using relative to other sources of financing. 3. how much operating income or net income a firm is able to generate relative to its assets, equity, and sales. 4. the speed with which a company can turn its short-term assets into cash to pay off its short-term debts. 5. the performance of the firm relative to others on a per-share basis.

Quality control refers to the: 1. techniques an organization uses to control the costs of inputs and outputs. 2. efforts of an organization to replace quality with productivity 3. processes an organization uses to maintain its established quality standards 4. inspections conducted by the government when a product's quality is above the required standard 5. efforts of an organization to reduce the quality standards set by the best-performing companies

Red Unicorn Inc. is a company that manufactures wooden planks for construction. It has categorized its customers on the basis of their product requirements into construction companies, wholesalers, and government institutions. Which of the following marketing strategies is best illustrated in this scenario? 1. mass production 2. market positioning 3. market segmentation 4. product diversification 5. product differentiation

Ren closely protects his privacy. He knows that businesses track consumers' shopping habits, and he wants to remain anonymous during the shopping process. Which of the following is something Ren can do to maintain his anonymity? 1. He can pay for purchases with a credit card. 2. He can use coupons to save money. 3. He can pay for purchases with cash. 4. He can mail the company his spending data directly. 5. He can shop online.

Seed Tech Co., an agrochemical company, and Sprout Technologies, a biotechnology company, combine to form a new company. What is this called? 1. white knight 2. shark repellent 3. merger 4. acquisition 5. tender offer

Selecting valid metrics for social media monitoring and evaluation requires: 1. a degree in marketing. 2. a subscription to Google Analytics. 3. specific objectives that the social media strategy is to obtain. 4. premium social media listening tools. 5. high click-through rates.

Selecting valid metrics for social media monitoring and evaluation requires: 1. premium social media listening tools. 2. high click-through rates. 3. specific objectives that the social media strategy is to obtain. 4. a subscription to Google Analytics. 5. a degree in marketing.

Selena is a programmer for a streaming company. If she logs 40 hours in four days, she can have a three-day weekend. Selena's work schedule is an example of: 1. job sharing. 2. job enrichment. 3. a compressed workweek. 4. job enlargement. 5. flextime.

Sharp Edges is a national barber shop chain. Sleepy Time is a company that designs and sells loungewear. How will the two businesses differ from each other? 1. Sharp Edges will have less contact with its customers when compared to Sleepy Time 2. Sharp Edges will be able to incorporate quality standards, whereas Sleepy Time will not. 3. Sharp Edges will be more capable of customizing its products when compared to Sleepy Time 4. Sharp Edges, unlike Sleepy Time, will not produce its output at the point of consumption. 5. Sharp Edges will be able to keep its output standardized, whereas Sleepy Time will not.

Taraneh wants to create a tutoring center for high school students. She develops a precise statement of the rationale for her business and a step-by-step explanation of how the business will achieve its goals. This is known as a(n): 1. promissory note. 2. business agreement. 3. business plan. 4. article of partnership. 5. article of incorporation.

The European Union passed the General Data Protection Regulation (GDPR) which requires companies to: 1. store cookies in consumers' computers. 2. customize services for consumers. 3. acquire permission from consumers in order to collect their data. 4. allow consumers to opt for credit card payments. 5. track and monitor the contents of consumers' online purchases.

The Gutter Experts Co. received tools such as ladders and hammers from one of its materials suppliers on credit. Since The Gutter Experts Co. is a regular customer, the supplier has made an agreement to give the company discounts if it pays its bill early. Which of the following short-term liabilities does this scenario best describe? 1. accounts receivable 2. discount window 3. trade credit 4. certificates of deposit 5. line of credit

The ________ Act repealed the Glass-Steagall Act, putting U.S. commercial banks on the same competitive footing as European banks and providing a more level playing field for global banking competition. 1. Dodd-Frank 2. Celler-Kefauver 3. Gramm-Leach-Bliley 4. Sarbanes-Oxley 5. Credit CARD

The ________ reflects the degree to which a good, service, or idea meets the demands and requirements of customers. 1. product labeling 2. product packaging 3. product quality 4. brand name 5. brand mark

The most common way that businesses exercise community responsibility is through 1. obeying the law 2. recycling 3. donations to charitable organizations 4. submission of environmental reports. 5. establishing codes of ethics

The process of analyzing the needs of a business and selecting the assets that will maximize its value is called: 1. investment banking. 2. working capital management. 3. capital budgeting. 4. risk assessment. 5. marketing strategy.

The usefulness of the IMF for developed countries is limited because 1. The IMF was forced to decrease its funding to emerging economies 2. these countries rely extensively on the public market 3. these countries use private markets as a major source of capital 4. the IMF does not aid countries with balance-of-payment deficits 5. the IMF does not provide short-term loans

Victoria is training the new financial manager, Blake. She tells Blake that idle cash does not make money, therefore he should try to keep just enough cash on hand to pay the corporation's bills. The cash Victoria is referring to is called: 1. secured bonds. 2. retained earnings. 3. transaction balances. 4. marketable securities. 5. long-term assets.

When selecting the best option among a series of possible decisions, 1. it is always advisable to choose just one. 2. All options must be tried and tested simultaneously 3. it may be possible to use a combination of several options 4. quantitative and qualitative analysis are foolproof at all times 5. it is always possible to use an objective procedure

Whether secured or unsecured, bonds may be repaid: 1. only when the issuer files for bankruptcy. 2. in payments that start after the maturity date and continue for several years. 3. in one lump sum or with many payments spread out over a period of time. 4. only if the bondholder files for bankruptcy. 5. exclusively with collateral.

Which of the following demographic segments should both small retailers and small-service providers specializing in ethnic products target? 1. drivers 2. echo boomers 3. immigrants 4. baby boomers 5. Generation X

Which of the following is a characteristic of a service economy? 1. it is concerned with the indigenous production of food, clothing and furniture 2. it is devoted to producing goods and services rather than producing agricultural products 3. It is devoted to producing services that make life easier for busy consumers. 4. it is significant for the development of factories along the railways to manufacture farm equipment 5. it is particularly important for enabling farmers to send their surplus crops and goods all over the nation for barter or for sale.

Which of the following is a disadvantage of geographical departmentalization? 1. It prohibits specialization among employees. 2. It is limited to small organizations. 3. It results in the duplication of tasks. 4. It focuses on an organization as a whole rather than emphasizing departmental units. 5. It is inefficient when businesses want to quickly respond to regional customers.

Which of the following is an accurate description of a difference between manufacturers and service providers? 1. for service providers, measuring productivity is fairly straightforward, whereas, for manufacturers, measuring productivity is more complicated. 2. manufacturers make more contact with their customers when compared to service providers 3. manufacturers can separate the production of a product from its actual use, whereas the service dimension requires closer contact with the consumer 4. the products of manufacturers tend to be more customized than those of service providers. 5. service providers have more control over the amount of variability of the resources they use than manufacturers

Which of the following is an advantage of a corporation over a partnership? 1. setting up a corporation is easier, while setting up a partnership requires legal charters. 2. a corporation only pays taxes once, while a partnership is subject to double taxation 3. as a legal entity, a corporation can enter into contracts without as much difficulty as a partnership 4. a corporation has fewer regulatory controls than a partnership 5. a corporation does not need to send out quarterly financial statements, but a partnership does

Which of the following is an advantage of a matrix structure? 1. it is the simplest form of organizational structure 2. it provides a clear chain of command to employees 3. it provides flexibility, enhanced cooperation, and creativity 4. it is the least expensive method to organize a business 5. it eliminates the problem of intersecting lines of authority.

Which of the following is likely to occur in a country where money is unstable? 1. People from other countries will invest more in the country to reap the potential benefits of this instability. 2. People will continue to be confident in the nation's money because they are naturally optimistic. 3. People will spend their money as fast as they can to keep it from losing more of its value. 4. People will increasingly store their savings in paper money rather than assets like gold and land. 5. People will save money instead of spending it to keep it from losing its value.

Which of the following is true of modular design as an operations process? 1. The failure of any portion of a modular component does not require replacing the entire component. 2. It increases the time to repair products, thus raising the cost of labor. 3. It raises the cost of repair materials because the component itself is expensive. 4. Automobile manufacturers never use of modular design in the production process. 5. It is the highest form of customization that can be provided to customers.

Which of the following is true of the transformation process in operations management? 1. it is a process of initiating corrective action when the actual output is more than the desired output 2. it is associated with the marketing and selling of both inputs and outputs to customers 3. it is the conversion of resources, such as labor, money, materials, and energy, into goods, services, or ideas. 4. it is a process of replacing quality with productivity when manufacturing products 5. it is efficient only when inputs are used in large quantities to produce small quantities of output.

Which of the following is true regarding trading companies? 1. they rarely offer warehousing facilities 2. they refrain from handling consulting activities 3. they handle all activities required to move products from one country to another. 4. they buy and sell goods in only one country 5. they are very different from export agents.

Which of the following modes of transportation offers speed and a high degree of dependability but is the most expensive? 1. railroads 2. pipelines 3. air transport 4. transport by ship 5. trucking

Which of the following situations illustrates online fraud? 1. posting negative reviews on online forums about companies and individuals 2. forgetting login details for an email account 3. deceiving Internet users into revealing personal information 4. reading public content on other people's profiles on social networking sites 5. posting derogatory remarks about companies on blogs

Which of the following statements is true about dumping? 1. dumping occurs when a business sells products at much more than what it costs to produce them. 2. dumping occurs when the country of origin has products with the latest technology that are in high demand in overseas markets. 3. dumping permits quick entry into a market 4. dumping occurs when the domestic market for a firm's product is too big to match the level of production 5. quotas cannot be imposed based on suspicion of dumping unless proven.

Which of the following statements is true of viral marketing? 1. It involves the emailing of bulky video files that take a long time to load. 2. It does not use video and photo-sharing sites. 3. It can involve advertising on existing popular videos. 4. It essentially uses newspaper and magazine ads. 5. It significantly increases the advertising costs of a company.

Which of the following statements is true regarding indexes and averages? 1. An index is a price-weighted median while an average is a price-weighted average. 2. An index only lists public companies while an average considers all companies. 3. An index compares current stock prices with those in a specified base period while an average is the average of certain stock prices. 4. An index is the average of certain stock prices while an average is simply the average stock price of all publicly traded companies. 5. An index compares current stock prices with the top stock in the market while an average is the average of certain stock prices.

Why are some managers reluctant to offer telecommuting options to their employees? 1. It increases overhead costs for companies. 2. It increases employee turnover. 3. It increases security concerns. 4. It increases the workload for employees who take the option. 5. It increases fixed costs for companies.

Why did businesses enter the marketing economy? 1. the country abandoned the free-enterprise system 2. Ford's assembly line could manufacture many automobiles efficiently. 3. Businesses became more concerned with the needs of the consumer. 4. People were self-sufficient and produced everything they needed at home. 5. manufacturing was too laborsome.

Yazoo Toys shares a weekly audio file with consumers that can be downloaded from the Internet. The weekly audio segment discusses how toys can be used as educational tools for children. Subscribers receive the audio file on their smartphone automatically via an app as soon as it is available and can listen when and where they choose. This audio file refers to a: 1. social networking site. 2. wiki. 3. podcast. 4. livestream. 5. blog.

________ banking refers to companies performing banking functions that are not regulated by banking regulators. 1. Online 2. Digital 3. Shadow 4. Traditional 5. Mobile

________ describes how marketers use digital media to find out the opinions or needs of potential markets. 1. Collecting 2. Networking 3. Crowdsourcing 4. Surveying 5. Groupthink

a plan specifies all of the following except: 1. how the tasks should be completed 2. what should be done 3. why the tasks should be completed 4. who should complete the tasks 5. when the tasks should be completed

in businesses ?? include the president and other top executives such as the chief executive officer chief financial officer and chief operations officer who have overall responsibility for an organization. 1. middle managers 2. department heads 3. top managers 4. first line managers 5. boards of directors

?? are very short term plans that specify what actions individuals, work groups, or departments need to accomplish in order to achieve an organization's tactical plan and, ultimately, the strategic plan. 1. Executive level plans 2. static plans 3. referendums 4. operational plans 5. protocols

A ________ is a brand that is legally protected from use by any other firm. 1. private-label brand 2. generic brand 3. manufacturer's brand 4. trademark 5. brand mark

A candle shop started the accounting period with inventory for which it paid $5,000. During the accounting period, it spent $4,000 on new candles. At the end of the period, the shop's inventory is worth $5,500. In this scenario, what is the cost of goods sold? 1. $5,000 2. $4,000 3. $5,500 4. $3,500 5. $14,500

A company's financial obligations to short-term creditors, which must be repaid within one year, are 1. current assets. 2. equity. 3. net profit. 4. current liabilities. 5. accounts payable.

A corporate raider is trying to take over IRL Entertainment, a theme park company. In an attempt to avoid this hostile takeover, IRL Entertainment is requiring a large majority of stockholders to approve the takeover. Which of the following methods of evading a takeover attempt does this describe? 1. A class action 2. poison pill 3. a tender offer 4. a shark repellent 5. a compliance buyout

A declaration of an organization's fundamental purpose and basic philosophy is known as: 1. The target 2. An agenda 3. A referendum 4. The mission 5. Protocol

A furniture store is trying to determine its net income. To figure out this value, the company should deduct all ________ from revenue. 1. assets and liabilities 2. equity 3. sales 4. expenses including taxes 5. income and profits

A(n) ?? It's like a calendar, containing both specific and vague items, that helps a manager figure out what must be done and how to get it done to meet the objectives set by an organization. 1. Proforma invoice 2. balance sheet 3. executive summary 4. agenda 5. referendum

A(n) ?? Like a calendar containing both specific and vague items that help a manager figure out what must be done and how to get it done to meet the objectives set by an organization. 1. Proforma invoice 2. balance sheet 3. executive summary 4. agenda 5. referendum

Accelerate Fitness opens a research lab where scientists, athletes, engineers, and designers work together to come up with ideas for new fitness apparel and equipment. Which of the following steps in the product development process does this scenario best describe? 1. business analysis 2. commercialization 3. test marketing 4. idea development 5. idea screening

According to Maslow's hierarchy of needs, which of the following needs do people strive to satisfy first? 1. esteem needs 2. self-actualization needs 3. social needs 4. physiological needs 5. security needs

After 13 years of operation, Kelvina's noticed that the traditional structure of her gutter company was becoming difficult to coordinate, making communication difficult and decision making slow. She decided to restructure her business, organizing departments into three larger groups: 1 Installation, 2 maintenance, and 3 removal. What type of structure has Kelvina adopted? 1. line-and-staff 2. line 3. multifaceted 4. multidivisional 5. matrix

All of the following are areas that can cause friction in a partnership except: 1. the fact that limited partners have no voice in the management of the business, but they may bear most of the risk. 2. a change in goals or objectives of one partner but not the other 3. the fact that the general partner reaps a larger share of the benefits 4. the diverse skills of the partners 5. when two business partners cannot resolve disputes

All of the following are areas that can cause friction in a partnership except: 1. the fact that limited partners have no voice in the management of the business, but they may bear most of the risk. 2. a change in goals or objectives of one partner but not the other. 3. the fact that the general partner reaps a larger share of the benefits. 4. the diverse skills of the partners. 5. when two business partners cannot resolve disputes.

All of the following are examples of companies using online marketing research EXCEPT 1. EduPub combines sight, sound, and animation to facilitate the testing of the packaging and design features of its course-management products. 2. Electronics Emporium uses Facebook to gather useful customer information for marketing decisions regarding its stereos, computers, and home-theater products. 3. Fitness Factory e-mails surveys to its clients every few months to get their feedback on their experiences at the gym. 4. Quality Cars uses mystery shoppers to visit its car dealerships and report on whether the dealerships are adhering to the company's standards of service. 5. Rustic Rooms Furniture has a section on its website where customers can submit their ideas for unique furniture pieces.

All of the following are part of "the Big Four" except 1. Ernst & Young. 2. Deloitte. 3. PricewaterhouseCoopers. 4. Plante Moran. 5. KPMG.

All of the following are ways to retain good employees except: 1. providing opportunities for employee growth 2. creating a work-friendly environment. 3. providing adequate incentives. 4. micromanaging employees. 5. challenging employees.

Amanda owns a custom furniture store in New Hampshire. When customers buy her unique furniture pieces, she arranges a time for her employees to deliver the furniture to their homes using her delivery truck. This is an example of 1. grading. 2. buying. 3. selling. 4. transporting. 5. storing.

Amity Engineering is chartered in Colorado but also does work in other states such as Tennessee, Illinois, and Vermont. In the other states Amity Engineering does business, it is known as a(n): 1. horizontal corporation 2. domestic corporation 3. vertical corporation 4. foreign corporation 5. alien corporation

Amity Engineering is chartered in Colorado but also does work in other states such as Tennessee, Illinois, and Vermont. In the other states Amity Engineering does business, it is known as a(n): 1. horizontal corporation. 2. domestic corporation. 3. vertical corporation. 4. foreign corporation. 5. alien corporation.

An advantage of line structure in organizations is that it: 1. gives all employees the power to veto a decision, irrespective of hierarchy. 2. does not require managers to possess a wide range of knowledge and skills. 3. allows managers to specialize in the one activity in which they are knowledgeable. 4. enables managers to make decisions quickly. 5. allows managers facing a decision to consult with many superiors.

Beautiful Rooms produces and sells unique furniture pieces to both individual homeowners and hotels. As a result, this company's products can be considered: 1. segmented products. 2. consumer products. 3. business products. 4. both consumer and business products. 5. total-market products.

Big Builders, a construction company that builds condos, brings all the construction resources to a central location during production. This type of a facility layout is called ?? layout. 1. a product 2. a line 3. a web 4. a fixed-position 5. an assembly line

Big Hawaii Resorts, a prominent hotel chain, hires a public relations firm, The Smith Agency, to create a plan to deal with a reputation crisis in the unlikely event of unethical or illegal conduct by a Big Hawaii Resort employee or affiliate. This is an example of: 1. enterprise resource planning. 2. supply chain management. 3. value chain management. 4. contingency planning. 5. materials requirement planning.

Cadence Electronics is determining the demand for wireless earbuds, a new product it is considering for development, and how much consumers are willing to pay for them. For this, Cadence Electronics would most likely rely on: 1. trial and error 2. case studies 3. proprietary competitor data 4. marketing research 5. intuition

Carlos is a manager at a Mens clothing store. he is very particular about how things are done, right down to how the shirts are folded and the positioning of the mannequins. He uses his authority and economic rewards to get his employees to comply with his directions. What type of manager is Carlos? 1. Democratic 2. free reign 3. participative 4. autocratic 5. authentic

Cook Tech, which sells kitchen appliances and accessories such as slow cookers, pressure cookers, and sous vide cookers, often sends reinforcement advertising to current users. What is the primary reason Cook Tech would use reinforcement promotion? 1. to inform potential buyers about the organization and its products 2. to stabilize sales 3. to identify potential buyers of its products 4. to assure current users of the product that they have made the right choice 5. to provide a history of the company

During both the Great Recession and the COVID-19 (coronavirus) pandemic, the market for which of the following short-term investments stopped functioning and had to be rescued by the Federal Reserve? 1. eurodollars 2. Treasury bills 3. consumer certificates of deposit 4. commercial paper 5. bonds

E-business differs from traditional business in that: 1. traditional business caters to business-to-business deals, which do not include direct selling. 2. e-business does not include social media. 3. traditional business typically uses the push strategy. 4. e-business carries out the goals of business through the use of the Internet. 5. traditional business typically uses the pull strategy.

Economic expansion occurs when ? 1. employment levels decline over time 2. a nation's standard of living drops dramatically 3. fewer goods and services are produced than consumer demand 4. an economy is growing and people are spending more money 5. prices being to rise and incomes begin to fall

Eli's former coworker asks him to be a part of a new company that uses blockchain technology to improve inventory tracking systems. Since the business involves high risk, Eli does not want to be held completely liable for the firm's debts if the project fails. In this case, Eli is most likely to prefer to participate as: 1. a general partner 2. a member of a cooperative 3. a sole proprietor 4. a limited partner 5. an owner of an S corporation

Esperanza oversees the production line at a car manufacturer. Each employee has a specific task to accomplish on the assembly line. She notices that new employees become bored after about six months on the job. Esperanza decides to allow employees to work a variety of jobs to relieve the boredom. This practice is most closely associated with: 1. job sharing. 2. flextime. 3. diversity. 4. job rotation. 5. specialization.

Eugene is an expert in genealogy. He runs an online business where he teaches people how to trace their family history through videoconferencing and workshops and provides digital tools for doing so. What must he first do to make sure this business will succeed? 1. He must convince the community to donate funds to help him start his genealogy business 2. he must find partners to help in fund his genealogy business 3. he must convince the community that genealogy is a worthwhile hobby 4. he must identify whether a genuine market niche exists for genealogy 5. he must find suppliers who are willing to take a chance on his genealogy business

Expression, a national clothing chain, wants to promote its products and encourage online orders. What direct marketing activity can the store use? 1. It can open additional store locations. 2. It can send sales associates door to door to sell its clothing. 3. It can run an in-store sale. 4. It can send catalogs to its customers. 5. It can customize its clothing to meet specific customer needs.

Fresh Skin Inc. sells its products in the United States. The company's employees are grouped into divisions based on region: North, South, Midwest, and West Coast. This is an example of ________ departmentalization. 1. customer 2. process 3. demographic 4. geographical 5. functional

Grow Farming Collective is an association of farmers from rural communities. The company does not aim to make profits but to help its members market their produce and purchase supplies at discounted prices. Thus, Grow Farming Collective is an example of a(n): 1. limited liability company 2. sole proprietorship 3. general partnership 4. cooperative 5. s corporation

Hakim wants his shaved ice business to satisfy its customers, so he develops a wide variety of popular flavors made with high-quality ingredients. What key component of a goal is this example most closely related to? 1. a target 2. a mission 3. an objective 4. an attribute 5. a time frame

Herzberg's motivational factors are similar to Maslow's: 1. physiological and esteem needs. 2. security and social needs. 3. physiological and security needs. 4. esteem and self-actualization needs. 5. social and esteem needs.

How are profits handled in communist systems? 1. only profits from government-owned industries go to the government 2. profits earned by small businesses may be reinvested in the business 3. businesses are free to keep profits after paying taxes 4. excess income goes to the government 5. individuals are free to keep profits after paying taxes

In which of the following scenarios is a business least likely to survive? 1. when a business continually alters, adapts, and develops products to keep pace with changing customer needs and wants 2. when a business sells ideas, benefits, philosophies, and experiences—not just goods and services 3. when a business finds out what consumers desire and then develops goods, services, or ideas accordingly 4. when a business focuses only on customer satisfaction and not on its own objectives, such as boosting productivity 5. when a business views the customer's perception of value as the ultimate measure of work performance and improving value

Ingrid works at a multinational shoe company that wants to function like a smaller company. Which of the following is something the company can do to achieve this goal? 1. the company can increase its corporate staff 2. the company can increase its management layers 3. the company can increase its work tasks 4. the company can make its operating units function more like independent small businesses. 5. the company can split each operating unit into a separate business

Jacob, a business student, registered for a class that focused on how money is managed by individuals, companies, and governments. What type of class did Jacob register for? 1. economics 2. budgeting 3. banking 4. finance 5. accounting

John was a top financial executive for an oil and gas company. He concealed illegal and misleading accounting practices for three years but was later exposed by a whistleblower. John was punished with a jail sentence under the ________ Act. 1. Gramm-Leach-Bliley 2. Glass-Steagall 3. Dodd-Frank 4. Sarbanes-Oxley 5. Celler-Kefauver

Jordan is a certified yoga instructor and nutrition coach. He started offering yoga lessons and nutrition workshops at his friend's businesses on the weekends. Based on the buzz created by his new business, several other local businesses want to hire Jordan. What is one area where he may struggle in managing his new business? 1. he may get stuck in a market niche 2. he may get fired by his boss 3. he may require a lot of money to start his business 4. he may lack the skills and experience to make good management decisions 5. he may lack the flexibility to adapt to changing market demands

Kalida's music store developed a smartphone application to improve its distribution, promotion, and new-product development. In this scenario, Kalida's store is using ________ forces. 1. economic 2. social 3. political 4. technological 5. competitive

Kelsey and Xavier have individual checking accounts, but they also share a separate checking account for household expenses. Once a month, Kelsey uses her bank's app to transfer $1,000 into the shared checking account from her individual checking account to cover her half of the month's expenses. What does this electronic banking action best describe? 1. an automated teller machine transaction 2. an automated clearinghouse transaction 3. a credit card transaction 4. an electronic funds transfer 5. mutual fund management

Kristoff wants to start a new copyediting business. He identifies that his target market is publishing companies that outsource their copyediting projects. Now that he has identified his target market, what must he do next? 1. pursue contracts with publishing companies 2. rent an office to house his business 3. hire talented copyeditors 4. develop an appropriate marketing mix 5. implement the marketing concept

Lisa, Saeed, and Kendall all own large houses, drive fancy cars, and belong to an elite country club. Lisa, Saeed, and Kendall most likely belong to the same: 1. social role. 2. reference group. 3. cultural group. 4. social class. 5. generational class.

Managers need adequate ?? resources to pay for essential activities. 1. Nonrenewable 2. Intangible 3. Human 4. Financial 5. Biological

Many service providers are considered retailers because they: 1. require a high initial start-up cost 2. focus on large market segments and institutional buyers 3. sell their services from a single store location 4. provide their services directly to ultimate customers 5. employ only a small number of people

Maren wants to open a third-party logistics firm. She has enough funds to start the business, but not enough to run it effectively. What is one thing she can do to provide working capital to her company? 1. He can work to find venture capitalists to support his business. 2. He can invest his profits into other businesses. 3. He can invest in the stock market. 4. He can refrain from drawing a full salary. 5. He can use his profits to pay his salary.

Margo runs a video game arcade and bar for adults. In addition to being the owner, Margo serves as the manager, head bartender, bookkeeper, and custodian. She often worries about receiving deliveries on time and employee problems. Which of the following is the most applicable challenge Margo faces? 1. pricing mistakes 2. underestimating the time commitment for success 3. having poor business concepts 4. a high stress level 5. lack of funding

Maria wants to run a UPS Store franchise location. Which of the following is NOT one of the advantages of franchising Maria can expect? 1. national and local advertising programs 2. centralized buying power 3. proven products and business formats 4. complete freedom in business decisions 5. brand-name appeal

Materials that have been purchased to be used as inputs in making other products are included in ________ inventory. 1. finished products 2. partial 3. work-in-process 4. raw materials 5. supplier

Millennials represent a huge business opportunity in the US. Which of the following is a defining feature of Millennials? 1. this cohort consists of people born between 1946 and 1964 2. this cohort prefers face-to-face meetings over virtual communication 3. this cohort is solely concerned about money 4. this cohort is concerned with advancement, recognition, and improved capabilities 5. this cohort is opposed to working remotely

Mitch's Sporting Goods Store decides to focus its new marketing campaigns on its yoga, softball, and tennis equipment in an attempt to attract more female customers. Which of the following is most likely the reason this store might want to focus on this market segment? 1. Men often shop with their significant others, so focusing on women will double their sales. 2. The company doesn't want to be perceived as sexist. 3. Women are more concerned about personal fitness than men. 4. Women are the largest market segment. 5. Women are more avid shoppers than men.

Nirav, Samantha, and Nev want to incorporate their small skateboard business. To do so, they must file legal documents with the appropriate state office. What are these legal documents called? 1. articles of partnership 2. corporate charters 3. corporation bylaws 4. articles of incorporation 5. corporate doctrines

Offshoring is different from outsourcing because 1. in outsourcing, tasks cannot be transferred to countries where supplies are less expensive. 2. in offshoring, the company subcontracts to a different company 3. in offshoring, a subsidiary cannot relocate a business process to another country. 4. in offshoring the company retains control of the process 5. outsourced jobs cannot be brought back for concerns like foreign workers not adding enough value

Outta This World Toys makes stuffed animals. Top management creates a strategic plan to introduce a new product category, children's smart electronics, within a period of five years. The company's middle management creates a series of three-month plans to ensure that the objectives of the strategic plan are properly implemented. Along with these plans, each department creates short-term plans that specify the actions to be taken by specific employees and teams to meet the objectives of the strategic plan and the three-month plans. The short-term plans established at the departmental level are referred to as: 1. contingency plans. 2. executive-level plans. 3. tactical plans. 4. operational plans. 5. static plans.

Ren inherits $5,000. Since he doesn't plan to spend the money right away, he decides to open an account that will guarantee him a fixed interest rate of 5% over five years. With this type of account, if Ren withdraws funds before the five years pass, he will have to pay a substantial penalty. What type of account did Ren open? 1. a Negotiable Order of Withdrawal account 2. a money market account 3. a checking account 4. a certificate of deposit 5. a demand deposit account

Ricardo observes his coworker stealing reams of printer paper to take home. In deciding whether or not to report this behavior, what must he do first? 1. seek guidance from his spouse 2. confront the colleague about the situation 3. discuss the situation hypothetically with his manager 4. evaluate the ethics of his choice and decide whether to ask for guidance 5. discuss the situation with other colleagues

Service quality is judged by ________, not by ________. 1. sales; the product label 2. consumer product safety organizations; consumers 3. market research; sales of the product 4. consumers; service providers 5. service providers; the government

Shari owns stock in a company but is unable to attend the annual stockholders' meeting. She chooses to vote by ??, a written authorization that assigns a stockholder's voting privilege to another. 1. leveraged buyout 2. preemptive right 3. stock certificate 4. proxy 5. profit deed

Shun owns a karate studio. He conducts lessons for both children and adults and offers a self-defense class once a week. Shun can be regarded as a(n): 1. corporate employee 2. inventor 3. shareholder 4. entrepreneur 5. investor

Smart Speaker Plus and AI Assist, two virtual assistant companies, merged, reducing the number of corporations competing within the smart speaker industry. This merger is an example of: 1. conglomerate merger 2. shark repellent merger 3. leveraged buyout 4. horizontal merger 5. vertical merger

Social networking sites are useful for ________, or the creation of relationships that mutually benefit the business and customer. 1. phishing 2. omni-channel retailing 3. B2C marketing 4. relationship marketing 5. hybrid marketing

Stephanie owns a medical supply store chain. A significant part of her job is determining the amount of income left after taxes and whether the company will retain this income or pay it out in dividends to its stockholders. The income in this scenario is ________ income. 1. gross 2. profit 3. service 4. net 5. operating

Store managers at a national chain decide to promote soups. The store managers work with the marketing department to make sure consumers know about the promotion. The marketing department works with the supply chain manager to make sure each store receives enough product. The regional manager works with assistant store managers to schedule enough cashiers to handle the increased customer traffic. What does this scenario best describe? 1. that it is easier to charge low prices all the time than to have a sale. 2. that the store doesn't need organizational structure to have a sale 3. that developing appropriate organizations structures is not challenging for managers 4. how people must work together to achieve the store's objectives 5. how the store manager must do everything to achieve the store's objectives.

Tamara is writing a term paper on a candy company. She researches the firm's shared values, beliefs, traditions, philosophies, rules, and role models for behavior. Tamara is researching the company's 1. organizational structure. 2. centralization. 3. business record. 4. organizational culture. 5. organizational chart.

The ?? style of leadership can be a powerful motivator because it demonstrates a great deal of trust and confidence in an employee and allows employees to meet their work demands with little or no interference. 1. totalitarian 2. repressive 3. autocratic 4. free-rein 5. authoritarian

The capacity of a restaurant would be the: 1. minimum operating cost of the restaurant during a workweek 2. average number of employees who work in the restaurant throughout the week 3. total number of customers who have visited the restaurant since its establishment 4. maximum number of customers who can be effectively served at any one particular time 5. average number of customers that visit the restaurant on weekends

The fact that environmental responsibility requires trade-offs means that it: 1. instigates trade relations 2. facilitates international competition 3. promotes the practice of fair trade 4. imposes costs on both business and the public 5. helps in generating profits

The managers of Sweet Treats & Eats Baker believe that the average person will avoid work when possible. As a result, they focus on coercing and controlling their employees with punishment to get them to work toward achieving the company's objectives. This company has adopted: 1. Herzberg's hygiene factors. 2. Herzberg's motivational factors. 3. Maslow's hierarchy of needs. 4. McGregor's Theory X perspective. 5. McGregor's Theory Y perspective.

The products of service providers tend to be more customized than those of manufacturers because: 1. goods cannot be customized 2. there is more capital required in service provision 3. the requirements of all customers are the same 4. different customers have different needs 5. technological innovations have reduced variability

To be effective, money must be readily received for the purchase of goods and services and for the settlement of debts. Which of the following characteristics of money does this statement reflect? 1. divisibility 2. stability 3. portability 4. acceptability 5. durability

Ultimately, what classifies a company as either a manufacturer or a service provider? 1. the perishability of the company's products 2. the amount of labor required to produce the company's products 3. the ability of the company to satisfy its customers 4. the level of tangibility of its principal product 5. the way the company combines tangible and intangible qualities

Which of the following involves paying a fee for usage rather than owning a particular asset? 1. factoring 2. merging 3. acquiring 4. leasing 5. purchasing

Which of the following is a challenge associated with the sharing economy? 1. inability to set rates 2. higher cost of services through this model 3. lack of flexibility 4. pressure over whether workers are independent contractors 5. competition from established firms

Which of the following is a disadvantage of a multidivisional structure? 1. it slows down decision making 2. it fails to create products that meet the needs of particular customers 3. it does not permit the delegation of decision making authority 4. it inevitably creates work duplication 5. it does not allow divisional and department managers to specialize

Which of the following is a part of informal communication channels? 1. directions 2. performance feedback 3. details on organizational strategy 4. gossip 5. assignment of tasks

Which of the following is a reason behind the failure of small businesses? 1. favorable tax reforms 2. high costs of start-up 3. managerial experience 4. poor business concept 5. overcapitalization

Which of the following is a reason it is difficult for sole proprietorships to hire qualified employees? 1. sole proprietorships prefer to spend their high profits on running the business rather than on hiring qualified employees. 2. many large corporations are downsizing and outsourcing tasks, so there are less well-trained employees available. 3. there is more room for advancement with in sole proprietorships. 4. it is difficult for sole proprietorships to match the wages and benefits offered by large corporations. 5. sole proprietors prefer to do all the work themselves, so they don't want to hire qualified employees.

Which of the following is a simpler medium of exchange than bartering? 1. trading various materials such as salt, cattle, fish, rocks, shells, and cloth for items of similar value 2. determining set values for types of goods, so they can be converted more easily to other goods 3. making it possible for any item to be freely converted to any other good upon agreement between parties 4. deciding on a single item that can be freely converted to any other good upon agreement between parties 5. reducing the list of items that can be used as currency

Which of the following is an advantage of a partnership? 1. proportional distribution of profits 2. unlimited liability 3. lack of business responsibility 4. few regulatory controls 5. unrestricted access to funds

Which of the following is an advantage of job specialization? 1. it allows workers to specialize in a variety of skills. 2. it completely eliminates the need for departmentalization within an organization. 3. it requires employees to perform more than one task within a firm 4. it makes training employees easier 5. it typically leads to satisfaction and better work relationships among employees

Which of the following is an implication of technological advances to small businesses? 1. it reduces a small business's ability to adapt to changing trends and market demands 2. it reduces a small company's ability to customize its services and products 3. it increases the ratio of baby boomers as employees in small business 4. it provides new opportunities for small businesses to expand their operations abroad 5. it fails to make any significant changes as small businesses cannot afford to use sophisticated technology in their operations

Which of the following is an international trade alliance between 21 nations with 60 percent of world GDP that promotes open trade and economic and technical cooperation among its member nations? 1. The EU 2. ASEAN 3. NAFTA 4. APEC 5. GATT

Which of the following is likely to be a result of job enrichment? 1. Employees will have to be micromanaged. 2. Employees will have to share jobs. 3. Employees will be allowed to choose their starting and ending times. 4. Employees will have more control and authority over their job. 5. Employee turnover will increase.

Which of the following is true about the General Agreement on Tariffs and Trade (GATT)? 1. The most recent round was the Paraguay round. 2. it was originally signed by 27 nations in 1947 3. the Uruguay Round promoted dumping 4. more than 100 nations abided by its rules 5. It sponsored rounds of negotiations aimed at increasing trade restrictions.

Which of the following is true regarding crisis management? 1. Once a company develops a crisis management plan, it never needs to reevaluate that plan. 2. Approximately 75 percent of businesses fail to reopen after a serious disaster because most companies don't make appropriate crisis management plans. 3. Even the most prepared company can't plan for how to react to every type of disaster. 4. Many companies have crisis management teams to deal specifically with problems, permitting other managers to continue to focus on their regular duties. 5. It is important to respond privately and deliberately when a disaster occurs.

Which of the following statements is true about sole proprietorships? 1. sole proprietorships net far more sales and income than corporations 2. sole proprietorships are typically small businesses employing fewer than 100 people 3. most sole proprietorships have limited liability for their debts 4. most sole proprietorships focus on services rather than on manufacturing of goods 5. sole proprietorships are the least common form of business organization in the United States

Which of the following statements is true of cryptocurrency? 1. Bitcoin has a fluctuating price, which makes it less desirable than fiat money 2. Cryptocurrency is both stable and portable. 3. Cryptocurrencies are useless for illegal transactions. 4. Cryptocurrencies are favored by governments because the transactions are easy to track. 5. Bitcoin, though widely discussed in the media, is the least popular cryptocurrency.

Which of the following statements is true of online shopping? 1. Businesses cannot track the purchasing habits of customers online. 2. Online shopping does not involve the use of cookies on a user's computer. 3. Customers can completely protect their personal information. 4. Marketers collect vast quantities of personal information, often without consumers' knowledge. 5. Companies never share or sell consumer information to third parties.

Which of the following statements is true regarding the distribution aspect of the marketing mix? 1. Intermediaries do not provide packaging and communication services. 2. Intermediaries cannot be eliminated because no other institutions can perform their services. 3. Even without wholesalers, producers do not have to deal directly with retailers or customers. 4. Intermediaries perform many activities required to move products efficiently from producers to consumers or industrial buyers. 5. Eliminating wholesalers and other middlemen results in lower prices for consumers.

Which of the following types of consumer marketing channels is used for products such as college textbooks, automobiles, and appliances? 1. direct-from-producer-to-consumer 2. indirect 3. long 4. producer-to-retailer-to-consumer 5. producer-to-wholesaler-to-retailer-to-consumer

While shopping at the grocery store, Alice notices a jar of peanut butter in plain packaging that does not have a brand name at all. This is an example of a: 1. brand name. 2. manufacturer brand. 3. shopping product. 4. generic product. 5. private distributor brand.

Widgets are: 1. identifying strings of text on users' computers that permit website operators to track how often a user visits the site, what he or she looks at while there, and in what sequence. 2. characters in Second Life, which is a virtual world. 3. little black and white squares that appear in magazines, posters, and store displays. 4. small bits of software on a website, desktop, or mobile device that perform a simple purpose, such as providing stock quotes. 5. antivirus programs that help individuals avoid identity theft.

Woodster Customs makes handmade furniture such as bed frames and dressers. Varnish is an example of ________ for this furniture company. 1. accessory equipment 2. office supplies 3. raw material 4. processed material 5. major equipment

Yang is an investor with a wide portfolio of stocks and bonds. He wants to sell his stocks and bonds to other investors. Which of the following provides a mechanism for Yang to accomplish this? 1. prediction markets 2. futures markets 3. primary markets 4. securities markets 5. foreign-exchange markets

________ are marketable securities that are short-term debt obligations sold by the U.S. government to raise money. 1. Commercial certificates of deposits 2. Eurodollar deposits 3. Secured loans 4. U.S. Treasury bills 5. Trade credits

________ is a written promise from one company to another to pay a certain amount of money. 1. Certificate of deposit 2. Secured bond 3. U.S. Treasury bill 4. Commercial paper 5. Trade credit

________ occurs when a message gets sent from person to person to person. It can be an extremely effective tool for marketers, particularly on the Internet. 1. Firewall 2. TV infomercial 3. Print media 4. Viral marketing 5. Community radio

________ permit website operators to track how often a user visits the site, what he or she looks at while there and in what sequence, and also allow web users to customize services and content. 1. QR codes 2. Bar codes 3. Apps 4. Cookies 5. Widgets

?? Make decisions about the use of an organization's resources are concerned with the planning organizing directing and controlling the organization's activities. 1. Creditors 2. Suppliers 3. Consumers 4. Shareholders 5. Managers

?? are often the Small Business Administration's principal means of providing direct management assistance to small businesses and entrepreneurs. 1. Service Corps of Retired Executives 2. Local Chambers of Commerce 3. Small Business Institutes 4. Active Corps of Executives 5. Small Business Development Centers

?? involves the interaction among nature and individuals, organizations, and business strategies and includes the assessment and improvement of business strategies, economic sectors, work practices, technologies, and lifestyles so that they maintain the health of the natural environment. 1. consumerism 2. biodiversity 3. philanthropy 4. dualism 5. sustainability

?? is best described as the result a firm wishes to achieve. 1. An Agenda 2. Protocol 3. A statute 4. A referendum 5. A goal

?? is the obligation placed on employees through delegation to perform assigned tasks satisfactorily. 1. specialization 2. hierarchy 3. transparency 4. bureaucracy 5. responsibility

?? is usually preferred when decisions of a company are very risky and low-level managers have very little decision-making authority. 1. specialization 2. liberalization 3. delegation of authority 4. employee empowerment 5. centralization

?? make decisions about the use of an organization's resources and are concerned with planning, organizing, directing, and controlling the organization's activities. 1. Creditors 2. Suppliers 3. Consumers 4. Shareholders 5. Managers

?? refer to the ability of an individual to think in abstract terms and to see how parts fit together to form the whole. 1. Social skills 2. human relations skills 3. technical skills 4. perceptual skills 5. conceptual skills

A health food company decides to rebrand. To coordinate, the vice president of marketing regularly communicates with the vice president of sales. Any related communication between them will be referred to as ?? communication. 1. downward 2. upward 3. informal 4. asynchronous 5. horizontal

A major distribution decision is how widely to distribute a product—that is, how many and what type of outlets should carry it. The intensity of market coverage depends on the 1. marketing intermediaries. 2. place. 3. product. 4. price. 5. buyer behavior.

A money market account differs from an interest-bearing checking account in that the owners of a money market account: 1. can take out their funds whenever they want in specific denominations. 2. cannot convert the funds into cash. 3. can withdraw funds only at the time of their retirement. 4. cannot withdraw the funds without advance notice of six months. 5. can write only a limited number of checks each month.

A prominent computer company allows buyers to select how much memory they want and what software they want installed. Though most parts of the laptops can be altered to meet the buyers' specifications, their structural body remains the same. This is an example of: 1. lean manufacturing 2. standardization 3. benchmarking 4. crowdsourcing 5. mass customization

A publicly traded financial services company has a beta of 0.25. What does this indicate? 1. Its stock price is only 25% of what it should be, compared to other companies' stock prices. 2. Its stock price is 25% higher than it should be, compared to other companies' stock prices. 3. The market value of its stock is $25 per share. 4. The par value of its stock is $25 per share. 5. Its stock price is 25% as volatile as the Standard & Poor's 500 Index.

A snack subscription service wants to attract new customers. The company offers coupons to new users and a sweepstake on social media to get people to subscribe. These are examples of: 1. direct retail 2. personal selling 3. advertising 4. publicity 5. sales promotion

A successful digital marketing strategy focuses: 1. exclusively on giving discounts for products. 2. exclusively on developing a brand name or label. 3. on reducing costs of online transactions. 4. on creating products that marketers want. 5. on creating products that customers need.

All of the following are reasons companies use promotion except to: 1. reinforce customers. 2. stimulate demand. 3. inform customers. 4. stabilize sales. 5. manage pricing.

Allowing some employees to work at home part-time is: 1. A type of job enrichment 2. Likely to increase overhead costs for business 3. An example of job enlargement 4. Ideal for all companies 5. A flexible scheduling strategy

An investor wants to compare the performance of one automaker with another on an equal, or per-share, basis. What is a general finding associated with this practice? 1. The fewer shares of stock a company issues, the less income is available for each share. 2. When two companies issue the same amount of stock, one will still generate more income than the other. 3. The more shares of stock a company issues, the more income is available for each share. 4. The number of shares of stock a company issues has no impact on its income. 5. The more shares of stock a company issues, the less income is available for each share.

Anastasia manages a quick-service restaurant that employs several team members including shift leaders, cashiers, cooks, and dishwashers. Which of the following is a hygiene factor Anastasia can use to ensure that her employees are satisfied with their work setting? 1. She can give them more responsibility over their work. 2. She can help them achieve their goals. 3. She can offer advancement opportunities. 4. She can recognize their hard work. 5. She can provide adequate wages.

Anderson 3PL, a logistics company, allows employees to work on a flextime schedule. Employees must be present from 9:00 a.m. to 3:00 p.m. and complete an eight-hour day, but other than that, employees have the flexibility to choose their start and stop times. All of the following are benefits of this type of scheduling except it: 1. serves customers better by allowing more coverage of customers over longer hours. 2. reduces driving in rush hour traffic. 3. uses workstations and facilities better by staggering employee use. 4. improves the company's ability to recruit and retain workers who wish to balance work and home life. 5. reduces the total number of hours that employees work.

Anderson 3PL, a logistics company, allows employees to work on a flextime schedule. Employees must be present from 9:00 a.m. to 3:00 p.m. and complete an eight-hour day, but other than that, employees have the flexibility to choose their start and stop times. All of the following are benefits of this type of scheduling except it: 1. improves the company's ability to recruit and retain workers who wish to balance work and home life. 2. serves customers better by allowing more coverage of customers over longer hours. 3. uses workstations and facilities better by staggering employee use. 4. reduces driving in rush hour traffic. 5. reduces the total number of hours that employees work.

Annie wants to start her own small business. All of the following are things she needs to do before she starts her business EXCEPT: 1. make decisions about form of ownership 2. make decisions about financial resources needed 3. devise a strategy to guide planning and development in the business 4. have a general idea for the business 5. hire employees to work for the business

Anya owns a Mediterranean restaurant. She uses Facebook Messenger to have real-time exchanges and almost instant communication with her customers. For instance, a guest messages the restaurant to ask about a particular dish, and Anya is able to answer within minutes. All of the following are benefits of using real-time exchanges except they 1. stimulate interactive communication. 2. forge closer relationships. 3. reveal supplier needs. 4. reveal consumer needs. 5. eliminate the need to address customer concerns.

At the end of each accounting period, the dollar amounts in all the revenue and expense accounts are moved into an account called: 1. net earnings. 2. net expense. 3. interest expense. 4. retained expense. 5. retained earnings.

Benchmarking lets an organization: 1. limit employee participation in total quality management 2. eliminate quality control 3. replace quality with productivity 4. protect its processes and trade secrets from rival firms 5. know where it stands competitively in its industry

Bryan found the gluten-free product section at his local grocery stores to be lacking, so he opened a small boutique grocery store that exclusively sold gluten-free snacks, desserts, and other staples. Which advantage of small-business ownership is this scenario most closely related to? 1. reputation 2. independence 3. costs 4. flexibility 5. focus

Cadence Electronics is determining the demand for wireless earbuds, a new product it is considering for development, and how much consumers are willing to pay for them. For this, Cadence Electronics would most likely rely on: 1. trial and error. 2. case studies. 3. intuition. 4. proprietary competitor data. 5. marketing research.

Car manufacturers use tires, window glass, batteries, and spark plugs, among other things, in the assembly of vehicles. These items can be classified as: 1. processed materials. 2. accessory equipment. 3. major equipment. 4. raw materials. 5. component parts.

Carlos and Jackson live and work in Colorado, but they frequently vacation in Los Angeles, staying at their second home. When they aren't visiting LA, they rent the property to other people for $100 per night. This is an example of: 1. retailing 2. direct selling 3. social entrepreneurship 4. a service business 5. the sharing economy

Cedric is opening a high-end butcher shop. He is working on developing the company's business plan. Which of the following is something the business plan should accomplish? 1. permanently setting the business's goals and strategies 2. limiting the business's flexibility 3. establishing rules and regulations for how the business will be run 4. eliminating any future weaknesses of the business 5. estimating the business's income and expenses

Cedric, a marketing coordinator, runs a Facebook advertisement that results in $2,000 in sales for his company. Afterward, his manager, Alaric, announces that employees who run ad campaigns resulting in $2,000 or more in sales will receive a $100 bonus. Alaric's action is based on: 1. Theory X. 2. expectancy theory. 3. Theory Z. 4. job rotation. 5. behavior modification

Chelsea is a marketing associate at a cosmetics company. She submits a weekly activity report summarizing her work to the marketing manager. What type of communication does this scenario describe? 1. downward communication 2. horizontal communication 3. confidential communication 4. diagonal communication 5. upward communication

Chen's manager is frequently seen watching funny videos on the TikTok app at work. As a result, Chen and the rest of the team use the video-sharing social networking app at work as well. This is an example of? 1. Personal ethics 2. the influence of coworkers 3. opportunity for misconduct 4. individual moral standards 5. the influence of managers

Claudia and Giada own an online store that sells wall clocks. From an operations perspective, the clocks they build are: 1. equipment 2. processes 3. intangible resources 4. inputs 5. outputs

Color Cosmetics, a makeup store, purchases cosmetics from manufacturers and sells them to consumers for personal use. In this scenario, Color Cosmetics is a: 1. financier. 2. wholesaler. 3. manufacturer. 4. customer. 5. retailer.

Dale, a senior accountant, references the company's accounting statements as the basis for a summary of his firm's financial information, products, and growth plans for owners and potential investors. The summary Dale is preparing is called a(n): 1. budget. 2. schedule. 3. agenda. 4. mission. 5. annual report.

Damon and Edward are both managers at a department store. Damon is the senior manager of the finance department and Edward is a lower-level manager from the jewelry department. When these managers communicate it is know as ?? communication. 1. informal 2. horizontal 3. downward 4. upward 5. diagonal

Daniel and Mark both collect baseball cards. Daniel has a valuable and rare card that Mark has been wanting for a long time. What must Mark do to convince Daniel to part with this card? 1. Mark must simply have something valuable to exchange for Daniel's valuable and rare card. 2. Mark must find a clever way to steal Daniel's valuable and rare card. 3. Mark must hide the fact that he wants Daniel's valuable and rare card. 4. Mark must trick Daniel into giving up his valuable and rare card. 5. Mark must offer Daniel something he values enough to give up his valuable and rare card.

Daniel is an HVAC repairman. The money he invests in tools and supplies in order to perform his services are: 1. outputs 2. inventories 3. stocks 4. processes 5. inputs

Deodorant, body wash, bar soap, and liquid soap are products in Colgate-Palmolive's personal care: 1. marketing mix. 2. product position. 3. product innovation. 4. product width. 5. product line.

Due to the increasing purchasing power and per-capita income of the population of United Nombavia, a company decided to launch its premium line of clothing and bags in the country. Which of the following environmental forces primarily influenced this company's decision? 1. religious forces 2. political forces 3. technological forces 4. legal forces 5. economic forces

Duncan, a sales director, creates a goal-setting program for his company. In the program, sales managers work with each sales representative to set personalized goals. If goals are met at the end of each quarter, the employee receives a small bonus and is recognized in the company's monthly newsletter. If goals are met every quarter during the year, the employee is eligible for a raise. This is an example of a job ________ program. 1. enlargement 2. rotation 3. specification 4. specialization 5. enrichment

E-business differs from traditional business in that: 1. e-business does not include social media. 2. traditional business typically uses the pull strategy. 3. traditional business typically uses the push strategy. 4. traditional business caters to business-to-business deals, which do not include direct selling. 5. e-business carries out the goals of business through the use of the Internet.

Egalitarianism refers to the: 1. restriction of competition in small businesses by government regulations. 2. concept of the rich getting richer and the poor getting poorer. 3. restrictions on taking up non-government jobs. 4. exemption of taxes for successful businesses. 5. equal distribution of income and social services.

Facility location decisions are significant for an organization because: 1. most customer contact occurs in manufacturing facilities 2. of the customers' preference to have production facilities located nearby 3. speed of delivery is not very important 4. proximity to market or community characteristics are not important factors 5. of the high costs involved with the decisions

Firmware Inc., a new technology company, launches a virtual reality gaming system. The managers at Firmware Inc. want to price the product in a way that would enable the company to recover the investments made toward developing the product in the quickest way possible. Which pricing strategy would be most effective for Firmware Inc.? 1. reference pricing 2. price discounting 3. odd pricing 4. price comparing 5. price skimming

For greater accessibility, Hakin Inc. has placed its products at every popular superstore. The convenience provided by the company is an example of reducing ________ costs. 1. overhead 2. fixed 3. tangible 4. variable 5. nonmonetary

Freedom Clothing has several locations in Dallas and Houston. Each location has a manager who runs the location as they see fit. The clothing retailer has achieved success by empowering its employees to make their own decisions and follow their passions. Which management theory does Freedom Clothing follow? 1. Herzberg's two-factor theory 2. equity theory 3. McGregor's Theory X 4. Maslow's hierarchy of needs 5. McGregor's Theory Y

Gabrielle is a marketer for an online shoe store. An important task she performs regularly is measuring the website's traffic and performance. This task is known as: 1. primary research. 2. secondary research. 3. virtual testing. 4. social networking. 5. marketing analytics.

Global Gear sells a wearable fitness tracker. This fitness tracker is currently experiencing a declining sales curve and declining profits that are characteristic of the maturity stage. Which of the following is likely a reason for this decline in sales and profits? 1. limited product acceptance 2. limited consumer awareness 3. lack of emphasis on the product's benefits 4. too much money spent on research and development 5. severe competition

Google Wallet is a: 1. QR scanning app that stores hidden messages contained in the code. 2. software that stores virtual currency to make payments via smartphone easy. 3. widget that provides stock quotes. 4. virtual currency that can be used to make a payment via smartphone. 5. mobile app that can make mobile payments using stored credit card information.

Hector, the chief executive officer of a fitness equipment company, delegates responsibility for a new marketing campaign to Beth, the director of marketing. Beth accepts and then delegates various activities, such as social media management and e-mail creation, to Charles, the digital marketing manager. Charles then assigns copywriting to Cedric, a marketing associate. Who is ultimately accountable to Hector for the marketing campaign? 1. Charles 2. Cedric 3. Both Charles and Cedric 4. Hector 5. Beth

How can managers avoid equity problems? 1. by offering flextime to all employees 2. by adding more tasks to a job instead of treating each task as separate 3. by incorporating motivational factors, such as opportunity for achievement 4. by creating a competitive environment at the workplace 5. by ensuring that rewards are distributed on the basis of performance

How long a time period do strategic plans generally cover? 1. Longer than five years 2. one to three months 3. six months to a year 4. three to six months 5. one year or longer

If a company's goal is to develop an image of having high-quality luxury products, it should employ the ___________ strategy. 1. even/odd pricing 2. inclusive pricing 3. penetration pricing 4. price discounting 5. symbolic/prestige pricing

In the context of digital communication, ________ is the ability of a marketer to identify customers before they make a purchase. 1. interactivity 2. connectivity 3. control 4. accessibility 5. addressability

Jack is a manager at a tubing company along the river. The company owner depends on Jack and his employees to determine sales promotions because the competition is so intense. For example, Jack notices many large parties like to tube in the summer months, so he implements a group discount. What type of organization does Jack manage? 1. hierarchical 2. competitive 3. centralized 4. overcentralized 5. decentralized

Jeremy has decided to buy a new car. He has done a lot of research online and gone to several car dealerships to test drive cars. However, in order to buy the car, Jeremy must take a car loan. He also must get the car inspected and registered before he can start driving it. In this scenario, which of the following is a nonmonetary cost associated with Jeremy's car purchase? 1. the monthly installments of the car loan 2. the inspection fees paid on the car 3. the interest rates on the car loan 4. the registration fees paid on the car 5. the time taken to test drive various car models

Keerthi works for an advertising agency. She uses consumer information to better target advertisements to online customers. As a result, which of the following would Keerthi see as a threat? 1. current tracking technology 2. free consumer data 3. customized services 4. cookies 5. a consumer data protection law

Kelsey, Tatum, and Octavia were all hired at the same time to work for a public relations agency. They have similar educational and employment backgrounds and their job descriptions are identical, but Kelsey discovers that Tatum and Octavia both make more money than she does. Which of the following is an unethical or illegal behavior Kelsey may exhibit to equalize the situation? 1. She may suggest to management that Tatum and Octavia's inputs should increase. 2. She may try to have Tatum and Octavia's outputs decreased. 3. She may look for a job at a different company. 4. She may ask for a raise or promotion. 5. She may start stealing supplies from the company.

Kemmen Foods, a company that manufactures and sells breakfast cereals, has customized its cereal flavors to suit different lifestyles, personal tastes, and age groups. For example, it makes organic cereals for its health-conscious customers and colorful cereals with cartoon characters for children. Which of the following market segment approaches is Kemmen Foods using in this scenario? 1. mass-market approach 2. total-market approach 3. concentration approach 4. niche-market approach 5. multisegment approach

Kevin is the president of an advertising firm. He has many years of varied experience and he spends most of his time making strategic decisions about how to use the company's resources. On which management function does he spend most of his time? 1. Staffing 2. Controlling 3. organizing 4. benchmarking 5. planning

Luis owes Bank of America $3,000 for a loan he took out to support his business. For Luis, this loan is 1. an asset. 2. a benefit. 3. an expense. 4. a transaction. 5. a liability.

Makayla and Tiana own a boutique downtown called Look at Me. They purchase personal care items, such as handmade bars of soap, and jewelry from local artists and wholesalers to then sell to their customers. Look at Me is a: 1. direct sales company 2. manufacturer 3. wholesaler 4. direct marketing company 5. retailer

Malachi is a manager at a home goods store. He subscribes to Theory X. In managing his employees, he is most likely to: 1. ignore the security needs of his employees. 2. trust his employees. 3. ignore the physiological needs of his employees. 4. avoid micromanaging his employees. 5. ignore his employee's needs for personal growth.

Mandy owns a pest control company. Over the years, the market has changed, and Mandy has had to adapt how she structures the company's resources and activities to continue to accomplish her business objectives efficiently and effectively. What does this scenario demonstrate? 1. organizing only occurs once 2. organizing duplicates resources 3. organizing slows down decision making 4. organizing rarely occurs 5. organizing occurs continuously

Maria wants to run a UPS store franchise location. Which of the following is NOT one of the advantages of franchising Maria can expect? 1. brand-name appeal 2. national and local advertising programs 3. centralized buying power 4. proven products and business formats 5. complete freedom in business decisions

Melanie is one of the senior managers in the consumer electronics department of a large company. She is part of a team that determines the objectives of the department based on future trends in the industry and decides how to accomplish them. Melanie is involved in the management function of: 1. Staffing 2. crowd sourcing 3. recruiting 4. factoring 5. planning

Money must be very difficult to counterfeit, that is, to: 1. convert into another form of currency. 2. use for cumbersome bartering. 3. divide into smaller units. 4. store as assets. 5. duplicate illegally.

Motorcycles are an example of ________ products. 1. difficult-to-obtain 2. shopping 3. generic 4. convenience 5. specialty

Nadine is the marketing manager for a company that produces innovative educational technology products. Her colleagues have created a new set of simulations that allow philosophy students to respond to ethical dilemmas. All of the following are things Nadine and her colleagues must do to ensure that this new product succeeds in the market EXCEPT: 1. making sure the product is conveniently available. 2. uniquely promoting the product. 3. competitively pricing the product. 4. creating trust and effective relationships with customers. 5. simply selling and advertising the product.

Orchard Handbags, a manufacturer of women's accessories, makes the vast majority of its sales on credit. Which of the following is something Orchard Handbags may do to encourage quick payment of these accounts receivable? 1. extend credit to customers who don't have good credit ratings to encourage them to feel obligated to pay their balances quickly 2. threaten to charge customers extra money if they pay their balances after the specified time period is over 3. call each customer's employer to notify them of late payment 4. offer customers a free handbag once a month until they pay off their balance 5. offer customers discounts if they pay off their balances within a specified time period

Peter subscribes to the Outdoor Land email newsletter. Thanks to Outdoor Land's advanced email marketing platform, Peter is able to adjust his communication settings. Peter sets up his account so that he only receives marketing communications related to apparel and sets the frequency to one email per week. Which of the following characteristics of digital marketing does this scenario best describe? 1. connectivity 2. accessibility 3. addressability 4. interactivity 5. control

Randall is a packer in the frozen-foods section of a grocery store. He labels meat steaks with little or no fat as "AA" and meat steaks with more fat as "AB." When he does this, he is primarily engaging in the marketing function of 1. financing. 2. buying. 3. storing. 4. scoring. 5. grading.

Ricardo is opening a small boutique catering to pet owners. To start his business, Ricardo needs at least $50,000 in initial financing to do all of the following EXCEPT: 1. Rent Space 2. buy the initial inventory 3. purchase or lease equipment 4. provide working capital 5. pay off any debts so they don't affect the business

Rick is an entry-level employee for a major pharmaceutical firm. As an employee, why should he look at his company's financial statements? 1. to ensure that his job is secure 2. to see what his coworkers are making 3. to get a sense of how competitive companies pay their employees 4. to determine if his company needs his help to succeed 5. to establish reasonable expectations for salary and other benefit requests

Samar seeks advice from a former professor regarding his new candle business. The professor suggests he research equity financing as a source of funds for the business. Which of the following is a source of equity financing? 1. securing government loans 2. receiving trade credit from suppliers 3. borrowing money from friends 4. securing short term loans from a family member 5. selling personal assets to raise funds

Shari owns stock in a company but is unable to attend the annual stockholders' meeting. She chooses to vote by ________, a written authorization that assigns a stockholder's voting privilege to another. 1. preemptive right 2. leveraged buyout 3. profit deed 4. stock certificate 5. proxy

Social networking sites are useful for ________, or the creation of relationships that mutually benefit the business and customer. 1. hybrid marketing 2. B2C marketing 3. phishing 4. omni-channel retailing 5. relationship marketing

Stephanie, a manager for an office supply company, divides work into small units and assigns it to specific individuals. This is a task related to the management function of: 1. evaluating. 2. controlling. 3. recruiting. 4. staffing. 5. organizing.

The Federal Reserve Board was established by Congress in 1913 to: 1. regulate corporate money laundering. 2. collect taxes and enforce the Internal Revenue Code. 3. provide benefits to retirees and the unemployed. 4. facilitate global monetary cooperation. 5. regulate the banking industry.

The ________ identifies risk areas for online communication and issues warnings to consumers as misconduct is reported. 1. National Cyber Security Division 2. U.S. Securities and Exchange Commission 3. Consumer Financial Protection Bureau 4. Federal Bureau of Investigation 5. Federal Trade Commission

The ________ ratio is a far more stringent measure of liquidity than the current ratio because it eliminates inventory, the least liquid current asset. 1. debt utilization 2. inventory turnover 3. asset utilization 4. receivables turnover 5. quick

The era of the production orientation was characterized by 1. the realization of entrepreneurs that they must first determine what customers want and then produce it. 2. a belief that it was more effective to retain existing customers than it was to find new ones. 3. a belief that sales were the primary means of increasing profits. 4. the view adopted by businesspeople that advertising and personal selling were the primary means of increasing profits. 5. the development of new technologies that made it possible to manufacture goods with ever increasing efficiency.

The form of business ownership that has the ability to raise capital most easily is a: 1. private corporation 2. sole proprietorship 3. joint venture 4. limited partnership 5. public corporation

The independently owned and operated cafeteria inside the local hospital uses inputs such as money, groceries, and labor to transform food into hot meals. In this scenario, which of the following is a transformation process? 1. hiring employees 2. bookmarking recipes online 3. paying rent to the hospital 4. receiving positive feedback from guests 5. cooking the ingredients

True Pharmaceuticals manufactures and sells a variety of drugs for a market consisting of people of different genders, ages, educational backgrounds, lifestyles, geographic locations, and income levels. It assumes that all buyers have similar medical needs and wants. In this scenario, True Pharmaceuticals is most likely demonstrating a ________ approach to marketing. 1. multisegment 2. niche-market 3. differentiated-market 4. concentration 5. total-market

Ultimate Games, a video game developer, creates a web-based journal on its corporate website in which its writers can editorialize and interact with other Internet users. Ultimate Games uses this platform to promote its latest releases. This is an example of a(n) 1. wiki. 2. online newspaper. 3. social networking site. 4. virtual realities. 5. blog.

Ultimate Games, a video game developer, creates a web-based journal on its corporate website in which its writers can editorialize and interact with other Internet users. Ultimate Games uses this platform to promote its latest releases. This is an example of a(n): 1. wiki. 2. virtual realities. 3. social networking site. 4. online newspaper. 5. blog.

Vicente and Simon are entrepreneurs who want to start their own business. Which of the following would attract them to retailing? 1. there are no costs associated with opening a retail business 2. retailing doesn't require interacting directly with consumers 3. gaining experience in retail is a challenge, so they would have less competition 4. retailing limits a firm's need to focus on specific groups of consumers 5. retailing requires low initial financing.

Wells Fargo agrees to grant Nikkita's small business a ???, which is an agreement by which a financial institution promises to lend a business a predetermined sum on demand. 1. trade credit 2. mutual fund 3. nonrecourse loan 4. trust fund 5. line of credit

What is an advantage of using a flextime schedule? 1. It allows two people to do one job. 2. It increases communication between managers and employees. 3. It reduces the working hours of employees and thus reduces pressure. 4. It reduces security risks. 5. It improves the ability to recruit and retain workers who wish to balance work and home life.

When the Federal Reserve Board increases the reserve requirements, the: 1. amount of insurance for accounts increases. 2. amount of money in circulation increases. 3. checks in the system are declared invalid. 4. percentage of deposits that banks must hold in reserve declines. 5. money supply declines.

Which form of business is least used in the United States? 1. S corporations 2. C corporations 3. joint ventures 4. sole proprietorships 5. partnerships

Which of the following best illustrates a small business operating in a retail industry as opposed to wholesaling its products? 1. Ink & Iron, an apparel company, sells its merchandise to clothing retailers 2. Stick It manufactures unique stickers and sells them in bulk to office supply stores 3. Matthew bakes doughnuts and sells them to restaurants 4. Mother Chip manufactures computer parts that are resold by tech companies 5. Bubbles & Such imports soap and directly sells it to customers through kiosks

Which of the following characteristics distinguishes digital marketing from traditional marketing? 1. adaptability 2. creativity 3. receptivity 4. accountability 5. addressability

Which of the following does an organizational chart display? 1. shared values 2. plant layouts 3. assembly lines 4. shared beliefs 5. chain of command

Which of the following has developed a Corruption Perceptions Index that ranks countries by their perceived levels of corruption? 1. Global Business Ethics Survey 2. Ethics and Compliance Initiative 3. Daniels Fund Ethics Initiative 4. Consumer Financial Protection Bureau 5. Transparency International

Which of the following is a characteristic feature of service businesses? 1. the service experience remains constant each time. 2. they are not labor-intensive 3. they cannot incorporate quality standards 4. the resultant output is mostly tangible 5. the degree of variation of inputs and outputs is high

Which of the following is a disadvantage of matrix structures? 1. they provide no scope for flexibility 2. they do not permit intersecting lines of authority 3. they require employees to report to only one manager 4. they bring together specialists from the same department 5. they are generally expensive and quite complex

Which of the following is a disadvantage of sole proprietorships? 1. sharing of profits with major stockholders 2. stringent government regulations 3. absence of a tax-exempt retirement account. 4. lack of business control 5. lack of continuity

Which of the following is a social force that influences the marketing environment? 1. political actions of interest groups 2. computers and technological advances 3. unemployment 4. purchasing power 5. the public's opinions about the environment

Which of the following is a way people can avoid becoming victims of online fraud? 1. Give out personal information regardless of whether or not the site appears legitimate. 2. Avoid visiting websites that use biometrics. 3. Avoid credit cards with advanced security features. 4. Create simple passwords that are easy to remember. 5. Use a different password for each website users visit.

Which of the following is an advantage of multidivisional structures? 1. they are the simplest form of organizational structure 2. they completely eliminate work duplication among different divisions 3. they are highly effective when standardized products are required 4. they make it easy to realize economies of scale that result from grouping functions together. 5. they allow divisional and department managers to specialize

Which of the following is not a question to consider in determining whether an action is ethical? 1. would this activity be accepted by your coworkers 2. are there any potential legal restrictions or violations that could result from the action 3. does your company have a specific code of ethics or policy on the action. 4. how does this activity fit with your own beliefs and values 5. is this activity customary across all industries in your country

Which of the following is true of services and their providers? 1. the degree of variation of inputs and outputs is negligible for services. 2. services can be provided in an isolated environment, away from customers 3. service providers are more capital-intensive than labor-intensive 4. service experience is usually constant, irrespective of the person delivery or receiving it 5. the quality of service experience is controlled by a service contact employee

Which of the following is true regarding a product's packaging? 1. Product packaging never influences consumers' buying decisions. 2. Packaging only performs one main function, product protection. 3. Consumers do not look at packaging while shopping. 4. Organizations should frequently change the designs on their highly popular products to maintain consumer interest. 5. Consumers are willing to pay more for certain packaging attributes, such as clearly stated nutrition and ingredient labeling.

Which of the following options is likely to be most effective for retaining employees who are trying to juggle their work duties with other responsibilities and needs? 1. job hopping 2. job rotation 3. job enhancement 4. job enrichment 5. job sharing

Which of the following organizational structures is also called a project management structure? 1. multidivisional structure 2. web structure 3. line-and-staff structure 4. line structure 5. matrix structure

Which of the following refers to the process of building relationships and sharing information with colleagues who can help a manager achieve the items on his or her agenda? 1. Benchmarking 2. Monitoring 3. Controlling 4. Directing 5. networking

Which of the following statements about the Dodd-Frank Act passed by the US Congress in 2010 is false? 1. It establishes the Consumer Finance Protection Bureau. 2. It protects consumers from deceptive financial practices. 3. It increases accountability and transparency in the financial industry. 4. It encourages whistleblowers to provide information about corporate misconduct through monetary rewards. 5. It provides monetary rewards to those organizations that take action against employees involved in professional misconduct.

Which of the following statements is true of joint ventures? 1. they are mostly formed to last forever 2. they restrict the number and types of shareholders in the organization 3. they are set up not to make profits but to provide service to the community 4. they enjoy reduced government regulations when compared to general partnerships 5. they are popular in situations that call for large investments

Which of the following statements is true of the eurodollar market? 1. It is used to trade the euro in the U.S. markets. 2. It refers to any dollar-denominated deposit in a U.S. bank. 3. It was originally developed by American banks. 4. It offers risk-free investments as they are backed by the U.S. government. 5. It is used by companies to invest idle cash in international markets.

Which of the following statements is true regarding the sources of funds available to a sole proprietor? 1. Sole proprietors cannot obtain funds from commercial banks. 2. Sole proprietors have access to many sources of funds 3. Sole proprietors pay lower interest rates on funds borrowed from banks than do large corporations 4. Sole proprietors can sell stocks and bonds to the public to raise money 5. Often, sole proprietors must pledge a car, a house, or other real estate, or other personal assets to guarantee a loan

Which of the following teams consists of fairy small groups of workers brought together to address specific quality, service, or productivity problems within an organization? 1. service providers 2. product-development teams 3. focus groups 4. project teams 5. quality-assurance teams

Which of the following theories is associated with the piece-rate system? 1. the two-factor theory 2. the theory of the Hawthorne effect 3. the theory of the hierarchy of needs 4. Theory X and Theory Y 5. the classical theory of motivation

Which of the following trends is having a profound effect on marketing? 1. the tendency of consumers to keep their product feedback to themselves 2. the tendency of marketers to shut down consumer-generated information 3. the decrease in creating and reading consumer-generated content 4. consumers' tendency to trust corporations over other consumers 5. the increased tendency of consumers to publish their thoughts, opinions, reviews, and product discussions through blogs or digital media

Which of the statements about the Dodd-Frank Act passed by the US Congress in 2010 is false? 1. It increases accountability and transparency in the financial industry. 2. It establishes the Consumer Financial Protection Bureau. 3. It protects consumers from deceptive financial practices. 4. It encourages whistleblowers to provide information about corporate conduct through monetary rewards. 5. It provides monetary rewards to those organizations that take action against employees involved in professional misconduct.

Which type of stockholders usually has the right to vote and elect the board of directors? 1. a preferred stockholder 2. a capital stockholder 3. a proxy stockholder 4. a perpetual stockholder 5. a common stockholder

Wonhee is a talented graphic designer who starts her own graphic design firm, using her personal savings to start the company. Initially, she is able to find clients and complete projects successfully. However, as her business grows, she fails to make good decisions in hiring new employees, billing the clients, and negotiating prices. She eventually ends up liquidating the business. Which of the following causes of small-business failure does this scenario best illustrate? 1. debt factoring 2. debt financing 3. economies of scale 4. undercapitalization 5. managerial inexperience

________ are issued by commercial banks and brokerage companies, are available in minimum amounts of $100,000, and may be traded prior to maturity. 1. U.S. Treasury bills 2. Trade credits 3. Commercial loans 4. Serial bonds 5. Commercial certificates of deposit

________ distribution makes a product available in as many outlets as possible. 1. Selective 2. Exclusive 3. Relaxed 4. Sporadic 5. Intensive

________ involves changing behavior and encouraging appropriate actions by relating the consequences of behavior to the behavior itself. 1. Operant conditioning 2. Theory X 3. Hygiene factors of the two-factor theory 4. Theory Z 5. Behavior modification

________ is a review website that can be used to monitor firm reputation. 1. Travelocity 2. LinkedIn 3. Twitter 4. Wikipedia 5. Yelp

which of the following best describes the importance of monitoring the consequences of decisions? 1. Monitoring the consequences of decisions is the best immediate logical step after selecting the best option. 2. Monitoring the consequences always leads to redefining the decision situation from the beginning. 3. Monitoring the consequences of decisions is not important and it is expensive. 4. The consequences of decisions have to be monitored only when the desired results are achieved. 5. The consequences of decisions may not be apparent quickly enough to make changes without monitoring.

which of the following question does the mission statement of an organization seek to answer? 1. How do we expand our business? 2. What are our staffing requirements? 3. Why are we not cost-effective? 4. How do we meet the annual sales target? 5. What business are we in?

Amal is a small business owner. She has a team of managers including a human resources manager, an operations manager, a sales manager and a marketing manager. Who is responsible for the financial decisions that arise in the course of business?

Amal

A former executive of British Airways was indicted for accepting X in the form of $5 million in payments from an airport contractor in exchange for helping the ground handling company win contracts. What is this an example of?

Bribes

What is the funds used to acquire the natural and human resources needed to provide products.

Capital

What measures changes in the prices of goods and services purchased for consumption by typical urban households?

Consumer Price Index

What is the term for the price at which the number of products that businesses are willing to supply equals the number of products consumers are willing to purchase at a point in time?

Equilibrium

A US couple goes to Europe for their honeymoon and brings back $3,000 in merchandise. Because the couple exceeded the duty-free limit, they will have to pay a fixed tariff. T or F

False

A customer at Hawaiian Grill pays for their meal with a card. The card uses the customer's preapproved line of credit granted by a bank, and Hawaiian Grill is charged a transaction fee of 2%. Based on this information, the customer paid with a reward card. T or F

False

A furniture company continues to sell a dresser despite multiple complaints of tipping and falling. According to the Consumer Bill of Rights, the right to be informed means the business must not knowingly sell anything that could result ini personal injury or harm to consumers. T or F

False

A horizontal merger results when two firms in unrelated industries merge. T or F

False

A marketable security is an address, usually a commercial bank, at which a company receives payments in order to speed collections from customers. T or F

False

A web development firm subcontracts developers in India to supplement its US staff because it is less expensive than hiring in the US. This is an example of offshoring. T or F

False

A wide span of management is appropriate when a manager and subordinates are not in close proximity. T or F

False

Aaron has satisfied his physiological needs as well as his security needs. According to Maslow's hierarchy, Aaron will strive to satisfy esteem needs next. T or F

False

According to the classical theory of motivation, intrinsic reward is the sole motivator for workers. T or F

False

Alan wants to operate a Dunkin' Donuts franchise. Because Alan is franchising, he will not have to operate under standardized operations. T or F

False

Alan wants to operate a Dunkin' Donuts franchise. Because Alan is franchising, he will not have to operate under standardized operations. T or F

False

Alba uses a website that has thousands of articles about her favorite video game. The website gives Alba and other users the ability to add or edit the content of posted articles. This website is an example of a blog. T or F

False

Alex's boss delegates a data collection project to him. Alex was being given an option. T or F

False

At a software company, Violet is responsible for the development and administration of the activities involved in transforming resources into goods and services. Violet is responsible for supply chain management. T or F

False

At the weekly management meeting, Dakota is recognized by his boss for a job well done on a recent project. This is an example of an intrinsic reward.

False

Because the eurodollar market was originally developed by London banks, Eurodollar deposits can only be made at banks located in London. T or F

False

Bitcoin is a type of cryptocurrency that has a fluctuating price but has significantly more stability and portability than fiat money and it easy to track, making it favorable to governments. T or F

False

Businesses that do not have hard-to-reach financial objectives are more likely to experience unethical behavior. T or F

False

Company resource abuse is most commonly seen in the form of employees stealing office supplies for personal use. T or F

False

Computer-assisted design (CAD) employs specialized computer systems to actually guide and control the transformation process. T or F

False

Corporate citizenship does not include the activities and organizational processes adopted by businesses to meet their social responsibilities. T or F

False

Corporate social responsibility refers to the laws and regulations that govern the conduct of business. T or F

False

Creating an innovative product that meets many users' needs is sufficient in today's volatile global marketplace. T or F

False

Credit unions are not considered banking institutions. T or F

False

Feeding the Hungry is a small nonprofit organization, so it does not have an organizational culture. T or F

False

Hilda is in charge of making decisions related to the shipment of her company's products to buyers. She chooses to send the products via railroads. Hilda is making decisions related to warehousing. T or F

False

Horizontal communication involves the traditional flow of information from upper organizational levels downward. T or F

False

ISO 14000 is a comprehensive set of guidelines for compliance management that address risks, legal requirements, and stakeholder needs. T or F

False

In the dual market strategy, the marketer aims its marketing efforts at two or more segments, developing a marketing strategy for each. T or F

False

Kellogg's and Chevron are examples of private distributor brands. T or F

False

LinkedIn is the most popular social networking site in the world. T or F

False

Long-term liabilities are repaid over a number of years but are not considered debt. T or F

False

Matias is a part-time cashier for a small business that sells specialty bicycles. He and his six coworkers all report directly to the owner. This is an example of a line-and-staff structure. T or F

False

Morgan recognizes a need for high-quality children's wigs after working in a children's hospital. He creates a for-profit organization that sells hair accessories and uses profits to create custom wigs to donate. After hiring two dozen salespeople and accounting professionals, the business is ready to launch. Morgan is an example of a microentrepreneur. T or F

False

One external force that influences the development of marketing strategies is the training and development of human resources. T or F

False

Peer-to-peer lenders are banking institutions that are now illegal because they are a threat to the financial system. T or F

False

Profits do not decline in the growth stage of the product life cycle. T or F

False

Secondary market transactions actually raise cash for the issuing corporations, while primary market transactions do not. T or F

False

Service businesses are too varied to incorporate quality standards. T or F

False

Shadow banking is an illegal form of banking that has been outlawed by the Dodd-Frank Act. T or F

False

Snapchat is a mobile messaging application that is most popular with elderly consumers. T or F

False

Social entrepreneurship is an economic model involving the sharing of underutilized resources. T or F

False

The first step in the decision making process is developing options to resolve a situation. T or F

False

The first step in the decision-making process is developing options to resolve a situation. T or F

False

The four dimensions of social responsibility are categorized as follows: financial, legal, management and ethics. T or F

False

The functions of management are decision making, leadership and the implementation of work tasks. T or F

False

The key to success in any organization is making a profit. T of F

False

The more complex organizations become, the less they need to develop formal structures to function efficiently. T or F

False

The multidivisional structure is the simplest organizational structure that is based on direct lines of authority extending from the top executive to the lowest-level employees of an organization. T or F

False

The senior vice president of sales contacts a lower-level manager from the marketing department to request a favor. This is an example of horizontal communication. T or F

False

The terms accounting and bookkeeping are interchangeable. T or F

False

With digital media, achieving the right marketing mix is not important. T or F

False

Zoe's responsibilities include developing plans, coordinating employees' actions to achieve the firm's goals, organizing people to work efficiently, and motivating them to achieve the business's goals. Zoe's role falls under Marketing. T or F

False

Free enterprise

Which of the following is a reason why a code of ethics is important? It serves as an internal document, which is not shared with the public, suppliers, or regulatory authorities. It alerts employees about important issues and risks to address It provides an individual approach to dealing with ethical decisions It negates the need to have systems for reporting or places to go for advice when facing an ethical issue. It negates the need to evaluate and improve ethical decision making

It alerts employees about important issues and risks to address

Which of the following is an argument that supports social responsibility? Socially responsible decision-making by businesses can prevent increased government regulation. Businesses may not have the expertise needed to assess and make decisions about social and economic issues. Participation in social programs gives businesses greater power, perhaps at the expense of concerned stakeholders. The responsibility of business is to society is to earn profits and create jobs. Social problems are the responsibility of the government agencies and officials who can be held accountable by voters.

Socially responsible decision-making by businesses can prevent increased government regulation.

Businesses must produce quality products, operate efficiently, and be socially responsible in dealing with all the groups that have an interest in an organization's success and outcomes. These are known as the organization's

Stakeholders

What is the term for the number of products that businesses are willing to sell at different prices at a specific time?

Supply

Which of the following has developed a Corruption Perceptions Index that ranks countries by their perceived levels of corruption? Daniels Fund Ethics Initiative Global Business Ethics Survey Transparency International Consumer Financial Protection Bureau Ethics & Compliance Initiative

Transparency International

A limited partnership has at least one general partner, who assumes unlimited liability, and at least one limited partner, whose liability is limited to his or her investment in the business. T or F

True

A sock company decides to use global strategy in the US, Mexico, Japan, and France. Even though the company's products are standardized, its advertisements will likely need to adapt to local cultures. T or F

True

An income statement is the same thing as a profit and loss statement. T or F

True

An indie soda company wants to enter the international marketplace without investing large sums of money abroad. A good option for the company is licensing. T or F

True

Ben had an iPhone for years, but he had a lot of problems with it. When his contract ended, he bought a Galaxy phone. Ben's buying behavior was influenced a psychological factor. T or F

True

Bonnie received a small inheritance, so she decided to use the money to open an ice cream parlor. When she began to have costly equipment issues, she quickly ran out of money. This is a case of undercapitalization. T or F

True

Both needs and goals can be motivating. T or F

True

Cameron, a certified yoga instructor, opens a small studio in her neighborhood after noticing a rise in the popularity of yoga. She charges $20 per class. Cameron is an example of an entrepreneur. T or F

True

Citizens can contact senators regarding public policy issues and legislation. The US Senate website lists 3 ways citizens can contact their senator: an online contact form, postal mail, and telephone. This relates to the understanding that consumers have the right to be heard. T or F

True

Common stock, preferred stock, and retained earnings are all forms of stockholder's equity. T or F

True

Cotton Essentials puts its winter clothing on sale in March. This is an example of price discounting. T or F

True

Current liabilities include a firm's financial obligations to short-term creditors, which must be repaid within one year, while long-term liabilities have longer repayment terms. T or F

True

Customers derive benefits from their experiences, as well as the act of shopping and selecting products. T or F

True

Everett has a clothing store in Aspen, Colorado, and he knows that his customers tend to be high earners with upscale tastes. This is a description of Everett's target market. T or F

True

For every $1 James invested in his company, he earned $2. James's return on equity was 200%. T or F

True

For most organizations, the ultimate objective is for the produced outputs to be worth more than the combined costs of inputs. T or F

True

For most organizations, the ultimate objective is for the produced outputs to be worth more than the combined costs of the inputs. T or F

True

Good News, a public relations agency, has a rule that employees can choose their start and end times as long as they were in the office between 9:30 a.m. and 3:30 p.m. This is an example of flextime. T or F

True

Henry and his friend Orson worked full-time at a commercial bakery. They were stationed at an assembly line. Orson's task was to twist dough into a pretzel shape, and Henry's task was to fill boxes with baked pretzels. This is an example of a product layout. T or F

True

Ian is the senior vice president of a cutlery company. After receiving reports of pay discrimination, Ian creates a temporary group of employees who are responsible for examining pay and promotion practices at the company. The cross-functional team lasts for six months. Ian's new team is a task force. T or F

True

In reaction to the financial meltdown and severe recession caused by the financial crisis, Congress passed the Dodd-Frank Wall Street Reform and Consumer Protection Act. T or F

True

In the production orientation of the 19th century, new technology played a key role. T or F

True

Joshua maintains tight control over his employees, providing near constant supervision because he believes workers generally dislike work and must be forced to do their jobs. Joshua subscribes to the Theory X view of management. T or F

True

Justice Credit Union pays for a page in an interior design magazine to describe the features and benefits of its services. While the magazine issue is in print, Justice Credit Union also takes out a 30-second television spot on a home improvement channel to reach a similar audience. This is an example of an advertising campaign. T or F

True

Kenta wants to start a business that is relatively easy and inexpensive to form. Because of the nature of his high-tech business, he also wants the greatest degree of secrecy and the most freedom from government regulation. Kenta should choose a sole proprietorship as his form of business. T or F

True

Key performance indicators (KPIs) should be embedded at the onset of a social media strategy that can allow almost real-time measurement and evaluation. T or F

True

Laini noticed that one of the sales divisions wasn't performing as well as the others so she called a meeting of the district managers to determine what the problem was and what could be done about it. Laini was performing the management function of controlling. T or F

True

MacDonald's Farm, Green Acres and Mickey's Farm sell wheat in a pure-competition environment which means that no business sells enough of the product to influence the price. T or F

True

Madison is a money manager for a construction company. She keeps just enough cash on hand to pay normal daily expenses, such as wages for the firm's employees and the company's utility bills. The cash Madison keeps on hand is called transaction balances. T or F

True

Mailtopia, a package delivery company, purchases a competitor, Global Home Delivery, by buying most of its stock. This is called acquisition. T or F

True

Maria has overall responsibility for her organization and spends most of her time planning. She makes the organization's strategic decisions. She decides whether to add products, acquire companies, sell unprofitable business segments, and move into foreign markets. Maria is a top manager. T or F

True

Mei is a freelance virtual assistant for several small business owners. Mainly, she schedules social media posts and responds to customer e-mails. Mei running a service business. T or F

True

Most businesses charge a reasonable price for their products to ensure that they cover their production costs, pay their employees, provide their owners with a return on their investment, and perhaps give something back to their local communities and societies. T or F

True

One criterion that influences companies on location decisions is the fact that state governments are willing to forgo some tax revenue in exchange for job growth. T or F

True

Planning involves forecasting events and determining the best course of action from a set of options or choices. T or F

True

Podcasts have been known to influence consumer buying habits. T or F

True

Political unrest in countries often creates a hostile environment for foreign businesses and can act as a barrier to international trade. T or F

True

Prescription World, a chain of drugstores, purchases 5,000 empty pill bottles from Plastic Supply. Because the two companies have a good relationship, Plastic Supply offers trade terms of "1/10 net 30" to Prescription World, meaning the company will get a 1% discount from the invoice amount if it makes payment within 10 days. Otherwise, the drugstore chain will have 30 days to make full payment. This is an example of trade credit. T or F

True

Profit margin is computed by dividing net income by sales and shows the overall percentage of profits earned by the company. T or F

True

Retailing attracts entrepreneurs because gaining experience and exposure in retailing is relatively easy. T or F

True

Robo Tron Tech is a robotics business that depends heavily on advanced scientific and engineering technology. Robo Tron Tech is a high technology business. T or F

True

Sabrina put together a financial plan so she could forecast income and expenses for her company over the next two quarters. This is called a budget. T or F

True

Samantha, the president of an artificial intelligence firm, has an obligation to the company's owners and investors, which includes providing all relevant information to investors about the current and projected performance of the firm. T or F

True

Service providers are generally more labor-intensive than manufacturers because of the high level of customization. T or F

True

Since MassComm Bank is holding $100 million in deposits, it must keep $10 million in the vault due to current reserve requirements from the Fed. This means the reserve requirement is 10%. T or F

True

Small-business owners tend to be victims of physical and psychological stress. T or F

True

The colonists in the early history of the American economy operated primarily as an agricultural economy. T or F

True

The perceived value of a product by consumers is an important consideration when pricing that product. T or F

True

Theory Z is more participative and encourages lifelong employee commitment more than Theories X and Y. T or F

True

Top level managers make an organization strategic decisions that focus on a key idea for using resources in order to take advantage of opportunities. T or F

True

U.S.-based Jumpstart Electronics is assessing the risk involved with introducing a new artificial intelligence-powered product in China. When considering this investment overseas, Jumpstart Electronic's risk assessments should include the political climate and economic stability of the region. T or F

True

A large retailer had a dispute with personal care suppliers and decided to exclusively stock one brand of shampoo. Customers complained and requested other popular shampoo brands, but the retailer insists consumers buy this brand. This is a violation of consumers' right to ?

choose

An island country can produce honey more efficiently than it can produce other items, giving it a

comparative advantage

The US, having adopted new technological methods in hydraulic fracturing (fracking), can drill and export gas efficiently. The US has created a What kind of advantage?

comparative advantage

All of the following are associated with dishonesty except: Stealing Competition Lack of disclosure Lying Lack of integrity

competition

Apple removed several third-party screen time tools from the App store. Shortly after, Apple introduced its own screen time tool, attracting scrutiny from critics. The aspect of fairness at issue here is

competition

Sophie lobbies government agencies and encourages friends, family and coworkers to boycott companies whose actions are irresponsible or harmful. This is called ?

consumerism

Acme Corp. is a US company that produces artificial intelligence products but has quickly outgrown the domestic market. Acme Corp. decides to sell it's products to India at a less than its cost, so it doesn't have to cut production. This process is termed

dumping

Financial institutions are reporting that the rate of spending is declining based on customer data. What is associated with a decline in spending?

economic contraction

A country announces that foreign beer can no longer be imported. This is known an an

embargo

The US sells wine to China. From the perspective of the US this is called

exporting

Jumps & Hops Beer Co. notices competitors talk about using wind energy. Although Jumps & Hops does not use any alternative energy solutions, it decides to add "fueled by wind energy" to its packaging to see if it increases sales. What activity is the company engaging in?

greenwashing

Navaeh retired last fall and now lives on a fixed income. Her income is not increasing at the same rate as the rising prices in. her country because the economy is expanding rapidly. This could result in ?

inflation

A small business owner wants to sell clothing featuring the logo of the university she attended. The university allows for her to use its name, brands, and trademarks in exchange for a fee or royalty. What is this an example of?

licensing

DrEye and Eye Tears are two eyedrop companies. They promote similar products that differ in some characteristics such as packaging but satisfy the same consumer need. The competitive environment is most likely to be?

monopolistic competition

A home goods retailer transfers the manufacturing of its products to Vietnam because labor and supplies are less expensive. This is an example of

outsourcing

Jack believes consumer relationships are the most important relationships, but his coworker Nia maintains that businesses must first be responsible to their ?? who are primarily concerned with earning a profit.

owners

A manager presents a subordinate's ideas in a management meeting but takes full credit for the work. The manager is engaging in ?

plagiarism

Andy runs out of time to create a marketing plan for his company. He downloads a sample marketing plan he finds online and decides to submit it as his own work. This example relates to ?

plagiarism

A sudden change in power can result in a regime that is hostile to foreign investment. This is what kind of barrier?

political

Switzerland's central bank increased the value of its currency in relation to other currencies. This is called ?

revaluation

Tiffany & Co learned that in order to sell more jewelry in Japan, it needed more attentive customer service. This is an example of what kind of barrier?

social

Sophia lives in a country with an economic system in which the government owns and operates basic industries. What time of economic system is this?

socialism

In industries where international competition is so fierce and the costs of competing on a global basis are so high that only a few firms have the resources to do it alone, a company may collaborate with other companies to form a

Chapter 1, 2, 3 Quizzes, Section 1 Test, Chapter 4, 5, 6 Quizzes, Section 3 Test, Chapter 7, 8, and 9 Quizzes, Section 2 Test, Chapter 11, 12, 13 Quizzes, Section 4 Test, Chapter 16 Quizzes, Chapter 15 Quizzes, Chapter 14 Quizzes

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