intro to bussiness
Paul would like to buy his first home (an awesome 3 bedroom on a quiet street with a beautiful tree in the front!). The home is listed for $200,000 and he needs to come up with a down payment of $40,000. Paul starts by looking at his most liquid assets to come up with the necessary down payment. Which of the following are the most "liquid" of Paul's options:
$5,000 in his checking account.
In your global woodworking business you can produce 100 birdhouses, or 10 pieces of fine furniture for the same amount of resources. Therefore, each piece of fine furniture is worth:
10 birdhouses.
You are an entrepreneur in the process of purchasing a small business. You want your investment to be safe, so you need to select a business that can be classified as a small business so as to qualify for SBA financing and government contracts. Which of the following would qualify?
A For-Profit commercial bakery with 475 employees.
A company wishing to reinforce its commitment to ethical behavior could institute:
A Whistleblower program
________ is a legally enforceable agreement.
A contract
A Subway franchisee does not do a good job managing food safety. Customers purchase sandwiches that contain expired turkey and become ill reflecting poorly on the brand and exposing the company to liability. This is an example of:
A disadvantage for the franchisor—a lack of control over the franchisee resulting in damage to the brand.
Define interleaving.
A study strategy to mix up what you are learning
The primary role of middle managers is to:
Allocate resources, oversee first-line managers, and develop and implement activities.
According to the Harvard Business Review, the following are the 5 common traits of the successful entrepreneur EXCEPT:
Attention to detail.
A ________ seeks to provide a return to shareholders while pursuing other goals that benefit community or society.
B corporation
Companies seeking to expand their products to global emerging markets will likely pursue:
Brazil, Russia, India and China.
Golf outings, meals, entertainment, and vehicles have been used in lieu of cash to pay purchasing agents in exchange for business deals. This type of payment is known as:
Bribery
Entrepreneurs are grouped into these 4 categories by Abraham's BOSI framework:
Builder, Opportunist, Specialist, and Innovator
Fayol introduced a management concept derived from the military. This concept is called:
Chain of command.
Business registration requirements are based on business structure and location. When you register your business the following could be in play EXCEPT:
College degree.
What are some important factors to consider when choosing an organizational type?
Control versus responsibility, and risk tolerance.
Philip is a new manager of a 15 person manufacturing operation. His predecessor has handed him a complete annual plan, including budget, objectives and organization chart. Philip has presented the company's strategic plan to his staff and met with each person individually to establish rapport. After a month on the job, the owner approaches him and asks for a briefing on performance relative to plan. Philip is unable to respond. He has failed to attend to which of the 4 management functions?
Controlling
Typical functions of first line managers include:
Coordinating activities, supervising employees, and participating in day-to-day operations.
________ is a form of protection provided to the authors of "original works of authorship," including literary, dramatic, musical, artistic, and certain other intellectual works.
Copyright
Google.org made a $2.4 million grant to GiveDirectly, a nonprofit that provides direct cash aid to the poor. This example of Corporate Social Responsibility is known as:
Corporate Philanthropy
Examples of approaches to Corporate Social Responsibility include:
Corporate Philanthropy, Cause-related Marketing, Sustainability
You have looked into the various forms of ownership and decide that you would like to establish your business as a B Corporation. Which of the following items will you need to do?
Declare a commitment to creating general public benefit, adopt a third-party standard and prepare an annual benefit report.
If the federal government wanted to find out how much M1 money is in circulation in the US, it would look at which of the following?
Demand deposits and other checking accounts
Cranks, Inc., a medium sized car parts manufacturer has been purchased and is merging with a larger car parts company. Cranks, Inc. is entering into the transition period and the "usual way" of doing things now requires adaptation and adjustment for all of the employees. What would be the most effective style of management for the Cranks managers to use in this transition period?
Democratic style of management.
When starting a business, why is it important to understand and consider tax implications?
Different forms of business ownership result in businesses and owners being taxed differently. It is important to understand these differences in order to choose the scenario that best fits your needs.
Auto manufacturing workers typically perform tasks that are overseen by their managers. This arrangement is which one of Taylor's scientific management principles?
Divide work nearly equally between managers and workers, so that the managers apply scientific management principles to planning the work and the workers actually perform the tasks.
________ is the way a service or good is produced and divided into a variety of tasks performed by different workers, instead of the same person performing all the tasks.
Division of labor
When starting a business these are the fundamental questions that should be asked EXCEPT:
Do you have the right education?
If a business finds that its production is becoming more efficient as it increases production, then the organization is experiencing what specialization advantage?
Economies of scale
Adjusting the height of conveyors to match the height of manufacturing workers is an outcome that could be attributed to which one of Frank and Lillian Gilbreth's philosophies?
Efficiency by reducing motions involved.
The SBA-recommended format for the business plan has this as the first section:
Executive Summary.
If a bribe has been paid to a foreign government official to obtain or retain business, then it is a violation of the:
Foreign Corrupt Practices Act.
For a/the ________, the/an ________ is an alternative to expanding through the establishment of a new location, which avoids the financial investment and liability of a chain of stores.
Franchisor, franchise
Overstating the impact of environmental actions to promote "eco-friendly" products is known as:
Greenwashing
Which of the classical management theories is focused on management structure?
Henri Fayol
What is the most important question a business owner needs to ask themselves if they are considering their business continuity or transferability in the future?
How can I set up my business to either continue on without me or be sold?
Some small business ventures fail for the following reasons:
Inability to execute on the business concept, lack of or insufficient market demand, inability to manage growth, and insufficient management experience or product/services expertise.
________ are people who have an interest in the performance of a business and work directly within the business.
Internal stakeholders
Which organization seeks to provide capital investments for economic growth and infrastructure projects:
International Monetary Fund.
Intellectual property is intangible. How would you best describe its value to businesses?
It can be a company's most significant asset.
The reason we rarely use the barter system today is:
It is difficult to find two parties that have something they both want to trade.
The nation of Newbie is establishing its monetary system and is designing its currency. The first proposal is to issue the Newbie Nugget (their new currency) in only 3 denominations of paper bills (100, 500 and 1000 Newbie bills) but no coinage. In order to save time and resources they will print their currency on a heavy stock cardboard. The bills will be about the size of a business card so that the Newbian people will be able to easily carry it with them in their wallets. Why will the Newbie Nugget not function as a medium of exchange?
It is not easily divisible.
Although money has no intrinsic value, it is demanded throughout society. Money is demanded for all of the following reasons EXCEPT:
It's easy to counterfeit.
The Golden Chunk hotel and casino was recently rocked by scandal with unethical gaming practices and lack of certain hotel safety disclosures. After an investigation, it was discovered that internal business ethical behavior standards were often brushed aside for profit. What would you guess was most likely to be the main reason for these ethics breaches at the Golden Chunk?
Its executives and upper management were responsible for misconduct and rule breaking setting the example for company employees.
You and your dear friend want to start an accounting firm together. You know each other well but you don't want to be held responsible for your friends negligence or misconduct should such an event occur. You and your friend also want to be sure that you are only taxed once on company profits. Which type of organizational structure might be best for you?
LLP
Carol Denbow is cited by the author in stating this as the primary reason for small business failure:
Lack of planning.
Commanding and coordinating are considered to be part of which management function?
Leading
________ follow(s) the dictates of laws, which are written down and interpreted by the courts.
Legal behavior
You are thinking about starting a business. Of course, you want to maximize your income and not pay taxes both as a business and as an individual. You are also concerned about liability. If something bad happens with your business, you don't want to be personally liable. What form of business ownership would best meet your needs?
Limited Liability Company
What is an LLC?
Limited Liability Company—a business structure that is attractive to small business owners because they provide the limited liability features of a corporation and the tax efficiencies and operational flexibility of a partnership.
A business in which some or all partners have limited liabilities is called a:
Limited Liability Partnership
The credits and deductions of the company are passed through to partners to file on their individual tax returns. Credits and deductions are divided by the percentage of individual interest each partner has in the company. This is an example of a benefit enjoyed by which type of organization?
Limited Liability Partnerships
Tanen Inc. follows Theory Z and assumes a relationship between the company and the employee that is not typical in the United States. The company plans for
Long-term staff development and employment.
According to the SBA list of steps to do when starting a new business, market research is the first task. The two areas that should be the focus of that research are:
Market and competitive.
What will we never do in a world of scarcity?
Meet all of society's wants
Mega Mining operates mining facilities around the world and as a result controls a large portion of the market. When they opened a new mineral extraction facility on the tiny island nation of Candyland they realized they would immediately become the largest private contributor to the nation's GDP thus giving them a great deal of power. Much to the delight of investors, Candyland's government has enacted almost no regulations to protect the safety of workers or preserve the environment. The CEO of Mega Mining made several decisions regarding their operations in Candyland. Which of the following are examples of the company's ethical behavior?
Mega Mining installs scrubbers on the smokestacks of their smelting facility to protect the environment of Candyland.
Small business provides THIS "multiplier" benefit to their local community:
More of the dollars spent at a locally-owned small business stay in the community.
Facts supporting the importance and nature of corporate social responsibility include:
Most large corporations spend money on lobbying.
Fred Frumple is known for his planning ability as a manager. Every task and resource is carefully accounted for. However, Fred is unable to communicate or inspire employees. Which of the six management functions is Fred lacking?
Motivating
You are the Chief Purchasing Officer for an established business. Your daughter (a recent college grad with a business degree) applies for a job with your company. If hired, your family relationship could constitute concerns of:
Nepotism
If an increase in the price of Nike shoes increases the demand for Adidas shoes, then this means that:
Nike shoes and Adidas shoes are substitutes.
Owning your own small business has the following disadvantages EXCEPT:
No boss to answer to.
In 2015, the German automaker Volkswagen revealed that it had installed software on millions of cars in order to trick the Environmental Protection Agency's emissions testers into thinking that the cars were more environmentally friendly than they were. This action was:
Non-compliant with environmental regulations
In an LLP:
One partner IS NOT responsible or liable for another partner's misconduct or negligence.
The structure of the business, the introduction of the team, and an organization chart would be described in this section of the business plan:
Organization and Management.
Evidence of Frederick Taylor's Principles of Scientific Management can today be seen in:
Organizational charts, performance evaluations, quality measurements and metrics, and sales and/or production goals.
You own a large company and would like to issue bonds for $12 million to pay for the construction of a new manufacturing facility. As a bond issuer, your company will need to:
Pay interest payments annually and repay the entire $12 million at the end of the bond term.
Stock prices may be impacted by a company's social responsibility performance, when:
Poor performance drives stock prices down.
Marquise is studying for his Biology test. He only has an hour, because he has lots of other homework to get through as well. What's the best use of Marquise's time?
Practicing by answering questions (in his homework or from the textbook)
In Equity theory, inputs are the employee's contribution to the workplace. Inputs include
Primarily time spent working and level of effort but can also include loyalty, commitment, and enthusiasm.
The first three topics in Guy Kawasaki's more V.C.-friendly business plan structure are:
Problem, Your Solution, and Business Model.
Your business, Balcony Management, has been doing very well. In fact, you are starting to see some decent profit! You decide it is time to move to a larger office space and purchase some new office furniture and equipment. You go to the bank you have been using for your business transactions and ask for a business loan. The bank provides you with a loan. What do you have to do next for the bank?
Repay the loan, including interest, over a predetermined amount of time
________ is effective because the majority of citizens recognize the importance of adhering to the law.
Rule of Law
________ is a principle under which there are four aspects: due process, separation of powers, an open and transparent system of making laws, and predictable and uniform application of the laws.
Rule of law
Which country has characteristics of a command economy?
Russia
You are forming a new company that delivers food to students across college campuses. You have a number of partners, but your primary goals are to avoid personal liability and double taxation. You want to pay each of the partners based on the percentage of the company that they own. You could accomplish this by forming a(n):
S corporation.
Peter Drucker suggests that operational objectives should be:
SMART.
If the federal government wanted to find out how much M2 money (excluding M1) is in circulation in the US, they would look at which of the following?
Savings accounts
Humans need to feel a sense of belonging and acceptance, whether it comes from a large group or a small network of family and friends. Maslow labeled this as
Social needs.
Which form of business ownership involves tax reporting requirements that are fairly simple and the lowest tax rate of any legal structure?
Sole proprietorship
Which of the following does research show is the best study technique?
Spacing out your practice over time
________ refers to the circumstance where a court orders a party to carry out their duties under the contract.
Specific performance
Determining the legality of a course of action will include a review of:
Statutes, regulations, and codesIn 2015,
How do students perform that reach out for help compared with those that do not reach out for help?
Students perform better when they reach out for help
Which of the following would best summarize Taylor's four principles of scientific management.
Study the process and optimize the way work is done.
Entrepreneurs share the following personality traits EXCEPT:
Team player.
The main thing that makes S Corporations different from C Corporations is:
That the business is not taxed itself. Only the shareholders are taxed.
The Golden Spigot hotel and casino was recently rocked by scandal with unethical gaming practices and lack of certain hotel safety disclosures. Upper management has been fired and you are brought in as the new CEO to change things around. You have called everyone to a company meeting and are starting off by defining how you will be implementing strict business ethics. Which of the following begins to change the business ethics environment best for the company?
The Golden Spigot will publish standards governing the behavior and actions of employees and actions of the business, and implement mandatory policy training for all employees.
Which of the following has primary responsibility for financing economic development on behalf of the international community?
The World Bank
A tornado has touched down in a town not far from a manufacturing company and it is moving toward the plant. The president of the company needs to get everyone to leave the building and get into the tornado shelter for safety. What style of management should the company president use to be the most effective in this situation?
The autocratic management style.
The term "entrepreneurial DNA" means:
The characteristics and traits of an entrepreneur.
Employees of Fannie Mae, a financial company, are complaining that the pay is unfair and gossiping with each other about it, hurting morale and productivity.
The company should survey the market value of each job and show employees the results, demonstrating that the pay is market-based.
The Hawthorne studies originally looked into
The effects of physical conditions on productivity such as improved lighting.
Heather is the president of a small company, BrainZ, consisting of 20 highly skilled software engineers. BrainZ takes on projects for other companies who do not have the expertise to create internal programs to help run their businesses. What style of management would be an effective management style for Heather to use in this situation?
The laissez-faire management style.
If management wants to increase employees' job satisfaction, Herzberg says they should look at the nature of the work itself. This means
The opportunities it presents employees for gaining status, assuming responsibility, and achieving self-realization.
What is a reason you might be hesitant to use Bitcoin?
The value of my Bitcoins can vary widely based on supply and demand.
In business, the title "manager" refers most to:
Three distinct sets of roles, responsibilities, and activities.
Of the 10 steps listed by the SBA for starting a business, how many deal exclusively with government regulation?
Three.
The U.S. imports more goods from China than it sells or exports to China. We are said to have a ________ with China.
Trade Deficit
How many sections are focused on solely financial factors in a nine-section SBA business plan?
Two.
Which of the following is an example of a nonprofit organization?
United Way
Carlos has a small fashion company. He has been in business for a little over a year and the company looks like it is going to do very well. Carlos is in talks with Bloomingdale's and Nordstrom, and already has been doing some work with Calvin Klein. Carlos needs to raise some capital to help the company grow to keep up with the demand. What might be a good source of capital for Carlos to look into?
Venture capital firm
Consumers wishing to encourage corporate social and environmental responsibility can:
Vote with their wallet
Which of the following is an example of a for-profit business?
Walmart
The gender pay gap refers to:
Women earn 20% less than men on average.
Pertaining to international trade, the acronym WTO stands for:
World Trade Organization.
Which of the following statements best represents a fixed mindset?
You are born with a certain level of intelligence, and this isn't something you can really change.
You form an LLC to protect yourself from personal liability. The business fails and there are debts remaining. Under which of the following circumstances would you be personally liable for business debts.
You signed documents personally securing the debts of the business.
Coca Cola embarked on a program to replenish all of the water it uses in drinks and made good on its promise five years early through 248 community water partnership projects in 71 countries. This is an example of:
a collaborative solution to doing global business more sustainably.
Which of the following establishes a new business that is jointly owned by two or more otherwise independent businesses?
a joint venture
Gloria just started working for GlenMack. As part of her signing bonus, she received 20 shares of GlenMack stock. Gloria is excited to contribute to the company and to track the value of her shares on the New York Stock Exchange. GlenMack must be:
a public company
A partnership is:
a single business in which two or more people share ownership.
If an owner of a business were to die, which of the following entities would cease to exist (which type of business would "die" too)?
a sole proprietorship
Which is an examples of a tort suit?
a tenant who damages a landlord's property
David McClelland's acquired-needs theory splits the needs of employees into three categories. These three categories are
achievement, affiliation, and power.
The purpose of a financial institution such as a bank or credit union is to:
act as an intermediary between savers and borrowers
The most important quality a entrepreneur can have to start a business according to startup expert Anne Dwane is:
adaptability.
The crucial role small business plays in the U.S. economy is demonstrated by the fact that small business is responsible for half of the Gross Domestic Product (GDP) and roughly half of:
all U.S. employees in the workforce.
When it was formed the World Trade organization absorbed:
all of GATT's agreements.
Creativity, vision, and ________ are the elements without which there is not entrepreneurial venture according to the author.
an ability to identify opportunities.
In 2016, Microsoft announced that it would buy LinkedIn for $26.2 billion, in an all cash deal, making it the 6th largest deal if its kind on record. This is an example of:
an acquisition
Disney and Pixar coming together was a "match made in cartoon heaven" some say. This undertaking enabled the two companies to collaborate freely and easily resulting in some of the highest grossing animated films of all time. This is a successful example of:
an acquisition.
Once a franchise is established with multiple locations, the company may be able to take advantage of economies of scale with suppliers, advertisers and vendors. This is an example of:
an advantage for the franchisor.
What is a contract?
an agreement that is enforceable by law
Sylvania claims that their light bulbs "last 10 times longer and use 75% less energy than standard bulbs." This is an example of:
an express warranty
In order to develop a plan, managers need to have a foundation for planning such as:
an idea, opportunity, or dream.
According to the law of demand, assuming other factors are held constant:
as the price of milk decreases, the quantity of milk demanded will increase.
The organizing function of managers involves:
assigning activities identified in the planning process to some person, team or department.
A firm will receive a major financial benefit from the sale of its stock:
at the initial public offering
A leader sends out a directive that employees will work by rules set forth solely by the leader suggests which type of leadership style?
autocratic leadership
A business must also meet the following criteria in order to be eligible for SBA and government contracting programs in addition to meeting the relevant numerical size standard EXCEPT:
be a public company.
Historically many methods and markets were used to raise capital, but the primary methods that have evolved in modern times are the:
bond markets and stock markets
An enforceable contract creates legal obligations, and failure to comply with them creates a:
breach of contract
The purpose of aligning corporate ethics and social responsibility is to:
build trust and create community between employees and stakeholders across all levels
An agreement to purchase output from a foreign plant in exchange for providing capital and expertise to build the plant, is an example of:
buyback countertrade
The main point(s) to learn from ERG include:
by understanding multiple needs, we can better understand an individual's behavior and create motivation
When developing SMART operational objectives, it is important to get employee input during the process, because it may be:
challenging for employees to understand or accept them after they're set.
Expulsion from membership in a professional organization could occur due to failure to comply with its':
code of practice
Companies today are held to higher standards than ever before. Consumer and other groups consider not only the quality and price of a company's products but also its:
commitment to environmental and social concerns
An ability to reason abstractly and analyze complex situations is known as:
conceptual skills.
The first 3 steps to start a business according to the SBA are:
conduct market research, write a business plan, and fund your business.
The point of a business cycle fluctuation, during which growth slows, unemployment increases, and pricing pressures subside, is called a(n):
contraction.
Antoine and David are 12 years old when they agree that if either one of them ever earns more than $200,000 in one year he will buy the other one a new car. After college, Antoine starts a company that provides transportation to senior citizens who cannot drive. When David reads in the newspaper that Antoine's business has been purchased by a healthcare provider for $5 million, David believes that he is owed a new car. The agreement for the new car between Antoine and David was not a legal contract because it fails to meet which requirement(s) of a contract?
contractual capacity
Which type of intellectual property protection is available to both published and unpublished works?
copyright
Which of the following is a legal entity completely separate from the entities who own it?
corporation
Which of the following entities are subject to double taxation?
corporations
When ________, business firms will collectively supply a higher quantity of output at any given price, and the supply curve will shift to the right.
costs of production fall
When ________, business firms will collectively supply a lower quantity of output at any given price, and the supply curve will shift to the left.
costs of production increase
Theory Y leadership assumes:
creative capacity can spread throughout organizations
Bitcoin is an example of which of the following?
cryptocurrency
Displaying uncovered arms or legs in product packaging pictures is considered offensive in Mid-Eastern countries that observe Islamic law. This is an example of:
cultural customs and taboos.
Businesses exist in an environment shaped by:
culture.
Attracting talent, investors, and ________ is typical of Builders.
customers
When a business makes decisions, which group outside of the business is affected in some way?
customers
Complete the following sentence: If people think that the price of televisions will decrease in the near future, then that belief may cause a(n):
decrease in the demand for televisions today.
James has a leadership style that is sometimes described as "hands off" or laissez-faire management because he:
delegates the tasks to the employees while providing little or no direction.
The major shortcoming of the Specialist as an entrepreneur is:
demand-generation.
In a functional structure, communication generally occurs within each functional department and is transmitted across departments through:
department heads.
An extended period of decline with no improving indicators typically signals a(n) ________ in the economy.
depression
Contingency planning:
develops alternative courses of action to address potential future scenarios or events.
Although outright bribery is clearly unethical and illegal, there is a great deal of behavior that falls into a gray zone that can be:
difficult to analyze.
When both parties are relieved of their obligations under the contract, the courts may issue a:
discharge of duties
Hometown Bank has made a significant number of loans to their customers, some of which have been very large. An audit of the bank's records shows that as a result of this increased lending activity, the bank is now below the Federal Reserve's minimum reserve requirement. The Fed lends the bank the amount necessary to bring its reserves up to the required level. Even though Hometown Bank is borrowing the money from the Fed, it will still have to pay interest on this money. The interest rate that is paid to the Fed on this loan is the:
discount rate
Noah's company is privately owned. His company:
does not offer shares of the company to the public.
Trade tariffs and quotas are designed to protect:
domestic producers.
A company established a website. Now that its customers can order products online without visiting the store, the company is engaged in:
e-commerce.
Both kinds of organizations, nonprofit and for-profit:
earn reavenes
When an entrepreneur owns and runs a business, they assume risks that are offset by the potential of:
earning a profit.
Businesses intending to market their products globally should:
educate themselves to use cultural differences to their advantage.
What are four main purposes for law?
establishing standards, maintaining order, resolving disputes, and protecting liberties and rights
Juan is a middle manager at a technology company. This week he is hosting a group of businesspeople who are considering a strategic partnership with the company. As the week progresses, some of the visitors ask Juan for access to sensitive classified information that is about the company's newest technology developments. He knows that the partnership is of great importance to the company, and if he can solidify the deal, it could lead to a VP position in the company for himself. He is now faced with a(n) ________ issue.
ethical
While ________ beliefs are held by individuals, they can also be reflected in the values, practices and policies of decision makers in organizations.
ethical
Google's statement of "don't do evil" is an example of:
ethical policy
In a market with an upward sloping supply curve and a downward sloping demand curve, when the actual price must be higher than the equilibrium price, there will be:
excess supply.
Because the level of commitment and investment associated with Foreign Direct Investments is so high, companies:
expend a great deal of time and effort scrutinizing potential opportunities.
A company produces goods or products locally and sells them in foreign markets. This is called:
exporting.
Kiowa is looking to get a new pair of bluetooth headphones. The pair at the top of his list are stated to have a battery life of 20 hours. This is an example of an:
express warranty.
Hometown Bank has made a significant number of loans to their customers, some of which have been very large. An audit of the bank's records shows that as a result of this increased lending activity, the bank is now below the Federal Reserve's minimum reserve requirement. A member bank, City Bank, has excess reserves, which Hometown Bank borrows. The rate of interest that Hometown Bank will pay to City Bank for the loan is the ________ rate.
federal funds
Financial reports are created and used to evaluate the financial performance of the business. Which function is responsible for creating the reports?
finance
Stocks or equity securities are:
financial instruments that may include share of a company's future profits.
Burr Architecture is a commercial architecture firm founded by two brothers. As the company grew, it took on additional partners and eventually sold stock in the company. By 2010, it had six employees, $500,000 in annual revenue, five projects underway, and plans to reinvest profits to fund expansion. Based on the information provided about the company, what type of organization is Burr Architecture?
for-profit
The FCPA applies only to bribes paid (or offered) to ________ to obtain or retain business or to develop an unfair competitive advantage.
foreign government officials
A breach of contract is when a party in a contract fails to:
fulfill their obligations
At the company where Cindy works, everyone works in units with people who perform similar jobs. All of Cindy's accounting colleagues work in one department. All the marketing and sales people work in one department, as do all the people involved in producing the company's apparel products. What type of organization is this?
functional organization
In both licensing and franchising situations, the licensee and franchisee:
gain a competitive advantage.
The management control function is essential to:
helping organizations and individual employees achieve their goals.
AT&T's proposed $39 billion acquisition of T-Mobile USA would have combined two of the four major national providers of mobile telephone services for both individuals and businesses. As a result of this acquisition, AT&T would be the provider of almost 40% of all mobile service, with Verizon and Sprint making up the remainder of the market. This is an example of:
horizontal acquisition.
Ability to lead is a ________ management skill.
human
You have just been promoted from a supervisory role to a mid-level management position overseeing several work teams. You are eager to strengthen your managerial skill set to meet the challenges of your new role. What skill set should be your particular focus in this role as you foster teamwork, manage conflict and encourage improvement?
human interpersonal skills
Skills that allow you to get along with and motivate other people are:
human skills.
Intellectual property law governs the protection of:
ideas
CTEK markets its MUS Polar Battery Charger for use in extreme cold conditions. This is an example of:
implied warranty of fitness.
An ________ assures that a product is reasonably fit for ordinary use.
implied warranty of merchantability
Under an/the ________, a product must do what it's supposed to do.
implied warranty of merchantability
The belief that a person will receive a desired outcome if he meets the performance goal is called ________ in Vroom's Expectancy theory.
instrumentality
Narcissistic leaders are known for being:
interested only in themselves at the expense of others.
An individual walks to a local sandwich shop and uses a $10 bill to pay for a $6 sandwich, receiving $4 as change for this transaction. The $6 price of the sandwich:
is a precise measurement of the value of the sandwich.
A tort:
is a wrong that creates a legal liability.
When a need is met, Maslow argues that
it will no longer serve a motivating function.
The most common ________ involves two companies that are equal partners in the new firm, investing money and resources while sharing control of the newly formed firm.
joint venture
Fred is a realtor selling Katie's home. Katie filled out the "Property Condition Disclosure" paperwork, and Fred is obligated to disclose present and future disclosures to potential buyers. The property is now under contract to sell to new owners. In a casual conversation however, Katie tells Fred three years ago there was a termite problem but it was eradicated. After checking the paperwork, Fred discovers no indication of this on the disclosure paperwork. Fred is now faced with a(n) ________ dilemma.
legal
Joseph works at a local hospital in the billing department. He is processing a bill for a patient who was recently released after being hospitalized for anxiety associated with a chronic mood disorder. Joseph recognizes the name and realizes the patient is one of his son's school teachers. Joseph can't violate patient confidentiality by telling the school of the teacher's illness. Which of the following considerations describes why Joseph can't discuss what he has seen as part of his job at the hospital with his son's school?
legal
Kathy, in accounts receivable, receives a cash overpayment from a loyal customer. Her boss never reviews the details of accounts receivable transactions, so Kathy could easily pocket the overpayment amount. Kathy is faced with a(n) ________ dilemma.
legal dilemma.
Law is a body of rules defined by:
legal force and effect, prescribed, recognized, and enforced by a controlling authority.
Kate and Felice have come to an agreement. Kate will sell Felice a specific number of her prescription pills for a set dollar amount. This is not a legal contract because it fails to meet which requirement(s) of a contract:
legality
Increasingly, businesses are getting their products and services into global markets via:
licensing and franchise agreements.
You are forming a new company that delivers food to residents across college campuses. You have a number of partners, but your primary goals are to avoid personal liability and double taxation. You want to pay each of the partners based on their contribution to the success of the company, which is NOT equal to their percentage ownership. You could accomplish this by forming a(n):
limited liability company.
Unlike many types of businesses, ________ are not recognized as legal business structures in every state. Some states even limit the creation of these to professionals such as doctors or lawyers.
limited liability partnerships
Which of the following are internal stakeholders in a business?
managers
Which business function is responsible for making sure that organizational strategies and goals are aligned with staffing plans?
managment
Product liability claims are based on the following:
manufacturing defects, design defects, and/or failure-to-warn defects
For a for-profit business, the primary goal is to:
maximize profits for owners.
The field of economics that focuses on the actions of individual agents within the economy, like households, workers, and businesses, is:
microeconomics.
Until a business has determined what its ________ is, planning cannot begin.
mission
Which of the following is one of the factors of production?
natural resources
After mopping up a spill, store employees forget to put "Caution: Wet Floor" signs in the area. Soon afterwards, a shopper slips on the wet floor and injures herself. What is this is an example of?
negligence tort
Many ________ organizations are governed by a board of trustees.
nonprofit
When executives set aggressive goals, it becomes more important to:
openly address issues with employees.
An implied warranty of merchantability assures that a product is a reasonably fit for:
ordinary use
Often the ethical tone of a business is set by:
organizational leadership.
The arrangement of people within an organization is known as:
organizational structure.
The external factors include opportunities and threats that are ________ the organization.
outside
A ________ is owned and managed by a group of individuals who share in decision-making and risk.
partnership
An auto mechanic has an idea to make a tool that will make his job easier. He has a machinist friend make a prototype of it. To protect his idea he needs a:
patent
A programmer hacks software code to understand how it works. Then she writes a program that replicates the implementation of a solution that has already been granted intellectual property protection. This is an example of a:
patent violation
A landlord fails to make improvements to keep the balconies of his apartment building at a level of repair that meets the city code. After several warnings from the city, one of the balconies falls and smashes the furniture and barbecue of one of the tenants. Another tenant is near the balcony when it falls but no one sustains physical injuries. Compensatory damages may include:
payment for damaged property and/or mental suffering.
Examples of compensatory damages include:
payment for mental anguish.
Banks are a critical intermediary in what is called the ________, which helps an economy exchange goods and services for money or other financial assets.
payment system
Today the key management functions are considered to be:
planning, organizing, leading, staffing, motivating, and controlling.
Stare decisis refers to:
precedent established by prior court rulings in similar cases
The following would be included in the Appendix section of a business plan EXCEPT:
product or service descriptions.
Laws are intended to:
protect the fundamental rights and liberties of citizens.
The United States Constitution sets limits on the branches of government. This is an example of what purpose of law?
protecting individual rights and liberties
To assist you in distinguishing the difference between a gift and a bribe you should:
refer to company policy regarding the acceptance of gifts.
One of the ways the Federal Reserve System seeks to stabilize prices is by:
regulation of interest rates
The Federal Reserve relies on what other tool to conduct monetary policy besides the discount rate?
reserve requirements
A franchisee is generally expected to pay:
royalty fees for support from the franchiser.
Reinforcement can be affected by various factors, including
satiation: the degree of need. Money may not motivate someone who is already wealthy.
Henri Fayol felt that successful organizations, and therefore successful management, were linked to:
satisfied and motivated employees.
According to the National Business Ethics survey, in general, if a company wants to boost or ensure ethical behavior in their organization, the accountability and enforcement should begin with:
senior management
The process of control usually consists of the following four parts:
setting standards, measuring performance against those standards, analyzing performance; taking corrective action.
A ________ is owned by a single individual who is responsible for all decisions and liabilities.
sole proprietorship
A(n) ________ is an unincorporated business owned and run by one individual in which there is no distinction between the business and the owner.
sole proprietorship
Merely the presence of a goal is not motivation enough. According to the goal setting theory, a goal must be SMART. This stands for:
specific, measurable, achievable, realistic, and timely
Laws that are based on an act of Congress are:
statutory law
The legal age for purchase of alcoholic beverages is defined by:
statutory law
The process of establishing an overall course of action for the company and aligning it to the company's mission and values is known as:
strategic planning.
The SWOT analysis examines an organization's:
strengths, weaknesses, opportunities and threats.
Most states have evolved product liability negligence into:
strict liability tort law
The term ________ refers to a factory that is guilty of some sort of labor abuse or violation, such as unsafe working conditions, employment of children, mandatory overtime, payment of less than the minimum wage, unsafe working conditions, abusive discipline, sexual harassment, or violation of labor laws and regulations.
sweatshop
A manager plans to use the job characteristic model to motivate a particular employee. He shows the employee that his contributions are important and relevant. He is using the core job characteristic of
task significance
A manager needing to explain the operation of equipment to an employee needs ________ skills and communication skills.
technical
The key drivers advancing globalization are:
technical, cultural, and economic advances.
If Mexico is seeking credit to stabilize its currency in a major economic disruption, then it would turn to:
the International Monetary Fund.
When countries specialize in producing goods they are most efficient at, and trade for their other goods from trading partner countries, the arrangement demonstrates:
the Law of Comparative Advantage.
The equilibrium price for Gizmos Puzzle Toys is $12, but Gizmos are currently priced at $10 throughout the market. In the typical store that sells Gizmos, we might expect:
the box of available Gizmos is often empty.
One disadvantage of a functional structure is that:
the different functional groups may not communicate with one another.
Owning your own small business has this as the biggest advantage:
the freedom to choose your business's purpose and goals.
Disadvantages for a franchisee include:
the high cost of start-up.
When higher prices result in a lower quantity demanded, economists call this relationship:
the law of demand.
The Micram company, which makes plastic containers, decides to relocate its operations to another state. The company is moving because the new state offers new business investment credits. Which external stakeholders will be affected by Micram closing its current location?
the local government
In the National Business Ethics Survey, ________ of the employees identified pressure to meet unrealistic objectives as the most likely cause for them to compromise their ethical standards.
the majority
Bribery is one of ________ examples of a corporation engaged in unethical behavior.
the most common
Partnerships have several limitations including:
the potential for disagreements among partners.
James has just started working for a company that does not tell their employees what to do, how to do it or when things are due. This type of freedom is an example of a company that does not utilize:
the process of control.
The Hawthorne studies focused management attention on
the socio-psychological aspects of human behavior in organizations
Which of the following has as its primary purpose promoting economic and social progress in developing countries:
the word bank
Nike uses a "swoosh" on their apparel. This is an example of a:
trademark
An independent designer creates a t-shirt that encourages struggling students to "Just Do It," mimicking Nike's slogan. This is an example of a:
trademark violation
Mentoring subordinates, working one-on-one to develop their team members professionally, and providing opportunities for challenge and growth are characteristics of which leadership style?
transformational
The U.S. Government Accounting Office defines a sweatshop as any manufacturing facility that is guilty of ________ labor abuses such as unsafe working conditions, employment of children, mandatory overtime, payment of less than the minimum wage, abusive discipline, sexual harassment, or violation of labor laws and regulations.
two or more
You are employed by an automaker specializing in electric cars. As a production line supervisor your technical management skills will include:
understanding electricity storage in batteries.
Strict product liability does not require:
unreasonable conduct
________ is the relationship between the price that a customer pays for the good or service, and the perceived benefits that the customer receives.
value
The equation for balance of trade is:
value of exports − value of imports.
Smart Phone Inc. manufactures its custom phone cases for its awesome phones and tablets. It also manufactures its custom touch screen sensors and owns its own shipping company that delivers its phones and tablets straight to customer homes. Smart Phone Inc. is great at:
vertical acquisitions
A ________ is a guarantee that a product meets certain standards of performance.
warranty
Many people buy a product based upon the ________ provided by the manufacturer.
warranty
The work of Frank and Lillian Gilbreth focused on:
work motions to improve the process.
A supply curve is a graphical illustration of the relationship between price and:
quantity supplied.
Exports are an important source of what for many countries?
revenue
Infrastructure needed to transport goods in a foreign country include:
roads, railways, and port systems.
Which factors are considered in Balance of Payments, but NOT in Balance of Trade?
services, foreign investments, loans and foreign aid, financial capital, and financial transfers
If a technology change reduces a company's production costs, it will:
shift the supply curve to the right.
BMW's vehicle-assembly facility in South Carolina represents a direct investment inside the United States by the German manufacturer. This facility is an example of:
Foreign Direct Investment.
The economic term "scarcity" describes which of the following conditions?
Global oil reserves are limited
Compared to International Business, Globalization is:
broader.
An organization that provides goods or services for the purpose of making a profit is called a(n):
business
Because of our limited money, time, and effort, we are best off when we allocate those things:
by constantly assessing the opportunity costs of our choices.
Exchanging goods or services in lieu of currency transactions is known as:
countertrade.
The one unique point in which quantity demanded equals quantity supplied is called:
equilibrium
Countertrade is the exchange of goods and services without:
exchanging currency.
A function is responsible for aligning products and services to customer needs. Which function is driving this alignment?
marketing/sales
Import quotas:
set limits on the quantity or value of imports.
A for-profit business exists to maximize profits for owners. In contrast, what type of business uses its profits to provide a public service?
a nonprofit business
The Susan G. Komen organization raises money for breast cancer research by asking for donations, organizing races, and selling T-shirts and other merchandise. Susan G. Komen does not return its profits to owners, but uses them to provide a public service. For this reason, the Susan G. Komen organization is:
a nonprofit business.
Kim goes to Hot Heads at the beginning of March and asks her stylist to cut her hair shorter and to change her hair color to green for St. Patrick's Day. What has the hair salon provided Kim?
a service
When the price in some market is above its equilibrium price:
a surplus exists.
Excess supply occurs when the actual price in some market is ________ the equilibrium price.
above
In your country rubber trees are abundant and you can trade them very profitably for technology products, which you cannot produce profitably in your country. Your abundant rubber trees give you:
absolute advantage.
Which of the following items is not scarce?
air
Governments maintain laws that regulate business practices in order to:
create a stable environment for business.
Capital is the only resource that:
has been produced.
Jose opens a small graphic design firm in his hometown. As his business grows, he is fortunate to have a steady client base and a great location in the downtown business district. However, he is concerned that his current staff has run out of great ideas. John advertises for a new graphic designer with experience in the industry and a high degree of creativity. John is acquiring which factor of production?
human resources
A company acquires goods or products from another country and sells them in domestic markets. This is an example of:
importing
License agreements usually cover property that is ________, such as trademarks, images, patents, or production techniques.
intangible
Economists refer to the relationship that a higher price leads to a higher quantity supplied as the:
law of supply.
Linda opened a coffee shop that sells coffee and pastries. Linda's primary objective when she opened her business was to:
make a profit
Varvitsiotis Architecture is a commercial architecture company founded in 1996. Its primary client base is private businesses and industries. It has little experience bidding on or designing projects for government entities, such as the Department of Defense or the State of Alabama. Recently, the U.S. government announced an economic stimulus program that is intended to jumpstart construction. However, these funds were allocated to public (government) projects, where the firm currently does not have a presence. Which function in Varvitsiotis Architecture would have primary responsibility for defining a business strategy that would create success for the company in this environment?
management
Wilderness Canine is a gourmet dog food company founded in 2012. Wilderness Canine's founders believe that fresh, frozen dog food is healthier than dog food in bags or pouches, but the company struggled to get its product into the freezer section in grocery stores because consumers were not accustomed to looking for dog food in the freezer. Which function was responsible for understanding consumer behavior and aligning the product with consumer preferences?
marketing/sales
A motel provides both services and goods. Which of the following is an example of a good provided by a motel?
offering a bathrobe that you can purchase to take home with you
The combined political and economic forces of a country are known as:
political economy.
The downward slope of a demand curve illustrates the pattern that as ________ decreases, ________ increases.
price; quantity demanded
The amount a business earns after deducting what it spends for rent, salaries, and other expenses is:
profit
One of the main responsibilities of the World Trade Organization is to:
provide a forum for negotiations, agreements and settling disputes among nations.
A business collects demographic information about what kinds of products and services potential and current customers purchase, where they live, and how they spend their time. This business is responding to the:
social environment.
The relationship between the price in a market and the amount that producers collectively make available for sale is referred to as:
supply
The relationship between the price in a market and the amount that producers collectively make available for sale is referred to as:
supply.
Which of the following has as its primary purpose promoting economic and social progress in developing countries:
the World Bank.
In life, we all come to a fork in the path when we need to make a choice, knowing that:
the correct choice depends upon how much we need to give up.
What type of environment impacts a business if low interest rates and government incentives are offered to open or expand businesses?
the economic environment
When a market is experiencing a shortage, or "excess demand":
the equilibrium price is higher than the current market price.
Denice invented a small, portable purse hook that allows a purse to be hung from a table and not touch the floor. She knows that there is a market for her purse hook and takes out a loan on her home to finance a small start-up company in Rock Creek, WI. As an entrepreneur, Denice's primary motivation for opening the business is:
the potential of making a profit if the business succeeds.
A microeconomic example may include(s):
the price that a local automobile repair shop will charge for its services.
A severe drought has damaged the Washington state apple crop. As a result, apple producers will pay more for apples, and ultimately consumers will have to pay more for apple juice at the grocery store. The impact on the market for apple juice will cause which of the following to shift to the left?
the supply curve
Suppose Congress passes legislation that offers subsidies to orange farmers. The impact on the market for orange juice will be a rightward shift of:
the supply curve.
The international monetary community created both the IMF and the World Bank because:
the two organizations create an important division of labor.
When quantity demanded decreases in response to a change in price:
there is a movement from one point to another along the demand curve.
Regional trade agreements are reciprocal trade agreements between:
two or more nations.
When marketing products globally, businesses should:
understand and conform to the laws of the countries in which they operate.
In general, supply curves slope:
upward from left to right.
