MGMT 103 Questions

According to Maslow's hierarchy of needs, a person's desire for acceptance by others is a reflection of their ________ needs

Social

Which flexible scheduling strategy allows employees to work from home while staying connected to the office through the use of computers and telephones?

Telecommuting

Which law reformed the financial industry and offered consumers protection against complex and/or deceptive financial products?

The Dodd-Frank Act

Which statement is true of business ethics?

The acceptability of behavior in business is determined by not only an organization, but also its stakeholders.

Theory Z was first described by ____.

William Ouchi

A firm's ________ should contain three key components: an attribute sought, a target to be achieved, and a time frame.

goals

A firm's ________ resources are also known as labor.

human

Which of the following is an example of an intangible product?

music concert

Articles of partnership usually cover issues, including

provisions for leaving the partnership.

The decision-making process in a partnership tends to be faster when

there are two partners and both of them are involved in the day-to-day activities of the business.

Savings accounts are also known as

time deposits

Frederick Herzberg proposed

two-factor theory

Physical facilities such as railroads, highways, airfields, hospitals, and distribution systems all support a country's economic activities and are referred to as the country's

Infrastructure

Why is it difficult for sole proprietorships to hire qualified employees?

It is difficult for sole proprietorships to match the wages and benefits offered by large corporations.

What is an advantage of a sole proprietorship?

It is easy and inexpensive to form

Motivating employees to stay engaged is a key responsibility of

Management

If a manager attempts to take credit for a subordinate's ideas, this is a form of

Plagiarism

The quantity of goods and services that consumers are willing to buy at different prices at a specific time is referred to as

demand

It is easier to raise funds in partnerships than in sole proprietorships because

several partners mean greater earning power and credit

When a manager makes sure there is adequate funding to pay for essential activities, he or she is managing ________ resources.

Financial

Which practice is considered to be illegal in the United States?

Forcing employees to retire on the basis of age

A form of licensing in which a company agrees to provide another company with its name, logo, methods of operation, advertising, products, and other elements associated with it in return for a financial commitment and the agreement to conduct business in accordance with its standard of operations is referred to as

Franchising

A company that has departments for marketing, finance, human resources, and production is organized by

Function

According to Herzberg's theory, what is a hygiene factor?

Job Security

Obeying the law is a business's

Legal Responsibility

When a group of investors borrows money from banks and other institutions to acquire a company and uses the assets of the purchased company to guarantee repayment of the loan, a ________ is taking place.

Leveraged Buyout

A trade arrangement in which one company allows another company to use its company name, products, patents, brands, trademarks, raw materials, and/or production processes in exchange for a fee or royalty is referred to as

Licensing

Frederick Taylors ideas are still in practice today as more and more corporations are linking workers' _______ to performance in order to motivate employees

Pay

Ancient Grains Products lists a toll-free number on all the product packages it sells. This allows buyers to contact the manufacturer and make suggestions or register complaints. This is an initiative toward

Promoting consumerism

According to Herzberg's theory, what is a motivational factor?

Recognition

Like most managers of the early 20th century, Frederick Taylor believed that ________ would motivate employees to work hard.

Satisfactory pay and job security

________ banking refers to companies performing banking functions of some sort that are not regulated by banking regulators.

Shadow

Job ________ reflects a flexible scheduling strategy

Sharing

Leon is an accountant for a small company. As such, he participates primarily in ________ activities.

Financial

________ is the primary goal of business.

profit

A ________ is a performance appraisal method that provides feedback from a panel that typically includes superiors, peers, and subordinates.

360-degree feedback system

An example of ________ is the sharing of costs and operations of a business between a foreign company and a local partner.

A Joint Venture

Which of the following can be best defined as a corporation that operates in several countries without significant ties to any of them?

A Multinational Corporation

What should be kept in mind when setting company goals?

A goal has three key components: an attribute sought, a target to be achieved, and a time frame in which the goal is to be achieved.

A(n) ________ exists when a country is the most efficient producer of an item.

Absolute advantage

What is a primary characteristic of diversity?

Age

Which is true of authentic leaders?

Authentic leaders are identified by the way in which they conduct themselves with stakeholders.

A nation's ________ is defined as the difference in value between its exports and imports.

Balance of Trade

The owner of a jewelry store offers the manager of its major supplier an expensive gift to obtain a price reduction for the next consignment. Which of the following approaches is the store owner using to influence the manager's decision making?

Bribery

________ are payments, gifts, or special favors intended to influence the outcome of a decision.

Bribes

The principles and standards that determine acceptable conduct in business organizations are referred to as

Business Ethics

________ are savings accounts that guarantee a depositor a set interest rate over a specified interval of time as long as the funds are not withdrawn prematurely.

Certificates of Deposits

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

China

Which is a formal expression of an organization's culture?

Code of Ethics

________ is the study of how money is managed by individuals, companies, and governments.

Finance

________ are legal documents that the state issues to companies based on information the company provides in the articles of incorporation.

Corporate Charters

Differences in spoken and written language represent a(n) ________ barrier to international trade.

Cultural

Which is an internal source of recruitment for an organization?

Current Employees

Which concept deals with giving employees the power to make commitments and use resources to accomplish the assigned tasks?

Delegation of Authority

Before an organization can plan a course of action, it must first

Determine what it wants to achieve

The purchase of overseas production and marketing facilities is an example of

Direct Investment

For money to serve effectively as a measure of value, all items must be valued in terms of comparable units. What characteristic of money does this statement reflect?

Divisibility

Mary, a project manager at a software company, informs her subordinates of the organization's new policies and code of conduct. This is an example of ________ communication.

Downward

All of the following are reasons organizing is important EXCEPT

Eliminates Synergy

Which statement is true of employee empowerment?

Employee empowerment does not mean that managers are not needed

As it applies to the workplace, a separation is a(n)

Employees departure from an organization

An organization that subscribes to the principles of Theory Z

Employment is lifelong

________ emerged as a major issue in the 20th century in the face of increasing evidence that pollution, uncontrolled use of natural resources, and population growth were putting increasing pressure on the long-term sustainability of these resources.

Environmental Protection

The ________ is a federal agency established by the Civil Rights Act of 1964 that is dedicated to increasing job opportunities for women and minorities and eliminating job discrimination based on race, religion, color, sex, national origin, or handicap.

Equal Employment Opportunity Commission (EEOC)

What theory is based on the idea that employees try to maintain fairness or balance between inputs and outputs as compared to others in similar positions?

Equity Theory

What theory 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?

Expectancy Theory

________ are benefits and/or recognition that a person receives from someone else.

Extrinsic Rewards

If the type of departmentalization used by an organization tends to emphasize departmental units rather than the organization as a whole and decision making is slow, then these would be weaknesses indicative of ________ departmentalization.

Functional

A checking account is also called a demand deposit because

Funds may be withdrawn by its owner without advance notice

The ________ Act prohibited commercial banks from being in the insurance and investment banking business.

Glass-Steagall

________ involves standardizing products, and their promotion and distribution if possible, for the whole world, as if it were a single entity.

Globalization

Ritesh believes that goals act as motivators to focus employee efforts on achieving certain performance outcomes. Ritesh's belief is most closely related to

Goal-setting theory

Lorenzo is the top manager of a small engine repair company. He wants to create an ethical culture at his company. What is one thing he should do to accomplish this?

He should train managers and employees on what to do if an ethics crisis occurs.

The purpose of a labor union is to

Help its members achieve better pay, hours, and working conditions

Which stage of the employee selection process allows management to obtain detailed information about an applicant's experience and skills, reasons for changing jobs, and an idea of whether the person would fit in with the company?

Interviewing

The personal satisfaction and enjoyment that a person feels from attaining a goal is referred to as a(n)

Intrinsic Reward

Steven is an engaged worker. This means that he

Is emotionally involved and works with a commitment to the company

What is the significance of the "cost-of-living adjustment" clause in labor contacts?

It calls for automatic wage increases during periods of inflation

Which is a disadvantage of job specialization?

It can lead to dissatisfaction and boredom among employees if overly done.

In an S corporation, net profits and losses of the corporation pass to the owners. What effect does this have?

It eliminated double taxation

What is TRUE of Kickstarter

It funds creative projects in the worlds of art, film, games, music, publishing, and so on.

An employee's attitude toward his or her job, employer, and colleagues is referred to as that employee's

Morale

According to Herzberg's two-factor theory, ______ factors include achievement, recognition, involvement, responsibility, and advancement

Motivational

A ________ strategy can be best defined as a plan, used by international companies, that involves customizing products, promotion, and distribution according to cultural, technological, regional, and national differences.

Multinational

A similarity between limited liability companies and S corporations is that both

Offer limited liability to owners

________ allow consumers to perform an ever-widening array of financial transactions from their personal or work computers.

Online Banking Services

________ is the transferring of manufacturing or other tasks—such as data processing—to countries where labor and supplies are less expensive.

Outsourcing

Some companies refer to human resources management as

Personnel Management

According to Maslow, humans 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.

Physiological

According to Maslow, which need do people strive to satisfy first?

Physiological Needs

________ is a public protest against management practices and involves union members marching at an employer's plant or work site.

Picketing

What form of compensation includes an employee stock ownership plan?

Profit Sharing

A special type of project team that focuses on devising, designing, and implementing a new product is a

Project-development team

Bikes Unlimited is a profitable bicycle retailer. In addition to selling new bicycles, it has a buy-back program in which it buys used bicycles, fixes them, and gives them to needy families in its community. This is one way that Bikes Unlimited fulfills its

Social Responsibility

The term ________ refers to a business's obligation to maximize its positive impact and minimize its negative impact on society.

Social Responsibility

________ is the division of labor into small, specific tasks and the assignment of employees to do a single task.

Specialization

________ plans establish the long-range objectives and the overall course of action by which a firm fulfills its mission.

Strategic

________ 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.

Sustainability

According to managers who adopt McGregor's Theory X,

The average worker will avoid work when possible

The more layers in an organization,

The slower the communication

In an organization, decisions regarding adding new products, acquiring companies, and moving into foreign markets would most typically be made by

The top management

Which statement about task forces is true

They may occasionally be composed of individuals from outside an organization.

The birth of the study of human relations within business organizations can be traced to

Time and motion studies by Frederick W. Taylor and Frank and Lillian Gilbreth

Paul works for a U.S. steel manufacturer. He knows that the city of Southville is going to release a large municipal contract out for bid. Paul is meeting the city manager for the first time, so he brings him a very expensive gift, hoping it will increase his chances of securing the contract. In terms ethical business conduct, this gesture is seen as

a bribe

What competitive environment exists when there is only one business providing a product in a given market?

a monopoly

What is a proxy?

a written authorization assigning voting privileges to someone else

Which of the following is an example of a tangible product?

an automobile

Open Market Operations refer to decisions to

buy or sell U.S. Treasury bills and other investments in the open market.

Crisis management plans generally cover maintaining business operations during a crisis and

communicating with others about the situation and the company's response to the crisis.

Which of the following is an intangible resource?

company reputation

The right to choose ensures that

consumers have access to a variety of goods and services at competitive prices.

When companies mislead consumers about the benefits of their products, they infringe on

consumers right to be informed

Which of the following involves the activities and organizational processes adopted by businesses to meet their social responsibilities?

corporate citizenship

Partnerships are quasi-taxable organizations. This means that they

do not pay taxes when submitting the partnership tax return to the Internal Revenue Service.

An advantage of line structure in organizations is that it

enables managers to make decisions quickly

The ________ 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 specific point in time.

equilibrium price

The ratio at which one nation's currency can be exchanged for another nation's currency is referred to as the

exchange rate

When it comes to borrowing funds, a sole proprietor

oftentimes must pledge a car, a house, other real estate, or other personal assets to guarantee a loan.

Tactical plans usually cover a period of

one year or less

A marketing manager is responsible for

planning, pricing, and promoting products and overseeing their distribution.

Pollution of water and soil from activities such as oil and gas drilling is primarily related to

sustainability issues