Principals of Bus Final Review

Three primary factors that affect the organizational structure of a business include interpersonal relationships, tasks, and (EC:103) • authority • injunction • attrition • initiative

authority (correct answer)

Management decides to hold its annual meeting in one U.S. city rather than another because of crime in that city. This is an example of __________ the risk. (EC:011) • retaining • transferring • avoiding • preventing or controlling

avoiding (correct answer)

A business suddenly moves its operations to a new town, leaving its current employees jobless. Its reason for taking this action, which some consider unethical, might be that the action (EC:106) • doesn't hurt anyone. • is not illegal. • benefits the community • is committed by unethical employees.

is not illegal. (correct answer)

One internal factor that affects the business environment is (EC:105) • industry trends. • management style. • exchange rates. • the business cycle.

management style. (correct answer)

Identify the term that best represents marketing's role in society. (MK:001) • Problem solver • Producer • Pioneer • Peacemaker

Problem solver (correct answer)

he ultimate goal of all economic activity is (EC:001) • consumption • distribution • production • exchange

consumption (correct answer)

Using a stream to supply water to a field in order to grow crops is an example of using (EC:003) • capital goods. • natural resources. • nonrenewable resources. • human resources.

natural resources. (correct answer)

Each purchase strengthens the economy by encouraging (EC:010) • expansion. • competition • investment • trade

trade (correct answer)

A bank denies a business owner's application for credit saying, "We feel that you would be unable to make the monthly payments because of your other debts." What financial report did the bank review? (FI:085) • Operating budget • Budget • Balance sheet • Income statement

Balance sheet (correct answer)

Which of the following is a public good that is provided by the government: (EC:008) • Private schools • New automobiles • Interstate highways • Marketing research

Interstate highways (correct answer)

One reason that businesses use a matrix organizational design is to (EC:103) • improve employee productivity. • segment areas of expertise. • standardize business tasks. • share human resources.

share human resources. (correct answer)

Levels of inflation and unemployment are factors that affect __________ in the world market. (EC:016) • satisfaction • communication • specialization • competition

competition (correct answer)

student purchased a laptop to use for homework assignments. In economic terms, this computer would be classified as a(n) __________ good. (EC:002) • ultimate • industrial • capital • consumer

consumer (correct answer)

One reason an existing business might develop a company web site is to (NF:003) • create a new revenue source. • lower tax rates. • increase its product mix. • reduce marketing expenses.

create a new revenue source. (correct answer)

Which of the following occurs when the supply of individuals who are able and willing to work diminishes: (EC:003) • Capital goods become unlimited. • Capital goods become limited. • Human resources become limited. • Human resources become unlimited.

Human resources become limited. (correct answer)

A manager who helps an employee count the money in a cash drawer and prepare a bank deposit is demonstrating (SM:001) • creativity. • technical skills. • aggressive behavior. • natural talent.

technical skills. (correct answer)

An important factor that has a significant effect on the general business environment is (EC:105) • technology • geography • organization • reputation

technology (correct answer)

With Rosita's pizza shop, financial analysis is used to (EC:071) • attract customers. • develop the best recipe. • oversee the baking process. • obtain funding for supplies.

obtain funding for supplies. (correct answer)

A wholesale distributor would like to track its customers geographically. Which software application would be most effective? (NF:003) • Spreadsheet • Internet • Database • Word processing

Database (correct answer)

Which of the following is an example of increased financial risk for a company with poor business ethics: (EC:106) • Decreased labor costs • Increased productivity • Increased sales • Decreased company value

Decreased company value (correct answer)

Which of the following is a potential problem in market economies? (EC:007) • Total government control • No competition • Financial loss • Production quotas for businesses

Financial loss (correct answer)

In a communist command economy who decides how the economic questions will be answered? (EC:007) • Individuals • Government • Businesses • Venture team

Government (correct answer)

What type of property is a business protecting when it registers its trademark? (BL:001) • Tangible • Intellectual • Administrative • Statutory

Intellectual (correct answer)

Complying with environmental laws is part of which operations activity? on (OP:189) • Inventory control • Safety and security • Purchasing • Logistics

Safety and security (correct answer)

Online chats, forums, and communities that enable businesses to learn about the wants and needs of their worldwide target market have created a new form of (EC:045) • social relationships. • cultural values. • gender roles • class systems.

social relationships. (correct answer)

Government owns the basic means of production but there is some private ownership of businesses under (EC:007) • socialism • entrepreneurship • communism • capitalism

socialism (correct answer)

Wendy's sells the right to operate its restaurants to individuals who meet the company's criteria. The arrangement between Wendy's and these individuals is an example of (BL:003) • licensing • multi-level marketing. • franchising • a partnership agreement.

franchising (correct answer)

Efficient production enables businesses to (OP:017) • charge higher prices than competitors. • make an accurate forecast of sales. • turn out the most products at the least cost. • obtain advance orders for goods and services.

turn out the most products at the least cost. (correct answer)

A manufacturer is a type of business that (EC:070) • keeps raw goods in their original forms. • does not make use of raw goods. • turns raw goods into useful products. • sells raw goods for their producers.

turns raw goods into useful products. (correct answer)

Changing a good's form involves which of the following: (EC:004) • Adding a new feature to the good • Providing an easy way to buy the good • Making sure the good is available early • Getting the good to the retailer

Adding a new feature to the good (correct answer)

What role does utility play in the implementation of the marketing concept? (EC:004) • A cost-saving tool • A delivery process • A payment method • A satisfaction gauge

A satisfaction gauge (correct answer)

Human resources are a company's most important resources because (HR:410) • they are controlled by other company resources. • they are the most expensive resources. • they control all other company resources. • they are the least expensive resources.

they control all other company resources. (correct answer)

A nation that exports more than it imports maintains a (EC:016) • balance of trade. • trade deficit. • trade surplus. • lower standard of living.

trade surplus. (correct answer)

If a good or service is scarce, consumers will usually be (EC:002) • unwilling to buy it. • able to get as much of it as they want. • willing to pay money to get it. • uninterested in owning it.

willing to pay money to get it. (correct answer)

Jaron, the district technology coordinator for Abington City Schools, is responsible for purchasing new computers for the district. He recently sent out a request for price quotes to five different computer companies, and he is waiting to hear what the various suppliers' proposed prices will be. Jaron is conducting (OP:015) • a make-or-buy decision. • retail buying. • competitive bidding. • negotiations.

competitive bidding. (correct answer)

Jake wanted to run his own business but was unsure that he had adequate business skills to be successful. Which type of business would give Jake the help he needs? (BL:003) • Business-format franchise • Sole proprietorship • Product trade-name franchise • Private corporation

Business-format franchise (correct answer)

Which of the following is a reason that a U.S. company would decide to offer its products in other countries: (EC:104) • To provide jobs to people in other countries • To sell obsolete, outdated products • To subsidize developing countries • To expand to new, untapped markets

To expand to new, untapped markets (correct answer)

Why does the government set and collect taxes? (EC:008) • To increase the use of technology • To help pay the expenses of government • To help businesses grow and prosper • To provide economic security

To help pay the expenses of government (correct answer)

Which of the following is a key component of managing working capital: (FI:354) • Cash conversion cycle • Capital structure • Financing • Capital budgeting

Cash conversion cycle (correct answer)

To maintain its current customer base and attract new markets, the KMV Company lowered the prices of some of its products. What external factor most likely influenced this action? (EC:107) • Production line improvements • Operating cost increases • Changes in consumer spending • Comprehensive employee training programs

Changes in consumer spending (correct answer)

The law that requires businesses to hire, train, transfer, and promote employees without regard to race, color, gender, religion, or national origin is the __________ Act. (BL:001) • Federal Reserve • Civil Rights • Robinson-Patman • Sherman Antitrust

Civil Rights (correct answer)

Which of the following factors affects society's basic values and behaviors that influence their buying decisions: (EC:105) • Economic • Political • Cultural • Environmental

Cultural (correct answer)

A manager studies the business's previous sales statistics as well as the sales forecast before making purchasing decisions. What type of resource is the manager using? (SM:001) • Financial • Human • Information • Material

Information (correct answer)

Which one of the following groups of words best describes wants: (EC:001) • Limited, changing, and compensating • Limited, unchanging, and competing • Unlimited, unchanging, and compensating • Unlimited, changing, and competing

Unlimited, changing, and competing (correct answer)

What is the government doing when it buys wheat to keep the price high enough for farmers to make a profit? : (EC:008) • Encouraging energy conservation • Using price supports • Industrializing the economy • Encouraging the production of wheat

Using price supports (correct answer)

What are the three basic economic questions? (EC:001) • What products will be produced; how will products be produced; and how will products be allocated? • Where will products be produced; when will products be produced; and what products will be produced? • When will products be produced; what products will be produced; and how will products be allocated? • When will products be produced; how will products be produced; and how will products be allocated?

What products will be produced; how will products be produced; and how will products be allocated? (correct answer)

In an overall sense, where does marketing occur? (MK:001) • Wherever stores are • Wherever customers are • Wherever trucks are • Wherever advertisements are

Wherever customers are (correct answer)

Which of the following is a detail that a buyer should know prior to placing an order for raw materials? (OP:015) • Whether the company has storage space for the raw materials • Which employees will be converting the raw materials into finished products • Who will be purchasing the finished products • How the finished product will be marketed

Whether the company has storage space for the raw materials (correct answer)

What determines whether an economic product is an industrial product or a consumer product? (EC:002) • Who produces the product • The origin of the product • Who buys and uses the product • The price of the product

Who buys and uses the product (correct answer)

Jeremiah purchases sterling silver necklaces and bracelets from Native American artisans and sells the items to jewelry stores and gift shops. What kind of buyer is Jeremiah? (OP:015) • Wholesale • Retail • Industrial • Business use

Wholesale (correct answer)

An American businessperson in London was offered a "cuppa" by the company's receptionist. The businessperson did not know that the receptionist was offering a cup of tea. This is an example of (EC:045) • a language barrier. • economic differences. • being uneducated. • a business subculture.

a language barrier. (correct answer)

One way in which many businesses demonstrate their social responsibility toward employees is by providing them with (EC:070) • regular entertainment. • a safe working environment. • a stress-free atmosphere. • free meals.

a safe working environment. (correct answer)

The U.S. produces widgets faster and cheaper than Switzerland. In this example, the U.S. has a(n) __________ advantage. (EC:016) • comparative • constructive • absolute • predictable

absolute (correct answer)

Juan's Fishing Shack demonstrates effective information management by (EC:071) • promoting new fishing equipment in a popular trade magazine. • accessing a list of fishing equipment appropriate for a particular customer. • hiring fishing experts to explain how to use the goods offered. • removing wasted materials from the process of providing goods to customers.

accessing a list of fishing equipment appropriate for a particular customer. (correct answer)

In order for an accounting system to be useful to the business, the accounting information it contains must be (FI:085) • accurate and up-to-date. • posted by an accountant. • recorded using the accrual method. • approved by the chief executive officer.

accurate and up-to-date. (correct answer)

The growth of e-commerce is changing the way companies do business by allowing them to (NF:013) • reduce the services they provide customers. • place high prices on their products. • be accessible to customers at all times. • communicate with similar organizations.

be accessible to customers at all times. (correct answer)

In economics, the term capital goods includes (EC:001) • labor and management. • buildings and equipment. • trees and water. • mental and physical work

buildings and equipment. (correct answer)

When marketers provide information about an available product, consumers are more likely to (EC:004) • request a payment plan. • ask questions about the product. • buy the product. • put the product on layaway.

buy the product. (correct answer)

Businesses that successfully adapt to current market situations often realize that (EC:107) • cutting costs is important. • diversification is the key. • change is an opportunity. • more financing is necessary.

change is an opportunity. (correct answer)

A business's philanthropic responsibility involves its contributions to (EC:106) • the economy. • scientific research. • political campaigns. • charity

charity (correct answer)

The overall purpose of accounting is to (FI:085) • control the finances of the business. • keep track of sales. • maintain accurate reports. • compile the business's expenses.

compile the business's expenses. (correct answer)

Carefully selecting goods or services to sell is an example of handling business risks by __________ the risk. (EC:011) • bypassing • avoiding • controlling • transferring

controlling (correct answer)

Managing information regarding copyrights and trademarks helps a company to preserve its (NF:110) • correspondence • inventory • customers • identity

correspondence (correct answer)

One of the benefits of production to consumers is that production (OP:017) • creates form utility. • provides a way to earn profits. • provides a way to be competitive. • makes use of automation.

creates form utility. (correct answer)

One way that competition helps to build a prosperous society is by (EC:012) • replacing small businesses with large ones. • creating government legislation. • creating new jobs. • increasing the money supply.

creating new jobs. (correct answer)

A country with a weak currency value tends to (EC:016) • rely solely on trade centers to manage the flow of exports. • gain consumer confidence which limits spending. • experience high unemployment rates. • decrease its imports and increase its exports.

decrease its imports and increase its exports. (correct answer)

Changes in the market that cause prices to go up or down, products to change, and businesses to succeed or fail are examples of __________ risks. (EC:011) • human • competitive • economic • natural

economic (correct answer)

Operations managers have two main goals in mind—efficiency (keeping costs low) and on (OP:189) • reputation (keeping up the business's good name). • legality (keeping the business in good standing with the law). • productivity (keeping business running fast). • effectiveness (keeping customers satisfied).

effectiveness (keeping customers satisfied). (correct answer)

Companies that operate at the international level should be aware of political factors that affect trade, such as civil unrest or (EC:104) • business cycles. • competitors. • currency rates. • embargoes.

embargoes. (correct answer)

The way in which an economic system answers the basic economic questions depends upon the country's (EC:007) • demand • supply • government • resources

government (correct answer)

A popular product is said to be (EC:010) • available • in demand • out of style • late

in demand (correct answer)

Producers respond to consumers' positive economic votes by (EC:002) • classifying their goods and services • increasing production • producing more industrial goods • decreasing production

increasing production (correct answer)

Appropriate information management saves businesses time and money by (NF:110) • increasing information overload. • maintaining yearly raises for employees. • increasing "paper trails." • maintaining higher levels of productivity

maintaining higher levels of productivity. (correct answer)

Information management can be a challenge because (NF:110) • there is only one "right" way to do it. • no one wants to participate in it. • there is often not enough information to manage. • many people don't understand what it is.

many people don't understand what it is. (correct answer)

Formal relationships and a distinctive chain of command are characteristics of the _________ organizational business structure. (EC:103) • organic • mechanistic • decentralized • imperial

mechanistic (correct answer)

A business that fails to protect its employees from unnecessary risk or health hazards on the job may be sued for (BL:001) • misrepresentation • negligence. • libel. • incompetence.

negligence. (correct answer)

The finance function would definitely be involved in a decision regarding (FI:354) • public relations and publicity. • new business projects and strategies. • hiring • personal selling.

new business projects and strategies. (correct answer)

One way that competition benefits business is by encouraging the creation of (EC:012) • more regulations. • new companies. • unrelated firms. • limited resources.

new companies. (correct answer)

When meeting with businesspeople from other countries, it is important to understand social differences, such as bowing, handshaking, and spatial comfort, which are often called (EC:045) • mixed messages. • non-verbal cues. • language barriers. • human behaviors.

non-verbal cues. (correct answer)

Offering high quality, large assortments, and free shipping are examples of (EC:012) • price fixing. • price competition. • nonprice competition. • rebates.

nonprice competition. (correct answer)

One way that technological innovation has changed business is by decreasing the use of (NF:003) • fax machines. • phone systems. • skilled workers. • paper forms.

paper forms. (correct answer)

John, Robert, and Charles were college friends who wanted to start a business. John has creative ability, Robert's expertise is selling, and Charles' expertise is management. However, each has limited capital. The ideal business ownership for these young men is a (BL:003) • franchise • partnership • corporation • merger

partnership (correct answer)

A main reason that environmental scanning is important is so that businesses can be aware of (NF:015) • competitors' internal environments. • foreign markets. • potential threats. • new products.

potential threats. (correct answer)

Alex owns a guitar, several books, a car, and a telescope. Alex's possessions are examples of (EC:009) • economic resources • equal distribution. • capital goods. • private property.

private property. (correct answer)

reason a physicians' practice might form a partnership as an LLP is to (BL:003) • ensure that the business experiences unlimited liability. • permit the general public to purchase licensing rights in the practice. • protect innocent partners from the malpractice of another partner. • take advantage of higher dividend returns on shares of its stock.

protect innocent partners from the malpractice of another partner. (correct answer)

One reason why many small businesses develop an organizational design that requires a board of directors is because a board usually (EC:103) • assumes all legal responsibility for the business's actions. • provides experience that increases the business's credibility. • evaluates the performance of the business's employees. • helps with the day-to-day operations of the business.

provides experience that increases the business's credibility. (correct answer)

Businesses can show their social responsibility by contributing to (EC:070) • public interests • private causes. • promotion. • pollution.

public interests. (correct answer)

Businesses can protect themselves from the risk associated with lost shipments by (EC:011) • inspecting shipments of goods. • purchasing transportation insurance. • training receiving personnel. • selecting resale items carefully.

purchasing transportation insurance. (correct answer)

Accounting is distinct from finance because its main focus is on (FI:354) • acquisition of funds. • administration of assets. • money management decisions. • record-keeping activities

record-keeping activities. (correct answer)

Government can prevent unqualified persons from operating a business by : (EC:008) • refusing to grant them a license. • closing their bank accounts. • raising their taxes. • helping their competitors.

refusing to grant them a license. (correct answer)

One reason why it is important for businesses to identify and respond to current business trends is to (NF:013) • improve motivation. • control performance. • remain competitive. • encourage feedback.

remain competitive. (correct answer)

An advantage to a business of filing Chapter 11 bankruptcy is that the process allows the business to (BL:001) • reorganize. • sell assets . • eliminate taxes. • liquidate.

reorganize. (correct answer)

A business should conduct environmental scans on a continuous basis so that it can (NF:015) • save money. • respond to opportunities and threats quickly. • change customers' attitudes. • control the external environment.

respond to opportunities and threats quickly. (correct answer)

If expenses are greater than income, there's no (EC:010) • guarantee • reward • sales • risk

reward (correct answer)

As the use of information-management systems continues to grow, it is important for businesses to be concerned with their customers' (NF:013) • rights to privacy. • level of service. • need for information. • access to credit.

rights to privacy. (correct answer)

Consumers are typically most willing to pay more for goods and services that bring them greater (EC:001) • trade-offs • opportunity costs • popularity • satisfaction

satisfaction (correct answer)

To discover a product's level of utility, marketers measure the consumer's (EC:004) • satisfaction • desire • attitude • perspective

satisfaction (correct answer)

Why is production important to businesses? (OP:017) • It creates goods and services businesses can sell. • It informs businesses about consumers' needs and wants. • It enables businesses to charge high prices. • It prevents businesses from wasting resources.

It creates goods and services businesses can sell. (correct answer)

Why is a good accounting system important to a business? (FI:085) • It shows the business how it is doing. • It increases the return on investment. • It prevents any financial losses. • It gives the business an image of success.

It shows the business how it is doing. (correct answer)

Overall, what does marketing allow us to do? (MK:001) • Limit our spending • Live our daily lives • Feel better about shopping • Stop buying online

Live our daily lives (correct answer)

Which of the following government actions is most likely to stimulate the economy: (EC:008) • Borrowing more money • Lowering tax rates • Raising the prime interest rate • Printing less money

Lowering tax rates (correct answer)

Retailing takes place whenever goods are (EC:070) • sold in a retail establishment. • offered for sale. • sold to the ultimate consumer. • exchanged for other goods.

sold to the ultimate consumer. (correct answer)

Gross profit shows business owners the difference between what they've (EC:010) • received and billed. • paid and risked. • spent and received. • estimated and invoiced.

spent and received. (correct answer)

A business is planning a sale and needs to know what sales were for a particular weekend in the previous year. Which of the following accounting records would provide this information: (FI:085) • Income statement • Bank statement • Disbursement journal • Sales journal

Sales journal (correct answer)

A socially responsible business will attempt to give customers (EC:070) • the best products at the best prices. • high-quality products at high prices. • the best products no matter what the cost. • lower quality products at reduced prices.

the best products at the best prices. (correct answer)

Contractual agreements such as guarantees, surety bonds, and leases are examples of handling business risks through (EC:011) • management • avoidance • transfer • prevention or control.

transfer (correct answer)

A characteristic of human wants is that they are (EC:002) • limited • unlimited • consistent • unchanging

unlimited (correct answer)

One of the freedoms provided to individuals by the private enterprise system is the freedom to choose (EC:009) • which laws they will obey. • where they will work. • which taxes they will pay. • how their employers pay them.

where they will work. (correct answer)

Most businesses put their greatest competitive efforts into competing (EC:012) • locally • nationally. • with direct competitors. • with indirect competitors.

with direct competitors. (correct answer)

Over the next few years, members of Generation X and Generation Y are expected to fill many job positions vacated by retiring Baby Boomers. This is an example of a change in (EC:003) • nonrenewable resources. • automated processes. • new capital goods. • workforce demographics.

workforce demographics. (correct answer)

How does the finance function relate to company spending? (FI:354) • It plans and controls spending. • It does not relate to spending. • It produces reports about spending. • It spends on investment only.

• It plans and controls spending. (correct answer)

Which of the following factors has aided the most in creating a global business environment: (EC:104) • Exchange rates • Cultural changes • Technology • Government

• Technology (correct answer)

Lack of economic growth is a major problem for __________ economic systems. (EC:007) • market • socialist command • communist command • traditional

• traditional (correct answer)

Why should a business practice good ethics? (EC:106) • An unethical business will go bankrupt. • An ethical business makes more money than all its competitors. • The government will fine an unethical business. • An ethical business contributes toward its own success.

An ethical business contributes toward its own success. (correct answer)

Which of the following is a benefit of international trade: (EC:016) • Higher prices for goods and services • Stronger trade restrictions • An improved standard of living • An increased trade deficit

An improved standard of living (correct answer)

How does appropriate information management affect a business's relationship with its customers? (NF:110) • Businesses make better financial decisions. • Businesses earn higher profits. • Businesses serve customers more effectively. • Businesses lose focus on customers.

Businesses serve customers more effectively. (correct answer)

How does marketing-research data help a business's production planning? (OP:017) • By identifying consumers' needs and wants • By setting the timetable to use in production • By identifying resources needed in production • By determining how products will be produced

By identifying consumers' needs and wants (correct answer)

Which of the following is a characteristic of the organic organizational business structure: (EC:103) • Inflexible procedures • Specialization emphasis • Centralized authority • Delegation emphasis

Delegation emphasis (correct answer)

What type of trend are businesses considering when they analyze where customers live and their ethnic backgrounds? (NF:013) • Cultural • Demographic • Technical • Environmental

Demographic (correct answer)

In what way might a human resources manager be involved in employee benefits? (HR:410) • Determining eligibility and costs of benefits • Selecting an employee's personal plan options • Choosing an employee's vacation days • Collecting insurance payments from employees

Determining eligibility and costs of benefits (correct answer)

Which management function is described in the following situation: James Crane has created a team atmosphere among the members of his sales department. When the team exceeded their monthly sales goal, James rewarded them with a celebratory dinner out and a five-percent bonus. (SM:001) • Directing • Controlling • Planning • Organizing

Directing (correct answer)

Which of the following are examples of middle-management job titles: (SM:001) • President, senior vice president, and chief executive officer • Floor supervisor, area supervisor, and section manager • Collections supervisor, crew chief, and production supervisor • District manager, department head, and regional sales manager

District manager, department head, and regional sales manager (correct answer)

Which of the following is a factor that would encourage businesses to start a business at a particular location: (EC:105) • Strict government regulations • High unemployment rates • Easy access to competitors' products • Easy access to natural resources

Easy access to natural resources (correct answer)

Labor-union negotiations are part of which HR management activity? (HR:410) • Training and development • Compensation and benefits • Staffing • Employee relations

Employee relations (correct answer)

Which of the following factors affecting the business environment is represented by the business's location: (EC:105) • Economic • Political • Cultural • Environmental

Environmental (correct answer)

Which of the following are qualities of monopolies: (EC:012) • High prices and low production • High prices and much competition • Low prices and little competition • Low production and much competition

High prices and low production (correct answer)

Which of the following economic resources is responsible for combining the other resources to produce goods and services: (EC:003) • Human resources • Natural resources • Capital goods • Nonrenewable resources

Human resources (correct answer)

Which of the following would be done first in an environmental scan: (NF:015) • Identify and analyzing important trends and issues • Selecting trends and issues to act on • Carrying out scanning activities • Identifying participants and responsibilities

Identifying participants and responsibilities (correct answer)

Which of the following is the best action for businesses to take in order to adapt to changing markets: (EC:107) • Reduce investments in research and development • Protect the business's core products • Focus efforts on the business's product with the highest profit • Implement innovative strategies and ideas

Implement innovative strategies and ideas (correct answer)

Which of the following is a trend in information management: (NF:110) • Decreased competition • Decreased number of electronic documents • Increased number of workers in the office • Increased compliance laws and regulations

Increased compliance laws and regulations (correct answer)

What is one way that the trend towards protecting the environment has a negative effect on many businesses? (NF:013) • Increases costs • Promotes growth • Reduces pollution • Decreases prices

Increases costs (correct answer)

Which activities are likely to increase a firm's profit? (EC:010) • Increasing sales and decreasing expenses • Decreasing supplies and increasing production • Increasing supplies and decreasing production • Decreasing sales and increasing expenses

Increasing sales and decreasing expenses (correct answer)

After a company's training needs are determined, what is the next step in training and development? (HR:410) • Determining what training resources are available • Managing employee performances • Dismissing employees who are not up to standard • Keeping records for personnel files

Managing employee performances (correct answer)

Which of the following demonstrates the interrelationship among primary business activities: (EC:071) • A business changes its goals, so its strategies and tactics change, too. • A new product is introduced, so business advertisements must adjust in response. • A business manager becomes vice president, so his/her department must adjust to the change. • One business activity changes, so the others must adjust in response.

One business activity changes, so the others must adjust in response. (correct answer)

What management function is being described in the following situation: David Thomas, a top-level manager, identifies jobs to be performed, assigns responsibility for them, establishes departments to handle the jobs, and determines how many and which employees mid-level managers will supervise. (SM:001) • Organizing • Directing • Controlling • Planning

Organizing (correct answer)

Which of the following is a disadvantage of private enterprise: (EC:009) • Elimination of poverty • Periods of unemployment • Careful use of resources • Equal distribution of income

Periods of unemployment (correct answer)

Which of the following is an environmental factor that affects the performance of businesses that market products on a global level: (EC:104) • Health coverage • Land formation • Political risk • Storage space

Political risk (correct answer)

Which of the following situations involves finding an alternative resource to use in place of a nonrenewable natural resource: (EC:003) • Generating energy from wind turbines instead of solar panels • Passing legislation to prevent the killing of endangered animals • Searching for oil in new locations such as the ocean floor • Powering a motor vehicle with biodiesel instead of gasoline.

Powering a motor vehicle with biodiesel instead of gasoline. (correct answer)

Which of the following will foster a business's ability to adapt to changing markets: (EC:107) • Proactive management • Authoritarian leadership • Reactive management • Conservative leadership

Proactive management (correct answer)

Which of the following is a marketing activity: (MK:001) • Balancing • Committing • Promoting • Leading

Promoting (correct answer)

Franco's Bread Shop is introducing a new type of sandwich bread to the community this week. Which of the following describes the business activity the bread shop is likely involved in: (EC:071) • Collecting information on last year's new breads • Promoting the new bread through advertising • Planning for the long-term results of introducing new breads • Creating a system for storing new bread recipes

Promoting the new bread through advertising (correct answer)

Which of the following is an example of a business using technology to improve the efficiency of its salespeople: (NF:003) • Offering ATM machines • Accepting debit transactions • Providing laptop computers • Installing video catalogs

Providing laptop computers (correct answer)

According to the marketing concept, which option demonstrates customer orientation? (MK:001) • Convincing a buyer to buy • Finding out what a buyer wants • Advertising the features of a product • Researching a firm's competitors

Researching a firm's competitors (correct answer)

Which of the following is a measure of how well a business generates cash flow: (FI:354) • Capital structure • Return on capital • Accounts receivable • Accounts payable

Return on capital (correct answer)

Which of the following is a way to evaluate supplier performance after the purchased goods or services have been delivered: (OP:015) • Contact the supplier's references • Visit the supplier's plant • Review the invoice • Check the supplier's credentials

Review the invoice (correct answer)

Why is routing an important production activity? (OP:017) • Routing establishes company standards. • Routing establishes a timetable for production. • Routing issues orders for production to start. • Routing establishes the production path of inputs.

Routing establishes the production path of inputs. (correct answer)

Which of the following is an example of nonverbal communication that might have a different meaning to business people in other parts of the world: (EC:045) • Inviting customers to a social function • Preparing an audiovisual presentation • Writing letters in a foreign language • Shaking hands when greeting a customer

Shaking hands when greeting a customer (correct answer)

Which of the following is a situation that might make businesspeople from other countries feel uncomfortable and impact their ability to conduct business: (EC:045) • Calling in advance to schedule appointments • Wearing business-type clothing that is conservative • Offering to take others to lunch or dinner • Standing very close to others during conversations

Standing very close to others during conversations (correct answer)

Which change provides the most time utility for a consumer? (EC:004) • Asking for early delivery of a product • Shopping for a product in the morning • Arriving at a product trade show early • Staying open for business on the weekend

Staying open for business on the weekend (correct answer)

Which of the following is an example of a demographic trend: (NF:015) • Shifting political climates • A concern for fitness and health • The aging of the population • Rising interest rates

The aging of the population (correct answer)

Human resources management is demonstrated in which of the following statements: (EC:071) • The business gives its preferred customers a special discount. • The business acts on new information about a competitor. • The business includes top-level managers in long-term planning. • The business takes care of the responsibilities associated with having employees.

The business takes care of the responsibilities associated with having employees. (correct answer)

Which of the following examples illustrates how environmental factors are interrelated: (NF:015) • The economy affects what competitors are doing. • The economy affects banking institutions. • Low investor confidence heavily impacts financial planners. • New legislation will be written in the future

The economy affects what competitors are doing. (correct answer)

Annika, the purchasing specialist for Dottie's Donut Shop, just located a new, less expensive sugar supplier. Dottie does not plan to lower donut prices. If Annika buys the shop's sugar from this cheaper supplier, what is likely to happen? (OP:015) • The profit margin for donuts will increase. • Donut sales will increase. • Donut sales will decrease. • The profit margin for donuts will decrease.

The profit margin for donuts will increase. (correct answer)

Which of the following situations would most likely indicate the need to adapt to changes in the business environment: (EC:107) • The supply of materials used in manufacturing a product has decreased. • The business has experienced little employee turnover during the past year. • The number of your business's competitors has decreased. • The demand for your product is stable.

The supply of materials used in manufacturing a product has decreased. (correct answer)

Which of the following is a true statement about business ethics and the law: (EC:106) • The two have nothing to do with each other. • The two are not the same thing, but they do overlap. • Everything that is illegal is also unethical. • Everything that is unethical is also illegal

The two are not the same thing, but they do overlap. (correct answer)

Which of the following is a reason that the role of human-resources management is changing: (HR:410) • Employees place a greater emphasis on work over personal lives. • Business costs are going down. • There is greater diversity in the workforce. • The workforce is younger than ever.

There is greater diversity in the workforce. (correct answer)

Why are entrepreneurs important in a private enterprise system? (EC:009) • They use resources inefficiently. • They encourage the development of new products. • They get rid of competition. • They are responsible for deceptive advertising

They encourage the development of new products. (correct answer)

What is one reason why the federal government awards patents to businesses that have invented new products or manufacturing processes? (BL:001) • To protect consumers • To restrict monopolies • To monitor advertising • To encourage research

To encourage research (correct answer)

Private enterprise is based on the idea that everyone is better served when (EC:009) • economic resources are controlled by the government. • individuals are free to set their own goals • government determines where individuals will work. • businesses regularly increase their prices.

individuals are free to set their own goals (correct answer)

A clothing manufacturer checks one pair of pants out of every shipment to ensure the quality of its product. This process is known as quality on (OP:189) • delivery • assurance • inspection • guarantee

inspection (correct answer)

Because operations managers control so much of a business's money, they must focus on (OP:189) • generating publicity. • creating effective advertising campaigns. • hiring the best employees. • keeping costs low.

keeping costs low. (correct answer)

Computer database programs make it easier for businesses to manage (NF:003) • customers' buying habits. • problem-solving skills. • Internet search engines. • large amounts of related data.

large amounts of related data. (correct answer)

ABC Specialty Wear is the only company that has written permission to use a national football team's logo on its sportswear. This is an example of a (BL:003) • limited joint-venture contract. • product trade-name contract. • licensing agreement. • sole proprietorship.

licensing agreement. (correct answer)

Running out of inventory can result in on (OP:189) • higher productivity. • lost sales • more satisfied customers. • higher taxes

lost sales (correct answer)

One reason that some U.S. businesses have moved some of their operations to foreign countries is to (EC:104) • reduce currency fluctuations. • lower their labor costs • meet communication standards. • improve domestic relations.

lower their labor costs. (correct answer)