Warm-Up Review Quiz

Which of the following strategies for reaching global markets allows firms to expand into foreign markets with little or no investment? a. Foreign licensing b. Foreign outsourcing c. Insourcing d. Importing

a. Foreign licensing

________________ is a benefit given to employees that involves working remotely and connecting to the office via phone lines, fax machines, or broadband networks. a. Telecommuting b. Flextime scheduling c. Job sharing d. Hot desking

a. Telecommuting

In the late 1970s, LarceCo, a tea manufacturing company, entered the market of a developing country called Fantesnia. As there was a lack of hard currency in Fantesnia, LarceCo was involved in a barter system. It exchanged its tea-based products for the local vodka of Fantesnia. This scenario illustrates that LarceCo had engaged in _______________________. a. countertrade b. direct investment c. foreign outsourcing d. franchising

a. countertrade

A famous musician sells the copyright of one of his songs to a record company for $2 million. In this scenario, the sale of the copyright of the song exemplifies the sale of a(n) _____. a. intangible asset b. current liability c. tangible asset d. operating liability

a. intangible asset

Betty's job entails detecting problems such as embezzlement, waste, mismanagement, and employee theft at her organization. In this case, Betty is a(n) ________________. a. internal auditor b. government accountant c. forensic auditor d. certified public accountant

a. internal auditor

Grengard Corp., a public relations firm, pays a hefty rent for its office space as it is set up in one of the best commercial areas of London. In the given scenario, the rent paid by the firm for its office space is an example of ________________. a. out-of-pocket costs b. opportunity costs c. incremental costs d. indirect costs

a. out-of-pocket costs

Eula, a company that manufactures soda, offers its latest products at very low prices. Eula's strategy is based on the assumption that more customers will be willing to buy its products if they are offered at lower prices. Eula has adopted this strategy to attract a larger customer base and increase its sales volume even though it will only gain a small profit on each individual sale. In this scenario, Eula has implemented the ___________________ strategy. a. penetration pricing b. loss-leader pricing c. skimming pricing d. high/low pricing

a. penetration pricing

Identify an advantage of telecommuting for employees. a. More influence within the organization b. Fewer office politics and other distractions c. Stronger connection to the company culture d. More fast-track career potential

b. Fewer office politics and other distractions

_____________ involves hiring independent contractors to sell products to their personal network of friends and colleagues and to recruit new salespeople in return for a percentage of their commissions. a. Direct response retailing b. Multilevel marketing c. Online retailing d. Vending

b. Multilevel marketing

Which of the following is a characteristic of limited liability companies (LLCs)? a. They are subject to double taxation. b. They are made to pay an annual franchise tax in many states. c. They are required to produce a larger amount of paperwork than corporations. d. They do not allow foreign investors to serve as owners.

b. They are made to pay an annual franchise tax in many states.

Sigborne Corp., a food and beverage company, commences its budgeting process by requesting the middle managers of the company to collect data from their respective departments and submit a consolidated report stating the needs of their departments. Harold, the manager of the packaging department, overstates the needs of his department. In this scenario, Harold is guilty of ____________________. a. outwrestling b. budgetary slack c. budget maximization d. extortion

b. budgetary slack

The Fed directly stimulates spending by: a. encouraging inflation in the market. b. buying government securities. c. increasing the interest rates. d. limiting the M1 form of money supply.

b. buying government securities.

Ziffcorp, a laptop manufacturing company, is working on a strategy to deliver its laptops to the students of a university before their new term begins. It is evident that Ziffcorp is working on its _________________. a. advertisement strategy b. distribution strategy c. product strategy d. pricing strategy

b. distribution strategy

In the context of open market operations, when inflation is a concern, the Federal Reserve _______________ government securities. a. borrows b. sells c. withholds d. buys

b. sells

Lara is the owner of an event management company. For every project, Lara makes a chart to keep a track of multiple tasks that need to be accomplished simultaneously. From her chart, she finds the sequence of activities that will take the longest to complete. This helps her keep an eye on the project and address any issues that may delay the project. In this scenario, it can be inferred that Lara most likely uses _____ to execute her projects on time. a. rule-based machine learning b. the critical path method c. an expert system d. a business rule engine

b. the critical path method

Jim, the CEO of a management firm, needs to deliver a presentation on work ethics to his employees. He has a thorough knowledge of his employees' educational backgrounds. He uses this knowledge to create a presentation that would convey the message to his employees. In the given scenario, which of the following communication guidelines is Jim following? a. Avoid bias b. Be concise c. Analyze your audience d. Avoid the use of slang

c. Analyze your audience

Which of the following statements is true of people with an external locus of control? a. They validate their own efforts. b. They take complete control of their lives. c. They feel buffeted by the actions of others. d. They are extremely self-reliant.

c. They feel buffeted by the actions of others.

Milora, a clothing company, purchases 50 sewing machines from a company called Quick Sew on credit. Milora is supposed to pay an amount of $76,000 to Quick Sew. This amount is due within a year of the date on the balance sheet. In this scenario, the amount of credit that Milora owes Quick Sew is referred to as Milora's _________________. a. borrowing base b. charge-off c. current liability d. intangible asset

c. current liability

In the context of new product adoption, the process of a new product spreading throughout a market after it is introduced is called _________________. a. integration b. advection c. diffusion d. promulgation

c. diffusion

David works in a small manufacturing firm that makes customized office furniture. He feels it is important to work directly with customers to design high-quality furniture that meets their needs. He believes that doing so would create more value for customers and provide a better relationship between the price of the product and its benefits. In the context of operations management, David most likely focuses on _____________________. a. undifferentiated marketing b. efficiency c. effectiveness d. mass production

c. effectiveness

Clarence, the business development manager at Repotull, an e-commerce site, was offered a job with a better pay in one of Repotull's rival companies. He decided to accept the job offer because of the increase in pay. In the context of human resource planning, this scenario best illustrates _____ at Repotull. a. employee selection b. negative leniency c. employee separation d. halo effect

c. employee separation

Similar to a corporation, all owners of a limited liability company (LLC): a. are exempted from federal and state income taxes. b. are called stockholders. c. have restricted debts. d. have the right to establish the company's mission

c. have restricted debts.

Futures Life Insurance is an insurance company in South Africa. The insurance company uses its large pool of financial capital, which it accumulates by collecting premiums from its policyholders, to purchase corporate stocks of different multinational companies. In this scenario, Futures Life Insurance is a(n) ____________________. a. credit union b. thrift institution c. institutional investor d. private equity firm

c. institutional investor

Love Your Feet Inc., a shoe manufacturing company, tries to acquire a certification from the International Organization for Standardization. It ensures the authorities that it continually improves its environmental performance and implements a systematic approach to setting environmental targets and to achieving those targets. In this scenario, which of the following certifications is Love Your Feet Inc. trying to acquire? a. ISO 9000 b. ISO 22000 c. ISO 13485 d. ISO 14001

d. ISO 14001

________________ means buying products domestically that have been produced or grown in foreign nations. a. Franchising b. Licensing c. Outsourcing d. Importing

d. Importing

Which of the following utilities satisfies wants by smoothly transferring proprietorship of goods and services from seller to buyer? a. Time utility b. Place utility c. Form utility d. Ownership utility

d. Ownership utility

Which of the following is an advantage associated with a sole proprietorship a. Permanence b. Unlimited liability c. Ease of transfer of ownership d. Retention of control

d. Retention of control

Ryron Bank, a private bank, introduced Internet banking facilities for its customers after the government demonetized hundred dollar bills. Customers who were reluctant to use credit cards for their daily purchases were enthusiastic about this new option. In this context, which dimension of the business environment is affected the most? a. The social environment b. The global environment c. The political environment d. The technological environment

d. The technological environment

In the context of balance sheets, assets such as machinery, building, and equipment have a limited useful life, so accountants subtract _____ from the original value of these assets, to reflect the fact that these assets are being used up over time. a. deferred income b. laid-down cost c. bequest value d. accumulated depreciation

d. accumulated depreciation

In the context of the relationship era, leading-edge firms believe that: a. using digital resources to gather customer data can hinder their quality of service. b. seeking new customers is more profitable than cultivating current customers. c. closely focusing on each immediate transaction with a customer is more likely to be profitable than building long-term relationships. d. satisfied customers can promote their business with more speed than promotional campaigns.

d. satisfied customers can promote their business with more speed than promotional campaigns.