BADM

Shayna, a sales representative, is placed in a group with a marketing researcher from marketing, an engineer from operations, a human resource specialist, and a financial manager to develop new uses for one of the company's existing products in order to increase sales. This group is a _______.

cross-functional team

If Hawaii State Bank were to assign two of its bank tellers to business merchants and two others to individual accounts, it would be departmentalizing on the basis of _______.

customer

In the state in which it is incorporated, a business is known as a(n) _______.

domestic corporation

Lionel has been saving money for several years and has contemplated entering a partnership with a friend from college. Lionel hesitates because he knows that it is _______ to invest money in a partnership and _______ to get the money back out.

easy;difficult

An Iowa-based firm crushes materials to make gravel, its only product. The gravel company has _______.

few production processes

The manager of a Subway restaurant is an example of a(n) _______ manager.

first-line

Archie's ATV Parts used _______ to design customized products and control the machinery needed to produce the finished product

flexible manufacturing system (FMS)

A program to implement social responsibility in business begins with _______.

getting the commitment of top managers

Fluctuations in a nation's economy are referred to as its _______.

Business Cycle

Which of the following is not a reason for starting a small business?

Desire for a guaranteed financial return

Which of the following helped spur the mass production of consumer goods?

Ford's assembly line

When an incorporated business operates in multiple states, what is it legally called in all states outside the one in which it is incorporated?

Foreign corporation

Which of the following best illustrates a core competency?

General Motors' labor relations

Green marketers that fail to ensure that their promoted claims are supported by evidence demonstrating a significant environmental benefit may be accused of _______.

Green washing

Taco Chick Nathan decided to open a local franchise of the well-known Taco Chick fast-food restaurant chain. Before he chose to open the franchise store, he tried to weigh all the advantages and disadvantages. He decided, based on his research and understanding, that it would be beneficial to open a local fast-food restaurant franchise. Refer to Taco Chick. Which of the following would be an advantage for Nathan?

Guidance from the franchisor

Which of the following would least likely be considered a consumer product?

High-powered drill press

Kip is preparing a business plan to pitch his great idea to potential investors. His business plan is hundreds of pages long, rambling, and cluttered with details about the features and mission of his new enterprise, its goals, and the reasons that it is the greatest idea ever. He's asked you, as his friend, to review his plan and make some suggestions. Although you have many thoughts on how it could be improved, what is the most important thing he's left out?

How much the new venture will cost

Which of the following is a disadvantage of departmentalization by customer?

I require a larger-than-usual administrative staff

A well-known corporate raider looking for acquisitions visits several of a company's establishments, thoroughly reviews their menus, visually surveys the customers at the establishment, orders food and times how long it takes to arrive, and then, if interested, buys just enough shares of the company's stock to control it. Once she has a controlling interest, she reduces the menu offerings, eliminating dishes that require long preparation time due to complicated recipes or multiple ingredients, eliminates menu items that require a long time to plate due to side dishes, and generally streamlines the operations. When the company's stock price rises due to increased profitability, the raider sells her stock at a profit. When the corporate raider eliminates menu items, what is her goal?

Increase production capacity

Naomi starts a business that sells personal computers. Within the first year she discovers that computer technology becomes outdated very quickly, and she has not been able to sell her products for as much as she thought due to the passage of time. Naomi has mismanaged _______.

Inventory

All the following are material resources for Toyota Motor Corporation except _______.

Money

United States-Mexico-Canada Agreement renegotiated the ______ to address numerous criticisms.

North American Free Trade Agreement

Workers at the pharmaceutical company Moderna are LESS likely to become bored or dissatisfied with their jobs because Moderna practices job _______.

Rotation

Floyd-Taylor Industries, a small manufacturing company in Minnesota, wants to explore commercial opportunities overseas but isn't sure how or where to start the process. Floyd-Taylor Industries should consider seeking assistance from the _______.

SBA's Office of International Trade

What led most directly to increased government involvement with regulating business and its dealings with society? You Answered The Industrial Revolution

The Great Depression

Suppose India is trying to develop its international trade in electronic components, but it lacks the money to be successful. From whom should India seek assistance?

The International Monetary Fund

Darius is in charge of examining the quality of work in process at a furniture factory. Darius's duty is referred to as

inspection

When the McIlhenny Company, located in Louisiana, sells its Tabasco red pepper and other sauces to supermarkets in London, England, the company _______.

is exporting the sauces.

Adam Smith, author of The Wealth of Nations, is widely credited with being the first person to emphasize the power of specialization.

True

During the Great Depression, government became deeply involved in business to stimulate the nation's economy.

True

First-line managers spend most of their time working with and motivating their employees, answering questions, and solving daily problems.

True

Management is the process of coordinating people and other resources.

True

Once they are made aware of a pollution problem, most firms are proactive in addressing it rather than waiting to be cited by the Environmental Protection Agency (EPA).

True

Preferred stockholders receive dividends before dividends are paid to common stockholders.

True

Product extension and refinement are expected results of a firm's research, development, and implementation effort.

True

Social responsibility is good business, but it does cost money.

True

Specialization is meant to increase the efficiency and productivity of industrial workers.

True

The Sarbanes-Oxley Act of 2002 deals with corporate responsibility, conflicts of interest, and corporate accountability.

True

When a manager has few subordinates, a narrow span of management exists.

True

Garrison Home Builders is evaluating the way certain parts of homes are manufactured as drop-in components. It would like to eliminate waste from the building process to increase profits and perhaps improve its sustainability. Garrison Home Builders is seeking to apply _______ to the home building process.

lean manufacturing

Customers expect a firm's products to _______.

be safe, reliable, and reasonably priced.

A newly formed country in Central America has no high tariffs, yet other countries find it difficult to trade with the new country because of its requirements for product labeling, testing, and certifications. The country's requirements would be classified as _______

bureaucratic red tape

Rafael has always wanted to operate his own fast-food restaurant, but he knows that small businesses have a high failure rate. To increase his chances of success, he should consider _______.

buying a franchise of a well-established restaurant

Pride Capital International needs to make risky decisions on a daily basis. Therefore, its managers are likely to _______.

centralize decision making

Distinguishing between positions with direct authority and those that are support positions establishes an organization's _______.

chain of command

Companies such as Mondelez International and Royal Dutch Shell operate on a worldwide scale without ties to any single country. These are examples of _______.

multinational corporations

Which of the following types of managers oversees the development and use of systems that transform resources into goods and services?

operations

Sheldon has been operating his model train business as a sole proprietorship but decides that it is too much work for him to do alone. He does not want to file a lot of government forms but would like to bring in someone to own and manage it with him. Sheldon needs a(n) _______.

partner

When people or organizations foul water, air, or land, whether knowingly or unwittingly, the action is called _______.

pollution

Billie, a DTC grooming products company, is engaged in the process of crafting a set of specifications from which its new shaving product can be produced and marketed directly to consumers through a subscription. This process is called _______.

product design

Penny works for General Dynamics, a defense contractor. She is assigned to a group of employees who work together to solve quality issues the company is facing. Penny participates in a(n) _______.

quality circle

A currency devaluation raises the cost of foreign goods and _______ the cost of domestic goods to foreign firms.

reduces

The right to be heard implies that companies should listen to consumer complaints and _______.

take appropriate action.

To assess whether a country's economic growth is due to a productivity increase, you should examine _______.

the average level of output per worker per hour

When medical researchers found that a high-fiber diet might help reduce one's risk of colon cancer, one producer of fiber cereals suggested in its advertisements that you will not get cancer if you eat a high-fiber cereal. This illustrates _______.

unethical communications

Although they are quite useful, only about _______ of companies have a crisis plan.

66.7

To achieve affirmative action goals and to remedy past discrimination, hiring quotas are required.

False

Trading companies do not take title to products.

False

Which of the following would be viewed as an opportunity in a SWOT analysis?

A favorable change in trade regulations

BiffCo provides tire sales, tire and rim services, and auto maintenance, and it sells auto parts and accessories. It is the most diverse vehicle parts and repair business in Hill Valley, California. The company has 89 employees at its three Hill Valley locations. TRU only sells, installs, and repairs tires and rims—it has four employees. HV Business services vehicles and has three employees. Hill Valley Parts sells auto parts and accessories—it has 12 employees. What is the likelihood that these small businesses are capable of competing against BiffCo?

A number of small firms, each competing in its own particular area and its own particular way, together can mount a significant competitive effect to challenge large firms.

When countries alter their trade policies to include more tariffs, what may be the result?

A trade war

What does double taxation mean?

Companies must pay taxes on their earnings, and then stockholders pay taxes on their dividends.

Sunny Springs, Inc. Gina has worked for Sunny Springs, Inc., for many years and has now been given the opportunity to advance in the company. Her manager is retiring and hopes that Gina will take over for him. However, although Gina is an experienced employee, there are many things that she still needs to learn. Gina has trained many new employees, but she has never held a management position. She needs to have a general understanding of what it takes to be a manager. There are many problems in Gina's department. There are no plans to fall back on in case the current plan fails. Gina also will need to learn how to direct people in such a way that makes them want to do more than they absolutely have to. Gina feels that this is a great opportunity, and she is anxious to learn everything to be a great manager. She knows that if she performs well in this position, she will have the opportunity to move up the corporate ladder. Refer to Sunny Springs, Inc. In the department where Gina works, what types of plans are lacking?

Contingency

When the manager of a large grocery store heard that Walmart might be coming to town, they developed alternative courses of action they could take if their competitive landscape changed. What type of plan did they develop?

Contingency

To achieve affirmative action goals, companies turned to quotas; however, the courts have done which of the following with regard to quotas as a part of affirmative action programs?

Courts have ruled quotas unconstitutional but commended their purpose.

If Priti, a Kohl's store manager, emails questionnaires to customers to get a better idea of their customers' needs as well as their feelings about the service they have received, she is addressing which facet of total quality management (TQM)?

Customer satisfaction.

An executive of a large chain recently spoke to a group of college students about succeeding in the business world. His remarks focused particularly on the importance of fulfilling the purpose of the business organization: to produce and market profitable products needed by society. In so doing, he viewed that shareholders, not society as a whole, invest in a corporation to earn a return on their investment and that a firm is legally obligated to act in shareholders' interests. What concept do the manager's comments reveal?

Economic model of social responsibility

A process layout is used when all products undergo the same operations in the same sequence.

False

Cross-functional teams are seldom used to develop a new product.

False

Managerial decision making involves a four-step process that begins with generating alternatives and ends with selecting an alternative.

False

Most trading companies are involved in manufacturing or owning assets related to manufacturing.

False

Older, larger firms producing and selling various products base departmentalization on function.

False

Revenue tariffs and protective tariffs both have the effect of lowering the price of the product in the importing nations.

False

Small businesses operate only in the service industry, not in manufacturing.

False

NeuroNet Communications Stefan worked for NeuroNet Communications for 20 years. In the time that he worked there, he learned a lot about the company and how it operated. The company met its sales and revenue goals every year. However, most of the employees had similar educational and cultural backgrounds. Stefan believed that the company could do much better if it fostered a culture that promoted many different ideas. Additionally, it seemed to Stefan that the management of NeuroNet Communications was narrowly focused on quarterly and annual revenues. Stefan believed that the most important goal should be to satisfy customers. He believed greater financial success would result from focusing on customers. ​ After a lot of consideration, Stefan decided to open his own business called Global CommNet and hire employees that reflected a more diverse customer base. He was happy to have this opportunity because it was a dream that he had always had. He had always wanted to make his own decisions about what his company would produce and how. The only aspect of the business he was unsure of was pricing, yet he knew this would be important for his ultimate success. Refer to NeuroNet Communications. Stefan recognizes that his success will also contribute to society. This relates best to (the) _______.

Invisible Hand

Raisa and Tahera have purchased a UPS Store franchise. As franchisees, what do they have to supply?

Labor and capital, as well as the operation of the store

LMNO Corporation discovered financial information about its prime competitor which it used to its advantage. LMNO did not obtain the information from any illegal source or through any illegal means. Which of the following disadvantages of the corporate form of business is probably responsible for LMNO's learning of the details of its competitor's financial situation?

Lack of secrecy because of reporting requirements for many corporate activities

Octavia, a geologist, has discovered a new mineral which she named afronium. She believes that it can be used to generate clean energy. The mineral is much like uranium and can be used to create energy without the harmful side effects of radiation. What factors of production will she use to mine the mineral and establish her energy business?

Land and natural resources, labor, capital, and entrepreneurship

G&W, Inc. A year ago, Oscar went to work for G&W, Inc. He has worked in the finance department ever since he started. He noticed that the company was taxed as though it were a partnership. This was something that he found very odd when he first started working for the company, but he later realized it was a fairly common practice. He recognized that this was one of the advantages of this type of company. ​ Although the job was challenging, Oscar was not satisfied. He really wanted to work for a company whose main goal was to provide service to the community, not to make a profit. However, Oscar felt that, considering his present financial situation, he had to continue working for G&W, Inc. A week later, Oscar learned there was going to be a merger between G&W, Inc. and one of its major competitors. Oscar's boss informed him that he would be getting a promotion and a raise. Although he was excited about making more money, he still was not happy. He knew then that he would not be working for the company for long. Refer to G&W, Inc. What type of organization was Oscar considering switching to?

Not-for-profit corporation

Chevron and ExxonMobil are two of the relatively few sellers in the oil- and gas-production industry. Due to the tremendous capital investment required to enter this industry, these companies are insulated significantly from the threat of new competitors and thus have considerable control over their prices. This market situation is referred to as a(n) _______.

Oligopoly

Ram is at the top of their company's organization chart. Which of the following is most likely to be their job title?

President

In Adam Smith's view, which of the following is not the role of government in business?

Regulating business activity

Westinghouse's electronics manufacturing unit employs _______ teams in which the team members are given the authority to make plans for achieving their assigned tasks and performance goals, conduct performance reviews within their own ranks, and take corrective action as needed.

Self-Managed

What industry category accounts for nearly half of all small businesses?

Services

Annie was recently fired from her job as a purchaser for a grocery store. She was told the reason for her dismissal was the routine rotting of large amounts of produce and meat while in the stockroom awaiting sale in the store. Which objective of purchasing did Annie fail to accomplish?

She failed to make sure the materials needed were in the proper amounts.

Sheldon would like to own a model train store and operate it by himself. He has enough money to open it and operate it on his own and elects to do so. What form of business is this?

Sole proprietorship

Which of the following is decided by the board of directors and top managers and is generally aimed at achieving the organization's long-term goals?

Strategic Plans

Gail's company is on the verge of failing. What is an essential step that many experts believe business owners ignore that could help her business succeed?

Talk to customers about what they need and want.

Which leadership style might be best in a crisis, at least for the short term?

Transformational

Kim, Shu, and Celia, who had been friends since high school, have formed a partnership. Their business, Party Divas, takes orders for children's parties and then provides all the decorations to match the party theme, orders food, and contracts for entertainment for the party. Because they were in a hurry to get started and were old friends, they did not put their articles of partnership in writing, but instead relied on mutual trust. To get the business started, Kim contributed $200,000 to the business, Shu contributed $40,000, and Celia contributed $20,000. They discussed how profits and losses would be divided, but never came to a solid conclusion; therefore, Kim thought they would divide them according to the percentage of their contributions, but Shu and Celia thought they would be divided equally. Six months into operating the business, they had a disagreement about whether they should expand their business to include adult and corporate events. Kim wanted to expand, but Shu and Celia wanted to remain focused on children's parties. By the end of the first year, the women were so divided that Shu and Celia decided to quit working with Kim and open their own business. They demanded that the business be sold and their contributions returned to them. Which of the following statements is true about the division of profits and losses?

The division of profits and losses should always be spelled out in the articles of partnership.

Which of the following explains the significance of unlimited liability with regard to sole proprietorships?

There is no legal difference between the debts of the business and the debts of the proprietor.

Beechcraft, Embraer, Bombardier, and Gulfstream are among the eight manufacturers and sellers of business jets. Because the production of jets requires a sizeable investment, it is difficult to enter this market and these sellers are quite large. Which of the following best describes the market in which these companies operate?

These businesses operate in an oligopoly.

Max owns a fast-food restaurant that he operates for a profit. While Max was working in the business one afternoon, an individual entered and identified himself as an inspector and asked permission to inspect the premises to ensure that they were in good, clean, and sanitary condition. Although the inspector was not from any government agency, Max permitted him to conduct the inspection. What is the most likely explanation for Max's actions?

This is a franchise, and the franchisor has sent its inspector to ensure the business is operated according to the franchise license.

Which of the following is an example of a mission statement?

To organize the world's information and make it universally accessible and useful

An unfavorable trade balance is called a(n) _______.

Trade Deficit

G&W, Inc. A year ago, Oscar went to work for G&W, Inc. He has worked in the finance department ever since he started. He noticed that the company was taxed as though it were a partnership. This was something that he found very odd when he first started working for the company, but he later realized it was a fairly common practice. He recognized that this was one of the advantages of this type of company. ​ Although the job was challenging, Oscar was not satisfied. He really wanted to work for a company whose main goal was to provide service to the community, not to make a profit. However, Oscar felt that, considering his present financial situation, he had to continue working for G&W, Inc. A week later, Oscar learned there was going to be a merger between G&W, Inc. and one of its major competitors. Oscar's boss informed him that he would be getting a promotion and a raise. Although he was excited about making more money, he still was not happy. He knew then that he would not be working for the company for long. Refer to G&W, Inc. Which of these characteristics does not apply to this type of corporation?

Unlimited number of stockholders

The following statement answers which major question that a business plan should address? "This business will serve more than 200 customers by the end of the year and employ seven full-time employees."

What are the goals for the business?

Henry decides to start his own business designing websites for other businesses. Henry's business would be classified as a _______.

service business

Services differ from manufactured goods in all of the following ways except _______.

services can be stored, and manufactured goods cannot be stored

Terrell is thinking about starting his own business but has some concerns, especially about staying on the right side of the IRS. He turns to his uncle Malcolm, a successful entrepreneur. Malcolm tells him that as long as he uses dedicated software such as QuickBooks for Small Businesses to record all the business's sales, expenses, and tax payments, Terrell will be fine. Malcolm obviously feels that _______ is a significant advantage of being a small business.

simplified record keeping