BUS 101 Final
Approximately what percent of all U.S. businesses employ 20 or fewer people? -89 percent -69 percent -49 percent -29 percent -19 percent
-89 percent
Why are lenders most willing to loan to corporations? -Continuity and legal status are assured. -Links with owners and founders are established. -Professional management teams can be changed. -Commitment to expansion is readily available. -Brand and marketing strategies can be diversified.
-Continuity and legal status are assured.
According to SBA estimates, what percent of all new businesses can expect to survive for at least four years? 14 percent 24 percent 44 percent 64 percent 84 percent
44 percent
The U.S. Department of Commerce considers a business "small" if it has fewer than how many employees? 10 50 100 500 1,500
500
Today, what percent of all businesses in the United States are registered as sole proprietors? 94 percent 74 percent 54 percent 28 percent 10 percent
74 percent
A software development company is designing an evaluation plan for its software programmers. The company feels that changes are necessary because it lacks the facts it needs to distinguish outstanding software programmers from those that are only average, or worse. Previously, the company paid software programmers a flat salary and based evaluations on supervisors' opinions. Now, however, the company is considering the following measures for its software programmers: Measurement Strategy Alpha: Software programmers will be evaluated based on the total number of lines of code that they produce. Measurement Strategy Beta: Software programmers will be evaluated based on their ability to produce computer code that is free of errors. Measurement Strategy Gamma: Software programmers will be evaluated based on the market success of the products they produce. Which of the following, if true, would weaken the argument that the company should use Measurement Strategy Alpha? Software programmers usually have no direct contact with customers and do not determine product specifications. The programming languages used by the company require fewer lines of code to perform a function than the programming languages used by other companies. Any software programmer can choose to increase the number of lines of code it takes to perform any function. An effective software programming team is essential for the financial success of the company. Many of the current software programmers would not receive strong evaluations if the company used Measurement Strategy Alpha.
Any software programmer can choose to increase the number of lines of code it takes to perform any function.
Kohler makes and markets familiar kitchen and bathroom fixtures. But Kohler also offers a breadth of other products and services, including furniture, tile and stone, and even small engines and backup power systems. It also owns resorts and spas. Kohler ties this diverse product portfolio together under the mission of "contributing to a higher level of gracious living for those who are touched by our products and services." Kohler's overall objective is to build profitable customer relationships by developing efficient yet beautiful products that embrace the "essence of gracious living." If Kohler became known as a provider of products and services that embrace the "essence of gracious living," which of the following would be the MOST likely result? Kohler would feel pressure to expand its business to include a wider range of products and services. Customers who had a positive experience with some of Kohler's products would be more interested in trying other Kohler products. Kohler's divisions would be more likely to create their own individual mission statements. Sales of higher-priced goods and services would increase less than sales of lower-priced goods and services. Kohler's customers would be more likely to focus on price and less likely to focus on customer service
Customers who had a positive experience with some of Kohler's products would be more interested in trying other Kohler products.
An entrepreneur, Christina Rossini, is planning to open a small chain of 4 to 6 pizza stores under the brand name "Redenda Pizza." The name comes from combining the first names of the entrepreneur's grandparents. Christina wants to have a competitive advantage by offering innovative and distinct specialty pizzas and by offering the freshest ingredients. However, she is concerned that without proper planning, her venture will not be successful. Answers to which of the following questions would be LEAST relevant to determining whether Christina has located a good opportunity in starting Redenda Pizza? -Are there other pizza restaurants in the immediate vicinity of the planned location? -Is the business of other pizza restaurants in the city growing? -Does the planned location of the restaurant have competitive rent? -Will Redenda Pizza offer unique ingredients in its food offerings? -Would Christina bring unique talents and ideas to a restaurant business?
Does the planned location of the restaurant have competitive rent?
Which of the following statements is the MOST accurate? Effective managers lead for stability, whereas visionary leaders lead for change. Effective leaders lead for stability, whereas visionary managers lead for change. Visionary managers lead for stability, whereas effective leaders lead for change. Strategic leaders lead for stability, whereas transforming leaders lead for change. Strategic managers lead for stability, whereas transforming managers lead for change.
Effective managers lead for stability, whereas visionary leaders lead for change.
Which of the following is a scheduling tool that breaks down large projects into steps to be performed and specifies the time required to perform each one? Myers graphic critical path chart Gantt chart process analysis graph master schedule
Gantt chart
Which of the following is TRUE about corporate culture? It can direct employees' efforts toward goals. It is usually determined by outside forces. It cannot be changed. It is easy to change. It rarely affects newcomers in an organization.
It can direct employees' efforts toward goals
Clean Sweep Corporation is a consumer goods company manufacturing home-care cleaning products. Sales of Sparkle, its flagship disinfectant, and some of its other cleaning products, have been sluggish during the last two quarters. Of late, retailers have also shown a lack of confidence in these product lines. The management is looking at different ways to improve the efficiency of its entire supply chain. Some senior executives believe that the company should shift to a just-in-time logistics system. However, this opinion does not have unanimous support. A senior executive claims that a move to a "just-in-time" logistics system would be a mistake because even if the system is effective at reducing inventory and handling costs, the change would not be noticed by customers. The executive claims that the change should be rejected as it runs counter to Clean Sweep's goal of being "customer-focused." Which of the following is the BEST criticism of the senior executive's position? It does not prove that focusing on the customer helps an organization become successful. It does not suggest an improvement to Clean Sweep's current system. It fails to recognize that having a more efficient supply chain will allow Clean Sweep to offer more value to its customers. It does not establish that the costs of switching to the new system would outweigh any cost-reduction benefits the system might provide. It does not describe the inventory systems used by Clean Sweep's competitors.
It fails to recognize that having a more efficient supply chain will allow Clean Sweep to offer more value to its customers.
Decisions about what to buy and what to sell in the United States are determined primarily by which of the following? Market price Laws of supply and demand Demand curve. Projected business profit
Laws of supply and demand
Plants Galore is a business selling a range of indoor plants. In the past there has been a problem with plants being stolen by staff. Which of the following represents the biggest limitation in reference checks as a reliable way of assessing the value of prospective employees? Reference checks are illegal in a number of states. Reference checks obtained from previous employers are out of date. Some previous employers may no longer be in business. Some reference checks can be time consuming. Reference checks tend to only tap positive recommendations.
Reference checks tend to only tap positive recommendations.
Which of the following helps entrepreneurs gain skills that are essential for running a business? ESOP SBICs SEC LLC SBA
SBA
An entrepreneur, Christina Rossini, is planning to open a small chain of 4 to 6 pizza stores under the brand name "Redenda Pizza." The name comes from combining the first names of the entrepreneur's grandparents. Christina wants to have a competitive advantage by offering innovative and distinct specialty pizzas and by offering the freshest ingredients. However, she is concerned that without proper planning, her venture will not be successful. Which of the following, if true, would strengthen the case that Christina has a good opportunity in opening a new pizza restaurant? There are many existing pizza restaurants in Christina's city. The pizza business in Christina's city has remained largely unchanged for many years. Restaurant consumers in Christina's city mostly frequent Mexican restaurants. Pizza restaurants require several experienced employees to be successful. Pizza restaurants can be found in almost any town in the United States.
The pizza business in Christina's city has remained largely unchanged for many years.
Which of the following BEST describes the effects of leadership neutralizers in an organization? They tend to make leader behavior ineffective. They tend to make leaders more charismatic. They tend to outweigh the need for leader behavior. They tend to make managers become effective leaders. They tend to make leaders more neutral toward employees.
They tend to make leader behavior ineffective
Which of the following is a convenience service? a limousine ride from the restaurant to senior prom catering for a wedding reception a haircut at one of Great Clips' 3,000 quick-service salons a hotel room next door to the convention you're attending the daily newspaper
a haircut at one of Great Clips' 3,000 quick-service salons
Profits are an indicator of which of the following? a. A business' success b. The level of competition c. The amount of capital investment d. The owner's commitment
a. A business' success
Which of the following is the determining factor of a country's economic system? a. Political leaders b. Popular vote c. Members of the G-10 d. The International Monetary Fund (IMF)
a. Political leaders
In a pure monopoly, price of a product is determined by which of the following? a. Regulatory body b. Consumer Price Index (CPI) c. Referendum to the voters d. Alternative product pricing strategy
a. Regulatory body
Which of the following refers to the total quantity and quality of goods and services that can be purchased with the currency used in a country's economic system? a. Standard of living b. Purchasing power c. GDP per capita d. Gross National Product (GNP)
a. Standard of living
Why has climate change become a major issue for both business and government? a. The change in climate patters affects the entire planet. b. The effects are confined to national boundaries. c. The solutions to the problems are unanimous. d. The body of scientific evidence is inconclusive.
a. The change in climate patters affects the entire planet.
Which of the following has NOT been identifies as a basic consumer right? a. a right to low prices b. a right to be heard c. a right to safe products d. a right to choose what they buy
a. a right to low prices
What must every corporation do in maintaining and reporting its financial status? a. conform to generally accepted accounting principles b. aim to maximize predicted profit margins c. purchase stocks on margin d. use creative accounting practices
a. conform to generally accepted accounting principles
What are beliefs about what is right and wrong or good and bad called? a. ethics b. laws c. motivators d. rules
a. ethics
Which of the following occurs when someone uses confidential information to gain from the purchase or sale of stocks? a. insider trading b. a guarantee c. a margin purchase d. identity theft
a. insider trading
Which of the following is NOT an element of green marketing? a. profitability b. sustainability c. production processes d. package reduction
a. profitability
If the cost of materials increases, which of the following should the business consider as a result? a.Analyze all costs and determine whether there is a way to reduce other production costs and offset the increase in materials. b.Meet with competitors and encourage them to raise prices to reflect the increased cost of materials. c. Determine what the competitor is doing and adjust your price accordingly. d. Immediately raise the price of the product to reflect increased costs.
a.Analyze all costs and determine whether there is a way to reduce other production costs and offset the increase in materials.
Which of the following BEST describes a mission? an objective that a business hopes and plans to achieve a broad set of organizational plans for implementing decisions made for achieving organizational goals the shared experiences, stories, beliefs, and norms that characterize an organization an organization's statement of how it will achieve its purpose in the environment in which it conducts business an organization's competitive standing in the marketplace
an organization's statement of how it will achieve its purpose in the environment in which it conducts business
Which of the following does a global marketplace present? a. Tax loopholes to be exploited. b. Business opportunities c. Few competitive risks. d. A safe haven for financiers.
b. Business opportunities
Which of the following is a factor of production? a. Trade Agreements b. Capital c. Exchange rates d. Competitive environment
b. Capital
Which statement about codes of ethics is FALSE? a. Codes of ethics are determined by company managers. b. Fewer and fewer companies are adopting codes of ethics. c. Some ethical responses can be learned through experience. d.Social responsibility involves providing quality products and pricing products fairly.
b. Fewer and fewer companies are adopting codes of ethics.
Jordan is a recent college graduate with a degree in computer programming. He has just begun his first full-time job and is excited to apply the skills that he worked so hard to acquire. Though he excelled as a student, Jordan is anxious about how successful he will be as an employee. When an opportunity unexpectedly presents itself to take credit for a brilliant software program that someone else wrote, Jordan does not resist and claims the program as his own. Which of the following statements must be true about Jordan's decision? a. It will strengthen his professional skills. b. It raises questions about his personal ethics. c. It was made with careful thought. d. It does not reveal anything about his beliefs or character.
b. It raises questions about his personal ethics.
Which of the following defines the U.S. economic system? a. Planned economy b. Mixed market economy c. Market economy d. Socialism economy
b. Mixed market economy
Which of the following economic systems has the greatest government control? a. Market economy b. Planned economy c. Mixed market economy d. Privatization
b. Planned economy
What act was passed in 2002 as a response to a number of highly publicized accounting scandals? a. Securities and Exchange Act b. Sarbanes-Oxley Act c. Dodd-Frank Act d. McCain-Feingold Act
b. Sarbanes-Oxley Act
The Omega Group's mission statement conveys a primary commitment to compassionately improving the lives of elderly citizens. What is LEAST likely to be true of the company's ethical code? a. The company values the well-being of others. b. The company expects and requires elderly citizens to contribute to society. c. The company prohibits age discrimination when hiring employees. d. The company believes that all people have worth.
b. The company expects and requires elderly citizens to contribute to society.
Which of the following would NOT be included among the primary agents of interest with regard to a company's ethical behavior? a. customers b. bloggers c. unions d. stockholders
b. bloggers
What is the term for an activity that may benefit the individual to the detriment of his or her employer? a. proactive stance b. conflict of interest c. agency dispute d. ethical standard
b. conflict of interest
What is the term given to the groups, individuals, and organizations that are directly affected by the practices of an organization? a. primary agents of interest b. organizational stakeholders c. senior managers d. social auditors
b. organizational stakeholders
What term refers to the way in which a business tries to balance its commitments to group and individuals in its social environment? a. business ethics b. social responsibility c. corporatization d. stakeholder consciousness
b. social responsibility
If the GDP in the US increases, which of the following will result? a. Employment levels will remain flat. b. Employment levels will increase. c. Unemployment rates will increase. d. Wages will increase.
b.Employment levels will increase
What is a social audit? a. a program to promote consumer activism b.an analysis of a firm's success in using funds earmarked for meeting its social responsibility goals c.an examination of a company's financial records to determine their conformance with GAAP d. a check on consumer rights
b.an analysis of a firm's success in using funds earmarked for meeting its social responsibility goals
Which plan refers to compensation other than wages and salaries and other incentive pay offered by a firm to its workers? profit-sharing gainsharing benefits pay-for-knowledge variable
benefits
What is the name of the document in which an entrepreneur summarizes his or her business strategy for a proposed new venture? success chart director's guideline financial blueprint business plan balance sheet
business plan
A husband and wife have just opened a gymnastics center, with the hope of training future Olympians. They desire to run their center in a socially responsible way. Which of the following should they certainly avoid? a. advertising methods intended to profit the center b. provision of attractive salaries for employees c. purchase of substandard gym equipment d. doubling of enrollment fees for the program
c. purchase of substandard gym equipment
Each of the following is a benefit of business, EXCEPT which one? a. Business enhances the income of owners. b. Business creates jobs. c. Business improves the quality of education. d. Businesses produce goods and services.
c. Business improves the quality of education.
Which of the following should be the first step in assessing ethical behavior in a certain situation? a. Seek the advice of managers. b. Gather a range of opinions on the effectiveness of the policy. c. Collect facts related to the situation. d. Make a judgment based on the outcome of the activity.
c. Collect facts related to the situation.
Which of the following best defines the term "economic system"? a. How a country determines currency b. A system for creating trade agreements c. The system for allocating resources d. The system for determining interest rates
c. The system for allocating resources
What is the term for an employee who detects and tries to put an end to a company's unethical, illegal, and/or socially irresponsible actions by publicizing them? a. corporate lookout b. government inspector c. whistle-blower d. fast-track manager
c. whistle-blower
Carla's Collegiate Exchange, a popular bookseller among university students, has just drafted its mission statement. the company seeks to sell books on a sliding scale based on a student's available income. What does this MOST likely reveal about the company's ethical code? a. The company is not concerned with fostering the success of others. b.The company believes that poor individuals should be given a greater chance at success that wealthy individuals. c.The company believes financially challenged students should not be hindered from succeeding educationally. d. The company is most motivated by a desire for greater profits.
c.The company believes financially challenged students should not be hindered from succeeding educationally.
Which of the following is the amount of a product that a company can produce under normal working conditions? capacity output efficiency burden performance
capacity
What name is given to the process by which a company analyzes another company's product to identify desirable improvements in its own product? quality reliability analysis benchmarking performance quality analysis competitive product analysis quality outsourcing
competitive product analysis
The sameness of product quality from unit to unit is referred to by which term? utility reliability performance consistency quality control
consistency
What is the main reason why women start new businesses? need to earn more money preference for working alone opportunities for family members control in organizing their time desire to employ other women
control in organizing their time
Machine, woodworking, and dry cleaning shops typically use which type of layout? product custom-products same-steps hybrid make-to-stock
custom-products
Which of the following best describes an entrepreneur? a. A business owner b. The owner of a profitable business c. A person who lacks vision d. A person who embraces risks and opportunities
d. A person who embraces risks and opportunities
What is likely the single MOST effective step that a company can take to set ethical standards? a. Post Ethical Rules on bulletin boards. b. Offer large cash awards for whistle-blowing. c. Suggest that employees take ethics training. d. Demonstrate support from top management.
d. Demonstrate support from top management.
Each of the following is an element of private enterprise, EXCEPT which one? a. Profits b. Competition c. Private property rights d. Government regulations
d. Government regulations
If a company believes the business sector is saturated with competitors, which of the following should it consider? a. Relocation of the business b. A buy-out or acquisition of some of the competition c. Create a price war with the competition d. Product differentiation
d. Product differentiation
If a business wants to maintain growth in a maturing industry, which of the following should be considered? a. Purchasing new equipment b. Reducing the workforce c. Moving operations offshore d. Product diversification
d. Product diversification
As gasoline prices increase, which of the following will happen? a. Demand will increase. b. Demand will drop significantly. c. Supply will be reduced. d. Supply will increase.
d. Supply will increase.
The main purpose of business is to provide ____________________. . a healthy work environment b. educational assistance programs c. community service d. goods and services
d. goods and services
In which of the following ways does a service provider differ from a goods producer? a. Services are easier to produce. b. Services don't need to be branded. c. Services do not have customers. d. services are produced and consumed simultaneously.
d. services are produced and consumed simultaneously.
Which of the following is the name for choosing one alternative from among several options? decision making assessment evaluation discernment arbitration
decision making
What type of skills requires defining problems and selecting the best course of action to take? human relations skills production skills conceptual skills decision-making skills technical skills
decision-making skills
Which operations capability has FedEx given greatest credit for winning orders (business) in the marketplace? quality low cost flexibility dependability accessibility
dependability
Recent corporate scandals at firms like Enron have brought increased attention to what area of leadership? virtual leadership ethical leadership strategic leadership employee-focused leadership charismatic leadership
ethical leadership
What are specific locations of Ramada, McDonald's, and Subway examples of? government entities university sponsored businesses franchises networking businesses cooperatives
franchises
Which of the following is a partner who actively manages a firm and has unlimited liability for its debts? limited partner general partner stockholding partner public partner silent partner
general partner
Performance refers to which of the following? the principle that quality belongs to each person who creates it while performing a job the consistency of product quality from unit to unit how well the product does what it is supposed to do the process by which a company analyzes a competitor's products to identify desirable improvement providing value by making products available when customers want them
how well the product does what it is supposed to do
Managers at Adidas had a hunch that their sponsorship deal with the Yankees would be a good one. Their feelings were based on what concept? escalation of commitment risk propensity intuition perception rational decision making
intuition
What is the process of dealing with employees who are represented by a union? labor relations human resource management negotiation arbitration contingency recruitment
labor relations
The check-processing operations at your bank would be considered to be which type of system? high-contact low-contact dynamic synthetic performance
low-contact
Which of the following factors MOST contributes to small business failure? managerial incompetence or inexperience bad product design legal problems time spent raising capital personnel issues
managerial incompetence or inexperience
Which business constituents analyze their competitive environments and plan, organize, direct, and control the operations of their organizations? stockholders managers regulators agents customers
managers
Which of the following occurs when two firms combine to create a new company? acquisition takeover venture divestiture merger
merger
Which of these is one of the "big five" personality traits? openness logic creativity organization musical talent
openness
Which term refers to all the activities involved in making products-goods and services-for customers? operations processes planning scheduling performance
operations
Which would an employee who is productive but refuses to help others or the organization be lacking in? organizational citizenship workplace aggression performance behavior personal productivity self-esteem
organizational citizenship
Which term refers to the strategy of paying suppliers and distributors to perform certain business processes or to provide needed materials or services? outsourcing reengineering controlling scheduling warehousing
outsourcing
What type of business has two or more owners who share in the operation of the firm and are financially responsible for its debts? -corporation -partnership -cooperative -conglomerate -nonprofit
partnership
What does turnover refer to? people quitting their jobs managers reprimanding staff employers cutting down costs employees calling in sick benefits being improved
people quitting their jobs
Which term refers to how well a product does what it is supposed to do? capacity consistency reliability performance quality control
performance
Fletcher is meeting with each of his subordinates to discuss their performance over the past year. What process is he involved in? job description labor negotiations vestibule assessment performance appraisal financial remuneration
performance appraisal
What is the term for behavior that is related to doing a certain job? performance behavior interpersonal behavior disruptive behavior potential behavior assertive behavior
performance behavior
Which of the following is considered the starting point of effective human resource management external staffing recruitment planning financing compensation
planning
What type of company has stock that is widely held and available for sale to the general public? -private corporation -public corporation -general partnership -limited liability corporation -professional corporation
public corporation
Which term refers to collaborative groups of employees from various work areas who meet regularly to define, analyze, and solve common production problems? quality improvement teams quality assurance teams quality control teams quality evaluation teams quality review teams
quality improvement teams
What is the major drawback of accepting venture capital? sharing company control having to pay high interest rates limiting expansion facing a short repayment period having to write a proposal
sharing company control
Which term refers to the flow of information, materials, and services from raw-materials suppliers through stages in the operations process until the product reaches the end customer? distribution chain supply chain service channel distribution channel performance channel
supply chain
When Dell Inc. shares information to improve the overall flow through a system composed of companies working together, it is engaging in which of the following? distribution chain management total quality management supply chain management service channel analysis supplier selection analysis
supply chain management
What is the Hawthorne effect? -the belief that employees are motivated by money alone -the conclusion that workers are more productive if management pays attention to them -the determination that the level of lighting in a workplace has no effect on productivity -the theory that workers are more productive if their jobs are analyzed closely -the unspoken agreement between the employee and the employer
the conclusion that workers are more productive if management pays attention to them
Which of the following BEST describes quality ownership? an emphasis on intangible factors in customer satisfaction the consistency of a product's quality from unit to unit the sum of all activities involved in getting high-quality products into the marketplace the process by which a company analyzes a competitor's products to identify desirable improvements the principle that quality belongs to each person who creates it while performing a job
the principle that quality belongs to each person who creates it while performing a job
Which of the following BEST describes business process reengineering? the redesigning of business activities to improve performance, quality, and productivity a program certifying that a factory, laboratory, or office has met the quality management standards of the International Organization for Standardization the principle of looking at the supply chain as a whole in order to improve the overall flow through the system a program certifying that a factory, laboratory, or office has developed pollution-control standards the process by which a company analyzes a different company's products to identify desirable improvements
the redesigning of business activities to improve performance, quality, and productivity
Consistency refers to which of the following? the principle that quality belongs to each person who creates it while performing a job the sameness of product quality from unit to unit the sum of all activities involved in getting high-quality products into the marketplace the process by which a company analyzes a competitor's products to identify desirable improvements providing value by making products available where customers want them
the sameness of product quality from unit to unit
Entrepreneurs often have more than one goal for starting a business and becoming self-employed. Which of the following reasons is the LEAST common goal of entrepreneurs? -to seek independence and be their own boss -to earn a comfortable living for a period of time -to grow and expand a current business -to meet community or social obligations -to provide for their financial needs
to meet community or social obligations
Which term describes services that cannot be produced ahead of time? transformed low-contact unstorable intangible consistent
unstorable
What is the MOST effective way for an entrepreneur to become a competent manager? working alone relying on luck getting a college degree being open to opportunities working for a successful company first
working for a successful company first
