Business

_____ is a permanent organization structure that combines functional and product departmentalization.

A matrix structure

_____ is the gap between what is and what is desired, and _____ is the gap between what is and what is required.

A want; a need

There are two types of expenses recorded on the income statement. They are:

cost of goods sold and operating expenses

A team made up of employees from about the same hierarchical level, but different functional areas of an organization is called a:

cross-functional team

Specialization refers to the:

degree to which tasks are subdivided into smaller groups

A(n) _____ is an internal Web site that provides proprietary corporate information to a defined user group.

enterprise portal

The Securities Investor Protection Corporation (SIPC):

insures the accounts of customers of brokerage firms for up to $500,000 against a firm failure

A code of ethics:

is accurately described by all of the above

The ______ refers to the levels of management within the organization. These levels usually conform to the shape of a pyramid.

managerial hierarchy

An organization's _____ is its general purpose or reason for existence.

mission

Which of the following benefits do unions almost never stress in an organizing campaign?

more job satisfaction

According to Herzberg, hygiene factors are:

potential job dissatisfiers

When Top-Flite introduced its Strata golf balls with a new design for better flight with hit by metal clubs, it charged three times the price of golf balls currently on the market. This high introductory pricing is an example of:

price skimming

Division of labor refers to:

the process to dividing work into separate jobs

A small company that trains executives on how to act when working in Japan had $70,000 worth of inventory on January 1, 2018, and it had $50,000 worth of inventory on December 31, 2018. If its cost of services provided for that period was $30,000, and its net profit was $90,000, what was its inventory to turnover ratio?

2 times

Which of the following statements about computer networks is true?

A computer network is a group of two or more computers linked together by communications channels to share data and information.

Hannah Li wants to quit her job as a legal secretary and start her own small business. She knows that she will be successful if she can find the right idea. Where can Li look for ideas for her new business?

All of the above

Which of the following is NOT one of the four functions of management?

Budgeting

Motivation and maintenance factors are essential parts of a job-satisfier theory formulated by:

Frederick Herzberg

The father of scientific management was:

Frederick Taylor

_____ is the process of guiding the development, maintenance, and allocation of resources needed to attain organizational goals.

Management

_____ is anything (regardless of form) that is acceptable as payment for goods and services.

Money

_____ is something that prompts an individual to release his or her energy in a certain direction.

Motivation

The _____ system is the first electronic-based stock market and the largest over-the-counter market.

NASDAQ

Which of the following statements about preferred stock is true?

Preferred stockholders are paid dividends before the company can pay any dividends to common stockholders.

_____ are independent accountants who serve organizations and individuals on a fee basis.

Public accountants

Which of the following statements about social responsibility is true?

The obligation that a business has to act socially responsible extends beyond the investors in the company to include workers, suppliers, consumers, and communities.

When nurses at Children's Memorial Medical Center were asked what makes a great place to work. They responded with, "Great places to work have leaders that listen to staff feedback and act upon it. At great places to work, staff value developing their job expertise, actively support teamwork, are passionate about providing quality service, and are not afraid to take risks and try innovative approaches. Mutual respect is the interpersonal chemistry that produces a collegial environment that inspires excellence at great places to work." From this information, it appears that the nurses would also appreciate a _____ approach to management.

Theory Y

Wes Johnston overheard his manager say, "Work is as natural as play, and workers seek more job responsibility." This statement supports:

Theory Y assumptions

Which of the following statements about Theory Z style of management is true?

Theory Z contains many elements from Japanese management.

_____ are groups of employees who share resources and coordinate efforts so as to help members better perform their individual duties and responsibilities. The performance of this group can be evaluated by adding up the contributions of the individual group members.

Work groups

A well-written business plan should contain:

all of the above

In 1993, Purdue Pharmaceuticals of Stamford, Conn. applied for the first in a series of patents on Oxycontin, a painkiller. The U.S. Patent and Trademark Office (PTO) granted those patents based on the manufacturer's contention that the drug contained a novel innovation: It had been engineered so that only a very small dose was required for the drug to be effective for 90 percent of patients. Seven years later, a generic drug maker, Endo Pharmaceuticals, applied to the FDA for permission to sell its own, lower-priced version of Oxycontin. Purdue's patents acted as a(n) _____ and prevented Endo from entering the market.

barrier to entry

Which of the following is an example of a capital product that would be found in a brewery?

bottling machine

Dalrymple Bay Coal Terminal, a coal-handling facility and export terminal in Queensland, Australia, has issued triple-A rated bonds for $680 million in Australian dollars. The bonds will be used to refinance existing bank debt caused by the acquisition of eases from the Queensland government in 2002. The Commonwealth Bank of Australia acted as investment bankers to the transaction. This means the Commonwealth Bank of Australia:

bought the bonds from Dalrymple and sold them to the public

When Gene O'Hare went online to plan his vacation to Australia, he learned that he could buy plane tickets, rent a car, and pay for a hotel in a reduced-price tourist package, which made it very convenient for him to book his trip. The Web site O'Hare visited used _____ to make trip planning easier and more economical.

bundling

Finance companies that make loans to promising new businesses with little track record and to firms that are unable to get any more bank credit are _____ finance companies.

commercial

Albee Construction Company, a financially strong corporation that builds roads and bridges, finances its equipment leases by issuing unsecured short-term debt, which is called:

commercial paper

A network of Bennetton retail sales agents select the Bennetton designs that they feel will appeal to Bennetton retail customers. The responsibility for picking the next "hot style" is in the hands of this group. This is an example of a _____ structure.

committee

A structure in which authority and responsibility are held by a group of workers rather than a single manager is called a _____ structure.

committee

As a promotional tool, podcasting offers the advantage to listeners of:

convenience

Which of the following is NOT one of the main activities for a human resource manager?

coordinating marketing and production activities

The founder and current CEO of Whole Foods Markets wears cut-off jeans to work. He is a vegetarian, an outspoken proponent of green marketing, and a person who believes in eating organic foods. His views and beliefs have shaped the _____ of the supermarket chain, and all employees are expected to agree with these tenets.

corporate culture

The Chubb Group, an insurance company, regularly supplies funds for programming on the public television network. Its donations are an example of:

corporate philanthropy

The goal of cellular manufacturing is to:

create a team environment

A _____ is a nonprofit, member-owned financial cooperative.

credit union

Which of the following financial institutions is a not-for-profit institution?

credit union

Which of the following is an example of a depository financial institution?

credit union

A large furniture and appliance rental business is considering sponsorship options. It has brought together vice-presidents from the various functional areas of the company to determine which sponsorships will most effectively reach the rental company's prospective customers. The rental company has established a:

cross-functional team

American Express is organized into four divisions that cater to businesses, consumers, travelers, and investors. American Express uses _____ departmentalization.

customer

The governor of New York that he has directed the state's Division of Criminal Justice Services to gather DNA from the broadest range of convicted criminals permitted under current law. This will result in the collection of as many as 40,000 DNA profiles. The additional DNA profiles may be obtained as a condition of release on parole or probation, as a condition of participation in the Department of Correctional Services' temporary release programs, and as a condition of a plea bargain. This _____ will be used for solving crimes.

database

The governor of New York that he has directed the state's Division of Criminal Justice Services to gather DNA from the broadest range of convicted criminals permitted under current law. This will result in the collection of as many as 40,000 DNA profiles. The additional DNA profiles may be obtained as a condition of release on parole or probation, as a condition of participation in the Department of Correctional Services' temporary release programs, and as a condition of a plea bargain. A(n) _____ will be used to store, maintain, and acquire data from these records.

database management system

A retail manager who wants to know how his store's sales would be affected if he reduces the number of different national brands the store carries would use what type of information system?

decision support system

Work group cohesiveness can benefit the organization by doing all of the following EXCEPT:

decreased resistance to change

Which of the following is NOT an example of a promotional goal?

delivering the product

The two types of inflation are:

demand-pull and cost-push

In the process of financial intermediation, households, businesses, and governments can all be are categorized as:

demanders of funds

The management activity of organizing.

determines, groups, and assigns work activities

One of the three basic functions performed by the Equal Employment Opportunity Commission is:

developing diversity management plans

Leon Georges works in the warehouse for a manufacturer of air-purification systems. He is responsible for the transportation of metal components, preformed plastic, etc. used to manufacture the systems as well as the efficient movement of the finished systems from the manufacturing facility to the warehouse to distribution trucks. Georges is involved in:

distribution

When the producers of Ocean Spray cranberry products decided to make Craisins (a dried cranberry snack food) available in convenience stores, supermarkets, and vending machines, it was involved with determining _____ strategy.

distribution

In 1914, the United States prohibited the importation of Mexican avocados even though Mexico is the world's largest producer of the fruit. This prohibition remained in effect until 1996. The ban on importing Mexican avocados is an example of a(n):

embargo

In employee selection, the initial screening consists of two stages. They are the:

employment application form and the preliminary interview

The three major categories of applications supplied by application service providers are:

enterprise applications, collaborative applications, and applications for personal use

Jon P. Farmer is the founder of Kolopua Hawaii LLC, a company that markets Pure Hawaiian Air. Bottles of Pure Hawaiian Air contain air that smells like the floral bouquet that greets tourists as they get off the plane in Hawaii. Retailing for about $5 apiece, the bottles are sold at gift shops in Hawaii, as well as to travel agents nationwide who give them to clients. As a(n) _____, Farmer's annual income exceeds $100,000 annually.

entrepreneur

Navim Jain sold stock to investors in order to finance Sparkart, LLC, a company that markets software to track how many times music is played and shared among peers. Jain used _____ financing.

equity

When Ted Giovanni was preparing for his trip to Brazil, he found that he could go to his bank and trade his 10 U.S. dollars for 37.11 Brazilian real (the nation's currency). In this instance, the _____ was one U.S. dollar to 3.711 Brazilian real.

exchange rate

Spring Airlines is a small budget airline that is based in China. The company has a strict rule against passengers bringing any food or beverage on board with them. In a country where meal time is extremely important, this has caused some passengers to slap, throttle, and insult stewardesses who tried to enforce this rule. The tenacity with which the company's employees enforce this ruling is based on how the employees predict customers will react to the news. This is an application of the _____ theory.

expectancy

Medical diagnostic equipment specialist Georgiana Rutland was asked to attend a medical conference in which the attendees discussed new uses for laser technology in diagnosing certain types of cancer. Rutland exerted considerable influence over the decisions to adopt the laser technology because of her _____ power.

expert

When the government raises taxes on consumers and businesses, it is dealing with _____ policy.

fiscal

Cellular manufacturing combines aspects of both:

fixed position and assembly-line layouts

Currency markets operate under a system called _____. This means that prices of currencies vary based upon demand and supply of that currency.

floating exchange rate

Nations sometimes form free-trade associations and establish areas where there are few, if any, export and import duties or other regulations that would act as barriers to trade among partners. These are called:

free trade zones

Which of the following is a type of sales promotion that can be used if the organization's goal is to increase brand loyalty?

frequent-buyer programs

Hugh Larrimore, Wilson Knight, and Frieda Perez have worked together for twelve years. They always clock in and clock out together. If one of the threesome happens to be late, the others will wait for him or her. This commonly accepted behavior for this informal group is called a(n):

group norm

In 2000, Eric Baker and Jeff Fluhr came up with a concept that would do away with scalping if they had their wish, and everyone used StubHub.com. The Internet company brings people who want tickets and people who have tickets that they are not using together. The company has assisted in the sale of tens of millions dollars worth of tickets annually and is always trying to sell more. It charges a small fee for its assistance. Baker and Fluhr would be classified as:

growth-oriented entrepreneur

Leadership is:

guiding others to achieve specific goals

International Association of Food Industry Suppliers has completed its _____ merger with the Food Processing Machinery Association. The action represents a coming together of equals in which both boards and staffs are committed to creating a new association that is stronger and better equipped to serve its members' growing needs to more effectively compete in their marketplaces.

horizontal

Gord Larose and his friend David Allan worked in Ottawa at Nortel Networks, a giant telecommunications-equipment maker. One Friday afternoon, over a few beers in Larose's kitchen, they dreamed up a scheme for renting software over the Internet. Instead of quitting their jobs, they reported to work on Monday, explained their plan to their boss, and began working to make their idea a reality. Four years later, their idea has evolved into an important division of Nortel called Channelware. Larose and Allan are examples of:

intrapreneurs

An apprenticeship:

is accurately described by all of the above!!! is a form of on-the-job training also involves classroom training is commonly found in the skilled trades of plumbing and electrical work can last as long as four years

Venture capital:

is financing obtained from investment firms that specialize in financing small, high-growth companies

The Japanese inventory system that minimizes inventory costs and provides those inputs as they are needed for a particular production run is called the ______ system.

just-in-time

One of the disadvantages of the matrix structure is:

lack of cohesiveness

The relatively consistent pattern of behavior that characterizes a leader is called his or her _____ style.

leadership

Mazda once included a solar powered ventilation system on its cars. A solar panel on the roof powered a pair of fans near the trunk, which automatically turned on when the temperature in the car reached 90 degrees. Because customers were not willing to pay for this benefit and did not complain when it was no longer available, Mazda discontinued it. This is an example of:

lean manufacturing

Miniature Precision Corporation, a microprocessor manufacturer, recently acquired Cameron-Price, a plastics mold manufacturer. Miniature Precision financed the transaction with 90 percent borrowed money and used Cameron-Price's assets as collateral. This type of merger is commonly known as a(n):

leveraged buyout

Gerald Cooksie owns a restaurant in Panama Beach, Florida. He has arranged a business loan with the bank where he has his business account. The terms of the loan allow him to borrow up to $13,500 within the next year if the bank has funds available to lend; he must pay interest only on the unpaid loan balance. Cooksie has arranged a:

line of credit

The ratios that are of special interest to the firm's creditors and measure the firm's ability to pay short-term debts as they come due are called _____ ratios.

liquidity

A _____ union is a branch union that represents a specified area or even a specific plant.

local

A network that connects computers at one site is called a(n):

local area network

The craft store marked skeins of embroidery thread down to a quarter apiece to attract more customers into the store. This was below the store's cost. The skeins of thread was intended to be a _____ to increase store traffic:

loss leader

The implementation of a contractionary policy by the Federal Reserve would result in:

lower inflation

Thrift institutions were formed specifically to encourage household savings and to:

make home mortgage loans

After product specifications are set, a company must decide whether to purchase or manufacture the parts that it needs. This is called a(n) _____ decision.

make-or-buy

Both Kennedy and LaGuardia Airports have established airport management committees. These structures are advantageous because it:

makes the coordination of activities much easier

The managerial hierarchy is also called the:

management pyramid

A system that collects and stores the company's key data and produces the information needed by managers for analysis, control, and decision making is called a(n):

management support system

In _____, goods are produced using mass production techniques up to a point. Then production is custom tailored to the needs or desires of individual customers.

mass customization

There is a facility in California that takes off-the-shelf Ford Mustangs and hones them into high-performance vehicles. The assembly line at this facility is simply a line of cars on hand-pushed carts that are moved from station to station, but many of the operations that are typically performed in an assembly plant do take place here. Using this system the company has turned out over 8,000 vehicles, more than any other American specialty vehicle manufacturer. This is an example of:

mass customization

Spalding produces large numbers of golf balls all at once. Spalding puts the golf balls in inventory and distributes them around the world. Spalding uses:

mass production

Pharmacie & Upjohn, a pharmaceutical company, uses a functional structure (research, development, manufacturing, and marketing) within each of its three largest major product divisions. This company is an example of a:

matrix structure

The standard of living in any country is:

measured by the output of goods and services people can buy with the money they have

The channels through which advertising is carried to prospective customers are advertising:

media

The typical problem-solving team:

meets on a regular basis to share information and discuss ways to improve processes

When Allison Logue found out her children were allergic to corn, she started looking for sweets and starches that were corn-free and was dismayed to find very few such products on the market. As a result, she has started her own small business to produce and market corn-free desserts. It is a small market, and Logue plans to keep her business small. Logue is an example of a(n):

micropreneur

Many classic entrepreneurs are _____ who start small and plan to keep their business small.

micropreneurs

Plant manager Peter Kwillen receives the master budget from divisional headquarters and breaks it down for the three shift managers. He coordinates with other plant managers and manages lower-level managers. Kwillen is a(n) _____ manager.

middle

A _____ is a formal written statement that describes in detail the idea for a new business and how it will be carried out.

mission statement

Any object or objects that a group of people use to buy and sell goods and services is called:

money

In a large metropolitan market, it is relatively easy to set up a law office. The ease of entry explains why you will find hundreds of lawyers listed in the New York City phone book. Each lawyer is a close substitute for another but with slight differences. Which of the following market structures best describes the one in which lawyers operate?

monopolistic competition

Think about all the restaurants that are located near your campus. You have probably noted some new ones appearing, and others closing because of lack of business. What type of competition exists in the restaurant business?

monopolistic competition

The Art Institute, a school for training artists to be financially self-sufficient, has a debt-to-equity ratio of 120 percent. This means the school has:

more debt than equity

A bank chartered by the Comptroller of Currency, a branch of the U.S. Treasury Department, is called a _____ bank.

national

A(n) _____ is a union that consists of many local unions in a particular industry, skilled trade, or geographic area and thus represents workers throughout an entire country.

national union

After all expenses have been subtracted from revenues on an income statement, the final figure or bottom line is called the _____ when it is a positive number.

net profit

Shenshen Zhongxing Telecom (ZTE) is a Chinese company that is the only telecommunications company in China that produces and markets an inexpensive camera phone to sell to middle class Chinese living in urban areas. Because ZTE targets a single segment within a limited geographical area, it can be said to have a(n):

niche competitive advantage

A(n) _____ is a picture of the relationships among tasks and those employees given authority to do those tasks.

organization chart

One of the primary goals of Burberry, a British retailer, is to expand its market. When the company allocated resources so that it could open two stores in Japan, it was engaged in which management function?

organizing

Spring Airlines is a start-up business in China. It uses the management function of ____ to arrange that the three airplanes it operates are where they are supposed to be when they are supposed to be and have the appropriate number of operating personnel.

organizing

The Austrian-company Wienerberger is the world's largest brickmaker. It had to use the management function of _____ when it integrated the employees and manufacturing facilities that it gained from a merger with a brickmaking company in Great Britain.

organizing

Beyond all the publicity around a recent government audit about the lack of oversight by the Federal Aviation Administration (FAA) is another problem that has not received much publicity. Quality control is not being maintained when an airline engages a contractor to work on an engine, who in turn signs up a subcontractor to work on one part of the engine. This example represents a problem with:

outsourcing

In a typical set-up, American companies will employ Chinese firms to enter handwritten cards into electronic databases, but the English skills of the Chinese can only take them so far with sloppy American handwriting. Then the Chinese (or sometimes the American companies) hire Lakota Express, a company that uses Native Americans who live on a reservation in South Dakota to pick up the slack and to vet the often imperfect work. What kind of work does Lakota Express do?

outsourcing

The U.S. Pentagon offers childcare for its employees. It pays Aramark to provide its employees with this service. The Pentagon uses _____ to care for its employees' children.

outsourcing

Which of the following is NOT one of the six steps in the accounting cycle?

paying accounts payable

Dividends are:

payments to the shareholders from company earnings

The Library is a new bar in town. Unlike the other bars in town, it charges no cover charge. The new bar has also priced its beer at $3 less per pitcher than its competition. Given what you know about pricing strategies, which pricing strategy is the owner of the new bar using?

penetration pricing

Ethan Djuna is a territorial salesperson for Lennox heating and air conditioning systems. Every six months Djuna's sales manager gives him feedback by showing Djuna a comparison between his actual sales figures and his sales objectives. This feedback is called a _____ appraisal.

performance

Like many other companies, Robert Mondavi Winery uses _____ to systematically compare the actual performance of each employee with his or her expected performance.

performance appraisals

A face-to-face sales presentation of a good or service to a prospective customer is called:

personal selling

Which of the following is an example of an individual factor that influences the consumer decision-making process?

personality

A common use of business plans is to:

persuade lenders and investors to finance the venture

Bart Pietz works as a paramedic. Because he has just worked a plane crash and has been 20 hours without rest, he is extremely sleepy. Pietz needs to satisfy his _____ need.

physiological

When union members carry signs and march near the entrance of their employer to publicize their view of the dispute and discourage customers, they are engaging in:

picketing

Management involves:

planning, organizing, leading, controlling=all of the above

There are a lot of talented people. Many singers who have not been discovered are as talented or more so than some of the best-known musical artists. For instance, pricing a musical act at $20,000 when a small community arts center can get just as great an entertainment experience for its audience for $5,000 is an example of:

prestige pricing

Gambrinus is a large company that owns and operates the breweries that produce Moosehead Lager, Bridgeport Ale, Pete's Wicked Ale, Corona beer, Trumer Pilsner, and Shiner Bock. Each brewery is run as an independent division and each produces a malt liquor that appeals to a different market. This is an example of departmentalization by:

product

The Cooke family has worked for various General Motors's divisions for over four decades. Bennett Cooke works at the Cadillac division. Rondella Cooke works at the Buick division. Their son Tyrone works at the Corvette plant, and their daughter Niome works at the Saturn plant. The Cooke family could tell you that GM is departmentalized by:

product

Vegetarians have the upper hand in Mumbai, India, where not eating meat is a centuries-old tradition. In a booming Indian economy, the vegetarians are outnumbering the meat-eaters in many metropolitan areas. In response to this growing vegetarianism (especially among the middle class), franchises like Pizza Hut have created 100 percent vegetarian menus. By eliminating all meat from pizzas, the Indian Pizza Huts have engaged in a _____ strategy.

product

In August 2006, the manufacturer of Cross pens introduced the golden toned Verve pen as featured in the Stormbreaker film. In James Bond fashion, the Cross pen serves as one of the key gadgets in the film. The use of the Cross pen is an example of:

product placement

The three main types of facility layouts are:

product, process, and fixed-position

Reisner, Inc., is a small company that manufacturers egg cartons. It has a sales force of fifteen who sell all over the U.S. Last year the company exceeded its predicted sales by almost $25,000. Forty percent of these added sales were divided equally among Reisner's salespeople. Reisner used a(n) _____ to reward its salespeople.

profit sharing plan

Which of the following is NOT one of the key characteristics required in order for money to be an acceptable medium of exchange?

profitability

Compassion International is a nonprofit organization dedicated to releasing poor children from spiritual, economic, social and physical poverty. What would be the most likely goal for an advertising campaign for this international organization?

provide information

Which one of the following is a commonly used method for market segmentation?

psychographic geographic benefit volume (all of the above)

Pricing a product at $399.99 instead of $400 to make the customer view the price as in the $300 range instead of the $400 range is an example of:

psychological pricing

Any communication or activity designed to win goodwill or prestige for a company or person is called:

public relations

An S corporation is generally set up to:

reduce tax burdens

One of the advantages of work group cohesiveness is:

reduced employee turnover

Hassan Nasrallah, the leader of Hizbullah: grew up very poor but very smart, and although he wears the robes of a minor Shiite cleric, he is a world-class politician. He has been called the most charismatic figure in the Muslim world. Nasrallah exerts _____ power over his followers.

referent

Customer satisfaction:

refers to the customer's feeling that a product has met or exceeded expectations

Federal Reserve banks must hold a certain portion of their deposits in reserve. This percentage is called the:

reserve requirement

Which of the following terms equals the total profits of a company minus all dividends (distributions of profits) to stockholders?

retained earnings

Manila Water, the provider of the water and sewerage services in the capital of the Philippines has purchased the government owned water and sewerage system for the entire country. It promises to make the nation's water and sewerage system run as efficiently and profitably as the one it operates in Manila. Its primary challenge will be to convince the 2,000 employees it inherited from the government-owned facility to work more efficiently. Manila Water sought to boost employee morale by linking pay to performance. In other words, management has used its _____ power to improve employee productivity.

reward

According to Maslow, people need to feel secure, to be protected from physical harm, and to avoid the unexpected. These needs are called _____ needs.

safety

An employee who was more worried about having a safe work environment and a financially sound pension plan than anything else would be most concerned with which of the needs in Maslow's hierarchy of needs?

safety needs

Of all forms of business ownership, corporations account for the largest share of both:

sales and profits

Items that groups of people use as money must be _____ to be acceptable mediums of exchange.

scarce, divisible, portable, and durable

Drew Pastrin bought an AZPX brand skateboard because all of the "other guys" were buying them. Pastrin was influenced by a(n) _____ factor.

social

Alonzo Dwork will not buy stock in a company that sells bottled water because more than 1.5 million barrels of oil are used annually to make the plastic bottles used for water, and nearly 90 percent of these bottles are disposed of after one use. Dwork is a strong believer in environmental protectionism, and this _____ is his way of expressing that belief.

social investing

On an automotive assembly line, Naif Marrot checks to make sure that recently painted car bodies are free of paint bubbles. Other people are assigned the task of seeing that other parts of the car are built to specifications. The task of building an automobile has been subdivided into a series of subtasks. The concepts of _____ have been employed in this situation.

specialization and division of labor

The laborers displaced due to assembly line automation at the textile plant may not have the skills needed to operate the computerized machines that replaced them. This is an example of _____ unemployment.

structural

Most firms have three distinguishable levels of management. They are:

supervisory, middle, and top

In general, when a business is engaged in environmental scanning, it looks at all of the following external forces that might affect it EXCEPT:

suppliers

One of the problems unions are experiencing today is the reluctance of autoworkers in southeastern United States to join unions. In a few instances, when the Auto Workers Union (AUW) gathered enough employee signatures to call for a union certification election, the employees have voted against unionization. Who conducted this election?

the National Labor Relations Board

According to expectancy theory, the probability of an individual acting a particular way depends on the strength of the individual's belief that:

the act will have a particular outcome and on whether the individual values that outcome

Hershey's hot cocoa mix combines dry milk, whey, corn syrup, processed cocoa, aspartame, and artificial flavorings and colors. This conversion process is an example of:

the assembly process

The most fundamental reason for the growth in world trade is probably due to:

the need for businesses to expand their markets

On a statement of cash flows for a manufacturer of digital thermometers, the cash flows from investment activities section would include:

the sale of land adjacent to the manufacturer's administrative office building

The GDP of Poland in 2006 was approximately $512 billion. This $512 billion represents:

the total value of all final goods and services produced in Poland during 2006

All of the following are characteristics of an entrepreneurial personality EXCEPT:

the willingness to be a follower rather than a leader

Money market deposit accounts and certificates of deposit are officially called ______ deposits.

time

Hal Silverstein has a savings account, also called a _____, at his local credit union.

time deposit

The three basic levels of the managerial hierarchy are:

top, middle, and supervisory

When Magna Manufacturing sells hand on screwdriver sets to Malloy Building Supply Company, Magna bills the tool manufacturer for the screwdriver purchase with terms of payment, which specify when the account is due. This type of unsecured loan is called _____ credit.

trade

Which type of information system is used only by operational managers?

transaction processing system

A(n) _____ is a type of loan often used to finance buildup of inventory for seasonal (cyclical) businesses just before their strongest sales period.

unsecured bank loan

Mamma's Diner was a small restaurant that was a popular hangout for many Bedford College students, but because of the owner's inability to make the bathroom stalls handicapped accessible for the one wheel-chair student on campus, it was forced to close down. The belief that this it was morally wrong to deprive the majority of the people of this experience is an expression of the philosophy associated with:

utilitarianism

Assume the net profit for manufacturer of mountain bikes was $1,000,000 last year. The firm paid out $40,000 in dividends and has 200,000 shares of common stock outstanding. Its earnings per share (EPS) was:

$5

Which of the following statements about knowledge management is true?

-Knowledge management involves collecting, processing, and condensing information. -While companies have the ability to manage knowledge, most cannot manage information. -Knowledge management is more easily accomplished than information management. -Knowledge management is the same as information management. -(None of these statements about knowledge management is true.)

Which of the following statements describes an advantage that personal selling has over other forms of promotion?

-Personal selling costs can be adjusted by controlling the size of the sales force. -(All of the above statements describe how personal selling is superior to other forms of promotion.) -Personal selling can be directed only to qualified prospects. -The sales message can be varied according to the motivations and interests of each prospect. -Personal selling is considerably more effective at creating a satisfied customer than other forms of promotion.

Companies that use blogs in their promotions use them because they:

-can have a dialogue with their clients and prospects -(do all of these) -get real-time input from customers and prospects -create and maintain relationships -can focus on specific marketing goals

Manufacturers' representatives usually:

-do not take title to goods -(do all of the above) -represent noncompeting manufacturers -act as independent agents -receive commissions on sales

Insurance policyholders make premium payments to buy financial protection. Insurance companies invest the premiums in:

-real estate -stocks -(all of the above) -business loans -bonds

Long-term debt would be used to:

-replace broken glass in a window -pay employees' salaries -buy new tablecloths for a restaurant -(do none of the above) -provide customer with a cash discount

When bank examiners conclude that a bank has serious financial problems, the FDIC can:

-require the bank to use new management practices or replace its managers. -lend money to the bank. -(do any of the above) -provide the bank with extra equity capital. -recommend that the bank merge with a stronger bank

Public relations departments:

-write speeches for corporate officers -encourage employees to take active roles in community organizations -(do all of these) -write press releases -furnish company speakers for business and civic clubs

Assume a company has inventory valued at $50,000, its total current assets, including this inventory, total $90,000. Its total current liabilities total $20,000. Its quick ratio is:

2

_____ is the gap between what is and what is required.

A need

_____ ratios reflect the speed with which resources are converted to cash or sales.

Activity

_____ is any paid form of nonpersonal presentation by an identified sponsor.

Advertising

Which of the following statements about ethics training is true?

All of the above statements about ethics training are true.

What are the benefits associated with free trade and globalization?

An open economy that spurs innovation

_____ is the settling of a labor-management dispute by having a third party make a binding decision.

Arbitration

CMI International, a composite plastic manufacturer, wants to improve its involvement with the community, so it has established a Community Involvement Office. To fill the positions within this office, the company will attempt to find and attract qualified applicants from the external labor market. This process is called:

recruitment

Which of the following is an example of an asset that might be owned by a minor league baseball team?

reputation as a winning team

When bank examiners conclude that a bank has serious financial problems, the FDIC can:

require the bank to use new management practices or replace its managers

In finance, the opportunity for profit is called:

return

A manufacturing company in which industrial engineers have maximized efficiency by determining the best way to perform every task from tightening a bolt to operating a forklift would be illustrative of:

scientific management

The first step to incorporating a company is to:

select the company's name

A _____ strategy is a union strategy of conducting a strike at a critical plant that supplies parts to other plants.

selective strike

Many rock and roll fans believe that Jimi Hendrix was the best guitarist ever and that he stretched his ability to the utmost. According to Maslow's theory of need, Hendrix more than likely satisfied his _____ need.

self-actualization

When Maslow wrote, "A musician must make music, an artist must paint, a poet must write, if he is to be at peace with himself. What a man can be, he must be," he was more than likely referring to man's:

self-actualization needs

Many organizations that experienced success using problem-solving teams expanded the team concept to allow team members to have greater responsibility in making decisions, implementing solutions, and monitoring outcomes. These highly autonomous groups are called:

self-managed work teams

Inventory management performs all of the following tasks EXCEPT:

selling

The cost of inventory to the firm includes all of the following EXCEPT:

selling costs

U.S. Steel has established an alcoholic rehabilitation program for the city of Pittsburgh. The company provides the facilities and the personnel to operate the program. U.S. Steel is practicing:

social responsibility

Wal-Mart has announced that it will only sell fresh and frozen fish that come from environmentally sound sources and bear the label of the Marine Stewardship Council. Wal-Mart's size gives it a unique opportunity to improve the fishing industry. This concern for _____ is one of many initiatives Wal-Mart is introducing to improve our environment.

social responsibility

Which of the following is NOT a characteristic of an intermittent process?

standardized products

A(n) _____ is a summary of the money flowing into and out of a firm.

statement of cash flows

Payments in the form of more stock to existing stockholders are called:

stock dividends

Accounting involves the _____ of the financial activities for firms.

summarizing

Dean Jager is in charge of the volunteer staff at the Booth Western Art Museum. He makes the work assignments, determines work schedules, and makes sure the museum uses all of its volunteer staff efficiently. Jager is a _____ manager.

supervisory

The lowest level of management, which usually has the most people to manage, is called _____ management.

supervisory

Which of the following is the BEST example of a not-for-profit business?

the American Cancer Society

Who provides the start-up financing for the majority of new small businesses?

the business owner and his or her family and friends

The quality of life is:

the general level of human happiness based on such things as life expectancy, educational standards, health, sanitation, and leisure time

In 2005, more than two-thirds of population of Haiti were not working, but were actively seeking employment. This 66.67 percent represents the nation's:

unemployment rate

A country that imports more goods than it exports is said to have a(n):

unfavorable balance of trade

Howard Cho has been hired by Greenwood Enterprises to work on an assembly line in its small engine division. He understands that he will be on probation for 30 days and then must join the union. Cho Enterprise has a(n)_____ shop.

union

When a union gets a sufficient number of authorization cards, it can ask the National Labor Relations Board for a:

union certification election

A term that means that business damages and/or debts can also be attached to the personal assets of the owners is ______ liability.

unlimited

Criticism of South Africa's post-apartheid government contends that the new government has not extended liberties to its black majority population, but has instead concentrated on proving to a white minority that a black-run administration can govern a reasonably sophisticated economy and society. The belief that the new South African government is behaving unethically is an expression of the philosophy associated with:

utilitarianism

The merger of McKesson, the leading U.S. drug wholesaler, and HBOC, a producer of health-care inventory software, is an example of a(n) _____ merger.

vertical

To keep pace with changing technology, officers of the Honolulu Police Department (HPD) needed a better means to perform such tasks as running a license plate number while simultaneously sending back field reports to precinct headquarters. Through the use of a _____, officers were able to use the Internet to connect with the information stored in state databases and to connect with their superiors.

virtual private networks

The categories of heavy, moderate, and light users have to do with which type of segmentation?

volume

A network that connects computers at different sites via telecommunications media is called a(n):

wide area network

Frederick Taylor's scientific management emphasized:

work efficiency

According to the Hawthorne effect,:

workers respond to being paid attention to

Recruitment may involve all of the following EXCEPT:

writing job descriptions

____ is the action that people take in buying and using goods and services.

Buyer behavior

Which of the following is NOT an example of a basic question that departmental managers and IT specialists should ask when planning technology purchases?

Can current employees learn to use new technology?

_____ is a production technique that uses small, self-contained work stations and has each perform all or most of the tasks necessary to complete a manufacturing order.

Cellular manufacturing

Which of the following statements about the committee structure is true?

Committees can be slow to reach a decision.

_____ stock is a security that represents an ownership interest in a corporation and has voting rights.

Common

Which of the following statements about employee compensation is true?

Compensation is closely connected to performance appraisal.

_____ is a method of attempting to settle labor disputes in when a specialist from the federal government helps management and the union focus on the issues and acts as a communication channel through which management and the union can send messages and share information with each other.

Conciliation

_____ refers to the core values and beliefs that support the mission and the business model of the firm and guide employee behavior.

Corporate culture

_____ is the practice of charitable giving by corporations; includes contributing cash, donating equipment and products, and supporting the volunteers' efforts of company employees.

Corporate philanthropy

_____ are specific repayment conditions as to how long customers have to pay bills and the amount of cash discount allowed.

Credit terms

_____ is the set of values, ideas, attitudes, and symbols created to shape human behavior.

Culture

_____ financing is a form of business financing consisting of borrowed funds that must be repaid with interest over a stated time period.

Debt

_____ is the quantity of a good or service that people are willing to buy at various prices.

Demand

How do distribution channels improve product distribution?

Distribution channels reduce the number of transactions needed to get the product from the manufacturer to the consumer

_____ is the process of dividing the work and assigning tasks to workers.

Division of labor

Which of the following statements about the employee selection process is true?

During the initial job screening, the applicant usually completes an application form and has a brief interview of 30 minutes or less.

How does an executive information system (EIS) differ from a decision support system (DSS)?

EIS is customized for an individual executive, and DSS is not.

The _____, created by the 1964 Civil Rights Act, investigates and resolves charges of discrimination.

Equal Employment Opportunity Commission

_____ is the set of moral standards for judging whether something is right or wrong.

Ethics

Which federal agency is responsible for processing and clearing checks between financial institutions?

Federal Reserve

_____ allows people with PCs or other types of machines connected to the Internet to donate processor cycles to the search for extraterrestrial life. This process involves sifting through the static of deep space on billions of radio channels looking for stray signals that are generated by alien civilizations.

Grid computing

The sporting goods store sold $75,000 worth of merchandise in June. The retailer gave no discounts and had no returns. Which of the following statements accurately describes the information seen on the company's income statement?

Gross sales equal net sales.

_____ is the degree to which group members want to stay in the group and tend to resist outside influences.

Group cohesiveness

Which of the following statements describes one the strengths of group decision making?

Group decision making results in a higher-quality decision then individual decision making.

Which of the following statements about HR demand forecasting is true?

HR demand forecasting is an internal labor supply forecast.

_____ is at the core of most business failures.

Inadequate planning

Which of the following is NOT one of the five key types of power?

Influential

_____ are investment professionals who are paid to manage other people's money.

Institutional investors

_____ are entrepreneurs who apply their creativity, vision, and risk taking within a large corporation rather than starting a company of their own. They enjoy a high degree of autonomy while receiving a regular salary and financial backing from their employer.

Intrapreneurs

How has the Sarbanes-Oxley Act affected accountants?

It has eliminated many nonauditing tasks they use to provide for their customers.

Which of the following statements about knowledge management is true?

Knowledge management focuses on gathering and sharing an organization's collective knowledge to improve productivity and foster innovation.

_____ are corporate takeovers financed by large amounts of borrowed money.

Leveraged buyouts

Which of the following is NOT an advantage associated with matrix structures?

Managers can build large, permanent teams of specialists.

Why do many people fear trade and globalization?

Many fear trade and globalization will lead to massive job losses.

_____ is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.

Marketing

Penny Clovis works as a maintenance supervisor for a large hotel. She is new in her position and the first woman to ever hold this position for this hotel chain. Clovis has become increasingly concerned about negative statements she has overheard like, "Well, Penny's promotion should get the affirmative action people off our back for awhile." According to the definition, does Clovis have a grievance?

NO. She does not have a grievance because there is no contract violation here.

_____ are bills that have accumulated and must be paid at a specified future date within the year although no bill has been received by the firm.

Notes receivable

Two co-workers at Nortel came up with an idea for renting software over the Internet. Nortel's top management liked the idea and set up a special division called Channelware devoted to taking the idea and making a new product. The establishment of a new company and assigning the employees in the division the task of making an idea a reality requires which management function?

Organizing

_____ involves coordinating and allocating a firm's resources so that the firm can carry out its plans and achieve its goals.

Organizing

_____ provides new employees with information about company policies, salary and benefits, and parking. It also includes work rules and performance expectations.

Orientation

The _____ Act protects the retirement income of employees and retirees.

Pension Reform

Which of the following statements about preferred stock is true?

Preferred stock produces a fixed-amount dividend.

_____ is the act of informing, persuading, and reminding the target market about a product.

Promotion

When Tyree Elliott was hired as a public relations advisor to the CEO of a Fortune 500 company, he welcomed the help he received from Rae Rogers, a senior manager. Rogers was able to show Elliott the places where trouble was likely to occur, the likes and dislikes of the CEO, and how to do the best job possible. Which of the following statements describes what was going on in this situation?

Rogers was assuming the role of a mentor.

_____ are investment certificates that represent either ownership of a corporation or a loan to the corporation.

Securities

_____ is the degree to which tasks are subdivided into smaller jobs.

Specialization

_____ planning is the creation of long-range, comprehensive objectives and the development of long-term courses of action.

Strategic

Which of the following actions would be deemed illegal by the Occupational Safety and Health Act?

The employer let an employee work without a required steel hat.

Which of the following statements about national unions is true?

The number of national unions has steadily declined since the early 20th century.

Which of the following statements about unemployment compensation is true?

Unemployment compensation provides former employees with money for a certain period while they are unemployed.

Which of the following describes the first step in the union organizing process?

Union makes contact with employees.

_____ is a philosophy that focuses on the consequences of an action to determine whether it is right or wrong. This philosophy holds that an action that affects the majority adversely is morally wrong.

Utilitarianism

_____ is financing obtained from investment firms that specialize in financing small, high-growth companies and receive an ownership interest and a voice in management in return for their money.

Venture capital

How does unsolicited and unwanted e-mail pose a security risk to companies?

Viruses spread through e-mail attachments.

_____ are distribution channel members that buy finished products from manufacturers and sell them to retailers.

Wholesalers

_____ is responsible for identifying the Theory Z style of management.

William Ouchi

The original purpose of the _____ was to help build infrastructure in developing countries and to help relief the debt burden of these countries.

World Bank

What is another name for a job fair?

a corporate open house

A good technology plan provides employees with the tools they need to perform their jobs at the highest levels of efficiency. The first step in developing a good technology plan is:

a general needs assessment

Articles of incorporation do NOT include:

a list of all stockholders' names

Which of the following is an example of an intangible asset for a manufacturer of padlocks?

a patent on titanium lock mechanism

What is Six Sigma?

a quality control process

The first step in starting your own business is:

a self-assessment

A process layout is best for a company that has:

a wide variety of products

The difference between small business owners and entrepreneurs is that small business owners:

accept the status quo and take a short-term view of the future

Another name for a stockbroker is a(n):

account executive

Geraldine Fadsi's job in the entertainment industry is to bring together entertainers and organizations looking to hire entertainers. Fadsi is paid a commission, usually by the entertainer. Fadsi is acting as a:

agent

Which of the following is a characteristic of pure competition?

all of the above

Which of the following factors affects an employee's compensation?

all of the above!! the organization's pay structure the level of labor competitiveness in the area wage and salary surveys the firm's financial condition

One of the advantages of the matrix structure is:

all of these

The purchase or sale of U.S. government bonds by the Federal Reserve to stimulate or slow down the economy is called:

an open market operation

In which of the following industries are you most likely to find factoring being used?

appliance industry

Intrapreneurs:

are accurately described by all of the above

Self-managed work teams:

are accurately described by all of the above

Short-term loans:

are shown as a current liability on the balance sheet

The product layout is sometimes called the _____ layout.

assembly-line

The difference between the small business owner and the entrepreneur is that the entrepreneur:

assumes the risk of the business

In order to attract younger customers to the Lacoste brand of clothing, CEO Robert Siegel made all of the major decisions in product planning, distribution, and promotion. He asked for no input from his employees. Siegel used a(n) _____ style to increase Lacoste's sales.

autocratic

Levi Strauss was strongly praised when it announced it was leaving China in 1993 because of the country's poor human rights record. However, China is also an inexpensive place to manufacture clothing, and in spite of its announcement, Levi did not stop making clothing in China. What type of facility location factor was most likely instrumental in Levi deciding to continue operating its facility in China?

availability of production inputs

Which of the following demographic groups is having the greatest impact on the growth of the franchising industry?

baby boomers

The _____ summarizes an organization's financial status at the end of an accounting period.

balance sheet

The Banking Act of 1933 gave the Federal Reserve System the authority to:

ban interest on demand deposits

Collecting data over a period of time and then processing that data all at the same time is called _____ processing.

batch

Which of the following is a consumer durable?

bedroom dresser

Which of the following is a consumer nondurable?

breakfast cereal

A German law that prohibited the use of hops grown outside of the country in the production of German-made beer was overturned in the late 1980s. This law was an example of a(n):

buy-national regulation

The two types of cooperatives are:

buyer and seller

Which of the following is NOT a commonly used method for departmentalizing a firm?

by managerial level

Business products are classified into two categories. Large, expensive items with long life spans are called _____ products, and; smaller, less expensive items with short life spans are called _____ products.

capital; expense

Middle managers usually:

carry out plans and policies of top management

State banks are:

chartered by the state in which they are based

Mark Ghermizian had quit his job and was looking to start a small business so he could be his own boss. When he read that people spend up to fifteen minutes every day staring at a bathroom stall door, he decided he would find advertisers who wanted to pay to have their advertising messages on bathroom stall doors. Since he has his idea, Ghermizian's next step is to:

choose a form of business organization

When Art Baer read that Singapore would lift its ban on chewing gum, he thought to himself, "There has to be a market there." Baer, 26, knew if he was going to move beyond the daydreaming stage, he had to move fast. After investing $20,000 of his own money into developing a product he called Impress Gum, Baer quit his job, flew to Singapore, talked to the right people in the government, lined up a manufacturer, and hired a marketing firm to promote his gum, which fights tooth decay. Baer is an example of a(n) ______ entrepreneur.

classic

When he read Chicken Soup From the Soul, Joe Farmer was struck by how many of the stories mentioned the scent of the islands. So Farmer created bottles filled with Hawaiian air and some scented essence beads. When customers shake the bottles up and open the lids, they're transported back to paradise. While many marketing experts did not think that consumers would buy bottles of air, Farmer has earned more than half a million dollars of sale during his first year of operation. Farmer was an example of a _____ entrepreneur.

classic

What is the salesperson doing when, after his presentation is over, he asks, "May I call the company and place your order for 20 cases of Ecco brand golfing shoes?"

closing the sale

The three most popular types of marketable securities are Treasury bills, certificates of deposit, and:

commercial paper

With ____, when a part is redesigned in the computer-aided design system, the changes are quickly transmitted both to the machines producing the part and to all other departments that need to know about and plan for the change.

computer integrated manufacturing (CIM)

The letters CAD stand for:

computer-aided design

The disadvantages of group cohesiveness include:

conflict with other work groups in the organization

U.S. Lumber Company's purchase of EnviroPlastics, a manufacturer of plastic cutlery, is an example of a _____ merger

conglomerate

Virtual private networks (VPNs):

connect two or more private networks using a public network

Victorinox is the name of the company that manufactures Swiss army knives. As a result of new regulations governing what passengers could carry with them on airplane trips, the company has lost 30 percent of its business. In other companies, this might have led to business failure, but because Victorinox had _____ plans, it was able to continue to operate profitably.

contingency

Jon Schwartz is an electrical engineer. He works as a temporary worker for a contracting company that builds germ-free rooms for university researchers. While he likes the extra income, he would much rather stay home and work on the novel he is writing. His wife earns a six-figure income so money is not an issue. Schwartz is an example of a(n):

contingent worker

Total quality management focuses on:

continuous improvement

The Healing Garden is the manufacturer and marketer of organic beauty aids. Its annual $40,000 donation to The Nature Conservancy in support of the nonprofit organization's pledge to preserve the environment is an example of:

corporate philanthropy

Jack Smith and four other people own Persimmon Hill Farm, an agric-entertainment farm which provides corn mazes, bonfires, hay rides, and food treats to paying visitors. All of the owners have limited financial risk. Persimmon Hill Farm is a(n):

corporation

The ratio of total current assets to current liabilities is called the _____ ratio.

current

As part of her marketing project, Lily Unruh is studying how Marriott operates. Since she thought it was simply a hotel chain, she was amazed to learn that its food divisions provide food for school cafeterias, airlines, hotels, and fast-food restaurants. Marriott's food divisions are departmentalized by:

customer

In 2004, a large department store chain in Germany was forced to withdraw customer loyalty cards when the press discovered that the company had secreted radio-frequency identification (RFID) tags in the plastic. Even when enclosed in a wallet or purse, these cards can transmit information over distances of about a meter, and the stores planned to use them to track which departments the customer visited. All of the customer information gathered was stored in a(n):

data warehouse

A supervisor engaged in ______ is grouping people, tasks, and resources into organizational units to facilitate the planning, leading, and control processes.

departmentalization

Profitability ratios are used to:

determine how efficiently a company is being managed

The idea behind _____ is the need that criminal investigators have for examining evidence on computer hard drives such as in e-mails or databases in order to build cases against embezzlers and others.

digital forensics

According to the text, the three IT trends that are having the greatest impact on the IT environment are:

digital forensics, the distributed workforce, and grid computing

Active ownership of a foreign company, with direct investors having either a controlling or a large minority interest in the firm, is called a(n):

direct foreign investment

Which of the following is an activity performed by the Federal Reserve System as it carries out its monetary policy?

distributing currency

An S corporation:

does not make the owners of the corporation personally liable for its debts

The slope of the demand curve is:

downward and to the right

Staples, the office supply chain, allows its business customers to purchase all of the office supplies they need through the Staples Web site. Businesses that use this service are engaged in:

e-procurement

The Occupational Safety and Health Act requires:

employers to provide a safe and healthful workplace

Jeff Arnold and Reggie Bradford created WebMD, an Internet provider of health care information. During the development of this high-growth company, Arnold and Bradford attracted a group of investors who purchased stock in their company and provided them with ______ financing.

equity

A company can only be concerned about its _____ responsibilities once it has met its economic and legal responsibilities.

ethical

The _____ is the value of one currency in terms of another.

exchange rate

The idea that employees are motivated by their expectations, or estimates of chances for reward, is called the _____ theory.

expectancy

A(n) _____ system is a management support system that uses artificial intelligent to enable computers to reason and learn to solve problems in much the same way as humans do.

expert

Botswana produces diamonds, copper, nickel, soda ash, meat, and textiles, which it sells to the members of the European Union. To Botswana, the diamonds, copper, nickel, soda ash, meat, and textiles it produces are examples of:

export

Inputs, such as natural resources, labor, capital, and entrepreneurship, are known as:

factors of production

Dwain Hutcheson is a recent college graduate who found himself in debt as a result of credit card expenditures and in need of dependable transportation. Hutcheson recently purchased a used motorcycle from Speed Cycles. In financing the cycle, Hutcheson found that he would be making payments to Beneficial Corp., a company that deals in poor credit risks and short-term loans. Hutcheson was dealing with a:

finance company

A bank is engaged in _____ when it accepts the farmer's deposit of $127,000, and then makes a business loan of $50,000 to a small business owner.

financial intermediation

Coca-Cola Enterprises (CCE) is the largest bottler and distributor of Coke products in the world. It is organized around its North America division and its European division. This departmentalization by _____ allows CCE to respond to the demands of different markets.

geography

When Canada Dry first introduced Wink soda in the 1960s, it used the slogan, "Join the cola dropouts." The purpose of this advertising campaign was most likely to:

get customers to try the new product

A preferential tariff:

gives tariff advantages to one country over others

The idea behind _____ is to take the massive amounts of idle capacity sitting on desktops and in server farms and put it to use performing complex calculations that would otherwise have to be done on very large parallel supercomputers that would cost millions of dollars.

grid computing

The most basic measure of economic growth is the:

gross domestic product

The difference between net sales and cost of goods sold is

gross profit

Paul Hyatt owns and operates DeepClean, a Florida-based company that cleans up mold and mildew in homes and businesses. As the sole proprietor of the business, he has unlimited liability, which means:

he is fully liable for all business debts

How would you describe the relationship between NYSE and NASDAQ?

heated competitors

Which of the following is an example of nonstore retailing?

home shopping network

Spring Airlines is a small budget airline that is based in China. Due to the unfamiliarity of this mode of transportation in China, Spring's employees are often attacked by unhappy customers who demand compensation for flight delays. According to Herzberg, these attacks by passengers would be an example of a _____ factor.

hygiene

In Herzberg's theory, salary is an example of a(n):

hygiene factor

One criticism of Herzberg's motivator and hygiene theory is that it:

ignores the impact of situational variables

Advertising can be found:

in any of the above media

The average price of construction materials increased by 8.1 percent in 2005. The head of the Home Builders Association said it was due totally to increases in lumber, metal, and labor costs. The 8.1 percent increase is probably an example of:

inflation

Jamaica has 35 airports, 18,700 kilometers of paved and unpaved road and a total of 272 kilometers of railroad track. This is a partial description of the nation's:

infrastructure

Regulation FD was designed to eliminate:

insider trading

Lachlan Stuart is employed by International Paper, a company that values his vision and creativity. To stay ahead in a very competitive industry, International Paper gives Stuart, and his division has almost complete autonomy to develop innovative and effective communications. Stuart is an example of a(n):

intrapreneur

Blackwell Investments specializes in acting as an intermediary in taking companies public. This financial middleman is an example of a(n):

investment banker

Programmed instruction:

is a self-paced, highly structured training method

Social investing:

is the practice of limiting investments to companies that have ethical policies that match those of the investor

Collective bargaining:

is the process of negotiating labor agreements

A _____ is a study of the tasks required to do a particular job well.

job analysis

One of the documents that help human resource planners find the right person for a specific job is a list of tasks and responsibilities required of the job. This document is known as a:

job description

A(n) _____ is a manufacturing firm that produces goods in response to customized orders.

job shop

The skills, knowledge, and abilities a person must have to fill a job are spelled out in a(n):

job specification

A _____ is when two or more companies form a special entity to undertake a specific project, usually for a specific period of time.

joint venture

Hard Rock Cafe International and Sol Melia Hotels and Resorts have allied to develop a multimillion-dollar hotel. This relationship is a _____ because their alliance will end as soon as the hotel is completed.

joint venture

Manila Water, the provider of the water and sewerage services in the capital of the Philippines has purchased the government owned water and sewerage system for the entire country. It promises to make the nation's water and sewerage system run as efficiently and profitably as the one it operates in Manila. Its primary challenge will be the management function of ____ because it needs to convince the 2,000 employees it inherited from the government-owned facility to work more efficiently.

leadership

A manufacturers' representative is sometimes called a(n):

manufacturer' agent

According to the _____ of the New Mexico Nurses Association, the organization "is committed to advocating for all licensed nurses, promoting lifelong learning, and improving health care for all people."

mission statement

The _____ of the Booth Western Art Museum reads, "The Booth Western Art Museum will educate, entertain, and inspire a diverse audience by creating a place where people feel welcome, find meaning and value, and delight in exploring the uniqueness of Western American art and culture."

mission statement

The most important function of the Federal Reserve System is carrying out ______ policy.

monetary

According to Frederick Taylor's scientific management theory, the most important motivator in the workplace is:

money

If a unionized company has a(n) ______ shop, the workers do not have to join the union, and they do not pay dues or fees to the union.

open

Dean Jager is the supervisor of the volunteer staff at the Booth Western Art Museum. He makes the work assignments, determines work schedules, and makes sure the museum uses all its volunteer staff efficiently. Jager is involved in _____ planning.

operational

The fact that a corporation has limited liability means:

owners' liabilities are limited to the amount invested

Ease of formation, flexibility, and diversity of management are advantages of the _____ form of business ownership.

partnership

Pete Yankin and Ken Lowery consider themselves to be experts on hunting in the mountains in North Carolina. As a result, the two men established a company that markets hunting expeditions. Yankin and Lowery share responsibilities for booking the trips, gathering supplies, and guiding groups of five to seven hunters into locations where they can hunt for deer and bear. Since the two will share any profit equally, this would be an example of a(n):

partnership

Maria Manow is planning to sell handmade quilts over the Internet. As she decides what to charge for a full-sized quilt, Manow will calculate her fixed and variable costs. At this point, Manow will be developing her _____ strategy.

pricing

Accountants employed within organizations are called:

private accountants

The purchasing function, sometimes called _____, is an important part of any firm's production strategy.

procurement

3M Consumer Healthcare has introduced a "Home 'n Go Pack" packaging concept that organizes each of its bandage offerings into a separate plastic pouch within the bandage box. The pouch is visible through a window in the external packaging. The decision to offer this new packaging was made as part of the _____ strategy.

product

Kohber is a Swiss-company that makes medical equipment. It recently purchased a company, which manufactures packaging for high-value drugs. Since it will run the packaging company as a separate division, it would seem that Kohber is departmentalized by:

product

The _____ is the combination of advertising, personal selling, sales promotion, and public relations used to promote a product.

promotional mix

When Nike donated $25,000 to a low-income area to provide job training, it received free and positive _____ in the news media.

publicity

The Financial Accounting Standards Board (FASB) is currently:

pushing for major changes in GAAP

A company that has a global vision:

recognizes and reacts to international business opportunities

Which of the following statements about ethics training is true?

Ethics training is formal training to develop awareness of inappropriate behavior and to practice appropriate responses.

_____ are limitations on the quantity of certain types of goods that can be imported over a period of time.

Import quotas

With a communist economy system:

None of the above

Which of the following statements about human rights is true?

None of the above statements about individual rights is true.

The karakul is a breed of Central Asian sheep that produces curly, glossy wool. This wool is popular in some countries for the manufacturing of warm hats and coats. Since the breed can only be grown in Central Asia, this region can be said to have a(n):

absolute advantage

Restricted operating freedom in franchising means that the franchisee must conform to:

all of the above

Since the balance of payments is the summary of a country's financial transactions with another country, a discussion of a nation's balance of payments will need to include a discussion of:

all of the above

A _____ regulation in the United States bans the use of foreign steel in constructing U.S. highways.

buy-national regulation

In a _____, the factors of production are owned collectively rather than individually, and no incentives to work harder or to produce quality products are provided.

communist economic system

Rudy and Ritchie Ling ran a camp this summer for children in their neighborhood. Rudy spent $135 on supplies and earned $250 before expenses. Ritchie spent $140 on supplies and made $210 before expenses. What is the combined revenue for the two brothers?

$460

Market equilibrium is:

the point at which quantity supplied equals quantity demanded

The situation in which the average of all prices of products is rising is called:

inflation

The franchise agreement:

is the contract that details the terms of the franchise

Imagine you are trying to gather the information needed to calculate the balance of payments for an Eastern European country. To do your calculations, you would need to have information on all of the following EXCEPT:

its corporate tax rates

The _____ is a protectionist argument that says the U.S. should use tariffs to keep foreign labor from taking away U.S. jobs.

job-protection argument

Another factor influencing business ethics is _____, or what is fair according to prevailing standards of society.

justice

Many weight-loss programs advertise that they can help individuals lose a great deal of weight without any changes in the individual's lifestyle. Typically when the person who has lost the weight leaves the program, he or she regains all the lost weight. This yo-yoing is almost as bad for the body as the excess weight. These weight-loss programs are engaged in _____ behavior.

legal but irresponsible

Peter Drucker, a well-known management scholar, has said that companies should be evaluated on two basic dimensions:

legality and responsibility

Stewed Tomatoes was an "all-girl power-pop trio." Its three members realized that many musicians feel stifled when making music in a sterile studio environment while the clock ticked away expensive hours, so the three girl band members created Materville Studios, a multimedia production house and recording studio in downtown Chicago. They share work responsibilities and profits equally. Materville Studios is a(n):

partnership

A company has achieved the level of _____ responsibilities when it has met its ethical, legal, and economic responsibilities.

philanthropic

The highest level of the corporate social responsibility pyramid is:

philanthropic responsibilities

Understanding the external business environment requires marketers to be aware of:

changes in the law which impact how business is conducted

Why would a company choose to engage in a conglomerate merger instead of a vertical or horizontal merger?

A conglomerate merger is done to reduce risk.

Which of the following is an example of an unethical business activity?

All of the above are examples of unethical business activities.

_____ are government regulations that give special priority and privileges to domestic manufacturers.

Buy-national regulations

In 1998, the Canadian Magazine Publisher's Association (CMPA) predicted the demise of many Canadian magazines because the World Trade Organization (WTO) made it legal for U.S. publishers to introduce product into the Canadian market, without incurring the start-up costs involved in launching a new magazine. By using split-run magazines (modifying the U.S. edition so they contain Canadian ads), U.S. magazine publishers could offer lower rates to advertiser and sell the magazines for less money than Canadian publishers could. According to the CMPA, the U.S. magazine publishers would be engaged in:

dumping

A homebuilder who disposes of asbestos shingles by burying them on his own property may please the home owner because it is a less expensive means of disposal but will be punished by various legal agencies if any become aware of his crime. At which stage of the social responsibility pyramid is the builder most likely operating?

economic

Jules Sylvester had always loved reptiles. When he was asked by a movie producer if he could locate some anaconda snakes for a movie, a business was born. Sylvester is the proud owner and operator of Reptile Rentals. The California-based business, which he started with no financial help from anyone, is often called on to provide "creepy, crawly" moments in the movies. Jules Sylvester is an example of a:

sole proprietorship

Seeds of Change manufactures and markets certified organic entrees. Its mission reads, "At Seeds of Change, we're committed to making delicious foods that are healthy for you as well as the planet." In support of this mission, the company donates money to support environmental protection activities. In other words, Seeds of Change engages in:

strategic giving

Which of the following is an example of a trend in ethics and social responsibility?

strategic giving

It has been alleged that a Coca-Cola water bottling plant in India has caused illegal water shortages in fifty villages that surround the bottler. If this accusation is true, than Coke was operating at which stage of the social responsibility pyramid?

economic

At the base of the corporate social responsibility pyramid is:

economic responsibilities

A retailer that allowed its employees to handle a customer complaint without having to ask for permission or direction from management would have:

empowered its employees to help customers

The Home Depot supplies all the materials and the labor expertise for Habitat Homes in various regions of the country where the retail giant has a store. Its top management believes that this type of philanthropy better reflects the company's commitment to the community than simple donations to the American Cancer Society and similar national charities. The Home Depot is using the practice of:

strategic giving

Corrine Attlee has always enjoyed cooking more than doing anything else. Atlee has decided to quit her job as a college professor and invest her life savings in starting a restaurant. Attlee is an example of a(n):

entrepreneur

Summer Dean was walking through the mall and found a gym bag lying on the ground. The decision Dean must make as to whether to keep the gym bag and its contents for herself or turn it into the mall's lost and found department involves:

ethics

The least costly and least risky method for selling a product on the global market is:

exporting

When sales of cheese in the United States began to stagnate, the U.S. dairy industry looked for a quick and easy method to reach global markets. From your understanding of how companies participate in the global marketplace, you should know that the dairy industry selected:

exporting

In the chocolate market, Green & Black is acting at the _____ responsibilities level of the pyramid of corporate social responsibility when it makes a profit, does so by abiding by the laws, and helps cocoa farmers by agreeing to pay above-market prices for cocoa.

ethical

Which of the following statements about utilitarianism is true?

Utilitarianism is designed to create both winners and losers.

Kraft Foods Inc. joined with the National Latino Children's Institute to announce Salsa, Sabor y Salud - a first-of-its-kind healthy lifestyles educational program designed by Latinos for Latinos. The program was created by NLCI in partnership with Kraft to support Hispanic families, a population particularly at risk for obesity and accompanying health problems. Kraft donated $2 million to the program's startup. This donation is an example of:

strategic giving

Social responsibility goes beyond obligations provided by law or union contract. Two important aspects of social responsibility are that the obligation is both:

voluntary and broad