Business administration core

. Jane writes a short summary to advise her manager that she is working on the second phase of the project. What type of simple report is Jane preparing? A. Feasibility C. Analytical B. Progress D. Proposal

B Progress. Progress reports provide information about the status of an action, situation, project, etc. Employees must often provide their managers with progress reports so they can keep up with and monitor the employees' work. An analytical report evaluates a problem or issue and recommends an action. A feasibility report is a type of analytical report that evaluates the viability of carrying out an activity. A proposal contains a formal suggestion or action for consideration.

James wants to borrow $2,500 to buy a car. Which of the following is a financial institution that is most likely to lend James the money: A. Investment bank C. Mortgage company B. Retail bank D. Financial holding company

B Retail bank. Retail banks offer a variety of services for consumers including checking and savings accounts, credit cards, and automobile loans. An investment bank is a financial intermediary that underwrites securities and facilitates mergers. Mortgage companies process loans specifically designed for the purchase of real estate—land, residences, and other types of buildings. Financial holding companies own one or more commercial banks and/or investment banks.

One characteristic of an economic service is that it is A. tangible. C. immobile. B. scarce. D. impractical.

B Scarce. Economic services are productive acts that satisfy economic wants. A characteristic of an economic service is that it is scarce. When something is scarce, there is not enough of it so that anyone and everyone can freely have as much as they want. Therefore, people must be willing to pay money to get the service. Other characteristics of economic services are that they must be useful and transferable. Because services are productive acts, they are intangible. Immobility and impracticality are not characteristics of economic services.

When Nilesh started a new job, he trained alongside another employee for a few weeks so that he could get the hang of his job duties. The time that Nilesh spent training with the other employee is an example of a(n) A. resource issue. C. government regulation. B. transition period. D. emergency.

B Transition period. Transition periods are designed to allow you to adjust to your new surroundings over time. By adjusting slowly to his new job duties, Nilesh was less likely to feel overwhelmed. Resource issues occur when you don't have enough of a resource (people, money, information, ideas, and other essential items that are used to produce or do something). Government regulations deal with laws. Emergencies include situations like fires or floods that demand quick action and adaptation by everyone involved.

Paulo works in his company's finance department, and his job is making sure that customer pay their bills on time. Paulo is in charge of A. equity. C. accounts receivable. B. accounts payable. D. capital investment decisions.

C Accounts receivable. All the money owed to the business by others is considered accounts receivable. All the money that the business owes others is considered accounts payable. It's important for financial managers to balance accounts payable and receivable and ensure that the company's cash flow stays positive. Equity refers to assets the company already owns. Capital investment decisions determine which projects the business will invest in, how the investment(s) will be financed, and whether or not to pay dividends to the company's shareholders. Capital investment decisions are made for the long term.

Rachel says to the audience, "Now that you have some insight about the nature of the problem, I'll discuss the methodology that our firm used to conduct the research." This statement is an example of a(n) A. gesture. C. transition. B. introduction. D. conclusion.

C Transition. An effective transition helps the speaker move from one topic to another in a way that makes sense to the audience. In the example, Rachel tells the audience that she is moving on to another topic by relating the background information to the research methodology. During the introduction of an oral presentation, the speaker greets the audience, captures its attention, and provides an overview of the topic at hand. The speaker summarizes the discussion, answers the audience's questions, and thanks the audience for its time during the conclusion of the presentation. Gestures are nonverbal cues that involve movement of arms and legs.

Jocelyn says, "Randy, if you don't start pulling your weight on this project, you will make us all look bad." What rule of conflict resolution did Jocelyn break? A. Focusing on Randy's personality rather than his behavior. B. Interupting Randy while he was trying to state his opinion. C. Using "you" statements rather than "I" statements. D. Allowing someone to use verbally abusive language

C Using "you" statements rather than "I" statements. "You" statements tend to place blame and fault on the other party. As a result, the other person tends to become defensive and angry, which makes the conflict more difficult to resolve. Jocelyn should use "I" statements because they convey her personal beliefs, perceptions, and feelings. It might be more effective for Jocelyn to say, "I feel that we won't get the project done correctly and on time if all of us don't focus all of our attention on it right now." There is not enough information provided to determine if Jocelyn interrupted Randy, doesn't like his personality, or allowed him to use inappropriate language.

To build collaborative relationships with coworkers, it is necessary for each person to A. change his/her personal opinions. C. possess the same skills and attitudes. B. develop a competitive spirit. D. be willing to share information.

D Be willing to share information. Collaboration involves working together in a cooperative manner. It requires honesty, trust, and a willingness to share information to accomplish common goals. It is not necessary for people to possess the same skills and attitudes or to change their values or opinions to effectively collaborate. An overly competitive attitude may hinder collaboration because people may become more interested in their own agendas rather than focusing on the group's goals.

One way that businesses can reduce the risk of credit-card fraud at the point of sale is by A. establishing credit limits for card usage. B. reviewing sales receipts during closing procedures. C. conducting a financial audit. D. verifying the cardholder's identification.

D Verifying the cardholder's identification. During a sales transaction, employees should ask customers to present another form of identification when they pay for items with a credit or debit card. By comparing the signature on the credit card that the customer presents with the signature and/or photo of another form of identification (e.g., customer's driver's license), employees can verify that the customer is the authorized cardholder. Credit-card issuers establish the credit limits for credit-card holders. Reviewing sales receipts during closing procedures, conducting a financial audit, and establishing credit limits for card usages are not ways to reduce risks associated with credit-card fraud at the point of sale

During a manager's meeting, Jon says, "In relation to Marilee's previous remark, our department has a similar problem. Perhaps we should form an internal committee to address these issues. " In this situation, Jon is contributing to a group discussion by A. building on someone else's comment. B. helping the group summarize what's been said. C. pointing out missing information. D. establishing ground rules for the meeting.

. A Building on someone else's comment. Jon is building on Marilee's comment by stating that his department has a similar problem. He adds to Marilee's statement by suggesting that the company form an internal committee to look into the problems. Jon is not summarizing what has been said, nor is he pointing out missing information. Ground rules are established before the meeting gets underway.

The following statement appears in the Conrad and Associates employee handbook: "After three years of service, employees receive three weeks of paid vacation." This statement is an example of a business A. policy. C. process. B. procedure. D. program.

. A Policy. Policies are the company's general rules. In the situation described, the business states that its employees are permitted to take three weeks of vacation after a certain period of time. A procedure is the step-by-step process that an employee follows when performing a specific task (e.g., completing a form to request vacation). The statement in the employee handbook doesn't explain the process for requesting time off. A program is a scheduled event

Last month, Monica used her Old Navy credit card to purchase $200 worth of clothing and accessories. When Monica received the bill, it stated that she had to make a minimum payment of $20. This is an example of a(n) __________ credit account. A. revolving C. budget B. installment D. service

. A Revolving. Businesses that offer revolving credit accounts limit the total amount of money that a customer may charge on account. When customers use their credit cards and make purchases on their accounts, businesses require them to make a minimal monthly payment. If a customer chooses to make the minimal payment, the business charges interest on the customer's outstanding balance. Installment credit is a type of credit account set up to handle one total amount of credit that the borrower pays in regular installments until the item is paid off. Installment credit is often used when purchasing expensive items such as cars and furniture. A budget credit account is a form of short-term credit often set up for 60- or 90-day periods with a payment due every 30 days. Service credit is credit used for utilities that have been consumed but not paid for (e.g., water and electricity).

Why do positive people enjoy better personal relationships? A. They are kind and considerate. B. They're usually in a bad mood. C. They usually put themselves first. D. They typically have good personal-hygiene habits.

. A They are kind and considerate. Positive people are kind and considerate, so others typically want to be around them. For this reason, positive people enjoy better personal relationships. People who put themselves first and are usually in a bad mood would probably not enjoy better personal relationships. These are characteristics common in negative people. Although positive people usually maintain good personal hygiene, it isn't necessarily the primary reason why they enjoy better personal relationships.

Which of the following products typically carries an excise tax: A. Chocolate C. Soap B. Cigarettes D. Milk

. B Cigarettes. Cigarettes are an example of a product that typically carries an excise tax, or a tax that is built into the product's overall price. Excise taxes are often imposed on products that could be considered harmful, such as tobacco, alcohol, and tanning services. Chocolate, soap, and milk are all retail products that do not carry excise taxes

Which of the following is an investment option that provides tax advantages to parents who want to help their children cover their future college expenses: A. Bank checking account C. Retirement savings plan B. Education savings account D. Corporate stock options

. B Education savings account. Because college is a very expensive endeavor, parents often start saving money for their children's education well before they are ready to go to college. Parents who place money in education savings accounts receive certain tax advantages. For example, a certain type of education savings account may defer tax obligations on interest earned until the funds are disbursed. Retirement savings plans enable workers to save money for use when they reach retirement age and are no longer working. Corporate stock options and bank checking accounts do not provide tax advantages in relation to saving money for college.

What form of communication is best for a manager to use if s/he wants to obtain immediate feedback from employees and gauge their nonverbal cues? A. Audio conference C. Online chat room B. Face-to-face meeting D. Intranet message board

. B Face-to-face meeting. Having a face-to-face meeting is the best way to get immediate verbal and nonverbal feedback. Nonverbal feedback or body language can often provide insight into what the message recipient feels or really thinks about the message. For example, crossing arms often indicates a defensive or negative attitude about the message. The manager cannot gauge or monitor employees' nonverbal cues through audio conferences (e.g., telephone conference calls), online chat rooms, or Intranet message boards because s/he cannot see the message recipients.

What requirement of a legally enforceable contract requires that both of the parties who are entering into the contract are sane, sober, and of legal age? A. Capacity C. Genuineness of assent B. Consideration D. Legality of purpose

A Capacity. Certain conditions must be met for a contract to be legally enforceable. Capacity involves having the mental and cognitive ability to make and understand the agreement and the consequences of their actions. If one party is a child or is found to be mentally challenged or impaired, the contract is invalid and unenforceable. Consideration means that the agreement must include something of value that both parties bargain for. Genuineness of assent means that all parties know what they are agreeing to. Legality of purpose means that the agreement must not violate any laws.

To ensure that financial information is reported in a consistent way, businesses must A. develop productivity benchmarks. C. implement operating guidelines. B. follow accounting standards. D. establish processing requirements.

. B Follow accounting standards. Depending on the jurisdiction, accountants use standards such as the generally accepted accounting principles (GAAP) or the International Financial Reporting Standards (IFRS) when they prepare and summarize financial reports. Presenting financial information in a consistent format helps accounting professionals, stockholders, managers, and government officials to understand financial information across many types of businesses and industries. The use of a consistent format enables individuals to compare one business to another or one time period to another. Effective businesses develop and implement productivity benchmarks, operating guidelines, and requirements to process work activities; however, these types of rules do not directly affect the way that a business reports its financial information.

Brandi just moved from Omaha to Pittsburgh to be closer to her sister. She hasn't found a job yet. This is an example of __________ unemployment. A. classical C. technological B. frictional D. structural

. B Frictional. Brandi's being out of work because she just moved is an example of frictional (voluntary) unemployment. This type of unemployment will always be present in the economy. There is no such thing as "classical unemployment," though there is a classical theory of unemployment. Technological unemployment occurs when advances in technology eliminate certain job positions. Structural unemployment is the result of a mismatch between available jobs and available workers.

What type of services do property taxes typically fund? A. National security programs and local road repairs B. Local fire departments and local law-enforcement agencies C. State/Provincial education programs and federal correctional facilities D. State/Provincial colleges and state/provincial social welfare initiatives

. B Local fire departments and local law-enforcement agencies. Local governments levy property taxes on land, commercial facilities, and residences within their jurisdictions. Revenues collected from property taxes pay for local services including local road repairs, public schools, fire departments, and law enforcement. The federal government uses the tax revenues that it collects in a variety of ways (e.g., income tax) to fund national security programs and federal correctional facilities. State/Provincial governments collect taxes (e..g., sales tax) to support all levels of education and social welfare initiatives within their jurisdictions.

Ryan is a college student who is interested in becoming a teacher. Every Tuesday afternoon, he spends his free time tutoring second-grade students in reading and math at a local elementary school. What technique is Ryan using to obtain work experience? A. Informational interview C. Job shadowing B. Volunteering D. Internship

. B Volunteering. Volunteer work involves donating time without pay to complete tasks or projects. Because Ryan is tutoring in his free time, he is performing volunteer work. By volunteering to tutor students, Ryan can determine if he enjoys working with and teaching young children. Participating in these activities may help Ryan determine if he would like to pursue a career in teaching. Internships involve training in which schools and businesses cooperate to provide on-the-job practice for learners. Job shadowing involves observing an individual perform his/her daily job activities in the workplace. An informational interview involves talking with a business professional about his/her job.

Lily makes sure that she arrives at work on time and meets her work deadlines consistently and accurately. Lily is meeting her employer's expectations by A. showing empathy. C. being dependable. B. exhibiting a positive attitude. D. demonstrating self-understanding

. C Being dependable. Businesses expect their employees to fulfill their work obligations in a dependable, reliable manner. Dependability involves exhibiting consistent behavior such as arriving at work on time and completing tasks accurately and on time. If businesses cannot depend on their employees meeting their expectations, they cannot achieve their goals. Although exhibiting a positive attitude, showing empathy, and demonstrating self-understanding are important traits to have to be successful in the workplace, these traits do not relate to arriving to work on time and meeting deadlines in a consistent and accurate manner

. Interest rates are more likely to ____________ during a period of economic _____________. A. decrease; expansion C. decrease; recession B. increase; contraction D. increase; depression

. C Decrease; recession. During a recession, business production drops, unemployment increases, and consumer spending decreases. In response, the Federal Reserve/Bank of Canada is more likely to lower interest rates to stimulate spending. When interest rates are low, it is cheaper to borrow money for expensive purchases such as homes, cars, and business expansions. When the economy begins to recover and expand, the Federal Reserve/Bank of Canada might increase interest rates, especially if inflation rises rapidly during an expansionary period. During a depression the economy is stagnate, so it is unlikely that interest rates will increase.

Isabella's manager sends an email requesting that Isabella contact a customer about an issue with an order. This is an example of _____________ communication. A. upward C. downward B. lateral D. horizontal

. C Downward. Downward communication passes information down the chain of command to employees. Because the manager sends the message to a subordinate (Isabella), the example consists of downward communication. Upward communication moves up the chain of command from lower to higher levels of authority. Horizontal or lateral communication involves communication among peers within the same level of authority in the organization.

What technique can help businesses reduce risks associated with software piracy and unauthorized peer-to-peer file sharing via the Internet? A. Rerouting C. Encryption B. Virtualization D. Multicasting

. C Encryption. Software piracy and unauthorized file sharing (e.g., of music) are costly to producers. To protect their ownership rights, these businesses often use encryption techniques to minimize these types of issues. Encryption is the process of transforming information into a secret code so that only the recipient can read it. If the recipient tries to pass along the information to others, they will not be able to access the information. Virtualization involves running multiple operating systems on one machine. Multi casting transmits streaming media to multiple users simultaneously. Rerouting means to change course or direction.

Which of the following is a true statement about positive customer relations: A. Customer relations focus on selling activities. B. Satisfied customers are loyal customers. C. It requires businesses to be proactive. D. Price is the primary factor that affects customer loyalty.

. C It requries businesses to be proactive. It isn't enough to react to customers' questions, complaints, and problems as they occur. Instead, businesses must anticipate and stay ahead of these issues, which can often prevent them from happening to begin with. A customer may be satified with an initial purchase; however, one purchase may not result in repeat sales, which is characteristic of loyal customers. Businesses obtain loyal customers by exceeding their expectations. In many situations, customers return to a business for factors other than price—service level, product quality, etc. Although selling activities are important aspects of positive customer relations, management and employees throughout the company must embrace a customer-centric mindset. This is because customers come in contact with the business through many touch points—the company's website, invoices, promotional activities, etc

A primary advantage of labor specialization for the company is A. greater employee turnover. C. simplified worker training. B. higher employee income. D. increased job interdependency

. C Simplified worker training. Specialization makes it easier for a company to train employees because it focuses on a specific task or activity. For example, it is easier to teach a worker to install a car motor than it is to to teach him/her to build an entire car. As a result, the company spends less time and saves money because the employees quickly learn the necessary skills to perform the work. A higher income is a benefit to the employee. Employee turnover is costly to the company because it needs to recruit, hire, and train new employees. Increased job interdependence can be a disadvantage for the company. If one or more employees are absent or not performing their work efficiently, it affects the other employees' ability to perform their jobs.

The MSE Company encourages its employees to perform and manage their own work within guidelines, express their creativity to facilitate innovation and problem solving, and collaborate with coworkers to improve work processes. What characteristic of a quality work culture does this situation exemplify? A. Unstructured leadership C. Ethical work habits B. Work specialization D. Employee empowerment

. D Employee empowerment. To create a quality culture, employees at all levels of the organization must embrace a team-oriented attitude. Empowerment involves providing all employees with the flexibility and freedom to take ownership of their work by allowing them to be involved in problem solving, collaboration, and creative processes that benefit the company. When employees feel empowered, they tend to feel like part of the team and are motivated to help the company achieve its goals. Empowering employees does not mean that the company relinquishes structure and strong leadership; it means that the managers seek and appreciate their employees' input. Although ethical work habits are crucial to a quality work culture, the example does not relate to business ethics. Work specialization involves being highly skilled in one very small portion of a job.

. Advertising falls under which of the following categories in marketing: A. Marketing research C. Professional selling B. Merchandising D. Marketing communications

. D Marketing communications. Advertising is a part of marketing communications, or marketing activities that inform, remind, and/or persuade the targeted audience of ideas, experiences, goods/services, and/or images. Merchandising careers involve marketing activities that are focused on efficient and effective product planning, selection, and buying for resale. Professional selling involves marketing and management activities that determine customer needs/wants and respond through planned, personalized communication to influence purchase decisions and enhance future business operations. Marketing research jobs focus on marketing activities that involve determining information needs, designing datacollection processes, collecting data, analyzing data, presenting data, and using data for marketing planning

. Nate has a knack for getting others to see things his way. He wants to lead a change at work, so he starts by putting together a presentation for his boss, showing why the change is necessary. Which characteristic of an effective change leader is Nate demonstrating in this situation? A. Avoids conflict C. Loves to learn new things B. Independent D. Persuasive

. D Persuasive. By attempting to talk his boss into the change he wants to make, Nate is being persuasive. Change leaders are independent and love to learn new things, but these are not the characteristics Nate is displaying in this situation. Change leaders don't necessarily avoid conflict.

. Amy says, "I think the primary reason that last year's sales were higher than this year's sales is because Jansen Electronics has taken a portion of our market share." This is an example of A. an opinion. C. historical data. B. a fact. D. comparative criticism

A An opinion. An opinion is a person's point of view or belief about a topic. Amy is stating her opinion about why sales varied from one year to another. Her opinion may be supported by facts (true data), but she isn't presenting any data—current or historical—in her statement. There isn't enough information provided to determine if Amy is stating her opinion as criticism, which involves expressing disapproval.

Jason likes to ask questions and learn new things. What personal trait of creativity does Jason possess? A. Curiosity C. Open-mindedness B. Independence D. Determination

A Curiosity. Curiosity is a creative trait that involves a desire to question and learn things. Independence is the ability to think and act on your own and complete tasks without the direction of others. Determination involves staying with something until it is finished and not giving up easily. An open-minded person has the ability to see different views and perceptions.

If a business has two records for one customer in its database, it should consolidate all of the information into one record and A. delete the other record. C. create a new record. B. reformat the second record. D. reorganize all of the customer records.

A Delete the other record. Customer records contain contact, billing, and purchasing information. If multiple records for one customer exist, each record may have incomplete or differing information. Having multiple records for one customer in a database can cause confusion for employees and may cause the business to ship goods or send bills to an incorrect address. When a business detects more than one record for a customer, it should place all of the most current information in one record and delete the other record(s) to prevent employees from accessing the wrong record in the future. Reformatting the other or second record, creating a new record, and reorganizing all of the customer records are not actions that prevent a business from having multiple records for one customer in its database

A project that involves adding a new cardiac surgical center to Manchester Hospital's primary facility is nearly complete. Now, the hospital plans to expand its cardiac rehabilitation area and add a heart-heath education center. This is an example of a(n) __________ project. A. derivative C. platform B. breakthrough D. organic

A Derivative. A derivative project enhances, extends, or adds to existing projects. Because the hospital is almost finished adding a cardiac (heart) surgical center to its main facility, and plans to work on other projects related to heart care (the rehabilitation area and the education center) the other projects (the rehabilitation area and the education center) are derivative in nature. Derivative projects often use the resources from the previous project because they are already in place. In the hospital's situation, it may be able to use some of the same building contractors for the rehabilitation area and education center that it used on the surgical center. A breakthrough project involves new ideas and resources to develop something that has not existed before. The invention and production of Thomas Edison's light bulb is an example of a breakthrough project that took place in the late 19th century. A platform project is a major departure from an existing project and may require the use of different resources. Organic is not a type of project.

Jack broke his left leg in a snowboarding accident and won't be able to work for three months. What type of insurance will help Jack cover his living expenses while he is recovering from his accident? A. Disability C. Liability B. Health D. Term life

A Disability. Disability insurance provides a percentage of a worker's normal wages to the worker when s/he cannot work because of an illness or injury. Often, businesses obtain disability coverage for their employees as a component of their benefits package. Health insurance covers such medical expenses as hospital bills, doctors' fees, lab charges, and other medical costs. Liability insurance protects against lawsuits that result from injuries to others. Term-life insurance provides insurance coverage at a fixed rate for a limited amount of time. The beneficiary receives payment upon the death of the insured during that time

Marshall's employer pays him for the work that he performs while on the job. This is an example of A. earned income. C. capital gains. B. passive revenue. D. transfer payments.

A Earned income. Income is money that individuals and businesses receive from other sources. Marshall worked to receive wages from his employer, so he has earned income. Unearned income is revenue that individuals and businesses passively obtain. In these situations, individuals or businesses do not actually perform work to obtain the money. Dividends, rent, and transfer payments are examples of unearned income. Transfer payments are monies paid by the government for which no goods or services are received in exchange, such as welfare benefits, veterans' benefits, disaster aid, and unemployment. A capital gain refers to the amount of increase in value of an asset in relation to its price at the time of purchase.

After Taylor puts in her two weeks' notice at her job, her human resources manager schedules a time to sit down and talk about why she's leaving and how the company can improve. This is considered a(n) __________ interview. A. exit C. orientation B. recruiting D. on boarding

A Exit. Exit interviews aim to gauge employee attitudes about a company, gain constructive suggestions for improvement, and gather further understanding about employee turnover. Onboarding activities are done shortly after the employee is hired and include employee orientation. Recruiting is the part of staffing that involves seeking out and attracting qualified potential employees.

The final deliverable of your project is choosing a name for your company's new product. Which of the following tasks is most likely outside the project's scope: A. Generating potential names for future products B. Conducting a focus group to test potential names C. Seeing how potential names look in different fonts D. Brainstorming for names with members of the project team

A Generating potential names for future products. Your project's goal is to name your company's new product. It would most likely be outside the project's scope to generate potential names for products other than the one you've been assigned. Conducting a focus group to test potential names, seeing how potential names look in different fonts, and brainstorming for names with members of the project team would all be appropriate tasks within the project's scope.

A primary reason for developing an employee orientation program is to A. help new employees learn about the company. B. reduce the need for on-the-job training. C. assign a mentor to help each experienced employee. D. evaluate the employees' work performance.

A Help new employees learn about the company. Employee orientation consists of activities that help new employees become acquainted with their surroundings. During orientation, the new employees typically receive general information about the company and its policies, meet their coworkers, and tour the facility. After orientation, the employees report to their new managers to obtain training and specific information about their jobs. Often, the business may have an experienced employee help train and/or mentor the new employee. Performance reviews are tools that businesses use to evaluate an employee's work performance.

Staunton Transportation Company owns a fleet of delivery trucks. The company can minimize costs associated with expensive truck repairs and replacements by A. implementing a preventative maintenance schedule. B. preparing an operating budget. C. maintaining an inventory log. D. assessing the company's captial investment decisions

A Implementing a preventative maintenance schedule. Preventive maintenance involves regularly inspecting and servicing equipment (e.g., trucks) to detect and correct potential problems. Although maintenance activities cost money, performing these activities on a regular basis can prevent breakdowns that may be more expensive to repair. For example, Staunton should routinely perform activities on all trucks such as changing oil, checking fuel lines, and replacing tires, which may help avoid situations that can cause damage to the vehicles. Preparing an operating budget, maintaining an inventory log, and assessing the company's capital investment decisions will not minimize costs associated with expensive truck repairs and vehicle replacements.

As a quality-control philosophy, the goal of lean operations is to eliminate waste, which helps the business A. increase profits. C. maximize lag time. B. stimulate demand. D. expand inventory.

A Increase profits. The goal of lean operations is to create or sell a dependable product in ways that minimize the waste of time (e.g., production lag time), inventory, storage, and human resources. By eliminating wasteful practices, the business can save money, which increases its profits. Practicing lean operations does not stimulate demand for the product.

A gas station sells close to the same amount of gas every month, even if the price of gasoline goes up or down. This is because demand for gasoline is A. inelastic. C. discretionary. B. elastic. D. inessential.

A Inelastic. Inelastic demand exists if the demand for a good or service is constant, even if the product's price changes. Some products are considered necessities that consumers must purchase regardless of their cost. For most consumers, gasoline is a necessity because they need to drive their cars. Elastic demand changes when prices change. Discretionary and inessential are not terms commonly used to describe demand

A user can identify each cell in a spreadsheet by its unique column ___________ and row ___________. A. letter; number C. number; letter B. group; range D. range; group

A Letter; number. Spreadsheet software programs enable businesspeople to organize, calculate, and analyze numerical information. Spreadsheets contain columns, which are vertically positioned on the page and are designated by letter headings. Spreadsheets also contain rows, which are horizontally positioned on the page and are designated by numerical headings. The place where the column and row intersect is called a cell. Each cell has a unique numerical and letter designation based on which column and row intersect. The sort and filter function enables cells of data to be reorganized and grouped together. Range is the group of cells that the computer user selects or highlights in the spreadsheet to carry out an action (e.g., sorting and filtering).

Limiting the number of credit cards that you have will help you A. manage your spending. C. waive the transaction fees for each card. B. purchase most of the items that you want. D. exceed your credit limit.

A Manage your spending. When you have one or two credit cards, it is easier to manage your spending because you have a limited amount of purchases that you can place on each card. With fewer cards, it is easier to track your purchases and this may enable you to pay more than the minimal amount due on each card, which helps you to reduce your debt more quickly. Having one or two credit cards may not enable you to buy everything that you want, but it can help you prioritize your needs and wants so you don't overspend. The credit-card service provider establishes the policies for transaction fees and credit limits, regardless of the number of credit cards that you hold.

Ben is a new employee with Sampson Equipment Company. To understand the role of office politics in his new company, Ben should A. observe other employees to learn about the company's organizational culture. B. compliment managers excessively so they will share vital company information. C. provide management with a list of suggestions for corporate improvement. D. align himself quickly with a group of coworkers to work for change.

A Observe other employees to learn about the company's organizational culture. The focus of political relationships or office politics is to influence others (e.g., coworkers, managers) to take a certain course of action. By observing others, Ben can learn about the organizational culture and figure out how to maneuver the company's political environment. Complimenting managers excessively may cause others to dislike Ben because the flattery may come across as an insincere way to get ahead. And, compliments do not always result in information sharing. A new employee should not provide suggest improvements or align himself/herself with a particular group of coworkers to work for change before s/he knows more about the company and its culture. New employees typically do not have enough knowledge about or leverage within the company to suggest changes or improvements. In fact, these behaviors may offend employees and managers and hurt an employee's ability to move ahead in the company.

Leslie wanted to persuade her manager to let her attend a professional development workshop next Wednesday. She asked her manager about the workshop right before an important meeting, when her manager was feeling frazzled. As a result, the manager said, "Not right now." In this situation, Leslie was unsuccessful in persuading her manager to let her go to the workshop because of A. poor timing. C. flawed logic. B. lack of credibility. D. ineffective language

A Poor timing. It's hard to make your case when the other person doesn't have time to listen to your pitch. You are more likely to persuade someone to do something when s/he has time to listen to you and can focus on what you are saying. There is not enough information to determine if Leslie lacked credibility, did not state her case logically, or used ineffective language during her conversation with her manager.

Vivian's company always pays her on time, offers benefits, and provides her with an office she feels safe and comfortable in. Vivian enjoys her job and is able to be more productive because her company puts an emphasis on A. quality of work life. C. communication. B. specialization. D. participative decision making

A Quality of work life. To create a productive, cooperative atmosphere, businesses should offer fair salaries and wages, competitive benefits, and safe and healthful working conditions for employees. Because Vivian feels safe and comfortable in her job, she can work more productively. Specialization is a form of efficiency—making the best use of the resources available. When a business specializes, it produces the good(s) or service(s) it is best able to produce with its resources. Communication is important because it helps each worker understand company goals and his/her role in reaching those goals. Participative decision making involves employees in decisions and allows workers to make suggestions to improve the organization. This helps employees take pride in their jobs and become more productive.

Mexico limits the amount of refined sugar that it allows into the country from other nations. What type of trade barrier does this exemplify? A. Quota C. Subsidy B. Tariff D. Product standards

A Quota. A quota is a trade restriction that limits the quantity of goods that can move into or out of a country. Because Mexico limits the amount of sugar that it allows to cross its borders from other countries, it has implemented a quota on refined sugar. Countries often establish quotas to protect domestic industries against foreign competition. A tariff or duty is a tax on imported goods. A subsidy is government financial help given to a producer or industry. When a government provides subsidies to domestic industries or producers, the businesses can offer the product to their customers at a lower price. As a result, customers are likely to purchase domestic goods rather than the higher priced imports. Product standards are criteria for determining a product's ability to meet specified guidelines or requirements. Governments set product standards to protect consumers and the environment.

Which of the following is an example of two businesses that are indirect competitors: A. Regal Movie Theater and Logan's Steakhouse B. Macy's Department Store and J.C. Penney C. Apple and Microsoft D. Dairy Queen and Graeter's Ice Cream

A Regal Movie Theater and Logan's Steakhouse. Indirect competition is a rivalry between or among businesses that offer dissimilar goods or services. A movie theater provides entertainment, and a steakhouse provides foodservice. The businesses offer different products but are competing for consumers' scarce dollars, making them indirect competitors. On the other hand, direct competition is a rivalry between or among businesses that offer similar types of goods or services. For example, Macy's and J.C. Penney sell apparel and home goods; Apple and Microsoft sell computers, software, and other electronics; and Dairy Queen and Graeter's Ice Cream sell ice cream.

Which of the following is a primary factor that helps a business determine when it should place another order for a regularly stocked item: A. Reorder point C. Buyer's preferences B. Profit margin D. Accounts receivable

A Reorder point. The reorder point is the level of inventory at which the business needs to place a reorder with the vendor to replenish the inventory, which prevents stock-out situations. The business considers the normal demand for the product, its safety stock, and the vendor's lead time to determine the reorder point of a particular item. Profit margin, buyer's preferences, and accounts receivable are not primary factors that a business considers when it determines when to place a reorder for a regularly stocked item

Lucy is starting a jewelry-making business. She knows that she needs to invest a lot of her money and time into getting her business up and running and is willing to do so without knowing exactly how things will turn out. What characteristic of entrepreneurship is Lucy exhibiting? A. Risk taking C. Enthusiasm B. Innovation D. Problem solving

A Risk taking. Risk taking involves understanding and accepting the responsibility of not knowing the outcome of your actions. Innovation is the creation of new, unique products. Enthusiasm is an intense interest or excitement about something. Although Lucy may be innovative and enthusiastic, these qualities are not described in the situation presented. Problem solving is an important entrepreneurial skill that involves finding solutions to obstacles.

Barnham Manufacturing is evaluating computer-software programs to help the company better manage its interactions with customers. Barnham wants software applications that have the ability to track orders, customer-contact frequency, and sales leads. What type of software would best meet the company's needs? A. Sales-force automation C. Firmware B. Project management D. Hypermedia

A Sales-force automation. Many companies use sales-force automation (SFA) technology to support, coordinate, and increase the productivity of their selling functions. SFA technology is a type of customerrelationship management software that automates many aspects of the sales process, such as tracking orders, customer-contact frequency, and sales leads. SFA applications often include sales-forecasting and sales-reporting capabilities. Project-management software contains applications to help manage a project. Firmware is a software program that is placed on a computer hardware device. It provides the instructions for how the device communicates with other computer hardware. Hypermedia is a computer application that links images, movies, and flash animations to other content.

Aaron is conducting an online search for an article entitled How to Make Good Decisions as a Team. The author's name is Les McKeown. Which of the following queries will provide Aaron the fewest and most accurate results? A. "how to make decisions as a team" OR "l mckeown" B. "how to make good decisions as a team" "les mckeown" C. make decisions team - mckeown D. {make decisions team} + mckeown

B "how to make good decisions as a team" "les mckeown". When searching for something very specific, the goal is to have the search field retrieve the fewest results possible. When the search engine retrieves fewer results, the researcher can often avoid reading through a lot of material to get the desired information. Placing quotation marks (rather than parentheses) around the exact article title, as well as the author's name, narrows the results that the search mechanism retrieves. Placing OR between the phrase and the author's name increases the number of results retrieved because the search engine looks for the article title and the author's name as individual queries as well as a combined query. Additionally, the search should contain the author's full name to narrow the results. Placing a minus sign before a search term removes the term from the search, which increases the search results because all articles containing the key words written by other authors are likely to show up in the results.

Which of the following is a technique used in a persuasive letter to gain the readers' attention and encourage them to read the rest of the message: A. Including a link to the business's website B. Asking a question in the introduction C. Placing the call to action in the last paragraph D. Providing statistics in the body of the letter

B Asking a question in the introduction. Before persuading the audience to take action, the writer must gain the readers' attention—this is often referred to as the hook. Posing a question in the introduction (first sentence) often stimulates the readers' curiosity and encourages them to find out more about the issue or offer. Another way to grab the readers' attention is by including interesting statistics or facts in the introduction or first paragraph of the message. After gaining the readers' attention, the writer addresses the call to action. Depending on the type of message, inclusion of the business website may be an important component of the message; however, this typically will not gain the readers' attention.

What type of government policy involves manipulating the business cycle by raising or lowering taxes? A. Monetary C. Welfare B. Fiscal D. Trade

B Fiscal. A government's fiscal policy sets levels of government spending and taxation. To control inflation, the government might implement a contractionary fiscal policy, which often involves decreasing government spending and increasing taxes. To stimulate the economy and decrease the unemployment rate, the government is likely to institute an expansionary fiscal policy, which involves increasing government spending and decreasing taxes. Monetary policy influences the amount of money that will be in circulation as well as interest-rate levels. Social policies are government actions that influence the welfare or living conditions of the country's citizens. Trade policies are the guidelines that a government sets for the country's imports and exports.

Which of the following is an action that can help a business safeguard its reputation: A. Delivering products with unpredictable quality B. Fixing mistakes consistently and quickly C. Using high-pressure sales techniques D. Implemeting minimal touch points to connect with customers

B Fixing mistakes consistently and quickly. Customers who are pleased with the way the business handles problems are likely to recommend the business to others, which result in a favorable reputation for the business. On the other hand, a business that fails to apologize and fix mistakes is unlikely to keep customers. As a result, customers tell others about their negative experiences with the business, which can damage the business's reputation. The delivery of unpredictable product quality, the use of highpressure sales techniques, and the use of minimal touch points to connect with customers are actions that are more likely to damage the business's reputation than safeguard it.

When Lauren is at work, she believes that it is important to focus on doing her job to the best of her ability and not waste the company's time or money. Therefore, she always makes personal phone calls, sends text messages, and socializes with her coworkers during her lunch break. Lauren is demonstrating A. empathy. C. flexibility. B. integrity. D. humility.

B Integrity. Integrity is adhering to an established set of personal ethics and sound moral principles. People with integrity know right from wrong, and they try to do what is right. Because Lauren consistently takes care of personal business and socializes on her own time rather than on company time, she is demonstrating integrity. Empathy is the ability to put yourself in another person's place. Flexibility is the ability to adapt to changes as they occur. Humility is a lack of pride

. Businesses use supply relationship management (SRM) computer software to A. process journal transactions. C. coordinate pricing strategies. B. make sourcing decisions. D. manage clients' sales data.

B Make sourcing decisions. Supply relationship management (SRM) software has many applications that focus on planning and managing partnerships with channel members. SRM applications include facilitating sourcing decisions; facilitating buying processes; and design and supply collaboration. Businesses do not use SRM software to process journal transactions, coordinate pricing strategies, or manage clients' sales data.

6. What can you do to make sure that you understand what the speaker has just said? A. Maintain eye contact with the speaker. C. Focus on details rather than the big picture. B. Paraphrase the speaker's message. D. Anticipate what the speaker will say next.

B Paraphrase the speaker's message. Paraphrasing involves restating a message in other words to confirm or clarify its meaning. Maintaining eye contact with the speaker, focusing on details, and anticipating what the speaker will say next are not actions that will ensure that you understand the message.

Carly tells a customer, "I can understand why you are upset. Let's set up a time for our service technician come to your home to fix your new washing machine." Carly is reinforcing a service orientation by A. being enthusiastic about a new product. B. presenting a solution to a problem. C. supporting a customer's buying decision. D. apologizing for installing the washing machine incorrectly.

B Presenting a solution to a problem. Having a service orientation involves expressing a positive, helpful attitude with the business's customers. It often involves troubleshooting and helping solve customers' problems with the business or its products—such as fixing a new product that has broken. There is not enough information to determine if the washing machine was installed incorrectly. Although it is important to exhibit enthusiasm about the business's products and support a customer's buying decision, Carly is not exhibiting those behaviors in the scenario presented.

Which of the following is an example of the limits to economic freedom: A. Francesca wants to start her own company, so she becomes an entrepreneur. B. Patrick decides to sell his car to his younger brother for $10,000. C. A company wants to purchase an office building, but another company purchases it. D. Shawn competes with several other applicants for the job position he wants.

C A company wants to purchase an office building, but another company purchases it. Even though private enterprise offers a great many economic freedoms, it does have certain limits. People in a private enterprise system cannot buy anything and everything that they might like to buy. One limiting factor is competition among buyers. There are always many people who want to buy the same things. A company may want to purchase an office building, but if another company purchases it first, they won't be able to buy it. When Patrick sells his car to his younger brother, he's using his freedom to own, use, buy, and sell private property. When Francesca starts her own company, she's using her freedom to choose. When Shawn competes with several other applicants for the job position he wants, he's using his freedom to compete.

Which of the following is a proactive way for an employee to cope with risks associated with job burnout: A. Focus on a few repetitive tasks C. Ask for new duties or responsibilities B. Work longer hours to improve performance D. Reorganize his/her work space

C Ask for new duties or responsibilities. Burnout is a type of mental, physical, or emotional exhaustion that results from long-term stress. Many factors can lead to burnout in the workplace, including unrealistic deadlines, ongoing long work hours, and task monotony. Monotony involves performing the same task repeatedly, which often leads to boredom, indifference, and a lack of motivation. When workers lack a variety of challenging tasks or assignments, they are more likely to suffer from job burnout. Employees can be proactive in reducing or preventing burnout by asking their managers for new duties or responsibilities, which may give them some variety to break up the monotonous tasks. Reorganizing one's work space is not likely to relieve burnout.

Which of the following are examples of ownership investments: A. Stocks and bonds C. Collectibles and real estate B. Savings accounts and stocks D. Certificates of deposit and bond

C Collectibles and real estate. Ownership investments are those in which an individual purchases a portion or all of an item. Collectibles (e.g., coins and antiques), real estate (e.g., buildings and land), and stocks (shares of a corporation) are types of ownership investments. With a lending investment, you allow someone to borrow your money for a period of time. In return, you earn a fee or interest on the amount that you lend. Examples of lending investments are savings accounts, money market accounts, certificates of deposit, and bonds.

Companies are required to manage financial information in specific ways to A. prioritize information in order of importance. C. comply with government regulations. B. enable employees to work remotely. D. lessen the effects of information overload

C Comply with government regulations. Governments regulate the ways in which companies record, maintain, and store various types of business information. For example, in the United States, corporations must comply with the laws detailed in the Sarbanes-Oxley Act of 2002. These laws were put in place to increase transparency and reduce questionable recordkeeping practices related to business financial information. If companies do not comply with these rules, they may be subject to fines and other legal repercussions. Working remoting, prioritizing the information, and lessening the effects of information overload are not primary reasons why businesses are required to manage financial information in specific ways.

Chad is buying a new car. Although the first car is a great deal and a more practical choice, he just loves the look of the second car. As a result, he decides to purchase the second car. His decision is based on which of the following internal factors: A. Framing C. Emotion B. Experience D. Insight or intuition

C Emotion. Chad feels strongly about the second car, so his decision making is influenced by his emotion. Chad isn't influenced by experience because he hasn't encountered this particular option before. Framing is an external factor that refers to the way an option is presented. Chad isn't being influenced by insight or intuition because he doesn't have a gut feeling that the second car is better. In fact, he knows that the first car is a much better buy, but he decides to go with the second car anyway.

Every year, Krueger Industries pays $150 to the government to renew its operating license. This is an example of a(n) A. semi-variable expense. C. fixed cost. B. variable cost. D. unaccountable expense.

C Fixed cost. To remain competitive and profitable, businesses need to monitor and control their operating costs. Fixed costs are expenses that are not affected by changes in production or sales volume. Operating licenses, rent, and salaries are examples of fixed costs. Variable costs are business expenses that change according to changes in sales volume. The cost of goods sold is a variable cost. Semivariable expenses are business costs that vary to some extent in response to sales. Telephone service is a semi-variable cost because the business pays a set amount for the service each month and incurs other charges that vary per month, such as fees for long-distance calls. An operating license is a business cost that the business can track and keep a record of; therefore, it is an accountable expense

Employees from different departments participate in a group to solve problems related the company's production processes. This is an example of a(n) A. standing committee. C. quality circle. B. short-term committee. D. product team.

C Quality circle. A quality circle is a problem-solving group of coworkers who are given work situations or problems to study and discuss in order to recommend solutions to management. A standing committee works together for a common purpose over a long period of time (e.g., three years). A short-term committee has an immediate goal, such as planning a social event for employees. A product team consists of individuals who work together to develop, improve, and/or market a product.

When writing a letter of application for a job, you should A. provide detailed information about your work experience. B. close the letter by asking about the company's pay and benefits. C. highlight the skills that you have that match the employer's needs. D. use a standard format to make it easier to apply for a variety of jobs.

C Highlight the skills that you have that match the employer's needs. The purpose of a letter of application or cover letter is to introduce yourself, indicate the job for which you are applying, and provide information that will encourage the recruiter to read your résumé. When writing the letter, you should highlight the skills that you have that will match the employer's needs. This shows that you have the ability to perform the job. Also, you should highlight the achievements that you have accomplished that might benefit the business if it hires you. Discussions regarding pay and benefits should occur after the interview process, when the business is ready to extend a job offer to you. You should include detailed information about your work experience in your résumé and on your job application form. You should avoid using a "standard" cover letter for each job that you apply for. Instead, personalize the letter and indicate how you can make a positive contribution to that particular company.

Madelyn works in the marketing department at Lieber Industries. She often works on projects with employees who work in the product development, finance, and purchasing departments. What type of organizational structure does Lieber Industries have? A. Functional C. Matrix B. Divisional D. Proprietary

C Matrix. The functional organizational structure includes traditional departments such as marketing, product development, purchasing, finance, human resources, etc. The divisional organizational structure is separated by divisions, such as product or process. The matrix organizational structure is a combination of the functional and divisional organizational structures. This structure enables the organization to make the best use of its available talent and resources by placing employees in the appropriate departments and teams and re-assigning them as required, as in Madelyn's situation. Proprietary is not a type of organizational structure.

Which of the following is the most businesslike way of placing a telephone caller on hold: A. Can you hold on for a few minutes? B. Please hold until Ms. Jacobs is available. C. May I put you on hold for a moment, Mr. Wilkins? D. That line is busy right now. Please hold.

C May I put you on hold for a moment, Mr. Wilkins? Before placing a caller on hold, it is polite to ask him/her if s/he minds holding. If the call taker knows who is calling, it is polite to refer to her/him by name. If time is an issue, the caller may instead want to leave a message with the call taker or request to leave a voicemail message for the intended message receiver. Call takers should not leave callers on hold for a long time—only a minute or two—without reconnecting with the caller to determine if s/he would like to leave a message. It is rude to tell the caller to hold because this does not give the caller an option to leave a message.

When you keep your workspace organized, you are less likely to A. forget important phone numbers. C. misplace important documents. B. misuse office equipment. D. discard unnecessary paperwork.

C Misplace important documents. Maintaining files in an systematic way helps you keep reports, forms, notes, and other documents in a particular location. By keeping files and documents in a specfic order, you are less likely to misplace important information. It also enables you to quickly access the documents when needed because they are always in the same place. To maintain an organized workspace, you should periodically discard papers that you don't need anymore. Maintaining an organized workspace does not prevent the misuse of office equipment. Forgetting or remembering telephone numbers is a cognitive ability and is not directly impacted by how well your work space is organized.

Which of the following is an example of a labor-intensive conversion process: A. Operating an automated car wash C. Painting an office building B. Watching an informational video D. Drinking a glass of milk

C Painting an office building. During the conversion process, inputs are used to create outputs or products. Labor-intensive conversion processes rely heavily on the skills or actions of workers. Painting an office building requires individuals to perform manual labor to complete their work. On the other hand, capital intensive conversion processes rely more on equipment to create outputs. For example, an automatic car wash facility involves moving the car through a series of machines that soap, rinse, wax, and dry the car. Watching an informational video and drinking a glass of milk are examples of product consumption.

Consumers make buying decisions based on A. laws. C. perception. B. technical support. D. objective realit

C Perception. Consumers make buying decisions based on perception rather than on objective (factual) reality. This is why marketers try so hard to influence perception. Consumers do not tend to make buying decisions based on technical support or laws.

Three weeks ago, Mrs. Anderson ordered a blue sweater for her niece's birthday, which was last Tuesday. When the sweater arrived yesterday, Mrs. Anderson called the store to communicate her dissatisfaction with the business. Mrs. Anderson told the store's customer-service representative that she wanted to return the sweater because her order did not arrive on time, so she had to buy another gift for her niece's birthday party. Mrs. Anderson's complaint involved A. the shipment of an incorrect item. C. poor delivery service. B. undisclosed service charges. D. damaged merchandise.

C Poor delivery service. Customers often complain when their orders do not arrive when they want or need them. Many situations can cause late deliveries—backorders, slow order cycles, and transportation issues. In the scenario described, Mrs. Anderson did not indicate that she received incorrect or damaged merchandise or that she was billed for undisclosed service charges.

Deanna just finished writing an article that will be published in an industry-related magazine. Before she submits the article to the publisher, Deanna should A. determine if the topic will be of interest to the audience. B. develop a comprehensive outline of key points. C. proofread it and correct grammatical errors. D. prepare the table of contents and a glossary of terms.

C Proofread it and correct grammatical errors. Written work that contains errors is unprofessional and hurts the credibility of the writer. Therefore, Deanna needs to proofread her work to correct grammar, spelling, and punctuation errors before she sends the article to the publisher. In addition, Deanna might ask another person to review her article to look for errors that she did not find. Deanna should determine if the topic will interest the audience and develop an outline before she starts writing her article. Magazine articles do not include a table of contents or a glossary of terms.

Which of the following is categorized as owner's equity on a company's balance sheet: A. Inventory C. Retained earnings B. Accounts receivable D. Capital equipment

C Retained earnings. A balance sheet is a financial statement that captures the financial condition of the business at that particular moment. Owner's equity is the amount an owner has invested in the business plus or minus profits and losses. Retained earnings are a component of owner's equity because they are the income left after paying dividends to stockholders. Inventory and accounts receivable are categorized as current or short-term assets on a balance sheet because the levels of inventory and income from sales tend to fluctuate. Capital equipment, buildings, and vehicles are listed as long-term assets on a balance sheet because they are assets that generate revenue for more than a year.

As Olivia starts her new job today, she is calm and feels that she will be able to handle her new responsibilities and challenges. Olivia is exhibiting A. self-reliance. C. self-confidence. B. self-importance. D. self-motivation.

C Self-confidence. Self-confidence is a positive belief in your own talents, skills, and objectives. When a person believes that s/he has the skills to handle changes and new situations (e.g., a new job), s/he has self-confidence. Self-importance is an exaggerated sense of one's own value or merit. Self-reliance is being able to depend on one's own abilities and resources to do something rather than depending on others' powers and resources. Self-motivation is an inner drive to complete certain tasks and accomplish specific goals

Which of the following is a true statement about writing professional email messages: A. Because email is an informal communication method, greetings are unnecessary. B. It is appropriate to use all capital letters when the message is urgent. C. The subject line should concisely describe the topic of the message. D. It is acceptable to use texting acronyms because most business people understand them.

C The subject line should concisely describe the topic of the message. Because businesspeople typically receive many email messages every day, it is important to make sure that the message's subject line contains concise information about the message's content. The subject line is the first thing that message recipients see to determine if the message is important enough to read. To convey a sense of professionalism, it is essential to use correct spelling, grammar, and punctuation when writing any type of business correspondence; therefore, message senders should avoid using texting "language" or acronyms (e.g., writing "IMHO" instead of "in my humble opinion.") in email messages. It is polite to open an email message with a greeting. Message senders should avoid using all capital letters in an email message because doing so suggests anger or hostility

To avoid resentment and bad feelings among coworkers, employees should not discuss A. their workloads. C. their salaries. B. company profits. D. vacation policies.

C Their salaries. Employees who discuss their salaries might become upset if they find out that coworkers make more money than they do. Discussing salaries can result in bad feelings, resentment, low morale, and reduced productivity in the workplace, so it is best to avoid sharing this type of personal information. Company profits, workloads, and vacation policies are topics that are less likely to create resentment and bad feelings among coworkers

0. What type of graphic is best to use when you want to illustrate a sequence of events in chronological order? A. Venn diagram C. Timeline B. Pie chart D. Bar chart

C Timeline. A timeline is a graphic depiction of events that happen within a period of time and are arranged in chronological order. Many software programs provide attractive templates that enable you to illustrate events on a timeline. A pie chart shows the parts of a whole. A Venn diagram indicates the overlapping relationships among finite sets of data. A bar chart compares two or more variables in a graphical format.

Landon recently joined his community's young professionals club to connect with other businesspeople. During the organization's last meeting, Landon spoke with Leah, who works for the ChemLab Company. Leah told Landon about a position in the company's inventory-control department and encouraged him to check it out. In this situation, Landon is engaging in __________ activities. A. interviewing C. selling B. social-media D. business-networking

D Business-networking. The primary reason that business people engage in business-networking activities is to connect with individuals who might help them to accomplish career goals. Joining a business or professional organization provides business people with opportunities to meet other business professionals who can help them find jobs. Social media (e.g., Facebook and Twitter) is a channel of communication that enables individuals to connect with others, including friends and family, for social purposes. In the situation described, Landon is not engaging in selling or interviewing activities.

What should a successful brand promise be able to do? A. Convey a high-quality image C. Customize the product for each customer B. Clarify the company's processes D. Communicate an appealing benefit

D Communicate an appealing benefit. A brand promise is a business's agreement (spoken or unspoken) with customers that it will consistently meet their expectations and deliver on its brand characteristics and values. Before the business can deliver on its brand promise, it must have a product that offers an appealing benefit—one that persuades the target market to buy. For example, FedEx provides delivery services. The company's brand promise focuses on reliability. Therefore, FedEx promises to get its customers' packages to their destinations in a reliable manner—safely, quickly, and courteously—every time, which is an appealing benefit for most customers. A procedure is the step-by-step process that a person follows when performing a specific task. Customization involves making the product unique for each customer. Customization, a high-quality image, and the process by which the business delivers its products may be elements of a company's brand promise.

. What type of law focuses on protecting natural resources? A. Securities C. Cyber B. Constitutional D. Environmental

D Environmental. The purpose of environmental law is to protect natural resources—air, water, soil, wildlife, etc. Constitutional law is a category of law that involves implementing, protecting, and interpreting the foundation of law (supreme law) for the nation (e.g., the United States Constitution and the Constitution of Canada). Cyber law focuses on rules about the Internet and computer use. Securities law is a category of law that regulates the issuance and use of financial instruments such as banknotes, stocks, bonds, etc.

What often helps researchers quickly locate relevant information in a long research report? A. Reading the bibliography C. Developing the appendices B. Evaluating the author's expertise D. Examining the table of contents

D Examining the table of contents. A table of contents, which lists the main sections of the report with their page numbers, is often included at the beginning of a long report. By examining the table of contents, the audience can quickly locate the information that they want to read. The bibliography lists the sources used to develop the report. Evaluating the author's expertise may provide insight about the credibility of the report's information. The report writer develops the appendices, which provide supplemental or supporting information for the report's content.

To gather information for an environmental scan, Greenburg Industries gathers 12 of its loyal customers to get insight about their needs, wants, and preferences. What method is the business using to obtain information? A. Conference call C. Online survey B. Personal interview D. Focus group

D Focus group. A focus group is an effective tool for gathering external information. When a business forms a focus group, it gathers individuals together to discuss a specific topic. Depending on the topic, the dicussion can provide the business with insight about industry trends; product wants, needs, and preferences; issues with service; etc. The information can help the business develop strategies to adapt to environmental changes. An interview involves a researcher asking one person in-depth questions to obtain information. An online survey uses web-based technology (e.g., email, web-based survey service) to ask questions to learn a sample group's opinions and the reasons behind those opinions. Depending on the purpose or nature of the focus group, the group may meet in a variety of ways—in person, via webcam, via telephone conference call, etc. There is not enough information provided to determine if the business is holding the focus group via telephone conferencing.

A pizza place decides to offer a new gluten-free pizza crust to appeal to customers who can't eat gluten. Which type of utility has the restaurant created? A. Possession C. Place B. Time D. Form

D Form. Form utility is created when a business alters or changes the shape or form of a product to make it more useful or satisfying for consumers. This can be done by adding a new "feature" to a product, such as a gluten-free crust that will appeal to gluten-intolerant people. Time utility is created when products are available at the time they are desired. Place utility exists when goods or services are available at the place where they are needed or wanted by customers. Possession utility is created when ownership of a product is transferred from the seller to the person or business that will use the good or service.

By reading trade journals, business professionals can learn about A. organizational sales performance. C. internal policies. B. corporate changes. D. industry trends.

D Industry trends. Trends are the direction in which things are moving. Business people can keep up with the trends and changes that affect their professions and/or industries by reading trade journals. By keeping up with trends, business people can help their employers develop strategies to keep up with the dynamic marketplace. Trends and changes affect many types of business structures—corporations, partnerships, LLCs, sole proprietorship, etc. Employees learn about internal policies by reading their employee handbooks or company newsletters rather than a trade journal. Employees can learn about the organization's sales performance by reviewing the company's internal sales reports.

3. To sell sweatshirts, jackets, and T-shirts imprinted with ABC University's logo, the Collegiate Sportswear Company pays royalties to the university. What type of business ownership does this situation exemplify? A. General partnership C. Multi-level marketing B. Business-format franchise D. Licensing agreemen

D Licensing agreement. A licensing agreement is a business structure that requires the authorization or permission from an owner to another entity to use trademarked, copyrighted (e.g., logo, name), or patented material for a specific activity during a specific time period for the profit of both parties. In the example, the sportswear company pays the university to use its logo, so the business arrangement involves a licensing agreement. A business-format franchise is a franchise arrangement in which the franchisee must operate under the trade name of the parent company that provides continuous assistance in setting up and operating the business. Multi-level marketing refers to a business, usually well known, that pays commissions on sales earned to people at two or more levels. The sales representatives usually work independently of the company. A general partnership is a form of business ownership in which two or more individuals own the business, and each partner shares responsibility for the business's liabilities.

When a business covers its windows with plywood to protect them from approaching hurricane winds, it is ___________ risk. A. transferring C. avoiding B. accepting D. mitigating

D Mitigating. Mitigation involves reducing or controlling the impact of a risk if it occurs. In the question stem, the business takes steps to reduce the risk of broken windows due to an approaching hurricane by protecting the windows with plywood. If the hurricane winds hit the business facility the plywood will break the impact of the wind, lowering the risk of window damage. Risk acceptance or retention involves accepting the consequences of the risk because the potential payoff is higher than the losses. Avoidance is a risk-response strategy that involves choosing not to do something because the risk of loss is high. Transference is a risk-response strategy that involves moving the impact of a risk to someone or something else. Common transference devices include insurance, contracts, warranties, and guarantees.

The primary purpose of groupware computer applications is to enable multiple employees the ability to A. create budgets for different business functions. B. develop different formulas to manipulate financial data. C. save documents in a variety of versions and formats. D. obtain the same information from a central point of access.

D Obtain the same information from a central point of access. Groupware computer applications enable employees to access the same information from different locations. All of the information is stored and accessed from one location. The advantage to using groupware applications is that they enable each employee to have the necessary data to complete his/her portion of the work process or project in a timely manner. Depending on the business's needs, groupware applications may include spreadsheet functions that enable employees to develop mathematical formulas, manipulate or move financial data to other groupware applications, or create budgets. Groupware applications also may contain word processing capabilities that enable employees to save documents in a variety of versions or formats.

A business should seek legal protection for its intellectual property to discourage A. employees from creating unique processes. C. customers from filing frivolous lawsuits. B. competitors from developing new products. D. others from using it without permission.

D Others from using it without permission. Intellectual property is the intangible business assets that result from thinking processes. Inventions, written and artistic works, logos, brand names, and trade characters are examples of intellectual property. A business can discourage others from using its intellectual property without its permission by obtaining legal protection from the government. Depending on the type of intellectual property the business seeks to protect, the government can issue a copyright, patent, or trademark. If other businesses or individuals use the legally protected materials without the business's permission, the business has a better chance of winning a lawsuit. Seeking legal protection for intellectual property does not discourage competitors from developing new products, customers from filing frivolous lawsuits, or employees from creating unique processes.

To determine the amount of money that MWN Manufacturing pays its employees for working overtime, the company should review its A. vendor invoices. C. monthly sales reports. B. accounts-receivable transactions. D. payroll records.

D Payroll records. Businesses monitor many types of internal records to ensure that the business is operating effectively and efficiently. If the business wants to monitor the amount of money that it pays its employees for working overtime, it should review payroll records. By monitoring payroll records, the business may determine that it might be more cost effective to hire a new employee than to pay overtime. Accounts receivable track and process the monies flowing into the business. Sales reports provide the business with information about product movement, the performance of salespeople, etc. The accountspayable function handles vendor invoices, which provide details about the monies that the business owes others

While at work, Gabby asks Charlotte a very personal question that makes Charlotte feel very uncomfortable. In this situation, Gabby is being disrespectful of Charlotte's A. culture. C. decision. B. opinion. D. privacy.

D Privacy. People should respect other individuals' privacy at work and in their personal lives. It is inconsiderate and unprofessional to ask coworkers very personal questions at work—especially if the coworkers are not close friends. Charlotte is not expressing an opinion (belief) or communicating a decision that she has made. Although culture can affect an individual's willingness to share personal information with others, there is not enough information provided to determine if cultural factors make Charlotte uncomfortable with Gabby's question.

Because Trevor works with woodworking machinery that often releases debris into the air, his employer requires him to wear __________ when he is operating the equipment. A. steel-toed boots C. a heat-resistent apron B. loose clothing D. protective eye goggles

D Protective eye goggles. When operating certain types of equipment, businesses require their employees to wear specific gear to reduce the risk of injury. Woodworking machinery, such as an electric saw, releases wood chips and debris in the air, which can get into an employee's eyes. To protect his eyes, Trevor must wear protective goggles. Loose clothing could be a hazard if it gets caught in the machinery. Employees may be required to wear heat-resistent aprons if they work with fire or heat to produce goods such as glass and steel. Employees are often required to wear steel-toed boots when working around warehouse equipment and heavy objects to protect their feet in case something falls on them

It is important for a company to develop a budget because it A. serves as the company's business plan for success. B. ensures that the company will succeed in the marketplace. C. focuses on the company's income rather than its expenses. D. provides the company with benchmarks for performance.

D Provides the company with benchmarks for performance. A budget is an estimate of income and expenses for a specific time period. Budgets help evaluate a company's long- and short-term performance because the estimated income and expenses serve as benchmarks. By comparing the benchmarks or estimates with the actual income and expenses realized, the business can evaluate if it is performing as well as it expected. An accurate budget guides organizational decision making, which improves the company's chances of success; however, a budget cannot ensure that the company will succeed in the marketplace. A budget is a component of a company's business plan, which is a company's blueprint for success. It shows how the company works now and how it is intended to work in the future.

While conducting online research for a report, Pete reads an article written by a person who is not a wellknown expert in the field. What is an efficient way for Pete to verify that the information in the article is accurate? A. Determine if the opinions expressed in the article are logical. B. Interview an expert in the field to verify the information. C. Compare notes with a friend or coworker. D. Review the information in the author's list of citations.

D Review the information in the author's list of citations. Often, authors will list their citations (sources) at the end of their articles. Reviewing these sources (e.g., articles, journals, and newsletters) provide a good starting point when determining if the article in question contains accurate information. When other articles from reputable sources confirm the information from the original article, the information in the original article is more likely to be reliable. Pete may not know an expert familiar with the research topic to interview. There is not enough information provided to determine if Pete's friends or coworkers know anything about the research topic. An author may use logic to express his/her opinion; however, a logical argument does not make something true.

Matthew sends several emails to his coworkers, customers, and vendors every day. What email application will save Matthew time by automatically placing his name, business address, and phone number at the end of each message? A. Clipboard C. Attachment B. Subject D. Signature

D Signature. The signature application enables the computer user to include his/her name, title, company, and contact information in each email. To set up the signature, the computer user clicks on the "signature" application and fills out all of the information that s/he wants to include in the signature block. When the computer user opens a new email message to write, his/her signature and contact information automatically appear. This saves time because the computer user does not need to add contact information every time s/he writes and sends an email message. The subject is in the email header and describes the topic of the email message. Attachment applications enable computer users to add documents and graphics to send with the email message. The Clipboard holds text and data that the computer user cuts or copies from other documents until the computer user places them in the body of the email message.

During a business negotiation, John sat quietly and nodded his head as he listened to Liza, but he did not respond to Liza's last comment. What negotiation strategy did John use in this situation? A. Bargaining C. Limited authority B. Good cop/Bad cop D. Silence

D Silence. Silence is negotiating strategy that involves listening but not speaking. This technique is often used when a situation becomes emotionally heated or when the other party does not like a specific message. Because people are often uncomfortable with silence, the other person (Liza) might revise a previous statement to sound more reasonable. When this happens, the negotiating power shifts to the "silent" negotiator (John). Good cop/Bad cop is a negotiating strategy involving at least two people on one side of the negotiation. When using this strategy, one person is reasonable and agrees with the opposing party, while the other person is unreasonable and disagrees with the opposing party. Limited authority is a negotiating strategy in which one person claims that s/he does not have the authority to make a decision and must consult another person who is not present during the negotiation. Bargaining is a negotiating technique that involves giving another person something s/he wants and receiving something desired in return.

If an individual is willing to help others, s/he is exhibiting a characteristic of emotional intelligence that relates to A. relationship management. C. self-management. B. self-awareness. D. social awareness.

D Social awareness. Emotional intelligence is the ability to recognize and manage emotions in ourselves and in others. Based on Daniel Goleman's model of emotional intelligence, the concept of emotional intelligence can be divided into four categories. Social awareness involves the ability to know and understand the emotions of others. Characteristics of individuals with a high level of social awareness include the ability to express empathy and the willingness to help or be of service to others. Also, these individuals tend to have organizational awareness, which means that they have the ability to see the larger picture in the organization. Self-awareness involves recognizing and knowing your own emotions. Self-management involves the ability to manage your emotions. Relationship management is the ability to manage the emotions of others.

Which of the following is true of income statements: A. They are also known as ratio statements. B. They forecast the business's future. C. They are used primarily by a business's customers. D. They typically have at least five categories.

D They typically have at least five categories. Although some income statements include other categories as well, they should all have at least five basic categories. These categories include revenue, cost of goods sold/cost of sales, gross profit, operating expenses, and net income/profit. Income statements summarize a business's income and expenses over a period of time, and while this information can be used to make decisions about the future, it doesn't forecast a business's future. Income statements are analyzed primarily by a business's top executives and managers, creditors, and investors, but not customers. Ratio statement is not another name for income statements. Income statements are sometimes referred to as earnings statements, operating statements, and profit-and-loss statements.