Business Final

_____ are organizations formed by individuals or businesses with similar interests to achieve greater economies of scale and economic power through collective ownership.

Cooperatives

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

Corporate philanthropy

What type of business organization generates the most total sales?

Corporation

With its ease of registration and pro-corporate policies, _____ is called the "state of incorporation." About half of the Fortune 500 companies are incorporated there

Delaware

_____ is the process of guiding and motivating others toward the achievement of organizational goals.

Leadership

_____ managers are the managers concerned with implementing the plans and policies of top managers and supervising lower-level managers.

Middle

Social responsibility should extend beyond the shareholders to include

all of the above

An industry in which a few firms produce most or all of the output of a product and in which large amounts of capital are needed is called a(n):

oligopoly

Which of the following is an example of a disadvantage associated with a partnership?

unlimited liability

A business plan:

describes in detail the idea for the new business and how it will be carried out

Top management usually performs all of the following tasks EXCEPT:

direct workers on the assembly line

Double taxation in a corporation means:

earnings of the corporation and dividends of the shareholders both are taxed

_____ is at the core of most business failures.

Inadequate planning

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

Influential RATIONALE: Reward power is power derived from an individual's control over rewards

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

Intrapreneurs

_____ is the process of arranging the structures and relationships of human and material resources to carry out an organization's plans.

Organizing

Which of the following statements about a general partnership is true?

Partners in a general partnership co-own the company's assets.

To avoid double taxation, a new entrepreneur may elect to organize as a(n)

S corporation

_____ are all the individuals or groups to whom a business has a responsibility

Stakeholders

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

Venture capital

Which of the following businesses provides its customers with a service?

a law office

Croutakie seemed like a great idea. Chef Leo Nyami and Sara Rice decided to take advantage of the popularity of shitake mushrooms and create some shitake mushrooms products that could be sold to restaurant patrons and other gourmets through their new company. The mushrooms are expensive, and there were other unexpected financial problems, so Nyami and Rice asked Bill Ng to become a limited partner. This means that Ng:

agrees not to participate in day-to-day management of the firm

A well-written business plan should contain:

all of the above

Andy Yocom was looking to start a small business so he could be his own boss. While golfing one day, he saw prime advertising space on the flags on the course. He has decided to call his new venture Invision Golf Group Inc. What should he include in his business plan?

all of the above

Franchisors in foreign countries must be aware of:

all of the above

Social responsibility should extend beyond the shareholders to include:

all of the above

Which of the following is a characteristic of pure competition?

all of the above

Which of the following is an example of a business?

all of the above

Which of the following would be stakeholders for a manufacturer of agricultural pesticides?

all of the above

Intrapreneurs:

are accurately described by all of the above

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

mission statement

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

mission statement

Which of the following elements does NOT typically appear in a well-prepared business plan?

names of all employees

Which one characteristic most clearly defines a market structure?

the number of suppliers in a market

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

the willingness to be a follower rather than a leader

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

economic

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

economic

The person who takes the risk of starting and managing a business to make a profit is called a(n):

entrepreneur

Once the business plan is finished, the next step is to:

find financing for the business

The headquarters, seller, and supplier of the service or method of operation of a franchise is called the:

franchisor

Croutakie seemed like a great idea. Chef Leo Nyami and Sara Rice decided to take advantage of the popularity of shitake mushrooms and create some shitake mushrooms products that could be sold to restaurant patrons and other gourmets through their new company. Nyami and Rice have recently abandoned their business because they could not pay its outstanding business debts. Since Nyami and Rice are both liable for the debts, their business was a(n):

general partnership

Back in the late 19th century, the Carnegie Steel company controlled not only the mills where the steel was manufactured, but also the mines where the iron ore was extracted, the coal mines that supplied the coal, the ships that transported the iron ore and the railroads that transported the coal to the factory. Through several _____ mergers the steel company gained control of the various resources it needed to product steel.

vertical

_____ planning is short-range, detailed planning that is based on long-range planning. It typically has a time frame that is less than one year long.

Tactical

Articles of incorporation do NOT include

a list of all stockholders' names

The government does not consider full employment to mean 100 percent of its citizens are employed because:

all of the above conditions can and do exist

Social investing:

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

In buying an existing business, the prospective buyer should ask questions about the operation of the business. Which of the following would be an appropriate question to ask?

All of the above are appropriate questions to ask.

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

All of the above are examples of unethical business activities.

_____ are individual investors or groups of experienced investors who provide funding for start-up businesses.

Angel investors

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

micropreneurs

A firm's stockholders have the right to do all of the following EXCEPT:

get discounts on the company's product or service

The key element in socialism is

governmental control

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

growth-oriented entrepreneur

North American Van Lines and Allied Van Lines combined in a _____ merger that will create the world's largest moving company. Prior to the merger, North American was the leading company in moving high-end merchandise such as computer and hospital equipment, while Allied specialized in households.

horizontal

One of the keys to ethical business behavior is

how the company's top management conducts themselves

Dewayne Gibbons of Burger King decided to introduce a new sliced chicken sandwich without consulting any of his subordinates or the franchise. Managers who use this style of decision making exhibit the _____ style of leadership.

autocratic RATIONALE: A democratic leader solicits inputs from all members of the group and then allows members to make the final decision through a vote.

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

baby boomers

Which of the following businesses provides its customers with a good?

bicycle manufacturer

Suzanne Pogell wanted to learn to sail, but she could find no one to teach her because men were the ones who sailed, and women were their crew. She finally did convince someone to teach her to sail, and after mastering sailing, she started an all-woman sailing school called Womanship as a sole proprietorship. When she dies, the:

business dies with her

Which of the following provides the legal and managerial guidelines for operating the firm?

bylaws

Individual ownership of property is a key element in

capitalism

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

classic

The _____ for the Music Teacher's National Associations establishes a standard of conduct and recommends a set of responsibilities teachers should have toward students, colleagues and the public. These guidelines assist the professional music teacher in gaining the respect of peers and avoiding conflicts and complaints with students and others. It points out to members what are and what are not considered fair, honest and reasonable practice when dealing with students, colleagues and the public, it provides guidance for such aspects as advertising practices, appropriate relationships, and personal and professional integrity.

code of ethics

Utilitarianism

is difficult to implement because it is hard to tell how one decision will impact a large number of people

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

conglomerate

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

corporate philanthropy

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

corporate philanthropy

Venture capital:

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

A key element in capitalism is:

individual ownership of property

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

intrapreneur

Stuart McFarland is sales manager for a hotel. His job entails leading, motivating, and communicating with employees. McFarland's main management activity is:

leadership

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

leadership

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

legal but irresponsible

Two co-workers at Nortel came up with an idea for renting software over the Internet. Nortel's top management liked the idea and set up a special division called Channelware devoted to taking the idea and making a new product. The ability of the Nortel top management to create this new division and assign employees to it is a result of their having _____ power.

legitimate

As one of the factors of production, natural resources includes all of the following EXCEPT:

machinery

The combination of two companies that join to form one company is called a:

merger

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

the business owner and his or her family and friends

For most agricultural products, farmers produce homogeneous products, sell them to a common market, and generally cannot affect prices greatly. This is an example of which kind of market structure?

perfect competition

A common use of business plans is to:

persuade lenders and investors to finance the venture

During a two-month period Lladro Comercial, S.A., the manufacturer of handcrafted porcelains, donated ten percent of its retail profits to the Susan G. Komen Breast Cancer Foundation. The action was legal and ethical and allowed the company to still be profitable. According to the pyramid of corporate social responsibility, it was acting at the _____ responsibilities level.

philanthropic

Manila Water, the provider of the water and sewerage services in the capital of the Philippines has purchased the government owned water and sewerage system for the entire country. It promises to make the nation's water and sewerage system run as efficiently and profitably as the one it operates in Manila. The development, maintenance, and allocation of resources to achieve its goal will require:

planning

The main incentive in capitalism is

profit

Angel investors:

provide funding for start-up businesses

The _____ GDP takes inflation into account and uses adjusted market prices

real

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

referent

Strategic giving

refers to the practice of tying philanthropy closely to the corporation's mission or goals

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

reward

Which of the following is the best example of a good?

the birthday candles you purchased to go on your sister's birthday cake

A corporation's board of directors:

sets major corporate goals and policies

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

social investing

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

social responsibility

The form of business ownership that is easiest to dissolve is the:

sole proprietorship

For Lladro Comercial, S.A., the manufacturer of handcrafted porcelains, its employees, suppliers of the paints used to decorate its porcelains, retailers of its products, and people who benefit from its philanthropy are all

stakeholders

For Lladro Comercial, S.A., the manufacturer of handcrafted porcelains, its employees, suppliers of the paints used to decorate its porcelains, retailers of its products, and people who benefit from its philanthropy are all:

stakeholders

The _____ of any country is measured by the output of goods and services people can buy with the money they have.

standard of living

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

strategic giving

Pele Arnaz is a plant foreman for a generator manufacturer. He spends his day carrying out operational plans for the ongoing daily activities of the plant. Arnaz is a _____ manager.

supervisory

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

supervisory

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

supervisory, middle, and top

The world's largest bank, Deutsche Bank, set as its objective to make its brand name as recognizable in the United States as FedEx and Visa are over the next ten years. The implementation of this long-range plan would require _____ planning.

tactical