Business midterm Ch. 1-13

d. unlimited liability.

A key disadvantage of a general partnership is:

d. partnership.

A legal form of business with two or more owners is a(n):

e. general; limited

A ______ partner has responsibility or liability for losses beyond their investment, but a ______ partner only has liability for the amount they invest.

a. a document issued by a transport carrier to an exporter to prove that merchandise has been shipped.

A bill of lading is defined as:

Marketing Concept

A business philosophy that a firm should provide goods and services that satisfy customers' needs through a coordinated set of activities that allow the firm to achieve its objectives is most often called the .

departmentalization by location

A company that groups its activities according to the defined geographic area in which they are performed—whether that is a city block, nation, or continent—has .

personal selling

A company that uses normally has a large sales force that provides one-on-one communication with the targeted buyer and provides immediate feedback regarding the preferences of the targeted purchaser.

Policies and strategies

A compensation system is a firm's that determine employee compensation.

e. licensing.

A contractual agreement in which one firm permits another to produce and market its product and use its brand name in return for a royalty or other compensation is known as:

e. import duty (tariff)

A country may attempt to protect its own domestic industries by imposing a(n) _____, a type of tax, on imported products.

e. the country is receiving more money from trade with foreign countries than it is paying out.

A country with a trade surplus generally has a favorable balance of payments, which means:

c. a frozen investment

A disadvantage of a partnership where remaining partners are unwilling to buy the share of a partner who retires can be referred to as _______________.

b. multinational enterprise.

A firm that operates on a worldwide scale without ties to any specific nation or region is known as a:

e. other franchisee's employees and management.

A franchisee acquires rights to all of the following, except:

supermarket

A is a large self-service store that caters to households and is known for selling a variety of items including fresh, frozen, and processed foods, paper products, cleaning supplies, housewares, toiletries, stationery, books and magazines, plants and flowers, and other items in a one-stop shopping for household needs format.

c. standard of living.

A loose, subjective measure of how well off an individual or a society is, mainly in terms of want satisfaction through goods and services is known as:

e. specialization.

A manufacturing technique, separating processes into distinct tasks to improve productivity, is called:

c. Reseller market

A market is a group of individuals or organizations, or both, that need products in a given category and that have the ability, willingness, and authority to purchase them. Which of the following is the name given to the market for intermediaries who buy finished products and sell them for a profit?

b. horizontal merger.

A merger of two firms in the same industry that allows the companies to diversify or expand their products is a(n):

d. Expectancy theory

A modern motivational theory based on the assumption that motivation depends on how much an employee wants something and on how likely the employee thinks he or she will receive it, requires employees to balance the value they place on different aspects of their life against the goal they seek. Balancing is required because of the possibility of any action leading to varied outcomes. What theory is this?

a. Job redesign

A motivational method in which the work is restructured to better match the worker could accomplish its goal by using work teams or establishing closer customer relationships. What is the name of this motivational method?

d. joint venture.

A partnership established for a specific project or for a limited time (for example a U.S. company joining with a foreign firm to enter new markets) is called a(n):

d. franchisee.

A person who buys a franchise is known as the:

departmentalization by product

A store with different sections such as household appliances, bed and bath, clothing, tools, furniture, jewelry, perfume, and cosmetics will often assign employees to work exclusively within one of those sections. In doing so the management is engaging in .

b. factory system.

A system of manufacturing where all the materials, machinery, and workers required to manufacture a product are assembled in one place is known as a:

cross-functional team

A team consists of employees from different departments and different specialties that are brought together to complete a project that requires a diversity of skills. It is frequently managed from within the team itself.

b. closed; open

A(n) _______ corporation is a corporation whose stock is owned by relatively few people and is not sold to the general public; while, a(n) _______ corporation is one whose stock can be bought and sold by any individual.

product line

A(n) is a group of similar products that differ only in relatively minor characteristics.

operations manager

A(n) manages the systems that convert resources into goods and services.

judgmental method

A(n) of appraisal is used when a manager estimates the employee's performance level using a ranking.

c. The IMF predicts a gradual global growth in both advanced and developing countries.

According to the International Monetary Fund (IMF), what are the world economic growth projections?

c. more than half

According to the U.S. Office of Management and Budget, __________ of the major technological advances of the 20th century originated with individual inventors and small companies.

a. be heard

According to the consumer bill of rights, the right to _______ assures consumers' interests will receive full consideration and appropriate action will be taken when customers complain.

c. a reclusive nature.

All of the following are factors that encourage certain people to start new businesses, except:

b. plagiarism

An issue related to fairness and honesty that involves knowingly taking the words, ideas, or original material of others without acknowledging the sources is known as ____________________.

d. Informal group

An organization is a formal structure consisting of interrelated positions. What is the name given to a group created within that organization to accomplish goals that may or may not be relevant to the organization?

b. As the price decreases, the quantity demanded increases.

As the demand curve slopes downward from left to right, this shows which of the following statements is true?

b. Requirement to purchase goods or products from the franchisor

Basic rights and obligations are delineated in a franchise agreement. Which of the following is a franchising obligation?

b. continue to produce coffee and trade it for U.S. products Brazil needs and cannot produce.

Brazil has excellent resources and expertise to farm and produce coffee beans, whereas the United States is ill-suited for the production of coffee. Brazil should:

a. Target market

Businesses need to direct their product marketing strategies to the individuals most likely to purchase it. Often marketing managers examine potential markets for their possible effects on the firm's sales, costs, and profits. Which of the following is the designation given for the group to which marketing managers direct the focus of their marketing efforts for a product?

b. Consumer buying behavior

Buying behavior may be defined as the decisions and actions of people involved in buying and using products. Which of the following is normally included as a major focus in the study of buying behavior?

d. social responsibility

Companies that contribute resources, knowledge, and products as well as money to help neighbors and others during times of crisis are demonstrating __________________.

a. Chain of command

Companies, the military, the government, and nonprofit organizations can operate because they have determined the levels of authority and reporting structure for their organizations. What is the name given to this line of authority?

a. Interest and dividend income

Consumer buying behavior is affected by the individual's buying power. Which of the following is not included in an individual's buying power?

d. six

Consumer-oriented legislation passed during the last 55 years is primarily based on _____ rights.

e. increases; decreases

Currency devaluation ___________ the cost of foreign goods and _______ the cost of domestic goods to foreign firms.

create accountability

Delegation assigns work and power to other workers as required by the centralization or decentralization of authority within the organization. What is the last step in the delegation process?

b. Departmentalization by function

Departmentalization is the grouping together of work units or departments to create manageable units. What is the name given to departmentalization of a group of employees based on them all doing the same organizational activity?

d. Theory X and theory Y

Douglas McGregor observed management's view of workers from two perspectives. In one perspective, he said managers view workers as slothful, lazy, and have no desire to work. In the other view, he said managers view workers as individuals who like to work, will work toward goals to which they are committed, and seek out and willingly accept responsibility.

maturity

During the stage of a product's life, sales increase but the rate of increase slows and eventually declines.

d. the money he or she paid for the corporation's stock.

Each corporate stockholder's financial liability is typically limited to

Hawthorne Studies

Elton Mayo conducted the at the Western Electric Company in Chicago, to determine the effects of the work environment on employee productivity.

problem-solving team

Employees from different departments within the company may be brought together temporarily in a to tackle a specific problem.

b. motivations

Employees have different _____; some are interested primarily in earning as much money as they can, while others may be spurred on by opportunities to get promoted.

b. Selecting the candidate with the most qualifications for the position

Employers engage in recruiting to find qualified applicants for open positions within the firm. Recruiting can be external—seeking candidates outside the business, or internal—seeking applicants from within the firm. Which of the following is not part of internal recruitment?

a. Job sharing

Employers may work with employees' schedules to accommodate the employees' lifestyles. What is the name given to the working arrangement in which the employer permits two employees to work less than a full-time schedule but work at the same tasks?

d. prohibiting employees from taking gratuities from customers.

Ethical misconduct can take on many forms within the business environment, including all of the following, except:

b. It will be a centralized organization.

Factors that bear upon a company's organization include the external environment in which the firm operates, the nature of the decision to be made, the abilities of lower-level managers, and the firm's established practices. If a firm operates in a complex unpredictable environment with dependable lower-level managers, which of the following would be most likely true about the company?

a. communications

False and misleading advertising is an example of where _______ issues can present ethical questions.

c. Surveying potential participants

Firms use a wide variety of methods for training employees—both for initial job skill training and for continual job performance improvement. Which of the following is not important for an effective training and development program?

a. International standards

Firms use many techniques for determining the wage structure for positions within the firm. Which of the following is not normally used by firms to determine their wage structures?

e. Human resources, material resources, informational resources, and financial resources

For a business to organize and be successful, which of the following four resources must it effectively combine and use?

a. a greater chance for success.

Franchises offer people starting a business the advantage of a recognized name, management assistance, and

c. franchisee; franchise

Franchising allows a _____ the opportunity to set up a small business relatively quickly, and because of its association with an established brand, a _____ outlet often reaches the break-even point faster than an independent business would.

c. Problem-solving team

Fred Smith, CEO and founder of FedEx, once described the early days of the company, the issues they had to resolve, and the drive and determination that pushed them through the obstacles. He said there were times that the entire board of directors, which was made up of individuals with varying specialties, expertise, and skills, would come together to resolve an issue—in his case this usually meant finding a way to get shipments from one point to another by the deadline with very few resources. What kind of team did he form?

efficiency of individual workers

Frederick W. Taylor used scientific management as a means to improve .

a. Federal Trade Commission

Green marketers must ensure that their claims are backed by evidence that shows a significant environmental benefit and does not mislead consumers. If they don't, which of the following groups would likely investigate them?

d. Virtual team

HCL Technologies is a multi-national corporation providing a wide variety of technological services to business clients worldwide. In order to keep the company operating as a single entity, the CEO has created an intra-company information exchange similar to Facebook, he has a weekly newsletter posted on-line for employees, and takes input for improvements or problem solutions from any employee wherever they are located and whatever their position is. Often, when a new client needs a technological solution that cannot be solved in any one location, individuals who would like to work on the project, volunteer and communicate via a company video conferencing and information exchange site. In light of the methods used to communicate within these volunteer teams, what would the most likely designation be for these teams?

maintaining

Human resources management (HRM) is all activities involved in acquiring, , and developing an organization's human resources.

standing committee

If a city is considering building a new city office complex, it may appoint a(n) to research possible locations for the offices within the city, then to present their findings to the city manager for review and presentation to the city council. The committee would be disbanded after its assignment has been completed.

b. Task force

If a company has a major problem, what type of committee might it create to investigate the problem?

d. Line structure of management

If a company has very competent workers, a well-established set of standard operating procedures, and few expected problems, what type of management should it adopt?

service economy

In 1900 only 28 percent of American workers were employed in service firms but by the beginning of 2017 this figure had risen to 88 percent. This increase in service-related business has led to America being said to have a .

e. competition

In a capitalistic economy, _______ ensures that a firm will survive only if it serves its customers well by providing products and services that meet needs.

discounting

In business, producers and sellers often engage in to provide benefits to the specific type of business buyer. Benefits may include a lower cost for large purchases, a lower cost for prompt payment, and lower prices for seasonal purchases.

c. two

In general, economists define a recession as _______ or more consecutive three-month periods of decline in a country's GDP.

D. Conceptual Skills

In order to perform management functions, a manager must possess the ability to think in abstract terms in order to see the "big picture." This skill is known as a(n):

b. Creative salesperson

In the sales process, sales support personnel aid in selling but are more involved in locating prospects, educating customers, building goodwill for the firm, and providing follow-up services. Which of the following is not normally considered a common category of support personnel?

persuasive

Integrated marketing communications coordinates the promotional efforts of an organization to ensure maximum informational and impact on customers is achieved.

d. operational

Jake works in production for his company. Each week his work group is assigned a production quota to ensure enough product is available to meet the goals of the company. In this case, the production quota is an example of a(n) _____ plan.

a. how small business fuels job creation and innovation.

John had a good idea for a candy manufacturing business. He decided that he wanted to take the risk, become an entrepreneur, and start his own business. Now, ten years later, John's candy company has 20 locations all over the United States and employs nearly 1,000 people. This example illustrates:

b. analytical skills.

Knowing how to sort large amounts of information in order to find relevant facts to resolve a problem or issue is an example of:

b. low initial; skills or knowledge

Knowledgeable entrepreneurs choose areas with which they are familiar. These are most often the more established industries that require only a ___________ investment and some special ______________.

forms of organizational structure

Line, line-and-staff, matrix, and network all refer to .

b. functions

Management must coordinate four types of resources to produce goods and services, but another way to look at management is in terms of the different _____________ managers perform.

sales forecast

Managers rely on to purchase raw materials, schedule production, secure financial resources, consider plant or equipment purchases, plan inventory levels, and hire personnel, therefore they must be accurate.

d. Time utility

Many homes are decorated in spring colors because these colors are deemed to be uplifting; however, most department stores do not carry products in spring colors in the fall and winter when the focus is on browns and greens. Which of the following utilities explains the reason for spring-colored product availability?

b. operations

Mark's job involves purchasing raw materials, managing inventory, and scheduling the workers who build the company's product, Mark is a(n) _____ manager.

c. Marketing decisions and activities focused on achieving long-term, satisfying relationships with customers

Marketing is based on many different relationships between customers, wholesalers and producers, buyers, and sellers. What does the term relationship marketing refer to?

a. Identifying the problem

Nadine manages the quality control department for her company. Recently, Nadine became aware of a quality problem with one of the company's products. After studying the issue Nadine determined the quality of raw materials used in the product was deficient and began looking at changing suppliers. Which step in the decision-making process did Nadine exemplify when she determined the quality of raw materials was substandard?

d. To ensure that required materials are available when they are needed, in the proper amounts, and at minimum cost

Once the production process begins, a company must engage in operations control, which includes purchasing, inventory control, scheduling, and quality control. What is the objective of purchasing?

d. taxed.

One of the big differences between corporations and S corporations is how profits are:

c. Evaluating current employees

One of the first steps in hiring new employees is to prepare a job forecast to anticipate the company's employment needs. Which of the following is not part of the hiring process?

order getter

Sales persons can be categorized in many ways, a(n) is a person who is creative at selling the firm's products to new customers and increasing sales to current customers.

b. Financial

Sandra is a no-nonsense manager with excellent budgeting skills. On projects that Sandra manages, the team always comes in under budget. When forecasting costs for a plan, Sandra is extremely accurate. Sandra is skilled at managing which resource for her company?

C. Business

Studying _____ can help you develop skills and acquire knowledge to prepare for your future career, regardless of whether you plan to work for a multinational Fortune 500 firm, start your own business, work for a government agency, or manage or volunteer at a nonprofit organization.

b. seven

Sub-Saharan Africa is home to __________ of the top-ten fastest-growing economies in the world.

c. A communal corporate culture

Southwest Airlines is known for closely following its mission statement: Southwest Airlines is dedicated to the highest quality of Customer Service delivered with a sense of warmth, friendliness, individual pride, and Company Spirit. We are committed to provide our Employees a stable work environment with equal opportunity for learning and personal growth. In keeping with this statement, the company has developed inner rites, rituals, heroes, and values including holding a Christmas party in a hanger in Dallas every year and flying in employees from throughout the United States to attend. Awards are given at the party, entertainment is provided by employees, and dinner is provided for everyone. What do these activities describe?

c. Shopping product

Specifically, what kind of product is a buyer considering purchasing when the item is expensive and for personal use, and the buyer reviews brochures for the product, searches information about the product on-line, compares products, and reviews warranties between different stores and brands?

cultural diversity

Supply and demand are important in human resources planning because the planners must then determine if they are available.

b. Users

Supply chain management is a long-term partnership among channel members working together to create a distribution system that reduces inefficiencies, costs, and redundancies, while creating a competitive advantage and satisfying customers. Which of the following is not a focus of supply chains?

d. a description of individual personal gains benefiting others.

The "invisible hand" refers to:

b. conceptual skills

The CEO of a large beverage company led the company in the takeover of its two largest bottlers. The CEO pushed for the merger because buying the bottlers gave the company control of 80 percent of its North American distribution, making it easier for the company to test new products. The CEO's ability to think in abstract terms and see how parts of the company fit together to achieve long-term goals is an example of _____.

c. comparative advantage.

The United States is efficient at producing software and engineering services, but cannot produce clothes and electronics as efficiently as other nations. As such, the United States sells software and engineering services to other countries and buys clothes and electronics. This is an example of:

e. entrepreneurial

The _____ personality tends to take initiative, be visionary, and be forward-looking. Their enthusiasm energizes and inspires employees.

b. consumerism.

The activities that independent individuals, groups, and organizations undertake to protect their rights as consumers are called:

c. pollution.

The contamination of water, air, or land through the actions of people in an industrialized society is known as:

concept testing

The creation of a new product goes through several stages. At the phase, a product idea is presented to a sample of potential buyers through a written or oral description to determine their attitudes and initial buying intentions.

d. evaluating the solution

The final step in managerial decision making entails _____.

b. social factors

The general sets of factors that influence standards of ethical behavior in an organization are individual factors, opportunities, and ___________________.

a. Small Business Administration (SBA)

The government agency that advises and assists small businesses by providing management and financial assistance including counseling on improving operations and assisting with obtaining debt financing is known as the _____.

Grapevine

The is a designation given to an informal method of communication within an organization. By launching news of pending changes, it can be used by the organization for its own benefit.

National Labor Relations Act and Labor

The is concerned with dealings between business firms and labor unions.

c. conglomerate merger

The joining of firms in completely unrelated industries is a(n) _______.

e. middle management

The level of management that is responsible for developing tactical and operational plans and makes up the largest group of managers in most organizations is _____.

Equity Theory

The maintains that people are motivated to obtain and preserve fair treatment for themselves.

d. The magnitude of change of a conversion process is the degree to which the resources are physically changed.

The major resources used in production are financial, material, information, and people. What does the magnitude of change have to do with the conversion process of these resources?

c. Flexible production systems

The manufacturing process requires the use of a variety of technologies. Which of the following is not one of the technologies used in the manufacturing process?

c. Need for financial security

The morale of an individual on the job is closely tied to job satisfaction and having needs met. Which of the following is a need that, according to the authors, would be satisfied by employment?

span of management

The number of persons reporting to one manager is referred to as the and after years of research, it has been determined that there is no perfect ratio of subordinates to managers.

b. World Trade Organization (WTO).

The organization established by the Uruguay Round of the GATT, whose purpose is to mediate trade disputes among nations is called:

a. equilibrium price

The price at which the quantity demanded is exactly equal to the quantity supplied is called the____________________.

c. management.

The process of coordinating people and other resources to achieve the goals of an organization is known as:

marketing plan

The purpose of a is to establish a unified vision for an organization and to communicate this vision among the firm's employees.

Public Relations

The purpose of is to focus on enhancing the reputation of the total organization by increasing public awareness of a company's products, brands, or activities and by fostering desirable company images.

understand the nature of the job

The purpose of job analysis is to help a manager .

the elements that make up a particular job

The purpose of job analysis is to systematically study positions to determine .

c. dumping.

The selling of products in a foreign country at lower prices than those charged in the producing country is called:

b. lawyers and accountants are needed to do the complex filings.

The start-up costs of filing for incorporation are high because:

controlling

The three steps of the _____ process include setting standards against which performance can be compared, measuring actual performance and comparing it with the standard, and taking corrective action as necessary.

d. the gross domestic product (GDP).

The total dollar value of all goods and services produced by all people within the boundaries of a country during a specified time period (e.g., one-year) is called:

B. Customers

The ultimate objective of every firm is to satisfy the needs of its __________________.

d. Pop-up stores

There are many kinds of chain retail stores, which of the following is not usually considered a chain retailer?

d. It reduces payroll expenses.

There are many reasons for encouraging cultural diversity within the workplace, which of the following is not a good reason to engage in hiring for cultural diversity?

e. Planning

This deals with establishing organizational goals and deciding how to accomplish them; it is sometimes referred to as the "first" management function because all other management functions depend upon it.

category management

Through , retailers ask a supplier of a particular type of product how to stock the shelves.

B. Controlling

To be an effective manager, which of the following is one of the four basic management functions that a manager must be able to perform?

b. Sales forecast

To determine the potential of a specific market segment an organization makes predictions based on a specific relevant time frame, geographic boundaries, and an estimate for the specific product item, product line, or an entire product category. What is the name given to the estimate of the amount of a product that an organization expects to sell during the specific period based on a specified level of marketing effort?

d. Planning

Top managers spend most of their time performing which of the following management functions?

c. Form utility

Utility is the ability of a good or service to satisfy a human need. Which type of utility is the concern of operations management?

e. Peak, recession, the trough, and recovery

What are the four phases in the typical business cycle?

a. Capital, management, and planning

What are the three key ingredients in small business survival as well as failure?

d. Syndicate

What association might be formed because no one person or firm is willing to put up the entire amount required for the undertaking of a project; for example, to underwrite a large insurance policy or investment?

c. A business that is owned (and usually operated) by one person.

What is a sole proprietorship?

e. Most-favored-nation status (MFN)

What is the famous principle of the General Agreement on Tariffs and Trade (GATT), which means that each member nation is to be treated equally by all contracting nations?

a. Determine who the customer is and what needs the customer has

What is the first step for a service business to begin planning and provide the services its customers want?

a. To assist in financing the exports of American firms

What is the main function of the Export-Import Bank of the United States?

d. Affirmative action program

What is the name for a plan designed to increase the number of minority employees at all levels within an organization?

c. Line and staff structure

What is the name given to a management structure in which the line managers are provided with specialists? Please select the most specific answer.

c. Design planning

What is the name given to determining what a product will look like, what options it will have, where it will be made, and other variables that arise when a company has an idea for a product and moves it into research and development?

d. Job specialization

What is the name given to the assignment of distinct tasks within an organization to different people so each person become extremely proficient at performing that single task?

d. Alien corporation

What is the term for a corporation chartered by a foreign government that is conducting business in the United States?

A. Stakeholders

What is the term for all of the different people or groups of people that are affected by the policies, activities, and decisions of a business and whose concerns the business needs to address?

d. Scheduling

What part of operations control involves the process of ensuring that materials and other resources are at the right place at the right time?

b. Introduction

What stage of the product life-cycle is the product in when customers' acceptance and awareness of a product are low but sales rise gradually as a result of promotion and distribution?

b. Product modification

When Apple changed the iPhone from an iPhone 5c, to iPhone 5s, to iPhone 6, and iPhone 7 what was it doing to extend the life of the iPhone?

Inventory Management

When a business engages in , it is managing the products it sells in such a way as to minimize costs including both the holding costs and potential stock-out costs.

penetration pricing

When a company introduces a new product to the market, it will often use to build the market share quickly. In doing this, the seller sets the price low to stimulate sales and discourage competitors from entering the market.

quality control

When a company tests products to ensure that the goods and services are produced in accordance with design specifications, it is engaged in .

brand recognition

When a customer is searching for their preferred or familiar product brand in a store and cannot find it, they will often purchase an alternate brand that they are aware of due to .

granted authority

When a manager gives an employee the power to accomplish an assigned job or task that might include ordering supplies, spend money on behalf of the organization, or hiring and firing employees, the manager has to that employee.

intensive distribution

When a manufacturer saturates the market by selling to any intermediary of good financial standing that is willing to stock and sell the product, the manufacturer is engaged in .

c. Generic brand

When a person goes to a grocery store to purchase toilet paper and buys the package that is labeled "Toilet Tissue" with no other designations, what brand of toilet tissue did the person purchase?

Premium

When a producer offers a gift to a customer in return for buying its product, it is offering a for that product. The goal of this sales promotional method is to attract the competitors' customers.

applied research

When a research and development department is engaged in activities geared toward discovering new knowledge with some potential use it is engaged in .

b. As soon as their purposes have been achieved

When are joint ventures and syndicates dissolved?

c. Product mix

When business people discuss all of the products a firm has to offer for sale, what are they referring to?

b. Pricing perceptions

When buyers equate the status, quality, and value of an item with its cost, what part of the pricing strategy is involved with setting prices of luxury items?

c. Business owners

When considering the relationship between profits and business risks, which group of people is paid last?

defines the advertising objectives

When developing an advertising campaign, the company first identifies and analyzes the target audience then .

job rotation

When employers are concerned that their employees may become bored with performing the same tasks repetitively, they use to systematically shift employees to other jobs to give them opportunities to perform new tasks.

cost-based pricing

When engaging in a company may consider the total revenue and costs and the breakeven quantity.

status quo pricing

When setting the price of a product, a company has several pricing objectives it can make the focus of its organizational and marketing objectives. When the company is seeking , it is setting the product price at a level to continue industry stability.

e. fiscal policy

When the government attempts to influence the amount of savings and expenditures by altering the tax structure it is using _______ to offset the effects of a recession or depression.

a. hostile takeover.

When the management and board of directors of a firm targeted for acquisition disapprove of a merger, this is known as a:

organization chart

When the management of a business want to show the relationships and positions within the business they create a(n)

d. Research and development begins with an idea.

Where does research and development begin?

e. Sarbanes-Oxley Act

Which Act (passed in 2002) provided sweeping new legal protection for employees who report corporate misconduct?

d. Clean Air Act Amendment (1987)

Which Act established a national air-quality standard for ozone?

c. Sherman Antitrust Act

Which Act was passed to prevent businesses from restraining trade and monopolizing markets, and condemns "every contract, combination, or conspiracy in restraint of trade"?

c. Advocacy Center

Which U.S. government export assistance program facilitates advocacy to assist U.S. firms competing for major projects and procurements worldwide?

b. Distribution

Which category of industries includes retailing, wholesaling, transportation, and communications—industries concerned with the movement of goods from producers to consumers?

d. Canada and Mexico

Which countries are the United States' best trading partners for U.S. exports?

b. A social audit

Which document provides the information the firm needs to evaluate and revise its social responsibility program?

b. Limited-liability company

Which form of business ownership provides limited liability, as in a corporation, but is taxed like a partnership and is not restricted on the number of allowed stockholders?

e. Each of the leadership styles can be highly effective in the right situation.

Which leadership style is considered the best?

d. Human resources managers

Which managers are responsible for recruiting and hiring employees, developing and administering employee benefits, training and performance appraisal programs, and dealing with government regulations concerning employment practices?

c. The producer price index (PPI)

Which measure is an accurate predictor of both changes in the consumer price index (CPI) and prices that consumers will pay for many everyday necessities?

c. Socioeconomic model of social responsibility

Which model of social responsibility places emphasis not only on profits, but also on the impact of decisions in society?

b. Goal-setting theory

Which modern theory of motivation states that employees are motivated to achieve goals that they and their managers establish together as long as the goals are specific and attainable and rewards are tied to the goal achievement?

d. International Trade Administration

Which of the following U.S. government export assistance programs offers assistance and information to exporters through its domestic and overseas commercial officers?

d. The North American Free Trade Agreement (NAFTA)

Which of the following agreements, when ratified, created a free trade area among the United States, Mexico, and Canada?

b. The International Monetary Fund (IMF)

Which of the following banks specifically makes short-term loans to developing countries experiencing balance-of-payment deficits?

a. Advertising

Which of the following described a part of the promotion mix that is a paid nonpersonal message communicated to a select audience through a mass medium?

b. Maximizing shareholder profits

Which of the following is NOT a component to be addressed by management in order for total quality management (TQM) programs to be effective?

c. Easy to raise capital

Which of the following is NOT an advantage of smallness in business?

b. The value of each partner's retirement accounts

Which of the following is NOT usually stated in the articles of partnership?

a. Corporate charter

Which of the following is a legal document that the state issues to a company based on information the company provides in the articles of incorporation?

c. Protection for new or weak industries

Which of the following is a reason for trade restrictions?

e. Preferred

Which of the following is a special type of stock whose owners cannot vote regarding the running of the company, yet have a priority claims to profits?

a. Small-business investment companies (SBICs)

Which of the following is a way in which the Small Business Administration provides financial assistance to small businesses?

b. Retention of all profits

Which of the following is an advantage of a sole proprietorship?

a. Limited liability

Which of the following is an advantage of corporations?

e. Pooled financial resources

Which of the following is an advantage of partnerships?

c. Social problems affect society in general, so individual businesses should not be expected to solve these problems

Which of the following is an argument against increasing social responsibility?

c. By helping resolve social issues, businesses can create a more stable environment for long-term profitability

Which of the following is an argument for increased social responsibility?

c. Personal values

Which of the following is an individual factor that influences the level of ethical behavior in an organization?

e. Possible market saturation

Which of the following is considered a shortcoming of owning a franchise?

e. It helps create an environment where employees recognize the importance of code compliance.

Which of the following is correct regarding an effective code of ethics?

b. Mass-media advertising

Which of the following is not a current goal of integrated marketing communications?

a. Consumer protection laws

Which of the following is not normally included as a central component of a marketing plan?

finances

Which of the following is not normally included in the external marketing environment?

b. Increasing international sales

Which of the following is not normally thought of as an objective of a sales promotion?

a. Terminating

Which of the following is not one of the primary tasks of human resources management?

a. Excessive restrictions resulting in less freedom

Which of the following is the most likely reason that a small-business owner may become frustrated as a franchisee?

d. Profit is what remains after all business expenses have been deducted from sales revenue.

Which of the following statements best defines "profit"?

a. Sexual harassment can result in poor morale, high turnover, and expensive lawsuits.

Which of the following statements is true regarding sexual harassment and other abusive behavior in the workplace?

a. The right to fair prices

Which of the following was not asserted as a basic right by President Kennedy's Consumer Bill of Rights?

a. Small Business Administration

Which organization or U.S. government export program publishes guides that offer assistance and exporting information to small and medium-sized companies?

d. Implementing

Which part of the marketing concept is concerned with using information about present and potential customers to provide a product that will satisfy them at a price that is acceptable to them, that will yield a profit, that will promote the product, and ensure that the product is distributed so that it is available to customers where and when it is needed?

e. Interpersonal skills

Which skills are defined as the ability to deal with people, both inside and outside the organizations?

e. Many businesses are now using social media to provide customers with information about products and services.

Which statement below best represents the technological environment of business?

c. Productivity growth can lead to higher unemployment rates.

Which statement is true regarding economic performance?

d. When ethical misconduct occurs in a business, investors also suffer.

Which statement is true regarding ethical issues that arise out of a business relationship?

e. Monopolistic competition

Which term describes the purely competitive market structure where many buyers are trying to satisfy a similar need with uniquely branded products from a relatively large number of sellers (e. g., sports-drinks)?

d. Not-for-profit corporation

Which type of corporation focuses on providing a service rather than earning a profit, but is not owned by a government entity?

a. mixed economy

While the United States' economic system is rooted in laissez-faire capitalism, its government collects taxes and provides services (such as national defense and education), making the United States a ___________________________.

c. management retaliation.

Whistle-blowers can be helped by protecting them from:

b. Director of the social responsibility program

Who should prepare a social audit for the firm?

c. Industrialized nations

Who supports multilateral development banks (MDB)?

retailers

Wholesalers help by stocking in one place the variety of goods that this buyer would otherwise have to buy from many producers.

c. To investigate complaints of employment discrimination and sue firms that practice it

Why did Congress create the Equal Employment Opportunity Commission (EEOC)?

c. Small-business development centers (SBDCs)

_____ are business clinics, usually located on college campuses that provide free counseling and training for owners of small businesses.

e. Generating alternatives

_____ is the second step in the decision-making process and it depends on creativity for new and useful ideas, regardless of where the ideas come from.

a. Participative

_____ leadership can motivate employees to work effectively because they are consulted before making decisions. This helps them understand which goals are important and fosters a sense of ownership and commitment in decision making.

c. Benchmarking

_____, one tool that is used for total quality management (TQM), is the process of evaluating the products, processes, or management practices of another organization for the purpose of improving quality.

e. Small businesses

______ are independently owned and operated, not dominant in their field of operation, and meet certain standards of size in regard to number of employees or average annual sales.

b. Capitalism

______ is an economic system based on free markets, in which all or most of the factors of production and distribution are privately owned and operated for profit.

a. Opportunity

_______ refers to the amount of freedom an organization gives an employee to behave unethically if he or she makes that choice.

d. Dual-branded

________ franchises occur when two franchisors offer their products together; this is becoming a new small-business trend.

b. Crowdfunding

____________ is a new alternative to traditional financing that uses online sites to invite people to contribute.

d. Unlimited liability

_____________ is a legal concept that holds a business owner personally responsible for all the debts of the business.

d. Business ethics

______________ is the application of moral standards to business situations.

a. Ethics

______________ is the study of right or wrong and of the morality of the choices individuals make.

Customer Relationship Management

focuses on using information about the customer to create marketing strategies that develop and sustain desirable customer relationships.

planning for production

involves three phases to convert an idea that meets customer needs to an actual good or service.

Management by Objectives (MBO)

is a motivation technique in which managers and employees collaborate in setting goals for the purpose of clarifying the roles employees are expected to play in reaching the organization's goals.

behavior modification

is a systematic program of encouraging desirable behavior involving rewards to encourage desirable actions and punishments to discourage undesirable actions.

morale

is an employee's attitude or feeling about the job.

motive

is an employee's attitude or feeling about the job.

Marketing Research

is an important step of the marketing process because it involves collecting and analyzing data on what consumers want and need, their consumption habits, trends, and changes in the marketing environment.

accsesssory equipment

is standardized equipment used in a firm's production or office activities and is usually purchased routinely with less negotiation.

inventory control

is the process of managing inventories in such a way as to minimize costs, including both holding costs and potential stock-out costs.

employee training

is the process of teaching operations and technical employees how to do their present jobs more effectively and efficiently.

Services

is/are characterized by being consumed immediately, being provided when and where the customer desires them, is/are labor-intensive, and has/have a high degree of customer involvement.

magnitude of change

magnitude of change

nonprice competition

occurs when a company promotes its product by accentuating the differences between its product and similar products.

consumer buying behavior

often differs based on the product being purchased. For instances, low-cost items are purchased with routine response behavior and very little search or decision-making, but expensive, seldom-purchased items call for extended research and decision making.

recruiting

refers to the activity of trying to attract qualified applicants for a job.

Corprate Culture

refers to the traditions, heroes, informal methods of interacting, giving of recognition and other values of a firm and can be strong and used to bind members of the organization like a family, or weak so that connections remain on a professional-only level.