Final Exam Study Guide MGT

Corporate social responsibility

The manufacturing process at Cole Co. results in polluted water as a byproduct. The law allows Cole to release 5,000 gallons a month of untreated water into a nearby river, but they instead incur an additional cost to eliminate all pollutants. Their approach to their pollution levels qualifies as _________.

LLC

Tim wants to start a business on his own in a way that will limit both his expense of startup and his exposure to liability. His best choice would be what form of business?

Exercise their authority based on their rank in the organization

Transformational leaders do all of the following EXCEPT:

NOT: only an acquisition involves the board of directors of the target company

What is the difference between a merger and an acquisition?

Achieving competitive advantage

What is the ultimate goal of the process of strategic planning?

rationalizing

When completing the form for an expense reimbursement for his business trip, Stefan listed two dinners for $24 each when he actually ate at the home of a local friend. The company required documentation at $25 or above. Although he knew it was wrong, he told himself that doing so was acceptable because he was so underpaid. This scenario is an example of ______________.

Competitors follow each other on price

Which of the following is not true of a market characterized by monopolistic competition?

NOT: generates about half of the GDP in the economy

Which of the following is not true of small businesses in the United States? Small business _______.

the pleasure you derive from seeing a good play

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

Changes in price by one seller influence prices of the other sellers

Which of the following is true of an oligopolistic market?

A project to increase in battery life to extend the range of electric cars

Which of the following would be the best example of a logical response to a technological macroeconomic force?

looking out for yourself

Which one doesn't belong? Ethics in business means:

Perfect competition

A market featuring identical products and many sellers with no individual influence on market prices would be characterized as which form of competition?

robust economic growth

According to economic theory, every country has the same economic objectives, namely price stability, high employment, and _________.

NOT: Contract manufacturing

According to the model in your text, which of the following has the highest risk and return potential?

Blocking

Actions such as dominating, stalling, and presenting opinions as if they were facts are all examples of what kind of team roles?

Educational

All of the following are forces addressed by the PESTEL model except:

NOT: Repetitive/mundane work

All of the following are reasons why Foxconn employees were committing suicide, requiring the company to install nets on the outside of their buildings except (refers to an assigned video):

Harder to scale

Among the disadvantages to forming a business as a corporation are all of the following except:

technical skills

Ann is an entry-level IT professional and is skilled in the area of Java and HTML programming. Her knowledge of these coding languages represent her _________.

Angel

Anna forms a group to code an app to help people donate to charities. She needs funds to promote the application. An investor provides $15,000 in exchange for a 10% stake in the company. The investor hopes to make money by connecting Anna to her network and coaching her on how to succeed. This scenario describes what kind of investor?

fiscal policy

As a result of the economic impacts of COVID-19, Congress has been debating a spending package of $1.0 - $2.5 trillion, in the hopes of stimulating the economy. If this package is passed into law, this action would be categorized as a(n) __________ move.

machinery

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

recession

As soon as any nation has experienced two consecutive quarterly declines of its gross domestic product, that nation will be in a(n):

contractionary fiscal

As the government deficit and debt widen in many European countries, some economists have called for a drop in government spending. If this occurred, what type of policy action would it represent?

groupthink

At Andy's employer, "rocking the boat" is discouraged. He challenged an idea in a meeting and was later reprimanded by his boss. If this incident is typical at the company, then they would be especially vulnerable to what team dysfunction?

Security

David has an awesome idea for a new startup company, but when it came time for him to quit his full-time job to work on this company, he decided to keep the steady income that he currently has. This is an example of what reason that some businesses never get started?

Monetary policy stimulus

Due to the severe negative impacts of the coronavirus outbreak, the Federal Reserve announced expansion of a policy called quantitative easing to pump $1.5 million into the money supply. This move is an example of:

Members depend on each other

Effective teamwork means:

Limited partnership

Eric and Nicole are trying to decide what business form to select for their startup. Eric is too busy with school to do any work, and he wants to protect his life savings, whereas Nicole wants to run the day-to-day and has no assets to protect. The best business form to match their situation is:

licensing

French company Cannes SA signs an agreement with a company in Gabon to allow them to make and sell products designed by Cannes. In this case, the products are sold only in Gabon and do not carry the Cannes brand name. This type of arrangement is called ________________.

The franchisor uses the capital of other people to fund its expansion

From the standpoint of the franchisor (e.g., Jimmy John's the parent company), which of the following is the key advantage to expanding using the franchise model?

job enrichment

JT saw that his employee Meg needed a new challenge, so he assigned her some tasks that JT normally would have done himself. His objective was to invest in Meg's development, making this move ____________.

piecework

Jake lands a job installing the control switches on heaters in a factory. He makes minimum wage plus $1.00 for every switch he installs correctly. The $1.00 incentive portion of his pay is known as ___________.

assistance in personal income tax preparation

Jennifer Schmidt is buying a Cinnabon franchise at the airport in Charlotte. Schmidt knows that she will get all of the following benefits EXCEPT:

either trade bloc or common market

The European Union is a regional group of countries that exists to facilitate free trade among its member nations. It serves as an example of a(n) ____.

NOT: free market

The U.S. economy distributes most resources according to supply and demand, or market forces. This means that the U.S. has a ____________ economy.

Telecommuting

The coronavirus has resulted in many companies instructing their employees to work from home. The term in business for working from outside the office is:

inflation

The general rise in the prices of goods and services over time is known as ___________.

Dividends

Stockholders benefit from corporate ownership by receiving _________________.

NOT: social welfare

The Bailey Corporation has established an alcoholic rehabilitation program for the city of Houston. The company provides the facilities and the personnel to operate the program. The Bailey Corporation is practicing:

royalties

A Dutch maker of house paint licenses to a South African company the right to manufacture and sell their products in Africa. What name refers to the payments the South African company will make on this deal?

balance of trade

A country's __________ is determined by subtracting the value of its imports from the value of its exports. For example, the value of Mexican-made products bought by Canadians would be subtracted from the value of Canadian products bought by Mexicans.

stakeholders

BC is opening a coffee shop in the downtown area of his home town. He wants to ensure that his business model takes into account the needs of his customers, his landlord, his employees, and other ___________ with an interest in the success of his business.

absolute advantage

Because farmers in China can currently produce more rice per worker than farmers anywhere else in the world, China now has a/an ______________ in rice production.

Stock options

Beth signs an agreement with her company that gives her the right to buy shares in the company at a specified price for a certain period of time. The document she signed provides her with _____________.

Strongly advocate your point of view

Building trust is important in teamwork. Which of the following is false with respect to building trust?

Synergies

Cavani Co. acquired Icardi Group, enabling them to access new markets and reduce costs by eliminating duplicate positions. These benefits realized by Cavani in this acquisition are known as _______.

Celine is guilty of sexual harassment

Celine tells her employee Steve that he would have a better chance for a promotion if he went on a date with her. Steve can report this incident to his superiors because:

commission

Claudia loves her job at the perfume counter at Sachs because she gets a percentage of every sale she makes. That percentage is her _______________.

Outsourcing

Companies like Dell Computer have tech support lines that are staffed by people in India that work for other companies under contracts with Dell. Which of the following is the most accurate name for this practice?

product surplus

Consider a market in which the equilibrium price for a gallon of milk is $3. In order to make its milk producers happier, the government imposes a minimum price $4. What would be the expected impact on the market for milk?

no impact on the market

Consider a market in which the equilibrium price for a quart of orange juice is $3. In order to show support for its orange producers, the government imposes a minimum price $2.50. What would be the expected impact on the market for orange juice?

Danielle has a conflict of interest in this situation

Danielle is asked to find a new supplier for janitorial services for her company. Her old college roommate Emma now owns a cleaning service and lets Danielle know that she wants to bid on the contract. Which of the following is true?

Conflict of interest

Sophia leads the purchasing area for her company. A new food supplier for the company restaurant is being sought, and her Mom intends to bid on the business. Which term best describes the situation that Sophia is facing?

Benny's

Guido opens a pizza place across from Benny's in Blacksburg. Which of the following is not considered a stakeholder in Guido's business?

Benchmarking

Harvard, Wharton, and other top MBA programs willingly share their admissions and placement statistics with publications like US News, who then compile rankings of MBA programs. The information is thus available to all MBA programs and is often used to target areas of improvement. The process described here is a form of ___________.

Whistleblowing

Hez observes that his boss is using company funds to make improvements on her vacation home. He reports the situation to the CEO of the company. In so doing, he has acted under what principle?

Mass Production

If a company wanted to manufacture the same item repeatedly and keep costs as low as possible, it would logically use what production method?

Bolivia would have a trade surplus of $0.6 billion with respect to Ecuador

Imagine that Bolivia and Ecuador trade heavily with each other and that in 2018, Bolivian companies sold $3.4 billion of products to Ecuador, and Ecuadorian companies sold $2.8 billion in products to Bolivia. If these were the only transactions between the two, which of the following would be true?

Blocking

In a team environment, Gabrielle tends to exhibit passive aggressive behaviors, and when someone else makes a mistake, she is quick to call attention to it. Gabrielle's behaviors fit into what category?

decision-making

In pondering her career progression, Julia observes that over the course of her career, her reliance on various aspects of her skill set has changed. Now that she is a CEO, she mainly uses her interpersonal and ______ skills.

Crowdfunding

Liz funded her startup on a platform that allowed her supporters to give her money in exchange for small rewards, which increased in value depending on the amount. This form of funding is called _________.

Limited partnership

Maddi starts a business after graduation with financial help from five friends. In the form of business chosen, Maddi has unlimited liability, but her friends do not. The business form must be __________.

larger size

Numerous factors can contribute to strong team cohesiveness, among them having members with a similar mindset. Which of the following is factor that would tend to decrease team cohesiveness?

Opportunity Cost

Nyle earned $300 mowing grass. He wants the Beats Solo Pro but he also is considering the PS4 Pro. If he buys the Beats, the PS4 will represent the ____________ of buying the headphones.

Make to order

Nyle is a professional bicyclist. Frames for his bike are made by hand to the exact geometry that best suits his body. Based on this description, these frames are made using what production method?

Organizing

One of four functions of management. This one that deals with the allocation of resources to tasks and who reports to who in a business.

To gain access to specialized labor not present within the company

Other than cost savings, which of the following was discussed in chapter 10 as a reason why companies outsource certain aspects of their business?

Just in time

PSG Co. orders parts from their suppliers so that the company can minimize inventory of production material and warehouse space and so that the parts all arrive together at the optimum moment. What inventory management practice is therefore enabled (or used)?

Finance

Stephane is vice-president of the department in his company that is involved in raising capital and analyzing the attractiveness of investment opportunities, such as the anticipated return on a new manufacturing plant. What function of the company does he lead?

private property rights

Phil is a high school student. He buys a rake and some plastic bags and goes around the neighborhood earning $10 an hour raking leaves in the fall. Where he lives, he gets to keep the after-tax value of his earnings. What concept does this example describe?

profit

Priya is an accountant for a small florist shop, keeping track of all of the expenses and income for the business. At the end of each month, she reports to the owner the amount of money left from all of the customer purchases after all of the bills are paid. This money is the business' ___________.

Franchising

Quick Restaurants is a Belgian chain of hamburger restaurants. Now based in Bobigny, Seine-Saint-Denis, France, the company has around 400 restaurants, many of which are actually owned by entrepreneurs in different countries in Europe who pay a royalty to Quick based on the amount of business they do. Based on this information, what global entry strategy did Quick use to expand?

legal

Recently, the FDA recalled onions because of possible health risks. This recall would be considered part of the _________________________ macro-environment:

corporate philanthropy

Say that Antibes Co. matches employee donations to institutions of higher education up to a limit of $1,000 per employee per year. From the point of view of the company, this is an example of _____________.

Sociocultural

Say that in Hintaland, the birth rate jumped as a result of confinements due to COVID 19, so much that the average age of the Hintaland population dropped by 2 full years. What PESTEL force would be involved in this happening?

$800

Sharon Midford has invested $800 in the corporate stock of a manufacturer of offshore wind farm equipment. If the company goes bankrupt, the most Midford could lose would be: