HR DECA Exam

Which of the following is an activity associated with the organizing function of management: A. Determining the division of labor C. Inspecting the quality of outputs B. Developing a mission statement D. Providing employees with feedback

A Determining the division of labor. Organizing is the management function of setting up the way the business's work will be done. Determining how to divide the work is an organizing activity. A mission statement, the firm's statement of purpose, is considered when conducting planning activities. Inspecting outputs and providing employees with feedback are controlling activities.

After Lana finishes writing the promotional copy for a direct-mail letter, she plans to proofread and edit her work on her computer. What technique will help Lana determine if the text is clear and logical? A. Reading the text aloud C. Correcting grammatical mistakes B. Reading the text backwards D. Correcting punctuation errors

A Reading the text aloud. By reading the text aloud, Lana will not only see the text, she will hear it. By hearing the words, Lana can detect missing words and assess the clarity and sequence of the information. Reading text backwards helps detect misspelled words, punctuation errors, and some grammatical errors, but this activity does not help the editor clarify that content is logical and meaningful.

The practices of not relying on inspection to achieve quality and lowering costs by working with just one supplier are part of which quality control technique? A. Total quality management C. Lean operations B. Six Sigma D. Continuous improvement

A Total quality management. TQM, the quality control technique created by W.E. Deming, consists of 14 points, two of which are listed in the question. Six Sigma is a system for reducing variation in processes using advanced statistical techniques. It seeks to reduce defect levels to 3.4 per million units produced or transactions processed. Lean operations is a series of mathematical and visual tools to streamline material and information flow. Continuous improvement is any ongoing effort to improve products, services or processes.

Which of the following is an example of paradigm innovation: A. Windows computer operating system C. The latest model of the Honda Civic B. Energy-saving light bulbs D. Rechargeable batteries

A Windows computer operating system. Paradigm innovation takes place when the entire perception of a product, company, or industry takes place. The Windows computer operating system revolutionized the way people input, transfer, share, and export information through personal and networked computers. Businesses worldwide use the Windows operating system. Energy-saving light bulbs, the latest model of the Honda Civic, and rechargeable batteries are examples of product innovation. Product innovation takes place when a company creates a new product or redesigns an existing product.

When the inflation rate __________, the interest rates tend to __________. A. increases, stabilize C. decreases, increase B. increases, increase D. stabilizes, increase

B Increases, increase. Interest is the reward or cost of lending or borrowing money, and this amount is usually figured as a percentage of the amount of money borrowed. The interest rate is the percentage figure used to calculate interest. Many factors affect interest rates, including government policies and the business cycle. The nation's rate of inflation, which is how quickly prices are rising in the marketplace, can affect interest rates. When the inflation rate increases rapidly, the interest rates also increase. This occurs because there is less money available for financial institutions to loan to individuals and businesses. When the inflation rate levels off, prices tend to stabilize, and in some situations, prices may decrease.

What is the primary purpose of managerial planning? A. To evaluate forecasts C. To prepare for the future B. To implement activities D. To change processes

C To prepare for the future. Planning is the management function of deciding what will be done and how it will be accomplished, which is preparing for the future. Preparing forecasts are activities that are often performed during the planning process. Implementing activities and changing processes are part of the managerial controlling function.

If one U.S. dollar is equal to $1.04460 Canadian dollar, how much would you pay for a computer that costs $265 U.S. dollars in Canadian dollars? A. $264.74 C. $297.60 B. $288.96 D. $276.82

D $276.82. Most countries have their own currency. A country's currency value changes in relation to other countries' currency values. Businesses monitor these changes because dramatic changes in currency values can affect their profits. To calculate the amount that you would pay in Canadian dollars, multiply the printer price in U.S. dollars by the value of the Canadian dollar ($265.00 x 1.04460 = $276.819 or $276.82).

What section of the statement of work (SOW) defines what the project will produce? A. Schedule estimates C. Benefits and risks B. Purpose statement D. Project deliverables

D Project deliverables. The statement of work (SOW) is a document that outlines the terms, commitments, and conditions of the project. It includes information about the project's activities, timelines, and deliverables. Deliverables are the goods, services, or documentation that will be provided to the stakeholder upon completion of the project—what the project will produce. The purpose statement defines the reason for the project. Schedule estimates approximate the timeliness of the workload throughout the project.

A primary activity of the directing function of management is A. initiating action. C. evaluating performance. B. identifying skills. D. establishing authority

A Initiating action. Directing is the management function of providing guidance to workers and work projects. Providing guidance or instruction about the proper way to perform a task is initiating action. Skill identification is a staffing activity. Performance evaluation is a controlling activity. Establishing a line of authority is an organizing activity.

What is the co-signer of a bank loan legally responsible to pay if the borrower defaults on the loan? A. The balance of the loan owed C. The interest amount owed only B. The principle amount owed only D. The original amount of the loan

A The balance of the loan owed. When the borrower does not have the collateral or credit history to obtain the loan, the lender often requests that another person co-sign for the loan. A co-signer is responsible for paying back the loan if the borrower does not. The co-signer is legally responsible for paying the balance of the loan owed, including interest and principle. If the original loan was $5,000 plus interest, and the borrower defaulted after paying half of the loan, the co-signer would be responsible for paying the remaining half of the loa

At Oh-So-Good Gourmet Cookie Company, Todd is the warehouse manager, Pamela is the lead shipping clerk, David is a part-time shipping clerk, Carrie is the shipping supervisor, and Sharon is the vice president of distribution. Following a vertical chain of command, who is Carrie's direct supervisor?

A Todd. The chain of command defines the level of authority and the specific individual who supervises particular employees. Having a chain of command helps provide structure for businesses. Because Carrie is the shipping supervisor, she would report to Todd, who is the warehouse manager. Todd reports to Sharon, who is the vice president of distribution and holds the highest ranking position listed. Pamela is the lead shipping clerk, so she reports to the Carrie, who is the shipping supervisor. As a part-time shipping clerk, David reports to the lead shipping clerk, Pamela.

Identify the type of analytical report that is most likely to contain the following information: "By taking the necessary steps to appeal to the 18- to 30-year-old market in the northwest region, we are likely to increase sales by 10 percent." A. Opportunity assessment C. Justification B. Proposal D. Corrective action

. A Opportunity assessment. An analytical report involves examining opinions, facts, and data about an issue, idea, or problem. The statement in the example describes an issue (market share expansion), which presents an opportunity for the business to attract more customers. A proposal suggests a certain course of action. Justification reports provide facts and data that support a previous decision or action. Corrective action involves taking action to resolve a problem that has occurred.

Jack says to Wendi, "If I understand you correctly, you are saying that you want to change the format of the inventory report so it will be easier for the managers to analyze." What communication technique is Jack using to clarify Wendi's suggestion? A. Paraphrasing C. Passive listening B. Expressing an opinion D. Quoting

. A Paraphrasing. Message recipients use many techniques to encourage and indicate their understanding of a speaker's message. In the example, Jack is paraphrasing to verify his understanding of Wendi's statement. Paraphrasing involves restating a message in other words to confirm the message recipient's understanding. To use paraphrasing effectively, the message recipient must actively listen to the speaker's message. Paraphrasing does not involve expressing an opinion. Quoting involves reciting or writing a thought, idea, or statement using the speaker's exact words.

As the project team leader, Tim has noticed that some of the team members have lost their focus on and interest in the project. To determine how to motivate the team, Tim must first understand that people A. need to have their accomplishments recognized. B. perform their work better under tight deadlines. C. respond best when they feel intimidated. D. are most interested in being paid for their input.

. A Need to have their accomplishments recognized. Without ongoing positive reinforcement, team members may become discouraged and feel like their efforts do not matter—even if they are well paid for their work. So, it is important for Tim to realize that many people need their accomplishments recognized and appreciated. Appreciation can be shown in many ways, from a simple "thank you" or "good job" to a nice meal or a bonus. Intimidation is not an effective tactic to encourage and motivate team members. Not all people perform their best work under tight deadlines. In fact, they are more likely to make mistakes because they are rushing to finish on time.

What is the first step in accepting responsibility for a mistake that you made at work? A. Developing an excuse C. Apologizing for causing problems B. Acknowledging your actions D. Determining corrective action

. B Acknowledging your actions. To accept responsibility for your actions, you must first acknowledge that you made a mistake or error in judgment. If you discover the mistake yourself, then you can advise your supervisor about the mistake and determine how to correct it. If someone else discovers the mistake, you should acknowledge what you did and take steps to correct it. Taking corrective action and apologizing for a mistake can only occur after the mistake has been recognized or acknowledged. Mistakes can be small and do not always cause major problems. When you accept responsibility for your actions, you don't provide excuses or blame others

. Liam wrote and submitted a report to management describing relationships between actions and the probable results of those actions. What type of research report has Liam written? A. Interpretive C. Jury of executive opinion B. Cause and effect D. Argumentative

. B Cause and effect. Cause and effect reports provide information about a variety of scenarios under different circumstances—if action A and B happens, then the probable result will be X. By developing a cause and effect report, a business can analyze different situations and probable outcomes. The business can consider the pros and cons of each scenario to determine which action will be best for the business. An interpretive report provides the writer's perception of a specific topic. Individuals working in the humanities and social-science fields often develop interpretive reports to clarify or interpret ancient texts and complex cognitive concepts. Jury of executive opinion is a qualitative forecasting method that gathers opinions from company executives. An argumentative report provides facts and data about two sides of a controversial issue.

Thomas is reviewing job applications to determine the five most qualified candidates to interview for a sales position. What management activity is Thomas performing? A. Orienting C. Training B. Screening D. Innovating

. B Screening. Staffing is the management function of finding workers for the business. Staffing is an important function because employees do the work to accomplish the business's goals. Screening is a staffing activity that involves reviewing employment applications to determine which applicants have the skills that best fit the business's needs. Orienting is the process of familiarizing a new employee with the company. Training involves providing information or teaching skills that the employee needs to perform his/her job. Innovating is the process of generating unique ideas or products.

When a small business purchases insurance to protect itself from losses associated with flooding and hurricanes it is A. preventing threats. C. retaining responsibility. B. transferring risk. D. avoiding hazards.

. B Transferring risk. Risk is the chance of loss. Businesses can transfer, prevent, retain, or avoid risk. Transferring risk involves shifting the risk to someone else. In the example, the business is shifting risk to the insurance company. In this situation, the insurance company will pay the business for its losses if a hurricane or flooding damages the business. Retaining risk is keeping it. Reducing risk is preventing or controlling it. Preventing risk is taking measures to reduce the risk. The business is not preventing threats, retaining responsibility, or avoiding hazards.

Mandy sees that a fire has started in the business's warehouse. What should Mandy do to alert her coworkers that they should evacuate the building immediately? A. Call the fire department C. Trigger the fire alarm B. Use the fire extinguisher D. Recite the escape route

. C Trigger the fire alarm. A fire is an example of an emergency situation that employees should be prepared to handle. One of the first procedures to follow if a fire is detected in the facility is to evacuate the premises to protect the safety of employees and customers. To alert coworkers about a fire, Mandy should trigger the fire alarm. The sound of the alarm will indicate that individuals should evacuate the premises. Using a fire extinguisher may help put out or contain the fire, but does not alert others about the fire. The fire department should be called after employees are alerted about the fire. Reciting the escape route will not alert others to evacuate the building

When you want to persuade others to take a specific action, you should A. ask the audience to be willing to compromise. B. encourage the audience to offer dissenting opinions. C. focus on emotional appeals rather than logic and reasoning. D. communicate the benefits that are meaningful to the audience

. D Communicate the benefits that are meaningful to the audience. Persuasion involves influencing the attitudes or behavior of others. If members of the audience understand how they will benefit, they are more likely to go along with the action. When persuading others, it is important to answer the questions and discuss their objections; however, encouraging the audience to offer different opinions and asking for compromise may hinder the persuasion process. In some situations emotional appeals are not appropriate to use, and you need to provide sound reasoning for the call to action

Customers may benefit from a company's knowledge management practices because A. decision-making becomes less complex. C. employees are promoted more often. B. updates are needed less often. D. problems are often resolved quickly

. D Problems are often resolved quickly. An aspect of managing knowledge involves making sure that employees receive training and information about their specific jobs, products, relationships between departments, and general business operations. When employees have the necessary knowledge, they don't need to ask coworkers or managers for help with the day-to-day issues that they often encounter. By having proper information, employees can often solve customers' problems quickly. Having the knowledge to help customers doesn't mean that the employees will need to update information less frequently, that employees are promoted more often, or that decision-making processes are less complex.

What type of tax do many local governments levy to pay for public schools and community parks? A. Income C. Excise B. Estate D. Property

. D Property. Property taxes are paid on land and buildings. Local governments use property taxes to finance community initiatives such as schools and parks. An excise tax is a special government tax on certain items (e.g., gasoline) that is included in the price that consumers pay. Income taxes are levied on income earned from a job or other sources. Inherited items are subject to estate taxes.

Statistic findings indicate that the sales for an automaker's environmentally-friendly hybrid cars increased by a minimum of eight percent each quarter last year. Based on the information provided, what can the automaker conclude? A. The company needs to increase its budget for research and development. B. Most families care about the environment, but prefer driving SUVs. C. The automaker should reduce the production of its line of luxury cars D. Trends indicate an ongoing demand for more fuel-efficient vehicles.

. D Trends indicate an ongoing demand for more fuel-efficient vehicles. Statistics are information presented in numerical form. Businesses often interpret and analyze statistics to identify trends, which indicate the general direction in which people or events are moving. If numerical data show that the sales for a hybrid, environmentally-friendly car has been steadily increasing for several months, then the trend indicates that there is an ongoing demand for the fuel-efficient vehicles. Hybrid (electric and gas fueled) cars are environmentally friendly and fuel efficient because they use less gasoline than traditional vehicles. After identifying the trend, the automaker might decide to reduce the production of luxury cars and increase the production of hybrid cars, or increase its research and development budget to create more efficient cars. There is not enough information provided to determine if most families prefer driving SUVs.

. Successful knowledge management efforts require an organizational culture that A. embraces ethnocentrism. C. encourages anonymity. B. accepts autocratic leadership. D. values innovation.

. D Values innovation. Organizations that value innovation respect and consider their employees' input and ideas. If employees feel that their input is valued, they are often more willing to share their tacit knowledge with others. Autocratic leadership is a dictatorial style leadership in which the leader determines all policies, maintains close control, and provides employees with only the information that they need to know to do their jobs. Anonymity is lacking individuality. Ethnocentrism is the belief that your own culture is naturally better than other cultures. Autocratic leadership, anonymity, and ethnocentrism are more likely to hinder successful knowledge management than support it.

Because Japanese businesspeople live and work in densely populated areas of the country, it is important to be considerate of their A. religious practices. C. passive attitudes. B. need for personal space. D. casual view of time.

1. B Need for personal space. Japan is a small country with a large population, so residential and work spaces tend to be small and crowded. When people must live and work in confined spaces, they tend to value their personal space. Foreigners can demonstrate consideration and respect for Japanese businesspeople by maintaining some physical distance when communicating with them. It is important to be considerate about time, attitudes, and religious practices, but these factors are not related to living and working in densely populated areas

What must be determined before the work effort can be coordinated effectively? A. Technical changes C. Customer-satisfaction levels B. The necessary tasks D. The employees' requirements

1. B The necessary tasks. To coordinate work, you must know what tasks should be done, who should do them, and the order in which they should be performed. It is important to communicate with each person involved in the work effort so they know exactly the process and procedures they need to follow to complete the work correctly. Technical changes are not always part of the work effort. High customer satisfaction levels may result when the work is coordinated effectively. The business's requirements or needs are considered when coordinating the work rather than the employees' requirements or needs.

Which of the following statements is true about project management: A. It requires a signed contract from stakeholders. B. It is a continuous series of events with an unlimited life span. C. It involves the coordination of multiple activities. D. Its primary use is for completing complex activities.

2. C It involves the coordination of multiple activities. A project is any type of task that has a distinct beginning and end. Project management is the process of planning, scheduling, and monitoring the progress of a project to achieve a specific goal. To achieve the project goal, the project manager must coordinate the human and financial resources, equipment, and supplies to carry out the project's activities or tasks. Projects can be simple or complex and do not always require a signed contract from stakeholders.

What type of project-management software application helps project managers determine the types of skills that they need to complete their projects? A. Scanning C. Resource allocation B. Inventory management D. Spreadsheet

2. C Resource allocation. Resource-allocation applications help project managers to allocate all the needed resources—human, financial, equipment, supplies—in the most efficient ways. For example, the resource allocation application can determine the skills that are needed to perform certain tasks. This, in turn, helps the project manager identify appropriate team members to perform the work. Inventory management software is used to monitor a business's merchandise and supplies. Scanning software digitally captures documents and graphics to store on computers. Project managers use spreadsheet software applications to organize, calculate, and analyze numerical data

The best way for Melissa to determine if her company will pay the tuition for the class that she is taking at the community college is by A. submitting a formal proposal. C. reviewing the production schedule. B. asking her college counselor. D. reading the employee handbook.

2. D Reading the employee handbook. Employee handbooks provide information about the company's general policies and procedures, such as overtime and vacation policies, pay schedules, dress codes, behavioral expectations, and tuition reimbursement. Some companies will pay for a portion of their employees' college coursework if it applies to the employee's job. Asking a college counselor, reviewing the production schedule, and submitting a proposal are not ways to obtain information about her employer's tuition reimbursement policies.

Which of the following statements is true about the business communications in Guatemala: A. It is an acceptable practice to discuss political and environmental issues with Guatemalans. B. Guatemalans prefer to get right to business rather than engaging in personal conversation. C. Guatemalans tend to talk at the same time, so foreigners should speak loudly. D. It is customary for Guatemalans to begin with social talk before addressing business issues

20. D It is customary for Guatemalans to begin with social talk before addressing business issues. Establishing personal relationships and understanding their business partners is important to Guatemalan businesspeople. Therefore, it is customary for Guatemalans to engage in light social talk before getting down to business matters. Speaking loudly is impolite to Guatemalans. Social discussions should consist of light subjects such as Guatemalan geography or culture. Avoid political debates with Guatemalans, as the country has experienced political unrest in recent years.Whi

Which of the following best exemplifies an individual's career progression: A. Sales representative, sales director, and operations manager B. Advertising coordinator, promotions manager, and vice president of marketing C. Lead buyer, assistant buyer, finance manager D. Accounts-receivable clerk, production manager, human-resources assistant

5. B Advertising coordinator, promotions manager, and vice president of marketing. A career describes a lifetime work history or long-term participation in a particular field of expertise. As individuals progress in their careers, they tend to work in the same field and gain more responsibility with each job that they hold. An example of a career progression is a person who starts working as an advertising coordinator, and then moves to a higher position, such as a promotions manager. The individual may then be promoted or go to work for another company as the vice president of marketing. The remaining listings of job titles involve job changes to different areas of expertise

A business establishes virtual workspaces for several project teams in which information and expertise are continuously updated and shared among all of the work teams' members. What form of knowledgemanagement technology is the business using? A. Remote search engines C. Knowledge-mapping tools B. Knowledge repositories D. Decision-support systems

5. B Knowledge repositories. Effective knowledge management tools support the collection and sharing of tacit and explicit knowledge. Knowledge repositories provide the team members of various teams and departments the ability to share their expertise to increase efficiency and solve problems. A search engine is a software program that automatically crawls the Web looking for information pertaining to specified search terms and displays a list of results. Knowledge-mapping software provides the ability to capture a business's information sources and information flow in a graphic format. Decision-support system applications retrieve and organize data to facilitate the business's decision-making processes.

Which of the following are examples of expenses that should be considered when developing a personal budget: A. Food, utilities, and salary C. Rent, entertainment, and insurance B. Insurance, dividends, and utilities D. Entertainment, wages, and utilities

5. C Rent, entertainment, and insurance. Individuals develop personal budgets to help them manage their money. A budget is an estimation of income and expenses. Expenses are money that a person spends and may include rent, entertainment, insurance, food, and utilities. Salaries (wages) and dividends are sources of income

When writing a persuasive business message, you should remember to A. communicate your personal goals. B. describe the benefits to the audience. C. open the message with an meaningful quote. D. place the least important information at the beginning.

6. B Describe the benefits to the audience. The primary goal of a persuasive message is to influence behavior. Influencing others involves communicating benefits of taking action. The readers are more likely to respond favorably to the message if they know how the action will impact or help them. Communicating benefits is a central element to all types of persuasive messages. The beginning of the message should catch the readers' attention and encourage them to read more. Depending on the type of message, this might involve a quote. The message should be concise, so it should not contain unimportant information. The message should be written to communicate the business's goals rather than personal ones

6. Which of the following is an action that threatens a company's ability to maintain its trade secrets: A. Systematic neutralizing C. Copyright reform initiatives B. Reverse engineering D. Process fragmentation

6. B Reverse engineering. Reverse engineering is the process of examining the chemical makeup of an existing product on the market. By reviewing the components of the product through independent discovery, a competitor can apply the findings to recreate the product. Although this is a legal practice under trade secret laws in Canada and the U.S., it does hinder the ability to maintain trade secrets for certain types of processes, ingredients, etc. Process fragmentation involves limiting the amount of information employees have about an entire process, which lessens the risk that the company's trade secret will be revealed. Copyrights legally protect written and artistic works rather than trade secrets. Therefore, any reforms to copyright laws would not affect trade secrets. Systematic neutralizing is a fictitious term. SOURCE: KM

Braun Snack Food Company set a goal to produce 65,000 16-ounce bags of tortilla chips per month. What type of organizational goal has Braun established? A. Output C. Profit B. Sales D. Abstract

8. A Output. Organizational goals are the business's overall, desired outcomes. The business sets different types of goals to achieve its overall organizational goals. In the example, the business set a goal to produce a certain amount of product. Products are outputs, so this is an output goal. A sales goal involves the number of products actually sold. A profit goal is the amount of money the business wants to make after all of the expenses associated with the product have been paid. Effective goals are specific rather than abstract.

To make a good impression, individuals should dress conservatively when attending formal business meetings in France. What clothing is the most appropriate to wear? A. Black skirt and ornate jewelry C. Red plaid dress B. Brightly-colored shirt and pants D. Dark, well-tailored suit

8. D Dark, well-tailored suit. Conservative dress involves wearing traditional clothing that is not flashy and does not attract too much attention. When the occasion calls for a conservative and professional appearance, a dark, well-tailored suit is an optimal choice for both men and women. A knee-length black skirt might be appropriate for women; however, brightly colored shirts, pants, red plaid dresses, and ornate jewelry are more likely to attract unfavorable attention and appear unprofessional.

Chileans prefer to have numerous rules, policies, and regulations to guide their actions. As a result, the Chilean culture tends to A. embrace new ideas and change. C. engage in risky business ventures. B. have a low tolerance for uncertainty. D. value individualism

9. B Have a low tolerance for uncertainty. A culture's need to have numerous rules indicates that the people like to know what to expect, which creates a sense of order and control. A culture that adheres to strict rules does not easily accept new ideas or change, nor does it engage in high-risk behavior. When foreign businesspeople understand that the Chilean culture does not feel comfortable with uncertainty, they can adapt their behavior to accommodate the Chilean business culture. Chilean culture is collectivist rather than individualist.

Melissa is thinking about setting up her growing business as a corporation. Which of the following online sources is most likely to have relevant information about how to establish a corporation: A. Wikipedia C. MarketWatch B. Wall Street Journal D. Nolo Legal Encyclopedia

9. D Nolo Legal Encyclopedia (www.nolo.com). Expertise and credibility are primary considerations when evaluating the relevance of a source. Because regulations and legal procedures are important considerations when setting up a corporation, Melissa should obtain information from a source that has legal expertise, such as Nolo Legal Encyclopedia. The Wall Street Journal is a print and online business publication that focuses on a wide variety of business and economic issues and trends. Because Wikipedia is an open source of information that is constantly updated, some of the information might be inaccurate or irrelevant. MarketWatch is a website that focuses on financial issues such as investing and the stock market performance.

Which of the following is an example of a quality control method used in the workplace: A. An advertising manager corrects a copywriter's ad copy. B. A factory production line makes 2,465 widgets per minute. C. An accounts receivable employee submits a weekly report. D. A human-resources manager completes paperwork for a new hire.

A An advertising manager corrects a copywriter's ad copy. An important aspect of quality control is reviewing the finished product to determine if it meets the business's quality standards. Quality is measured throughout all business functions. For example, an advertising manager may be responsible for proofreading and editing a copywriter's work to ensure that the information is accurate and reflects the ad's objective. This process ensures that the ad's quality aligns with the company's overall objectives. The remaining options are routine activities in which the quality of the work is not being evaluated

Which of the following statements is true about an employee's role in meeting organizational goals: A. An employee's performance goals should align with the organization's overall goals. B. The organization should base its overall goals on an employee's personal strengths. C. An employee's attitude is more important in meeting organizational goals than his/her skill set. D. Training programs are ineffective tools for assisting employees to achieve organizational goals.

A An employee's performance goals should align with the organization's overall goals. Employees' goals should help the business achieve its overall goals. For example, a business hires a salesperson to sell products. If the employee meets her/his sales goals, s/he is helping the business meet its overall sales and profit goals. An individual's skills and strengths are criteria that employers usually consider when hiring employees and should align with the organization's goals. Although an employee's attitude is important, s/he must have the skills to perform the job. Comprehensive training programs are effective methods for educating employees and preparing them to perform the jobs. When employees are trained and educated, they are more likely to succeed in achieving their goals—goals that help the business achieve its overall goals.

Which section of the project's statement of work (SOW) is most likely to contain the following information: Collins Corporation anticipates that the project will be completed in 18 months for $1.2 million. A. Cost and schedule estimates C. Scope statement B. Project deliverables D. Benefits and risks

A Cost and schedule estimates. The statement of work (SOW) is a document that outlines the terms, commitments, and conditions of the project. Cost and schedule estimates provide stakeholders with information about the anticipated costs and timelines associated with the project. Deliverables are the goods, services, or documentation that will be provided to the stakeholder upon completion of the project. The scope statement is a component of the SOW that clearly defines the things that the project team will do, as well as the things it won't do. The example does not discuss the benefits and risks associated with the project

A serious accident occurred on Putnam Chemical Company's production line. A Putnam employee questioned the employees who were working during the accident to gather information about the situation. The company plans to use the gathered knowledge to determine the cause of the accident and to develop an action plan to prevent similar problems in the future. What technique did the company use to capture knowledge? A. Critical incident interview C. Creative problem solving B. Brainstorming survey D. Employee performance review

A Critical incident interview. Companies collect knowledge for a variety of reasons. When workplace accidents occur, companies want to know how and why they happened, so they can take steps to prevent similar accidents in the future. Questioning employees who witnessed the accident is a good starting point for determining the cause of the accident. This questioning process is called a critical incident interview. The knowledge gathered from the interviews helps the company understand the circumstances or problems that led up to the accident. Brainstorming is a creative thinking technique. An employee performance review is a formal evaluation of an employee's work efforts

Which of the following is an example of a trade secret: A. Customer list C. Credit report B. Trade journal D. Legal document

A Customer list. A trade secret is information that a business develops or owns that can be used to obtain a competitive advantage or financial gain. Customer lists, recipes, production techniques, and research and development processes are examples of trade secrets. Businesses should develop procedures to protect trade secrets to reduce the risk of competitors obtaining the knowledge for use and gain. Trade journals, credit reports, and legal documents are not examples of trade secrets.

What is an important consideration when selecting graphics and posting them on a business's web site? A. Download time C. Descriptive links B. Font size D. Log files

A Download time. The file size of a graphic affects the amount of time that it takes to appear on the computer screen. The larger the graphic, the more time it takes to download or appear on the computer screen. If graphics are too large, computer users might exit the web site because it takes too long for the graphics to appear on the web page. The font size and descriptive links relate to text elements rather than graphics. Log files are files that provide information about the activities of web-site visitors

The Halifax Retail chain uses computer applications to track its inventory and order goods from its vendors. What form of technology is the company using to streamline its purchasing processes? A. Electronic data interchange (EDI) C. Customer relationship management (CRM) B. Global positioning system (GPS) D. Territorial routing application (TRA)

A Electronic data interchange (EDI). EDI systems allow businesses to transmit information to and from their suppliers. EDI applications can track a business's inventory and determine when the business should reorder, which increases the purchasing function's efficiency. GPS technology involves guiding and tracking vehicles en route to a destination. CRM technology is used to monitor customer data and build ongoing customer relationships. Sales departments use territorial routing software to develop efficient sales-call patterns.

How does the fragmentation of processes help to protect a company's trade secret? A. Employees' knowledge is limited to a specific part of the process. B. It replaces the need to obtain a copyright for intellectual property. C. The company will not need to monitor any part of the process. D. The need for non-compete agreements is eliminated.

A Employees' knowledge is limited to a specific part of the process. By limiting the amount of information employees have about an entire process, there is less risk that the company's trade secret will be revealed. For example, to protect Kentucky Fried Chicken's secret breading recipe (11 herbs and spices), the company mixes small increments of the breading in different locations. Then, the company collects and mixes the smaller increments to create the famous recipe. By fragmenting the mixing process, no single employee knows all of the ingredients. Fragmentation of processes does not replace the need to copyright written or artistic works, eliminate the need for non-compete agreements, or reduce the need to monitor all aspects of the production process.

Which of the following is a "checks and balances" system that often helps companies manage their business risks and monitor the integrity of their organizations: A. Ethics committee C. Retribution board B. Human-resources council D. Executive commission

A Ethics committee. A breach of ethics poses a serious risk to businesses and may result in lawsuits, fines, and other financial losses. Some companies have implemented ethics committees to monitor and guide ethical policies and address ethical issues in the workplace. Committee members are often employees from various departments or divisions at all levels of the organization. Ethics committees help ensure that all employees, management, and board members are following ethical standards and regulations. Human-resources council, retribution board, and executive commission are not groups or systems that monitor the integrity or ethics of a company.

During what phase of the project life cycle does the project manager activate project controls? A. Execution C. Definition B. Planning D. Closing

A Execution. During the execution phase, project activities are being carried out. During this phase, the manager controls and monitors the work that is being performed. During the definition phase of the project, the project is initiated and the project charter is developed. The project objectives, work breakdown structure, and resource allocation needs are established during the planning phase of the project. During the closing phase of the project, the deliverables are evaluated and team members and equipment returned or reallocated to other functions.

What type of computer program is specifically designed to minimize business risks associated with internal theft? A. Fraud detection C. Malware B. Firewall D. Antivirus software

A Fraud detection. To reduce the risk of internal theft, businesses often use fraud detection software. Fraud detection software can detect problems relating to issues, such as policy violations, embezzlement, and suspicious social networking activity, in real time. Firewalls secure a business's computer network from unauthorized external users. Malware is an illegal form of technology designed to disrupt computer systems. Antivirus software is designed to protect computers from malware.

Saudi Arabian women are not permitted to travel outside the country without obtaining permission from their male guardians. This is a cultural issue related to A. gender roles. C. appropriate gestures. B. language differences. D. dress and appearance.

A Gender roles. Values, expectations, roles, and rules for women differ by culture. In Saudi Arabia, women do not drive cars, and a woman is not permitted to travel abroad without the consent of her husband or male guardian. In many situations, a male guardian must accompany a female who is travelling to another country. The example is not an issue related to language differences, appropriate gestures, or dress and appearance.

Which of the following is an example of an extensive decision: A. Hiring a new department manager C. Wearing a blue suit to a meeting B. Printing a document on yellow paper D. Booking an airline flight for a business trip

A Hiring a new department manager. An extensive decision is a type of decision that requires a lot of consideration. Hiring a department manager is an extensive decision because the decision maker(s) must evaluate each applicant's skills in relation to the standards and expectations for the position. Often, this requires a lot of input from others, including other department managers and executive-staff members. Printing a document on yellow paper and wearing a blue suit to a meeting are routine decisions. Booking an airline flight for a business trip is an example of a limited decision because the individual has a few alternatives (flights) from which to choose.

Company B's management has determined that it must downsize. Three persons in the customer service department will lose their jobs. Which of the following records can management use to help them determine which employees to keep: A. Human resources records C. R&D records B. Production records D. Inventory records

A Human resources records. A company's human resources records include employee attendance as well as notes (positive or negative) about each employee's performance. Production records would not be helpful in evaluating customer service employees because those employees do not work in the part of the company that produces the products. R&D records are not helpful because customer service employees do not work in research and development. Inventory records track the products in the warehouse, which is not the responsibility of the customer service department.

Which of the following is the medium that is most appropriate to use for communicating and obtaining indepth information: A. Internet C. Satellite radio B. High definition television D. Scanne

A Internet. The Internet is a worldwide network of computers that enables users to access information and communicate with others. The Internet provides businesses with the ability to post a lot of information (e.g., product information) in a cost effective way. The Internet also provides consumers with the ability to obtain a lot of product information from a central location at their convenience. Many web sites have employees who answer customers' questions in real time through chat-room and text-messaging capabilities. High definition television (HDTV) and satellite radio are forms of media that communicate information; however, they are expensive forms of media, and are limited in scope, depth of information, and interactivity. Scanners are electronic tools that transmit paper copies of text and graphics into a computer.

Which of the following is a true statement about a project charter: A. It serves as authorization to start the project. B. It assesses the actual outcomes of the project. C. It describes in detail the tasks to complete the project. D. It can be modified by the project team members.

A It serves as authorization to start the project. The project charter is a document that outlines the purpose and terms of the project. It serves as a contract with the project's stakeholders. When all stakeholders agree and sign the project charter, it serves as authorization for the project team to begin the project. Actual outcomes cannot be assessed until the project is completed. The work breakdown structure divides the project into work packages and tasks. Often, detailed task information is described in the work breakdown structure dictionary. The project charter may be slightly modified, but any modifications must be approved and signed off on by all stakeholders. Usually, any modifications to the project charter are made by the project manager.

When a manager is making a routine business decision, s/he usually needs A. minimal input from others. C. to write down all feasible options. B. a lot of input to obtain many points of view. D. to analyze the level of risk involved

A Minimal input from others. Routine decisions are types of decisions that people make every day without much thought or input. For example, a business runs out of copy paper, so the purchasing manager orders some more. This type of decision does not need a lot of input from others, nor does it require the manager to write down the options, or analyze the risk. The decision is routine—the business cannot function without having the sufficient supplies

What activity helps businesses identify the various opportunities for continuous quality improvement? A. Monitoring data C. Establishing budgets B. Setting goals D. Rationing resources

A Monitoring data. Continuous improvement is an ongoing process that looks for ways to increase the levels of excellence in relation to a process, good, or service. By monitoring various data, the business can detect problems, which can help the business identify ways or opportunities for improvement. After the business identifies opportunities for improvement, it can set goals to improve quality. The improvement goals may or may not include budget and resource issues.

Which of the following should effective managerial planning do: A. Reduce uncertainty C. Achieve goals B. Limit communication D. Provide a chain of command

A Reduce uncertainty. Planning is the management function of deciding what will be done and how it will be accomplished. Planning activities focus on deciding what will be done and setting goals that the business eventually wants to achieve. When plans are communicated to employees so they understand where the business is headed, it can reduce uncertainty and confusion. The organizing function of management establishes a chain of command.

Although it placed an order three weeks ago, a flower shop determines that it needs to purchase an additional four cases of Model R28 glass flower vases for its flower arrangements. What type of order is the shop placing with its primary vase supplier? A. Reorder C. Advance order B. Open order D. Backorder

A Reorder. A reorder is an order for the same goods previously ordered from the same vendor. An open order is an order for staple goods that is placed with one of several available vendors who can meet the business's immediate requirements (e.g., time, price, quantity). An advance order is a regular order that is placed now with delivery requested at a future time (e.g., weeks, months). When a regularly stocked item is temporarily out of stock, the item is backordered. Unless the purchase order states to cancel backorders, businesses typically ship backordered items when they become available

In which section of the statement of work (SOW) document would you find the following information: "AJB International will be responsible for collecting the research for the project, but will not interpret the results." A. Scope statement C. Purpose statement B. Communication plan D. Goals and objectives

A Scope statement. The statement of work (SOW) is a document that outlines the terms, commitments, and conditions of the project. The scope statement is a component of the SOW that clearly defines the things that the project team will do, as well as the things it won't do. The purpose statement defines the purpose of or reason for carrying out the project. The communication plan provides details about the types of reports and other forms of communication that the project team will provide stakeholders. The goals and objectives section of the SOW outlines the desired outcomes of the project.

Which of the following is the management function that focuses on matching the appropriate person with the necessary skills for a specific job: A. Staffing C. Coordinating B. Interviewing D. Leading

A Staffing. Staffing is the management function of finding workers for a business. Recruiting, interviewing, hiring, and training are staffing activities. Leading is an activity that involves influencing and motivating others to take a certain course of action. Coordinating is an organizing activity that involves bringing resources together to accomplish a goa

A primary reason that businesses expect employees to follow their rules of conduct is to A. standardize behavior. C. eliminate conflict. B. influence opinions. D. assess responses.

A Standardize behavior. A business's rules of conduct outline its expectations regarding employees' behavior in the workplace. The purpose of the rules is to provide consistent or standardized behavior among employees, which helps to maintain a fair work environment. Rules of conduct may help reduce conflict because the employees know and understand what is expected of them; however, rules do not eliminate all conflict in the workplace. Influencing opinions and assessing responses are not reasons why businesses expect employees to follow rules of conduct

The primary purpose of the organizing function of management is to provide A. structure. C. insight. B. leverage. D. motivation.

A Structure. The organizing function of management focuses on setting up the way the business's work will be done. Organizing provides the business with structure—a systematic, orderly way for carrying out activities to accomplish the business's goals. Insight can help managers develop the best structure for the business. Leverage refers to the amount of power one person holds during a negotiation. Motivation is directing activity.

What type of organizational goal involves increasing the business's efficiency? A. System C. Ideological B. Product D. Personal

A System. System goals are types of organizational goals that impact various levels of efficiency throughout the organization. System goals involve the efficiency of many types of work processes, production efforts, human resources, etc. Product goals are organizational goals that involve the goods and services the business provides. Ideological goals involve the vision and general purpose of the company's existence. A personal goal is an individual's own goal, which may involve school, work, career, health, etc

What is a necessary component of quality-assurance activities? A. Systematic process C. Classified information B. Product innovation D. Supplier input

A Systematic process. Quality assurance is a process that businesses use to prevent defective products from being created, not just to eliminate or correct them after they have already been produced. Quality assurance involves developing and executing processes in a methodical (systematic) way to ensure that the business creates products that meet its product standards. Product innovation is a part of the product-development process. Classifying information is an information-management activity. The need for supplier input depends on the type of product and the nature of the business's relationship with the supplier.

An organization's product goals often involve setting standards for A. the variety of its goods and services. C. expenses and income. B. behavior in the workplace. D. the target market's expectations.

A The variety of its goods and services. Organizational goals are the overall objectives or desired outcomes that the business wants to achieve. Businesses set different types of organizational goals. Product goals involve setting standards for various characteristics of the business's products—quality, style, durability, variety, etc. Expenses and income are budgeting (financial) considerations. Establishing guidelines for workplace behavior are human-resources goals. Consumer goals involve setting standards and objectives to accommodate the target market's needs, wants, and expectations.

What characteristic of a SMART objective does the following statement exemplify: Phase one of the project will be completed on May 10, 2012. A. Time-bound C. Motivational B. Realistic D. Structured

A Time-bound. SMART is the acronym for specific, measurable, achievable, realistic and time-bound, which are the characteristics of effective goals. In the example, the goal states that phase one of the project will be done by a specific date, making it time-bound. There is not enough information provided to determine if the stated completion date is realistic. Motivational and structured are not words that apply SMART objectives

An effective way to prioritize work is to categorize tasks in A. order of their importance. C. numerical sequence. B. alphabetical order. D. relation to enjoyment level

A Order of their importance. Prioritizing involves ranking things in the order of their relative importance. Individuals evaluate many factors when prioritizing their work, including due dates and the time that it will take to complete a task. Categorizing tasks in alphabetical or numerical order are not effective ways to prioritize tasks. Sometimes, the most difficult or unpleasant tasks are the most important to complete; therefore, prioritizing work in relation to the level of enjoyment you have while performing the task is not an effective method to use to set priorities.

To perform his job, Andrew works a complex database program. Recently, a new version of the database program that he uses was released. The new program is more powerful, efficient, and user friendly. To learn how to use the program effectively, Andrew signed up to take a class at the community college. In this situation, Andrew is continuing his education so that he can A. update his technical skills. C. ensure his employability. B. change his career path. D. obtain professional licensure.

A Update his technical skills. Because technology is constantly changing, workers must keep up with the changes to enhance their employability. Taking short- or long-term computer classes helps workers to learn skills they need to perform their work. There is not enough information to determine if Andrew is changing his career path or obtaining a licensure.

The best way for people to obtain information about a variety of career fields and options is by A. accessing online employment services. C. completing job applications. B. joining social organizations. D. reading virtual textbooks.

A Accessing online employment services. Online employment services such as Careerbuilder.com and Monster.com provide information about a variety of careers and industries. Employment-services web sites provide information about the skills and education needed to perform certain jobs as well as the pay ranges for those jobs. Many of these sites offer career planning quizzes that help individuals determine the types of careers that they may be best suited for. Joining social organizations, completing job applications, and reading virtual textbooks are not the best ways in which people obtain information about a variety of career fields and options.

Tonia was just hired as an assistant brand manager at Drake Goodwin. She is amazed at the fast-pace of the office. Everyone looks very busy, especially her supervisor. This morning when she arrived, there was a note from her supervisor on her desk explaining what she should do today. After reading it several times, she thinks she understands her assignment, but isn't positive. She can see her supervisor is busy on a phone call. What should she do? A. After her supervisor ends the call, ask her to clarify the instructions B. Ask a coworker to read the note and help her understand it C. Work on the task to the best of her ability D. Work on a different task that she is comfortable doing

A After her supervisor ends the call, ask her to clarify the instructions. It is always best to get clarification straight from the source of the information. Most supervisors will appreciate an employee who knows how to collect facts and then do a job well instead of an employee who guesses and then wastes time completing the wrong thing. Asking a coworker may lead to an incorrect guess as well. Proceeding without clarification may lead to time and effort wasted. Working on something else means that Tonia ignored her supervisor's wishes for the tasks to be done today.

Cameron said to his manager, "The order didn't ship because Sam didn't tell me that we didn't have enough items in stock." What is Cameron doing? A. Blaming another person for a communication breakdown B. Acknowledging that he failed to follow through with the order C. Stating the facts on Sam's behalf D. Responding to inappropriate remarks

A Blaming another person for a communication breakdown. When you accept responsibility for your behavior, you are willing to accept the consequences of your actions. In Cameron's situation, he is blaming another person for a work-related mistake. While Sam may be partially responsible for not communicating the stock outage to Cameron, Cameron did not follow up on the order. If he had followed up on the order, he may have detected that there was a problem. Cameron is not acknowledging his responsibility for the problem, and he is not stating facts on Sam's behalf. Sam may have another view or opinion about the chain of events. There is not enough information provided to determine if Cameron's manager made an inappropriate remark.

The chief executive officer (CEO) of a public corporation reports to the A. board of directors. C. chief financial officer. B. executive staff. D. regulatory agency.

A Board of directors. A corporation is a form of business ownership that is owned by stockholders who have purchased units or shares of the company. Corporations are governed by a board of directors, which consists of people, sometimes shareholders, who make decisions about the business's activities. The corporation's CEO directs the executive staff (e.g., chief financial officer, vice president of operations) to execute these decisions. Therefore, the CEO reports to the board of directors. The CEO is expected to follow government regulations, but does not report to regulatory agencies.

The Walt Disney Company pledges to provide "quality entertainment for the whole family." This is an example of a company's A. brand promise. C. brand strategy. B. touch point. D. ad campaign.

A Brand promise. The brand promise is a company's agreement (spoken or unspoken) with customers that it will consistently meet their expectations and deliver on its brand characteristics and values. Strategies are the activities the business uses to fulfill its brand promise and achieve its business objectives. Touch points are all of the opportunities that a business has to connect with its customers and reinforce its brand value. Disney uses many touch points to create "quality entertainment" experiences for its customers through its theme parks, films, and television shows. Advertising is a form of promotion to attract customers and reinforce the business's image or brand.

Over lunch, Louise tells her new friend that she loves to write. Over the past 20 years, she has been a newspaper reporter, written a magazine column, taught writing at a local college, volunteered as a writing tutor at an elementary school, studied journalism in New York, and even had a novel published. Louise is describing her A. career. C. occupation. B. job. D. work environment

A Career. A career describes a lifetime work history or long-term participation in a particular field of expertise. Louise has had a career in writing. A job is one specific paid position with tasks set by an employer, such as writing an advice column for a newspaper. Though Louise has held many jobs over her life, she is discussing a pattern of jobs and experience that have formed her career. An occupation is a group of related tasks that requires special training, education, or experience to learn a specific set of skills. Louise's occupation is writer, but the things she describes combine to form her career. If Louise were discussing her work environment, she would be discussing the surroundings and conditions of her workplace, such as a small home office.

Many cultures associate white with cleanliness, while Chinese culture associates white with death. This is an example of how different cultures perceive A. color. C. opacity. B. dress. D. language

A Color. Different cultures attach different associations to certain colors. Therefore, it is important for businesspeople to know and understand these differences when conducting business in other countries. The situation does not exemplify a cultural difference in relation to dress, opacity, or language.

What type of divisional structure is most appropriate for a company that sells lumber products to home builders, home-improvement retailers, retail display-case manufacturers, and furniture producers? A. Customer type C. Geographic region B. Process D. Unilateral

A Customer type. Dividing a company by the type of customer is often beneficial for businesses that serve different types of customers, such as industrial customers and consumer customers. This divisional structure is appropriate to use when selling goods to customers that build complex products and require salespeople to understand industry jargon and concepts. The divisional structure by process has a manager for each step in the production process and is often used by manufacturing companies. Multinational corporations and retailers often divide a company by geographic region or territory. Unilateral divisional structure is a fictitious term

Roberto has just finished giving a presentation about global warming. An obviously irritated audience member stands and says that there is no evidence to prove global warming exists. Roberto calmly reads results from three scientific reports on its existence. Roberto's response is an example of A. defending an idea objectively. C. a transition. B. an effective conclusion. D. expressing a cultural barrier.

A Defending an idea objectively. Roberto is using facts to overcome an objection and defend his idea in a professional manner. A conclusion is the prepared ending of a presentation. Since Roberto had just finished his presentation, he had already delivered the conclusion. A transition occurs mid-speech to shift from one point to another smoothly. Cultural barriers to new ideas occur when a person allows his/her cultural background to affect his/her thinking. Roberto is trying to overcome a barrier to his presentation by using fact-based research.

A business often compares its similar financial information from different time periods to A. detect trends. C. evaluate competitors. B. control markets. D. influence buying behavior.

A Detect trends. Business analysis is the process of investigating and evaluating a business issue, problem, process, or approach. Businesses analyze financial data to evaluate the financial well-being of their operations at any given time. By comparing the same type of financial information from different consecutive time periods, a business can detect trends. By detecting trends, the business can determine if it needs to make changes. For example, if the business notices a substantial increase in sales-dollar volume over a three-month period, trends indicate an increase in spending. The business may decide to conduct further analysis to determine what customers are purchasing, and decide if it needs to increase the production or inventory-levels of certain products. Businesses analyze markets for many reasons, but they cannot control market activity. To analyze its competitors, a business needs to obtain and review external data. Comparing internal financial data cannot influence buying behavior.

What is the potential benefit to a business that continuously takes action to improve the quality of its goods and services? A. Higher demand C. Increased premiums B. Increased product options D. Higher costs

A Higher demand. Continuous improvement is an ongoing process that looks for ways to increase the levels of excellence in relation to a process, good, or service. Potential benefits of improved processes often increase the business's productivity levels. Increased productivity levels result in increased outputs, lower costs, and increased revenue. When quality improves, customer satisfaction levels often increase, which often results in a higher demand for the business's goods and services. A premium is an item that a business offers to the purchasers of a particular product. Offering premiums to customers and increasing product options do not impact the continuous quality improvement efforts of a business's products.

What is an important question that all businesses should answer about their ethical behavior in managing their customers' information? A. How do we obtain information about our customers in ways that do not violate their privacy? B. What information do we need to obtain about our customers to determine their ability to pay? C. What research method will provide the most comprehensive results about our competitors' activities? D. Where can we obtain general demographic information about untapped market segments?

A How do we obtain information about our customers in ways that do not violate their privacy? Businesses can track their customers' purchasing habits in many ways—from Internet surfing activities to point of sale data. Businesses must carefully weigh how to obtain, store, release, and use this information to protect their customers' right to privacy. Society values this right, and if it is breached (e.g., selling customer lists to third parties without customer authorization), customers may go to competitors to purchase goods and services. When developing credit policies, businesses establish criteria and must identify the information they need to determine their customers' ability to pay. Research methods used in a competitive analysis and sources of primary and secondary research are not directly associated with the business's ethics and its customer-related data.

Which of the following statements is true about emotional intelligence: A. In many situations, individuals can improve their levels of emotional intelligence. B. Research indicates that emotional intelligence rarely affects a person's career success. C. Effective leaders tend to have low emotional intelligence and high cognitive abilities. D. It is easier to develop cognitive abilities than it is to develop emotional intelligence levels.

A In many situations, individuals can improve their levels of emotional intelligence. Emotional intelligence is the ability to recognize and manage emotions in ourselves and in others. Individuals who are willing to recognize, evaluate, and change the way they relate with others can improve their emotional intelligence. People who have high levels of emotional intelligence tend to be effective leaders and achieve career success because they can relate well with others. Cognitive intelligence involves the ability to reason and apply logic. An individual's cognitive abilities are influence by biological and heredity factors, which are not easily changed

Which of the following is an example of a purpose statement in a research report: A. In this study, we will examine the causes and effects of global warming. B. In 2005, Sims Research surveyed 150,000 college professors. C. The quality of soil may affect plant growth. D. 2,500 residents reported power outages during the ice storm.

A In this study, we will examine the causes and effects of global warming. The purpose statement appears in a research report's introduction and summarizes the purpose of the report, such as the causes and effects of global warming. The background section of a research report provides pertinent information previously gathered by other researchers, such as the 2005 survey conducted by Sims Research. A hypothesis is a proposed explanation of a situation or event, such as how the quality of soil may affect the growth rate of a plant. Factual statements contain true data or information that can be verified, such as the number of reported power outages during a specific event or time period.

When Jane received her first paycheck from her part-time job, she was surprised to see the amount was much less than her $8.00 per hour pay rate multiplied by the number of hours she worked. Jane had not planned on __________ tax being taken out of her paycheck. A. income C. sales B. property D. excise

A Income. Income tax is a tax rate on all income a person earns. A percentage of Jane's pay is taken out to pay for this tax. Property tax is tax on property, such as a home. Consumers pay a sales tax when they purchase many types of goods. Since Jane is receiving her pay, not buying a good, sales tax does not apply. Excise taxes are taxes paid when purchases are made on a specific good, such as gasoline. Excise taxes are often included in the price of the product.

Which of the following is NOT a fiscal cost that results from a high unemployment rate: A. Increase in crime rate recognized C. Reduction in sales taxes collected B. Reduction in income taxes collected D. Increase in unemployment benefits paid

A Increase in crime rate recognized. While the crime rate often does increase in a time of unemployment, the crime rate is a social cost, not a fiscal cost. Income taxes will decrease during high unemployment because fewer people have incomes that can be taxed. Sales tax collections will decrease because people have less money to spend on goods that are taxed. Higher unemployment means more people will be collecting unemployment benefits from the government, resulting in higher fiscal costs

Joseph is the vice president of finance for a large corporation. Recently, he told his sister to dump her stock in the company because it is about to declare bankruptcy. In some countries, Joseph could go to prison for breaking laws pertaining to A. insider trading. C. money laundering. B. embezzlement. D. bribery.

A Insider trading. Insider trading involves leaking information to others that is not known to the public. Insider trading laws vary by country, but violators could face imprisonment. In Joseph's situation, he told his sister about the company's bankruptcy before it was made public so she could try to sell her stock before she lost money. Embezzlement involves theft of valuables that have been entrusted to another's care. Money laundering involves legitimizing money that was obtained illegally. A bribe is an illegal payment intended to secure business or products In return.

What is most likely to happen when interest rates rise? A. Investment activity decreases. C. Business profitability increases. B. The demand for credit increases. D. The value of the dollar decreases.

A Investment activity decreases. When interest rates increase, consumer and business spending tend to decrease because the cost of buying on credit becomes more expensive. As a result, individuals and businesses save rather than spend; the demand for credit tends to decrease; business profitability declines due to reduced consumer spending; and businesses are less likely to invest their money and expand business activities. When policies are implemented to control inflation, interest rates increase, the money supply tightens, and lenders approve fewer loans. Therefore, the value of the dollar increases.

. It is best for a business to negotiate terms-of-sale face-to-face with a vendor when the A. item to be purchased is new and complex. C. expectations are mutually clear. B. costs and risks of the purchase are low. D. relationship is unimportant.

A Item to be purchased is new and complex. It is not always necessary to negotiate terms face-to-face, which can be time-consuming and expensive. However, there are occasions in which face-to-face negotiations are desirable, such as when the business is purchasing a new item that is complex and expensive. Complex items may require the vendor to provide training and support, so the business may want to meet with the vendor to negotiate these types of details. If the expectations are clear among all parties, the costs and risks associated with the purchase are low, or the relationship is not important to either party, negotiations do not usually need to take place in face-to-face meetings.

Which of the following is an example of an employee exhibiting self-confidence: A. Jane believes that she can respond to unknown circumstances in a positive, calm way. B. Ted is nervous about making his presentation because he forgot to bring his note cards. C. Lindsey is embarrassed because her supervisor asked a question that she could not answer. D. Sam tries very hard to do his job well but becomes frustrated when he makes a small mistake.

A Jane believes that she can respond to unknown circumstances in a positive, calm way. Self-confidence is a positive belief in your own talents, skills, and objectives. Because Jane believes that she can respond to unknown circumstances in a positive way, she is a self-confident person. Being nervous, being embarrassed, and being frustrated may indicate a lack of self-confidence.

Planning ahead and estimating the time it will take to complete your tasks will help you to A. manage your work commitments effectively. C. improve your technical skills. B. learn how to procrastinate. D. reduce your workload.

A Manage your work commitments effectively. By planning ahead and determining how long it will take you to complete your tasks, you can better manage your commitments. Planning your work helps you to avoid scheduling too many activities that are close together, which may cause you problems in maintaining commitments. Planning your workload also reduces procrastination, which is putting tasks off until the last minute. Training and practice, rather than planning ahead, will help you to improve your technical skills. Planning ahead and estimating the time it will take to complete various tasks will not reduce your workload, but will help you work more efficiently.

Japanese companies tend to use a "hands off" approach in supervising employees, allowing them to help shape company policies. However, in many North American companies, the executive officers set policies and have active supervisory roles. This is a cultural difference related to A. management style. C. corporate needs. B. creative thinking processes. D. business technology.

A Management style. Business management styles vary by culture or country. When conducting business with foreign companies, it is helpful for businesspeople to learn about these differences, so they can understand and adapt to their management style. Innovation, business objectives or needs, and technology can affect a business's management style.

Jessica must develop an analytical report that assesses the product opportunities for 18- to 34-year-old sports enthusiasts in the greater Seattle area. What type of analytical report is Jessica writing? A. Market analysis C. Justification B. Troubleshooting D. Feasibility

A Market analysis. Analytical reports are documents that evaluate issues, opportunities, or problems. A market analysis is a type of analytical report that evaluates a particular market. A market, for example, might include a specific age range of a particular group who live in a specific geographic location. Troubleshooting reports address specific problems, such as a problem with a process. A justification report is a type of analytical report that evaluates the success or failure of a previous decision or course of action. A feasibility report summarizes the positive and negative consequences of taking a certain course of action.

One tool that businesses can use to allow employees and customers to share knowledge through their web sites is by posting A. message boards. C. bots. B. meta tags. D. interesting content

A Message boards. A message board is a page on a web site that allows computer users to ask questions and post responses to the questions. Message boards allow customers and employees to share information to solve problems, which may or may not contain interesting content. Meta tags are Hypertext Markup Language (HTML) codes that display information about web pages. Bots are computer programs that scan the WWW to find computer-program updates.

What can businesses do to reduce risks associated with noncompliance? A. Monitor regulations C. Obtain customer feedback B. Evaluate competitors D. Allocate operating funds

A Monitor regulations. Risk management is a business activity that involves the planning, controlling, preventing, and procedures to limit business losses. If a business does not comply with laws, the government may fine the business, which could result in substantial financial losses. Therefore, it is important for a business to continuously monitor government regulations to ensure that it is in compliance, and make changes, if necessary, to become compliant. Evaluating competitors, obtaining customer feedback and allocating operating funds are not actions that will reduce risks associated with noncompliance.

Which of the following is an example of a project manager delegating responsibility to a project team member: A. Nina advises Milton that he is responsible for preparing the team's weekly status report. B. Bill tells Peter that he needs to remember to include a cover sheet with his TPS report. C. Stan asks Joanna and Tom for suggestions to improve process efficiency. D. Anne determines that Bob has the desired organizational skills to be on the project team.

A Nina advises Milton that he is responsible for preparing the team's weekly status report. Delegating is assigning authority or responsibility to another person and is an important aspect of effectively managing a project team. Delegation involves matching project tasks and activities with the team members who have the skills and expertise to perform them. Because Nina gives Milton the authority to prepare the team's weekly status report, she is delegating responsibility. Bill is providing Peter with critical feedback. Stan is asking Joanna and Tom to help him brainstorm ideas to solve a problem. Anne is conducting a staffing activity by determining that Bob possesses skills that she needs for her project team

Joe has a two-hour sales meeting with a new customer at 10 a.m. today. Early this morning, a vendor telephoned Joe to schedule a one-hour luncheon meeting to discuss a coop-advertising program. The vendor would like to meet at a restaurant that is 30 minutes from Joe's office at 1:00 p.m. today. Joe must be back at his office by 2:00 p.m. for an important computer training session. Should Joe meet with the vendor today? A. No. Joe would have only 30 minutes to meet with the vendor before he needs to return to the office. B. No. It is rude for the vendor to assume that Joe has time to meet today. C. Yes. Joe can meet with the vendor after he reschedules his training session. D. Yes. Joe can meet with the vendor after the vendor changes the lunch reservation to 12:45 p.m.

A No. Joe would have only 30 minutes to meet with the vendor before he needs to return to the office. Managing work commitments in a timely manner involves allowing enough time to complete the most important tasks first. Joe had commitments that he needs to keep from 10 a.m. to 12 p.m. and at 2:00 p.m. Because the vendor asked Joe to meet at a restaurant that was 30 minutes away from his office, he doesn't have enough time to meet with the vendor for one hour at 1:00 p.m. If the vendor is not available at an earlier time at a closer location, Joe must decline the luncheon invitation and schedule it at a time that is more convenient for both of them. It's not unusual for last-minute meetings to take place, if other commitments are not an issue. Therefore, the vendor was not being rude by asking Joe if he had time to meet. There is not enough information to determine if Joe had the authority to reschedule the training session. Moving the lunch reservation to 12:45 p.m. would not help because Joe would be 15 minutes late to his training session.

What is required of businesses to maintain positive, long-term relationships with their suppliers? A. Ongoing communication C. Autocratic management B. Flexible lead times D. Rigid policies

A Ongoing communication. Ongoing communication is necessary to build trust, respect, and a mutually beneficial partnership which, in turn, helps build a long-term business relationship. The amount of lead time depends on the nature of the product and cannot always be flexible. Policies that are too rigid may have negative effects on the relationship rather than positive effects. Autocratic management involves a dictatorial leadership style in which the leader determines all policies, maintains close control, and lets employees know only what they need to know to do the job.

One form of technology that businesses use to personalize their ongoing communication with customers is A. opt-in e-mail. C. infomercials. B. banner ads. D. radio messages

A Opt-in e-mail. Technology allows a business to track a customer's web page visits and purchasing habits, which helps the business develop a personal profile of the customer. This information helps the business develop product suggestions and customize sales promotions to offer the customer. These offers are often sent to the customers via opt-in e-mail-or promotional messages that customers permit the business to send to them electronically. Banner ads, infomercials, and radio messages are forms of nonpersonal promotion.

To help new employees become familiar with the business environment and company culture, companies often conduct A. orientation sessions. C. application screenings. B. performance evaluations. D. financial seminars.

A Orientation sessions. An orientation program makes new employees feel welcome, gives them a general overview of the business, and helps to motivate them to do their best. Orientation sessions often include activities such as reviewing general company policies and compensation, describing training programs, providing a tour of the facilities, and introducing the new employees to their coworkers. Performance evaluations, application screenings, and financial seminars are not activities that help new employees become familiar with their new business environment.

Which of the following is most likely to lead to lower performance quality in the workplace: A. Overcommitment C. Reasonable project deadlines B. Weekly status meetings D. Long-term goals

A Overcommitment. It is important for workers to assess the time involved with a project before volunteering to work on it. When workers volunteer to take on too many activities (overcommitment), they often find that they do not have enough time to complete the projects thoroughly and correctly, which affects the quality of their work. If project managers set reasonable deadlines, work quality is less likely to suffer because team members have more time to ensure that they do their work correctly. Weekly status meetings may improve work quality because the updates may identify problems that require corrective action. Long-term goals do not tend to lead to lower performance quality in the workplace.

A developing country sets its currency to be the same value as the U.S. dollar. This is called a(n) A. pegged currency. C. indirect exchange rate quotation. B. free-floating currency. D. direct exchange rate quotation

A Pegged currency. A pegged currency is set by a country's government to mirror another country's currency. This is often done by developing nations to give its currency stability. Free-floating currency is the opposite of pegged. Its value fluctuates based on supply and demand. In terms of U.S. dollars, an indirect quote is the number of U.S. dollars that one unit of a foreign currency could buy. In terms of U.S. dollars, a direct quote is the number of a foreign currency that one dollar could buy. For example, a direct quote for the units could be US $1.50 = 1 Euro.

Randy has three tasks that he must complete in the next two days. One task that he must do is to develop the production schedule for next week, which is due by 12:30 p.m. tomorrow and will take him approximately three hours to complete. Randy must also finish a PowerPoint presentation for a meeting at 4:00 today, which will take him approximately two hours to complete. And, he must prepare and place an order for parts by 1 p.m. today, so the order arrives by next Monday. It is currently 12:15 p.m. In what order should Randy prioritize his work load? A. Prepare and place the order; complete the PowerPoint presentation; develop the production schedule B. Develop the production schedule, prepare and place the order; complete the PowerPoint presentation C. Complete the PowerPoint presentation, prepare and place the order; develop the production schedule D. Prepare and place the order, develop the production schedule; com

A Prepare and place the order; complete the PowerPoint presentation; develop the production schedule. Prioritizing involves ranking things in the order of their relative importance. Employees consider many factors when they prioritize their work, such as deadlines and the time it will take to complete each task. The first task that Randy should do is to place the order because this is the tightest deadline, and it will not take him very long to complete. The next deadline he has is to complete the PowerPoint presentation for today's meeting at 4:00. If he begins working on the PowerPoint at 1:00 p.m., he should be done with it by 3:00 p.m., which is an hour before the meeting. The last task on Randy's priority list is the production schedule because it is due the next day. Randy will need to make sure that he arrives at work early enough to finish the schedule in three hours. If Randy followed the sequence of the other options listed, he would not complete all of the work by their deadlines

The operations manager schedules quarterly reviews of office equipment whether there have been recent problems or not. This is an example of A. preventive maintenance. C. safety precautions. B. installation. D. corrective maintenance.

A Preventive maintenance. Preventive maintenance keeps equipment working and potentially expands the life of the equipment. It "prevents" breakdowns. Installation puts equipment into use. Safety precautions are methods of using equipment to ensure the safety of workers. Corrective maintenance is done to repair a specific problem.

A water-filtering company made some changes to it processes that resulted in better tasting water. This is an example of A. quality improvement. C. opportunity cost. B. quality control. D. market development

A Quality improvement. Quality improvement involves using a systematic approach to increase the levels of excellence in relation to a process, good, or service. Taking action to create better-tasting water is improving the quality of the end product—water. Quality control is ensuring the degree of excellence of a good or service. After making the improvements, the company will need to ensure that its products meet the new standards of excellence by implementing different quality-control activities. Opportunity cost is the benefit that is lost when you decide to use scarce resources for one purpose rather than another. Market development is the activities that a business implements to increase its target market.

When the audience wants to know which course of action to take, the writer of an analytical report should focus on A. recommendations. C. progress. B. logical arguments. D. external factors.

A Recommendations. An analytical report is a document that explains and evaluates an issue, opportunity, or problem. A component of the analytical report is the recommendations section, which provides the reader with advice for resolving a problem or acting on an opportunity. The recommendations appear at the end of the report after background information, research, results, and facts have been presented. Writers should include logical arguments for analytical reports in which the topic is controversial, and the audience may disagree with some of the report's information. By providing logical arguments, the writer is more likely to persuade the audience to accept the conclusions. An analytical report may address external factors or the progress of an action, but including this type of information depends on the nature of the report's topic.

ChemTech International plans to build a new research facility, which is to be completed in two years. As an employee with ChemTech, your supervisor has requested that you produce a detailed document to send to potential vendors and contractors that outlines how they should submit bids to perform work for the new facility. The document is to contain instructions about the type of information the potential vendors should provide in their bids, and the format in which the information should be presented. What type of document are you preparing? A. Request for proposal C. Executive summary B. Summary of qualifications D. Business plan

A Request for proposal. Complex projects often require the expertise of external resources. Building a new facility requires skills from architects, construction companies, electricians, etc. And because these types of projects are expensive, companies want to obtain bids from the potential vendors or contractors to determine which one is best suited to perform the work. A request for proposal (RFP) is an invitation for potential vendors to present bids to obtain a contract and perform the work. Because the work is complex, the RFP must include specific information and provide detailed instructions about the way the proposal should be written. Often, an RFP will require potential vendors to provide a summary of qualifications as a section of the proposal. A business plan is a company's blueprint for success—its business model. An executive summary is an element of a business plan and provides and overview of the most important information

In what type of business document would the following statement appear: Employees shall not distribute written materials about religious, political, or social issues on company property. A. Rules of conduct C. Certificate of authority B. Employment application D. Statement of intent

A Rules of conduct. The rules of conduct outline a company's policies, procedures, and expectations regarding employees' behavior in the workplace. Employees must understand and follow the rules of conduct as outlined in the company's policies. Policies often address personal and professional courtesy expectations, confidential information, gift-giving/receiving, etc. These policies are often included in the employee handbook. Often, employers require employees to sign a document acknowledging that they have read and understand the rules of conduct. This document provides employers with legal recourse and protection if employees break company rules, behave unethically, or violate the law. Employment applications, certificate of authority, and statement of intent do not outline the employers' expectations of the employees.

What part of the URL <http://maps.google.com/maps?hl=en&tab=wl> do the letters http represent? A. Scheme C. Path B. Host D. Query string

A Scheme. The scheme identifies the protocol to be used to access the resource on the Internet. It can be HTTP or HTTPS. The host name identifies the host that holds the resource, which is maps.google.com in this example. A path identifies the specific resource within the host that the Web client wants to access, which is /maps in this example. A query string follows a path and provides a string of information that the resource can use for some purpose. In this question, the query string is ?hl=en&tab=wl

What is the best way for David to protect his small company's business records from natural disasters such as fires and floods? A. Store copies of the records in another facility or site B. Keep the records in unlocked file cabinets in the facility's warehouse C. Delegate an employee to ensure that the records are continuously updated D. Purchase insurance from a reputable source

A Store copies of the records in another facility or site. By keeping copies of business records in another facility or storing them on web-based databases, the business has another set (backup) of records if the originals are destroyed. Keeping the original records on site, delegating an employee to update the records and purchasing insurance will not protect the company's business records from natural disasters

A businessperson offended a foreign client when s/he continuously made an insulting gesture. As a result, the client severed ties with the businessperson's company. This situation could have been avoided if the businessperson had A. taken the time to learn about the client's culture before the meeting. B. asked the client why s/he was upset during the meeting. C. made an effort to learn the country's language before the meeting. D. sent a letter of apology to the country's ambassador after the meeting

A Taken the time to learn about the client's culture before the meeting. Because customs and gestures differ by country, businesspeople must understand and monitor their body language, when conducting business in other countries. Certain gestures may be friendly in some cultures and offensive or disrespectful in other cultures. If the businessperson had taken time to learn about the client's country and culture, s/he could have avoided making the offensive gesture altogether. There is not enough information provided to determine if the client expressed his/her discomfort—verbally or nonverbally— about the businessperson's offensive behavior during the meeting. Gestures are nonverbal behaviors rather than a verbal or language barrier. A letter of apology would not have prevented the businessperson from making the gesture in the first place. A letter of apology may have helped smooth things over with the client, but the letter should have been sent directly to the client rather than the country's ambassador.

When prioritizing work, employees should place the most importance on work that involves A. tight deadlines. C. interactive tasks. B. routine activities. D. interpersonal communication

A Tight deadlines. Prioritizing involves ranking things in the order of their relative importance. Individuals evaluate many factors when prioritizing their work, including the task's deadline and the time that it will take to complete the task. If an important report is due in one hour and it takes 30 minutes to prepare, the employee will need to complete the report before working on anything else. Tight deadlines may or may not involve interpersonal communication or the completion of routine activities or interactive tasks

Which of the following is a value-added, non-price issue that is often negotiated with vendors: A. Training C. Credit B. Shipping D. Insurance

A Training. Non-price issues can affect the outcome of a negotiation between a business and vendor. Often, a business will negotiate with vendors to obtain training for complex products. Credit, shipping, insurance are factors that affect pricing.

When a company uses computer software to assess the risk levels associated with alternative actions in a variety of business situations, it is conducting A. what-if planning. C. top-down forecasting. B. product feasibility study. D. qualitative research.

A What-if planning. Companies often use computer software programs to analyze their levels of risk in different business functions. The software calculates a company's risk levels in a variety of scenarios based on different types of data queries. By establishing queries using different combinations of data, the company obtains results under many circumstances. The company analyzes the quantitative results of each scenario and uses them to make business decisions. This process is "what-if" planning. Qualitative research is a study based on opinion or expertise. Top-down forecasting is a method of predicting sales. During the product-development process, businesses conduct product feasibility studies to determine the advantages and disadvantages of producing a certain good or service.

An important characteristic of being adaptable is being A. willing to leave your comfort zone. C. able to assume high levels of risk. B. content with the way things are. D. pleased about changes when they occur.

A Willing to leave your comfort zone. Adaptability is the ability to adjust or modify attitudes and/or behavior to new situations or circumstances. When you are willing to leave your comfort zone, you are accepting new ideas, challenges, and ways to do things. In other words, you are willing to modify your behavior to new situations—you are being adaptable. Being content with the way things are can be a barrier to adaptability. Being adaptable involves risk; however, it does not always involve taking high or unnecessary risks. Adaptability involves adjusting to positive and negative circumstances when they occur. Although you may not be happy or pleased about the changes, you can control the way you react.

42. Zoe noticed that her coworker Tom has been performing a work activity incorrectly. Zoe hasn't corrected Tom because she wants her manager to think she is more competent than Tom. Can Zoe's behavior negatively impact her employer? A. Yes. Tom's errors could be costly to the company. B. Yes. Zoe is violating a procedural law. C. No. Zoe is not a manager and should not train Tom. D. No. Zoe knows that Tom's errors do not affect customer relationships

A Yes. Tom's errors could be costly to the company. Depending on the type of activity Tom is performing and how long he has been performing it incorrectly, his errors could be costly to the business. Tom could be using too many materials to produce a good, or he could be performing a process in a way that takes too much time. Zoe's motives are self-serving because she wants to appear more efficient and competent than Tom. These motives may be driven by a desire to get a salary increase or promotion. Although some people may consider Zoe's motives unethical, there is no evidence that she has violated procedural laws. If Zoe was concerned about the impact of Tom's performance on the company, she could tell Tom what he was doing wrong, or she could advise her manager that Tom was performing a task incorrectly. There is not enough information about Tom's task to know if it directly affects the company's relationships with its customers.

The ABC Company publishes an incorrect statement about the quality of the Marston Company's product. As a result, Marston's sales have dramatically decreased. This is an example of a legal tort related to A. defamation. C. infringement. B. privacy. D. trespassing

A. Defamation. A tort is a private wrongdoing against a person or business. Defamation involves making false statements about another party with the intent to discredit or hurt the other's party's reputation. In the example, ABC's incorrect statement about Marston's products hurt Marston's sales. In response, Marston may file a lawsuit against ABC on the grounds of defamation. The situation is not related to privacy, infringement, or trespassing.

Which of the following scenarios represents a cultural issue associated with personal space for an American businessperson: A. A foreign business associate stands several feet away when talking to the person. B. A European client greets the person with a kiss on each cheek. C. The person is seated in a small room to meet with an international client. D. The person is invited to dine in a busy restaurant following the meeting with an international client.

B A European client greets the person with a kiss on each cheek. The concept of space and proximity differs among cultures. In countries such as the United States and Japan, people prefer to maintain distance from others during conversation. In these countries, maintaining space is a sign of respect for the other person. Kissing someone on the cheek requires close proximity, so the American businessperson may feel very uncomfortable, especially if s/he doesn't know the client well. It is not unusual for Americans to meet in small conference rooms to discuss business or for Americans to dine with clients after a meeting.

A primary use of project-management software is to A. define the project's purpose. C. develop project standards. B. allocate project resources. D. evaluate the quality of deliverables.

B Allocate project resources. Project-management software allows businesses to plan, track, and evaluate all aspects of a project. A comprehensive project-management software program can help the project manager allocate resources—human, financial, material, capital—in the most efficient ways. Stakeholders, rather than software, define the project's purpose, establish the project's standards, and evaluate the quality of project deliverables.

When RWQ Corporation could not obtain insurance coverage to cover a specific type risk from commercial insurance companies, it formed an insurance company to provide coverage for the risk. This is an example of a company managing its risk through a(n) A. organic entity. C. generic provider. B. captive insurer. D. lending institution.

B Captive insurer. When businesses cannot obtain commercial insurance to cover a risk, they may legally form insurance companies as subsidiaries or sister companies to cover the losses associated with the risk. These insurance companies are called captive insurers because they exist only to serve a specific purpose—they are held "captive" by their parent companies. Lending institutions loan money to individuals and businesses. Generic provider and organic entity are not types of insurance providers.

What step in the Plan-Do-Check-Act (PDCA) continuous-improvement technique involves analyzing the results of a small-scale change to determine if the change was effective? A. Do C. Act B. Check D. Plan

B Check. The first step in the PDCA continuous improvement technique is planning a change. During the second step of the process, the business implements (does) the small-scale change. The third step involves checking the results to determine if the small-scale change was effective. If the change was successful, then the business takes action to implement the change on a larger scale.

Luke is reviewing several internal and external reports to compare his company's sales and market share in relation to other companies in the industry. What type of business analysis is Luke conducting? A. Promotional C. Financial B. Competitive D. Productivity

B Competitive. Companies analyze many business functions to determine if they are achieving their organizational goals. Companies analyze their activities in relation to their competitors' activities to determine how well they are performing in the marketplace. If a competitive analysis reveals that a company has lost some of its market share, the company will need to attract new markets or develop new products to improve its market share. Luke will likely review the competitions' promotional, financial, and production processes as part of the competitive analysis if the information is available.

In some countries, pictures are used on packaging to identify contents. Since Gerbers' baby food products feature smiling, healthy babies, the company had to repackage its baby food when doing business in those countries. This problem resulted from issues associated with A. quotas. C. segmentation methods. B. culture. D. trade agreements.

B Culture. Culture refers to the customers, habits, and traditions of a particular group. To appeal to international markets, businesses often need to adapt their products to a specific country's cultural norms. The example is not an issue associated with quotas, segmentation methods, or trade agreements.

41. What is the essential component for effective knowledge management in business? A. Computer access C. Short-term goals B. Communication D. Outputs

B Communication. Knowledge management involves leveraging the expertise, insight, and information of internal and external resources to help an organization achieve its goals. To manage knowledge, there must be communication. Without communication, the knowledge remains limited or unknown. Interpersonal interaction and computers are methods of communicating knowledge. Knowledge must be communicated to achieve short-term goals or to produce outputs in business

Six Sigma focuses on managing quality throughout the organization by focusing on A. creativity and innovation. C. customization and innovation. B. discipline and measurement. D. accountability and creativity

B Discipline and measurement. Six Sigma is a quality-management framework that focuses on continuously setting higher goals of perfection to improve the quality of the business's goods, services, or processes. Six Sigma uses quantitative information (easily measureable facts and data) to assess the degree of improvement at various intervals and to continuously set new improvement goals. Because the goals are measureable, the business must be disciplined in carrying out the activities to achieve the established goals at each interval. Comparing the goals with the results holds the business accountable for its actions. Although creativity, innovation, and customization may be important aspects of developing quality products for some businesses, these aspects are not the focus of the Six Sigma framework.

A luxury spa has experienced decreased sales. The owner believes the reason is a rise in unemployment in the area. What external environmental factor does this represent? A. Sociocultural C. Technological B. Economic D. Governmental

B Economic. Economic trends, including unemployment, have an impact on business. The salon's sales are likely to decline in a time of high unemployment because fewer people have money to spend on luxury goods. Sociocultural factors include population changes, fashion trends, etc. If the business specialized in spa services that became unfashionable, it may see sales decline for sociocultural reasons. Technological factors deal with shifts in the type of technology available/used. Governmental factors are controlled by the government, such as changes in the tax rate or government regulations.

During an executive staff meeting, the company's president stated, "Samari Enterprises experienced a three percent increase during the first quarter and a five percent increase during the second quarter of this fiscal year." The company's president is providing the group with A. tacit knowledge. C. personal opinion. B. explicit knowledge. D. speculation.

B Explicit knowledge. Explicit knowledge is knowledge or information consisting of words, numbers, codes, processes, and formulas that are easily stored, shared, and quantified (measured). The president of the company was communicating specific, measurable, numerical data. Tacit knowledge is knowledge consisting of personal opinions, experiences, expertise, or understanding that is not easily articulated, stored, or quantified. Speculation is hearsay or rumor.

Before you can perform new tasks, you should first read the instruction manual so you can A. apply the directions in reverse order. B. follow the written directions in the proper sequence. C. perform the tasks in the order that you think works best. D. use shortcuts to complete the tasks quickly.

B Follow the written directions in the proper sequence. The first step in applying written directions to perform tasks usually involves reading the directions. Employees need to understand the written directions before they can apply them. If employees do not read the directions and apply them in the proper sequence, they may perform the tasks incorrectly. Therefore, reading the directions for understanding and meaning is an important step. The use of shortcuts to complete a task may or may not be included in the manual's written directions.

Which of the following work tasks must always be completed in designated sequential order: A. Heather checks e-mail, Paul orders supplies, and Leah develops a stock list. B. Jack pulls stock, Mary packs the box, and Tim places the order on the truck. C. Calvin conducts the research, Eva files the report, and Ben reads the instructions. D. Eve calls on customers, Ted writes the order, and Lily prepares the presentation.

B Jack pulls stock, Mary packs the box, and Tim places the order on the truck. When one task needs to be completed before another task can be started, then the work must be done in sequential order. Before Tim can place an order on the truck, Mary must pack the stock that Jack pulls from inventory. In this situation, each employee depends on another employee to perform a task before s/he can perform his/her assigned task.

Which of the following is an example of employees using groupware computer applications: A. Craig, Tessa, and Lily use presentation software to guide a group discussion about their research project. B. Kelli, Juan, and Phil can access and make changes to the company production schedule from their home computers. C. Dan, Kara, and Simon review their departments' budgets, which are saved as different computerspreadsheets files. D. Michelle, Jeff, and Aubrey use the same desktop-publishing program to create advertisements and brochures for their companies.

B Kelli, Juan, and Phil can access and make changes to the company production schedule from their home computers. Groupware applications allow employees to access the same information from different locations. Because Kelli, Juan, and Phil can access the company's production schedule from their home computers, they are using groupware. There is not enough information provided to determine if the other groups can access presentation software programs, spreadsheet reports, and desktop publishing software through groupware applications, such as company intranets.

Katrina is using a special software program to develop a business chart that shows the employees' expertise and skills and how they access different types of information throughout the organization. What type of software is Katrina using to document the information? A. Intranet C. Tactical production B. Knowledge mapping D. Accounting

B Knowledge mapping. Knowledge mapping software provides the ability to capture a business's information sources and information flow in a graphic format. Knowledge maps help businesses determine if there are underused sources of knowledge, as well as areas in which there is a breakdown or gap in knowledge sharing. An Intranet is a business's internal computer network. Knowledge management software can capture information stored on a company's Intranet, which is one of many sources of a company's knowledge. Production and accounting software are different types of software used in specific functions of business. Businesses do not use these software programs to capture and track an entire organization's tacit and explicit knowledge.

A city in the southwestern region of the country requires community businesses to undergo health and safety inspections to determine if the businesses are complying with A. free-trade agreements. C. securities regulations. B. local ordinances. D. consumer-protection laws.

B Local ordinances. Businesses must follow various government regulations that are designed to protect the public from illness and hazardous conditions. To ensure that businesses are following these regulations, government agencies at all levels often inspect businesses. For example, the local fire department may inspect a business facility to determine if the business has the appropriate number of fire extinguishers as required by law. If an inspection determines that a business is violating regulations, the agency may fine the business or close it until the business is in compliance. Free-trade agreements, securities regulations, and consumer-protection laws do not involve inspecting facilities to determine if the business is free of safety and health hazards.

A limitation to the use of project-management software is that it lacks the ability to A. calculate data. C. track changes. B. make decisions. D. flag information

B Make decisions. Project-management software helps project managers automate, schedule, and track the various project components by computer. If used appropriately, the software can help a project run efficiently. One thing software cannot do is make decisions. Individuals make decisions that are often based on input entered into the computer

Maria's teacher says she has an aptitude for science. Which of the following may explain why Maria has an aptitude for science: A. She and her friends attend lectures at the science center each month. B. Maria's father is a microbiologist. C. She received a microscope for a gift last year. D. Maria believes that it is important to protect the environment.

B Maria's father is a microbiologist. Aptitudes are innate and may be inherited. Interests are influenced by outside forces, such as friends, classes, or tools such as the microscope. A person's ethics influence his/her beliefs, interests, and choices.

Kim is developing a list of friends, family, and acquaintances. Kim plans to contact the individuals on the list and ask them if they know of any job openings in their companies. What activity is Kim performing? A. Promoting C. Advising B. Networking D. Forecasting

B Networking. Networking involves exchanging information with others for the purpose of professional or business development and/or advancement. Networking is an effective way to find and obtain jobs because it involves talking with friends, relatives, acquaintances, and former employers who know about certain industries and businesses. These contacts can pass on information about openings and make referrals. Making a list of possible contacts is a good way to organize the networking process. Kim is not promoting, advising, or forecasting.

What do many businesses need to do to operate legally? A. Purchase office equipment C. Publish their codes of ethics B. Obtain required permits D. Analyze their strategies

B Obtain required permits. All levels of government require businesses to obtain various types of permits and licenses to operate within their jurisdictions. For example, restaurants must obtain a permit from the health department to serve food. Jurisdictions often require businesses to obtain zoning permits to use land for a specific purpose and special licenses to sell lottery tickets and alcohol. Businesses do not need to purchase office equipment, analyze their strategies, or publish their codes of ethics to operate legally.

The general purpose of managerial planning is to A. impact society. C. create utility. B. provide direction. D. generate ideas.

B Provide direction. Planning is the management function of deciding what will be done and how it will be accomplished. The planning process provides direction by establishing goals for all business activities, which might include generating ideas, creating something capable of satisfying needs and wants (utility), and making a positive impact on society

Ted Jenkins, a business executive from Seattle, has an important business meeting with Sir Henry James Winchester, the president of BritCom Technologies. Ted's coworker, Lydia Guilford is originally from London, and she provided Ted with advice about acceptable nonverbal behavior in England. Which of the following would Lydia tell Ted about the British: A. Usually greet one another with a warm embrace and a kiss on both cheeks B. Rarely maintain eye contact when conversing with others C. Often cross their arms when they agree with a comment or position D. Seldom shake hands because they prefer a wide range of personal space

B Rarely maintain eye contact when conversing with others. Acceptable nonverbal behavior varies by country. For example, British people don't usually maintain ongoing eye contact while speaking. They consider it rude to look at people for long periods of time. However, in the United States, maintaining eye contact is a positive behavior because it indicates self-confidence and interest in the conversation. The British tend to be more formal in business situations, and they like a wide range of space. They tend to shake hands as a greeting rather than embrace and kiss. Crossing arms often indicates discomfort or disagreement with a statement

Which of the following are maintenance supplies that a business is likely to keep on hand: A. Batteries, computers, and cleaning items C. Paper towels, pens, and sportswear B. Trash bags, sanitizer, and light bulbs D. Mops, furniture, and conveyer belts

B Trash bags, sanitizer, and light bulbs. All types of businesses keep maintenance supplies on hand to ensure that the business is clean and that it runs smoothly. Trash bags, sanitizer, light bulbs, batteries, cleaning items, paper towels, and mops are maintenance items that businesses keep on hand. Pens may be classified as maintenance or office supplies. Computers and conveyer belts, and office furniture are capital goods or equipment that businesses use to operate smoothly. Sportswear items (e.g., shorts, tshirts) are most likely resale inventory.

Which of the following is a question that can you ask yourself to help you determine an occupation that you might like to pursue: A. What types of sports do I like? B. What are my favorite classes in school? C. What computer programs do I work with? D. What grade did I get on my last science exam

B What are my favorite classes in school? When determining what occupation that you might want to pursue, you need to assess your interests and skills. Your favorite classes in school can help you determine the subjects that interest you. For example, if you like to do math and you do well in your accounting class, you might consider a career in accounting or finance. Or, if you enjoy writing and do well in your composition class, you might consider a career as a journalist, editor, or copy writer. The types of sports that you like, the computer programs that you currently work with, and the grade that you received on your last science exam are not questions that will help you determine your occupational interest

Which of the following is the result of a new technology's impact on operations management? A. A video game company airs a commercial that can be viewed in 3-D. B. A manufacturer can produce custom orders without decreasing efficiency. C. A software upgrade allows the accounting department to transfer data between reports without re-entering it. D. Computers scan resumes of potential job applicants instead of humans checking for qualifications.

B A manufacturer can produce custom orders without decreasing efficiency. Operations management refers to the systematic design, direction, and control of processes that transform inputs into services and products for internal and external customers. Manufacturing a custom product efficiently is an example of new technology transforming inputs into a product. A 3-D commercial is an example of a marketing benefit created by using new technology. The software upgrade has an impact on the accounting function, not operations management. Scanning resumes is an advantage for human resources, not operations management

What is a key to effective note-taking? A. Capturing details C. Creative thinking B. Active listening D. Using an outline

B Active listening. To take meaningful notes, you must listen to what the speaker is saying. To pick up on the key points, you must actively listen. Effective note-taking does not involve capturing every detail of the presentation, nor does it involve the use of creative thinking techniques. And although it may be helpful for some individuals, effective notes do not need to be formatted as an outline.

Sheila pays the minimum payment shown on her credit card bill each month. For the remaining amount on the bill she will be charged a(n) A. annual fee. C. late fee. B. annual percentage rate. D. overdraft fee.

B Annual percentage rate. The annual percentage rate (APR) is the interest paid on the portion of the bill Sheila does not pay each month. An annual fee is a once-a-year payment made to the credit card company that permits the person to use the company's credit card. A late fee is issued when a person does not submit any payment at all by the monthly due date. An overdraft fee is charged by a bank when a customer writes a check for more money than is in his/her checking account

One way for an audience to show that it supports a speaker's opinion is by ____________ the speaker. A. heckling C. ignoring B. applauding D. tolerating

B Applauding. When the audience applauds or claps, it is showing that it supports what the speaker is saying. Applause encourages the speaker to continue expressing his/her thoughts. Heckling or making fun of someone is an action that indicates disapproval. When people ignore the speaker, they are not actively listening to the speaker and not indicating their support. If a person tolerates another individual's opinion, s/he does not necessarily agree with an opinion, but supports the individual's right to express

When writing e-mail correspondence to customers and coworkers, it is important to remember that the messages A. should be written in an entertaining, informal way. B. are often seen by people other than the recipients. C. should include graphics to hold the reader's interest. D. are usually deleted as soon as they are read.

B Are often seen by people other than the recipients. When writing e-mail messages to customers and coworkers, the correspondence should address various business issues; therefore, writers should develop the messages using a concise, friendly, and businesslike tone. If the writer uses language that is very casual, personal, or questionable, there is a risk of offending the recipient or others to whom the recipient forwards the message. Because many businesses have e-mail policies and can monitor the contents of e-mail messages going into and out of their companies, e-mail writers should take care not to send inappropriate messages. Business e-mail messages do not need to be entertaining or informal, nor do they need to include graphics. Many businesspeople save important e-mail messages and flag them for follow-up at a later time.

Because punctuality is important in the Taiwanese culture, foreign businesspeople should A. avoid standing too close to Taiwanese people. B. arrive at meetings on time. C. bow when greeting a Taiwanese businessperson. D. expect to wait for service

B Arrive at meetings on time. Punctuality relates to timeliness. People who arrive at a specific destination when they are supposed to be there are punctual. In many cultures, it is considered rude to arrive too early or arrive late. It indicates a lack of consideration or importance to the other party and may make or break a business deal. On the other hand, some cultures view the concept of time differently. A businessperson might keep a client waiting because s/he wants to finish a task so that the client has his/her undivided attention. Therefore, it is important to understand how foreign businesspeople view the concept of time. Because punctuality is important to Taiwanese people, visitors should strive to arrive on time to avoid offending them. Standing proximity is a spatial issue that varies among cultures. Bowing is a greeting that is used in some cultures.

Because Costa Ricans do not like to be kept waiting, it is important for businesspeople to A. schedule frequent meeting breaks. C. discuss business during lunch. B. arrive at meetings on time. D. comply with local ordinances.

B Arrive at meetings on time. The way a culture views the concept of time is an important consideration when conducting international business. In some cultures, punctuality is very important; therefore, it is important arrive on time for business meetings or social functions. Meeting breaks, luncheon meetings, and government ordinances do not relate to keeping people waiting.

Which of the following is a true statement about the role of ethics and business risk: A. The unethical behaviors of a business's managers do not affect the business's employees. B. Businesses that provide ethics-training programs can reduce the business's level of risk. C. Businesses that follow ethical guidelines often damage their reputations in the marketplace. D. Businesses are not at risk when they assume that their employees understand the importance of ethics.

B Businesses that provide ethics-training programs can reduce the business's level of risk. By providing an ethics training program, the business can advise its employees about its expectations in relation to workplace behavior. Because an employee's personal ethics may differ from the organization's ethics, it is important for the employees to have a clear understanding of the business's expectations. When employees don't have a clear understanding of the business's expectations, they put the business at risk. Businesses cannot assume that employees know their expectations. Employees who do not follow the business's ethics guidelines may cross a legal line without knowing they have done so. If employees cross ethical lines and break the law, the business may experience fines and obtain unfavorable publicity. Management sets the tone for ethical behavior, so it is important that managers set a good example for employees by exhibiting a high standard of ethics. By behaving ethically, the business can protect its reputation with customers, vendors, and the community.

Determine the reason for the following conflict: As Matthew was leaving the office to go to an important dinner meeting, his manager asked him to work late on a project with a tight deadline. A. Unclear expectations C. Unclear boundaries B. Competing situations D. Miscommunication

B Competing situations. Multiple situations were competing for Matthew's attention, so his conflict was about how to spend his time. Should he attend an important dinner meeting or should he accommodate his manager's request to work late? When people do not know what they're supposed to do, or what someone else expects them to do, conflict can occur due to unclear expectations. Conflicts that involve unclear boundaries occur when people lack understanding about appropriate behavior. Conflicts related to miscommunication occur when barriers (e.g., noise) prevent someone from obtaining or understanding the information needed to make wise decisions.

Every year since she was born, Sophia's grandparents invested $100 on her birthday. Sophia is now 18 and the investment has grown large enough to pay for most of her college expenses. Her grandparents explain that this is because her money has grown in two ways: by earning interest, and then by earning interest on that interest. This is an example of A. simple interest. C. present value. B. compound interest. D. inflation.

B Compound interest. Accounts that earn interest on the lump sums deposited ($100 per year in this example) as well as the interest earned in prior years are called compound interest accounts. Simple interest is calculated on lump sums only. Present value is the current value of one or more future cash payments, discounted at some appropriate interest rate. Inflation is a rise in the general level of prices of goods and services in an economy over a period of time. While inflation has caused the price of college to increase, it is not calculated into how Sophia's account earns interest.

Which of the following is an ethical issue that businesses often encounter: A. Responsible behavior C. Concern for consumers B. Conflict of interest D. Zero tolerance

B Conflict of interest. A conflict of interest exists when a situation presents an opportunity for personal gain, but compromises the best interests of the overall business. For example, if a buyer accepts an expensive gift from a prospective vendor, and then provides the vendor with a sizable order or a long-term contract, a conflict of interest may exist. Many businesses implement policies that address potential conflicts of interest. For example, a business may implement a zero-tolerance gift policy, which involves reprimanding employees who accept or receive gifts. Exhibiting responsible behavior and showing concern for customers are ethical actions.

. One way to prioritize daily work tasks is by reviewing each task and evaluating the A. reason why your manager delegated work to you. B. consequences of not completing activities. C. shortcuts you can take to complete all tasks by their deadlines. D. company's long-term performance goals.

B Consequences of not completing activities. By thinking about what may happen if a task is not completed, you are evaluating the importance of the task, which helps you prioritize your work. For example, suppose your manager needs a status report from you for a meeting that is scheduled two hours from now. If you don't have the report ready on time, your manager will not have the information to present during the meeting, which will make him/her unprepared. As a result, your manager is likely to become upset with you. On the other hand, suppose you need to write a letter of recommendation for a student who did an internship with your company. The student doesn't need the letter until next week. So, if you don't write the letter today, it isn't going to cause a problem for your intern. The reason why your manager delegated work to you is not important. Depending on the tasks involved, shortcuts are not always an option and can often lead to unsatisfactory results. Long-term goals are objectives that will take a year or more to reach. Daily work tasks are closely aligned with short-term rather than long-term goals.

Individuals can verify the accuracy of their credit histories by reviewing a ____________ that is obtained from a ___________. A. bank statement, financial institution C. lending statement, tax agency B. credit report, credit bureau D. credit certificate, credit union

B Credit report, credit bureau. Because businesses often base their decisions about extending credit or providing a loan on credit history, it is important for individuals and businesses to periodically check and ensure that their credit information is accurate. Credit history is provided in the form of a credit report. By reviewing the credit report, individuals and businesses can determine if there are any problems (e.g., identity theft) or discrepancies on the report that need resolved. Credit reports are available through recognized credit bureaus or agencies, which maintain files of credit information on individuals and businesses. Credit histories are not documented on bank statements, lending statements, or credit certificates. The primary purpose of financial institutions, tax agencies, and credit unions is not to maintain comprehensive credit histories for individuals and businesses.

Which of the following is an example of an employee who is accepting responsibility for his/her actions: A. Pete informed the team leader that Brenda's carelessness, rather than his own, was the reason for the inconsistencies in the group's project report. B. Cynthia admitted to her supervisor about the billing mistake that she made on the Andrew's account. C. Emily realized that she forgot to lock the warehouse door on the night that the equipment was stolen, and she didn't tell anyone. D. Larry decided that he would require Bob to make the decision, so Bob would be blamed if something went wrong

B Cynthia admitted to her supervisor about the billing mistake that she made on the Andrew's account. When you are willing to accept the consequences (good and bad) of your behavior, which is based on the decisions you make, you are taking responsibility for your actions. Because Cynthia admitted that she had made a billing mistake, she is accepting the responsibility for her behavior. Taking responsibility for your actions often involves admitting and learning from your mistakes and trying to do better in the future. Emily was not being honest and accepting responsibility for leaving the door unlocked when she didn't tell her supervisor about her mistake. When you blame others for your actions, you are not accepting responsibility for your behavior, which is what Pete did when he complained about Brenda's carelessness in relation to the group's project report, and what Larry did when he required Bob to make a decision.

For several months, June has felt very tired at work. She has a hard time focusing on her job, is often irritated at her coworkers, and has turned in several late assignments. At home, June feels considerably better. June is experiencing A. employee stress. C. employee turnover. B. employee burnout. D. organizational change.

B Employee burnout. Burnout results when employees experience negative stress over a prolonged period of time. Its symptoms include lethargic behavior and irritability among other signs. Employee stress can lead to burnout, but stress, by definition, is not long-term. Employee turnover occurs when a person leaves his/her job and is replaced by someone else. This is a cause, not a result, of stress. Organizational change occurs when a company's management decides to run the company in a different manner than its current state. This change can cause, but isn't a result, of stress.

Plastico Manufacuring Company had to temporarily shut down one of its factories because it was emitting toxic chemicals into the air. Plastico was not complying with the community's A. construction codes. C. administrative policies. B. environmental regulations. D. estate laws

B Environmental regulations. If a business does not follow the jurisdiction's environmental laws, it risks being shut down until it is in compliance. High emissions of toxic chemical in the air create pollution and can negatively affect the natural environment and the health of people and animals. Building codes, rather than construction codes, regulate the structure of facilities such as offices, factories, and homes to ensure their safety. Administrative policies are internal guidelines for carrying out the business's work. Estate laws regulate the distribution of a person's assets to his/her beneficiaries.

An important aspect of the organizing function of management involves A. conducting performance reviews. C. promoting employees. B. establishing levels of authority. D. motivating team members.

B Establishing levels of authority. Organizing is the management function of setting up the way the business's work will be done. Establishing levels of authority is an organizing activity. Motivating techniques are directing activities. Promoting employees is a staffing activity. Conducting performance reviews is a controlling activity.

In Indian business culture, it is offensive to point your feet toward another person. This is an example of a cultural difference related to A. language. C. appearance. B. gestures. D. status

B Gestures. Gestures involve the movement of the body or limbs. These movements express or emphasize an idea, sentiment or attitude. In India, pointing your feet at another person is an offensive gesture. Language is a verbal or written communication difference among cultures. Appearance involves considering a culture's dress or attire preferences. Status is a social consideration.

Which of the following is a business risk associated with a failure to follow laws: A. Increased inventory C. Decreased quotas B. Government fines D. Goal achievement

B Government fines. Risk management is a business activity that involves the planning, controlling, preventing, and procedures to limit business losses. Compliance with the law is an important aspect of risk management. If a business does not comply with laws, the government may fine the business, which could result in substantial financial losses. A substantial financial loss can hinder the business's ability to achieve its goals. Increased inventory and decreased quotas are not risks that are directly associated with failure to comply with laws.

A business must ensure that it hires employees who possess the appropriate skills to A. determine if the business needs to seek additional funding. B. help the business achieve its organizational goals. C. analyze the business's profit margins. D. set the appropriate standards.

B Help the business achieve its organizational goals. A business must hire employees who have the skills to carry out the tasks that are needed to achieve its organizational goals. Without the appropriate skills, the business will not run efficiently and compete effectively in the marketplace, which is likely to result in financial losses. Hiring skilled employees will not help a business determine funding needs or analyze profit margins. Mangers, rather than employees, set the business's organizational standards.

40. Colleen doesn't like Reggie's political views, so she gives him a three percent pay increase instead of a five percent increase. This is an example of unethical behavior in relation to __________ management. A. business-information C. capital-assets B. human-resources D. financial-services

B Human-resources. Compensation is a human-resources activity. In human resources management, ethics involve treating all employees fairly. To treat employees fairly, decisions should be based on performance rather than personal feelings, such as disliking an employee's political views. The example does not relate to business-information, capital-assets, or financial-services management.

Shannon has worked at the XBO Company for two years in the production department. During a weekly meeting, the staff was brainstorming ideas to resolve a problem the department has been experiencing on the production line. During the meeting, Shannon told the staff about some changes that her previous company made to its production process, which increased its efficiency and outputs. Shannon's manager liked the idea, and thought that it might work at XBO. This situation illustrates the concept of A. limited confidentiality. C. competitive obstruction. B. inevitable disclosure. D. trade-character infringement.

B Inevitable disclosure. The concept of inevitable disclosure suggests that workers are likely to intentionally or unintentionally share their current employers' trade secrets with future employers. Although most jurisdictions have regulations that acknowledge and protect trade secrets, the treatment of inevitable disclosure cases varies. Some jurisdictions do not support non-compete clauses as a way to limit tradesecret disclosure because these types of agreements inhibit a worker's right to seek employment. These jurisdictions view the sharing of knowledge as an inevitable occurrence, which may occur unintentionally. The situation does not illustrate limited confidentially, competitive obstruction, or trade-character infringement.

What can businesses do during an orientation session to help new employees feel comfortable in the workplace? A. Provide copies of performance reviews C. Emphasize the company's discipline policies B. Introduce them to other employees D. Give them a complex project to complete

B Introduce them to other employees. By giving new employees a tour of the facility and introducing them to the people with whom they will work, the business is helping new hires become familiar with their workplace and feel more comfortable in their new environment. New employees have not performed work, so businesses wouldn't provide them with copies of their performance reviews. Although it is important to communicate company rules and expectations to new employees, emphasizing disciplinary actions may be too harsh on the first day of work. Businesses usually give complex projects to employees after they have had sufficient training and experience.

Why is directing an important management function in business? A. It helps the business set organizational goals. B. It helps clarify the employee's role in the business. C. It is responsible for developing positive relationships among coworkers. D. It is responsible for creating the business's vision and purpose.

B It helps clarify the employee's role in the business. Directing is the management function of providing guidance to workers and work projects. By providing guidance, managers are clarifying the employees' roles in accomplishing the business's goals. Although the business is more likely to achieve its goals if coworkers are willing to collaborate and maintain positive working relationships, directing is primarily focused on making sure that employees understand and carry out their responsibilities. Setting goals and defining the business's purpose and vision are planning activities.

Determine the type of project-closing report that would most likely contain the following statement: "In review, group members agreed that additional training before the project began and ongoing technical support during the course of the project would have increased overall efficiency." A. Executive summary C. Termination checklist B. Lessons learned document D. Stakeholder's expense audit

B Lessons learned document. Developed during the closing phase of the project, the "lessons-learned" document summarizes the project's successes and failures. The document also includes suggestions for improvement for similar projects in the future, such as the need for additional training and ongoing technical support. An executive summary is an overview of a report or plan. A termination checklist is a list of tasks that need to be done during the closing phase of a project. An expense audit involves reviewing and evaluating various project expenses.

The owner of a business facility that has hazardous electrical wiring is likely to be fined for violating A. federal trade laws. C. affirmative-action initiatives. B. local building codes. D. electronic communication regulations.

B Local building codes. Building codes govern the construction and maintenance of a facility's structure. Jurisdictions develop building codes to ensure that the facility meets a minimal set of standards to protect the safety of facility's occupants and visitors. Electrical wiring, water lines, the grade of construction materials, and the placement of the building's exits are types of things that building codes regulate and monitor. A business that fails to meet building codes may be fined and closed until the problems are fixed. Trade laws regulate the exchange of goods and services between jurisdictions (e.g., states/provinces, countries). Affirmative action is an effort to give special employment consideration to disadvantaged groups. Electronic communication regulations govern the appropriate use of electronic communication methods, such as telephone surveillance.

What is a negative effect of employees who are unwilling to share tacit knowledge with one another? A. More disclosure C. Less competition B. Low efficiency D. High cohesiveness

B Low efficiency. Tacit knowledge is knowledge consisting of personal opinions, experiences, expertise, or understanding that is not easily articulated, stored, or quantified. Tacit knowledge is often acquired by trial and error, which occurs by repeating tasks and activities over time. When an employee devises effective shortcuts or techniques that increase personal productivity, the employee has tacit knowledge. When employees are unwilling to share tacit knowledge that will improve efficiency levels, it takes longer for the company to achieve its goals. Employees who share tacit knowledge may improve the business's efficiency and create a more open and cohesive work environment, which will reduce the competitiveness among employees

The overall purpose of the Six Sigma quality-management framework is to satisfy customers and A. simplify activities. C. improve technology. B. lower costs. D. identify needs.

B Lower costs. Quality management involves the coordination of resources to ensure the degree of excellence of a process, good, or service. Six Sigma is a quality-management framework that involves continuously setting higher goals of perfection. The Six Sigma framework builds upon previous goals to set higher goals in order to continuously improve the quality of the business's goods, services, or processes. The ultimate goal is to maximize outputs, have no process or product defects, and minimize production costs. Therefore, an important aspect of the Six Sigma philosophy is to continuously lower costs while improving quality. When quality improves, customer satisfaction tends to improve. To continuously improve, the business may determine that it needs to simplify activities, obtain better technology, or reevaluate its needs.

Kara is comparing the production standards with the outputs to determine if she should implement changes to improve the production process. This is an example of A. constructive criticism. C. internal feedback. B. managerial control. D. remedial action.

B Managerial control. Control is the management function that monitors the work effort. To determine if employees or processes are working effectively and efficiently, managers must set standards by which they can measure the success of an employee's performance or the quality of a product. By comparing standards with performance (outputs) the manager can detect problems and determine if and how changes should be made to correct the problems. The example is not providing constructive criticism, internal feedback, or remedial action

Kara is preparing the work breakdown structure (WBS) for a new project. She has prepared five work packages. She has estimated the time to complete each package as follows: Package A-26 hours; Package B-50 hours; Package C-38 hours; Package D- 6 hours; and Package E-15 hours. If Kara's estimates are accurate, has she followed the 8/80 rule? A. No. Kara has scheduled more than 80 hours of work for the entire project. B. No. Package D does not meet the minimum requirement of taking eight hours to complete. C. Yes. The average time to complete each package is 27 hours, which meets the 8/80 criteria. D. Yes. Kara has scheduled the packages so that each one does not exceed 80 hours.

B No. Package D does not meet the minimum requirement of taking eight hours to complete. A work breakdown structure (WBS) is the process of dividing project tasks into meaningful components to complete the project. Dividing the project into small work packages helps the project manager effectively schedule, assign, and monitor project activities. The 8/80 rule for dividing project work packages states that no package should take less than eight hours or more than 80 hours to complete. This rule intends to keep work packages in manageable units—not too small or too large. Because Kara allocated six hours to complete package D, she did not follow the 8/80 rule.

What type of goal is designed to prevent or control internal organizational behavior? A. Product C. Profit B. Order D. Short-term

B Order. Organizational goals are the overall objectives or desired outcomes that the business wants to achieve. Order goals are those that are designed to control or prevent behavior that may have a negative effect on the business. For example, order goals address ethics and legal issues and expectations in the workplace. Product goals relate to the goods and services the business produces. Profit goals are related to pricing goals. Short-term goals are goals that take less than a year to achieve.

A business with a cooperative orientation tends to view its relationships with vendors as A. obligations. C. long-term rivalries. B. partnerships. D. short-term transactions

B Partnerships. A business that has a cooperative orientation is willing to work with its vendors to achieve their mutual goals. Having a cooperative orientation involves a willingness to share relevant information and being fair, trustworthy, and reliable. When these circumstances exist, the buyer-seller relationship is similar to a long-term partnership. Viewing vendors as obligations or rivals may create conflict rather than build positive working relationships.

A business might ask its employees to sign a nondisclosure agreement to A. avoid discrimination lawsuits. C. ensure its employees' privacy. B. protect its trade secrets. D. prevent copyright infringement.

B Protect its trade secrets. A nondisclosure agreement is a contract between an employer and an employee that states that the employee will not reveal the employer's trade secrets (e.g., formula, recipe, manufacturing technique) to future employers for whom the employee might work. Nondisclosure agreements provide the business legal recourse if a competitor attempts to use the information for financial gain or benefit. Businesses do not ask their employees to sign a nondisclosure agreement to avoid discrimination lawsuits, ensure their employees' privacy, or prevent copyright infringement. Copyright infringement involves the unauthorized use of written or artistic works

When developing an analytical report about a problem that the business is facing, the writer should conclude the report by A. describing the research techniques. C. defining the issue. B. recommending solutions. D. providing crucial background information.

B Recommending solutions. An analytical report involves examining opinions, facts, and data about an issue, idea, or problem. Recommendations are placed at the end of the report after the issue has been defined and all of the pertinent information has been presented. The introduction of the report should define the problem. If research was conducted, the research techniques used are described in the methodology section of the report, which should appear before the recommendations and conclusions section of the report

It is appropriate for a participant to ask questions during a staff meeting when A. another participant is speaking. C. the agenda is being distributed. B. s/he needs a point clarified. D. s/he does not agree with the speaker.

B S/He needs a point clarified. When employees do not understand what the speaker has said, it is appropriate to raise their hand to ask for clarification; however, it is rude to interrupt another person while s/he is speaking. In many meetings, the leader will ask the participants if they have questions, and it would be appropriate to ask for clarification at that time. Asking questions due to differing opinions or when the agenda is being distributed may not be appropriate.

Dexter must receive information from Isabelle before he can complete a job task. After completing his task, Dexter prepares a form to send to Amy, so she can perform her job. The activities are coordinated in a way that the work must be completed A. simultaneously. C. quickly. B. sequentially. D. randomly.

B Sequentially. Sequential order involves performing tasks in a logical order to achieve a desired outcome. In the workplace, it is important to coordinate tasks, especially when one employee must complete a task so another employee can perform the next task in the process that is needed to complete a required activity. In the example, each employee requires a coworker to complete a task so the next person can do his/her job; therefore, the work must be coordinated so it is performed in a certain sequence. If the employees are performing tasks simultaneously, they are doing the tasks at the same time. There is not enough information provided to determine if the tasks must be performed quickly. If the tasks are done in no particular order, they are being performed randomly.

When having a business conversation with a person who has some difficulty understanding English, it is important to A. speak louder than you normally would. B. speak slower than you normally would. C. ask to speak to someone else in the company. D. not discuss important business.

B Speak slower than you normally would. This will help the person you're speaking with translate your words in his/her mind. Speaking loudly does not help with translating. Remember that someone from another country does not necessarily have a hearing problem. Show cultural sensitivity by patiently working with persons who are not native English speakers. A language barrier does not mean s/he is not the right person with whom to do business. Important international and domestic business partnerships happen every day between persons whose native languages are different. It is not possible or smart to avoid doing business with persons for whom English is a second language.

To understand how team members perform their project tasks, project managers should possess __________ skills. A. interpersonal C. persuasive B. technical D. negotiation

B Technical. Effective project managers possess basic technical skills. Although many project managers don't perform the technical tasks that the team members do, they still need to understand the technical aspects of the project to answer questions, give directions, and solve problems. Interpersonal skills involve the ability to communicate, interact, and build relationships with team members. Persuasion is the ability to influence others' opinions or actions. Negotiation is the ability to reach an agreement with another party. Interpersonal, persuasive, and negotiation skills are very important skills for project managers to possess; however, these skills do not directly relate to understanding how team members actually perform their work.

Why do some governments require businesses to use specific accounting methods?Jo A. To ensure that the businesses are complying with intellectual property laws B. To provide external sources with accurate financial information C. To control the ways in which businesses develop credit policies D. To monitor how businesses establish their sales goals and budgets

B To provide external sources with accurate financial information. The accounting function collects and records the financial information in the appropriate format. Governments require businesses to provide certain types of financial information to regulatory agencies and shareholders in specific ways. For example, some governments require large businesses to use a specific accounting method, such as the accrual method. The accrual accounting method records transactions at the time they occur even if no money changes hands at that time. An advantage of using the accrual method is that it provides investors, creditors, and customers with a more accurate picture of a business's cash flows over time. Governments do not require businesses to use a specific accounting method to ensure that they are complying with intellectual property laws, to control the ways in which businesses develop credit policies, or to monitor how businesses establish sales goals and budgets.

When is a business most likely to place a straight reorder with a vendor? A. To accommodate customers' unique requests B. To replenish its regularly-stocked items C. To order seasonal merchandise D. To change the quantities of items that it routinely orders

B To replenish its regularly-stocked items. A straight reorder is a purchase order in which the business orders normally-stocked items to replenish items that have been used or sold. Orders that are placed to accommodate customers' unique requests are special orders. A modified rebuy is a type of order in which there are changes in the quantities or styles of items that are routinely ordered. Seasonal merchandise includes items the businesses order and sell during specific times of the year when demand is high. Large retailers often use blanket orders to purchase seasonal goods (e.g., holiday gift-giving season).

What issue is associated with product names that businesses often encounter when they start to sell their products internationally? A. Length of the product names C. Pronunciation issues B. Translation issues D. Readability

B Translation issues. Because some words are not easily translated into other languages, businesses must be careful when using an existing or selecting a new name for a product. By using an inappropriate name, a business might offend an international market segment. The meaning of the name is not an issue associated with pronunciation, readability, or the length of the product name.

Which of the following is an activity that is conducted during the closing phase of a project: A. Identifying stakeholders C. Archiving documents B. Determining deliverables D. Obtaining resources

C Archiving documents. When closing a project, important documents should be filed and stored for future reference. Determining deliverables and identifying stakeholders are activities performed during the definition phase of the project. Resources are obtained before executing the project

Which of the following is an example of an item that most likely requires a retailer to place a special order with a manufacturer: A. A cell-phone charger for a popular smart phone B. Windshield wipers for a 2008 Honda Accord C. Blinds for a non-standard size window D. A color-ink cartridge for a computer printer

C Blinds for a non-standard size window. A special order is a request for a custom product or a product that a vendor does not normally carry in stock. Window blinds may need to be custom made or special ordered for windows that are an unusual size. Standard replacement parts for popular items on the market are usually carried in stock and do not require special ordering.

How can project managers monitor the project's quality of work and its current expenditures? A. Review past correspondence C. Conduct a project audit B. Seek professional development D. Compare industry reports

C Conduct a project audit. A project audit involves analyzing all aspects of the project at a given time during the project development process. An audit provides a realistic, current assessment of the situation. Conducting an audit may reveal that the project is over budget or the quality of work is above or below expectations. The audit results help project managers determine if they should make changes or improvements to get the project back on track. In some situations, stakeholders require project audits as part of the project contract. Seeking professional development, reviewing past correspondence, and comparing industry reports are not actions that help project managers monitor project activities and results.

The ONT Company is a very large firm that handles many types of projects. What type of projectmanagement software program would be the best choice for ONT to use? A. Costing C. Corporate-level B. Scheduling D. Individual-level

C Corporate-level. Large businesses often have many projects occurring at the same time. In some situations, different projects need to access the same data. Corporate-level project-management software is a powerful tool because it provides the ability to track hundreds of tasks and several projects at one time. Corporate-level project-management software typically provides cost accounting, resource leveling, "what-if" analyses, charting, and reporting capabilities. Some corporate-level software programs allow businesses to select other software options to accommodate their specific needs. Single-project programs are used for individual (single) projects. Scheduling software has fewer options than corporatelevel programs, and contains primarily scheduling, Gnatt charts, and presentation capabilities. Costing is a software capability rather than a type of project-management software program

What is the focus of quality assurance? A. Obtaining customer feedback about product features B. Identifying defects in new products C. Developing processes to prevent product defects D. Taking steps to create better quality products

C Developing processes to prevent product defects. Quality management is the coordination of resources to ensure the degree of excellence of a process, good, or service. Quality assurance is an aspect of quality management. It involves developing systems and processes to prevent defects as the products are being created. Quality control involves identifying defects in goods and services after they have been created, which includes inspecting the finished product. Quality improvement is an aspect of quality management that focuses on product improvement, which may involve using better materials to create better products. Customer-satisfaction feedback can help businesses determine if they need to improve their products.

What communication style is most appropriate to use when you are providing a friend with personal advice? A. Judgmental C. Empathic B. Formal D. Businesslike

C Empathetic. Being empathic is acting according to an intellectual identification with the thoughts, feelings, values, attitudes, and/or actions of another person. It is often helpful to imagine yourself in your friend's place, to try to understand how s/he feels. By doing so, you often gain insight and can better help your friend by providing thoughtful advice. If you are too formal, judgmental, or businesslike with a friend, you may come across as uncaring, and you may offend your friend.

While shopping at Henderson's hardware store, Mrs. Talbot fell on a wet, slippery floor and suffered a traumatic head injury. This situation is a risk to the hardware store because Mrs. Talbot might A. report the store's deceptive behavior to the Better Business Bureau. B. require her insurance company to pay for her medical expenses. C. file a lawsuit against the store for negligent behavior. D. collect disability payments from her employer because she cannot work.

C File a lawsuit against the store for negligent behavior. The legal principle of duty to care states that individuals and businesses are morally obligated to be cautious and behave in ways that are not harmful to others. A business that does not take steps to ensure that its facilities are safe tends to run a higher risk of financial loss, as well as a damaged reputation. In the example, the store's unintentional negligence is a breach of duty because the wet floor caused injury to a customer. The store may experience financial losses to cover the customer's medical expenses, legal expenses, and other compensatory damages. The store's risk of financial loss decreases if Mrs. Talbot's insurance company pays her medical expenses. The hardware store was acting carelessly rather than deceptively. Disability payments made by Mrs. Talbot's employer are not a risk for the store.

. During a heavy rainstorm, Save-Cents Discount Store suffered severe structural damages and flooding. The store's insurance company refused to pay for the store's damages because of an unclear anticoncurrent clause that was placed in the back of the written insurance policy. The anti-concurrent clause allowed the insurance company to deny the claim because there were two sources of damage for the same loss. This situation presents an ethical issue for the insurance company if the A. store purchased the insurance policy only a few weeks before the storm occurred. B. store's owner failed to pay the insurance premium on time. C. insurance company did not explain all of the policy's exclusions to the store. D. insurance company refused to pay workers' compensation to the store's employees.

C Insurance company did not explain all of the policy's exclusions to the store. It is unethical for an insurance company to place obscure, complex exclusions in an insurance policy without explaining them to the policyholder. Insurance policies can be very difficult to understand, so the insurance company should explain important information so the policyholder understands what the policy covers. The policyholder can reduce or manage its risk by reviewing the contract carefully (or having a lawyer review) before signing it. The insurance company can reduce the risk of policyholders filing lawsuits by explaining the policy's terms clearly. If the store owner did not pay the insurance premium on time, the policy lapsed, and the insurance company is not obligated to pay for damages. When the insurance policy was purchased is not an ethical issue in relation to the situation. The insurance policy would not cover workers' compensation. Workers' compensation covers employees who are injured on the job.

Which of the following statements is true about the Six Sigma quality management framework: A. It emphasizes lowering costs more than improving quality. B. It focuses on increasing employee job satisfaction. C. It involves change throughout the entire organization. D. It can be effective without establishing incremental benchmarks

C It involves change throughout the entire organization. Six Sigma is an internationally recognized quality management framework that was developed by Motorola. Six Sigma focuses on continuously improving quality throughout an organization while lowering its costs at the same time. An important aspect of using the Six Sigma framework is continuously setting incremental goals and measuring their success against the established benchmarks. To implement and execute Six Sigma successfully, improvement efforts should involve input and action from employees at all levels of the organization. When all employees are involved in the process, they often feel as if they have control over their work, which can increase personal job-satisfaction levels.

. The process of managerial planning typically helps to A. influence employees' adaptability. C. maximize resource efficiency. B. improve interpersonal relationships. D. guarantee positive results.

C Maximize resource efficiency. Planning is the management function of deciding what will be done and how it will be accomplished. Effective planning helps the business to determine how to allocate all of its resources—human, financial, equipment—in the most efficient and cost-effective ways. Businesses are more likely to achieve their goals when they plan, but planning does not guarantee positive results. Planning does not necessarily improve interpersonal relationships, nor does it influence employees' adaptability

A primary use of flow charts in business documents or presentations is to A. compare and contrast data. C. explain relationships. B. identify trends. D. summarize numerical data.

C Explain relationships. Graphic aids help to clarify, reinforce, and summarize information. Flow charts help explain relationships. For example, an organizational chart illustrates a business's chain of command. Flow charts may also show the ways in which sequential processes work, such as project management. Line graphs are often used to illustrate timelines and to identify trends. Bar charts are effective graphic aids to compare and contrast data. Tables are often used to summarize complex numerical data.

Which of the following is a form of web-based technology that business professionals use to share their expertise and to solve problems on an ongoing basis: A. Autoresponders C. Online communities B. Analog receptors D. Security devices

C Online communities. Online communities are groups of people who share common interests, issues, or concerns and regularly communicate via the Internet using a variety of venues—social networking sites, RSS feeds, chat rooms, wikis, etc. Online communities often form to share knowledge and solve problems in specific industries, disciplines, and business functions. Autoresponder is an e-mail function that automatically sends a reply to a message sender upon receipt of the message. Security devices, such as firewalls and antivirus software, prevent unauthorized users from accessing or harming a computer. Analog refers to a method used to convert data in to electrical signals to transmit information via telephone, radio, and television.

What function of management involves developing a system for producing work? A. Supervising C. Organizing B. Arranging D. Controlling

C Organizing. Organizing is the management function of setting up the way the business's work will be done. Controlling is the management function that monitors the work effort. Supervising employees' performance is a controlling activity. Arranging is not a management function.

So that team members can complete their specific tasks and responsibilities correctly, project managers must communicate A. financial information. C. performance standards. B. short-term incentives. D. marketing strategies.

C Performance standards. The team leader should communicate the performance standards, which are specifications or statements that serve as a basis for comparing the desired performance with the actual performance. By understanding the standards, team members can adapt their behavior and use techniques or processes to perform the work in ways that will achieve the desired level of quality. Depending on the project and the team members' responsibilities, the performance standards may include using financial information or marketing strategies. Short-term incentives (e.g., financial bonuses) do not communicate the project manager's performance standards or expectations.

To defend your ideas in an objective and respectful way, you should A. use dramatic gestures to reinforce your message. B. advise the other person that his/her opinion is illogical. C. present facts that support your point of view. D. provide a rebuttal for everything the other person says.

C Present facts that support your point of view. Because others may have questions or concerns about your idea, you should be prepared to defend those ideas by providing supporting information. By having facts to support your idea, others are more likely to accept your idea and put it into action. Telling another person that his/her opinion is illogical and refuting everything the other person says are not actions that help you objectively and respectfully defend your idea. In fact, these actions may offend the other person. Using dramatic gestures may indicate your enthusiasm about your idea but does not demonstrate why your idea is good and should be implemented.

What is an important aspect of managerial directing? A. Developing long-term business objectives B. Interviewing job applicants for open positions C. Providing employees with instructions D. Creating work systems for workplace teams

C Providing employees with instructions. Directing is the management function of providing guidance to workers and work projects. An important aspect of providing guidance is giving instructions to employees so they can perform their work. Interviewing job applicants is a staffing activity. Developing long-term objectives is a planning activity. Creating systematic approaches for activities is an organizing activity

Managers who have a ___________ span of control generally have __________ control over the workers they supervise. A. large, a lot of C. small, close B. broad, balanced D. limited, little

C Small, close. Control is an aspect of the management function that involves monitoring the work effort. The manager's span of control is the range of employees who report to the manager. If a manager has few employees to supervise, then s/he has a small span of control, which allows more time to closely monitor the employees. If the span of control is large or broad, then the manager has several employees to supervise, which limits the amount of time that the manager has to monitor the employees' activities. A large span of control works best when the employees are familiar with their jobs, and they work well independently

Based on the firm's mission statement, upper management established a variety of long-term goals to guide lower-level goal setting. What type of organizational goals has upper management set? A. Profit C. Strategic B. Tactical D. Productivity

C Strategic. Organizational goals are the overall objectives that the firm wants to achieve. Strategic goals are long-term objectives that the firm sets—usually three to five years. The strategic goals provide guidance for setting tactical goals, which are more specific goals and involve specific actions that are designed to achieve the strategic goals. Profit and productivity are types of strategic and tactical goals. There is not enough information provided to determine if management is setting profit or productivity goals.

Which of the following is a visualization tool that involves observing product flow throughout the organization to determine waste and inefficiencies: A. Fishbone diagram C. Value stream mapping B. 80/20 rule D. Reverse audit

C Value stream mapping. To facilitate continuous improvement, some businesses use value stream mapping to plot all activities and information in the flow of production. Developed by Toyota, the valuestream map is a visual depiction of the entire production process and is used to help the business identify bottlenecks and inefficiencies. As inefficiencies are identified, the business can take action to improve processes. The 80/20 rule is a selling principle which states that 80% of a business's sales are made by 20% of its customers. A fishbone diagram is a visualization tool that helps the business find ways to solve a problem by focusing on the possible reasons for the problem. Reverse audit is not a visualization tool that businesses use to observe production flow.

Team leaders often use positive reinforcement techniques to A. evaluate events. C. motivate team members. B. develop team schedules. D. encourage competition.

C Motivate team members. To motivate is to prompt another person to take some kind of action. There are many ways to motivate team members, one of which is by providing positive reinforcement. Simply saying, "Keep up the good work," is often enough motivation to keep team members on track and to let them know they are doing well. Team leaders do not use positive reinforcement techniques to develop schedules or to evaluate events. Team leaders should encourage teamwork and collaboration among team members rather than creating a competitive environment, which may result in conflict.

. Munroe Manufacturing uses a numerical rating scale to quantify a vendor's activities in a variety of areas, including delivery, service, and quality. What system is Monroe using to evaluate the vendor's performance? A. Applied-tabulation C. Weighted-point B. Cost-based D. Cycle-oriented

C Weighted-point. There are many methods for businesses to use to evaluate their vendors' performance. The weighted-point system involves assigning a numerical rating to evaluate various performance categories. Although categories vary by business, they often include delivery and lead times, order accuracy, order cycle, service levels, technology support, product quality, quality improvement, and costs. The rating scale may range from one to five—one representing "poor performance" and five representing "excellent performance." By assigning a numerical value to various areas of performance, the business can evaluate the vendor's strengths and weaknesses and determine if improvements should be made. The cost-based system focuses on product and delivery costs. Applied-tabulation and cycle-oriented are not methods used to evaluate a vendor's performance.

. Using a hierarchical chain of command, who is most likely to report directly to Jana Simpson, Vice President of Operations? A. Ken Bailey, Media Buyer B. Sandra Wilson, Accounts Receivable Coordinator C. William Kincaid, Purchasing Manager D. Cathy Cooley, Inventory Specialist

C William Kincaid, Purchasing Manager. The chain of command defines the level of authority and the specific individual who supervises particular employees. Levels of authority are often determined by the business function. In the example, Jana is the Vice President of Operations. Because purchasing is an operations function, and William Kincaid is the purchasing manager, he is most likely to report directly to Jana. Inventory is related to purchasing, so Cathy Cooley is most likely to report to William Kincaid. Because accounts receivable involve carrying out accounting activities, Sandra Wilson is likely to report to the accounting department manager. Media buying is an advertising activity, so Ken Bailey is most likely to report to the advertising manager.

Trevor needs to determine the procedures that he needs to follow for a specific project work activity. Trevor can locate that information in the A. network diagram. C. work breakdown structure dictionary. B. project's statement of work. D. production schedule.

C Work breakdown structure dictionary. Preparing the work breakdown structure (WBS) is the process of dividing project tasks into meaningful components to complete the project. The WBS helps the project manager identify tasks and effectively schedule, assign, and monitor complex project activities. The work breakdown structure dictionary is a comprehensive "manual" that outlines project standards, activity procedures, processes, and terminology. Team members can refer to the WBS dictionary if they need to obtain information about how to carry out a task or activity. Project objectives are provided to stakeholders in the statement of work (SOW) document, which may also include information about the costs associated with the project. A network diagram is a graphic representation (e.g., map, chart) of the project's schedule. A production schedule provides general deadlines for various activities and tasks.

Which of the following is NOT a characteristic of private enterprise: A. The market is regulated by the government. B. Supply and demand determine the exchange of goods. C. A person's income depends mainly on the income their parents made. D. Businesses use marketing and advertising to influence consumers.

C A person's income depends mainly on the income their parents made. In a private enterprise economy, a person's skills are the main determinant of his/her income. Supply and demand determine the exchange of goods. For example, the higher the number of people who want to purchase Super Bowl tickets, the higher the price the NFL can charge for each ticket. Private enterprise is regulated by the government, but it is not controlled by the government. Regulated means that companies must adhere to guidelines and laws, such as the U.S. Department of Agriculture inspecting meat packing plants to ensure that products are safe for consumption. In private enterprise, businesses may use marketing to increase sales and cause consumers to become aware of product and services.

Aviation, taxation, and commerce are categories of ____________ law. A. judicial C. administrative B. legislative D. executive

C Administrative. Administrative law deals with the rules and regulations that have been established by governmental agencies. The legislative branch of the government (i.e., U.S. Congress and Canadian Parliament at the Federal level) establishes these agencies, which have the authority to enact and enforce regulations for various administrative functions, including aviation, taxation, and commerce. For example, in the United States, the Federal Aviation Administration (FAA) regulates air-transportation functions (i.e., airspace, aircraft safety); the Internal Revenue Service (IRS) handles issues related to personal and business taxes; and the Federal Commerce Commission (FCC) handles issues related to business and commerce. The legislative branch of government introduces and passes statutes. The judicial branch of government (court systems) interprets the law. The executive branch of the government guides government policy, and in some countries, has the power to veto legislation.

Which of the following is an example of a buyer placing an advance order: A. Fred ordered a 2' X 4' sign imprinted with the company's logo, which he wants to pick up on Monday. B. On Tuesday, Katherine placed an order for 22 cases of paper towels to replenish depleted stock. C. Alan placed a large order on March 10 for a new video game that is to be released on June 1. D. In January, Lindsey ordered outdoor seasonal goods from a vendor without providing specific styles, sizes, or colors.

C Alan placed a large order on March 10 for a new video game that is to be released on June 1. An advance order is a regular order that is placed now with delivery requested at a future time (e.g., weeks, months). Because the item is new, Alan wants to make sure that he orders enough games to meet the anticipated demand upon its release date. Katherine placed a reorder, which is ordering items that have been previously ordered. Fred placed a special order, which is a request for a custom item that a vendor does not normally carry in stock. Lindsey placed a blanket order. A blanket order is an order that covers all or part of a retailer's seasonal requirements. Blanket orders typically are placed several months before the season, and do not contain detailed specifications or shipping dates.

Although Anna works in a different department than Ryan, their job responsibilities overlap. Anna and Ryan often talk about the mutually job-related problems, and they share ideas about how they can improve situations in ways that will benefit not only them, but the company in general. By sharing information and being objective, Anna and Ryan are A. improving their chances of receiving promotions. B. making suggestions to improve the company's finances. C. building collaborative working relationships. D. developing a positive, relaxed work culture

C Building collaborative working relationships. When employees are willing to collaborate with one another, they are more likely to help the business achieve its overall goals. Collaboration involves working together to solve problems and generating ideas that may improve the business's processes. There is not enough information to determine if Anna and Ryan are discussing issues that are directly related to the company's finances, if they are to receive promotions, or what type of work culture the company

Which of the following is a characteristic of groupthink that may hinder ethical decision making in relation to financial issues: A. Independence C. Censorship B. Objectivity D. Empathy

C Censorship. Although collaboration and cooperation among individuals can be used to achieve a common goal, groupthink conditions can be detrimental to ethical decision making. Groupthink is an extreme form of cohesiveness in which all members of the group strive for unanimity (harmony) at any cost. This condition stifles independent thinking and objectivity. Group members who question another member's idea or action may be censored or cut off by the group majority. In addition, individuals begin to self-censor, which means they quiet their own conflicting thoughts for the "good of the group." Groupthink can erode personal ethics and lead group members to do things they normally wouldn't do. In today's competitive business environment, the pressure to earn high profits has often resulted in fraudulent behavior, embezzlement, money laundering, etc. Such actions are often a result of groupthink conditions. Empathy is the ability to place oneself in another person's place or circumstances. Empathy is not a characteristic of groupthink, which embraces harmonious or like-minded thinking.

Marcus wants to invest a portion of his money in long-term securities to finance his son's college education and his own retirement. To help him make the best investment decisions, Marcus should obtain the services of a A. licensed tax accountant. C. certified financial planner. B. loan officer. D. credit-union representative.

C Certified financial planner. Financial planners help clients develop investment plans and prepare for the future. Financial planners recommend and sell financial products such as mutual funds, stocks and bonds, insurance, etc. When selecting a financial planner, it is important to make sure that s/he has the appropriate training and certification to provide financial services. Tax accountants, loan officers, and credit-union representatives do not usually have the credentials to provide in-depth financial advice and select appropriate investments for clients

When employees from different departments need to interact to accomplish a compatible goal, they should exhibit a(n) _________ mindset. A. independent C. collaborative B. competitive D. skeptical

C Collaborative. Collaboration involves working together in a cooperative manner. It relies on drawing from one another's knowledge and experience. A collaborative mindset requires the employees to work interdependently—to rely on each other to accomplish their mutual goals. Interdependence involves the employees' willingness to share ideas and do what is best for the company, rather than trying to achieve their personal agendas. Competitive, independent, and skeptical (distrustful) attitudes may hinder a group's ability to accomplish business goals.

By consistently striving to solve customers' problems quickly, employees are demonstrating their A. satisfaction with the company's products. C. commitment to provide excellent service. B. ability to use upselling techniques. D. willingness to bend company policies.

C Commitment to provide excellent service. A business's service orientation is its philosophy of a certain level and quality of service. A business that is committed to providing excellent service should provide its employees with adequate training about business's products, processes, and policies. When employees understand the many facets of the business, they can often solve customers' problems more quickly because they know what they need to do to correct the problems. When problems are solved quickly, employees are indicating that they care about their customers, which leads to increased customer loyalty and satisfaction. Solving problems quickly does not always involve bending company policies. Solving customers' problems quickly does not demonstrate the employees' satisfaction level with the company's products, nor does it demonstrate their ability to use upselling techniques

Which of the following is a threat to the successful completion of a project: A. Budgeting methods C. Computer programming flaws B. Effective security devices D. Contingency plan

C Computer programming flaws. Computer programming flaws (bugs) can cause problems when executing and controlling various aspects of a project. Important data may be misplaced, left out, or transposed. These errors can cause process delays, create financial and budgeting problems, and compromise deadlines, which threaten the project's success. Developing and executing contingency plans can help reduce the negative effects of potential threats. Effective security devices and the methods in which budgets are developed are not threats to a project.

Because Allison is meeting with a foreign businessperson whose culture places a great importance on modesty and a simple personal appearance, she should wear A. elaborate jewelry. C. conservative apparel. B. trendy clothing. D. heavy makeup.

C Conservative apparel. Appropriate attire is an important consideration when doing business in another country. In some countries, it is inappropriate for a person to show bare shoulders or legs. Trendy clothing, elaborate jewelry, and heavy makeup do not convey a conservative appearance.

If an accounting firm deliberately conceals information about a client's financial status, the government may charge the business with A. breach of contract. C. obstruction of justice. B. expropriation. D. substantiation.

C Obstruction of justice. Obstruction of justice is a legal penalty that applies to individuals or businesses that hide important information from law enforcement agencies, such as concealing a client's questionable financial data. If evidence indicates that unethical or illegal business practices have obstructed a criminal investigation, the business could be fined, and the employees concealing the information could face imprisonment. A public scandal could severely tarnish a business's reputation, as in the case of the Arthur Andersen accounting firm and its affiliation with Enron. Expropriation is the act of government taking over private property. Breach of contract involves breaking the terms of a legal agreement. Substantiate means to provide proof or evidence of something.

Quarterly, each of the international vice presidents of Smith & Webber completes the company's scorecard and submits it to the president of the company. The scorecard tracks sales, profit, advertising expenses, and other key information. The scorecard is a tool for which of the following management functions: A. Directing C. Control B. Planning D. Organizing

C Control. Control is establishing performance standards based on the company's objectives and then evaluating and reporting the actual job performance. The scorecard allows top management to evaluate job performance in each country. Planning requires administration to assess where the company is currently and where it should be in the future. From there an appropriate course of action is determined and implemented to attain the company's goals and objectives. While the scorecard may be evaluated prior to planning, it is not a plan for moving forward. It is a picture of the current quarter. In the directing function, management assists staff in meeting company as well as personal career goals. Organizing involves creating an organizational chart, establishing and maintaining relationships, and assigning required resources

Hilda Vanderspiel is a German businesswoman who is hosting a dinner for business executives from Delphi, India. When planning the menu for her guests, Hilda should consider their A. table manners. C. dietary habits. B. physical differences. D. seating preferences.

C Dietary habits. When planning a meal for foreign businesspeople, it is important to consider their dietary habits. In India, religious customs prohibit Hindus from eating beef and Muslims from eating pork. Some religious customs prohibit followers from eating dairy products and certain types of vegetables. To respect the religious practices of other cultures, it is important for Hilda to develop a menu that accommodates her Indian guests. Seating preferences, table manners, and physical differences are not relevant factors when planning an appropriate menu.

As an employee of the TMX Company, you have been asked to investigate the financial aspects of a proposed merger with LAU International. What type of analytical report are you being asked to develop? A. Justification C. Due diligence B. Market analysis D. Troubleshooting

C Due diligence. An analytical report provides evaluative information about a problem, opportunity, or previous action. Merging with another company is a major change for a business; therefore, it is important to analyze the advantages, disadvantages, strengths, and weaknesses associated with the potential merger by summarizing information in an analytical report. Reports that address financial issues associated with a certain course of action, such as a merger, are called due diligence reports. A market analysis summarizes information about a segment of the population. Troubleshooting analyses provide guidance for solving problems with a product or process. A justification report provides information that supports or justifies a previous course of action.

Which of the following facility components are inspected by authorized officials to ensure that safety ordinances are met: A. Computer networks C. Elevators B. Photocopiers D. Portable cameras

C Elevators. Governments develop regulations to ensure the public's safety. Government regulations require businesses to have their elevators inspected on a regular basis by a government agent or independent entity to ensure that elevators are running correctly. During the inspection, the inspector might identify problems with the elevators that compromise the employees' and visitors' safety. By identifying the problems, the business can repair the elevators, so they operate correctly and are in compliance. Photocopiers, computer networks, and portable cameras are equipment rather than a component of the facility.

Cameron, a high school student, is giving a speech to the school board. He wants to persuade them to begin a recycling program for the school district. When a board member says the program will cost too much money, Cameron displays a chart proving the recycling program will make money for the school in five years. Cameron's chart has A. backed up his point with an expert testimonial. B. connected emotionally with his audience. C. eliminated a competing alternative. D. proven he has cultural sensitivity.

C Eliminated a competing alternative. The board member would prefer that the school not recycle. His/her reason is that it is too expensive. Cameron's chart shows that the reason is not valid, so the alternative of doing nothing can be thrown out. Connecting emotionally with the audience involves talking to them on a personal level. For example, he could have talked about how recycling will make the community a cleaner place for their children and grandchildren. An expert testimonial involves sharing the opinion of someone who is believed to be an expert on a subject. There is no information in this question that relates to cultural sensitivity, which is being sensitive to differences between ourselves and others, such as age, gender, or country of origin.

What is the advantage to using project-management computer software that allows several team members to access project information at the same time? A. Ensures data accuracy C. Enhances collaboration efforts B. Reduces the need to secure data D. Eliminates the need to analyze variances

C Enhances collaboration efforts. Project-management software allows businesses to plan, track, and evaluate all aspects of a project. Project-management software is available to accommodate different types of projects, from simple, individual projects to multiple, complex projects. Complex projects often involve several hundred tasks being performed by dozens of people. Often, team members need to access the same information to perform their project tasks. Programs that are designed to allow multiple users to access project data enhance the team's ability to collaborate and share project information from a variety of locations. Allowing several team members to access project-management data does not reduce the need to secure the data, ensure data accuracy, or eliminate the need to analyze variances.

Seth recently informed his manager, Tammy, that he is leaving the company. During her last meeting with Seth, Tammy took detailed notes and asked Seth questions about the problems that Seth had encountered on the job and how he handled them. Seth shared important information that his replacement will need to know so s/he can do the job efficiently. What technique is Tammy using to capture knowledge for future use in the organization? A. Data codification C. Exit interview B. Concept mapping D. Training session

C Exit interview. The purpose of an exit interview is to gain feedback from an employee who is leaving the business. The feedback can provide managers with knowledge about how they can help replacements become acclimated to the job. The feedback can also provide management with ideas for improving processes and increasing efficiency and job satisfaction. Concept mapping is a method of clarifying and organizing ideas by using a graphic format to show relationships. Codification is the process of classifying or assigning value to certain ideas, statements, or data. Tammy may have used concept mapping or data codification techniques to organize Seth's feedback after the exit interview. Training involves providing new hires and employees with education to perform their jobs.

An example of how a company can reinforce its "environmentally friendly" image through its employees is by giving a(n) A. airline ticket to the employee who recycles the most over one year. B. bonus of $500 for finishing a project early. C. extra day of vacation for riding a bike to work instead of driving. D. luncheon for employees who turn in reports on time.

C Extra day of vacation for riding a bike to work instead of driving. Biking reduces car pollution. When others see the company's employees riding their bikes, it reinforces the company's image as environmentally friendly. The company is encouraging this behavior by offering a reward. A bonus of $500 for finishing a project early may be important to employees and effective in motivating them to work efficiently, but it is not seen by others outside the organization so it doesn't reinforce the company's image. In addition, finishing early is not an activity that is perceived as environmentally friendly. Although recycling does reinforce the "green" image, there are two problems with this response. First, those outside the company aren't likely to see employees recycling, so it won't boost the company's image. Secondly, airplanes pollute the environment, so the award is not in keeping with the company's green image. The luncheon may motivate employees to turn in reports in a timely manner, but nothing about this incentive or reward reinforces the company's environmentally friendly image.

Inspecting raw materials before using them to produce finished goods is an example of ___________ control. A. feedback C. feedforward B. concurrent D. standard

C Feedforward. Control is the management function of monitoring the work effort. Managers monitor the work effort in many ways. Feedforward control involves taking preventative measures and occurs before a business activity is performed. Feedforward control often involves establishing standards (e.g., quality of materials used in production) and procedures for carrying out the activity. Concurrent control involves monitoring the work while the employee performs it. This allows the manager to determine if the employee is performing the work correctly and efficiently. Feedback controls occur after a business activity has been completed. A standard is a measure for determining the level of excellence of something, and is a control tool.

To avoid the appearance of bribery, businesspeople should understand a culture's protocol regarding A. risk taking. C. gift giving. B. decision making. D. ethnocentricity.

C Gift giving. Gift giving practices vary greatly among countries. In some countries, it is customary, or expected to give gifts in business situations. In other countries, many businesses limit or prohibit gift giving/receiving because it may be viewed as bribery, which is an illegal activity under certain circumstances. Decision making is choosing among alternatives. Risk taking is understanding and accepting the responsibility of not knowing the outcome of a course of action. Ethnocentricity is the belief that your own culture is naturally better than other cultures.

Which of the following are examples of raw materials that a business might keep on hand for production: A. Minerals, tables, leather, and paper C. Grain, minerals, leather, and oil B. Leather, bolts, stapler, and ore D. Oil, grain, shoes, and household cleanser

C Grain, minerals, leather, and oil. Businesses (e.g., manufacturers) usually maintain an inventory of items that they use to produce their goods. Grain, minerals, leather and petroleum are examples of products that a business might use to make cereal, jewelry, coats, and gasoline, respectively. Paper, bolts and leather may be classified as raw materials, if they are being used to produce finished goods. Ore is a mineral. Staplers, tables, and household cleansers are finished goods

Gina Hoskins is a textbook executive with ABC International Publishers. She is meeting with several influential instructors in San José, Costa Rica to discuss a potential contract. When Gina is introduced to Alberto Cabrera, a teacher from Costa Rica, how should she greet him? A. I'm glad to make your acquaintance, Alberto Cabrera. B. It's a pleasure to meet you, Don Alberto. C. Hello, Professor. D. Good afternoon, Senora Cabrera.

C Hello, Professor. Titles are very important in Latin American culture, and foreign businesspeople should acknowledge those titles and positions within their society. For example, when greeting a teacher, it is courteous to call him/her professor without the person's surname. An architect is greeted as "Arquitecto," and an engineer is greeted as "Ingeniero." Men without professional titles are addressed as "Don" followed by their first names, and women without professional titles are addressed as "Dona" followed by their first names. It is not customary to greet Costa Ricans by using their full names. Senora is the Spanish title for a married woman.

After several failed attempts to obtain product information from Payton Manufacturing, Mr. Jones placed a $150,000 order with Morgan Industries. Why did Payton lose the large order? A. Its employees were not properly trained. B. Its employees lacked concern about the environment. C. Its employees were unresponsive. D. Its employees did not have access to current technology.

C Its employees were unresponsive. When employees do not return calls or provide information in a timely manner, customers are likely to get what they want from the business's competitors. There is no indication that the employees lacked training, concern for the environment, or access to current technology.

When a project manager discovers an inefficient process while team members are executing a project activity, s/he should A. organize a committee to evaluate the project's status. B. hire a consultant to resolve the problem. C. make the necessary changes to get the project back on track. D. monitor the team members to encourage teamwork.

C Make the necessary changes to get the project back on track. An important aspect of controlling a project is monitoring tasks and processes. If something is causing a slowdown or problem, the project manager must take steps to resolve the issue and get the project back on track, so deadlines can be met. For complex projects, this may involve hiring a consultant or organizing an internal committee of team members to review the process and generate ideas and solutions for the problem. Getting the project back on track usually involves monitoring the team members on an ongoing basis; however, it is not always related to encouraging teamwork.

While negotiating a contract, Angela gives up one thing she wants, so she has leverage to obtain something else that she wants more. What is Angela doing? A. Being passive C. Making concessions B. Avoiding conflict D. Issuing ultimatums

C Making concessions. Negotiation is the process of reaching an agreement with another party. In any negotiation, one person attempts to get another person to agree to a certain course of action to meet one person's needs or wants. Compromise occurs when an agreement is reached by giving up something in order to obtain something else. This process is making concessions. Angela is not avoiding conflict, being passive, or issuing ultimatums

Which of the following is a method that businesses use to reduce the risk of unauthorized access to confidential computer data: A. Groupware applications C. Passwords B. Decryption software D. Spooling

C Passwords. Businesses must take precautions to secure their confidential information. To reduce the risk of unauthorized access to confidential information, businesses often assign computer passwords to allow authorized employees to view secured information. This reduces the risk of confidential information getting into the wrong hands. Encryption, rather than decryption is a way to protect information. Encryption is the process of transforming information into a secret code so that unauthorized users are not able to read it. Groupware applications are software programs that allow several computer users to access the same information from different locations. Spooling is the process of transferring computer data to a temporary location so the data can be retrieved and processed through a different computer program.

To improve the quality of its products and its business processes, a company will install a single new computer system that will replace the systems currently used across the company. Every aspect of this change is handled by representatives from the following departments: manufacturing, accounting, quality control, finance, and IT. This is an example of a A. standing committee. C. project team. B. quality circle. D. group.

C Project team. A project team is comprised of persons with complementary skills necessary to complete a single project. Outside of the project, the team members have other responsibilities. When the project ends, the team members go back to the positions for which they were hired. A quality circle is a participative management technique in which employees voluntarily work together to solve quality or performance-related problems and report the results to management. Participation in a quality circle is a long-term position that doesn't end after one problem has been solved. A group is simply a collection of people that meets regularly. A team is different from a group because a team has a full set of complementary skills to accomplish a goal, e.g., the different positions on a baseball team.

Which of the following exemplifies the time value of money: A. Sophie estimated that she uses 78% of her income to pay her bills. B. Matthew decided to purchase a cell phone from TeleTech.com for $199.00. C. Rachel placed $250 in a savings account and accumulated $12.50 in interest. D. Harrison paid the government $1,508 in property taxes last year.

C Rachel placed $250 in a savings account and accumulated $12.50 in interest. The time value of money is the difference between the money's current purchasing power in relation to its purchasing power at a future date. Because Rachel placed her money in an interest-earning account, her money is worth $12.50 more than it was last year. Buying a phone, the amount of annual income allocated for expenses, and property taxes paid do not indicate the future value of a set amount of money

In which component of a research report should the writer place the following statement: "Based on our findings, we believe that it is imperative that PNJ Corporation make the necessary adjustments." A. Assumptions C. Recommendations B. Analyses D. Methodology

C Recommendations. The recommendations section is the last component of a research report and contains a proposed course of action (recommendation), which is based on the results or findings. The methodology section of the report outlines the research plan. It appears in the middle of the report and discusses the types of research tools used in the study and why they were selected. The analyses section of the report describes the findings based on the assumptions made and the methodology used to obtain the data.

What are you doing when you compare your bank statement with your checkbook register? A. Reviewing your credit-card balances C. Reconciling your checking account B. Managing your mutual funds D. Endorsing your paycheck

C Reconciling your checking account. The check register is a central location to record and track all of the checks that you write and the amount of money you spend in your checking account. Each month, you receive a bank statement that details your checking-account activity. You should reconcile your check register with your bank statement to ensure that they match. This step is important for many reasons. For example, if you forget to enter transactions in your checkbook register, you may overdraft your account and be fined for insufficient funds. When you compare your bank statement with your checkbook register, you are not managing your mutual funds, reviewing credit-card balances, or endorsing your paycheck.

After Caroline told her manager about the pricing mistake she made on a purchase order, her manager said, "This does present a problem, but we can work it out. Thanks for letting me know right away." Because Caroline accepted responsibility for her mistake, her supervisor is likely to A. recommend Caroline for a promotion. B. reprimand Caroline for having a bad attitude. C. respect Caroline for her honesty. D. require Caroline to pay the company for the mistake

C Respect Caroline for her honesty. Everyone makes mistakes from time to time, and the way that a person handles a mistake can affect the outcome. Caroline accepted responsibility for her mistake. Taking responsibility means admitting the wrongdoing and accepting the consequences for the mistake. When a person admits making a mistake, s/he is likely to gain the respect of others and gain trust. This is apparent in Caroline's situation. Caroline's manager acknowledged the problem and thanked Caroline for bringing it to his/her attention. In many situations, the sooner a mistake is acknowledged, the less severe the consequences. If Caroline had hidden the mistake, her manager may have been angry. Caroline is not exhibiting a bad attitude. There is not enough information provided to determine if her manager would consider recommending Caroline for a promotion. The manager is unlikely to ask Caroline to pay the company for making a mistake that can be worked out.

As an audience member, which of the following should you do to encourage a speaker during an oral presentation? A. Keep a straight face to communicate that you are serious B. Refrain from asking questions C. Smile D. Quietly discuss the speech with the person sitting next to you

C Smile. A smile shows the speaker that you support and encourage him/her. It is a good idea to ask questions when asked. It shows interest in the topic. A straight face is difficult for a speaker to interpret. It may mean a person is upset, is daydreaming, or is seriously listening. Talking to others during a presentation is rude to the speaker and may cause him/her to lose his/her train of thought.

Using a table to present or summarize data in a written document is most appropriate when A. the report does not require a bibliography. B. it is important to build credibility and impress the audience. C. the data are too complex to describe in the body of the text. D. it is placed in the appendices of a complex report.

C The data are too complex to describe in the body of the text. Tables present text or numbers in a grid format. The table allows readers to see groups of data together for comparison. Tables are also useful because they summarize data in an easy to read format. Tables present data (e.g., statistics) that may be too wordy or complex to describe in a paragraph format. Tables should appear in a document where they are most appropriate, which may be the body, conclusions, recommendations, or appendices. The inclusion of a bibliography is not a factor when determining if a table should be included in the document. The primary purpose of tables is to provide information, which may or may not build credibility and impress the audience.

Laney is a very good singer. Since age four, she has sung in community musicals, at church, and in school productions. She's 15 now and knows she wants a career as a singer. Her teacher announces a special career exploration program. Should Laney join? A. Yes, because career exploration will prove her plans to be a singer are unrealistic. B. No, it is important that Laney remain focused on her dream to be a singer. C. Yes, it is important to learn about many careers before selecting one. D. No, because a career as a singer does not follow a specific career path.

C Yes, it is important to learn about many careers before selecting one. Even if Laney thinks she knows what she wants to do, she may find she has interests in careers she didn't even know existed. Career exploration will allow Laney to make an informed decision that may or may not result in becoming a singer. Learning about careers and pursuing her dreams are not necessarily mutually exclusive. Career exploration is simply research into careers, interests, and aptitudes. What she does with the research is up to her. Everyone needs to plan for their career. This doesn't mean things will go as planned, but putting together a plan will increase the odds of being successfu

Who is responsible for maintaining a safe work environment? A. External safety inspectors C. Department managers B. Government legislators D. All employees

D All employees. To reduce the risk of injury to themselves and to others, all employees are responsible for performing their work carefully. Mangers are employees who guide and monitor other employees' activities. Governments establish the safety laws that businesses must follow. Governments often require designated agencies to conduct safety inspections to ensure that businesses are following safety laws

What aspect of their employers' codes of conduct are employees violating when they regularly come into work late or leave early? A. Safety C. Harassment B. Appearance D. Attendance

D Attendance. To provide a fair and consistent work environment, businesses develop rules of conduct. The rules of conduct outline a company's policies, procedures, and expectations regarding employees' behavior in the workplace. Businesses expect their employees to arrive at work on time and leave work at a designated time. Employees who continuously arrive late not only violate their employers' attendance rules, but cost the companies money for time that the employees are not working. Appearance refers to appropriate dress and hygiene in the workplace. Harassment issues involve saying or doing inappropriate things. Safety violations involve actions that pose harm to themselves, coworkers, customers, or visitors.

What do managers need to do to help employees understand their specific responsibilities in achieving the organization's goals? A. Collect information C. Create work subcultures B. Develop a mission statement D. Communicate priorities

D Communicate priorities. Employees carry out the work to achieve the organization's goals. To carry out the work, managers must communicate their work priorities to employees. When employees know and understand their priorities, they can perform the most important tasks before they tackle the less important tasks. An organization's mission statement guides the goal-setting process, but it does not provide specific information for completing specific work tasks. Although a variety of work subcultures (e.g., departmental, team, social) exist in most organizations, managers must communicate their work priorities to employees so that they can carry out tasks that will achieve organizational goals. Collected information must be communicated and acted upon to achieve the organization's goals.

A manager monitors an employee as the employee is performing job-related tasks. This is an example of ___________ managerial control. A. remedial C. external B. preventive D. concurrent

D Concurrent. Control is the management function of monitoring the work effort. Managers monitor the work effort in many ways. Concurrent control involves monitoring the work while the employee performs it. This allows the manager to determine if the employee is performing the work correctly and efficiently. If the employee is not performing the work properly, the manager can provide the employee with corrective feedback, which is a remedial action. Preventive control occurs before a business activity is performed. Preventive control often involves establishing standards and procedures for carrying out the activity. An external control strategy is based on a management philosophy in which employees are motivated primarily by external rewards (e. g., bonuses, and awards).

A ceramics artisan creates a variety of decorative vases, plates, and bowls to accommodate specific requests. In this situation, product quality is affected by A. safety. C. durability. B. mass production. D. customization.

D Customization. Product quality is affected by many factors. Customization involves making a product to meet a customer's specific needs and wants. Because each item is unique, the perception of quality differs. In the example, a customer may request that the artisan make a plate in a specific size using specific colors. Mass production is the rapid production of large quantities of goods. The example does not provide enough information to determine if the artisan has the production equipment to mass produce customized ceramic items or if the items are durable and safe.

What is needed to maintain collaborative relationships with suppliers? A. Complete disclosure of information C. Different goals and objectives B. A comprehensive request for proposal D. Effective conflict-resolution skills

D Effective conflict-resolution skills. Because disagreements occur among businesses and their suppliers, effective conflict-resolution skills can facilitate a resolution that is agreeable to both parties. If businesses and their vendors work out disagreements, they are more likely to develop ongoing, collaborative relationships. Businesses and their vendors may have some different goals, but they should align their goals to achieve their ultimate goal—satisfying the end user. It is important for a business to share relevant, but not all, information (e.g., confidential) with its suppliers.

A primary reason that governments regulate the ways in which businesses must report financial data is to A. stimulate market growth. C. reduce taxes. B. eliminate mistakes. D. ensure transparency

D Ensure transparency. Governments require businesses to provide certain types of financial information to regulatory agencies and shareholders. The accounting function collects and records the financial information in the appropriate format. Transparency involves fully disclosing the required information so it is understandable to the intended audience. Governments do not regulate the ways in which businesses report financial data to reduce taxes or stimulate market growth. The consequences of incorrect information (e.g., fines) may reduce the risk of mistakes on the report, but the risk of mistakes cannot be eliminated.

A comprehensive report reveals that the Sabin Company can increase its data-entry outputs by 20% in a six-month period by installing the MMX software system. Sabin can use this type of business analysis to determine A. why it should evaluate work schedules. C. why it should obtain new markets. B. how to detect a problem. D. how to increase its efficiency

D How to increase its efficiency. In this situation, the business is analyzing an "if, then" situation. If the company purchases a certain type of software, then it can increase its data-entry outputs. If the company increases its outputs, it is increasing its efficiency (productivity). How does the business increase its efficiency? It installs a specific type of software. The information does not indicate how to detect a problem or why the company should evaluate work schedules. A business uses a marketing analysis to determine why it should obtain new market segments.

A production-line conveyer belt is an example of a(n) A. service. C. staple good. B. part. D. installation.

D Installation. An installation is a high-cost, long-lasting industrial good that is used to produce other goods and services. Installations affect the amount of goods and services that a producer can make. A production-line conveyer belt is a high cost, long-lasting item that manufacturers use in the production of goods and services. Parts are industrial goods that become part of a finished good without additional processing (e.g., bolt). Staple goods are frequently purchased goods that businesses keep on hand continuously because the demand for them is constant. As an intangible product, a service is an activity that is performed by others for money

Hannah is looking for a new job. What is the best technique for Hannah to use to reconnect with her former coworkers and managers, build a list of business contacts, and learn about job openings? A. Post a blog about her personal interests B. Place an ad in an online newspaper C. Complete job applications on company web sites D. Join a professional online network

D Join a professional online network. Networking is the process of exchanging information with others for the purpose of professional or business development and/or advancement. Professional online networks, such as LinkedIn, provide job seekers the opportunity to connect with former coworkers, managers, and friends who work in the same industry. These connections often provide job leads for job seekers. Placing an ad in an online newspaper, completing job applications on company web sites, and posting a blog about personal interests are not the best techniques to use to reconnect with others for professional networking purposes.

Silence is an effective negotiating technique to use with a vendor when a business wants the vendor to A. initiate a gridlock. C. obtain leverage. B. maintain its authority. D. make a concession.

D Make a concession. A concession is something that one party gives up during a negotiation. Effective negotiators plan the points that they are willing to concede before going to the negotiating table. Often, the negotiator will use silence as a way to make the vendor feel uncomfortable. The business hopes that the vendor might concede the point to fill the silence and keep the discussion going. The business will work to maintain its leverage or power (authority) over the negotiation so it can get what it wants from the vendor. If agreement cannot be reached, the negotiation may end in gridlock, a situation in which neither party gets what it wants.

The primary purpose of preparing a work breakdown structure for a complex project is to A. determine who will lead the project. B. guarantee that the project stays within budget. C. verify that the team members understand their responsibilities. D. make the project easier to manage

D Make the project easier to manage. Developing an effective work breakdown structure (WBS) involves dividing the entire project into units or work packages and then determining when they should be done. Dividing the work into smaller units helps the project manager monitor each step of the project. The work breakdown structure does not guarantee that the project stays within budget, nor does it verify that the team members understand their responsibilities. The project manager leads the project and is usually the person who develops the WBS.

The primary purpose of conducting random product inspections in manufacturing processes is to A. assess employees' ideas. C. achieve sales goals. B. improve product value. D. monitor quality consistency.

D Monitor quality consistency. Quality control involves ensuring the degree of excellence of a good or service. Most businesses use some type of quality control method to achieve their standards of excellence and minimize errors. The quality control methods used depend on the type of business and work that is being produced. Manufacturing companies often inspect random items as they come off the production line to ensure that the items meet their quality standards. If all the inspected items meet the established standards, the products' quality levels are consistent. Random product inspections do not improve product value, achieve sales goals, or assess employees' ideas.

During a weekly meeting, the project manager told the team, "All of you are doing a great job in meeting your deadlines. Just a few more weeks of hard work, and the project will be complete. Then, we will all go out to celebrate." What is the project manager doing? A. Offering a financial incentive C. Measuring the team's goals B. Expressing empathy D. Motivating the team

D Motivating the team. Project managers can motivate team members by reinforcing positive behavior and by rewarding them for reaching certain goals. Offering an incentive such as a celebration luncheon can encourage team members to keep striving to achieve the team's goals. In this situation, the project manager is not expressing empathy, measuring goals, or offering a financial incentive, such as a bonus.

Which of the following is the management function that is responsible for coordinating resources in ways that maximize efficiency: A. Controlling C. Directing B. Staffing D. Organizing

D Organizing. The organizing function of management focuses on setting up the way the business's work will be done. Organizing involves determining what resources the business needs and how the various resources will work together to accomplish the business's goals in the most efficient ways. Staffing is the management function of finding workers for the business. Directing is the management function of providing guidance to workers and work projects. Controlling is the management function that monitors the work effort.

. Which of the following is the type of action that a business is taking when it continuously monitors the laws that affect its operations for the purpose of minimizing risk: A. Remedial C. Reactive B. Corrective D. Preventative

D Preventative. Businesses must comply with a variety of government regulations. Because regulations often change, it is important for businesses to keep up with changes so they can implement appropriate action, if needed, to stay in compliance. Monitoring regulations is a preventative action because it is taking steps to prevent the negative consequences associated with noncompliance. If a business does not comply with regulations, it can be fined, or in some situations, closed down. In addition, noncompliance may result in a poor public image that lowers the business's credibility with its customers. Corrective, reactive, and remedial actions are taken after issues or problems are identified.

What is an advantage of managerial planning? A. Lessens the need to monitor employees C. Decreases the need to delegate work B. Eliminates errors D. Reduces uncertainty

D Reduces uncertainly. Planning is the management function of deciding what needs done and how it will be accomplished. Planning is a futuristic process, which means that managers are forced to think ahead about needed resources, risks, and desired outcomes. Thinking ahead or planning reduces uncertainty because managers are evaluating various scenarios to determine the best way to achieve goals. Planning may reduce errors but does not eliminate them. Delegating work is an organizing activity, which involves assigning authority or responsibility for something to another person. Planning does not lessen the need to monitor employees, which is a controlling activity.

Which of the following situations is an unethical action associated with customer relationship management: A. Allowing customers the ability to opt-out of the e-mail updates that the business provides B. Implementing a frequent-buyers program for the business's customers C. Collecting customer information with authorization to develop a customer profile D. Selling customer lists without the customers' consent to third parties

D Selling customer lists without the customers' consent to third parties. It is unethical for a business to sell its customers' information to third parties without the customers' permission because it is a breach of privacy. When privacy is breached, trust is broken, and customers may defect to the business's competitors. Implementing a frequent-buyers program, collecting information with authorization, and allowing customers to opt-out of e-mail updates are ethical actions

Which of the following represents an issue associated with perceptions of time that may occur when conducting business internationally: A. The business meetings were conducted in the mornings. B. The business meetings were conducted on Tuesdays. C. The business meetings were scheduled to accommodate participants in different time zones. D. The business meetings started several hours later than originally scheduled.

D The business meetings started several hours later than originally scheduled. The concept of time is an important consideration when conducting business internationally. In some cultures punctuality is very important, so it is important to arrive at meetings on time or a few minutes early. In other cultures, time is less important or is viewed differently. In some countries, businesspeople will keep people waiting while they finish another activity, so that s/he can provide the visitor with his/her undivided attention. This action may appear rude to people in some cultures, while it is viewed as a courtesy in other cultures. Accommodating meeting participants in other time zones is a courtesy rather than an issue related to cultural differences. Holding meetings on specific days or at specific times of the day are not cultural issues related to time

What is the primary purpose of developing a post-implementation review during the closure phase of a project? A. To archive all project documentation B. To document necessary changes for future projects C. To formally release all resources from the project D. To determine if the deliverables achieved project goals

D To determine if the deliverables achieved project goals. After the stakeholders receive the project deliverables, the project manager develops a post-implementation review. The post-implementation review is a formal, detailed assessment of the completed project in relation to the project's objectives. The document assesses the project's budgets, deadlines, processes, and the stakeholders' satisfaction with the results or deliverables. The "lessons learned" document outlines the successes and problems with the project. It includes suggestions for improvement for subsequent, similar projects. Although releasing project resources and archiving project documentation are important aspects of closing a project, these activities are not the primary purpose of the post-implementation review.

Patty Hollingsworth is the marketing manager for Burton Manufacturing. If the company uses a hierarchical organizational structure, who reports directly to Patty? A. Malcolm Jennings, Procurement Coordinator B. Lucille Watson, Vice President of Sales and Marketing C. Belinda Pickles, Employee-Relations Manager D. Trent Simpson, Advertising Specialist

D Trent Simpson, Advertising Specialist. The chain of command defines the level of authority and the specific individual who supervises particular employees. Levels of authority are often determined by the business function. As advertising specialist, Trent reports directly to the marketing manager, Patty. Patty reports to Lucille, who is the vice president of marketing and sales. Belinda works in human resources and would likely report to the Senior human resources manager or vice president of human resources. Malcolm reports to the purchasing manager. Purchasing is an operations function.

An effective way to limit employees' access to certain business information that is stored on the company intranet is to A. backup the system daily. C. install debugging software. B. review security policies. D. use a password system.

D Use a password system. Businesses can limit employees' access to computer information by assigning passwords to certain employees. For example, a company's accounting department typically works with customers' financial records, so accounting-department employees are most likely to have authorization to view financial data. On the other hand, the advertising department does not usually use customers' financial information to carry out its activities, so advertising-department employees would not be given passwords to access customers' financial information. Reviewing security policies and performing backup procedures do not limit employees' access to certain business information. Debugging software corrects errors (bugs) associated with specific computer software programs.

Which of the following is a major consideration when selecting project-management software: A. Team members' preferences C. Budgeting method B. Legal business structure D. Vendor technical support

D Vendor technical support. Comprehensive project-management software can help the project manager allocate resources—human, financial, material, capital—in the most efficient ways. When selecting software for complex, large-scale projects, it is important to consider the type of service support that the software distributor is willing to provide. If problems occur, project managers and team members may need to contact a technical support person to answer questions or to help solve technical problems. Team members who have experience with different types of project-management software may offer opinions, but the type of project, available resources, and constraints are likely to have a greater impact on the project manager's selection decision. Legal business structure and budgeting methods are not major considerations when selecting project-management software.

Which of the following is a personal appearance factor that foreigners should consider when conducting business in Saudi Arabia: A. A handshake is a common greeting. B. Wives and daughters are not proper conversational topics. C. Silence is common during business meetings. D. Visitors should dress conservative

D Visitors should dress conservatively. Standards for appropriate dress vary by culture. In Saudi Arabia, it is offensive to display bare shoulders, the stomach, calves, and thighs. Therefore, to project the proper image and not offend Saudi Arabians, foreign businesspeople should wear conservative clothing that covers most of the body. Silence during meetings and handshakes are communication and behavioral considerations. Discussing wives and daughters is a communication issue related to gender.

A business analysis indicates that the TWB Corporation could save $125,675 a year in paper purchases if all its employees decreased photocopying activities by 15%. The analysis provides TWB with important information related to A. resale goods. C. efficiency levels. B. return on investment. D. waste reduction.

D Waste reduction. Businesses often collect and analyze information to reduce waste throughout their organizations. In the example, the waste involved the use of paper. By reducing waste, a business can save money, increase its profits, and often protect the environment. The analysis does not provide insight about the business's return on investment, efficiency levels, or resale goods.

The dating terms that the MRL Restaurant Supply Company negotiated with its glassware vendor are 5/10 net 30 for a purchase order generated on May 20. Calculate the discounted amount that MRL would owe for an order of $1,580.50 if it pays by May 27th. A. $1,510.07 C. $1,541.07 B. $1,547.47 D. $1,501.47

D $1,501.47. 5/10 net 30 means that the buyer will receive a 5% discount if the buyer pays within 10 days of the invoice date, and the entire invoice must be paid within 30 days. To calculate how much the restaurant supply company will owe if it pays within 10 days of the invoice date, first determine the discount amount in dollars. To obtain the discount amount in dollars, multiply the order amount by the discount percentage ($1,580.50 X .05 or 5% = $79.025 or $79.03). Then, subtract the discount amount in dollars from the original order amount ($1,580 - $79.03 = $1,501.47).

Which of the following is an example of a tort associated with the invasion of privacy: A. An employee receives serious injuries while improperly using a business's equipment. B. A salesperson intentionally misrepresents the facts about a product's performance to get a sizable sale. C. A business airs a television ad that makes statements that are designed to harm a competitor's reputation. D. A company uses an athlete's photo without permission to imply the endorsement of the product.

D A company uses an athlete's photo without permission to imply the endorsement of the product. A tort is a wrongful action that harms another person or business. The invasion of privacy is a type of tort. For example, if a business uses a well-known athlete's image without his/her permission to imply that the athlete uses or endorses the product, the business has committed a tort related to the athlete's right to privacy. Misrepresenting facts is a tort related to fraud. A statement that harms an entity's reputation is a defamation tort. There is not enough information provided to determine if a tort has occurred in relation to the employee's injuries. For example, the employee may have knowingly operated the equipment incorrectly. A tort may exist if the business neglected to maintain the equipment or did not train the employee to use it correctly.

Which of the following is a situation indicating a problem with product durability: A. A customer returns a software package because it does not work with her/his computer. B. A customer returns a recently-purchased sweater because it is the wrong size. C. A customer complains to a restaurant server that his/her steak is too rare. D. A customer complains that her/his new cell-phone battery quit working after one week.

D A customer complains that her/his new cell-phone battery quit working after one week. Quality management is the coordination of resources to ensure the degree of excellence of a process, good, or service. If customers complain that goods are breaking or not working after a short period of time (e.g., cell phone batteries), there may be a product-durability problem. After a problem is detected, the business can determine why the problem is occurring and then take steps to fix the problem, which will restore or improve the quality of the product. Returning a sweater that is a wrong size, complaining about the way a steak has been prepared, and returning a software package because it does not work with a computer are examples of compatibility issues.

Ethical accounting professionals avoid conflicts of interest by A. authorizing changes. C. encouraging collaboration. B. exhibiting biased attitudes. D. behaving independently.

D Behaving independently. Ethics are the basic principles that govern an individual's behavior. In the field of accounting, ethical standards serve as a guide for professional conduct. Accountants prepare the financial information that businesses use to make financial decisions, so it is important for them to uphold the ethical standards of their profession. Accountants must be objective, and honest. Being objective involves not being influenced by bias, prejudice, or outside opinion, which is acting independently. Therefore, to uphold professional ethics, accountants should avoid situations that might be considered a conflict of interest, such as auditing a family member's financial records. Authorizing changes to something does not always involve a conflict of interest.

Governments pay for public services such as police protection, road repairs, and public education by A. regulating the business cycle. C. establishing embargoes. B. mandating donations. D. collecting taxes.

D Collecting taxes. All levels of government collect taxes from individuals and businesses. The taxes are used to pay for different types of public services such as police protection, road repairs, and public education. Donations are given rather than mandated. Embargoes are actions that suspend trade with another country and are used for political reasons or during hostilities. Government policies are one of many factors that influence the ebb and flow of the business cycle; however, there are aspects of the business cycle that cannot be regulated.

Ava usually feels refreshed and the most focused between 7:30 a.m. and 10:30 a.m. Which of the following should Ava work on during this time: A. Simple daily tasks C. Low priorities B. Routine correspondence D. Complex cognitive activities

D Complex cognitive activities. An important aspect of managing work commitments such as projects, meetings, presentations, etc., is scheduling your time in the most efficient ways. Most people have times of the day when they feel more energetic and focused than others. Some people, like Ava, are "morning people" and feel best early in the day. Because Ava is at her best early in the morning, she should focus on complex work commitments that require a lot of logical thinking, analyzing, and problem solving. Routine correspondence, simple daily tasks, and low priorities may not require a lot of cognitive activity or "brain power" to perform.

What social factor has prompted many companies in the U.S. and abroad to include bilingual labels on their products and bilingual signs in their business facilities? A. Technology changes C. Family roles B. Lifestyle trends D. Demographic shifts

D Demographic shifts. Immigration and globalization have lead to growing numbers of minorities in the U.S. and other countries. To accommodate language differences, many companies are including bilingual labels on their products and bilingual signs in their facilities. Lifestyle trends involve the shift in direction regarding the way people live, socialize, and work. Family roles involve the function of members within the family unit. For example, there are more fathers staying at home to take care of the children, while the mothers work outside the home. Technology changes are always occurring and are not a primary reason why companies are publishing information in different languages.

A positive political tactic to use to influence organizational decision making often involves A. encouraging workplace competitiveness. C. associating with cynical coworkers. B. taking credit for others' work. D. developing a support base.

D Developing a support base. Individuals build political relationships in business to help further their career goals, as well the organization's goals. Individuals who respect and work well with others are more likely to have positive relationships with managers and other influential members of the organization. When individuals take action to build these relationships, they are developing a support base. Taking credit for others' work is a negative political tactic. Encouraging workplace competitiveness can create a negative, distrustful environment. Cynical coworkers tend to be negative and distrusting. Fostering relationships with these individuals may hurt a person's political influence.

Irish businessperson Nicole McMurray wanted to give Mrs. Fukushima, the wife of a well-known Japanese business executive, a small token of appreciation for inviting her to dinner. Nicole carefully selected a gift, wrapped it in white paper, and placed a red bow on top of the package. When Nicole presented the gift, Mr. and Mrs. Fukushima responded with looks of confusion and frowns. Later, Nicole learned that the color white signifies death to the Japanese, while red signifies luck. This situation illustrates that A. the Japanese culture prefers dark colors, such as gray. B. the concept of color is similar throughout the world. C. color is not an important concept in most cultures. D. different cultures associate different meanings with color.

D Different cultures associate different meanings with color. Different cultures attach different associations to different colors. Therefore, it is important for businesspeople to know and understand these differences when conducting business in other countries. Nicole likely has positive associations with the color white, such as pure, clean, angels, brides, etc. However, Japanese people have negative associations with white because it symbolizes death and dying. After adding a red ribbon to the package, it's no wonder that Mr. and Mrs. Fukushima were confused, as red signifies luck to the Japanese people. Loosely interpreted, the gift wrapping indicates that Nicole is wishing them luck when they die. Because red is a bright color that has positive associations with it, one cannot assume that Japanese people prefer dark colors. In fact, the Japanese associate cheapness or low quality with the color gray.

Robert forgot that he told Sabrina to update the price list, so he asked Todd to do it. Due to the lack of coordination among the team members, what is most likely to happen? A. Effective collaboration C. Accurate calculations B. High efficiency D. Duplicate work

D Duplicate work. Coordinating the work effort involves applying resources and tasks in ways that accomplish the business's goals in the most efficient way. Coordination helps the business run smoothly. An important aspect of work coordination is collaboration and open communication. Often, when team leaders and team members do not collaborate and communicate effectively about how and when to do the work, team members perform the work incorrectly or duplicate their efforts. In the example, Robert told two team members to perform the same task, so the price list was updated twice. Duplicated work is an inefficient use of resources because Todd could have completed another task while Sabrina updated the price list. There is not enough information to determine if Sabrina and Todd calculated the new prices

What is an advantage to a company of building long-term relationships with a few vendors? A. Less information sharing C. Fewer supply interruptions B. Wider product selection D. Easier to manage

D Easier to manage. It is easier to manage vendor relationships when a company works with a small group of vendors. When the company works with fewer vendors, it has more time to cultivate long-term relationships with each vendor. Long-term relationships benefit both the company and the vendor because both businesses are willing to share information; are understanding of each other's needs, expectations, and limitations; and are more willing to work together to resolve conflicts that might occur. Working with a few vendors does not always provide the business with a wider product selection. A disadvantage to working with a few vendors is that supply interruptions are more likely to affect the company because it may not have easy access to another source that sells similar goods or services.

Determine if the following statement is true or false: It is acceptable for a business to distribute its customers' personal information without their consent to third parties. A. True. Most international trade agreements include provisions that allow businesses to sell their customers' personal information to other businesses. B. False. A business that distributes its customers' personal information is breaking antitrust laws. C. True. After collecting customers' information, the business owns the information and can do whatever it wants with the information. D. False. It is unethical to distribute customers' personal information without their permission to third parties.

D False. It is unethical to distribute customers' personal information without their permission to third parties. Businesses collect and maintain information about their customers, employees, products, and vendors. Governments require businesses to maintain certain types of information to be in compliance. Some information, such as customer credit-card account numbers and health information, are confidential, so the business should take steps to secure the information. Distributing customer information (e.g., mailing lists) without their consent to third parties is not ethical behavior and is illegal in many jurisdictions. Trade agreements are agreements between nations that provide for favorable trade relations. Trade agreements do not allow businesses to sell customers' personal information. Antitrust laws are regulations that prevent a person or company from taking actions that restrain free trade and competition in the marketplace.

When Canadian and Mexican businesspeople conduct business in the United States, it is important to remember that A. flowers and plants are considered to be distasteful and inappropriate gifts. B. gifts, such as gourmet food items and vintage wines, are expected. C. gifts should be presented only to the president or CEO of the company. D. gift-giving is often discouraged because it may be viewed as bribery

D Gift-giving is often discouraged because it may be viewed as bribery. Gift-giving practices vary greatly among countries. In some countries, it is customary, or expected to give gifts in business situations. In the United States, many businesses limit or prohibit gift giving/receiving because it may be viewed as bribery, which is an illegal activity under certain circumstances. American businesspeople do not expect gifts. Flowers and plants are appropriate gifts, if the company allows employees to accept gifts. It is not an American custom to give gifts only to the president or CEO of a company

After a meeting, an international oil executive presented an American businessperson with an expensive token of appreciation. The American businessperson politely declined the offering because s/he didn't want the exchange to appear as a bribe. This is an example of a cultural issue involving A. body language. C. greeting etiquette. B. language translation. D. gift-giving practices.

D Gift-giving practices. Gift giving practices vary greatly among countries. In some countries, it is customary to give gifts in business situations. In other countries, businesses often limit or prohibit giving or receiving gifts because it may be viewed as bribery, which is an illegal activity under certain circumstances. The example is not an issue that involves language translation, greeting etiquette, or body language.

My Favorite Things is a manufacturer. Recently, the management at My Favorite Things has noticed an increase in the number of customer returns due to defects. In response, management wants to motivate employees to focus on quality control by involving them in the process. Which of the following should NOT be used to encourage employees to take responsibility for manufacturing high-quality products: A. Form teams that work together to improve quality B. Help employees identify their internal customers who rely on their work C. Give employees the power to correct a defect immediately D. Have employees compete for the position of quality inspector

D Have employees compete for the position of quality inspector. Creating a culture of quality involves asking all employees to be responsible for quality. Using quality inspectors moves the responsibility for quality away from each employee and onto the inspector. The remaining answers could be used to involve employees in improving quality. When employees identify internal customers, they recognize that these customers need to receive good quality work from them in order to do their job. Empowering employees to "stop the line" to fix a defect stops defective parts from continuing through the manufacturing process. Quality-focused teams encourage employees to work together to improve quality.

The laddering technique is used to capture and change categories of A. redundant knowledge. C. meaningless data. B. horizontal communication. D. hierarchical information

D Hierarchical information. A hierarchy arrangement sets information in a certain order, rank, or level. The laddering technique is a tool that helps an organization to capture information and categorize it into a meaningful and useful order. The business can obtain information by collecting tacit knowledge from internal and external sources. The laddering technique, which can be implemented manually or with a computer program, can help a business organize the steps necessary to complete a certain activity or process. By doing so, the business might discover ways in which it can change the ordering system to increase efficiency, such as eliminating an unnecessary task or a task that is being performed twice. Horizontal communication occurs among individuals at the same level, such as coworkers.

Mr. Edwards saved some confidential customer information from his employer's computer network onto a flash drive, so that he could work on a project from a different location. Without realizing it, Mr. Edwards dropped the flash drive in a parking lot on his way to a meeting. This situation is an example of a risk related to A. data entry. C. employee privacy. B. patent protection. D. information security.

D Information security. Businesses often maintain personal information about their customers, such as credit-card numbers, bank-account numbers, and account passwords. Businesses must take reasonable care to protect and secure their customers' personal information to reduce the risk of fraudulent behavior, such as computer hacking and identity theft. Businesses should develop policies about removing digital information from their facilities. A patent provides legal protection to the owners of inventions. The customers' privacy, rather than employees' privacy, has been compromised in the presented situation. There is no indication that data entry problems exist with the information provided

What is a primary characteristic of intellectual capital? A. Reliable C. Observable B. Factual D. Intangible

D Intangible. Intellectual capital is the collective knowledge of an organization that can be used to generate financial gain. Because knowledge begins in the thoughts and minds of employees, the knowledge is intangible. Some knowledge may be factual, observable, and reliable, but not all of it is. Businesses must be aware that ethical issues often compromise the security of their intellectual capital, such as sharing confidential information with others outside the company. Therefore, businesses should develop policies and communicate them to employees about their intellectual capita

What section of a research report outlines the research plan? A. Introduction C. Results B. Recommendations D. Methodology

D Methodology. A research report is a written document that summarizes an investigation related to a particular issue or problem. The methodology section of the report outlines the research plan. It appears in the middle of the report and discusses the types of research tools used and why they were selected. The results section reports the research findings. The recommendations section is the proposed course of action, which is considered the research results. The recommendations section is the last component presented in the report. The introduction appears at the beginning of the report and discusses the purpose and significance of the research project

Which of the following should be listed as a long-term liability on a balance sheet: A. Equipment C. Inventory B. Payroll D. Mortgage

D Mortgage. A balance sheet is a financial statement that captures the financial condition of the business at that particular moment. The balance sheet provides information about the businesses assets—anything of value that the business owns—and its liabilities, which are debts that the business owes. On their balance sheets, businesses classify liabilities as current or long-term. Mortgage loans are long-term liabilities because businesses usually make mortgage payments for several years. Payroll expenses (employees' salaries) are current liabilities because the business is expected to pay its employees for their work on a regular basis throughout the year. Businesses classify inventory as current assets and equipment as fixed assets.

. What is a primary reason why employees might withhold their tacit knowledge from coworkers? A. Slow customer-service levels C. Uncooperative vendors B. Unsatisfactory credit rating D. Negative work culture

D Negative work culture. Tacit knowledge is expertise that is often difficult to explain or quantify. Businesses with positive work cultures tend to encourage openness and sharing, which builds trust among employees. When coworkers trust one another and feel valued by their employers, they are more likely to share their tacit knowledge with one another. Negative work environments tend to foster a distrustful environment, which often discourages employees from sharing their expertise. In these situations, employees are often fearful about losing their jobs and are more likely to keep helpful information to themselves. An unsatisfactory credit rating, uncooperative vendors, and poor customerservice levels are not primary reasons why employees withhold tacit knowledge from coworkers.

To help businesspeople adapt their communication styles to appeal to clients from other cultures, they should strive to be A. respectful, indifferent, and honest. C. sensitive, transparent, and demanding. B. confident, biased, and manipulative. D. patient, flexible, and empathetic.

D Patient, flexible and empathetic. So that businesspeople don't do something that will offend their clients, they should adapt their communication styles with clients from different cultures. To develop positive relationships with international clients, businesspeople should try to learn as much as they can about their clients' cultures, customs, and social values. Adapting communication styles requires businesspeople to be patient, flexible, empathetic, respectful, confident (but not overly so), honest (transparent), and sensitive to their clients' cultures and customs. Projecting biased, demanding, manipulative, or indifferent attitudes may offend the clients

1. A realistic vision involves attaining __________ results. A. conditional C. noble B. complex D. permanent

D Permanent. A vision is the future you wish to create. Though visions often develop from abstract dreams, they must be achievable at some point in the future—they must be realistic. Realistic visions yield permanent (rather than conditional) results. The results achieved may impact individuals throughout their lives, as well as generations of people in the distant future. A realistic vision does not need to yield complex or noble results.

One way to reduce stress on the job is to A. take time to complete personal tasks. C. take breaks every hour. B. complete tasks at the last possible moment. D. plan your work in advance.

D Plan your work in advance. Stress is a mental, physical, or emotional feeling of pressure or tension. Ongoing stress can have a negative effect on an individual's productivity. People who procrastinate tend to place additional stress on themselves and others because they do not provide enough time to complete the work to the best of their abilities. As a result, work efforts are rushed, mistakes are made, conflicts occur, and the work quality is compromised. One way to reduce this source of stress to is plan your work well in advance. By doing so, you can leave enough time to address unexpected situations and complete quality work with fewer mistakes. Taking short breaks throughout the day, maintaining a healthy diet, exercising, and getting enough sleep are other ways that can help you effectively respond to stress. However, taking breaks every hour will reduce productivity. Personal tasks should be completed before work, after work, or during breaks.

What must occur before any management functions can be carried out? A. Brainstorming C. Processing B. Analyzing D. Planning

D Planning. Planning is the management function of deciding what will be done and how it will be accomplished. Brainstorming is a creative-thinking technique that is often used during the planning process. Deciding what will be done involves establishing objectives. After establishing objectives, the business can implement processes to achieve those objectives. The business analyzes its performance to determine if it achieved its objectives.

Which of the following is an example of an employee analyzing human-resources information: A. Sally evaluates the responses to a survey that the business distributed online to customers who spent over $5,000 with the firm last year. B. Pedro uses a complex software program to calculate the various break-even points for a new product. C. Stewart gathers quotes from a variety of vendors to determine which vendor provides the best quantity discount for parts. D. Polly reviews several companies' pay scales to determine if the pay range for the firm's marketing director is appropriate.

D Polly reviews several companies' pay scales to determine if the pay range for the firm's marketing director is appropriate. Business analysis is the process of investigating and evaluating a business issue, problem, process, or approach. Businesses analyze a variety of areas that affect their operations, including activities that relate to the human-resources management function. Because the humanresources management function is responsible for finding and hiring skilled workers, it must determine the appropriate pay for those workers, which can be done by reviewing external data gathered from government and industry reports. Information can also be obtained by reviewing other companies' job postings and pay scales, if available. Calculating break-even points is a pricing activity. Gathering vendor quotes is a purchasing activity. Evaluating survey responses is a marketing-research activity.

As the assistant purchasing manager of a large company, Hannah juggles many workplace commitments. Last week, Hannah had several meetings with vendors, and didn't leave herself enough time to finish the weekly inventory report for her manager—a task that she really doesn't enjoy doing. Because the report was late, Hannah's manager was annoyed with her. What barrier prevented Hannah from effectively managing her workplace commitments? A. Cultural awareness C. Self-esteem B. Competence D. Procrastination

D Procrastination. Procrastination is putting off until tomorrow what could have been done today. One reason employees procrastinate is because they don't like doing certain tasks, so they put those tasks off until the last possible moment. All tasks—even those that are not enjoyable—are commitments that employees must manage to perform their jobs efficiently and to help the company achieve its goals. There is no indication that Hannah lacks competence, self-esteem, or cultural awareness.

Determine which function of marketing addresses the following question: Is the product packaged appropriately? A. Pricing C. Marketing-information management B. Selling D. Product/service management

D Product/service management. Product/service management involves obtaining, developing, maintaining, and improving a product mix in response to market opportunities. Product packaging is an element of product/service management. Selling is determining consumer needs and wants through planned, personalized communication that influences purchase decisions and enhances future business opportunities. Marketing-information management is a marketing function, which involves gathering, accessing, synthesizing, evaluating, and disseminating information for use in making business decisions such as what and how much it can expect to sell. Pricing involves determining and adjusting prices to maximize return and meet customers' perceptions of value.

Which of the following is a technological tool that a business uses to store, update, and access various types of information: A. Microfilm C. Instruction manual B. Newsletter D. Relational database

D Relational database. A relational database contains various types of data that are organized in tables. By setting a query, the categories of information can be linked together in a variety of combinations to obtain the desired output. The categories might contain data such as the customers' names, addresses, phone numbers, order dates, payment dates, etc. For example, a business might want to know which customers have overdue accounts within a certain time frame, such as 60 days. By setting a query, the business can retrieve the data in a report, which it can use to follow up with the customers. The same database may also contain sales information. The sales manager can set a query to obtain the names of the customers who have ordered a certain dollar-volume range (e.g., $5,000 - $10,000) within a certain period (e.g., September 1, 2009 - December 31, 2009). The sales manager can use the data to prepare forecasts, analyze customer buying habits, etc. Newsletters, instruction manuals, and microfilm are not technological tools that a business can use to store, update, and access various types of information

The RTF Company's management team is working on next year's budget, and rumor has it that some departments' budgets will be cut. The production manager, Allison, has been speaking with other managers and influential staff members about the budgeting issues, and discussing why the production department should not be subject to a budget cut. The primary reason that Allison is engaging in organizational political behavior is due to A. the desire for career advancement. C. unrealistic goals. B. technological needs. D. scarce resources.

D Scarce resources. In organizations, political behavior or "politicking" is the process of gaining others' support of an idea or action for the purpose of professional gain. People exhibit political behavior in the workplace for a variety of reasons, such as advancing their careers, changing company policies, or obtaining scarce resources. In the example, Allison does not want to have her department's budget cut. A budget cut would mean less money flowing into the department, and money is a scarce resource. There is not enough information provided to determine if the department has technological needs, if Allison has unrealistic goals, or if Allison is trying to leverage the situation to advance her career

Burkhart Manufacturing is implementing a new, company-wide computer system. Nadine is in the process of identifying the skills that will be needed to manage the information and maintain the various software applications. What function of management is Nadine focusing on? A. Planning C. Training B. Controlling D. Staffing

D Staffing. Staffing is the management function of finding workers for a business. The staffing function identifies qualified candidates to perform the work. To identify qualified candidates, the manager must know what skills are needed to perform the work. Because Nadine is determining what skills are needed to operate the new computer system, she is focusing her efforts on the staffing function of management. Controlling is the management function of monitoring the work effort. Training involves teaching or developing a new skill. Planning is the management function of deciding what will be done and how it will be accomplished.

Natalie searched for 45-minutes to locate an important file folder, which she found under a pile of papers in an unmarked box that was stored under her desk. What action did Natalie fail to take that would have increased her efficiency and saved the company money? A. Observing safety standards C. Using supplies wisely B. Staying on task D. Staying organized

D Staying organized. Employees can help their employers reach their objectives by working efficiently. To work efficiently, employees should be organized and have a system for keeping track of their work and supplies. Because Natalie's workspace was not organized, she spent a lot of time looking for a file instead of working on something more productive. There is not enough information provided to determine if Natalie has problems staying on task, using supplies wisely, or observing safety standards.

Past sales records show that sales increased at a clothing store when a 10th rack of clothing was added to the store floor. However, when an 11th rack is added, sales increased by only 1%. In economics, this is explained by A. economies of scale. C. the private enterprise system. B. the concept of competition. D. the law of diminishing returns.

D The law of diminishing returns. The law of diminishing returns states that when increasing amounts of one factor (clothing racks, in this case) are employed, holding all other factors constant, after some point, the resulting increase in output (sales, in this case) becomes smaller and smaller. In this scenario, this may be because more racks make the store crowded, and consumers had trouble viewing the merchandise. While the store has competitors, its decision to add racks of merchandise does not take competitors into consideration. While the store likely is operating in a private enterprise system, the declining sales increase caused by another clothing rack is not explained by that concept. Private enterprise simply means a business unit is established, owned, and operated by private individuals for profit. Economies of scale is the reduction in cost per unit resulting from increased production, realized through operational efficiencies. This scenario does not deal with the cost of the clothing.

What activity does accounting software help businesses do? A. Create virtual situations C. Create and play AV media B. Place orders for raw materials D. Track credit transactions

D Track credit transactions. Accounting software programs allow businesses to efficiently track various financial data and generate financial reports. Accounting software tracks bank and credit transactions, generates invoices, and maintains tax information. Some accounting software programs have inventory applications. Inventory software applications are used to track various types of stock including office supplies, raw materials, and resale items. Multimedia software is used to create and play audio and video media. Simulation software applications are used to create virtual situations that are similar to real-life situations, such as aircraft-flight simulations

A manufacturer stocks casters and decorative hardware to make furniture. What type of inventory is the manufacturer maintaining? A. MRO goods C. Perpetual B. Finished goods D. Work-in-progress

D Work-in-progress. Work-in-progress inventory consists of the parts and components that are used to complete the finished item. Casters and decorative hardware are examples of work-in-progress used to make furniture such as storage chests, coffee tables, and clothing armoires. Finished goods are completed products that are ready to be marketed. The perpetual inventory method records and continuously updates inventory information. MRO goods are maintenance, repair, and operating supplies such as office and cleaning supplies and employee uniforms