intro to business exam

________ refers to contracting out certain business functions or operations to other companies.

Outsourcing

________ refers to the degree to which information flows freely within an organization, among managers and employees, and outward to stakeholders.

Transparency

Why should corporations be allowed to generate profits?

Because the country's standard of living involves the goods and services created by profit-seeking companies.

A(n) ________ is a framework of how a business intends to generate revenue.

business model

One-on-one interaction between a salesperson and a prospective buyer is called ________.

personal selling

Organizations can promote systems thinking by ________.

showing people how they contribute to the overall goal

Which of the following helps determine the value a customer places on a product?

utility

________ refers to transferring a part or all of a business function to a facility in another country.

Offshoring

In a general partnership, ________.

all partners have joint authority to make decisions

Which of the following refers to the amount of a good or service that customers will buy at a given time?

demand

Which of the following is a valid observation of corporations?

A corporation is distinct from the people running it.

________ refers to using the brand of existing products on new products in the hopes that the reputation of the existing product will help sales of the new product.

Brand extension

________ involves a financial arrangement in which companies with products sold nationally share the costs of local advertising with local marketing intermediaries.

Cooperative advertising

________ refers to a state of physical and emotional exhaustion that can result from constant exposure to stress over a long period of time.

Employee burnout

What is one major advantage of a small firm over a large firm?

Freedom to innovate and move quickly.

________ refers to a supposed effect of organizational research, in which employees change their behavior because they are being studied and given special treatment.

Hawthorne effect

Which of the following is a key advantage of incorporating a business as a sole proprietorship?

It is easy to establish and requires less paperwork than other structures.

Why is an innovative spirit harder to have in a larger company?

Large firms are more analytical and careful as they mature.

________ refers to the combination of forces that moves individuals to take certain actions and avoid other actions.

Motivation

________ is a term used to separate a company from efforts that emphasize production or transaction, and includes long term interactions with satisfied customers.

Relationship marketing

________ are fairly important individual goods and services that people buy less frequently.

Shopping products

________ lies somewhere between capitalism and communism, with a fairly high degree of government planning and some government ownership of capital resources.

Socialism

________ refers to the quantities of a good or service that producers will provide on a particular date at various prices.

Supply

________ made it illegal for employers to practice sexism or discrimination on the basis of gender.

The Civil Rights Act of 1964

Why is starting a business as a sole proprietorship easier than starting as a corporation?

There are very few legal requirements as a sole proprietorship.

________ refers to the percentage of the workforce that leaves every year.

Turnover

Which of the following is an advantage of offshoring?

U.S. firms can charge lower prices through offshoring

A company's ________ defines how it will generate revenue and produce a profit.

business model

Businesses that need very large amounts of money, equipment, or other material resources in order to get started are ________ businesses.

capital-intensive

Tension that exists when a person's beliefs don't match his or her behaviors is called ________.

cognitive dissonance

When the U.S. dollar is strong, U.S. exports will likely ________.

cost more in other countries

Because they fundamentally change the nature of an industry, ________ can be powerful enough to create or destroy entire companies.

disruptive technologies

Three factors contributing to the increased number of small businesses are technologies such as e-commerce, growing diversity in entrepreneurship, and ________.

downsizing and outsourcing

The use of temporary and independent contractors has made ________ difficult for contemporary managers.

fostering employee loyalty

Which of the following is a main feature of protectionism?

governmental intervention in trade

The introductory stage will be followed by a(n) ________ stage for a successful product.

growth

Which of the following is an objective of protectionism?

guarding specific industries in a nation

The use of unpublicized information that an individual gains from the course of his or her job, in order to benefit from fluctuations in the stock market, is called ________.

insider trading

The risk and reward relationship ________.

is fundamental to businesses in every modern economy

A small business is defined as a company that ________

is independently owned and operated and not dominant in its field

A potentially significant disadvantage of a partnership is that ________.

it has more potential for disagreement and conflict

Which of the following alternative work arrangements allow two or more employees to share a single full-time job, and split the salary and benefits?

job sharing

The point in a system where a small correction could improve performance is called the ________.

leverage point

If individuals and companies believe they can pursue rewards without facing the risks that should be attached to those pursuits, they are more likely to engage in irresponsible and even unethical behavior. This situation is known as a(n) ________.

moral hazard

Of all the alternatives not selected, the one with the highest value represents the ________ of the action taken.

opportunity cost

Advertising or display materials set up at retail locations to promote products to potential customers as they are making their purchase decisions are called ________.

point-of-purchase displays

Which strategy encourages the consumer to seek out more information about a product, or specifically seek out a product in the promotional effort?

pull strategy

An overall environment that results from job and work conditions is called ________.

quality of work life

The defining characteristic of ________ is that it tells past customers that a product is still available or a company is ready to serve their needs.

reminder advertising

According to Frederick Herzberg's two-factor theory, which of the following factors acts as a motivator?

responsibility

The classic theory of comparative advantage suggests that each country should ________.

specialize in those areas where it can produce more efficiently than other countries

Taxes, surcharges, or duties levied against imported goods are known as ________.

tariffs

The term ________ refers to forces resulting from the practical application of science to innovations, products, and processes.

technological environment

Corporate social responsibility refers to ________.

the notion that business has obligations to society beyond the pursuit of profits

What motivational theory supports the idea that employees like to work and are motivated by causes they believe in?

theory Y

A person's disclosure that exposes illegal or unethical behavior by others within the organization is ________.

whistle-blowing