Intro to Business Midterm

_____ is the process of guiding the development, maintenance, and allocation of resources needed to attain organizational goals.

Management

No matter what the crisis, there are some basic guidelines managers should follow to minimize the negative outcomes. Which of the following is an example of one of those guidelines?

Managers should ask for help if it is needed.

_____ are entrepreneurs who start a series of companies.

Multipreneurs

A decline in real GDP that lasts for two consecutive quarters is called a(n):

Recession

A domestic firm may decide to contract for the production of its goods by an established foreign manufacturer. Such private-label manufacturing by a foreign company is called:

contract manufacturing

The number of people or subordinates that a manager effectively controls and directs is called the manager's span of:

control

Gillette wanted to make its distribution system more efficient. It decided to implant a tiny computer chip in each of its products' packages, so it could track its products and improve its inventory management. Which management function would be used to achieve the goal of greater efficiency?

controlling

A group of cotton growers in North Georgia and North Alabama pooled their resources to build a cotton gin and storage area for the ginned cotton. They marketed their cotton to textile mills under one label. This collective ownership organization is a:

cooperative

American Express is organized into four divisions that cater to businesses, consumers, travelers, and investors. American Express uses _____ departmentalization.

customer

Laws relating to the alcoholic content of beer have required many imported brands of beer to be labeled malt liquor when it is sold in the United States. In addition, all beer sold in the U.S. must contain an expiration date or a "best-buy" date. These laws have made it difficult for small foreign breweries to enter the U.S. market. These laws are an example of:

customs regulations

The typical problem-solving team:

meets on a regular basis to share information and discuss ways to improve processes

Partnership agreements generally specify all of following EXCEPT:

methods of taxation of each partner

Michael Bronner made a killing in the direct marketing business as the cofounder and CEO of Bronner Slosberg Humphrey, a wildly successful direct-marketing firm. His newest venture, Upromise Inc., enlists some of America's largest corporations to help families pay for college and is extremely successful. The 40-year-old Bronner will more than likely start at least one more new company before he retires because Bonner is a(n):

multipreneur

Another name for the informal channel of communication used by the informal organization is:

the grapevine

The most fundamental reason for the growth in world trade is probably due to:

the need for businesses to expand their markets

Demography is the study of

the vital statistics of populations and how they change over time

Manila Water, the provider of the water and sewerage services in the capital of the Philippines has purchased the government owned water and sewerage system for the entire country. In terms of the managerial hierarchy, its president Antonino Aquino is in _____ management.

top

The slope of the supply curve is:

upward and to the right

Protectionism:

uses artificial barriers to protect domestic industries

With a communist economy system:

- there is complete freedom of trade - consumers can expect a mixed economic reaction - there are strong incentives for workers - basic industries such as railroads and utilities are owned by the government, while other industries are owned by the private sector - none of the above is true: correct answer

_____ are products that are bought from one country for use in another just as the U.S. buys wood pulp and timber from Canada.

Imports

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

Influential

Which of the following factors would most likely result in a dramatic change in supply?

a change in the price of raw materials used in the production process

Kirby Frigo has opened a dog grooming business. Frigo, like other small business owners, probably will experience:

burdensome government regulations

An economic system based on complete freedom of trade and little, if any, government control is known as:

capitalism

Middle managers usually:

carry out plans and policies of top management

In a _____ organization, lower-level personnel are not given a chance to develop their decision-making and leadership skills.

centralized

Jack Welch, former CEO of General Electric, was known by his employees as "Bloody Jack" because of the downsizing and restructuring he insisted the company do if its various departments were unable to achieve organizational goals. Knowing this nickname, you can assume that Welch used _____ power to accomplish his goals for GE.

coercive

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

corporate philanthropy

The Small Business Administration (SBA) offers a broad range of aids to small businesses. They include:

guarantees on loans made by private lenders

Social responsibility goes beyond obligations provided by law or union contract. Two important aspects of social responsibility are that the obligation is both:

voluntary and broad

The original purpose of the _____ was to help build infrastructure in developing countries and to help relief the debt burden of these countries.

World Bank

Fairmount Food Group purchased Swissrose International Inc., market of several brands of specialty and food service cheese from ConAgra. The _____ will make Fairmount the largest U.S. importer and marketer of specialty and deli-style cheese.

acquisition

Clarence Danvers is buying a Cinnabon franchise at the airport in Tulsa. Danvers knows that he will get all of the following benefits EXCEPT:

assistance in personal income tax preparation

The difference between the small business owner and the entrepreneur is that the entrepreneur:

assumes the risk of the business

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

business dies with her

A mechanistic organization has:

centralized decision making

If a country specializes in goods that it can produce most readily and cheaply and trades those goods for the goods that another country can produce most readily and cheaply, then both countries are exercising the principle of:

comparative advantage

Asan Linhoud has a major decision to make regarding whether to create a new sales territory or simply add customers to existing territories. He asks for suggestions from his sales reps but will make his own decision. This style of leadership is called:

consultative

A _____ is a form of trading arrangement in which part or all of the payment for purchased goods or services is in the form of other goods and services.

countertrade

Jill Hansom borrowed $40,000 from a credit union to start a company that makes and sells peach salsa. Hansom used _____ financing.

debt

One of the disadvantages of the matrix structure is:

lack of cohesiveness

The implementation of an expansionary policy by the Federal Reserve would result in:

lower interest rates

French language purists on both sides of the Atlantic are on the warpath. Fed up with the growing prevalence of English on the Web, a French state institution founded in the 17th century to maintain the purity of the language unveiled a dictionary of newly-coined French equivalents to English Internet terms in 2000. This is symptomatic of the difficulties in doing business in France because in many situations, the business must be conducted in French. Therefore, it is easy to assume that _____ is extremely important in France.

nationalism

New Bedford College keeps all of its records on computers. When a student registers for a class, the computer is checked to make sure that the student has all of the prerequisites for the class. Last fall, the computer went down during the first day of registration. The registrar's office had to make a _____ decision in which it was decided that the registration period would be extended to an unprecedented five days even though this would mean that classes would have to start later, and there would be fewer class meetings.

nonprogrammed

Another name for the matrix structure is the:

project management approach

Which of the following is a reason why small business thrives in the United States?

rapidly changing technology

Office Depot has instituted the Office Depot Advantage, a program in which a customer who spends a minimum of $200 up to $299 in a three-month period can receive a $20 reward good for the purchase of additional Office Depot merchandise. Customers who spend between $300 and $499 receive a $30 reward and those who spend more than $500 quarterly receive a $50 reward. The goal of this _____ program is to encourage customers to consolidate their office product purchases at Office Depot.

relationship management

Of all forms of business ownership, corporations account for the largest share of both:

sales and profits

The first step to incorporating a company is to:

select the company's name

Which of the following is NOT an example of a good that would be sold in a department store?

the advice of a wedding planner

There are a large number of small firms that provide entertainment for children's birthday parties. There is little difference between one company's inflatable slide and another company's. Clowns and magicians do similar tricks. Both the sellers and the parents buying the entertainment are well informed as to price and sources although sometimes it is difficult to hire the same entertainer two years in a row because the business is so easy to open and close. What type of market structure do local party entertainers depict?

Perfect Competition

Which of the following factors has NO effect on the size of a manager's span of control?

age of the subordinates

When determining the GDP in 2006 for Chile, the economists adjusted the current market prices by 3.1 percent to correct for inflated values. This adjusted GDP is called the nation's _____ GDP.

Real

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

Venture capital

Rudy and Ritchie Ling ran a camp this summer for children in their neighborhood. Rudy spent $135 on supplies and earned $250 before expenses. Ritchie spent $140 on supplies and made $210 before expenses. What is the combined revenue for the two brothers?

$460

Intrapreneurs:

- have a high degree of autonomy in spite of the fact they work for a large corporation - have the characteristics of creativity, vision, and risk-taking. - receive regular salaries and employee benefits - run mini-companies within large corporations - are accurately described by all of the above: CORRECT ANSWER

Which of the following is NOT listed in the text as a reason why more and more companies are doing business in the global marketplace?

Companies enter the global marketplace to maintain their balance of trade.

Which of the following is a key attribute of the virtual corporation?

They are less permanent, less formal, and more opportunistic than traditional partnerships. With information technology, geographically dispersed companies can easily work together. The structure expands the traditional boundaries of an organization. Each partner brings its core competency to the alliance. All of the above are key attributes of the virtual corporation - CORRECT ANSWER

_____ is a philosophy that focuses on the consequences of an action to determine whether it is right or wrong. This philosophy holds that an action that affects the majority adversely is morally wrong.

Utilitarianism

Articles of incorporation do NOT include:

a list of all stockholders' names

Andy Yocom saw prime advertising space on the flags on the golf course. He reasoned that any marketing messages would get prominent attention if they were placed on the flags since golfers focus on them when they take their shots. As a result Yocom used his own initiative and money to start Invision Golf Group Inc. Yocom is an example of a(n):

entrepreneur

Which of the following is a trend that is changing the face of entrepreneurship and small business ownership?

entrepreneurial diversity

Summer Dean was walking through the mall and found a gym bag lying on the ground. The decision Dean must make as to whether to keep the gym bag and its contents for herself or turn it into the mall's lost and found department involves:

ethics

Amex Inc. is a worldwide company that specializes in high growth industries. It acts as a global marketer for small manufacturers of medical products, telecommunications products, and data management products. Amex Inc. is an example of a(n):

export management company

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

find financing for the business

Nations sometimes form free-trade associations and establish areas where there are few, if any, export and import duties or other regulations that would act as barriers to trade among partners. These are called:

free trade zones

Avery Lutz quit his landscaping job in Florida and has moved to British Colombia, where he is actively seeking employment in the real estate industry. This is an example of _____ unemployment.

frictional

_____ skills refer to the manager's ability to operate in diverse cultural environments.

global management

A disadvantage of franchising to the franchisee is:

restricted operating freedom

Why would a company choose to engage in a conglomerate merger instead of a vertical or horizontal merger?

A conglomerate merger is done to reduce risk.

Codes of ethics:

A. Social responsibility B. Business ethics C. Consumerism D. The marketing concept E. Business morality

What are the benefits associated with free trade and globalization?

An open economy that spurs innovation

Which of the following statements about corporate culture is true?

Corporate culture evolves over time. Corporate culture is intangible. Corporate culture is based on the accumulated history of the organization. Corporate culture can have a strong impact on a company's success. All of the above statements about corporate culture are true - CORRECT ANSWER

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

Corporate philanthropy

________ is the situation that occurs when government spending replaces spending by the private sector.

Crowding Out

The Northwest Cherry Growers (headquartered in the state of Washington) sells much of its locally grown produce to Taiwan. _____ was the easiest and least expensive way for the growers' association to sell to global markets.

Exporting

_____ could be used to explain why members of the night shift at a textile mill refuse to fill openings on the day shift even though most of the people who work at the plant feel day work is preferable to night work.

Group cohesiveness

When Linda McAnem began Stirya, a New York-based computer services company, she ran it as a sole proprietorship. As the business grew, she realized that she did not want to be personally liable for the business's debts and wanted her business accounts to be separate from her personal accounts. Therefore, she should have:

incorporated Stirya

According to the Sports Business Journal, Levy Restaurants is the leading purveyor of premium food at major sports venues. Even before the sports event begins, George Scott, a director of the company, will have already walked more than a dozen laps. He will cover several miles in the course of a game, studying each food stand and cart for anything amiss--long lines, empty or messy condiment stations, not enough smiles from employees. Scott acts in a(n) _____ role.

informational

Which of the following statements about managerial skills is true?

Technical skills tend to be used most by managers at lower levels of an organization. Conceptual skills tend to be used most by top-level managers. Human relations skills, while used throughout the organization, are most needed by first-level managers. Managers use global management skills to operate in a culturally diverse environment. All of the above statements about managerial skills are true - Correct answer

When the Chili restaurant chain was in financial trouble, its CEO delegated the managers of each of the chain's restaurant to trim costs without sacrificing customer satisfaction. The CEO used _____ to make restaurant managers accountable for cost-cutting measures.

delegation of authority

Luca Villanova has a major decision to make about how to increase attendance for the professional soccer team he owns. He wants to call his players and coaches together, generate alternatives, and come up with a solution by mutual agreement and vote. His style of leadership is called:

democratic (participative)

At your neighborhood Burger King, some employees take and fill orders, others prepare food, a few clean and maintain equipment, and some supervise. This process of dividing work into separate jobs and assigning tasks to workers is called:

division of labor

_____ is the process of dividing the work and assigning tasks to workers.

division of labor

An S corporation:

does not make the owners of the corporation personally liable for its debts

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

economic

A total prohibition against importing certain products is called a(n):

embargo

Kayla Langton is considering the purchase of a Bonus Building Care franchise. Langton is likely to get assistance from the commercial cleaning franchisor in which of the following areas?

employee training accounting procedures permission to use company logo in advertising site selection all of these - correct answer

A retailer that allowed its employees to handle a customer complaint without having to ask for permission or direction from management would have:

empowered its employees to help customers

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

intrapreneur

Utilitarianism:

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

AT&T entered into a _____ with Compagnie General d'Electricite, a French company. The French company brings its patents on digital telephone switches, and AT&T provides the marketing know-how to the relationship.

joint venture

Stewed Tomatoes was an "all-girl power-pop trio." Its three members realized that many musicians feel stifled when making music in a sterile studio environment while the clock ticked away expensive hours, so the three girl band members created Materville Studios, a multimedia production house and recording studio in downtown Chicago. They share work responsibilities and profits equally. Materville Studios is a(n):

partnership

Once small businesses hire employees, they can _____ to increase job satisfaction and retain their employees.

provide comfortable working conditions offer flexible working hours provide employee benefit programs share profits with employees do all of the above - CORRECT ANSWER

Jules Sylvester had always loved reptiles. When he was asked by a movie producer if he could locate some anaconda snakes for a movie, a business was born. Sylvester is the proud owner and operator of Reptile Rentals. The California-based business, which he started with no financial help from anyone, is often called on to provide "creepy, crawly" moments in the movies. Jules Sylvester is an example of a:

sole proprietorship

Rosa Llewelyn works in the human resources department of a company that manufactures packaging machines. She handles payroll and insurance. Llewelyn is in a(n) _____ position.

staff

Manila Water, the provider of the water and sewerage services in the capital of the Philippines has purchased the government owned water and sewerage system for the entire country. It promises to make the nation's water and sewerage system run as efficiently and profitably as the one it operates in Manila. To achieve this goal, Manila Water's top management will first need to engage in _____ planning to determine what resources are needed to achieve this goal.

strategic

Kraft Foods Inc. joined with the National Latino Children's Institute to announce Salsa, Sabor y Salud - a first-of-its-kind healthy lifestyles educational program designed by Latinos for Latinos. The program was created by NLCI in partnership with Kraft to support Hispanic families, a population particularly at risk for obesity and accompanying health problems. Kraft donated $2 million to the program's startup. This donation is an example of:

strategic giving

For the past ten years, Lou Lopez has been a welder for Ford Motor Company. This morning her boss informed her a robot would replace her. Lopez's unemployment is an example of _____ unemployment.

structural