intro to business midterm

A general partner is responsible for any debts of the partnership, regardless of whether he or she was directly involved in the transaction that created the debt. a. True b. False

A

An analytical process breaks raw materials into different component parts. a. True b. False

A

An individual's moral values and central, value-related attitudes clearly influence one's business behavior. a. True b. False

A

An outline of the actions an organization intends to take to accomplish its goals and objectives is called its a. plan. b. mission. c. policy. d. control function. e. organization function.

A

Glenn bought a ladder at the local hardware store. He took it home and read the instructions then set it up by following the instructions and the diagrams on the ladder itself. The ladder had been tested by the manufacturer for quality and reliability. He used it several times over the next year, becoming more comfortable with using it each time. The last time he used it, he was painting the eves of his house and, while stretching to reach a corner, the brace on the ladder gave way causing him to fall to the ground and break his leg. Which of the basic consumer rights was violated by the ladder company? a. The right to safety b. The right to choose c. The right to be heard d. The right to be informed

A

Increased competition from firms in other nations is an example of the a. global environment. b. mixed environment. c. command environment. d. technological environment. e. laissez-faire environment

A

Prudential and several other large insurance companies have joined together to underwrite an extremely large insurance policy. This sort of association is referred to as a(n) a. syndicate. b. cooperative. c. vertical merger. d. alliance. e. conglomerate.

A

Purchasing products or materials in other nations and bringing them into one's own country is a. importing. b. exporting. c. balancing. d. dumping. e. trading.

A

Several European countries have banded together to reduce the trade barriers between them and encourage trading among themselves. This is known as a. the European Union. b. an orderly marketing agreement. c. a GATT. d. a multinational. e. a cartel.

A

The business plan should deceive neither investors nor loan officers and should convey accurate and realistic expectations of business potential. a. True b. False

A

Tommy Martin has been described as a visionary. He has the ability to think in abstract terms and see how all the pieces of his company fit together. Tommy has ____ skills. a. conceptual b. charisma c. interpersonal d. technical e. people

A

Two additional rights added in the last decade are the right to consumer education and the right to courteous service. a. True b. False

A

When all products undergo the same operations in the same sequence, a(n) ____ is used. a. product layout b. output layout c. process layout d. fixed layout e. product design

A

Which of the following is not a characteristic of an oligopoly? a. Any duplication of facilities is wasteful. b. The seller has considerable control over price. c. Sizable investments are required to enter the market. d. There are few sellers. e. The market actions of each seller can strongly affect other sellers.

A

An auto repair shop is an example of a fixed-position layout. a. True b. False

B

Because of the ability to sell stock, it is easy for sole proprietors to raise large sums of money. a. True b. False

B

Command economies include capitalism, socialism, and communism. a. True b. False

B

Corporate officers are elected by the stockholders. a. True b. False

B

The four basic questions in a capitalist economy are what to produce, how to produce, who should produce, and when to produce. a. True b. False

B

When a worker has to learn only a specific, highly specialized task, that individual should be able to learn to do it very efficiently. However, this efficiency could eventually become inhibited by job monotony and boredom. This situation could be alleviated through a. job design. b. technical job training. c. job rotation. d. assembly-line production. e. job specialization.

C

When many banks join together to lend money to developing countries such as Bangladesh and Malaysia, they seek to spread out the risk of default. This is called a. a not-for-profit organization. b. a quasi-government corporation. c. a syndicate. d. a cooperative. e. diversification.

C

Belle and Diamond are spending the day together. First, they have breakfast at McDonalds, then have a quick work-out at Curves followed by a massage at Massage Envy, and getting their nails done a Red Persimmon. They finish their day with getting their hair done at Fantastic Sams followed by ice cream at Ben & Jerry's. What do these businesses have in common? a. They all provide services rapidly and permit walk-ins. b. They do not require expertise to start as training is provided by the seller. c. They have few employees who are all experts in their particular field. d. They are franchises.

D

Employees at a chemical factory are systematically moved every two weeks among three different departments in the organization. This is called a. specialization. b. job trading. c. departmentalization by function. d. job rotation. e. job enlargement.

D

The type of utility on which production and operations management focuses is ____ utility. a. place b. need c. time d. form e. possession

D

What do franchisees typically have to pay to the franchisor? a. Monthly royalties based on sales b. One-time franchise fee c. Approximately half of the franchise's profits each month d. One-time franchise fee and monthly royalties based on sales e. Nominal fee for business knowledge

D

When economists study the national economy or global economy, they are using a(n) ____ approach. a. microeconomics b. monetary c. intuitive d. macroeconomics e. fiscal

D

When looking at the company's sales figures, Marisol sees that her salespeople have not achieved high sales in Japan. She is at what stage in the managerial decision-making process? a. Generating a problem b. Evaluating the problem c. Implementing the problem d. Identifying the problem e. Selecting a solution

D

You are the decision maker for purchasing office equipment in your organization. One sales representative privately offers you season tickets to the Texas Rangers if you help him out. This tactic is a. a common business practice. b. a corporate discount. c. personal selling. d. a bribe. e. ethical.

D

A locally owned and operated bakery with just one location is likely to have a. a highly departmentalized structure. b. an extensive advisory staff. c. no organization chart. d. a complex chain of command. e. a short chain of command.

E

Capital or capital goods as recognized by economists would include all of the following except a. computer equipment. b. money. c. machinery. d. facilities. e. crude oil.

E

Estella was given the responsibility for chairing a campus committee. To complete the delegation process, she should be given the ____ to carry out this responsibility. a. skills b. duty c. salary d. subordinates e. authority

E

Harrington Golf Co. states that it will double its employee staff and decrease its advertising budget by 25 percent in order to keep up with its high customer demand. This is part of its ____ plan. a. tactical b. long-term c. strategic d. contingency e. operational

E

Once a manager has identified a problem, he or she can generate alternatives to that problem. After this is done, the manager a. weighs the pros and cons of each alternative. b. implements the solution. c. implements each solution and determines which had the best results. d. evaluates the decision he or she made. e. determines the best alternative.

E

Thad is in charge of examining the quality of work in process at a furniture factory. Thad's duty is referred to as a. critical review. b. designing. c. inventory control. d. process control. e. inspection.

E

The process of evaluating and regulating ongoing activities to ensure that goals are achieved is known as a. motivating. b. organizing. c. leading. d. planning. e. controlling.

E

The separation of a manufacturing process into distinct tasks and the assignment of different tasks to different individuals is called a. entrepreneurship. b. factory manufacturing. c. free market. d. barter. e. specialization.

E

The simplest form of business owned and operated by one person is called a(n) a. partnership. b. syndicate. c. S-corporation. d. franchise. e. sole proprietorship.

E

To ensure that work flows according to schedules, operations managers use a procedure called a. inspection. b. cycle control. c. equilibrium control. d. monitoring and evaluation. e. follow-up.

E

Tina is a real estate broker who has been asked to sell a property by a client. The property is exactly what she has wanted for herself. She knows the seller is unaware of the value of the property and is relying on her to make the best decision. She knows if she markets it aggressively, she can get several thousand dollars more for the property than the seller is asking. Tina talks to her son and asks him to buy the property in his name, with her funds, and to transfer the property to her after the transaction is completed. She contacts her client and tells him she has a buyer ready who is offering to purchase the property for a thousand dollars over the listing price. The seller agrees to the sale unaware of the other issues involved. As it relates to the topic of this chapter, which of the following best describes Tina's actions? a. Tina has sacrificed a thousand dollars more than she needed to pay for the property. b. Tina has knowingly engaged in a conflict of interest. c. Tina helped her client enter a transaction in which everyone benefitted. d. Tina has no ethical issues because the seller received more money in the transaction than the listing price.

B

When the management of a large grocery store heard that Target might be coming to town, they developed alternative courses of action they could take if their competitive landscape changed. What type of plan did they develop? a. Objective b. Contingency c. Tactical d. Operational e. Strategic

B

Which of the following statements is true? The Export-Import Bank of the United States a. ​provides loans to U.S. importers. b. ​assists in financing the exports of American firms. c. ​is an example of a multilateral development bank. d. ​was created in 1960 by major U.S. banks.

B

For firms like Apple and Samsung, competition a. is a problem that has been eliminated in the twenty-first century. b. affects larger chain operations but not smaller businesses. c. is a rivalry among businesses for sales to potential customers. d. affects smaller businesses but not large chain operations. e. is not a factor that must be considered in a free-market economy.

C

Legal services and public affairs are ____ types of jobs, so they do not fit directly into the chain of command. a. top management b. specialized c. advisory d. authoritative e. voluntary

C

Quick and Fast Enterprises has very short deadlines and must have materials out in proper order, intact, billed properly, and routed to the specific individual to whom they are addressed. The CEO has monthly meetings with employees to discuss what can be done to make the business more efficient. At the conclusion of the meetings, the CEO analyzes the input by himself then brings in the heads of finance, materials, logistics, human resources, and operations to provide feedback to questions he has. He also asks them for insight into how the issues have arisen and the possible effects of implementing the changes he is considering. After meeting with the managers, he makes a decision and sends out a memo to all managers with instructions that the changes must be implemented and how he envisions implementation should take place, and the projected timeframe. When he has reached this point, he expects full and complete cooperation and exact compliance with the instructions. What type of leadership style is this CEO most likely using? a. Autocratic b. Entrepreneurial c. Participative d. Charismatic

C

The form of business organization that comprises about 18 percent of all businesses in the United States is the a. sole proprietorship. b. joint venture. c. corporation. d. partnership. e. syndicate.

C

What does the government encourage in order to protect the consumer's right to choose? a. Monopolies b. Trust laws c. Competition d. Divestitures e. Cooperation

C

What led most directly to increased government involvement with regulating business and its dealings with society? a. President Kennedy's consumer bill of rights b. The end of World War I c. The Great Depression d. The Industrial Revolution e. The collapse of the oil industry

C

What must a monopoly, such as a public utility, account for when setting its prices? a. A monopoly must look at the importance of each client, and then determine what respective rate each will be charged. b. A monopoly must take into account what its top competitors are charging for the same product or service. c. A monopoly must consider customer demand, and then set prices at the most profitable level. d. A monopoly, because it has no competitors, can set prices as high as it likes. e. A monopoly has no say in what prices it will charge because the consumers set the prices for all products and services.

C

When DVD players were first introduced, the price was very high, thereby preventing the average consumer from purchasing one. Today, however, as a result of increased competition in the market, most consumers can afford one because they are significantly cheaper. By reducing the price of these products and ensuring a large number of product offerings, competition has promoted consumers' right to a. be informed. b. inexpensive products. c. choose. d. be heard. e. quality products.

C

With respect to combined business skills and knowledge, which of the following partnerships is best? a. Cory and Dany own a vacuum cleaner store. Cory knows everything possible about store operations. Dany is wealthy and can provide investment capital. b. Mary, Janet, and Liz own a bakery. They are able bakers by trade. Each wants to spend all of his time baking items. c. Jack and Reena own a video store. Reena is most experienced as a homemaker and mother. Jack has worked as an auto mechanic for ten years. d. Courtney and Bob, both young pharmacists, own a pharmacy. Neither has taken a business course, but they are willing to learn. e. Leslie, Andrea, and Jamie own a boutique. Leslie has marketing expertise. Andrea has ten years' experience operating a successful small store, including hiring employees, handling inventory control, buying, and managing credit. Jamie is a CPA. Each has agreed to use his or her experience and expertise for the success of the business.

E