Midterm

An important point to be made in the discussion of corporate ethics is:

the appearance of wrongdoers can be harmful

Suppose that eight bakeries each tried to sell their products directly to seven supermarkets. The total number of exchange relationships that would be established is:

56

Which of the following is the best example of a product line?

Kellogg offers special K, raisin bran, Corn Flakes, and a variety of other cold ready-to-eat cereals

Many economists and business experts predict that ________ will potentially be the growth market of the future. Correct!

Asia

Ntercon is an internet-based company that provides online support services for businesses that need help in setting up and maintaining their websites. Ntercon is an example of a company that is engaged in:

B2B e-commerce

John complained to his buddy, Frank, that the prices of all the goods he and his family buy have increased a lot over the past year. Frank disagreed, saying that the prices of some goods have gone up a bit, but other prices have declined. Frank feels that the average price of consumer goods hasn't changed very much. In order to resolve their disagreement, John and Frank should look at recent figures for the:

CPI

Which of the following statements about packaging is the most accurate?

Changes in packaging can actually change the product itself and open up large new markets

__________ is the buying and selling of products and services by businesses and consumers over the internet

E-commerce

Which of the following people wound tend to favor a socialist economy:

Fred prefers to live in a country that promotes social equaity

Andre owns a business that exports goods to France. He has traveled to France on numerous occasions and has developed a taste for fine French wines. Andre has just heard a report on the radio that indicates that the dollar has fallen dramatically relative to the French franc. Andre can expect that:

French wines will become more expensive in the United States

The stages of the product life cycle include:

Introduction, growth, maturity, and decline

Which of the following would be the best example of a broker?

Jill Moon helps buyers and sellers of used heavy construction equipment negotiate the terms and conditions of their transactions, but does not actually take title to any of the equipment, nor does she develop long-term relationships with the buyers or sellers.

Which of the following statements about nonprice competition is most accurate?

Marketers often rely on nonprice differences in their competitive strategy to enhance relatively homogeneous product

Which of the following techniques would a team of workers be most likely to use if they wanted to evaluate several possible solutions to a specific problem their company needs to solve?

PMI

A firm's marketing mix consists of 4 major components, which are sometimes called the four:

Ps

Which of the following is the best example of cognitive dissonance:

Rico just bought an expensive stereo system and is already worried that he could have found a better deal if he had shopped more carefully

_________ analysis is used to help companies evaluate their economic environments, assess their strengths and weaknesses, and identify competitive threats and market opportunities.

SWOT

Which of the following positions in a firm would be classified as a staff position?

a lawyer employed in the legal department of a manufacturing corporation

Which of the following is a challenge that is facing the human resources managers of today?

a shift in employee attitudes toward work

Several outside groups monitor the Metro Chemical Corporation to see how well the firm enforces their ethical and social responsibility policies. Who of the following would not be likely to be among the "watchdog" groups?

an anti-government radical with intentions of overthrowing the establishing

Which of the following represents an example of demographic segmentation?

an automobile manufacturer offers different types of cars designed to appeal to different age groups and income levels

With respect to business ethics, it can be said that "it takes two to tango." This indicates that:

an individual's behavior is influenced by the behavior of others

In an effort to help employees resist the pressure to make an unethical decision, the Johnston Petroleum Company has communicated their code of ethics statement to outsiders. Suppliers, subcontractors, distributors, and customers have been told of the firm's core values. This approach is consistent with:

an integrity-based ethics code

The Federal Reserve System operates:

as a semi-private organization not under the direct control of the government

__________ is the characteristic of work concerned with the degree of freedom, independence and discretion an employee has in scheduling work and determining procedures.

autonomy

An evaluation of franchising would conclude that this type of arrangement:

appeals to people who want to own a business, but are not comfortable starting a company from scratch

Economies of scale:

are achieved when a firm reduces its average cost of goods as it produces more

A key characteristic of entrepreneurs is that they:

are willing to except the risks involved in starting and managing a business

Which financial statement represents what the company owns and owes as of a specific date?

balance cheet

The Federal Reserve fulfills its role as a "lender of last resort" when it loans funds to:

banks during banking emergencies

Which of the following statements about service utility is most accurate? Service utility is:

becoming crucial to tradition retailers as they try to prevent their customers from defecting to firms using direct marketing

The process of rating an organization's practices, processes, and products against the best of the world known as:

benchmarking

The number of units that must be sold for the total revenue to equal the total cost is called the:

break-even point

One reason limited liability companies have become so popular is that they:

can be taxed either as a corporation or as a partnership, so owners can choose the tax treatment that is most advantageous for their situatoin

Elizabeth owns a printing business in her home town. The printers, computers, and copying machines represent examples of:

capital

In a(n) __________ organization, decision-making authority is maintained at the top level of management

centralized

The most important impact of the Hawthorne studies was that it:

changed the direction of research away from Taylor's scientific management toward the study of human-based management

Under a system of floating exchange rates, changes in the value of the U.S. dollar relative to other currencies usually result from:

changes in the supply of and/or demand for dollars in the market for the U.S. currency.

A(n) ____________ consists of the marketing intermediaries that transport and store goods as they move through their path from producer to final user.

channel of distribution

An ethical dilemma describes a situation where you must:

choose between equally unsatisfactory alternatives

___________ is the stage of new product development that involves promoting the product to distributors and developing advertising and sales campaigns to generate and maintain consumer interest in the product.

commercialization

Which theory states that a nation should produce and sell goods to other countries that it produces most efficiently, and buy goods produced more efficiently by other countries?

comparative advantage

A(n)_____-based ethics code emphasizes the prevention of unlawful behavior by penalizing wrongdoers

compliance

Companies that make use of a pull strategy target their promotional efforts towards:

consumers

Ed Flavorman, the chief executive of Flavor Best Ice Cream, believes that alternative plans are almost as important as the primary operational plans because the market is so competitive and unpredictable. Ed endorses:

contingency planning

Ho Han has just spent two hours going over quality reports to determine whether his department is meeting quality standards he set for the current month. Ho's efforts are part of the ___________ function of management

controlling

A___________ is an organization that is owned and controlled by the people who use it--producers, consumers, and workers with similar needs who pool their resources for mutual gain

cooperative

Kumquat Computers is a major computer manufacturer that also owns all of the organizations in the channel of distribution for its computers, including a chain of Kumquat Direct retail stores. Kumquat is using a:

corporate distribution system

A separation between ownership and management is most likely to occur in a:

corporation

Groups of employees form a different departments who work together on a long-term basis are members of:

cross-functional teams

Which of the following is included in the M-1 definition of the money supply?

currency

The preparation of financial statements for people outside the firm (creditors, unions, suppliers, and others) is the goal of:

financial accounting

Which of the following is considered a step in the marketing research process?

defining the question and determining the present situation

The technical name for a checking account is a:

demand deposit

Jill is looking into the possibility of opening up a day care center in her community, because she is aware of many two-income families that need a place for their children to stay while the parents work. However, she is concerned about the long-term prospects for such a business. Jill believes the future of her center will depend on whether birth rates and the number of two-income families remain high. These concerns illustrate how businesses can be affected by:

demographic trends

Which of the following would be considered part of a firm's marketing mix?

determining the best pricing strategy for a product

For many years, Congressman Reggie Lader has called for more government regulation of business. "After all," the Congressman said recently, "businesspeople are out to make a profit, not to create jobs or serve their customers. The government must pass more laws to require businesses to take the interests of consumers and workers into account." From these comments, it is clear that Congressman Lader:

does not accept the philosophy behind Adam Smith's invisible hand

The president of the American Auto Parts Corporation recently testified before members of Congress, urging them to limit the flow of imported automobile parts into the United States. She contended that these imports were priced lower than the foreign producers were charging in their own countries. She believes these foreign producers are guilty of:

dumping

Taxes and government regulations are part of the __________ environment of business

economic and legal

___________ introduces new employees to the organization, their fellow workers, their supervisors, and to the policies, practices, and objectives of the firm.

employee orientation

As a salesperson for Bi-State Direct, Jack enjoys the freedom and flexibility he has to better meet the needs of his customers. Jack's experience suggests that Bi-State practices:

empowerment

Job ___________combines a series of tasks into one assignment that is more challenging, interesting, and motivating.

enlargement

When the supply curve and demand curve for a particular good are on a single graph, the point at which the two curves intersect identifies the:

equilibrium price of the good

Ted is typical of many U.S. businesspersons. Ted feels the U.S. culture should be the model for the rest of the world, and that the "American way" of doing things is almost always the best. Ted is guilty of:

ethnocentricity

Job rotation helps lower level managers prepare for higher for higher-level positions by:

exposing them to different functions within the organization, thus giving them the broad perspective needed by top managers

Help wanted ads, public and private employment agencies, and college placement bureaus are all ________ sources that human resource managers can use in the recruiting efforts.

external

Maureen's supervisor was so impressed by her work that he named her the employee of the month. This praise from her supervisor is an example of a(n) _________ reward.

extrinsic

All employees are motivated by the same things so it is easy for managers to motivate employees.

false

Today's workers tend to be very loyal, as evidenced by declining turnover rates in most industries.

false

Senator Bud Jette is alarmed at the state of the economy. Unemployment is high and GDP is low. Senator Jette has called for Congress to take decisive action to increase its expenditures and cut taxes in order to stimulate the economy. The actions called for by Senator Jette are examples of the government's use of:

fiscal policy

The last stage of the selling process is

follow up

When foreign firms build production facilities in the United States, they are engaging in:

foreign direct investment

Midas Muffler sells franchises to prospective businesspersons who want to use the midas name and offer midas products. In a franchise arrangement, midas would be the ____________, and the buyer of the franchise is the ____________.

franchisor; franchisee

At Livwell Pharmaceuticals, research personnel are told that the company would like to develop at least three new products each year and are given some general information about which types of drugs seem to have the most potential. After that, scientists and other research personnel work essentially on their own to develop the new drugs. Managers at Livwell seem to prefer:

free-rein leadership

Which type of wholesale organization would be most useful to a small manufacturer which has shipments that are too small to fill a truck or railcar?

freight forwarders

Sick-leave pay, vacation pay, pension plans, and health plans that provide additional compensation to employees are called:

fringe benefits

The total value of final goods and services produced within a nation's borders in a given year is known as that nation's:

gross domestic product

During a period of rising prices, FIFO (first in, first out) inventory valuation method will result in ________ net income figures than would LIFO (last in, first out).

higher

Juan banks at a commercial bank that is a member of the FDIC. This means that:

his money is insured by an independent agency of the federal government

Trans Globe Airlines has recently looked into a merger with Royal Blue Airlines, a financially troubled rival. The firms believe the merger will create a stronger company that can offer travelers more flights to a wider variety of destinations. This proposed merger is an example of a:

horizontal merger

Which of the following would be a topic emphasized in a microeconomics class?

how market conditions determine the prices of a specific product

Herzberg's research identified several ___________ factors that did not necessarily motivate employees if they were increased, but could cause employees to become dissatisfied if they were missing or inadequate.

hygeine

The U.S. government has announced a 5 million-pound annual limit on beef imported from the country of Argentina. This type of trade restriction is called a(n):

import quota

More efficient distribution systems around the world have led to: Correct!

increased world trade

TV programs devoted exclusively to promoting goods and services are called:

infomercials

The _____________ consists of the relationships that develop spontaneously as employees meet and form power centers.

informal organization

The goal of __________ is to combine all the promotional tools used by a firm into one comprehensive and unified promotional strategy.

integrated marketing communication

Producers of snack foods (such as candy bars) are most likely to use a(n) _____________ distribution strategy for their products.

intensive

The personal satisfaction people feel when they have done a job well is a(n) __________ reward.

intrinsic

When it comes to social responsibility, some people feel that before you do good, you must do well. This reflects a firm's responsibility to their:

investors

Which of the following reflects the desire of a manager to achieve a "win-win" relationship in dealing with others?

is it balanced?

Today's progressive managers:

tend to emphasize teamwork and cooperation rather than discipline and order-giving

___________ attempts to increase task efficiency by breaking down jobs into simple steps and assigning people to each of those steps.

job simplification

After years of selling in the consumer market, Dave accepted a job as a salesperson for a firm that markets its products in the B2B market. As he considers his new responsibilities, it's likely that he will:

learn that industrial buyers generally require more personal service than buyers in the consumer market

April works in the accounting department at Henson's Tire & Auto. She is concerned that the company has been placing too many orders for office supplies and wants to look at all of the transactions involving the purchase of office supplies for the past several months. April could find such information by looking at the supplies account in the:

ledger

Today, the World Bank makes most of its loans to:

less-developed nations to improve productivity

You are the loan officer of the ABC Bank. A local firm has approached you requesting a sizable loan. What group of financial ratios would indicate the degree to which this company already is financed by borrowed funds?

leverage ratios

The fundamental accounting equation states that assets equal __________.

liabilities plus owner's equity

Pepsi Cola has entered into a long-term contract with a South African beverage business. The contract calls for the South African firm to produce and market Pepsi Cola in South Africa. Pepsi will receive a royalty on each case of soda sold. This is an example of:

licensing

_________ involves planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit.

logistics

Jamie and Maria invested all their savings in a small pizzeria they opened outside the University of Western Kentucky. They operated the business as a general partnership. After 11 months the business went broke and Jamie and Maria were left with outstanding bills of $37,500, which is more than their investment in the company. Jamie and Maria can:

lose their personal assets as the result of their company's financial problem

One likely result of legislation that allows banks, insurance companies, and securities brokers to combine and compete with one another is:

lower prices for financial services

The brand names that are used by producers that distribute nationally are called:

manufacturer's brand names

Mo was just hired by a firm that has a very bureaucratic organization. Mo is likely to encounter which of the following conditions in his firm?

many rules and regulations that employees are exected to follow

General and divisional managers, plant managers, and deans and department heads at colleges all are positions that usually are classified as:

middle management

When the actions of management appear indifferent or insensitive to ethical concerns, the likely results would include:

mistrust between workers and management

When the Fed buys U.S. government securities, the:

money supply increases

In most large cities there are a large number of bakeries. These bakeries produce similar, but not identical, products. Some bakeries claim to have the best cheesecakes in town, while others brag about their cookies or specialty breads. The bakery market in a large city is an example of:

monopolistic competition

In _____________, salespeople are independent contractors who not only sell the product, but also recruit additional salespeople.

multilevel marketing

As the head of the marketing department, Jody works with her subordinates on complex and challenging projects. The level of detail in this work requires Jody to spend a significant amount of time with her subordinates providing advice and support. Within the marketing department, Jody probably has a(n) ________ span of control.

narrow

All-Star Collectibles focuses its marketing efforts on high-income buyers of unique collectible items. The firm realizes that the number of buyers in this segment of the collectible market is small. However, they are confident that this approach will be profitable since these buyers will pay premium prices for their unique products and superior customer service. All-Star's approach is an example of:

niche marketing

Mara plans to open a shop specializing in foods and cultural items from the Middle East. She wants to be the firm's only general partner, but she is trying to get several friends to participate as limited partners. Apparently Mara wants to:

obtain a strong financial base for the firm while maintaining personal control over the firm's management

Excite Enterprises has decided to let another company that specializes in accounting services handle all of its financial records and prepare its tax forms. This is an example of:

outsourcing

Taylor Casual, a chain of retail clothing stores, wants to assure investors and other outsiders that its financial statements are accurate. One way to do so would be to hire a public accounting firm to:

perform an independednt sudit

When managers identify a market trend that suggests a new opportunity and then dives a strategy to go after this new opportunity, they are involved in the function of:

planning

Horst works as an accountant for a mid-sized retail store. He has just completed a trial balance that turned up no unexpected problems. Horst's next major task is likely to be:

preparing the store's balance sheet and other major financial statements

A skimming pricing strategy is designed to:

price the product in high order to earn the highest possible profit while there is little competition

Title VII of the Civil Rights Act of 1964:

prohibits discrimination based on race, religion, sex, creed, or national origin in matters such as hiring, firing, training, and compensation.

Kylie is a new salesperson for a company that publishes college textbooks. She is currently developing a list of professors at colleges in her sales district that teach courses that might make use of one or more of the books her company publishes. She then plans to determine which of these professors are involved in the textbook selection process so that she can visit them in the near future. The task Kylie is performing is known as:

prospecting and qualifying

The reports and financial statements prepared by accountants:

provide information that can be used by decision-makers both inside and outside the organization

Nature's Sun, a company that designs and manufactures clothing for active people, focuses their marketing efforts on people who participate in strenuous outdoor activities such as running and mountain climbing. For example, the firm advertises heavily in magazines for runners. Nature's Sun is using _________ factors to segment its market.

psychographic

Lenny has just finished writing a news release about a new product that his firm has developed. He intends to send it to all of the local radio stations as well as the newspapers in several nearby towns and cities, in hopes that some of them will find the information newsworthy and run a story about the product. Lenny's efforts indicate that he is involved in:

public relations

The management function that evaluates public attitudes and executes a program of action to earn public understanding and acceptance is called

public relations

A command system is characterized by:

reliance on the government to determine what is produced and who gets the output

The Fed requires banks to hold funds against the deposits its customers have in their checking and savings accounts. The amount of funds the bank must hold is specified as a percentage of deposits known as the:

reserve requirement

Mo's Hardware, a U.S. retailer, buys much of its inventory from Asian countries. Mo's Hardware would benefit if the value of the dollar ________ relative to the currencies of the countries from which Mo's imports.

rose

Jackie had been very pleased with her part-time job at a local convenience store until a recent incident occurred. During Jackie's shift, the store was burglarized. Although no one was hurt, Jackie now feels uneasy and fearful during her late night shift. She is so nervous and worried that she is having a hard time concentrating on her work and is thinking about quitting. Management needs to be aware of Jackie's unmet _______ needs.

safety

Maslow called the needs people have for security at work and at home

safety needs

Workers who are paid a _________ receive a fixed compensation weekly, biweekly, or monthly.

salary

The promotional technique of __________ can take place both internally (within the company) and externally (outside the company).

sales promotion

In recent years, almost all new job creation in the United States has occurred in the ________________ sector: Correct!

service

__________ are products that the consumer buys only after comparing quality and price from a variety of sellers.

shopping goods

The______ is usually the easiest form of business to start and and

sole proprietorship

A __________ sells a wide selection of goods in one category.

specialty store

Collectively, the customers, employees, stockholders, suppliers, creditors, and the local communities in which a business operates are known as the firm's:

stakeholders

One of the major financial statements prepared in the fifth step of the accounting cycle is the:

statement of cash flows

Consumer decisions regarding the products they buy are often influenced by their nationality, religion, or ethnic origin. Marketers realize that the consumer decision-making process is impacted by the consumers':

subcultures

Within its production department, Marlin Manufacturing has shift leaders, supervisors, assistant plant managers, plant managers, product group managers, assistant division managers, division managers, an assistant vice president for production, and a vice president in charge of production. Marlin Manufacturing is an example of a(n) ____________ organization.

tall

Cool People Publications focuses their marketing efforts on reaching African-American teenage girls. The firm believes that they are positioned to profitably serve this group of consumers. Cool People utilizes the strategy of:

target marketing

Which of the following activities is part of the organizing function of a manager?

teaching a new employee how to use a piece of office equipment

When a customer purchases an item with a debit card:

the funds are automatically transferred from the customer's account to the store's account

Which of the following statements about effective leadership is the most accurate?

the most effective leadership style depends on who is being led and in what situation

Many countries use ________________ to protect their domestic industries against dumping and unfair foreign competition.

trade protection

Which of the following statements describes the relationship between employee training and employee development

training is short-term skills oriented while development is long-term career oriented

During an interview, a manager should be careful not to ask the applicant about his or her family.

true

June Daye lives in the southern part of Alabama where winters are normally fairly mild. Last January, during an unusually cold spell, the water pipes in her house froze and burst. She had to look in the Yellow Pages to find a plumber who was able to come out and repair the pipes the same day. Prior to the frozen pipes, the plumber's services represent an example of a(n):

unsought service

In a leveraged buyout, the managers of a firm, its employees, or other investors attempt to:

use borrowed funds to buy out the firms stockholders

__________ is the term now used to describe such tactics as paying people to say good things about a product on the Internet or setting up multilevel selling schemes that reward people for directing their friends to a company's website.

viral marketing

Ethical behavior covers a ________ range of conduct than does legal behavior.

wider

Professor Beenthere shared with his students the wonderful experience he had at a local Asian restaurant. He described the location in relation to campus and encouraged his students to give it a try. The professor's comments represent:

word-of-mouth promotion