16' BUSINESS MANAGEMENT+ ADMINISTRATION CAREER CLUSTER

The local government fined Lenny's Grille because there were 75 more patrons in the facility at one time than legally permitted. In this situation, the business violated a A. maximum capacity code. B. federal property law. C. traffic ordinance. D. construction permit.

. A Maximum capacity code. Maximum capacity codes exist to protect a business's employees and customers from harm if an emergency (e.g., fire) occurs on the premises. If there are too many people in a facility that has only two exits, it becomes more difficult to get everyone out of the facility safely in emergencies. The maximum capacity for a business depends on the physical size and layout of the building, the number of exits in the building, and the jurisdiction's requirements. The business did not violate a federal property law, traffic ordinance, or construction permit.

Many computer software programs help businesses determine their levels of business risk, which is helpful when they develop A. content theories. B. contingency plans. C. endorsement records. D. monetary regulations

. B Contingency plans. A contingency plan is an alternative course of action. A contingency plan states specific guidelines that a business uses when responding to undesirable circumstances. Businesses often use computer software programs to obtain numerical data about their levels of risk in different areas of the business. They use this information to make business decisions and to help them develop alternative action plans when circumstances occur that increase or decrease risk at a given time. Content theories are theories of motivation that focus on internal needs, drives, and incentives that cause people to behave in a certain manner. An endorsement is approval by a reputable external source. Governments develop monetary and fiscal regulations. Risk management software programs do not help businesses develop content theories, endorsement records, or fiscal policies.

In relation to unexpected events, which of the following is a true statement about project planning: A. Plans should be made right before the project starts. B. Plans should change if necessary. C. Plans should always stay the same. D. Plans should be monitored.

. B Plans should change if necessary. Because events sometimes surprise us, we should change our plans when necessary. Plans aren't set in stone. They should not always stay the same. Projects are monitored, not plans. And, planning early is much more helpful than planning right before the project starts.

Online shipment tracking is one example of __________ affecting supply chain management. A. technology B. globalization C. an economic downturn D. production changes

A Technology. Online shipment tracking is one example of technology affecting supply chain management. This is not an example of globalization, an economic downturn, or production changes affecting supply chain management.

A country that can produce a good or service at a lower cost than another country has A. comparative advantage. B. domestic needs. C. absolute advantage. D. international interdependence.

. C Absolute advantage. Countries should trade those products in which they have an absolute advantage. Domestic needs are the needs of the citizens within a particular country. International interdependence is the reliance of one country on another for various economic goods and services. Comparative advantage refers to the benefit a country obtains from specializing in and producing goods and services at which it is relatively most efficient.

A company's cash flow is $1,680,500, its current stock price is $45.50, and there are 570,000 shares outstanding. What is the company's price-to-cash-flow ratio? A. 43.21 B. 29.48 C. 36.93 D. 15.42

. D 15.42. Investors use the price-to-cash-flow ratio to determine the relative worth of a potential investment. A low price-to-cash-flow ratio is often an indication that the market has undervalued a particular stock, while a high price-to-cash-flow ratio can be a sign that the stock has been overvalued. The formula used to determine a company's price-to-cash-flow-ratio is Price-to-Cash-Flow Ratio = Current Stock Price / Cash Flow per Share. First, to determine the cash flow per share, divide the company's cash flow by the number of shares outstanding ($1,680,500 / 570,000 = $2.95). So, the cash flow per share is $2.95. Next, divide the current stock price by the cash flow per share to determine the company's price-to-cashflow ratio ($45.50 / $2.95 = 15.42).

In which of the following situations might it be difficult to give effective verbal directions: A. Employees are focused. B. Time is important. C. Managers are organized. D. Information is complex.

. D Information is complex. In some situations, it is difficult to give effective verbal directions. One situation is when the information is complex. Managers sometimes make the mistake of believing that all directions can be given verbally. However, if the information is complex and requires an extensive explanation, it may be better to provide verbal directions as well as written instructions or diagrams. If the complex information is difficult to understand, employees will be better able to follow the directions if they are presented in several ways. It is not difficult to give effective verbal directions if time is important, managers are organized, or employees are focused.

Which of the following information should be included in the inside address section of a business letter: A. Message B. Subject C. Date D. Title

. D Title. The inside address section of a business letter should include the addressee's title, which might be both a courtesy title and a job title, if known. A courtesy title such as Mr. or Ms. should always be used, along with a job title such as manager or president whenever possible. A correct inside address with title is as follows: Mr. John Doe, President. The subject, date, and message are not part of the inside address section of a business letter.

Which of the following situations would supply chain managers encounter during the final stage of supply chain management: A. A customer returns a defective product. B. The company finds reliable suppliers. C. The business plans to deliver goods to customers. D. Managers develop a supply chain strategy.

A A customer returns a defective product. In the final stage of supply chain management, customers may return defective products. Finding reliable suppliers, planning to deliver goods to customers, and developing a supply chain strategy would all occur during earlier stages of supply chain management.

Which of the following is a guideline that an employee should follow when responding to criticism: A. Admit the mistake. B. Look embarrassed. C. Become defensive. D. Ignore the criticism

A Admit the mistake. This is the first step to self-improvement. An employee who becomes defensive, embarrassed, or ignores criticism will probably show little improvement on the job.

Which of the following items would a clothing manufacturer classify as raw materials inventory: A. Buttons, cloth, and thread B. Zippers, sewing machines, and cloth C. Thread, zippers, and sewing machines D. Cloth, zippers, and shirts

A Buttons, cloth, and thread. Raw-materials inventory are goods (inputs) that are used to make a finished good (output). Buttons, cloth, thread, and zippers are examples of goods used to make clothing (finished goods), such as shirts. Sewing machines are equipment used to combine the inputs to create the outputs or finished goods.

Which of the following is a user-owned, nonprofit, cooperative financial institution: A. Credit union B. Commercial bank C. Insurance company D. Savings and loan association

A Credit union. A credit union is a nonprofit financial cooperative set up to provide savings and credit services to its members, who are also the owners of the credit union. Although many credit unions are tied to a particular business or labor union, some are not affiliated with any certain entity or organization. Commercial banks, insurance companies, and savings and loan associations are not user-owned, and they typically are for-profit financial institutions. A commercial bank is a full-service bank offering a variety of banking services including checking and savings accounts, secured and unsecured loans, installment credit, and bank credit cards. While an insurance company may offer some banking services, it is likely to focus on the sale of insurance policies to individuals and businesses. A savings and loan association is a financial institution that offers savings accounts and makes loans to borrowers, most of which are for real estate purchases.

Businesses' profits are at a 30-year low, but consumer savings are at an all-time high. For more than a year, unemployment has also been at record levels. What is the state of the economy? A. Depression B. Expansion C. Recession D. Recovery

A Depression. In an economic depression, consumers often choose to save their incomes due to uncertainty about the future. Many of them also lose their jobs, so there is more incentive to save than to spend. In a period of economic expansion, consumers spend more and save less because they are optimistic about the future. During times of economic recession, consumers are inclined to save more and spend less; however, it is for a shorter time period than an economic depression. In an economic recovery, consumers begin to spend again because there is optimism about the future of the economy.

What do business employees often do to motivate customers to make the decision to buy? A. Explain the advantages B. Listen to questions C. Dismiss any objections D. Offer many substitutes

A Explain the advantages. Business employees often need to help customers make the decision to buy. One way to motivate customers is to explain the advantages of purchasing the product. If customers clearly understand the benefits and advantages, they are often motivated to buy. It is important to listen to questions, but answering those questions by explaining the advantages of buying the product will motivate customers to make a decision. Employees should answer any objections in order to point out the advantages. Offering many substitutes might confuse customers and prevent them from making the decision to buy.

Before you analyze the available information to solve a problem, it is important to A. identify and check your assumptions. B. brainstorm possible solutions. C. determine the best solution from several alternatives. D. ask for input from your peers.

A Identify and check your assumptions. An assumption is a thought or idea that you presume (take for granted) is true. In some situations, a person makes incorrect assumptions. For example, a supervisor may assume that an employee has completed a task by deadline. The supervisor makes this assumption because the employee has completed tasks by the given deadlines in the past. The supervisor's assumption is based on his/her experience. However, the employee experienced a computer problem, which prevented her/him from completing the task by deadline. So, in this particular situation, the supervisor's assumption was incorrect. Therefore, when you are solving problems, it is important to make sure that you have all of the correct information available and that you look at situations and issues objectively. After collecting all of the necessary information and checking assumptions, you can brainstorm solutions and determine the best solution to implement. The nature of the problem depends on whether or not you need to ask for input from your peers.

Which of the following is one type of information needed to compute the gross profit of a business: A. Income from sales B. Net profit C. Market share D. Operating expenses

A Income from sales. Income is the first factor that businesses consider when calculating profit. The gross profit of a business is computed by subtracting cost of goods sold from income from sales. The net profit is calculated by subtracting operating expenses from the gross profit. Market share is an organization's portion of the total industry sales in a specific market.

Customer complaints and returns can increase the business's costs by A. increasing interest payments. B. increasing list prices. C. decreasing trade discounts. D. decreasing functional discounts.

A Increasing interest payments. Businesses often borrow money in order to buy goods for resale. The longer the period of time money is borrowed, the higher the amount of interest charged on the loan will be. List prices are prices established by a seller of goods, services, or resources, and they are not affected by customer complaints. Customer complaints would also not affect trade, or functional, discounts—deductions from the list price of goods for performing certain marketing activities.

Which of the following statements is true about strategic planning: A. It involves planning for the next three to five years. B. It involves short-term planning for the next six months. C. It is a supervisory technique for improving employee performance. D. It is used primarily by departments that do not meet company goals.

A It involves planning for the next three to five years. Strategic planning is long-range planning for the company as a whole and is a responsibility of top-level management. Short-term planning is done by lower level managers. Strategic planning is not a supervisory technique nor is it limited to departments that are not performing well.

People need to learn how to adjust to change because A. it is the only constant in life. B. we should help others to change. C. we benefit from making changes. D. it helps us to influence others.

A It is the only constant in life. In the modern world, people are constantly faced with change. The only thing that doesn't change is that changes will keep happening. People, therefore, need to learn to adjust to change because they will have to deal with it all their lives. Learning to adjust to change is not for the purpose of influencing other people or trying to help them to change. People benefit from some changes and are harmed by others.

Using a credit card is A. like getting a free loan if you pay the balance each month. B. a good way to pay for impulsive purchases. C. an inexpensive way to borrow money for an extended period. D. a privilege reserved for working adults.

A Like getting a free loan if you pay the balance each month. When you pay the balance on a credit card each month, you are getting what amounts to a free loan. A credit card is not a good way to pay for impulsive purchases—impulsive purchases are usually a bad idea no matter how you pay for them. Credit cards are not an inexpensive way to borrow money for an extended period. Nowadays, easy access to credit cards is a growing problem.

One way in which you can show empathy is by A. listening carefully. B. offering critical advice. C. limiting contacts. D. asking few questions.

A Listening carefully. Listening to others without interrupting is a sign of respect. It shows that you are interested in what they have to say. It also shows you are trying to understand them, and that is an aspect of empathy. Asking few questions would indicate a lack of interest in others. Being critical is negative and directly opposed to empathy. Limiting your contacts with others is avoidance behavior that provides little opportunity for empathy.

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 B. Troubleshooting C. Justification 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.

What management function is responsible for coordinating resources in ways that maximize efficiency? A. Organizing B. Staffing C. Directing D. Controlling

A 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.

Jack is a computer programmer who is struggling to fix a glitch with his company's new computer network. During a get-together with some friends who also work in technology, Jack brings up his dilemma. His friend Janelle suggests a process that helped her solve a similar problem that she experienced a few weeks ago. Two other friends, Tim and Susan, provide some suggestions as well. In this situation, Jack and his friends are transferring knowledge by A. participating in a community of practice. B. applying Groupthink strategies. C. forming a strategic alliance. D. conducting a formal interview.

A Participating in a community of practice. A community of practice is an informal group that is formed by people who have common interests. In communities of practice, group members share ideas, discuss problems, and brainstorm solutions. By doing so, the group members are transferring their knowledge among themselves. One or all members can capture and record the collected knowledge for future personal or group use. In the example, Jack and his friends share a common bond because all of them work in technology. When the group met, Jack's friends offered suggestions for resolving his work dilemma; therefore, the group is a community of practice. Groupthink is a situation that occurs when conforming to the group becomes more important than expressing individual judgment and ideas. A strategic alliance is an arrangement that involves two or more businesses entering into a relationship by combining complementary resources such as technology, skills, capital, or distribution channels for the benefit of all parties; the relationship is usually short-term or for a single project/transaction. The situation is not an example of a formal interview.

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

A 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.

Which of the following is a limit to economic freedom in a private enterprise system: A. Personal choices B. Private property C. Profit motive D. Pricing systems

A Personal choices. Even though there are many economic freedoms in a private enterprise system, there also are certain limits. We are limited by our own choices. If we choose to buy one thing, we may not have enough money to buy another. We may need to choose which item is more important to us. Private property, profit motive, and pricing systems are characteristics of a private enterprise system rather than limits to economic freedom.

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. Preventative B. Corrective C. Reactive D. Remedial

A 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.

Luke is a purchasing department employee who must complete his inventory report by 4:00 p.m. on Tuesday. He must also collect bids and place orders for staple items by Wednesday at noon. Because Luke knows that it will take a while to obtain the bids, he decides to start contacting vendors before he begins working on his inventory report. Luke is __________ his workload. A. prioritizing B. delegating C. communicating D. simplifying

A Prioritizing. Prioritizing involves ranking things in the order of their relative importance. When employees prioritize their work, they evaluate several factors, including due dates and the time it will take to complete a task. In Luke's situation, he determined that he needed to start acquiring bids before working on the inventory report, even though the report was due before the bids. Because Luke realized that he had to allow vendors time to provide the bids, he needed to give them the order specifications promptly. Delegating is assigning authority or responsibility to others. Luke is not delegating, simplifying, or communicating information about his workload to others.

. Statistical findings reveal that the Benson Company earned a 35% net profit on the funds it spent on a project. The statistics provided the Benson Company with information about the business's A. return on investment. B. retention rate. C. sales strategies. D. sales commission rate.

A Return on investment. The return on investment is calculated by dividing the net profit by the amount spent. This type of information helps the business measure the success of a specific business activity. Retention rates provide information about repeat customers. Sales strategies are the activities salespeople use to sell products. A sales commission rate is a form of compensation paid to salespeople that is based on a certain percentage of sales volume or sales dollars.

Jake is researching career trends in the field of accounting. Which of the following sources is most likely to contain the most current, credible information: A. The federal government's labor and workforce website B. An early edition of the Managerial Accounting in Practice textbook C. An online newspaper article written by a well-known compliance expert D. The latest edition of the Insurance News Monthly trade publication

A The federal government's labor and workforce website. When exploring career trends, researchers need to identify credible sources that keep their information up-to-date. Federal governments often post and regularly update career information on their labor and workforce websites. The United States posts and publishes the Occupational Outlook Handbook, which provides information about career trends for hundreds of careers. The Canadian government posts career information about job trends in Canada on a website called Working in Canada. There is not enough information provided to determine if the accounting textbook or newspaper article contains current or relevant career information about accounting. An insurance trade publication is more likely to contain articles about insurance careers than accounting careers

Which of the following is a reason that organizations undertake knowledge management: A. They want to ensure that organizational knowledge isn't wasted. B. They know that new knowledge is only created outside the organization. C. They don't value an organizational culture of learning. D. They must follow the laws and regulations of their industries.

A They want to ensure that organizational knowledge isn't wasted. Organizations undertake knowledge management because they want to make sure that organizational knowledge is available for use, not wasted. New knowledge comes from both within and outside of an organization. Organizations that undertake knowledge management value an organizational culture of learning. There are no laws or regulations forcing organizations to manage knowledge.

Why do many socially responsible businesses offer their employees benefits such as counseling, retirement planning, and additional training? A. To increase employee satisfaction B. To comply with government regulations C. To promote community involvement D. To improve personal relationships

A To increase employee satisfaction. Many businesses recognize that they have a social responsibility to the overall well-being of employees. They want their employees to be mentally satisfied with their jobs. Many businesses offer benefits such as counseling, retirement planning, and additional training in order to increase employee satisfaction so that employees can focus their attention on work. Businesses do not offer such benefits in order to comply with government regulations, promote community involvement, or improve personal relationships.

To have effective knowledge-management processes, businesses need their employees to have a(n) __________ attitude. A. transparent B. cautious C. argumentative D. curious

A Transparent. Knowledge management involves leveraging the expertise, insight, and information of internal and external resources to help an organization achieve its goals. Transparency is the quality of being just as one's seems—trustworthy. When employees have expertise or personal insight that can help the business achieve its goals, they should share their knowledge with their employers. Sharing knowledge means that the employees have a transparent attitude; they are willing to share their knowhow, and they are not deliberately concealing knowledge that will help the business achieve its goals. Although curious and cautious behaviors are desirable traits, they are not needed for effective knowledge management processes. Businesses do not, as a general rule, want employees to be argumentative.

Businesses should help employees to prevent accidents and injuries by providing A. a comfortable lounge area. B. a safe work environment. C. attractive furnishings. D. a convenient lunch room.

B A safe work environment. Accidents and their costs can be reduced considerably if businesses create safe work environments. Unsafe conditions can be prevented more easily than unsafe acts. Therefore, businesses should create safe work environments that prevent their employees from making hazardous mistakes. Comfortable lounge areas, attractive furnishings, and convenient lunch rooms are not factors that help prevent accidents and injuries.

Maurice, who is the head of the purchasing department at his company, needs to eliminate one of his vendors. Which vendor should Maurice stop working with? A. A vendor that had a late shipment one time after they installed new equipment B. A vendor with prices that are consistently higher than the competition's bids C. A vendor that lets Maurice tour its plant and even view its financial statements D. A vendor that has been in business with the same president for many years

B A vendor with prices that are consistently higher than the competition's bids. If a vendor's prices are consistently higher than industry standards, Maurice should think twice about continuing to do business with that company. A vendor may have a late shipment one time and still be reliable; in fact, sticking with a vendor through a (temporary) rough patch can help the relationship in the long run. It's a good sign if a vendor is willing to let Maurice tour the plant and view its financial statements. This means the vendor has nothing to hide. A vendor that has been in business with the same president for many years is reliable and stable, which means that it will likely be a good company to do business with.

Which of the following is an example of an ethical issue related to the business's operations function: A. A salesperson gives a customer a price break on an obsolete item. B. An assistant buyer accepts a gift from a potential vendor. C. A manager obtains shipping information from several transportation companies. D. An assistant supervisor changes the weekly production schedule.

B An assistant buyer accepts a gift from a potential vendor. Gift giving and receiving is often viewed as bribery. Many businesses implement policies that require their employees (e.g., assistant buyers) to refuse gifts from vendors. Because purchasing is an operations function, buyers and assistant buyers are often exposed to situations in which vendors present them with gifts to obtain business. Therefore, it is important for operations employees to understand the company's policies about gift giving and receiving. A salesperson who gives a customer a price break on an obsolete item is engaged in a selling activity. This selling activity is unethical if the salesperson does not tell the customer that the product is obsolete. Obtaining shipping information from transportation companies and changing the weekly production schedule are ethical operations activities.

What components must "balance" in a balance sheet? A. Income plus expenses should equal owner's equity. B. Assets minus liabilities should equal owner's equity. C. Assets plus liabilities should equal net profit. D. Income minus expenses should equal owners' equity

B Assets minus liabilities should equal owner's equity. The balance sheet gets its name from the fact that the figures it presents must balance each other. When the business subtracts what it owes (liabilities) from what it owns (assets), the result should be the same as the owner's equity. This is the total net worth of the business. Income, expenses, and net profit are all found on an income statement.

If you like rules, directions, and close supervision, you would probably work best with which of the following types of managers: A. Democratic B. Authoritarian C. Laissez-faire D. Interdependent

B Authoritarian. Authoritarian managers like being in charge, creating detailed plans for employees, and handling all major work problems themselves. If you like rules, directions, and close supervision, you'd be a good match for an authoritarian manager. You probably wouldn't get along quite as well with other types of managers. Democratic managers share authority, seek input, and encourage employees to participate, while laissez-faire managers let their employees function independently and don't give specific or detailed directions. Interdependent is a word that refers to two or more things that need to rely on each other. It isn't a type of management.

People may think you're dishonest, nervous, embarrassed, or bored if you A. talk a lot. B. don't make eye contact. C. use concise communication. D. don't use body language.

B Don't make eye contact. Lack of eye contact usually indicates dishonesty, nervousness, embarrassment, or boredom. Eye contact is an important element of body language. Making eye contact with others lets them know that you are listening when they are talking. And when you make eye contact while you're the one doing the talking, you give off a sense of confidence and honesty. Dishonesty, nervousness, embarrassment, and boredom are not indicated by using concise communication, by talking a lot, or by the absence of body language.

A company with a small budget has lots of sensitive customer data on file. If it wants to keep this information safe, what should it do? A. Hire a team of cybersecurity experts B. Focus on prevention by training all employees to protect data C. Save money by only teaching one department to protect data D. Wait until a breach occurs to develop a protection plan

B Focus on prevention by training all employees to protect data. Keeping data safe and protected requires a company-wide focus on security. This means training all employees to use practices that protect customer and company data. This sort of training should be conducted before a breach ever occurs. Hiring a team of cybersecurity experts would be unrealistic for a company with a small budget. The company should not teach only one department to protect data as a cost-saving measure. If a breach occurs because some employees were not trained, the company will end up spending a lot more money in the long run.

. Orderly and systematic behavior is usually logical and directed toward certain A. barriers. B. goals. C. rules. D. people.

B Goals. If you are an organized and logical person, you set personal and career goals for yourself. You may be guided by specific rules, encounter barriers, or interact with other people; but your behavior will still be directed toward your goals.

Monitors, keyboards, and hard drives are examples of computer A. servers. B. hardware. C. dashboards. D. standards.

B Hardware. These are the physical components of a computer system that are necessary for the system to function. They include the central processing unit, hard drive, modem, monitor, keyboard, etc. Monitors, keyboards, and hard drives are not examples of computer networks, language, or standards. Servers involve the use of software programs to link multiple computers to other programs. A dashboard allows computer users to view various types of information (widgets) in a single computer window or screen.

To maintain favorable relationships with vendors, a business must A. use aggressive negotiation tactics. B. have a cooperative orientation. C. implement return policies. D. develop a decentralized buying structure

B Have a cooperative orientation. When a business has a cooperative orientation, it is willing to work with other businesses to achieve their mutual goals. Having a cooperative orientation involves a willingness to share relevant information, to negotiate fairly (assertively), and to be trustworthy and reliable. Using aggressive negotiation tactics will likely not maintain favorable relationships with vendors. In fact, this action is likely to create conflict. A business does not need to use a decentralized buying structure to maintain favorable relationships with vendors. Insufficient information is provided to determine whether the return policies will help or hinder relationships with vendors.

Which of the following is an activity associated with the closing phase of a project: A. Obtaining funds, equipment, and supplies for the project B. Holding a team meeting to evaluate the project's successes and mistakes C. Developing a production schedule for team members D. Determining the appropriate computer technology needs

B Holding a team meeting to evaluate the project's successes and mistakes. Project managers and team members often meet at the end of the project (close) to discuss the things that went well during the project and the mistakes made along the way. Evaluating the successes and mistakes made during the course of the project helps the project manager and team members determine how to improve or better handle similar projects in the future. Obtaining resources, determining technology needs, and developing a production schedule are project-planning activities.

The Six Sigma framework approaches the quality improvement of existing processes by implementing the DMAIC method, which includes the five steps of defining, measuring, analyzing, A. increasing, and counteracting. B. improving, and controlling. C. instigating, and correcting. D. influencing, and collaborating.

B Improving, and controlling. Six Sigma is a quality improvement framework that involves continuously setting higher goals of perfection. It builds upon previous goals to set higher goals that continuously improve the quality of the business's goods, services, or processes. DMAIC is an acronym for the Six Sigma method of improving existing processes. The steps include defining goals, measuring performance, analyzing problem areas, improving the problem areas by eliminating defects, and controlling future performance and processes

What effect do some environmental laws have on businesses? A. Require more employees B. Increase operating costs C. Control exterior landscapes D. Limit equipment purchases

B Increase operating costs. Environmental laws are intended to conserve and protect the natural environment. Many of these laws have an impact on the way businesses operate by requiring them to decrease pollution or control waste. As a result, businesses often need to spend money to comply with the rules and regulations, which leads to an increase in operating costs. For example, a business might need to purchase pollution-control devices. Environmental laws do not require businesses to hire more employees or develop exterior landscapes. The laws do not limit equipment purchases. In fact, businesses may need to buy more equipment to comply with the laws.

Daniela is in charge of moving company data into a new software system. Which of the following is a step she should take: A. Avoid telling employees about the change until it is completed. B. Make sure all the data are saved in a backup location. C. Delete the old software system before installing the new one. D. Schedule the change to occur during a project deadline.

B Make sure all the data are saved in a backup location. It's important for Daniela to make sure all the company's data are saved in a backup location. If something goes wrong while she's moving the data into the new system, this will help her avoid losing all that information. She should tell employees about the change before it occurs. She should wait to delete the old system until she installs the new one. This way she'll be less likely to lose information if something goes wrong. The change should be scheduled to occur at a convenient time, not during a project deadline, so that it will not disrupt the office's work.

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

B Message boards. A message board is a page on a website 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 Web to find computer-program updates.

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

B 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.

As a manager, Pablo is taking steps to correct a problem that is affecting the business's productivity. Which of the following types of control is Pablo using: A. Preliminary B. Rework C. Contingency D. Functional

B Rework. Control is the management function that monitors the work effort. Because Pablo is initiating corrective action to fix a problem or output, he is engaging in the rework control process. Preliminary control is a form of control in which the manager takes action to prevent problems from occurring. Developing a contingency plan or an alternative course of action is often part of preliminary control process. Functional is not a term that describes a form of control. Control refers to the management function that monitors the work effort.

Which of the following is an example of a business managing its information in an ethical manner: A. The TKN Corporation sells its customer mailing list to third parties without consent. B. The XPB Company takes precautions to maintain the privacy of its clients' information. C. OWC Manufacturing distributes an employee's performance review to his/her coworkers. D. GVZ and Associates deliberately prepares its annual report to confuse readers.

B The XPB Company takes precautions to maintain the privacy of its clients' information. Businesses collect and maintain information about their employees, clients, products, and activities, and some of the information may be private or confidential. Businesses have an ethical obligation to protect certain information so it does not become public and cause harm or embarrassment to clients or employees. Internet firewalls and computer passwords are ways in which businesses protect electronic information. Selling a customer mailing list without the customers' consent, distributing an employee's performance review to coworkers, and deliberately preparing an annual report in a confusing manner are unethical actions.

Which of the following is a reason that someone might want to settle a legal case: A. To avoid a judge's approval B. To avoid a costly trial C. To damage someone's reputation D. To have a lengthy trial

B To avoid a costly trial. Many parties opt for settlements because they wish to avoid costly, lengthy trials. Trials can often damage a company's or person's reputation. Some parties settle because they wish to minimize damage to their reputations. A judge still must approve settlements.

Which of the following is a natural resource that can be renewed through people's efforts: A. Crude oil B. Trees C. Water D. Mineral deposits

B Trees. As trees are cut, people can plant new trees so that more timber will be available. Nature replaces oil deposits and minerals over a period of years. Water is replaced by rain.

What is the first thing you need to do when you want to persuade others to take a certain course of action? A. State your case B. Understand your audience C. Express a need or want D. Communicate clearly

B Understand your audience. When you are persuading others, you are trying to get them to see things a certain way or to take a certain course of action. Before you can persuade people, you must first know what appeals to them. When you have a general idea about their likes, dislikes, opinions, and needs, you will be able to prepare a message that will appeal to them. After you understand your audience, and you know how to present your message in a way that will appeal to them, you can state your case using clear communication, which may include expressing a particular want or need.

A project manager who wants a central location that contains relevant information about each component of the work breakdown structure (WBS) should develop a A. WBS thesaurus. B. WBS dictionary. C. training chart. D. pie chart

B WBS dictionary. A WBS dictionary is a tool that helps inform project team members about the scope, status, milestones, and deliverables associated with each project activity. The dictionary can be formatted in a variety of ways, such as an organizational chart or an outline. By maintaining and keeping the dictionary in a central location (e.g., computer intranet), all team members have access to the information at any time. A thesaurus provides synonyms for words. A training chart would not be applicable to the situation described. A pie chart would not be feasible to use because of space limitations.

Cassandra is a buyer for a department store chain. On Tuesday, she placed a seasonal order with an apparel vendor without providing specific models, sizes, colors, or ship dates. What type of order did Cassandra place? A. Standing B. Special C. Blanket D. Rush

C Blanket. 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. A special order is a request for a custom product or a product that a vendor does not normally carry in stock. A standing order is an order that involves sending specific products at set intervals. A rush order is a request for an order to be shipped for immediate delivery.

A group of individuals organized by a charter and permitted to form a business that functions as a legal entity is known as a A. licensing arrangement. B. partnership. C. corporation. D. sole proprietorship.

C Corporation. Corporations can be complex to form, but they provide protection for their owners because each owner's liability is limited to the amount of his/her investment. A partnership is a business owned by two or more people. A sole proprietorship is a type of business ownership in which only one person owns and manages the business. A licensing arrangement is a business structure that requires the authorization or permission from an owner to another entity to use trademarked, copyrighted (e.g., logo, name), or patented material for a specific activity, during a specific time period, for the profit of both parties.

Which of the following statements about protecting digital customer data is true: A. A company's protection of data has little impact on the customer's perception. B. Protecting digital customer data is a responsibility of the IT department. C. Data protection strategies should be reevaluated often. D. Protecting digital customer data is only necessary for large businesses

C Data protection strategies should be reevaluated often. Data protection strategies should be reevaluated often because, as technology changes and hackers become more sophisticated, what was a good strategy five years ago may not be effective today. Protecting digital data is an important task for everyone in the company, not just the IT department. If a company fails to adequately protect its data, customers will likely have a negative perception of that company. Protecting digital customer data is necessary for businesses of all sizes.

When businesses make decisions that are honest and fair, they are being A. patient. B. accommodating. C. ethical. D. generous.

C Ethical. Ethical behavior in business means doing what is right. This involves making decisions that are honest and fair and that do not harm or take advantage of others. Being ethical is often difficult because it may involve putting others first. When businesses make decisions that are honest and fair, they are not being accommodating, patient, or generous.

As the principal in an agency business relationship, Lynn tells Bob to take specific action on her behalf under certain circumstances. What type of authority has Lynn given Bob? A. Temporary B. Provisional C. Express D. Unlimited

C Express. An agent is a person or business that is authorized to conduct certain business activities with third parties on the behalf of another person or business (principal). When the principal provides the agent with express authority, the principal gives specific directions, often in writing, to the agent who is handling certain business matters for the principal. Provisional, temporary, and unlimited are not widely used terms to describe types of legal authority in agency relationships.

An important factor in building positive customer relations is to give customers A. benefits based on who they are. B. the promise of satisfaction. C. fair and equal treatment. D. a business-oriented approach.

C Fair and equal treatment. Receiving fair and equal treatment from a business promotes goodwill with customers. Even customers who disagree with the business may not complain if they feel they received fair treatment. Giving customers benefits based on who they are is an example of unfair and unequal treatment. The business must live up to a promise of satisfaction in order for the promise to have meaning. A customer-oriented approach would be more likely to create positive customer relations than a business-oriented approach.

Before businesses can effectively use relevant data, they need to determine the type of A. report that is required. B. computer system to purchase. C. information that is needed. D. collection process to develop.

C Information that is needed. Information is a collection of facts, statistics, or data. Before businesses can use the information, they must determine the type of information that is needed. For example, does a business need economic data because it wants to expand, or does it need marketing data because it wants to attract new customers? The business must decide the type of information it needs before it can obtain and use that data. Businesses do not need to determine the type of computer system to purchase, the type of report that is required, or the type of collection process to develop before using relevant data.

One activity associated with the directing function of management is A. determining tasks. B. establishing goals. C. instructing employees. D. interviewing applicants.

C Instructing employees. Directing is the management function of providing guidance to workers and work projects. When managers provide employees with guidance, they are often providing employees with instructions about performing tasks in a certain sequence or manner. Establishing goals is a planning activity. Determining tasks is an organizing activity. Interviewing applicants is a staffing activity.

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

C 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.

Which of the following is a primary staffing consideration when a manager decides to hire a new employee: A. Communication methods B. Investment goals C. Necessary skills D. Reimbursement procedures

C Necessary skills. Staffing is the management function of finding workers for a business. An important aspect of staffing involves hiring employees to do the work. To hire qualified employees, the manager must know what skills are needed to perform the work. Investment goals, communication methods, and reimbursement procedures are not primary staffing considerations when a manager decides to hire a new employee.

Sally, Joe, Tim, and Jane are team members who perform different tasks by themselves at the same time to create a single output. The method of work coordination that the team members are using is __________ task interdependence. A. reciprocal B. sequential C. pooled D. reversed

C Pooled. Pooled task interdependence involves several employees working independently on different tasks at the same time. When the employees finish their tasks, they combine or pool their individual outputs to create the final output. Sequential task interdependence means that one worker must complete a task before the next worker can perform his/her task. Reciprocal task interdependence occurs when one team member's work is dependent on others' work and requires extensive sharing of information and working together on a regular basis. The example does not illustrate reversed task interdependence.

Belinda is reviewing departmental reports to determine why the business's outputs have been decreasing steadily over the last six weeks. Belinda is analyzing issues related to A. finance. B. distribution. C. production. D. human resources.

C Production. Business analysis is the process of investigating and evaluating a business issue, problem, process, or approach. Analysis helps the business determine if it is accomplishing goals or if it needs to make adjustments so it can accomplish its goals. Businesses analyze many types of situations. Production is the process of producing goods and services. When the business detects production problems (e.g., output decreases), it needs to obtain data to find out why problems are occurring, so it can take the appropriate steps to resolve the problem. Distribution is the business function of moving or transferring the ownership of goods or services from producers to consumers. Finance is the business function that involves the management of money. Human resources are the people who work to produce goods and services. There is not enough information provided to determine if the production issues relate to the production-workers' performance levels, raw materials and inventory shortages, or equipment malfunctions.

Which of the following is a true statement regarding quality management and the environment: A. Environmental issues have little to no impact on quality management. B. Organizations should regard environmental issues above customer satisfaction. C. Quality-management plans should create environmentally sustainable processes and products. D. Creating quality products is usually harmful to the environment.

C Quality-management plans should create environmentally sustainable processes and products. Customers and businesses are aware of the need to preserve and protect the environment. Many organizations consider this one of their social responsibilities, and customers expect them to do their part. Quality management should include plans to create environmentally sustainable processes and products. Creating quality products does not need to be harmful to the environment. However, businesses should keep customer satisfaction as their top priority.

The ability to quickly and accurately calculate mathematical data is one of the characteristics of a __________ software program. A. graphics B. database C. spreadsheet D. word-processin

C Spreadsheet. Spreadsheet software programs are designed to organize, calculate, and analyze mathematical or numerical information. Businesses are able to enter mathematical information into rows and columns, and the software provides accurate calculations in a matter of seconds. Database software programs maintain information according to specific criteria. Word-processing software programs are used to create text documents. Graphics software programs are used to combine text and pictures to create visual impact.

Orientation of a company's new employees usually takes place A. at management's convenience. B. monthly during the first year. C. the first day on the job. D. at the employee's convenience.

C The first day on the job. Orientation is an introductory program for new employees in which they are given basic information about the company and its policies. Orientation should take place as soon as possible after hiring so that employees know enough about the company to feel comfortable and to get off to a good start. It would be ineffective to provide orientation monthly or only at the convenience of management or the employees.

An accounts-receivable employee monitors delinquent accounts by placing them into three folders—30 days past due, 60 days past due, and 90 days past due. How has the employee organized the information? A. Location B. Invoice number C. Time D. Name

C Time. The system used or the way information is organized often depends on the type of information or task at hand. In the example, the employee must track delinquent accounts. Because some accounts are more overdue than other accounts the employee may use time as a method of organizing the information. Each interval may require the employee to take a different action, such as mailing a late notice to accounts that are 30 days past due, calling accounts that are 60 days past due, and turning accounts over to collection agencies that are 90 days past due. Each action is based on a certain time frame. The example does not indicate if the invoice numbers, locations, or names are organized in a specific manner

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

Madelyn is responsible for selecting Elite Manufacturing Company's new payroll-processing vendor. Madelyn has narrowed down her selection to three vendors and is favoring Pay Day Enterprises, the small company where her brother works. The primary concern with Pay Day is that it has never handled payroll for a company as large as Elite, which presents a business risk to the manufacturing company. This situation illustrates an ethical issue related to A. the company's structure. B. financial reporting methodology. C. levels of service. D. a conflict of interest.

D A conflict of interest. Because Madelyn's brother works for a potential vendor, Madelyn may not be able to be objective and neutral when making a final selection for her employer's new payroll-processing provider. When selecting a vendor, it is important to be objective and consider all of the advantages, disadvantages, and potential risks with each candidate. A vendor that has not worked with large companies may not have the resources readily available to provide adequate service. Because Madelyn has a conflict of interest in this situation, she may want to seek input from her managers or formally request that someone else make the final decision. The situation presented does not involve an ethical issue related to financial reporting methodology, levels of service, or the company's structure.

For successful innovation in the workplace, employees should have a desire to learn and be willing to A. suppress ideas. B. follow procedures. C. exhibit bias. D. accept change

D Accept change. Innovation is the process of creating new or more effective products, processes, services, technologies, or ideas. Creating something new requires change. When a business encourages its employees to learn about new processes, customer wants, market needs, and trends, innovation is more likely to occur. Exhibiting bias and suppressing ideas may have a negative effect on innovation. Following certain types of business procedures is important for creating a safe and fair work environment and does not necessarily affect innovative processes.

If a message recipient is frowning and has clenched fists, the emotional response that s/he is most likely displaying is A. nervousness. B. sadness. C. joy. D. anger.

D Anger. Nonverbal cues are the elements of communication that use gestures and facial expressions rather than words. Nonverbal behavior can indicate what the sender and/or the receiver think about a message. If the recipient responds to a message by frowning and clenching his/her fists, it is likely that the message has made the recipient angry. Message recipients might cry or cover their faces with their hands if the message contains sad news. Smiling and jumping up and down usually indicate that a message contains good news, which causes joy. Message recipients might express nervousness by tapping their toes, shaking, twitching, or biting their fingernails.

Functional specialist, data scientist, and business process manager are __________ positions. A. human resources management B. office management C. general management D. business analytics

D Business analytics. Business analyst, data scientist, and business process manager are all business analytics positions. They are not office management, human resources management, or general management positions. Business analytics professionals are responsible for helping to align business and IT goals and analyzing data to aid in business decision making.

What should project managers do to ensure that team members will perform their designated tasks efficiently? A. Provide a team evaluation form B. Ask team members if they like their assignments C. Correct the team members' mistakes for them D. Communicate their roles and responsibilities to them

D Communicate their roles and responsibilities to them. An important aspect of the project manager's role is to communicate to team members their individual roles and responsibilities for executing the project. When team members understand what is expected of them, the project is more likely to run smoothly and achieve its goals. Providing evaluation forms, asking team members if they like their assignments, and correcting team members' mistakes for them will not help the team members perform their work efficiently.

. The Simpson Company is negotiating discount terms with Cornwell Manufacturing, a prospective vendor. During the negotiation, Cornwell states that it is willing to offer Simpson a six-percent discount on orders over $50,000. Although Simpson would rather have an eight-percent discount, it agrees to the terms, hoping to obtain something it wants later in the negotiation. This is an example of a A. position. B. withdrawal. C. plea. D. concession.

D Concession. A concession is something that one party gives up during a negotiation. In many situations, one party will give up something that it wants and use it (the concession) as leverage to get something else that it wants later in the negotiation process. Withdrawal is a conflict response mode in which one or both parties exhibit passive behavior and express a low level of cooperation. A plea is a request. A position is what someone believes about an idea or issue.

Which of the following words most accurately describes arbitration: A. Temporary B. Nonconsensual C. Biased D. Confidential

D Confidential. Arbitration is private and not open to the media, so parties may choose arbitration if they want to keep information confidential. Arbitration is consensual. Both parties must sign an agreement assenting to arbitration. Arbitration is neutral, not biased. Arbitration is final and binding, not temporary

Dealing with shortages of resources is included in the study of A. private enterprise. B. marketing. C. sociology. D. economics.

D Economics. Economics is the study of how to meet unlimited, competing wants with scarce resources. Sociology is the study of man's social interactions. Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. Private enterprise is an economic system in which individuals and groups own or control the means of production.

A person who assumes the responsibility and risk of establishing a business is a(n) A. clerk. B. customer. C. buyer. D. entrepreneur

D Entrepreneur. Entrepreneurs start and operate their own businesses. A clerk is an entry-level employee. Customers are businesses or individuals who purchase from a business. A buyer is a person who purchases products for resale or for use in the operation of a business.

What is one reason why many people decide to become entrepreneurs? A. Less responsibility B. Long hours C. Less risk D. Flexibility

D Flexibility. Flexibility is a motivator that attracts many budding entrepreneurs. Entrepreneurs are their own bosses, and they are able to decide when and where to work and for how long. Flexibility allows an entrepreneur to control and manage time based on individual needs and desires and on the nature of the business. Entrepreneurs often have to work very long hours, but this is not a reason to become an entrepreneur. Entrepreneurs face a great deal of risk and responsibility.

When Claire tells her supervisor that she made a mistake on the report that she recently submitted, she is demonstrating A. adaptability. B. enthusiasm. C. self-control. D. honesty.

D Honesty. Honest people tell the truth, even when it may cause problems for them. By accepting responsibility for her own actions and telling her supervisor about the mistake she made, Claire is being truthful. Enthusiasm involves showing a great deal of interest in something. Self-control is restraint of your feelings, words, and actions. Adaptability is the ability to adjust to changing conditions.

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. Inventory records B. Production records C. R&D records D. Human resources records

D 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.

One possible downside to choosing overseas suppliers is A. increased taxes. B. increased costs. C. a simpler supply chain. D. increased delivery times

D Increased delivery times. Most companies want to reduce supply chain costs. Some of them may decide to use overseas suppliers, who often have lower prices and lower taxes. However, using an overseas supplier can often result in increased delivery time and a more complex supply chain.

A business process change would likely be required if a company A. has a profitable quarter. B. goes out of business. C. plans a meeting for Friday. D. merges with another company

D Merges with another company. An alteration to a company's current business process is considered a business process change. If a company undergoes a significant change, such as merging with another company, it requires a change in business procedures. Planning a meeting for Friday and having a profitable quarter are not reasons to change a business process. If a company goes out of business, it would no longer have business processes.

Althea just received her first paycheck at work. She's excited, but as she looks at her pay stub she gets confused. She wants to know how much money she made in this pay period, but there are so many different numbers. If Althea wants to know how much money will actually be deposited in her bank account, she should look at the A. state tax. B. gross pay. C. federal income tax. D. net pay.

D Net pay. The net pay is the amount of money Althea will actually receive after all her withholdings have been taken out. This is the money that will be deposited in her bank account. The gross pay is the amount she earns before her withholdings are taken out. Federal income tax and state tax are money that Althea owes to the government.

One way to effectively prepare for an oral presentation is to A. articulate. B. communicate. C. perform. D. practice.

D Practice. Practicing is the best way to prepare for an oral presentation. There are several effective practicing techniques. Some people prefer to record their presentations and view them later in order to evaluate their performance. Others prefer to practice in front of a mirror or before a few coworkers in order to gain feedback. Whatever technique is used, practicing helps a person to become more comfortable and confident. The actual presentation involves articulating, communicating, and performing.

Which of the following statements has been edited properly: A. Frank, Gus, and Bob is taking a client out to lunch. B. Roger's weekly sales-volume quota are $8,500. C. Carole is developing a prodect analysis sheet. D. Primary sources may be difficult to find.

D Primary sources may be difficult to find. The writing process typically involves several steps: pre-writing, drafting, revising, editing, and publishing. During the editing step, the writer or copyreader should review what has been written to determine if it meets certain criteria to be published and/or shared with others. These criteria include proper sentence structure, appropriate grammar and punctuation, correct spelling, etc. "Primary sources may be difficult to find" is the only statement that is properly structured, contains appropriate grammar and punctuation, and is spelled correctly. The word "quota" is singular, so "Roger's weekly sales-volume quota are $8,500" contains an incorrect verb (the verb should be "is," not "are"). In the statement "Carole is developing a prodect analysis sheet", the word "prodect" is spelled incorrectly (the correct spelling is "product"). The phrase "Frank, Gus, and Bob" is a plural subject, so the wrong verb is used in the predicate of the sentence (the verb should be "are" instead of "is").

Which of the following is a source of career information that is easy to contact: A. Government agencies B. Employers C. Research institutions D. Relatives

D Relatives. Relatives are often a good source of career information, and they are also easy to contact. Family members may work in various types of professions or industries and be able to explain the job requirements and advancement opportunities. They may be able to provide brochures or reports from their places of employment that describe the jobs and the purpose of the business. Family members are usually willing to talk about their jobs and provide information to young relatives. Although it is possible to obtain career information from employers, research institutions, and government agencies, it is not always easy to do so. Some of these organizations do not have easily accessible information or have restrictions on who may receive the information.

Many employment applications ask individuals the reason that they left their previous jobs. Which of the following is an acceptable response: A. Disliked the manager B. Structured environment C. Terminated for cause D. Seasonal position only

D Seasonal position only. Many employment applications ask applicants the reason for leaving a previous job. An acceptable answer is because the position was seasonal. Many teenagers work in seasonal or part-time positions and can freely state that they left because their services were no longer needed. Applicants should not answer with negative comments about previous employers such as not liking the manager or finding the work environment too structured. Those may be the true reasons for leaving, but applicants should keep that information to themselves. Applicants probably would not want to indicate that they had been terminated for cause.

Why is it important for a business to clearly communicate its budget to employees? A. Because employees need to know when they need to adjust the budget B. So employees know when they should work overtime C. Because the business is legally required to disclose financial information D. So employees are aware of their effect on the business's profits

D So employees are aware of their effect on the business's profits. A budget is an estimate of income and expenses for a specific period of time. A budget is a tool that helps a business to manage its money. A budget should be realistic, well planned, and communicated to employees. Employees need to know how their actions affect the amount of money that flows into and out of the business—how their decisions affect the business's bottom line. Knowing about the budget can motivate employees to be more costconscious, which can help the business become more profitable. Overtime for hourly employees is one aspect that may affect the business's profits. Privately-held businesses are not legally required to disclose certain types of financial information to employees in certain jurisdictions. If necessary, management, rather than employees, can adjust the budget.

Which of the following is a negative effect that technology has on business: A. Businesses often cut employee-assistance programs. B. Less emphasis is placed on research and development. C. It's more difficult to enter new and foreign markets. D. Some technologies can create pollution.

D Some technologies can create pollution. Although technology provides many benefits, there are also some negatives, as well. For example, technology can often be held responsible for certain environmental issues, like air pollution. This means a company usually has to address these problems for public relations purposes. Technology doesn't make it more difficult to enter new and foreign markets; actually, it makes it much easier, since the internet allows businesses to sell their products to anyone, anywhere in the world. Rather than placing less emphasis on research and development as a result of technology, businesses often place more emphasis on research and development of new technologies. Technology doesn't typically impact employee-assistance programs.

The XYZ Company has a committee whose members are appointed for three-year terms to review the company's hiring policies. This committee is an example of a(n) __________ committee. A. multi-functional B. ad-hoc C. volunteer D. standing

D Standing. A standing committee is one whose work continues over a long period of time. A committee whose members are expected to serve for three years would be considered a standing committee. An ad-hoc committee is a temporary committee that deals with a specific or unexpected issue. A multifunctional committee may deal with a variety of issues. The committee members did not volunteer but were appointed.

"I'd like to have that in writing before I give you my money," best describes the __________ customer. A. slow/methodical B. dishonest C. disagreeable D. suspicious

D Suspicious. These customers want facts and proof before making the final buying decision. They tend to question everything you tell them. This skepticism may be the result of bad experiences with other businesses. Disagreeable customers are unpleasant and hard to help. Dishonest customers try to avoid paying part or all of the price for a good or service. Slow/Methodical customers require a lot of time to make buying decisions because of shyness or indecisiveness.

Which characteristic of a SMART objective does the following statement exemplify: Phase one of the project will be completed on May 10, 2016? A. Structured B. Realistic C. Motivational D. Time-bound

D 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 to SMART objectives.

Why is it important for businesses to have efficient production? A. To buy resources B. To remain flexible C. To pay employees D. To be competitive

D To be competitive. Businesses must have efficient production in order to be competitive. Efficient production turns out the maximum number of products at the lowest cost. If the business's costs of production are higher than its competitors' costs, the business will have to set its prices higher than competitors' prices. This is likely to reduce sales. Businesses do not have efficient production in order to buy resources or pay employees, although efficient production generates the profit that makes it possible for businesses to buy additional resources and pay employees. A business's production may or may not be flexible depending on the type of business.

Why might a business decide to purchase goods for a price higher than the lowest possible price? A. To arrange flexible contracts B. To spend additional funds C. To satisfy a favorite vendor D. To obtain a needed delivery date

D To obtain a needed delivery date. The people responsible for purchasing should always seek to buy needed goods and services at the lowest possible price, provided that quality, delivery, and service do not suffer. It may not be efficient to purchase at the lowest possible price if the materials cannot be delivered on time. Obtaining the needed delivery date is a reason why a business might decide to purchase goods for a price higher than the lowest possible price. A business would not purchase goods for a price higher than the lowest possible price in order to spend additional funds, satisfy a favorite vendor, or arrange flexible contracts.

Why might a business obtain a trademark for its intellectual property? A. To stop the unauthorized use of the business's inventions B. To prevent the publication of the business's written work C. To keep competitors from using the business's manufacturing processes D. To protect the integrity of the business's logo

D To protect the integrity of the business's logo. Trademarks protect unique symbols, designs (e.g., logo), or words that businesses use to identify their brands. A business can legally protect its logo from unauthorized use by registering the logo with the appropriate government agency. If an unauthorized entity compromises or uses the logo in harmful, embarrassing, or negative ways, trademark protection provides the business with legal recourse. Copyrights provide legal protection for written, musical, and artistic works. Patents are obtained to legally protect inventions and certain types of processes (e.g., unique manufacturing processes) for a limited amount of time.

In order to set your personal goals, you must have a clear understanding of A. social responsibility. B. human relations. C. technology. D. yourself.

D Yourself. In order to set goals for yourself, you must have a clear understanding of what your skills and abilities are. You cannot be successful unless you know who you are, what you want to achieve, and what you are capable of doing. An understanding of human relations will help you in your interactions with others. An understanding of technology will help you toward career success. Social responsibility is the duty of business to contribute to the well-being of society.