BUS 100 MIDTERM STUDY QUESTION

_____ move resources, goods, services, and skills across national boundaries without regard to the country in which they are headquartered. a. Multinational corporations b. Cartels c. Borderless corporations d. International monopolies e. Oligopolies

a. Multinational corporations

In Canada, the government owns the communications, transportation, and utilities industries, while most other activity is carried on by private enterprise. Canada is an example of: a. a mixed economy b. private governmentalism c. private enterprise d. communism e. social capitalism

a. a mixed economy

Dafne Herrera, a medical diagnostic equipment specialist, was asked to attend a medical conference in which the attendees discussed new uses for laser technology in diagnosing certain types of cancer. Herrera exerted considerable influence over the decisions to adopt the laser technology because of her _____ power. a. expert b. coercive c. referent d. legitimate e. controlling

a. expert

Zimbabwe produces textiles, silver, diamonds, nickel, and meat, which it sells to European countries. To Zimbabwe, the materials it produces are examples of: a. export b. import c. countertrade d. tariff e. embargo

a. export

Dr. Pepper Enterprises (DPE) is the largest bottler and distributor of Dr. Pepper products in the world. It is organized around its North America division and its European division. This departmentalization by _____ allows DPE to respond to the demands of different markets. a. geography b. customer c. process d. function e. product

a. geography

The Small Business Administration (SBA): a. helps people start and manage small businesses b. is a privately-owned company c. is a financial institution d. does not have a Web site e. is accurately described by all of the above

a. helps people start and manage small businesses

A(n) _____ organization is characterized by a relatively low degree of job specialization, loose departmentalization, few levels of management, wide spans of control, decentralized decision making, and a short chain of command. a. organic b. staff c. mechanistic d. hierarchical e. line

a. organic

The lowest level of management, which usually has the most people to manage, is called _____ management. a. supervisory b. middle c. top d. strategic e. functional

a. supervisory

The standard of living is low in Ethiopia. This means: a. it has a positive balance of trade b. its citizens cannot afford to buy much c. it attracts risk-aversive entrepreneurs d. it has a negative balance of trade e. it has higher wages than the U.S.

b. its citizens cannot afford to buy much

Italian customers view toothpaste as a cosmetic while consumers in Norway view it as a necessary part of daily hygiene and use three times as much their Italian counterparts. This example of _____ shows how important it is for marketers to understand. a. expropriation laws b. cultural differences c. nationalistic standards d. trade regulations e. local content laws

b. cultural differences

In the early 1900s, the U.S. prohibited importing Brazilian mangoes even though Brazil is the world's largest producer of the fruit. This prohibition remained in effect until 1993. The ban on importing Brazilian mangoes is an example of a(n): a. tariff b. embargo c. import quota d. restrictive limit

b. embargo

The most basic measure of economic growth is the: a. combined producer and consumer price indices b. gross domestic product c. total of all goods and services produced d. producer price index e. consumer price index

b. gross domestic product

Max Mansfield is employed by International Paper, a company that values his vision and creativity. To stay ahead in a very competitive industry, International Paper gives Mansfield almost complete autonomy to develop innovative and effective communications. Mansfield is an example of a(n): a. corporate entrepreneur b. intrapreneur c. classic entrepreneur d. insourced entrepreneur e. multipreneur

b. intrapreneur

_____ inflation is inflation that occurs when the demand for goods and services is greater than the supply. a. Demand-pull b. Demand-push c. Cost-push d. Supply-side e. Demand-side

a. Demand-pull

Juan Ramirez is a warehouse manager for a company that markets electric generators. In this small entrepreneurial firm, there are direct lines of communication and authority flowing from the company's CEO down to Ramirez and through him to the workers in the warehouse. Ramirez works in a _____ organization. a. functional b. line c. matrix d. centralized e. staff

b. line

In a(n) _____, a few sellers can exert substantial control over prices. a. pure monopoly b. oligopoly c. monopolistic competition d. competitive monopoly e. perfect monopoly

b. oligopoly

One of the primary goals of Eddie Bauer is to expand its market. When the company allocated resources so that it could open two stores in India, it was engaged in which management function? a. benchmarking b. organizing c. implementing d. resource planning e. operational planning

b. organizing

Free trade: a. establishes artificial barriers to trade b. permits people to buy and sell where they please c. is also called protectionism d. relies on bartering as its primary means of exchange e. allows companies to conduct business without licenses

b. permits people to buy and sell where they please

A company that has a global vision a. follows its competition into foreign markets b. recognizes and reacts to international business opportunities c. has a very nationalistic view of the world d. is interested in nothing more complicated than exporting e. does not see competition from foreign marketers as a threat

b. recognizes and reacts to international business opportunities

Russian multinational oil companies such as Gazprom, Rosneft, and Lukoli are active all the way along the supply chain from locating crude oil deposits, drilling and extracting crude, transporting it around the world, refining it into petrochemicals such as gasoline, to distributing the fuel to company-owned retail stations, where it is sold to consumers. To gain this complete control of the various resources needed to produce oil and gas, the companies had to have engaged in _____ mergers. a. functional b. vertical c. acquired d. combination e. horizontal

b. vertical

Hanes wanted to make its distribution system more efficient. It decided to implant a tiny computer chip in each of its product's packages, so it could track its products and improve its inventory management. Which management function would be used to achieve the goal of greater efficiency? a. Planning b. Staffing c. Controlling d. Communicating e. Organizing

c. Controlling

The CEO of Natural Foods Markets is Wyatt DeSilva. Natural Foods is divided into about eight functional teams and each new employee is hired provisionally to a store team. After four weeks of work, the team votes whether to hire him or her; a two-thirds yes vote is necessary to join the staff permanently. Which leadership style appears to be used by Natural Foods? a. Reactive b. Defensive c. Democratic (participative) d. Autocratic e. Multi-dimensional

c. Democratic (participative)

KoolKids International has entered an agreement with Binney & Smith to create a line of frozen novelties based on the Crayola brand, including pops, bars, sandwiches, cups, cones, sundaes and shakes. KoolKids will pay Binney & Smith a royalty for the right to use the Crayola trademark. This is an example of: a. joint venture b. cooperative agreement c. a licensing agreement d. limited partnership e. contract manufacturing

c. a licensing agreement

In 1993, Purdue Pharmaceuticals applied for patents on Oxycontin, a painkiller. The U.S. Patent and Trademark Office (PTO) granted those patents based on the manufacturer's contention that the drug contained a novel innovation: It had been engineered so that only a very small dose was required for the drug to be effective for 90 percent of patients. Seven years later, a generic drug maker, Endo Pharmaceuticals, applied to the FDA for permission to sell its own, lower-priced version of Oxycontin. Purdue's patents acted as a(n) _____ and prevented Endo from entering the market. a. inflationary tool b. purchasing power equalizer c. barrier to entry d. market contractionary tool e. oligopolistic tool

c. barrier to entry

The _____ represents the prices of a market basket of goods and services as measured monthly by the Department of Labor. a. wholesale cost index (WCI) b. GDP index c. consumer price index (CPI) d. inflation rate e. producer price index (PPI)

c. consumer price index (CPI)

The slope of the demand curve is: a. horizontal b. vertical c. downward and to the right d. upward and to the right

c. downward and to the right

Julian Longoria is the founder of Happy Hawaii LLC, a company that markets Pure Hawaiian Air. Bottles of Pure Hawaiian Air contain air that smells like the floral bouquet that greets tourists as they get off the plane in Hawaii. Retailing for about $5 apiece, the bottles are sold at gift shops in Hawaii, as well as to travel agents nationwide who give them to clients. As a(n) _____, Longoria's annual income exceeds $100,000 annually. a. venture capitalist b. franchisee c. entrepreneur d. financier e. franchisor

c. entrepreneur

A firm's stockholders have the right to do all of the following EXCEPT: a. attend annual meetings b. share in company profits, in the form of dividends c. get discounts on the company's product or service d. sell or transfer their ownership e. elect the board of directors

c. get discounts on the company's product or service

Venture capital: a. gives the investor no voice in how the company in which he or she has invested will operate b. is another name for the principal which a business borrows from a bank c. is financing obtained from investment firms that specialize in financing small, high-growth companies d. includes all the money the owner of the business invests in his or her new enterprise e. is borrowed money invested in start-up businesses and provided by the Small Business Administration

c. is financing obtained from investment firms that specialize in financing small, high-growth companies

Anahi Bahena leaned to sail, and after mastering sailing, she started an all-woman sailing school called Womanship. Bahena started small and plans to stay small. She would be correctly called a(n): a. growth entrepreneur b. multipreneur c. micropreneur d. intrapreneur e. interpreneur

c. micropreneur

The Caucasus Mountains along the northeastern border of Georgia (one of the former Soviet republics) makes it difficult for the nation to trade with other former Soviet republics that are to its north and east. The mountain range acts as a(n): a. infrastructure deterrent b. natural embargo c. natural trade barrier d. marketing barrier e. natural blockage

c. natural trade barrier

Angel Nelson and Johan Resendiz consider themselves to be experts on hunting in the mountains in North Carolina. As a result, the two men established a company that markets hunting expeditions. Nelson and Resendiz share responsibilities for booking the trips, gathering supplies, and guiding groups of five to seven hunters into locations where they can hunt for deer and bear. Since the two will share any profit equally, this would be an example of a(n): a. double proprietorship b. S corporation c. partnership d. cooperative e. sole proprietorship

c. partnership

LaDonna Merkel mows yards during the summer. Which of the following is an example of revenue for Merkel? a. a tire repair kit and extra air filters for the lawn mower b. the new pair of shoes she had to buy because she accidentally ran over a pair with her mower c. the $10 tip Mrs. Pierre gave her for doing such a fine job of mowing her yard d. a trip to the lawn mower repair shop to get her machine's blade sharpened e. the gas can she had to buy so her mower wouldn't run out of gas while she mowed Mr. Johnson's five-yard pasture

c. the $10 tip Mrs. Pierre gave her for doing such a fine job of mowing her yard

Which of the following is the BEST example of a not-for-profit business? a. FedEx delivery service b. McDonald's c. the American Cancer Society d. Kellogg's e. Hightower Construction Company

c. the American Cancer Society

The most fundamental reason for the growth in world trade is probably due to: a. cultural differences b. fluctuating exchange rates c. the need for businesses to expand their markets d. the creation of free trade areas e. political unrest

c. the need for businesses to expand their markets

Individual ownership of property is a key element in: a. command economy b. socialism c. communism d. capitalism e. utopianism

d. capitalism

Bolivia can grow and sell cut flowers for floral arrangements more easily and more cheaply than most other countries can produce the same flowers. When it comes to flowers, Bolivia has a(n): a. absolute advantage b. total advantage c. core strength d. comparative advantage e. advantageous competency

d. comparative advantage

Which of the following is NOT an example of a factor of production? a. capital b. entrepreneurship c. labor d. competition e. natural resources

d. competition

The number of people or subordinates that a manager effectively controls and directs is called the manager's span of: a. responsibility b. tasks c. accountability d. control e. delegation

d. control

Taylor Long makes furniture according to the specifications of the customer who ordered it. Each piece of furniture he makes is unique. He only makes one piece of furniture at a time. Long is engaged in: a. specialization b. mass production c. niche manufacturing d. customization e. individualized production

d. customization

Double taxation in a corporation means: a. the corporation must pay taxes twice a year b. corporations can double their earnings without higher taxes c. corporations must pay both state and federal taxes d. earnings of the corporation and dividends of the shareholders both are taxed e. none of the above

d. earnings of the corporation and dividends of the shareholders both are taxed

The _____ is the value of one currency in terms of another. a. investment exchange b. balance of trade c. favorable rate d. exchange rate e. balance of payments

d. exchange rate

Chad Dumdei quit his landscaping job in Florida and has moved to British Colombia, where he is actively seeking employment in the real estate industry. This is an example of _____ unemployment. a. fiscal b. predictable c. seasonal d. frictional e. structural

d. frictional

The development of new drugs is very expensive. For this reason Cybex, a large biotechnical company, has entered into a _____ with Austrian-owned Bios to develop a vaccine for smallpox. When the vaccine is developed or when the two biotechnical companies determine the vaccine cannot be developed using their current methodology, this relationship will dissolve. a. limited-time partnership b. C corporation c. cooperative d. joint venture e. general partnership

d. joint venture

Chipotle fast-food restaurant does not chop the lettuce and tomatoes and grate the cheese used to make its menu items, but hires someone outside the restaurant to perform these tasks. By _____ these tasks, Chipotle can keep its overhead low and concentrate its resources on taking customer orders and assembling food. a. demarketing b. unbundling c. remarketing d. outsourcing e. insourcing

d. outsourcing

The three main types of facility layouts are: a. intermittent, process, and customized b. process, product, and service c. product, service, and process d. product, process, and fixed-position e. fixed-position, variable, and product

d. product, process, and fixed-position

Which of the following is the best example of a service? a. the gallon of milk you purchased at the convenience store b. the grill on which you cook steak c. the hamburger you bought for lunch d. the experience of seeing a good play e. the license tags you purchased for your car

d. the experience of seeing a good play

All of the following are characteristics of an entrepreneurial personality EXCEPT: a. a high energy level b. creativity c. problem solving skills d. the willingness to be a follower rather than a leader e. the willingness to take risks

d. the willingness to be a follower rather than a leader

_____ are individual investors or groups of experienced investors who provide funding for start-up businesses. a. Opportunity entrepreneurs b. Venture entrepreneurs c. Entrepreneurial capitalists d. Equity entrepreneurs e. Angel investors

e. Angel investors

Which of the following is NOT one of the four functions of management? a. Leading b. Planning c. Organizing d. Controlling e. Budgeting

e. Budgeting

Why do many people fear trade and globalization? a. Trade and globalization will increase per capita income. b. Export jobs often pay less than other jobs. c. Free trade and globalization lead to increased productivity. d. An open economy spurs innovations with fresh ideas from abroad. e. Many fear trade and globalization will lead to massive job losses.

e. Many fear trade and globalization will lead to massive job losses.

_____ is the management of the production conversion process for both goods and services. a. Total quality control b. Functional management c. Specialization d. Manufacturing e. Operations management

e. Operations management

_____ management emphasizes the use of quality principles in all aspects of a company's operations. a. Critical quality b. Total commitment c. Cultural quality d. Quality teamwork e. Total quality

e. Total quality

PGE supplies all of the electricity to Portland, Oregon. PGE is an example of: a. an oligopoly b. utilitarianism c. monopolistic competition d. an oligopolistic monopoly e. a pure monopoly

e. a pure monopoly

A well-written business plan should contain: a. executive summary or company overview b. a marketing plan c. a vision and mission statement d. a management plan e. all of the above

e. all of the above

The World Trade Organization (WTO): a. is controlled by the United States b. does not yet have an effective dispute settlement procedure but will before the year 2005 c. includes all of the same countries that signed the Uruguay Round d. includes China and Russia among its members e. has emerged as the world's most powerful institution for reducing trade barriers and opening markets

e. has emerged as the world's most powerful institution for reducing trade barriers and opening markets

_______ is the sense of national consciousness that boosts the culture and interests of one country over those of all other countries. a. unionism b. federalism c. multinationalism d. domestic loyalty e. nationalism

e. nationalism

The most common form of business organization is the: a. limited partnership b. general partnership c. corporation d. cooperative e. sole proprietorship

e. sole proprietorship

When Savannah Whiterock began Bytes, a New York-based computer services company, she ran it as a sole proprietorship. As the business grew, she realized that she did not want to be personally liable for the business's debts and wanted her business accounts to be separate from her personal accounts. Therefore, she should have: a. created a general proprietorship b. found limited partners c. created an S proprietorship d. franchised the business e. started Bytes as a corporation

e. started Bytes as a corporation

A country that imports more goods than it exports is said to have a(n): a. positive balance of payment b. favorable balance of trade c. positive trade surplus d. positive trade deficit e. unfavorable balance of trade

e. unfavorable balance of trade