Business Final Exam Review

In the context of customer relationship management (CRM), a firm selling a high-ticket product to a small customer base is most likely to:

pursue a full partnership with each of its key clients.

Universal ethical standards can solve the problem of too many people viewing ethics as _____.

relative

The owners of limited liability companies (LLCs) are called members because:

?

The stockholders of a construction firm decide to start a steel company, but they want to have limited liability. After completing the business plan, they initiate the process of establishing the company by filing articles of incorporation and paying the filing fees to the state government. In this scenario, the stockholders of the firm want to start a _____.

C corporation

When people use the term "corporation" without specifying which type, they are generally referring to a(n) _____.

C corporation

In the context of marketing a product, which of the following statements is true of overpromising?

Customers will be disappointed if the product falls short of very high expectations.

A major disadvantage of primary data is that it gets frequently outdated.

False

Which of the following is a duty of a socially responsible organization toward its customers?

Following laws that prevent anticompetitive behavior such as predatory pricing

_____ perform a variety of accounting functions for local, state, or federal agencies, such as the Internal Revenue Service (IRS) and the Federal Deposit Insurance Corporation (FDIC).

Government accountants

Alfred, a human resource manager at an IT firm, reasons, "Although everyone should be given an equal opportunity, but for once it is fine to give my friend the first shot at the opening in my company because I know he really needs the job." In this context, which of the following statements is most likely true of Alfred?

He views ethics as relative.

In the context of a SWOT analysis (strengths, weaknesses, opportunities, and threats), which of the following is an example of a potential internal weakness?

Inadequate financial resources

Which of the following statements is true of contingency planning?

It focuses solely on the issues that are most probable, most potentially harmful, or both.

Which of the following statements is true of equity theory?

It is based on perceptions, which are not always on the mark.

Which of the following statements is true of job enrichment?

It is the creation of jobs with more meaningful content, under the assumption that creative work will motivate employees.

_____ provide analysis and prepare reports and financial statements for their organization.

Management accountants

Which of the following statements is true of human skills?

Managers with strong human skills can typically mobilize support for initiatives and find win-win solutions for conflicts.

In the context of a SWOT (strengths, weaknesses, opportunities, and threats) analysis of a company, which of the following is an example of an external opportunity?

New social trends in the market

Many companies use a SWOT analysis (strengths, weaknesses, opportunities, and threats) to evaluate where they stand relative to the competition. Identify a true statement in this context.

Opportunities affect a firm's performance but are typically out of its control.

Which of the following is one of the reasons why many people prefer a sole proprietorship?

Pride of ownership

Which of the following is most likely to be a first-line management title in a large company?

Section leader

Which of the following is a difference between strategic planning and tactical planning?

Strategic planning is done by top-level managers, whereas tactical planning is done by middle managers.

Which of the following is true of balance sheets?

The balance sheets of different firms vary in specifics.

Which of the following is an example of an intangible asset?

The goodwill showed by a food manufacturing company by helping its competitor at a time of crisis

In the context of strategic planning, which of the following is true of mission statements?

They provide a clear, long-term focus for an organization.

In the context of marketing research, secondary data is existing data that marketers gather or purchase for a research project.

True

_____ is the ability of goods and services to satisfy consumer wants.

Utility

The benefits of a general partnership include its _____.

ability to pool financial resources

Maslow's hierarchy of needs theory states that people:

are motivated to satisfy only unmet needs.

In the context of financial accounting, the external stakeholders of a firm:

are seldom interested in analyzing detailed accounting information about the individual departments within the firm.

In the context of balance sheets, resources owned by a firm are known as _____.

assets

The three kinds of basic financial statements that are prepared in financial accounting are:

balance sheet, income statement, and statement of cash flows.

In the context of the legal and ethical dimensions of business conduct, it is illegal but ethical to:

collaborate with other medical clinics to guarantee low prices in low-income counties.

In the context of management skills, _____ refer to the ability of managers to grasp a big-picture view of the overall organization and the relationship between its various parts.

conceptual skills

The basic rules governing how a corporation is organized and how it conducts its business are known as _____.

corporate bylaws

In the context of balance sheets, accounts receivable is an example of _____.

current assets

Expectancy theory advocates that:

employees will continue to perform only if they believe that their efforts are recognized.

In the context of the legal and ethical dimensions of business conduct, it is illegal and unethical to:

engage in sexual harassment

In the context of balance sheets, the accounting equation tells us that the value of a firm's assets must be:

equal to the amount of financing provided by owners plus the amount provided by creditors to purchase those assets.

According to Maslow's hierarchy of needs theory, esteem need refers to the need:

for self-respect and respect from others.

In the context of codes of ethics, the purpose of a written code is to:

give employees the information they need to make ethical decisions across a range of situations.

Joshua and Hubert are the co-owners of a shoe manufacturing company. They have a disagreement over company policies and business methods. Following the discord, Joshua withdraws from the company and comes under the obligation to pay a sum of $10,000—the debts of the firm that are due at the time of his withdrawal. In the given scenario, Joshua and Hubert most likely _____.

have a general partnership

Similar to a corporation, all owners of a limited liability company (LLC):

have restricted debts.

A firm considers _____ to increase size and market power within the industry.

horizontal mergers

A typical partnership agreement includes details about:

how partners will settle disagreements.

In the context of the legal and ethical dimensions of business conduct, embezzling money is:

illegal and unethical

The chairman of a welfare organization asks an employee to head a fundraising activity. The employee, however, embezzles $250,000 from the funds raised from the activity and falsifies financial records. In this scenario, the behavior of the employee is _____.

illegal and unethical

In the context of corporate restructuring, a common objective of a horizontal merger is to:

improve efficiency by eliminating duplication of facilities and personnel.

In the context of balance sheets, patents, trademarks, and copyrights are examples of _____.

intangible assets

Since sole proprietorships are extensions of their owners, they:

lack permanence.

In the context of the legal and ethical dimensions of business conduct, rewarding integrity is an example of _____.

legal and ethical behavior

Promoting high-calorie/low-nutrient foods with inadequate information about the risks is a(n) _____ practice.

legal but unethical

A chocolate manufacturing company promoted a high-calorie product without providing complete information about the risks involved in its consumption. In the context of business behavior, the company's business conduct was:

legal but unethical.

In the accounting equation, assets are equal to:

liabilities plus owners' equity.

Ronald, Jamie, Ben, and Joseph are colleagues who want to start a company of their own. All of them want to be actively involved in managing the business. However, they do not want any personal liability for any debts incurred by the company. In this scenario, they should most likely get involved in a _____.

limited liability partnership

A corporation is a separate entity from its owners where the:

owners are not personally responsible for the obligations of the company.

In the context of Maslow's hierarchy of needs theory, the scenario that reflects the fulfillment of the self-actualization needs of an employee is him or her:

participating in a campaign to feed the poor.

Ethics refer to:

sets of beliefs about right and wrong

The obligation of a business to contribute to society is referred to as _____.

social responsibility

According to Maslow's hierarchy of needs theory, social need refers to:

the need to feel connected to others

The _____ of a firm includes managers who set the overall direction of the firm, articulating a vision, establishing priorities, and allocating time, money, and other resources.

top management

Albert is the owner of a car service center. As a sole proprietor, any profit that he earns is:

treated as Albert's personal income.