business management

Which of the following statements is true of communication barriers?

They can arise in a number of different forms.

Identify a true statement about angel investors.

They invest in promising start-up companies because they want to make money for themselves.

Which of the following is a characteristic of entrepreneurs?

They risk their time, money, and other resources to start and manage their business

Although a trade deficit signals the wealth of an economy that can afford to buy huge amounts of foreign products, a large deficit can be destabilizing.

True

public accountants provide services such as tax preparation, external auditing, or management consulting to clients on a fee basis.

True

In the context of funding options for small businesses, the _____ assists entrepreneurs by partially guaranteeing loans from local commercial lenders.

U.S. Small Business Administration

The government of Laslow, an Asian nation, earned more revenue than its total expenditure in the last fiscal year. Given this information, the government of Laslow incurred a _____.

budget surplus

Melvin and Neil run a pawnshop in their neighborhood. They offer loans to individuals in exchange for personal items of higher or equal value, which are used as collateral. If an individual is unable to repay the loan, Melvin and Neil then sell these items at higher rates. In this scenario, Melvin and Neil's pawnshop is an example of a _____.

business

Melvin is the co-owner of a gadget store. Unlike his partner who only provides monetary support to the business, Melvin is responsible for handling the daily operations of the store and bears complete personal liability for any debts incurred by the store. Melvin and his partner, however, share the profits of the store equally. In this scenario, Melvin is a _____.

general partner

Amanda has always been inclined toward baking and wants to open her own bakery. She takes a loan of $20,000 from the bank and starts a bakery in her hometown. In the context of the four forms of business, Amanda most likely _____.

has a sole proprietorship

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

Unlike a sole proprietorship, a corporation:

is considered to be a legal entity that is separate and distinct from its owners.

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

legal but unethical

In the United States, people come from such diverse backgrounds that establishing broad agreement on specific ethical standards can be daunting. In this situation, a given country's _____ provides a solid starting point for examining ethical standards.

legal system

Technological tools such as the Internet and email have:

made it easy for small business owners to manage their firms on the go.

Tasmeen owns a retail business along with four other people. Like the other owners, Tasmeen is not personally responsible for the debts of the company. Her personal assets are thus protected in case the company incurs losses. Given this information, it can be assumed that Tasmeen _____.

owns a corporation

A(n) _____ is a voluntary agreement under which two or more people act as co-owners of a business for profit.

partnership

Ethics refer to:

sets of beliefs about right and wrong

Jovi's Corner, a toy store, abruptly closes down after the death of its owner. Without an heir or an experienced person to manage the store, Jovi's Corner is shut down, and the property is sold off to another party. The profits are donated to an orphanage. In the given scenario, Jovi's Corner is most likely an example of a _____.

sole proprietorship

Macroeconomics involves the study of:

the gross domestic product of a country.

Ronnie is the owner of a pet store and manages the store by himself. Any profit that Ronnie's store earns is:

treated as Ronnie's personal income.

Lowell runs a unisex salon and has six 10-hour workdays. If a customer requests him to stay open on the seventh day, he always obliges. He also provides home services if requested. Which entrepreneurial characteristic is most likely highlighted in the given scenario?

Energy

In the context of monetary policy, the money supply includes credit cards.

False

The key disadvantage of foreign outsourcing is dramatically higher labor wages.

False

Which of the following statements is true of international trade?

It offers companies an invaluable source of new ideas.

Which of the following statements is true of effective business communication?

The communication is most effective when a speaker is able to extensively use jargon in his speech. The speaker should seek and understand feedback from the speaker's audience.

Grettzee, a musical instruments manufacturing company, imports high-quality maple wood from Resumbro, a South Asian country where maple is found in abundance. Which of the following is most likely to have influenced Grettzee's decision to import raw materials from Resumbro?

Access to factors of production

Which of the following countries exemplifies the concept of opportunity cost?

An Asian country that increases its production of sugar by decreasing its production of cocoa

Richard, the sales manager of a toy company, wanted to put forward an idea for improving the sales of the products to the board of directors. However, when he was presenting the idea in the monthly team meeting, the board members were not able to concentrate as they got distracted by Richard's slouched posture, his inability to look them in the eye, and his constant foot movement. In the given scenario, which of the following communication barriers prevented the board members from paying attention to Richard's idea?

Body language barriers

A business email should have as many attachments as possible to communicate a message.

False

Capitalism is an example of a planned economy.

False

Despite their huge populations, China and India represent a much smaller opportunity in terms of size and economic growth.

False

Economists declare an official recession when gross domestic product decreases for six consecutive quarters.

False

In face-to-face communication, the verbal content of a message conveys much more meaning to the listener than the tone of voice and body language.

False

In the context of business presentations, to listen better one should begin speaking the moment the presenter stops talking.

False

In the context of monetary policy, when the Fed reduces the discount rate, banks will have to obtain funds at a higher cost.

False

Suresh quits his nine-to-five job at a multinational company and starts his own event management company. In his new company, he does not practice a nine-to-five work regime. Instead, he organizes meetings with clients by making appointments that favor his schedule. Which of the following advantages of entrepreneurship is highlighted in the given scenario?

Flexibility

The finance and the marketing department of a company are required to collaborate on a project. However, the two teams face significant challenges while trying to communicate with each other because of the use of jargon specific to each department. In the given scenario, which of the following communication barriers do the teams face?

Language barriers

In the context of limited partnerships, which of the following is an aspect that differentiates limited partners from general partners?

Participation in the management of a company

Which of the following is an advantage of general partnerships?

Partners capitalize on complementary skills.

Mabel has a business idea of starting a store that would only sell hair products. Although she needs to raise capital to start her business, she does not want to share the ownership of her firm with anyone else. With a good appetite for risk, which of the following financing resources would be most ideal for her to start her business?

Personal credit cards

In which of the following ways do public accountants differ from management accountants?

Public accountants conduct external audits, whereas management accountants analyze the financial statements of their own organization

Alexis decides to check with his accountant as to how much money his company owes to the raw materials supplier. To determine this, Alexis should ask the accountant to provide him with the company's balance sheet.

True

American culture associates youth with creativity and independence.

True

Balance of trade incorporates trade with all foreign nations.

True

Foreign licensing helps circumvent government restrictions on importing in closed markets.

True

Gross Domestic Product (GDP) levels tend to be somewhat understated, since they don't include any illegal activities, which can represent a significant portion of some countries' production.

True

In a capitalist economy, private-sector businesses are free to decide how much they will charge for their products.

True

Intangible assets are assets that have no physical existence—you can't see or touch them—but they still have value.

True

Studies cited in The Wall Street Journal's Career Journal suggest that during face-to-face communication, 38% of meaning comes from tone of voice.

True

When business drives up the standard of living for people worldwide, it contributes to a higher quality of life.

True

Ophelia opened a boutique that specializes in creating custom trousseaux for brides. She conceived the idea in her senior year at school, and despite receiving criticism for the idea, she went ahead and opened the boutique. Which entrepreneurial characteristic is highlighted in the given scenario?

Vision

Mark and Augustine are employees of an advertising firm. Following a personal disagreement, Augustine steals Mark's idea for an advertisement and presents it as his own in a meeting. In this scenario, Augustine is guilty of _____.

an ethical lapse

In the event that a large company has to downsize, the middle-aged workers who are laid off find it difficult to find new jobs. When such workers decide to start their own businesses, they:

are called necessity entrepreneurs.

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 history of American business, the _____ emerged in the second half of the 1800s, by building on the foundation of the industrial revolution.

entrepreneurship era

Lewis Gretsz, the owner of a small railroad company in the 1860s, started gaining more influence and money as his business started to flourish to a point where he began controlling the entire northern half of railroad services. He followed a ruthless and cunning business strategy that involved exploiting workers and decimating the environment. In the context of the history of American business, Lewis Gretsz most likely belonged to the _____.

entrepreneurship era

The management of a steel manufacturing company decides to set up a new plant in a rural area. However, this would create waste management issues for the company. On the other hand, the company would incur higher costs if it sets up the plant in another area. The management thus finds itself in a situation where both the actions will have a negative consequence. This scenario exemplifies a(n) _____.

ethical dilemma

The direct labor method of costing is a technique to assign product costs based on links between the daily tasks of a company that drive costs and the production of specific products.

false

To give the company's stockholders, creditors, and other external stakeholders an accurate idea of the company's overall performance, Rowensport Corporation, a multinational company, releases statements that contain details of the company's profits and losses over the past five years. In this scenario, the company is most likely involved in _____.

financial accounting

Compared to the United States, China and India have:

higher gross domestic product growth rates.

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

illegal and unethical.

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

legal and ethical behavior

Research from the Ethics Resource Center suggests that _____ has more influence than any other variable on the ethical conduct of individual employees.

organizational culture

During his English class, Ingrid was struggling to focus on the presentation given by his professor as the classroom was freezing cold. Also, the professor's table was creaking. In this scenario, both the cold atmosphere in the classroom and the creaking table are _____ to communication.

physical barriers

During this era of American business, leading-edge firms look beyond each immediate transaction with a customer and aim to build long-term ties.

relationship era

The chief financial officer of NoveauNoir Production Company requests his accountant, Felipe, to prepare a customized report of the cost overruns at the company's production facility in Los Angeles. In this scenario, Felipe is a managerial accountant.

true

Value is the relationship between the price of a good or a service and the benefits that it offers its customers.

true

During the production era, managers focused mostly on customer satisfaction and not on production efficiency.

False

The primary reason people choose to become entrepreneurs is to:

earn more money.

Debbie, along with Mick and Rory, decided to start a new catering business. She invested her time, money, and efforts in the project, and she directly managed the business development process. In this scenario, Debbie is most likely a(n) _____.

entrepreneur

Flickczar, a film production company in the United States, sells the distribution rights of a film to its distributors in underserved areas at rock-bottom prices, while it sells the rights of the same film to distributors in other areas at normal prices. In the context of business behavior, Flickczar's business practice is _____.

illegal but ethical

The management of Lovelo, a candy manufacturing company, comes across a case of employee theft in their inventory. In this case, the company should seek the help of a(n) _____ to look into the matter.

internal auditor

In the context of the core values identified by the Character Counts organization, being honest, not deceiving, cheating, or stealing, and doing what you say you'll do represent the universal ethical standard of _____.

trustworthiness

The _____ was an $825 billion economic stimulus package, passed by Congress, designed to turn the economy by cutting taxes, building infrastructure, and investing in green energy.

American Recovery and Reinvestment Act

In top-down budgeting, top management prepares the budget with the involvement of the middle and supervisory managers.

False

Socialist economies tend to have very low taxes.

False

The value of all natural resources tends to rise with low demand, high supply, or both.

False

Who among the following is the most appropriate person to start his or her own venture?

Gita, who has been an event manager for five years but discontinues her job as she wants to spend enough time with her one-year-old child