INTRO BUSINESS MIDTERM

Which of the following refers to the interrelated tasks that lead an organization in pursuit of its goals?

management

Pushing the decision making function as far down the organizational pyramid allows managers to work on ________.

strategic plans

Why should corporations be allowed to generate profits?

Because the country's standard of living involves the goods and services created by profit-seeking companies.

A country has a trade surplus when the ________

value of its exports exceeds the value of its imports

________ are those activities in which a company excels and has the potential to create competitive advantages.

Core competencies

________ limit the amount of particular goods that countries allow to be imported during a given year.

Import quotas

A diagram that shows how employees and tasks are grouped and where the lines of communication and authority flow is called a(n) ________.

organization chart

Which of the following is a valid observation of corporations?

A corporation is distinct from the people running it

How are after-tax profits dispersed in a sole proprietorship?

All after tax dollars belong to the owner.

What type of exposure to liability is there in a sole proprietorship?

Exposure is unlimited and the owner's personal responsibility.

Which of the following is an advantage of buying into a franchise system?

It comes with an established business system.

Which of the following is a key advantage of incorporating a business as a sole proprietorship?

It is easy to establish and requires less paperwork than other structures.

Which of the following is a key difference between private corporations and public corporations?

Private corporations are owned by a few people, whereas public corporations can be owned by anyone who has the means to buy stake.

Which of the following best describes economic globalization?

The increasing integration and interdependence of world-wide national economies.

refers to the degree to which information flows freely within an organization, among managers and employees, and outward to stakeholders

Transparency

Which of the following is a key difference between a corporation and a sole proprietorship?

Unlike a sole proprietorship, a corporation has limited liability.

In a general partnership, ________.

all partners have joint authority to make decisions

________ refers to a resource or capability a company must have before it can start competing in a given market

barriers to entry

A(n) ________ is a framework of how a business intends to generate revenue.

business model

Organizations that focus decision-making authority near the top of the chain of command are said to be ________.

centralized organizations

The economic system that allows individuals the least degree of economic freedom is ________

communism

What key aspect of running a business includes the ability to offer valuable goods and services while contributing to society?

corporate social responsibility

Which of the following refers to the amount of a good or service that customers will buy at a given time?

demand

Because they fundamentally change the nature of an industry, ________ can be powerful enough to create or destroy entire companies.

disruptive technologies

________ are the principles and standards of moral behavior that are accepted by society as right versus wrong.

ethics

In a ________ organization, a manager usually has a wide span of control.

flat

In a ________, companies can decide what to produce, how to produce, whom to sell to, and at what price to sell.

free-market system

Which of the following is a main feature of protectionism?

governmental intervention in trade

Managerial roles are grouped into three main categories: interpersonal, decisional, and ________.

informational

The risk and reward relationship ________.

is fundamental to businesses in every modern economy

A(n) ________ is a brief declaration of what the organization aims to accomplish for customers, investors, and other stakeholders.

mission statement

If individuals and companies believe they can pursue rewards without facing the risks that should be attached to those pursuits, they are more likely to engage in irresponsible and even unethical behavior. This situation is known as a(n) ________.

moral hazard

Developing strategies, establishing goals and objectives for the organization, and translating those strategies and goals into action plans is part of the ________ function of management.

planning

________ lies somewhere between capitalism and communism, with a fairly high degree of government planning and some government ownership of capital resources.

socialism

Before establishing long-term goals, a company should understand its ________ relative to opportunities and threats.

strengths and weaknesses

Taxes, surcharges, or duties levied against imported goods are known as ________

tariffs

Corporate social responsibility refers to ________

the notion that business has obligations to society beyond the pursuit of profits

Small companies tend to differ from large ones because ________.

they can react to market changes and make decisions more quickly than larger companies

Which of the following is a quality that a successful entrepreneur is most likely to have?

views failure as a chance to grow

A person's disclosure that exposes illegal or unethical behavior by others within the organization is ________

whistle-blowing