Intro. to Business

When a country imports more than it exports, it has a(n)

unfavorable balance of trade.

What is the primary reason that so many new businesses fail?

Mismanagement resulting from lack of business know-how

Of the following, which is not considered a basic management function necessary to be an effective manager?

Selling

Jeff works for Texas Instruments. His tasks involve traveling to nearby colleges, interviewing students for hire after graduation, selecting certain ones to be invited for an office visit, and acquainting them with the facilities. He is in which phase of the HRM process?

Acquiring human resources

Jordan Baker, a top manager at United Technologies, has recently been put in charge of a new multi-million dollar project. She selects several individuals to participate in this effort and assigns each certain tasks to perform. Furthermore, she has set up a group hierarchy and indicated that all decisions must be routed through this chain of command. Jordan is exhibiting which leadership style?

Autocratic

What does double taxation mean?

Companies must pay taxes on their earnings, and then stockholders pay taxes on their dividends.

____ is the ability to produce a specific product more efficiently than any other product.

Comparative advantage

Costco hires many part-time employees but provides benefits for employees who have been with the company for a pre-determined length of time. Genesis works in the food court where she makes pizzas, hot dogs, chicken bakes, and other food that is sold through the food court. She did not understand all of paperwork she received when she started working, but when she received her tax documents at the end of the year, she noticed that she had been given stock in the company. Which of the following motivational techniques is the company using?

Employee ownership

Jacek runs several businesses simultaneously and participates in off-road racing events where he holds several national titles. He opened his first business when he was 16 and was a multi-millionaire by the time he was 25. He does business continually, taking conference calls while he works out in his gym, and carrying one or more cellphones with him while racing so he can stay in contact with the office. He has a following of 1.2 million on his Facebook page and is sought out for autographs wherever he goes. He gives to charities, sponsors events for children, and incorporates children activity centers into his business. He encourages his employees and runs intra-company contests to encourage creativity, team building, and loyalty. If one of his managers has difficulty with a problem, he is known to work as an undercover employee in that business until he fully understands what the problems are and can formulate a working solution. His employees are under the impression that he never sleeps, never tires, and never stops working. He has a difficult time understanding why his employees do not have the same level of passion for their work. Which of the following best describes Jacek's leadership style?

Entrepreneurial

A government agency with the power to investigate complaints of discrimination and to sue firms practicing employment discrimination is known as the

Equal Employment Opportunity Commission

Men and women must be paid the same wage when they are doing equal jobs is required under the

Equal Pay Act.

Patrick manages a convenience store. He is responsible for scheduling employees, receiving and stocking inventory on the shelves, counting the cash, making deposits, and reconciling the cash receipts against the contents of the registers. He likes working with the employees and doesn't mind handling the inventory, but does not enjoy the part of the job dealing with the cash and cash receipts. Of the resources Patrick must oversee, which one does he least enjoy?

Financial resources

Which of the following stages is a part of the team development process?

Forming Performing Norming Adjourning NOT Remanding

At one time, AT&T and T-Mobile wanted to merge but were prevented from doing so by the Justice Department. The government maintained that to permit the merger would eliminate choices for the consumers because these companies represented the majority of the cell phone service industry. What is the name given to this kind of merger?

Horizontal merger.

The most effective form of business organization for raising capital is the

corporation.

A performance appraisal serves all of the following purposes except which of the following?

It allows the employee to see where he or she ranks against all the other employees in the company.

All of the following are franchise establishments

McDonald's Holiday Inn Avis Dairy Queen Walmart is NOT

Which of the following examples least represents the definition of social responsibility?

Military members pledge a portion of their salary to the United Way.

Quarrels among business associates have become common. The associates quarrel over what products the firm should sell, division of authority, selection of personnel, whether to bring family members into the business, whether to expand, and who is contributing most to the firm's success. Such feuding, which damages business relationships, occurs most frequently in what form of business?

Partnerships

John loves coffee. John will drive ten miles out of his way in the morning to get a cup of coffee at his favorite coffee shop so he can drink it on the way to work. For two years John has begged the owner of the coffee shop to open one in the shopping center near his home so he and others in his community can enjoy the delightful aroma, titillating taste, and velvety smoothness of their coffee creations. What utility is John seeking?

Place

Which of the following statements is false in relation to choosing a supplier?

Purchasers should focus on having only one supplier for each material needed.

Mandy Bush decides to start a residential landscaping business. How would this business most likely be classified?

Service business

Which of the following statements is not true about small businesses?

Small businesses create cyclical unemployment.

The concept of sustainability focuses on which of the following?

The ability to maintain or improve standards of living without damaging natural resources for present and future generations

Mitchell has worked for a very large company for three years. During lunch one day he stood at the elevator and read the building directory. He noticed that all of the accounting staff for his business was grouped on one floor, all of the legal personnel were on the floor above his, the CEO and his staff were on the top floor, the marketing and advertising departments on the floor under his, and the sales department on the floor under marketing and advertising. How is Mitchell's business departmentalized?

This business is departmentalized by function.

The expectancy theory says that people are motivated

UNSURE; EDIT

Which of the following organizations would be considered a small business?

Wholesaler with 50 employees

You are the decision maker for purchasing office equipment in your organization. One sales representative privately offers you season tickets to the Texas Rangers if you help him out. This tactic is

a bribe.

A reduction of the value of a nation's currency relative to the currencies of other countries is called

a currency devaluation.

In the first set of Hawthorne experiments dealing with lighting, the main conclusion was that

a sense of involvement affects production.

A specific amount of money paid for each hour of work is called

a wage.

A committee created for a specific short-term purpose is called a(n)

ad hoc committee.

MasterCard sends a customer a memo that discloses the true cost of borrowing with each billing statement. It does this because it realizes that the customer has the right to

be informed.

For the U.S. government to provide services, it collects revenue from

both households and businesses in various forms of taxes.

You were asked to write a report to management indicating the primary advantage of external recruiting. You chose to focus on external recruiting's ability to ____ as its primary advantage.

bring in new perspectives and varied backgrounds

A team which brings together employees from different departments within an organization to develop a strategy for accomplishing a specific task is called a ___ team.

cross-functional

All of the following are reasons people go into business

desire to create a new business. willingness to accept a challenge. desire for independence. desire to determine one's own destiny. NOT: guaranteed return on investment.

Once a manager has identified a problem, he or she can generate alternatives to that problem. After this is done, the manager

determines the best alternative.

The industry concerned with the movement of goods from producer to consumer is

distribution.

Walmart is incorporated in Arkansas, the state of its origins and headquarters. Within Arkansas, Walmart is classified as a(n) ____ corporation.

domestic

China is selling school supplies in the United States for very low prices, even lower than the prevailing prices in China, and thus making it extremely difficult for American manufacturers to compete. This is referred to as

dumping.

In addition to political considerations, all of the following are reasons for trade restrictions

equalizing a nation's balance of payments. protecting new and weak industries. protecting the health of citizens. protecting national security.

The economic term used to describe the government's influence on savings and changing the levels of government spending is

fiscal policy.

Foreign licensing is similar to

franchising.

You have decided to open a pet store and have engaged in a contract with Dog N' Cat Centers, Inc. You and the company have drawn up an agreement that allows you to use the company's name and its proven method of doing business, to receive training, and to use its advertising materials. In this agreement, Dog N' Cat is the ____ and you are the ____.

franchisor; franchisee

​Legislation requires that all non-salaried employees who work more than 40 hours a week be paid over-time for the week. This legislation is an example of

government's role in encouraging ethics.

All of the following are advantages that small businesses have except

greater potential for making a profit.

According to Theory Y by McGregor, managers think people

have the ability to help accomplish an organization's goals.

One primary difference between services and the production of goods is that services are consumed ____ whereas goods can be ____.

immediately; stored

Business ethics

is the application of moral standards to business situations.

The process of determining the relative worth of various jobs in a firm is called

job evaluation.

Harley-Davidson employs a method of inventory control demanding that suppliers deliver parts and raw materials to Harley's production facility just as they are needed and in exactly the right amounts. This type of inventory control is known as

just-in-time inventory control.

During the design planning stage for its new appliances, Torr, Inc. needs to determine how many different product variations there will be. This is the same as determining the product

line.

Coordinating people and the other resources of an organization to achieve the goals of the organization is the process of

management.

The quantity that customers will purchase at the going price is called the

market demand.

A line-and-staff structure tends to work best for ____ organizations.

medium and large size

Grant is a division manager for a large chemical company. He frequently works to implement the strategies set by the CEO and supervises the activities of the supervisors under him. Grant is a ____ manager.

middle

The Federal Reserve uses ____ when it lowers the interest rate charged to banks on short-term loans.

monetary policy

Under Herzberg's theory, when ____ factors are present in the work environment, they act as satisfiers; when ____ factors are absent, they act as dissatisfiers.

motivation; hygiene

The choice of a particular location for production facilities

often involves balancing the variables.

A SWOT analysis is an identification and evaluation of a firm's strengths, weaknesses, ___, and threats.

opportunities

The simplest form of business owned and operated by one person is called a(n)

sole proprietorship.

Levels of Maslow's Hierarchy of Needs

physiological, safety, love/belonging, esteem, self-actualization

The production and operations manager at a large shoe factory in Lawrence, Massachusetts, notices that the total number of hours worked by production employees has increased 12 percent, while the number of pairs of shoes ready for shipping has dropped 6 percent this year over last year. This means

productivity has decreased.

Common stock carries all the following rights except the right to

receive part of the profit before other classes of stock.

The primary objective of the World Trade Organization is to

remove barriers to trade worldwide.

A social audit is a

report of what a business has done and is doing about social issues.

One's duty to do a job or perform a task is called

responsibility.

Title VII of the Civil Rights Act of 1964 addresses the issue of workplace discrimination based on all of the following

sex. race. color. religion. NOT age.

Monopolistic competition is a market situation in which

similar but not identical products are available.

Carlos Landry finds he has less and less energy to go to work each day. On average he misses two days a week. Carlos may be suffering from boredom, which is one negative side effect of job

specialization.

Kraft combines elbow macaroni, cheese, and cardboard to make packages of Kraft Macaroni and Cheese. This most closely resembles a(n) ____ process.

synthetic

The right to be heard implies that companies should listen to consumer complaints and

take appropriate action.

Specific skills needed to accomplish specialized activities such as drafting and welding are known as ____ skills.

technical

An organization chart reveals

the company's organizational structure.

A hostile takeover is a situation in which

the management and board of directors of the targeted firm disapprove of the proposed merger.

The number of subordinates reporting directly to one manager is called

the span of control.

All of the following are ways to export a product to a foreign market

using an export-import merchant. using an export-import agent. establishing a foreign sales office. establishing a foreign sales branch.

​One of the common errors made by managers appraising employees is

​being unfair.

​When a manager hears that inaccurate information that may be harmful to the company is being spread through the grapevine, the manager should

​immediately take action to correct the inaccurate grapevine information to minimize damage.