Intro to Business Final Exam Questions

The principles and standards that determine acceptable conduct in business organizations are referred to as

Business ethics

Which of the following were merged into one market by the North America Free Trade Agreement (NAFTA)?

Canada, Mexico, and the United States

___ is the negotiation process through which management and unions reach an agreement about the compensation, working hours, and working conditions for concerned employees

Collective bargaining

Marketing concept: what is the first step a business must take?

Find out what consumers desire

Abigail is an animal lover and vegetarian. Frustrated by trying to find vegetarian substitutes for commonly needed items, she has started her own vegetarian boutique. Her store sells vegetarian food, shoes, toiletries, and many other items. Which advantage of small-busines ownership is this scenario most closely related to?

Focus

A _____ is best described as any independently owned and operated business that is not dominant in its competitive area and does not employee more than 500 people.

Small business

The public's opinion about the environment is a ____ that influences the marketing environment

Social force

All activities involved in obtaining and managing raw materials and component parts, managing finished products, packaging them, and getting them to customers are part of

Supply chain management

Buzz marketing

Talking up the product

Sue hired an attorney to help draft a purchase and sale agreement for her new home. The home is an example of a

Tangible item

Controlling is

The process of evaluating and correcting activities to keep an organization on course

Managers make decisions about..

The use of an organization's resources and are concerned with planning, organizing, directing, and controlling organization's activities

Email communication

Using work e-mail to send personal info may be against policy

A customer's subjective assessment of benefits relative to costs in determining the worth of a product is known as

Value

Primary function for organizational chart

Visual display of organizational structure

Businesses must first be responsible to their _____, who are primarily concerned with earning a profit.

Owners

A _____ has been defined as "an association of two or more persons who carry on as co-owners of a business for profit"

Partnership

_____ involves taking someone else's work and presenting it as your own

Plagiarism

Service organizations must build their operations around good execution, which comes from all of the following EXCEPT

Providing services that can be saved, stored, resold, or returned

Change of loss associated with marketing decisions

Risk

___ involves changing behavior and encouraging appropriate actions by relating the consequences of behavior to the behavior itself

Behavior modification

Mario Autos Inc. measures and evaluates the quality of its cars and services against the market leaders in the automobile industry. Wherever there is a gap, Mario Autos Inc. tries to cover that gap by imitating the best practices of these market leaders. This is known as

Benchmarking

____ are nonfinancial forms of compensation provided to employees

Benefits

Jancy and Kevin are competing for a promotion. Hoping to sway her manager to promote her over Kevin, Jasmine gives her manager an expensive watch. This is an example of

Bribery

Arnold approached a bank to get a loan for business he planned to launch later that year. He explained his business idea and its capital requirements to the bank manager. The manager asked Arnold to provide a formal document that included a rationale for the business, an explanation of how it will achieve its goals, an analysis of the competition, and estimates of income and expenses, among other information. Which of the following documents does the bank expect from Arnold in this scenario?

Business plan

In the manufacturing sector, small businesses sometimes have an advantage over large firms because small businesses

Can customize products to meet specific customer needs and wants

___ employs specialized computer systems to actually guide and control the transformation process of inputs into outputs

Computer-assisted manufacturing

The management at Links Inc. is faced with a strike threat from union members over a dispute concerning working hours for employees. The disputing parties approach a neutral third part to ensure that the discussions between them are carried forward. The third party, however, has no formal power over union representatives or over management and has a goal of keeping the negotiations going. Which of the following processes is best exemplified in the scenario?

Conciliation

Which of the following is MOST true about product availability in a communist system?

Consumers have a limited choice of goods/services

ABCD Corp takes great pains to make sure it meets the legal, ethical, economic, and voluntary responsibilities expected from its stakeholders. This company is demonstrating

Corporate citizenship

A(n) _____ is a legal entity, created by the state, whose assets and liabilities are separate from its owners

Corporation

Hwan was responsible for writing a document that provided guidelines and principles to help employees act in an acceptable, ethical manner. This document is called

A code of ethics

North Farm Society is an association of farmers from rural communities. Its agenda is not to make profits but to help its members market their produce and purchase large quantities of fertilizer, seeds, and other supplies at discounted prices. Thus, North Farm Society is an example of

A cooperative

Legal Partners Inc. is looking to hire a lawyer, so it has posted the job in several legal publications. In its ad, the company requests applicants who have completed law school and passed the bar examination, have courtroom experience, and are confident and hardworking. This describes

A job specification

Which of the following forms of business ownership provide limited liability but is taxed like a partnership?

A limited liability company

Catalina owns a small restaurant and is solely responsible or its debts and liabilities. She is also entitled to all the profits the restaurant makes after paying of taxes and other expenses. Her business is an example of

A sole proprietorship

Judy has realized that she does not like working for others. She wants to open a business in which she will have maximum control and the least interference from government regulations. Which of the following forms of business is best suited for Judy's needs?

A sole proprietorship

U.S. exports to China have been rapidly increasing but not fast enough to offset the imports from China. This means that the United States has

A trade deficit

A mining company in Malyia that possesses the only mine where a specialty ruby can be found has

Absolute advantage

According to Herzberg's theory, the presence of which of the following factors is likely to motivate employees though their absence may not result in dissatisfaction?

Achievement

Mi Sun is a taekwondo expert who starts her own martial arts training academy. She conducts taekwondo classes for women and teaches them the art of self-defense. Mi Sun can be regarded as

An entrepreneur

An intermediary who handles international transactions for other firms is acting as

An export agent

Which of the following is an argument that supports social responsibility?

As members of society, businesses and their employees should support society through taxes and contributions to social causes.

Actual performance of a service provider's product typically occurs

At the point of consumption

Planning is

Determining an organization's objectives and deciding how to accomplish them

_____ are profits of a corporation that are distributed in the form of cash payments to stockholders.

Dividends

Organizing

Dividing work into small units and assigning it to individuals

Which of the following laws reformed the financial industry and offered consumers protection against complex and/or deceptive financial products?

Dodd-Frank Act

Delegation of authority

Does not relieve a superior of accountability for a delegated role

Which of the following statements is true about business and profits?

Earning profits contributes to society...

_____ is the study of how resources are distributed for production of goods/services in a society

Economics

Sue and Christy are business partners, and their company manufactures portable solar panels. They initially started the business with their savings. However, now the company plans to expand its operations, and the required amount of capital cannot be raised through savings or by reinvesting profits. Thus, the partners have decided to sell stock in their business to family members, friends, and employees. Which of the following sources of capital have Sue and Christy planned to use for the expansion of their business?

Equity financing

June learned that although she and Jane were both hired as part-time sales clerks at the same time and have similar backgrounds, Jane is paid $1 more per hour. June decided to stop clearing dressing rooms on her shift because she thinks the pay is unfair. This scenario demonstrates

Equity theory

Javier works at a grocery store. He started six months ago as a bagger, but recently, his boss recognized his hard work, promoting him to cashier and giving him a raise. Javier's promotion and raise are examples of_______

Extrinsic rewards

For most organization, the ultimate objective is

For the produced outputs to be worth more than the cost of inputs

Which of the following can be best defined as a form of licensing in which a company agrees to provide another company with its name, logo, methods of operation, advertising, products, and other elements associated with it in return for a financial commitment and the agreement to conduct business in accordance with its standard of operations?

Franchising

___ refers to standardizing products by dividing them into subgroups and displaying and labeling them so consumers clearly understand their nature and quality

Grading

Customer deparmentalization

Groups employees based on whether they are going to handle sales account or wholesale customer, regular customer, first-time buy, or one time buyer

Kim, Diana, and Courtney are starting their own after-school tutoring business, and they are drafting articles of partnership. All of the following are issues they should consider EXCEPT

How to manage customer information

If an employee's primary function in an organization is transforming resources into goods and services, then he or she is involved in

Operations management

_____ is the transferring of manufacturing or other tasks - such as data processing - to countries where labor and supplies are less expensive

Outsourcing

Marketing strategy:

Plan of action for developing, pricing, distributing, and promoting products that meet the needs of specific customers

Foreign trade policy

Political environmental force

Key element of the marketing mix that directly relates to the generation of revenue

Price

Business differs from nonprofit organizations in that a business's focus is on

Profit

Which of the following statements is true about tariffs and trade restrictions?

Protective tariffs allow more expensive domestic goods to compete with foreign ones

Teams motivate workers by

Providing internal and external awards, boosting productivity, and cutting cost

If an organization fosters and values workforce diversity, it is most likely to

Reduce conflict among employees of different cultural groups

Organizational culture

Refers to a firm's values, beliefs, traditions, rules and philosophies

Jason owns a barbershop that specializes in men's haircuts and shaving. This an example of a

Service business

Tactical plans

Short range plans covering period of 1 year or less, implements activities into the strategic plans

Growing up, Casey noticed that many families in his community struggled to make ends meet and provide for their children's education. As a result, after he finished school, he started a business to provide for their children's education. As a result, after he finished school, he started a business to provide low-cost tutoring and scholarship opportunities for low-income families in his community. As his company has grown, Casey has been able to extend free tutoring and college scholarships to five impoverished students per year. Casey is a

Social entrepreneur

The term ____ refers to a business's obligations to maximize its positive impact and minimize its negative impact on society

Social responsibility

_____ is an economic system in which the government owns basic industries

Socialism

First-line managers

Spend most time with employees and much use

All the groups that have an interest in an organization's success and outcomes are known as the organization's

Stakeholders

Better Stuff Inc. is a contract manufacturer of 32GB USB flash drives. All USB devices sold under the brand name Better Stuff are identical to each other and are of the same quality. This is an example of

Standardization

Becky works in a factory that produces dolls and other toys. To improve productivity, Becky's manager broke down each job into its component tasks, determined the best way to perform each task, and specified the output to be achieved by each worker performing the task. As a result, Becky is expected to add arms and legs to 50 dolls per day. She is paid $2.50 per doll, but if she exceeds 50 dolls in a day, she receives an additional $1.50 per doll. This scenario demonstrates

The classical theory of motivation

Why do many firms have a policy of giving first consideration to their own employees?

The cost of hiring current employees to fill job openings is inexpensive

What was the ultimate result of the Hawthorne studies?

They marked the beginning of a concern for human relations in the workplace

_____ is best described as the lack of funds to operate a business normally.

Undercapitilization

Which of the following is the best definition of a merger?

When two companies combine to form a new company

Equilibrium price

Where the supply curve and demand curve intersect

Which of the following is true of wholesalers?

Wholesalers provide both goods and services to producers and retailers

Mary, a manager at a publishing house, follows McGregor's Theory Y approach to management. She is likely to assume that

Workers will exercise self-direction and self-control

All of the following are results of turnover, when employees quit or are fired and must be replaced by new employees, EXCEPT

More employees working remotely

_____ gather information and conduct research to determine what customers want.

Marketers

Mary is the owner of a small business... Who is responsible for financial decisions?

Mary

Advantage of decentralization

May increase an organization's productivity

All of the following are ways to retain good employees EXCEPT

Micromanaging employees

Thelesia has abundant railroads, highways, ports, airfields, utilities and power plans, schools, hospitals, communication systems, and commercial distribution systems to support its economic activities. This means Thelisia has a strong

Infrastructure

_____ is the buying or selling of stocks by insiders who possess material that is still not public

Insider trading

Which stage of the employee selection process allows management to obtain detailed information about an applicant's experience and skills, reasons for changing jobs, and an idea of whether the person would fit in with the company?

Interviewing

The term ___ refers to all raw materials, components, completed or partially completed products, and pieces of equipment a firm uses

Inventory

Which of the following is an advantage that corporations provide as a form of business ownership?

It is easy to transfer ownership in corporations

Taylor is an independent contractor in the plumbing industry. He receives work from several companies and individual customers. There are often multiple ways to fix a plumbing problem, and, when given the option, Taylor sometimes chooses to use the fastest and easiest solution rather than the best possible solution. What might explain Taylor's tendency to avoid doing what he should do?

Lake of motivation

Which of the following can be best defined as a trade agreement in which one company allows another company to use its company name, products, patents, brands, trademarks, raw materials, and/or production processes in exchange for a fee or royalty?

Licensing

A characteristic of search firms known as headhunters is that they

Look for qualified candidates who are already working for other companies

Example of strategic planning

Making a company's objective to expand internationally over two years

Which of the following is a true statement about laws and regulations in international business?

Many legal rights that Americans take for granted do not exist in other countries