Intro to Business Final

Understanding that Arab businessmen tend to stand face to face when holding a conversation reveals the importance of knowing another culture's use of

body language

CPA stands for

certified public accountant

The most common ethical issue identified by employees is ____.

conflict of interest

Which of the following organizational forms is most expensive to set up?

corporation

____ resources are also known as labor

human

A bond

is a current liability

The first step in the control process is to

measure actual performance

If a company's goal is to develop an image of having very high-quality luxury products, it should employ a

prestige pricing strategy

______ is the most flexible element of the marketing mix.

price

Accounting

records, measures, and interprets financial data

A primary reason for using standardization is to

reduce production costs

When Bill Wilson became a father he became increasingly interested in health and began to look for household items that were safe for use around young children. His new perspective is related to his

reference groups

The Federal Reserve System was established by Congress in 1913 to

regulate the banking industry

Which of the following is not part of organizational culture?

religion

The ______ sector accounts for the majority of jobs in the United States.

service

Consumer consumption patterns are changing in all of the following ways except

slowly

The decision-making process in a partnership tends to be faster when the partnership is

small

The majority of all new jobs created in the United States in recent years were generated by

small businesses

echo boomers

the generation of Americans born between 1977 and 1994

In a socialist system, citizens are dependent on _________ for many goods and services.

the government

The most important source of funds for any new business is

the owner

The financial value placed on an object involved in an exchange is

the price

It is especially difficult to measure quality characteristics when

the product is a service

Perhaps one of the most significant strengths of small businesses is

their ability to innovate and bring significant changes and benefits to customers

Mary called her work group together and presented a problem to them: They need to accomplish some extra work in less time than usual. Her employees suggest a plan for handling the situation, and she accepts it. According to McGregor's Theory, Mary could be described as

theory Y manager

Bryan thinks their plant resale company should be a corporation because

they would have limited liability and seem larger

Having analytical skills means that a manager is able to do all of the following except

think in abstract terms

The most widely used source of short-term financing is

trade credit

When an organization hauls canned goods from the manufacturer to grocery stores, it is involved with which marketing function?

transporting

A marketing channel is a group of marketing organizations that move products from producers to consumers.

true

A marketing information system is a framework for accessing information about customers.

true

A person's buying behavior may be affected by his or her social roles.

true

An estimated 90% of illegal software sharing is done by businesses.

true

E-business has had much more impact in certain industries where the cost of business and customer transactions has been very high.

true

Motivation explains why people behave as they do.

true

New product ideas can come from customers.

true

Participative management programs are becoming more popular as a means to boost productivity and efficiency.

true

Ethical violations destroy

trust

The 140-character posts on Twitter are called ____ and can be used by marketers to build customer relationships.

tweets

The lack of funds to operate a business normally is called

undercapitalization

Marketing research is

used to guide marketing decisions

Factors of production are

used to produce goods and services

To carry out its function of controlling the supply of money, the Federal Reserve Board

uses monetary policy

Persons or organizations that agree to provide some funds for a new business in exchange for ownership interest or stock are called

venture capitalists

Your textbook uses the term small business to refer to an owner-managed business that employs not more than

500 people

Which segment of the population is one of the wealthiest in the U.S.?

Baby boomers

Theories X and Y are most closely associated with

Douglas McGregor

The person primarily associated with Theory Z is

William Ouchi

An example of a product distributed through Channel B, producer to retailer to consumer, is

a chair from target

Economic expansion occurs when

an economy is growing and people are spending more money

A small business's ability to focus on narrow niches can help it develop

an enviable reputation for quality and service

To start any business you must first have

an idea

Frederick Taylor

analyzed jobs to improve efficiency

One advantage that small businesses have over large businesses is that they

are better able to focus on a few key customers

The legal documents that identify the basic agreements between partners are called

articles of partnership

A(n) ________ leadership style is best for stimulating unskilled or unmotivated employees.

autocratic

Which of the following reduces the cost of handling bank transactions and are found in banks, airports, and other public places?

automated teller machines

_________ and __________ are important measures to financial managers because they need to know how their stocks are performing compared to other stocks.

averages, indices

7-UP, Cherry 7-UP, and Diet 7-UP are products in Dr. Pepper Snapple Group's

7-UP product line

The person primarily associated with the Hawthorne Studies was

Elton Mayo

The balance of payments includes all the following except

NOT - a country's balance of trade

When implementing a decision, management should be ready to deal with:

NOT - employee confusion

Teams

NOT - have a strong, clearly focused leader

Which of the following is not a common pricing objective?

NOT - survival

In the future, most significant competitiveness gains will come from improvements in _____.

NOT - transaction speed

After accepting a position at IOWatch, Paul realized quickly that he did not have sufficient experience in _________________.

NOT - working for a corporation?

Following the interview, the next stage of the employee selection process usually involves

NOT reference checking testing

Some larger corporations have acted like small businesses from their inception with great success. Which airline is a famous example?

Southwest Airlines

Because a strike has partly shut down a company's operations, management closes down the rest of the plant so that none of the employees can go to work; this is

a lockout

Which of the following is not one of the dimensions of social responsibility?

altruistic

The money used to start a business and keep it running is also called

capital

A permanent, formal group that performs a specific task is a

committee

A mortgage is an example of

debt financing

When market conditions change rapidly, a small business usually has fewer layers of management to work through in making decisions. This advantage of small business is

flexibility

Small businesses usually only have one layer of management, making them more ______ and able to adapt to market demands.

flexible

A corporation doing business outside the state in which it is chartered is known as a(n)

foreign corporation

A product's profits peak and start to decline during which of the life cycle stages?

growth

When two companies combine to form a new company, it is called a(n)

merger

Which of the following is not an advantage of small-business ownership?

over-optimism

____ is the primary goal of business

profit

Common stockholders do not have the right to

receive dividends before preferred stockholders

Consumers spend very little time planning where to buy convenience products.

true

Echo boomers

were born between 1977 and 1994

The 52-week high and low are the highest and lowest prices, respectively, paid for a stock in the last

year

The face value of a bond, its initial sales price, is typically ____.

$1000

When are limited partnerships generally used?

When the project is risky and the chance of loss is great

Big City Financial is attempting to avoid a hostile takeover by a corporate raider by allowing stockholders to buy more shares of stock at prices lower than current market value. Which of the following methods is being used to avoid the takeover?

a poison pill

The goal of the marketing concept is

customer satisfaction

Small businesses commonly employ

functional departmentalization

A company that has departments for marketing, finance, personnel, and production is organized by

functions

Professionals who specialize in luring qualified people away from other companies are known as

headhunters

Joint ventures are popular in situations that call for

large investments

Downsizing helps firms to become

more flexible

What is the best way to not become a victim of online fraud?

never give out your personal information

The Theory X style of management focuses on

physiological and security needs

Subjective evaluation tools include

ranking systems

When companies operating at different, but related, levels of an industry merge, it is known as a(n)

vertical merger

Although some businesses are less risky than others, overall the financial risks of running a small business are

very high

The buying of all materials needed by the organization is called

NOT - capital expenditures

All of the following would be examples of objective assessments of an employee's performance appraisal except

a ranking system for an office worker

Which is an industry that may not experience large decreases in the cost of communication gained from the digital communications?

a roadside fruit seller

Marketing is not manipulating customers into buying things they do not really want, it is

a systematic approach to satisfying customers

Poor morale is likely to cause

absenteeism and high turnover

Many businesses, recognizing that employees lack many basic work skills, are becoming more concerned about the quality of ____ in the United States.

education

Venture capitalists are an example of

equity financing

Managers need adequate ____________ resources to pay for essential activities.

financial

___________ occurs when criminals obtain personal information that allows them to impersonate someone else in order to use the person's credit to obtain financial accounts and make purchases.

identity theft

Internal recruiting has advantages over external sources, one of which is:

improved employee moral

If Linda Wilson borrows $20,000 to buy a car and ends up paying the lender a total of $24,000, the $4,000 difference represents the

interest

The rationale for job specialization is that

it is more efficient

Allowing one employee to work in a position from 8:00 A.M. to 12:00 P.M. and another employee to work in the same position from 1:00 P.M. to 5:00 P.M. is called

job sharing

The debts Anna's Flowers owes to the Small Business Administration and her company's suppliers represent which of the following?

liabilities

Workers who join together in unions try to achieve all of the following objectives except

more hours

Which of the following is not a source of funds for a sole proprietorship?

not personal funds

_____________ includes any attempt to conduct fraudulent activities online, such as by deceiving consumers into releasing personal information.

online fraud

Money market accounts differ from interest-bearing checking accounts in that

owners can write only a limited number of checks

All of the following activities are associated with warehousing goods except

producing

The marketing mix is a combination of

product, price, promotion, distribution

Agricultural commodities are usually sold under which competitive environment?

pure competition

Information found on the company's income statement and balance sheet is extracted from these documents and examined more closely through the use of

ratio analysis

Industrial products such as lumber, cotton, and iron are classified as

raw materials

If a firm tries to produce goods just in time to meet sales demand, its level of inventory will tend to be

relatively low

Which of the following is a temporary group of employees, usually chosen for their expertise, responsible for bringing out a specific change?

task force

Not all countries trading in international markets package goods in the same units. Unlike the United States, most countries rely on

the metric system

Which market exists so that corporations can sell stocks directly to the public?

the primary market

The over-the-counter securities market

trades most corporate bonds and all U.S. government securities

Stimulating demand is especially important when a firm is using a pull strategy.

true

Finance companies

typically function as the lender of last resort for individuals and businesses with poor credit ratings or whose other lines of credit have been exhausted

When a firm is facing a hostile takeover attempt, it may issue a poison pill, which is

when the firm allows stockholders to buy up shares of stock at lower than market value.

Corporations contribute more than ______ to environmental and social causes each year.

12 billion

Which countries were merged into one market by NAFTA?

Canada, U.S., and Mexico

The major difference between banks and credit unions is that

Credit Unions are owned and controlled by depositors

Recently, _________ have spawned many small businesses.

Deregulation of energy markets and demand for renewable energy

An interview is

NOT - the best way to gather verifiable data about a candidate a chance to exchange information with the candidate

A department store's organizational structure defines the relationships between

all the individuals working together to achieve its objectives

Articles of partnership are required by many states for businesses that have two or more co-owners. The issues covered usually include all of the following except

classes of stock to be issued

A set of formalized rules and standards that describe what a company expects of its employees is called a(n)

code of ethics

All the following are factors of production used to make goods and services except

customers

Services are usually distributed through

direct marketing channels

Ratio analysis is used to determine all of the following except

how a firm compares to its stated goals

Profitability ratios are used to measure

how much income (net or operating) a firm generates relative to its assets, equity, and sales.

Most new product ideas are rejected during which stage because they seem inappropriate for the organization?

idea screening

Transformation processes occur

in all organizations

Double-entry bookkeeping is a system of recording and classifying business transactions

in separate accounts in order to maintain the accounting equation

Primary characteristics of diversity typically involve all of the following categories except

income

Selling interest in a partnership may be difficult because

it is difficult to place a value on a share of partnership

A sole proprietorship is a popular form of business because

it is easy to form

The organizational form that many consider to be a blend of the best characteristics of corporations, partnerships, and sole proprietorships is the

limited liability company (LLC)

Many companies believe podcasts will do all of the following except

most popular?

Credit cards are

preapproved lines of credit granted by a bank or finance company

Which of the following is the most flexible variable in the marketing mix?

price

An income statement shows

revenues, expenses, and net income over a period of time

If a business is to be successful in the long run, it must produce quality products, operate efficiently, and be

socially responsible

Barber shops, dog kennels, and independent grocery stores are typically

sole proprietorships

A temporary group of employees responsible for bringing about a particular change is a

task force

________ has helped small businesses compete with larger businesses.

technology

When a company offers to buy some or all of another company's stock at a premium price, it is a(n)

tender offer

Good money managers strive to keep just enough cash on hand to pay bills. This cash is called ______.

transaction balances

Joe Johnson was recently moved to a new position in his company that involved learning new skills and work assignments even though Joe received no pay increase. This would best be called a

transfer

Customer satisfaction is a goal of the marketing concept.

true

Early management theorists thought money was employees' primary motivation.

true

Managers must take care to warn employees when their performance is unacceptable.

true

All of the following are advantages of a sole proprietorship except

unlimited liability

Of minority groups in the United States, ________ own the most small businesses.

Hispanics

Why does shopping online raise more privacy concerns than shopping in a store?

NOT - it is more anonymous

Companies often determine the compensation for a specific job by

NOT - job evaluation; conducting a wage/salary survey

The law that allows selected American firms desiring international trade to form monopolies to compete with foreign cartels is the

Webb-Pomerene Export Trade Act

Which of the following is not a common cause of small business failure?

entrepreneurial vision

Which of the following is the first step in the accounting cycle?

examine source documents

Long-term assets are also called what?

fixed

A license to sell another's products or to use another's name in business is called a

franchise

The accounting cycle includes all but which of the following?

generate annual reports

Worries about new equipment, expanding inventory, rent increases, competition, changing market conditions, and the like may contribute to

high stress level

Items such as a bond's value, date, and rate are specified in the

indenture

Human relations is the study of

individual and group behavior in organizations.

A check

is a written order to a bank to pay the indicated party the amount specified on the check from money on deposit

Human resources departments strive to

minimize losses due to separations and transfers

According to the Internal Revenue Service

partners report their share of profits as personal income

Inventory handling, transportation, and warehousing are all examples of activities of

physical distribution

An employee stock ownership plan is

profit sharing

The marketing concept states that an organization

should try to satisfy customer needs while also achieving its own goals.

Which characteristic of a sole proprietorship can be considered both an advantage and a disadvantage?

taxation

What is the fastest growing demographic group on Facebook?

women over 55

Who ranked people's five basic needs in order of importance?

Abraham Maslow

____ is often called the father of capitalism.

Adam Smith

Which of the following requires organizations to gather information about customer needs, share that information throughout the entire firm, and use that information to help build long-term relationships with customers?

Market Orientation

Approximately ____ percent of Fortune 500 companies engage in recycling efforts.

NOT - 83?

_______________ involves the use of digital networks to provide linkages between information providers and users.

NOT - accessibility

All of a firm's unpaid financial obligations are occasionally consolidated into an account called

NOT - accounts payable

To implement the marketing concept, a company must do all of the following except.

NOT - adopt a consumer orientation

What has changed a great deal in recent years, creating difficulties for the banking industry and is forcing it to change?

NOT - advances in technology

When discussing corporations, What is a white knight?

NOT - an attempt to fend off a hostile takeover by selling stock at below market value

Which is not an area of the banking industry listed in your text as experiencing rapid changes?

NOT - bill presentation the basic structure of credit union

Which of the following reduces the cost of handling bank transactions and are found in banks, airports, and other public places?

NOT - checking machines

_____ is the activities that individuals, groups, and organizations undertake to protect their rights as consumers

NOT - conspicuous consumption

Which of the following have not been cited as incidents of unethical business activity recently?

NOT - deceptive advertising of medicines and toys

Which of the following is not a difference between digital media and traditional media?

NOT - digital media make customer communications richer

The only long-term funds that a company can generate internally are

NOT - dividend yields

The following are types of bonds except

NOT - floating-rate Commercial

Customizing products, promotion, and distribution according to cultural, technological, and national differences indicates a

NOT - globalization strategy

What is a major weakness of the firm?

NOT - having a poor quality product

If an employee is involved with transforming resources into goods and services, then he is in

NOT - human resources

High-quality items such as musical instruments, sailboats, and airplanes would probably use what distribution coverage?

NOT - intensive; exclusive

What did Quest Star do, structurally, to help it become more competitive with Japanese firms?

NOT - it increased the number of management layers

Which of the following is a downside to digital media?

NOT - it is expensive NOT - most managers don't know how to use digital media

What does Ventura Motors make?

NOT - lawnmowers NOT - compact cars

Items such as a bond's value, date, and rate are specified in the

NOT - ledger

After demand began to accelerate beyond supply, Mrs. Acres Homemade Pies was faced with a series of options. Which of the following is NOT one of those options?

NOT - maintain current production levels and raise price

The primary business of savings and loan associations has been

NOT - making loans to large corporations

The amount of money budgeted for the purchase of long-term assets is called the

NOT - master budget

If the negotiations between union and management representatives come to a standstill and a third party is brought in to make suggestions or propose solutions to help resolve the impasse, then the third party would likely be a(n)

NOT - mediator arbitrator?

___________ exists when there are many small businesses selling one standardized product.

NOT - oligopoly

When Gillette asks supermarkets to give its new razors shelf space, it is using a

NOT - positioning strategy

The Federal Reserve provides all of the following services except

NOT - regulates financial institutions

To ensure quality and efficiency, operations managers take ________ at various points in the transformation process and compare them to established standards.

NOT - samples; feedback

What is the problem with McKing's plan to start selling 16" pizzas at its drive throughs?

NOT - there is no market for 16" fast food pizzas

What did the Hawthorne studies reveal?

That managers who understand the needs, beliefs, and expectations of people will have the greatest success motivating workers

What is the last step that must be done before a firm's books can be closed for an accounting cycle?

a CPA must attest that good principles were used in the preparation of the document

If a government agency paid its workers additional compensation at the end of the year as a thank-you for good work, this would most likely be called

a bonus

The fact that the American company 3M owns a film-manufacturing facility in Italy is an example of

a direct investment

Securities markets provide all of the following except

a federally insured place to deposit savings

Allowing some employees to work at home part-time is

a flexible scheduling strategy

A compressed workweek is

a four-day or shorter period in which employees work 40 hours.

What is the product Dr. Hill has developed?

a highly scratch-resistant and light-weight lens

When Snapple uses viral ads on the Internet to introduce its new beverage to consumers before introducing it to supermarkets, it uses

a pull strategy

Anand believes that he can get some extra work completed before the deadline by withholding his workers' vacation schedules until the job is completed. Anand could be described as

a theory X manager, according to McGregor

If a boat manufacturer orders 50 units of fiberglass material and secures trade credit, promising to pay the supplier at a later date, the manufacturer will record the amount to be paid as a(n)

account payable

All of the following would be considered owners' equity accounts except

accounts payable

Which of the following is a current asset?

accounts receivable

The ability of a business to identify customers before they make a purchase is ________.

addressablility

Many people incorrectly equate promotion with

advertising

After the product orientation came the sales orientation of the mid-20 th century. Supply exceeded demand and businesspeople and ________ and _________ became the most important marketing activities.

advertising; selling

The transformation process occurs in

all organizations, regardless of product

As a result of changing laws and regulations, commercial banks are moving beyond their traditional sources of income to develop new services such as

all the above

Which of the following actions did the Federal Reserve not take during the most recent financial crisis to stave off economic collapse?

allowed most troubled banks to fail

One of the major reasons people want to own and operate their own business is to

be their own boss

Every time Elias broke the department production record, Judah hung a gold banner from Elias' machine and bought him lunch. This illustrates

behavior modification techniques

_____ are web-based journals in which writers can editorialize and interact with other Internet users.

blogs

The group of individuals elected by the stockholders to oversee the general operation of a corporation are known as the

board of directors

A light bulb used to provide light for workers on an assembly line would be classified as what type of product?

business

Many financial institutions decide whether to loan a small business money based on its

business plan

If a manager pressures a subordinate to engage in activities that he or she may otherwise view as unethical, such as accounting fraud or stealing a competitor's secrets, there exists an ethical issue related to

business relationships

Unless fixed assets are continually reevaluated for appropriateness,

businesses lose their competitive edge

What is one of the things that the Troubled Asset Relief Program (TARP) allowed the government to do to help financial institutions?

buy up hundreds of millions of dollars of preferred share of banking securities

Marketers needs to expend much effort understanding which of the following functions of marketing to determine what products to market?

buying

Consumers vote against firms they view as socially irresponsible by not

buying the company's products

All of the following are associated with the manufacturing economy except

cable television

The process of deciding what fixed assets, projects, and investments will earn profits for the firm beyond the costs necessary to fund them is called _____.

capital budgeting

All of the following are ways to invest idle cash for the short term except

certificates of deposit

If Evelyn Chang is a self-employed, state-certified accountant who provides various types of accounting services for different companies and organizations, she is probably a

certified public accountant

Marketing requires creativity and a consumer focus because the marketing environment can

change quickly and dramatically

An advantage of line structure in organizations is

clear chain of command

According to the text, all of the following are skills needed by managers except

clerical

Dan bought three new trucks with a loan obtained from the First National Bank. If he fails to repay the loan, the bank will repossess the trucks. The trucks are

collateral

The oldest and largest of all financial institutions are

commercial banks

During which stage does the firm gear up for full-scale production, distribution, and promotions?

commercialization

The last in line for the payment of profits are the

common stockholders

Crisis management plans generally cover maintaining business operations during a crisis and

communicating with others about the situtation

Making claims about dietary supplements or the health benefits of certain unproven ingredients is an issue related to:

communications

One of the best ways to analyze a company's financial performance is to compare its ratios with those of

companies in the same industry

All of the following would be external sources for recruiting except

company websites

Because Colombia can produce coffee so much more efficiently than other items produced there, it has which of the following advantages?

comparative

An organization that creates many products with similar characteristics, such as automobiles, television sets, or vacuum cleaners, would most likely be which of the following types of organizations?

continuous manufacturing

When Madison flies to Italy from the United States on a British airline, stays in Italian hotels, and buys clothing in Milan to bring home after her trip, she

contributes to the negative balance of payments

__________ refers to consumers' ability to regulate the information they receive via the Internet, and the rate and sequence of their exposure to that information.

control

______ permit Web site operators to track how often a user visits the site, what he or she looks at while there, and in what sequence, but they also allow Web users to customize services and content.

cookies

The Federal Reserve System is responsible for

creating a stable environment for economic growth

Operations management has the primary responsibility for

creating products that satisfy customers

Marketing is the facilitation of exchanges through

creating, pricing, promoting, and distributing goods

According to your book, what is the main source of Internet identity theft?

credit card fraud

The translation of product names can be crucial in the success of a foreign marketing effort because of

cultual barriers

Cash, investments, accounts receivable, and inventory are also known as

current assets

What part of its business does Glasspray have a difficult time managing?

current assets and liabilities

Digital media can reduce the cost of _______ and _________ transactions

customer, business

Digital media can reduce the cost of _______ and _________ transactions.

customer; business

Long-term liabilities are

debts that will be repaid over a number of years

If a company is eliminating certain models of a product and cutting back on expenditures, the product is most likely in which life cycle stage?

decline

When the Fed increases the reserve requirement, it

decreases the money supply

When the Federal Reserve sells investments, it

decreases the money supply

If Juan's manager gives him an assignment without providing Juan with the resources to complete the assignment, Juan's manager is exhibiting improper

delegation of authority

Another name for a checking account is a

demand deposit

If a company develops an advertising campaign that targets a segment of consumers with a certain income and education, the company is using the following segmentation variable:

demographic

When an accountant allocates the cost of a piece of equipment over a period of time, this is called

depreciation

All of the following have helped to create new opportunities abroad for small businesses except

deregulation

Which of the following is a disadvantage of a partnership?

difficulty of selling ownership

___________ are electronic media that function using digital codes and includes media available via computers and other digital devices, including mobile and wireless ones like cell phones and smart phones.

digital media

Which of the following is not a difference between digital media and traditional media?

digital media make communications more confusing

What is not an essential difference between digital and traditional media?

digital media require a completely different marketing mix

The major variable of the marketing mix that uses marketing middlemen is

distribution

Corporations distribute profits to their owners in the form of

dividends

Conducting _____ means carrying out the goals of business through the use of the Internet.

e-business

If a manager is concerned about doing the work with the least cost and waste, then her primary managerial concern is

efficiency

Which is not a means of formally expressing an organization's culture?

employee dress code

The _______ is the price at which the number of products that businesses are willing to supply equals the number of products consumers are willing to purchase at a point in time.

equilibrium price

In the context of starting a new business, a retailer differs from a manufacturer in that the retailer is less likely to make a heavy investment in

equipment and distribution systems

Jane learned that, although she and June were both hired as part-time salesclerks at the same time and have similar backgrounds, June is paid $1 more per hour. Jane decided to stop cleaning dressing rooms on her shift because she thinks this is unfair. This is an example of which theory?

equity theory

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

ethics

When a customer hands the cashier $1 and receives a loaf of bread, which of the following has occurred?

exchange

Companies of all sizes grow and improve profitability by

expanding their operations

Jim has learned that his company is offering a Hawaiian vacation to its best salesman. He almost won last year and really wants the trip. He is working very hard because he thinks he has a good chance to win. This exemplifies which theory?

expectancy theory

The net income of a company is equal to the total profits minus

expenses

Private accountants do all of the following except

express an unofficial unbiased opinion regarding the accuracy of a client's financial statements

A finance company that buys other companies' accounts receivable is known as a(n) _____.

factor

A job description is a written description of the qualifications necessary for a specific job.

false

A target market is a group of people who have a need, purchasing power, and the desire and authority to spend money on goods, services, and ideas.

false

Although customer-generated videos are increasingly available, most companies still prefer to hire professional advertising firms.

false

As long as both a buyer and seller have something of value to exchange, an exchange will take place.

false

Behavior that is punished will tend to be repeated.

false

Benefits are an addition to regular compensation for exceptional performance.

false

Consumer consumption patterns have not changed very much over time.

false

Employees who are dissatisfied with their working conditions or compensation have to negotiate with a labor union to bring about change.

false

Expectancy theory suggests that managers do not need to show employees that they can obtain things they want.

false

Givebacks are concessions made by management to keep workers working.

false

Intrinsic rewards are benefits and recognition you receive from someone else.

false

It is not necessary to verify an applicant's references because most applicants tell the truth on applications or resumes.

false

Job analysis is a systematic procedure to determine the relative worth of various jobs.

false

Marketing is just selling and advertising.

false

Of the thousands of products introduced every year, most succeed.

false

People spend more time on email than they do on social networking sites

false

Price skimming is charging a low price to help a product enter the market and gain market share rapidly.

false

Pricing objectives are influenced solely by marketing mix decisions.

false

Social networking sites and blogs are not effective tools at building customer relationships.

false

Spending money to hire a sales force or to conduct marketing research does not involve risks.

false

The Internet is not a valid advertising medium.

false

The Internet often impedes business transactions, making them slower and less efficient.

false

The forces in the marketing environment are totally uncontrollable

false

Transporting includes warehousing goods.

false

Recruiters can find internal sources of applicants outside the firm.

false(external)

Which of the following is not a disadvantage of forming a partnership?

fewer regulatory controls than in a corporation

Because the U.S. government promises that its metallic coins and paper money are legally acceptable as a means of exchange for products, they are considered which type of money?

fiat

When a computer manufacturer provides stores with credit to encourage them to carry their computers in stores, the manufacturer is involved in the marketing function of

financing

Marketers who learn where online users are likely to express their thoughts and opinions can use these forums to do all of the following except

find out consumers addresses

Positions such as foremen, supervisors, and office managers are examples of

first-line management

A work system that allows employees to choose their starting and ending times as long as they are at work during a specified core period is called

flextime

If the interest rate on a loan changes according to the daily average of the prime rate over the life of the loan, the interest rate is said to be

floating

Since Eva Chang has the capital and decided to purchase the rights to own and operate a McDonald's fast-food restaurant rather than start her own operation, she is probably a(n)

franchisee

Which of the following is not typically part of downward communication?

gossip

When a worker in the deli department of a grocery store designates a steak with little or no fat as an "AA" and another steak with more fat as a "B," the worker is participating in the marketing function of

grading

When a company invests a lot of money in a particular project, it is concerned about the amount of risk involved. In general, the longer the expected life of a project or asset, the potential risk is

greater

Which of the following is an advantage of a small business?

greater flexibility to change

In general, the longer the term of a certificate of deposit, the

higher the interest rate

When firms that make and sell similar products to the same customers merge, it is known as a

horizontal merger

When providing benefits, a manager is most closely involved with which of the following resources?

human

The financial document that shows a company's revenue, expenses, and profits over a period of time is called a(n)

income statement

Viewed from the perspective of operations, the money used to purchase a carpenter's tools and the electricity used to run his power saw are

inputs

Operations management includes responsibility for

inputs and outputs

Money has all the following characteristics except

intangibility

An orientation would likely include all of the following except

interview of finalists

Individuals who take responsibility for the development of innovations of any kind within larger organizations are called

intrapreneurs

Which of the following is the most risky?

introducing a new product in a foreign market

A mutual fund allows many small investors to

invest in a diversified stock market portfolio

A private corporation is one that

is owned by only a few people and not traded on the open market

A method of long-term financing that requires repaying funds with interest is

issuing bonds

Human relations is important in business primarily because

it affects worker morale and productivity

Which of the following is not part of the definition of a small business?

it employs more than 500 people

Because many countries do not permit foreign companies to purchase and operate facilities in their countries, a company wishing to do business in such a country may share the business costs with the host country by forming a

joint venture

When a group of investors borrows money to buy a company or division, using the company's assets to guarantee the loan, it is called a(n)

leveraged buyout

An important advantage of a corporation is its

limited liability

The following is an advantage of a sole proprietorship

limited liability

Anand has been asked to join a new partnership that is developing wind energy technologies. Because the business is high risk, he does not want to be liable for the firm's debts if the project should fail. He could still participate as a

limited partner

Plants, offices, and equipment are considered

long term assets

Which of the following is an advantage of small-business ownership?

lower cost of formation

All of the following are advantages of a corporation except

lower frequency of taxation

_____ make decisions about the use of an organization's resources and are concerned with planning, organizing, leading, and controlling the organization's activities.

managers

Good financial managers minimize the amount of cash available to pay bills in

marketable securities

Acme Inc. is surveying customers as to what kinds of services they would like the company to add. It is involved in the marketing function of

marketing research

Which of the following organizational forms is most likely to be complex and expensive?

matrix structure

The specific operations of the organization, plant, division, or department would most typically involve

middle management

_____ are responsible for tactical planning that will implement the general guidelines established by top management.

middle managers

Building a computer so that components can be installed in different configurations to meet customers' needs is a result of

modular design

Many companies have improved compensation and benefits packages as a means of increasing employee _______.

morale

It is easier to raise funds in a partnership than in a sole proprietorship because

more people means greater earning power and credit.

Flextime is associated with a number of unexpected consequences. One of the major ones is

more physical activity and better sleeping habits

An inner drive that directs behavior toward objectives is called

motivation

If a person invests in the stock market through a vehicle that pools funds from a large number of people and buys and professionally manages stock from a number of diversified companies, that person is investing in a(n)

mutual fund

When superiors and subordinates are not in close proximity and the manager has many responsibilities in addition to supervision, the appropriate span of management would be

narrow

Although the terms accounting and bookkeeping are often used interchangeably, a point of distinction is that the scope of bookkeeping tends to be

narrower

Allie wants to be warm, but she is not; she has a ______ and may be motivated to satisfy it.

need

Diagonal communication

occurs when individuals from different units and departments within an organization communicate

Dividing work into small units and assigning it to individuals are tasks related to

organizing

When seeking out information on a new product, consumers tend to trust _________ over _________.

other consumers, corporations

From an operations perspective, food sold at a restaurant and services provided by a plumbing company are

outputs

Which of the following equations is equivalent to the accounting equation?

owner's equity = assets - liabilities

The owners' contributions to a company and all earnings retained to finance continued growth and product development are

owners' equity

According to the Internal Revenue Service,

partners report their share of profits as personal income

Which form of business organization is the least used in the U.S.?

partnership

An understanding of which of the following realities is not required for businesspeople to plan in a global economy?

personal

Which of the promotion mix variables is best for promoting expensive products with specialized uses, such as houses?

personal selling

In some companies, the department that handles the human resources management function is called by this name:

personnel management

If a manager is organizing equipment within a factory setting, he is mainly involved in which of the following resources?

physical

In the United States, workers'________ needs, as defined by Maslow, have largely been met by minimum-wage laws and federal occupational safety standards.

physiological and security

Maslow's hierarchy classifies needs that motivate people in which order, starting with the most basic?

physiological, security, social, esteem, and self-actualization

Distribution is sometimes referred to as

place

Which of the following can be changed quickly to stimulate demand or respond to competitors' actions?

place

If an employee learned of a significant cost-saving idea from a coworker and then informed management of the idea without revealing its true source, then the employee would be involved in

plagiarism

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

plagiarism

Determining an organization's objectives and deciding how to accomplish them are part of the management function known as

planning

Forecasting is most closely associated with

planning

Top managers spend most of their time performing which of the following management functions?

planning

__________ are audio or video files that can be downloaded from the Internet via a subscription that automatically delivers new content to listening devices or personal computers.

podcasts

Which of the following environmental forces influence marketing strategy by dictating what elements cannot be included in advertising?

political, legal, and regulatory forces

When analyzing options in the decision-making process, managers must consider the appropriateness and _______ of each option.

practicality

The right of common stockholders to have the opportunity to purchase new shares of stock is called a

preemptive right

When a stock quote includes the stock symbol followed by the letters "pf," it indicates

preferred stock

The pricing policy that allows a company to cover the product's development cost most quickly is

price skimming

Age, gender, and race are _____ characteristics of diversity.

primary

If a real estate developer borrows $100,000 from a bank and ends up paying back $120,000, the $100,000 represents the

principal

Vikram Patel is an accountant who is employed by a large department store chain in the tax department. He is probably a(n)

private accountant

A company performing large, complex tasks such as construction or exploration is called a(n)

project organization

The form of communication that attempts to facilitate a marketing exchange by influencing people, groups, or organizations is

promotion

All of the following are objectives of performance appraisal except to

provide a basis for reward distribution

A written authorization assigning a stockholder's voting privilege to another is a

proxy

If a company markets to a segment of people who have a certain lifestyle, the type of segmentation being used is

psychographic

__________ encourages consumers to make purchases based on emotion, rather than rational considerations about the price.

psychological pricing

The type of ownership that has the ability to raise capital most easily is a

public corporation

When an airline company reacts to a plane crash with press conferences, news releases, and having company employees work with the families of survivors and victims of the crash, the company is focusing on which of the following elements?

publicity

The processes an organization uses to maintain its established quality standards are called

quality control

When selecting the best option among a series of possible decisions,

quantitative analysis is almost always helpful

The ratio that reflects a company's liquidity after the inventory has been deleted is which type of ratio?

quick

What has challenged the banking industry and has forced it to undergo changes?

rapid technological changes

When a company wants to place a value on a physical asset for its balance sheet, it must

reduce the value by the amount the asset has depreciated

All of the following are organizational benefits of fostering and valuing workforce diversity except

reduced worker efficiency

According to Herzberg's two-factor theory, all of the following represent hygiene factors except

responsibility

Social ______ relates to a business's impact on society

responsibility

Social ______ relates to a business's impact on society.

responsibility

Which of the following is not a reason why small businesses choose to become retailers?

retailing requires a large capital investment

Profit is the reward for business in exchange for the ____ taken in providing products.

risks

Which of the following forms of business organization restricts the number and type of shareholder?

s-corporation

An accounting term that is synonymous with revenue is

sales

Human relations is concerned with all of the following except

sales

It is desirable to test only a sample of the product in all of the following circumstances except when

sampling is the cheapest option and does not destroy the product

The financial institution that traditionally concentrated on long-term loans, such as mortgages, and is sometimes called a thrift, is a(n)

savings and loan Association

A marketing channel includes all of the following except

secondary stakeholders

According to Maslow, an employee who goes to night school to get a college degree to minimize the chance of being laid off during a recession is motivated to fulfill which of the following needs?

security

The first major step of a marketing strategy is to

select a target market

According to Maslow, living life to the fullest is most closely associated with fulfilling this need:

self-actualzation

Many service businesses are considered retailers because they

sell their services to consumers

Which of the following is a sequence of small bond issues of progressively longer maturity?

serial bonds

Trends have gradually changed the U.S. to a(n) _____ economy focused on making life easier for busy consumers.

service

Which of the following industries is not listed in your text as one that has been significantly impacted by the Internet?

small-scale organic farming

The public's opinions and attitudes toward living standards, ethics, and the environment are considered

social forces

One of the most popular and easiest to establish forms of business in the United States is the

sole proprietorship

Ruji 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 regulation. Which business form might be best for her to use?

sole proprietorship

Which of the following forms of business ownership is directly limited by the life of its owner?

sole proprietorship

Which of the following requires owners to perform many functions and possess diverse skills to make decisions?

sole proprietorship

Adam Smith illustrated improvements in efficiency through the application of

specialization

When inflation is very high, money is no longer a ______ means of exchange.

stable

The financial statement that explains how a firm's cash changed from the beginning of the accounting period to the end is called the

statement of cash flows

The financial statement that explains how a firm's cash changed from the beginning of the accounting period to the end is called the

statement of cashflows

When two computer companies joined together in hopes of obtaining a competitive advantage on a worldwide basis, this exemplifies a

strategic alliance

When managers assign work activities to groups and individuals and coordinate the diverse activities required to attain organizational objectives, they contribute to the development of organizational

structure

Pharmaceutical companies sometimes use which of the following pricing strategies to price their over-the-counter drugs?

symbolic/prestige pricing

After analyzing its own resources and unique abilities, a company is now trying to determine what group of customers it can satisfy with a good or service. It is in the process of choosing a

target market

The income earned by sole proprietorships is

taxed as personal income

To train employees, answer questions, and provide guidance in doing a task, managers need

technical expertise

Which of the following is not a social force in the marketing environment?

technological advances

Advances in _____ have opened many new markets for small businesses, allowing them to more effectively expand their businesses and marketing efforts into new markets.

technology

The primary problem with a trade deficit is

that more cash is leaving the country than is entering

Organizational structure is defined as

the arrangement or relationship of positions within an organization

The transformation process is

the conversion of human, financial, and physical resources into goods, services, and ideas.

What is not a decision that Jack and Bruce have to make before starting their business?

the general idea for their business

Joe is a copywriter in his company's marketing department. The copy for an ad placed in Time magazine for his company spelled the company's name wrong. Who is ultimately responsible for the mistake?

the marketing vice president

About three-quarters of all businesses in the United States are sole proprietorships, and they earn somewhere around 10 percent of total business income. We may conclude that

there are many sole proprietorships, but their average income is small

What are intrapreneurs?

they champion innovation from within organizations

If consumers do not pay off their entire credit card balance, they will

they have to pay interest on the unpaid amount

Equity theory relates a person's willingness to contribute to the organization to the perceived fairness of the rewards received.

true

Everyone in the organization who interacts with customers must know what customers want.

true

Human relations is the study of individual and group behavior in organizational settings.

true

Managers who ascribe to Theory Y assumptions about their workers assume that people like and want to work and that people will seek out responsibilities if provided with the proper conditions.

true

Phishing is a growing scam whereby con artists counterfeit a well-known Web site and send out e-mails directing victims to it.

true

Psychographic characteristics of segmentation include personality characteristics, motives, and lifestyles.

true

Technology and the Internet have dramatically changed the business environment.

true

The Hawthorne Studies marked the beginning of a concern for human relations in the workplace.

true

The best products in the world will not be successful unless companies make them available where and when consumers want to buy them

true

When laid off, a person's attention probably shifts from fulfilling esteem needs to fulfilling physiological and security needs.

true

What is one thing Jack and Bruce know that a good startup company does not need?

undercapitalization

When discussing financial institutions, what is a shrinking capital base?

when the amount of debt in relation to equity increases