It's Your Business Final Study Guide (True or False)
A limit on the amount of a particular good that may be imported into a country during a given period of time is called an import quota. (T/F)
True
A working knowledge of our business system combined with technical skills can give an applicant an advantage in looking for a job. (T/F)
True
An analytical process breaks raw materials into different component parts. (T/F)
True
Deciding on the product line involves balancing customer preferences and production requirements. (T/F)
True
Delegation is the act of distributing work and power to subordinates. (T/F)
True
Entrepreneurial spirit is the desire to create a new business. (T/F)
True
Ethics is the study of right and wrong and of the morality of the choices we make. (T/F)
True
False and misleading advertising is illegal and unethical. (T/F)
True
Form utility is created by people converting raw materials, finances, and information into finished products. (T/F)
True
If the owner of a sole proprietorship retires or dies, the owner's heirs may take over the business and either sell it or continue to operate it. (T/F)
True
In a SWOT analysis, opportunities are considered external to the organization. (T/F)
True
Job rotation is the systematic shifting of employees from one job to another. (T/F)
True
Joint ventures are created for a specific purpose and dissolve when that purpose is achieved or after a specific time period. (T/F)
True
Management is the process of coordinating people and other resources. (T/F)
True
Many entrepreneurs lack the management skills required to run a business. (T/F)
True
Most organizations use four types of resources: material, human, financial, and informational. (T/F)
True
Selling and shipping raw materials or products to other nations is known as exporting. (T/F)
True
Specialization is meant to increase the efficiency and productivity of industrial workers. (T/F)
True
The SBA has defined a small business as one independently owned, operated for profit, and not dominant in its field. (T/F)
True
The corporation, partnership, and sole proprietorship are the three most common forms of business ownership in the US. (T/F)
True
The fastest but most expensive means of transportation is by air. (T/F)
True
The four basic management functions are planning, organizing, leading, and motivating. (T/F)
True
The inner rites, rituals, heroes, and values of a firm make up its corporate culture. (T/F)
True
The matrix organizational structure facilitates greater communication between employees. (T/F)
True
The most common bases for departmentalization are by function, by product, by location, and by customer. (T/F)
True
As the price of a product increases, the amount of the product that consumers purchase increases. (T/F)
False
Because of the ability to sell stock, it is easy for sole proprietors to raise large sums of money. (T/F)
False
Business people, by the very nature of their work, rarely face ethical issues to resolve. (T/F)
False
Corporate culture has a little real influence on the performance of a firm. (T/F)
False
Cross-functional teams are seldom used to develop a new product. (T/F)
False
Customers are so used to misleading advertising that it does not infuriate them anymore. (T/F)
False
Direct marketing is the marketing of products to customers through face-to-face sales presentations at home or in the workplace. (T/F)
False
Each rectangle in an organization chart represents a relationship within the organization. (T/F)
False
International business includes all business activities that involve exchanges across state boundaries. (T/F)
False
Most stockholders attend a corporation's annual meeting and vote in person. (T/F)
False
Relationships with customers and coworkers rarely create ethical problems. (T/F)
False
Small businesses operate only in the service industry, not in manufacturing. (T/F)
False
Strengths and weaknesses are the external factors of a company SWOT analysis. (T/F)
False
The SBA is a private organization rather than a government agency. (T/F)
False
The US has enjoyed a trade surplus during the last two decades. (T/F)
False
The combination of promotion methods that a firm uses to reach a target market is called advertising. (T/F)
False
The economic model of social responsibility emphasizes the effect of business decision on society. (T/F)
False
When a business incorporates, it receives articles of incorporation from the Internal Revenue Service. (T/F)
False
A horizontal merger is a merger between firms in completely unrelated industries. (T/F)
False
A person must own stock in a corporation to be considered a stakeholder. (T/F)
False
About 85% of all business firms in the US are sole proprietorships. (T/F)
False
Accountability is the power within an organization to accomplish an assigned job or task. (T/F)
False
