Mideterm (Ch 1-5)

A team is

A group of people with complementary skills who work together to achieve a specific goal

A nation has a(n)________________ if it is the only source of a particular product or if it can make more of a product using fewer resources than other countries.

Absolute Advantage

What is the difference between the accounting and finance functional areas of business?

Accounting prepares financial statements and finance manages company funds.

Inflation is best described as:

An increase in general price levels

Which of the following is the best example of a differentiated product?

Automoblies

Actions such as stalling, deflecting, and presenting opinions as if they were facts are all examples of what kind of team roles?

Blocking

To predict where the economy may be headed in the future, government analysts and economists use:

Both Leading and Lagging Economic Indicators

Perfect competition exists when:

many sellers offer many buyers a standardized product

After Halloween, candy is marked 50% off because of reduced ___________.

Demand

Which of the following is NOT a leadership skill that would be helpful when taking the lead on a group project?

Dismissing common points of view

During 2018, US appliance manufacturers claimed that Korean appliance manufacturers were selling products imported to the US below the price that US producers normally charge. This practice by the Korean manufacturers is known as what?

Dumping

A key characteristic of teams is that all members are responsible for achieving common goals. Which term describes this concept?

shared accountably

Tracy, a product development team manager, led his team by telling members what to do, rather than allowing members to develop consensus and make their own decisions. This obstacle to teamwork is known as: Group of answer choices

Failure to delegate authority

A team and a work group mean the same thing.

False

One of the common traits for all teams is that they are all manager-led.

False

The larger number of people within a team tends to make members more satisfied.

False

Planning for, obtaining, and managing a company's funds are activities associated with what functional area of a business?

Finance

involves planning for, obtaining, and managing a company's funds.

Finance

BMW built its own manufacturing plant in South Carolina because of the size and attractiveness of the US market. Its expensive commitment is known as:

Foreign Direct Investment

If your company wanted to enter the German market and decided to build a new company-owned factory in the city of Melle, what global entry strategy would it be employing?

Foreign Direct Investment

This international business strategy is generally the most expensive commitment that a firm can make to an overseas market because it normally involves the building of manufacturing plants, and it is typically driven by the economic and business dynamics of the target market.

Foreign Direct Investment

What is a popular way to expand business overseas that grants a foreign company the right to use its brand name and sell its products or services?

Franchise

Holiday Inn has many hotels located globally, which has led to its organization's growth. Holiday Inn has granted another company in these countries the right to use its brand and sell its services, but the foreign company agrees to operate according to the business model provided by Holiday Inn. What type of international business agreement has Holiday Inn used?

Franchising

The ___________ regulates free trade, reduces tariffs, and provides a forum for resolving trade disputes

GATT

Imagine that the equilibrium price for a gallon of gas is $3.00. In order to make its citizens happy, the government imposes a price ceiling of $2.50. What is the expected result of this action?

Gas Shortage

The ___________ regulates free trade, reduces tariffs, and provides a forum for resolving trade disputes.

General Agreement on Tariffs and Trade (GATT)

Sarah is assigned to a product development team with members she knows very well. When she disagrees with the team's decisions, she goes along with them anyway rather than challenge them. Sarah has fallen into what behavior?

Groupthink

Which term describes teams whose members accept decisions they do not agree with simply so they won't upset fellow team members?

Groupthink

All of the following are blocking behaviors by team members EXCEPT:

Harmonizing

loans money to countries with troubled economies; however, there are requirements that may include difficult financial and economic reforms.

INF International Monetary Fund

This type of international business strategy involves purchasing products from other countries and reselling them in one's own country:

Importing

is the buying of products overseas and reselling them in one's own country.

Importing

The price of a bottle of Coca Cola remained the same from 1886 to 1959 despite Prohibition, The Great Depression, and two World Wars occurring during that time. When the price increased in the following years, even though the product had not changed, the increase could best be described as:

Inflation

loans money to countries with troubled economies; however, there are requirements that may include difficult financial and economic reforms

International Monetary Fund

Every team requires resources to achieve its goals; however, when leaders are not willing to commit required resources, such as funding or key personnel, this obstacle is known as:

Lack of managerial support

A business exerts very little, if any, control over the ___________ environment.

Macro

Which functional area at McDonald's would be most involved in pricing new menu items?

Marketing

_______________ consists of everything that a company does to identify customers' needs and designing products to meet those needs.

Marketing

Which of the following is NOT a key characteristic of teams?

Members go about their jobs independently

A company that operates in many countries is called a(n) _______________.

Multinational Organization

A company that operates in many countries is called a(n) _______________. Group of answer choices

Multinational Organization

Public utilities are an example of what kind of monopoly?

Natural

The shape of a typical supply curve would indicate which of the following?

None of the above

Elon Musk's decision to form a new automotive manufacturing company is unique because the automotive industry is one that has high start up costs, there are very few sellers in the industry, and the number of firms entering the market is low. Elon's company Tesla is competing in what type of market?

Oligopoly

The primary person who designs and oversees the transformation of resources into goods or services is called the _____________________.

Operations Manager

_______________ costs are the products that a country must forgo making in order to produce something else.

Opportunity

Sarah is deciding how to use the money she received as a graduation gift and has narrowed her choices to investing in Amazon stock or going on a hiking trip. Since she would forgo the hiking trip to make the investment, the hiking trip represents the __________ of buying Amazon stock. Group of answer choices

Opportunity Costs

Because of high-labor costs in the USA, GE Appliances has its microwave ovens built in China by a third-party manufacturing firm and imported into the US. This type of international business arrangement is known as:

Outsourcing

Because of high-labor costs in the USA, GE Appliances has its microwave ovens built in China by a third-party manufacturing firm and imported into the US. This type of international business arrangement is known as: Group of answer choices

Outsourcing (Contract Manufacturing)

Every business must have _______________, whose primary role is to invest money in the business. Group of answer choices

Owners

Generally speaking, economic systems can be divided into two broad categories. They are:

Planned systems and free market systems

Changes in government pollution regulations are part of a company's environmental macro-environment. These changes could also be included in which other environmental factor? Group of answer choices

Political

outlines the percentage of companies and the workplace area of performance improvement. Which of the following showed the highest percentage of firms reporting improvement?

Product and Service Quality

Figure P.3 outlines the percentage of companies and the workplace area of performance improvement. Which of the following showed the highest percentage of firms reporting improvement?

Product and service quality

Which term refers to the money you get to keep from your business activities once your expenses are paid?

Profit

When you help other team members understand their roles on the team, you are performing a:

Relationship-building role

Susie had just finished the first day of her lemonade stand business. After counting all of the money she had received for selling her cups of lemonade, she announced, ""I made $12.50""! Since Susie had not taken out the cost of her cups, the lemonade mix, etc., the $12.50 represented ______________.

Revenue

Ronald is seeking to purchase hamburger patties for his restaurant and is willing to buy 1,000 when the cost is $1.00 each, but he is only willing to buy 500 patties when the cost is $2.00 each. Ronald is probably willing to purchase hamburger patties in these different quantities because:

Ronald expects fewers customers to buy hamburgers as the price increases

The ultimate goal for any business, regardless of what product or service they offer, is to:

Satisfy customer needs and generate a profit for its owners

A team that is granted considerable autonomy in controlling the activities it undertakes in order to achieve its goals is known as a(n) ___________________.

Self-managing

Several major car manufacturers have announced plans to increase production of SUVs and trucks, and to discontinue several models of cars. Their decision was most likely in response to a change in what external factor? Group of answer choices

Sociocultural

Veronica is studying environmental engineering because she is interested in renewable energy. This major has become more popular among college students, and consumers are also looking for environmentally friendly products. This trend is due to which external force?

Sociocultural

Home Depot includes product information signs in both English and Spanish in its stores. It is responding to which environmental factor?

Sociocultural Trends

Any person or group with a legitimate interest in the success or failure of a business and its policies can be called a(n):

Stakeholder

Every business has people with a legitimate interest in the success or failure of the business and the policies it adopts. These people are known as:

Stakeholders

A _______________ is a formal agreement between two companies to pool resources in order to achieve business goals that benefit both partners.

Strategic Alliance

Insomnia Cookies' new baker accidentally baked too many cookies and wants to sell them before the end of the day. The store may need to offer customers a discount in order to sell the extra cookies since there is an increase in

Supply

In September 2018, the US Government implemented a(n) _________ on all Chinese goods imported into the US. With this policy, the US raised the price of Chinese products, which made domestic manufactured goods more competitive. Group of answer choices

Tariff

Which of the following is an example of a not-for-profit organization?

The American Red Cross

When Apple decides what price to charge for an iPhone, they have to consider the costs to make it. What macro-environmental force would most affect Apple's production costs?

The state of the economy

If the government sets a national maximum price that retailers can charge for gasoline and that is below the equilibrium price, what is a likely result?

There will be shortage of gasoline in the market

Ron works for Airbnb in San Francisco, California. His colleague Michelle works for the same company, but her office is located in Dallas, Texas. Technology allows Ron and Michelle to videoconference and exchange emails at any time of the day to achieve goals and solve problems. This type of office arrangement would be best described as what type of team?

Virtual Team

Which of the following is true of an oligopolistic market?

Changes in price by one seller influence prices of the other sellers

What are the two ends of the continuum of economic systems?

Communism ; Pure Competition

Biketown is a 100-year-old manufacturer of bicycles. It has a loyal customer base who appreciate the workmanship of its bicycles and are willing to pay more for its products. In order to compete with lower priced manufacturers, Biketown has purchased a new automated machine to assemble bicycles that is more efficient and less costly than the existing manual assembly process. Select who would NOT be a stakeholder in this business decision.

Competitors

Common stakeholders for businesses include all of the following EXCEPT:

Competitors

The text identified the skills teams need to succeed. Every team requires some mixture of skills, which of the following was NOT one of the skills listed in the text?

Computer Skills

Management involves planning for, organizing, leading, and _______________ a company's resources, so that it can achieve its goals.

Controlling

In the Preface section of the text, Motorola's RAZR team was discussed. Motorola's RAZR team was identified as what type of team?

Cross Functional Team

The Walt Disney World Company has developed a new animated movie to be released next year. This project will require team members from the Studio Entertainment Division, the Parks and Resorts Division, and the Consumers Products & Interactive Media Division to work together and leverage their various skills and expertise to ensure the project's success. This is an example of what type of team?

Cross Functional Team

Teams that cut across an organization's functional areas (i.e. operations, marketing, finance, etc.) and are designed to take advantage of the special expertise of individual team members would be best defined as what type of team?

Cross-Functional Team

____________ provides economic assistance to poor and developing countries through the availability of loans, grants, and guarantees.

World Bank

____________ provides economic assistance to poor and developing countries through the availability of loans, grants, and guarantees. Group of answer choices

World Bank

The ___________ encourages global commerce and lower trade barriers, provides a forum for resolving disputes, and enforces international rules of trade.

World trade Organization (WTO)

Which stakeholder group would be most impacted by Apple's decision to get rid of headphone jacks?

companies that make headphones that use jacks

Which of the following, when tracked over time, is the best indicator of inflation?

consumer price index (CPI)

The broad goals of our economy include:

growth, price stability, and high employment

When the expenses for a business exceed revenue, the business is operating at a _________________.

loss

Mario is in charge of his department's planning and organizing. He also allocates resources for his department. Which function does he fill for his department?

management

Ms. Goodwin spends her day studying the production, distribution, and consumption of goods and services. Ms. Goodwin most likely works as a(n): Group of answer choices

Economists for the government

Which of the following factors was not identified in the Preface section of our text as being a factor that makes a Team cohesive.

Educational Skills

The United States currently bans nearly every commodity from Cuba due to political reasons. This trade control is known as a(n)

Embargo

The United States currently bans nearly every commodity from Cuba due to political reasons. This trade control is known as a(n):

Embargo

is an extreme form of trade control, which for economic or political reasons bans the import or export of certain goods to or from a specific country.

Embargo

is an extreme form of trade control, which for economic or political reasons bans the import or export of certain goods to or from a specific country. Group of answer choices

Embargo

Starbucks and American Airlines recently banned plastic straws for customer use in response to concerns from which of the following external factors: Group of answer choices

Environmental

The intersection of the supply and demand curves is known as the _______________.

Equilibrium price

_______________ is the selling of domestic products to foreign customers. Group of answer choices

Exporting

Gross Domestic Product measures:

The market value of all goods and services produced in a given year

Because the United States imports more goods and services from other countries than they manufacture and export, the US has a __________________. Group of answer choices

Trade Deficit

Which external force includes business environment information such as unemployment rates, inflation, GDP growth, and oil prices?

economic

is an extreme form of trade control, which for economic or political reasons bans the import or export of certain goods to or from a specific country. You Answered

embargo

Starbucks and American Airlines recently banned plastic straws for customer use in response to concerns from which of the following external factors:

environmental

_______________ is the selling of domestic products to foreign customers.

exporting

is the selling of domestic products to foreign customers.

exporting

A market where numerous sellers sell a standardized product to many buyers and no individual seller can influence prices is known as _________________.

perfect Competition