Midterm exam business 101

Supply is the quantity of a good or service that people are willing to buy at various prices.

False

The most basic measure of economic growth is the GFP (gross farm production)

False

Through the informal organization may be a force in an organization, it has no real power; so managers dont need to worry much about it

False

What is another name for the "free enterprise economic system?

Free market

Many weight-loss programs advertise that they can help individuals lose a great deal of weight without any changes in the individuals lifestyle. Typically when the person who has lost the weight leaves the program, he or she regains all the lost weight. This yo-yoing is almost as bad for the body as the excess weight. These weight-loss programs are engaged in ...... behavior

Legal but irresponsible

......are corporate takeovers financed by large amounts of borrowed money.

Leveraged buyouts

What is the most common use for a business plan?

Obtain funds

Deshaun Hardin works for a lumber company. His employer requires that all employees wear steel-toed shoes and hard hats when on the work site. Hardin's employer is complying with which federal law?

Occupational safety and health act

A disadvantage of a partnership is that any partner may have to pay all of the debts of the company regardless of who incurred the debts.

True

A person who risks time, effort, and money to start- up and operate a business is called an entrepreneur

True

At the equilibrium point, quantity demanded equals quantity supplied

True

Mines in colombia produce emeralds and sell them to jewelers in the United States. To colombia miners, emeralds are an export

True

One of the basic functions of management is organizing

True

One of the disadvantages of the sole proprietorship is that the owner has unlimited liability

True

Performance appraisals are comparisons of actual performance with expected performance

True

Recruitment is the attempt to find and affract qualifiied applicants in the external labor market.

True

Retail stores are the most popular category of small business

True

Small businesses tend to have greater flexibility than large businesses

True

Social responsibility is a voluntary obligation

True

Telecommuting is an arrangement in which employees work at home and are linked to the office by phone, fax, and computer.

True

The ability to work with people and be sensitive to worker's needs are examples of human relations skills.

True

The general upward movement of prices in the economy is called inflation

True

The nature of the task and the location of the workers affect the size of a manager's span of control.

True

The need for business to expand their markets is one of the most fundamental reasons for the growth in world trade.

True

Utilitarianism is a principle that guides laws that says people should act so as to generate the greatest good for the greatest number of people

True

List the four basic functions of management.

Planning,organizing, leadership/ leading,controlling.

A small business owner that uses ...... to finance his or her venture is using borrowed funds that must be repaid with interest over a stated period of time.

Debt

Allison Edge shares decision making and authority with her subordinates. Edge's department is ...... because she believes the people she supervises can make good decisions on their own.

Decentralized

Out of all the different types of structures a business can use to organize itself, which is the best type of organizational structure?

Depends

...... is the reduction of a currency's value relative to another currency.

Devaluation

A corporation's earnings are taxed as corporate earnings and as dividends to the stockholders. This is known as......

Double taxation

Which is not a characteristic of a business that is considered to be an organic organization?

Centralized decision-making

The best example of a Command Economy is......

Communism

............is the process of ensuring that the organization's objectives are being met and of correcting deviations from the plan

Controlling

An ...... provides employees with the knowledge of what their firm expects in terms of their responsibilities and behaviors towards their fellow employees, customers, and suppliers.

Cope of ethics

List the three major categories of legal business ownership.

Corporation, partnership, solopritoryship

In order to minimize the occurrence of fraud within their business, management's best chance of reducing fraud is to focus on the element of...... from the Fraud Triangle

Opportunity

A business uses the practice of ...... if it hires an overseas business to handle all customer service phone calls, which can be operated much cheaper by that foreign entity.

Outsourcing

One way to ease the burden of managing a business is to hire an outside consultant. Which of the following is an example of an outside consultant that might be useful to a small interior deisgn company?

All the above ( a temp agency used to recruit, interview, and hire employees; an advertising company to design its ads in the local newspaper; a certified public Accountant to manage its money; an attorney who is well-versed in small business law)

Dewayne Gibbons of Burger King decided go introduce a new sliced chicken sandwich without consulting any of his subordinates or the franchise. Managers who use this style of decision making exhibit the......... style of leadership.

Autocratic

A total prohibition against importing certain products is called an?

Embargo

The Northwest Cherry Growers (headquartered in the state of Washington) sells much of its locally grown produce to Taiwan. ...... was the least risky and least expensive way for the growers' association to sell to global markets.

Exporting

...... include insurance, pension plans, paid sick leave,childcare, and vacations.

F.B

Which law is responsible for establishing the minimum wage?

FLSA

A person who buys a franchise has the same level of control as an entrepreneur who opens his or her own sole proprietorship

False

An example of a staff position (in a line- and - staff structure) would be a Plant Manager for a manufacturing facility

False

China had a favorable balance of trade in 2017 when it exported $322 million and imported $492 million

False

...... is the general upward movement of prices from year to year.

Inflation

What is another name for a free-rein leadership style?

L.F.

...... is the process of guiding and motivating people toward the achievement of organizational goals.

Leading

A(n)......... organization is characterized by a relatively high degree of job specialization, rigid departmentalization, many layers of management, narrow spans of control, centralized decision making, and a long chain of command

Mechanistic

The combination of two companies that join to form one new company is called a?

Merger

For a time, only Xerox could produce dry-paper copiers because Xerox held all the patents on the process. Until the patent expires. Xerox could be said to operate in a(n) ......... market structure

Monopolistic

List the four traditional factors of production.

NR, Labor, Capital, Entrepreneur

Which of the following elements does not typically appear in a well-prepared business plan?

Names, ss#, and phone numbers of all the employees

Angel investors are?

Provide funding for start up businesses

Who are the owners of a conporation?

Shareholders

The United States imposes a......, a tax, on all imported bicycles.

Tarrif

The specialized knowledge and ability that a person brings to a job, such as computer programming, is called an ......skill?

Technical

The three basic levels of the managerial hierarchy are.........

Top, middle, and supervisory

In a sole proprietorship, the owner is fully liable for all business debts of the company. This term is called ...... liability.

Unlimited

A ...... is an example of a type of incentive pay that employers use to compensate,motivate,and reward their employees.

Bonus

.........Law is the body of law that governs commercial dealings.

Business

What three countries were the initial signers of the North American Free Trade Agreement NAFTA?

Canada, Mexico, USA

......is the practice of giving only limited authority and decision-making to low-level managers

Centralization

Human Resource management is the process of ...... people in order to achieve organizational goals.

Doing all the above ( hiring, developing, motivation/ compensating, evaluating)

Entrepreneurs, as a general group, dislike risk taking

False

Strategic planning is long-range, formulated by supervisory-level management, and made as if the company operated in a vaccum.

False

Japan has limited the number of pounds of citrus fruit that can be imported into the country. This limitation is called an?

Quota

...... is the complete redesign of business structures and processes in order to improve operations

Re-engineering

An ...... is defined as a decline in GDP that lasts for six months.

Recession

U.s. Steel has established an alcoholic rehabilitation program for the city of Pittsburgh. The company provides the facilities and the personnel to operate the program. U.s. Steel is practicing?

Social responsibility

The economic system under which basic industries are owned and operated by the government and where some private ownership of smaller businesses exists is called?

Socialism

The lowest level of management, which usually carries out the daily operations; is called ...... management.

Supervisory

.........is the quantity of a product or service that businesses will make available at various prices

Supply