need to get a good grade on this final... i missed two assignments

What is the primary difference between a good and a service?

A good is tangible, and a service is intangible.

_____ is a permanent organization structure that combines functional and product departmentalization.

A matrix structure

_____ is the gap between what is and what is required.

A need

_____ is the gap between what is and what is desired, and _____ is the gap between what is and what is required.

A want; a need

_____ proposed a theory of motivation based on universal human needs.

Abraham Maslow

Which of the following statements about the accounting profession is true?

Accountants are typically classified as private or public accountants. ???

_____ is any paid form of nonpersonal presentation by an identified sponsor.

Advertising

Which of the following statements about the accounting profession is true? Most CPAs first work for public accounting firms and later become private accountants or financial managers. Managerial accountants become a certified management accountant when they meet the requirements of the professional certification program. Public accountants serve individuals and organizations on a fee basis. Private accountants are also called corporate accountants. All of the above statement about the accounting profession are true.

All of the above statement about the accounting profession are true.

Which of the following statements describes an advantage that personal selling has over other forms of promotion? The sales message can be varied according to the motivations and interests of each prospect. Personal selling can be directed only to qualified prospects. Personal selling costs can be adjusted by controlling the size of the sales force. Personal selling is considerably more effective at creating a satisfied customer than other forms of promotion. All of the above statements describe how personal selling is superior to other forms of promotion.

All of the above statements describe how personal selling is superior to other forms of promotion.

Which of the following statements about preferred stock is true? Preferred stockholders are paid dividends before the company can pay any dividends to common stockholders. The dividends for preferred stock are a fixed amount. Preferred stock is more costly than debt financing. Preferred stockholders are paid before other debt holders in the event of company dissolution. All of the statements about preferred stock are true.

All of the statements about preferred stock are true.

_____ are individual investors or groups of experienced investors who provide funding for start-up businesses.

Angel investors

_____ is the settling of a labor-management dispute by having a third party make a binding decision.

Arbitration

_____ bring buyers and sellers together, do not title to merchandise, receive commission on sales; and have little say over company sales policies.

Brokers

_____ is the action that people take in buying and using goods and services.

Buyer behavior

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

Centralization

_____ is the process of negotiating labor agreements between union members and management.

Collective bargaining

_____ stock is a security that represents an ownership interest in a corporation and has voting rights.

Common

Which of the following statements about the New York Stock Exchange (NYSE) and the American Stock Exchange (AMEX) is true?

Companies listed on the NYSE cannot be listed on the AMEX at the same time.

_____ uses a computer to design and test new products and modify existing ones.

Computer-aided design

_____ combines computerized manufacturing processes with other computerized systems used before and after manufacturing.

Computer-integrated manufacturing

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

Controlling

_____ is the set of attitudes, values, and standards that distinguishes one organization from another.

Corporate culture

_____ is the set of values, ideas, attitudes, and symbols created to shape human behavior.

Culture

_____ are debts that are to be paid within twelve months.

Current liabilities

_____ is the ratio of benefits to the sacrifice necessary to obtain those benefits.

Customer value

_____ is the process of distributing the original cost of a long-term asset over the years of its useful life.

Depreciation

Which of the following is a disadvantage of sole proprietor ownership?

Difficulty in raising capital

_____ is the efficient management of the acquisition of raw materials to the factory and the movement of products from the producer to industrial users and consumers.

Distribution

_____ is the process of dividing the work and assigning tasks to workers.

Division of labor

Theories X and Y management styles are the result of studies by:

Douglas McGregor

_____ means giving employees increased autonomy and discretion to make decisions as well as control over the resources needed to make those decisions.

Empowerment

_____ is a computerized resource planning system that includes information about the firm's suppliers and customers as well as data generated internally.

Enterprise resource planning (ERP)

The _____, created by the 1964 Civil Rights Act, investigates and resolves charges of discrimination.

Equal Employment Opportunity Commission

_____ are goods and services that are made in one country and sold to other countries.

Exports

_____ are examples of wide area networks (WANs).

Extranets and intranets

The _____ is a 1993 law that requires employers to provide unpaid leave for up to twelve weeks.

Family and Medical Leave Act

The _____ prints money and controls its circulation.

Federal Reserve System

_____ management is the art and science used to determine the most effective ways to acquire and use funds to achieve the firm's goals.

Financial

_____ deals with reporting to outsiders. _____ accounting deals with the internal operations of the firm.

Financial accounting; Managerial accounting

Which of the following statements about international banking is true?

Foreign banks are subject to fewer regulations than U.S. banks.

Motivation and maintenance factors are essential parts of a job-satisfier theory formulated by:

Frederick Herzberg

The father of scientific management was:

Frederick Taylor

_____ charts are bar graphs that are plotted on a time line to show the relationship between scheduled and actual production.

Gantt

_____ theory is based on the premise that an individual's intention to work toward a goal is a primary source of motivation.

Goal-setting

_____ is the degree to which group members want to stay in the group and tend to resist outside influences.

Group cohesiveness

_____ is the process of hiring, developing, motivating, and evaluating people in order to achieve organizational goals.

Human resource management

_____ are limitations on the quantity of certain types of goods that can be imported over a period of time.

Import quotas

_____ are products that are bought from one country for use in another just as the U.S. buys wood pulp and timber from Canada.

Imports

Which of the following is NOT one of the five key types of power?

Influential

_____ refers to all of the equipment and techniques needed to manage and process information.

Information technology

Which of the following statements does NOT describe an advantage inherent in equity financing?

Interest is tax-deductible.

_____ are internal corporate wide area networks that use Internet technology to link employees in many different locations and with many different types of computers.

Intranets

_____ is the horizontal expansion of an employee's job.

Job enlargement

_____ is the redesign of a job to provide workers with more authority, responsibility, challenge, and the opportunity for more personal achievement is called:

Job enrichment

_____ is the vertical expansion of an employee's job.

Job enrichment

_____ management focuses on gathering and sharing an organization's collective knowledge to improve productivity and foster innovation.

Knowledge

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

Leadership

_____ is the streamlining of production by eliminating steps in the production process that do not add benefits that customers are willing to pay for.

Lean manufacturing

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

Leveraged buyouts

_____ personnel have direct authority about product decisions; ______ personnel give expert advice in specialized areas.

Line; staff ???

_____ is the process of guiding the development, maintenance, and allocation of resources needed to attain organizational goals.

Management

_____ is the division of markets into different groups

Market segmentation

_____ is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.

Marketing

_____ is the collection, recording, and analysis of data important in marketing and communicating that information to management.

Marketing research

_____ uses a master computerized system to ensure that materials, labor, and equipment are available for production.

Materials requirement planning

_____ refers to a government's programs for controlling the amount of money in circulation.

Monetary policy

______ is anything (regardless of form) that is acceptable as payment for goods and services.

Money

_____ is something that prompts an individual to release his or her energy in a certain direction.

Motivation

The _____ system is the first electronic-based stock market and the largest over-the-counter market.

NASDAQ

The oldest and largest organized securities exchange in the United States is the:

New York Stock Exchange

_____ is the management of the production conversion process for both goods and services.

Operations management

_____ involves coordinating and allocating a firm's resources so that the firm can carry out its plans and achieve its goals.

Organizing

_____ is the process of arranging the structures and relationships of human and material resources to carry out an organization's plans.

Organizing

_____ provides new employees with information about company policies, salary and benefits, and parking. It also includes work rules and performance expectations.

Orientation

_____ are large pools of money set aside by corporations, unions, and governments for later use in paying retirement benefits to their employees or members.

Pension funds

_____ is the process that converts inputs into outputs that can be sold as goods and services.

Production

_____ are based on overall company profitability. Using an established formula, management distributes some portion of company profits to all employees.

Profit-sharing plans

_____ is the act of informing, persuading, and reminding the target market about a product.

Promotion

_____ are independent accountants who serve organizations and individuals on a fee basis.

Public accountants

_____ is the attempt to find and attract qualified job applicants in the external labor market.

Recruitment

What is the name of the SEC regulation that requires public companies to share information with all investors at the same time?

Regulation FD

When faced with an employee performance problem, managers tend to experience two primary emotions: anxiety and anger; anxiety, because the situation often leads to conflict, and anger because the manager realizes, "I did not create this problem. The employee did." No matter how well an attendance policy is written, there are those who will abuse it or push the limits. _____ theory can be used to acknowledge positive behavior with rewards and encourage others to improve their sub-par performance.

Reinforcement

_____ is the technology involved in designing, constructing, and operating computer-controlled machines that can perform tasks independently.

Robotics

To avoid double taxation, a new entrepreneur may elect to organize as a(n):

S corporation

_____ is the aspect of production control that involves specifying and controlling the time required for each step in the production process.

Scheduling

_____ are investment certificates that represent either ownership of a corporation or a loan to the corporation.

Securities

_____ is the process of determining which persons in the applicant pool possess the qualifications necessary to be successful on the job.

Selection

_____ is the concern of businesses for the welfare of society as a whole.

Social responsibility

_____ is the degree to which tasks are subdivided into smaller jobs.

Specialization

_____ planning is the creation of long-range, comprehensive objectives and the development of long-term courses of action.

Strategic

_____ focuses on smoothing transitions along the supply chain so that the firm can satisfy its customers with quality products and services while focusing on forging tighter bonds with its suppliers.

Supply chain management

_____ planning is short-range, detailed planning that is based on long-range planning. It typically has a time frame that is less than one year long.

Tactical

_____ is a scheduling tool that assigns three time estimates for each activity ( optimistic, most probable, and pessimistic). This technique allows managers to anticipate delays and potential problems and schedule accordingly.

The program and evaluation review technique

_____ management emphasizes the use of quality principles in all aspects of a company's operations.

Total quality

The Malcolm Baldrige National Quality Award is given to:

U.S. companies that offer goods and services of world-class quality

_____ guarantees that each employee will have only one direct supervisor.

Unity of command

_____ invest in new businesses in return for part of the ownership, sometimes as much as 60 percent.

Venture capitalists

_____ are distribution channel members that buy finished products from manufacturers and sell them to retailers.

Wholesalers

_____ is responsible for identifying the Theory Z style of management.

William Ouchi

_____ are groups of employees who share resources and coordinate efforts so as to help members better perform their individual duties and responsibilities. The performance of this group can be evaluated by adding up the contributions of the individual group members.

Work groups

What is Six Sigma?

a quality control process

All of the following are human relations skills EXCEPT:

ability to program a computer

Amounts owed to the firm by customers who bought goods and services on credit are called:

accounts receivable

Secured short-term loans are usually secured by:

accounts receivable and inventory

Which of the following is NOT a popular form of sales promotion?

advertising

Employers set up _____ to expand job opportunities for women and minorities.

affirmative action programs

A person who works as a sales representative for a manufacturer or wholesaler and gets paid a commission on any sales is classified a(n):

agent

A well-written business plan should contain: executive summary or company overview a marketing plan a vision and mission statement a management plan all of the above

all of the above

Accounting provides a framework for looking at: past performance current financial health possible future performance financial performances of different firms all of the above

all of the above

Insurance policyholders make premium payments to buy financial protection. Insurance companies invest the premiums in: stocks bonds real estate business loans all of the above

all of the above

Management involves: organizing controlling leadership planning all of the above

all of the above

Money is used as: a medium of exchange a standard of value a store of value a means of payment all of the above

all of the above

Which of the following factors affects an employee's compensation? wage and salary surveys the level of labor competitiveness in the area the firm's financial condition the organization's pay structure all of the above

all of the above

Which of the following factors will be important in the selection of a site for a production facility? labor costs proximity to raw materials nearness to customers access to transportation all of the above

all of the above

Which of the following is a step in the new-product development process? develop new-product ideas screen ideas create a marketing mix test the new product all of the above

all of the above

Which of the following is an example of a data security issue? software piracy unauthorized access and use deliberate damage introduction of a computer virus all of the above

all of the above

Which one of the following is a commonly used method for market segmentation? benefit volume psychographic geographic all of the above

all of the above

Intrapreneurs: run mini-companies within large corporations have the characteristics of creativity, vision, and risk taking. have a high degree of autonomy in spite of the fact they work for a large corporation are accurately described by all of the above receive regular salaries and employee benefits

are accurately described by all of the above

Things of value owned by a firm are called its:

assets

PERT charts differ from critical path method (CPM) in one important way. PERT charts _____, and the CPM does not.

assign three time estimates for each activity

Among managers there are three distinctive leadership styles. They are:

autocratic, participative, and free-rein

The _____ summarizes an organization's financial status at the end of an accounting period.

balance sheet

Price is:

based on the expected value you will receive from your purchase

In a transaction processing system the database can be updated in two ways. They are _____ processing.

batch and on-line

When Gene O'Hare went online to plan his vacation to Australia, he learned that he could buy plane tickets, rent a car, and pay for a hotel in a reduced-price tourist package, which made it very convenient for him to book his trip. The Web site O'Hare visited used _____ to make trip planning easier and more economical.

bundling

A _____ is a formal written statement that describes in detail the idea for a new business and how it will be carried out.

business plan

Which of the following assets is NOT an example of a fixed asset for a manufacturer of road building equipment?

cans of yellow paint for refurbishing equipment

Funds invested in long-lived assets, such as land, buildings, machinery, and equipment, are called:

capital expenditures

Business products are classified into two categories. Large, expensive items with long life spans are called _____ products, and; smaller, less expensive items with short life spans are called _____ products.

capital; expense

An economic system based on competition in the marketplace and private ownership of the factors of production is known as:

capitalism

An accountant who has a bachelor's degree, passes a test prepared by the professional organization AICPA, and has a certain number of years of on-the-job training becomes a:

certified public accountant

The _____ defines the relationships of authority from one level of organization to the next, from top to bottom.

chain of command

A secured loan requires that the borrower pledge specific assets to secure the loan. These assets are called:

collateral

A "mixed economy" is an economic system that:

combines private and government ownership of the factors of production

The three most popular types of marketable securities are Treasury bills, certificates of deposit, and:

commercial paper

A structure in which authority and responsibility are held by a group of workers rather than a single manager is called a _____ structure.

committee

The ability to view an organization as a whole, to understand how the various parts fit together, and how it relates to other organizations is a(n) _____ skill.

conceptual

Which of the following is NOT a step performed by the salesperson during the selling process?

conducting market research

A _____ merger brings together companies in unrelated businesses to reduce risk.

conglomerate

Virtual private networks (VPNs):

connect two or more private networks using a public network

Which one of the following is NOT a commonly used method for segmenting markets?

consumer

Management needs to be prepared to deal with problems and seize opportunities as they arise. A company often identifies alternative courses of action to be taken if events undercut a strategic or tactical plan. These are called _____ plans.

contingency

A system that utilizes long production runs resulting in high-volume, standardized products is called a(n) _____ process.

continuous

There are two types of expenses recorded on the income statement. They are:

cost of goods sold and operating expenses

A large furniture and appliance rental business is considering sponsorship options. It has brought together vice-presidents from the various functional areas of the company to determine which sponsorships will most effectively reach the rental company's prospective customers. The rental company has established a:

cross-functional team

A team made up of employees from about the same hierarchical level, but different functional areas of an organization is called a:

cross-functional team

The U.S. money supply is composed of:

currency, demand deposits, and time deposits

American Express is organized into four divisions that cater to businesses, consumers, travelers, and investors. American Express uses _____ departmentalization.

customer

Data warehouses may contain many _____, subsets of a data warehouse that each deal with a single area of data.

data marts

Customer records containing names, addresses, phone numbers, and purchase histories would be most likely stored in:

database management systems

The _____ ratio measures the relationship between the amount of debt financing and the amount of equity financing.

debt-to-equity

If a manager needs a reporting system that provides the ability to ask "what if" questions, he or she would probably install a(n) _____ system.

decision support

The major advantage of debt financing is the:

deductibility of interest expenses

Financial institutions can be divided into two broad categories. These are ______ institutions.

depository and nondepository

Computer-aided manufacturing (CAM) uses computers to:

develop and control production processes

Which of the following is NOT one of the stages in the product life cycle?

development

The Banking Act of 1933 gave the Federal Reserve System the authority to: tell banks how much reserve to maintain ban interest on demand deposits regulate interest rates on time deposits keep banks from investing in specific securities do all of the above

do all of the above

Manufacturing resource planning II (MRPII): generates production plans for the firm uses a complex computerized system to integrate data from many departments lets managers make more accurate forecasts than with older systems can assess the impact of production plans on company profitability does all of the above

does all of the above

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

double taxation

In accounting, every transaction must be recorded as two entries. This system is called:

double-entry bookkeeping

When an operations manager engages in _____, he or she has purchased raw material or component parts on the Internet.

e-procurement

The first type of training and development a new employee will be exposed to is:

employee orientation

The Occupational Safety and Health Act requires:

employers to provide a safe and healthful workplace

The three major categories of applications supplied by application service providers are:

enterprise applications, collaborative applications, and applications for personal use

The first step in performance planning and appraisal is to:

establish performance standards

Who owns a corporation?

everyone who owns a share of stock in the corporation

The _____ is the value of one currency in terms of another.

exchange rate

A(n) _____ is a management support system that is customized for an individual executive. It provides specific information for strategic decision making.

executive information system

The idea that employees are motivated by their expectations, or estimates of chances for reward, is called the _____ theory.

expectancy

A(n) _____ system is a management support system that uses artificial intelligent to enable computers to reason and learn to solve problems in much the same way as humans do.

expert

The ________________ is composed of numerous outside organizations and forces that we can group into seven key subenvironments.

external environment

Financial intermediation is the process in which:

financial institutions act as intermediaries between the suppliers and demanders of funds

Which of the following is NOT a form of unemployment?

fiscal unemployment

The purchaser of a franchise is called the:

franchisee

A policy of permitting the people of a country to buy and sell where they please, without restrictions, is called:

free trade

An advertising agency that has separate departments for artwork, creative design, print advertising, radio advertising, television advertising, and specialty advertising is using _____ departmentalization.

functional

Coca-Cola Enterprises (CCE) is the largest bottler and distributor of Coke products in the world. It is organized around its North America division and its European division. This departmentalization by _____ allows CCE to respond to the demands of different markets.

geography

A ______ is a formal complaint, by an employee or by the union that management has violated some part of the contract.

grievance

The most basic measure of economic growth is the:

gross domestic product

The World Trade Organization (WTO):

has emerged as the world's most powerful institution for reducing trade barriers and opening markets

The Small Business Administration (SBA):

helps people start and manage small businesses

Which of the following is NOT a typical task performed by a supply chain manager?

hiring packers and drivers

During a typical employee performance appraisal, the employee's supervisor evaluates the employee's work in terms of:

his or her contribution to the organization

The goal of inventory management is to:

hold down costs and maintain accurate levels of inventory

International Association of Food Industry Suppliers has completed its _____ merger with the Food Processing Machinery Association. The action represents a coming together of equals in which both boards and staffs are committed to creating a new association that is stronger and better equipped to serve its members' growing needs to more effectively compete in their marketplaces.

horizontal

The equity theory is concerned with:

how fairly a worker is treated compared to coworkers

One of the keys to ethical business behavior is:

how the company's top management conducts themselves

The two types of retailing are:

in-store and nonstore

A(n) _____ is a summary of what a company has earned and spent over a given period.

income statement

Managerial accounting provides all of the following financial information EXCEPT:

income statement

The situation in which the average of all prices of products is rising is called:

inflation

A(n) _____ organization is a network of connections and channels of communication based on the informal relationships of individuals inside an organization.

informal

Regulation FD was designed to eliminate:

insider trading

The Federal Deposit Insurance Corporation (FDIC):

insures deposits in commercial banks

The three basic roles of management are:

interpersonal, decisional, and informational

The primary activity of _____ is underwriting.

investment bankers

A corporation: is a taxable entity is subject to the laws of the state in which it was formed can own property can sue and be sued is accurately described by all of the above

is accurately described by all of the above

An apprenticeship: can last as long as four years also involves classroom training is commonly found in the skilled trades of plumbing and electrical work is accurately described by all of the above is a form of on-the-job training

is accurately described by all of the above

Integrated marketing communications (IMC): is a careful coordination of all promotional activities produces a consistent and unified advertising message produces a customer-focused advertising message is typically overseen by a marketing communications director is accurately described by all of the above

is accurately described by all of the above

Key activities of the financial manager are: financial planning investment financing is accurately described by all of the choices.

is accurately described by all of the choices.

A _____ is a study of the tasks required to do a particular job well.

job analysis

The Japanese inventory system that minimizes inventory costs and provides those inputs as they are needed for a particular production run is called the ______ system.

just-in-time

Another factor influencing business ethics is _____, or what is fair according to prevailing standards of society.

justice

The original Hawthorne studies were set up to study:

lighting

A _____ offers the same liability protection as a corporation but may be taxed as either a partnership or a corporation.

limited liability company

After product specifications are set, a company must decide whether to purchase or manufacture the parts that it needs. This is called a(n) _____ decision.

make-or-buy

Chez Dove is an independent coffeehouse/bookstore that went bankrupt only eight months after opening due to an unexpected demand for cash to fix a leaking roof. Better cash _____ might have allowed the business to continue operation.

management

Making sure that enough cash is on hand to pay bills as they come due and to meet unexpected expenses is called cash:

management

A(n) _____ is the collective term that describes the methods and the equipment used to provide information about all aspects of a firm's operation.

management information system

A manufacturers' representative is sometimes called a(n):

manufacturer' agent

Which of the following is NOT a type of retailer?

manufacturers' representative

Within the distribution channel, retailers and wholesalers are called:

marketing intermediaries

The _____ is based on the five P's.

marketing mix

The ability to manufacture many goods at once is called _____ production.

mass

The typical problem-solving team:

meets on a regular basis to share information and discuss ways to improve processes

Independent wholesalers that buy goods from manufacturers on their own account and then resell them to other businesses are:

merchant wholesalers

The most important function of the Federal Reserve System is carrying out ______ policy.

monetary

After all expenses have been subtracted from revenues on an income statement, the final figure or bottom line is called the _____ when it is a negative number.

net loss

A group of two or more computer systems linked together by communications channels to share data and information is called a computer:

network

A LAN is a:

network of computer systems that share the use of software and hardware

The standards used to determine whether a group member's actions are acceptable are called group:

norms

An industry in which a few firms produce most or all of the output of a product and in which large amounts of capital are needed is called a(n):

oligopoly

Gantt charts are most helpful when:

only a few tasks are involved

If a unionized company has a(n) ______ shop, the workers do not have to join the union, and they do not pay dues or fees to the union.

open

Which of the following is NOT a type of ratio analysis used by managers to interpret the numbers in financial statements?

operating

A(n) _____ is a picture of the relationships among tasks and those employees given authority to do those tasks.

organization chart

An entrepreneur is a person who _____ a business.

owns and operates

Ease of formation, flexibility, and diversity of management are advantages of the _____ form of business ownership.

partnership

Which of the following is NOT one of the six steps in the accounting cycle?

paying accounts payable

Dividends are:

payments to the shareholders from company earnings

A face-to-face sales presentation of a good or service to a prospective customer is called:

personal selling

When union members carry signs and march near the entrance of their employer to publicize their view of the dispute and discourage customers, they are engaging in:

picketing

Human resource _____ is the creation of a strategy for meeting future human resource needs.

planning

The two new-product pricing strategies most often used by marketers are:

price skimming and penetration pricing

Accountants employed within organizations are called:

private accountants

The purchasing function, sometimes called _____, is an important part of any firm's production strategy.

procurement

The three main types of facility layouts are:

product, process, and fixed-position

Channels of distribution make distribution easier by performing all of the following functions EXCEPT:

production

Production and operations management involves three main types of decisions that are made at three different stages. The first type of decision to be made deals with:

production planning

The _____ is the combination of advertising, personal selling, sales promotion, and public relations used to promote a product.

promotional mix

Which of the following is NOT a need identified in Maslow's hierarchy of needs?

psychological needs

Pricing a product at $399.99 instead of $400 to make the customer view the price as in the $300 range instead of the $400 range is an example of:

psychological pricing

Any communication or activity designed to win goodwill or prestige for a company or person is called:

public relations

The process of creating quality standards and measuring finished goods and services against standards is called:

quality control

Managers typically follow five steps in the decision-making process. The first step is to:

recognize or define the problem or opportunity

Customer satisfaction:

refers to the customer's feeling that a product has met or exceeded expectations

Strategic giving:

refers to the practice of tying philanthropy closely to the corporation's mission or goals

The Securities Act of 1933:

requires full disclosure of information about new securities issues

The three principal tools of the Federal Reserve System are:

reserve requirements, discount rate, and open market operations

The Sarbanes-Oxley Act:

restricts the types of nonaudit services auditors can provide audit clients

The funds that are reinvested in the firm out of profits and after dividends are paid are called:

retained earnings

Which of the following terms equals the total profits of a company minus all dividends (distributions of profits) to stockholders?

retained earnings

The dollar amount of sales plus any other income received from sources like interest and dividends is called:

revenues

The two key aspects of production control are:

routing and scheduling

Which of the following is a disadvantage for the fast-food franchisee?

royalty fees

Items that groups of people use as money must be _____ to be acceptable mediums of exchange.

scarce, divisible, portable, and durable

The tool most widely used in making hiring decisions is the:

selection interview

Capital budgeting:

selects asset proposals for maximum profitability

Many organizations that experienced success using problem-solving teams expanded the team concept to allow team members to have greater responsibility in making decisions, implementing solutions, and monitoring outcomes. These highly autonomous groups are called:

self-managed work teams

Inventory management performs all of the following tasks EXCEPT:

selling

A corporation's board of directors:

sets major corporate goals and policies

Protected classes are:

specific groups that are protected against employment discrimination

A(n) _____ is a summary of the money flowing into and out of a firm.

statement of cash flows

A(n) _____ is the financial statement that is used to assess the sources and uses of cash flow during the year.

statement of cash flows

Accounting involves the _____ of the financial activities for firms.

summarizing

Most firms have three distinguishable levels of management. They are:

supervisory, middle, and top

The _____ is the entire sequence of securing inputs, producing goods, and delivering goods to a customers.

supply chain

Electronic data interchange (EDI) is an important communications tool for:

supply chain management

The _____ is a specific group of consumers toward which a firm directs its marketing efforts.

target market

Three important forms of long-term (capital) expenditures are:

term loans, mortgage loans, and bonds

According to _____, workers respond to attention from superiors, and they like their opinions to be valued.

the Hawthorne effect

According to expectancy theory, the probability of an individual acting a particular way depends on the strength of the individual's belief that:

the act will have a particular outcome and on whether the individual values that outcome

Who provides the start-up financing for the majority of new small businesses?

the business owner and his or her family and friends

The C Corporation is another term for:

the conventional form of corporation

Elton Mayo, America's first industrial psychologist, was responsible for formulating:

the explanation of the Hawthorne effect

Why do companies engage in outsourcing?

to cut costs and to satisfy labor needs

The three basic levels of the managerial hierarchy are:

top, middle, and supervisory

The three main types of unsecured short-term loans are:

trade credit, bank loans, and commercial paper

The four major groupings of consumer products are:

unsought, convenience, shopping, and specialty

What is the primary difference between a merchant wholesaler and an agent?

whether it takes title to the product ???

A company that is experimenting with flextime, telecommuting, and job sharing is interested in:

work-scheduling options needed to retain quality employees

_____ move resources, goods, services, and skills across national boundaries without regard to the country in which they are headquartered.

Multinational corporations

_____ are entrepreneurs who start a series of companies.

Multipreneurs

_____ is financing obtained from investment firms that specialize in financing small, high-growth companies and receive an ownership interest and a voice in management in return for their money.

Venture capital

_____ is at the core of most business failures.

Inadequate planning

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 company is called a:

merger

Many classic entrepreneurs are _____ who start small and plan to keep their business small.

micropreneurs

A market in which there are a large number of firms that differentiate their products is called:

monopolistic competition

An enterprise in which two or more firms or investors (including governments) share ownership of a business and its property rights is called a(n):

joint venture

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

Demand

The _____ of any country is measured by the output of goods and services people can buy with the money they have.

standard of living

Nations sometimes form free-trade associations and establish areas where there are few, if any, export and import duties or other regulations that would act as barriers to trade among partners. These are called:

free trade zones

One way to ease the burden of managing a business is to:

hire outside consultants

Social investing:

is the practice of limiting investments to companies that have ethical policies that match those of the investor

A _____ is when two or more companies form a special entity to undertake a specific project, usually for a specific period of time.

joint venture

A decline in real GDP that lasts for two consecutive quarters is called a(n):

recession

The goal of ______ is to redesign business processes to achieve improvements in cost control, product quality, and customer service.

reengineering

The most common form of business organization is the:

sole proprietorship

In perfect competition, there is:

a large number of sellers producing nearly identical products

The person who takes the risk of starting and managing a business to make a profit is called a(n):

entrepreneur

A company with few managerial levels and a short chain of command usually has a wide span of control. This is called a _____ organizational structure.

flat

When demand and supply meet, the price of the product or service is established. This is the point of:

equilibrium

Inputs, such as natural resources, labor, capital, and entrepreneurship, are known as:

factors of production

A(n)_____ occurs if a country's total expenditures are higher than the revenues received from the taxes it gathers.

federal budget deficit

_____ is the set of moral standards for judging whether something is right or wrong.

Ethics

_____ is the amount of money remaining from a firm's sales revenue after it deducts production costs, interest costs, and taxes.

Profit

_____ is all the money a company earns from providing services or selling goods to customers.

Revenue

Privately owned and managed _____ are licensed by the SBA and provide long-term financing for small businesses.

Small Business Investment Companies

_____ are all the individuals or groups to whom a business has a responsibility.

Stakeholders

The original purpose of the _____ was to help build infrastructure in developing countries and to help relief the debt burden of these countries.

World Bank

When a single firm accounts for 100 percent of industry sales, it is an example of:

a pure monopoly

IBM purchased MRO Software Inc. for $740 million. MRO was a niche provider of software and services to help customers including nuclear power plants and oil companies. IBM, plans to fold MRO into its software unit. This is an example of a(n):

acquisition

__________________ fall into two broad categories: freemarket, or capitalism; and planned economies, which included communism and socialism.

economic systems

A total prohibition against importing certain products is called a(n):

embargo

A(n) _____ organization is characterized by a relatively low degree of job specialization, loose departmentalization, few levels of management, wide spans of control, decentralized decision making, and a short chain of command.

organic

A common use of business plans is to:

persuade lenders and investors to finance the venture

Fiscal policy is concerned with:

taxation and spending

_____ are organizations formed by individuals or businesses with similar interests to achieve greater economies of scale and economic power through collective ownership.

Cooperatives

______ is the legitimate power granted by the organization and acknowledged by the employees.

Authority

______ is the practice of giving a great deal of authority and decision-making freedom to lower-level managers.

Decentralization

______ is the sharing of job duties and authority with subordinates.

Delegation of authority

_____ are entrepreneurs who apply their creativity, vision, and risk taking within a large corporation rather than starting a company of their own. They enjoy a high degree of autonomy while receiving a regular salary and financial backing from their employer.

Intrapreneurs

_____ is a philosophy that focuses on the consequences of an action to determine whether it is right or wrong. This philosophy holds that an action that affects the majority adversely is morally wrong.

Utilitarianism

If a country specializes in goods that it can produce most readily and cheaply and trades those goods for the goods that another country can produce most readily and cheaply, then both countries are exercising the principle of:

comparative advantage

The number of people or subordinates that a manager effectively controls and directs is called the manager's span of:

control

A _____ is a form of trading arrangement in which part or all of the payment for purchased goods or services is in the form of other goods and services.

countertrade

A country's _____ is the set of beliefs, values, and social norms shared by members of a society that determines what is socially acceptable.

culture

The national debt is the:

cumulative total of past national deficits

The two forms of business financing are _____ (borrowed funds) and _____ (ownership funds).

debt; equity

The two types of inflation are:

demand-pull and cost-push

The quantity of a product or service that businesses will make available at various prices is called:

supply

A company with a narrow span of control, which tends to have many managerial levels and a long chain of command, is said to have a ______ organizational structure.

tall

A(n) _____ is a tax levied by a nation on imported goods.

tariff

The quality of life is:

the general level of human happiness based on such things as life expectancy, educational standards, health, sanitation, and leisure time

A term that means that business damages and/or debts can also be attached to the personal assets of the owners is ______ liability.

unlimited

_____ is the practice of charitable giving by corporations; includes contributing cash, donating equipment and products, and supporting the volunteers' efforts of company employees.

Corporate philanthropy

The _____ is the total amount of money that flows in and out of a country.

balance of payments

The _____ is defined as the difference in value of a country's exports and imports over a period of time.

balance of trade

The difference between the dollar value of a countries exports and imports represents a:

positive balance of payment

The merger of McKesson, the leading U.S. drug wholesaler, and HBOC, a producer of health-care inventory software, is an example of a(n) _____ merger.

vertical

The _____ corporation is a network of independent companies linked by information technology to share skills, costs, and access to one another's markets.

virtual

_____ refers to sending work functions to another country resulting in domestic workers losing their jobs.

Outsourcing