Principles of Business RC Quiz questions
Which of the following bonds grants the issuer the right to pay off the bond prior to the maturity date? A. Convertible bond B. Series EE bond C. Callable bond D. Serial bond E. General obligation bond
Callable bond
In a market-based economy, which of the following is a fundamental force? A. Competition B. Natural resources C. Social environment D. Technology E. Government
Competition
Which of the following indices tracks the 30 largest capitalized public companies in the United States? A. Amex Composite B. VINX30 C. NASDAQ 100 D. S&P 500 E. DJIA
DJIA
During which stage of the product life cycle are sales of a product expected to peak? A. Growth B. Embryonic C. Decline D. Maturity E. Introduction
Maturity
Which function of management involves assigning tasks and authority, grouping tasks into departments, and allocating physical and human resources to ensure that the work of the company can be carried out efficiently and effectively? A. Organizing B. Monitoring C. Leading D. Planning E. Controlling
Organizing
Having to deal with older generations is an aspect of which of the following environments? A. Natural B. Competitive C. Political D. Technology E. Social
Social
Which of the following is a common B2B sales promotion technique? A. Frequent-user incentives B. Trade allowances C. Free samples D. Point-of-purchase displays E. Coupons
Trade allowances
Steven owns a restaurant that routinely orders supplies from a national vendor of restaurant cleaning products. The national vendor bills Steven for the supplies, and Steven is supposed to issue payment within 30 days, but if he pays earlier -- within 10 days of receiving the bill, the vendor will deduct 4 percent from Steven's bill. What type of financing option does Steven use? A. Line of credit B. A microloan C. Factoring D. Commercial paper E. Trade credit
Trade credit
Which government debt security must be purchased directly from the U.S. government rather than on the secondary market? A. Treasury bills (T-bills) B. U.S. savings bonds C. Treasury Inflation-Protected Securities (TIPS) D. Treasury notes (T-notes) E. Floating rate notes (FRNs)
U.S. savings bonds
In 2013, berry pickers at Sakuma Farms went on strike. Joined by supporters along the Pacific Coast, they encouraged consumers not to purchase berries sold by Sakuma Farms at stores like Costco and Whole Foods. This is an example of _______. A. strikebreakers B. a lockout C. picketing D. arbitration E. a boycott
a boycott
China, the world's largest clothing producer, has a(n) __________ over other countries that produce apparel. A. offshoring advantage B. absolute advantage C. trade surplus D. licensing advantage E. comparative advantage
absolute advantage
Paid, non-personal mass communication from an organization or individual that is intended to persuade or influence a targeted audience is referred to as _______. A. public relations B. publicity C. a sales promotion D. personal selling E. advertising
advertising
Ennio dowloaded __________ onto his computer by mistake, Now every time he opens his browser, it displays a ton of unwanted and annoying ads. A. adware B. a database C. shareware D. a virus E. spyware
adware
Telecommuting __________. A. requires companies to acquire and maintain more office space B. is a trend that has started to decline C. means employees only work from home D. causes an increase in travel costs E. allows companies to employ people from around the globe
allows companies to employ people from around the globe
Alicia has been investing for several years and has divided her portfolio among different asset categories, such as stocks, bonds, and even commercial real estate. This is referred to as _______. A. the risk-return relationship B. asset allocation C. diversification D. compound interest E. insider trading
asset allocation
Variable
chief financial officer
The process through which the union negotiates with management on issues such as wages, insurance, benefits, and grievance procedures is known as _______. A. mediation B. the bargaining unit C. arbitration D. collective bargaining E. a boycott
collective bargaining
Shareholders who own _______ stock are entitled to elect a board of directors and can vote on various aspects of corporate policy. A. primary B. preferred C. mutual D. common E. capital
common
The United States has seen a significant percentage of its steel production move to nations that can produce the product for a cheaper price. The means that the United States has lost its _________ in the steel industry. A. competitive advantage B. equitable positioning C. absolute dominance D. comparative advantage E. market access
competitive advantage
A locally-operated credit union is an example of a __________. A. not-for-profit business B. limited liability company C. sole proprietorship D. partnership E. cooperative
cooperative
The _______ product is the benefit of the product that makes it valuable to the consumer and motivates his/her purchase. A. core B. total C. actual D. enhanced E. augmented
core
The interest rate on a bond is also known as its __________. A. coupon B. par value C. dividend D. load E. debenture
coupon
All of a company's inventory records, customer purchases, customer preferences, and tax records are recorded in a database. Until these items are sorted into a format that is useful, all of these records are just ________. A. hard copies B. information C. transactions D. data E. software
data
Toyota has a car brand geared toward young drivers who are most likely purchasing their first new car. Toyota is practicing __________ because it is segmenting its market by age and income. A. targeted marketing B. demographic segmentation C. geographic segmentation D. positioning E. psychographic segmentation
demographic segmentation
The intentional adjustment of the value of a country's currency by its government is known as _______. A. surplusing B. devaluing C. depreciating D. revaluing E. laundering
devaluing
Darcy won $20,000 from the State Lottery. She intends to invest her winnings in the stock market. Following her grandfather's advice, Darcy decides to purchase $2,000 of stock in ten different companies, all in different sectors of the economy. What is Darcy's investment strategy known as? A. insider trading B. diversification C. the risk-return relationship D. market risk E. asset allocation
diversification
Jason puts in long hours finalizing his presentation because he believes that if he does well then he will get a promotion. In this case, Jason is motivated by _________. A. extrinsic motivators. B. instrumentality C. physiological needs D. intrinsic motivators E. hygiene factors
extrinsic motivators
Full owners of an unincorporated business who share equal amounts of risk are __________. A. full partners B. limited partners C. investors D. master partners E. general partners
general partners
One of the ways that a company can extend a product's life cycle during the _______ stage is to lower the price. A. embryonic B. decline C. maturity D. introduction E. growth
growth
Jennifer's job inside the company is to review resumes to identify potential candidates to itnerview. It is most likely likely that Jennifer works in _______. A. human resource management B. operations management C. employment contracts D. labor relations E. employee training and development
human resource management
TV programs that are devoted exclusively to promoting a product or service are known as _________. A. testimonials B. public relations C. sales promotions D. infomercials E. product placements
infomercials
George will buy only Yoplait yogurt; he will not buy any other brand of yogurt. If the store doesn't have any Yoplait in stock, he will buy a different type of healthy food rather than buy a different yogurt. George's level of brand loyalty would BEST be described as brand _______. A. insistence B. awareness C. preference D. recognition E. equity
insistence
Ming runs a small manufacturing shop. His runs are short, due to the customized nature of the products his customers order. Ming uses __________ because his production runs are short, and he needs to swap out equipment to accommodate product changes. A. intermittent processes B. mass customization systems C. flexible manufacturing systems D. a fixed-position layout E. continuous flow production
intermittent processes
Joe's job as an mailroom attendant requires him to deliver incoming letters and packages to recipients' desks and offices. and collect outgoing mail for pickup by The US Postal Service and FedEx. These duties are part of Joe's __________. A. job analysis B. job description C. work benefits D. job title E. workforce profile
job description
Jennfier's company decides to buy a large office complex and proceeds to finance the purchase using bond sales. Despite the fact that Jennifer's company will have to pay 8% interest on the bonds, she is confident that the complex will provide a significantly greater return for the company. This example BEST describes _______. A. factoring B. liquidity C. venture capital D. equity financing E. leverage
leverage
Product _______ refers to the number of different product lines a company offers. A. life cycle B. differentiation C. mix length D. mix width E. line length
mix width
Quickly Boba Milk Tea has an advertising campaign which sends messages to your smart phones telling you how many miles you are from a Quickly location and gives you an offer for $1 off a Boba drink product. This is an example of _______. A. an infomercial B. mobile marketing C. viral advertising D. Internet advertising E. product placement
mobile marketing
According to Herzberg's motivator-hygiene theory, responsibility, recognition, promotion, and job growth are all __________ factors. A. safety B. extrinsic C. motivator D. hygiene E. intrinsic
motivator
A company that produces its products in another country, usually to save on labor costs, is engaged in __________. A. onshoring B. offshore outsourcing C. a joint venture D. a multidomestic strategy E. insourcing
offshore outsourcing
Through equity financing, investors become _______ of the company. A. employees B. creditors C. customers D. owners E. debtors
owners
Nancy owns a gas station in a small town. Her friend Chuck owns the only other station in the community. One day, Nancy and Chuck get together and decide to drastically raise their prices. This is an example of _______. A. price fixing B. whistle-blowing C. a Ponzi scheme D. situational ethics E. socially responsible investing
price fixing
Samadhi is responsible for acquiring the materials and services needed to manufacture televisions. Samadhi is most likely a _______ manager. A. purchasing B. project C. production D. process E. quality control
purchasing
A whistle-blower is someone who __________. A. reports corporate misconduct B. fines companies for illegal activity C. reports ethical behavior to clients D. investigates wrongdoing by a company E. takes credit for company wrongdoings
reports corporate misconduct
Muncel owns a minor portion of equity in his great-aunt's electric vehicle factory, which is a C corporation. This makes him a __________. A. member of the Board of Directors B. shareholder C. chief operations officer D. limited partner E. general partner
shareholder
Once a salesperson has identified potential suitable customers, the next step is to learn as much as possible about those customers to determine their wants and needs and determine how the company's products can best meet those needs. This process is referred to as _______. A. qualifying the prospect B. the actual approach C. prospecting D. the pre-approach E. the follow-up
the pre-approach
Competition includes __________. A. two or more businesses that sell similar products and services operating in a market-based economy B. only one company selling a product or service C. the amount of money left over after all expenses are accounted for D. ignoring customer satisfaction E. preventing a company from making better products
two or more businesses that sell similar products and services operating in a market-based economy
Stephanie works for a publishing firm. Every year, she invites existing and potential customers to test and provide feedback for her firm's upcoming titles. What is this activity known as? A. A meet and greet B. Promotion C. Environmental scanning D. A focus group E. Product placement
A focus group
Rob is a stern leader. His favorite saying is, "It's my way, or the highway!" What type of leader does this behavior fit best? A. A democratic leader B. An affiliative leader C. A laissez faire leader D. A visionary leader E. An autocratic leader
An autocratic leader
Quincy works for a large supermarket chain, and he has noticed that many of his product lines are not selling as well as he would like in many markets. What kind of application can he use to help forecast sales numbers for the product lines which he is concerned about? A. Enterprise social networking B. A data mart C. An online analysis package D. A data mine E. An electronic monitoring system
An online analysis package
Digital Electronics LLC purchases a high-volume wave soldering machine for use in its manufacturing facility. How would this product be BEST classified? A. As a maintenance, repair, operating (MRO) product B. As equipment C. As a specialized professional service D. As a component part E. As a raw and processed good
As equipment
Which of the following production layouts would be most appropriate for producing large quantities of goods that are identical to one another? A. Process layout B. Fixed-position layout C. Batch system D. Assembly line E. Cellular layout
Assembly line
The fundamental accounting equation is: ________. A. Net Income divided by÷ Loss = Revenue - Expenses B. Assets = Liabilities + Owners' Equity C. EPS = Net Income ÷ Outstanding Shares D. Owners' Equity = Assets + Liabilities E. Owners' Equity = Assets ÷ Liabilities
Assets = Liabilities + Owners' Equity
Sweden does a lot of business with the rest of the world. What is Sweden's summary of transactions with the rest of the world, including payments, financial aid, and gifts, called? A. Summary of payments B. Balance of payments C. International trade summary D. Trade surplus E. Balance of trade
Balance of payments
Which of the following is the best example of an oligopoly? A. Car manufacturers in Germany B. High schools in the United States C. Health Spas in Los Angeles D. Apple OS X operating system E. Mexican bakeries in El Paso, Texas
Car manufacturers in Germany
Trevor's job is to develop algorithms that scour the company's data mart to determine customer purchasing preferences. What does Trevor spend most of his day doing? A. Data entry B. Electronic monitoring C. Big data analysis D. Hacking E. Data mining
Data mining
__________ help managers to make better business choices by using data to predict the impact of business decisions. A. Data warehouses B. Data mines C. Decision support systems D. Database management systems E. Big data analysis processes
Decision support systems
One of the reasons Tasha has invested in the stock of a healthcare company is that, regardless of whether the economy is weak or strong, people still need to go to the doctor and buy medications. So, Tasha figures the stock's price won't fluctuate much. In what type of stock is Tasha investing? A. Income stock B. Value stock C. Growth stock D. Defensive stock E. Cyclical stock
Defensive stock
Kahlia is a project manager who is trying to ensure that each task in her project is being completed, and is also concerned with how long each task will take. What kind of chart should Kahlia use to keep track of her project? A. PERT chart B. Project chart C. Timeline chart D. Gantt chart E. Gannon chart
Gantt chart
Which of the following is NOT a type of economic system? A. Planned economy B. Free market economy C. Mixed economy D. Global economy E. Controlled economy
Global economy
Which of the following brings ecological concerns into business decisions? A. Globalization B. Green economy C. E-commerce D. Capitalist economy E. Market-based economy
Green economy
Which of the following is an advantage of debt financing? A. Company profits are retained or paid to shareholders rather than being used to repay debt. B. Interest payments are tax deductible. C. The company does not have to generate cash flow to pay interest and the principal. D. No payments to shareholders are required. E. No collateral is required.
Interest payments are tax deductible
Which of the following statements about a corporation is true? A. It cannot own property. B. It pays no taxes on profits (if it is a for-profit). C. It cannot be sued. D. It is a separate entity from its owners. E. It is dissolved when the owner dies.
It is a separate entity from its owners.
When a store sells an item to a customer, the store transfers possession from the store to the consumer. Which type of utility does this best describe? A. Value utility B. Place utility C. Time utility D. Ownership utility E. Possessor utility
Ownership utility
Paolo is part of a group that hires the corporation's management team, helps set the corporation's policies, and authorizes the issuance of stock. What is most likely Paolo's role in the firm? A. Paolo is a consultant. B. Paolo is on the company's Board of Directors. C. Paolo is a line manager. D. Paolo is the CFO. E. Paolo is a middle manager.
Paolo is on the company's Board of Directors.
Walmart is considering adding banking services to its superstores to allow consumers to cash checks for a small fee. This is an example of which type of utility? A. Task utility B. Place utility C. Time utility D. Form utility E. Value utility
Place utility
Which of the following best describes seasonal unemployment? A. Seasonal unemployment involves businesses or industries that need workers only at certain times of the year. B. Seasonal unemployment is not an important type of unemployment. C. Seasonal unemployment is a type of structural unemployment. D. Seasonal unemployment is a permanent type of unemployment. E. Seasonal unemployment does not involve agricultural workers.
Seasonal unemployment involves businesses or industries that need workers only at certain times of the year.
An end-of-aisle display of the new fall colors of lipstick features a coupon for $2 off the purchase. This is an example of _______. A. personal selling B. viral marketing C. a consumer sales promotion D. a trade sales promotion E. public relations
a consumer sales promotion
Mariah is a manager who does not enjoy having employees actively participate in the decision-making process. She believes that she knows best when it comes to making decisions. She would best be described as a(n) ________ leader. A. visionary B. dictatorial C. autocratic D. aristocratic E. democratic
autocratic
Until recently, the United States virtually forbade trade with Cuba. This was known as a(n) __________. A. free-trade agreement B. embargo C. subsidy D. comparative advantage E. tariff
embargo
Employment at will, in most states, means __________. A. employees are locked into complicated contracts and can be sued if they try to resign without employer permission B. employers can fire employees at any time for any reason, and employees can leave employment at any time for any reason C. employers must have very specific criteria when firing employees D. employees can quit at any time for any reason, and employers can do the same as long as they are willing to hire a replacement worker right away E. employers can hire anyone they want, but can only fire non-minorities without cause
employers can fire employees at any time for any reason, and employees can leave employment at any time for any reason
The physical arrangement and interaction of human and physical resources in the production process is known as _______. A. process layout B. operations management C. location planning D. facility layout E. capacity planning
facility layout
A recession __________. A. means that suppliers are likely to increase the prices of their goods and services B. occurs when an economy slows down for one quarter C. only happens every 50 years, on average D. is a decline in the gross domestic product (GDP) for two or more consecutive quarters E. is unlikely to occur in a free-market economy
is a decline in the gross domestic product (GDP) for two or more consecutive quarters
A depression __________. A. can only be resolved through government intervention B. is the height of the business cycle C. results in higher demand for goods and services D. is a short-term situation E. is usually associated with falling prices (deflation)
is usually associated with falling prices (deflation)
The study of how individual businesses, families, and shoppers make decisions to distribute their limited resources in the exchange of products and services is known as _________. A. microeconomics B. marketing C. supply and demand study D. the consumer price index E. macroeconomics
microeconomics
If you go into an Ace Hardware store, you can purchase paint, tools, and garden products bearing the Ace Hardware name. However, Ace Hardware doesn't manufacture these products; it merely sells them in its nationwide retail stores. This is an example of a _______. A. generic brand B. family brand C. co-brand D. private brand E. manufacturer's brand
private brand
Forrester Research sells online data analysis seminars to businesses that don't want to do this kind of training in-house. This form of business model mostly involves which of the following? A. Business-to-business transactions B. Business-to-government transactions C. Peer-to-peer transactions D. Business-to-consumer transactions E. Consumer-to-consumer transactions.
Business-to-business transactions
Which chart, also known as a fishbone diagram, is used to identify all the contributing factors to a problem? A. Run chart B. Scatter plot .C. Histogram D. Pareto chart E. Cause-and-effect diagram
Cause-and-effect diagram
A company's statement of cash flows reflects the cash flow generated by which of the following business activities? A. Current assets, fixed assets, and intangible assets B. Operating, investing, and financing C. Assets, liabilities, and owners' equity D. Sales, production, and cost of goods sold E. Revenue, expenses, and net income
Operating, investing, and financing
Colin is a manager who loves finding what his employees are good at, then placing them in positions in his company in which they will excel. Colin is a huge believer in what type of management? A. Weakness-elimination management B. Management by inspiration C. Strength-based management D. Laissez-faire management E. Autocratic leadership
Strength-based management
When you purchase a soft drink, the taste of the beverage and its color are part of the ________ product; the soft drink's benefits of quenching thirst and providing energy are part of the ________ product. A. actual; augmented B. core; augmented C. core; actual D. actual; core E. augmented; core
actual; core
Camille, an electronics engineer, is a member of a new product development team with members of mechanical engineering, quality assurance, manufacturing, marketing, and accounting. On what type of team does Camille work? A. A cross-functional team B. A telecommuting team C. A static team D. A virtual team E. A strength-based team
A cross-functional team
__________ segmentation is market segmentation based on factors that would cause a consumer to have very specific buying habits, such as purchasing the same brand of car, regardless of quality or price. A. Psychographic B. Geographic C. Focus D. Behavioral E. Secondary
Behavioral
Jacob feels like he must be a well-liked member of a group in order to have self-worth. Which level of needs in Maslow's hierarchy of needs does this best reflect? A. Safety B. Physiological C. Belonging D. Self-actualization E. Achievement
Belonging
Saadia is responsible for the overall operation of the company for which she works, and reports directly to the Board of Directors. Which of the following is most likely Saadia's job title? A. Chief financial officer B. Chief executive officer C. Chief technology officer D. Chief security officer E. Chief operating officer
Chief executive officer
A labor union uses what primary tactic to increase the pay and improve the working conditions of union members? A. A strike B. Picketing C. Collective bargaining D. A boycott E. A lockout
Collective bargaining
Sean is a salesman who earns his compensation as a percentage of all the sales that he closes. Sean is compensated by _________. A. Per-unit production profit sharing B. Bonuses C. Salary D. Commission E. Hourly wage
Commission
Which function of management is most concerned with ensuring that employees are performing to operational standards? A. Leading B. Controlling C. Staffing D. Planning E. Organizing
Controlling
In 2014, Twitter sold $1.8 billion of bonds that give bondholders the right to exchange the securities for shares of the company's stock at a price of $77.64 per share. What type of bonds has Twitter issued? A. Convertible bonds B. Debenture bonds C. Callable bonds D. Secured bonds E. Serial bonds
Convertible bonds
Which of the following statements is true of complementary goods? A. Complementary goods are not a determinant of demand. B. Complementary goods are consumed separately. C. Complementary goods decrease the value and demand of a related good. D. A decrease in demand of one good would increase demand of its complementary good. E. Complementary goods are typically consumed together.
Complementary goods are typically consumed together.
Which of the factors below is LEAST LIKELY to shift the supply of a good or service? A. Changes in resource prices. B. The number of suppliers. C. The number of substitute goods. D. Price expectations. E. Complementary goods.
Complementary goods.
_______ skills enable a manager to solve problems, formulate processes, and understand the relationship between ideas, concepts, patterns, and symbols. A. Conceptual B. Decision-making C. Manual D. Interpersonal E. Technical
Conceptual
Jim owns an auto detailing business and is considering expanding his offerings to include weather and dent repair. Before Jim makes a decision to expand his business, what activity would he be wise to engage in first? A. Conducting market research B. Developing a new marketing plan for the expansion C. Building a customer relationship management system for his business D. Developing an advertising and promotional campaign. E. Implementing the marketing mix for his new product offerings
Conducting market research
Which behavior includes the ways people or businesses evaluate goods and services they may be interested in purchasing? A. Brand research B. Consumer inaction C. Positioning D. Business behavior E. Consumer behavior
Consumer behavior
Jonas works at Trader Joe's during the Thanksgiving holiday season. The rest of the year he is a stay-at-home dad. Which of the following best describes Jonas' employment status at Trader Joe's? A. Full-time employee B. Job-sharing C. Consultant D. Contingent worker E. Independent contractor
Contingent worker
Omni Hotels is renowned for having an environment in which customers are treated like royalty, and employees are treated even better. What term below best describes this situation? A. Theory X environment B. Emotional intelligence C. Visionary leadership D. Expectancy theory E. Corporate culture
Corporate culture
Which of the following refers to how much of a good or service people want to buy at any given time? A. Supply B. A shortage C. Demand D. A surplus E. Equilibrium
Demand
Todd's daughter was born early and spent the first three weeks of her life in the hospital. Todd is very happy that his company provides excellent health insurance to its employees. What program is Todd thankful his company provides? A. Work/life benefits B. Alternative scheduling arrangements C. Employee benefits D. Job sharing E. Family and Medical Leave Act
Employee benefits
Stephanie and Nicole are two fashion-conscious friends who both work at a clothing store. Stephanie started the store a few years ago and owns the business. Nicole was hired into the store last month as a sales clerk. Which term best describes their business relationship? A. Owner and investor B. Partners C. Employer and employee D. Cooperative E. Stockholders
Employer and employee
Drew wants to make sure his efforts at work are rewarded fairly, in a way that is comparable to his co-worker Aryanna. Which theory of motivation would this best reflect? A. Motivator-hygiene theory B. Theory Y C. Equity theory D. Three needs theory E. Expectancy theory
Equity theory
In order to raise cash to meet its next payroll, RTS Enterprises sold its accounts receivable to a third-party financial company. By doing this, RTS Enterprises didn't have to wait until its customers paid their invoices and could meet its short-term cash needs. What type of financing did RTS Enterprises use? A. A microloan B. Commercial paper C. Factoring D. A line of credit E. An unsecured loan
Factoring
Which of the following regarding enterprise resource planning (ERP) is true? A. ERP systems require different databases for each functional area of business. B. ERP is only used for inventory and process schedules. C. Firms can use it to integrate inventory and process schedules, and can integrate these functions with other areas of the business, like finance, marketing, and human resources. D. ERP is effective for inventory and process schedules but cannot share information across departments. E. Microsoft is the only company that produces ERP systems.
Firms can use it to integrate inventory and process schedules, and can integrate these functions with other areas of the business, like finance, marketing, and human resources.
Which of the following products would be classified as a shopping good or service? A. Candy bar B. Emergency medical service C. Flat screen TV D. Yogurt E. Zac Posen wedding gown
Flat screen TV
Which term describes the temporary unemployment that results when workers move between jobs, careers, and locations? A. Cyclical unemployment B. Structural unemployment C. Unemployment rate D. Seasonal unemployment E. Frictional unemployment
Frictional unemployment
A team of managers is sitting around a table discussing ideas for how to solve a complex business problem. The head manager suggests a course of action, and most of the team agrees completely without any dissenting viewpoints. Others have objections but do not speak up and share them with the team. What is this an example of? A. The Hawthorne effect B. Strength-based management C. Theory X D. Visionary leadership E. Groupthink
Groupthink
Hannah is a U.S. entrepreneur who is interested in selling Italian-made shoes in her store in Nebraska. What business practice is Hannah engaged in? A. Offshoring B. Importing C. Licensing D. Franchising E. Exporting
Importing
Which of the following financial statements would show a company's revenues and expenses during a particular period as well as the profitability of the company during that time interval? A. Operating (master) budget B. Balance sheet C. Income statement D. Statement of cash flows E. Statement of retained earnings
Income statement
Which term describes an increase in the general level of prices over time? A. Depression B. Inflation C. Deflation D. Surplus E. Disinflation
Inflation
After seeing a program on television boasting the various benefits of the Ninja Super Smoothie Blender featuring Ryan Gosling, Stewart quickly picked up his mobile and called the toll-free number to place an order. Which type of advertising does this TV program represent? A. Direct mail advertising B. Infomercial C. Online advertising D. Mobile marketing E. Product placement
Infomercial
__________ are used to help managers use information technology resources to help run a business more effectively. A. Information systems B. Database management systems C. Electronic monitoring systems D. Data warehouses E. Cloud computers
Information systems
A clothing manufacturer grants a company in India the exclusive rights to produce and sell its clothing under the manufacturer's brand name in the Indian market. In exchange, the Indian company pays a royalty fee to the clothing manufacturer. What business strategy does this example reflect? A. A wholly-owned subsidiary B. A strategic alliance C. A franchising agreement D. Outsourcing E. Licensing
Licensing
Gorditos is a restaurant in Seattle that has been in business for over 20 years. It is phenomenally successful, and the owners have been asked on several occasions if they have any plans for expansion or starting a franchise, but they have no desire to do so or grow the business in any way. What type of entrepreneurs are they? A. Microintrapreneurs B. Growth entrepreneurs C. Micropreneurs D. Social entrepreneurs E. Macropreneurs
Micropreneurs
Frederic is the Manager of Finance for a large yoga clothing manufacturing company. In this role, he is responsible for developing specific plans for his department to carry out the company's strategic plan. What type of manager is Frederic? A. First-line manager B. Middle manager C. Staff manager D. Line manager E. Top manager
Middle manager
_________ is the perspective that there is no universal moral truth but only a person's individual beliefs, perspectives, and values. A. Amorality B. Unethical behavior C. Personal ethics D. Moral relativism E. Situational ethics
Moral relativism
Esteban launches his browser and navigates to netflix.com. At the top, bottom, and side of his screen ads for motorbicycles. What term best describes what he is experiencing? A. Online advertising B. Viral marketing C. Social media monitoring D. Data mining E. Adware
Online advertising
Todd is a first-line manager for a local gas station. He is creating a plan for employees that lays out what needs to be done on a daily basis to run the store. What type of plan is Todd creating? A. Tactical plan B. Mission plan C. Long-term success plan D. Strategic plan E. Operational plan
Operational plan
Which of the following is a source of long-term financing for a corporation? A. Trade credit B. Securities C. Factoring D. Demand deposit E. Commercial paper
Securities
The U.S. federal agency responsible for governing securities exchanges, protecting investors, and establishing regulations that govern the disclosure of information to investors is the _______. A. NYSE Euronext B. Interstate Commerce Commission (ICC) C. NASDAQ D. Federal Trade Commission (FTC) E. Securities and Exchange Commission (SEC)
Securities and Exchange Commission (SEC)
Which is the simplest type of business ownership? A. Not-for-profit organization B. C corporation C. Limited liability company D. S corporation E. Sole proprietorship
Sole proprietorship
__________ is software that sits on a computer, usually in the background, and collects information, usually for identity theft or other illegal purposes. A. Adware B. Online advertising C. Electronic monitoring software installed by an employer D. Spyware E. Phishing
Spyware
___________ refers to how much of a product or service is offered for purchase at any given time. A. Demand B. Shortage C. Equilibrium D. Supply E. Surplus
Supply
After many attempts at trying to get an employee to perform adequately, a manager fires the employee. What is this act called? A. Remediation B. Performance appraisal C. Termination D. At-will-employment E. Worker buyout
Termination
Which theory best describes the phenomenon that employee motivation and productivity are positively impacted by attention and recognition? A. Motivator-hygiene theory B. The Hawthorne effect C. Time-motion studies D. Maslow's hierarchy of needs E. Theory Y
The Hawthorne effect
Of the statements below, select the one that most true about a mixed economy? A. The government has a very low degree of control in a mixed economy. B. The economy is completely unplanned and is focused on maximum profitability in a mixed economy. C. Social programs are nonexistent in a mixed economy. D. The government supplies some goods and services in a mixed economy. E. The government is in complete control of all goods and services in a mixed economy.
The government supplies some goods and services in a mixed economy.
All of the following statements about business plans are true EXCEPT: A. They list information about competition. B. They provide funding for the business. C. They include a risk analysis. D. They include blueprints of how the business will operat E. They list the owners/managers of a business and their qualifications.
They provide funding for the business.
Which of the following is true about regional businesses? A. They serve a bigger business area than local businesses. B. They have an easier time managing resources than large multinational corporations. C. They do not operate in towns. D. They tend to offer a large array of goods and services for consumers. E. They serve an international market.
They serve a bigger business area than local businesses.
Kevin is a criminal who breaks into computer systems to steal financial information. Kevin is a(n) _______. A. hacker B. spammer C. pharmer D. botnet E. phisher
hacker
A sign, symbol, or other graphic representation that identifies a company, organization, or product is referred to as a(n) _______. A. brand B. emblem C. co-brand D. logo E. brand extension
logo
When managers try to analyze a problem or opportunity, identify different courses of action, and select and implement what they perceive to be the optimum course of action, they are using _______ skills. A. technical B. decision-making C. interpersonal D. conceptual E. tactical
decision-making
Disinflation __________. A. occurs when prices decrease over time B. occurs when the prices for goods and services increase dramatically over a short period of time C. is when the rate of inflation decreases D. is a sign of a healthy economy E. has no impact on prices for goods and services
is when the rate of inflation decreases
Gavin wants to buy stock in a company because he thinks the price is going to increase rapidly over the next several weeks, but he doesn't have the cash to do so. He decides to borrow the funds from his broker, using his investments as collateral. This is referred to as __________. A. an option B. a futures contract C. an ETF D. insider trading E. buying on margin
buying on margin
Shabnam and Mahir own a car wash. Shabnam runs the car wash, and Mahir primarily just provides capital in return for some equity and share of the profits. Mahir is a(n) __________ in the business. A. general partner B. limited partner C. restricted partner D. full partner E. angel investor
limited partner
Ford uses __________ as part of its business strategy by producing lots of different models of automobiles tailored to the needs of various customer types. A. niche marketing B. psychographic segmentation C. behavior segmentation D. market segmentation E. positioning
market segmentation
Talks between management and the union stalled, and the parties agreed to consult a third party who would work with both sides to understand their interests and assist the parties in generating mutually acceptable solutions. This best describes _______. A. collective bargaining B. a grievance C. a strikebreaker D. arbitration E. mediation
mediation
DigitHead is a hi-tech startup that develops a software development tool whcih targets a market of 5000 potential buyers around the globe, an extremely small and non-growing segment of customers. This is an example of a(n) __________ market. A. isolated B. segmented C. rare D. unknown E. niche
niche
Erwin has a feeling that a public company is going to be very successful this year, so he deides to buy a few thousand shares of its stock. In which market would he would purchase this stock? A. primary B. secondary C. tertiary D. bear E. bull
secondary
RedBird Shoes borrowed $400,000 from a bank to finance new equipment for its factory. RedBird was required to pledge a parcel of real estate it owns as security for the loan. This is an example of _______. A. factoring B. secured loan C. trade credit D. equity financing E. a line of credit
secured loan
Safety, belonging, and self-actualization are all components of __________. A. Expectancy theory B. equity theory C. Three needs theory D. Theory X E. Maslow's hierarchy of needs
Maslow's hierarchy of needs
Stan just joined the company as a soldering technician. He has been partnered with an experienced employee who lends guidance while Stan is performing the duties of his new job. What type of training does this best describe? A. Orientation B. Classroom instruction C. An informal management develop program D. On-the-job training E. Off-the-job training
On-the-job training
Hadar is a __________, as he directly supervises lower-level employees. A. chief operations officer B. first-line manager C. controller D. middle manager E. executive officer
first-line manager
When her children are at school during the day, Domenica frequents yard sales and then sells those items on eBay. Domenica would best be described as a(n) _______. A. intrapreneur B. home-based entrepreneur C. social intrapreneur D. non-for-profit entrepreneur E. growth entrepreneur
home-based entrepreneur
Adam is a sales rep who receives a small base salary. He earns most of his money through commission on each sale and also gets bonuses if he hits specific sales targets. These bonuses and commission are known as _______. A. stock options B. salary C. incentive-based payments D. wages E. flexible benefits
incentive-based payments
Dell uses __________ to only purchase the parts it needs for a limited production run, and orders the parts it needs to arrive right when the product is manufactured. A. just-in-time waste reduction practices B. just-in-time inventory control C. just-in-time mass production D. just-in-time supplier control E. just-in-time inventory compliance
just-in-time inventory control
Stevie wants advertise online but he only wants to pay only when someone clicks on his ad. Therefore he will choose __________ advertising. A. pay-per-view B. pay-per-click C. multi-click D. pay-per-ad E. pay-per-sale
pay-per-click
An options contract gives the holder the _______ to purchase the underlying asset, whereas with a futures contract, the holder has the _______ to do so. A. responsibility; obligation B. collateral; obligation C. obligation; opportunity D. right; obligation E. obligation; right
right; obligation
In a __________, small teams work together to assemble a product in work stations. A. cellular layout B. fixed-position layout C. facility layout D. product layout E. process layout
cellular layout
Amar, a recently retired billionaire investment banker, has established a foundation to help build schools in Southeast Asia. This foundation is engaging in __________. A. corporate philanthropy B. legal compliance C. moral relativism D. sustainability E. socially responsible investing
corporate philanthropy
Matthew wants to calculate the liquidity ratio for his firm. In order to do so, he would divide the total value of the company's current assets by its _______. A. owners' equity B. total liabilities C. revenue D. net profit E. current liabilities
current liabilities
A bond that is not backed by physical assets or other collateral, but only by the creditworthiness of the issuing corporation, is known as a _______ bond. A. serial B. revenue C. debenture D. callable E. convertible
debenture
Mid-Town Omaha, Nebraska, is an area that the state and federal governments have targeted for economic revitalization, and businesses are offered tax benefits for establishing businesses and hiring there. This type of area is called a(n) __________. A. revitalization district B. opportunity area C. federal funds interest free loan district D. enterprise zone E. rehabilitation zone
enterprise zone
A major hardware retail chain requires purchasing managers to take courses on the ethical sourcing of products. This type of education is an example of a(n) __________. A. situational response training program B. sustainability training workshop C. company's code of ethics D. legal compliance training program E. ethics training program
ethics training program
You can buy a wide variety of baby products bearing the Johnson & Johnson name, including baby shampoo, lotion, powder, safety swabs and nursing pads. Johnson & Johnson uses a(n) _______ branding strategy for its line of baby products. A. individual B. generic C. co-brand D. family E. private
family
British Petroleum sells oil in multiple countries around the world. What type of business strategy does it pursue? A. An intranational strategy B. A multidomestic strategy C. A global strategy D. A domestic strategy E. A licensing strategy
A global strategy
Richard is concerned that his employees are spending too much time on personal business and not enough time working. What is a tool that Richard can use to see what his employees are doing on their computers and smartphones during the day? A. Social media monitoring B. Online analysis C. Data mining D. Phishing E. Electronic monitoring
Electronic monitoring
Ydel knows that if she exceeds her sales quota this month, she will earn a substantial bonus. What type of motivator is this? A. Emotional B. Altruistic C. Extrinsic D. Expectancy E. Intrinsic
Extrinsic
Amit just started a new business that teaches other small businesses to provide excellent customer service. However, Amit has strong customer service skills but lacks knowledge about teaching. What should Amit do to fix this talent gap without having to hire employees or pay for expensive consultants? A. He should demand more from his advisory board. B. He should use the services of the Small Business Administration (SBA) to do things he can't or doesn't want to do for himself. C. He should do all the services by himself because that's what all entrepreneurs do. D. He should shut down the business because he lacks skills to do all aspects of the business. E. He should see if other entrepreneurs are interested in forming an entrepreneurial team.
He should see if other entrepreneurs are interested in forming an entrepreneurial team.
Dujin recently ate at a Jimmy John's sandwich shop and really loved the meal. He thinks he would like to own and operate a Jimmy John's of his own. If he did own and operate his very own Jimmy John's, what would Dujin be? A. He would be a social entrepreneur. B. He would be a home-based entrepreneur. C. He would be a franchisee. D. He would be a franchisor. E. He would be a lifestyle entrepreneur.
He would be a franchisee.
_______ is a human resource that refers to any physical work or intellectual work (ideas and knowledge) that people contribute to a business's production. A. Technology B. Natural resources C. Labor D. Government E. Capital
Labor
Russ's role within the organization is envisioning the future of the company's products and devising the strategies to make those visions a reality. Which function of management would best reflect these activities? A. Leading B. Divesting C. Planning D. Organizing E. Controlling
Planning
In which step of the personal selling process does a salesperson find potential customers who are qualified to buy the company's products? A. Presenting B. Approaching the prospect C. Overcoming objections D. Following up E. Prospecting
Prospecting
Price tags on goods at a store display two prices: a "compare at" price that supposedly represents the price that other retailers charge and an "our price" figure, which is the price at which the customer can purchase the item. What type of pricing strategy does this represent? A. Prestige pricing B. Loss leader pricing C. Psychological pricing D. Competition-based pricing E. Reference pricing
Reference pricing
What is the primary advantage of an S corporation over a C corporation? A. Shareholders of S corporations are not required to be U.S. citizens or residents. B. S corporations can have an unlimited number of shareholders, whereas C corporations cannot have more than 100 shareholders. C. S corporations can issue multiple classes of stock. D. Unlike with C corporations, shareholders of S corporations are personally liable only to the extent of their investment. E. S corporations do not pay corporate income taxes.
S corporations do not pay corporate income taxes.
Neot was just hired and is now able to afford food and rent, and what she's most concerned about now is how long she will be able to keep her job in the current economic situation. Also, a series of robberies have been reported in her neighborhood, so she is worried about her personal security. According to Maslow's hierarchy of needs, which level of needs does this best reflect? A. Affiliation needs B. Self-actualization needs C. Physiological needs D. Safety needs E. Esteem needs
Safety needs
Brian's company is in the midst of a series of layoffs, and he worries constantly whether his job will be cut next. According to Maslow's hierarchy of needs, which level of needs does this most accurately reflect? A. Belonging needs B. Physiological needs C. Esteem needs D. Self-actualization needs E. Safety needs
Safety needs
Kareem has a very successful party-planning business, and he is considering expanding the business by selling its goods and services under the company's name to independent third-party operators who would use his marketing methods and business model in exchange for a fee. Kareem is thinking about becoming a(n) _______. A. licensor B. venture capitalist C. angel investor D. social entrepreneur E. franchisor
franchisor
Which of the following is lasting unemployment that takes place when an industry changes in such a way that those jobs are entirely ended? A. Cyclical unemployment B. Structural unemployment C. Frictional unemployment D. Seasonal unemployment E. Temporary unemployment
Structural unemployment
Which of the following is true of the law of supply? A. Price decreases result in suppliers providing more goods. B. Supply is driven by a supplier's desire to minimize profits. C. Higher prices lead to less supply. D. Lower profit margins leads to more supply. E. Suppliers will provide more of a good when its price is high.
Suppliers will provide more of a good when its price is high.
All of the following are true about acquisitions EXCEPT: A. They usually take place in order to add products, services, technology, or achieve a competitive advantage. B. One company purchases another company. C. Most acquisitions are friendly. D. The companies involved mutually agree to form a new combined company. E. Management at the company being purchased may remain in place.
The companies involved mutually agree to form a new combined company.
Which of the following is a disadvantage of a turnkey project? A. Lack of quality control B. High transportation costs C. The loss of technical know-how to potential competitors D. Decreased profits for high-tech firms E. Speed of entry
The loss of technical know-how to potential competitors
Frieda's Ice Company allows employees to work 4 days per week, 10 hours per day. This is an example of _______. A. telecommuting B. flextime C. a compressed workweek D. permanent part-time employment E. job sharing
a compressed workweek
In terms of Herzberg's motivator-hygiene theory, which of the following would likely be considered motivator factors? A. co-workers who are easy to get along with B. a sense of responsibility C. an environment free from hazards D. adequate lighting and heat E. a clean working environment
a sense of responsibility
Chuck, a new entrepreneur, has five experienced business owners who offer him guidance on issues related to starting and running his new business. This group of business owners is Chuck's __________. A. franchisor B. angel investor group C. advisory board D. mentor committee E. financing board
advisory board
Sheila's door is always open, and what she values most is harmony in the workplace. She excels at empathizing with her workers and maintaining a high morale within her group. Sheila would best be described as a(n) _______ leader. A. democratic B. affiliative C. dictatorial D. visionary E. autocratic
affiliative
Amica Mutual Insurance Company is a big supporter of __________, and strives to live up to its commitment to recruit, hire, and promote women and minorities. A. ethical hiring practices B. telecommuting C. affirmative action D. on-the-job training E. diversity training
affirmative action
Factors of production __________. A. do not include financial capital B. are the resources a business uses to create goods and services C. include only tangible resources, not intangible ones D. are the amount of money left over after all expenses are accounted for E. do not include technology
are the resources a business uses to create goods and services
All of the following statements about dumping are true EXCEPT: A. Dumping involves selling a product to another country at a price higher than that charged by competitors. B. Dumping is a deliberate attempt to artificially lower the value of a good or service. C. Dumping is designed to run firms in other countries out of business. D. Dumping is difficult to stop. E. Dumping decreases trade wars between countries.
Dumping involves selling a product to another country at a price higher than that charged by competitors.
The accounting profession in the United States follows standard accounting rules known as Generally Acceptable Accounting Principles (GAAP), which are defined by the ___________. A. Financial Accounting Standard Board B. Public Company Accounting Oversight Board C. Internal Revenue Service D. International Financial Reporting Standards E. Sarbanes-Oxley Act (SOX)
Financial Accounting Standard Board
All of the following statements regarding personal ethics are true EXCEPT: A. Ethics can be inconsistent, or situational. B. Ethics can be clearly defined. C. Ethics are the principles that guide the decisions you make in life. D. People never violate their personal codes of ethics. E. Ethics can be violated.
People never violate their personal codes of ethics.
All of the following are examples of psychographic segments EXCEPT? A. People who like to keep their homes tidy B. People who are of the same age group C. People who enjoy relaxing on the beach D. People who are athletic E. People who live healthy lives
People who are of the same age group
__________ are the doctrines that direct the decisions you make in your life. A. Personal ethics B. Moral relativisms C. Situational ethics D. Personal responsibilities E. Business ethics
Personal ethics
Frances gets an email from someone whose name is very close to that of his aunt. This person claims that she is in Australia and got her wallet stolen. She needs money sent to her right away so that she can get a hotel for the night. Frances has just become a potential victim of which kind of cyber crime? A. Spyware B. Pharming C. Hacking D. Phishing E. Spamming
Phishing
All of the following would be included in the definition of natural resources as a factor of production EXCEPT: A. Physical facilities used to produce goods and services, such as office buildings and factories. B. Fossil fuels used to create energy. C. Soil used in agricultural production. D. Land upon which a factory is built. E. Trees used for lumber to build houses.
Physical facilities used to produce goods and services, such as office buildings and factories
__________ utility is the process of making a product available via a distribution channel which is most convenient and useful to a customer. A. Ownership B. Form C. Task D. Place E. Time
Place
Which of the following best describes a horizontal organization? A. There are many layers of management, and employees are low-skilled and disempowered. B. Power is distributed among employees. There are few managers and many empowered employees. C. There are no managers in the company. Rank and file employees make all business decisions. D. Every employee directly reports to a supervisor. E. Power is centralized, and many layers of managers exist.
Power is distributed among employees. There are few managers and many empowered employees.
Which of the following oversees the day-to-day operations of a company? A. Chief operating officer B. Chief executive officer C. Chief financial officer D. Line manager E. Board of directors
Chief operating officer
Which of the following oversees the day-to-day operations of a company? A. Chief operating officer. B. Chief executive officer C. Chief financial officer D. Line manager E. Board of directors
Chief operating officer.
Instagram added a new feature after many of its users banded together and requested added functionality to the application. This is an example of what business process? A. Crowdfunding B. Crowdsourcing C. Crowdhacking D. Decision support system E. Social media monitoring
Crowdsourcing
Omri is the owner of a small local baby clothing chain, and wants to increase repeat business by getting people who buy from his stores to come back and purchase again by establishing and maintaining positive relationships with them. What is this known as? A. Customer tracking B. Market segmentation C. Customer product promotion D. Niche marketing E. Customer relationship management (CRM)
Customer relationship management (CRM)
Evelin has a successful home cleaning business and has added 50 employees over the past few years. She's considering seeking out business partners to help grow the business even faster. Because of the complexities of the business, and her desire to separate her business and personal assets, she should consider switching her business to a(n) __________. A. cooperative B. limited partnership C. C corporation D. sole proprietorship E. unlimited liability company
C corporation
Greg is in charge of the technology in a large company. What is likely his title? A. CIO - Chief Information Officer B. CAO - Chief Acquisitions Officer C. CEO - Chief Executive Officer D. CFO - Chief Financial Officer E. COO - Chief Operating Officer
CIO - Chief Information Officer
When you think of Volvo cars, the first thing that comes to mind is vehicle safety. This is an example of brand _______. A. association B. awareness C. preference D. equity E. loyalty
association
In which stage of the new product development process is an idea for a new product presented to potential customers to assess their reactions? A. Step 3 - Product analysis B. Step 2 - Idea screening C. Step 6 - Market testing D. Step 7 - Commercialization E. Step 4 - Concept development and testing
Step 4 - Concept development and testing
Which of the following statements about strategic goals is not true? A. They are different than objectives. B. They generally are established for a long time horizon. C. They are not very specific or detailed. D. They are usually not vague in terms of a time frame to attain. E. They are accomplishments an organization wants to achieve in the immediate future.
They are accomplishments an organization wants to achieve in the immediate future.
Which term best describes consultants? A. They are workers who provide services to the federal government. B. They are part-time workers who are provided with benefits and base salaries. C. They are professionals who offer mentoring services in exchange for barter. D. They are contingent workers who are usually self-employed and perform services for companies. E. They are full-time workers who work in dangerous environments.
They are contingent workers who are usually self-employed and perform services for companies.
Which of the following statements about angel investors is true? A. They usually do not have industry experience in the areas in which they are investing. B. They seek to control the businesses in which they are invested. They intend to both invest in and manage the business to a great extent. C. They fund businesses that are already established, rather than in their earlier stages. D. They are willing to put up their own money to fund businesses in hopes of eventual profit. E. They have limited financial means. They are typically middle class, and the investment is a significant risk for them.
They are willing to put up their own money to fund businesses in hopes of eventual profit.
Vast amounts of data in database systems separate from a company's production databases are stored in _______. A. data mines B. data warehouses C. executive information systems D. management information systems E. decision support systems
data warehouses
A(n) __________ houses the company's databases. A. business intelligence system B. decision support system C. data warehouse D. database management system E. executive information system
database management system
All of the following statements about unethical behavior are true EXCEPT: A. Unethical behavior is usually bad for business. B. Unethical behavior is unprofessional. C. Unethical behavior is considered to be undesirable by most societal standards. D. Unethical behavior can be legal even if it is unethical. E. Unethical behavior is the same as amoral behavior.
Unethical behavior is the same as amoral behavior.
In China, there is a single provider of tobacco, China National Tobacco Corp.,that has control of all or nearly all of its market. This is an example of ______. A. a duopoly B. an oligopoly C. a monopoly D. inflation E. monopolistic competition
a monopoly
A _______ market is characterized by optimism, investor confidence, and the expectation that stock prices will continue to increase. A. primary B. bull C. bear D. secondary E. capital
bull
Subway's offers a number of meal deals that include a sandwich, chips, and a beverage for a price that is lower than the combined prices of the individual items. This is an example of _______. A. target costing B. bundling C. dynamic pricing D. a loss leader E. penetration pricing
bundling
Javier has been accepted into a program at a local university for student entrepreneurs that will help provide guidance, support, business networking, and possibly even funding to start his dream business. This program is known as a(n) __________. A. Small Business Administration workshop B. mentoring group C. business incubator D. entrepreneur training program E. advisory board
business incubator
Products and services that go with each other and are consumed together are considered _______ goods. A. temporary B. complementary C. secondary D. luxury E. substitute
complementary
If Walmart, a giant retailer, merges with Wells Fargo, a large bank, in order to offer low-cost financial services to Walmart's customers, this would be an example of a(n) __________. A. conglomeration B. acquisition C. horizontal merger D. product extension merger E. vertical merger
conglomeration
The study of how people and businesses make decisions to best meet wants, needs, and desires with limited resources is known as _______. A. marketing B. organizational behavior C. management D. supply and demand study E. economics
economics
The __________ is the movement away from thinking of the marketplace as local and towards thinking of it as worldwide. A. "shop local" perspective B. offshoring of marketing C. nationalization of markets D. globalization of production E. globalization of markets
globalization of markets
Edie is looking at purchasing an existing business and is trying to determine how much to pay for it. She finds it easy to determine the value of the property and inventory but is having a difficult time determining the value of the existing owners' __________: their reputation with the community, loyalty of customers, and employee morale. A. tangible assets B. good intent C. goodwill D. credit rating E. nonmonetary items
goodwill
A __________ is a goal that a firm wants to achieve through marketing activities. A. promotional objective B. target market C. marketing plan D. market segmentation strategy E. marketing objective
marketing objective
The purpose of the _______ stage of the new product development process is to develop a pool of ideas for potential development, and then to pare down that list in the _______ stage to those that may be worth pursuing. A. concept development and testing; commercialization B. idea generation; product analysis C. idea screening; product analysis D. idea generation; idea screening E. market testing; product analysis
idea generation; idea screening
Apple is known for __________, or making products that are of better perceived quality, or dissimilar than another firm's product. A. product differentiation B. niche marketing C. product segmentation D. psychographic segmentation E. target marketing
product differentiation
Kimtoya makes a decision she feels is right based on the circumstances she is facing at the time. This is an example of __________. A. amorality B. personal ethics C. situational ethics D. unethical behavior E. moral relativism
situational ethics
A(n) __________ is one that is independently owned and operated and that is not dominant in its field. A. large business B. monopoly C. oligopoly D. medium-sized business E. small business
small business
A home builder in Arizona makes a conscious effort to use as many recycled materials as possible during construction. This builder has a focus on __________ as a business model. A. sustainability B. philanthropy C. situational ethics D. profitability E. moral relativism
sustainability
A _______ occurs when the recession hits bottom. A. recession B. recovery C. trough D. depression E. peak
trough
Anitra purchased 101 shares of Pfizer in September of 2010 at $16.51 per share. She sold the stock four years later at a price of $30.22 per share. Anitra has realized a capital gain of _________. A. $1,357.29 B. $1,371.00 C. $13.71 D. $131.70 E. $1,384.71
$1,384.71
White's Flooring sent an invoice to Alpha Properties for carpeting the reception area in an office building. The terms of the invoice were 15/3/30. This gives Alpha Properties a _______ discount if the invoice is paid within _______ days. A. 15%; 30 B. 30%; 15 C. 3%; 15 D. 15%; 3 E. 3%; 30
15%; 3
Malaika, a manager at a law firm, is having a(n) __________ completed today for her annual evaluation. She is evaluated by not only her manager, but also her peers and subordinates. A. 360-degree appraisal B. collective bargaining appraisal C. online training D. reverse mentoring E. 720-degree appraisal
360-degree appraisal
Using customers' perceived value of a product to establish the basis for the price of that product is referred to as __________. A. price discrimination B. cost-based pricing C. demand-based pricing D. competition-based pricing E. target costing
demand-based pricing
With _______, a group of outside investors provides financing to a new or growing company with the expectation that they will achieve a big return when the company goes public or is sold. In return, they get a share of ownership in the company and play an active role in its management decisions. A. commercial paper B. a microloan C. debt financing D. leverage E. venture capital
venture capital
As a general rule, decision making in a(n) _______ is centralized, and the power to make decisions lies with top-level managers. A. vertical organization B. matrix organization C. network organization D. horizontal organization E. inverted organization
vertical organization
Kip, Pedro, and Rico are all employed by the same company but are in different geographical locations while working together on a project. They are part of a __________. A. task force B. physical team C. product team D. customer service team E. virtual team
virtual team
Janssen Corporation intends to buy a new factory facility in a nearby area which will offer signficant tax benefits. The type of budget that Jannsen Corporation will need to develop to support this purchase is a(n) __________. A. A project budget B. An operating budget C. A capital budget D. A master budget E. A cash flow budget
A capital budget
Yoon, a new manager, has been hired to ensure the employees in her company behave ethically. Which of the following would be most useful in ensuring that employees understand what it means to act in an ethical manner? A. A code of ethics B. A sustainable policy C. A social audit D. An employee handbook E. A company mission statement
A code of ethics
Jodie owns a small business that is growing fast. She wants to put a document together that lets those within and outside the organization understand the company's purpose, goals, and philosophies. What should Jodie create? A. A SWOT analysis B. A company mission statement C. A strategic plan D. A company code of ethics E. An operational plan
A company mission statement
Your boss has assigned you work to develop procedures which can be used in the event of a natural disaster such as earthquake or tsunami that will make sure that the business can operate despite the adverse conditions. What have you been asked to create? A. A SWOT analysis B. A contingency plan C. A strategic plan D. An operational plan E. A tactical plan
A contingency plan
_______________ occurs when only two suppliers exist in a market. A. Perfect competition B. Monopolistic competition C. A duopoly D. A monopoly E. An oligopoly
A duopoly
In 1985, Anya started a small business selling large bags of popcorn to the public. Almost 30 years later, her business has over 15,000 locations nationwide, all independently owned and operated. At this point, Anya provides popcorn, advertising, and support to the owners. She also runs ads on the Internet and television advertising the popcorn business. What is Anya? A. A business mentor B. An angel investor C. A venture capitalist D. A franchisor E. A franchisee
A franchisor
Traci and Rashan have equal liability in their small machine repair shop and share equally in the profits of the business. What type of partnership do they have? A. A limited liability partnership B. A general partnership C. An asset-reduced partnership D. A limited partnership E. A cooperative partnership
A general partnership
Which of the following is true of a green economy? A. A green economy factors ecological concerns into business decisions. B. A green economy is the same thing as globalization. C. A green economy can only take place as a business-to-business (B2B) entity in an e-commerce model. D. A green economy cannot exist in a market-based economy. E. A green economy focuses on free markets, private ownership, and limits on government intervention.
A green economy factors ecological concerns into business decisions.
Henry started a business in a new sector of the economy that is poised to expand rapidly in the next 10 years. He hopes his business will likewise experience rapid expansion. What type of entrepreneur is Henry? A. A growth entrepreneur B. A lifestyle entrepreneur C. A serial entrepreneur D. A social entrepreneur E. A business-incubating entrepreneur
A growth entrepreneur
Naima and Steve both make high-end custom guitars. They decide that they should merge in order to become more dominant in the marketplace. What type of merger are they going to perform? A. A conglomeration B. A horizontal merger C. A vertical merger D. A product extension merger E. A market extension merger
A horizontal merger
Jim and Rhonda are owners of a local car detailing service. Jim runs the day to day operations in the business, while Rhonda primarily provided capital when the business started. What type of partnership do they have? A. A limited partnership B. An investor-centric partnership C. A general partnership D. A full partnership E. A restricted partnership
A limited partnership
In many organizations, the human resource manager does not have authority over hiring of employees in departments such as accounting or manufacturing but instead works with the managers of those departments to offer guidance and assistance. What type of organization would this reflect? A. A network organization B. An inverted organization C. A reverted organization D. A matrix organization E. A line and staff organization
A line and staff organization
What type of organization do most startup companies utilize? A. A tall organization B. A flat organization C. A line organization This is the correct answer. D. An inverted organization E. A matrix organization
A line organization
Imagine that New England Airlines, a regional carrier in Rhode Island, decides to merge with Porter Airlines, a carrier based in Toronto, Canada. What type of merger would this represent? A. A conglomeration B. A vertical merger C. A hostile takeover D. A market extension merger E. A horizontal merger
A market extension merger
Shane has just invented a new self-cleaning sponge that he believes will revolutionize the way people clean their homes and businesses. Before he starts selling this item, what is one of the first things he should develop? A. A marketing plan B. A focus group C. The perceived value of the sponges D. A placement for the sponges E. A niche market research study
A marketing plan
Stephan is an accountant who is assigned to multiple projects for a number of different product lines at his company. His manager is the acccounting supervisor but, upon being assigned to a project, he simultaneously reports to the project manager as well. What organizational structure best represents the situation that Stephan is working in? A. An inverted organization B. A tall organization C. A line organization D. A flat organization E. A matrix organization
A matrix organization
Alejandro is a highly experienced manager who is helping a management trainee who has just started work. Alejandro is assisting the trainee to learn about the specifics of the business. In this relationship, Alejandro is behaving as a(n)_____. A. A reverse mentor B. A mentor C. A formal teacher D. An off-the-job trainer E. An online trainer
A mentor
_______ is used as a measure of how quickly an asset owned by the business can be turned into cash. A. Factoring B. Liquidity C. Leverage D. Equity E. A sinking fund
Liquidity
Which of the following best describes a monopoly? A. Monopolies have very little control in dictating prices to consumers. B. A monopoly has complete control over an entire industry. C. Monopolies are not subject to government oversight. D. Monopolies have many competitors. E. Monopolies have little control over sales of goods and services.
A monopoly has complete control over an entire industry.
A sporting goods company wants to open new stores in several countries and tailor its products to the needs of individuals in the different countries. Which type of strategy does this company use? A. A transnational strategy B. Joint venture C. A wholly owned subsidiary D. A multidomestic strategy E. A global strategy
A multidomestic strategy
Angela owns a custom jewelry business. She and her employees design and market the jewelry, but she uses outside manufacturers to produce the pieces. Employee benefits and payroll are administered by still another company. What type of organization does Angela operate? A. A line organization B. An inverted organization C. A staff organization D. A network organization E. A matrix organization
A network organization
Microsoft and Nokia both provide cell phone software and hardware to consumers. Microsoft wants to use Nokia's hardware to use for its new mobile operating system, while Nokia is looking to better compete in the consumer smartphone market. The companies determine that merging will allow the best of both worlds: Both companies can benefit by merging to start a new company that will offer Microsoft-powered smartphones featuring the latest and greatest technology from Nokia. What type of merger is this? A. A product extension merger B. A horizontal merger C. A vertical merger D. A market extension merger E. A conglomeration
A product extension merger
Mauii Jim sunglasses inked a deal with Dwayne Johnson, the ex-WWF wrestler known as The Rock, to wear the Big Wave model sunglasses, made for large heads, at his latest movie premier. In the 30 days after the movie was released, sales of Big Wave sunglasses rose by 35 percent. This is an example of which type of promotional activity? A. A sales promotion B. An infomercial (paid programming) C. Public relations D. A product placement E. Interactive advertising
A product placement
Georgia Peach Apartments intends to replace the windows for all of the apartments in a large apartment complex over the next 24 months. What type of budget should it develop? A. A capital budget B. A master budget C. Cash flow budget D. A project budget E. An operating budget
A project budget
Bob's job is to stock retailers' shelves with his company's line of health and beauty aids. His company displays the products and retains the title to the products until they are sold, and then bills the retailer. What kind of marketing intermediary does Bob work for? A. A manufacturer's agent B. A truck wholesaler C. A cash-and-carry wholesaler D. A drop shipper E. A rack jobber
A rack jobber
If you bought an Insinkerator garbage disposal at Home Depot during a particular period of time and submitted a form together with a copy of your receipt, you would get a $20 cash back. What kind of price adjustment is this? A. A rebate A cash discount C. Dynamic pricing D. A seasonal discount E. Bundling
A rebate
Which of the following best describes Judeo-Christian ethics? A. A set of values shared between Jewish and Christian religions that encourage respect of others and property and being kind to one another, as long as profitability is prioritized B. A set of social norms developed by Jews and Christians that encourage the maximization of corporate profits as long as the company is behaving ethically. C. A set of values shared by Jewish and Christian religions that require followers to be honest and hard-working. D. A set of values shared between Jewish and Christian religions that encourages respect of others and property and being kind to one another. E. A set of values shared by Jewish and Christian religions that require followers to respect other followers of the same religion but not followers of other faiths.
A set of values shared between Jewish and Christian religions that encourages respect of others and property and being kind to one another.
Which of the following would be used to assess how well a company is meeting its social responsibilities? A. Its annual report to shareholders B. Its ethics training program C. A social audit D. The company's mission statement E. An environmental audit
A social audit
You have been tasked with assessing how well your company is meeting the CSR goals that it has established and whether its resources have been applied to those goals. Which of the following should you perform in making this assessment? A. A revision of the employee handbook B. A feasibility study C. An external audit of the company's legal compliance documentation D. A sustainability study E. A social audit
A social audit
Monica, a doctor, owns a small health care clinic that serves underserved people in a lower-income neighborhood. What type of entrepreneur is Monica? A. A growth oriented entrepreneur B. A franchisee C. A social entrepreneur D. A home-based entrepreneur E. An Internet entrepreneur
A social entrepreneur
Which of the following statements about unlimited liability for the debts of a business is true? A. A sole proprietor's home and personal assets are not exempt from liability for the debts of a business. B. A corporation has limited responsible for paying the debts that it incurs as an entity. C. In a general partnership, each general partner has limited liability for the debts of the business, regardless of who incurred the debt. D. In a general partnership, each general partner has unlimited liability for the debts of the business only if that GP incurred the debt. E. In a limited partnership, all partners have unlimited liability for the debts of the business, regardless of who incurred the debt.
A sole proprietor's home and personal assets are not exempt from liability for the debts of a business.
Dreyer's Ice Cream has a fleet of delivery vehicles that that sells and delivers various ice cream products to smaller retailers and convenience stores. What type of marketing intermediary does this BEST describe? A. A drop shipper B. A cash-and-carry wholesaler C. A truck wholesaler D. A rack jobber E. An agent/broker
A truck wholesaler
Steve Jobs, former CEO of Apple, was well known for his ability to inspire employees and customers alike to believe in the company's products and services. The love for Apple's products by customers and employees alike was so strong, their passion for the company was termed "The Cult of Apple." What type of leader was Steve Jobs? A. An autocratic leader B. An affiliative leader C. A laissez-faire leader D. A visionary leader E. A democratic leader
A visionary leader
Jennifer wants to become a plumber. To do so, she would have to dedicate several years in both on-the job and in-class training with experienced plumbers. What kind of program does Jennifer have to finish before she can become a plumber? A. A one-on-one mentoring program B. An on-the-job training program C. An off-the-job training and development program D. A college degree program E. An apprentice training program
An apprentice training program
Aisha worked for a cable company for years and noticed how horrible the customer service was. So, one day, Aisha decided she wants to start her own business training small businesses on how to provide outstanding customer service. Which of the following terms would best describe Aisha? A. An angel investor B. A disgruntled employee C. A franchisee D. An entrepreneur E. A business mentor
An entrepreneur
Which type of organization best describes a structure in which management is tasked with being accountable to employees? A. A vertical organization B. A not-for-profit organization C. A horizontal organization D. An inverted organization E. A governmental organization
An inverted organization
Which of the following is the best example of a social audit? A. An oil company performs an internal study to determine if the firm can remain profitable after being sued by an environmental group for not properly cleaning up an oil spill. B. An oil company performs an internal study on how well it is meeting the corporate social responsibility goals it has established. C. An external audit researching the ability of a company to operate in an area that is environmentally unsustainable. D. The government accesses internal company records to determine if a company is breaking laws. E. An environmental group performs a study on how an oil company is handling the cleanup of an oil spill.
An oil company performs an internal study on how well it is meeting the corporate social responsibility goals it has established.
An old adage holds, "You never get a second chance to make a first impression." In which stage of the personal selling process would this wisdom be MOST applicable? A. Approaching the prospect B. Prospecting C. Closing the sale D. Presenting E. Following up
Approaching the prospect
Goods __________. A. cannot be combined with services into a product B. are still the cornerstone of the American economy C. are tangible D. are the same as services E. must only be sold directly to consumers
Are Tangible
Analiese buys a 6-roll package of toilet paper at the supermarket while she is buying groceries. How would this product BEST be classified? A. As a maintenance, repair, operating (MRO) product B. As an unsought good C. As equipment D. As a shopping good E. As a convenience good
As a convenience good
A commercial property management company purchases a dozen cases of toilet paper from a janitorial supply vendor. How would this product BEST be classified? A. As a maintenance, repair, operating (MRO) product B. As a component part C. As raw and processed materials D. As a convenience good E. As equipment
As a maintenance, repair, operating (MRO) product
A company that installs residential and commercial irrigation systems purchases several dozen lawn sprinkler heads to be used in a large installation. How would these sprinkler heads BEST be classified? A. As equipment B. As raw and processed materials C. As convenience goods and services D. As component parts E. As maintenance, repair, operating (MRO) products
As component parts
The balance sheet for Grayson Printing shows the following entries: cash on hand, accounts receivable, inventory, and supplies. How would these be listed on the balance sheet? A. As short-term liabilities B. As owners' equity C. As fixed assets D. As intangible assets E. As current assets
As current assets
Linda runs a business in Dallas that specializes in providing business clothing to veterans free of charge so that they can dress nicely for job interviews. Linda's business is most likely which of the following? A. A governmental program B. A cooperative C. A for-profit-organization D. A conglomeration E. A not-for-profit organization
A not-for-profit organization
Facebook stores vast quantities of customer data, including product keywords. It is looking for shifting customer trends in order to provide this information to marketers. What is Facebook performing? A. Electronic monitoring B. Online advertising C. Phishing D. Viral marketing E. Big data analysis
Big data analysis
Ellie, a computer programmer, has decided to start her own small computer-programming business. She plans to start the business using money that she has saved over the years, perhaps borrowing funds from family and friends and possibly trading services with vendors or clients. What type of financing is Ellie planning to use? A. Venture capital B. Crowdfunding C. SBIC program D. Bootstrap financing E. An angel investor
Bootstrap financing
__________ is software that can help managers analyze the financial state of the company, and provide insight into key business issues. A. Business intelligence software B. Big Data analysis C. A decision support system D. Cloud computing software E. A database management system
Business intelligence software
When should a business comply with laws and regulations? A. As long as morals are not compromised, businesses should operate within the law. B. Businesses should operate legally except in times of crisis. C. Businesses should operate within the law as long as profits are not risked. D. Businesses should operate in an ethical manner first and then focus on operating legally. E. Businesses are required to operate within the law at all times.
Businesses are required to operate within the law at all times.
Amar stores all of his music on Amazon's storage service. This way, he can play his music from any device, as long as he has a connection to the Internet. This is an example of which type of service? A. Cloudsourcing B. Cloud-based processing C. Cloud computing D. Data mining E. Crowdfunding
Cloud computing
Ray works for a company that produces very large amounts of identical products at a time. What type of production process would best suit his company? A. Identical manufacturing B. Mass customization C. Flexible manufacturing D. Intermittent production E. Continuous flow production
Continuous flow production
________ is/are a way of raising funds by asking a large number of people to each donate or invest a small amount of money, usually via the Internet. A. Venture capital B. Peer-to-peer lending C. Crowdfunding D. Commercial paper E. Microloans
Crowdfunding
Megan wants to start a new business, but doesn't have enough money to fund it properly. So she goes online and uses a social media site to drum up some cash. This is an example of what type of new trend? A. Cloud computing B. Crowdsourced funding C. Enterprise social networking D. Viral marketing E. Online advertising
Crowdsourced funding
Taka owns a car dealership. He is trying to streamline operations to be more efficient. In the past, salesmen and finance staff performed the same duties. Taka believes it will be more efficient to split the staff into two new areas, a sales area, and a finance area. What is Taka practicing? A. Compartmentalization B. Departmentalization C. Revitalization D. Networking E. Strategic planning
Departmentalization
Which of the following best describes the focus of producers during the marketing concept era? A. Developing new products that fill a specific customer's needs. B. Developing new products based on existing products; no customization, just slight improvements over time. C. Finding a customer for an existing product; making the customer like the existing product enough to buy it. D. Fostering an environment of collaboration with competitors, and using teamwork to develop better products that benefit customers. E. Ignoring customer demands; just keep building what companies want to build.
Developing new products that fill a specific customer's needs.
Karel relishes the feeling of being able to master a new skill in the workplace, and he enjoys the attention and recognition that he gets as a result. According to Maslow's hierarchy of needs, which level of needs is Karel satisfying? A. Physiological B. Psychological C. Esteem D. Safety E. Self-actualization
Esteem
All of the following statements regarding ethics are true EXCEPT? A. Ethical behavior is good for both the company and the community. B. Ethical behavior is good, but should not interfere with maximizing business profits. C. Personal ethics and business ethics have many similarities. D. Living ethically is beneficial for your health. E. Customers appreciate ethical behavior.
Ethical behavior is good, but should not interfere with maximizing business profits.
Edward, an American, believes that American culture is superior to all others. What belief is Edward demonstrating? A. Longitudinal thinking B. Cognitive dissonance C. Ethnocentrism D. Sociocultural appreciation E. Prejudice
Ethnocentrism
Jim wants to get an A on the next test, so he blocks out the entire evening before the test to study. He's convinced that his effort will lead to a good score. Which element of expectancy theory does this reflect? A. Expectancy B. Self-actualization C. Instrumentality D. Affiliation E. Valence
Expectancy
Which of the following statements about financial capital is true? A. Financial capital is something an entrepreneur does not have to worry about. B. Financial capital includes the physical facilities of a company. C. Financial capital is used to facilitate a business enterprise and can come from both investors and savings. D. Financial capital is not important. E. Financial capital is not used to operate a company.
Financial capital is used to facilitate a business enterprise and can come from both investors and savings.
Wally's company manufactures cold-weather gear. The company's marketing plan involves marketing heavily to people who prefer to live in cold-weather climates. This is an example of which type of segmentation? A. Niche segmentation B. Behavioral segmentation C. Psychographic segmentation D. Geographic segmentation E. Demographic segmentation
Geographic segmentation
Of the products listed below, which would be most likely to be manufactured using a fixed-position layout? A. Women's handbags and luggage B. Yo-yos C. Potato chips D. Locomotives E. Customized printed calendars
Locomotives
Serwaa wants to open a not-for-profit organization that serves lunch to elderly people living on fixed incomes. There are a couple of programs she has applied for, which, if she qualifies, will provide money that she does not have to pay back. What type of funding did Serwaa apply for? A. Funding from venture-capital firms B. Scholarships C. Angel investing D. Loans E. Grants
Grants
Malik is a manager who is very good at connecting with his people. He is concerned about their feelings and well-being and strives to help his employees to maintain a positive attitude. What leadership trait does Malik possess in this example? A. He has a high level of self-actualization. B. He has a high level of technical intellect. C. He has a high level of emotional intelligence. D. He possesses a high level of autocratic tendencies. E. He is a visionary leader.
He has a high level of emotional intelligence.
Milo is seriously considering buying a small fast-food franchise. His friend, a successful entrepreneur, warns Milo to make sure he has done as much research as he can about the franchise before "signing on the dotted line." What does he want Milo to do? A. He wants Milo to perform due diligence when evaluating the franchise opportunity. B. He wants Milo to make sure that he has the financial means for paying for the business. C. He wants Milo to be sure that he has the expertise to run the business. D. He wants to ensure that Milo has a proper advisory board set up prior to buying the business. E. He wants Milo to understand that owning a franchise gives him total control.
He wants Milo to perform due diligence when evaluating the franchise opportunity.
Clinton is hearing that some people are saying bad things about his business on Facebook and Instagram. What should Clinton do in to see what people are saying about his company? A. Buy software that blocks the ability of others to use social media to post negative comments about his company. B. Hire a private investigator. C. Do nothing. There are no tools or technology to oversee social medi It is simply too complex. D. Hire a social media monitoring service to scour social networking sites. E. Contact Facebook and Instagram and demand they remove all posts that are negative about his company.
Hire a social media monitoring service to scour social networking sites.
Miguel, a textile factory owner in Panama, is experiencing increased demand for his manufacturing services from firms in the United States. Which of the following is MOST LIKELY happening to the exchange rate in his country? A. His country is experiencing a currency depreciation. B. The exchange rate is favorable for the importing of products from the United States. C. The exchange rate is equal to firms in the United States. D. His country's exchange rate is increasing due to the banning of exports. E. The exchange rate is increasing.
His country is experiencing a currency depreciation.
In applying life skills to the business environment, changing your online passwords on a regular basis would address which of these? A. How does globalization affect your life? B. What types of financial goals do you have? C. How do you receive funding? D. How does the social environment affect you? E. How do you keep your business secure?
How do you keep your business secure?
Which of the following answer options lists the five major areas of corporate social responsibility (CSR)? A. Employee recruitment; ethical sourcing and procurement; marketing strategy; environmental, health, and safety concerns; and community and good-neighbor policies B. Community and good-neighbor policies; unemployment prevention; marketing and consumer issues; environmental, health, and safety concerns; and governmental regulation of services C. Contract law; ethical sourcing and procurement; lobbying; financial concerns; and community and good-neighbor policies D. Human rights and employment standards; ethical sourcing and procurement; marketing and consumer issues; environmental, health, and safety concerns; and community and good-neighbor policies E. Human rights and employment standards; profitability maximization; marketing and consumer issues; environmental, health, and safety concerns; and litigation prevention
Human rights and employment standards; ethical sourcing and procurement; marketing and consumer issues; environmental, health, and safety concerns; and community and good-neighbor policies
Which of the following terms refers to the first sale of a company's stock to the public? A. Initial investment offering B. Initial securities proposal C. Primary public offering D. Initial market offer E. Initial public offering
Initial public offering
Hannah is the lead engineer on an important project for the company. She believes that if she brings in the project on time and under budget, she'll be rewarded with a promotion. However, if the project is late or exceeds the budgetary restraints, she will be either demoted or fired. What is this belief called? A. Valence B. Instrumentality C. Belonging D. Self esteem E. Self-actualization
Instrumentality
_______ involves using all of the promotional tools and resources to deliver a comprehensive, unified way to create a positive brand image and achieve the strategic marketing objectives of the firm. A. Target marketing B. Brand equity C. Integrated marketing communications D. The marketing mix E. Product placement
Integrated marketing communications
Asus, a large manufacturer of computer products, uses a control system that keeps track of everything in a company's physical stock. What type of control system is this? A. Facility control B. Production control C. Inventory control D. Supply-chain control E. Quality control
Inventory control
A gardening supplies store has a "Special Sunday" sale where potting soil is sold at $0.25 per pound and a few other items are also sold at prices below cost in order to lure customers into the store, where they will then be tempted to purchase additional products at the full price. What pricing strategy is the store using? A. Psychological pricing B. Loss leader pricing C. Penetration pricing D. Price skimming E. Reference pricing
Loss leader pricing
Which of the following statements regarding importing is true? A. It is usually indicative of a devalued local currency in the country where the products are purchased. B. It is more expensive than establishing a physical presence in the country where the products are purchased. C. It is not subject to trade agreements. D. It involves buying products from other countries and selling them domestically. E. It involves products being produced domestically and sold in another country or countries.
It involves buying products from other countries and selling them domestically.
All of the following are true about lean production EXCEPT: A. It is a business process in which reduction of waste is a top priority. B. It is a business process that is used in several industries, not just manufacturing. C. It is a business process in which the organization focuses on reducing the number of layers of management in the organization. D. It is a business process in which managers desire to increase efficiency. E. It is a business process that involves reducing excess inventory.
It is a business process in which the organization focuses on reducing the number of layers of management in the organization.
Which of the following best describes a management development program? A. It is a formal program that prepares upcoming managers for leadership via on-the-job training programs, job rotation, and mentoring. B. It is an off-the-job training program that takes place in a classroom. C. It is on-the-job training in which a management trainee is given complete control over a department, and is only mentored upon request. D. It is classroom training in which simulations of management situations are completed by the trainee. The goal is to provide as close-to-real-world environment without the risks involved in hands-on-learning in a real environment. E. It is a program that encourages management trainees to earn an MBA and funds the degree.
It is a formal program that prepares upcoming managers for leadership via on-the-job training programs, job rotation, and mentoring.
Which of the following statements about ISO 9001 is true? A. It is a law that requires all manufacturers to treat customer information confidentially. B. It is a quality management system that provides businesses with a way to ensure their products meet high quality standards. C. It is a manufacturing compliance system that ensures producers provide a working environment that treats employees ethically. D. It is an environmental management system that helps ensure a manufacturer produces in a way that minimizes harm to the environment. E. It is an international standard all manufacturers must meet to do business internationally. Without ISO 9001 compliance, a manufacturer cannot sell products in another country.
It is a quality management system that provides businesses with a way to ensure their products meet high quality standards.
Which of the following best describes a 401(k) plan? A. It is a retirement savings plan in which the employee contributes into a retirement account, and the employer may match a portion of the employee's contribution to the account. B. It is a loan provided by the federal government to employers, but can only be used to fund employees' retirements. C. It is a retirement account that can only be utilized at retirement age, and cannot, under any circumstances, be used before the age of 59 1/2 D. It is an emergency savings account that can be used at any time without penalty. E. It is a retirement account that is not subject to taxation.
It is a retirement savings plan in which the employee contributes into a retirement account, and the employer may match a portion of the employee's contribution to the account.
Which of the following statements about a corporation is true? A. It is dissolved when the owner dies. B. It is a separate entity from its owners. C. It pays no taxes on profits (if it is a for-profit). D. It cannot be sued. E. It cannot own property.
It is a separate entity from its owners.
Which of the following is true about a company's code of ethics? A. It is the same as the company's vision statement. B. It is the same as the company's mission statement. C. It is a written commitment to laws of the state in which the company is headquartered. D. It guarantees that the company and all its employees will behave ethically. E. It is a written statement of the firm's commitment to ethical behavior.
It is a written statement of the firm's commitment to ethical behavior.
All of the following statements about quality control are true EXCEPT? A. It is designed to ensure a product meets high quality standards. B. It is almost always a secondary goal of business. C. It helps reduce waste during the production process. D. It helps motivate employees to produce high quality products. E. It is required in certain industries.
It is almost always a secondary goal of business.
Which of the following best describes communism? A. It is a free-market economy in which individuals and businesses are responsible for determining what products and services to produce. B. It is an economy in which most products and services are provided by businesses and individuals, and some products and services are provided by the government. C. It is an economy in which businesses are focused on efficiency and profitability. D. It is an economic system in which the government controls production. E. It is a completely unplanned economy.
It is an economic system in which the government controls production.
Which of the following is true about offshoring? A. It is usually done in order to save money. B. It is not an important component of contemporary business strategy. C. It is usually performed in the United States. D. It only includes the complete offshoring of production. E. It is only used for manufacturing.
It is usually done in order to save money.
Boon and Gory would like to open a fitness center. They are going to provide their own funds and equally own and manage the center. Gory's cousin Teresa will also invest money into launching the fitness center, but she does not want to be involved in the day-to-day management of the business. What is the simplest form of business ownership they could use? A. C corporation B. General partnership C. Sole proprietorship D. Limited partnership E. S corporation
Limited partnership
Which of the following statements about comparative advantage is true? A. It does not take effectiveness and efficiency into account when calculating a country's comparative advantage. B. It is when a country produces more of a good or service than another country. C. It is when a country can produce goods and services more efficiently compared with other countries. D. It is primarily concerned with the country's overall GDP. E. It is the calculation of a country's overall economic advantage over another country.
It is when a country can produce goods and services more efficiently compared with other countries.
Which of the following statements about currency appreciation within a country is not true? A. It makes the prices of imported goods and services lower for domestic consumers. B. It decreases the demand for exports to other countries C. It increases the demand for imports from other countries D. It increases the value of the country's currency. E. It makes it more expensive to import products from other countries.
It makes it more expensive to import products from other countries.
Which of the following is a disadvantage of equity financing? A. Company profits are used in order to repay the debt. B. The company will have to put up collateral for the funds. C. The company must generate sufficient cash flow to pay interest to the stockholders. D. It potentially impacts the control of the company. E. Interest payments to stockholders are not tax deductible.
It potentially impacts the control of the company.
All of the following statements about the Small Business Administration (SBA) are true EXCEPT: A. It is not a department of the federal government. B. It helps entrepreneurs secure financing. C. Its primary mission is to educate individuals about the risks of becoming small business owners. D. It provides training and support to entrepreneurs. E. It lobbies the government to reduce roadblocks to commerce that hurt small businesses.
Its primary mission is to educate individuals about the risks of becoming small business owners.
Which of the following terms best describes legal regulations? A. Laws that govern the products or processes of an industry B. Laws that are only designed to protect the consumer from unethical business behavior C. Laws which mandate moral behavior in the workplace D. A code of ethics that provides guidance for company behavior E. Laws that specifically govern the ability of a company to operate in an area that is environmentally sustainable
Laws that govern the products or processes of an industry
Which term best describes the area of management that is focused on influencing, motivating, and helping employees to contribute to an organization's success and effectiveness? A. Leading B. Motivating C. Controlling D. Planning E. Managing
Leading
Joy is a marketing manager for Nike. Other manufacturers in her industry are experiencing a shift in demand of their shoes from hi-tops to low-top configuration. It would probably be wise for Nike to perform what in order to see what is going on with this new development? A. A focus group B. Environmental scanning C. Market segmentation D. Form utility E. Market research
Market research
__________ is a computer program used for inventory control and production planning. A. Materials requirement planning (MRP) B. A Gantt chart C. Just-in-time inventory control (JRP). D. Flexible manufacturing systems (FMS) E. A PERT chart
Materials requirement planning (MRP)
Jake has a small property management business. Although the business is reasonably profitable and he could expand it if he wished, he is content to keep it relatively small so that he has time to be actively involved with his young family. Which of the following terms would best describe Jake? A. Internet entrepreneur B. Intrapreneur C. Serial entrepreneur D. Micropreneur E. Growth entrepreneur
Micropreneur
All of the following statements regarding mission statements are true EXCEPT: A. Mission statements explain who the company's customer is. B. Mission statements help define the company's values. C. Mission statements list some of the company's goals. D. Mission statements explain why the company is in business (the company's purpose) E. Mission statements lay out a framework for a company's code of ethics.
Mission statements lay out a framework for a company's code of ethics.
__________ are short-term targets that are designed to help achieve goals. A. Visions B. Objectives C. Plans D. Missions E. Tactics
Objectives
Steve works for a large avionics parts company called Blue Skies. His job involves contacting engineers to discuss his company's products with them, leave product samples, and motivate the engineers to use Blue Skies' products when designing and building their airplanes. Which of the following BEST describes Steve's role? A. Customer service representative B. Support personnel C. Order taker D. Order influencer E. Order getter
Order influencer
Which of the following elements is NOT part of the marketing mix? A. Price B. Promotion C. Product D. People E. Place
People
Rose and Martha want to start marketing their high-end custom guitars to consumers in South America. They don't mind spending the time and money performing lengthy market research designed specifically for their needs. What type of data should they look for in order to get the best and most relevant data to meet their needs? A. Behavioral segmentation data B. Primary data. C. Focus groups D. Tertiary data E. Secondary data
Primary data
Which type of layout best describes one that is used to make a small batch of highly customized products? A. Cellular layout B. Process layout C. Limited production layout D. Product layout E. Fixed-position layout
Process layout
In one scene in the upcoming Avengers movie, actor Mark Ruffalo is prominently covered in clothing from the brand LuLuLemon, a new line of green yoga street wear. This is an example of which of the following types of advertising? A. Public relations B. Cameo advertising C. Product placement D. Infomercial E. Interactive advertising
Product placement
Rhonda is a marketing manager whose role is to let as many potential consumers as possible know about her company's products. What part of the marketing mix is Rhonda primarily interested in? A. Price B. Product C. Place D. Promotion E. Principle
Promotion
Which pricing strategy is used to create the impression in the consumer's mind that the product is less expensive than it really is? A. Price skimming B. Price discrimination C. Psychological pricing D. Penetration pricing E. Reference pricing
Psychological pricing
Which promotional tool is aimed at creating and maintaining a positive image of a company or individual in the minds of stakeholders? A. Integrated marketing communication B. Public relations C. Advertising D. Sales promotions E. Public communication
Public relations
Henry''s work is to keep track of and gauge the general public opinion of his company, make suggestions and carry out changes to corporate messaging and behavior in response to those opinions, and plan/implement a course of action to inform the public of activities that the company has planned or has already taken. In which department does Henry likely work? A. Marketing research B. Sales and marketing C. Public relations D. Human resources E. Advertising
Public relations
Which term describes a decline in the GDP for two or more consecutive quarters? A. Recovery B. Peak C. Depression D. Trough E. Recession
Recession
Which of the following marketing intermediaries sell products directly to consumers? A. Producers B. Retailers C. Wholesalers D. Specialty distributors E. Agents/brokers
Retailers
______ refers to the money that a company brings in by selling its products or services. A. Profit B. Cost C. Expense D. Capital E. Revenue
Revenue
Ben is performing a(n) __________ to determine what opportunities and threats exist for his business. A. operational plan B. tactical planning exercise C. SWOT analysis D. risk assessment E. strategy session
SWOT analysis
Which of the following is the BEST example of a product line? A. Apple offers iPhones, notebook computers, iPads, iTunes, iPods, and a variety of accessories such as cases, charger devices, and headphones. B. Procter and Gamble sells Duracell batteries, Tide laundry detergent, Pepto-Bismol, Crest toothpaste, and Iams pet food. C. Elkay offers residential sinks and faucets, commercial drinking fountains and bottle filling stations, and kitchen and bathroom cabinets. D. Nestléé sells baking products, ice cream, coffee, frozen entrees, and candy bars. E. Simply Orange offers orange juice, lemonade, grapefruit, and apple juices.
Simply Orange offers orange juice, lemonade, grapefruit, and apple juices.
All of the following statements about computer-aided design (CAD) are true EXCEPT: A. CAD saves design and production costs. B. Testing of parts can be completed in a simulation prior to manufacturing. C. CAD allows designers to rotate the product on any axis and modify it in size or shape. D. The computer software can create both two-dimensional and three-dimensional virtual models of parts or products. E. The item must be designed manually first and then entered into the computer.
The item must be designed manually first and then entered into the computer.
All of the following statements about licensing are true EXCEPT: A. An advantage of licensing is the speed with which property can be spread around the globe. B. The licensor holds ownership over the item being licensed. C. A risk of licensing is the creation of potential competitors. D. The licensee pays the owner a fee for the right to use the property. E. The licensee becomes the owner of the licensor's intangible property upon payment of the royalty fee.
The licensee becomes the owner of the licensor's intangible property upon payment of the royalty fee.
All of the following statements are true about socialism EXCEPT: A. Socialism tends to disincentivize labor. B. The majority of economic systems in the world are purely socialist economies. C. Countries characterized by socialism tend to have high tax rates. D. The government is in control of production of many basic businesses and distributes the profits from those businesses evenly among the people. E. The government usually runs social services such as education, health care, retirement and utilities.
The majority of economic systems in the world are purely socialist economies.
Which of the following statements about an opportunity niche is not true? A. Large companies may not be able to address the opportunity niche, leading to high potential opportunity for entrepreneurs to start new businesses. B. Customer demand for the good or service in the opportunity niche is likely high. C. It is a need or want that is currently going underserved or unserved. D. The marketplace for the desired good or service is saturated with competition, making it difficult to serve customers. E. Opportunity niches exist because it is generally difficult for all customer needs to be satisfied.
The marketplace for the desired good or service is saturated with competition, making it difficult to serve customers.
Your university has recently changed the online platform from Blackboard to Moodle Online. While you have good knowledge of Blackboard, you do not know anything about Moodle. You might be faced with challenges from which of these environments? A. The social environment B. The political environment C. The natural environment D. The competitive environment E. The technological environment
The technological environment
All of the following are true about managers EXCEPT: A. They help employees set and reach goals. B. They control employees and resources within an organization. C. They do not work with people to accomplish an organization's goals. D. Managers perform four primary functionslong dash—planning, organizing, leading, and controlling. E. They can manage any size of businesses or organizations.
They do not work with people to accomplish an organization's goals.
Which of the following is true of local businesses? A. They are good examples of multinational corporations. B. They usually employ large numbers of employees. C. They are only interested in attracting long-distance customers. D. They are rarely a unique business. E. They typically serve customers only in the limited surrounding area.
They typically serve customers only in the limited surrounding area.
Joe, a brand-new employee at a company, wants to know more about his company's core focus. Which of the following documents would give Joe the information he wants? A. The company's code of ethics B. The employee handbook C. The company's profit and loss statement from the previous quarter D. The company's mission statement E. Local laws and regulations that govern the industry in which the business operates
The company's mission statement
Jason is a young man, currently working in his first job after graduating from college a year ago. Funds are limited, so he has to be very careful about what he spends his hard earned money on. He's currently considering buying a new pair of headphones. What does Jason want to make sure this new product will add in order to make a decision to purchase it? A. Enjoyment B. A great price C. Cost savings D. Value E. Features
Value
__________ not only invest in businesses but play an active role in managing them. A. Banks B. Venture capitalists C. Franchisors D. Advisory boards E. Angel investors
Venture capitalists
A cute YouTube video featuring flying cats is actually an advertisement, and it has over 5 million views in the last 24 hours. What type of marketing does this represent? A. Pay-per-click advertising B. Crowdsourcing C. Phishing D. Pay-per-watch advertising E. Viral marketing
Viral marketing
Minami called a plumber to fix a leaky faucet in her home. Which of the following terms BEST describes the plumber's work? A. a liability B. a service C. a benefit D. an appointment E. a good
a service
The country of Sweden has a problem. The value of its exports exceeds the value of its imports. This is known as __________. A. a free-trade agreement B. a trade deficit C. a comparative disadvantage D. currency depreciation E. a trade surplus
a trade surplus
Kyle is a facilities manager who is assisting his company in designing and building a new manufacturing facility. One of his primary concerns is determining how much product can be produced to meet demand without having excess capability. This is known as _______. A. capacity planning B. surplus planning C. supply-chain management D. shortage prevention planning E. scheduling
capacity planning
A company uses a(n) _______ budget to estimate how much money it will take in and pay out over a specified period of time and identify whether the firm has sufficient funds to cover operating expenses. A. project B. master C. operating D. cash flow E. capital
cash flow
Nike has designed a new shoe, and subcontracts the production to another firm. This practice is known as __________. A. franchising B. internal production C. contract manufacturing D. direct foreign investment E. crowdfunding
contract manufacturing
Boeing manufactures large aircraft in a gigantic factory. It depends heavily on an extremely efficient __________ to ensure that its resources and people are physically arranged for maximum productivity with minimum waste. A. lean production system B. production management system C. facility layout D. inventory control system E. supply chain
facility layout
Eumin is highly involved in the project on which he's working and gets grumpy when interrupted. Eumin is in a state of __________ because he is consumed by the job he's working on. A. flow B. vision C. chi D. self-actualization E. valence
flow
Microsoft invests $100 million into the economy of India by purchasing one of its largest information technology firms. This is an example of __________. A. a franchise agreement B. a multi-domestic strategy C. foreign direct investment D. an embargo E. a trade agreement
foreign direct investment
Lin, an entrepreneur in Shanghai, wants to open up a KFC restaurant there. The best business model for him to use for this purpose is a(n) __________. A. franchise B. turnkey project C. joint venture D. wholly owned subsidiary E. foreign direct investment
franchise
Two countries are able to exchange goods and services with one another without government intervention or other impediments. This is an example of _______. A. protectionism B. dumping C. free trade D. a joint venture E. an embargo
free trade
Amoral behavior __________. A. is behavior that a person engages in that is seen as right by moral standards B. happens when a person has no awareness of right and wrong and no interest in morals C. does not involve consequences for the behavior D. is the same as unethical behavior E. involves someone knowing that what they are doing is morally right or wrong
happens when a person has no awareness of right and wrong and no interest in morals
Shauna is a manager renowned for her __________ within the organization. She is incredibly talented at being able to connect with people and is well-trusted by her employees. A. conceptual skills B. interpersonal skills C. intellectual skills D. technical skills E. tactical skills
interpersonal skills
By definition, a company that takes __________ seriously does everything within its power to conform to the laws and regulations of its industry. A. ethical avoidance B. environmental policy C. sustainability D. legal compliance E. profitability
legal compliance
Daya was in the information technology industry but now owns a consulting business in which she develops online computer courses from home. Sick of the "rat race," she now enjoys a less demanding schedule and has more family time. Daya is an example of a(n) __________. A. growth entrepreneur B. lifestyle entrepreneur C. social entrepreneur D. intrapreneur E. serial entrepreneur
lifestyle entrepreneur
One of the biggest advantages of _______ advertising is that it has good local market coverage, along with high credibility and acceptability. However, this type of advertising has a short life span and poor-quality reproductions. A. social media B. television C. newspaper D. outdoor E. Internet
newspaper
A(n) _______ is a form of competition where only a limited number of sellers exist, each with a fairly large share of the market. A. duopoly B. oligopoly C. perfect competition D. monopolistic competition E. monopoly
oligopoly
Curtis is responsible for his company's __________ management, which means that he spends most of his time planning, implementing, and controlling processes that convert raw materials into a finished product. A. process B. production C. total quality D. supply chain E. inventory control
production
The combination of advertising, public relations, personal selling, and sales promotions used by an organization to promote its goods and services represents the company's _______. A. product line B. product mix C. promotional mix D. marketing mix E. distribution channel
promotional mix
A city wants to build a new ballpark in the downtown area and has proposed issuing bonds that would be funded through income generated by the ballpark. This best describes a _______ bond. A. secured B. callable C. general obligation D. revenue E. debenture
revenue
A profit is earned when a company's ________. A. revenue is greater than its expenses B. revenue is greater than its products C. products are greater than its services D. services are greater than its products E. expenses are greater than its revenue
revenue is greater than its expenses
Stan is the owner of a small auto repair store. For the last 10 years, he's been selling foreign tires at the same price as domestically produced tires. Due to a new __________, Stan is now forced to either sell the foreign tires at a higher price or take a loss on their sale. A. embargo B. dumping rate C. licensing fee D. trade surplus E. tariff
tariff
Michelle is very skilled carpenter. She is well-versed not only in her job, but also in all aspects of the work performed by her employees, and she can successfully coach and guide them in carrying out their specific tasks. Sarah demonstrates a high level of __________. A. business savvy B. interpersonal skills C. conceptual skills D. technical skills E. decision-making skills
technical skills
Moody's currently rates a series of JCPenney bonds as Caa grade. This rating would suggest that the bonds have _______ risk. A. the highest B. high C. medium D. the lowest E. low
the highest
One of the biggest disadvantages of direct mail advertising is__________. A. it can be difficult to monitor and must be actively maintained B. it is skewed demographically to those who surf the Internet C. its inability to target specific markets. D. there is a very short exposure time to the ads and messages must be brief E. the perception by many consumers that it is junk mail
the perception by many consumers that it is junk mail
Netflix is an example of a business that focuses on __________. A. task utility B. value utility C. time utility D. form utility E. price utility
time utility
When a business is operating in a way that knowingly puts a customer in harm, it is engaging in __________. A. price fixing B. unethical behavior C. whistle-blowing D. social responsibility E. amoral behavior
unethical behavior
Which kind of market would a pizza chain like Pizza Hut use to buy the cheese used for making its pizzas? A. Manufacturer-to-business (M2B) B. Business-to-business (B2B) C. Business-to-consumer (B2C) D. Business-from-business (BFB) E. Business-by-business (BBB)
Business-to-business (B2B)
Which of the following statements regarding computer-aided manufacturing (CAM) is true? A. CAM is very simple to design and use. B. Computer-aided manufacturing integrates computer-aided design (CAD) data in a process known as simultaneous engineering. C. CAM is not an efficient way to manufacture products. D. The investment in time and money is very low with CAM. E. CAM is best used in firms that require simple manufacturing processes.
Computer-aided manufacturing integrates computer-aided design (CAD) data in a process known as simultaneous engineering.
_______ financing involves borrowing money, whereas _______ financing occurs when funds are generated by the owners of a company. A. Long-term; short-term B. Equity; debt C. Debt; equity D. Secured; unsecured E. Short-term; long-term
Debt; equity
Which level of management is responsible for implementing operational plans and supervising employees who carry out the day-to-day functions of the company? A. Top-level manager B. Staff manager C. Middle manager D. First-line manager E. Consultant
First-line manager
Which of the following represents coins and bills, traveler's checks, and checking accounts and constitutes as the narrowest measure of our money supply? A. M-2 B. M-3 C. M-4 D. M-0 E. M-1
M-1
Alibab sells products to end-consumers via the Intenrtet. Alibaba focuses on _______ transactions. A. consumer-to-consumer (C2C) B. business-to-consumer (B2C) C. government-to-consumer (G2C) D. business-to-business (B2B) E. consumer-to-business (C2B)
business-to-consumer (B2C)
Tom works for a company that serves the __________ market, in which consumers by products from businesses for their own use. A. business-to-consumer (B2C) B. business-to-client (B2C) C. business-to-business (B2B) D. consumer-to-consumer (C2C) E. consumer-to-business (C2B)
business-to-consumer (B2C)
A new package of Chips Ahoy cookies advertises M&M candies as ingredients in the box of cookies. This is an example a(n) _______. A. individual brand B. co-brand C. manufacturer's brand D. family brand E. private brand
co-brand
A company that uses __________ systems can use software that not only produces the item, but also provides other functions, such as order taking, shipment, and billing. A. inventory control B. computer-integrated manufacturing C. purchasing D. computer-aided design E. supply-chain management
computer-integrated manufacturing
Ebay is the world's largest provider of __________. A. business-to-business (B2B) transactions B. consumer-to-consumer (C2C) transactions C. business-to-consumer (B2C) transactions D. government-to-business (G2B) transactions E. business intelligence software
consumer-to-consumer (C2C) transactions
All of the following characteristics would describe entrepreneurs EXCEPT ________. A. self-directed B. motivated to succeed C. innovative D. flexible E. risk-averse
risk-averse
A mutual fund that invests in companies with a capitalization of less than $1 billion is referred to as a(n) _______ fund. A. exchange-traded B. large-cap C. no-load D. value fund E. small-cap
small-cap