Test 2
A corporation's first offering of shares to the public is called _______. a. IPO b. secondary equity offering c. secondary market offering d. private placement e. crowdfunding
A
A mission statement is a statement of the operational goals of the organization. a. true b. false
A
Alfa Knowledge is a knowledge management firm. The company helps organizations document and manage internal knowledge. The company has operations in seventeen countries. Which of the following refers to a strength that Alfa Knowledge possesses? a. The company has a patented technology for knowledge management. b. The company has an early mover advantage in the market that it is operating. c. The company is functioning in a high-growth industry. d. The countries in which the company is operating were not affected by the economic slowdown of 2 009. e. The company is functioning in a low-growth industry.
A
Developing strategies, establishing goals and objectives for the organization, and translating those strategies and goals into action plans is part of the ________ function of management. A) planning B) intermediating C) motivating D) leading E) organizing
A
Entrepreneurial effort within a larger organization is referred to as _____. A. intrapreneurship B. entrepreneurial spirit C. angel investing D. high-growth venture E. crowdfunding
A
How can individuals invest in the money market, given that the money market is primarily used by corporations and governments due to its high cost of entry? A. By buying money market mutual funds B. By buying secondary market funds C. By buying Treasury bills D. By buying primary market funds E. By buying derivatives
A
Managerial forecasts fall under two broad categories: quantitative forecasts, which are typically based on historical data or tests and often involve complex statistical computations, and__________ ______________, which are based more on intuitive judgments. a. qualitative forecasts b. SWOT analysis c. objective statement d. competitive analysis
A
One of the general characteristics of a small business is that it typically sells fewer products ________. a. to fewer market segments b. at higher costs c. to a larger customer base d. to foreign companies e. at lower costs to government agencies
A
The local government of Jasonville has just issued bonds for building a new high school. It is expected that the taxes collected by the government locally will pay for the bonds. Jasonville's government has issued which of the following? A. General obligation municipal bond B. Revenue bond C. Treasury bills D. Treasury Inflation-Protected Securities (TIPS) E. Savings bond
A
Todd D. Morrison is the manager of an advanced research team at LCM Inc., a pharmaceutical company. Todd is keen to introduce process improvements aimed at making the business unit more profitable. He also uses innovative leadership methods, such as giving team members greater flexibility and freedom. Todd takes direct responsibility for turning an idea into a profitable finished product through assertive risk-taking and innovation. Todd Morrison's efforts are an example of ________. a. intrapreneurship b. outsourcing c. downsizing d. vertical integration e. horizontal integration
A
Which group was created by the SBA to make smaller investments and consider businesses others might not want to finance by offering loans, venture capital, and management assistance? A. Small Business Investment Companies (SBICs) B. Venture capitalist C. Kickstarter D. Microlenders E. Crowdfunder
A
Which of the following allows businesses to work together and maintain tightly integrated operations without disrupting the original companies to a great extent? A. Joint venture .B. Strategic alliance C. Leveraged buyout D. Merger E. Acquisition
A
Which of the following are similar to zero-coupon corporate bonds? A. Treasury bills .B. Treasury bonds C. Treasury Inflation-Protected Securities (TIPS) D. General obligation municipal bond E. Revenue bond
A
Which of the following is an opportunity available to Alfa Knowledge? a. presence of potential partners b. presence of strong management professionals in the company c. having committed employees d. having a respected brand e. having strong financial resources
A
Which of the following is used to guard a buyer from possible price increases for merchandise? A. Commodities futures B. Currency futures C. Credit default swap D. Exchange-traded funds E. Hedge funds
A
Which of the following offers less risk and less reward? A. Preferred stock B. Stock dilution C. Split stock D. Common stock E. Hedge funds
A
Which of the following represents an opportunity for the overall value of stock to rise over time? A. Capital gains B. Market value C. Book value D. Dividends E. Par value
A
You are interested in starting a business as a one-person company. As you put the business plan together, you are looking for the first infusion of capital needed to start your small business. Which of these terms describes your first infusion of capital? A. Seed money B. IPO C. Venture capital D. Bank loan E. Equity
A
________ is the management function of keeping a company's activities on track toward previously established goals. a. Controlling b. Leading c. Motivating d. Organizing e. Planning
A
________ refer to debt securities issued by the federal government that are repaid within 1 to 10 years after issuance. a. Treasury notes b. Treasury bills c. Municipal bonds d. TIPS e. Treasury bonds Grade: User Responses: Feedback:
A
ABC International does business in three different countries dealing in euro, U.S. dollars, and Japanese yen. In which of the following might ABC International invest to protect it from rate shifts between different types of monies? A. Derivatives B. Currency futures C. Financial futures D. Credit derivatives E. Foreign exchange market
B
Currency futures are used to ________. a. reduce a borrower's exposure to credit risk b. hedge against exchange rate shifts c. buy commodities at a fixed price d. reduce a lender's exposure to credit risk e. avoid obligations to buy or sell assets
B
In your portfolio, you own 450 shares of General Electric. The company announces that each share of stock is being divided into three new shares, so you now own 1,350 shares. This is known as a stock ________. a. buyback b. split c. dilution d. option e. valuation
B
JSE Limited is a South African organization that facilitates exchange of equities between investors. JSE Limited is a(n) ________. a. fund manager b. stock exchange c. underwriter firm d. financial broker e. treasury
B
Susan does not believe in buying individual stocks and bonds but still wants to invest in a combination of stocks and bonds. Which type of fund might be the MOST appropriate for Susan? A. Exchange traded funds B. Balanced funds C. Index funds D. Sector funds E. Money market funds
B
The federal government requires which of the following for the make-up of a board of directors? A. At least 17 percent of seats must be held by women. B. The majority of seats must be held by independent directors. .C. At least 13 percent of seats must be held by ethnic minorities. D. There must be at least one lead director. E. The CEO and the board chair must be the same person.
B
Which of the following are used to lower a financier's exposure to credit risk? A. Derivatives B. Credit derivatives C. Options D. Financial futures E. Hedge funds
B
Which of the following is NOT an advantage of index funds? A. No active management B. Higher performance rates C. Lower expense ratio D. Lower cost E. Lower cost of running the fund
B
Which of the following is a form of group mentoring? A. Y Combinator B. An advisory board C. A board of directors D. SCORE E. Business incubators
B
Which of the following is also called par value? A. Market value B. Face value C. Book value D. Intrinsic value E. Dividend value
B
Which of the following transfers the risk of investment from one person to another? A. Portfolio diversification B. Derivatives C. Bonds D. Mutual funds E. Stocks
B
For your new business, if you are looking for private funding, you should explore all of the following EXCEPT ______. A. venture capitalists B. stocks and bonds C. angel investors D. microlenders E. bank loans
B.
NoName International is a public company. NoName has a Board of Directors comprised of 18 members. Of the following, who traditionally oversees the members of the Board of Directors? A. CEO of NoName International B. Independent Board chair at NoName International C. Lead director of NoName International's Board D. Largest stockholder of NoName International E. Chief financial officer of NoName International
B.
In a(n) ________, the purchaser tries to persuade enough shareholders to go against management and vote to sell. A. leveraged buyout B. hostile takeover C. acquisition D. merger E. joint venture
B/
10. No-load funds are mutual funds that ________. a. offer low rates of interest b. do not invest in equity shares c. do not charge sales commission d. offer huge tax benefits to investors e. offer high rates of interest
C
A car dealer in Ohio has the rights to sell trademarked automobiles manufactured by Armadillo Motors Inc., which does not have a distribution network in Ohio. The car dealer purchases the automobiles from Armadillo Motors Inc. and then resells them in Ohio. Which of the following models does the dealer use? a. intrapreneurship b. joint venture c. product franchise d. shakeout e. vertical integration
C
Celera Inc., a soap manufacturing firm based in Colorado, needs to raise capital to fund its product development plans. The firm decides to offer its shares of ownership to the public for the first time, and lists its securities on a public exchange. This is termed as ________. a. secondary market offering b. Crowdfunding c. IPO d. private placement e. secondary equity offering
C
R&M Group, a consumer products company based in Libya, conducted a market research. The research indicated that there was a lack of branded soft drinks in the market, even though there were several local soft-drink manufacturers. The company purchased the right to produce and distribute soft drinks of Fizzpop Inc.(a leading U.S. based soft-drinks firm) R&M Group also sources the supplies from Fizzpop Inc. to ensure that the taste of the product remains the same. In this scenario, which of the following business methods does R&M Group use? a. vertical integration b. shakeout c. manufacturing franchise d. joint venture e. delayering
C
When a bond is first issued, which of the following represents a particular yearly interest rate offered? A. Duration B. Yield C. Coupon D. Current yield E. Price/earnings ratio
C
Which of the following acts as a marketplace for short-term debt instruments? A. Derivatives market B. Securities market C. Money market D. Treasury Department E. Bond market
C
Which of the following enables the buyer to use a larger company's trade name and sell its goods or services in a specific territory? A. Manufacturing franchisor B. Franchisee C. Franchise D. Franchisor E. Product franchisor
C
Which of the following is an advantage of buying into a franchise system? a. It allows the owner to have a very high level of freedom. b. It comes with a workforce. c. It comes with an established business system. d. It already has a customer base with ongoing sales. e. It requires the owner to establish brand recognition from scratch
C
Which of the following represents the separate legal entity established by strategic partners? A. Strategic alliance B. Leveraged buyout C. Joint venture D. Consolidation E. Acquisition
C
________ refer to short-term debt securities issued by the federal government. a. TIPS b. Municipal bonds c. Treasury bills d. Treasury bonds e. Treasury notes
C
________ refers to shares of ownership without voting rights but with defined dividends. a. Treasury bond b. Common stock c. Preferred stock d. Equity stock e. Derivative
C
Which of the following is a disadvantage of a merger or acquisition? A. Reduced buying power B. An increase in cross-selling of products C. Different organizational cultures D. More employees with specific expertise E. Product line size increases
C.
123 Tools is attempting a hostile takeover of XYZ Tools. In which type of defense does XYZ make itself less valuable to 123? A. White knight B. Tender offer C. Raider fight D. Poison pill E. Proxy fight
D
AAA Cars and Best Cars, two auto-parts manufacturers, have just signed a long-term partnership to jointly produce and sell their products. This is an example of which of the following? A. Leveraged buyout B. Consolidation C. Merger D. Strategic alliance E. Joint venture
D
ABC Tools has hired Frost Accounting to take care of all its billing, accounting, and tax-related issues and HR Solutions to manage its human resourcesdash-related issues. This is an example of ________. A. small business failure B. e-commerce C. high-growth ventures D. outsourcing E. lifestyle businesses
D
If the ABC, NBC, and CBS television networks were to create a separate entity called BBB Media to develop and market online original media (such as movies and documentaries) that would compete with Netflix and Hulu, this would be an example of a(n) ________. A. strategic alliance B. consolidation C. acquisition D. joint venture E. leveraged buyout
D
Juanita recently bought some bonds at a discount from the face value. At maturity, she will be paid the full face value and the difference is considered the interest earned. Which of the following describes what bonds Juanita bought? A. Savings bond B. Revenue bond C. General obligation municipal bond D. Zero-coupon bonds E. Treasury bonds
D
Miranda recently purchased rights to buy 1,000 shares of McDonald's at $100 per share in December. This purchase illustrates which of the following? A. Derivatives B. Mutual fund C. Hedge fund D. Options E. Futures
D
Similar to stocks, which of these are traded on public exchanges? A. Municipal bonds B. Treasury bills C. Treasury notes D. ETFs .E. Treasury bonds
D
Three factors contributing to the increased number of small businesses are technologies such as e-commerce, growing diversity in entrepreneurship, and ________. a. nationalization b. monopolistic business practices c. market regulation d. downsizing and outsourcing e. increased ease in going public
D
Which of the following funds are also called "specialty funds" or "industry funds"? A. Socially responsible funds B. Index funds C. Balanced funds D. Sector funds E. Money market funds
D
Which of the following is NOT true of small businesses? A. They fill niche markets. B. They produce more patents per employee than do large firms. C. They employ about half of the private sector workforce in the U.S. D. They create roughly 40 percent of all new jobs in the United States. E. They produce half the U.S. gross domestic product.
D
Which of the following is a potential benefit of common stock ownership? A. Lower cost B. Lower expense ratio C. Stock dilution D. Dividends E. Split stock
D
Imagine that ABC and NBC, two publicly traded companies, have just decided to merge their operations. When the merger between these firms takes place, which type of organizational culture clash is LEAST likely to occur? A. Management styles B. Communication practices C. Workplace atmosphere D. Stock valuation E. Corporate values
D.
Alex believes the market is going to crash and decides to sell all the stocks and bonds he owns in his investment portfolio. Which market is most likely to handle the transactions? A. Money market B. Treasury Department C. Stock exchanges D. Primary market E. Secondary market
E
Amanda does not have much time for research and does not like taking risks with individual stocks. She heard that there are some funds that are similar to the investment composition of a stock index such as S&P 500. Such a fund would be called a(n) ______. A. mutual fund B. no-load fund C. money market fund D. load fund E. index fund
E
An advisory board differs from a corporate board of directors, because _______. a. an advisory board has legal responsibilities b. you usually require high amounts of financial compensation to consult an advisory board c. advisors are required to obtain certification from SBR d. members of an advisory board lack subject-area expertise e. you don't have to incorporate to establish an advisory board
E
As an investor, Amy is interested in knowing what the real worth of IBM is. Amy should look at which of these? A. Book value of IBM B. Stock buyback quantity of IBM C. Stock split value of IBM D. Market value of IBM E. Intrinsic value of IBM
E
If a corporation has issued a stock that doesn't meet listing requirements of a particular exchange, how is the stock sold? A. On the NASDAQ B. On an international exchange C. On a regional exchange D. On the NYSE E. Over the counter
E
If you are interested in opening a Pizza Hut franchise, which of the following gives you the right to open a Pizza Hut using their name and format for doing business? A. Product franchise B. Small Business Investment Companies C. The Small Business Administration D. Manufacturing franchise E. Business-format franchise
E
Raj is interested in venturing into a business; however, he is looking for less work in getting it going and less risk. For which of the following should Raj go? A. Creating a new business B. Buying a franchise C. Leasing a franchise D. Merging with another business E. Buying an existing business
E
SCORE is a resource partner of the_______. a. Minority Business Development Rgency b. United States Chamber of Commerce c. Center for Emerging Technologies d. Small Business Online Community e. Small Business administration
E
The institution that actually provides the money for an SBA-backed loan is the ________. a. venture capitalist b. IPO c. SBIC d. business incubator e. Bank
E
The interest income a buyer receives from the bond is called the ______. A. duration rate B. intrinsic value C. dividend D. par value E. yield
E
The practice of engaging outside firms to handle individual projects or business functions is called what? A. High-growth ventures B. Lifestyle businesses C. E-commerce D. Small business E. Outsourcing
E
Which of the following is LEAST likely to support the desire to start a small business? A. The desire to develop new product ideas B. The desire to pursue business goals that are important on a personal level C. The desire to control one's own future D. The desire to work independently E. The desire to produce a steady income
E
Which of the following is a typical role of middle managers in an organization? a. supervising workers on an assembly line b. supervising knowledge workers c. making long-range plans for the organization d. defining the strategic orientation of the organization e. translating strategic goals and objective into actions
E
Your roommate is interested in starting a business as a corporation. He is interested in establishing a type of corporation that combines the capital-raising options of a corporation with the federal tax advantages of a partnership. Which of the following options would you suggest? A. Benefit corporation B. Limited liability company C. Master limited partnership D. Private corporation E. S corporation
E.
A vision statement is a brief description of a company's present status in the market. a. true b. false
FALSE
Standards refer to the criteria against which performance is measured. a. true b. false
TRUE
Studying ideas using criteria, such as cost and feasibility, is part of which step in the decision-making process? A. Analyzing the options B. Monitoring the results C. Identifying and developing options D. Selecting the best option E. Implementing the decision
a
When trying to build capital in an investment portfolio, which type of investment is MOST useful? A. Equity investments B. Bear market investments C. Liquid investments D. Cash instruments E. Income instruments
a
Which of the following is a means of observing and measuring company functions from the financial, operations, consumer, and development perspectives? A. Balanced scorecard B. Employee empowerment C. Laissez-faire system D. Crisis management E. Benchmarking
a
Which of the following is one of the biggest disadvantages of a franchise? A. Lack of control B. Standardized goods and services C. Being part of a larger organization D. Association with national advertising campaigns E. Being required to use a predetermined business model
a
Currency futures are used to ________. a. hedge against exchange rate shifts b. reduce a borrower's exposure to credit risk c. buy commodities at a fixed price d. avoid obligations to buy or sell assets e. reduce a lender's exposure to credit risk
a.
Danielle has an innate ability to solve interpersonal issues that the employees face and she is always considerate toward her subordinates. She is capable of coordinating with different types of employees in the organization. Danielle has high ________ intelligence. a. Social b. Informational c. Emotional d. Cognitive e. Critical
a.
International franchising is: a. a successful area for both small and large franchises. b. costs about the same as domestic franchising. c. becoming increasingly difficult, and so is not growing. d. easy, because you really do not have to adapt your product at all.
a.
Joe and Mark would like to start a new business selling a product new to the United States, the Peraves Monotracer. This is a motorcycle type vehicle that is encased in a sort of shell, so that the rider can ride this product in any kind of weather. Joe and Mark have done a considerable amount of research on this product, and think it would be successful in the U.S. However they are still concerned about the risk of a new venture and would like to avoid losing personal assets by organizing their firm as a: a. corporation. b. limited partnership. c. general partnership. d. sole proprietorship.
a.
One of the advantages of a franchise is: a. receiving management and marketing expertise from the franchisor. b. fewer restrictions on selling than in other forms of businesses. c. lower start up costs than other businesses. d. you get to keep all the profits of your business after taxes.
a.
One of the problems with a ___________________ is that there is no one with whom to share the burden of management. a. sole proprietorship b. limited partnership c. S corporation d. limited liability company
a.
When a major national bakery bought out a smaller more regional bakery in the east, it took over all their assets and their debt and the smaller bakery ceased to exist. This is an example of a(n): a. acquisition. b. merger. c. nationalization. d. appropriation.
a.
When going into a partnership, you should always: a. put all terms of the partnership into writing, in a partnership agreement. b. make sure that you have limited liability while you are in charge. c. make sure all the profits are reinvested into the company. d. divide the profits equally.
a.
Which of the following is not considered an advantage of a limited liability company? a. limited number of shareholders b. personal asset protection c. choice of how to be taxed d. flexible ownership rules
a.
With a zero-coupon bond, the ________. a. purchaser buys the bond at a discount from the face value b. full face value is not paid to the investor at maturity c. investor receives interest on a regular basis d. interest is paid immediately after a bond is purchased e. purchaser buys a bond by paying exactly the face value
a.
__________ can be both an advantage and a disadvantage of a conventional corporation, as they have the ability to raise large amounts of money and hire experts, but can become inflexible and tied down in red tape. a. Size b. Tax returns c. Termination d. Limited liability
a.
A stock split is performed if a company's management team believes that the firm's shares are undervalued. a. true b. false
a. true
does business in the US but is chartered (incorporated) in another country
alien corporation
As a high-level manager at Garden Tools, Inc. (GTI), Michael routinely attempts to collect and analyze data. It is likely that Mike may lose understanding of what is taking place at the lower levels at GTI. This risk is part of which type of leadership role? A. Interpersonal B. Informational C. Analytical D. Decisional E. Controlling
b
Jasmine is interested in buying shares of Wal-Mart. She wants to buy the stock using an online brokerage company and has decided that the most she is willing to pay per share is $45. Which of the following should she use to place her order? A. Short selling order B. Limit order C. Market order D. Stop order E. Margin trading
b
Socially adept managers will have a knack for ________. a. solving problems quickly using their reasoning abilities b. finding and building common ground with people of all kinds c. judging others based on a variety of objective parameters d. controlling their own emotions and impulses e. exhibiting rational skills to make high-quality decisions
b
When the price of a stock is out of line with similar stocks, how can board members bring the price back in line? A. Resetting par value B. Splitting the stock C. Stock buyback D. Adjusting book value E. Dilution of the stock
b
When you tell your broker to buy a stock at the best price that can be negotiated at the moment, it is called a _____. A. stop order B. market order C. face value order D. limit order E. credit order
b
Which of the following communicate and execute strategy, solve problems, create efficiencies, and manage performance? A. First-line managers B. Middle managers C. Corporate officers D. Supervisory managers E. Top managers
b
Which of the following is the basic premise of a derivative? a. maximizing the dividend payout on equities b. transferring risk from one party to another c. linking shares to governmental bonds d. minimizing the risk for all parties involved e. limiting the value of an asset attached to them
b
____________ involve an individual's ability to comprehend that an organization is made up of several interrelated areas that need to work together to ensure success in business ventures and to make strategic choices. A. Decision-making skills B. Conceptual skills C. Interpersonal skills D. Technical skills E. Administrative skills
b
A new form of business ownership looks like a corporation in that it is traded on the stock exchanges like a corporation, but it is taxed like a partnership and avoids the corporate income tax. This is known as a(n): a. sole proprietorship. b. master limited partnership. c. "S" corporation. d. general partnership.
b.
A(n) ________ is the purchased right, but not the obligation, to buy or sell a specified number of shares of a stock or other security at a predetermined price during a specified period. a. financial future b. option c. commodity future d. secured bond e. credit derivative
b.
In a ___________, members democratically control the business by electing a board of directors that hires professional management. a. corporation b. cooperative c. franchise d. master limited partnership
b.
In a corporation, the Board of Directors: a. consists of a group of major shareholders who want a say in running the business. b. is elected by the owners/stockholders. c. is made up of lenders to the corporation. d. has unlimited liability.
b.
One of the benefits a general partnership has over a sole proprietorship is: a. limited liability. b. more financial resources. c. easy to start. d. a board of directors to help with decisions.
b.
The owners of a corporation are called: a. general partners. b. stockholders. c. limited partners. d. proprietors.
b.
When the Federated Department Stores, which owns several department store chains, bought the May Company, another department store chain, so Federated could expand their product offerings, it was a: a. vertical merger. b. horizontal merger. c. conglomerate merger. d. cooperative merger.
b.
When your profitable franchise fails simply because other franchisees have failed, this is known as the: a. royalty rate. b. coattail effect. c. failure rate. d. green ceiling.
b.
A manager has the capability of reducing his disruptive impulses and moods. He also has the ability to understand others' feelings. These capabilities are indicative of ________. a. high degree of autocracy b. low cognitive intelligence c. high emotional intelligence d. low social intelligence e. high cognitive intelligence
c
Barbara owns a small florist shop that employs a couple of part-time floral designers. She doesn't expect her business to grow much, but it provides her with a comfortable income and she enjoys what she does. Barbara's business would be described as a ________. a. service business b. retail business c. lifestyle business d. mid-size enterprise e. high-growth venture
c
Ellen is measuring performance in her Operations Department at ABC Manufacturing. The criteria against which she should measure performance are called what? A. Contingency plans B. Balanced scorecards C. Standards D. Benchmarks E. Controls
c
Gordon Fiber is a firm that manufactures fiber products. The firm is facing a credit crunch and wants to liquidize the treasury bills and commercial papers they have. The firm can sell these at the ________ market. a. futures b. options c. money d. stock e. bond
c
Jessica works for ABC Shoes. At ABC, Jessica is responsible for establishing structure, strategic goals, and guiding her employees. She is also responsible for making long-range plans and establishing major policies. She often works long hours and is frequently faced with making difficult choices in order to better ABC. Jessica is a __________. A. coach B. first-line manager C. top manager D. middle manager E. mentor
c
MaryAnn has been put in charge of a new division at her company. She is working on acquiring all the equipment, tools, and facilities necessary to kick-start that division. MaryAnn is focusing on which of the following? A. Planning B. Crisis management C. Organizing D. Controlling E. Leading
c
Which of the following allows employees to make decisions that relate to their particular phases of work? A. Mentoring B. Empathy C. Laissez-faire leadership D. Corporate cultures E. Coaching
c
Which of the following monitors performance from multiple perspectives? A. Benchmarking B. Performance standard C. Balanced scorecard D. Control cycle E. Quality plan
c
Which of the following organizations have set disclosure requirements for franchisors? A. The Small Business Investment Company (SBICs) B. The Minority Business Development Agency C. The Federal Trade Commission (FTC) D. The Small Business Association E. The U.S. Chamber of Commerce
c
Which of the following statements is true about intrapreneurship? a. It refers to individuals who start a business by buying into a franchise system. b. It refers to individuals who start new, independent businesses. c. It can be risky behavior that may or may not be rewarded. d. It increases bureaucracy and hinders innovation. e. It involves working with tried-and-true methods.
c
If you are interested in starting your own business, you want to minimize the hassle and you don't want to have anyone tell you what to do, you should organize your business as a (n): a. S corporation. b. limited partnership. c. sole proprietorship. d. closed corporation.
c.
In order to avoid a hostile takeover by a Kollmorgaen, managers at Pacific Scientific considered making a bid for all the company's stock themselves and taking it off the open market. The term to describe this action is: a. a leveraged buyout. b. a conglomerate merger. c. taking the firm private. d. forming a master limited partnership.
c.
When Jeanne-Marie Delacourt was born, her American grandmother bought her 10 shares of Disney stock. As Jeanne-Marie grows, so will her investment. However, if Disney should happen to go out of business: a. Jean-Marie will be responsible for some of the debt of Disney. b. Jean-Marie will have to go to court to show she has no involvement in the firm. c. Jean-Marie will only lose the value of her shares. d. Jean-Marie will have to borrow money from her grandmother to pay for the value of her shares.
c.
bus whose stock is held by a few people and isnt available to the general public
closed (private) corporation
the joining of firms in completely unrelated industries
conglomerate merger
a state-chartered legal entity with authority to act and have liability separate from its owners
conventional corporation (C Corp)
Alice is leading the efforts at her company to develop goals for the next 2dash-5 years and establishing a course of action to achieve them. Alice is leading the efforts on which of the following? A. Action plan B. Launch plan C. Benchmarking D. Strategic plan .E. Forecast
d
As a manager in the operations division of ABC Manufacturing, Ellen focuses primarily on ensuring that ABC's activities remain aligned with previously established goals. Which of the following functions is Ellen performing? A. Organizing B. Benchmarking C. Planning D. Controlling E. Leading
d
Funding a new business with credit cards or a personal line of credit ________. a. is the least expensive form of financing b. is subject to a lot of bureaucratic procedures c. is used by very few entrepreneurs d. is a widely available form of financing e. involves minimum amount of risk
d
In addition to the initial cost of the franchise, what responsibilities does the franchisee have to the franchisor? A. Exit strategy B. IPO buyout C. Marketing strategy D. A percentage of sales revenue E. A start-up schedule
d
In terms of asset allocation, which of the following is considered a cash instrument? A. Corporate bond B. Common stock C. Equities D. Money market mutual fund E. Government bond
d
Marjorie owns 1,000 shares of XYZ Tools. She bought the stock at $15 per share and it is currently trading at $38 per share. She is concerned about the stock market and decides to ask her broker to sell the stock when the price drops to $30 per share. Which type of transaction is taking place in this scenario? A. Margin trading B. Limit order C. Market order D. Stop order E. Short selling
d
RS Bank introduces a mutual fund that is designed to invest only in the telecom sector. This mutual fund is an example of a(n) ________. a. socially responsible fund b. balanced fund c. optimal fund d. sector fund e. target-date fund
d
Stocks that are purchased primarily for dividend payouts rather than capital gains potential are known as ________ stocks. a. penny b. growth c. defensive d. income e. blue chip
d
When developing goals and objectives, the goals and objectives should be SMART, which stands for __________. A. strengths, measurable, attainable, relevant, and threats B. simple, measurable, attainable, relevant, and time-limited C. specific, meaningful, attainable, realistic, and timely D. specific, measurable, attainable, relevant, and time-limited E. simple, meaningful, attainable, realistic, and timely
d
Which of the following is a major difference between banks and venture capitalists as categories of private financing? a. Unlike banks, which recruit investment specialists, venture capitalists are private investors without any specialized investment skills. b. Unlike banks, which are extremely focused and selective in giving loans, venture capitalists are less focused and provide loans to a large number of start-ups. c. Unlike banks, which provide investment for high-risk businesses, venture capitalists won't lend money to a start-up that hasn't established a successful track record. d. Unlike banks, which only provide money, venture capitalists also provide management expertise. e. Unlike banks, which don't require collateral, venture capitalists provide investments only when an entrepreneur puts up marketable collateral.
d
Which partner of the SBA includes retired business professionals who offer free advice and one-to-one counseling? A. The Minority Business Development Agency B. Office of economic development C. SCORE D. Business incubators E. Open Forum
d
__________ refers to the growth in the value of the stock price over time. A. Derivatives B. Par value C. A dividend D. Capital gain E. Hedging
d
1. Which form of ownership is the most common? a. Corporations b. Master limited partnerships c. General partnerships d. Sole proprietorships
d.
4. At Sound Off!, a store that buys and sells used c.d.'s, there is only one owner, Sonia. She spends all her time running the business, and makes all the decisions. Sonia's mother and brother put up money for her to buy the store, but they work full time at other jobs and have no management say in the running of Sound Off! This is an example of a: a. general partnership. b. master limited partnership. c. S corporation. d. limited partnership.
d.
A _____________ is one whose stock is not available to the general public through a stock exchange. a. alien corporation b. domestic corporation c. public corporation d. closed corporation
d.
A form of ownership which can have only 100 shareholders, who must be permanent residents of the United States, is called a(n): a. conventional C corporation. b. closed corporation. c. limited liability partnership. d. S corporation.
d.
The main reason for a conglomerate merger is that: a. the investors want more for their money. b. it ensures a constant supply of materials needed by other companies. c. it allows for a firm to offer a variety of related products. d. the business can diversify its business operations and investments.
d.
When Pat Sloane bought a Tidy Maid franchise, she became a: a. franchisor. b. stockholder. c. venture capitalist. d. franchisee.
d.
Which form of partnership limits your liability to only your actions, or those of your subordinates, so that you can operate without fear that one of your partners might commit an action of malpractice that could cause you to lose your personal assets? a. General partnership b. Limited partnership c. Master Limited Partnership d. Limited Liability Partnership
d.
At the federal level, small businesses can apply for loans backed by the . a. U.S. Chamber of Commerce b. Service Corps of Retired Executives c. Center for Emerging Technologies d. Venture Capitalists Association (VCA) e. Small Business Administration
e
Preparing a business plan serves which of the following functions? a. It identifies sources of potential employees for the business. b. It meets licensing regulations established by the local government. c. It fulfills the requirements set forth by the Small Business Administration. d. It assists the owners in preparing publicity releases for the business. e. It helps persuade lenders and investors to finance the business.
e
Republic Furniture is interested in expanding to the City of Wichita, Kansas, with 125 potential jobs. Which of the following is chartered with helping companies like Republic prosper so they might contribute to the local or regional economy? A. Minority Business Development Agency B. Service Corps of Retired Executives C. Open Forum D. Small Business Administration E. Office of economic development
e
Robex Retail forms a contract with one of its suppliers to buy specific amounts of agricultural produce at a later date. This contract is an example of a(n) ________. a. credit derivative b. call option c. put option d. financial future e. commodities future
e
Top management differs from lower management tiers in terms of (1) long time frames within which executives must work and (2) _______________. A. their ability to manage managers B. their ability to manage workers C. their coworker relationships D. their ability to implement action plans E. the magnitude of their decision
e
Which is a performance variable that indicates how closely activities or outcomes conform to predetermined standards and customer expectations? A. Benchmarking B. Control cycle C. Standards D. Crisis management E. Quality
e
A(n) __________ is an expansive, long-term achievement that the organization wishes to attain. A. objective B. vision statement C. mission statement D. value statement E. goal
e
______________ of leaders include gathering, analyzing, and communicating various materials for the company both internally and externally. A. Decisional roles B. Technical roles C. Administrative roles D. Interpersonal roles E. Informational roles
e
The overall plan might be supported at the next level down by such plans as research and development plan, manufacturing plan, and marketing plan. Such functional plans are called ______plans. a. contingency b. corporate c. appraisal d. strategic e. tactical
e. tactical
A management pyramid is used to exhibit managerial roles without defining a corporate hierarchy. a. true b. false
false
An economic slowdown is viewed as a weakness in the SWOT analysis of a firm. a. true b. false
false
Money-market funds are financial instruments that invest in stocks considered to be selling below their true value. a. true b. false
false
Stock of companies whose earnings tend to track the ups and downs of the economy in a predictable pattern are known as defensive stocks. a. true b. false
false. known as cyclical stocks
the joining of two firms in the same industry
horizontal merger
A _________ ___________ creates a separate legal entity established by the strategic partners, which can be more attractive than a merger or acquisition in certain situations.
joint venture
A _________ _____________ involves the use of debt financing to buy the stock of a company. This is what the workers are attempting to do in this example.
leveraged buyout
bus whose stock to the general public. GM and ExxonMobil are examples of public
open (public) corp
one whose owners offer professional services and shares arent publicly traded
professional corporation
a corporation chartered by the gov as an approved monopoly to perform services to the general public. public utilities are examples of this.
quasi-public corporation
First-line managers are those at the lowest level of the management hierarchy. a.true b.false
true
Setting the prices of new products is a fairly routine decision that managers make. a. true b. false
true
Treasury notes are debt securities issued by the federal government that are repaid within 1 to 1 0 years after issuance. a. true b. false
true
the joining of two companies involved in different stages of related business
vertical merger
