TLI 152 Quizzes up to Week 8

A business's primary obligation to its owners and investors is to ______.

maximize the owners' investments in the firm

Select the three items that would be considered ethical behavior in a business.

meeting obligations and responsibilities avoiding conflicts of interest keeping company secrets

The advantages of centralized authority in organizations include:

more efficiency

A local furniture company launched a website to boost national sales. However, it could not ship the orders efficiently so its started using FedEx and UPS. This is an example of _

outsourcing

Which of the following is an advantage of offshore outsourcing?

paying low wages to employees

An individual's values, principles, and standards of conduct are referred to as ______.

personal ethics

When employees copy the work or ideas of others and present it as his or her own this is called _______.

plagiarism

brain drain

the loss of the smartest people from a country

The image depicts a(n) _ corporation structure

virtual

Business Environment - Opportunity - Challenge Economic & Legal - Freedom to choose and start own business - High Taxes Technological - The Internet - Social - Wealthy senior citizens - Decrease in Social Security contributions Global - - War and Terrorism

- Identify theft - is a challenge in the technological environment of businesses, while the desire for - green living - presents opportunities for new businesses in the global environment.

Reasons against trade restrictions

-misallocation of international resources -restriction of consumers' choices -higher prices for consumers -loss of jobs

reasons for trade restriction

-retaliate for another nation's trade restrictions -protect domestic jobs -protects health of citizens -equalize nation's balance of payments -protect new/weak industries -protect national security

Which behavior is the most common ethical problem for employees?

Abusive behavior

Which leadership style focuses on making decisions without consulting others?

Autocratic

As effective as the informal organization may be in creating group cooperation, it can still be equally powerful in resisting management directors. Identify from the following list some examples of employee resistance

Being absent Employees may spread incorrect rumors Employee theft

Which of the following statements reflects the difficulty companies face when requiring international suppliers to follow environmental and human rights standards set by U.S. firms?

Both economics and culture enter into the discussion of fairness concerning international suppliers who do business with U.S. firms.

What is the term for the periodic rises and falls that occur in economies over time?

Business Cycles

Select the statement that best substantiates why we say, "The role of management is evolving

Contemporary managers will focus on collaboration and continue to emphasize the team approach to work.

__________ is a cost-effective way that many companies outsource the production of goods, such as clothing, shoes, and cell phones. The domestic firm contracts with a foreign company to produce and private-label the goods because the price is much cheaper than the domestic firm could produce in its home market.

Contract manufacturing

The widely shared values within an organization that provide unity and cooperation to achieve common goals is the organization's

Culture

Which person is a stakeholder for a business?

Customer

The practice of exporting goods at prices lower than prices in the home market.

DUMPING

To more quickly respond to customer needs, a company is changing its organizational structure to give more authority and responsibility to field managers located across the country. These managers spend time with customers and know what the customers need right away. It appears that this company is moving toward a more __________ structure.

Decentralized

Which act was passed to reform the financial industry and offer consumers protection against complex and/or deceptive financial products?

Dodd-Frank

A legal provision known as the _______________ provides a "bounty" provision for whistleblowers whose actions result in a legal conviction. The monetary award may total as high as 30% of the amount collected for violations that exceed $1 million.

Dodd-Frank Wall Street Reform and Consumer Protection Act

As a global company, Electra Bikes sells its products to other countries. This process is referred to as

EXPORTING

According to the text, ethical behavior begins with

Each and every individual.

What person is engaged in plagiarism?

Edmund, a manager, takes credit for his employee's ideas.

Which statement is TRUE of business ethics?

Ethical issues are not limited to for-profit organizations.

Price for which the currency of one country can be exchanged for the currency of another country.

Exchange rate

The primary concerns when first starting your business are

Financing and planning.

The law that specifically prohibits "questionable" or "dubious" payments to foreign officials in an effort to secure business contracts is called the:

Foreign Corrupt Practices Act.

A partially or wholly owned company that is part of a larger company with facilities in another country.

Foreign subsidiary

When Keira bought a Super Suds car wash franchise, she became a

Franchisee

General Agreement on Tariffs and Trade; international treaty to facilitate international trade.

GATT

Which of the following was formed in 1948 by the governments of 23 nations to ease trading restrictions?

GATT

Henri Fayol's book was popularized in the United States under what title

General and Industrial Management

Which statement is accurate regarding the use of alternative energy?

Government subsidies will most likely be needed in order to make significant progress in the use of alternative energy.

Reed Hastings created Netflix. His inspiration came from the fact that he had to pay a sizeable late fee for returning a DVD beyond the due date at a rental store. It took a few tries to develop the winning business model. Which statement accurately describes his key to success?

His idea solved a problem

Which of the following control standards is stated most effectively?

Increase sales of our top-end product from 2,000, in the first quarter to 3,000, during the same period by 2017.

Which of the following is NOT included as one of the questions we must ask when faced with an ethical dilemma?

Is it acceptable if everyone else is doing it?

Which of the following are considered to be disadvantages to the matrix organization

It requires good interpersonal skills It can confuse employees about whose order to follow It's costly and complex

___________________are economic systems where some allocation of resources is made by the market and some by the government.

Mixed economies

Organization with facilities and other assets in at least one other country than its home country.

Multinational corporation

__________ uses communications technology and other means to link organizations and allows them to work together on common objectives.

Networking

Regarding the misconduct of business firms, which of the following statements is TRUE?

Often, misconduct evolves from ethical conflicts into legal disputes.

Sergey Brin and Larry Page are the founders of Google. Most would agree that they have a superb product, but in order to grow, the company needed more structure. Together, they agreed to hire Eric Schmidt to join the executive team as the executive chairman. Schmidt quickly began performing the ________ function, where he created well-structured departments and hired skilled people to perform the various functions of the business.

Organizing

Which of the following exemplify line personnel in the line-and-staff organization

Production workers Packaging personnel

Which BRIC country has not lived up to expectations due to a slowing economy, political and social problems, and being labeled as the world's most corrupt major economy?

Russia

Thinking of the various categories for misconduct in the workplace, select the person who BEST fits misconduct based on "fairness and honesty."

Sandra takes reams of copy paper from the office to use with her printer at home.

To truly create an ethical culture, leaders must

Show a strong commitment to ethics and compliance.

Philanthropic activities

Starbucks created the Starbucks Foundation to award grants to eligible nonprofits and to give back to its communities.

__________ is the process managers use to continually monitor all phases of the production process to ensure that quality is being built into the product from the beginning and that quality is not being inspected into the product at the end of the production process.

Statistical quality control (SQC)

Conducting activities in such a way as to provide for the long-term well-being of the natural environment is referred to as _____.

Sustainability

The type of planning that involves developing detailed, short-term statements about what is to be done, who is to do it, and how is referred to as __________ planning.

Tactical

A firm's management purchases all the issued and outstanding stock of the firm and takes the company off the stock market. The management of this company has engaged in

Taking the firm private.

Which are characteristics typical of a C corporation?

Taxed separately from its owners who also enjoy limited liability

Which scenario exemplifies one of the most common ways employees abuse company resources?

Taylor uses her company computer to shop online and check her Facebook page.

Unlimited liability means

The business is responsible for the debt it incurs. If the business cannot pay its bills, the debt burden transfers to the owner(s), and the owners are liable for all debt.

Ethics are the standards of right and wrong set for us by society, whereas legality refers to

The collection of laws to protect society from fraud, theft, and violence.

U.S. businesspeople are often accused of ethnocentricity. This means that

They feel their culture is superior to others.

Which of the following are reasons to name department managers for each department created during departmentalization

To assure the department's accountability To maintain control of the whole process

What are some of the goals of developing an organization chart

To show who report to whom To show relationships among people

Which statement concerning the U.S. service sector today is most accurate?

Today's economy depends overwhelmingly on services rather than manufacturing.

Which of the following best describes entrepreneurial personality traits?

Tolerant of uncertainty and highly energetic

True or false: Ethical issues often emerge from conflict.

True

What has been identified as the most common way employees abuse company resources?

Using company computers for personal use

Which organizational theorist promoted the pyramid-shaped organizing structure as critical to his bureaucracy- based philosophy

Weber

Individuals who report unethical or illegal behavior within an organization are referred to as

Whistleblowers

trading company

a company that provides a link between buyers and sellers in different countries and is not involved in manufacturing or owning assets related to manufacturing

licensing

a contractual agreement in which one firm permits another to produce and market its product and use its brand name in return for royalty or other compensation

trade restrictions-non-tariffs

a nontax measure imposed by a government to favor domestic over foreign suppliers -foreign-exchange control -currency devaluation -import quota

joint ventures

a partnership formed to achieve a specific goal or to operate for a specific period of time

strategic alliance

a partnership formed to create competitive advantage on a worldwide basis

Line managers are those who have the authority to:

adjust to changing conditions enforce discipline issue orders

Economic Communities

an organization of nations formed to promote the free movement of resources and products among its members and to create common economic policies

Under Fayol's _ principle, managers have the right to give orders and the power to enforce obedience

authority

The difference between money flowing into a country from exports and money leaving the country for imports, plus the flow of money from other factors such as tourism, foreign aid, military expenditures and foreign investments is a country's

balance of payments

The new era of business will:

be an information-based global revolution that will impact all sectors of economy.

Why is ethical decision making difficult?

because there are always gray areas that create dilemmas

Although sexual harassment has legal recourse, workplace _______ has little legal recourse at this time.

bullying

A __________ is a written document that details the business idea, the target market and the business's competitive advantage, financial resources available for the business, and the qualification of the management.

business plan

Target's CEO personally conducts the interview process when hiring for the top 600 positions in the company. This is an example of _

centralized authority

According the the consumer bill of rights, the right to _____ ensures that consumers have access to a variety of goods and services at competitive prices.

choose

The formalized rules and standards describing expected employee behavior are outlined in ______.

codes of ethics

Group formed by countries within a geographical region to promote free trade among its members.

common market

False and misleading advertising is an example of how _______ is an area in which ethical concerns may arise.

communication

Because they often picture the organization as a whole and work to incorporate all departments into one, seamless organization, top managers utilize __________ skills the most.

conceptual

Sustainability can be defined as ______.

conducting activities in such a way as to provide for the long-term well-being of the natural environment

This exists when a person must choose whether to advance his or her own personal interests or those of others.

conflict of interest

Nike's strength is in manufacturing athletic shoes and Apple's is in marketing innovative electronics. These are examples of each company's:

core competencies

Because Nike is superior at designing and marketing athletic shoes, this is considered to be their:

core competency

An important reason why companies _ authority is to be more responsive to customer needs

decentralize

As managers perform all four management functions, we recognize that ________ is required. For example, when making plans, the manager must typically choose between two or three alternatives, that have pros and cons.

decision making

The last recession changed the way many companies offer support to people and communities in need. Many companies

decreased financial donations but encouraged their employees to volunteer their time to corporate social initiatives and projects.

Diving an organization into separate working units is called:

departmentalization

Important decisions to be made while designing an organization include:

departmentalization span of control degree of centralization

Once managers determine what work needs to be done, they then need to divide up the tasks among workers. This is called _ of _

division labor

When a house painting company divides workers into those who prepare the surface, those who paint the trim, and those who paint the walls, it is an example of:

division of labor

Robin Banks is a supervisor for a large, bureaucratic organization on the West Coast. According to the views of a bureaucratic organization, this means that Robin should:

do her work and let middle- and upper-level managers do the decision making.

When a company purchases raw materials in bulk, thus reducing the cost of production, it is called:

economies of scale

Restructuring involves redesigning an organization so that it can be more _ and _

effective efficient

Contemporary managers

emphasize teamwork and cooperation, and act as coaches, rather than bosses.

When Parker started his business, he knew he had to keep costs to a minimum and he worried about taxes. He planned to build and distribute safety goggles for construction workers and military personnel. He realized most of his business would not be through walk-in customers but rather large orders from companies. He chose to locate in a government-subsidized area called a(n) ________________, where he would receive tax breaks.

enterprise zone

To build trust among individuals, organizations should adhere to conduct that is _____ in order to validate and promote confidence in business relationships.

ethical

Organizational _____ initiatives have been supportive of many positive and diverse organizational objectives, such as profitability, hiring, employee satisfaction, and customer loyalty.

ethics

trade restriction dumping

exportation of large quantities of a product at a price lower than that of the same product in the home market

This figure is an example of a wide span of control in a _ organizational structure

flat

Which of the following statements regarding offshore outsourcing is TRUE?

focus on areas in which they can grow

International commerce not restrained by government interference or regulation.

free trade

At Schwinn, managers of various new departments in the company were told, "Go out and shape the department the way you feel is best. You have total freedom and support." Schwinn's managers operate under a system of:

free-reign leadership

In the informal organization, the system through which unofficial information flows between and among managers and employees is the

grapevine.

The concept that states all workers should know to whom they report is referred to as the _ of _

hierarchy authority

negative balance of trade

imports>exports=(-) balance of trade

Andre works for a company that promotes an entrepreneurial culture. Employees are encouraged to discuss new ideas. Development time is provided on the job for those ideas that float to the top. Employees who use their creative talents to generate ideas and create products within large companies are called ________.

intrapreneurs

Robert Redford created The Sundance Film Festival, where talented, young directors and producers can submit their films for review and possible screening. The festival attracts thousands of tourists each year, employs many others at various capacities, and provides important exposure to up-and-coming artists who may otherwise not be able to get their works noticed. Ultimately, the festival provides social and economic benefit for many. Adam Smith believed that one's self-directed gain would eventually create prosperity for many, and called the process the ___________.

invisible hand

The drawbacks to Weber's principles of organization have been that:

large organizations may develop too many rules following the rules can become an end in itself

Once known as "directing," the_______ role of management means creating a vision for the organization and empowering employees to become self-directed and self-motivated.

leading

Increased diversity of the population of the United States has:

led to companies with more diverse workforces.

Examples of employees considered to be staff personnel would include:

legal advisers information technology workers

Select from the following the four stages of social responsibility.

legal compliance ethics financial philanthropy

Under this global strategy, a U.S. footwear company allows a foreign firm to use its trademark and manufacture its products in exchange for a royalty.

licensing

When Luke, Larry, and Lance

limited liability

In a pizza parlor the chain of command is a general manager, shift manager, and employees. The employees report to the shift manager who reports to the general manager. This exemplifies a:

line organization

The personnel directly responsible for achieving organizational goals are:

line personnel

The branch of economics which studies the behavior of entire economies and policies that affect the economy as a whole is called

macroeconomics

The primary reason why managers in the latte 1900s began designing organization was so that _

managers could control workers

The evolving business environment has made __________ a critical managerial function.

managing change

A __________ refers to people with unsatisfied wants and needs who are willing and able to buy a product or service.

market

Economies of scale work best in a company that makes large quantities of goods using _ processes

mass production

When Beck joined his uncles oil exploration company in east Texas

master limited partnership

A _ structure, also called a project management structure, sets up teams from different departments, thereby creating two or more intersecting lines of authority

matrix

Bella has perfected the art of candle making. She has made gifts for her friends for years and has always gotten rave reviews, so decided to make a business out of her craft. She plans to run the business out of her home so she can be there to raise her children and still participate in all of their activities. Bella is not interested in growing a large business; she just wants to make extra income. Bella is best described as a(n)

micropreneur.

Business owners who prefer to maintain their businesses at a manageable size are called

micropreneurs

Which of the following statements is a good prediction of future occurrences in global markets?

offshore outsourcing will continue to increase

Under unity of command, each worker is to report to only _ boss

one

Advantages of ________ include reduced start-up fees and no territory

online franchising

Today's trend is to expand the span of control because:

organizations save by reducing the number of middle managers the workforce is better educated at all levels

The Fayol principle esprit de corps indicates that a spirit of _ and _ should be created among people in the firm

pride loyalty

A company may choose to departmentalize by _ so employees are able to focus on learning a few critical skills such as cutting leather to make coats

process

The term used to describe all the activities managers do to help their firms create finished goods and services is __________ management.

production

Besides the shift of jobs to foreign countries, outsourcing has other drawbacks such as

questionable safety and quality issues with finished products

When Target developed its "creative cabinet" its main objective was to gather information from a wide range of customers so that it could:

reach different nationalities reach digital natives adapt to change

__________ is the world's largest exporter.

China

A large commercial cattle farm provides jobs for over 100 employees, who care for over 500 various species of cattle. The operation consists of traditional functional units, which include management, marketing, and finance, and 30 veterinarians that specialize in the various types of cattle owned by the company. Although the firm operates with a CEO, COO, CFO, and a director of marketing, it relies on the veterinarians to make decisions on the appropriate care and environment for the cattle. Sometimes the veterinary decisions override marketing and financial concerns even though the veterinarians operate at a lower level in the organization structure. The commercial farm operates as a(n) __________ organization.

Inverted

The most basic question one should ask when faced with an ethical dilemma is

Is it legal?

Matrix organizations violate traditional managerial principles, yet can be more efficient. This contradiction can be attributed to which of the following attributes

It can produce creative solutions to problems It encourages inter organizational cooperation and teamwork

How does ethical conduct validate and promote confidence in business relationships?

It creates a sense of trust between partners.

Because of the high volume of bicycles as a common form of transportation in Beijing and Shanghai, Charles wants to sell his bicycle horns to these markets. In this case, the exchange rate is $1 U.S. dollar = 6.42 Chinese yuan. Economically speaking, how are his prospects

It depends on the value of the Chinese yuan in relation to the dollar.

Which of the following would be a positive result of departmentalization by product

It results in good customer relations

Select from the following the typical actions of consumerism. (Select all that apply)

Making public service announcements Boycotting companies Writing letters to companies Lobbying government agencies

Identify the TRUE statement about legal issues in business.

Many problems in business could be avoided if managers and employees knew more about business law and the legal system.

Which craft brewer is the first all-wind-powered brewery in the United States?

New Belgium Brewing Company

Judy started a business called "Music and Memories." She recognized that music, socialization, and memory-challenging activities for senior citizens helped maintain their cognitive skills for longer periods of time. Though she strives for a financial gain, she uses the excess funds for enriching her programs instead of personal profit. Her organization is classified as:

Nonprofit

What are the primary sources of funding for entrepreneurs?

Personal savings and individual investors such as family.

Which of the following are advantages of departmentalization by function

The company can achieve economies of scale Employees develop in depth skills and continue to progress

True or false: When it comes to business ethics in the workplace, the "fairness and honesty" principle means, in part, not harming customers, employees, clients or competitors knowingly through deception.

True

What three items represent a misuse of company resources?

Using the company copier for personal use Submitting personal expenses on a company expense report Using the company computer for sending personal e-mails

Due to his reputation of putting together powerful presentations, Victor was contractually hired by AI Life, Inc., to help this firm introduce the value of its new robotic arms and legs to high-net-worth investors. AI Life hired Victor strictly for this special project. At this stage of its life, the firm operates as a(n) __________, where it solicits the services of other companies on an "as needed" basis and then releases them when the job is done.

Virtual corporation

Staff employees _ line managers in meeting their goals

advise

Even though there are plenty of people unemployed, many companies have positions that go unfilled. A survey in Indiana revealed that 39% of companies surveyed say the reason positions go unfilled is because applicants ______.

are not qualified

Many companies are moving from a(n) __________, in which workers do only a few tasks at a time, to a(n) __________, in which teams of workers combine to produce more complex units of the final product.

assembly-line layout; modular layoutCorrect

Organizational ethics begins

at the top levels of management.

A(n) _ span of control allows one supervisor to be responsible for many workers whose work tasks are predictable and standardized

broad

A supervisor who is responsible for 40 workers at an auto assembly plant is said to have a _ span of _

broad control

Leveling the playing field for home-based businesses, ___________ has (have) made starting a home-based business much more affordable.

broadband Internet connections and other technologies

What type of behavior creates a hostile workplace environment but has little legal recourse?

bullying

Joylen recently started working at a major urban university. One of the first things her supervisor provided her with was a large white notebook that contained rules and regulations on just about every aspect of the university's business. As a recent business graduate, Joylen realized that the university operated in a(n) ___________ environment.

bureaucratic

The legal rules and regulations that govern the conduct of business is referred to as ______.

business law

When a firm like Target compares itself to Walmart to improve its practices or processes in order to become better than Walmart it is exemplifying benchmarking for a(n) _ purpose

competitive

When doctors, nurses, technicians, and anesthesiologists from different departments in the hospital work together to complete an operation this is an example of a:

cross-functional self-managed team

Companies that allow their managers to make key decisions to cater to local markets are _

decentralized

Aiden does not offer any direction to his employees regarding ethical behavior. Because of this, Aiden is putting his company at risk for which three of the following? (Select all that apply)

dishonesty conflicts of interest manipulation

positive balance of trade

exports>imports=(+)balance of trade

Chinese firm purchases an American company, the American company becomes a

foreign subsidiary

When Betsy Blackwell bought a mighty maid franchise she became a

franchisee

The number of businesses owned by immigrants, minority groups, and women has _____ in recent years.

grown

The principle of _______________ means that each person should know to whom they report, and that managers should have the right to give orders and expect others to follow.

hierarchy of authority

An important driver of change is customer expectations. Consumer today expect _ products and fast, friendly _ at a reasonable cost

high-quality; service

Government and business leaders are being held to

higher ethical standards than in the past.

A self-managed team:

is empowered to make decisions without management aprovval

Technical skills that apply to the business at hand are most often necessary at __________.

lower levels of management

New production techniques have

made it possible to custom-make products for individual buyers.

For a department to operate effectively, the organization must allocate it sufficient _ such as funds and personnel

resources

OSHA regulates the ______ of employees in the workplace.

safety

Built-right Manufacturing has a positive image in the community in which it operates. The company gives a percentage of its profits every year to support local charities and causes, its employees regularly volunteer within the community and it is committed to using sustainable manufacturing processes. The actions taken by Built-right manufacturing exemplify ______.

social responsibility

Regardless of what an individual believes about a particular action, if _____ judges it to be unethical or wrong, whether correctly or not, that judgment directly affects the organization's ability to achieve its business goals.

society

In a virtual corporation the replaceable firms are joined together on a(n) _ basis to create a flexible organization

temporary

A business plan for a new business does not need to include:

the names of the prospective lending companies.

In using a PERT chart to analyze tasks outlined to complete a given project, the critical path represents

the path of tasks that will take the longest to complete.

Small businesses have an advantage over large business in international trade in all these ways except:

their prices are usually lower due to low overhead.

The chain of command is the line of authority that moves from the _ of a hierarchy to the _ level

top; lowest

A negative balance of trade; a country's imports exceed its exports.

trade deficiet

Air pollution

usually the result of smoke and other pollutants emitted by manufacturing facilities

According to the textbook, one of the drawbacks of using venture capital is

venture capital firms may ask for a high stake in your business.

A _ corporation uses a networked organization structure in order to be flexible

virtual

Principles proposed by Weber and Fayol that are still useful in today's organizations include:

written rules, decision guidelines, and records staffing and promotion based on qualifications job descriptions

trade deficit

An excess of imports over exports

Which factor of production includes the machines, buildings, and tools used in the production of goods?

Capital

Which of the following is a false statement?

General consensus is that larger companies are more responsive to customer needs than smaller companies

Dave facilitated a hiring committee for his advertising company. Six employees (including two managers) met together to discuss applicants and select the finalists for a copywriter position in the public relations department. Although the head of public relations would have the final nod on the candidate that would ultimately be hired, the evaluative work of the committee was very important because this group would send forward those persons they believed would be good work colleagues. In setting up this type of hiring process, the head of public relations was utilizing a(n) __________ style of leadership.

participative

Acid rain

results when certain chemical compounds emitted by manufacturing facilities react with air and rain

A small business advantage is

the ability to quickly adapt to customer needs.

The U.S. unemployment rate is a key economic indicator because most of us need jobs to maintain our standard of living. A criterion used to calculate the unemployment rate is _________.

unemployed persons age 16 and over, who have been looking for work during the past four weeks

Identify which of the following would exemplify employee empowerment

An employee is able to offer free delivery to close a sale without manager approval Workers can approve a sale price without management approval An employee is able to take customer returns without manager approval

When your profitable franchise fails simply because other similar franchisees have failed, this is known as the

Coattail effect.

While many traditional measures of success revolve around the firm's financial performance, it is also important to gauge the satisfaction of the firm's dealers and end users, otherwise known as the firm's

External customers

If you have managerial skills and leadership ability, you also possess the personality to be an entrepreneur.

False

The United States government views entrepreneurship as a result of an individual's self-motivation. The government can do very little to encourage an individual to become an entrepreneur.

False

True or false: Neither line nor line-and-staff organization structures suffer from inflexibility

False

Venture capitalists prefer investing in smaller start-up businesses in order to reduce their overall risk.

False

Through the enactment of ___________ policy, the U.S. government collects tax dollars and then spends some of these funds to maintain the infrastructure of the nation, such as roads and utilities.

Fiscal

When a company departmentalize by areas of business like Japan, America, and Australia it is exemplifying departmentalization by:

Geographic location

The _ of control is the optimal number of subordinates a manager should supervise

span

Division of labor means

tasks are divided into areas of specialization among a group of employees

import duty

tax levied on a particular foreign product entering a country

Profits equal _____.

the funds available for business growth, after expenses and salaries are paid.

In 2010, Congress passed the Dodd-Frank Act, which includes a bounty program to provide incentives for ______.

whistleblowers to come forward with information

twenty years ago your parents invested in apple

your parents will only lose the value of their shares

Select the questions to consider when determining whether an action is ethical. (Select all that apply)

How does this activity fit with your own beliefs and values? Are there legal restrictions? Would this activity be accepted by your co-workers? Is this action customary in your industry?

Which of the following would qualify as staff personnel in the line-and staff organization

Human resource managers Legal advisers Marketing research analysts

A firm that has a marketing department organized geographically and a production process organized by function has which type of departmental structure

Hybrid

America purchases over fifty percent of its crude oil and petroleum products from other countries. This is an example of

IMPORTING

Buying products produced in another country is known as

Importing

Small businesses often have advantages in international markets. One advantage is

Individualized customer service as opposed to impersonal corporate bureaucracies.

Even though he is not a manager, Mr. Klein is the one to see in the company when there is something you need. He will get it quickly and can avoid the red tape that often delays action. Mr. Klein is also the one to see if you need advice or help. Mr. Klein is an important member of the firm's

Informal organization.

A few months ago, Grandma's Country Kitchen, a large nationwide chain of restaurants, purchased one of its competitors, A Taste of Home, for $600 million. A Taste of Home stockholders got a very fair deal for the stock they owned in the company. However, it was disclosed that somehow a member of Grandma's management team mentioned the deal to five of his relatives and several friends. They quickly bought shares of A Taste of Home and purchased the stock before the acquisition became public. These actions are

Insider trading

_______ is an example of a conflict of interest.

Insider trading

A small business

Is considered small relative to other businesses in its industry.

Max Weber's principle of organization resembled Fayol's. In addition, Weber emphasized which of the following principles

Job descriptions Consistent procedures, regulations, and policies Written rules, decision guidelines, and detailed records

Which statement reflects an advantage small businesses have over large business in international trade?

Overseas buyers like dealing with individuals rather than large bureaucracies.

In the past, the major purpose of organizational design was to facilitate the needs of management in making their job easier, rather than

Pleasing customers

When Electra decided to produce its "pedal-assist" motor bike it had to adhere to speed regulations. The company found out, however, that safety regulations differ greatly among various countries and it opted to use the U.S. standard which calls for a lower speed motor. This is an example of how _______ forces can affect global trade.

REGULATORY

In what way is small-business management and large-business management similar in practice?

Similar to large businesses, small business have concerns about obtaining capital and good marketing and management practices.

Why do experts agree that small-business management and large-business management are similar in practice?

Similar to large businesses, small business have concerns about obtaining capital and good marketing and management practices.

When referring to risk, which of the following statements are reasonable?

Sizeable risks can lead to substantial profits, if the business takes calculated risks and captures good opportunities.

What do studies show about the relationship between social responsibility and profitability?

Social responsibility is associated with improved business performance.

Which form of business ownership is the most common in the United States?

Sole proprietorship

The Republic of South Africa exports edible fruits and nuts into the common market known as the European Union, and imports from the European Union other products which South Africa could produce but at a higher cost than what it costs the Europeans to produce. This practice follows the premise of _________________.

The Theory of Comparative Advantage

One of the results of the increase in the older population of the United States is:

a future problem for the Social Security system.

Physical threats, false accusations, use of profanity and yelling at others all fall under which category of organizational misconduct?

abusive behavior

An organization must remain flexible and able to _ to changing times and be successful

adapt

Total flow of money into a country less the total flow out of that country over a specified period of time.

balance of payments

A nation's ratio of exports to imports.

balance of trade

When a snowboard company consulted a cable television company to learn how to braid layers of fiberglass and carbon for its snowboards it was an example of _

benchmarking

XYZ Company desires a successful product launch for its new product venture. Looking outside of its industry, the company solicited the advice of companies JKL and MNO, known for successful product introductions in past years. The business term used to describe the practice of looking toward others to develop a model approach is called

benchmarking

Money given in exchange for a special favor is called a _____ and benefits an individual or a company at the expense of other stakeholders.

bribery

The foundation of the U.S. economic system is considered to be:

capitalist

Global Warming

carbon dioxide in the earths atmosphere prevents the earth's surface from cooling

A(n) _ organization structure maintains the decision- making authority at the top level of management

centralized

If the structure of an organization is a tall pyramid, it would be likely to have _ decision making

centralized

Employees at all levels often resist _ because they are used to doing their jobs in ways they know

change

The result of the increase in the rate of change in the business environment from causes such as natural disasters and global competition has been that companies must:

change more quickly than ever before adapt to new technologies

Natalia notices that one of her coworkers takes extended lunch hours and often leaves the office early. In deciding whether or not to report this behavior, what should Natalia do first?

check her company's policies and codes of ethics regarding this behavior

The recent financial crisis created problems for companies because:

companies had to cut managers and lay off many workers.

the impact of war and terrorism on us business is that

companies have increased organizational costs, including insurance costs

Brazil exports coffee into the common market known as the European Union and imports from the European Union other products that Brazil could produce but at a higher cost than what it costs the Europeans to produce. This practice follows the theory of

comparative advantage.

In a free-market economic system, if consumers perceive the price dfor a state-of-the-art smartphone as too high for the value received, they are likely to avoid buying it. In the same light, if the __________.

consumer's desired price is too low, producers may limit the amount produced

Randy works in an auto plant in which parts constantly travel along a conveyor belt and each worker performs his/her specific job. This describes a(n)

continuous process.

Dell Computer has an arrangement with Quanta Computer in Taiwan to makes its notebook PCs, on which it puts the Dell name. This is an example of

contract manufacturing

Production of goods by one firm under the label or brand of another firm.

contract manufacturing

A manager's need to exert tight controls on subordinates (span of control) is most accurately captured by which of the following statements?

control will decrease as the manager gets to higher levels in the organization and work becomes less standardized.

Measuring performance relative to objectives and standards is part of ___________.

controlling

When Fayol refers to subordination of individual interests to the general interest, he believes that workers are to think of themselves as a(n):

coordinated team

The extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their stakeholders is referred to as ______.

corporate citizenship

Google is a company that provides many services and a relaxed atmosphere for its employees to keep them engaged at work. That is a strong feature of its:

corporate culture

The use of outsourcing is primarily designed to reduce _____________ for the business that is implementing this strategy.

cost

When your profitable franchise falls simply because of other simialir franchise have failed . This is known as the

cottail effect

A form of international bartering in which several countries each trade goods or services for other goods or services.

counter trading

Groups of employees from different departments who work together on a long-term basis and are empowered to make decisions without management approval are

cross-functional self-managed teams.

To build the next generation of gaming software, Fun Time Gaming, Inc., put together a ______________ structure. The structure consisted not only of employees but also suppliers, distributors, and customers, who joined the company experts to pursue the company's objectives.

cross-functional team

Groups of employees from different departments who work together on a long-term basis are called:

cross-functional teams

A bank has a department for customer accounts and another department for corporate accounts. The bank is departmentalizing by _

customer group

Empowering front line workers help organizations adapt to change by responding more quickly to its:

customers

The process of setting up individual departments to do specialized tasks is called _

departmentalization

The first step in the process of organizing a business is to:

determine the work that needs to be done.

Deliberate downward adjustment to a country's exchange rate relative to other currencies.

devaluation

The lowering of the value of a nation's currency relative to other currencies is an economic force called

devaluation

Young people who have grown up with the internet are referred to as:

digital natives

socialist systems tend to

discourage the best from working as hard as they can

According to Fayol, the _ of _ principle states that functions are to be divided into areas of specialization

division labor

You inherited 300 shares of AT&T stock from your Uncle Fred. As you contemplate selling the shares, your accountant informs you that the company pays a generous dividend and advises you to start watching the firm's profits. When you are awarded the first dividend, you learn that it is considered a source of income and you will be taxed on that amount. You find this bothersome because the firm paid the dividend from after-tax profits (these dollars were already taxed). This phenomenon is called

double taxation

Businesses must first be responsible to their owners, who are primarily concerned with ______.

earning a profit

Juan has many business ideas that could satisfy the unfulfilled needs of people who live in his community. However, there are laws that govern the type of businesses that private citizens can own and business taxes are high because the government subsidizes many social programs in his nation. In this case, challenges in the _____ environment increase the risk of Juan starting a business.

economic and legal

Wind power, solar power, and nuclear power are all forms of alternative _____ sources that businesses are turning to in order to reduct carbon emissions.

energy, power, or fuel

According to Fayol's traditional management rules, line organization managers:

enforce discipline for those they supervise issue orders to those they supervise

A(n) __________ is a group of experienced professionals from different areas of business who join together to develop, make, and market a new product.

entrepreneurial team

While unemployment is seen as an economic issue, it carries _____ implications when the gap between rich and poor is large.

ethical

Codes of _______ are formalized rules and standards describing expected employee behavior.

ethics

When seeking financial backing from a venture capitalist, a small business owner should realize that the venture capitalist will

expect an ownership stake in the company in exchange for financial backing.

Departmentalization by _ may create groupthink, where all members think alike and so make poorer decisions

function

The idea of facility layout is to

have offices, machines, and storage areas in the best position to enable workers to produce goods and services for their customers.

The disadvantages of a line structure for large businesses are:

having lengthy lines of communication being too inflexible the lack of expertise to solve complex problems

At a young age, Eliza's coaches were confident she had the potential to be a world-class swimmer. They encouraged her parents to do as much as they could to further develop her skills, because a future in Olympic swimming could set her up for life, including promotional endorsements and coaching positions when her competitive days were over. After four years on an athletic scholarship and Olympic experience under her belt, she chose a different path. With her savings and personal connections, she rented a corner building in a bustling San Francisco neighborhood and pursued her dream: a surf shop business. After several successful years, Eliza was certain that Adam Smith would smile because ______________.

he laid the foundation for her success: she had freedom of choice

In order to protect its local farmers, Japan has imposed a(n) _______ to limit the amount of rice that can be imported from other countries.

import quota

Blake, an operations manager at a plastics processing plant, notices that there is significant scrap and inefficiencies in the plant's operations. Which technique would he be most interested in implementing if he wanted to increase capacity while decreasing the need for resources?

lean manufacturing

Production workers, distribution people, and marketing personnel who are responsible for directly achieving organizational goals are called _ personnel

line

to encourage entrepreneurial growth governments might

Pass laws that enable business people to write contracts that are enforceable in court

Payments, gifts, or special favors intended to influence the outcome of a decision are considered ______.

bribery and are unethical

The activities that independent individuals, groups, and organizations undertake to protect their rights as consumers is called ______.

consumerism

trade restrictions-tariff

import duty, revenue, protective

Citizens of socialist nations can rely on the government to provide all of the following except:

money to start a business

G.E. owns and operates hundreds of companies worldwide with facilities in Europe, India, China, and the U.S.—to name a few. G.E. is an example of a(n)

multinational corporation

Countries participate in foreign trade because

no nation can produce all of the products its people want and need.

All managers do planning. Andrea is a general manager for a large toy store. Each day she plans the number of employees she will have in each department, including the number of cashiers. She plans the break schedules and the freight delivery schedules. In the business world, we refer to this as ________ planning.

operational

All managers do planning. Allison is a general manager for a large toy store. Each day she plans the number of employees she will have in each department, including the number of cashiers. She plans the break schedules and the freight delivery schedules. In the business world, we refer to this type of planning as ___________.

operational planning

Fayol's _ principle states that materials and people should be placed and maintained in the proper location within an organization

order

Partnerships refer to more than one owner. A limited partnership

Consists of general partners and limited partners, at least one of each.

Government order to restrict or prohibit commerce with a specific country.

embargo

The stopping of all trade with a particular country is called

embargo

Among the advantage of a matrix structure are that it:

encourages creativity gives manager flexibility in assigning people to projects

If a company wants to link the computerized functions of all its divisions and subsidiaries into an integrated software program that uses a single database in order to develop a more integrated system that improves customer service, it would use

enterprise resource planning.

The Milford Bottling Company recently became certified as an ISO 14001 company. Which criteria would decision makers evaluate for this award?

environmental improvement plans at the brewery

What is likely to result when managers or employees of an organization have ethical beliefs that differ from those of the organization?

ethical conflict

If your supervisor directed you to enter false information into a sales order book and told you if you refused that you would lose your opportunity for promotion, you would probably consider this situation to be a(n)

ethical dilemma.

Your company is aware of major flaws in the design of one of its products. Your supervisor directed you to lie to a client about the defects in order to get the sale, knowing that the product would be discontinued and no longer supported by the company. Your supervisor also told you if you refused you would lose your opportunity for promotion. You would probably consider this situation to be a(n)

ethical dilemma.

An identifiable problem, situation, or opportunity that requires a person to choose between actions that may be evaluated as ethical or unethical is called a(n) _________.

ethical issue

Trevor is short of his sales goal this month. He knows if he adds small items to his customer's orders, they most likely won't notice the small increase and then he would be able to make his goal. This exemplifies a(n) ______.

ethical issue

Fairness and honesty are at the heart of business _____ and relate to the general values of decision makers.

ethics

Organizations that adopt integrity-based ethical initiatives recognize that ______.

ethics should be a part of core organizational values

Rowe Furniture Company's management dismantled the assembly line, reduced the number of supervisors, and empowered line employees with the freedom to make sofas as they saw fit. This is an example of a(n):

expansion of the span of control

Reliable Industries is a maker of component parts in heating and cooling ventilation systems. The company is looking for a site on which to build a new production facility. Major considerations the company must take into account are that any area selected has adequate rail access and is at the hub of major highways to quickly move products. Reliable is in the process of

facility location.

When the value of exports from a country exceeds the value of imports into that country, there is a _______________.

favorable balance of trade

If more and more countries decide to enact trade protectionism, then CH2M Hill would probably realize

fewer opportunities and revenue

The Dodd-Frank Act was passed to reform the ______ industry.

financial

The American Society of Civil Engineers published a report card for America's interstates. It was reported that road repairs cost the American taxpayers $67 billion per year. Through the enactment of ___________, the U.S. government collects tax dollars and then spends some of these funds to maintain the infrastructure of the nation. Increasing taxes has the effect of drawing money away from the private sector.

fiscal policy

An advantage of a _ organization structure is that lower level employees have authority to respond more quickly to customer needs

flat

An organization structure that has few layers of management and a broad spend of control is called a(n) _ organizational structure

flat

During the past recession, Cali-Bration Company created a __________ organization, when it restructured and eliminated several middle management positions and broadened the span of control for the remaining managers. As it emerged from the recession, Cali-Bration realized that technology permitted the remaining employees to be just as responsive to customer needs as the firm was prior to restructuring.

flat

Departmentalization by process enables employees to do a better job because they can:

focus on learning few critical skills

Even though the nation faces political instability, the island of Frollik with its wide, expansive beaches is a destination hub for cruise lines. Recently, a large theme park company showed strong interest in buying land in Frollik with the intent of building a park targeted toward families. The company wants to make a commitment to Frollik, including the hiring of several hundred local employees. They're using a global marketing strategy called ____________.

foreign direct investment

Free-market capitalism includes four basic rights: the right to own property, the right to own a business and keep the profits; the right to freedom of competition; and the right to

freedom of choice.

In a __________, members democratically control the business by electing a board of directors that hires professional management to run the business.

Cooperative

Which dimension of corporate social responsibility includes charitable donations made to nonprofit groups of all kinds?

Corporate philanthropy

When a tornado hit a town in southern Texas, the people that lived there needed the basics: food, water, and shelter. The owners of a family-owned restaurant in Houston drove several hours with a van of employees, equipment, and food to donate what they could to help the storm victims. The business term we use to describe this philanthropic action is ________, where a company donates what it does best to help make a situation better.

Corporate social initiative

A surgical team has various skilled personnel that work together on a long-term basis to accomplish daily surgeries. A group like this represents what type organizational model

Cross-functional self-managed teams

Which of these actions is least likely to restore the trust of the American public in the free-market system?

Defining the concept of ethics more narrowly and making the definition closer to the definition of legality.

Which Fayol principle states that the amount of decision-making power vested in top management should vary by circumstances

Degree of centralization

With regard to socially responsible behavior, American businesses are

Demanding socially responsible behavior from international suppliers, particularly in the areas of environmental standards and human rights issues.

The first step in developing a knowledge management system is

Determining what knowledge is most important.

Knowing the importance of employee relations, what is the likely result of a company that does NOT listen to employee grievances or treat employees fairly?

Difficulty in attaining company goals

Which business environment determines whether people believe they can afford to take a financial risk and start a business?

Economic and legal

The way in which a country's resources are utilized to produce goods and services and the way those goods and services are distributed among those who desire to have them depends upon the

Economic system under which the country operates.

The reasons for implementing departmentalization include:

grouping all of those doing the same task together assigning people with the correct knowledge to do each task

Eddie started out with one small print shop. His business has grown so much that he now has two other branches across town. Eddie has found that having three locations has greatly increased his production levels. He also notices that the price he pays for supplies (paper, ink, and packaging materials) has gone down considerably since he can now buy these items in bulk quantities. This exemplifies the principle known as

Economies of scale

Which characteristic of being a leader is exhibited by the leader's willingness to transform the way the company does business so that it becomes more effective and efficient?

Embrace change

The principle of organizational structure where one person is at the top and the other managers are ranked sequentially from the top down is called:

hierarchy

Which of the following is NOT a part of an integrity-based ethics code?

Emphasizes strong penalties for wrongdoers

Which of the following are elements of a typical organization chart

Employees First-line supervisors President

a few years ago, in order to gain market share, blackboard

horizontal merger

A manufacturer made the decision to buy less expensive materials from another supplier which resulted in the reduced quality of its products. As a result, company sales dropped and many retailers refused to carry the product line. This is an example of ______.

how negative impressions of a business can affect its ability to achieve its goals

Limiting the quantity of imports of a product to protect a domestic industry against foreign competition.

import quota

During the past five years, the nation of Andolvia began a massive undertaking: teaching farmers how to successfully grow and harvest peanuts. The government subsidized the building of peanut processing plants, where private businesses are now producing peanut butter and other products of nutritional value. Although the Andolvia government has not completely banned the importation of peanuts, it has placed ________________ on the number of peanut products that the nation can import each year, in order to protect Andolvia's young peanut industry.

import quotas

revenue

imposed solely to generate income

protective

imposed to protect domestic industry from competition

The CPI (consumer price index) measures ________________ and ________________.

inflation and deflation; includes energy and food as part of the market basket of goods and services that it measures

A.J. was a newly hired attorney for Idle Time Gaming, Inc. Even though he reported directly to the president of the company, A.J. noticed that the president always had time to converse with the director of sales, calling on him to get a pulse on legal/regulatory issues that, as the company attorney, A.J. could have probably handled. A.J. also noted that the HR manager's administrative assistant was the go-to person for a number of things that would make life easier at work. A.J. was recognizing the _________________ culture at Idle Time Gaming.

informal organization

Even though he is not a manager, Mr. Bilko is the one to see in the company when there is something you need. He will get it quickly, and can avoid the red tape that often delays action. Mr. Bilko is also the one to see if you need advice or help. Mr. Bilko is an important member of the firm's:

informal structure.

The executive summary section of the business plan contains

information that will capture the attention of bankers and other investors who receive many business plans every day.

A Japanese auto company recognized the quality of air-conditioning systems that a U.S. company in Indiana successfully manufactured for the U.S. auto industry. Rather than build its own, it ______________ the air-conditioning component of its models to the U.S. company, which provided several jobs for skilled tradespersons in that state.

insourced

The first day on the job waiting tables at a popular restaurant, Norah noticed that when one member of the waitstaff was serving a very large party, the other waiters would help carry food to the tables and even check to make sure water glasses were filled. Although these actions were not part of the mandatory waitstaff training, Norah perceived that waitstaff members who were not helping out were not viewed as team players by the majority of employees. Norah was observing an example of the ________ ethics followed at this organization

integrity-based

Designing and making custom-made guitars is an example of which process?

intermittent process

A manufacturer who uses just-in-time inventory management shares information in real time with its supplier. This is an example of transparency between firms using _ technology

internet

When an organization chart is turned upside down with top management placed at the bottom this is usually known as a(n):

inverted organization

An automotive assembly plant in Kentucky purchases several thousand unassembled parts for automobiles and then performs final assembly of the vehicles before delivering them to dealers all over the nation. Purchasing parts several days or weeks before they are assembled would increase the total cash outlay the plant has tied up in inventory at any given time. In order to reduce the expense of large inventories, most assembly plants have successfully adopted __________ inventory systems.

just-in-time

The current trend is to move away from _______ -based ethical initiatives in organizations to _______ -based initiatives that make ethics a part of core organizational values.

legally; cultural

If the employees of San Simeon Company successfully borrowed a large sum of money and purchased the firm from its current owners, we would call this event a ___________.

leveraged buyout

Business arrangement in which one company gives another, permission to manufacture its goods in exchange for a fee.

licensing

At Oldies but Goodies, a store that buys and sells vintage record albums, there is only one general partner, Alexa. She spends all her time running the business and makes all the decisions. Alexa'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 Oldies but Goodies; they, however, share in some of the profits. This is an example of a

limited partnership

In line- and- staff structures, staff managers provide advice and support to _ departments on specialized matters such as finance, engineering, human resources, and the law

line

When it comes to ethical behavior,

many Americans decide what's ethical based upon the situation in which they find themselves.

Four organization designs include: line, line and staff, _, and cross-functional teams

matrix

In a _ organization, project managers are in charge of teams made up of members from several departments

matrix

"We believe in creating loyal customers by providing a superior experience at a great value. We are committed to direct relationships, providing the best products and services based on standards-based technology, and outperforming the competition with value and a superior customer experience." This statement is a part of Dell's:

mission statement.

Jason's mom specifically asked for a CIP cast iron pan for her birthday. As Jason scanned the stock in two department stores, he found ten different brands, none of which were CIP. When he found CIP in a kitchen specialty shop, he was challenged to tell the difference between his mom's choice and the others. In his business class, he learned about ______________, where many sellers may be offering very similar products. Through various means, each seller differentiates his product from the competition.

monopolistic competition

Studies have shown that organizations that employ a diverse set of leaders tend to be _____ profitable. (more/less)

more

The sum of all the federal deficits over time is known as the:

national debt

A visit a store where clerks are uniformly glum, indifferent, or test. This is an organization where no one cares about service quality, an example of the _ impact of organizational culture

negative

Whistleblowers can be helped by protecting them from ______.

negative treatment on the job

Because of technology an organization is no longer self-contained. As a result the modern organization chart would show people in different organizations and indicate how they are _

networked

To understand the formal reporting relationships among people in a company one may consult the company's:

organizational chart

The widely shared values within organization that foster unity and cooperation to achieve common goals is called the:

organizational culture

Cara started a small business a little less than 10 years ago. The business employed several social workers and nurses that visited and cared for persons who had left hospital care, but were not quite ready to be on their own at home. As the CEO of the firm, Cara decided it was time to hire a business operations manager and a marketing manager to handle the details of the business. Which of the following functions of management was Cara primarily performing?

organizing

Regardless of the size of the business, the principles of _ its structure remain the same

organizing

The strategic alliance between Coca-Cola and Nestlé has spanned a period of over 20 years due to the fact that both companies benefit from this arrangement. As a global marketing strategy, an important characteristic of a strategic alliance is _____________

participant companies do not share costs or profits

The formal organization details lines of:

position authority responsibility

Real time is the _ moment or the _ time in which something takes place

present;actual

A firm that makes tables may have one department that cuts the wood, another department that assembles the wood into tables, and a third department that stains the tables. This firm would departmentalize by _

process

In order for the value of goods and services to be counted as part of a nation's gross domestic product, the goods and services must be ___________.

produced within the physical boundaries of a particular nation

Efficiency means _____.

producing items using the least amount of expenses.

An appliance company may have a refrigerator department, a washing machine department, and a dishwasher department. This company is departmentalizing by _

product

A cross-functional team that is working on the development of a new prosthetic device for amputees should include:

product designers amputees who will use it parts suppliers for medical devices

A number of studies have found a direct relationship between social responsibility and _______ as well as a link that exists between employee commitment and customer loyalty.

profitability

Employees expect businesses to ______. (select all that apply)

provide a safe workplace keep them informed of what is happening in their company pay them adequately for their work

importing

purchasing raw materials or products in other nations and bringing in other nations and bringing them into one's own country

when going into a partnership, you should always

put all terms of the partnership into writing in a partnership agreement

Recently, companies have been changing the organization structure to focus more on front-line employees like department store clerks, bank tellers, or cashiers. This focus has been implemented in many organization using an inverted _ structure

pyramid

One of the key advantages of the franchise

receiving management and marketing expertise from the franchise

True or false: A company is benchmarking when comparing its practices, processes, and products against only the best companies in its region

False

True or false: An informal organization system follows the organization chart's lines of authority

False

True or false: Outsourcing is a process used by larger firms, but it has not become a prevalent practice used by small firms

False

True or false: The key to success for companies in a capitalist economy is to remain inflexible during times of change

False

True or false: The minimum number of subordinates a manager can supervise is called span of control

False

The line organization has direct lines of _ that extend from the top managers to employees at the lowest level of the organization

responsibility communication authority

Land pollution

results from the dumping of residential and industrial waste, strip mining, forest fires, and poor forest conservation

Water Pollution

results when the burial of industrial waste leeches into underground water supplies

A firm that is viewed negatively may have a hard time ______. (select all that apply)

retaining employees attracting investors building customer relationships

Charlie Hayes owns his own landscaping business, including all the land on which they grow their plants, and all the equipment. Charlie's son Josh has just graduated from college with an architectural landscaping degree. Charlie hopes to retire in a few years and turn the business over to Josh, and Josh will inherit the business when Charlie dies. This is an example of the ______________ in a capitalist system.

right to private property

in his search for a franchised business that would satisfy his passion

royalty

Entrepreneurs emphasize the importance of believing in your own ideas because in the process of developing those ideas you are likely to hear from skeptics. Characteristically, they also know that success or failure is "on them." These attributes are described as

self-directed and self-nurturing.

exporting

selling and shipping raw materials or products to other nations manufacture products in home country and export them to foreign markets -relative low risk -export-import merchant -document *letter of credit*bill of lading*draft

U.S. companies that operate abroad, particularly those who contract with foreign companies, are now ________ human rights and environmental standards followed by U.S. law.

separating themselves from suppliers who violate

The purpose of an organizational chart is to:

show relationships among people show who is accountable for the completion of specific work show who reports to whom

The You Design, We Build Company makes custom furniture of all kinds. The firm has evolved into a big business due to quality and innovative work. Recently, top management asked company departments to list and evaluate the kinds of socially responsible efforts conducted internally and externally in the business and to list negative occurrences that supervisors observed. Top management is essentially conducting a(n)

social audit.

The benefit of using __________ to communicate a business's CSR efforts to the public is that it allows companies to reach broad and diverse groups directly in a low-cost, efficient way.

social media

You studied for two hours each day, for an entire week, before your first marketing exam. When you turned in the test, you felt confident that your effort would pay off. At the next class meeting, your instructor said she was considering curving the grades because the class average was lower than she had anticipated. All of a sudden, your 98% score did not have the same impact that it did when you first saw it! Now the guy next to you that got an 84% is likely to have an "A" grade too. As you analyze this situation, you realize that it parallels an economic system such as ________________, where even if you work harder than another person, you are likely to realize the same benefit.

socialism

According to Geert Hofstede, who has spent a lifetime studying differences in cultures, the Chinese have a long-term orientation, meaning they are patient savers and are willing to forgo things today, for a better future. Americans typically have a short-term orientation. They prefer more instant gratification and are not as willing to save for the future. This difference in values between the Chinese and Americans is a _____________ attribute that may represent a challenge in future global trade.

sociocultural

1. When GM introduced the Chevy Nova in South America, it was perplexed to find that, despite its best efforts, it wasn't selling many cars. GM finally realized that "nova" in Spanish means "it won't go." This is an example of a(n) _______ force that adversely affected GM in its globalization efforts.

socioculturism

If the owner of a lawn-moving company were to take the division of labor a step further and divide the mowing task into mowing, trimming, and raking this would exemplify job _

specialization

The management function of ___________ includes hiring, motivating and retaining the best people to accomplish the company's objectives.

staffing

Historically entrepreneurs in the U.S.

started many small firms that later became major corporations employing thousands of workers.

Insider trading is the buying or selling of _____ by insiders who possess material that is still not public.

stock

Pharmaceutical giant Eli Lilly partnered with the Belgium-based company Galapagos to develop treatments for osteoporosis. This is an example of

strategic alliance

Miriam Njunge wants to start a small business importing some products from her native Kenya. Before she starts, some good advice to Miriam would be:

talk to others who have been or are in the import business.

Tax on imported goods used by governments to reduce imports and protect domestic industries.

tariff

One solution to the _ or short-term nature of matrix teams is to establish long-lived teams and empower them to work closely with suppliers, customers, and others

temporary

Imagine the following: New sources of energy have become marketable and the industries involved have hired thousands to operate the emergence of new businesses. Construction companies cannot build homes fast enough for workers in the energy industry. Due to increasing salaries in several other industries that partner with energy companies, the demand for everything from food to entertainment to travel has increased. High demand has brought about shortages in some product categories. To help manage the situation in the short term, ___________.

the Fed will likely increase interest rates

The U.S. award that recognizes firms that meet customer needs, produce high-quality products, and have customer satisfaction ratings that are better than those of competitors is known as

the Malcolm Baldrige National Quality Award.

Recently, two nations experienced a trade dispute over copyright issues. Country "A" accused Country "B" of violating international copyright laws. Since both were members of __________, they appealed to this organization to mediate the dispute

the WTO (World Trade Organization)

comparative advantage

the ability of an individual, a firm, or a country to produce a good or service at a lower opportunity cost than competitors

absolute advantage

the ability to produce a specific product more efficiently than any other nation

Gretchen planned to open a cupcake shop in a resort town on the west coast. As she pondered her organizational set-up, she decided she would need four employees to specialize in the creation and production of the cupcakes, and three employees to greet, serve, and sell to customers. One or two of her workers were designated as supervisors. Another preliminary organizational decision that Gretchen will most likely tackle is

the allocation of resources within her operation.

As a strategy for reaching global markets, licensing provides the licencor with several advantages. One advantage is _____________.

the cost of producing and marketing the product in a foreign market is significantly reduced.

Most businesses follow a logical process when performing the planning function. It is important to understand ______________________, before embarking upon creating future long-term goals, objectives, and strategies.

the current situation

Jacinta has high individual moral standards and values but the opportunity still exists for her to engage in misconduct in her company. What key factor would keep Jacinta from behaving unethically?

the ethical behavior of her managers and co-workers

The value of one nation's currency relative to the currencies of other countries is referred to as

the exchange rate.

A brother and sister team, Camilla and Arturo, took over the family's Mexican restaurant business when their father died. Camilla operated one of the three locations, kept the firm's books, and ordered supplies and equipment for all three locations. Arturo operated the other two restaurants. Arturo thought he should get two-thirds of the company profits because he was responsible for the profitability on two out of three locations. Camilla saw it differently because she felt her responsibilities spanned the entire business. What's important for them to remember in their situation is

the fact they both shared unlimited liability, and if one or the other failed to meet their financial commitment, the other partner would be liable for all debts

the resources used to create wealth are collectively referred as

the factors of production

Sovereign wealth funds (SWFs) are a fast-growing form of foreign direct investment. The size of these funds and the fact that they are investments from government coffers of other nations might be a cause for concern. More specifically, some fear __________

the governments who offer these funds may obtain sensitive technologies or gain control of strategic resources

According to your text, ethical decisions in organizations are influenced by which three key factors?

the influence of managers and co-workers the opportunity to engage in misconduct individual moral standards and values

Spending work hours looking at personal email, submitting personal expenses on company expense reports and using the company copier for personal use are all examples of ______.

the misuse of company resources

dumping refers to

the practice of selling products in a foreign country at lower prices than those charged in the producing country.

Managers accustomed to more traditional forms of organizational structures may have difficulty adapting to:

the rapid rate of change in virtual organizations

At Six City Wellness Center, Greg operates a new state-of-the-art MRI scanner that serves approximately 10 patients during his 8-hour shift. Patients are scheduled for various lengths of time, depending on which part(s) of their body requires scanning. The image quality is significantly superior to what it was on previous scanners, but the number of patients served per day remains the same. This situation attests to the fact that ____________.

the service sector has seen improvement in quality of service, but productivity remains about the same

balance of payments

the total flow of money into a country minus the total flow of money out of that country over some period of time -payment by foreign governments -money spent by foreign tourists -aid to foreign governments -imports and exports -all other receipts and payments -investments

Balance of trade

the total value of a nation's exports minus the total value of its imports over some period of time

While unemployment is seen as an economic issue, it carries ethical implications when ______.

the unemployment gap between rich and poor is large

Studies have found that firms have a better chance of generating stronger profits when ______.

there are equal numbers of male and female managers

Although successful entrepreneurs are more tolerant of uncertainty,

they strive to take calculated risks.

When it comes to fairness and honesty, what two things are expected of businesses?

to follow applicable laws and regulations to avoid harming customers, employees, clients or competitors

McDonald's moved from a centralized authority to a more decentralized authority primarily due to _

today's rapidly changing markets, and global differences in consumer tastes

A positive balance of trade; a country's exports exceed its imports.

trade surplus

If the value of all the goods/services that United States exports is greater than the value of all that it imports, then this is referred to as a

trade surplus

The nation of Andulasia exports $50 million worth of products and services and imports $44 million worth of products and services. Andulasia has a(n) _____________.

trade surplus

When the value of its exports is greater than the value of its imports, a country experiences

trade surplus

The pyramid in this image depicts a(n) _ organization

traditional

A key component of ethical communications from companies to consumers is that the communication be ______.

truthful

After 8 years of working for a company that installed underground sprinkling systems for golf courses, Jake was ready to venture into his own business. As he prepared his SWOT analysis, he evaluated where he stood at this time. He was fortunate to have $100,000 financing to get the business under way. He knew of three skilled installers who were willing and interested to work for him, and he was aware that new construction was at an all-time low, with several residential properties being foreclosed. In reviewing his list, you would categorize these events as __________.

two strengths and one threat

Accountants at Business Solutions, Inc. work with state-of-the-art systems that create financial statements every day, but the interpretation and analysis of those statements can take several hours. The accounting department consists of financial, managerial, and tax accountants. One advantage of departmentalizing the accountants is

For efficiency; the employees can coordinate work within the function.

Martin Fittings was a small manufacturing company that made shut-off valves for gas pipe used in home and building construction. Martin purchased the National Gas Pipeline Company, which was Martin Fittings' largest customer. This strategic decision bringing the two companies together is called a

vertical merger

A group of field engineers perform installation and repair on large pieces of equipment that are used in the process of making gasoline at petrochemical plants. Each day, the on-site engineer reviews the __________ to determine which parts of the project are in progress and which have been completed. This bar graph also shows the engineer which equipment must be installed before other parts are started.

Gantt chart

When carbon dioxide collects in the earth's atmosphere, it traps the sun's heat and prevents the earth's surface from cooling. This is referred to as _____ _____.

Global Warming

______ refers to creating a positive association with environmental issues for an unsuitable product, service, or practice.

Greenwashing

Maribeth has first-hand knowledge that her supervisor is engaged in insider trading. At a minimum, this practice goes against company policy and may even be illegal so Maribeth reported her supervisor to the Securities and Exchange Commission. Maribeth is acting as a ______.

whistleblower

Employees who report concerns about a unethical company practices to a government regulatory agency are called ______.

whistleblowers

When a supervisor is responsible for 20 or more workers assembling computers or cleaning movies theaters it is an example of a(n) _ span of control

wide

Fayol's equity principle states that a manager should treat employees and peers:

with respect and justice

Which of these industries is among the fastest growing today?

Health

Jake serves on a committee of employees who were charged with selecting three co-workers to honor at the holiday banquet. One employee whose name was at the top of everybody's list was instrumental in helping another employee who failed to wear his protective headgear to avoid suffering a serious head injury. Although this was a noble act, Jake knew that the hero was frequently negligent about wearing his own headgear. Jake knew that several other employees followed strict company policy every day and always wore their headgear; yet, they were not being acknowledged for their compliance. According to Norman Vincent Peale, which of the following questions should Jake refer to as he proceeds to make an ethical decision?

How does the action I am proposing to take make me feel about myself?

Which question is included as one we must ask when faced with an ethical dilemma?

How will it make me feel about myself?

Which three are outcomes of having effective business ethics programs and organizational ethics initiatives?

Increased customer loyalty Increased profitability for the firm Greater employee satisfaction

What type of ethical code serves to define the organization's guiding values, create an environment that supports ethically sound behavior, and stresses shared accountability?

Integrity-based ethics codes

Which person is engaged in a misuse of company time?

Joel spends an hour or more a day surfing the web and checking his social media sites.

Contractual agreement of 2+ companies for the purpose of executing a specific business undertaking.

Joint Venture

When President Obama was elected, the U.S. economy was in trouble, and had slid into a recession. Consumer spending was low and getting worse. In an effort to stop the decline, President Obama proposed an economic stimulus package which included government spending on roads, bridges, and schools, among other things, and a tax cut that each U.S. worker would see in her or his paycheck. Apparently, President Obama was a proponent of:

Keynesian economic theory

While on a trip to South Africa, Erin was impressed with colorful woven outdoor placemats, floor mats, chair cushions, and umbrellas that local artisans were weaving. Upon returning to the U.S., she was confident that U.S. consumers would be as intrigued by these accessories as she was. Erin decided to explore the possibility of starting an importing business to bring these products to the U.S. Which of the following statements seems to be good advice for Erin?

Learn from others who import goods from abroad, and particularly from Africa

The branch of economics that looks at the operation of a nation's economy as a whole is

Macroeconomics

Which of the following departments could be considered by a company approaching departmentalization by functions

Marketing Production Accounting

Metro Motors was awarded a bid to build an energy-efficient motor for a large government heating and cooling project. The requirements of the project included a timeline of one year to build and deliver the system. In order to provide a quality product and stay within the time requirements, Metro Motors set up a __________ organization whereby employees from various functions of the business would join a team to see this project through, from start to finish. Upon completion, the team would disband and members would return to their respective functional units.

Matrix

The Theory of Social and Economic Organizations was written by which organizational theorist

Max Weber

Which of the following were two organization theorists that emerged during the mass production era

Max Weber Henri Fayol

Ben oversaw the work of six pharmaceutical sales managers in the southeast region of the U.S. Each sales manager managed a team of 8-10 pharmaceutical sales representatives that developed relationships with doctors, clinics, hospital pharmacies and local drug stores. Ben met regularly with four others in his company whose jobs were similar to his position. How would you describe the level of management Ben has achieved?

Middle Management

As a manager for the northeast region, Yeung oversees the work of six pharmaceutical sales representatives. She is responsible for developing plans to help the region meet its strategic objectives as well as rewarding her employees when they meet their sales objectives. What level of management has Yeung achieved?

Middle management

Joe spends an hour or more each day at work checking his Facebook page, Twitter account, and watching YouTube videos, even though it is against company policy to do so. Joe is guilty of which form of misconduct?

Misuse of company time

Profit is best described as

Money earned after expenses and salaries are paid.

When developing and maintaining good stakeholder relationships, companies find that

Most often, they must balance the needs of the stakeholders with the need to make profits.

Which of the following best describes a capitalistic nation?

Most or all of the factors of production and distribution are privately owned and operated for a profit.

Electra Bikes is an American brand with a global presence. Which of the following trade agreements allowed Electra Bikes to expand its business by opening a new market in Canada?

NAFTA

The agreement that created free-trade among the United States, Canada, and Mexico is

NAFTA

There are those who hope that ______ is a stepping-stone to the creation of a Free Trade Area of the Americas. This agreement today is between the United States, Canada, and Mexico

NAFTA

Trilateral treaty among Canada, Mexico and the U.S. that encourages free trade among these countries.

NAFTA

Laws regulating safety in the workplace are enforced by ______.

OSHA

In order to keep its manufacturing costs down, Electra manufactures its bikes in Taiwan because it is cheaper for the company than producing the bikes in the United States. The process of contracting the production of goods to an overseas company is called

OUTSOURCING

Business incubators are usually government-funded facilities intended to

Offer start-up firms low-cost office space and basic business services

What's going on here? As soon as Dewey Cheatum and Howe Motors increase the prices on their SUVs, then so does their only competitor, You Betcha Motors! Their prices are basically the same for similar vehicles, although their advertising says their products are really very different. What kind competition exists here?

Oligopolistic competition

Advantages of __________ franchising include reduced start-up fees and no territory restrictions.

Online

__________ is about converting resources into goods and services. It includes inventory management, quality control, production scheduling, follow-up services, and more.

Operations management

A car company makes four models—a hybrid sport utility, a sports car, a four-door sedan, and a compact car. Employees at the company work on only one type of vehicle, and separate marketing and product development processes are designed for each type of vehicle to better serve customers for each type of vehicle. This company is departmentalized by

Product

Besides environmental groups, unions, and investors, a relatively new type of watchdog organization that reports on corporate social responsibility efforts is

Socially conscious research organizations.

When Amir started his pest control business, he wanted to keep things simple. He liked the idea of being his own boss and the possibility of leaving the business one day to his son. He chose the type of business that was easy to start, allowed him to keep company profits, and not have any special taxes. Amir's financial resources were limited, but so were his concerns; after all, "he was the business." Amir's business is most likely a(n)

Sole proprietorship.

Nellie works as an attorney for a large consulting firm. Nellie's job is to act as an advisor to the firm's consultants, to be sure they do not confront any legal issues when they are working at the various clients' job sites. Nellie's position would be classified as a __________ position

Staff

Ethics, principles, and values

Starbucks offers healthcare benefits to part-time employees and supports coffee growers by offering them fair prices.

Financial and economic viability

Starbucks offers investors a healthy return on investment, including paying dividends.

Compliance with legal and regulatory requirements

Starbucks specifies in its code of conduct that payments made to foreign government officials must be lawful according to the laws of the U.S. and the foreign country.

Within the planning function, a SWOT analysis identifies, in part, a firm's

Strengths and weaknesses

A traditional tool that serves as a way of evaluating a company's current business situation is called the SWOT Analysis. This is an acronym for ___________.

Strengths, Weaknesses, Opportunities, Threats

Which of the following is not a part of the business cycles that occur in economies over time?

Structural unemployment

The ________ curve indicates the relationship between the price of a good and the quantity supplied.

Supply

Walt is a supervisor in a small automotive shop. He spends a lot of his time training some workers while helping others solve some of the problems they have in doing their jobs. He also runs the diagnostic machine. Walt spends time on __________ skills.

Technical

Electrical appliance manufacturers need to be concerned about the kind and availability of electricity in the global marketplace. If a compatibility problem were to exist, it would be the result of a(n) __________ difference.

Technological

Although the business plan has a great amount of detail and requires thoroughness, a well-explained business idea will come to life almost immediately in which part of this document?

The executive summary

Which of the following is a FALSE statement about small business?

The first job for most Americans is unlikely to be in a small business.

A drawback of the informal organization is that:

The grapevine can spread inaccurate rumors very quickly

Adam smith believed that ones self directed gain would eventually create prosperity for many, he called the process

The invisible hand

There are many reasons why small-business owners don't go international. What is not one of those reasons?

The market doesn't have great potential.

There are many reasons why small-business owners don't go international. Which of the following is not one of those reasons?

The market doesn't have great potential.

What role does the media play when it comes to ethical conduct by business?

The media reports on unethical behavior by businesses far more often than businesses with good ethical behavior.

In global trade, the term dumping refers to

The practice of selling products in a foreign country at lower prices than those charged in the producing country.

According to John F. Kennedy, which of the following represent the four basic rights of consumers?

The right to choose The right to be heard The right to safety The right to be informed

Which scenario best represents a company with a strong ethical culture?

The top management at Tom's company clearly communicate to all employees the ethical behavior that is expected of them.

Small businesses often have advantages in international markets. Which best describes one of those advantages?

They can provide individualized customer service as opposed to impersonal corporate bureaucracies.

World Trade Organization (WTO)

This organization was created to provide more trade agreements between countries and solve trade disputes if/when they arise. powerful successor to GATT that incorporates trade in goods, services and ideas MEMBERSHIP -Obliges 149 members to observe GATT -has judicial powers to mediate among members disputing new rules -has more binding authority than GATT

Using government regulations to limit the import of goods and services is called

Trade protectionism

Enterprise zones offer lower tax rates and government assistance to attract private business investment.

True

True or false: A company may have to make organization changes based on outsiders' perceptions, such as that of stock market actors

True

True or false: Learning to create the right corporate culture and work within the informal organization is key to managerial success

True

True or false: Many jobs can be done quickly and well when each person specializes

True

True or false: Most legal issues arise as choices that society deems unethical, irresponsible or unacceptable.

True

True or false: Networking uses technology, such as a company intranet, to link organizations and their suppliers to allow them to work together for a common goal

True

True or false: Perceptions of ethics can differ in different societies.

True

Weber's principles of strict rules and procedures are still known to be very effective for which of the following organizations

United Parcel Service

What two criticisms are levied against businesses regarding unemployment?

Unwillingness to train employees Unfair hiring standards

While cultural differences and bureaucratic paperwork for foreign governments make the prospect of global trade difficult for small businesses, there is one bright spot on the horizon that has brought global trade closer to home. Small businesses can now

Use technology such as PayPal to fulfill orders, which gives them some assurance of payment.

If you owned a small company, and a major competitor stated promoting itself in your area, what information might you look for while monitoring the business environment

Who are your competitor's target clients in the area What new products are customers demanding

For a market to exist, there must be potential buyers

Who have a willingness and the resources to buy.

All of the following are questions to consider in determining whether an action is ethical EXCEPT ______.

Will this activity further my career?

Social responsibility is defined as ______.

a business's obligation to maximize its positive impact and minimize its negative impact on society

multinational enterprise

a firm that operates on a worldwide scale without ties to any specific nation or region, representing the highest level of involvement in international business

Totally owned facilities

a firm's own production and marketing facilities, developed in one or more foreign nations as a direct investment

Country's ability to produce a good or service at a lower cost per unit than any other country can produce it.

absolute advantage

Companies based on the inverted organization structure support front-line personnel with internal and external databases, advanced communication systems, and professional assistance. Naturally , this means front-line people have to be _

better paid better educated better trained

In the past many organizations designed rules and regulations to give managers control over employees. An organization's reliance on these rules is called _

bureaucracy

Max Weber used the word _ to describe a middle manager whose function was to implement top management's orders

bureaucrat

Making your organization more responsive to customers by decentralizing its structure is one way to adapt to _ in the environment

change

According to Fayol, all workers should be able to reach each other quickly and easily through clear _

communication channels

Which ethical issue is being exhibited by a manager that makes decisions which profit him personally rather than profiting the firm and its investors?

conflict of interest

The unity of command principle states that each person should report to only one manager in order to prevent _

confusion

Brad and Jeevan would like to start a new business selling a product new to the U.S. market. Brad and Jeevan have done a considerable amount of research on this product and think it would be successful in the United States. However, they are still concerned about the risk of a new venture, and both would like to avoid losing any personal assets. They should organize their firm as a

corporation

_______ is a complex form of bartering in which several countries may be involved, each trading goods for goods or services for services.

countertrading

In terms of economic systems, the trend has been for:

countries that are mostly capitalist to move toward more socialism.

When a company plans to expand its operations globally, it should be concerned with economic and financial forces. Which of the following is NOT an economic or financial force?

cultural difference

Experience with the _____ in which a business operates is critical to understanding what is ethical or unethical.

culture, cultural, or society

All of the following are reasons for countries to participate in foreign trade

1. no nation can produce all of the products its people want and need. 2. even if a country were self-sufficient, other nations would seek to trade with that country in order to meet the needs of its own people. 3. some nations have resources, but not technological know-how; while others have know-how, but lack resources.

__________ is an advanced procedure where products are created one layer at a time. It is also known as additive manufacturing.

3D printing

A mobile veterinary business, Paws on the Go, Inc., created a mission statement long before it opened its doors for business. The mission statement referred to the unique characteristic of the business: a traveling pet unit whose veterinarians went to the home of the pet owner, rather than the pet owner bringing the pet to the clinic. What other criteria should be considered for the mission statement?

A description of the customers it serves and a statement about its social responsibility to the area where it operates

Which of the following employment statistics about small businesses is true? A. Small businesses create about 15% of all new jobs in the U.S. B. The number of women owning small businesses has remained constant. C. A great majority of American workers find their first jobs with a small business. D. Growth of minority-owned businesses in the U.S. is declining.

A great majority of American workers find their first jobs with a small business.

Identify drawback of a tall organization structure from the following examples

A higher cost to support the many levels of staff High amount of paperwork generated Messages can get distorted through the various levels

Which of the following is not characteristic of a leader?

A leader will always attempt to keep operations from changing.

International franchising is

A successful growth area for both small and large franchises.

Tanzania is the only country in the world where a rare gem called tanzanite can be found. Tanzania has a(n) _______ in the production of tanzanite gems

Absolute Advantage

The controlling function closes the loop for managers. It answers the question: "Did we succeed in what we set out to do?" Which of the following business departments has a very important role in the controlling function?

Accounting department

Americans are often accused of ethnocentricity. This means that

Americans feel their culture is superior to others.

Which of the following is the BEST reason for a business to be managed ethically?

An ethically managed business helps to reduce employee turnover.

Which circumstance is most likely to reduce one's standard of living?

An increase in the cost of some goods such as escalating gasoline prices

For the last several years, the country of Amerensia has been moving from a communist country to a more mixed economic system. Which of the following most likely would not occur in Amerensia?

An increase in the level of government involvement in trade.

When an airline decides to buy new planes and is deciding which company to buy from, it doesn't have a lot of options to choose from. This demonstrates ________.

An oligopoly

Identify the principles of Henri Fayol's book General and Industrial Management from the following list

Authority Division of labor Hierarchy of authority

When decision making is delegated to lower-level managers and employees more familiar with local conditions than top mangers it is called:

decentralized authority

Networking will continue to evolve as digital natives become more and more prevalent in organizations. Why is this considered to be a natural and smooth transition

Because digital natives have grown up with certain technologies used in networking

We refer to the BRIC nations as four global economic powers that will likely be important forces in world trade by 2030. It is predicted that the two nations that will supply the world with most of the world's raw materials are ___________.

Brazil and Russia

What factor has leveled the playing field by making it much more affordable to start a home-based business?

Broadband Internet connections and other technologies

______ is/are principles and standards that determine acceptable conduct in business.

Business ethics

_______ refers to the rules and regulations that govern the conduct of business.

Business law

What type of departmentalization is shown in this example

By product

Why do incubator facilities continue to remain very popular with start-up businesses?

By providing essential services to entrepreneurs, they have a very strong success rate.

A company that makes custom staircases uses computer modeling to ensure that the process used makes the most efficient use of resources and effectively design their products. The company is equipped with __________ technology.

CAD/CAM

Organizations known as ________ have a significant role in the economic recovery. Some start-up businesses have successfully found sources of capital by going through one of these organizations.

CDFIs (Community Development Financial Institutions)

Although bananas are grown in almost one hundred countries worldwide, Ecuador and Costa Rica are among the world's largest banana growers due to their climate. These countries have a(n) _______ in the production of bananas.

COMPARATIVE ADVANTAGE

Proponents of corporate social responsibility (CSR) strongly believe in benevolence; however, they still want their businesses to be profitable. In the long run, they believe

CSR can lead to even more profits.

The global economic trend has been for ________ countries to move toward ________.

Capitalist; socialism

Which of the following would not be used to describe a company with a positive corporate culture?

Closer supervision of employees.

________ economies exist when the government controls what goods and services will be produced and how the economy will grow, while ________ economies exist when the market largely determines what goods and services get produced and how the economy grows.

Command; free-market

For a U.S. or non-European company to export manufactured goods to European countries, which of the following would most likely apply?

Companies that want to do business with the EU must be certified by ISO standards.

forms of direct investment

B2B

All of the following are reasons for countries to participate in foreign trade except

it is just as easy to start a business overseas as it is in the U.S.

Dividing tasks into smaller jobs is called:

job specialization

The business relationship between Electra Bikes and Trek provides Electra with a competitive advantage. This business arrangement would be classified as

joint venture

The owners of a corporation

stockholders

_, or division of labor, begins with determining what work needs to be done, and then dividing up the tasks among the organization

Organizing

What are the steps in entering international markets?

1. identify exportable products 2. identify key foreign markets for the products 3. analyze how to sell in each priority market 4. set export prices and payment terms, methods, and techniques 5. estimate resource requirements and returns 6. establish overseas distribution network

The EU is an example of a trading bloc, or a __________, which has a common external tariff, no internal tariffs, and the coordination of laws to facilitate trade between member countries.

Common market

According to the Harvard Business Review, young people who play online games will feel comfortable working in global teams. Why is this assumption made

These young people have experience working in groups over the Internet

According to John Mackey of Whole Foods, cross-functional self-managed teams work best when:

They are collaborative They are empowered Leadership is shared

If a nation exports $100 million worth of products and services and imports $68 million worth of products and services, then this nation has a(n)

Trade Surplus

International Monetary Fund (IMF)

an international bank with 184 member nations that makes short-term loans to developing countries experiencing balance-of-payments deficits

countertrade

an international barter transaction in which goods and services are exchanged for different goods and services

General Agreement on Tariffs and Trade (GATT)

an international organization of 132 nations dedicated to reducing or eliminating tariffs and other barriers to world trade

Multilateral Development Bank

an internationally supported bank that provides loans to developing countries to help them grow

SCORE is ____________.

an organization affiliated with the Small Business Administration where retired experts volunteer to provide free advice to small businesses that are just getting started

Entrepreneurship is

accepting the risk of starting and running a business.

Identify from the following lists the advantages and disadvantages to decentralized authority:

advantage empowerment of workers adaption to customer wants disadvantage less efficiency complex distribution system

Pam logged onto her Facebook account and noted that Sallie liked two different websites. Since Sallie is a good friend of Pam's and a reliable source of information, Pam checked out these websites and decided to purchase products from one of them. A common strategy for web-based business is _______________.

affiliate marketing

international business

all business activities that involve exchanges across national boundaries

export-import bank of the United States

an independent agency of the U.S. government whose function it is to assist in financing the exports of American firms