BUS-100 Final Exam
Suppose you are writing a letter applying for a job with a company, and you don't know the name or gender of the vice president of human relations to whom you are writing. The best way to deal with this problem is to address the recipient as
"Dear Vice President of Human Relations."
For research purposes, the Small Business Administration (SBA) defines small business as companies with up to ______ employees
500
Which of the following statements is true of ethics?
Actions that are completely legal can still be unethical
______ refers to a negative preconception or prejudice directed toward a specific group
Bias
The economic measure that provides the most information about what is happening to prices of consumer goods is the
CPI
____is a widely accepted social movement that supports a buyer's right to be informed, to be safe, to choose, and to be heard
Consumerism
Which of the following can be considered a business?
Davent, an online shopping portal that offers discounted prices on clothes
During the production era, managers focused mostly on customer satisfaction and not on production efficiency.
False
The amount of input divided by the amount of output equals productivity.
False
The value of all natural resources tends to rise with low demand, high supply, or both.
False
n the context of federal debt, if spending is lower than revenue, the government incurs a budget deficit.
False
Sal is thinking about starting a small business and is trying to access the potential opportunities and threats associated with a new start-up. She's talked with friends and associates about her plans, and several have offered her opinions and advice. The comments of four friends are summarized below. Which of these statements would probably be the most helpful to Sal?
Find a market segment that you can profitably serve but which is too small to attract larger companies
____________ refers to government efforts to influence the economy through taxation and spending decisions designed to encourage growth, boost employment, and curb inflation
Fiscal policy
Which of the following is a duty of a socially responsible organization toward its customers?
Following laws that prevent anticompetitive behavior such as predatory pricing
Which of the following is NOT a significant drawback of getting into business by entering into a franchise arrangement?
Franchising is generally considered to be the riskiest option for starting a business
____ often undermine(s) the author's credibility and distract(s) the reader from the intended written message
Grammatical errors
________ measures the total value of all goods and services produced within a nation's borders over a given period of time.
Gross domestic product
Katy wants to improve her business writing skills and is looking for a way to determine the appropriate tone for her messages. Which of the following suggestions represents the best advice?
Imagine you are speaking to the recipient of the message, and let your writing style flow like a natural conversation
____ means that prices on average are rising
Inflation
In the context of factors of production, which of the following is a natural resource?
Land
When a business brings in less money than it needs to cover expenses, it incurs a___
Loss
______are small segments within a market that can offer profit potential to entrepreneurs who know how to serve them.
Market niches
___ refers to actions that shape the economy by influencing interest rates and the supply of money.
Monetary policy
A key difference between S Corporations and C Corporations is that
S corporations may have no more than 100 shareholders who must all be citizens or permanent residents of the United States, while C corporations do not have these restrictions on ownership
The government of Puritania has begun a program to restructure of the economy, with a goal of moving toward a more market-oriented system. Which of the following is least likely to occur as the result of this restructuring?
Slower rates of economic growth and lower standards of living for the majority of citizens
Sheila loves taking care of animals and has thought about starting her own pet grooming business. However, she doesn't know much about the growth potential for this type of business or the amount of competition she would face. She also wants to find out if there are any government regulations she would need to deal with. She should be able to find answers to many of her questions by contacting the
Small Business Administration
________ are local offices affiliated with the Small Business Administration that provide comprehensive management assistance to current and prospective small business owners.
Small Business Development Centers
Which of the following dimensions of a business environment is specifically highlighted when stock markets lose a major portion of their value and when huge, venerable institutions collapse financially?
The economic environment
Consider the following sentences: 1.The baseball player caught the ball in midair. 2. The ball was caught in midair.
The first sentence is in the active voice; the second sentence is in the passive voice
Which of the following dimensions of a business environment embodies the values, attitudes, customs, and beliefs shared by groups of people?
The social environment
Which of the following is a characteristic of entrepreneurs?
They risk their time, money, and other resources to start and manage their business
Almost everyone has experienced a conversation where someone has pleaded, "That's not what I meant!"
This is an indication that a communication barrier prevented the recipient from understanding the messenger
Capital, one of the factors of production, includes machines, tools, buildings, information, and technology.
True
Socialist economies tend to have high taxes, which are designed to distribute wealth more evenly through society.
True
The consumer market basket of goods and services, in which the consumer price index (CPI) measures the change in weighted-average price over time, is created by the U.S. Bureau of Labor Statistics
True
_____ are companies that invest in start-up businesses with high growth potential in exchange for an ownership stake
Venture capital firms
Cal is thinking about starting a small business and is trying to access the potential opportunities and threats associated with a new start-up. He's talked with friends and associates about his plans, and several have offered him opinions and advice. The comments of four friends are summarized below. Which of these statements would probably be the most helpful to Cal?
You are likely to face some lean months at first, so manage your money carefully. Avoid the temptation to make splashy purchases
High taxation, excess regulation, and limited choices in a business environment are likely to result in:
a decrease in entrepreneurial activities
In a business plan, a commercial lender would expect to find
a description of the business, competitive analysis, operating procedures, and financial data
All of the following factors are reasons why people choose to pursue entrepreneurship EXCEPT
a stable income
Jordon, a senior executive at a marketing firm, used to regularly meet international clients to discuss future projects. After one of his recent meetings went wrong, Jordan, in a fit of rage, threw a paper weight at his junior associate. The firm's management immediately terminated Jordan for this act. In the context of business ethics, Jordon was guilty of _____ in this scenario
an ethical lapse
Stockholders in a corporation elect the ________ to oversee the operation of the company and ensure that their interests are protected
board of directors
According to studies reported in the Wall Street Journal's Career Journal, during face-to-face communication, the majority of meaning comes from
body language, including facial expressions and posture
A(n) ____________ is a formal document that describes a business concept and outlines the core business objectives while detailing the strategies and timelines for achieving those objectives
business plan
In the context of factors of production, the synthetic resources that a business needs to produce goods or services are referred to as___
capital
A college has contracted a construction company to build a bookstore for its new campus. The heavy machinery and equipment used by the contractor in the construction process are __
capital resources
The economic system of the United States is called _
capitalism
The Consumer Price Index (CPI) measures the
change in weighted average price over time in a "market basket" of goods and services bought by the typical consumer.
Companies use a variety ways—such as letters, memos, e-mails, voice mails, and videoconferences—to send information to employees, stakeholders, and stockholders. These choices represent communication
channels
Natasha is very unhappy with conditions in her country. She has very little economic or political freedom. Virtually all productive enterprises are owned by the government, and they seem to be run very inefficiently. The result is frequent shortages and surpluses of goods and services. These conditions suggest that Natasha's country relies on a _________________ economic system.
communist
Active listening means the listener
completely focuses on the speaker during the delivery of the message.
In 1988, Philip Morris, the leading cigarette manufacturer in the United States, merged with Kraft, Inc., the maker of several leading food brands, such as Miracle Whip, Velveeta, and Maxwell House. This combination would be classified as a _________ merger
conglomerate
Trexlex, a sports retailer, employs Olympic hopefuls in its stores through the Olympic Job Opportunities Program. It offers athletes full-time pay and benefits for a flexible 20-hour workweek to accommodate their training schedules. In the context of a business's responsibility toward the community, this act by Trexlex exemplifies ____
corporate responsibility
As an artificial person, a(n) ______________ can legally engage in almost any business activity a natural person can, including own property, enter into binding contracts, and initiate legal actions.
corporation
Dave Malloy is a marketing director for the Redding Company. His recent trip to a developing Asian country got off to an awkward start when his attempt to greet his host with a hearty handshake was not well-received. Dave's experience is an example of a _______________ that can undermine effective communications
cultural barrier
Which of the following communication channels has the lowest degree of channel richness?
Sole proprietorships offer all of the following advantages EXCEPT
ease of raising financial resources needed for growth
The management of a steel manufacturing company decides to set up a new plant in a rural area. However, this would create waste management issues for the company. On the other hand, the company would incur higher costs if it sets up the plant in another area. The management thus finds itself in a situation where both the actions will have a negative consequence. This scenario exemplifies a(n) __
ethical dilemma
Justin Rolando decided to operate his own Web design firm and is leaning toward organizing it as a sole proprietorship. One factor Justin should realize is that by choosing this form of business he would be
exposing himself to unlimited personal liability for the company's debts
The party in a franchise relationship that pays for the right to use resources supplied by another business entity is known as the
franchisee
In a _________, all partners have the right to actively participate in the management of the firm and to share in any profits or losses incurred by the business
general partnership
Limited partners
have limited liability for the debts of their company as long as they do not actively participate in management
Microeconomic analysis would be best suited for:
helping a firm determine the best pricing strategy for its products.
One reason a firm would consider a ____________ merger would be to increase size and market power in its industry
horizontal
A coal mining company has employed around 250 miners who work 8-hour shifts every day. In the context of factors of production, the miners can be classified as _____.
human resources
Jonna is planning a presentation and has decided to organize it around six key ideas. This approach
includes too many ideas, since most people can't absorb more than two to four main points in a single presentation
The U.S. government uses the consumer price index (CPI) and the producer price index (PPI) to evaluate:
inflation.
People with a(n) __________ have a strong sense of personal responsibility for what happens in their lives
internal locus of control
In business communications, conciseness
is desirable, as long as it isn't at the expense of completeness.
A key advantage of a sole proprietorship is that
it is easy and inexpensive to form this type of business
During a presentation, it is usually a good idea to summarize the key points
just before launching into the body of the presentation and then once again during the closing segment of the presentation
Gander, an apparel company, is known to be a profit-hungry company. It lands in a controversy when it comes to light that the company pays almost nonliving wages to the workers in its manufacturing subsidiaries based in developing countries. In the context of business behavior, Gander's business conduct is:
legal and unethical
Promoting high-calorie/low-nutrient foods with inadequate information about the risks is a(n) _____ practice
legal but unethical
For the franchisee, the advantages of a franchise arrangement often include
less risk and easier access to funding
The _________is a relatively new and increasingly popular form of business ownership that is like a corporation in some ways and like a partnership in others
limited liability company
All of the following are strategies to improve your listening skills EXCEPT
making sure that you are as comfortable as possible before you begin listening.
Today the economies of virtually all nations would be classified as
mixed economies
The Federal Reserve is primarily responsible for conducting:
monetary policy.
In ______________ many firms compete by selling differentiated products
monopolistic competition
In communication, the term______________ refers to any interference that causes the message received by the audience to be different from the sender's intended message
noise
For individuals starting a small business, writing a business plan is
not always necessary, but it is essential if the company needs to obtain external financing
In the broadest sense, economics studies the choices that
people, governments, and companies make in allocating resources.
Ginny is almost 30 years old but looks quite a bit younger. When she participates in discussions with business people who don't know her well, she often finds they don't pay much attention to her ideas because they assume she is immature and inexperienced. This suggests that Ginny faces a(n) _______________ barrier that undermines her message when she speaks
perceptual
Peter, the CEO of a multinational company, has a deep understanding of other people's needs and behaviors. He easily relates to another's situation, feelings, and motives—all qualities that strongly predict a high level of ethical leadership. Given this information, Peter most likely possesses ____
personal empathy
The majority of new small business owners rely heavily on ____________ to finance their start-ups
personal sources, including family, friends, and credit cards
Spacein, a hard drive manufacturer, is accused of deliberately creating flaws in its product design. News reports hint that the company has been doing this for years to reduce the time between consumer repurchases. In the context of social responsibility, Spacein has been accused of ____
planned obsolescence
The proper choice of a communication channel depends mainly on
preferences of the audience
Janet reasons, "It is wrong to lie. However, it is okay to overstate my expense account on my recent business trip because I need the money, and my company has not given me a raise in the past year." In this scenario, Janet is an employee who views ethics as __
relative
The majority of businesses today are formed as
sole proprietorships
In the context of social responsibility,__________include employees and investors who have a personal interest in the performance and actions of an organization
stakeholders
The trade union members of a wool manufacturing company are the company's __
stakeholders
Manufacturing jobs have migrated overseas due to increased productivity and low wages of workers in other countries. This contributes to ______________ unemployment for American workers in the manufacturing sector
structural
In the context of a business environment, computers, telecommunications, and other digital tools are considered to be part of the __
technological environment
The richness of a communication channel refers to
the amount of verbal and nonverbal information it can convey to recipients.
An advantage of the C corporation as a form of ownership is/are
the limited liability of the owners
A look at survival rates for small businesses over their first 10 years shows that
they tend to drop more rapidly during the first five years, but then they fall more slowly
Value is the relationship between the price of a good or a service and the benefits that it offers its customers.
true
Sole proprietors have _________________ for the debts of the of their companies
unlimited liability
A key to dynamic delivery is to
vary your voice, expressions, and body language
Firms that want to improve the integration of production activities or increase their control over the supply of inputs would be likely to consider a __________ merger
vertical
