BUS 101 Mid Term

My Sweet Baby makes $2 million in total revenue in its first year of operation. The company's total expenses, including taxes, are $1 million. What is My Sweet Baby's net income?

$1,000,000

If the owners' equity in Sarah's Solar Panels is $100,000 and its liabilities are $50,000, the assets of this company amount to

$150,000.

If a member bank of the Federal Deposit Insurance Corporation fails, its depositors can recover all of their funds up to

$250,000.

How do recessions and economic downturns impact people's spending habits?

People save rather than spend.

The product-development team at Bernard's Toys is tasked with determining what toys children want before designing new products and accessories. To determine what customers want, the team would engage in

marketing research.

Money serves three important functions: as a medium of exchange, a ________, and a store of value.

measure of value

Hector, a manager for a fulfillment center, is in the process of recruiting new employees. Hector creates a detailed schedule for training new employees over a period of four weeks. This is most likely to be found in a(n) ________ plan.

operational

Alexa is interviewing with Google. During her interview, she asks the hiring manager about the firm's shared values, beliefs, traditions, philosophies, rules, and role models for behavior. Alexa is inquiring about Google's

organizational culture.

Rissa reviews her flower company's assets and liabilities. She considers the total value of her assets and subtracts the liabilities. Rissa calculates that the remainder would be $27,000. In this case, the amount of $27,000 represents the

owners' equity.

Beth, a manager for an e-commerce shoe company, calls a meeting with her employees, Carmen and Julio. Beth shares that the company has decided to introduce children's footwear to the product lineup and invites Carmen and Julio to provide input and feedback on the decision. This is an example of ________ decision making.

participative

________ skills are the ability to deal with people both inside and outside an organization.

Human relations

What is an advantage of self-directed work teams?

They have the flexibility to change rapidly to meet the competition.

Which of the following statements is true of commercial certificates of deposit?

They may be traded prior to maturity.

Which of these basic questions will be answered by a well-developed mission statement?

What is our operating philosophy?

Which of the following products is MOST likely to be manufactured through the process of modular design?

automobiles

Which leadership style would most likely produce authentic leadership?

democratic

At a gluten-free snack company, the vice president of sales regularly communications with the vice president of marketing to discuss promotions. Any related communication between them will be ________ communication.

horizontal

Nom Nom is one of the best restaurants in town because of its talented chefs, well-trained staff, and unmatched customer service. The competitive advantage of Nom Nom is due to its ________ resources.

human

For an office supply manufacturing company, labor, money, and energy are examples of

inputs.

Razor's Edge Electronics calls an organization, seeking protection against financial losses from risks such as accident, fire, and theft in exchange for a premium. The organization Razor's Edge Electronics called is a(n)

insurance company.

Worldwide Airlines scheduled December flights based on last year's travel data. However, when December arrived, Worldwide Airlines cut 1,200 flights. This demonstrates that

it can be extremely difficult for service providers to accurately estimate the demand for their services.

To facilitate collection, some companies have customers send their payments to a ________, which is simply an address for receiving payments.

lockbox

A company's heavy machinery, equipment, and furniture are examples of

long-term (fixed) assets.

Keerthi is responsible for planning and leading the activities of the aluminum company she works for. She leads employees to work toward achieving organizational goals. In this scenario, Keerthi can be regarded as one of the ________ of the company.

managers

Casey is responsible for planning, pricing, and promoting products at a consumer electronic goods company. He is also responsible for making them available to customers through distribution. Casey is a(n) ________ manager.

marketing

Post & Package organizes departments into larger groups on the basis of geography. Employees like the ________ structure because it permits delegation of decision-making authority.

multidivisional

Janeena, Allie, and Ricky are salespeople for a pharmaceutical company. They are individually accountable for their work and results but have the same goal as the organization—to increase sales. These salespeople are an example of a

work group.

A business's major role is to

satisfy customer needs.

Anish is an employee of a new company. As such, Anish is a

stakeholder

The matrix structure

superimposes project-based departments onto function-based departments.

Which of the following statements is TRUE of socialism?

The government owns and operates basic industries.

Which of the following statements is true of credit cards?

The institution that issues the credit card guarantees payment of a credit charge to merchants.

The recessionary period that began in February 2020 was caused by the

COVID-19 (coronavirus) pandemic.

Dan tells his employees what to do, motivating and leading them to achieve organizational goals. This refers to

Directing.

________ is a system of recording and classifying business transactions in separate accounts in order to maintain the balance of the accounting equation.

Double-entry bookkeeping

________ is a series of quality assurance standards designed to ensure consistent product quality under many conditions.

ISO 9000

Floating-rate bonds are

bonds with interest rates that change with current interest rates.

Unsecured bonds, which are not backed by collateral, are termed

debentures.

Joseph, Tiana, and Mei work on a team that does accounting that is fit for legal review. Together they analyze financial documents for fraudulent entries or financial misconduct. Joseph, Tiana, and Mei are practicing

forensic accounting.

Courtney, a manager at a magazine publisher, believes employees should be able to do their work without much interference. She sets performance standards for her team and allows them to find their own ways to meet the standards. Courtney can be regarded as a(n) ________ leader.

free-rein

A cleaning supply company that manufactures and markets eco-friendly cleaning solutions has two divisions—one in North America and one in Europe. Both divisions cater to the same type of clientele. However, this method of organizing jobs has helped the company be more efficient and responsive to local competition. Which of the following types of departmentalization is the company using?

geographical

Government-granted monopolies are likely to have prices determined by

government regulation.

Sweetgreen, a salad restaurant chain, used the phrase "Nothing from inside Sweetgreen goes to the landfill" on in-store signs for about 10 years. Later, it discovered that the statement was not entirely true. This deceptive behavior could be considered an example of

greenwashing

Adele takes out a $25,000 loan from the bank with 3% interest. The $25,000 represents the

principal.

The relationship between price and the quantity of products a company is willing to sell can be shown graphically with a(n) ________ curve.

supply

In an effort to reduce global carbon emissions, many companies are using or looking to use

alternative energy.

The accounting team at Grey Apparel prepares a summary of the company's financial information, products, and growth plans for Grey Apparel's owners and potential investors. This document, which is produced once a year, is the

annual report.

Which of the following is true of communist economies?

appear to be efficient and equitable on paper

Mei lives in a country where she is free to keep profits from her business and use them as she wishes, within legal limits. What type of economy is this?

capitalist

In the context of accounting, CMA stands for

certified management accountant.

Natalie is a private accountant for a government agency and has some managerial responsibility. After rigorous examination, she was certified by the Institute of Management Accountants. Natalie is most likely to be a(n)

certified management accountant.

Amy, a supply chain manager, makes a decision that leads to some personal financial gains, while the company incurs financial losses. What type of ethical issue is depicted in this scenario?

conflict of interest

When CVS Pharmacy decided to no longer sell tobacco products in its stores because it believed it was contradictory to market itself as a health care services business while still selling a dangerous product, CVS was demonstrating

corporate citizenship.

The amount of money a firm spent to buy or produce the products it sold during the period to which the income statement applies is known as the

cost of goods sold.

Potential investors study the financial statements in a company's annual report to

determine whether the returns from the firm compare favorably with other similar companies.

The ________ rate is the rate of interest the Federal Reserve Board charges to loan money to any banking institution to meet reserve requirements.

discount

After receiving hundreds of complaints about low wages, the owner of a national restaurant chain decides to increase the base salary for hourly workers. This is an example of

employee relations.

Socialist economies profess egalitarianism which refers to

equal distribution of income and social services.

Certification provides a public accountant with which of these rights?

express, officially, unbiased opinion about the accuracy of a firm's financial statements

A new fitness company called Jump Athletics receives a trademark for its brand name. The trademark received by Jump Athletics is a

fixed asset.

Becky and Carl work for a marketing firm. The two accountants discuss the organization's financial performance. Carl asks Becky, "What's the bottom line?" Becky reviews a financial report that shows the firm's profitability over the last quarter. The document Becky reviews is called the

income statement.

Dexter is an accountant who works at Tech Plex. As part of his management responsibilities, Dexter uses Tech Plex's accounting statements in planning and directing the organization's activities. This is called

managerial accounting.

Theo's responsibilities include all the activities designed to provide goods and services that satisfy consumers' needs and wants. What major activity of business is Theo responsible for?

marketing

The United States' economic system is most closely connected to

modified capitalism.

The advantage of investing in a(n) ________ is that it invests in hundreds of securities at any one time, minimizing the risks of any single security that does not do well.

mutual fund

Maya's company invests in land, forests, minerals, and water. These are examples of

natural resources

Adam's co-worker calls him a word that he considers to be offensive. He reports it to HR but is told the word might be normal in the co-worker's first language. The alleged abusive behavior in this scenario is difficult to assess and manage because

of diversity in culture and lifestyle.

The American economy is a(n) ________ economy, or an economy in which economic activities occur between the country and the international community.

open

The four basic tools, which the Federal Reserve Board uses to fine-tune money growth, are reserve requirements, discount rates, credit controls, and

open market operations.

In the context of managerial accounting, wages, material costs, and taxes are examples of

operating expenses.

Home Depot firmly believes that its objectives should not be limited to earning profits. The company supports its local communities through donations, employee giving, fundraising, and other activities. What stage of social responsibility is Home Depot fulfilling?

philanthropic

Business ethics is defined as

principles and standards that determine acceptable conduct in business.

Which of the following statements is TRUE of the levels of management in an organization?

Middle managers' responsibility is more narrowly focused than that of top managers.

_________ are the only long-term funds that a company can generate internally.

Retained earnings

Which of the following is true of commercial paper?

Sales of commercial paper are restricted to only the largest and most financially stable companies.

Which of the following is one of the reasons why studying business is important?

Studying business can help you develop skills and acquire knowledge to prepare for your future career.

How do work teams differ from working groups?

Teams have shared leadership roles.

Lightning Motors purchased electric car batteries worth $75,000 on credit. On the balance sheet, this purchase will be shown as a(n)

account payable.

A(n) ________ manager does not specialize in one particular function but manages an entire business or a major segment of a business.

administrative

In the context of characteristics of money, the principle of stability

allows people to postpone purchases without fear that money will decline in value.

The capital budget of a company is the

amount of money accounted for investment in long-term assets.

Roy works at a company that specializes in wireless headphones. He is a valuable employee because he is very good at finding solutions in complex situations and taking appropriate action. Roy has strong ________ skills.

analytical

Nirav is a manager at Healthy Water and is faced with the declining sales of the company's vitamin-infused water. After a thorough examination of the situation, he comes up with several courses of action to boost sales: introduce new flavors, improve the packaging, offer price discounts, or develop new products. He is aware that each has its advantages and disadvantages. Identify the step of decision making in which Nirav is involved.

analyzing options

Surbhi is the president of an online retailer of pet food and other pet-related products. She makes all the decisions and expects employees to comply with them. Surbhi is a(n) ________ leader.

autocratic

Which of the following products is most likely to be manufactured through the process of standardization?

ballpoint pens

Evelyn's company is an up and coming project management software developer. It is Evelyn's job to measure and evaluate the quality of her company's project management software compared to the software developed by the leading company in the industry. What process is Evelyn performing?

benchmarking

Much long-term debt takes the form of _________, which are debt instruments that larger companies sell to raise long-term funds.

bonds

How can ethical behavior be improved in business?

by establishing professional codes of ethics

Phoebe is on the city council. She emails Citywide Electric, a local electric plant, requesting to know the maximum number of kilowatt-hours that the plant can produce without causing a power outage. The number Phoebe wants to know refers to

capacity.

Amanda opens a savings account that guarantees her a set interest rate over the next five years as long as the funds are not withdrawn before the end of the five-year period. If she wants to pull the money out early, she will face a substantial penalty. Amanda's account is an example of a

certificate of deposit (CD).

Sergio purchased a new vehicle with a secured loan from the bank. If Sergio fails to pay back the loan, the bank will claim the car. In this scenario, the car represents

collateral

What are considered the largest and oldest of all financial institutions?

commercial banks

A customer orders customized wooden letters online from CNC Designs. The customer selects the letters they want to be printed, the color of the letters, and the size of the letters. When. CNC Designs receives the customer's order, specialized automated systems at the company's assembly plant are employed to guide and control the transformation processes. This is an example of

computer-assisted manufacturing.

Lloyd, a manager for a pharmaceutical company, is responsible for preparing for potential disasters such as product tampering. What type of planning is Lloyd engaging in?

contingency

Widgets & Such, a company that makes fidget spinners, has manufacturing units with workers positioned along an assembly line. Each employee works on a particular part of the assembly process of each spinner as it moves on the assembly line from one worker to the next. Widgets & Such is a(n) ________ organization.

continuous manufacturing

Kyla schedules a meeting with her employee, Amanda. During the meeting, Kyla compares Amanda's present performance with the organization's standards. This is associated with the management function of

controlling.

The Fed can determine how large a down payment individuals and businesses must make on credit purchases of expensive items such as automobiles, and how much time they have to finish paying for the purchases. Which of the four basic tools the Federal Reserve Board uses to fine-tune money growth does this exemplify?

credit controls

Dev has a share account and a share draft account at a bank owned and controlled by the corporation for which Dev works. He and the other bank members are allowed to vote for the bank's directors. What type of financial institution is Dev using?

credit union

In the Program Evaluation and Review Technique (PERT), the ________ determines the minimum amount of time in which a process can be completed.

critical path

Kel starts a new blog and wants to create business cards with his name, blog logo, email, and website address. He goes to Staples to order the business cards. The manufacturing process MOST likely to be used is

customization.

Nia reviews her company's expenses. She notices the $200,000 cost of a tractor the company purchased has been spread out over two years, which is the total number of accounting periods in which the tractor is expected to be used. This special type of expense is known as

depreciation.

Angelica, a manager at a company that sells collectible baby dolls, discovers employee performance has dropped. She needs to come up with a course of action that will boost employee productivity. She conducts employee surveys and holds discussions with other managers to create a list of possible courses of action for improving employee productivity. In this scenario, Angelica is ________ as a part of the decision-making process.

developing options

A manager from the finance department communicates with a lower level manager from the marketing department. This is an example of ________ communication.

diagonal

When the dividend is divided by the price the result is the

dividend yield.

Critics of supply and demand say the system

does not distribute resources equally.

At a fulfillment warehouse, the senior supply chain manager assigns a task to a lower level manager. The pattern of formal communication illustrated in this scenario is ________ communication.

downward

Managers should always encourage ________, even if it is negative. If this is not provided, then communication will be ineffective and can drag down overall performance.

feedback

Alvin is responsible for implementing the plans established by middle management and directing workers' daily performance on the job. Alvin is a

first-line manager.

Labyrinth Custom Builds is hired to build the world's largest bridge. Which of the following facility layouts is Labyrinth Custom Builds likely to use to construct the bridge?

fixed-position layout

Beta Inc. has an assembly line that can adapt to different versions of similar operations. With instructions from a computer, one machine can be programmed to carry out several different versions of a task instead of shutting down the production line. Beta Inc. uses

flexible manufacturing.

The Federal Depository Insurance Corporation was established in 1933 to

help stop bank failures throughout the United States.

The prime rate is the

interest rate that commercial banks charge their best customers for short-term loans.

Kristi & Parker is a financial conglomerate that provides many different kinds of services. Kristi & Parker underwrites new issues of securities for corporations, states, and municipalities that need to raise money in the capital markets. Kristi & Parker is a(n)

investment banker.

Miguel is the inventory-control manager at an electric skateboard company. He places an order for bearings and mounting hardware based on the firm's daily needs rather than procuring massive quantities once a month because the company has limited storage space. Which of the following approaches to inventory control has Miguel implemented in this scenario?

just-in-time inventory management

Squeeze Inc., a company that makes and sells condiments, needs a loan so it can put more resources toward research and development. The company makes an arrangement with the bank to secure the funds needed. The bank agrees to lend funds to Squeeze Inc. as needed with a preset limit of $1 million. In this scenario, the type of funding obtained by Squeeze Inc. can be regarded as a

line of credit.

Manufacturers and service providers are similar in that both forms of business

make design and operating decisions.

The top management of a company is most likely to be involved in

making decisions about moving into foreign markets.

Yolanda is the manager at a company that makes industrial printers. She invites her team to a meeting to specifically discuss ________, the activities and processes used in making these printers.

manufacturing

A tall organization typically has

many layers of management.

The accounting team at a construction company notice that cash is coming in faster than it is needed to pay the bills. The department decides it would be best to invest this extra cash for the next month until it is needed. Temporary investments of cash such as this are known as

marketable securities.

Sean works for an aerospace company. He is assigned to a temporary project team to develop a new rocket. The team brings together specialists from a variety of areas to work together on this project. Sean is responsible to both a functional manager and a project manager. What form of organizational structure does this describe?

matrix

Ultimate Storage Solutions creates clear plastic drawer organizer containers in a variety of dimensions. They are self-contained units that can be mixed and matched for a custom design. This type of product exemplifies

modular design.

What is the final step in the decision-making process?

monitoring the consequences of a decision

The products of service organizations tend to be ________ than those of their manufacturing counterparts.

more customized

The individual retirement account (IRA) is a type of

pension fund.

Alejandro is an internal auditor employed by Jameson & Crowe, a large technology corporation, to prepare and analyze its financial statements. Based on this information, Alejandro is a(n)

private accountant.

Mega Stitch, a graphic tee company, has a stitching department, a screen-printing department, and a design department. The company is using a ________ layout to organize its facility.

process

Competition fosters efficiency and low prices because

producers have to offer the best products at the most reasonable price.

A multinational consumer goods corporation has separate units for baby care, fabric care, family care, and feminine care. Thus, the company is following ________ departmentalization to organize jobs.

product

Gretta's Hard Candy is in the process of making candy canes for the holiday season. They use a facility layout in which each worker remains in one location, and the candy canes move down a conveyor belt from one worker to the next. Each worker has a simple task to perform before the candy cane moves to the next employee. Gretta's Hard Candy is using a ________ layout.

product

An assembly line is most closely associated with which facility layout?

product layout

Neema works at a premium pet food company. She develops and administers the activities involved in transforming resources, such as people and raw materials, into goods ready for the marketplace. Neema is a(n) ________ manager.

production and operations

A business tries to earn a profit by providing ________, goods or services with both tangible and intangible characteristics that provide satisfaction and benefits.

products

Which of the following is an asset utilization ratio?

receivables turnover

The Credit CARD (Card Accountability Responsibility and Disclosure) Act of 2009 was passed to

regulate the practices of credit card companies.

A difference between business ethics and social responsibility is that business ethics

relates to an individual's or a work group's decisions that society evaluates, whereas social responsibility concerns the impact of an entire business's activities on society.

A toy manufacturer is assessing potential investment projects and their estimated risk. Which of the following investment projects would create the least amount of risk for the company?

repairing old machinery

Carson works at a large rug manufacturer. He is charged with turning a product idea for a new rug into a workable design that can be economically produced. Carson works in the ________ department

research and development

Wells Fargo bank was exposed when employees opened fake accounts for customers without their knowledge in order to meet lofty sales goals and earn bonuses. As demonstrated in this case, one of the principal causes of unethical behavior in organizations is

rewards for overly aggressive business objectives.

A pharmacist stocks only one particular brand of acetaminophen, a popular pain-relief drug. Even if his customers prefer other popular brands selling the same drug, he insists they buy this brand. This is a violation of consumers'

right to choose.

Stock exchanges where investors trade their securities are part of the ________ market.

secondary

Companies performing banking functions that are not regulated by banking regulators are practicing ________ banking.

shadow

U.S. Treasury bills are

short-term debt obligations the U.S. government sells to raise money.

Paper Supply Corp, manufactures paper stationary products such as paper and envelopes. To increase employee productivity, the company decides to assign each employee a single task. For example, one worker feed the paper machine, one quality checks the envelopes, and one packages finished envelopes into a box. Which of the following concepts is illustrated in this scenario?

specialization

Thomas wants to become a certified public accountant (CPA), so he must be certified by the ________ in which he practices to provide accounting services.

state

Alpha Manufacturing plans to purchase multiple smaller manufacturers over the next five years. The company is developing a plan to purchase the companies with a staggered schedule. Alpha Manufacturing is developing a(n)

strategic plan.

An organization's ________ develops when managers assign work tasks and activities to specific individuals or work groups and coordinate the activities required to reach objectives.

structure

Sloane analyzes the quantity of goods or services that businesses are willing to sell at different prices at specific times. Sloane is focusing on

supply.

When Giant Soda needed to develop a new mission statement and list of brand values after a merger with Bubbly Drinks Corp., a temporary, cross-functional team was created to accomplish the task. After three months, the team made suggestions and initiated necessary changes. Such a team is referred to as a

task force.

Jordan is the website manager in the information technology (IT) department at an e-commerce company. Jordan has specialized knowledge and training related to the e-commerce platform the company uses. He is able to train IT employees, answer questions, provide guidance, and solve problems. Jordan has strong ________ skills.

technical

Which of the following legislative acts made accounting firms separate their consulting and auditing businesses?

the Sarbanes-Oxley Act

Operations management refers to

the development and administration of the activities involved in transforming resources into goods and services.

The purchasing manager for Lips & Lashes, a makeup distributor, purchases 1,000 lipsticks from a cosmetics manufacturer, Beauty Labs. Because the two companies have a good relationship, Beauty Labs extends net 30 terms to Lips & Lashes, meaning the company will have 30 days to make full payment. This is an example of

trade credit.

Rosa is the finance manager of a custom apparel company. While handling the business's cash flow, she makes sure that there is just enough cash on hand to pay normal daily expenses, like utility bills and employee wages. This cash can be referred to as

transaction balances.

At Bumble Bee Organics, employees send weekly activity recaps to their respective managers. Which of the following patterns of formal communication does this best illustrate?

upward

Managing short-term assets and liabilities is sometimes called

working capital management.

Rowena invented a new, innovative type of natural hair gel, so she started a company to make and sell it. She risked her wealth, time, and effort to develop this product for profit. Rowena is

an entrepreneur.

Labor unions use financial statements of a company to

Labor unions use financial statements of a company to

________ refers to conducting activities in such a way as to provide for the long-term well-being of the natural environment, including all biological entities.

Sustainability

Otto's Autos is one of three automobile manufacturers in its country. If one of the companies increase prices, the other automobile companies follow by raising prices by a similar amount. This situation is an example of

an oligopoly.

In the United States, a salesperson bringing an expensive gift to a meeting with a prospective client is most likely an example of

a bribe.

Aldovia is a country with a total national expenditure of $200 billion annually. However, the country only generates $150 billion from taxes annually. In this scenario, Aldovia is facing

a budget deficit.

Rowena, a senior manager at Top of the Line Publishing, wants a quick snapshot of the company's financial position before she goes to a manager's meeting. In this case, which of the following financial statements is Rowena most likely to use?

balance sheet

Jamal buys a hair trimmer but realizes when he opens the package that the product does not include any information about risks or instructions for use. This infringes on Jamal's right to

be informed.

Diedre works at Sally's Autobody Workshop. Her main job responsibility is to record the routine, day-to-day business transactions of the firm. Based on this information, Diedre is a

bookkeeper.

The owner of a department store offers the manager of its major supplier an expensive gift to obtain a price reduction for the next consignment. Which of the following approaches is the store owner using to influence the manager's decision making?

bribery

Which social responsibility issue is associated with unsatisfied product users writing emails to companies, lobbying government agencies, making public service announcements, and boycotting reckless companies?

consumer relations

Every box of Cheez-It baked snack crackers has a toll-free number printed on the side. This allows buyers to contact the manufacturer and ask questions or make comments. This is an initiative promoting

consumerism

What forms the economic dimension of social responsibility?

earning profits

Gen Zennial, an innovative smartwatch manufacturer, launches a new line of high-performance sports watches. The company is willing to sell the watches at $150 each, and the consumers are also willing to buy these watches at that price. In this scenario, $150 is the ________ price of the new smartwatches made by Gen Zennial.

equilibrium

Sam's company closed its U.S. factory and outsourced the work to Mexico where the labor was cheaper. Sam and hundreds of others in his small town found themselves unemployed. As a result, the community became a ghost town, and many people had to rely on unemployment. Most agree that unemployment is an economic issue but is also a(n) ________ issue.

ethical

________ is the condition of an economy in which unemployment is very high, consumer spending is low, and business output is sharply reduced.

Depression

Many investors follow the ________, which is made up of 30 companies, to determine whether the stock market has gone up or down.

Dow Jones Industrial Average

The ________ has the authority to approve or disapprove mergers between banks and the formation of bank holding companies.

Federal Reserve Board

The ________ is considered the guardian of the American financial system.

Federal Reserve Board

Which of the following statements is TRUE about middle management within an organization?

It is responsible for tactical planning that will implement the general guidelines established by top management.

In the context of assigning tasks within an organization, which of the following statements is TRUE of specialization?

It occurs when the activities that must be performed within an organization are too numerous for one person to handle.

What is an advantage of specialization?

It saves time when workers do not have to shift from one job to another.

Which of the following is a difference between manufacturers and service providers?

Manufacturers typically have more control over the amount of variability of the resources they use than do service providers.

Which of the following statements is TRUE of project teams?

Their membership is likely to be composed of people from different functional areas.

What is true of organizations that exhibit a high ethical culture?

They encourage employees to act with integrity.

Electronic markets have grown quickly because

of the speed, low cost, and efficiency of trading that they offer over floor trading.

Capital in excess of par is the difference between a stock's par value and its

offering price.

The rise of ________ has helped investors who want to buy and sell stocks and bonds themselves at low costs.

online brokerage firms

When Sole & Soul, a multinational footwear company, decided to adjust its management structure, the shoe company developed a visual display of the chain of command, so it would be easier for employees to understand. This visual display is called a(n)

organizational chart.

Julien is hired by a car manufacturer to structure various resources, such as equipment and people, to better accomplish the organization's objectives efficiently and effectively. Thus, Julien is involved in the management function of

organizing.

Crispy's, a national fast food restaurant that serves fried chicken, is facing serious problems. Though restaurant managers in Florida and Georgia have heard from customers that they want a grilled chicken sandwich, any decisions, such as introducing a new product, needs to be approved by the top managers in the company's headquarters. It takes an excessive amount of time to implement decisions, and as a result, the company is unable to effectively respond to trends on a regional scale. Which of the following causes can be attributed to the problems faced by Crispy's?

overcentralization

The team members at a car factory are each given a single task. For instance, one person attaches the tires, one person installs the brake lights, and one person shines the interior. The team has expressed to management that they are bored and unsatisfied with their work. Their complaints go ignored, and over time their unhappiness leads to poor quality work. What issue is at play in this scenario?

overspecialization

Alan overhears the vice president of sales discussing a new tactic that would allow the sales team to go virtual. Alan tells his coworker Jameson. By the end of the day, most of the sales team has heard the rumor. This informal channel of communication is known as

the grapevine.

Submarine Sandwich Shop takes out a $100,000 loan from the bank that has to be paid back within five years. The bank charges Submarine Sandwich Shop 5% of the principal for use of its money. In this case, the charge of 5% represents

the interest on the loan.

Since Houston United Bank is holding $10 million in deposits, it must keep $1 million in the vault due to current reserve requirements from the Fed. This means it can lend out the remaining $9 million to customers. What is the reserve requirement in this scenario?

10%

What organization sets the principles and standards of financial accounting and reporting in the private sector?

Financial Accounting Standards Board

Mac operates a corn farm, competing with hundreds of other corn farmers. No farmer sells enough of the product to influence the corn's price, and because there is no difference in the corn from each farmer, prices are determined solely by the forces of supply and demand. What type of competitive environment is Mac experiencing?

pure competition

Monetary policy refers to

the means by which the Fed controls the amount of money available in the economy.

A vacation rental company touts its five-star average rating. Sally writes a one-star review after a poor experience but notices it has been removed from the company's website the next day and discovers she has been blocked from booking future rentals. The vacation rental company is infringing on what consumer right?

the right to be heard

Which of the following is highlighted in John F. Kennedy's 1962 consumer bill of rights?

the right to safety

Gross domestic product (GDP) is defined as

the sum of all goods and services produced in a country during a year.

The U.S. $100 bill has a watermark so when you hold the note to the light, you can see a faint image of Benjamin Franklin in the blank space on the right side of the bill. Why do many countries use specially watermarked papers?

to make money difficult to duplicate

An organization that contributes to the community in which it operates and toward the quality of life is fulfilling its ________ social responsibility.

voluntary

A structural engineer hired by a military base discovers upon inspection that her employer is using low-quality steel and skimping on bolts and fasteners in many construction projects, which goes against the building designs she approved. She reports this to the concerned government regulatory agency. This is an example of

whistleblowing