Bus

grievance

A formal complaint by a union worker that management has violated the contract.

mission statement

A formal document that states an organization's purpose and reason for existing and describes its basic philosophy.

free-rein leadership

A leadership style in which the leader turns over all authority and control to subordinates.

Mortage loan

A long term loan

virtual corporation

A network of independent companies linked by information technology to share skills, costs, and access to one another's markets; allows the companies to come together quickly to exploit rapidly changing opportunities.

False

The WTO is run by the United States

Federal reserve system

The central bank of the United States; consists of 12 district banks, each located in a major U.S. city.

True

The corporation's board of directors elects the CEO and the other corporate officers.

centralization/decentralization

The degree to which formal authority is concentrated in one area or level of an organization. Top management makes most of the decisions. The process of pushing decision-making authority down the organizational hierarchy.

group cohesiveness

The degree to which group members want to stay in the group and tend to resist outside influences.

All of these the franchise provides

The franchisor generally does NOT provide the franchisee with:

work group

The groups that share resources and coordinate efforts to help members better perform their individual jobs.

True

The higher the price a good is, the more willing suppliers are to try to sell that product.

top management

The highest level of managers; includes CEOs, presidents, and vice presidents, who develop strategic plans.

Discount rate

The interest rate that the Federal Reserve charges its member banks.

Absolute advantage

The karakul is a breed of Central Asian sheep that produces curly, glossy wool. This wool is popular in some countries for the manufacturing of warm hats and coats. Since the breed can only be grown in Central Asia, this region can be said to have a(n):

chain of command

The line of authority that extends from one level of an organization's hierarchy to the next, from top to bottom, and makes clear who reports to whom.

Sole proprietorship

The most common form of business organization is the:

The lost fundamental reason for the growth in world trade is probably due to

The need for businesses to expand their markers and make more profit

division of labor

The process of dividing work into separate jobs and assigning tasks to workers.

empowerment

The process of giving employees increased autonomy and discretion to make decisions, as well as control over the resources needed to implement those decisions.

human resource management

The process of hiring, developing, motivating, and evaluating employees to achieve organizational goals.

Open market operations

The purchase or sale of U.S. government bonds by the Federal Reserve to stimulate or slow down the economy.

corporate culture

The set of attitudes, values, and standards that distinguishes one organization from another.

protected classes

The specific groups who have legal protection against employment discrimination; include women, African-Americans, Native Americans, and others.

Insider training

The use of information that is not available to the general public to make profits on securities transactions.

Social responsibility

U.S. Steel has established an alcoholic rehabilitation program for the city of Pittsburgh. The company provides the facilities and the personnel to operate the program. This is an example of U.S. Steel practicing ________?

efficiency

Using the least amount of resources to accomplish the organization's goals.

False

Utilitarianism states that any act that jeopardizes the individual's rights is wrong

EU

What is the name for the economic alliance of numerous European countries?

Found the business to be easy and inexpensive to form

When Linda McAnem began Stirya, a New York-based computer services company, she ran it as a sole proprietorship. As a sole proprietor, McAnem:

Unlimited liability against partners

Which of the following is an example of a disadvantage associated with a partnership?

open shop

Workers do not have to join the union or pay union dues.

False

A person who buys a franchise has the same level of control as an entrepreneur who opens his or her own sole proprietorship.

Common stock

A security that represents an ownership interest in a corporation.

False

A well-designed product transcends cultural barriers. It does not need to be changed to suit different countries or cultures.

Capitalism

An economic system based on competition in the marketplace and private ownership of the factors of production is known as:

Preferred stock

An equity security for which the dividend amount is set at the time the stock is issued and the dividend must be paid before the company can pay dividends to common stockholders.

True

An increase in the price of crude oil could cause cost-push inflation because the cost of all goods that need transportation becomes more expensive.

Federal deposit insurance corporation

An independent, quasi-public corporation backed by the full faith and credit of the U.S. government that insures deposits in commercial banks and thrift institutions for up to a ceiling of $250,000 per account.

labor union

An organization that represents workers in dealing with management.

mechanists organization

An organizational structure that is characterized by a relatively high degree of job specialization, rigid departmentalization, many layers of management, narrow spans of control, centralized decision-making, and a long chain of command.

organic organization

An organizational structure that is characterized by a relatively low degree of job specialization, loose departmentalization, few levels of management, wide spans of control, decentralized decision-making, and a short chain of command.

Corporation

Business that generates the most sales

national debt

Cumulative total of past national debt

The national debt is

Cumulative total of past national deficits

Ethics

Dean was walking through the mall and found a gym bag lying on the ground. The decision Dean must make as to whether to keep the gym bag and its contents or turn it into the mall's lost and found department involves:

middle management

Managers who design and carry out tactical plans in specific areas of the company.

autocratic leaders

Directive leaders who prefer to make decisions and solve problems on their own with little input from subordinates

What is the name for the economic alliance of numerous European countries?

EU

What is the first responsibility a for-profit company must satisfy?

Economic responsibilities

It is never ok to lie in this ethical system

Ethical deontology is very focused on following rules of behavior. When would it be OK to lie according to this ethical system?

False

Ethical situations always have a clear right and wrong answer, so it is relatively simple to know the correct action to take.

If the president prefers protectionism and nationalism then the president is likely to support more free trade agree,ents and international collaboration

False

False

If the sole proprietorship acquires a legal business name, the owner then has limited liability.

Products that are brought from one country for use in another

Imports

Unemployment rate

In 2005, more than two-thirds of population of Haiti were not working, but were actively seeking employment. This 66.67 percent represents the nation's:

consultative leaders

Leaders who confer with subordinates before making a decision but who retain the final decision-making authority.

consensual leaders

Leaders who encourage discussion about issues and then require that all parties involved agree to the final decision.

democratic leaders

Leaders who solicit input from all members of the group and then allow the members to make the final decision through a vote.

work team

Like a work group but also requires the pooling of knowledge, skills, abilities, and resources to achieve a common goal.

Bonds

Long-term debt obligations (liabilities) issued by corporations and governments.

The U.S. imports more goods than it exports

Negative trade deficit

collective bargaining

Negotiating a labor agreement.

NAFTA stands for

North American free trade agreement

credit unions

Not-for-profit, member-owned financial cooperatives.

workers compensation

Pay for lost work time due to employment-related injuries.

Dividens

Payments to stockholders from a corporation's profits.

contingency plans

Plans that identify alternative courses of action for very unusual or crisis situations; typically stipulate the chain of command, standard operating procedures, and communication channels the organization will use during an emergency.

coercive power

Power that is derived from an individual's ability to threaten negative outcomes.

reward power

Power that is derived from an individual's control over rewards.

expert power

Power that is derived from an individual's extensive knowledge in one or more areas.

referent power

Power that is derived from an individual's personal charisma and the respect and/or admiration the individual inspires.

legitimate power

Power that is derived from an individual's position in an organization.

Equal Employment Opportunity Commission

Processes discrimination complaints, issues regulations regarding discrimination, and disseminates information.

Commercial banks

Profit-oriented financial institutions that accept deposits, make business and consumer loans, invest in government and corporate securities, and provide other financial services.

Retained earnings

Profits that have been reinvested in a firm.

affirmative action programs

Programs established by organizations to expand job opportunities for women and minorities.

Outscoring

Refers to sending work functions to another country resulting in domestic workers losing their jobs

Reserve requirement

Requires banks that are members of the Federal Reserve System to hold some of their deposits in cash in their vaults or in an account at a district bank.

nonprogrammer decisions

Responses to infrequent, unforeseen, or very unusual problems and opportunities where the manager does not have a precedent to follow in decision-making.

occupational safety and health administration

Sets workplace safety and health standards and assures compliance.

arbitration

Settling labor-management disputes through a third party. The decision is final and binding.

right to work law

State laws that an employee does not have to join a union.

selective strike strategy

Strike at a critical plant that typically stops operations system-wide.