Business 100 Chp 4-6

In the context of an acquisition, when the acquiring firm buys the target firm despite the opposition of the target's board and top management, the result is called a _____.

hostile takeover

Francois is the sole owner of a photo studio and handles most of the work himself. All earnings from the studio become Francois's income. Given this information, Francois

only pays taxes on his income as the owner.

Andrew, an employee in a corporate company, is asked to conduct a systematic evaluation of how well the company is meeting its ethics and corporate responsibility goals. In the given scenario, Andrew is most likely asked to do a _____.

Social audit

After being stagnant for a few years, a clothing company started making profits consistently. Following this, the CEO of the company decided to contribute to the growth of the community by starting an apprenticeship program in tailoring. The program involved providing training to a batch of 10 uneducated, underprivileged people free of cost every year. In this scenario, the company's gesture exemplifies _____.

social responsibility

_____ is a vibrant, compelling presentation style that grabs and holds the attention of the audience.

Dynamic delivery

A corporation is a voluntary agreement under which two people act as co-owners of a business for profit.

False

Communication must be static and one-way rather than dynamic and two-way.

False

Corporate etiquette is the obligation of a business to contribute to society.

False

Socially responsible employers stick to the state laws and do not go beyond them when it comes to providing a good working environment to employees.

False

Lawrence wants to pursue a law degree in a renowned law school in her city. She writes an application to the dean of the school. However, she is unsure if the dean is male or female, and therefore, she decides to address the dean by his or her official title. In this scenario, which of the following biases is Lawrence avoiding?

Gender bias

Erika has an upcoming meeting with Maggie, a prospective client. John, Erika's senior manager, tells her to observe Maggie's body language to determine whether the firm can expect business from her. To gauge Maggie's interest in the conversation, he tells Erika to observe whether she leans forward while listening. Which of the following forms of nonverbal communication is John referring to for gauging the outcome of the conversation between Erika and Maggie?

Gestures and posture

Broche Technologies, a brand of electronic appliances, develops a new range of refrigerators that do not release chlorofluorocarbons. The company promotes these products as the most eco-friendly refrigerators in the market. In this scenario, Broche Technologies is engaging in _____.

Green marketing

Which of the following is a recommended practice for picking the right words for business communication?

Including all information that the audience may need

Which of the following statements is true about nonverbal communication?

People communicate through a wide range of facial expressions.

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

Rudolf, a Polish manager in a company based in China, is admired by his colleagues for the way he interacts with people, his considerate nature, and his tolerance toward other cultures. In the context of universal ethical standards, Rudolf possesses the core value of _____.

Respect

In the context of social responsibility, which of the following statements is true of benefit corporations?

They do not have profits as their first priority

Mixter Prix, a multinational company, wants to hire a new salesperson. It posts a job advertisement in a newspaper that states that the company is looking for an older individual who is creative and has a graduate degree in marketing. In the given scenario, Mixter Prix's advertisement shows _____.

age bias

It is recommended that when giving a PowerPoint presentation, one should:

have no more than seven lines per slide

In the context of the legal and ethical dimensions of business conduct, providing rock-bottom prices only to distributors in underserved areas is _____.

illegal but ethical

Vandium, a high-end smartphone, is known for its excellent audio quality and processing speed. However, most of its users complain of certain technical issues after a period of five months. The company, however, is well aware of these issues because it deliberately designs these products to fail after a certain period—a strategy to generate revenue through service charges. In the context of business behavior, Vandium's business conduct is:

legal but unethical

Lucile, the head of a project, starts her presentation on the project by comparing each team member's work to that of a mountaineer climbing the highest peak in the world. In the given scenario, Lucile uses a(n) _____ to open her presentation.

simile

A(n) _____, a type of divestiture, occurs when a company issues stock in one of its own divisions or operating units and sets it up as a separate company—complete with its own board of directors and corporate officers.

spin- off

Robert Lane, former CEO of Deere, a highly performing, highly ethical corporation, believes in the importance of senior management commitment to ethics, but he points out that the "tone at the top" must be reinforced by the actual behavior observed by suppliers, dealers, customers, and employees. At Deere, this is summed up in highly visible, frequently referenced shorthand known as:

the how

In the context of franchising, which of the following statements is true of a business format franchise?

It is an agreement in which franchisor grants the franchisee the right to both make and sell its good or service

In the context of bringing the code of ethics of a company to life, which of the following statements is true when experts try to advocate a forceful, integrated approach to ethics?

It should be ensured that the company's ethics code is both local and global in scope.

Mikhail, a Korean, wishes to be a stockholder in an airline company in the United States. However, he is told that he cannot buy shares of the company as he is neither a U.S. citizen nor a permanent resident of the country. Besides this, he can become a stockholder only if any of the current stockholders decide to sell their shares as the company already has 100 stockholders. Given this information, it can be assumed that Mikhail wants to be a stockholder of a(n) _____.

S corporation

The trade union members of a wool manufacturing company are the company's _____.

Stakeholders

A benefit of using active voice in business communication is accountability.

True

A limited liability company (LLC) can elect to be taxed as a corporation.

True

One of the ways by which companies can show their responsibility toward the environment is by reducing their _____.

Carbon footprint

Rupert is an individual who believes in contributing to the community by using eco-friendly products. In the context of universal ethical standards, Rupert most likely possesses the core value of _____.

citizenship

In the context of the legal and ethical dimensions of business conduct, it is illegal but ethical to:

collaborate with other medical clinics to guarantee low prices in low-income counties.

The various ways in which a message can be sent, ranging from one-on-one in-person meetings to Internet message boards, are called _____.

communication Channels

Krempe Foods, a fast-food chain in Dallas, gives paramount importance to consumer feedback and has a well-established consumer feedback system. Given this information, it can be said that Krempe Foods supports _____.

consumerism

The chairman of a welfare organization asks an employee to head a fundraising activity. The employee, however, embezzles $250,000 from the funds raised from the activity and falsifies financial records. In this scenario, the behavior of the employee is _____.

illegal and unethical

Unlike a sole proprietorship, a corporation:

is considered to be a legal entity that is separate and distinct from its owners.

Tania starts a bookstore with her friend. However, owing to other commitments, Tania is unable to help with the daily operations of the bookstore. Therefore, Tania proposes that she would not actively participate in managing the business but would provide financial support to the business. By doing this, she would be sharing the profits equally with her friend, without incurring any of the business debts personally. In this scenario, Tania is a(n) _____.

limited partner

A(n) _____ cannot contribute funds to a political campaign.

not-for-profit corporation

In the context of codes of ethics, the Johnson & Johnson Credo refrains from:

overpromising financial rewards

An advantage of franchising is the:

training and support provided by the franchisor

Michael owns 100 shares of stock in the Zanson Electricals Corporation, but as a stockholder, he does not have the right to vote in stockholders' meetings. In this scenario, Michael is a preferred stockholder.

true

To strike the right tone while writing a business message, it is suggested that an individual:

uses the active voice to facilitate concise communication.

Which of the following practices is most likely to strike the right tone in a business message?

using common words

A corporation is a separate entity from its owners where the:

owners are not personally responsible for the obligations of the company

Fiola is undergoing a special training session to understand the theory of relativity. Mark, Fiola's tutor, conducts the training sessions for her. Mark uses jargon, and this makes it difficult for Fiola to comprehend the theory. In this scenario, which of the following communication barriers is most likely interfering with Fiola's understanding of the theory?

A language barrier

Ashlee, a human resource manager in a company, wants to introduce some changes in the leave policy of the company. However, the board of directors is reluctant to accept the changes as it feels that the changes will increase the attrition rate of the company. Which of the following communication barriers is Ashlee facing in the given scenario?

A perceptual barrier

Kimberly starts a presentation on child safety by sharing that "more than 200 million children today are child laborers, and 73 million of these children are below 10 years. Can we do anything about these numbers?" This makes the audience attentive and responsive throughout the presentation. In the given scenario, which of the following types of hooks does Kimberly use to open her presentation?

A startling statistic

Crayon, a well-established beauty products company, partnered with the Lenora Birdstone Foundation, a nonprofit organization, to raise awareness about breast cancer and collect funds for setting up a cancer unit at a local hospital. The company accumulated a sum of $5 million by selling organic creams to more than 2,000 people. In this scenario, Crayon was most likely involved in _____.

Cause- related marketing

The most socially responsible companies establish _____ for their vendors, setting clear policies for human rights, wages, safety, and environmental impact.

Codes of conducts

A Japanese company encourages its employees to participate in charitable activities. The company gives annual paid leave of ten days to its employees to volunteer at nonprofits or take part in activities that support environmental causes. Given this information, the company's initiative is an example of _____.

Corporate philanthropy

Which of the following statements is true of the board of directors of a corporation?

It establishes the corporation's mission.

Effective communication happens when one transmits relevant meaning to one's audience.

True

Globalization has made ethics and social responsibility complicated for workers at every level.

True

A Franchise Disclosure Document (FDD) is:

a document provided by a franchisor to the franchisee.

A sole proprietorship is a form of business ownership in which:

a single owner actively manages the company

Before starting a presentation on the employee healthcare initiative of his company, Leonard shares a real-life incident involving one of his friends who had benefited from the healthcare policy provided by her office. In the given scenario, Leonard uses a(n) _____ to open his presentation.

anecdote

Gimn Sphere, a content development firm, rents a small building and moves its marketing team there to make room for new content developers. The new building is smaller than Gimn Sphere's main office, with smaller cubicles and a poor heating system. The marketing team members are unhappy with the new environment, which directly affects their productivity. In the given scenario, the marketing team is most likely facing _____ to communication.

physical barriers

The benefits of a general partnership include its _____.

ability to pool financial resources

The owners of limited liability companies (LLCs) are called members because:

LLCs are neither corporations nor partnerships

Which of the following is a difference between limited liability companies (LLCs) and corporations?

LLCs are subject to fewer reporting requirements than corporations

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 but unethical

If you receive unwanted questions in the middle of your presentation, you should remind the questioner that there will be time for questions at the end.

True

In the context of nonverbal communication, leaning forward during a conversation is considered a sign of interest.

True

One of the disadvantages of general partnerships is the lack of continuity.

True

When people view ethics as relative, their ethical standards shift depending on the situation.

True

Lawrence starts his presentation on a new project by comparing the project to a baby. He states that just as parents are careful while taking care of a new baby, managers should be careful during the initial stages of a project. In the given scenario, which of the following types of hooks does Lawrence use to open his presentation?

a simile

The management of Minstrel Magik, an event management company, ensures to use gender-neutral language in its emails to both customers and employees. In the given scenario, it can be inferred that the management follows the business communication guideline of _____.

avoiding bias

The shareholders of a C corporation fill in all the required paperwork with a government agency. They also adopt a set of rules that will govern the way the corporation is organized and conducts its business. Given this information, the shareholders most likely adopt _____.

corporate bylaws

A premium brand of men's wear introduces a new range of dinner suits and licenses its franchisees to sell this product. However, the brand retains the production rights. This scenario exemplifies a(n) _____.

distributorship

Clareese Trends, a clothing manufacturer, identifies twelve potential franchisees who would introduce the brand's outlets across eight major cities in the United States. Clareese Trends, however, has retained the production rights with itself, giving its franchisees only the right to sell the products they receive from the company at their various outlets. This scenario exemplifies a _____.

distributorship

George, the CEO of a company, always uses examples from the Bible to convey his messages to his diverse workforce. He also favors employees who can quote verses from the Bible while talking to him. The non-Christian employees of the company, therefore, feel excluded. From the given information, it can be said that George shows _____.

ethnicity bias

Ron, an employee of Orifeon Corporation, is involved in various fraudulent activities. His team members find out about Ron's behavior and report it to their manager, Jaden. Jaden decides to discuss this issue with Ron. In this scenario, which of the following communication channels is Jaden most likely to use?

face to face meeting

Tangypop and Fizzmania, two giant soft drink companies in Brazil, join together to form a new company out of the two previously independent firms. They take this step to reduce competition, leverage economies of scale, and increase their size and market power within the soft drink industry. This association is most likely an example of a _____.

horizontal merger

Matisse and Oliver own an antique furniture business. They are in a form of partnership where Oliver is only a dormant partner who contributes financially to the business, whereas Matisse actively manages the business and takes care of imports and exports. Matisse and Oliver are bound by an agreement where, unlike Oliver, Matisse is personally responsible for all the debts incurred by the business. In the given scenario, Matisse and Oliver have a _____.

limited partnership