Business Chapters 1-8

Organizations that focus decision-making authority near the top of the chain of command are said to be ________.

centralized organizations

A(n) ________ refers to a written statement setting forth the principles that guide an organization's decisions.

code of ethics

What is the relationship between outsourcing and opportunity for small businesses and entrepreneurs?

Companies subcontract projects as a way to eliminate entire departments.

A cross-functional team that deals with recurring tasks and has the opportunity to become a permanent part of the organization structure is part known as a ________.

committee

Which of the following is considered to be one of the key lagging economic indicators?

corperate profits

Which of the following is one of three key factors that can influence ethical behavior?

cultural differences

A vertical merger occurs when ________.

different stages or levels of the same industry unite

Another term for work specialization is ________.

division of labor

Intrapreneurship refers to ________.

entrepreneurial efforts within a larger organization

The number of units of one currency that must be exchanged for a unit of the second currency is known as the ________ between the currencies.

exchange rate

A ________ is a legally binding contract that defines the relationship between a franchisee and a franchisor.

franchise agreement

In a ________ strategy, managerial control is highly centralized and major decisions for the company's international operations are made at the company's headquarters in the home country.

global

Uniformity of thought that occurs when peer pressures cause individual team members to withhold contrary or unpopular opinions is called ________.

groupthink

A manager has the capability of reducing his disruptive impulses and moods. He also has the ability to understand others' feelings. These capabilities are indicative of ________.

high emotional intelligance

The use of unpublicized information that an individual gains from the course of his or her job, in order to benefit from fluctuations in the stock market, is called ________.

insider training

A disadvantage of the corporate structure is that it ________.

involves strict reporting requirements

When the number of competitors in a market is small, a situation known as ________ is created.

oligopoly

________ encompasses all the people and processes used to create the goods and perform the services that a company sells.

operations management

Microeconomics is the study of

the economic behavior among consumers and businesses

The legal and regulatory environment would include ________.

the speed of obtaining licenses

A country's balance of payment equals the ________.

total flow of money into the country minus the total flow of money out of the country

In the ________ strategy, a company uses a hybrid approach as it attempts to reap the benefits of international scale while being responsive to local market dynamics.

transnational

Strengths and weaknesses are internal factors that contribute to a company's success or failure.

true

The conditions and forces that affect the costand availability of goods, services and labor, and shape the behavior of buyers and sellers are BEST described as the ________ environment

Economic

________ is the study of how a society uses scarce resources to produce and distribute goods.

Economics

Monetary policy involves changes in the government's revenues and expenditures to stimulate a slow economy or dampen a growing economy that is in danger of overheating and causing inflation.

False

Quality is a measure of how productive an organization's employees are.

False

The diagram that shows how employees and tasks are grouped is called organizational structure.

False

The stock of a private corporation is made available for purchase by the public.

False

The term stakeholders refers only to those people who have invested money in the company's stock.

False

When an organization is grouped around product line, and each line encompasses all functional resources needed to achieve its goal, the company is utilizing a functional structure.

False

When someone uses the justice approach as a way to resolve an ethical dilemma, he or she seeks the greatest good for the most people.

False

According to what might be termed the minimalist view, businesses should be involved in making social policy and spending the public's money.

Fasle

Why is inflation a concern for businesses and consumers?

Inflation affects the amount of goods and services you can buy for a given amount of money.

Which of the following arguments supports the idea of free trade?

International trade must take place without any interference

________ skills are required to understand others and to interact effectively with them.

Interpersonal

Which of the following is a key difference between private corporations and public corporations?

Private corporations are owned by a few people, whereas public corporations can be owned by anyone who has the means to buy stake

Which of the following is a disadvantage of a sole proprietorship?

They usually have fewer financial resources and fewer ways to get funds from lenders or investors.

A functional team is organized along the lines of the organization's vertical structure.

True

A horizontal merger occurs when different companies at the same stage or level merge.

True

Comparative advantage theory states that countries should produce and sell to other countries those things it can produce most efficiently.

True

Corporate social responsibility (CSR) embodies the concept that a business has obligations to society beyond the pursuit of profit.

True

The degree to which organizational tasks are broken down into separate jobs is referred to as work specialization.

True

The service sector now dominates the U.S. economy.

True

The money, equipment, and buildings that a business needs in order to produce goods and services are called ________.

capital

A/an ________ is a framework of how a business intends to generate revenue.

A business model

How are after-tax profits dispersed in a sole proprietorship?

All after tax dollars belong to the owner

Why should corporations be allowed to generate profits?

Because the country's standard of living involves the goods and services created by profit-seeking companies.

Businesses that need very large amounts of money, equipment, land and other material resources in order to get started and continue to operate are ________ businesses.

captial-intensive

Which of the following combines the benefits of independent business ownership with the support of a large organization?

Buying a franchise

________ is the management function of keeping a company's activities on track toward previously established goals.

Controlling

________ is a combination of private and public financing, in which an entrepreneur invites people to fund a share of a new business venture or a new product.

Crowdfunding

A(n) ________ shows the relationship between the amount of product that buyers will purchase at various prices, all other factors being equal.

Demand curve

________ are the principles and standards of moral behavior that are accepted by society as right versus wrong.

Ethics

What type of exposure to liability is there in a sole proprietorship?

Exposure is unlimited and the owner's personal responsibility.

A management pyramid is used to exhibit managerial roles without defining a corporate hierarchy.

False

Ethnocentrism is the tendency to assign a wide range of generalized attributes to an individual.

False

Etiquette is the quality of performing your job to the best of your ability and conducting yourself with purpose and pride.

False

Which of the following acts outlaws payments that are intended to get government officials to break the laws of their own countries or to secure "improper advantage" in gaining or retaining sales?

Foreign Corrupt Practices Act

What is one major advantage of a small firm over a large firm?

Freedom to innovate and move quickly

________ agreements entitle one company to use some or all of another firm's intellectual property in exchange for a royalty payment.

Licensing

________ is the process of arranging resources to carry out an organization's plans. It is one of the major functions of managers.

Organizing

________ is a measure of how closely a product conforms to predetermined standards and customer expectations.

Quality

________ activities are intended to identify new ideas that have the potential to result in new goods and services.

Research and development

In addition to receiving funding from the initial cost of a franchise purchase, how does a franchisor make money?

Royalities on a percentage of sales revenue

________ plans outline the firm's long-range (often two to five years) organizational goals and set a course of action the firm will pursue to reach its goals.

Strategic

Which of the following is a disadvantage for those with the entrepreneurial spirit when considering a franchise?

The lack of control over many decisions

Which of the following is a disadvantage for those with the entrepreneurial spirit when considering a franchise?

The lack of control over many decisions.What is one major advantage of a small firm over a large firm?What is one major advantage of a small firm over a large firm?

Social media has given consumers numerous ways to ask questions, voice concerns, and otherwise demand attention, supporting which consumer right?

The right to be heard.

The risk and reward relationship is ________.

a fundamental to businesses in every modern ecomony

The ________ measures price at the producer or wholesaler level, reflecting what businesses are paying for the products they need.

a producer price index (PPI)

A firm decides to offer its shares of ownership to the public for the first time, and lists its securities on a public exchange. This is termed as ________.

an initial public offering (IPO)

In a sole proprietorship, the owner ________.

and the business are legally inseparable

Which of the following is a characteristic of a matrix structure?

assigning employees to functional and project teams simultaneously

A potentially significant disadvantage of a partnership is that ________.

it has more potential for disagreement and conflict

A ________ gives a franchisee the right to produce and distribute the manufacturer's products, using supplies purchased from the franchisor.

manufacturing franchise

A(n) ________ is a specific, short-range target or aim.

objective

The classic theory of comparative advantage suggests that each country should ________.

specialize in those areas where it can produce more efficiently than other countries

Developing the workforce by supporting job-training efforts is an example of ________.

strategic CSR

Which of the following best describes pure competition?

where no single firm can control prices or distort the free-market system

What type of conflict resolution is based on the premise that greater power or status doesn't entitle one party to impose a solution?

win-win