Business Final

A company's stock does not have to be listed on one of the major stock exchanges in order to trade. It can be traded on _____________. A. Over-the-counter market B. NYSE Euronext C. NASDAQ D. AMEX

A.

A rapid increase in the money supply may lead to a(n): A. increase in the rate of inflation. B. recession. C. decrease in interest rates. D. decrease in spending by consumers and businesses.

A.

According to Herzberg, a sense of achievement, earned recognition, and interest in the work itself were all: A. important motivators. B. hygiene factors. C. ways for employees to meet their social needs. D. consistent with his Theory X approach to motivation

A.

After operating for years as a privately held corporation, MidAtlantic Ironworks plans to publicly trade its stock. As a midsized firm, MidAtlantic wants to avoid excessive paperwork, and the fear of being delisted in the future. The ________ provides the best fit for MidAtlantic's plans. A. over-the-counter market B. New York Stock Exchange C. American Stock Exchange D. secondary market

A.

Corporations receive the proceeds for the sale of their stock in: A. the primary market. B. the secondary market. C. both primary and secondary markets. D. venture capital markets.

A.

Ethical behavior covers a ________ range of conduct than legal behavior. A. wider B. more limited C. smaller D. less demanding

A.

Geraldo works on the assembly line for a major automobile manufacturer. He was hired for the job without any specific training or skill. Geraldo joined a union with other assembly-line workers who perform a variety of jobs that do not require a highly specialized skill. Geraldo belongs to a(n): A. industrial union. B. craft union. C. assembly union. D. traditional union.

A.

In Maslow's hierarchy of needs, the desire for love and acceptance would fall into the category of: A. social needs. B. esteem needs. C. primal needs. D. self-actualization needs.

A.

Private investors benefit from securities markets primarily by: A. having a place to buy and sell stocks and bonds. B. obtaining the capital they need to finance their operations. C. securing memberships on various stock exchanges. D. participating in the primary markets of investment bankers.

A.

The Industrial Revolution was characterized by a(n): A. increased emphasis on production, resulting in longer hours and less job security for most workers. B. migration of manufacturing jobs from the Midwest and Northeast to the South as firms began locating in areas where labor costs were lower. C. rapid improvement in the wages and working conditions of most workers, resulting in a decline in the need for labor unions. D. movement away from scientific management, and a greater acceptance of the ideas of Herzberg and Maslow.

A.

The Securities and Exchange Commission has accused Martha of benefiting unfairly from information secured from a corporate officer of Stewart Engineering. Because Martha used that information to profit in the stock market, she faces ________ charges. A. insider trading B. security tampering C. corporate fraud D. short selling

A.

The cost of a firm borrowing money is called the: A. interest rate. B. dividend payment. C. prime charge. D. opportunity charge.Which of the following accurately describes an advantage of selling bonds to raise long-term capital? A. Interest is a legal obligation. B. Face value must be repaid. C. Bondholders have voting rights. D. Interest is a tax-deductible expense.

A.

The first national labor organization in the United States was the: A. Knights of Labor. B. Congress of Industrial Organizations. C. American Federation of Labor. D. United Farm Workers Union.

A.

The presence of formal labor organizations in the United States dates back to the: A. late 1700s. B. Civil War. C. late 1800s. D. depression years of the 1930s.

A.

The redesign and new colors added to U.S. paper money is intended to: A. make the currency more difficult to counterfeit. B. increase the use of the barter system. C. improve the durability of our monetary system. D. increase the portability of our money.

A.

The trading of previously issued securities from one investor to another takes place in the: A. primary market. B. secondary market. C. initial offerings market. D. corporate trading market.

A.

The ultimate resource of a firm is its: A. business plan. B. marketing mix. C. capital budget. D. employees.

A.

Trading in newly issued securities takes place in the: A. primary market. B. secondary market. C. initial offerings market. D. corporate trading market.

A.

When retained earnings are not enough to meet their long-term funding needs, businesses may be able to raise funds by: A. selling common stock. B. petitioning the government for a loan. C. purchasing additional assets. D. decreasing their accounts payable.

A.

Which of the following statements best describes the current legal interpretation of insider trading? A. Is only possible when you are a board member or a chief officer of a company. B. Can be any employee and relatives or friends of the employee. C. Would involve members of the SEC (Securities and Exchange Commission) and the investment banker who handles most of a firm's transactions. D. Anyone who has securities information about a particular firm that is not known by the general public.

A.

Which of the following would be classified as an institutional investor? A. Pension funds B. Federal Reserve banks C. Stock exchanges D. Commodity brokers

A.

__________ occurs when goods are traded directly for other goods. A. Barter B. Direct exchange C. Direct marketing D. Credit

A.

Which of the following represents a benefit of coins over paper money? A. Improved portability B. Increased divisibility C. Enhanced stability D. Improved durability

A>

A(n) ________ is an employee organization that represents workers in employee-management bargaining over job-related issues. A. trades guild B. union C. ESOP D. cross-functional team

B.

Antonio received specific training to become an electrician. He belongs to a union with other skilled electricians. Antonio belongs to a(n): A. industrial union. B. craft union. C. open union. D. company union.

B.

As a new father, Dave plans to accumulate funds over the next eighteen years to help pay for his son's college education. Security markets provide Dave with: A. financing opportunities. B. investing opportunities. C. opportunities to reduce his taxes. D. borrowing opportunities.

B.

At one time, as a condition of employment, the employer could make the employee sign a statement prohibiting the worker from joining a union. This was called a(n): A. arbitrary agreement. B. yellow-dog contract. C. right-to-work contract. D. employment at will agreement.

B.

Bonds perceived as high risk typically pay ________ interest rates. A. higher B. lower C. more volatile D. less volatile

B.

Corporations benefit from securities markets primarily by: A. creating an efficient mechanism to invest in stocks and bonds. B. obtaining the capital they need to finance their operations. C. securing memberships on various stock exchanges. D. participating in the mutual funds of investment bankers.

B.

Georgia Corporation, known for its very generous dividend policy, easily attracts investors. These dividend payments basically represent: A. a part of the firm's profit distributed to stockholders. B. the increase in market share the company has earned. C. current value of the firm's stock holdings. D. income that is sheltered from taxes.

B.

Given the ethical lapses that are prevalent today in our businesses, which of the following can be done to restore trust in the free-market system and leaders in general? A. Business leaders that have broken the law should be given another chance. B. New laws making accounting records transparent may help restore trust. C. Making the government accountable for business leader behavior will restore trust. D. It's up to the government to pass laws requiring ethical behavior of all leaders, business and otherwise.

B.

Herzberg's research found that the factor that ranked highest as a motivator was: A. the friendliness of supervisors. B. a sense of achievement. C. a compensation system that included bonuses and regular pay raises. D. the presence of clear and consistent company rules and policies.

B.

In its early years, the AFL's strategy was to: A. grow as rapidly as possible by allowing people from all professions and walks of life to join. B. limit its membership to skilled craftspeople. C. limit its membership to unskilled and semiskilled workers. D. form one big craft union which everyone could join; but it later split into several smaller organizations.

B.

Investment bankers ________ new issues of bonds or stocks by purchasing, at a discount, the entire stock or bond issue of a firm and selling the issue to interested investors at a higher price. A. syndicate B. underwrite C. guarantee D. sanction

B.

Maslow was mainly concerned with explaining how: A. jobs could be broken down into very simple tasks that could be performed by unskilled employees. B. human motivation was related to a hierarchy of needs. C. managerial assumptions about employees affected their style of management. D. to achieve open two-way communication within an organization.

B.

Maslow would classify the need for recognition from others and for self respect as _________ needs. A. social B. esteem C. security D. physiological

B.

Most businesses prefer to meet their long-term financial needs through: A. debt financing. B. capital from the sale of stock. C. retained earnings. D. capital from the sale of bonds.

B.

Obeying the law is ________ ethical behavior. A. essentially the same as B. the first step towards C. the opposite of D. unlikely to lead to

B.

One of the key functions of human resource management is: A. departmentalizing. B. recruiting. C. budgeting. D. auditing.

B.

Probably the most controversial program enforced by the Equal Employment Opportunity Commission concerns: A. mandatory retirement. B. affirmative action. C. equal pay reporting. D. green card requirements for illegal aliens.

B.

The Family and Medical Leave Act: A. provides paid leave for women who choose to stay home with newborn infants. B. provides unpaid leave of up to 12 weeks for males or females for the birth or adoption of infants, or in the case where it is necessary to care for an immediate family member who may be ill. C. provides unpaid leave of up to 6 weeks for couples (male or female) who have a new baby. D. was recently eliminated by the Supreme Court due to an employment shortage.

B.

The first step when facing an ethical dilemma is to ask: A. "Is it legal?" B. "Is it balanced?" C. "How will it make me feel about myself?" D. "Is it ethical?"

B.

Theory ___ managers see employees as having a general dislike for work and an unwillingness to accept responsibility. A. A B. X C. Y D. Z

B.

Which of the following is a reason why a business should be managed ethically? A. It is the right thing to do. B. Strict global regulations require it. C. It is the law in the U.S. D. Employees demand it.

B.

__________ includes anything that people generally accept as payment for goods and services. A. An intangible asset B. Money C. A commodity D. A barter good

B.

____________ is the process by which a group of workers legally take away a union's right to represent them. A. Disqualification B. Decertification C. Impeachment D. Disenfranchisement

B.

A basic idea of ___________ was to conduct time-motion studies to find the best way to perform each task, then teach people to use these methods. A. management by design B. Theory Z management C. scientific management D. expectancy theory

C.

A(n) ________ refers to the first public offering of a corporation's stock. A. primary market offer (PMO) B. initial securities proposal (ISP) C. initial public offering (IPO) D. primary public sale (PPS)

C.

A(n) ________ represents a condensed version of the registration statement that enables prospective investors to evaluate a stock for possible purchase. A. insider report B. securities disclosure C. evaluative report D. prospectus

C.

According to Maslow's Hierarchy of Needs theory, which of the following would be an issue that requires the fulfillment of a lower order need? A. The need for a challenging project at work. B. The need for a promotion at work. C. The need for a mentor to help you ascend within the company. D. The need to locate your business in an area with a low crime rate

C.

According to Maslow, a higher order need: A. always provides greater motivation than a lower order need. B. never provides as much motivation as a lower order need. C. becomes a source of motivation after lower order needs are satisfied. D. contributes directly to the physical survival of the individual.

C.

Critics of labor unions argue that unions are no longer needed to protect workers from abusive and unfair treatment because: A. the widespread use of ESOPs has given most workers control over their workplace. B. supply and demand conditions in labor markets now favor labor rather than management. C. laws and modern management attitudes minimize the possibility of unsafe working conditions and unfair treatment of workers found in earlier eras. D. most of the firms that treated workers poorly have moved their operations to foreign countries.

C.

Employees in the United States and other developed nations are least likely to be motivated by the desire to satisfy __________ needs: A. social B. esteem C. physiological D. self-actualization

C.

Employers must verify that employment candidates are eligible to work in the U.S. as mandated by: A. Manpower Development and Training Act B. Civil Rights Act of 1991 C. Immigration Reform and Control Act D. Occupational Safety and Health Act

C.

Frank Lehman is a human resource manager at a major corporation. If Frank's company is like most firms today, which of the following statements about Frank's job is likely to be the most accurate? A. Most of Frank's time will be devoted to clerical duties such as processing payroll checks and keeping employee files updated. B. Frank's job will be simpler in the future than it was in the past, because the percentage of new workers entering the labor force who are poorly educated and unprepared for work is slowly but steadily declining. C. Government laws and regulations concerning hiring, worker safety, pay, and unionization will make Frank's work complex and challenging. D. Frank and his fellow human resource managers will be given complete responsibility for performing all human resource functions within the organization.

C.

Herzberg found that good pay: A. was the strongest motivator. B. was a significant motivator, but not as important as job security. C. was a hygiene factor rather than a motivator. D. had no effect on worker attitudes

C.

How do investment bankers generate revenues for their firms? A. They invest their own funds, or the funds of others, in mutual funds and commodities. B. They earn commissions by managing the investments of insurance companies and mutual funds. C. They buy, at a discount, the entire issue of a new security and then sell the issue to investors at full price. D. They receive consulting revenues from the advice they offer the Securities and Exchange Commission.

C.

If a publicly traded corporation fails to maintain specific minimum requirements, the exchange can ________ the firm's securities. A. re-list B. transfer ownership of C. delist D. provide preemptive rights to

C.

In coming years, high tech growth areas such as computers, biotechnology, and robots are likely to experience a: A. surplus of labor. B. significant decline in market demand, leading to a stagnant labor market. C. shortage of skilled labor. D. stable equilibrium in the labor market.

C.

Maslow classified the needs for basic items such as food, water, and shelter as: A. safety needs. B. sustenance needs. C. physiological needs. D. self-actualization needs.

C.

One of the elements essential to Frederick Taylor's approach to improving worker productivity was: A. teamwork. B. a hierarchy of needs. C. rules of work. D. open communication.

C.

The CIO (Congress of Industrial Organizations) organized unskilled and semiskilled workers into: A. craft unions. B. a political party. C. industrial unions. D. union shops.

C.

The Civil Rights Act of 1991: A. declared affirmative action plans unconstitutional. B. requires any firm with over 600 employees to file an annual report with the Department of Labor identifying the steps it has taken to eliminate discriminatory practices. C. allows victims of discrimination to seek punitive damages. D. is the first law to declare reverse discrimination illegal.

C.

The Hawthorne studies concluded that worker motivation: A. increased when managers applied the scientific management approach. B. was most affected by monetary incentives. C. improved when employees felt like their ideas were respected. D. was mainly determined by physical working conditions such as lighting, temperature, and humidity

C.

The ________ is a large national electronic stock trading market. A. SEC B. NYSE C. NASDAQ D. NLRB

C.

The _______________ was created by the Civil Rights Act of 1964, and has since become a formidable regulatory force in the administration of human resource management. A. National Labor Relations Board B. AFL-CIO C. Equal Employment Opportunity Commission D. Affirmative Action Transition Commission

C.

The investor will receive the face value of the bond on the ________ date. A. purchase anniversary B. declaration C. maturity D. annual interest

C.

The management at a shoe factory planned to terminate production due to labor issues that were consuming most of the profits. For years, the strong union at this facility did some tough negotiating with the company's corporate headquarters. In a companywide vote, employees agreed to walk away from union membership in order to keep the factory open and save their jobs. The NLRB (National Labor Relations Board) agreed that it was in the best interest of the employees. ______________ was started to take away the rights of union representation at the factory. A. bargaining dismissal B. decertification C. arbitration D. certification

C.

The original goal of the Hawthorne studies was to determine: A. the average IQ of production employees. B. whether employees could work effectively in unsupervised teams. C. the level of illumination that was associated with optimum productivity. D. how to stimulate employees to be more creative.

C.

The problem with bartering is: A. one person in the trade does not feel he/she got a fair shake. B. there is a significant amount of corruption in the process, and things get stolen before they are traded. C. it is not an easy process, and often cumbersome to carry goods to the place of trade. D. it has no place in today's international trading operations..

C.

The union movement in the United States was an outgrowth of the economic transition caused by the: A. Revolutionary War. B. Great Depression. C. Industrial Revolution. D. passage of antitrust legislation by the federal government.

C.

Unions were originally formed __________________. A. to make certain that there were an equal number of non-management and management- level employees within the company B. to uphold the state and federal laws under which businesses operate C. to seek protection against unfair treatment D. to seek worker corporate voting rights, the same as stockholders

C.

Weldon Taskman has just successfully negotiated a new long-term sales agreement with a major client. The personal satisfaction Weldon has about his efforts is his _______ reward. A. external B. extrinsic C. intrinsic D. reciprocal

C.

When Carl Remmick lost his job as a highly skilled craftsman at a metal working shop, he searched for a good job for several months before finally accepting a position as a maintenance worker at a local community college. He is happy to have a job, but frustrated by the fact that he had to settle for a job that did not take full advantage of his skills. Carl is a(n): A. structurally unemployed worker. B. semi-employed worker. C. underemployed worker. D. quasi-employed worker.

C.

When the value of the U.S. dollar increases relative to other currencies: A. the rate of inflation increases. B. the size of the national debt decreases. C. foreign goods become less expensive to U.S. consumers. D. U.S. goods become less expensive to foreign buyers.

C.

Which of the following questions can help us avoid a decision that would injure our self esteem? A. Is it legal? B. Is it balanced? C. How will it make me feel about myself? D. How can I avoid taking the blame?

C.

_________ represent a powerful force in the buying and selling of corporate securities. A. Individual investors B. Mutual banks C. Institutional investors D. Investment banks

C.

___________ is the process of evaluating human resource needs and then recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organizational goals. A. Staffing B. Performance evaluation and response C. Human resource management D. Job analysis

C.

According to U.S. business law, accommodation means: A. treating all employees fairly. B. making certain that if one employee gets medical leave during a fiscal year, that all other employees get an equal amount of leave during the year. C. careful consideration before firing someone and hiring two younger persons to replace him/her. D. providing services for employees according to their special needs.

D.

Firms establish a ________ so that sufficient funds are available to repay bondholders on the maturity date. A. mutual fund B. sinking fund C. retirement account D. encumbered account

D.

If your company is selling its products or services to the U.S. government, you should study Human Resource law that pertains to: A. the Better Business Bureau in your local area of operation. B. the limits that the EPA (Environmental Protection Agency) places on the pollutants you can emit in your foreign factories. C. the total number of employees you can hire. D. nondiscrimination and affirmative action laws when doing business with the federal government.

D.

In Maslow's hierarchy, __________ needs refer to the desire to reach one's fullest potential. A. social B. esteem C. egoistic D. self-actualization

D.

In the Legal Briefcase box titled, "The Million Woman Suit Against Walmart," women sued Walmart because of: A. Theft in the giant retailer's parking lots. B. Hiring practices that include pay inequality and unfair promotion opportunities. C. Hiring practices that include age discrimination and back pay worth $1 million. D. Hiring practices that permit men to wear khaki shorts and polo shirts, but force women to wea

D.

Jackie had been very pleased with her part-time job at a local convenience store until a recent incident occurred. During Jackie's shift, the store was burglarized. Although no one was hurt, Jackie now feels uneasy and fearful during her late night shift. She is so nervous and worried that she is having a hard time concentrating on her work and is thinking about quitting. Management needs to be aware of Jackie's unmet _______ needs. A. esteem B. self-actualization C. physiological D. safety

D.

John dropped out of school after the ninth grade and now must support himself though he has few skills. He is a part-time employee at a small retailer earning the minimum wage. John would like to earn more, but hasn't been able to find a better job. He is having a hard time paying his rent and utility bills and has quit eating breakfast to try to save on his food bills. John is having trouble meeting his: A. esteem needs. B. self-actualization needs. C. social needs. D. physiological needs.

D.

Labor unions were largely responsible for: A. establishing the Republican party. B. the basic structure of the federal income tax system. C. the passage of NAFTA. D. minimum wage laws and laws against child labor.

D.

Maslow called the needs people have for security at work and at home: A. physiological needs. B. stability needs. C. insurance needs. D. safety needs.

D.

Molly Manufacturing plans to issue $75 million of common stock. The firm will likely rely on the advice and assistance of a(n): A. Federal Reserve bank. B. commercial bank. C. mutual fund. D. investment banker.

D.

The findings of the Hawthorne studies led researchers to look more closely at how ____________ could lead to better productivity. A. changes in salary and benefits B. disciplinary factors and punishment C. changes in physical working conditions D. the human side of motivation

D.

The personal satisfaction people feel when they have done a job well is a(n) __________ reward. A. cognitive B. extrinsic C. physiological D. intrinsic

D.

Theory ____ assumes that the average person likes work, and has a relatively high degree of imagination and creativity. A. A B. Alpha C. X D. Y

D.

Title VII of the Civil Rights Act of 1964: A. gives all citizens over the age of 18 the right to vote regardless of race, religion, sex, or creed. B. prohibits firms from using employment testing as a means of selecting employees and determining which employees should be promoted. C. requires all firms with over 100 employees to have an affirmative action plan. D. prohibits discrimination based on race, religion, sex, creed, or national origin in matters such as hiring, firing, training, and compensation.

D.

When discussing moral and ethical issues, it is helpful to remember that ethical behavior begins with ___________________. A. schools B. religious institutions C. law enforcement officers D. each of us

D.

Which of the following accurately describes an advantage of selling bonds to raise long-term capital? A. Interest is a legal obligation. B. Face value must be repaid. C. Bondholders have voting rights. D. Interest is a tax-deductible expense.

D.

________ refers to standards of moral behavior. A. Legality B. Responsibility C. Integrity D. Ethics

D.

__________ are workplaces with undesirable, and often unsafe and oppressive working conditions. A. Treadmills B. Flopshops C. Steamshops D. Sweatshops

D.

__________ workers have a higher skill level than their current job requires. A. Structurally unemployed B. Frictionally unemployed C. Contingent D. Underemployed

D.

_____________ is the process by which representatives of a union meet with representatives of management to negotiate a contract for workers. A. Mediation B. Arbitration C. Mutual Conciliation D. Collective bargaining

D.

_________________ was the father of scientific management. A. Elton Mayo B. Frank Gilbreth C. Henry Gantt D. Frederick Taylor

D.