Business Management & Administration Test

A developing country sets its currency to be the same value as the U.S. dollar. This is called a(n)

Pegged currency

Cameron said to his manager, "The order didn't ship because Sam didn't tell me that we didn't have enough items in stock." What is Cameron doing?

blaming another person for a communication breakdown

When RWQ Corporation could not obtain insurance coverage to cover a specific type risk from commercial insurance companies, it formed an insurance company to provide coverage for the risk. This is an example of a company managing its risk through a(n)

captive insurer

What step in the Plan-Do-Check-Act (PDCA) continuous-improvement technique involves analyzing the results of a small-scale change to determine if the change was effective?

check

What do managers need to do to help employees understand their specific responsibilities in achieving the organization's goals?

communicate priorities

Luke is reviewing several internal and external reports to compare his company's sales and market share in relation to other companies in the industry. What type of business analysis is Luke conducting?

competitive

Every year since she was born, Sophia's grandparents invested $100 on her birthday. Sophia is now 18 and the investment has grown large enough to pay for most of her college expenses. Her grandparents explain that this is because her money has grown in two ways: by earning interest, and then by earning interest on that interest. This is an example of

compound interest

A manager monitors an employee as the employee is performing job-related tasks. This is an example of ___________ managerial control.

concurrent

Which of the following is a "checks and balances" system that often helps companies manage their business risks and monitor the integrity of their organizations:

ethics committee

Kim is developing a list of friends, family, and acquaintances. Kim plans to contact the individuals on the list and ask them if they know of any job openings in their companies. What activity is Kim performing?

networking

If an accounting firm deliberately conceals information about a client's financial status, the government may charge the business with

obstruction of justice

What do many businesses need to do to operate legally?

obtain required permits

Which of the following is a form of web-based technology that business professionals use to share their expertise and to solve problems on an ongoing basis:

online communities

When having a business conversation with a person who has some difficulty understanding English, it is important to

speak slower than you normally would

Which of the following is the management function that focuses on matching the appropriate person with the necessary skills for a specific job:

staffing

Based on the firm's mission statement, upper management established a variety of long-term goals to guide lower-level goal setting. What type of organizational goals has upper management set?

strategic

A businessperson offended a foreign client when s/he continuously made an insulting gesture. As a result, the client severed ties with the businessperson's company. This situation could have been avoided if the businessperson had

taken the time to learn about the client's culture before the meeting

An organization's product goals often involve setting standards for

the variety of its goods and services

Who is responsible for maintaining a safe work environment?

tight deadlines

What is the primary purpose of developing a post-implementation review during the closure phase of a project?

to determine if the deliverables achieved project goals

Why do some governments require businesses to use specific accounting methods?

to provide external sources with accurate financial information

Which of the following scenarios represents a cultural issue associated with personal space for an American businessperson:

A European client greets the person with a kiss on each cheek

When writing e-mail correspondence to customers and coworkers, it is important to remember that the messages

Are often seen by people other than the recipients

Which of the following is an example of an item that most likely requires a retailer to place a special order with a manufacturer:

Blinds for a non-standard size window

A luxury spa has experienced decreased sales. The owner believes the reason is a rise in unemployment in the area. What external environmental factor does this represent?

Economic

During what phase of the project life cycle does the project manager activate project controls?

Execution

A primary use of flow charts in business documents or presentations is to

Explain relationships

An example of how a company can reinforce its "environmentally friendly" image through its employees is by giving a(n)

Extra day of vacation for riding a bike to work instead of driving

Which of the following is an example of a purpose statement in a research report:

In this study, we will examine the cause and effects of global warming

Which of the following is NOT a fiscal cost that results from a high unemployment rate:

Increase in crime rate recognized

Which of the following work tasks must always be completed in designated sequential order:

Jack pulls stock, Mary packs the box, and Tim places the order on the truck

In which component of a research report should the writer place the following statement: "Based on our findings, we believe that it is imperative that PNJ Corporation make the necessary adjustments."

Recommendations

It is appropriate for a participant to ask questions during a staff meeting when

S/he needs a point clarified

What part of the URL <http://maps.google.com/maps?hl=en&tab=wl> do the letters http represent?

Scheme

As an audience member, which of the following should you do to encourage a speaker during an oral presentation?

Smile

D. the business meetings started several hours later than originally scheduled

The business meetings started several hours later than originally scheduled

Zoe noticed that her coworker Tom has been performing a work activity incorrectly. Zoe hasn't corrected Tom because she wants her manager to think she is more competent than Tom. Can Zoe's behavior negatively impact her employer?

Yes. Tom's errors could be costly to the company

Although Anna works in a different department than Ryan, their job responsibilities overlap. Anna and Ryan often talk about the mutually job-related problems, and they share ideas about how they can improve situations in ways that will benefit not only them, but the company in general. By sharing information and being objective, Anna and Ryan are

building collaborative working relationships

What is the essential component for effective knowledge management in business?

communication

Which of the following is an example of a trade secret:

customer list

What is the focus of quality assurance?

developing processes to prevent product defects

Six Sigma focuses on managing quality throughout the organization by focusing on

discipline and measurement

Which of the following is an example of an extensive decision:

hiring a new department manager

Company B's management has determined that it must downsize. Three persons in the customer service department will lose their jobs. Which of the following records can management use to help them determine which employees to keep:

human resources record

Which of the following is an example of a tort associated with the invasion of privacy?

A company uses an athlete's photo without permission to imply the endorsement of the product

Which of the following is NOT a characteristic of private enterprise:

A person's income depends mainly on the income their parents made

How can project managers monitor the project's quality of work and its current expenditures?

Conduct a project audit

Because Allison is meeting with a foreign businessperson whose culture places a great importance on modesty and a simple personal appearance, she should wear

Conservative apparel

In some countries, pictures are used on packaging to identify contents. Since Gerbers' baby food products feature smiling, healthy babies, the company had to repackage its baby food when doing business in those countries. This problem resulted from issues associated with

Culture

Roberto has just finished giving a presentation about global warming. An obviously irritated audience member stands and says that there is no evidence to prove global warming exists. Roberto calmly reads results from three scientific reports on its existence. Roberto's response is an example of

Defending an idea objectively

To avoid the appearance of bribery, businesspeople should understand a culture's protocol regarding

Gift giving

What is an important question that all businesses should answer about their ethical behavior in managing their customers' information?

How do we obtain information about our customers in ways that do not violate their privacy?

Which of the following is a true statement about a project charter:

It serves as authorization to start the project

After several failed attempts to obtain product information from Payton Manufacturing, Mr. Jones placed a $150,000 order with Morgan Industries. Why did Payton lose the large order?

Its employees were unresponsive

Which of the following is an example of an employee exhibiting self-confidence:

Jane believes that she can respond to unknown circumstances in a positive, calm way

Which of the following is an example of employees using groupware computer applications:

Kelli, Juan, Phil can access and make changes to the company production schedule from their home computers

Japanese companies tend to use a "hands off" approach in supervising employees, allowing them to help shape company policies. However, in many North American companies, the executive officers set policies and have active supervisory roles. This is a cultural difference related to

Management style

Maria's teacher says she has an aptitude for science. Which of the following may explain why Maria has an aptitude for science:

Maria's father is a microbiologist

During a weekly meeting, the project manager told the team, "All of you are doing a great job in meeting your deadlines. Just a few more weeks of hard work, and the project will be complete. Then, we will all go out to celebrate." What is the project manager doing?

Motivating the team

Genie's evaluates its suppliers on a variety of factors. To continue working with Genie's, a company is required to score a minimum of 4.0 points on its supplier performance evaluation. Referring to the following chart, will Raving Rivets be kept as a supplier?

No, because Raving Rivets score of 3.9 is under the minimum

One form of technology that businesses use to personalize their ongoing communication with customers is

Opt-in e-mail

Past sales records show that sales increased at a clothing store when a 10th rack of clothing was added to the store floor. However, when an 11th rack is added, sales increased by only 1%. In economics, this is explained by

The law of diminishing returns

What activity does accounting software help businesses do?

Track credit transactions

What issue is associated with product names that businesses often encounter when they start to sell their products internationally?

Translation issue

Which of the following are maintenance supplies that a business is likely to keep on hand:

Trash bag, sanitzer and light bulbs

Patty Hollingsworth is the marketing manager for Burton Manufacturing. If the company uses a hierarchical organizational structure, who reports directly to Patty?

Trent Simpson, Advertising Specialist

Who is responsible for maintaining a safe work environment?

all employees

A primary use of project-management software is to

allocate project resources

Which of the following is an example of a quality control method used in the workplace:

an advertising manager corrects a copywriter's ad copy

Sheila pays the minimum payment shown on her credit card bill each month. For the remaining amount on the bill she will be charged a(n)

annual percentage rate

What aspect of their employers' codes of conduct are employees violating when they regularly come into work late or leave early?

attendance

Quarterly, each of the international vice presidents of Smith & Webber completes the company's scorecard and submits it to the president of the company. The scorecard tracks sales, profit, advertising expenses, and other key information. The scorecard is a tool for which of the following management functions:

control

A serious accident occurred on Putnam Chemical Company's production line. A Putnam employee questioned the employees who were working during the accident to gather information about the situation. The company plans to use the gathered knowledge to determine the cause of the accident and to develop an action plan to prevent similar problems in the future. What technique did the company use to capture knowledge?

critical incident interview

What is needed to maintain collaborative relationships with suppliers?

effective conflict-resolution skills

The Halifax Retail chain uses computer applications to track its inventory and order goods from its vendors. What form of technology is the company using to streamline its purchasing processes?

electronic data interchange (EDI)

Cameron, a high school student, is giving a speech to the school board. He wants to persuade them to begin a recycling program for the school district. When a board member says the program will cost too much money, Cameron displays a chart proving the recycling program will make money for the school in five years. Cameron's chart has

eliminated a competing alternative

For several months, June has felt very tired at work. She has a hard time focusing on her job, is often irritated at her coworkers, and has turned in several late assignments. At home, June feels considerably better. June is experiencing

employee burnout

How does the fragmentation of processes help to protect a company's trade secret?

employees' knowledge is limited to a specific part of the process

Colleen doesn't like Reggie's political views, so she gives him a three percent pay increase instead of a five percent increase. This is an example of unethical behavior in relation to __________ management.

human-resources

When Jane received her first paycheck from her part-time job, she was surprised to see the amount was much less than her $8.00 per hour pay rate multiplied by the number of hours she worked. Jane had not planned on __________ tax being taken out of her paycheck.

income

Joseph is the vice president of finance for a large corporation. Recently, he told his sister to dump her stock in the company because it is about to declare bankruptcy. In some countries, Joseph could go to prison for breaking laws pertaining to

insider trading

Katrina is using a special software program to develop a business chart that shows the employees' expertise and skills and how they access different types of information throughout the organization. What type of software is Katrina using to document the information?

knowledge mapping

A city in the southwestern region of the country requires community businesses to undergo health and safety inspections to determine if the businesses are complying with

local ordinances

Silence is an effective negotiating technique to use with a vendor when a business wants the vendor to

make a concession

A limitation to the use of project-management software is that it lacks the ability to

make decisions

What activity helps businesses identify the various opportunities for continuous quality improvement?

monitoring data

What function of management involves developing a system for producing work?

organizing

As the assistant purchasing manager of a large company, Hannah juggles many workplace commitments. Last week, Hannah had several meetings with vendors, and didn't leave herself enough time to finish the weekly inventory report for her manager-a task that she really doesn't enjoy doing. Because the report was late, Hannah's manager was annoyed with her. What barrier prevented Hannah from effectively managing her workplace commitments?

procrastination

To improve the quality of its products and its business processes, a company will install a single new computer system that will replace the systems currently used across the company. Every aspect of this change is handled by representatives from the following departments: manufacturing, accounting, quality control, finance, and IT. This is an example of a

project team

The general purpose of managerial planning is to

provide direction

Which of the following is the management function that focuses on matching the appropriate person with the necessary skills for a specific job:

providing employees with instructions

Which of the following should effective managerial planning do:

reduce uncertainty

Although it placed an order three weeks ago, a flower shop determines that it needs to purchase an additional four cases of Model R28 glass flower vases for its flower arrangements. What type of order is the shop placing with its primary vase supplier?

reorder

After Caroline told her manager about the pricing mistake she made on a purchase order, her manager said, "This does present a problem, but we can work it out. Thanks for letting me know right away." Because Caroline accepted responsibility for her mistake, her supervisor is likely to

respect Caroline for her honesty

In which section of the statement of work (SOW) document would you find the following information: "AJB International will be responsible for collecting the research for the project, but will not interpret the results."

scope statement

To perform his job, Andrew works a complex database program. Recently, a new version of the database program that he uses was released. The new program is more powerful, efficient, and user friendly. To learn how to use the program effectively, Andrew signed up to take a class at the community college. In this situation, Andrew is continuing his education so that he can

update his technical skills

A business analysis indicates that the TWB Corporation could save $125,675 a year in paper purchases if all its employees decreased photocopying activities by 15%. The analysis provides TWB with important information related to

waste reduction

When a company uses computer software to assess the risk levels associated with alternative actions in a variety of business situations, it is conducting

what-if planning

Trevor needs to determine the procedures that he needs to follow for a specific project work activity. Trevor can locate that information in the

work breakdown structure dictionary