Business Management Final Exam Study Guide

12. Ethics vary from person to person.

A. True

17. Mail and wire fraud are both felonies.

A. True

16. Which of the following is NOT a type of insurance fraud?

B. Breached confidentiality

6. Who first identified cyclical patterns in the economy and created what is often referred to as "the business cycle"?

B. Clemente Juglar

33. What year was the Federal Trade Commission established?

C. 1915

36. Which of the following accurately defines tariff?

C. A special tax placed on foreign goods sold in the United States

22. A lawyer believes his client is guilty, but remains professional and represents his client. This is an example of which of the following?

C. Ethical behavior

23. Anna owns a neighborhood bakery. She consults her accountant to make sure she pays proper taxes, uses good quality ingredients for her products, and provides her employees a safe working environment. Which of the following CANNOT be used to describe Anna's actions?

D. Mannerly behavior

1. Which of the following is NOT a step of the employment process in the Human Resources department according to the presentation?

D. Negotiate salary and benefits of new hires

11. Ethics are the ______ code by which individuals live and conduct business?

C. Moral

32. The Sherman Antitrust Act of 1890 did which of the following?

D. Allowed the government to break up market-controlling companies and prevent monopolies

37. Which of the following correctly lists the three branches of government?

A. Executive, legislative, and judicial

9. Which of the following describes the term productivity?

A. Measurement of physical output for each unit of input used, usually referring to labor hours

5. Which of the following is NOT a function of management?

A. Analyzing

18. Insider trading, forgery, and insurance fraud are all examples of which of the following?

A. Ethical financial issues

24. According to the American Management Association (AMA) and Human Resource Institute (HRI), what is the number one cause of unethical business conduct?

A. Pressure of meeting a deadline

35. The Small Business Administration provides low cost loans, advice and other assistance to small businesses.

A. True

38. Common law is based on precedents established by judges' decisions.

A. True

2. Which of the following is NOT a role the Human Resources department plays when helping orient employees?

D. Analyzing new employee morale

8. Which of the following is NOT an indicator of the business cycle?

D. Birth rate

14. Which of the following ensures information is available only to those authorized to have access?

B. Confidentiality

34. What is the term for the removal or relaxation of the rules affecting businesses within certain industries?

B. Deregulation

29. Which of the following is appropriate when evaluating the identified alternatives to an ethical decision?

B. Exclude personal perspectives

31. The government discourages competition among businesses.

B. False

21. Which of the following terms is defined as "conduct based on or authorized by law which is established by society to maintain order and protect people and property from harm?"

B. Legal behavior

3. Evaluating employee performance helps with all of the following EXCEPT?

B. Sick leave

27. Steve lives in a neighborhood close to a waste water company. The company's water solution will directly affect the water quality in Steve's home. What is Steve's relationship to the waste water company?

B. Stakeholder

28. Which of the following is the first step of the ethical decision-making?

C. Identify the ethical problem

20. Which of the following is NOT a result of unethical business finance practices?

C. Increase in employee morale

19. Which of the following occurs when an accountant signs a client's name?

C. Forgery

7. Which of the following describes the growth part of the business cycle?

C. Occurs when persistent increases in the key measurements of aggregate economic activities are present

10. Which of the following lists each part of the business cycle?

C. Peak, Recession, Trough, Expansion

4. Which of the following is NOT a level of Maslow's hierarchy of needs?

C. Personal interest

40. What did the Taft-Hartley Act of 1947 legalize?

C. Right-to-work laws

26. Which of the following best describes a business which takes effort to protect the environment and promotes using renewable resources?

C. Sustainable business

39. When union representatives and management come together to discuss issues arising between employees and employers this is known as which of the following?

D. Collective bargaining

15. Which term describes the spending of company money to purchase goods for individual use?

D. Embezzlement

25. Sometimes people in business will encounter a complex situation in which they have difficulty choosing between a moral and an immoral act. Which of the following terms can be used to describe such a situation?

D. Ethical dilemma

13. Ethics are generally termed _____ areas.

D. Gray

30. Which of the following should a person NOT do during an ethical decision making process?

D. Make a choice based on company's profits