MGT Final Exam!

Numerous factors can contribute to strong team cohesiveness, among them having members with a similar mindset. Which of the following is factor that would tend to decrease team cohesiveness?

larger size

Which one doesn't belong? Ethics in business means: 1. being responsible in treatment of the environment 2. looking out for yourself 3. competing fairly 4. doing no harm to others

looking out for yourself

While there are smaller cell phone service providers, the providers that tend to dominate the industry in the U.S. are Verizon (VZ), Sprint (S), AT&T (T), and T-Mobile (TMUS). While not priced identically, if they tended to follow each other's pricing actions, this industry would most display the characteristics of what form of competition?

oligopoly

When she graduated high school, Steph received a check from his parents. She decided to buy a new xBox system rather than go to the beach with her friends. For Steph, the ___________ of buying the gaming system was missing out on the beach trip.

opportunity cost

Caen is a producer of soccer equipment with five owners who have all signed an agreement on how they will function and share profits. All have day to day responsibilities in the operations of this entity, which at present has shared unlimited liability. Caen is a(n) _____.

partnership

Ann is an entry-level IT professional and is skilled in the area of Java and HTML programming. Her knowledge of these coding languages represent her _________.

technical skills

Tariffs, import quotas, and government subsidies all fall into a broader category called _______________.

trade protectionism

When the regional Burger Barn franchise implemented a new timeclock system to keep track of employee hours, the HR department created a short video to show everyone how to use the system. The video is an example of employee:

training

The general rise in the prices of goods and services over time is known as ___________.

inflation

In preparing performance reviews, Mary's employer requires managers to collect feedback from Mary's peers and others who work closely with her. This process is called ___________.

360

The Labor Day (September 7) edition of the Morning Brew detailed a number of the economic impacts of the COVID-19 pandemic. In addition to a significant negative impact on the hospitality and tourism industry, the Brew discussed other major issues that have resulted. Which of the following was among them?

39% of employed people in households with incomes below $40,000 were furloughed or lost jobs, compared with just 13% in households with incomes above $100,000

Which of the following would be the best example of a logical response to a technological macroeconomic force? -Imposing new mileage standards on all new cars -The construction of retirement communities to serve an aging population -A project to increase in battery life to extend the range of electric cars -The distribution of masks by the government to combat the coronavirus

A project to increase in battery life to extend the range of electric cars

What is materials requirements planning (MRP)?

A software tool that facilitates just-in-time inventory management

Anna forms a group to code an app to help people donate to charities. She needs funds to promote the application. An investor provides $15,000 in exchange for a 10% stake in the company. The investor hopes to make money by connecting Anna to her network and coaching her on how to succeed. This scenario describes what kind of investor?

Angel

What is the main point of the assigned video by Seralius?

Aspects of each system (capitalism and socialism) are needed for a balanced outcome

Among the disadvantages to forming a business as a corporation are all of the following except: 1. More costly to set up 2. Double taxation 3. Harder to scale 4. The agency problem

Harder to scale

Grand and Petite are two companies in unrelated industries. They meet to share best practices in their logistics areas in order for both to improve their results. In what practice have these two companies engaged?

Benchmarking

Sam is a senior VP at PSG Co. He tells his son Bob that a very bad quarterly sales report will come out the next day and that Bob should sell his 10 shares of PSG stock. Which of the following is true?

Both Bob and Sam are guilty of insider trading

Bill Preston and Ted Logan started a business, Adventure Time Travel. They created a document describing services they would offer, the expected market for their product, the financing they needed to get started, and the income they expected. This document is called a(n):

Business plan

Sid is lead singer in a band that is getting more airplay. He continues to put a lot of emphasis on his studies just in case the band does not make it big. For Sid, his studies represent a(n) ____________.

Contingency plan

Barbara's company gives the employees off one day a quarter to pick up trash in the local community. This is a part of the company's _________.

Corporate social responsibility

The manufacturing process at Cole Co. results in polluted water as a byproduct. The law allows Cole to release 5,000 gallons a month of untreated water into a nearby river, but they instead incur an additional cost to eliminate all pollutants. Their approach to their pollution levels qualifies as _________.

Corporate social responsibility

From a tax standpoint only, which of the following is the least attractive business form to select? 1. Limited partnership 2. Corporation 3. Foreign subsidiary 4. Cooperative

Corporation

One of the biggest disadvantages to mass production is that:

Customers are not able to customize the product to their individual tastes and preferences

Danielle is asked to find a new supplier for janitorial services for her company. Her old college roommate Emma now owns a cleaning service and lets Danielle know that she wants to bid on the contract. Which of the following is true?

Danielle has a conflict of interest in this situation

When corporations make a profit, they often return a portion of that profit to the shareholders in the form of a quarterly payment. What is the name for that payment?

Dividend

Stockholders benefit from corporate ownership by receiving _________________.

Dividends

As customer tastes change, several major car manufacturers have announced plans to increase production of SUVs and trucks, and to discontinue several models of cars. Their decision was most likely in response to a change in what external factor?

Economic

All of the following are forces addressed by the PESTEL model except: 1. Environmental 2. Educational 3. Economic 4. Legal

Educational

When Tesla Motors started manufacturing cars, they were able to create innovative, high quality cars for which customers were willing to pay high prices. However, they were unable manufacture enough cars to meet demand, and customers had to wait months for their vehicles to be delivered after purchase. Tesla Motors was having trouble with which aspect of management? Effectiveness? Liability? Agency? Efficiency? Synergy?

Efficiency

Which of the following attributes describe transformational leadership?

Encouragement, mentoring, and providing a challenge

Veronica is studying environmental engineering because she is interested in renewable energy. This major has become more popular among college students, and consumers are also looking for environmentally friendly products. This trend is due to which type of external force?

Environmental

Erica has created her landscaping business as a sole proprietorship. Which of the following is a potential disadvantage of choosing this form of business? 1. Erica's earnings will be taxed twice 2. Erica will need to pay lawyers to register the business enterprise 3. Erica's personal assets are at risk 4. Erica will have to distribute dividends to her shareholders

Erica's personal assets are at risk

According to your reading material, which of the following is not a characteristic of a team?

Excels in interpersonal relationships

Which of the following best describes a transactional leadership style? 1. Mentor and develop subordinates and motivate them to achieve goals 2. Seek input into decisions affecting the employee but make the decision oneself 3. Exercise authority based on rank and step in when mistakes are made 4. Let superiors know only what they need to know to do their jobs

Exercise authority based on rank and step in when mistakes are made

Emma's company has a policy that allows employees to work four 10-hour days, five 8-hour days, or four 9-hour days and a 4-hour Friday. Which of the following terms best describes this policy? 1. Holistic scheduling 2. Self managed 3. Flextime 4. Free rein

Flextime

James&Co. uses a scheduling policy that allows most employees to set their own hours provided that peak periods are always covered. This scheduling policy is called __________?

Flextime

Quick Restaurants is a Belgian chain of hamburger restaurants. Now based in Bobigny, Seine-Saint-Denis, France, the company has around 400 restaurants, many of which are actually owned by entrepreneurs in different countries in Europe who pay a royalty to Quick based on the amount of business they do. Based on this information, what global entry strategy did Quick use to expand?

Franchising

Luke gives his ten employees considerable latitude in how they do their jobs. As long as they get their work done, they are free to decide how and where they will work. Luke's leadership style is best described as _____.

Free rein

Gagner Co. makes an offer for Gamin Inc. that the Gamin board decides is too low. Gagner goes to the Gamin stockholders and convinces them to sell. An acquisition of this nature is known as a(n) __________.

Hostile takeover

Destiny manages the sales team at La Plage. She set sales goals for her team, measured the results, and compared them to her goals for each team member. Some members fell short of their goals. What is the next step for Destiny to take in the control process?

Identify root cause

How does MRP work?

It uses sales forecasts to anticipate materials that will be needed before ordering them

A Belgian electronics maker wants to expand to Bolivia and signs a deal with a local company. Each company invests equal amounts to create a new firm that will make and market the product and each investing company will take half the profits. From the vantage point of the Belgian company, its choice of global entry strategy is best described as ___________________.

Joint venture

Marr and Morrisey are companies with multiple product lines. They sign an agreement to create a new company Smiths by combining their music divisions. The rest of Marr and Morrisey continue to operate as before. This transaction is best described as a(n) __________________.

Joint venture

The number of building permits issued offers foresight into future construction activity. This measurement is therefore considered a(n) ____________.

Leading economic indicator

According to your assigned reading, the most important benefit of the corporate form of business ownership is __________.

Limited liability

Nyle is a professional bicyclist. Frames for his bike are made by hand to the exact geometry that best suits his body. Based on this description, these frames are made using what production method?

Make to order

The risk of obsolescence is lowest when using what production method?

Make to order

Perfect competition exists when:

Many sellers offer many buyers a standardized product

If a company wanted to manufacture the same item repeatedly and keep costs as low as possible, it would logically use what production method?

Mass Production

Effective teamwork means:

Members depend on each other

According to chapter 1, work teams have five key characteristics. Which of the following is not one of them? 1. Members function in a social context 2. They have authority 3. Members function independently 4. Members are accountable to achieving common goals

Members function independently

Which of the following is true of the liability of businesses?

Members of a partnership can be personally sued for actions of another partner

Say that in response to COVID-19 and its effect on the U.S. economy, the Federal Reserve went on a bond-buying spree as a measure intended to inject funds into the economy. Such a measure would be considered _________.

Monetary policy

In a company, transforming resources into tangible and intangible products is part of:

Operations

Nyle earned $300 mowing grass. He wants the Beats Solo Pro but he also is considering the PS4 Pro. If he buys the Beats, the PS4 will represent the ____________ of buying the headphones

Opportunity Cost

One of four functions of management. This one that deals with the allocation of resources to tasks and who reports to who in a business.

Organizing

Which of the following is not a step in the control process? 1. Measuring performance 2. Taking corrective action 3. Organizing employees 4. Establishing standards of performance

Organizing employees

Companies like Dell Computer have tech support lines that are staffed by people in India that work for other companies under contracts with Dell. Which of the following is the most accurate name for this practice?

Outsourcing

A market featuring identical products and many sellers with no individual influence on market prices would be characterized as which form of competition?

Perfect competition

When companies like Pepsi or Microsoft offer to match employees' charitable donations with an equal amount from the company, they are engaging in:

Philanthropy

Although models of economic systems help us to understand the approach to economics in various countries, it can be said that there is no such thing as a purely capitalist or pure communist economy. Each of the following responses helps to explain the reason this is true except:

Private property rights are not really respected anywhere in the world

How does production control differ from production planning?

Production control is what occurs after production planning has already taken place

After the purchase of a franchise, which of the following type of payment would be required after the initial investment? Dividend? Franchise fee? Interest? Royalty?

Royalty

Mattia is having a bad year—the racing team he manages is losing race after race. He is trying to analyze his situation so he can determine what changes he needs to make in order to have a more successful season next year. Which of the following could help him figure this out?

SWOT

In restaurants, when lines get too long, customers tend to go elsewhere to eat. This tendency makes what aspect of managing a service operation especially critical?

Scheduling

A team that is granted considerable autonomy in controlling the activities it undertakes in order to achieve its goals is known as a(n) ___________________.

Self-managing team

Individuals who own a portion of a corporation are known as _________________.

Shareholders

Jack is opening a restaurant in downtown Blacksburg, Jack LLC. He wants to ensure that his business model takes into account the needs of his customers, suppliers, employees, and other ___________ with an interest in the success of his business.

Stakeholders

Building trust is important in teamwork. Which of the following is false with respect to building trust?

Strongly advocate your point of view

Cavani Co. acquired Icardi Group, enabling them to access new markets and reduce costs by eliminating duplicate positions. These benefits realized by Cavani in this acquisition are known as _______.

Synergies

The coronavirus has resulted in many companies instructing their employees to work from home. The term in business for working from outside the office is:

Telecommuting

Sometimes people need to be fired. Human resources managers seek to minimize exposure to lawsuits when that happens. The formal name for the process of ending employment from a company is called _______.

Termination

Which of the following is not considered a stakeholder in a business enterprise?

The city, town, or state in which the business operates

In her Business Law course, after the first exam, Sophie's professor decided to give everyone the class average rather than having everyone keep his or her own score and said that the same policy will be used for the rest of the semester. With respect to this scenario, which of the following is false?

The class average on the next exam will likely rise as everyone works harder to make up for the weaker students

Mario is a member of Ford's IT team for production and manufacturing. In response to COVID-19, Ford let any employee who did not need to work in an office or manufacturing plant work online from home instead, including Mario and his fellow IT team members. How has the IT team changed?

The team is now virtual.

Other than cost savings, which of the following was discussed in chapter 10 as a reason why companies outsource certain aspects of their business?

To gain access to specialized labor not present within the company

Since they typically invest more than other categories of early stage investors, ________________ tend to have higher expectations for a return on their investment.

Venture capital firms

Will is a Purchasing Coordinator with XYZ Corporation in New York and has been assigned to work with other coordinators in San Diego, Chicago, and Dallas to share best practices. The team will use Zoom to meet online. Will is part of what type of team?

Virtual

Sarah enjoyed working for a new startup company, but when Matt was hired as the new CEO and her direct manager, she immediately noticed some issues with his behavior in the workplace. Sarah hesitated to tell anyone about Matt's unsolicited sexual advances, but after hearing about other similar stories through the #MeToo movement, she decided she needed to expose Matt's behavior and worked up the strength to be a(n) ________.

Whistleblower

Hez observes that his boss is using company funds to make improvements on her vacation home. He reports the situation to the CEO of the company. In so doing, he has acted under what principle?

Whistleblowing

The number of new home construction permits provides insight into future purchases of appliances, roofing tiles, and many other items. This piece of data is therefore considered ___________________.

a leading economic indicator

When McDonald's teams up with the Walt Disney Company to feature toys from new Disney movie releases in McDonald's Happy Meals, both companies benefit—Disney gets advertising for its movies and McDonald's has desirable toys in its Happy Meals. This arrangement is an example of:

a strategic alliance

Because farmers in China can currently produce more rice per worker than farmers anywhere else in the world, China now has a/an ______________ in rice production.

absolute advantage

Bethany discovered that her friend Ella cheated on an exam in a class they take together. Bethany is torn over whether to say anything to her professor or not. If Bethany reports Ella, she might ruin their friendship. If she does not report Ella, the grade Ella got by cheating will make Bethany's and her classmates' honest grades look bad. Bethany is facing:

an ethical dilemma

Many U.S. companies use call centers in India to handle customer service phone calls because labor costs are lower in India for this type of worker than in the U.S. and global communication networks are fast and reliable. India has taken advantage of these factors to develop a/an _____________ in this industry.

comparative advantage

Say that Antibes Co. matches employee donations to institutions of higher education up to a limit of $1,000 per employee per year. From the point of view of the company, this is an example of _____________.

corporate philanthropy

The European Union is a regional group of countries that exists to facilitate free trade among its member nations. It serves as an example of a(n) ____.

either trade bloc or common market

When stores started requiring customers to wear masks, Angelika sewed masks for herself and her family. When her friends learned that she made her masks, they asked her to make masks for them too, and were willing to pay her for her time and materials. Angelika realized that the market for masks was growing, and decided to open an Etsy shop to sell her masks. Angelika can be described as a/an ________.

entrepreneur

As a result of the economic impacts of COVID-19, Congress has been debating a spending package of $1.0 - $2.5 trillion, in the hopes of stimulating the economy. If this package is passed into law, this action would be categorized as a(n) __________ move.

fiscal policy

Jake lands a job installing the control switches on heaters in a factory. He makes minimum wage plus $1.00 for every switch he installs correctly. The $1.00 incentive portion of his pay is known as ___________.

piecework

There have been discussions for years among legislators about the use of renewable energy, such as solar and wind, to manage the carbon footprint. These environmental debates are part of the _________________________ macro-environment:

political

Mei and her product development team have designed a new skateboarding shoe. They are excited because testing has shown that the sole of the shoe lasts twice as long as the soles on their biggest competitor's shoes. If the skateboard shoe industry exhibits monopolistic competition, the tougher soles are an example of:

product differentiation

Consider a market in which the equilibrium price for a gallon of milk is $3. In order to make its milk producers happier, the government imposes a minimum price $4. What would be the expected impact on the market for milk?

product surplus

In what aspect of operations management is facility layout addressed?

production planning

Priya is an accountant for a small florist shop, keeping track of all of the expenses and income for the business. At the end of each month, she reports to the owner the amount of money left from all of the customer purchases after all of the bills are paid. This money is the business' ___________.

profit

The U.S. has established limits on the amount steel that China and Brazil can export to the U.S. and China, in turn, has a limit on the amount of grain the U.S. can export to China. These limits are known as:

quotas

Where Stan lives, the government owns many businesses. Taxes are high, but education and health care are nearly free. In this country, the economic system tends towards _______.

socialism

Hanna observes that her boss is using the company plane to visit his significant other on the weekends. She confirms that her boss is not paying the company for the use of the plane, and then reports the situation to the CEO of the company. In so doing, Hanna has taken what action?

whistleblowing

If you were looking to start a small business and decided to use the franchise model, which of the following would not be true of the advantages and disadvantages of your decision?

you would pay only a one-time franchise fee