Unit 2, Test

(blank-blank) is acting within the good principles of society and within the accepted rules of proper behavior.

Acting ethically.

What is the chief principle in the 4 Biblical passages (Leviticus 19:13 and Deuteronomy 24:14-15) on management?

Fairness.

Risk-taking management involves making the basic decisions that affect the future of a business and is called operational management.

False.

The End-Of-The-Year White Sale is on office supplies.

False.

Select the five dangers of a monopoly:

Higher prices ________________ No Rival competition ________________ Lower quality ________________ Limitation or elimination of certain goods. ________________ Poor service and attitude.

The Fed is an (blank) agency of the United States government.

Independent.

An important part of a Christian's obligation as manager is to be fair to his workers. "Thou shalt not defraud thy neighbor, nor rob him: the wages of his that is hired shall not abide with thee all night until the morning" (Blank 19:13)

Leviticus.

The debtor surrenders his non-exempt property for division among his creditors, but will still be obligated to pay any debts that the bankruptcy court determines have not been forgiven by the division among the creditors. This is known as:?

Liquidation.

Jesus taught financial responsibility to the government. This passage is found in (Blank) 17:27.

Matthew.

Check the boxes that are TRUE.

Monopolies are judged by how strong the competition is between the companies. ________________ The Fed issues the nation's coin and paper money currency. ________________ Trust were unofficial mergers formed to control prices and production in the marketplace.

Inflation = (Blank) money + Fewer goods.

More.

Walt's fellow workers are going on strike since the price of food has increased dramatically within the last 4 months. They are looking to get a higher salary. This continual raise in salaries and consumer goods is known as a:?

Wage-price spiral.

Mark the boxes that are True.

One of the largest diverstitures in American history occurred when the U.S. Government ruled that AT&T Corporation was a monopoly that must be divided so that the telephone market might be more competitive. _________________ The Federal Aviation Administration regulates the airlines. _________________ The Securities and Exchange Commission regulates the stock market. _________________ The Interstate Commerce Commission polices monopolistic practices.

In which 3 ways does the Fed manage the country's money supply?

Open-market Operations (purchase or sale of government securities.) _________________ Change the discount rate. _________________ Change reserve requirements.

After the trusts had eliminated the competition, they would cut back on production and (blank).

Raise prices.

A deduction from a full purchase that is repaid to the consumer is called a (blank).

Rebate.

Week by week the finances in this country can change, so the selling and buying of (blank) helps to maintain equilibrium.

Securities.

The Securities and Exchange Commission regulates the (blank-blank).

Stock market.

Which answer is not true?

The Fed was started in 1933.

Mark the boxes that are TRUE.

The Federal Communications Commission regulates radio and television to the extent of licensing stations and policing programming. ________________ The Federal Aviation Administration regulates the airlines. ________________ The Securities and Exchange Commission regulates the stock market. ________________ The Interstate Commerce Commission policies monopolistic practices. ________________ The Food and Drug Administration assesses all foods and drugs consumed.

What is operational management?

The day-to-day operation of a business.

"But if any provide not for his own, and specially for those of his own house, he hath denied the faith, and is worse than an infidel." (1 Blank 5:8)

Timothy.

Select the purposes of deregulation:

To offer consumers greater choice. _________________ To encourage technological advances. _________________ To lower rates.

What people would make entrepreneurial decisions in a corporation?

Top management & Board of Directors.

A bank might be seeing a hard pull on its deposits, so it borrows from the Federal Reserve Bank.

True.

In a bankruptcy, the priority debts are paid, then the unsecured debts are added up.

True.

One purpose of deregulation is to open up the doors of competition to many businesses in order to offer consumers greater choice in purchasing services or products.

True.

The Fed works to keep the balance of financial strength at a good level by keeping interest rates low in recessions and letting them rise in economic "boom" times.

True.

The U.S. Treasury keeps a checking account with the Federal Reserve.

True.

The histories of Great Britain and France are filled with terrible stories of debtors' prisons and penal colonies where people were sent because they could not pay their debts.

True.

The test of an entrepreneurial decision is whether or not there is a recognizable profit or loss.

True.

When banks borrow money from a Federal Reserve Bank, they are given a certain interest rate to pay back the loan. If the Federal Reserve System raises the rate of interest, the banks will find it harder to repay loans.

True.

The exhortation by Paul in (Romans blank) is: "Owe no man any thing, but to love one another: for he that loveth another hath fulfilled the law." This simply means that continual debt is not pleasing to the Lord.

13:18.

After deregulation, the California electric customer had his choice between (blank) utilities throughout the state.

7.

Check the boxes that are TRUE.

A chapter 7 bankruptcy is known as a "straight liquidation." ________________ Financial responsibility in the home is found in the Bible passage of 1 Timothy 5:8. ________________ A chapter 13 bankruptcy filing is called a reorganization.

Which of the following statements are TRUE?

After passage of the 1996 deregulation law, the Baby Bells started merging with each other, and 2 of them attempted to re-merge into AT&T. _________________ A lone utility company, Detroit Edison and Consumers Power, faced new competition as deregulation gave people a choice between utility companies. The company tried to battle the act by asking for funds to cover "stranded costs" and lost income once the process was underway, but the deregulation went through.

A (Blank-of-Blank) and the Federal Open Market Committee oversee the operation of the Fed.

Board of Governors.

(Blank) was the first state to undertake the restructuring of the electric utility industry on a state-wide basis.

California.

In 1914 the (Blank) prevented a merging of corporations to have intertwining boards of directors.

Clayton Antitrust Act.

It is the manager's job to (blank) the wishes of top management in such a way as to motivate employees to carry out these wishes.

Communicate.

How does inflation affect businesses? In the first place, it hurts all creditors, but it helps:?

Debtors.

Deregulation is about (blank) rates and (blank) supplies.

Decreasing, Increasing.

Which of these statements is TRUE?

Deregulated Investor Owned Utilities are known as IOU's.

Some businesses have stricter guidelines and even have their prices regulated. These price-regulated businesses are normally monopolies like (blank-blank).

Electric Companies.

Some monopolies do not drive prices up and competitors out; they serve the public. An example is:?

Electric Companies.

Paul wrote, "And, ye masters, do the same things unto them, forbearing threatening: knowing that your Master also is in heaven; neither is there respect of persons with him" (Blank 6:9). Management by fear has no place in Christian management.

Ephesians.