BUS 100
In the context of a public offering, a(n) _____ is a complex document that must include a firm's key financial statements plus additional information about the company's management, its properties, its competition, and the intended uses for the funds it plans to obtain from the offering.
registration statement
Amforted is a company that provides various multinational corporations with housekeeping staff on contract basis. Each relationship manager is allotted one client to work with until the contract period is over. In the context of customer relationship management, Amforted most likely establishes _____ with its customers.
full partnerships
To achieve its basic mission of promoting international economic cooperation and stable growth, the International Monetary Fund (IMF):
lends money to member nations.
Which of the following countries exemplifies the concept of opportunity cost?
An Asian country that increases its production of sugar by decreasing its production of cocoa
In the context of product adoption and diffusion, which of the following questions relates to the product characteristic of complexity?
Can potential consumers easily understand what your product is and how it works?
The number-one goal of any business is to contribute to society.
False
Which of the following is a negative factor that interferes with the effectiveness of socialist economic systems?
Inefficiencies and corruption
Which of the following is a drawback of telecommuting for an organization?
It poses great challenges in fostering teamwork.
Which of the following statements is true of customer loyalty?
Loyal customers provide valuable feedback.
Which of the following practices should ideally be followed when giving a business presentation?
Telling the audience the key points before launching into the body of the presentation
Which of the following is an example of an intangible asset?
The goodwill showed by a food manufacturing company by helping its competitor at a time of crisis
In the context of the location of facilities, the operations manager of a _____ is likely to choose a location based on the proximity to customers.
bank
When drafting an email intended for a recipient who is likely to feel positive about it, you should:
begin the email with your bottom line.
Paris Hilton declaring, "I am a marketing genius" is an example of _____.
people marketing
Elision Inc., an American software development company, outsourced its support operations to Luzenza, an Asian nation, because it found that Luzenza has a large cohort of English-speaking college graduates who are ready to work for one-fourth the pay of comparable American workers. Which of the following is most likely to have influenced Elision Inc.'s decision to outsource its support operations to Luzenza?
Access to factors of production
Which of the following countries is involved in countertrade?
An Asian country that provides sugarcane to an African country in exchange for jute
Tinix is a well-established petrochemical company that holds excellent credit ratings in the market. It provides short-term financial capital to other big firms by issuing promissory notes that are collateralized (Links to an external site.) by physical assets (Links to an external site.). Which of the following short-term financing options is being offered by Tinix in the given scenario?
Asset-backed commercial paper
_____ tools include premiums, promotional products, samples, coupons, rebates, and displays.
Consumer promotion
In the context of marketing a product, which of the following statements is true of overpromising?
Customers will be disappointed if the product falls short of very high expectations.
Which of the following is a difference between full-service brokers and discount brokers?
Discount brokers tend to charge significantly lower commissions than full-service brokers.
Which of the following theories of motivation suggests that if any link in the relationship among individual effort, individual performance, and individual reward is broken, employees will not be motivated?
Expectancy theory
Ron, an employee of Orifeon Corporation, is involved in various fraudulent activities. His team members find out about Ron's behavior and report it to their manager, Jaden. Jaden decides to discuss this issue with Ron. In this scenario, which of the following communication channels is Jaden most likely to use?
Face-to-face meeting
Rel Eston, a network service provider, sells off its accounts receivable to a financing company in order to gain early access to funds that would help accelerate company's growth trajectory in the market in the following year. Which of the following short-term financing options is being used by Rel Eston in the given scenario?
Factoring
Which of the following statements is true of computer-integrated manufacturing (CIM)?
It allows firms to produce custom-designed products for individual customers quickly at low costs.
Which of the following statements is a benefit of telecommuting for an organization?
It increases employee productivity due to better morale.
In the context of human resource management challenges, which of the following statements is true of women workers?
Many professional women step out of the workforce early to start their own companies.
John has been recruited as a firefighter for his city's fire department. He notices that the fire department does not provide the firemen with adequate equipment for protection against hazardous substances. In this context, the fire department is violating the _____.
Occupational Safety and Health Act of 1970
Paul is an employee at a marketing firm. He is someone who prefers to be instructed by his seniors and avoids taking major responsibilities. He rarely uses his own judgment or creativity while doing a task in fear of putting things at risk. Paul's conduct in the workplace is consistent with the assumptions of _____.
Theory X
In the context of operations management, which of the following statements is true of the increasingly competitive and global nature of markets?
There has been a shift from a cost perspective to a value perspective.
Which of the following statements is true of strategic goals?
They must tie directly to a firm's competitive position.
Which of the following is a problem faced by telecommuters?
Weak connection to the company culture
Augustus, a student undergoing his doctorate program, is working on a thesis that requires him to browse the Internet for information and visit various unverified websites. To protect his computer from the risk of attracting unwanted messages and other security threats, he uses a tool that uses both hardware and software to provide protection against hackers. In the given scenario, Augustus is most likely using _____.
a firewall
Fatima enjoys online shopping as it allows her to buy things from a wide range of options from the convenience of her home. She recently bought a food processor online. In this scenario, Fatima is involved in _____.
business-to-consumer e-commerce
The Fed directly stimulates spending by:
buying government securities.
A _____ falls between the product layout and the process layout.
cellular layout
Melingo Furniture provides its customers with an option of buying, selling, and servicing of its products online. This helps Melingo Furniture create a customer base by providing convenience to them. In this scenario, Melingo Furniture is involved in _____.
e-commerce
MergeFirms.com provides a platform for buyers and sellers to engage in business-to-business (B2B) e-commerce. Buyers and sellers get the opportunity to interact with each other and conduct their businesses through it. In this scenario, MergeFirms.com acts as a(n) _____.
e-marketplace
When Jayden, a salesman at Srastis, a company that sells home appliances, did not achieve his sales targets for three consecutive quarters, his manager asked him to resign. In the context of human resource planning, this scenario best illustrates _____ at Srastis.
employee separation
Each year M. Lloyd Corporation rewards the year's best-performing employee. The reward is based on the individual performance of an employee, his or her level of commitment toward the organization, and his or her crisis management skills. The company gives this reward to encourage other employees to also put in the same kind of effort in their work. In this scenario, M. Lloyd Corporation follows the _____ theory.
expectancy
Unlike goods, services are _____.
experienced
Mailinkpro, a stationery manufacturer, has registered itself with jobappln.com, an employment website. Mailinkpro's human resource (HR) department posts all job vacancies in the company on jobappln.com and pays an annual fee to the website for availing its services. In the context of HR planning, this scenario best illustrates _____.
external recruitment
According to Maslow's hierarchy of needs theory, healthcare plans and life insurance serve to satisfy the esteem needs of employees.
false
Black hat hackers are hackers who have no harmful intent.
false
Horizontal applications software consists of highly specialized applications used in a particular industry, such as brokerage firms.
false
On-the-job training is also known as vestibule training.
false
Retail firms normally hold work in process or raw materials.
false
Jack works in a cargo shipping company as a section leader. As a part of his job, he needs to train and evaluate the employees. He also makes sure that the employees constantly remain motivated to carry out their tasks efficiently. Thus, as a section leader, he is heavily involved in the day-to-day production process of the company. In the context of the management hierarchy, Jack is a _____ manager in the company.
first-line
Ashley, a fashion photographer in a magazine, is not the most hardworking, talented, or efficient member in her team. However, during performance appraisals, the team leader gives her the best ratings because he is extremely fond of her. In the context of performance appraisals, which of the following does this scenario best illustrate?
halo effect
In the context of management skills, middle-level managers need an especially high level of _____ as they typically act as the bridge between departments, coordinating people and projects that sometimes have mismatched priorities.
human skill
Mervin, an employee of a non-governmental organization, conducts a survey among children about the awareness of traffic rules. The facts and figures collected by him are processed and organized by an analytic team to conclude whether the surveyed children are aware of traffic rules. In this scenario, the report that would be prepared by the analytic team can be referred to as _____.
information
In the context of the characteristics of good information, when information is timely, it means that:
it is available at the right moment to make a difference
William is the owner of a made-to-order furniture shop. He maintains extensive catalogues of the designs and customizations that he offers. Once a customer places an order, William buys the required amount of raw materials from his regular suppliers and starts working on the order. From the given scenario, it can be inferred that William follows the _____.
just in time production system
Pamela, the accounts manager of Brian & Preston Corp., suggests the operations managers to move the production unit of the company to another country to reduce labor and utility costs. In this scenario, Pamela is suggesting _____ the company's production process.
offshoring
In the context of operations management, a _____ is defined as a set of related activities that transform inputs into outputs, thus adding value.
process
The extent to which decision-making power is held by a small number of people at the top of the organization is known as _____.
the degree of centralization
A job description is an explanation of the responsibilities for a specific position in an organization.
true
Business intelligence systems are a new class of decision support systems developed over the past two decades to leverage data storage.
true
Services such as concerts or sporting events require a fixed position layout.
true
When merchant wholesalers take legal title to the goods they distribute, they reduce the risk of producers' products being damaged or stolen.
true
To strike the right tone while writing a business message, it is suggested that an individual:
uses the active voice to facilitate concise communication.
Financial diversification is a strategy of investing in a wide variety of securities in order to reduce risk.
Financial diversification is a strategy of investing in a wide variety of securities in order to reduce risk.
Identify a true statement about the debt ceiling.
Voting on the debt ceiling happens separately from voting on taxes and spending.
A-n-Y dominates its market section by offering a wide range of toys that includes soft toys, plastic construction toys, electronic toys, and board games to the public. It is evident that A-n-Y is a _____.
category killer
A famous musician sells the copyright of one of his songs to a record company for $2 million. In this scenario, the sale of the copyright of the song exemplifies the sale of a(n) _____.
intangible asset
A(n) _____ is a financial intermediary that specializes in helping firms raise financial capital by issuing securities in primary markets.
investment bank
David, the CEO of a beverage company, wants to understand the reason for the erratic performance of one of the company's products—Gizell, a health drink—over the past three years. For this, David scrutinizes the biquarterly sales records of Gizell and the annual profits that the company garners from its sales. In this scenario, David is trying to analyze Gizell's _____.
product life cycle
Streetlore, a footwear manufacturing company, makes business and casual shoes for both men and women. The company also makes school bags for children between the ages of five to ten years. The entire line of goods made by Streetlore represents the _____ of the company.
product mix
Information utility boosts customer satisfaction by providing helpful data.
true
The personal needs, the culture, and the family of an individual influence his or her ethical choices.
true
The fixed cost of Brendon Willows, a baseball bat manufacturing company, is $500,000 per year. The cost of wood and labor to manufacture one bat is $5. If the customers pay $25 to buy one bat, how many bats does Brendon Willows need to sell to breakeven?
25,000
Gratinut Entos, an automobile company, wants to launch a new model of bike that would appeal to young adults. The company issues its own formal IOUs to fund the project. Which of the following sources of long-term funds is being used by Gratinut Entos in the given scenario?
Corporate bonds
Merith Qin, a textile company, relies on self-funding in order to sustain the promotion of its new product in the market. The company sold its newly issued stock and was able to amass a sizable amount of money to invest. Which of the following sources of long-term funds is being used by Merith Qin in the given scenario?
Direct investments from owners
According to Maslow's hierarchy of needs theory, esteem needs refer to the need to realize one's fullest potential.
False
In the context of the free market system, which of the following market structures has a low barrier to entry?
In the context of the free market system, which of the following market structures has a low barrier to entry?
The _____ is an organization of 188 member nations that promotes global economic cooperation and stable growth.
International Monetary Fund
In the context of primary research tools, which of the following is an advantage of observation research over survey research?
It allows you to notice what people actually do and not what they say they do.
In the context of nonverbal communication, leaning forward during a conversation is considered a sign of interest.
It demonstrates negative age bias toward old people.
In the context of the fundamental rights of capitalism, which of the following statements is true about capitalism?
It doesn't guarantee that anyone will actually earn profits.
Aiden Brent, an international tennis player, owns a multinational chain of sports shops named Brent Deuce. The company is popular and gets the attention of sports enthusiasts because of its brand name and ownership. Which of the following marketing strategies does this scenario best illustrate?
People marketing
Which of the following is the main reason for private placements being less expensive than public offerings?
Privately placed securities are exempt from the requirement to register with the Securities and Exchange Commission.
Which of the following exemplifies a discontinuous innovation?
Shinzen Labs, a food analysis and research laboratory, develops a food packaging material that repels bugs and rodents.
Which of the following is true of balance sheets?
The balance sheets of different firms vary in specifics.
Which of the following statements is true of cloud computing applications?
They are green and require less capital.
Which of the following is true of current assets?
They are resources that a firm expects to use up within a year.
A marketing plan is a formal document that defines marketing objectives and the specific strategies for achieving those objectives.
True
In the context of nonverbal communication, leaning forward during a conversation is considered a sign of interest.
True
In the context of the strategies for reaching global markets, franchising is a strategy to seek foreign suppliers.
True
Which of the following is a difference between credit unions and commercial banks?
Unlike commercial banks, credit unions are not-for-profit organizations.
Which of the following practices is most likely to strike the right tone in a business message?
Using common words
In a business presentation, which of the following actions is likely to increase your credibility and persuasiveness?
Using expert quotations during the presentation
Trotin Langdon Corp., a leading car dealer, operates in many countries. The company has a clearly written mandate for all its contractors abroad. According to this, all contractors must ensure that standardized safety measures are implemented in their factories and workers are made to work only for nine hours a day. In this scenario, Trotin Langdon Corp. has set _____ for its vendors.
a code of conduct
Machvile Corporation, a robotics company, decides to acquire Chancera Inc., a start-up company that operates within the same industry. To better assess its decision, the management of Machvile Corporation needs to find out the value of Chancera Inc.'s total assets. The management has information regarding Chancera Inc.'s liabilities and stockholders' equity. In this scenario, the management should most likely use the _____ to get the required information.
accounting equation
Brentia, an East Asian country, exported goods worth $50 million and imported goods worth $5 million in the last fiscal year. It also provided a loan of $25 million to another country. In this scenario, Brentia most likely had a _____ in the last fiscal year.
balance of payments surplus
In the fiscal year 2015-2016, Nescarto, an African country, imported goods worth $18 million and exported goods worth $20 million. It also borrowed $40 million from other countries. In this scenario, Nescarto had a _____ during 2015-2016.
balance of payments surplus
In 1982, the total expenditure of the government of Kargenia, a European country, exceeded its revenue by a substantial amount. This forced the government of Kargenia to borrow funds to meet its legal obligations. In this scenario, the government of Kargenia incurred a _____ in 1982.
budget deficit
The _____ of a firm combines the revenue projections from the firm's sales budget and the cost projections from the firm's other operating budgets to present a forecast of expected net income.
budgeted income statement
Emma owns a bakery in Michigan. To save time, she buys ready-made edible cake decorations from a vendor in Wisconsin. This scenario exemplifies the purchase of a _____.
business product
The economic system of the United States is called _____.
capitalism
Angorasia, an Asian country, supports a free market system. The flexible economy of the country makes it fairly easy for new sellers to enter the market, which in turn gives buyers a variety of choices in terms of products and services. Given this information, it can be said that Angorasia supports _____.
consumerism
Quinbeck Inc., a computer manufacturing company, annually donates 6% of its total profits to an orphanage. The company also provides free personal computers to children to promote learning among them. Given this information, Quinbeck Inc. most likely engages in _____.
corporate philanthropy
Costs are deducted from revenue in several stages to show how net income is determined. The first step in this process is to deduct:
costs of goods sold.
In the context of the calculation of the net income of a firm, the final step of the process comprises:
deducting the firm's interest expenses and taxes from its net operating income.
Bolve Technologies is a small-scale smartphone manufacturer. It advertises its phones via television commercials. Customers can buy these phones only by placing a call to the sales reps of Bolve Technologies. It is evident that Bolve Technologies is engaged in _____.
direct response retailing
Rolliand Bank is going through a financial crisis. Therefore, it takes a loan from the Federal Reserve. The bank has to repay the loan within a year, and it also has to pay a monthly interest of 6% to the Fed. In this case, the 6% interest rate that the Fed charges from Rolliand Bank is the _____.
discount rate
In the context of marketing strategies and tactics, _____ includes marketing—or sponsoring—athletic, cultural, or charitable functions.
event marketing
The rationale behind why the Glass-Steagall Act mandated the ban on commercial banks from dealing in securities markets and selling insurance was that such activities:
exposed banks and their depositors to higher levels of risk.
A budgeted income statement is a projected financial statement that forecasts the types and amounts of assets a firm will need to implement its future plans and how the firm will finance those assets.
false
Financial managers should focus solely on meeting the financial needs of their firms in the short run, leaving the long-term financial issues to the top management.
false
In the context of monetary policy, when the economy contracts, the Fed typically decreases the money supply.
false
Markets that transfer funds from savers to borrowers are referred to as _____.
financial markets
Tanya Williams, the chief executive officer of Willister Computers, believes that the firm is currently best equipped to enter the market of Troyesna, a fast-developing country. The firm offers a small-scale producer in Tryoesna the right to produce and market its goods based on a set of specific operating functions and requirements. This scenario of Willister Computers illustrates _____.
foreign franchising
In the context of business product categories, the marketing of _____ emphasizes personal selling and customization.
installations
One of the benefits of licensing is:
instant name recognition.
Futures Life Insurance is an insurance company in South Africa. The insurance company uses its large pool of financial capital, which it accumulates by collecting premiums from its policyholders, to purchase corporate stocks of different multinational companies. In this scenario, Futures Life Insurance is a(n) _____.
institutional investor
Which of the following modes of transportation provides the lowest flexibility in handling?
pipelines
In an effort to expand its business, music retailer Musow offers DVD rentals online. In order to understand the trends in consumer interest, Musow has decided to evaluate data of the hyperlinks that customers click when they visit its website. This is an example of how a company can obtain _____.
primary data
Rudolf, a Polish manager in a company based in China, is admired by his colleagues for the way he interacts with people, his considerate nature, and his tolerance toward other cultures. In the context of universal ethical standards, Rudolf possesses the core value of _____.
respect
One of the major sources of equity financing for corporations is _____.
retained earnings
Since common stockholders are the true owners, preferred stockholders' dividends are deducted from net income before computing _____.
return-on-equity
The trade union members of a wool manufacturing company are the company's _____.
stakeholders
Grisham is the financial manager of Plink Inc., an electronics company. He invests a major portion of the company's profit in his business. He believes that money has the potential to grow in value over a certain period, which is why he prefers to receive and invest an amount of money today rather than in the future. In this scenario, Grisham is most likely to be influenced by _____ while utilizing the finances of the company.
time value of money
The term _____ refers to the shortfall that occurs when the total value of a nation's imports is higher than the total value of its exports.
trade deficit
In the context of marketing research, secondary data is existing data that marketers gather or purchase for a research project.
true
Which of the following is a duty of a socially responsible organization toward its customers?
Following laws that prevent anticompetitive behavior such as predatory pricing
In the context of emerging promotional tools, which of the following is a popular term for buzz marketing?
Viral marketing
Newzon Coal Supply takes possession of coal from local mining companies. However, it does not store a single ounce of coal on its premises. Instead, it simply arranges for the coal to be shipped directly from the mining companies to their customers. This type of arrangement suggests that Newzon Coal Supply is a _____.
drop shipper
Crola, a cell phone manufacturing company, adds a new in-built feature to its cell phones. With the help of this feature, users can now recall messages that they may have accidentally sent to another person. To make use of this feature, the users need to go to the settings of the cell phone and make a few changes. The change made by Crola in its product is an example of a _____.
dynamically continuous innovation
Ethan, an employee in a corporate company, is asked to do a systematic evaluation of the company's adherence to its social and ethical standards. In this case, Ethan should first:
establish the ethics and social responsibility goals that the company seeks to achieve.
In the context of nonstore retailers, vending machines are a key element of multilevel marketing.
false
Reserve requirement is a rule of the Fed which requires that all of its member banks hold funds which are more than the stated percentage of the deposits held by their customers.
false
Studies suggest that three days after a presentation, people retain more from an oral presentation than from a visual presentation.
false
Lionel is one of the project leads in a multinational company. He assigns new projects to his team members and sets the objectives and targets that they need to achieve. However, Lionel does not intervene in their work methods; he is only concerned about the end result. The information given in the scenario indicates that Lionel is a(n) _____.
free-rein leader
Jonathan is a common stockholder in an information technology firm. Owing to his right to a residual claim on assets, he is entitled to receive a share in the proceeds of the company that is proportionate to his ownership if the company:
goes out of business.
Luke works in an accounting firm that offers services such as tax preparation and external auditing to corporate companies. Luke is currently providing consultation to a client that deals in automobile parts. In this scenario, Luke is most likely a:
public accountant.
David is the chief executive officer of Grand Rocks Mining Company. He has convinced the company's board of directors to implement a change in the mining procedure. According to the new procedure suggested by David, less resources will be exhausted. This will ensure that the ability of future generations to meet their needs is not harmed because of shortage of natural resources. By agreeing to David's suggestion, Grand Rocks has embraced the idea of _____.
sustainable development
