BUS 1000 Part 1

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Benefits of technological changes

1. lower costs and improved productivity, security, and communications 2. allows us for telecommuting and teleconferencing

Types of economic systems

1. planned (or controlled) economies 2. Free market economies 3. Mixed economies

Advantages of cost-based pricing

1. Easy to calculate and administer 2. Requires minimum information

Example of equipment

1. Factories 2. Warehouses 3. Office buildings 4. Heavy equipment 5. Computers 6. Printers 7. Copiers

Marketing strategy

1. Target market 2. Marketing mix

Example of advertising-based models

Ads on Yahoo!

Manufacturer's brand (national brands)

Brand created by producers

Example of transnational strategy

Coca Cola and Dell sell the same product but change the packaging depending on the country

Products of Production Era

Model T Ford

Job description

a formal statement that summarizes what the employee will do in that role, defines job objectives, job responsibilities, and conditions of the job

Example of exchange through intermediary

eBay

Operational requirements of a partnership

minimal legal requirements

Compensation

payment for work performed

If Ecuador has a dispute with France over the importation of bananas, from which agency can Ecuador seek arbitration? a. NAFTA b. APEC c. ASEAN d. WTO e. GATT

d. WTO

Maslow's hierarchy of needs a. is a theory of why people are motivated b. uses three factors to compute the motivation of a person in a situation c. was developed to address the Hawthorne effect d. was displaced when Theory Z was introduced

d. was displaced when Theory Z was introduced

Patricia often acts without thinking of the consequences. She usually comes home late and even skips her turn to do household chores. When someone asks her if she thinks what she does is right or wrong, she says she doesn't really know and she doesn't really care. Patricia's behavior can be classified as ________. a. moral b. unethical c. ethical d. Judeo-Christian e. amoral

e. amoral

Sites like Kickstarter and Indiegogo have popularized a type of start-up financing known as ________, in which entrepreneurs post a detailed explanation of their projects or businesses on the site and ask for financing. a. small business grants b. angel investment c. venture capital d. bootstrap financing e. crowdfunding

e. crowdfunding

Labor is a factor of production that refers to any physical or ________ work people contribute to a business's production. a. technology b. unionized c. entrepreneurial d. emotional e. intellectual

e. intellectual

Jason puts in long hours finalizing his presentation because he takes a great deal of satisfaction knowing that he has done his best work. In this​ case, Jason is motivated by​ _________. a. physiological needs b. hygiene factors c. extrinsic motivators d. instrumentality e. intrinsic motivators

e. intrinsic motivators

Which of the following refers to an interconnected system of different demographic factors? a. economic environment b. social networking c. political environment d. cultural environment e. social environment

e. social environment

Emma bought an MP3 player and a portable DVD player. These products are called goods because ________. a. they are good at increasing a company's profit margin b. they are produce in an economical offshore factory c. they can be sold either in a store or online d. they do a good job of satisfying a customer's need e. they are physical or tangible products

e. they are physical or tangible products

Socioeconomic factors that must be considered by international companies include all of the following EXCEPT _________. a. cultural behaviors b. income distribution c. birthrates d. ethnicity e. unit labor cost

e. unit labor cost

A(n)_________ organization consolidates decision making in the hands of a few people. a. horizontal b. flat c. circular d. inverted e. vertical

e. vertical

What are the layers of money supply?

1. M-1 2. M-2 3. M-3

Measurable

Able to be measured, quantifiable

Example of compensation

Direct financial payments, salaries, wages

Corporate culture is the set of sports and extracurricular activities promoted at work True or False

False

Which step of new product development do companies skip sometimes?

Market Testing

Examples of network organizations

Reebok and Nike

Product line length

The number of items in any given product line

Job specifications

The skills, education, experience, and personal attributes that candidates need to possess to successfully fulfill the role

Ethics is the study of the general nature of morals and the specific moral choices a person makes True or False

True

Example of a vertical merger

Walt Disney and Pixar or eBay and PayPal

Example of intrapreneurs

Whirlpool encourages employees to create ideas for the company

personal ethics

a set of principles that guide the decisions you make in your life

depression

a severe or long recession

_________ plans depend on daily or weekly schedules and focus on specific departments or employees. a. Operational b. Tactical c. Strategic d. Contingency e. Vision

a. Operational

Stephanie and Nicole are two​ fashion-conscious friends who decide to open a clothing store. They each contribute capital and share the running of the business. Which term best describes their business​ relationship? a. Partners b. Employer and employee c. Owner and investor d. Cooperative e. Stockholders

a. Partners

whistle blower

an employee who reports misconduct most often to an authority outside of the firm

domestic partner benefits

benefits provided to an employee's unmarried partner

work/life benefits

benefits that help an employee achieve a balance between the demands of life both inside and outside the workplace

What is an example of market economy?

captialism

marketing objective

clearly stated goal to be achieved through marketing activities

In small companies, officer positions must be...

combined

bonuses

compensation based on total corporate profits

To make good decisions a manager must have...

conceptual skills

A business owner has no control or even input into your...

conduct outside the office

Venture capitalists

contribute money to a business in return for some form of equity

government spending...

creates jobs and helps the economy

Playground design

creating a "safe" space to bring out ideas that normally one might just keep to himself or herself

A country's launching of a government-owned telecommunications satellite is an example of investing in ________. a. Private Capital b. Entrepreneurialism c. Natural Resources d. Infrastructure e. Labor

d. Infrastructure

Which of the following is an advantage to starting a business? a. Lower stress level b. Avoidance of unpleasant work tasks c. Financial security d. Opportunity to gain an understanding of all aspects of a business

d. Opportunity to gain an understanding of all aspects of a business

positive psychology

research that suggests that happiness itself is a result of living ethically

Unemployment

seeking income due to job loss

money supply

the combined amount of money available within an economy

Information Technology (IT)

the design and implementation of computer-based information systems

objectives

the short-term targets that are designed to help achieve these goals

Bundling

two or more products that usually complement one another are combined and sold at a single price

Example of peer-to-peer exchange

music files

stockholders

people who own stock in a company

Elton Mayo studied

physical influences on the workplace as well as psychological aspects

When the supply curve shifts to the right it has a...

positive impact

Data mining

process of exploring and analyzing the data mart to uncover the relationships and patterns that will help a business

Instrumentality

refers to the idea that the outcome of a situation is related to rewards/punishment

Intellectual property

refers to the ownership of ideas and creative works in form of patents, copyrights, and trademarks

Real capitol

refers to the physical facilities used to produce goods/services

Virtual teams need to do what to be successful?

1. Need to meet face-to-face 2. Set standards for communication (need to respond in 2 hours)

Extending

Extends the capabilities of those working to achieve goals

product

good or service

local business

usually one of a kind, serves a limited surrounding area

Example of population changes

increase of young people= more coffee

Once long-term goals and objectives have been determined, middle management generates ________. a. tactical plans b. resource evaluations c. incentive programs d. abstract aims e. strategic plans

a. tactical plans

Which of the following is NOT a part of a typical management development program? a. job rotation b. workforce profiles c. coaching program d. understudy program e. action learning

b. workforce profiles

_________ is the process of performing research and analysis of a business to uncover any hidden problems associated with it. a. Risk auditing b. Business assessment c. Demographic surveying d. Due diligence e. Valuation

d. Due diligence

Which of the following is among the disadvantages of small business ownership? a. Steep learning curve b. Family values c. Lifestyle uncertainty d. Heavy time commitment

d. Heavy time commitment

​_______ skills enable a manager to solve​ problems, formulate​ processes, and understand the relationship between​ ideas, concepts,​ patterns, and symbols. a. ​Decision-making b. Technical c. Manual d. Interpersonal e. Conceptual

e. Conceptual

Apple's selling iPhones to customers in Africa, Asia, and Europe is an example of the globalization of ________. a. offshoring b. Manufacturing c. Outsourcing d. Production e. Markets

e. Markets

Globalization is a controversial subject for many people because__________. a. it allows U.S companies to import and export goods from anywhere in the world b. it increases the cost of goods and services in the United States c. it stabilizes the value of the U.S dollar d. it allows companies of any size to compete globally e. it results in the closing of some U.S manufacturing facilities

e. it results in the closing of some U.S manufacturing facilities

complementary goods

products or services that go with each other

Taxation of an S corporation

profits and losses pass through owner's personal tax return

Crowdsourcing

refers to the practice of using information solicited on social media to make decisions

Ethics

refers to the study of the general nature of morals and of specific moral choices a person makes

coincident indicators

statistics that reflect how the economy is currently doing

job rotation

the employee rotates through different departments to learn firsthand the various aspects of the business

Companies document their philosophies through:

1. code of ethics 2. mission statement

Which of the following is an example of a real capitol? a. personal savings b. a manufacturing plant c. computer software d. natural gas e. a business loan

b. a manufacturing plant

Which of the following has reduced as a result of globalization? a. Volume of goods and services crossing national borders b. Foreign exchange transaction c. Procuring product inputs from all over the world d. Differences in material culture between national economies e. Deregulation of markets

d. Differences in material culture between national economies

first-line managers

people who directly supervise lower-level employees, help run the business

B2B market structure

1. Few customers 2. Large-volume purchases 3. Geographically concentrated

Successful entrepreneurs are:

1. Innovative 2. Risktakers 3. Motivated to succeed 4. Flexible and self-directed 5. Good with people 6. System thinkers

Planning includes...

1. Setting goals 2. Developing strategies 3. Determining resources

Conduct market research and develop a marketing plan

Conduct research on profitability of a potential business

Sweden, with its high taxes and widespread government programs, is a good example of a market economy. True or False

False

The CIO is the director of IT and reports to the CFO True or False

False

The M-1 money supply measure consists of currency, traveler's checks, and checking accounts. True or False

False

The Six Sigma initiative is focused on improving communication True or False

False

Non-profit and public service advertising

Focuses on promoting organizations

Price of substitute goods

If there are other equally comparable goods that are available at a lower price, the supply of goods will be affected

cause and effect diagram (fishbone diagram)

Illustrates all of the contributing factors in the product design that might lead to faulty production

Example of point of purchase displays

Items by the cash stand

Responsibilities of each partner

Outline the responsibilities of each partner from the beginning to reduce potential conflicts, unless otherwise specified any partner can bind the partnership to any debt or contract without the consent of the other partners

Example of synergy

Pfizer acquired Wyeth so that they could have Wyeth's new vaccines and biotechnology medicines

Example of lifestyle entrepreneurs

RV Water Filter Store, allows owner to travel the world

Promotional mix

The strategic combination of promotional tools used to reach targeted customers to achieve marketing objectives

An agreement in which a domestic company's intangible property may be sold or made available to a foreign company in exchange for a royalty fee is called a ________. a. License b. Turnkey Project c. Franchise d. Strategic Alliance e. Wholly-Owned Subsidiary

a. License

supply

availability of that item

Period of existence of an S corporation

separate entity; existence not dependent on owners, founds; ownership transferred easily

CRM cycle

1. Marketing 2. Sales 3. Feedback 4. Support 5. Repeat

types of economic indicators

1. leading indicators 2. coincident indicators 3. lagging indicators

Manufacturer's agents

Represent two or more manufacturers through contracts and work to sell their products

Direction sharing

Communicating an organization's higher-level goals, such as vision, mission, values, and strategy

Price leader

When a firm charges a different price and all other firms will follow

ethnocentrism

a belief that one's own culture is superior to all other cultures (disaster when doing international business)

mixed economies

a blend of market and planned economies

Example of changes in income levels

a job loss, tuition increase, promotion

Economic conditions of other countries can

effect the U.S

technical standard/bureaucratic rule

effectively shutting out the import from a domestic market

safety and security

safe and stable place to live and work

Threat of retaliation argument (bargaining chip)

says that if a trading partner increases its trade barriers on your exports, or fails to reduce trade barriers as you reduce yours, than an uneven, unfair playing field is created

situational ethics

is based on the idea that people make decisions based on specific situation instead of universal laws

All of the following statements concerning limited liability companies​ (LLCs) are true​ EXCEPT: a. They can continue operating if an owner dies. b. They issue stock. c. They are not required to have as many meetings as C corporations. d. They are an attractive company type for new and small businesses. e. They are not subject to double taxation.

b. They issue stock.

Social media monitoring

keeping watch on the external messages and information being spread about their products in cyberspace

The U.S economy is the

largest economy

Taken together, the iPod and iTunes are_________. a. substitute goods b. complementary goods c. competitive goods d. monopolistic goods e. intangible goods

b. complementary goods

Which type of plan is designed to keep an organization running in the event of a disruption? a. tactical b. contingency c. strategic d. operational e. time-management

b. contingency

Goods are products a business sells like a. haircuts b. conveyor belts c. car insurance d. health care

b. conveyor belts

Example of data

number, word, image/sound

Shareholders

owners of the company

picket

parade in front of the employer's business carrying signs about the dispute

Which of the following should a business owner create monthly? a. marketing plans b. financial statements and budgets c. mission statement d. risk analysis e. operational plans

b. financial statements and budgets

Which is not an example of secondary data? a. Census data b. Customer feedback on Twitter c. Focus group results d. Data collected from company sales report

c. Focus group results

Which theory best describes the phenomenon that employee motivation and productivity are positively impacted by attention and​ recognition? a. ​Time-motion studies b. ​Motivator-hygiene theory c. The Hawthorne effect d. ​Maslow's hierarchy of needs e. Theory Y

c. The Hawthorne effect

Growth entrepreneurs

strive to create fast-growing businesses and look forward to expansion (aka gazelle business)

incentive-based payment

structure that has a lower base salary enhanced with commissions

Data marts

subsets created to isolate one product or department in a data warehouse

Risktakers

take calculated risks, considering the likelihood of success before deciding whether to take a personal risk

Tariffs

taxes imposed on imported goods or services

hostile takeovers are caused by

tender offer

Product differentiation

the creation of real or perceived product differences

General partnership

the default arrangement for a partnership and is the simplest partnership to form

identity theft

the illegal gain and use of personal information

Valence

the importance that the individual places on the expected outcome of a situation

federal funds rate

the interest rate banks charge other banks when they borrow funds overnight from one another

the number of substitutes for a certain good or service determines...

the level of competition

market

the mechanism by which buyers and sellers exchange goods and services

Which of the following statements is NOT true of a market economy? a. The pricing of goods is determined by what sellers wish to charge and buyers wish to pay. b. The government may supply some goods or services. c. The economy is defined by a freedom of choice for both buyers and sellers d. The system encourages private ownership of resources. e. The individual makes his or her own economic decisions.

c. The economy is defined by a freedom of choice for both buyers and sellers

In a business environment, the term "minority" applies to more than just people of different ethnicities. Minority groups represent all of the following EXCEPT___________. a. a person's culture b. a person's sexual orientation c. a person's political party d. a person's disability e. a person's gender

c. a person's political party

Donald was just assigned supervisory responsibilities for two problem employees. Donald tends to use tight controls and closely monitors employees' work. He believes threats are the best motivation tool out there. Which of the following best describes Donald's leadership style? a. visionary b. democratic c. autocratic d. affiliative e. laissez-faire

c. autocratic

Branding benefits__________. a. only sellers b. only resellers c. both buyers and sellers d. only buyers e. neither buyers nor sellers

c. both buyers and sellers

Profit

when a company's revenue is greater than its expenses

A downward moving GDP indicates that _____. a. the number of unemployed people is decreasing b. more goods and services are being produced and sold c. fewer goods and services are being produced and sold d. the number of products created in a country by non-domestic companies is increased e. businesses are doing well

c. fewer goods and services are being produced and sold

The following are all functions of a chief information officer (CIO) EXCEPT ____________. a. processing information b. balancing the benefits of technology against the costs c. overseeing the accounting office d. creating business opportunities e. updating computer systems

c. overseeing the accounting office

To understand where _____ businesses are concentrated, you need to divide them into the goods-producing sector and the service-producing sector. a. innovative b. profitable c. small d. struggling

c. small

Unethical behavior is defined as behavior that does not conform to a set of approved standards of ________ behavior. a. amoral b. diplomatic c. social d. international e. religious

c. social

Which of the following is an example of a situational factor that could affect a consumer's buying decision? a. the buyer's social class b. the buyer's motivations c. the layout of the store d. the price of a product e. the status implication of a product

c. the layout of the store

The discount rate is what is charged when banks borrow emergency funds from each other. True or False

False

Job sharing

In this arrangement two employees work part-time sharing one full-time job

Characteristics of theory z

1. Collaborative decision making 2. Generalized skills 3. Long-term employment- workers are cooperative and loyal to the organization

Agents/brokers

Intermediaries that facilitate negotiations between buyers and sellers of goods and services but never take title (ownership) of the products traded

Goods and services included in CPI:

1. Apparel 2. Education and communication 3. Food and beverages 4. Housing 5. Medical care 6. Recreation 7. Transportation 8. Other goods and services

Knowledge workers value 3 things higher than money:

1. Autonomy 2. Mastery 3. Purpose

B2B Classifications

1. Equipment 2. Maintenance, repair, operating (MRO) products 3. Raw and processed materials 4. Component parts 5. Specialized professional services

balance of payments (BOP)

Summarizes all of the transactions, payments, financial aid, and gifts that take place between residents of a country and the external world.

Augmented product

consists of the core product and the actual product plus other real or perceived benefits that provide additional value to a customer's purchase

It takes ______ to _______ years for new businesses to become profitable.

3, 5

Component parts

Assembled portions of the finished product

Products of Societal Marketing Era

Body Shop, Starbucks

Decline stage example

Cassette tapes replaced vinyls completely

Example of B2B advertising

Caterpillar the earth-moving equipment company advertises to construction companies

Price discrimination

Charging different prices to different customers

Expectancy

The idea that a person's effort has an appreciable effect on a situation's result

Idea Generation

1. Brainstorm new product ideas 2. Think of ways to improve an existing product

Promotion

1. Inform and persuade customers to buy 2. Build positive customer relationships

Example of fee-based models

Consumer Reports

Example of social entrepreneurs

Delaney Street Foundation educate substance abusers, former felons, and homeless so they can be productive

Not all businesses provide a product. True or False

False

Wholesalers

Intermediaries that buy and resell products to other wholesalers, retailers, and industrial uses

Chief Operating Officer (COO)

Manages day-to-day activities and reports them to the CEO

Cent-off deals

Offers a brand at a lower price

Example of retail advertising

Plato's Closet

Example of advocacy advertising

Political campaigns

Example of infomercials

QVC

How does social media help businesses?

Social media builds and supports relationships with customers

Culture

The set of learned attitudes, beliefs, and ways of life that are unique to a society and handed down from generation to generation

Why do businesses have diversity programs?

To include minorities and to ensure all employees are treated the same

unemployment rate

a lagging indicator that measures the number of workers who are at least 16 years old who are not working but have tried to find jobs within the past 4 weeks

Identifying the internal strengths and weaknesses as well as the opportunities and threats found in the external environment with regard to the marketing functions of an organization is known as a. A situational analysis b. A SWOT analysis c. A marketing analysis d. A competitive analysis

a. A situational analysis

Employee stock purchase plan

allow employees to purchase company stock at a discount (usually 85% of market value)

Community-based models

allow users with similar interests to interact with each other worldwide

The mission statement for a company is MOST likely to appear on _________. a. internal memos b. advertising materials c. company stationery d. sales contracts e. inner-office emails

b. advertising materials

example of duopoly

coke and pepsi

Many e-commerce businesses failed in the late 1990's because_________. a. their online stores were a source of identity fraud b. they were owned by young entrepreneurs c. there was an economic decline called the "dot-com bust" d. they did not plan for rapid growth and lacked sufficient inventory to fulfill others e. they had too many other online competitors

d. they did not plan for rapid growth and lacked sufficient inventory to fulfill others

Information

data that have been organized in a way that makes them useful

mission statement

defines the core purpose of the organization, describes its values, goods, and aspirations; reflects the personality of the company

Mae's oven bakes 50 cinnamon rolls an hour. She bakes 200 cinnamon rolls a day. The cost of power running her oven each day is $30. Mae has decided that she would like to bake the same amount of cinnamon rolls in less time in order to save on energy costs. What should she do? a. Increase efficiency by beginning her baking operations earlier in the day. b. Increase her customer base by advertising on popular local food blogs. c. Manage competition by baking muffins as well as cinnamon rolls. d. Increase profitability by charging more money per cinnamon roll. e. Increase productivity by baking more cinnamon rolls per hour.

e. Increase productivity by baking more cinnamon rolls per hour.

Which is NOT a primary function of management? a. planning b. organizing c. leading d. monitoring e. marketing

e. marketing

orientation includes

employee, responsibilities, breaks and lunch periods, reporting illness/emergency, schedules

Resource investigator

extroverted and communicative

love and belonging

feeling accepted by others

Mastery

feeling skilled and having time to develop and improve their skills

Raising capital of a sole proprietorship

funding mostly derived from owner; outside funding difficult to obtain

vision

identifies what the business wants to be in the future

marketing

identifying and meeting human needs and wants

Sherman Antitrust Act

illegal act of a company becoming a monopoly

trade barriers

increases costs to foreign companies or restrict the supply of imports, driving up prices and reducing sales in the domestic market

Intrinsic motivators

internal motivating factors that managers cannot control

Lifestyle entrepreneurs

look for a certain lifestyle when they begin their business, such as freedom from corporate bureaucracy, the opportunity to work at home, or flexibility in work hours or travel schedules.

Flexible and self-directed

make their own decisions and react quickly to new situations

Age Discrimination in Employment Act

makes it unlawful to discriminate against a person because of his or her age with respect to employment

Managers use performance appraisal for...

making decisions about promotion, raises, additional training, or reassignments

Management of a limited-liability company (LLC)

management details are described in an operating agreement

Operational requirements of a sole proprietorship

minimal legal requirements

When the supply curve shifts to the left it has a...

negative impact

collective bargaining process

negotiating with the employer for better work conditions and terms of employment

Preliminary paperwork of a sole proprietorship

no special forms required

preliminary paperwork of a partnership

no special forms required; partnership agreement recommended

subsidy

opposite of tariffs, government makes payments to domestic producers

teleconferencing

prevents unnecessary travel expenses

Free trade

refers to the unencumbered flow of goods and services across national borders

self-actualize

self-fulfillment, creativity, beauty

organization chart

shows how groups of employees fit into the larger organization structure

Flexibility

smaller businesses can work better with individuals

Online Analysis Package (OLAP)

software application that enables very quick analysis of combinations of different business factors

affirmative action

strategy to increase the number of women and minorities to improve competitiveness

Technical skills

the ability to apply specialized knowledge or expertise

Emotional intelligence

the ability to understand both one's own and other's emotions

macroeconomics

the study of the behavior of the overall economy

strike

union workers may vote to agree to stop working

Liability of a sole proprietorship

unlimited liability

liability of a partnership

unlimited liability

Consequences of purchase

unscrupulous marketing, may take advantage of less sophisticated members of society

Big data analysis

use of large data sets and special software tools that can extract information

What is the difference between a vision and a mission statement?

vision are long-term goals and is directed to employees; a mission is current goals, directed to consumers, used on goals and products

Purpose

wanting their lives and work to have higher meaning

corporate philanthropy

when companies donate some of their profits or resources to charitable organizations

offshoring

when companies relocate production facilities overseas or subcontracting some components of their products to foreign countries for lower costs

Example of ownership utility

when customer buys swimsuit from store

telecommute

work from a location away from the office

Consumer behavior helps marketers

1. Select the most profitable target markets 2. Implement the marketing mix

Disadvantages of wholly owned subsidiary

1. risks and costs of entering a foreign market

What are some popular personality assessments?

Big Five, Cattell 16 PF, Thematic Apperception Test

M-3

M-2, larger CDs and larger money market accounts held by large corporations

Example of interactive advertising

Video catalogs on the Internet and kiosks in the mall

Form utility refers to ________. a. a product produced from raw materials that pleases the customer b. stocking and displaying products c. the means of ordering products d. the interesting features of a particular brand's product e. the benefits of practically when a product can be used with no assembly required

a. a product produced from raw materials that pleases the customer

Example of dynamic pricing

auctions

Which of the following is not a reason that many business fail? a. They grow too rapidly b. They focus on the customer rather than their product or service c. The owners lack managerial experience d. They run into cash flow problems

b. They focus on the customer rather than their product or service

Which of the following would MOST likely happen to companies that are less efficient than their competitors? a. They would become a target for hostile takeover b. They would be taken over by the government c. They would close down d. They would continue to do business as usual e. They would receive additional money from investors

c. They would close down

Which of the following is the most important question you need to ask yourself when you're thinking about starting a business? a. Do I want to buy an existing business? b. Can I manage a business by myself? c. What will customers want to buy? d. Where will the startup funds come from?

c. What will customers want to buy?

Veronica is reentering the workforce after years away caring for her elderly parents. She is making many assumptions about today's workplace. Which of Veronica's assumption is FALSE? a. The number of women in the workplace is growing b. Women receive fewer promotions than their male counterparts c. Women receive pay equal to their male counterparts d. Women battle sexism in the workplace e. Women may face sexual harassment in the workplace

c. Women receive pay equal to their male counterparts

Specific

clearly defined or identified

departmentalization

consists of the decisions made to structure the company

supply-and-demand curve

graph illustrates market price

Example of small businesses helping consumers

hair-salons, landscapers, and dry cleaners (deliver services big companies are not willing to provide)

self-esteem

recognition, respect

social audit

reports how well a company is meeting its social responsibilities and is usually conducted by a third party

Americans with Disabilities Act (ADA)

requires companies to make reasonable accommodations to the known disabilities of an applicant or employee

Theory X (McGregor)

suggests humans inherently dislike work and want to avoid it

Software

tracks your personal information and passes it along to a third party

Example of high motivation

"My work actually affects the outcome", "There's a good chance I'll get a reward", "If it works out, it'll be a big reward"

Promotional Campaign Steps

1. Identify a target market 2. Define objectives 3. Determine a promotional budget 4. Develop a unifying message 5. Implement the plan 6. Evaluate effectiveness

Marketing fundamentals

1. Communicate society's needs 2. Establish pricing strategies 3. Promote products benefits 4. Distribute products 5. Establish meaningful relationships with customers

Factors to consider in a situational analysis

1. Company 2. Collaborators 3. Customers 4. Competitors 5. Climate

Types of advertising media

1. Direct mail 2. Television 3. Newspapers 4. Magazines 5. Radio 6. Internet 7. Outdoor media

Marketing Environment Influences

1. Competitive 2. Economic 3. Technological 4. Sociocultural environments 5. Global environments 6. Political environments 7. Regulatory environments

What skills do managers need to be successful?

1. Conceptual skills 2. Technical skills 3. Time management skills 4. Interpersonal skills 5. Decision-making skills

Closing the sale

1. Conduct physical purchase

Virtual teams use...

1. Conference calls 2. E-mail 3. Video conferencing 4. Live broadcasting 5. Web casts 6. Wikis

Aspects of diversity

1. Cultural diversity 2. Religion 3. Gender 4. Age

What are they key parts of human resource planning?

1. Determining the optimal number of employees a business needs 2. Clearly identifying the exact job positions and the requirements of those positions

Example private brand

1. DieHard batteries 2. Kenmore appliances 3. Craftsman Tools

Who measures CSR?

1. Boston College Center for Corporate Citizenship 2. Calvert Investment Company 3. Fortune's 10 Most Admired Companies

Example of component parts

1. Brakes 2. Engines 3. Transmissions 4. Steering columns 5. Lumber 6. Cement 7. Drywall 8. Electrical wire

Advantages of advertising

1. Builds brand awareness and brand loyalty 2. Reaches a mass audience

How does the Fed manage the country's money supply?

1. Changing certain interest rates 2. Buying and selling government securities 3. Trading in foreign exchange markets

Why do small businesses fail?

1. Accumulating too much debt, if the new business doesn't generate returns quickly enough they'll take out more loans 2. Inadequate management, includes poor financial, business management, and ignore signs of a business failing 3. Poor planning, one of the biggest reasons businesses fail 4. Unanticipated personal sacrifices

Racerback Swimwear, an Australian company, opens a factory near Tallahassee, Florida. The value of the swimsuits produced in the new Florida factory is included in which country's GDP? a. Australia b. United States c. Both Australia and the United States d. It is not included in the GDP at all

b. United States

Viral marketing can be prevented by using the proper spyware True or False

False

example of belief orgins

Family, religion, movies, personal experiences, people you admire

A band that markets several different products under the same brand name is a a. manufacturer's brand b. family brand c. private brand d. co-brand

b. family brand

marketing plan

A formal, written document that directs a company's activities for a specific period of time.

Trademark

A legally protected brand

Social media managers (social media marketing specialists)

A person in a position that is responsible for monitoring social networks and generating "buzz" on them about a company and its products

Example of form utility

A swimsuit is made from fabric and supplies

Strength-Based Management

A system based on the belief that, rather than improve weak skills, the best way to help employees develop is to determine their strengths and build on them

According to the theory of comparative advantage, if the United States and Mexico increase their trade with each other, the two countries will experience _____________standards of living. a. no change in b. higher c. rapidly decreasing d. slightly lower e. identical

b. higher

Order influences

Are not engaged in direct selling but target those who make the final decision

Example of create new use

Arm and Hammer baking soda as a refrigerator deodorizer

Example of lower the price

Automobile discounts, rebates, and low-interest loans

Producer -> Consumer distribution channel

Avon

The AFL-CIO, the UAW, and the Teamsters are examples of a. illegal organizations b. labor unions c. labor relations d. union locals

b. labor unions

Jackson Eats is a partnership owned by Jesse and Robert Jackson. They need additional capital to expand to a new location, so they decided to bring Sean, who will not only contribute some capital but will also manage the new restaurant. Sean would best be considered as a(n) a. general partner b. limited partner c. owner d. None of the above

b. limited partner

Family brand

Brand that markets several different products under the same brand name

When the supply curve and the demand curve for a single product or service are shown on the same graph, the point at which the curve intersect identifies the __________. a. total profit earned by the producers b. market price of a good c. quality of the good or service being purchased d. amount of the surplus to be anticipated e. number of substitute goods available

b. market price of a good

Chief Financial Officer (CFO)

Corporate officer who is responsible for all of the accounting and finance issues of the company.

What is an example of For-profit businesses

Cracker Barrel

Mobile advertising

Delivering advertising messages via mobile phones

Place utility

Delivering product where a customer wants it

Example of internet entrepreneur

Facebook, Amazon.com, eBay, Google, and Wikipedia

Mercosur

Free trade agreement between Brazil, Argentina, Paraguay, and Uruguay

Ownership utility

Freedom to use product as needed

Products of Sales Era

Fuller Brush, Electrolux (vacuum)

The lowering of trade barriers makes...

Global business much cheaper and easier

Example of generic brand

Great Value, Signature Select

Maturity stage example

In 1970's cassette tapes were popular making vinyls drop in sales

Example of Multidomestic Strategy

In Asian countries McDonalds offers seaweed flavored fries

Population changes

Increased population increases demand for utilities and public and consumer services; demographic changes such as the aging baby boomers also affect demand for certain goods.

Economic benefits of protectionism

Increased sales at higher prices improves the profitability of protected domestic companies, creating greater job security for their workers

Merchant wholesalers

Independently owned businesses that take ownership of the products they handle

Example of economic conditions of other countries

India and China growth increases the global demand for energy, which makes oil prices rise higher

hackers

Individuals who gain unauthorized access to your computer or computers that contain information about others.

Business to business products are also known as

Industrial products

Publicity

Information about an individual, organization, or product transmitted through mass media at no charge

W in SWOT

Internal weaknesses, lack of internal capability or expertise compared to the competition

The lowering of trade and investment barriers let's...

International firms move their production facilities to the location with the lowest cost for that activity and serves the world market from that location

A term that describes the movement of production away from a domestic production site to a foreign location is _________ outsourcing. a. domestic b. offshore c. production d. onshore e. in-house

b. offshore

Example of whistle blower

Jeffrey Wigand, vice president of a tobacco company who revealed on 60 minutes in 1996 that his company was manipulating the effect of nicotine in its cigarettes to promote addiction

Socially responsible investing (SRI) means that you are investing in a. companies making the largest gains in profit for the past three years b. only companies that meet a certain standard of CSR c. only non-profiting companies d. companies that sponsor food banks

b. only companies that meet a certain standard of CSR

CSR can be measured by a. a company's rate of growth b. organizations that monitor and rank performance on social issues c. the happiness level of employees in a company d. businesses that have high profit margins and gross sales

b. organizations that monitor and rank performance on social issues

The four primary processes of management are a. planning, optimizing, leading, and controlling b. organizing, controlling, planning, and leading c. prioritizing, leading, controlling, and organizing d. planning, leading, organizing, and deciding

b. organizing, controlling, planning, and leading

Producer -> Agent/Broker -> Wholesaler -> Retailer -> Consumer distribution channel

Levi's Jeans

Work flow, process control, and return an investment

Making sure an employee's measurable performance is linked to measurable goals of company

Alternative scheduling plans(flextime)

Management defines a total number of required hours as a core workday and is flexible with starting and ending times

If you want to start a new business, which of the following enterprises would be the best choice? a. Automobile manufacturer b. Aluminum processor c. Steel refinery d. Car dealership

d. Car dealership

Example of strategic alliances

Microsoft has an alliance with Japanese mobile phone manufacturer

Example of sovereign wealth funds (SWFs)

Norway, China, Saudi Arabia, and Singapore

Shares of profits or losses

Not only should the agreement specify how to divide profits and losses between partners, it should specify how frequent this will occur

What are examples of business-to-business?

Office Depot to Cracker Barrel

Coaching and support

Ongoing feedback and support for the employee

A​ locally-operated credit union is an example of a​ __________. a. ​not-for-profit business b. limited liability company c. sole proprietorship d. cooperative e. partnership

d. cooperative

The level of a product that satisfies the basic need or want that motivates a purchase is the a. total product offering b. augmented product c. actual product d. core product

d. core product

Demand-based pricing (value-based pricing)

Pricing a good or service based on the demand for the product or its perceived value

Example of mobile advertising

Qr codes and text messaging

Nutrition Labeling and Education Act of 1990

Requires all nutrient content claims and health claims to be consistent with agency regulations

Situational analysis

SWOT analysis but focuses only on marketing

Kris and Amy own a workout facility in which they are co-owners. Both take an active role in the management of the business and each accepts unlimited liability. Kris and Amy operate as a___________. a. dual proprietorship b. joint venture c. cooperative d. general partnership e. limited partnership

d. general partnership

Selling agents

Sell a manufacturer's entire product line through a contract

Wholesale merchants

Sell primarily to retailers

Retailers

Sell products directly to consumers

Industrial distributors

Sell to manufacturers and institutions such as hospitals and the government

What forms of business ownership cease after owners departure or death?

Sole proprietor, general partnership

Example of social media and mobile marketing

Sprinkles Cupcakes posts on Facebook for flavor ideas and for people to get free cupcakes

The _________ is the most widely used indicator of economic growth in the world today a. gross national product b. consumer price index c. producer price index d. gross domestic product e. unemployment rate

d. gross domestic product

Example of companies that started off as small businesses

Starbucks, Under Armour, and Amazon.com

SWOT stands for

Strengths, Weaknesses, Opportunity, Threats

The two functions of labels are to___________. a. protect the products and persuade b. facilitate use and be environmentally friendly c. entice and mislead d. inform and persuade e. inform and facilitate use

d. inform and persuade

A mini-multinational is a company that a. is small but still does international sales b. is a large international firm c. is a small local business d. is now illegal because of trade barriers

d. is now illegal because of trade barriers

A SWOT analysis is used to determine the strategic fit between an organization and its internal and external environments True or False

True

Growth stage example

Vinyl records grew rapidly in the 1950s through 1960s

Example of variable costs

Wages, raw materials, and energy costs

Example of O in SWOT

Walmart expands to new locations and new types of stores, take over or form alliances with other global retailers in Europe or China

Permanent part-time

Workers are hired on a permanent basis to work a part-time week (have same benefits as full-time employees)

Example of turnkey projects

Wuhan Urban traffic control system located in China is from German electronics

Green collar job

a job that contributes to improving the environment

Price elasticity

a measure of the sensitivity of demand to changes in price

economy

a system that tries to balance the available resources of a country, such as land, capital, and labor against the wants and needs of consumers

socialism

a system whereby the government owns or controls many basic businesses and services and the profits from them are distributed evenly among the people

Product life cycle

a theoretical model describing a product's sales and profits over the course of its lifetime

The cheap foreign labor argument for protectionism relates to ________. a. An undeveloped domestic industry's workers b. A lower wage often earned by many foreign workers c. An industry critical to national security being protected from foreign workers d. A trading partner increasing trade barriers on work done by citizens e. Selling a product at a price below the price charged in the producing country

b. A lower wage often earned by many foreign workers

The developing country of Alpha had a rule that none of its factories could be owned by companies from the developed country of Beta. If Alpha drops this rule, this would be an example of a(n) __________. a. Total Embargo b. Technological Innovation c. A decline in trade and investment barriers d. Offshore outsourcing e. An Increase in Tarrifs

c. A decline in trade and investment barriers

Period of existence of a limited-liability company (LLC)

ongoing existence is determined by requirements imposed by the state of formation; transferability is determined by the operating agreement

sustainability

the process of working to improve the quality of life in ways that simultaneously protect and enhance the Earth's life support systems

Production Era

-Industrial Revolution until 1920s -Limited supplies and strong demand -A good-quality product sold itself

Sales Era

-Mid 1920s to early 1950s -Limited supplies and strong demand -A good-quality product sold itself

Consumer sales promotion tools

1. Coupons 2. Rebates 3. Frequent-user incentives 4. Point of purchase displays 5. Free samples 6. Contests and sweepstakes 7. Giveaways

Price

1. Cover costs 2. Price competitively

Types of Entrepreneurs

1. Lifestyle entrepreneurs 2. Micropreneurs 3. Home-based 4. Internet entrepreneurs 5. Growth entrepreneurs 6. Intrapreneurs 7. Social entrepreneurs 8. Social intrapreneurs 9. Serial entrepreneurs 10. Entrepreneurial teams

The Fair Packaging and Labeling Act of 1966 requires companies to identify:

1. The product 2. The name and place of business of the manufacturer, packer, or distributor 3. The net quantity of the contents

External Recruiting Methods

1. Word-of-mouth referrals 2. Trade shows 3. Employment agencies 4. Headhunters 5. Newspapers 6. Industry-specific magazines 7. Hiring from competition 8. Virtual job markets 9. Internet job/networking sites 10. College career fairs/offices

Strategies for entering foreign markets

1. exporting 2. turnkey projects 3.franchising 4. licensing 5. joint ventures 6. strategic alliances 7. contract manufacturing 8. wholly-owned subsidiary

A mission statement...

1. helps management and employees remain focused 2. lets employees understand the core values of the company for which they work 3. reflects the personality of a company and can be different in design and content

Corporate culture

A collection of values, norms, and behavior shared by management and workers that defines the character of an organization

control chart

A graph that shows the average and fluctuations of a process being monitored to determine whether it is behaving within the limits of proper functioning

limited-liability company (LLC)

A hybrid form of business enterprise that offers the limited liability of the corporation but the tax advantages of a partnership.

What forms of business ownership require preliminary paperwork to startup?

C-corp, S-corp, LLC

Pricing strategy of monopolistically competitive markets

Charge higher prices, some firms may charge lower prices to create competition

Cost-based pricing (Cost-plus pricing)

Charging a price in relation to the costs of providing the good or service

Chief Executive Officer (CEO)

Corporate officer who has overall responsibility for managing the business and delegates responsibilities to other corporate officers.

Controlled messages

Corporate, advocacy, and public service advertising and corporate reports publishing

Example of cooperative

Costco, Sam's Club

Secondary data

Data that has already been collected and processed

Time utility

Delivering a product when a customer wants it

Niche approach

Designed to reach a small, specific audience

Breakeven analysis

Determines the production level for which total revenue is just enough to cover total costs

Internet advertising

Displays messages on websites as banner ads or pop-up videos

Point of purchase displays

Displays strategically located to draw attention and encourage impulse purchase

Pricing strategy of oligopolies

Do not compete on price to avoid price wars

A product is defined as any intangible good, service, or idea available for purchase. True or False

False

A product's packaging is used only to provide protection of the good's contents. True or False

False

Any business can elect to be an S corporation True or False

False

Any profits generated by a not-for-profit organization must be turned over to the government. True or False

False

Example of price-takers

Farmers have no control over the prices of their product

North American Free Trade Agreement (NAFTA)

Free trade agreement between Canada, Mexico, and the United States; Established on January 1, 1994; Quadrupled trade between the 3 countries ($19 million)

Pre-approach

Gathering information

What forms of business ownership may have an unlimited number of owners?

General partnership, C-corp, LLC

What forms of business ownership can report business profit and loss on their personal tax returns?

General partnership, S-corp, LLC

Example of home-based entrepreneurs

Goat Milk Stuff was launched to make all natural soap at home

Producer -> Retailer -> Consumer distribution channel

Goodyear

Example of product advertising

Gotham Steel

Example of specialized industry portals

Health care and real estate

Example of employee benefits

Health insurance, vacation, holiday, and sick-pay

Consumer sales promotions

Incentives designed to increase final consumer demand for a product

Preliminary paperwork of a corporation

Incorporation paperwork must be filed with state and federal agencies

Preliminary paperwork of an S corporation

Incorporation paperwork must be filed with state and federal agencies

S in SWOT

Internal strengths, potential internal assets that give a company a competitive advantage

Example of proxy fight

Microsoft tried to with Yahoo!

Marketing intermediary are also known as

Middlemen and resellers

Dynamic pricing

Prices are determined directly between the buyer and seller

Purchasing agents

Purchase items for buyers

Example of non-profit and public services advertising

Red Cross, prevention of wild fires

What causes the social environment to change?

Social, economic, political movements and trends

lagging indicators

Statistics that change only after the economy as a whole changes

Example of community-based models

Steam

A market niche is a narrowly defined market segment. True or False

True

Businesses are entities that offer goods and services to earn a profit True or False

True

Benefits to democratic leadership

Values people's input and gets commitment through participation

Changes in income levels

When income increase, people are able to buy more. Conversely, when income decreases, people won't be able to buy more. This is also a determinant of demand

Examples of technology creates opportunities for new businesses

Zappos, YouTube, and eBay

master limited partnership (MLP)

a business partnership that is owned and managed like a corporation but often taxed like a partnership

deflation

a continuous decrease in prices over time

Quota

a quantity limitation on the amount of an import allowed to enter a country

Socially responsible investing (SRI) is defined as investing only in companies that have met a certain standard of __________. a. corporate social responsibility b. social acceptability c. social media usage d. financial transparency e. global impact

a. corporate social responsibility

A rise in the general level of prices over time is called _____. a. inflation b. equilibrium c. disinflation d. deflection e. deflation

a. inflation

A CVS/pharmacy store is an example of a __________ business. a. national b. regional c. multinational d. boutique e. local

a. national

performance appraisal

an evaluation of an employees performance that gives feedback about how well the employee is doing, as well as where changes and improvements are needed

cross-cultural awareness

an understanding, appreciation, and sensitivity to foreign cultures

nonconvertible currency protects from...

capital flight

To succeed in a business, a new owner must understand _____. a. the principles of cash flow b. the basics of business management c. the essentials of time management d. all of these

d. all of these

Donors to corporations can...

deduct their donations from their taxes

Which of the following is a disadvantage of forming a corporation? a. less flexibility raising capital b. difficult transfer of ownership c. limited life d. unlimited liability of owners e. double taxation

e. double taxation

trade deficit

exists when the value of its exports

Autonomy

having some control over the key decisions in their work lives

Example of time utility

having the swimsuit available in the summer

market economy

individuals and businesses make decisions based on consumer needs and wants

Consumer market

individuals purchase goods and services for personal consumption

lockout

management refuses to allow union members to work

Sociocultural influences

on buying decisions include the buyer's culture, subculture, social class, family, and peers

Consumer Privacy Bill of Rights

one attempt at detailing legislation to define what is permitted in the digital age

flexible benefit plans

permits employees to pick from a menu of several choices of taxable and nontaxable forms of compensation

matrix organization

pools people into groups by skills and assigns them to projects as needed

Product advertising

promotes a specific product's uses, features, and benefits

Fortune

publishes lists of admired companies each year

Crowdfunding sites

solicit small amounts of money from a large number of people for startup businesses

What type of plan does top management create?

strategic plan

The EU invented...

the Euro, is used by 18 out of 28 members

Jurisdiction

the authority of a government to legislate and enforce its many laws

Freely floating (or flexible) exchange rate system

the global supply and demand for currencies determine exchange rates

Horizontal merger

two companies that share the same producer lines and markets and are in direct composition with each other

gamification

the application of game design concepts to nongame settings

Forecasting

the attempts to determine the supply of and demand for various types of human resources to predict areas within the organization where there will be labor shortages or surpluses

vertical organization (tall organization)

the company is organized by specific function, such as marketing, finance, purchasing, information technology, and human resources

Franchiser

the company that sells a franchise

planned economic system

the government plays a significant role in determining the goods and services produced and distributed

retirement

the point in one's life where one stops participating full-time in a career

legal regulation

the specific laws governing the products or processes of a specific industry

microeconomics

the study of how individual businesses, households, and consumers make decisions to allocate their limited resources in the exchange of goods and services

Smaller companies agree to merge with larger companies if...

they feel their company won't last alone

Example of natural resources

trees, coal, oil, natural gas

Hawthorne effect

used to describe the increase in productivity caused by workers being given special attention

Advantages of turnkey project

1. increased profits for high-tech firms

Example of fixed exchange rates

China has a fixed currency to a rate that is weak compared to the dollar

Brand awareness

Extent to which a particular brand name is familiar within a particular product category

demand curve

a graph that shows the relationship between the price of a good and the quantity demanded

mediation

a process that involves a neutral third party that assists the two parties

Cooperative arrangements between actual or potential competitors for a specific period of time a. Strategic Alliances b. Turnkey Projects c. Contract Manufacturing d. Wholly-Owned Subsidiary e. License Agreement

a. Strategic Alliances

When naming a business, which of the following approaches would NOT be a mistake? a. hiring a company to create a name b. using geographic names c. involving employees or clients in the naming decision d. using a generic name e. using a name that tries to marry description with product

a. hiring a company to create a name

expansion or recovery

after a recession/depression the economy hits a trough and begins to expand again

Todd is a​ first-line manager for a local gas station. He is creating a plan for employees that lays out what needs to be done on a daily basis to run the store. What type of plan is Todd​ creating? a. ​Long-term success plan b. Operational plan c. Mission plan d. Strategic plan e. Tactical plan

b. Operational plan

According to the Hawthorne effect, _________. a. workers will be more productive when the physical influences on the workplace suit them b. workers will be more productive when the psychological influences on the workplace suit them c. workers will be more productive when they know are being studied d. workers will be less productive when they know they are being studied e. worker's productivity is not influenced by whether or not they are being studied

c. workers will be more productive when they know are being studied

enterprise zones

geographic areas targeted for economic revitalizing

virtual team

members are located in different physical locations but work together to achieve a goal

Small business investment company program (SBIC)

private venture capital firms licensed by the SBA to make equity capital or long-term loans available to small companies

M-2

savings, money market accounts, and certificates of deposits (CDs) (money banks can lend out)

open-source movement

software projects that are developed, tested, and maintained for free by a worldwide network of volunteers

Distribution

The process that makes products available to consumers when and where the consumers want them

Profit sharing could mean that in a good year, employees get bonuses, or it could refer to the company's contributions to an employee retirement plan. True or False

True

currency

a unit of exchange for the transfer of goods and services, provides a consistent standard

Rewarding

providing personal satisfaction

Chief Information Officer (CIO)

responsible for technology, information processing, systems design and development, and data center operations

Example of elastic goods

restaurant meals

bank runs

when people get nervous they won't get their money back from the bank so they withdraw all their money

The structure of an organization chooses depends on what factors?

1. number of employees 2. speed of decision that needs to be made 3. how vulnerable the company is to rapid changes 4. collaborative nature of the work

Characteristics of a B2B market

1. A few buyers that purchase in large quantities 2. Highly trained buyers 3. Group purchasing decision 4. Strong customer relationship 5. Geographically concentrated buyers 6. Direct purchasing

Characteristics of visionary leadership

1. Believes in own vision 2. Is empathetic 3. Explains how and why people's efforts contribute to the "dream"

Marketing intermediary

Business firm that operates between producers and consumers when and where the consumers want them

What forms of business ownership have limited liability for business debts and obligations?

C-corp, S-corp, LLC

Communism and socialism are examples of market economies True or False

False

Example of procurement exchange

Kentucky e-procurement

Example of frequent-user incentives

Marriot points

Coordinator

Mature and confident

Limited-service wholesalers

Offer fewer services than full-service wholesalers

Liability of an S corporation

Owners (shareholders) are not personally liable for debts of corporation

Financial Independence

Owners feel they can make more money operating their own business

Completer/Finisher

Painstaking and conscientious

Rebates

Partial refunds on what a customer has already paid for a product

Example of a green industry

Patagonia, make fleeces out of recycled plastic bottles and recycled polyester

Four P's

Product, Price, Promotion, Place

Example of unemployment

Proline Communications Inc. opened 3 months after Bruce Freeman was fired

Example of opportunity knocks

Rajhog Foods started in New York offering Indian sweets and snacks not offered in the area

Product mix

The combination of all product lines offered for sale by a company

Public relations

The marketing function that establishes and maintains mutually beneficial relationships between an organization and its stakeholders

Co-brand

The use of one or more brands affiliated with a single product

When democratic leadership is appropriate

To build buy-in or consensus or get valuable input from employees

Benefits to visionary leadership

moves people toward shared dreams

Operational requirements of an S corporation

must have board of directors, corporate offices, annual meetings, and annual reporting

Decision support system (DSS)

software system that enables companies to analyze collected data so they can predict the impact of business decisions

strikebreakers(scabs)

workers hired to do the jobs of striking workers until the labor dispute is resolved

Decision-making process

It is important to consider how decisions will be made

Private brand

Brand created by a distributor or a middleman

Shaper

Challenging and dynamic

Example of comparative advertising

Coca-Cola and Pepsi

Role clarifying

Defining roles in terms of daily work tasks

Changes in the prices of resources do not help determine supply because those resources can be replaced by substitute goods. True or False

False

Theory Z (Ouchi)

Japanese Model, People are more loyal to a company if they have part in the decision making

Identify a market need

Finding an unmet need and determining a product or service that would meet this need

Pricing strategy of perfectly competitive markets

Firms charge prices equivalent to other firms

Retail(local) advertising

Focuses on attracting customers to a fixed location

physiological needs

Food, water, sex, sleep

Products of Marketing Era

GE (fridge, toaster, oven, television), McDonald's, Apple

Example of specialty store

Gamestop, Footlocker

Example of inelastic goods

Gasoline and electricity

Example of task utility

Getting a suit altered

Rewards, recognition, and compensation

Given as appropriate to motivate an employee toward achieving current and future goals

Why do managers need to plan?

Goals and plans help to keep you on track

Example of growth entrepreneurs

Google and eBay when they first started

Example of entrepreneurial team

Google, HP, Cisco, Imagen, and Yahoo

National business

Has several outlets throughout the country, but it does not serve an international market.

Example of wholly owned subsidiary

Hyundai South Korean, entered Russian market by establishing its own factory in Russia

Example of home-based franchises

Jan-Pro, Snap-On Tools, and Jazzercise

Example of brand licensing

Mickey Mouse, NFL, NBA

Offshore outsourcing (offshoring)

Movement of production or other functions from a domestic site to a foreign location

Unsought goods and services

Products buyers don't usually think about buying, don't know exist, or buy only when a specific problem arises

The Civil Rights Act of 1964

Prohibits discrimination based on race color, gender, religion, and national orgin

Core product

Provides the benefit or service that satisfies the basic need or want that motivates the consumer's purchase

Example of agents/brokers

Real estate agents, brokers, stockbrokers, and eBay

Example of product placement

Reese's Pieces in E.T.

Reference pricing

Refers to the listing an inflated price that is then discounted to appear as a good value

Product mix width

Refers to the number of different product lines a company offers and is also based on profit

Intensive distribution

Selling convenience products

Selective distribution

Selling shopping products

Exclusive distribution

Selling specialty products

Monitor evaluator

Serious and strategic

Infomercials

Television commercials that run as long as regular TV programs

Absolute advantage

The ability to produce more of a good or service than any other country (not more efficient)

Foreign direct investment (FDI)

The purchasing of property and businesses in foreign nations

Globalization has affected individual lives and has affected....

The way companies conduct business around the world

Example of company website

UPS has a site for business owners looking for shipping solutions

Bulk breaking

Wholesalers buy in bulk and sell to retailers in smaller quantities

Management service and advice

Wholesalers may assist retailers in training their sales staff, improving layouts and displays, and setting up accounting and inventory control systems

Credit cards

a convenient means of acquiring cash

employment at will

a legal doctrine that allows an employee to quit at any time for any reason, or no reason, and that allows an employer to terminate employment for any reason or no reason

labor union

a legally recognized group dedicated to protecting the interests of workers (fight for better work conditions)

globalization

a movement toward a more interconnected and interdependent world economy

Products like Brandwatch and UberView are used by companies to ________. a. perform social media monitoring b. detect crowdsource opportunities c. generate automatic Tweets d. create apps for mobile devices e. expand the possibilities of cloud computing

a. perform social media monitoring

Half of small businesses use

bank loans and lines of credit

Rolling out the product

companies introducing new products in one region at a time

strategic alliances

cooperative arrangements, each partner retains its business independence, agreement lasts for a specific time period

Which of the following does not describe a type of leadership style? a. Visionary b. Autocratic c. Democratic d. Affluent

d. Affluent

A company's ethics can be examined by a. following its stock price b. interviewing employees c. checking documents filed when it was incorporated d. reviewing its code of ethics and mission statement

d. reviewing its code of ethics and mission statement

both goals and objectives are best set with...

deadlines and quantifiable measures

Job analysis

defines in detail the particular duties and requirements of the tasks and responsibilities an employee is required to perform

fiscal policy

determine the appropriate level of taxes and government spending based on external actions on the economy

governments play a large role in

determining how much international trade they will support

Evelin has a successful home cleaning business and has added 50 employees over the past few years.​ She's considering seeking out business partners to help grow the business even faster. Because of the complexities of the​ business, and her desire to separate her business and personal​ assets, she should consider switching her business to​ a(n) __________. a. cooperative b. unlimited liability company c. sole proprietorship d. limited partnership e. C corporation

e. C corporation

Which of the following oversees the​ day-to-day operations of a​ company? a. Board of directors b. Line manager c. Chief financial officer d. Chief executive officer e. Chief operating officer

e. Chief operating officer

S corporation...

gives partners limited liability but avoids double taxation

S corporations...

have shareholders like C corporations and must comply with all other C corporation regulation

Performance management

is an approach that combines goal setting, performance appraisal, training, and development into a unified ang ongoing process

Advertising

is paid, impersonal mass communication from an identified sponsor to persuade or inform a targeted audience

trough

occurs when the recession hits bottom and the economy begins to expand again

Stock option plans

offer shares of company stock to employees for purchase on a set date at an agreed-upon price

What type of plan does the first-line management create?

operational plan

Brand loyalty

the degree to which customers consistently prefer one brand over all others

Conceptual skills

the mental ability to analyze and diagnose complex situations

A strategic plan focuses on...

the organization as a whole

Data

the representations of a fact or idea

Timely

time frame is reasonable

Social networking sites

websites that make it easier for people to connect with one another online for the purposes of building and supporting social relationships

wikis

websites that support editing by multiple authors

surplus

when supply exceeds demand

Globalization is why...

you'll notice that many products you own were made in countries other than the U.S

example of beliefs

"Nice guys finish last" or "Hard work always pays off"

Product

1. Create product differentiation 2. Develop and effective brand

What are common strategies for company's to recover from a scandal or whistle blow?

1. Find a new leader to set an example of the new ethical image of the company 2. Restructure their internal operation to empower all employees so that they can speak up when they spot a concern 3. Redesign internal rewards (get rewarded for building a relationship over a sale)

What are three strategies for international business?

1. Global strategy 2. Multidomestic strategy 3. Transnational strategy

Individual brand

A brand assigned to each product within a company's product mix

Performance assessment (appraisal)

An element in the performance management process that offers specific information about how an employee's performance is improving the company's result

Cash-and-carry wholesalers

Carry a limited line of fast-moving goods and sell to small retailers for cash, they do not deliver

Example of subcultures

Churches, community organizations, and online communities

Fixed costs (overhead costs)

Costs that do not vary with the production level

Car insurance is an example of a good. True or False

False

Why is the workforce becoming more diverse?

1. Changing demographics in the United States 2. Advancements in technology 3. Outsourcing and offshoring 4. Hiring patterns 5. More women 6. Increased number of older workers

Price expectations

1. If prices are expected to increase in the future, the supplier may reduce supply now to supply more at a later time when prices are higher. 2. Similarly, if prices are expected to decrease in the future, the supplier may make every attempt to deplete supplies now at the higher price.

Disadvantages of cost-based pricing

1. Ignores consumer price expectations and competitors' prices 2. Provides little incentive to keep costs low

Controlling/Monitoring

1. Measuring results against goals 2. Monitoring performance 3. Correcting when necessary 4. Rewarding

Benefits of keeping employees motivated

1. Workers are more productive 2. Workers are more creative 3. Retention levels are higher 4. Companies benefit financially

As more profit is generated, a company is able to increase its productivity. True or False

True

international contract manufacturing

a form of offshore outsourcing

Neot was just​ promoted, and what​ she's most excited about is that she now gets a corner office and a designated spot in the employee parking lot. According to​ Maslow's hierarchy of​ needs, which level of needs does this best​ reflect? a. Esteem needs b. Affiliation needs c. ​Self-actualization needs d. Physiological needs e. A need for power

a. Esteem needs

Small business owners interested in venture capital funding should know that venture capitalists____________. a. look for potential of a public stock offering before investing in a company b. do not seek a management position or control of the business c. fund multiple projects but only with a limited amount of money for each d. provide funding only for capital expenses such as buildings and equipment e. charge interest rates for balances owed and set monthly minimum repayment requirements

a. look for potential of a public stock offering before investing in a company

Examples of franchises

business-services, real-estates, and fast-food

Multidomestic strategy

businesses compete primarily by customizing or differentiating the product to meet local needs, tastes, or preferences

Visionary leadership is appropriate when

changes require a new vision or when a clear direction is needed; radical change

Corporate social responsibility can be defined as a company's obligation to ________. a. include social networking and society events that bring in prominent members of the community b. behave in whatever manner is necessary to earn the highest profit for owners c. be flexible with its ethics in the workplace in order to maintain profitability d. blend its activities into the social fabric of whatever country it conducts business in e. conduct its activities with the aim of achieving social, environmental, and economic development

e. conduct its activities with the aim of achieving social, environmental, and economic development

Objectives are __________. a. usually created on a five-year time frame b. an organization's long-term targets c. achieved by the completion of specific goals d. broad and abstract in nature e. designed to help a company achieve its goals

e. designed to help a company achieve its goals

If a label comes to represent consistent quality and dependability, then the label can perpetuate a(n)___________ brand-name image. a. unethical b. neutral c. negative d. immeasurable e. positive

e. positive

Which level of management is responsible for implementing operational plans and supervising employees who carry out the​ day-to-day functions of the​ company? a. Consultant b. Staff manager c. Middle manager d. ​Top-level manager e. ​First-line manager

e. ​First-line manager

Colin is a manager who loves finding what his employees are good​ at, then placing them in positions in his company in which they will excel. Colin is a huge believer in what type of​ management? a. Autocratic leadership b. ​Weakness-elimination management c. Management by inspiration d. ​Laissez-faire management e. ​Strength-based management

e. ​Strength-based management

Programmed learning approach

employees are asked to perform step-by-step instructions or to respond to questions with immediate feedback about the accuracy of the answers

high unemployment=

increase in unemployment benefits

Psychographic segmentation

market segmentation based on lifestyles, personality traits, motives, and values

Taxation of a sole proprietorship

not a separate taxable entity; taxes paid through owner is personal tax return

Taxation of a partnership

not a separate taxable entity; taxes paid through owner's personal tax return

contract manufacturing

occurs when a firm subcontracts part or all of its good to an outside firm as an alternative to owning and operating its own production facility

Judeo-Christian ethics

refers to the common set of basic values shared across both Jewish and Christian religious traditions

Operational requirements of a limited-liability company (LLC)

some reporting/operating requirements, but far fewer than for corporations

Customer Relationship Management (CRM)

the process of establishing long-term relationships with individual customers to foster loyalty and repeat business

recruitment

the process of finding, screening, and selecting people for a specific job

Market research

the process of gathering and analyzing market decisions

External recruiting

the process of searching outside the firm to fill job vacancies

executive coaches

to further develop a manager's effectiveness, coaches identify the manager's strengths and weaknesses and then meet with the manager to work on both

Industrial psychology

to understand scientifically how to manage employees and work optimally

discount rate

when banks borrow emergency funds from the Fed they are charged an interest rate

loss

when expenses are greater than revenue

hostile takeovers

when one company tries to take control over another company against its wishes

Defined benefit plans

where the employee knows ahead of time how much pension they will receive when they retire

What are the challenges for local and regional businesses?

1. Managing money 2. Undercapitalization 3. Controlling Costs

What are examples of business-to-customer?

Amazon.com and Target.com

How does intellectual property create a competitive advantage?

Drug companies and technology companies both own their own patents on certain drugs and software

As more profits are generated...

a company can reward its employees, increase productivity, or expand its business into new areas

Which of the following BEST enables all companies, regardless of size, to compete in the global market? a. technological advances b. a talented workforce c. effective marketing d. government subsidies e. "green" policies

a. technological advances

technology

refers to items and services such as smartphones and software that make businesses more productive

Franchisee

A person who buys a franchise

Budget of CIO

1. Create and monitor IT budget 2. Strive for highest possible return on investment (ROI)

Average variable costs (per unit variable costs)

Equal total variable costs divided by the production level

Examples of serial entrepreneurs

Ted Turner and Richard Branson

Example of price substitute goods

The construction of cheaper townhouses in an area could lead to less building of more expensive single-family residences

When interviewing candidates for an administrative assistant's job, which of the following interview questions is legally inadvisable? a. What church do you attend? b. What are your strengths and weaknesses? c. What are your hobbies? d. Who do you think will win the Super Bowl?

a. What church do you attend?

A competitive environment is where...

a free market thrives

market price

a good or service that is at a price at which everyone wants the item

Focus group

a group of 8-10 potential customers who are asked for feedback on a good or service, advertisement, idea, or packaging

The main function of economics is to study_________. a. the exchange of goods and services between individuals, businesses, and nations b. the exchange of cultural information in a diverse society c. the stock exchange d. the exchange of diplomatic relations between nations e. the exchange of ideas about motivation and behavior in the workplace

a. the exchange of goods and services between individuals, businesses, and nations

Crowdsourced funding

allows a great number of people who believe in a company or product to contribute a small amount of money

Which of the following tracks the prices of goods and resources sellers use to create their products? a. GDP b. CPI c. PPI d. GNP

c. PPI

The specifics of carrying out tactical plans are ________. a. strategies b. internal strengths c. operational plans d. objectives e. contingencies

c. operational plans

Natural resources

the raw materials used to produce goods

Examples of services

1. haircuts 2. health care 3. car insurance 4. theatrical productions

Employers seek workers who have skills of...

1. interpersonal 2. communication 3. decision-making

What are the factors of production?

1. labor 2. natural resources 3. capitol 4. entrepreneurial talent 5. technology 6. intellectual property

Examples of demographic factors

1. race 2. ethnicity 3. gender 4. age 5. income distribution 6. sexual orientation

A not-for-profit organization uses any revenue to reward the management team True or False

False

Which of the following is NOT a common challenge facing most national companies? a. Undercaptialization b. A complex supply chain c. Complying with each state's different tax rates d. Differences in state laws

a. Undercaptialization

Tom is a college senior who would like to get a "green-collar" job when he graduates. Which of the following positions is he LEAST likely to apply for? a. a job as a manager at an oil refinery b. a job selling hybrid cars c. a job weatherproofing houses d. a job installing solar panels e. a job as a wind turbine engineer

a. a job as a manager at an oil refinery

Example of shopping goods and services

1. Clothes 2. Shoes 3. Television 4. Cameras 5. Stereos 6. Bicycles 7. Lawnmowers 8. Furniture 9. Major appliances 10. Hotel rooms 11. Airline services

Methods of internal recruitment

1. Company intranet 2. Staff notice boards 3. In-house newsletters 4. Staff meetings

Operating with a network organization means the company must be:

1. Highly flexible and innovative 2. Be able to respond quickly to threats and opportunities

B2B nature of the buying unit

1. More professional and rational purchase decision

Advantages of public relation

1. Often seen as more credible than advertising 2. Inexpensive way of reaching many customers

Business-to-Consumer (B2C) Online

1. Online intermediaries 2. Advertising-based models 3. Community-based models 4. Free-based models

What does human resource management do?

1. Planning for staff needs 2. Recruiting and hiring 3. Training and motivating 4. Evaluating 5. Compensating 6. Terminating and repositioning 7. Diversity issues 8. Work/lifestyle preferences 9. Global business considerations

The role of unions is declining in the United States because of...

1. Their success in improving working conditions 2. Decline in traditionally unionized industries

Purpose of labeling

1. To inform 2. To persuade

Why has globalization accelerated?

1. Trade and investment barriers 2. Technological innovations

What are the risks of globalization?

1. U.S workers can lose their jobs to foreign countries 2. increase international competition 3. fluctuate the value of the U.S dollar 4. security and patent protection concerns 5. unstable political climates

Disadvantages of a sole proprietorship

1. Unlimited liability 2. Potential difficulty in borrowing money

Societal Marketing Era

-Began in late 1960s and early 1970s -Challenged companies to work for the benefit of consumers and society while making a profit

General Agreement on Tariffs and Trade (GATT)

-Created in 1948 with 23 member nations -Negotiated international trade treaties -Replaced by the WTO in 1995

Cultural Challenges:

1. Aesthetics 2. Attitudes toward time and work 3. Religion 4. Language

Benefits of social media and research

1. Brand insights improved 2. Sales and revenues increase 3. Enhanced R and D 4. Reduced research costs 5. Shortened project duration 6. Less static marketing

Brand loyalty consists of

1. Brand recognition 2. Brand preference 3. Brand insistence

Pros to advertising

1. Builds brand awareness 2. Emphasizes product differentiation 3. Builds brand loyalty and brand equity 4. Informs and educates consumers 5. Increases sales and lowers prices

What are the forms of E-commerce?

1. Business-to-customer (B2C) 2. Business-to-business (B2B) 3. Consumer-to-consumer (C2C)

Marketing Research Process

1. Define the marketing need or opportunity 2. Develop the research design 3. Collect the relevant data 4. Analyze and interpret the data 5. Act on conclusions

Steps of strategic paln

1. Establish the corporate purpose by creating a mission statement, values, and goods 2. Perform SWOT analysis and identify internal strengths and weaknesses as well as external opportunities and threats 3. Formulate strategy through tactical planning 4. Implement strategy through operational planning

Customer-to-Customer (C2C) Online

1. Exchange through intermediary 2. Peer-to-peer exchange

Disadvantages of advertising

1. Expensive 2. Impersonal 3. Not good at closing a sale

Disadvantages of personal selling

1. Expensive 2. Not suitable if there are thousands of buyers

Cons of online advertising

1. Fear of spam, users may avoid clicking ads 2. Annoyance factor, users can be annoyed with popup ads and flashing ads 3. Click fraud, some companies hire other people to click on ads purposely to fill their invoice up

Example of specialty goods and services

1. Ferarri sports cars 2. Rolex watches 3. High-fashion designer clothing 4. Medical services 5. Legal services

Benefits of marketing

1. Form utility 2. Task utility 3. Time utility 4. Place utility 5. Ownership utility

Examples of brand association

1. Image 2. Product features 3. Usage situations 4. Organizational associations 5. Brand personality 6. Symbols

Marketing plan has 4 elements

1. Marketing objective 2. Situational SWOT analysis 3. Selection of a target market 4. Implementation, evaluation, and control of the marketing mix

Product pricing objectives

1. Maximize profits 2. Achieve greater market share 3. Maximize sales 4. Build traffic 5. Match status quo prices 6. Cover costs to survive 7. Create an image 8. Ensure affordability to all

What are the different ethical systems?

1. Moral relativism 2. Situational ethics 3. Judeo-Christian ethics

Advantages of internal recruiting

1. Morale booster 2. Less risk 3. Faster and less costly

Advantages of a partnership

1. More owners to contribute capital and effort 2. Shared managerial and financial responsibility 3. Utilize complementary skills 4. Easy to form 5. Business losses can offset personal income

What are the roles in Belbin's Team Roles?

1. Plant 2. Resource investigator 3. Coordinator 4. Shaper 5. Monitor evaluator 6. Teamworker 7. Implementer 8. Completer/finisher 9. Specialist

Prospecting

1. Pre-approach 2. Actual approach

Forecasting has information such as

1. Predicted sales 2. Current workforce skills 3. Technology changes 4. Use of temporary workers 5. Turnover 6. Retirement 7. Planned reassignments

Officer positions include

1. President/Chief Executive Officer 2. Chief Financial Officer 3. Chief Operating Officer

Consumer products

1. Purchased by households for personal consumption 2. Traded in consumer markets

Online advertising techniques

1. QR codes 2. Pay-per-click advertising 3. Contextual advertising

Advantages of social media

1. Reaches a large group of people quickly and with low cost 2. Can be used to establish customer relationships

Pros of online advertising

1. Reasonable cost, depends on frequency of use 2. Hitting target markets, contextual advertising reaches intended viewers 3. Tracking, companies keep records of who is clicking ads and where they are located

Purchasing process

1. Untrained buyers 2. Individual purchasing decision 3. Relatively simple buying decisions 4. Informal buying decision 5. Impersonal relationship between marketer and buyer 6. Mass advertising

Currency of Systems of CIO

1. Update hardware and software to current business needs 2. Introduce appropriate new technologies

A strategic plan answers what 3 questions?

1. Where is the company going? 2. What should the company focus on? 3. How will the company achieve its goals?

Types of full-service wholesalers

1. Wholesale merchants 2. Industrial distributors

What are examples of Green collar jobs?

1. a job selling hybrid cars 2. a job weatherproofing houses 3. a job installing solar panels 4. a job as a wind turbine engineer

Competition forces companies to

1. improve their product offerings 2. lower their prices 3. aggressively promote their brands 4. focus on customer satisfaction

Advantages of a corporation

1. limited liability 2. extended life and ownership transfer 3. raising capital 4. tax benefits

pros to a vertical organization

1. one person is in charge and has the most authority

Advantages of strategic alliance

1. pooled talents 2. shared costs and risks

How does an aging population challenge and pose opportunities?

1. poses opportunities to cosmetic lines making you look younger, retirement homes, and travel agencies 2. can challenge Social Security and Medicare

strategic plan...

1. sets the approach for achieving an organization's long-term goals and objectives 2. acts as a framework for decisions 3. assists in setting corporate benchmarks

Advantages of exporting

1. speed of entry 2. production site in lowest-cost location

Advantages of wholly owned subsidiary

1. total control over all operations 2. preservation of proprietary technology

An economy is defined by:

1. what is produced 2. how it is produced 3. who gets the finished product

AFL-CIO

1955 two larger labor unions united. American Federation Labor- Congress of Industerial Organization.

pareto chart

A combination bar and line graph that shows different categories of problems and the total number of problems

Example of product extension merger

Adobe and Macromedia

Opportunity knocks

An idea for a new company often starts with envisioning a product or service that isn't being offered yet

Example of number of suppliers

An increase in home builders increases the supply of new homes and decreases the cost of new homes

Changes in resource prices

An increase in resource prices increases the cost of production and reduces profits, thus lowering the incentive to supply a product

Example of use new labels or different container types

Coca-Cola 6oz bottles to 8oz cans

Data warehouses

Database systems that store vast amounts of data

Personal selling

Direct communication between a firm's sales force and potential buyers to make a sale and to build good customer relationships

Example of technical standard/bureaucratic

EU banned the importation of all animal meats in which steroids were used to stimulate growth

Benefits of comparative advantage

Each nation will have a greater quantity and variety of higher-quality products to consume at lower prices

What are examples of consumer-to-consumer?

Etsy, Craigslist, NextDoor

Example of horizontal merger

Exxon and Mobil, US Airways and American Airlines

A weak ethical focus in a company allows it to compete more aggressively True or False

False

According to the SBA, to be considered a small business, a company can have only one location. True or False

False

Crowdfunding is putting a request for funds on your Facebook page. True or False

False

Cyclical unemployment measures those out of work during the off-season, such as those employed in agriculture and snow, beach, or holiday-related industries. True or False

False

Employment at will means workers have increased job security. True or False

False

Entering a foreign market through a joint venture means you will eventually be operating independently in that market True or False

False

Association of Southeast Asian Nations (ASEAN)

Free trade agreement between Indonesia, Malaysia, Philippines, Singapore, Thailand, Brunei, Vietnam, Laos, Myanmar, and Cambodia

Compressed workseek

In this arrangement a traditional five-day work week is condensed into four dats by allowing employees to work 4 ten hour days instead of 5 eight hour days

Trade (B2B) sales promotions

Incentives designed to push a product through the distribution system to final consumers

Entrepreneurs Organization (EO)

Industry-related conferences/seminars to connect business owners with experts in their industry for individual mentoring

Example of co-brand

Intel and Dell, AT&T Universal Mastercard, Healthy Choice Cereal by Kellog's

Brand association

Involves connecting a brand with other positive attributes

Consumer Bill of Rights

Made the following legal rights 1. the right to safety 2. the consumer's right to choose 3. their right to information 4. their right to be heard

Example of price fixing

Mark Whitacre, ran company ADM and stole millions of dollars from customers through price fixing

Comparative advantage

Means that a country can produce a good or service relatively more efficiently compared with other countries

Operational requirements of a corporation

Must have board of directors, corporate offices, annual meetings, and annual reporting

Which free trade agreements have been the most successful with free trade areas?

NAFTA and the EU

Example of inverted organization

News reporters

Examples of multinational enterprises

Nike, McDonalds, Coca-Cola

Example of primary data

Observation, Survey, controlled experiments, Questionnaire, Sample, focus groups, interviews, customer feedback,

Undercapitalization

Occurs when a business owner cannot gain access to adequate funding.

Truck wholesalers (truck jobbers)

Perform a selling and delivery function

Task utility

Performing a desired service

Advocacy advertising

Promotes an organization's position on a public issue

Globalization of markets

Refers to the movement away from thinking of the market as being the local market or the national market, but to the market being the entire world

Example of order influences

Representatives of pharmaceutical companies meet with doctors to encourage them to prescribe drugs manufactured by their companies

Support personnel

Sales people who focus on assisting current customers with technical matters

goals

The broad, long-term accomplishments an organization wishes to attain within a certain time frame

Globalization of production

The other facet of globalization, refers to the trend of individual firms moving production to different locations around the globe to take advantage of lower costs to enhance quality

Addition of partners

The partnership agreement also helps sell out the requirements for new partners entering the partnership

Example of information sites

TheMedica.com

Apprentice training program

Trains individuals through a combination of classroom or formal instruction and on-the-job training.

Goal setting and planning

Translating organizational or departmental goals into specific employee goals, which includes an employee's development of the steps necessary to achieve goals

A partnership agreement should include procedures that outline how a partner's departure from the business will be handled as well as how new partners are to be brought in True or False

True

Barbara owns a bakery in Boston. When her business reached a certain level of profit, she decided to open three more bakeries in the area. Many businesses, like Barbara's, are able to expand as they earn more profits. True or False

True

Being part of a franchise allows you to have access to tried-and-true marketing strategies. True or False

True

Business intelligence software supports decision making by presenting visual, interactive views of the state of a business True or False

True

Federal laws like the ADA and the ADEA must be followed by every business when hiring. True or False

True

The augmented product provides additional value to a customer's purchase. True or False

True

To celebrate the first day of summer, an ice cream shop dropped the price of its cones to 10 cents and sold out of them within two hours. This created a shortage of ice cream cones. True or False

True

Trade barriers include tools like embargoes, quotas, and local content requirements True or False

True

Product extension merger

Two companies selling different but related products in the same market

Vertical merger

Two companies that have a company/customer relationship or a company/supplier relationship

Conglomeration

Two companies that have no common business areas merge to obtain diversification

Market extension merger

Two companies that sell the same products in different markets

Complementary goods

Two goods that provide more utility when consumed together than when consumed separately

Example of joint ventures

Walmart jointed with Indian soap company to sell soap in India

Brand extension

When companies add length to their product lines to widen their product mix

Example of high traffic approach

Yahoo!

Corporate Social Responsibility (CSR)

a company's obligation to conduct its activities with the aim of achieving social, environmental, and economic development

motivation

a complex mental state that plays a key role in determining the success of a business and the satisfaction of its employees

nonconvertible currency

a currency that can't be converted into another currency in the foreign exchange market

currency depreciation

a decrease in the exchange rate of a nation's currency

countertrade

a form of international barter, swapping goods for other goods out of necessity or for enhanced profitability

business plan

a formal document that states the goals of the business as well as the plan for reaching those goals

integrated marketing communication

a strategy to deliver a clear, consistent, and unified message about a company and its products to customers at all contact points

Market segment

a subgroup of potential customers who share similar characteristics and therefore have similar product needs and preferences

Ponzi scheme

a swindle whereby investors believe their money is being invested and earnings returns for them but is instead being siphoned off by the schemer

free floating exchange rate system

a system in which the global supply and demand for currencies determine exchange rates

Naima and Steve both make​ high-end custom guitars. They decide that they should merge in order to become more dominant in the marketplace. What type of merger are they going to​ perform? a. A horizontal merger b. A market extension merger c. A product extension merger d. A vertical merger e. A conglomeration

a. A horizontal merger

In many​ organizations, the human resource manager does not have authority over hiring of employees in departments such as accounting or manufacturing but instead works with the managers of those departments to offer guidance and assistance. What type of organization would this​ reflect? a. A line and staff organization b. An inverted organization c. A matrix organization d. A network organization e. A reverted organization

a. A line and staff organization

The ratio at which Australian dollars are converted into Indonesian rupiah is known as the ________ rate. a. Exchange b. Export c. Depreciation d. Interest e. International

a. Exchange

__________ unemployment refers to a temporary state of unemployment in which workers move between jobs, careers, and locations. a. Frictional b. Structural c. Seasonal d. Cyclical e. Circumstantial

a. Frictional

Jaden and Noel are starting a computer repair business together. Jaden insists on outlining rules for the departure of partners in the partnership agreement, although Noel does not think it is necessary. Which of the following statements might Jaden use to explain his insistence to Noel? a. Provisions to remove a partner's ownership interest are necessary so the business would not have to end. b. Determining the allocation of profits to new, junior partners is important to eliminate future potential conflicts c. Responsibilities must be clearly delineated to avoid one partner doing more or less work than others d. As the partnership matures and ages, defining how profits and losses will be distributed must be made e. In a partnership of two, where the possibility of a deadlock is likely, we should provide for a trusted associate to act as an acting third "partner" whose sole responsibility is to be the tiebreaker

a. Provisions to remove a partner's ownership interest are necessary so the business would not have to end.

Which is a benefit of cooperatives? a. The power of the group enables them to negotiate for goods and services at favorable prices b. They are exempt from paying federal and state taxes c. They are established to serve the public interest rather than make a profit d. They provide services to people with a variety of interests and needs

a. The power of the group enables them to negotiate for goods and services at favorable prices

In which industries would you find a heavy concentration of small businesses? a. Veterinary services and Florist b. Aluminum manufacturing c. Florist d. Veterinary services

a. Veterinary services and Florist

U.S. exporters prefer a(n) ________ dollar. a. Weak b. Exchange c. Appreciating d. Strong e. Strengthening

a. Weak

The performance review process often includes all of the following except a. an evaluation of the employee's social standing in the work environment b. an assessment of the employee's relative to the job's performance standards c. specific feedback on how to enhance a positive performance d. the employee's job expectations

a. an evaluation of the employee's social standing in the work environment

Which of the following events would MOST likely change the racial demographic of a population? a. an influx of immigrants b. the green movement c. a political scandal d. an aging population e. an economic slump

a. an influx of immigrants

_________ are the specific laws that govern the products and processes of an industry a. legal regulations b. ethical standards c. ethical codes d. social standards e. legal violations

a. legal regulations

A_________ is a graph that displays the values of two variables to see if there is a relationship between the variables. a. scatterplot b. run chart c. check sheet d. control chart e. histogram

a. scatterplot

About 80 percent of small businesses in the U.S. are concentrated in the _____ sector. a. service-producing b. retail c. professional d. goods-producing

a. service-producing

An LLC is formed by professional corporations such as...

accountants, attorneys, doctors, and professionals who want to be away from partner liability

leveraged buy outs (LBO)

acquiring group borrows 90% of funds necessary for the acquisition

Pay-per-click advertising

advertisers pay for the number of times a web surfer clicks on their ad

Example of consumer preferences

advertising and fads, remember when people waited in line to buy a Wii system

Middle managers communicate with

all levels of management and act as liaisons among groups

Online training/distance learning

allows employees to take college classes on the Internet at their convenience, enabling employees to obtain specific job-related education

telecommuting

allows employees to work in the office part time and work from home part time

currency appreciation

an increase in the exchange rate of a nation's currency

line and staff organization

an organization system that has a clear chain of command but that also includes functional groups of people who provide advice and specialized services

union locals

are created by workers of the same industry, company, region, or business sector

Pension plans

are financial programs that provide income to individuals in their retirement

Employee benefits

are indirect financial and non financial payments an employer offers that supplement cash compensation

competition

arises when two or more businesses vie with one another to attract customers and gain an advantage

Boston College Center for Corporate Citizenship

assesses corporate responsibility and publish their findings

All of the following are legal challenges to conducting business in a foreign country EXCEPT ______. a. Contracts b. Cross-Cultural Awareness c. Patents and copy rights d. Property Rights e. Product safety and liability standards

b. Cross-Cultural Awareness

Tools used to analyze data include a. DBMSs, ERP, and ROI b. DSSs, OLAPs, and executive information systems c. OSHAs and C2Cs d. PPCs, ISs, and B2Bs

b. DSSs, OLAPs, and executive information systems

_______ occurs when there is only one provider of a service or product and no substitutes for the service or product exist. a. a duopoly b. a monopoly c. an oligopoly d. perfect competition e. monopolistic competition

b. a monopoly

Rocco Valentino shops only at Walmart. Because Walmart rarely has sales, Rocco believes he'll receive the lowest price without further hassles. This type of pricing strategy is known as __________pricing. a. dynamic b. everyday low c. competition-based d. penetration

b. everyday low

In which part of the business cycle would the Federal Reserve be most likely to increase the discount rate to discourage banks from borrowing? a. trough b. expansion c. peak d. recession e. depression

b. expansion

Karen is an accountant for a large construction company. Her supervisor decides to reward Karen's excellent performance with a one-time bonus. To Karen, this could be a(n)_________. a. intrinsic motivator b. extrinsic motivator c. resonance motivator d. virtual motivator e. self-actualization motivator

b. extrinsic motivator

Since Ben opened his own computer repair business, he has had to take a lot of time off to care for his mother who has been seriously ill. In his old job, he would not have been allowed to take so much time off. What advantage of owning a small business is BEST displayed by Ben's situation? a. financial independence b. flexibility c. innovation d. opportunity e. self motivation

b. flexibility

In a partnership, the type of partner that is responsible for all claims against the company is called a(n) _____________. a. investor b. general partner c. unlimited partner d. limited partner e. sole partner

b. general partner

Robert wants to upgrade his real estate company's computer systems. Which of the following factors of production would Robert find LEAST useful for his project? a. financial capital b. real capital c. technology d. labor e. human resources

b. real capital

As a general​ rule, decision making in​ a(n) _______ is​ centralized, and the power to make decisions lies with​ top-level managers. a. horizontal organization b. vertical organization c. matrix organization d. network organization e. inverted organization

b. vertical organization

In order to enter the Spanish market, a Moroccan firm establishes a store that is entirely owned by Moroccan firm. This is an example of a(n)____________. a. strategic alliance b. wholly owned subsidiary c. exporting agreement d. joint venture e. contract manufacturing arrangement

b. wholly owned subsidiary

Gen-Xers

born between 1965-1981 "independent thinkers" who value family life

Millennials

born between 1982-2002 value work-life balance but have very high expectations for achievement in their careers

Business-to-business markets

businesses purchase goods and services from other businesses

Online intermediaries

businesses that buy goods/services and sell them to consumers

Not-for-profit organizations

businesses that do not pursue profits, but instead seek to service the community through social, educational, or political means

Green industry

businesses that provide environmentally friendly products and services

open market operations

buying and selling U.S Treasury and federal agency bonds on the "open market"

If Mom's outdoor clothing store combined with Dad's camping equipment store to form Mom's and Dad's Outdoor Store, which of following best describes the type of transactions that occurred between the two companies? a. A vertical merger b. A product extension merger c. A horizontal merger d. A conglomeration

c. A horizontal merger

Which statement about a Theory Y management style is FALSE? a. People see work as a natural part of life b. Managers allow employees to create their own motivation c. People mainly want security in their jobs d. People will inherently seek responsibility e. People mainly seek intellectual stimulation in their work

c. People mainly want security in their jobs

Corporate social responsibility is mainly concerned with how a company affects the ___________. a. family b. investor c. community d. vendors e. stockholders

c. community

When U.S. soldiers returned home from World War II, they influenced the marketing of products by ________. a. refusing to purchase any products made in the United States b. responding to the "hard sell" tactics companies were using to push products they didn't want c. getting married, starting families, and having the willingness to spend money d. being easily convinced to purchase new products on the market e. helping to create a seller's market

c. getting married, starting families, and having the willingness to spend money

An organization where power is distributed and employees work in groups or teams is a __________ organization. a. network b. vertical c. horizontal d. tall e. virtual

c. horizontal

A business is in legal compliance if a. it follows all the laws of which it is aware b. it cannot be proven guilty of violating any laws c. it meets all local, state, and federal regulations d. it hires only employees who do not have criminal records

c. it meets all local, state, and federal regulations

Trudy and Yvonne have come together to run Salford Children's Center. The center receives state and federal grants, and whatever is left over is put back into the center to improve and expand its services. Salford Children's Center would best be described as a(n) a. partnership b. LLC c. not-for-profit organization d. sole proprietorship

c. not-for-profit organization

Which of the following methods do not-for-profit corporations primarily use to generate revenues? a. withholding employee's salaries b. scaling down big-budget projects c. organizing fund-raising events d. issuing shares of corporate stock e. not providing employees with health insurance

c. organizing fund-raising events

An example of Herzberg's hygiene factors is a. feeling of belonging b. creativity c. safe working environment d. respect

c. safe working environment

Electronic monitoring

can be used to track emails, browsing histories, and cell phone usage

economic indicators

certain statistics about economic activities

Misuse of personal information

companies conduct marketing surveys to find out the marital status, annual income, age, sex, race, and other characteristics

multinational enterprises

companies that have operations in more than one country

culture

complex set of values, behaviors, lifestyles, arts, beliefs, and institutions of a population that are passed on from generation to generation

Place (distribution)

component of the marketing mix refers to all the methods involved in getting a product into the hands of customers

publicly owned corporation

corporations that are regulated by the Securities and Exchange Commission (since shares of ownership can be traded on public stock exchanges)

Large publicly-owned corporations

corporations whose stock are owned by more than 25 stock holders and are regulated by the Securities and Exchange Commission

Example of a nonconvertible currency

currency in Morocco

Steve​ Jobs, former CEO of​ Apple, was well known for his ability to inspire employees and customers alike to believe in the​ company's products and services. The love for​ Apple's products by customers and employees alike was so​ strong, their passion for the company was termed​ "The Cult of​ Apple." What type of leader was Steve​ Jobs? a. A​ laissez-faire leader b. An autocratic leader c. An affiliative leader d. A visionary leader e. A democratic leader

d. A visionary leader

Which of the following statements is TRUE? a. The Small Business Administration provides tax credits for small businesses b. The Small Business Administration is composed entirely of volunteers c. The Small Business Administration works to increase regulatory requirements for small businesses d. The Small Business Administration offers free online training to small business owners e. The Small Business Administration provides administrative services to small businesses

d. The Small Business Administration offers free online training to small business owners

Why might a potential business owner want to establish a business as a sole proprietorship? a. The owner can use personal assets to satisfy any business liabilities b. The owner can take into consideration the opinions of other business owners c. The owner can generate a separate tax return for business expenses d. The owner is not required to file legal paperwork to start up business

d. The owner is not required to file legal paperwork to start up business

Christina supervises a group of employees at a company that just went through a downsizing. Many other supervisors are no longer with the company and their employees have been assigned to Christina. Her group has doubled in size and there are some hard feelings among the employees. Christina decides to hold group breakfast meetings once a week to connect people to one another and to boost morale. She is an empathetic leader who listens to her employees and helps solve conflicts. Which of the following best describes Christina's leadership style? a. visionary b. autocratic c. pacesetting d. affiliative e. democratic

d. affiliative

A(n)__________ business is one that has at least 20 percent sales growth per year for five years, starting with a base revenue of at least $100,000. a. cheetah b. hyper-growth c. consistent-growth d. gazelle e. enterprise zones

d. gazelle

A multination company___________. a. makes a multitude of products domestically that it sells only within its own nation b. cannot serve only one country c. is only required to follow the laws of its home country d. may be challenged to language barriers e. must make products in several countries

d. may be challenged to language barriers

A U.S. company exports products to Russia. The prices of the U.S. products in Russia are going up because the value of the dollar has __________ against Russia's currency. a. depreciated b. equalized c. fallen d. risen e. stabilized

d. risen

Dan is excited to start marketing and selling his new indoor practice hockey tarps and would like to start today. He already has several hockey associations waiting to make purchases. Dan's best option for starting his business quickly and hassle free is a(n) ________. a. S corporation b. C corporation c. general partnership d. sole proprietorship e. master limited partnership

d. sole proprietorship

Democratic

delegating authority and involving employees in the decision making

Ethics training programs

designed to boost the awareness of their employees about ethical issues, training occurs throughout all levels of the organization

High traffic approach

designed to reach a wide audience with ads on popular sites

Top managers communicate with

directors, investors, business community leaders, and middle managers

arbitration

dispute is sent to another person for a decision and both parties agree in advance the arbitrator's decision is final

Anyone who is interested in buying a franchise must...

do homework upfront

unethical behavior

does not conform to a set of approved standards of social or professional behavior

Jodie owns a small business that is growing fast. She wants to put a document together that lets those within and outside the organization understand the​ company's purpose,​ goals, and philosophies. What should Jodie​ create? a. An operational plan b. A SWOT analysis c. A company code of ethics d. A strategic plan e. A company mission statement

e. A company mission statement

Which of the following is NOT an environmentally based corporate social responsibility issue? a. moving a "dirty industry" overseas where environmental regulation is lacking b. trucking toxic substances to Mexico to regions where it is legal to recycle them c. exposing employees to potentially hazardous materials d. allowing chemical contaminants to enter the local groundwater system e. allowing a negative corporate culture to adversely affect employees

e. allowing a negative corporate culture to adversely affect employees

All of the following contribute to accelerating globalization EXCEPT______________. a. a growing role for developing nations b. a rise in non-U.S foreign direct investment c. an increase in democratization d. a rise in multinational enterprises e. an increase in trade and investment barriers

e. an increase in trade and investment barriers

As a chief information officer, Bob looks for ways that his company's technological resources can generate bigger returns on its information technology investments. Which aspect of the CIO's role is he addressing? a. e-commerce b. system design c. currency of systems d. privacy and security e. budget

e. budget

Lizzie is the CEO of a large corporation that offers accounting services to several companies. She has tried to acquire her closest rival, but her rival's management is opposed to the idea. In order to gain a competitive edge, Lizzie starts a campaign to persuade her rival company's shareholders to vote out its existing management in the hopes of replacing it with a management team more sympathetic to the goals of the acquiring company. Which method of acquiring a company is Lizzie using? a. tender offer b. synergistic value c. conglomeration d. cooperative takeover e. proxy fight

e. proxy fight

As a last resort, union workers may choose to _________ and agree to stop working. These actions gain considerable media publicly, especially when the workers__________ by walking outside the workplace with signs that reflect employee grievances. a. lockout; boycott b. strike; boycott c. boycott; picket d. picket; strike e. strike; picket

e. strike; picket

Technical skills may include____________. a. the ability to recruit new employees b. the ability to monitor the performance of employees c. the ability to delegate work to others d. the ability to create and communicate goals e. the ability to operate a printing press

e. the ability to operate a printing press

Socialism is similar to communism in that ________. a. the government provides all of the social services b. the government does not intervene in industry c. the government does not charge taxes d. the government fails under economic stress e. the government distributes goods and services

e. the government distributes goods and services

Teresa and Luis are getting married next month. Which of the following elements of their wedding does NOT require a natural resource for its production? a. the wedding rings b. the bridesmaids' dresses c. the wedding cake d. the table centerpieces e. the wedding vows

e. the wedding vows

A sole proprietorship is the....

easiest to set up and the most common form of business ownership

Decision support systems

enable companies to analyze collected data so they can predict the impact of business

mentoring

enables experienced managers to work with inexperienced managers

period of existence of a partnership

ends upon death or withdrawal of a partner unless otherwise provided for in partnership agreement

Period of existence of a sole proprietorship

ends when proprietor dies or leaves business

Businesses

entities that offer products to their customers to earn a profit

mentors

experienced individual employees who hep a less experienced person by explaining how to perform specific tasks, creates opportunities to learn new skills, and counsel about the consequences of particular actions and decisions

Extrinsic motivators

external motivating factors that managers can control

O in SWOT

external opportunities, foreseeable external changes that could favorably affect a company's competitive capability

T in SWOT

external threats, external conditions that could negatively affect a company's competitive capability

determinants of demand

factors that affect the demand for a product

determinant of supply

factors that change in supply

privately held/closed corporations

fewer shareholders and are involved in the management and daily operations of the business

Grants

financial awards offered by federal and state governments and some private organizations

worker buyout (golden parachutes)

financial incentives to encourage older workers to retire

A limited liability corporation is...

flexible and can work for a business with one or more owners

Examples of work/life benefits

flexible schedules, relaxed atmospheres, child-care, and fitness/gym programs

System thinkers

focus on the entire process and are able to see the whole picture when they set up their businesses

American Federation of Labor(AFL)

founded in 1886 to protect skilled leaders

Management of a sole proprietorship

full control of management and operations

Raising capital of a partnership

funding raised through partner contributions

examples of collective business decisions

general level of unemployment

In limited partnership there are two kinds of partners

general partners and limited partners

substitute goods

goods that can be used in place of other goods

Laws are created in order to

govern the products or processes of a specific industry

supply curve

graph that represents the law of supply by showing the price and quantity supplied

flow state

happens when you are completely involved and focused on what you're doing

example of base character

honest, reliable, kind, self-centered, aggressive, courageous

technology changes

improvements in technology enable suppliers to produce their goods or services more efficiently and with fewer costs

free trade

in which countries produce and sell products anywhere in the world, exporting pollution to less developed countries

Psychological influences

include differences in the buyer's motivation, perception, attitudes, and learning

Situational influences

include the physical surroundings, social surroundings, and the type of product purchased

Marketing mix influences

include the product, price, promotion, and distribution aspects of purchases

Equipment(installations/capital items)

includes all the physical facilities of a business

Marketing environment

includes environmental influences beyond a firm's control that constrain the organization's ability to manipulate its marketing mix

public capital

includes roads, bridges, dams, electric grid lines, and telecommunication satellites

Knowledge workers

individuals valued for their ability to interpret and analyze information

360-degree appraisal

input for the appraisal is solicited, usually anonymously, not from just a person's managers but also from coworkers, customers, and subordinates

Spyware

installed on your computer without your knowledge

goodwill

intangible assets represented by businesses' name, customer service, employee morale, and other factors

Services

intangible products that are bought or sold

Price skimming

involves charging a high price for a product initially and then lowering the price over time

franchising

involves selling a well-known brand name or a proven method of doing business to an investor in exchange for a fee and a percentage of sales or profits

joint ventures

involves shared ownership in a subsidiary firm

Example of complementary goods

iphones and apps in appstore

consumer price index (CPI)

is a benchmark used to track changes in price of goods and services that consumers purchase over a period of time (shifts after economy changes)

sole proprietorship

is a business owned and usually operated by a single individual (any number of employees)

social environment

is an interconnected system of different demographic factors

middle managers

is made up of controller, sales manager, marketing manager, and operations manager; tactical planning and coordinating specific plans with the established strategic vision

top managers

is made up of corporate officers, CEO, or president; generate plans, long-term goals, mission statement, and vision for the organization

human resource management

is the organizational function that deals with the people in business

why does the government increase taxes?

it slows down the growth of businesses and the economy by reducing the amount of money in the system. It reduces inflation

EU's success is due to

its demonstrated commitment to the free flow of goods, services, capital, and people across borders in Europe

Scientific Management

managers use scientific study to determine the best methods to complete tasks and then train employees these methods to increase productivity

monopolistic competition

many buyers and sellers and little differentiation exists between the products, but there is a perceived difference among consumers (usually difference in price)

perfect competition

many buyers and sellers of virtually identical products , no barriers to market entry

Demographic segmentation

market segmentation according to age, race, religion, gender, family size, ethnicity, income, and education

Geographic segmentation

market segmentation according to geographic characteristics

Unlimited liability

means that if business assets aren't enough to pay business debts, then personal assets (house, investments, retirement plans) can be used to pay the balance

unlimited liability

means that if business assets aren't enough to pay business debts, then personal assets will be used to pay for it

cross-functional team

members are selected across a range of critical functional divisions of a business

Raising capitol of a limited-liability company (LLC)

members may sell interests to raise capital; there may be operating agreement restrictions

Equal Employment Opportunity Commission (EEOC)

monitors business compliance by investigating complaints about discrimination, sexual harassment, or violations of the ADA in a workplace

Affiliative (Laissez-Faire)

more advisory in style, encouraging employees to contribute ideas rather than specifically directing their tasks

Decrease in discount rate->

more money for lending at lower rates->stimulates the economy

Decrease in reserve requirement->

more money for lending-> stimulates the economy

Fed buys securities through open market operations->

more money for lending->stimulates the economy

Example of e-procurement

most states have e-procurement websites companies can use to bid on state projects

Example of CRM

most stores send e-mails with coupons and information about their sales

Exhibit emotional intelligence

most successful leaders possess a high degree of emotional intelligence, which is the ability to understand both one's own and other emotions

Inspire a shared vision

motivate people to care about the corporate goals or an important mission

When would a contingency plan be useful?

natural disasters

demand

need or want for an item

acquisition

occurs when one company completely takes over another company

trade surplus

occurs when the value of a country's exports exceeds the value of its imports

merger

occurs when two companies come together to form one company

Personal influences

on a buyer's consumption choices are shaped by their age, economic situation, lifestyle, and personality

Green economy

one that factors ecological concerns into business decisions

Specialized industry portals

online gateways to major sources of information, discussion forums, and product listings

oligopoly

only a few sellers offer similar or identical products

C corporation...

owners have limited liability for the debts of the business

Partnership the partners...

participate in management and accept unlimited liability

Control

people like to make decisions on their own and wouldn't be satisfied working for someone else

Contingent workers

people who are hired on an as-needed basis and lack status as regular full-time employees

structural unemployment

permanent unemployment that occurs when an industry changes in such a way that those jobs are terminated completely

termination

permanently laying off workers due to poor performance or a discontinued need for their services

Frank and Lillian Gilbreth used

photography to study employee work patterns and then analyzed these patterns to increase productivity

Goods

physical products that a business sells

Levels of Maslow's Hierarchy of Needs

physiological needs, safety and security, love and belonging, self-esteem, self-actualize

inverted organization

power is held in the employees, inverted pyramid

Maslow's Hierarchy of Needs

primary needs are met first before higher-level needs are addressed

Environmental scanning

process of surveying the market environment to assess external threats and opportunities

Niche portals (vertical portals)

provide expanded information on a specific product or market

multinational business

provide goods or services to international consumers or have suppliers or production facilities in other countries

Information sites

provide information about a particular industry

Social class

refers to a combination of factors such as education, income, wealth, and acquisition

Online advertising

refers to any form of advertising that uses the Internet to market its message to customers

Legal compliance

refers to conducting a business within the boundaries of all the legal regulations of that industry

e-procurement (electronic procurement)

refers to the online purchase and sale of products and services between businesses

Advertising-based models

rely on banner ads on other websites to attract customers

Fee-based models

require users to pay a subscription fee to view their content

Social entrepreneurs

set out to create innovating solutions in the social sector

Directors or board of directors

set policy for the corporation and make the major business and financing decisions, elect corporate officers

organizational chart

shows how groups of employees fit into the larger organizational structure

Time management skills

skills associated with the productive use of time

apportioned ownership interest

stock certificates that identify the number of shares they own

What type of plans does the middle management create?

tactical plans and contingency plan

Off-the-job training and development

techniques that require employees to participate in outside seminars, university-conducted programs, and corporate universities

Capital contributions

the amount of capital, including money, equipment, supplies, computers, and any other tangible thing of value that each partner contributes to begin the business and how additional capital can be added

CPI market basket

the collection of goods and services that the typical consumer buys

strategic plan

the course of action established by top managers, it reflects where the company wants to be in the future and how they are going to get there

coaching/understudy program

the employee works directly with senior management in planning and other managerial functions

Belbin's Team Roles

the idea that for a team to function effectively it needs key roles to be performed by team members—each role contributing a specific skill or behavioral dimension to the team dynamics; Belbin identified nine specific roles

synergy

the idea that when two companies combine, the result is better than each company could achieve individually

Distributors/wholesalers

the middleman in a distribution channel

reserve requirement

the minimum amount of money banks must hold in reserve to give their depositors who want to withdraw it

groupthink

the mode of thinking that occurs when the desire for harmony in a decision-making group overrides a realistic appraisal of alternative

Difference between sole proprietorship and partnership

the number of contributing resources and sharing the profits and losses of the business

controlling (or monitoring)

the process by which managers measure performance and make sure the company's plans and strategies are being or have bee carried out properly

Planning

the process of establishing goals and objectives and determining the best ways to accomplish them

Market segmentation

the process of separating the broader market into smaller markets that consist of similar groups of customers

organizing

the process of structuring the capital, personnel, raw materials, and other resources to carry out the plans in a way that best matches the nature of the work

management

the process of working with people and resources to accomplish the goal of the organization

controlling

the process that ensures that the plans and strategies set in place by management are properly carried out, ensures the company is working towards short and long term goals, identifies and corrects errors in the system

factors of production

the resources it uses to produce goods and services

exporting

the sale of a domestically produced good in a foreign market

economics

the study of how individuals and businesses make decisions to best satisfy the wants, needs, and desires with limited resources

organizational psychology

the study of how to create a workplace that fosters motivation and productivity among employees

Actual product

the tangible aspect of the purchase that you can touch, see, hear, smell, or taste

Gross National Products (GNP)

the total value of goods and services produced in a nation during a specific period

horizontal organization (flat organization)

the traditional pyramid is flattened

Consumer behavior

the ways individuals or organizations search for, evaluate, purchase, use, and dispose of goods and services

Good with people

they possess strong leadership and communication skills

Brokering sites

third-party sites that act as liaisons between providers and potential buyers of goods or services

Affiliative leadership is appropriate

to heal rifts in a team; to motivate during stressful times or strengthen connections

cyclical unemployment

unemployment that occurs when firms must cut back their work forces when there is a downturn in the business cycle (when demand for goods and services are low)

Customer Relationship Marketing Era

using marketing activities to establish successful customer relationships so that existing customer loyalty can be maintained

Service Corps of Retired Executives (SCORE)

volunteers that offer workshops and counseling to small businesses at no cost

Motivated to succeed

want to provide for themselves and their families or they want personal fulfillment

Companies prefer____________, consumers prefer__________.

weak dollar, strong dollar

Angel investors

wealthy individuals willing to put up their own money in hope of a profit return (invest in projects with less money than venture capitalist)

Company website

websites are designed to sell goods or services to business clients rather than household consumers

price fixing

when a group of sellers agree on a fixed price to overcharge consumers

line organization

when all authority and responsibility can be traced in a direct line from the top executive down to the lowest employee level in the organization

shortage

when demand exceeds supply

bartering

when people trade goods or services without an exchange of money

business cycle

when the economy goes through periodic increases of inflation and decreases of inflation

sick-outs

when union members are not officially on strike but call in sick

Example of a good and service

when you order a steak at a restaurant you're paying for the steak and the service of preparing, cooking, and serving the steak

tender offer

where the acquiring firm offers to buy the target company's stock at a higher price than its current value to induce shareholders into selling

capital flight

where the country's domestic funds are exchanged into foreign currency outside the country

belief origins

where your beliefs came from and your character came from

code of ethics

written statement of a company's commitment to certain ethical practices

Parts of Management

1. Planning 2. Organizing 3. Controlling/Monitoring 4. Leading

Example of specialized professional services

1. Advertising 2. Management consulting 3. Legal 4. Accounting

Examples of demographic segmentation

1. Age 2. Race 3. Religion 4. Family size 5. Ethnicity 6. Gender 7. Income 8. Education 9. Labels written in English and Spanish

pros to a horizontal organization

1. each team has more responsibility for the outcome of its work 2. less competition over power, but a push toward collaborative work 3. employees have more responsibility and decision-making authority

CPI market basket can help determine what?

1. how the economy is doing 2. how inflation rates are affecting spending habits in specific areas of the economy

most companies want to achieve a goal in...

5 years

franchisee

A person who buys a franchise

why does the government decrease taxes?

A tax cut can help stimulate the economy but the amount of money entering the system depends on how much consumers save and spend

example of oligopoly

AT&T, T-Mobile, Sprint, Verizon,

Predatory pricing

Charging very low prices with the intent of destroying competition

Implementer

Disciplined and reliable

Example of countertrade

General Motors, Good Year, Coca Cola, and Pepsi

Example of acquistion

Google bought Android

Actual approach

Initial contact

What is an example of Not-for-profit organizations

NRA

Example of a market extension merger

NationBank (East Coast and South) merged with Bank of America (West Coast)

Full-service wholesalers

Provide a full line of services such as carrying stock, maintaining a sales force, offering credit, making deliveries, and providing management assistant

Business to business products

Purchased by businesses for further processing, resale, or supplies

Interpersonal skills

Skills that promote relationships with other people

Example of contextual advertising

Someone reading a snowboarding blog might see a Red Bull ad featuring snowboarder Shawn White

LinkedIn

a social networking site that connects people with others that they know through college, graduate school, or professional affiliations

Saadia is responsible for the overall operation of the company for which she​ works, and reports directly to the Board of Directors. Which of the following is most likely​ Saadia's job​ title? a. Chief executive officer b. Chief financial officer c. Chief security officer d. Chief operating officer e. Chief technology officer

a. Chief executive officer

Most countries operate under a(n) ________ exchange rate system. a. Free-Floating b. Fixed c. Stable d. immeasurable e. Inflexible

a. Free-Floating

Which of the following international organizations promote free trade? a. GATT b. The euro c. The IMF d. All of the above

a. GATT

What BEST determines the level of competition? a. the existence of complementary goods b. the number of substitutes for a certain good or service c. the number of complementary products or service d. the degree of population change e. the degree of change in income levels

a. the existence of complementary goods

Small Business Administration (SBA)

an independent agency of the federal government that was formed to aid, counsel, assist, and protect the interests of small business

Informediary

an information site that gives businesses information about current standards and developments

Calvert Investment Company

assigns companies scores based on environment, workplace, business practices, human rights, and community relations

When is the annual budget for an organization developed? a. during strategic planning b. during tactical planning c. during operational planning d. during contingency planning e. during SWOT analysis

b. during tactical planning

What type of organization do most startup companies​ utilize? a. A tall organization b. A line organization c. A matrix organization d. A flat organization e. An inverted organization

b. A line organization

Database management systems are MOST useful because___________. a. the company can hire more people to collect and analyze the data b. they help businesses manage vast amounts of data collected in the process of doing business c. information technology managers prefer to use software systems rather than qualitative systems d. clients are impressed by firms with high technology budgets e. customers prefer companies that rely on database management systems

b. they help businesses manage vast amounts of data collected in the process of doing business

According to​ Herzberg's motivator-hygiene​ theory, responsibility,​ recognition, promotion, and job growth are all​ __________ factors. a. intrinsic b. hygiene c. motivator d. extrinsic e. safety

c. motivator

as price decreases

demand increases

A group of similar products marketed to one general market is called a product ____________. a. width b. mix c. length d. variety e. line

e. line

The middlemen in a distribution channel are sometimes called ________. a. clerks b. consumers c. assembly line workers d. salespeople e. wholesalers

e. wholesalers

Primary data

raw data collected by the researcher

Realistic

reasonable given resources available

Innovative

recognize opportunity niches, introduce new products, or make improvements to existing products

Taxation of a corporation

separate taxable entity, corporation files its own tax return

Intrapreneur

someone who works inside an existing organization who sees an opportunity for a product or service and mobilizes the organization's resources to try to realize it

liability

the obligation to pay a debt

Minimizing a company's carbon footprint is part of a plan to increase corporate philanthropy True or False

False

The supply of services is not part of the study of economics because it does not involve the exchange of goods. True or False

False

When a company follows a strong CSR program, it will restrict opportunities for growth True or False

False

Knockoff brands

Illegal copies or cheap imitations of a product

Semicontrolled messages

Messages are placed on websites, in chat rooms, blogs, and sponsorships

Specialty goods and services

Products that buyers are willing to spend a great amount of time and effort searching for particular brands/styles

When a car is purchased, form utility refers to the value customers receive from a. Owning the car b. The styling and function of the automobile c. Ready availability and speed with which the dealer made the car available for purchase d. Close proximity to the car dealership

a. Owning the car

Market information

Wholesalers assume the risks associated with storage and transportation

Example of wholesalers

Your local grocery store probably purchased Tide laundry detergent on its shelves from a wholesaler who bought it from Procter and Gamble

Which of the following is NOT a primary source of data? a. customer feedback b. accounting records c. sampling d. interviews e. controlled experiments

b. accounting records

Diane Pollock was recently promoted to middle management based on her excellent interpersonal skills. These skills help her because one of the primary roles of a middle manager is to ________. a. understand how world events will affect the company's growth b. act as a liaison among different groups in the company c. develop software to maximize the company's efficiency d. draft a handbook that outlines the company's rules and regulations e. track carefully how employees time is spent

b. act as a liaison among different groups in the company

What is the annual budget for an organization developed? a. during contingency planning b. during tactical planning c. during SWOT analysis d. during operational planning e. during strategic planning

b. during tactical planning

________ refers to the application of products like Facebook in a corporate setting. a. Cloud computing b. Enterprise social networking c. Crowdsourced funding d. Executive information system e. Viral marketing

b. Enterprise social networking

_______ occurs when there are many buyers and sellers of products that are virtually identical and any seller can easily enter and exit the market. a. A duopoly b. Perfect competition c. An oligopoly d. Monopolistic competition e. A monopoly

b. Perfect competition

At which point in the business cycle is the economy when GDP declines for two or more successive quarters? a. Peak b. Recession c. Trough d. Expansion or recovery

b. Recession

Which marketing era occurred during the Great Depression when manufacturers almost had to force consumers to purchase their products? a. Production concept era b. Sales concept era c. Marketing concept era d. Customer relationship era

b. Sales concept era

Steven Ye wants to start a company. He has a rough draft of his business plan and some tentative funding but needs some additional advice and guidance to help him through the start-up process. The best source for Steve is a. an angel investor b. a SCORE volunteer c. his parents d. a bank loan officer

b. a SCORE volunteer

Terrell urgently needs to take care of some personal business using the Internet, but he is afraid that he might jeopardize his job if he is found using the company network for personal use. Which corporate practice is causing Terrell to most likely feel this concern? a. intellectual property monitoring b. electronic monitoring c. technology auditing d. whistle-blowing e. job tracking

b. electronic monitoring

A disadvantage of limited liability company is that it _________. a. requires earnings to be taxed at the corporation rate b. must dissolve when an owner leaves the company c. requires the division of profits in a fixed proportion d. has more restriction ownership rules than S corporations e. is required to hold annual meetings

b. must dissolve when an owner leaves the company

The nation of North Xi has a ___________ currency that cannot be exchange in a foreign exchange market. a. countertrade b. nonconvertible c. flexible d. fixed e. freely floating

b. nonconvertible

Andre had a difficult time finding a job after college. Eventually he found work selling office equipment, which did not interest him much. Andre's sales are low and so is his motivation to do more for the company for which he works. According to the Q12, Andre is classified as ___________. a. engaged b. not engaged c. actively disengaged d. highly engaged e. unengaging

b. not engaged

If a film decides to shift the production of goods or services to an overseas company, this firm is a. diversifying b. offshoring c. telecommuting d. forming a partnership

b. offshoring

Greg is 57 years old and is looking for a new job even though he knows many companies prefer not to hire older workers. Which of the following is likely a disadvantage of hiring Greg? a. higher absenteeism b. lower training costs c. expectation of a fairly high salary d. unwillingness to learn new skills e. higher turnover rate

c. expectation of a fairly high salary

An online dating service that charges members makes money primarily through using a(n) ________. a. intermediary model b. community-based model c. fee-based d. niche model e. advertising-based model

c. fee-based

The key to coming up with a great business idea is to: a. develop an innovative product or service. b. offer a product that is similar to others. c. fill an unmet need. d. provide a product or service that no one else offers.

c. fill an unmet need.

Internet entrepreneurs

create businesses that operate solely online

Which of the following is a typical characteristic of a business-to-business market? a. an individual makes the purchasing decision b. geographically dispersed buyers c. weak customer relationships d. complex buying decisions e. many customers who purchase in small quantities

d. complex buying decisions

If​ Walmart, a giant​ retailer, merges with Wells​ Fargo, a large​ bank, in order to offer​ low-cost financial services to​ Walmart's customers, this would be an example of​ a(n) __________. a. vertical merger b. acquisition c. product extension merger d. conglomeration e. horizontal merger

d. conglomeration

To avoid debt, a new business owner should have enough projected revenue to cover expenses for the first a. six months b. year c. two years d. five years

b. year

​Safety, belonging, and​ self-actualization are all components of​ __________. a. Expectancy theory b. ​Maslow's hierarchy of needs c. Three needs theory d. equity theory e. Theory X

b. ​Maslow's hierarchy of needs

Fed serves as a

bank to other banks "last resort"

Contextual advertising

bases the online message on the content of page

Example of technology changes

better coffeemaker/software program, instead of hammer and nail using a nailgun

Gross Domestic Product (GDP)

broadest measure of the health of any country's economy, includes goods that are being produced in that country

productivity is an indicator of a....

business's health

Entreprenual talent is...

essential to the success of businesses

Nurture good customer relationships

establish long-term trusting relationships with individual customers

wholly-owned subsidiary

establishes a foreign facility owned entirely by the investing firm

Fair Labor Standards Act

establishes minimum wage and how to pay overtime and governs the use of child labor

What factor influences the amount of a surplus or deficit?

exchange rates

value

equals the ratio of the product's benefits to its costs

Challenge the process

not always accepting conventional beliefs and practices as the only way to accomplish tasks

span of control

number of employees being supervised by a specific person

Group flow

occurs when a group knows how to work together so that each individual member can achieve flow

turnkey projects

occurs when firms export their technological know-how in exchange for a fee, usually for sophisticated and complex manufacturing; once the facility is up and running the locals are trained, then the keys are turned over to foreign owners

double taxation

occurs when the corporation is first taxed on its net income/profit then distributes that net income to its shareholders in the form of dividends that the individual shareholder must then pay taxes on

Life experiences offer all of us...

opportunities to develop our personal ethics

Preliminary paperwork of a limited-liability company (LLC)

organizational paperwork must be filed with state and federal agencies

Business incubators

organizations that support start-up businesses by offering resources such as administrative services, technical support, business networking, and sources of financing

Adware

software that automatically displays or downloads advertising material (often unwanted) when a user is online.

Which method of entering foreign markets has the advantage for test-marketing a product in a foreign market at the lowest cost? a. joint ventures b. wholly owned subsidiaries c. exporting d. contract manufacturing

d. contract manufacturing

_______ refers to how much of a product or service people want to buy at any given time. a. surplus b. commodity c. supply d. demand e. equilibrium

d. demand

Tactical planning and coordinating specific plans with the established strategic vision is the task of the _____________. a. first-line managers b. junior managers c. top managers d. middle managers e. CEO

d. middle managers

The many product lines at Procter & Gamble are an example of product ________. a. line width b. line length c. mix length d. mix width e. mix line

d. mix width

If a Turkish company closes its U.S. offices on Easter Sunday, the company is giving PRIMARY consideration to ________. a. language b. attitudes c. aesthetics d. religion e. ethnocentrism

d. religion

example of behaviors

"I have mostly shallow relationships because I tend not to follow through my commitments" or "I have many deep, long-lasting friendships because I value friendship and work to take care of my friends"

Example of low motivation

"Nothing I do is going to impact the situation", "Even if it does go well, I'll get a reward if this works out", "The only reward from this is incredibly small"

Example of create a new vision

"This isn't your father's Olds mobile" campaign

Disengaged employees cost the economy up to ________ billion a year

$300

World Trade Organization (WTO)

-152 member countries -Attributes global trade disputes -Has power to enforce decisions -Took GATT rules and extended rules to services and increased protection

Marketing Era

-Develop products that meet customer needs -Commit total organization to delivering superior products and customer service -Focus on products with highest profit

The European Union

-established in 1957 -28 member countries -largest free trade area -1/3 of the world's largest production -Largest exporters/second largest importer

Examples of promotional mix

1. Advertising 2. Public relations 3. Sales promotion 4. Personal selling

A workforce profile has information such as

1. Age 2. Education 3. Training 4. Experience 5. Specialized skills 6. Current position 7. Previous positions

Organizing

1. Allocating resources 2. Creating an organizational structure 3. Recruiting and placing employees

Following up

1. Answer questions, provide training/solutions

Idea Screening

1. Ask yourself: Will my target market benefit from this product? 2. Ask yourself: Can this product be competitive with similar products

Three Dominant Generations in the workplace today

1. Baby boomers 2. Gen-Xers 3. Millennials

Stephen Corey's Seven Habits of Highly Effective People

1. Be proactive 2. Begin with the end in mind 3. Put first things first 4. Think win-win- be positive 5. Seek first to understand, then to be understood-Listen then talk 6. Synergize- Brainstorm with other people 7. Sharpen the saw- update your skills and recharge your batteries

Examples of behavioral segmentation

1. Benefit sought 2. Volume usage 3. Brand loyalty 4. Price sensitivity 5. Product end use 6. Buying only one brand of toothpaste regardless of the price 7. Buying cranberry sauce only at Thanksgiving

Example of family brand

1. Bic makes pens, razors, and lighters 2. Kellog's 3. SonyTh

Example of outdoor media

1. Billboards 2. Signs in sports arenas 3. Ads painted on vehicles and skyscrapers

Services provided by merchant wholesalers

1. Bulk breaking 2. Financing 3. Management service and advice 4. Market information 5. Risk bearing 6. Selling and promoting 7. Transportation 8. Warehousing

Advantages of sales promotion

1. Can stimulate quick increases in sales by targeting promotional incentives on particular products 2. Good short-term tactical tool

Components of a partnership agreement

1. Capital contributions 2. Responsibilities of each partner 3. Decision-making process 4. Shares of profits and losses 5. Departure of partners 6. Addition of partners

Types of limited-service wholesalers

1. Cash-and-carry wholesalers 2. Truck wholesalers (Truck jobbers) 3. Drop shippers 4. Rack jobbers

Traits of Leadership

1. Challenge the process 2. Inspire a shared vision 3. Model the way 4. Exhibit emotional intelligence 5. Enable others to act

Factors of determinants of demand

1. Changes in income levels 2. Population changes 3. Consumer preferences 4. Complementary goods 5. Substitute goods

Place

1. Choose the right distribution channel 2. Select distributors and wholesalers

Examples of firms who have created opportunities and new types of product and services

1. Clean fuel 2. Medical vaccines 3. Fighting censorship 4. Going green

Characteristics of autocratic leadership

1. Commands "Do it because I say so" 2. Threatens 3. Has tight control 4. Monitors studiously 5. Creates dissonance 6. Contaminates everyone's mood 7. Drives away talent

How can a company maintain their ethical focus?

1. Communicate regularly about acceptable and unacceptable business practices 2. Develop a strict code of ethics and check to make sure the code is being followed 3. Create a hotline for employees to anonymously report violations of the ethics code and make sure the allegations are followed up on 4. Show how serious the company is about ethics and employee ongoing training

Pros to CSR

1. Company develops a positive reputation in the marketplace (consumers and suppliers) 2. Company enjoys strong recruitment and retention of talent 3. Efficiency increases when companies use materials efficiently and minimize waste 4. Sales increase through new product innovations and environmentally and ethically conscious labeling

Business to Business (B2B) Online

1. Company websites 2. Procurement exchange 3. Specialized industry portals 4. Brokering sites 5. Information sites

Purpose of packaging

1. Contains/protects the product 2. Facilitates use/convenience 3. Promotes the product 4. Affects the environment

Consumer Product Classifications

1. Convenience goods and services 2. Shopping goods and services 3. Specialty goods and services 4. Unsought goods and services

E-commerce of CIO

1. Create and maintain an Internet storefront 2. Drive traffic to corporate web site 3. Maintain secure interactions

Policies of CIO

1. Create policies regarding security, privacy, and intellectual property

Systems Design and Development of CIO

1. Create specifications for required programs 2. Create, test, and maintain custom software programs

Impact of Technology on Small Businesses

1. Creates entirely new business opportunities 2. Low-costs of marketing 3. Creates opportunity to pretest product ideas and advertising upcoming promotions 4. Business owners must monitor and update social networking pages

The Four C's

1. Customer wants and needs 2. Cost to satisfy 3. Convenience to buy 4. Communication

Market Research Steps

1. Define the need, problem, or objective 2. Collect relevant data 3. Analyze data 4. Interpret results 5. Act on conclusions

What are the 4 types of leadership?

1. Democratic 2. Autocratic 3. Affiliative 4. Visionary

Product Analysis

1. Determine a desired sale price 2. Assess the cost of production

Hiring process

1. Determine initial pool of candidates from applicant files 2. Conduct initial and follow-up interviews 3. Test for specific job skills 4. Conduct background and reference checks 5. Make final selection 6. Hire and monitor through probationary or trial period

The Marketing Concept

1. Develop products that meet customer needs 2. Commit total organization to delivering superior products and customer service 3. Focus on products with highest profit

What are the challenges of multinational businesses?

1. Differences in international laws 2. Cultural differences (time, schedule) 3. Economic differences (taxes, interest)

Cons to CSR

1. Difficult to measure how CSR interacts with a long-term responsibility to the community or planet 2. Difficult to balance profits for shareholders and quality for consumers 3. Difficult to balance the demands of social responsibility with successful business practices 4. Difficult to conduct a profitable business while being environmental friendly

Aspects of performance management

1. Direction sharing 2. Rule clarifying 3. Goal setting 4. Ongoing performance monitoring and feedback 5. Coaching and support 6. Performance assessment 7. Rewards, recognition, and compensation 8. Work flow, process control, and return on investment

Problems with performance appraisals

1. Discomfort with negative feedback 2. Difficulty quantifying performance 3. Lack of follow-up

Advantages of a sole proprietorship

1. Easy to set up 2. Greater control and flexibility 3. No separate tax return 4. Business losses can offset personal income

Example of raw and processed materials

1. Eggs 2. Butter 3. Wood 4. Steel

What are the effects of CSR on Society?

1. Environmentally, has local and global effects 2. Economically, if a company behaves irresponsibly it can have negative effects on consumers and stakeholders 3. Employees' morale, person's personality and values can affect a company's advancement, work environment, and sense of purpose and value

What are the contributions of small businesses?

1. Foster innovation 2. Help bigger companies 3. Help consumers

Advantages to publicity

1. Free 2. Believable, since it is presented like a news story

In the United States, small businesses...

1. Generates 64% of net new jobs 2. Create nearly 1/2 of the U.S GDP 3. Export 1/3 of all U.S exports of goods and services 4. Represents the second largest economy in the world

What are 10 ways to get promoted?

1. Get a mentor 2. Learn outside of work 3. Self-promote your successes 4. Volunteers 5. Ask questions 6. Be consistent 7. Help your colleagues 8. Tell your boss you want to be promoted 9. Be a team player 10. Create your opportunities

Due diligence checklist

1. Get an independent valuation of inventory and equipment 2. Have an accountant review the financial statements for the past three years 3. Have a lawyer analyze pertinent business documents, property leases, employment contracts 4. Talk to suppliers to see if they will continue to supply the business when ownership changes hands 5. Check for lingering or festering hazardous waste problems

What are the 3 economic indicators watched by business people?

1. Gross domestic product 2. Consumer and producer price indices 3. The unemployment rate

What are some global business trends?

1. Growing role for developing nations, U.S isn't dominant in exports 2. A rise in non-U.S foreign direct investment (FDI) 3. A rise in non-U.S multinational enterprises 4. Increasing democratization, free-market economies are involved in the global economy

International Economic Challenges

1. Growth development, more people than an advanced economy (have no transportation, communication systems, technology, or utilities) 2. Government policies and the economic environment, international businesses prefer free market economies (government interventions drives costs up) 3. Socioeconomic factors, includes demographic factors, birth rates, and culture

Leading

1. Guiding and motivating 2. Achieving results and milestones 3. Maintaining unit/ organization's focus on the goal or vision

Example of convenience goods and services

1. Gum 2. Soap 3. Tobacco 4. Newspapers 5. Ketchup 6. Milk 7. Car wash

cons to a vertical organization

1. Have to communicate up the chain 2. Makes it difficult for the company to respond quickly to changes in a market

Benefits of International Trade

1. Higher standard of living due to greater quantity and variety of higher-quality products

Advantages of personal selling

1. Highly interactive communication between the buyer and the seller 2. Excellent for communicating a complex product, information, and features 3. Good for building customer relationships and closing a sale

B2B purchasing process

1. Highly trained buyers 2. Group purchasing decision 3. Complex buying decisions 4. Close and personal selling relationship between marketer and buyer 5. Personal selling

What are two major factors that determine an international firm's strategy?

1. How important it is for a business to keep its costs down and prices low? 2. How necessary is it for a company to customize or differentiate its product to adapt to different customer tastes and preferences around the glob?

The Corporate Social Responsibility (CSR) policies cover what areas?

1. Human rights and employment standards in the workplace (affects local and global) 2. Ethical sourcing and procurement (source of raw materials) 3. Marketing and consumer issues (ads may be manipulative) 4. Environmental, health, and safety concerns (decisions that affect environment) 5. Community and "good neighbor" policies (companies affect communities)

New Product Development Steps

1. Idea Generation 2. Idea Screening 3. Product Analysis 4. Development and Testing 5. Product and Marketing Mix Development 6. Marketing Testing 7. Commercialization

The Marketing Process

1. Identify a Market Need 2. Conduct Market Research & Develop a Marketing Plan 3. Identify Target Customers (Segment) 4. Implement the Marketing Mix 5. Nurture Good Customer Relationships

Stages of decision making

1. Identify the problem 2. Generate alternative solutions 3. Evaluate the alternative solutions based on criteria 4. Choose the best plan of action 5. Evaluate the decision to ensure its carried out correctly and meets the goals of the organization

Disadvantages of sales promotion

1. If used over the long term, customers may get used to the effect 2. Too much promotion may damage the brand image

Benefits of employee training

1. Increased job satisfaction, motivation, and morale among employees 2. Greater efficiency in work, resulting in financial gain 3. More effective use of new technologies and methods 4. Development of new strategies and products 5. Lower employee turnover 6. Fewer interpersonal conflicts and better communication

Disadvantages of buying an existing business

1. Initial purchase price may be high, difficult to determine true value of previous owner's goodwill 2. Stuck with previous owner's mistakes, might inherit dissatisfied customers, bad debt, and unhappy distributors/purchasing agents 3. No guarantee that existing employees/suppliers, if staff stays you may inherit unanticipated problems

Secondary Sources of Data

1. Internal corporate information 2. Trade associations 3. Commercial sources 4. Government data 5. Magazines and newspapers 6. Social media, internet databases, and search engines

Commercialization

1. Introduce the product to the market 2. Begin the rollout process

Steps of a product life cycle

1. Introductory Stage 2. Growth Stage 3. Maturity Stage 4. Decline Stage

operational plan...

1. Involves planning the execution of the tactical plan 2. Depends on daily or weekly schedules 3. Focuses on specific department or employees

Advantage of franchising

1. It is a proven system of operation, have standard products and systems 2. There is a strength in numbers, institutions lend materials to franchises since they're stable 3. Initial training is part of the deal 4. Marketing support is provided, have the benefit of national advertising programs 5. Market research is often provided, can identify the competition and offer strategies

SAS, a billion dollar software company fosters a creative environment by...

1. Keeping employees intellectually engaged 2. Removing distractions so employees can do their best work 3. Making managers responsible for sparking creativity 4. Managers eliminate the arbitrary distinctions between administrative "suits" and more abstract "creatives" 5. Engages customers as creative partners 6. Provides perks such as day care, medical facilities, and a family cafeteria

What are some benefits of a well-defined vision and mission statement?

1. Keeping management on track by ensuring strategies are consistent with the organization's goals 2. Inspiring employees 3. Giving investors insight into the values of the organization

contingency plan...

1. Keeps an organization running in the event of a disruption 2. Details internal and external communication procedures for such an event 3. Determines which departments are most vital to an organization during a crisis

Disadvantages of franchising

1. Lack of control, no way to be creative 2. Start-up costs, large start-up fee and monthly royalty fee 3. Workload, no easy hours 4. Competition 5. Share common problems

B2C nature of the buying unit

1. Less sophisticated and more emotional purchase decision

Example of manufacturer's brand

1. Levi's Jeans 2. Dell computers 3. Ford 4. IBM 5. McDonald's 6. Bank of America 7. Ben and Jerry's 8. Google

Example of unsought goods and services

1. Life insurance 2. Cemetery plots 3. Pharmaceutical drugs 4. Emergency medical services 5. Automobile repairs

Examples of psychographic segmentation

1. Lifestyle 2. Personality traits 3. Motives 4. Values 5. Whole Foods and Trader Joe's focus on consumers interested in healthier, organic foods

Disadvantages of internal recruiting

1. Limited pool of candidates 2. Creates cascading internal vacancies 3. May increase resistance to change

Characteristics of democratic leadership

1. Listens well 2. Is a team worker 3. Collaborates 4. Influences

Benefits of theory z

1. Low turnover 2. High productivity 3. Strong workforce morale

Methods to extend the product life cycle

1. Lower the price 2. Create a new use 3. Find a new market 4. Use new labels or different container types 5. Create a new vision

Steps businesses take to make sure employees get off to an ethical environment:

1. Managers can design a strict code of ethics that defines acceptable and unacceptable behavior 2. Managers can make a mission statement that is in place and communicated throughout the business 3. The company can offer orientation programs to new employees to inform them of the ethical standards in place and the conduct expected of them

B2C market structure

1. Many customers 2. Small-volume purchases 3. Geographically dispersed

Cons to Marketing

1. Misuse of personal information 2. Hidden fees 3. Consequences of purchase

Disadvantages of a partnership

1. Must share control and profits 2. Need the right partner 3. Differences in opinion on company's direction 4. Unlimited liability

Arguments in Favor of Protectionist Trade Barriers

1. National Security Argument 2. Infant Industry Argument 3. Cheap Foreign Labor Argument 4. Threat of Retaliation (Bargaining Chip) Argument

Characteristics of Theory Y

1. Naturally motivated 2. will create their own motivation 3. creative problem solvers 4. seek added responsibility 5. need intellectual stimulation

McClelland's Three Needs Theory

1. Need for achievement- to accomplish something difficult on your own 2. Need for affiliation- to form close personal relationships 3. Need for power- to be able to control the behavior of others

Consumer Buying Process

1. Need recognition 2. Information search 3. Evaluation of alternatives 4. Purchase or no purchase decision 5. Post-purchase evaluation

Organizational structure depends on a variety of factors such as

1. Number of employees in an organization 2. Speed at which decisions need to be made 3. Subjectivity of the business to rapid change 4. Collaborative nature of work

Primary Sources of Data

1. Observations 2. Questionnaires and surveys 3. Experiments 4. Interviews and focus groups 5. Customer feedback

Disadvantages of social media

1. Often difficult to maintain and manage all conversations 2. Negative news travels fast

Reasons to start a small business

1. Opportunity knocks 2. Financial independence 3. Control 4. Flexibility 5. Unemployment

What are the four stages of the business cycle?

1. Peak 2. Recession 3. Trough 4. Expansion/recovery

Market Testing

1. Place product in select target market 2. Virtual reality or simulated tools can help customers

Strategies used to impact price perceptions include

1. Prestige pricing (premium pricing) 2. Psychological pricing (odd/fractional pricing) 3. Reference pricing

Example of maintenance, repair, and operating (MRO) products

1. Printing paper 2. Pens 3. Cleaning materials 4. Tools 5. Lubricants for machines

Development and Testing

1. Produce a virtual or conceptual prototype 2. Get feedback from potential customers

Product and Marketing Mix Development

1. Produce physical prototype 2. Obtain more feedback from potential customers

The Evolution of Marketing

1. Production Era - 1900 2. Selling Era -1930 3. Marketing Era -1950 4. Societal Marketing Era -1970 5. Customer Relationship - 1990

Characteristics of affiliative (laissez-faire) leadership

1. Promotes harmony 2. Emphasizes with others 3. Boosts morale 4. Solves conflict

The Personal Selling Process

1. Prospecting 2. Approaching the prospect 3. Presenting 4. Overcoming objections 5. Closing the sale 6. Following up

when choosing a legal structure for their businesses, most entrepreneurs want to achieve two goals

1. Protect themselves from personal liability 2. Have the income of their businesses flow through to their individual tax returns so they don't face double taxation

Overcoming objections

1. Provide additional information to answer questions or resolve doubts

Motivator Factors

1. Recognition 2. Responsibility 3. Promotion 4. Job growth

Advantages of buying existing business

1. Reduction in start-up time and energy if business is operational 2. Has existing satisfied customer base 3. If business has positive track record may be easier to finance

Examples of geographic segmentation

1. Region 2. Suburban 3. Rural 4. City 5. Country 6. Population density 7. Climate 8. Terrain 9. Food preferences 10. Air conditioning 11. Heating needs 12. Apparel 13. Skis 14. Snow blowers 15. Four-wheel-drive vehicles

Fed uses 3 tools to affect money supply

1. Reserve requirements 2. Short-term interest rates 3. Open market operations

Disadvantages of public relation

1. Risk of losing control 2. Cannot always control what other people write or say about your product

Hygiene Factors

1. Safe working environment 2. Proper pay and benefits 3. Relationships with co-workers

IT Department Tasks

1. Security 2. Emergency recovery 3. Equipment 4. Networks and databases 5. Software 6. Training 7. Custom software 8. Mobile computing 9. Remote access

Control Cycle

1. Setting performance standards. 2. Measuring performance. 3. Make adjustments 4. Perform corrective action 5. Reevaluate performance standards 6. Repeat

Corporate structure

1. Shareholders 2. Board of Directors 3. Chief Executive Officer 4. Corporate Officer 5. Line Managers 6. Employees

Sources of help that a small business owner can turn to

1. Small Business Administration (SBA) 2. Service Corp of Retired Executives (SCORE) 3. Entrepreneurs Organization (EO) 4. Business incubators 5. Advisory board

Types of Retailers

1. Specialty store 2. Department store 3. Supermarket 4. Convenience store 5. Discount store 6. Factory outlet 7. Warehouse club

Different types of trade barriers:

1. Tariffs 2. Subsidies 3. Quota 4. Embargo 5. Local content requirement

What are the determinant of supply?

1. Technology changes 2. Changes in resource prices 3. Price expectations 4. The number of suppliers 5. The price of substitute goods

Examples of training methods?

1. Teletraining 2. Video conferencing 3. Electronic Performance Support Systems (EPSS)

Presenting

1. Tell the product's story 2. Conduct demonstrations

In order to be an S corporation...

1. The company must not have more than 100 shareholders 2. Shareholders must be U.S citizens/ residents 3. The company must issue only one class of stock 4. The company must distribute proportionately all profits and losses to each shareholder based on each one's interest in business

Costs of International Trade

1. Threats businesses with international competition 2. Domestic businesses may lose market share to foreign companies causing them to shut down

A network organization is suitable for companies that need

1. To be flexible and innovative as possible 2. To respond quickly to threats and opportunities 3. To save time 4. To reduce costs and risk

Economists Argument Against Protectionism Trade Barriers

1. Trade barriers benefit domestic producers and their workers but hurt domestic customers 2. It is more effective to educate displaced individuals so they may move into a line of business with comparative advantage and rising demand

Trade Sales Promotions

1. Trade shows and conventions 2. Sales contests 3. Catalogs 4. In-store demonstrations 5. Quantity discounts 6. Training and support programs

Can you affect how businesses operate ethically?

1. Your own ethical behavior 2. Who you do business with 3. Who you invest in 4. Who you work for

Advantages of teamwork

1. agreement on the objectives and the best approach to solve the problem 2. depend on one another's ideas and efforts to complete tasks successfully 3. sense of accountability and members are committed to one another's success

businesses use what baselines to create their own values?

1. base character 2. beliefs 3. belief origins 4. behavior

Advantages of franchising

1. costs and risks of opening the foreign market fall on the franchise

Characteristics of a group flow

1. creative spatial arrangements 2. playground design 3. constant focus-on the target group for the product 4. heavy use of visualization and prototyping-are then refined to make models more efficent

Tactical plans...

1. determines resources and actions necessary to implement strategic plan 2. made with a one to three-year horizon in mind

Advantages of S corporations

1. do not pay corporate income taxes, shareholders pay income taxes based on their share of business profits and pay taxes through individual tax return 2. profits and losses pass through to the shareholders and there's limitation on personal liability

Challenges to teamwork

1. does not always bring more creative output 2. groupthink 3. different generations in the workforce may have different styles and expectations

Advantages of joint venture

1. high potential for learning 2. benefits of combined resources

Disadvantages of exporting

1. high transportation costs 2. threat of trade barriers, such as tariffs 3. lack of access to local information

Disadvantages of contract manufacturing

1. lack of quality control over distant subcontractor

Disadvantages of licensing

1. licensee may become competitor 2. loss of knowledge to potential competitor

Disadvantages of turnkey project

1. loss of technical know-how to potential competitors

Disadvantages of Mergers

1. more than 1/2 of all mergers don't meet expectations 2. poor integration, focus on cost cutting and not everyday operations 3. conflict corporate cultures 4. power struggles in management team 5. employee turnover

Characteristics of theory x

1. not motivated 2. must use heavy control of workers 3. follow rather than solve 4. avoid responsibility 5. security seeking

Some systems of ethical conduct are based on...

1. religious systems 2. cultural/national 3. some that have been passed down from generation to generation

Disadvantages of a corporation

1. reporting requirements 2. double taxation

Disadvantages of strategic alliance

1. risk of losing specialized technology to partner 2. difficulty in finding compatible partner

Disadvantages of joint venture

1. shared control of business 2. risk of losing specialized technology to partner

How can managers form the best teams?

1. size- not too large but not too small 2. time- depends on how fast tasks need to be done 3. status- may be required to have progress reports and updates

Advantages of licensing

1. speed of entry

Advantages of contract manufacturing

1. speed of entry 2. low test-marketing costs

Small businesses hire...

1. young people 2. old people 3. part-time workers

Asia-Pacific Economic Cooperation (APEC)

21 member countries including the U.S, Japan, and China

_______ of U.S. employees are not engaged or are actively disengaged in their work

73%

Franchise

A business established or operated under an authorization to sell or distribute a company's goods or services in a particular area

Damage control

A company's effort to minimize the harmful effects of a negative event

401k plan

A defined contribution plan in which pre-tax dollars are invested and generally managed by an outside investment company

scatter plot

A graph that displays a possible relationship between two sets of data.

histogram

A graph that displays the number of times a specific event occurs

run chart

A graph that displays the value of some data across a specific set of dates

Economic costs of protectionism

A lower quantity and variety of lower-quality products at higher prices

limited liability partnership (LLP)

A partnership that limits partners' risk of losing their personal assets to only their own acts and omissions and to the acts and omissions of people under their supervision.

Order taker

A salesperson who handles repeat sales and builds positive customer relationships

After conducting a SWOT analysis managers should establish what?

A set of goals and objectives based on the information

check sheet

A simple sheet recording the number of times certain product defects occur

Example of matrix organization

An engineer might report to an engineering supervisor as well as a project manager

What kind of business is also known as the gazelle business?

Businesses that are owned by growth entrepreneurs

What forms of business ownership may issue shares of stock?

C-corp, S-corp

What forms of business ownership must have board of directors, corporate officers, annual meetings, and annual reporting?

C-corp, S-corp, LLC

Bonuses

Cash awards given to employees who achieve specific performance objectives

Penetration pricing

Charging the lowest possible price for a new product

Example of conglomeration

Citicorp (banking service) and Travelers Group Inc (insurance company) merged to form the largest financial services called Citigroup Inc.

Example of a product mix

Coca-Cola has many product lines, including soft drinks, energy drinks, and sports drinks

Marketing mix

Combination of four P's of marketing

Example of niche market

Company that sells specialized gear shifters for racing bicycles

Comparative advertising

Compares a brand's characteristics with those of other established brands

Variable costs

Costs that vary with the production level

Benefits to affiliative leadership style

Creates harmony by connecting people to one another

Form utility

Creating a finished product

Plant

Creative and imaginative

Discounts

Deduction from the regular price charged

Example of contract manufacturing

Dell and Apple computers designed in the U.S., manufactured in Asia

Example of crowdsourcing

Dell uses crowdsourcing to develop ideas for new products

B2B advertising

Directed to other businesses rather than to consumers

Drop shippers

Don't carry inventory/handle the product, select a manufacturer who ships merchandise directly to customer

Example of social intrapreneurs

Ebay made their company more environmentally friendly by installing solar panels at their head quarters

Example of a company violating ethics and the law

Enron, was a popular company that hid its debts and were charged for fraud, key people involved were convicted, due to this the Sarbanes/Oxley Act passed with strict corporate finance requirements and penalties

Example of legal compliance

Equal Employment Opportunity Commission and the Securities and Exchange Commission provide guidance to companies to help them maintain legal compliance

Enterprise social networking is the application of social network tools to educate True or False

False

Groupthink is the convergence of the group on the best idea True or False

False

Identity theft is mainly a problem for senior citizens True or False

False

In a planned economy, an individual's personal income dictates his or her spending choices. True or False

False

Increasing U.S dominance of foreign direct investments has helped accelerate globalization True or False

False

Liabilities do not include losses associated with breaches of contract or from damages True or False

False

Loss leader pricing is used to move a product quickly off the shelves. True or False

False

Microeconomics is the study of the behavior of the overall economy. True or False

False

The government can influence the economy through its fiscal policy by making changes in the money supply. True or False

False

Internal recruitment

Filling job vacancies with present employees, rather than looking outside the business.

Example of leveraged buy outs

Hertz Corporation, Toys R Us

_________ make up the largest share of minorities owning a small business.

Hispanics

Example of price discrimination

Hotels and resorts rates are different on different days

Example of corporate advertising

Humane Society

When autocratic leadership is appropriate

In a crisis to kick-start an urgent turnaround; with problem employees; traditional military

Promotion Definition

Involves all of the techniques marketers use to inform targeted customers of the benefits of a product and to persuade them to purchase the good, service, or idea

In many nations, governments focus on improving the

Nation's resources, labor, capital, technology, innovation, and entrepreneurialism

Pricing strategy of monopolies

No competition

Liability of a corporation

Owners (shareholders) are not personally liable for debts of corporation

Producer -> Wholesaler -> Retailer -> Consumer distribution channel

P&G

Example of extrinsic motivators

Pay, promotion, and verbal praise

Serial entrepreneurs

People who open multiple businesses throughout their career

Ongoing performance monitoring and feedback

Periodic performance reports about an employees progress toward meeting his or her goals as well as feedback about how better to achieve them

What can assess someone's leadership skills?

Personality tests

Creative spatial arrangements

Pinning ideas on the walls and using large charts to combine ideas from the entire group, tends to lead to open consideration of ideas

Prestige pricing (premium pricing)

Practice of charging a high price to invoke perceptions of high quality and privilege

Price-takers

Price may be determined in the market through the interaction of demand and supply

Target costing

Prices are determined by the market conditions

Positioning

Process of developing a unique marketing mix to best satisfy its targeted customers

Loss leader

Product that is priced below its costs

Shopping goods and services

Products that are purchased less frequently and require more effort and time for comparison

Uncontrolled messages

Publicity

Economic costs of free trade

Reduced sales and lower prices for domestic firms that find it difficult to compete internationally, which reduces their profitability and lowers job security for their workers

Well-designed goals are

SMARTER

Period of existence of a corporation

Separate entity; existence not dependent on owners, founds; ownership transferred easily

Rack jobbers

Serve grocery stores and drug retailers, delivery people set up rack/displays within stores and bill retailer for the goods sold

Management of a corporation

Shareholders elect board of directors, which provides strategic management of corporation; board appoints senior management

Management of an S corporation

Shareholders elect board of directors, which provides strategic management of corporation; board appoints senior management

Sales promotions

Short-term activities that target consumers and other businesses to generate interest in a product

Subcultures

Specific groups within a culture that share attitudes and life experiences

proxy fight

The acquiring company tries to persuade the target company shareholders to vote out existing management and to introduce management that is sympathetic to the goals of the acquiring company.

Outsourcing

The assignment of certain tasks such as production or accounting to an outside company or organization

Product placement

The placement of products in TV shows, movies, and video games

Psychological pricing (odd/fractional pricing)

The practice of charging a price just below a whole number to give the appearance of a significantly lower price ($9.99 v.s $10)

Number of suppliers

The supply of a good or service increases as the number of competitors increases

Convenience goods and services

Those that the customer purchases frequently, immediately, and effortlessly

A diversified workforce adds creativity and a variety of viewpoints to the workforce, which often helps improve a company's competitiveness and its bottom line. True or False

True

A free-floating exchange rate system uses global supply and demand to set exchange rates True or False

True

Conceptual skills means a person has the ability to think abstractly True or False

True

Contingency planning helps a business weather a disruption or a crisis True or False

True

Crowdsourced funding is the use of social networking to acquire capital for a new venture. True or False

True

Employees can benefit from successful marketing because new job opportunities may be created as production expands to satisfy the growing demand for highly-valued products. True or False

True

MRO B2B products are marketed much like consumer convenience goods and services. True or False

True

Macroeconomics is the study of how certain occurrences affect the economy as a whole. True or False

True

Outsourcing sometimes involves moving the production of a product from a domestic location to a foreign location True or False

True

Small businesses help large businesses by providing the parts and services required in larger manufacturing processes True or False

True

Sociocultural influences that affect buying decisions include a buyer's culture, social class, family, and peers. True or False

True

Some companies use an alternative to performance appraisals called performance management. True or False

True

Strength-based management believes the best way to develop talent is to help employees add skills and knowledge that build on their existing strengths True or False

True

The main difference between the B2B and B2C markets is that B2B markets have fewer buyers that purchase many more individual quantities. True or False

True

The supply chain is the process by which products, information, and money move between a supplier and the consumer True or False

True

When a business is profitable, the whole society benefits. True or False

True

Example of laws going into buisnesses

USDA created stringent guidelines about what can be labeled as organic

Interactive advertising

Uses interactive media to connect directly with consumers in a personal and engaging way

Viral marketing

Using social networks, e-mail, and websites to spread the awareness of a particular brand

Introductory stage example

Vinyl records were introduced in 1930

Example of S in SWOT

Walmart has a powerful brand, reputation for value and convenience, wide range of products in one store

Example of T in SWOT

Walmart has intense price competition increasing, global retail exposes Walmart to political problems in the countries where it operates, being number 1 makes Walmart the target of competition

Example of W in SWOT

Walmart is not as flexible as competitors who sell just one type of product, global but still in only a few countries

cooperative

a business that is owned and governed by members who use its products or services, any profits made are returned to members in proportion to their use

Recession

a decline in GDP for two or more successive quarters a year

Example of changes in resource price

a decrease in the cost of lumber increases the number of homes built

disinflation

a decrease in the rate of inflation

Logo

a graphic representation or symbol of a company name, trademark, or abbreviation

Economic benefits of free trade

a greater quantity and variety of higher-quality products at lower prices

bargaining unit

a group of employees with similar interests and concerns that negotiate with the employer for better working conditions or pay

Advisory board

a group of individuals who offer guidance to the new business owner

Entrepreneurial teams

a group of individuals with varied experiences and skills that come together to form a new venture

Autocratic

a leader who takes complete charge

Brand

a name, term, symbol, design, or combination there of that identifies a seller's products and differentiates them from competitors' products

workforce pile

a personal "inventory" that includes information about each employee

S corporation

a regular corporation that has elected to be taxed under a special section of the Internal Revenue Service Code called Subchapter S

Local Content Requirement (LCR)

a requirement that some portion of a good be produced domestically

Profit sharing plan

a retirement plan for businesses in which the employer alone makes contributions

inflation

a rise in the general level of prices over time

Independent contractors and consultants

a self-employed contingent worker

Distribution channel

a series of firms or individuals that participate in the flow of a product from manufacturer to consumer

contingency plan

a set of plans that ensures that the organization will run as smoothly as possible during an unexpected disruption

corporation

a specific form of business organization that is legally formed under state laws

Target market

a specific group of potential customers on which a firm focuses its marketing efforts

six sigma

a statistically based, proactive, long-term process designed to examine the overall business process and prevent problems

Embargo

a total restriction on an import/export

partnership

a type of business entity in which two/more owners (or partners) share the ownership and the profits and losses of the business

One of the first things someone needs to do before starting a business is to write which of the following? a. A business plan b. A loan application c. A partnership statement d. A franchise agreement

a. A business plan

Warren Buffet runs Berkshire Hathaway which owns companies such as GEICO insurance, Dairy Queen, Fruit of the Loom, and Heizberg Diamonds. Berkshire Hathaway is considered to be which of the following? a. A conglomeration b. An acquisition c. A merger d. A cooperative

a. A conglomeration

You have been tasked with creating procedures that will ensure your business can operate in a​ weather-related emergency. What have you been asked to​ create? a. A contingency plan b. A SWOT analysis c. A strategic plan d. A tactical plan e. An operational plan

a. A contingency plan

Which of the following statements about the operation of a corporation is correct? a. A corporation is a separate entity and is legally formed under state laws b. A corporation automatically expires in 99 years and must be renewed if a corporation wants to remain in business c. Owners of a corporation have unlimited liability for any claims against their company d. A corporation tends to be much easier to set up than a sole proprietorship or partnership e. All profits and losses flow through the corporation owner's personal tax returns

a. A corporation is a separate entity and is legally formed under state laws

Dara is an engineer who works on several projects for several different product lines at her company. She reports to the engineering supervisor​ but, upon being assigned to a​ project, she simultaneously reports to the project manager as well. For what type of organization does work​ Dara? a. A matrix organization b. An inverted organization c. A line organization d. A flat organization e. A tall organization

a. A matrix organization

Microsoft and Nokia both provide cell phone software and hardware to consumers. Microsoft wants to use​ Nokia's hardware to use for its new mobile operating​ system, while Nokia is looking to better compete in the consumer smartphone market. The companies determine that merging will allow the best of both​ worlds: Both companies can benefit by merging to start a new company that will offer​ Microsoft-powered smartphones featuring the latest and greatest technology from Nokia. What type of merger is​ this? a. A product extension merger b. A vertical merger c. A conglomeration d. A market extension merger e. A horizontal merger

a. A product extension merger

Amit Patel, as part of his compensation package, was offered an opportunity to purchase his company's stock at a later date at its current, lower price. Which of the following was Amit given? a. A stock option b. A stock ownership plan c. A stock purchase plan d. None of the above

a. A stock option

Which of the following is the BEST example of ownership utility? a. A store sells a swimsuit to a costumer b. A law firm believes that it will be more profitable if it owns rather than leases its office space c. A manufacturer purchases raw materials from a supplier to create products d. A collectible item decreases in value over time e. A sporting goods store stocks ski equipment at the beginning of the winter season

a. A store sells a swimsuit to a costumer

Linda runs a business in Dallas that specializes in providing business clothing to veterans free of charge so that they can dress nicely for job interviews.​ Linda's business is most likely which of the​ following? a. A​ not-for-profit organization b. A governmental program c. A​ for-profit-organization d. A conglomeration e. A cooperative

a. A​ not-for-profit organization

Benito is an HR manager who is responsible for online recruitment of new employees. Technology has created many challenges for recruiters like him. Which of the following is most likely FALSE? a. Benito can quickly sift through the responses to online postings to find qualified candidates b. Benito should make his company stand out from his competitors when posting job descriptions. c. Benito must stay up to date on how to use social networking techniques and Web 2..0 techniques d. Benito must create online job positions that appeal to the most qualified candidates e. Benito's online posts will yield a large pool of potential candidates

a. Benito can quickly sift through the responses to online postings to find qualified candidates

Which function of management is most concerned with ensuring that employees are performing to operational​ standards? a. Controlling b. Leading c. Organizing d. Staffing e. Planning

a. Controlling

Jarvis runs a restaurant that has had a lot of complaints from customers lately. Jarvis is a strict manager and prefers to make all the decisions himself. A concerned friend recommends that Jarvis delegate more decision-making responsibility to his employees. Which of the following would be the MOST likely result of Jarvis' delegating responsibility? a. Customer satisfaction will improve because employees can be more responsive to customer needs b. Customer satisfaction will decrease because employees will make the wrong decisions c. Customer will be upset because the restaurant is being run differently d. The restaurant will need to increase its prices e. Employees will quit because of the change in Jarvis' management style

a. Customer satisfaction will improve because employees can be more responsive to customer needs

Which of the following best illustrates the globalization of production? a. Daily Diamonds Inc. buys diamonds from South Africa and exports them to India for the cutting process. b. Evan Swan, a U.S. based fashion designer, is planning to open a flagship store in China to serve the Asian market. c. Uncle Crab, a UK fast food chain, has been serving customers worldwide through its franchises. d. Silver Unicorn Inc. uses sales personnel from the respective host country to sell its products and services. e. Pizza Gallery, an Italian pizza chain, customizes its pizzas and pastas to suit the tastes of its American and Australian customers.

a. Daily Diamonds Inc. buys diamonds from South Africa and exports them to India for the cutting process.

Taka owns a car dealership. He is trying to streamline operations to be more efficient. In the​ past, salesmen and finance staff performed the same duties. Taka believes it will be more efficient to split the staff into two new​ areas, a sales​ area, and a finance area. What is Taka​ practicing? a. Departmentalization b. Revitalization c. Strategic planning d. Networking e. Compartmentalization

a. Departmentalization

Which of the following strategies is not designed to help a company recover from an ethical lapse? a. Ensuring whistle-blowers face legal consequences b. Working to find a leader who will set an example of the new ethical image of the company c. Restructuring internal operations to empower all employees to consider ethical implications of decisions and allowing them to feel free to speak up when they have ethical concerns d. Redesigning a firm's internal rewards- for example, restructuring the incentive package for sales employees so there's a financial reward for building relationships with clients rather than just closing a sale

a. Ensuring whistle-blowers face legal consequences

A free trade area that includes 27 independent states is the ________. a. European Union b. Association of Southeast Asian Nations c. MERCOSUR d. The Asia-Pacific Economic Cooperation e. NAFTA

a. European Union

Kazuto is interested in starting a new business. Which is a reason Kazuto should consider buying an existing business versus starting one from scratch? a. He will operate a tried and tested business b. He will need to work fewer hours c. He will need less capital up front d. All of the above

a. He will operate a tried and tested business

Which of the following is a good example of microeconomics? a. How a specific company would maximize its production and capacity so it could better compete in its industry b. How an increase in the unemployment rate would affect a country's GDP c. How a decrease in taxation affects consumer spending d. All of the above

a. How a specific company would maximize its production and capacity so it could better compete in its industry

Which of the following is an example of the government's fiscal policy to stimulate an economy? a. Increased government spending b. Increased taxes c. Decreases in the discount rate d. Selling government securities in open markets

a. Increased government spending

The country of Theta restricts the activities of foreign insurance companies in order to give Theta's insurance industry a chance to grow and develop. Theta's actions are an example of the ______ argument in favor of protectionism. a. Infant Industry b. National Security c. Threat of retaliation d. Cheap foreign labor e. Dumping

a. Infant Industry

What results when there is an increase in overall prices? a. Inflation b. Deflation c. Expansion d. Recession

a. Inflation

In what stage in the product life cycle would you consider 3D television to be a. Introduction b. Growth c. Maturity d. Decline

a. Introduction

Which term best describes the area of management that is focused on​ influencing, motivating, and helping employees to contribute to an​ organization's success and​ effectiveness? a. Leading b. Planning c. Controlling d. Managing e. Motivating

a. Leading

MIS differs from IT because a. MIS focuses on applying IT to solve business problems b. MIS is the branch of IT focused on Internet usage c. IT focuses on hardware, and MIS focuses on software d. MIS is applied, and IT is theoretical

a. MIS focuses on applying IT to solve business problems

Which of the following is most likely to be the best suited product for a global market? a. Microprocessors b. Fast food like hamburgers c. Clothes and accessories d. Bank and other personal services e. Household furnishings

a. Microprocessors

Kendra is the Manager of Marketing and Sales for a large electronics firm. In this​ role, she is responsible for creating specific plans for her department to implement the​ company's strategic plan. What type of manager is​ Kendra? a. Middle manager b. ​First-line manager c. Staff manager d. Top manager e. Line manager

a. Middle manager

Which function of management involves assigning tasks and​ authority, grouping tasks into​ departments, and allocating physical and human resources to ensure that the work of the company can be carried out efficiently and​ effectively? a. Organizing b. Monitoring c. Leading d. Planning e. Controlling

a. Organizing

Stephanie Ling has been asked to conduct a breakeven analysis. Which of the following would be considered a variable cost? a. Price of gasoline b. Property insurance c. Salaries d. Interest on a loan

a. Price of gasoline

What is the primary advantage of an S corporation over a C​ corporation? a. S corporations do not pay corporate income taxes. b. Unlike with C​ corporations, shareholders of S corporations are personally liable only to the extent of their investment. c. Shareholders of S corporations are not required to be U.S. citizens or residents. d. S corporations can issue multiple classes of stock. e. S corporations can have an unlimited number of​ shareholders, whereas C corporations cannot have more than 100 shareholders.

a. S corporations do not pay corporate income taxes.

________ are private venture capital firms licensed by the Small Business Administration to make equity capital or long-term loans available to small companies a. Small Business Investment Companies b. Business Incubators c. Entrepreneurial lenders d. Angel investors e. Crowdfunders

a. Small Business Investment Companies

Which is the simplest type of business​ ownership? a. Sole proprietorship b. C corporation c. Limited liability company d. Not-for-profit organization e. S corporation

a. Sole proprietorship

Which of the following is the most common but riskiest option in becoming a small business owner? a. Starting from scratch b. Obtaining a franchise c. Marketing an unknown product d. Buying an existing business

a. Starting from scratch

"Computers are outdated after three years and obsolete after five." What aspect of technology does the statement BEST represent? a. Technological innovation is expensive and time-consuming b. Technological innovation is necessary in order to remain competitive c. Technological innovation can be used to keep a company well-organized d. Technological innovation is changing the focus of how many businesses are run e. Technological innovation can help streamline businesses and cut costs

a. Technological innovation is expensive and time-consuming

All of the following are true about acquisitions​ EXCEPT: a. The companies involved mutually agree to form a new combined company. b. They usually take place in order to add​ products, services,​ technology, or achieve a competitive advantage. c. Management at the company being purchased may remain in place. d. One company purchases another company. e. Most acquisitions are friendly.

a. The companies involved mutually agree to form a new combined company.

Which of the following is an example of ratings and rankings of the level of corporate social responsibility of companies? a. The founder of Clif Bar, Inc. won the Business Ethics Award given by Business Ethics magazine b. A regional heating fuel supplier performs a social audit of how resources such as funding and manpower have been applied to the goals of corporate social responsibility c. A Time Warner press release discusses advances in corporate citizenship d. Wendy's used Twitter to fundraise for the Dave Thomas Foundation for adoption, contributing 50 cents for each retweet of their message e. The Bill and Melinda Gates Foundation, started by Microsoft chairman Bill Gates, has begun an initiative for a malaria vaccine, which has had a positive impact on the public perception of Microsoft.

a. The founder of Clif Bar, Inc. won the Business Ethics Award given by Business Ethics magazine

Which of the following does not define a B2B market? a. The market consists of small-volume purchases in a geographically dispersed area b. Buyers make complex purchasing decisions, often with formal buying procedures c. The purchasing process involves much personal selling and requires a close relationship between the buyer and the seller d. Buyers are more professional and make more rational purchasing decisions

a. The market consists of small-volume purchases in a geographically dispersed area

Eva runs a housecleaning business. She provides each employee with a written set of step-by-step instructions for how to use each cleaner and how to clean every aspect of a client's home. Eva routinely drops in unannounced to make sure her employees are doing as they're told. Eva knows her employees seek only the security of a job with a paycheck and do not care about the quality of the work they produce. Eva's management style can be classified as __________. a. Theory X b. Theory Y c. Theory Z d. expectancy theory e. strength-based management

a. Theory X

The theory of comparative advantage indicates that a. a country should sell to other countries the products it produces most efficiently and buy from other countries the products that it cannot produce as efficiently b. international trade will force domestic businesses to lose market share to foreign competitors c. countries that participate in international trade will have a higher standard of living d. a limit is placed on the amount of goods and services that can be traded

a. a country should sell to other countries the products it produces most efficiently and buy from other countries the products that it cannot produce as efficiently

The developing country of Alpha had a rule that none of its factories could be owned by companies from the developed country of Beta. If Alpha drops this rule, this would be an example of ___________. a. a decline in trade and investment barriers b. a total embargo c. technological innovation d. an increase in tariffs e. in-house outsourcing

a. a decline in trade and investment barriers

An entrepreneurial team is ________. a. a group of individuals with varied experiences and skills that come together to form a new venture b. a strategic alliance among two or more companies who collaborate to launch a new product c. a group of individuals who come together to discuss their feelings about working for their employer d. a group of individuals who meet regularly to provide mutual support to group members e. a group of students who create fictional business ventures to test out their viability

a. a group of individuals with varied experiences and skills that come together to form a new venture

Jose called an electrician to repair some appliances in his home. Which of the following terms BEST describes the electrician's repairs? a. a service b. a liability c. a good d. a benefit e. an appointment

a. a service

Judeo-Christian ethics include all of the following EXCEPT ________. a. accepting that there is no universal moral truth b. respecting property c. respecting relationships d. respecting one's mother and father e. being kind to others

a. accepting that there is no universal moral truth

James lives near a university and observes that almost every student uses a cell phone. He decides to open a small shop offering repair services for cell phones. His shop is an instant success. James has satisfied an area of need called ________. a. an opportunity niche b. fertile ground c. the marketplace d. a bandwidth need e. an oversaturated demand

a. an opportunity niche

There are several steps that are crucial to effective time management. Which of the following steps will NOT improve the productivity of a business? a. answering all emails as soon as they arrive b. determining the level of urgency of paperwork c. identifying clear agendas for meetings d. crossing off tasks on the schedule as soon as they are completed e. successfully delegating tasks to others

a. answering all emails as soon as they arrive

Which of the following is NOT one of the factors in the economic environment that will affect customer's willingness and ability to spend their money on a firm's product? a. changes in the amount of bonuses paid to bank executives b. changes in the exchange rate c. changes in the economic growth rate d. changes in the unemployment rates e. changes in interest rates

a. changes in the amount of bonuses paid to bank executives

B2B and B2C interactions are a. common now because of the explosive growth of e-commerce b. important only for businesses, not consumers c. two different names for the same thing d. dominated by sole proprietorships

a. common now because of the explosive growth of e-commerce

Mr. Gonzales wants to help fellow farmers in his community, but he is not interested in making a personal profit. His main goal is to join with other farmers so they can have better bargaining power when purchasing supplies. Which of the following business types will Mr. Gonzales MOST likely form? a. cooperative b. general partnership c. sole proprietorship d. not-for-profit corporation e. C corporation

a. cooperative

Traci and Sally have considered starting their own business but are concerned about the possibility of losing their personal assets if the business fails. One way for Traci and Sally to avoid the risk would be to organize their company as a ____________. a. corporation b. merger c. sole proprietorship d. general partnership e. limited partnership

a. corporation

An advertising campaign that attempts to reposition is an example of __________. a. creating a new vision b. creating a new use c. repackaging d. lowering the price e. finding a new market

a. creating a new vision

A continuous decrease in the level of prices over time is called _____. a. deflation b. deflection c. disinflation d. inflation e. depression

a. deflation

According to the law of supply, the amount of a good or service supplied will increase as the price increases, and decrease as the price decreases. This direct relationship exists because supply is ________. a. derived from a producer's desire to maximize profit b. affected by changes in technology c. not dependent on the resources required to produce the product d. not affected by the quantity of similar or substitute products e. affected by the number of suppliers

a. derived from a producer's desire to maximize profit

A good strategic plan a. determines the best ways to accomplish goals of an organization b. is specific and tactical c. concentrates only on what is going on inside an organization, not outside an organization d. is wide ranging

a. determines the best ways to accomplish goals of an organization

When shoppers boycotted Target because the chain had a policy of not allowing solicitors, including the Salvation Army , to collect money outside their doors, Target responded by ___________. a. donating $9 million to Salvation Army b. launching an advertising campaign claiming that the company supported a variety of charities and did not include the Salvation Army c. creating a department in its stores for inexpensive used goods d. allowing solicitors, including the indigent homeless, to solicit money just inside the front entrances to their stores e. defensively pointing to the 5 percent of their income they had invested in local communities since 1946

a. donating $9 million to Salvation Army

Luis works as a marketing manager for a consumer products company. He feels strongly about the product lines he manages and is dedicated to the company's mission and ideals. Luis' product lines are among the best sellers in the company. According to the Q12, Luis is classified as ________. a. engaged b. not engaged c. actively disengaged d. moderately disengaged e. unengaging

a. engaged

While many _____ ventures are based on innovative ideas, others revolve around improvements to existing goods or services. a. entrepreneurial b. governmental c. franchise d. not-for-profit

a. entrepreneurial

Franchises are often quite _____. a. expensive b. easily acquired c. legally simple d. attractive from a tax standpoint

a. expensive

Since goods are more widely manufactured and sold in the global marketplace, this has caused U.S. companies to ________. a. face difficult decisions about ethical standards on tough issues such as child labor, pollution, fair wages, and human rights b. have more control over ethical standards in other countries since governments are eager to meet the expectations of companies that wish to operate within their borders c. close down offshore manufacturing facilities because of different ethical standards d. ignore ethical standards in their U.S. facilities to make them more competitive e. respect and care for their employees in the United States with higher ethical standards

a. face difficult decisions about ethical standards on tough issues such as child labor, pollution, fair wages, and human rights

Benjamin has a full-time job and has decided to work toward earning his master's degree at a local university. Some days he works from 7:00 A.M. until 3:30 P.M. so he can leave in time to attend his 4:00 P.M. classes. The rest of the week, Benjamin works from 8:00 A.M. until 4:30 P.M. From this example, we know Benjamin's company allows ________. a. flextime schedules b. compressed workweeks c. job sharing d. permanent part-time schedules e. telecommuting

a. flextime schedules

What does a management information system (MIS) do that an IT system would typically not do? a. focus on applying IT to solve business problems b. focus on pure technical knowledge c. focus on reducing information flow among employees d. focus on identifying management problems in IT departments e. focus on creating custom software

a. focus on applying IT to solve business problems

A snack food bag is white with plain black letters spelling, "Corn Chips". This is most likely an example of a _________ brand. a. generic b. co-brand c. private d. manufacturer's e. family

a. generic

A code of conduct ________. a. gives employees guidance on how to handle themselves in challenging ethical situations b. describes the company's goals and aspirations c. evaluates a company's acts and cites any legal violations it might have committed d. reports on the legal compliance of a corporation e. defines the core purpose of the organization

a. gives employees guidance on how to handle themselves in challenging ethical situations

West Electronic Corporation sources goods and services for its electronics products from different locations around the globe in an attempt to take advantage of differences in the cost and quality of labor and land. This practice demonstrates the: a. globalization of production. b. localization of markets. c. increasing differences in tastes and preferences of consumers across the world. d. nationalization of private enterprises. e. rise of communism throughout the globe.

a. globalization of production.

What are the substitute goods? a. goods that can be used in place of other goods b. goods that can be modified to replace others c. goods that complement others d. goods that can be used to repair others e. goods that can experience seasonal changes in demand

a. goods that can be used in place of other goods

Ross's work team is made up of various members of the art department who have all worked together for many years. They like that they work in synch and rarely have to explain things to each other because they are so much alike. A threat to Ross's work team is narrow-mindedness caused by ______________. a. groupthink b. group flow c. virtual think d. virtual flow e. the Hawthorne effect

a. groupthink

Ken owns a food services company and recently negotiated a contract with a new restaurant chain. The satisfaction Ken feels for this success is a(n)_______________. a. intrinsic motivator b. extrinsic motivator c. resonance motivator d. virtual motivator e. belonging motivator

a. intrinsic motivator

A SWOT analysis a. is an important part of developing a strategic plan b. is one type of contingency planning c. helps translate the tactical plan in instructions for employees d. leads to an effective mission statement

a. is an important part of developing a strategic plan

Since Donna was laid off from her job a few months ago, she has enjoyed having more time to relax, exercise, and be with her family. Now she is wondering whether she should start her own business. Donna should consider purchasing a franchise ONLY if she __________. a. is prepared to handle the heavy workload that comes with a franchise b. requires complete creative control c. does not have enough capital to start an independent business d. wants the protection from competition that the franchisor would guarantee e. is interested in the products sold by a particular franchise

a. is prepared to handle the heavy workload that comes with a franchise

Theory Z is different than Theory X or Theory Y because a. it relies heavily on collaborative decision making b. it is authoritarian and hard line c. it is often seen in mass-manufacturing settings d. managers believe people will seek out responsibility

a. it relies heavily on collaborative decision making

Extrinsic motivators include such things as a. knowing your supervisor cares about you b. believing your opinion matters c. knowing there is a large financial bonus for good work d. working for a company whose mission is meaningful to you

a. knowing your supervisor cares about you

The California Nurses Association was formed to negotiate the unique salary needs and working hour structures of direct-care nurses with the hospitals in which they work. The CNA is an example of a ___________. a. labor union b. workforce profile c. diversification d. special interest group e. strikebreaker

a. labor union

Clarke Santiago and his wife Teresa, parents of two children, opened a buffet restaurant last year. They've been so successful with their family-style atmosphere that some investor friends have offered funding to expand into two additional locations. The investors also want to consider opening several more restaurants each year. After thinking it over, the Santiagos decided to stick with one restaurant and add catering services—a move that should provide them with a satisfactory income. The Santiagos' business is a good example of a _____. a. lifestyle business b. sole proprietorship c. start-up business d. franchise

a. lifestyle business

Nick is investing $25,000 in a partnership with his sister and brother. Nick does not want to be an active part of the partnership and can only afford to risk the $25,000 he is investing. His brother and sister agree to let him share a proportionate amount of the profits. Nick is a(n) ________ in this partnership. a. limited partner b. junior partner c. general partner d. sole partner e. unlimited partner

a. limited partner

The final step in the marketing process is __________. a. maintaining good customer relationships b. target marketing c. product placement d. market research e. promotion

a. maintaining good customer relationships

DSSs are used most often by a. managers who make decisions based on current data b. employees who decide how to solve technical problems c. clerical staff who organize and format documents and reports d. trainers who teach staff and employees new software products

a. managers who make decisions based on current data

When the supply curve and the demand curve for a single product or service are shown on the same graph, the point at which the intersect identifies the _____. a. market price of the good b. total profit earned by the producers c. number of substitute goods available d. quality of the good or service being purchased e. amount of the surplus to be anticipated

a. market price of the good

When a magazine refuses to accept advertisements featuring "size zero" models on the grounds that it could encourage eating disorders in young women, this is an example of paying attention to which pillar of corporate social responsibility? a. marketing and consumer issues b. human rights and employment standards in the workplace c. community and good neighbor policies d. ethical sourcing and procurement e. environmental, health, and safety concerns

a. marketing and consumer issues

A(n) __________ occurs when two companies of about the same size mutually agree to create a new combined company. a. merger b. acquisition c. takeover d. synergy e. cooperative

a. merger

A horizontal organization requires a. more use of collaborative teams b. a strict chain of command c. a tall organization chart d. None of the above

a. more use of collaborative teams

Which of the following is NOT an example of how corporate social responsibility can be consistent with profitability? a. offering bonuses to employees who embellish profit and loss statements b. offering a small discount to customers of a coffee shop who bring their own reusable cup c. encouraging employees to volunteer within the local community d. improving environmental practices in factories and plants to reduce waste e. paying employees in a developing nation more than the minimum required

a. offering bonuses to employees who embellish profit and loss statements

Governments with nonconvertible currency are a. often developing countries that are trying to protect themselves from capital flight b. countries that have strong economic health and prospects of growth c. are planning to move toward a floating exchange rate system d. developed countries that are protecting the value of their currency

a. often developing countries that are trying to protect themselves from capital flight

A software company uses engineers in India to perform maintenance functions on software designed in the United States, and it also uses Indian accountants to compile tax returns. According to this information, the U.S. based company is most likely using: a. outsourcing. b. job sharing. c. job rotation. d. franchising. e. apprenticeship.

a. outsourcing.

The online advertising acronym PPC stands for ___________. a. pay-per-click b. person-pays-cash c. players-pay-cash d. purchase-price-charge e. push-pull-charging

a. pay-per-click

Felix is concerned about saving money for retirement. His company offers him a plan that requires him to contribute a specific amount of money each year through payroll deductions. At retirement, Felix will receive the monies he contributed as well as the fund's investment earnings. Felix is contributing to a(n) ________. a. pension plan b. ESOP c. 401(k) plan d. incentive-based payment structure e. profit sharing plan

a. pension plan

Ben receives an email purporting to be from his bank, advising him that new passwords are being distributed. The email asks him to enter his current password, as well as other personal information. Ben sends the requested information and then notices the next day that funds have been withdrawn from his account without his knowledge or consent. Upon contacting the bank, Ben learns that the original email was a fraud. Ben is a victim of ________. a. phishing b. adware c. electronic monitoring d. spyware e. spam

a. phishing

A corporation with a matrix organization system a. pools people into groups by skill b. makes sure teams have more responsibility for the outcome of their work c. organizes based on functional area d. collects single-function firms into a network that collaborates on a product

a. pools people into groups by skill

The Crusher Corp. charges very low prices to drive its only competitor out of business. This is an example of ___________ pricing. a. predatory b. penetration c. demand-based d. brand e. loss leader

a. predatory

A bag of snack food says, "Walmart's Corn Chips." This is an example of a(n)________ brand. a. private b. manufacturer's c. family d. generic e. individual

a. private

A group of companies that brand together to purchase goods or services is called a(n)_________. a. procurement exchange b. infomediary c. supply chain d. vertical portal e. brokering site

a. procurement exchange

Owners of small businesses are responsible for much of the _____ of U.S. business. a. product innovation b. healthcare shortfall c. short-term debt d. wage escalation

a. product innovation

Goods tracked by the PPI include _____ and _____. a. raw materials; finished goods sold to retailers b. recreation; apparel c. transportation; communication d. education; medical care e. energy prices; prices for services

a. raw materials; finished goods sold to retailers

Automobile companies promote different car models in different countries depending on a range of factors such as demographics, local taste, local fuel costs, income levels, traffic congestion, and cultural values. This most likely demonstrates that: a. significant differences still exist among national markets. b. cultural diversity has been replaced by global uniformity. c. the global market is less complex than national markets. d. a company does not have to be the size of a multinational giant to facilitate, and benefit from, the globalization of markets. e. the social norms in a country do not affect purchase decisions of consumers.

a. significant differences still exist among national markets.

Joe is very confident about his purchase of a franchise from a well-known full-service restaurant company. What is one of the things he MOST likely did before he bought the franchise? a. spent months researching the franchisor's background and track record b. developed a menu of innovative dishes that would differentiate his restaurant from competitors c. came up with a unique plan to streamline the daily operations of the franchise d. trained staff to help him run the business e. hired a designer to design the restaurant's layout and decor

a. spent months researching the franchisor's background and track record

What represents the highest level of planning in an organization? a. strategic planning b. tactical planning c. operational planning d. contingency planning e. emergency planning

a. strategic planning

When the wife of Mark Whitacre, who was involved in illegal activities at Archer Daniels Midland (ADM), threatened to divorce him if he did not end his involvement with the price fixing, she demonstrated an example of ________. a. strong personal ethics b. ethical ambiguity c. compromised business ethics d. flexible ethical standards e. legal oversight

a. strong personal ethics

In a partnership, all-profits and losses flow through each partner's ________. a. tax returns b. savings c. liabilities d. investments e. mortgages

a. tax returns

Sarah is very skilled lead programmer. She is​ well-versed not only in her​ job, but also in all aspects of the work performed by her​ employees, and she can successfully coach and guide them in carrying out their specific tasks. Sarah demonstrates a high level of​ __________. a. technical skills b. interpersonal skills c. ​decision-making skills d. conceptual skills e. business savvy

a. technical skills

Which of the following is NOT a legally defensible reason for terminating an employee? a. testifying against the company in a legal proceeding b. downsizing and/or restructuring of company c. increased use of technologies replacing workers d. outsourcing and/or offshoring jobs e. repeated documentation of poor performance

a. testifying against the company in a legal proceeding

The oldest and largest free trade area in the world is __________. a. the European Union (EU) b. MERCOSUR c. North American Free Trade Agreement (NAFTA) d. Association of Southeast Asian Nations (ASEAN) e. the Asia-Pacific Economic Cooperation (APEC)

a. the European Union (EU)

Small business owners can seek professional advice at no cost through __________. a. the Service Corps of Retired Executives b. Fortune 500 companies c. the Volunteer Corps of America d. McKinsey & Company management consulting e. the Better Business Bureau

a. the Service Corps of Retired Executives

The value of the CPI's "market basket" is determined by __________. a. the combined prices of a specified set of goods and services b. the net profit earned by businesses selling a specified set of goods and services c. the price of all goods and services purchased in a particular period d. the cost of production for a specified set of goods and services in a given market e. the difference between the prices of the raw materials used to create goods and the prices the consumer actually pays for these finished goods

a. the combined prices of a specified set of goods and services

When a company's revenue is greater than its expenses, it means that ________. a. the company earns a profit b. the company spends more than it earns c. the company needs to increase its spending d. the company must increase its productivity e. the company's income is decreasing

a. the company earns a profit

The average total of goods and services required to maintain a particular standard of living is called ________. a. the cost of living b. total household expenditure c. the cost of fundamental human needs d. the cost/price index e. quality of life

a. the cost of living

The World Intellectual Property Organization requires that e-businesses comply with the laws of___________. a. the country in which they are based in b. every country in which they do business c. every country that is part of the WIPO Pact d. the European Union and the United States e. the United Nations

a. the country in which they are based in

A demand curve illustrates__________. a. the effects of price on quantity demanded b. that as price increases, demand stays the same c. the effects of supply on quantity demanded d. that demand decreases as price decreases e. the effects on population changes on demand

a. the effects of price on quantity demanded

A supply curve illustrates ________. a. the effects of price on quantity supplied b. that as supply increases, the price stays the same c. the effects of price on quantity demanded d. that as supply decreases, demand decreases e. the effects of changes in resource prices on supply

a. the effects of price on quantity supplied

The reserve requirement is defined as _________. a. the minimum amount of money banks hold in reserve to cover deposits b. the maximum amount of money banks can borrow from one another c. the minimum amount of money that can be deposited by banks in the Federal Reserve d. the maximum amount of money that is insured by the Federal Deposit Insurance Corporation e. the maximum amount of money banks can borrow from the Federal Reserve

a. the minimum amount of money banks hold in reserve to cover deposits

The term "business cycle" refers to ____________. a. the periodic increases and decreases of the economy b. the periodic purchase of goods and services by the government c. the increases and decreases in the rate of inflation d. the periodic growth of the Federal Reserve System e. the periodic increases and decreases in the GDP due to seasonal factors

a. the periodic increases and decreases of the economy

Data warehousing is a. the storing of terabytes of transaction data b. not used when DBMSs are in place c. is not used now because data marts have replaced it d. is the management of large quantities of paper records

a. the storing of terabytes of transaction data

The theory that states that specialization and trade are mutually beneficial to all economies involved in trade is called the a. theory of comparative advantage b. theory of beneficial trade c. theory of absolute advantage d. theory of relative trade

a. theory of comparative advantage

The nations of Tweedle-dee and Tweedle-dum do not trust each other. Tweedle-dee is convinced that if it lowers its trade barriers, Tweedle-dum will not lower its barriers. Therefore, Tweedle-dee keeps its trade barriers high. This is an example of the ____________ argument in favor of protectionism. a. threat of retaliation b. infant-industry c. national security d. cheap foreign labor e. absolute advantage

a. threat of retaliation

What is a company's unique responsibility to its stockholders? a. to make a profit b. to produce products that the public will find useful c. to provide jobs to workers d. to create a stable balance sheet between income and expenses e. to be a good corporate neighbor

a. to make a profit

In a sole proprietor ownership, if business assets are not enough to pay business debts, then personal assets, such as the sole proprietor's house, personal investments, and retirement plans can be used to pay the debt. This is called ______. a. unlimited liability b. limited liability c. non-liability d. double taxation e. sole liability

a. unlimited liability

A dance studio and a dancewear manufacturer decide to combine. This type of merger is called a ________. a. vertical merger b. horizontal merger c. product extension merger d. conglomeration e. market extension merger

a. vertical merger

A merger involving a computer manufacturer and an electronics retailer that sells its computers would be an example of a _________. a. vertical merger b. horizontal merger c. product extension merger d. conglomeration e. market extension merger

a. vertical merger

Which​ chart, also known as a fishbone​ diagram, is used to identify all the contributing factors to a​ problem? a. ​Cause-and-effect diagram b. Histogram c. Run chart d. Pareto chart e. Scatter plot

a. ​Cause-and-effect diagram

When managers try to analyze a problem or​ opportunity, identify different courses of​ action, and select and implement what they perceive to be the optimum course of​ action, they are using​ _______ skills. a. ​decision-making b. tactical c. conceptual d. interpersonal e. technical

a. ​decision-making

Hadar is a​ __________, as he directly supervises​ lower-level employees. a. ​first-line manager b. middle manager c. chief operations officer d. controller e. executive officer

a. ​first-line manager

Acceptable

able to be received the way it is; worthy; satisfactory

performance management

an approach that combines goal setting, performance appraisals, training, and development into a unified and ongoing process

communism

an economic system in which a state's government makes all economic decisions and controls all the social services as well as many of the major resources required for the production of goods and services

capitalism

an economic system that allows freedom of choice and encourages private ownership of the resources required to make and provide the goods and services we enjoy

Not-for-profit corporation

an incorporated business that does not seek a profit and instead utilizes revenue available after normal operating expenses for the corporation's declared social/educational goals

___________ shifts, such as age, gender, ethnicity, and marital status, and changing values, can signal opportunities for businesses. a. Utility b. Demographic c. Political d. Technological e. Economic

b. Demographic

Carson is involved in a plan that gives him stock in his company based on the number of years he has worked there. His stock is held in trust for him by the company until he leaves or retires. Because of his ownership in the company, Carson feels more connected to the business and is motivated to ensure its success. Carson is participating in a(n)__________. a. employee stock purchase plan b. ESOP c. pension plan d. 401(k) e. profit sharing plan

b. ESOP

Drew wants to make sure his efforts at work are rewarded​ fairly, in a way that is comparable to his​ co-worker Aryanna. Which theory of motivation would this best​ reflect? a. Expectancy theory b. Equity theory c. Three needs theory d. ​Motivator-hygiene theory e. Theory Y

b. Equity theory

GATT stands for ________ on tariffs and trade. a. Global Achievement b. General Agreement c. Global Argument d. General Argument e. Global Agreement

b. General Agreement

The seven basic tools for monitoring a business include all of the following except a. Pareto analysis b. Monte Carlo statistical simulations c. scatter plots d. cause-and-effect diagrams

b. Monte Carlo statistical simulations

A consumer products company competes around the world primarily by customizing or differentiating its product to meet unique local needs, tastes, or preferences. the company is using a ___________ strategy a. Transnational b. Multidomestic c. Domestic d. Global e. National

b. Multidomestic

Which of the following is not a reason to hire a contingent worker? a. To fill in for absent employees b. Not enough office space for a full-time employee c. To supplement staff during particularly busy times d. To evaluate how a person performs on the job before hiring permanently them

b. Not enough office space for a full-time employee

__________ are​ short-term targets that are designed to help achieve goals. a. Plans b. Objectives c. Missions d. Tactics e. Visions

b. Objectives

Jackson Paulson works as a waterskiing instructor at Migis Lodge on Sebago Lake. He claims unemployment from October through April. Jackson experiences which type of unemployment? a. Frictional b. Seasonal c. Cyclical d. Structural

b. Seasonal

U.S importers prefer a(n) ________ dollar. a. Steady b. Strong c. Depreciation d. International e. Weak

b. Strong

Which of the following statements is TRUE about the impact of technology on employee privacy? a. Technology ensures that employees can access more private information about their fellow employees b. Technology allows companies to access information about employee's behavior on the job c. Technology makes it more difficult for companies to access private information about employees d. Technology ensures that individuals will have the same privacy protections at work as they do at home e. Technology protects employees from being monitored in the workplace

b. Technology allows companies to access information about employee's behavior on the job

Bill Wertz runs a transportation service that caters exclusively to the residents of retirement communities. Bill's business is taking advantage of which of the following marketing environments? a. The competitive environment b. The sociocultural environment c. The technological environment d. The economic environment

b. The sociocultural environment

Jeanette has a successful organic spa business in which she gives massages, facials, and organic body treatments. Last summer, another organic spa opened up in town. The supply curve for Jeanette's business would shift in which direction? a. To the right b. To the left c. No change would occur d. There is a shift along the demand curve only

b. To the left

In order to enter the Spanish market, a Moroccan firm establishes a store that is entirely owned by the Moroccan firm. This is an example of a(n) ________. a. Exporting Agreement b. Wholly Owned Subsidiary c. Contract Manufacturing Arrangement d. Strategic Alliances e. Joint Venture

b. Wholly Owned Subsidiary

A franchise is a method of doing business in which__________. a. an entrepreneur sets up and manages a small business based on an innovative idea or product b. a company's products or services are sold to independent third-party operators under the company's name c. a company buys ownership of another company and absorbs its employees and customer base into its own structure d. a business is able to achieve rapid sales growth in the service sector due to taking advantage of many advertising opportunities e. a small company is bought by a larger one and is absorbed into its existing structure

b. a company's products or services are sold to independent third-party operators under the company's name

The cheap foreign labor argument for protectionism refers to __________. a. an undeveloped domestic industry's workers b. a lower wage often earned by many foreign workers c. a trading partner increasing trade barriers on work done by citizens d. an industry critical to national security being protected from foreign workers e. selling a product at a price below the price charged in the producing country

b. a lower wage often earned by many foreign workers

With creative and abstract work, studies find that the principal motivators are a. financial incentives b. autonomy, mastery, and purpose c. competitive push for advancement d. reduction in hours involved at work

b. autonomy, mastery, and purpose

"Nice guys finish last." and "We must stand for right against wrong." are examples of ________. a. behaviors b. beliefs c. virtues d. goals e. belief origins

b. beliefs

After accepting a new job and moving to a new city, Tania felt isolated and unhappy. After a few months, she became friends with some of her coworkers and joined a book club. According to Maslow, Tania fulfilled her need for _____________. a. safety b. belonging c. self-actualization d. physiological e. esteem

b. belonging

The practice of corporate philanthropy a. is only a marketing strategy b. can build stronger relationships with employees and the community at large c. states that success can be found by competing fiercely to provide the lowest price d. is a strategy that works only in certain segments of industry where there is a lot of media attention

b. can build stronger relationships with employees and the community at large

A U.S consumer electronics company has to shut down because it cannot compete against foreign manufacturers. For the United States, this is an example of a(n)__________ of international trade. a. benefits b. cost c. theory d. cause e. incentive

b. cost

Exchange rates affect international businesses because a. nonconvertible currency is worthless b. currency depreciation and appreciation changes the relative price of imports and exports c. U.S. exporters prefer a strong dollar d. exchange rates fluctuate after the G20 meeting each year

b. currency depreciation and appreciation changes the relative price of imports and exports

CRM stands for__________. a. communications, retailing, marketing b. customer relationship management c. consumer reaction marketing d. consumer relations manager e. customized relative management

b. customer relationship management

Which of these falls directly under the responsibility of first-line managers? a. corporate benchmark setting b. day-to-day operations c. resource allocation for strategic planning d. crisis management planning e. plans with 1-3 year timeline

b. day-to-day operations

In the United States today, labor membership is a. increasing because of a shift toward service industries b. declining because of a shift toward service industries c. no longer legal in many states d. decreasing because unions are being replaced by bargaining units

b. declining because of a shift toward service industries

Mariah is a manager who enjoys having employees actively participate in the​ decision-making process. She listens to what employees say prior to making decisions. She would best be described as​ a(n) ________ leader. a. autocratic b. democratic c. dictatorial d. visionary e. aristocratic

b. democratic

Marketing departments do NOT serve which of the following functions? a. establish meaningful relationships with customers to instill loyalty b. determine what products to produce and what products not to produce c. establish desirable pricing strategies d. promote an organization by persuading customers that their products are the best e. keep an eye on what people need and want

b. determine what products to produce and what products not to produce

A(n) _____ is someone who identifies a business opportunity and assumes the risk of creating and running a business to take advantage of it. a. small business owner b. entrepreneur c. executive d. marketer

b. entrepreneur

A(n)_________ is someone who takes the risk of creating, organizing, and operating a business, usually to satisfy an unmet need in the marketplace. a. business owner b. entrepreneur c. venture capitalist d. innovator e. opportunist

b. entrepreneur

When Shell Oil works toward reducing emissions of nitrous oxide and sulfur dioxide from its facilities, which of the following pillars of corporate social responsibility is this NOT an example of? a. environmental, health, and safety concerns b. ethical sourcing and procurement c. marketing and consumer issues d. human rights and employment standards in the workplace e. community and "good neighbor" policies

b. ethical sourcing and procurement

Airbus competes on the basis of price while selling a standardized or homogeneous product. The company is using a ___________ strategy. a. transnational b. global c. multidomestic d. domestic e. national

b. global

Doing business in countries with socialist economies that are government controlled a. is not legal for businesses headquartered in the United States b. happens often today despite political tension c. almost ensures profit because socialist economies have lower costs of production d. is unprofitable because of embargo sanctions

b. happens often today despite political tension

Which of the following is NOT one of the most common consumer market segmentation classifications? a. geographic b. home ownership c. behavioral d. psychographic e. demographic

b. home ownership

As a result of their influence on the quantity, variety, and quality of products, trade barriers ___________ domestic consumers. a. give an absolute advantage to b. hurt c. have no effect on d. help e. appease

b. hurt

As a business owner, you're responsible for making the decisions that pertain to the profitability of your business. This decision-making freedom best reflects the _____ advantage of small business ownership. a. financial b. independence c. lifestyle d. first-mover

b. independence

Despite their benefits, traditional pyramidal management has been criticized as being ________. a. top-heavy b. inflexible c. uneconomical d. impersonal e. unprofitable

b. inflexible

The Small Business Administration offers an array of programs to help small business owners and prospective business owners. Services include all of the following except assistance in_____. a. obtaining financing b. interviewing job candidates c. managing operations d. developing a business plan

b. interviewing job candidates

In business relations all of the following are influenced by our personal ethics EXCEPT ________. a. thoughts b. job titles c. actions d. words e. behavior

b. job titles

A partner who invests money in a business but is not involved in the day-to-day operation and is only risking capital equal to what they have contributed is called a _________. a. general partner b. limited partner c. partial partner d. corporate investor e. back-up partner

b. limited partner

Shabnam and Mahir own a car wash. Shabnam runs the car​ wash, and Mahir primarily just provides capital in return for some equity and share of the profits. Mahir is​ a(n) __________ in the business. a. angel investor b. limited partner c. general partner d. full partner e. restricted partner

b. limited partner

Shauna is the sales manager for a regional chain of bookstores. She reports to the executive vice president of sales and marketing, and each sales manager reports to Shauna. Shauna would be considered a a. top manager b. middle manager c. first-line manager d. Both b and c

b. middle manager

The organization you work for just hired a new CEO. Within the first week in her new position, the CEO sent a memo to the firm's board of directors and senior managers that defined the purpose of the business as well as the basic goals and philosophies of the business. This document serves as a draft of a new a. vision b. mission statement c. goals and objective statement d. tactical plan

b. mission statement

There are four coffee shops in your town. All of them claim to have the "freshest tasting coffee." Each shop advertises the unique benefits of its coffee and prices. This is an example of a. pure monopoly b. monopolistic competition c. a regulated monopoly d. an oligopoly

b. monopolistic competition

Which of the following is NOT a way that technology is used in CRM? a. calling consumers to persuade them to try a company's products b. personalizing communication to address customer's particular needs c. offering products tailored specifically to customers' needs and desires d. suggesting future purchases based on prior purchases or browsing interests e. emailing coupons to customers who have "liked" a company on Facebook

b. personalizing communication to address customer's particular needs

Maggie wants to start a fine dining restaurant in her town and dreams someday of having a chain of restaurants all over the country. She can be considered a growth entrepreneur because she__________. a. believes that revenues from her restaurant will grow rapidly b. plans to have her business expand beyond her original restaurant c. understands that there is an increasingly large market for dining experiences d. wants to be able to run her business out of her home e. hopes that her restaurant will attract customers

b. plans to have her business expand beyond her original restaurant

Victor is using the Internet to research past charges that have been filed against the pharmaceutical company Pharmacure. Victor is primarily trying to find out about Pharmacure's ________. a. code of ethics b. record of legal compliance c. mission statement d. corporate culture e. corporate vision

b. record of legal compliance

Ethics are based on a. the current popular culture b. religious, cultural, or ethnic systems c. society's legal system d. each situation and the moral consequences of an action

b. religious, cultural, or ethnic systems

What is the best definition for data? a. opinions about the effectiveness of a business b. representation of facts or ideas c. numbers or facts organized to be useful d. statements of facts or ideas e. information used to improve business practices

b. representation of facts or ideas

A small business that buys goods from other firms and sells them to consumers is known as a _____. a. franchiser b. retailer c. wholesaler d. distributor

b. retailer

Ophelia has a small amount of equity in her​ father's candy​ factory, which is a C corporation. This makes her a​ __________. a. member of the Board of Directors b. shareholder c. chief operations officer d. limited partner e. general partner

b. shareholder

A dishwasher is an example of a(n)___________ good. a. convenience b. shopping c. maintenance, repair, and operating d. unsought e. specialty

b. shopping

When companies compete aggressively on the basis of price, quality, and brand-name image because consumers carefully compare brands, these businesses are most likely selling_________ goods and services. a. convenience b. shopping c. specialty d. unsought

b. shopping

Paula is thinking of making homemade perfumes and selling them to her relatives. She has not filed any legal documents to start her business. Paula would be operating as a(n) ________. a. limited liability company b. sole proprietor c. S corporation d. unlimited partner e. corporation

b. sole proprietor

Phishing can be used to a. minimize the taxes owed to the federal government b. steal identity information from unsuspecting clients c. record the keystrokes typed in when someone is logging into a password-protected site d. help save storage space on mobile devices

b. steal identity information from unsuspecting clients

A laissez-faire leader would a. challenge every decision b. take a very hands-off approach to management c. believe in strong involvement in employee teams d. be very important to a company experiencing a crisis

b. take a very hands-off approach to management

The management team of Company A decides to offer to buy the stock from all the shareholders of Company B at a higher price than current market value. Company A is launching a a. proxy fight b. tender offer c. friendly acquisition d. friendly takeover

b. tender offer

Several investors are looking for information about an up-and-coming, Soft Sip. Which government agency ensures that the investors have access to this information? a. the Equal Employment Opportunity Commission b. the Securities and Exchange Commission c. the United States Department of Agriculture d. the United States Congress e. the Department of Health and Human Services

b. the Securities and Exchange Commission

Which of the following is the limit of liability of a limited partnership? a. the amount of their personal assets b. the amount of their investment c. the amount of his/her share of the profits d. the amount of business capital e. the amount of the total profits

b. the amount of their investment

What does the monthly consumer price index (CPI) measure? a. the number of new products purchased by consumers b. the changes in prices of goods and services purchased by households c. the changes in prices of goods and services purchased by households d. the changes in prices of the resources used to create consumer goods e. the amount of products and services manufactured domestically

b. the changes in prices of goods and services purchased by households

What is the money supply? a. the combined amount of money available in privately owned accounts b. the combined amount of money available within the economy c. the amount of money the government is allowed to spend to stimulate economic growth d. the total amount of money held in the Federal Reserve Bank e. all the coins and bills held by people, businesses, and banks

b. the combined amount of money available within the economy

A group of people elected by a firm's shareholders to oversee the operation of a corporation are a. the firm's CEO, CFO, and COO b. the firm's board of directors c. the firm's line managers d. All of the above

b. the firm's board of directors

Which of the following is NOT a legal right under the Consumer Bill of Rights? a. the right to be heard b. the right to bear witness c. the right to safety d. the right to choose e. the right to information

b. the right to bear witness

All of the following statements about open market operations are true EXCEPT__________. a. they are used by the Federal Reserve to change the Federal Funds Rate b. they are used by the Federal Reserve to change the discount rate c. they are used by the Federal Reserve to buy and sell mutual funds d. they are used by the Federal Reserve to transact with securities dealers e. they are probably the most influential tool the Federal Reserve has to alter money supply

b. they are used by the Federal Reserve to change the discount rate

Which of the following best defines the essential task of self-reporting? a. to define values and ethical standards in the workplace b. to document the company's actions regarding corporate social responsibility to its stockholders c. to donate profits or resources to socially conscious and environmental organizations d. to submit all financial accounts to public scrutiny e. to use social media to promote awareness of and raise funds for worthy causes

b. to document the company's actions regarding corporate social responsibility to its stockholders

Why does the U.S. Bureau of Labor Statistics evaluate the CPI's "market basket"? a. to ensure that it reflects current trends in the production of goods and services b. to ensure that it reflects current consumer spending habits c. to ensure that it reflects current wholesale spending habits d. to ensure that it reflects current consumer demand e. to ensure that it reflects current wholesale resource costs

b. to ensure that it reflects current consumer spending habits

Which of the following is NOT a reason to seek out temporary work? a. to earn income while maintaining a flexible schedule b. to join retirement and pension plans at various companies c. to experience different types of work and to meet many people d. to gain real-world experience in an industry you'd like to pursue on a full-time basis e. to gain real-world experience in a field in which you may be interested

b. to join retirement and pension plans at various companies

When Mu Manufacturing Co. exports their technological know-how in exchange for a fee, they are entering foreign markets through a ________. a. strategic alliance b. turnkey project c. franchise d. wholly-owned subsidiary e. licensing agreement

b. turnkey project

Among the disadvantages of business ownership, both brothers would probably balk at the prospect of _____. a. financial risk b. undesirable duties c. time commitment d. stress

b. undesirable duties

Among the disadvantages of business ownership, Jacob would probably balk at the prospect of_____. a. financial risk b. unlimited liability c. time commitment d. stress

b. unlimited liability

James Rodriguez wants to spend more time at home with his two-year-old granddaughter and is considering leaving his company. He could receive three months' pay and the same retirement package he will be eligible for in three years' time if he leaves now. This type of offer is called a(n) a. independent consultant status b. worker buyout c. retirement d. compressed workweek

b. worker buyout

Raw and processed materials

basic inputs that become part of a finished good

Baby Boomers

born between 1943-1960 "the veterans"

Social intrapreneurs

build and develop ventures within a company that are designed to identify and solve large-scale social problems

Transnational strategy

businesses compete by offering a customized product while simultaneously selling at the lowest possible price (face strong costs pressures and strong pressure for differentiation)

Global strategy

businesses compete primarily on the basis of price while selling a standardized product

importing

buying products from another country

Enable others to act

by giving people access to information and empowering them to work to their fullest potential

Model the way

by serving as a living example of the ideals in which they are asking their employees to share

Imagine that New England​ Airlines, a regional carrier in Rhode​ Island, decides to merge with Porter​ Airlines, a carrier based in​ Toronto, Canada. What type of merger would this​ represent? a. A conglomeration b. A vertical merger c. A market extension merger d. A hostile takeover e. A horizontal merger

c. A market extension merger

LinYee created a document that includes a situational analysis and a discussion of the target market. LinYee's document is called a. Marketing research b. A marketing mix c. A marketing plan d. A marketing segmentation

c. A marketing plan

Angela owns a custom jewelry business. She and her employees design and market the​ jewelry, but she uses outside manufacturers to produce the pieces. Employee benefits and payroll are administered by still another company. What type of organization does Angela​ operate? a. A matrix organization b. An inverted organization c. A network organization d. A staff organization e. A line organization

c. A network organization

An insurance company was posting a job notice about a new position within the company. The notice stated that a younger employee was desirable because they thought he/she would stay with the company for a longer period of time. This kind of behavior is considered illegal under the _____________. a. Civil Rights Act of 1964 b. Americans with Disabilities Act c. Age Discrimination in Employment Act d. Workplace Diversity Act e. Discrimination Act of 1999

c. Age Discrimination in Employment Act

Omni Hotels is renowned for having an environment in which customers are treated like​ royalty, and employees are treated even better. What term below best describes this​ situation? a. Visionary leadership b. Emotional intelligence c. Corporate culture d. Theory X environment e. Expectancy theory

c. Corporate culture

Which of the following is the BEST example of an employee in a flow state? a. Gloria finds her job tasks more challenging than she expected, which often leads her to frustration b. Pedro finds his job tasks much simpler than he expected, which sometimes leads to boredom c. Diana feels in control of her job situation, which often leads to her producing her best work d. Yuki feels her job is adequately challenging but does not make the best use of her skills e. Don finishes his assignments quickly, as they are not challenging enough to require much effort

c. Diana feels in control of her job situation, which often leads to her producing her best work

Marianne is the payroll manager at Johnson Manufacturing. She wants to upgrade the department's accounting systems. To whom should she send her request for an upgrade? a. The IT department's Help Desk b. Vice President of Marketing c. Director of Management Information Systems d. Vice President of Operations e. Director of Human Resources

c. Director of Management Information Systems

The country of Kappa sells pizza for $1.00 each within its borders. But Kappa exports pizzas at a price of $0.30. This is an example of ________. a. An embargo b. Cheap foreign labor c. Dumping d. An administrative trade barrier e. A local content requirement

c. Dumping

Which of the following companies, formerly in the top 25 of Fortune magazine's 100 Best Companies to Work For, is no longer in business as the result of flagrant legal and ethical violations? a. Verizon b. Exxon-Mobil c. Enron d. Archer Daniels Midland e. British Petroleum

c. Enron

Which statement BEST describes why a successful entrepreneur needs to be flexible =? a. Starting a new business often leads to envy in wider business community b. People with whom entrepreneurs work are often opinionated and rigid c. Entrepreneurial ventures involve risky situations and unexpected events d. Initial business revenues tend to be low and may remain low for several years e. Many new businesses suffer from a lack of organization

c. Entrepreneurial ventures involve risky situations and unexpected events

Rebecca has been operating a pet grooming business for several years and has already maxed out her personal credit and savings. She has designed a device that will make the pet grooming process more efficient but needs about $125,000 to take the idea further and perhaps sell it to other pet groomers. Which is the most likely source of financing that Rebecca could use? a. Credit cards b. Line of credit c. Funds from an angel investor d. Venture capital financing

c. Funds from an angel investor

Laurie is an independent thinker and enjoys change. She also values her family life over her work life. Laurie is most likely from which generation? a. Silent b. Boomer c. Gen-X d. Millennial e. Lost

c. Gen-X

_____ refers to the shift toward a more integrated and interdependent world economy. a. Forward integration b. Mass customization c. Globalization d. Commercialization e. Vertical integration

c. Globalization

Which of the following is not an example of a product line length? a. Diet Coke, Cherry Coke, and Classic Coke b. Quaker Instant Oatmeal, Quaker Oatmeal Squares, and Quaker Toasted Oats c. Honda Civic, Honda lawn mower, and Honda marine engine d. Crest 3D White toothpaste, Crest Baking Soda & Peroxide toothpaste, and Crest Pro-Health Clinical Gum protection toothpaste

c. Honda Civic, Honda lawn mower, and Honda marine engine

Which of the following is contributing to the acceleration of globalization? a. The dominance of the U.S economic system b. A shrinking role for developing nations c. Increasing Democratization d. A rise in the number of non-U.S small, local businesses e. Restricting the amount of foreign direct investment

c. Increasing Democratization

Hannah is the lead engineer on an important project for the company. She believes that if she brings in the project on time and under​ budget, she'll be rewarded with a promotion.​ However, if the project is late or exceeds the budgetary​ restraints, she will be either demoted or fired. What is this belief​ called? a. Belonging b. Self esteem c. Instrumentality d. ​Self-actualization e. Valence

c. Instrumentality

All of the following statements about a corporation are true​ EXCEPT? a. It pays taxes on profits​ (if it is a​ for-profit). b. It can be sued. c. It is dissolved when the owner dies. d. It can own property. e. It is a separate entity from its owners.

c. It is dissolved when the owner dies.

Which of the following is not a characteristic of a small business? a. They generally have between 500 and 1,000 employees b. On average, the annual is no more than $7 million c. It is independently owned and operated d. It is not considered a dominant player in its industry

c. It is independently owned and operated

_____________ is the process of working with people and resources to accomplish the goals of an organization. a. Human resources b. Organization c. Management d. Intellectualizing e. Strategizing

c. Management

Which of the following statements is most likely to be true of outsourcing? a. Dispersing value-creation activities through outsourcing tends to increase the costs requires to develop a product offering. b. In today's world, outsourcing efforts are primarily confined to manufacturing activities, and do not include service activities. c. Outsourcing production to foreign countries increases the chance for companies to gain significant orders for their products from those countries. d. Outsourcing always increases the time required to develop a product, and allows no manufacturing flexibility. e. A multinational company cannot customize its products for local markets of different countries if it outsources its production activities.

c. Outsourcing production to foreign countries increases the chance for companies to gain significant orders for their products from those countries.

Russ's role within the organization is envisioning the future of the​ company's products and devising the strategies to make those visions a reality. Which function of management would best reflect these​ activities? a. Controlling b. Leading c. Planning d. Divesting e. Organizing

c. Planning

Which of the following best describes a horizontal organization? a. Power is​ centralized, and many layers of managers exist. b. Every employee directly reports to a supervisor. c. Power is distributed among employees. There are few managers and many empowered employees. d. There are no managers in the company. Rank and file employees make all business decisions. e. There are many layers of​ management, and employees are​ low-skilled and disempowered.

c. Power is distributed among employees. There are few managers and many empowered employees.

Market segmentation based on lifestyles, personality traits, motives, and values is called a. Geographic segmentation b. Demographic segmentation c. Psychographic segmentation d. Behavioral segmentation

c. Psychographic segmentation

A U.S company exports products to Russia. The prices of the U.S products in Russia are going up because the value of the dollar has ___________ against Russia's currency. a. Failing b. Equalized c. Risen d. Stabilized

c. Risen

Leslie is excited to begin a personal shopping business. She is planning to have employees and is concerned about losing personal assets should something happen to the business. She would like to focus on profits and building a business but she does not want her business to pay its own taxes. What ownership structure is Leslie's best choice? a. sole proprietor b. C corporation c. S corporation d. cooperative e. limited partnership

c. S corporation

A business can create a competitive advantage by doing all of the following EXCEPT a. Investing in cutting-edge technology b. Accessing cheap raw materials c. Shifting funding away from worker training in order to increase profits d. Purchasing state of the art equipment e. Promoting innovation throughout their organization

c. Shifting funding away from worker training in order to increase profits

_____ companies provide valuable services to _____ companies by acting as sales agents for their products. a. Entrepreneurial / corporate b. Large / small c. Small / large d. Wholesale / retail

c. Small / large

InfoTech offers its employees long-term employment with a focus on individual responsibility. As a result, its workers are loyal to the organization, are highly productive, and have strong morale. The management style InfoTech most likely is applying is __________. a. Theory X b. Theory Y c. Theory Z d. expectancy theory e. strength-based management

c. Theory Z

Which of the following statements is true regarding the globalization of markets? a. As a result of the globalization of markets, tastes and preferences of consumers in different nations are beginning to differ more. b. By offering the same basic product worldwide, firms fail to create a global market. c. There still exist significant differences among national markets along many relevant dimensions, including distribution channels, culturally embedded value systems, and legal regulations. d. The most global of markets are not typically markets for industrial goods and materials, but markets for consumer products. e. A company has to be the size of a multinational giant, such as Citigroup or Coca-Cola, to facilitate, and benefit from, the globalization of markets.

c. There still exist significant differences among national markets along many relevant dimensions, including distribution channels, culturally embedded value systems, and legal regulations.

Carla wants to start a new software company, but she lives in a remote community where few skilled software programmers live. Which of the following is the BEST cost-effective strategy for building her workforce? a. Produce only software she can create herself b. Offer free computer programming training programs to the local workforce c. Use the Internet and other technologies to hire remote employees who want to telecommute d. Wait until more software programmers move to the area e. Relocate to an urban area where there are many software programmers

c. Use the Internet and other technologies to hire remote employees who want to telecommute

Ethical sourcing means that a. people should make ethical decisions based on a particular situation b. there is one accepted source for guiding ethical decision making c. a company follows accepted conduct when acquiring raw materials from suppliers d. companies will not work with international suppliers

c. a company follows accepted conduct when acquiring raw materials from suppliers

If you were a venture capitalist, which of the following start-up businesses would you be most likely to fund? a. a Domino's Pizza franchisee b. a modern art gallery within a shopping center c. a producer of unique iPhone applications d. a private accountant's office e. a high-end coffee bar

c. a producer of unique iPhone applications

In terms of​ Herzberg's motivator-hygiene​ theory, all of the following would likely be considered motivator factors EXCEPT​ _______. a. promotion b. a sense of responsibility c. a safe working environment d. recognition e. job growth

c. a safe working environment

Which of the following is an internal examination by a company to measure its performance in relation to corporate social responsibility? a. Fortune's list of most admired companies b. a published report from Boston College's Center for Corporate Citizenship c. a social audit d. the scores the Calvert Investment Company assigns to companies e. a code of ethics

c. a social audit

In business planning, what is the main course of action created by top-level managers? a. a financial analysis b. a marketing plan c. a strategic plan d. a SWOT analysis e. a mission statement

c. a strategic plan

If the United States has the ability to produce more steel than any other country in the world, the United States has a(n)________ advantage in steel production. a. relative b. globalized c. absolute d. comparative e. artificial competitive

c. absolute

Barney is an HR manager and would like to see a more diversified workforce at his company. He decides the best way to do this is to follow a plan that requires the company to employ a certain number of minorities and women. This plan is otherwise known as ________. a. employment at will b. workforce profiling c. affirmative action d. diversity training e. diverse affirmation

c. affirmative action

___________ occurs when there are few sellers in a given market and each seller has a fairly large share of that market. a. monopolistic competition b. a monopoly c. an oligopoly d. perfect competition e. a duopoly

c. an oligopoly

An example of currency __________ would be if the value of the U.S dollar rises against the Malagasy ariary (the currency of Madagascar). a. internalization b. globalization c. appreciation d. depreciation e. exchange

c. appreciation

Janet is a human resource manager for a larger consumer products company. She has a great many job responsibilities. Which of the following is most likely NOT an aspect of her job? a. employee evaluations b. training and motivating c. asset management d. staffing needs e. benefits

c. asset management

When businesses hire celebrities to endorse their products and connect their brands with positive attributes, they are focusing on enhancing their brand a. loyalty b. awareness c. association d. extension

c. association

A mixed economy is one in which _________. a. the government or other centralized group determines and controls all resources and means of production b. there is no government intervention whatsoever in industry c. both individuals and government control resources and determine production methods d. both resources and means of production are extremely limited and generally confined to agricultural produce e. either individuals or private firms, but not both, control resources and determine production methods

c. both individuals and government control resources and determine production methods

Rashid is starting a consulting business. He doesn't want to rent an office right now, but needs a receptionist, a place to meet clients, and other aspects of an office. A good solution for Rashid to consider would be a(n) a. mentoring group b. advisory board c. business incubator d. entrepreneurial team

c. business incubator

The​ __________ of a company is responsible for​ review, analysis, and reporting of a​ firm's financial​ data, including preparing budgets and monitoring its expenditures and costs. a. chief operations officer b. chief executive officer c. chief financial officer d. chief monetary officer e. chief controller of finance

c. chief financial officer

The Calvert Company assigns companies scores based on their performance in which of the following categories? a. freedom of information b. transparency c. community relations d. truth in advertising e. consumer privacy

c. community relations

Socially responsible investing(SRI) is defined as investing only in companies that have met a certain standard of ____________. a. social acceptability b. global impact c. corporate social responsibility d. financial transparency e. social media usage

c. corporate social responsibility

The most important step in the process of starting a business is _____ a. generating a mission statement b. getting financing c. creating a business plan d. assembling a team of managers

c. creating a business plan

A manufacturer of yachts sets its prices high above its competitors. This is an example of the pricing objective of ________. a. achieving social objectives b. cutting costs to survive c. creating an image d. building traffic e. maximizing sales

c. creating an image

Hilde's company wants to develop an understanding of the demographics of people purchasing its new product. The company wants to target its marketing at this demographic of people. The marketing department has used a database management system to identify the characteristics of buyers. Which of the following will be MOST useful for identifying the appropriate demographic group at which to target marketing? a. data consolidation b. data brainstorming c. data mining d. data marting e. data warehousing

c. data mining

Prices become higher when a unique and highly desirable item is auctioned because the ________. a. supply and demand are equal b. supply is higher than the demand c. demand is higher than the supply d. demand is lower than the supply e. supply and demand are kept unknown

c. demand is higher than the supply `

Which of the following BEST demonstrates that different countries have different attitudes toward work? a. different religious traditions b. different aesthetic norms c. different vacation policies d. different language standards e. different cultural customs

c. different vacation policies

Jenny and Rose are hairstylists that have decided to open their own salon by starting a general partnership. The first step to ensuring a successful partnership would be to ________. a. guarantee that they each have 25 clients to bring into the partnership b. submit the partnership formation fee to the state c. draw up a partnership agreement d. submit the limited liability forms before they see clients e. arrange for the special tax filing considerations a partnership requires

c. draw up a partnership agreement

All of the following are reasons business owners consider using a corporation structure of ownership EXCEPT___________. a. the appearance of stability and legitimacy b. protection from significant loss of personal assets c. ease of forming and setting up the structure d. eased ability of raising capital e. ease of transferring ownership

c. ease of forming and setting up the structure

The nation of South Pi is experiencing rapid increases in business activity, but still lacks sufficient infrastructure and modern communication systems. Which challenge to conducting international business is the PRIMARY one faced by exporters to Pi? a. nonconvertible currency b. government economic policies c. economic growth and development d. socioeconomic factors e. cultural behaviors of a community

c. economic growth and development

The various resources used to create a company's goods and services are collectively referred to as__________. a. supplies b. raw materials c. factors of production d. inventory e. intellectual property

c. factors of production

Eumin is highly involved in the project on which​ he's working and gets grumpy when interrupted. Eumin is in a state of​ __________ because he is consumed by the job​ he's working on. a. chi b. ​self-actualization c. flow d. valence e. vision

c. flow

Amy is the founder of a small IT firm that specializes in social networking applications. She meets weekly with the members of her development team to solicit their ideas, address any problems they are having, and provide motivation and encouragement. Amy is demonstrating which characteristic of a successful entrepreneur? a. self-directed b. risk-taking c. leadership and communication skills d. innovative e. flexible

c. leadership and communication skills

Situational ethics encourages people to ________. a. evaluate how they can best meet their individual needs in any particular situation b. apply the basic values shared by all major religious traditions to a variety of situations c. make ethical decisions based upon the circumstances of a particular experience, not upon fixed laws d. have no interest in the moral consequences of their actions e. create a personal code of ethics based on their family background

c. make ethical decisions based upon the circumstances of a particular experience, not upon fixed laws

If you're purchasing an existing business or a franchise, banks may offer lines of credit to help you___________. a. create a business plan b. avoid borrowing from a savings and loan association c. make payroll when business is slow d. find an angel investor e. repay loans from family and friends

c. make payroll when business is slow

Rashan has been working as a pharmacist at a large drug store chain. He would like to open his own small pharmacy but is not sure if he could be successful given the predominance of large competitors. What part of his business plan would best address his concern? a. company information b. risk analysis c. marketing plan d. operational plan e. mission statement

c. marketing plan

In which type of business would you most likely find a Theory X style of management? a. District Attorney's office b. social think tank c. mass manufacturing company d. long-term care hospital e. public relations firm

c. mass manufacturing company

The controlling function of management is best described as a. keeping employees in line b. watching employees carefully by monitoring their e-mail and phone usage c. measuring the firm's performance to make sure the company's plans are on track d. All of the above

c. measuring the firm's performance to make sure the company's plans are on track

Celeste is interested in studying the effects that natural disasters have on the value of goods and services in the affected areas. Her area of study should be ________. a. macroeconomics b. sustainability c. microeconomics d. sociology e. marketing

c. microeconomics

Division managers who are responsible for financial, marketing, sales, operations, or IT divisions and team leaders who are responsible for a group of employees are _____________. a. top managers b. first-line managers c. middle managers d. senior managers e. executive board members

c. middle managers

McDonald's selling seaweed-flavored fries in Asian countries is an example of a company pursuing a ___________ strategy. a. transnational b. global c. multidomestic d. domestic e. national

c. multidomestic

When Boeing recently produced its latest airplane, the Boeing 787, parts of the plane were manufactured by a firm in Italy, other parts were manufactured by a firm in Wichita, Kansas, and all of the elements of the plane were shipped to Everett, Washington, where the final assembly was completed. This is an example of a ________ organization. a. vertical b. horizontal c. network d. team e. cooperative

c. network

Social media monitoring is best described as a. planning events where the sales force mingles with potential clients b. regulating the use of e-mail and messaging in the workplace c. staying aware of the messages posted about your products in cyberspace d. eavesdropping on personal communications

c. staying aware of the messages posted about your products in cyberspace

Once a company's vision and mission statement have been articulated, management must assess a company's SWOT, which stands for ________. a. strengths, weaknesses, operations, and targets b. strengths, world view, obligations, and tasks c. strengths, weaknesses, opportunities, and threats d. strengths, weaknesses, organization, and threats e. strengths, world view, organization, and targets

c. strengths, weaknesses, opportunities, and threats

The amount of a product or service that is available for purchase at any given time is called ________. a. demand b. shortage c. supply d. surplus e. commodity

c. supply

If the value of the nation of Nu's exports is greater than the value of its imports, Nu has a trade___________. a. balance b. currency c. surplus d. deficit e. equilibrium

c. surplus

The fact that modern, sophisticated manufacturing innovations have enabled many firms to more easily customize their products and to offer them at drastically reduced prices to satisfy the varying tastes of targeted customers represents the impact of the __________ on the marketing of products. a. social and cultural environment b. competitive environment c. technological environment d. 4 P's e. economic environment

c. technological environment

Melinda is a store owner who buys items online to sell in her shop. Which of the following factors of production is BEST illustrated in Melinda's use of the Internet? a. entrepreneurs b. labor c. technology d. capital e. natural resources

c. technology

Joseph took a class in macroeconomics, which means that he was studying the behavior of ________. a. people with limited resources b. individual businesses c. the overall economy d. fortune 500 companies e. corporate executives

c. the overall economy

When Gary Erickson, the founder of Clif Bar, Inc., was about to accept an offer of $120 million for the company, he changed his mind because ________. a. the offer was too high b. the offer was too low c. the purchasers were planning to move Clif Bar out of state and lay off all current employees d. the purchasers were not intending to use renewable energy as the main power source for the company e. the purchasers were not going to use exclusively organic ingredients to manufacture the energy bars

c. the purchasers were planning to move Clif Bar out of state and lay off all current employees

Wayland wants to open up a deli but doesn't want the risk of opening one up from scratch. He knows about a deli that's for sale, but the owner has put too high a value on the business's goodwill. Goodwill is a. the value of the leftover products the deli gives to the local food pantry b. the value of the donations the deli gives to charity c. the value of the business's reputation with the current owner d. All of the above

c. the value of the business's reputation with the current owner

If you are planning to start a new business, how long should you realistically expect it to take for your business to earn a profit? a. six to twelve months b. one to two years c. three to five years d. five to ten years e. more than ten years

c. three to five years

When needs are satisfied, __________ is created. a. promotion b. market segmentation c. utility d. differentiation e. demographics

c. utility

According to Vroom's model, which psychological force answers the question, "How great a reward will there be if my performance is exemplary? a. expectancy b. instrumentality c. valence d. resonance e. enthusiasm

c. valence

A vision statement identifies _____________. a. the current description of an organization's purpose, basic goals, and philosophies b. the latest accomplishments and innovations of a company c. what the business wants to be in the future d. the way the company would operate if profit were not an issue e. the history of the business and its founder(s)

c. what the business wants to be in the future

Teams improve creativity a. when the phenomenon groupthink sets in b. no matter what the makeup of the team c. when best practices for selecting the team members and roles are followed d. when individuals work with others who are just like them

c. when best practices for selecting the team members and roles are followed

The majority of small businesses in the USA are owned by ____. a. white females b. black females c. white males d. black males

c. white males

If you are developing your own personal ethical system, which of the following would NOT be appropriate to include in your evaluation? a. your belief orgins b. your behavior c. your age d. your beliefs e. your base character

c. your age

Business intelligence software

can further assist managers by helping them analyze the financial state of the firm and answer other questions

Raising capital of an S corporation

capital can be raised through sale of stock and debt; only common stock can be issued

Raising capital of a corporation

capital is raised through sale of stock and debt issue

Cheap foreign labor argument

centers on the sometimes significantly lower wages paid to workers of foreign companies

examples of government decisions

changing interest rates

What are factors that affect demand and supply of a nation's currency?

changing interest rates, tax rates, and inflation rates

base character

characteristics others would use to describe you

Hidden fees

charges not included in the advertised price

M-1

coins and bills, traveler's checks, and checking accounts (currency)

Database management systems

collections of data that organize the data and allow simple analysis and reporting

Network organization

collections of independent single-function firms that collaborate on a product/service

What are examples of a planned economic system?

communism and socialism

Free trade areas

compacts abolishing trade barriers among member countries

Sarbones-Oxley Act

companies must report all finances accurately

Data brokers

companies that gather and sell Big Data

Recruitment consultants (headhunters)

conduct more specialized searches for management, they approach individuals with good reputations instead of waiting for people looking for jobs to contact them

Total product offer

consists of all the benefits associated with a good, service, or idea that impacts a consumer's purchasing decision

Executive information system (EIS)

consolidate and summarize the transactions within an organization

Empowering customer

contact employees to develop solutions to customer concerns creates a competitive advantage

Electronic Performance Support System (EPSS)

contain online modules employees can access when they need training instead of attending long, formal sessions disconnected from their daily work

Teamworker

cooperative and diplomatic

A corporation can behave in a socially responsible way by a. having strong policies b. acting to reduce the negative impact a company has on the environment c. being truthful with consumers in its market d. All of the above

d. All of the above

A well-defined corporate vision benefits a company by a. keeping managers focused on strategies that are consistent with the company's goals b. illustrating the company's values to investors c. inspiring employees d. All of the above

d. All of the above

Human resource management requires expertise in a. managing staffing needs as a company evolves b. training and evaluating employees c. compensation, disciplinary actions, and promotion of employees d. All of the above

d. All of the above

Technology has forced businesses to focus on security issues like a. phishing b. adware and spyware c. disruption by hackers d. All of the above

d. All of the above

Types of training required in some careers include a. an on-the-job mentor b. time spent as an apprentice c. programmed learning d. All of the above

d. All of the above

Which is a key trait of an entrepreneur? a. Flexibility b. Risk Taking c. Creative Thinking d. All of the above

d. All of the above

Which of the following are benefits that companies experience by employing a diverse workforce? a. Cultural differences result in alternative perspectives and lead to better problem-solving b. They fulfill expected affirmative action standards c. Companies become more competitive in the global marketplace d. All of the above

d. All of the above

Which of the following factors commonly leads to the failure of a small business? a. Not enough planning b. Too much accumulated debt c. Unanticipated personal sacrifices d. All of the above

d. All of the above

Which of the following represents a shift from the four P's to the four C's of marketing? a. Considering the complete cost of a product to a consumer b. Making the product convenient to buy c. Focusing on the customer's wants and needs d. All of the above

d. All of the above

Omar and Sam are physical therapists who work together. Their office is on the first floor of a building Omar owns. They need protection of their personal assets. Which business structure would best suit their company? a. A general partnership b. A sole proprietorship c. A not-for-profit organization d. An LLC

d. An LLC

Which of the following is not a characteristic of an entrepreneur? a. Is confident in their innovation or business idea b. Is willing to work under a certain degree of uncertainty c. Has the flexibility to adjust to changing situations d. Avoids risk

d. Avoids risk

Camille, an electronics​ engineer, is a member of a new product development team with members of mechanical​ engineering, quality​ assurance, manufacturing,​ marketing, and accounting. On what type of team does Camille​ work? a. A telecommuting team b. A static team c. A virtual team d. A​ cross-functional team e. A​ strength-based team

d. A​ cross-functional team

Business-to-business transactions include a. brokering sites b. social networking sites c. specialized industry portals d. Both a and c

d. Both a and c

_________ support start-up businesses by offering resources such as administrative and technical support and business networking. a. Advisory boards b. Virtual assistants c. Partners d. Business incubators e. Entrepreneurs

d. Business incubators

If the U.S has the ability to produce more steel than any other country in the world, the U.S has an _____________ advantage in steel production. a. Absolute b. Artificial Competitive c. Globalized d. Comparative e. Relative

d. Comparative

__________ is one of the countries closest to having a planned economy, and _________ is the one of the countries closest to having a market economy. a. Russia, Italy b. India, Norway c. Russia, Norway d. Cuba, Singapore e. Canada, China

d. Cuba, Singapore

Nina's furniture store has had a successful year and made a significant profit. Which of the following actions using Nina's store profits would BEST increase productivity? a. Create an emergency fund b. Service her community through social and educational means. c. Hire more staff d. Develop a website that would enable customers to shop and place orders online e. Pay for utilities and inventory in advance

d. Develop a website that would enable customers to shop and place orders online

_____ is a decrease in the rate of inflation. a. Deflation b. Depression c. Inflation d. Disinflation e. Deflection

d. Disinflation

Jim wants to get an A on the next​ test, so he blocks out the entire evening before the test to study.​ He's convinced that his effort will lead to a good score. Which element of expectancy theory does this​ reflect? a. Affiliation b. Instrumentality c. ​Self-actualization d. Expectancy e. Valence

d. Expectancy

Ydel knows that if she exceeds her sales quota this​ month, she will earn a substantial bonus. What type of motivator is​ this? a. Altruistic b. Intrinsic c. Expectancy d. Extrinsic e. Emotional

d. Extrinsic

Sally started her new business venture five years ago. The business now operates in three locations, and her sales have increased by 25% every year, which is exactly what Sally had in mind. Which type of entrepreneur best describes Sally? a. Social entrepreneur b. Lifestyle entrepreneur c. Growth entrepreneur d. Gazelle

d. Gazelle

A team of managers is sitting around a table discussing ideas for how to solve a complex business problem. The head manager suggests a course of​ action, and most of the team agrees completely without any dissenting viewpoints. Others have objections but do not speak up and share them with the team. What is this an example​ of? a. The Hawthorne effect b. Theory X c. Visionary leadership d. Groupthink e. ​Strength-based management

d. Groupthink

Malik is a manager who is very good at connecting with his people. He is concerned about their feelings and​ well-being and strives to help his employees to maintain a positive attitude. What leadership trait does Malik possess in this​ example? a. He possesses a high level of autocratic tendencies. b. He is a visionary leader. c. He has a high level of technical intellect. d. He has a high level of emotional intelligence. e. He has a high level of​ self-actualization.

d. He has a high level of emotional intelligence.

As a result of their influence on the quantity, variety, and quality of products, trade barriers ________ domestic consumers. a. Give an absolute advantage to b. Help c. Have no effect on d. Hurt e. Appease

d. Hurt

Which of these characteristics is NOT applicable to a multinational company? a. It must comply with the laws of the countries in which it operates b. It may adapt its operations to fit the cultures of the countries in which it operates c. It provides goods or services to international consumers d. Its employees must speak multiple languages e. It may serve only one country but have suppliers or facilities in other countries

d. Its employees must speak multiple languages

ArmiLiza, a popular United States-based brand of handbags, has built a second factory in Mexico. The majority of the new factory's employees are Mexican citizens or Honduran immigrants. On which country's gross domestic product will the second factory's goods be counted? a. They will be split between the United States and Mexico b. Honduras c. the United States d. Mexico e. They will be split among all three countries

d. Mexico

Maxwell is a freshman in college and believes in his self-worth and value. He has high expectations for his achievement in his eventual career. Maxwell spends a good deal of money each month, often making "copurchases" with his parents. Maxwell is most likely from which generation? a. Silent b. Boomer c. Gen-X d. Millennial e. The Greatest

d. Millennial

Employees can be sure their behavior out of the office a. has no impact on stockholders b. cannot impact their career if they blog under a fake name c. matters to employers only during the hours they are officially telecommuting d. None of the above

d. None of the above

Hackers can infiltrate systems a. only if they use cookie files to store information b. if the systems are isolated as a single corporate extranet c. All of the above d. None of the above

d. None of the above

A free trade area that includes Canada and the United States, but not Japan, is the______________. a. Asia-Pacific Economic Cooperation (APEC) b. Association of Southeast Asian Nations (ASEAN) c. European Union (EU) d. North American Free Trade Agreement (NAFTA) e. MERCOSUR

d. North American Free Trade Agreement (NAFTA)

Tenita Reynolds opened a small community bookstore several years ago. When a new book comes out, Tenitia e-mails clients she thinks will enjoy it based on their past purchases. Which part of the marketing process do Tenitia's actions reflect? a. Conducting market research b. Identifying a market need c. Implementing the marketing mix d. Nurturing customer relationships

d. Nurturing customer relationships

A term that describes the movement of production away from a domestic production site to a foreign location is ____________ outsourcing. a. Domestic b. In-house c. Production d. Offshore e. Onshore

d. Offshore

Which pricing strategy sets prices just below a whole number to give the appearance of a lower price? a. Predatory pricing b. Price discrimination c. Target costing d. Psychological pricing

d. Psychological pricing

Ben is performing​ a(n) __________ to determine what opportunities and threats exist for his business. a. strategy session b. tactical planning exercise c. risk assessment d. SWOT analysis e. operational plan

d. SWOT analysis

Aneal is a very successful employee in the IT department. His supervisor wishes to recognize him with a promotion to give him more responsibilities, but knows Aneal does not want to manage other employees. What option does Aneal's supervisor have? a. She does not have any options other than allowing Aneal to remain his current job until he changes his mind about supervising b. She can force Aneal to take on a supervisory role and see if he changes his mind c. She can lower Aneal's level of responsibility in his current job until Aneal is so miserable he'll do anything for a change d. She can offer Aneal a position on an individual contributor career track and the title of senior IT specialist e. She can transfer Aneal to another branch office so at least he'll have new coworkers

d. She can offer Aneal a position on an individual contributor career track and the title of senior IT specialist

U.S. farmers export canned sweet corn to Germany, which lowers the price to a German consumer by a few cents. The benefits to Germany of this international trade deal are ________. a. nonexistent b. Concentrated in the hands of a few German Farmers c. Borne solely by the government d. Spread out among millions of German consumers e. Immeasurable

d. Spread out among millions of German consumers

If the nation of Epsilon places a tax on all grapes imported from the nation of Zeta, Epsilon has imposed an__________. a. Subsidy b. Quota c. Embargo d. Tariff e. Foreign content requirement

d. Tariff

An engineering team has members from Egypt, Malaysia, Australia, Argentina, and the US. They communicate by email and videoconferencing. The collaborative work of this globalized team is made easier mainly because of___________. a. Declines in trade barriers b. A shrinking role for developing nations c. Increases in quotas d. Technological innovation

d. Technological innovation

Which of the following is NOT an example of how not-for-profit organizations use marketing? a. The Sierra Club is holding a masked costume ball for Halloween in San Francisco b. A museum conducts a citywide mailing to attract new membership c. The Ad Council runs a campaign to prevent drunk driving d. The Red Cross is investigating the use of alcohol-based drugs for children's diseases e. A Belgium cultural society wants to inform American tourists that French fries were invented there

d. The Red Cross is investigating the use of alcohol-based drugs for children's diseases

Which of the following is not an advantage of a C corporation? a. The owner's personal assets are protected b. The owner can raise greater sources of funds by selling shares of ownership c. The corporation can continue to exist even if the owner leaves the business d. There is little paperwork involved

d. There is little paperwork involved

Which of the following is NOT a problem typically encountered with performance appraisals? a. There are often difficulties objectively appraising performance, because appraisers often do not see all aspects of an employee's performance b. Often, it is not until the next performance appraisal that it is recognized that recommended training and development did not occur c. There is often no built-in mechanism for following up on suggestions for change or development d. There is much administrative pressure due to the high frequency of an individual's performance appraisals in one year e. There can be discomfort when it is necessary to make negative comments during this review process

d. There is much administrative pressure due to the high frequency of an individual's performance appraisals in one year

What is the most common reason small business owners neglect to seek outside help when starting a business? a. They assume that no one outside their family would be interested in helping them. b. They believe that professional advice is necessary c. They believe that it is exclusively up to the business owner to make a small business succeed d. They think that they cannot afford professional advice e. They think outsiders would not act in the best interests of their business

d. They think that they cannot afford professional advice

Which of the following best describes entrepreneurs? a. They're retired businesspeople working on a voluntary basis b. They're usually onetime managers who open up a business for the sole purpose of providing an income for themselves and their family c. None of these d. They're risk takers who can adjust to changing situations

d. They're risk takers who can adjust to changing situations

American Express competes around the world by offering a customized product while simultaneously selling at the lowest possible price. The company is using a ________ strategy. a. National b. Multidomestic c. Domestic d. Transnational e. Global

d. Transnational

When Mu Manufacturing Co. exports their technological know-how in exchange for a fee, they are entering foreign markets through a ________. a. Strategic alliance b. Wholly-Owned subsidiary c. Licensing agreement d. Turnkey Project e. Franchise

d. Turnkey Project

One example of complementary good is ___________. a. cheese and crackers b. cable television and Internet service c. dog food and a dog bowl d. a cell phone and wireless phone service e. magazines and newspapers

d. a cell phone and wireless phone service

Compared to the C corporation, the limited liability company is an attractive form of business ownership because ________. a. a limited liability company may be more expensive to form but it has a longer life than a C corporation b. a limited liability company allows only one owner, whereas a C corporation requires over 100 owners c. a limited liability company provides owners with protection of their personal assets; whereas C corporation owner's personal assets are at risk d. a limited liability company does not require the firm to hold annual meetings and it can avoid double taxation e. a limited liability company issues stock, while in a C corporation each member's ownership is determined by the value of their capital account

d. a limited liability company does not require the firm to hold annual meetings and it can avoid double taxation

Which transaction BEST describes bartering? a. an exchange of goods for currency, in which the price of something is determined by establishing its value against an underlying commodity b. an exchange of currency without an exchange of goods, in which the price of something is determined by what sellers demand c. a transfer of goods without an exchange of currency, in which the price of something is determined by the seller, and the buyer agrees to pay at a later time d. an exchange of goods without an exchange of currency, in which the price of something is determined by the needs and resources of each person involved in the exchange e. an exchange of goods for currency, in which the price of something is determined by what buyers are willing to pay

d. an exchange of goods without an exchange of currency, in which the price of something is determined by the needs and resources of each person involved in the exchange

Siobhan Clark just bought a Philadelphia Phillies jersey with player Cole Hamel's name and number on the back, as well as a hat and jacket that display the Phillies logo. The type of branding strategy used for these products is a. generic branding b. manufacturer's branding c. private branding d. brand licensing

d. brand licensing

Which of the following is NOT a disadvantage of franchising? a. lack of control b. workload c. competition d. brand recognition e. royalty fees

d. brand recognition

Selling the right price_________. a. does not impact how consumers view a product b. involves setting a specific pricing objective after establishing the price point c. plays no role in determining whether consumers will purchase a product d. can help differentiate the product from the competition e. means simply calculating the cost of production and tacking on a markup for profit

d. can help differentiate the product from the competition

Ethnocentrism is a belief that a. ethics are central to doing well in business b. the value of commerce changes in different societies c. all cultures should be respected equally d. can lead to conflict when conducting business globally

d. can lead to conflict when conducting business globally

Managing the money that comes in and goes out of a business means managing _____. a. the bottom line b. debits and credits c. equity d. cash flow

d. cash flow

The globalization of markets and the globalization of production means that a. people are no longer in control of their own lives b. we are all connected by the Web c. companies can take one product to international markets without have to adapt it d. companies design products for global markets and can produce them offshore

d. companies design products for global markets and can produce them offshore

Pilar's daughter wants a Betty the Builder doll for Christmas. When Pilar gets to the toy store they are sold out, so she goes to another store. There she is told that they have a limited quantity, which will go on special sale at 6am the next morning-and that she'd better get in line early. This is an example of which of the following determinants of demand? a. complementary goods b. population changes c. substitute goods d. consumer preference e. changes in income level

d. consumer preference

If a computer virus spreads rapidly through a company's computer system and threatens to shut down all internal and external lines of communication, the company will likely put a(n)________ into effect. a. strategic plan b. tactical plan c. healthcare plan d. contingency plan e. operational plan

d. contingency plan

Doreen is a marketing instructor at the branch office of a local college. When she cannot teach one of her evening classes, she hires her friend Patrick to fill in for her. In this case, Patrick is a(n)___________. a. consultant b. independent contractor c. job sharer d. contingent worker e. flextime worker

d. contingent worker

What is a valid explanation as to why some nations retain nonconvertible currency? a. to avoid having to countertrade b. increased academic achievement c. desire to work with other countries d. fear of capital flight e. reliance on foreign loans

d. fear of capital flight

Full owners of an unincorporated business who share equal amounts of risk are​ __________. a. full partners b. limited partners c. investors d. general partners e. master partners

d. general partners

The _____ refers to the sourcing of goods and services from locations around the globe to take advantage of national differences in the cost and quality of factors such as labor, energy, land, and capital. a. globalization of markets b. augmentation of products c. amplification of production d. globalization of production e. capitalization of markets

d. globalization of production

The physical products that a business offers are called_________. a. services b. assets c. intangible d. goods e. devices

d. goods

The Federal Reserve System (the Fed) manages the country's money supply through its monetary policy to control inflation by doing all of the following EXCEPT________. a. buying and selling government securities b. trading in foreign exchange markets c. changing in certain interest rates d. increasing taxes e. manipulating reserve requirements

d. increasing taxes

A free market economy is one in which __________. a. the government or other centralized group determines what to produce b. individuals determine what to produce with some level of government involvement c. the government controls healthcare while privately owned businesses operate in other market sectors d. individuals and private firms make decisions based on consumer needs and wants e. privately owned, profit-seeking enterprises are converted to government-owned production and services

d. individuals and private firms make decisions based on consumer needs and wants

Shauna is a manager renowned for her​ __________ within the organization. She is incredibly talented at being able to connect with people and is​ well-trusted by her employees. a. conceptual skills b. intellectual skills c. tactical skills d. interpersonal skills e. technical skills

d. interpersonal skills

In the modern workplace, ________. a. the lines of privacy laws are becoming clearer and sharper b. only the actions of workers physically on site at the office are of concern to employers c. individuals' activity on social media is of no concern to the companies for whom they work d. less distinction is made between how you conduct yourself inside and outside the office e. employers acknowledge that they have no right to influence the behavior of telecommuting employees when they are working from home

d. less distinction is made between how you conduct yourself inside and outside the office

As a business owner, you're in charge and can decide when and where you want to work. This managerial freedom best reflects the _____ advantage of small business ownership. a. time-management b. financial c. intellectual d. lifestyle

d. lifestyle

Owners of limited liability companies are referred to as__________, while owners of a corporation are called __________. a. partners; shareholders b. shareholders; partners c. shareholders; members d. members; shareholders e. partners; members

d. members; shareholders

Galaxy Lighting is a new company creating chandeliers specifically to be used in hotel lobbies. Since its potential customers are very narrowly defined, it must undertake ________ to focus its marketing efforts. a. a search for the appropriate distribution channel b. careful analysis of statistics c. situational analysis d. niche marketing e. environmental scanning

d. niche marketing

According to moral relativism ________. a. gossiping creates a more divisive workplace b. people make decisions based on a specific situation instead of universal laws c. everyone is equal in the eye of the law d. no single view is more valid than any other e. applying the Golden Rule is more important than complex sets of moral rules

d. no single view is more valid than any other

The most significant difference between a partnership and a sole proprietorship is the ________. a. amount of liability owners b. taxation process used by owners c. number of government forms required for establishment d. number of people contributing resources e. revenue potential

d. number of people contributing resources

Which of the following BEST describes how businesses convert raw data into information? a. maintaining the representations of facts or ideas in their original form b. storing the data in a data warehouse c. asking information technology experts to review data for accuracy d. organizing the data in a way that helps make decisions e. using the prevalent automatic process

d. organizing the data in a way that helps make decisions

In Maslow's hierarchy, the need for water, food, and sleep are classified as ___________ needs. a. self-actualization b. safety c. belonging d. physiological e. esteem

d. physiological

John is an employee at a car manufacturer. Today he has come into work to find that production has stopped because the government has determined that the steel used in the cars will be better used in the manufacture of a new railway line. John doesn't mind, because although his wages are low, he gets paid whether there is any work for him to do or not. John MOST likely lives in a ________ economy. a. blended b. capitalist c. market d. planned e. mixed

d. planned

Marketing has evolved over which general eras? a. innovation, production, sales, customer relationship b. production, promotion, sales, marketing c. production, value chain, purchasing, niche, customer relationships d. production, sales, marketing, societal marketing, customer relationship e. innovation, production, sales, marketing concept, satisfaction

d. production, sales, marketing, societal marketing, customer relationship

The market mechanism benefits society by ensuring that__________. a. resources are used to increase the benefits of low-value products. b. more people will want to buy more BlackBerrys c. raw materials and labor flow into the production of goods with the lowest demand d. scarce resources are channeled into products most desired by society e. society will maintain the current standard of living

d. scarce resources are channeled into products most desired by society

William was a factory worker in the 1920s. His company trained him in the exact sequence of steps he needed to make each day so that he would work to maximize productivity. William's company was using the principles of ___________. a. uncertainty management b. management by objectives c. Theory Z management d. scientific management e. strength-based management

d. scientific management

Isaac is a franchise owner of a fast food restaurant. When another franchisee is accused of using artificial meat in its hamburgers, sales at Isaac's franchise location drop dramatically. What disadvantage of franchising is BEST demonstrated by Isaac's situation? a. workload b. poor initial training c. lack of advertising support d. sharing common problems e. competition

d. sharing common problems

A survey conducted by the Wall Street Journal indicates that _____ have a more satisfying business experience. a. top-level executives b. franchise owners c. team members d. small business owners

d. small business owners

Software that tracks your personal information and sends it to a third party without your knowledge is called ___________. a. phishing b. adware c. spam d. spyware e. PPC

d. spyware

Which of the following would LEAST likely be an indicator of a company's values and principles? a. the company's code of ethics b. the company's mission statement c. the company's record of legal compliance d. the company's marketing campaign e. the owner's behaviors and priorities

d. the company's marketing campaign

IT is a. internship technology opportunities b. company-wide investigations of office conduct c. building a networking plan for the flow and use of information d. the design and implementation of computer-based systems

d. the design and implementation of computer-based systems

When employees are motivated, a. they often take more time to be with their families b. they often move on to other companies c. net profits tend to decline d. they are more productive and creative

d. they are more productive and creative

Emma bought a tablet and a smartphone. These products are called goods because_________. a. they do a good job of satisfying a customer's needs b. they are produced in an economical offshore factory c. they can be sold either in a store or online d. they are physical or tangible products e. they are good at increasing a company's profit margin

d. they are physical or tangible products

Situational ethics was considered very controversial when it was established by Joseph Fletcher because it challenged the idea that ________. a. people make decisions based on a specific situation instead of universal laws b. most people act in their own self-interest when making decisions c. people make decisions based on a specific situation no matter what the consequences are d. universal rules exist and can be applied to every situation e. some people have no sense of right and wrong

d. universal rules exist and can be applied to every situation

Virtual teams are teams that a. are incomplete and need to be dissolved b. communicate only through face-to-face meetings c. primarily focus on technology-based projects d. work in different physical locations

d. work in different physical locations

Example of micropreneurs

dog-walking services, painters, and special-occasion cake bakers

example of monopolistic competition

dutch and starbucks

Digital Millennium Copyright Act (DMCA)

e-businesses have to comply with laws only where the companies are based

Studies show that participation in an incubation program increases the success rate of a start-up company by as much as___________ percent. a. 50 b. 60 c. 70 d. 80 e. 90

e. 90

Jim and Rhonda are owners of a local car detailing service. Jim runs the day to day operations in the​ business, while Rhonda primarily provided capital when the business started. What type of partnership do they​ have? a. A general partnership b. A restricted partnership c. An​ investor-centric partnership d. A full partnership e. A limited partnership

e. A limited partnership

Kyle has just accepted a job as an accountant for a large firm. He is deaf, so his employer is expected to accommodate Kyle's needs with some modified telephone equipment. These reasonable accommodations are legislated under the ________. a. Age Discrimination in Employment Act b. Fair Labor Standards Act c. Discrimination Act of 1999 d. Civil Rights Act of 1964 e. Americans with Disabilities Act

e. Americans with Disabilities Act

Which type of organization best describes a structure in which management is tasked with being accountable to​ employees? a. A​ not-for-profit organization b. A horizontal organization c. A governmental organization d. A vertical organization e. An inverted organization

e. An inverted organization

Which of the following steps would be LEAST likely to improve the culture of ethical and responsible conduct in a business? a. The mission statement can be posted throughout the workplace b. Companies can employ ongoing ethics training programs designed to boost the awareness of their employees about ethic issues c. Managers can set clear examples for the standards of behavior expected d. Orientation programs can be offered to inform new employees of ethical standards in place and conduct expected of them e. Calendars with the mission statement of the company can be printed and distributed to all the company's clients at holiday time

e. Calendars with the mission statement of the company can be printed and distributed to all the company's clients at holiday time

Chris orders a salad at a restaurant. What is the BEST definition of what he is buying? a. Chris is buying a service b. Chris is buying a service, but not a good c. Chris is buying neither a good or service d. Chris is buying a good e. Chris is buying both a good and a service

e. Chris is buying both a good and a service

Karel relishes the feeling of being able to master a new skill in the​ workplace, and he enjoys the attention and recognition that he gets as a result. According to​ Maslow's hierarchy of​ needs, which level of needs is Karel​ satisfying? a. Physiological b. ​Self-actualization c. Safety d. Psychological e. Esteem

e. Esteem

According to the theory of comparative advantage, if the U.S and Mexico increase their trade with each other, the two countries will experience_____________________ standards of living. a. Identical b. Rapidly decreasing c. Slightly lower d. No change in e. Higher

e. Higher

Which of the following statements about unlimited liability for the debts of a business is​ true? a. In a limited​ partnership, all partners have unlimited liability for the debts of the​ business, regardless of who incurred the debt. b. A sole proprietor is responsible for paying the debts of the business only to the extent of the​ business's assets. c. In a general​ partnership, each general partner has unlimited liability for the debts of the business only if that GP incurred the debt. d. A sole​ proprietor's home and personal assets are exempt from liability for the debts of a business. e. In a general​ partnership, each general partner has unlimited liability for the debts of the​ business, regardless of who incurred the debt.

e. In a general​ partnership, each general partner has unlimited liability for the debts of the​ business, regardless of who incurred the debt.

Which of the following statements is TRUE of a not-for-profit organization? a. It cannot operate like a business b. It pursues profits for its owner c. It does not pay expenses d. It rewards the proprietor of the organization with earned profits e. It can earn excess revenue

e. It can earn excess revenue

Hans and Franz are going to open a gym. They plan to use their own funds and jointly own and manage the gym. Their friend Arnold is also investing money in the​ start-up of the​ business, but he will not be involved in the​ day-to-day operations of the gym. What is the simplest form of business ownership they could​ use? a. Sole proprietorship b. S corporation c. General partnership d. C corporation e. Limited partnership

e. Limited partnership

________ reflect the personality of a company. a. SWOT analysis b. Strategic plans c. Balance sheets d. Sales figures e. Mission statements

e. Mission statements

Paolo is part of a group that hires the​ corporation's management​ team, helps set the​ corporation's policies, and authorizes the issuance of stock. What is most likely​ Paolo's role in the​ firm? a. Paolo is a middle manager. b. Paolo is a consultant. c. Paolo is a line manager. d. Paolo is the CFO. e. Paolo is on the​ company's Board of Directors.

e. Paolo is on the​ company's Board of Directors.

__________ involves tricking a person into entering sensitive personal or financial information into a form on a website or in an email, typically by convincing the person that she is dealing with a site she normally interacts with, such as her bank. a. Spam b. Spyware c. Electronic monitoring d. Adware e. Phishing

e. Phishing

An example of globalization of _______________ is Toyota opening a factory in Kentucky. a. Markets b. Promotion c. Retailing d. Selling e. Production

e. Production

Which of the following types of ownership is limited to 100 owners? a. sole proprietor b. C corporation c. general partnership d. limited liability company e. S corporation

e. S corporation

Which of the following statements about S corporations is MOST accurate? a. S corporations have unlimited liability b. S corporations can have an unlimited number of owners c. S corporation are easier to set up than sole proprietorships and partnerships d. S corporations must have fewer than 5 employees e. S corporations enable owners to avoid the problem of double taxation

e. S corporations enable owners to avoid the problem of double taxation

Brian's company is in the midst of a series of​ layoffs, and he worries constantly whether his job will be cut next. According to​ Maslow's hierarchy of​ needs, which level of needs does this most accurately​ reflect? a. Belonging needs b. Esteem needs c. ​Self-actualization needs d. Physiological needs e. Safety needs

e. Safety needs

The quality initiative that is statistically based, proactive, long-term and designed to look at the overall business process to prevent problems is called_______________. a. Pareto chart b. Total Quality Management c. the Control Cycle d. Performance Measurement e. Six Sigma

e. Six Sigma

Which of the following is the BEST example of how technology supports ethical conduct in hospitals? a. Technology makes it easier to monitor the conversation of patients and visitors b. Technology ensures that the correct prescriptions are prescribed to patients c. Technology eliminates the possibility of human error in most interactions between patients and staff d. Technology quickly recognizes mistakes in data entry, preventing unfortunate errors e. Technology allows employees to report their mistakes without risking disciplinary action

e. Technology allows employees to report their mistakes without risking disciplinary action

How do companies conduct a social audit? a. They submit their corporate social responsibility portfolios to third-party companies that rate and rank them against other companies b. They file reports to their stockholders and investors about proposed corporate social responsibility activities related to social work and environmental conservation c. They partner with charitable organizations that interact with the local community and employee relations on their behalf d. They use Twitter to raise money for various charitable foundations and worthy causes e. They conduct an internal systematic examination that measures and monitors the progress of the company in meetings its corporate social responsibility goals.

e. They conduct an internal systematic examination that measures and monitors the progress of the company in meetings its corporate social responsibility goals.

All of the following are true about managers​ EXCEPT: a. They work with people to accomplish an​ organization's goals. b. They help employees set and reach goals. c. Managers perform four primary functions long dash—​planning, ​organizing, leading, and controlling. d. They control employees and resources within an organization. e. They only manage large businesses or organizations

e. They only manage large businesses or organizations

Which of the following statements about strategic goals is​ true? a. They are vague in terms of a time frame to attain. b. They are very specific and detailed. c. They are the same as objectives. d. They generally are established for a time frame of less than 1 year. e. They reflect​ long-term accomplishments an organization wants to achieve

e. They reflect​ long-term accomplishments an organization wants to achieve

It's important for partners to spell out the details of their partnership arrangements in writing because__________. a. putting the agreement in writing will limit the liability of each partner to a specified level b. doing so will make it easier to convert the business to a corporation at a later date c. the partnership is not a legally recognized business until the arrangement is in writing d. the law requires these arrangements to be filed with state and federal authorities e. a written agreement will help reduce misunderstandings and disagreements among the partners

e. a written agreement will help reduce misunderstandings and disagreements among the partners

Sheila's door is always​ open, and what she values most is harmony in the workplace. She excels at empathizing with her workers and maintaining a high morale within her group. Sheila would best be described as​ a(n) _______ leader. a. democratic b. autocratic c. dictatorial d. visionary e. affiliative

e. affiliative

Oscar works in pharmaceutical sales. His base compensation is fairly low, but it is enhanced with compensation directly tied to his sale results. The incentive-based payments Oscar receives are called_________. a. bonuses b. defined contribution plans c. wages d. salaries e. commissions

e. commissions

Lower-level managers must use interpersonal skills for a variety of reasons in the workplace; however, they do not need to ____________. a. motivate employees b. train workers c. build morale d. support workers in their daily tasks e. communicate with investors

e. communicate with investors

Martin was named "Employee of the Month" for his outstanding customer service. according to Maslow, this award may help satisfy Martins ______ needs. a. physiological b. belonging c. self-actualization d. safety e. esteem

e. esteem

Conditions that could negatively affect a company's competitive capability are called____________. a. extreme circumstances b. tactical nightmares c. internal weaknesses d. unforeseen obstacles e. external threats

e. external threats

When Ford Motor Company formed management groups around areas of specific production, it was using a(n)___________organization structure. a. pyramid b. inverted c. tall d. vertical e. flat

e. flat

Keeping up with technology is________. a. vital professionally, but not personally b. not worth the expense involved c. only relevant if you consider yourself to be tech-savvy d. impossible, since it is changing so rapidly e. important for individuals as well as businesses

e. important for individuals as well as businesses

Profits allow a company to ________. a. lower employee wages b. lowers standards of living for the entire society c. disregard concern about expenses d. reduce its span of operations e. increase productivity

e. increase productivity

Which of the following is NOT a reason that diversity in the workplace has increased? a. advancements in technology throughout the world b. increased number of women entering the workforce c. increased offshoring of work to other countries d. increased number of employees immigrating from other countries e. increased laws mandating hiring of employees of different ethnicities

e. increased laws mandating hiring of employees of different ethnicities

Value-based recruiting and hiring ________. a. results in a workforce that is more dedicated but does not perform well b. is a scientific approach to hiring only those employees that will add the greatest value to the company's bottom line c. is an unethical technique used when companies are trying to improve their image d. has fallen out of favor as firms have become more committed to CSR e. involves attracting and employing people who match the company's corporate values

e. involves attracting and employing people who match the company's corporate values

Ethnocentrism _____________. a. is an inadvertent violation of etiquette b. refers to what is considered beautiful or in good taste c. involves understanding, appreciating, and being sensitive to foreign cultures d. is the complex set of values behaviors, lifestyles, and beliefs of a population e. is a belief that one's own culture is superior to all other cultures

e. is a belief that one's own culture is superior to all other cultures

Mae's Country Kitchen sells out of her cinnamon rolls every morning before 8:30 a.m., and her later customers ask her to make more. The next day, Mae makes an additional two dozen cinnamon rolls and raises the price of an individual cinnamon roll by 50¢. She sells all but one of them. Mae has found the ________ price of her cinnamon rolls. a. demand b. determinant c. surplus d. supply e. market

e. market

A new school of psychology, established by Dr. Martin Seligman of the University of Pennsylvania, addresses the causes of happiness instead of looking into treatments for mental dysfunctions. This area of psychology is called ________. a. evaluative therapy b. moral relativism c. situational ethics d. the happiness factor e. positive psychology

e. positive psychology

A planned economy is one in which ________. a. the production and pricing of goods and services is determined through the operation of a market b. the government distributes some goods and services through selected social programs, and individual income determines purchasing decisions for other goods and services c. individual income ultimately controls purchasing decisions d. individuals and businesses determine the production methods, with a focus on efficiency and productivity e. the government or other centralized group determines wages, sets prices, and distributes resources and products to the common group

e. the government or other centralized group determines wages, sets prices, and distributes resources and products to the common group

​Kip, Pedro, and Rico are all employed by the same company but are in different geographical locations while working together on a project. They are part of a​ __________. a. product team b. physical team c. customer service team d. task force e. virtual team

e. virtual team

phishing

email pretending to be from a bank or trusted source in order to steal your personal information.

On-the-job training

employees learn different skills through the process of performing them

For-profit businesses

entities that offer products to their customers to earn a profit

Home-based

entrepreneurs run their businesses out of their homes

Maintenance, repair, and operating (MRO) products

facilitate production and operations but do not become a part of the finished product

Management Information Systems (MIS)

focuses on applying IT to solve business and economic problems

Corporate (institutional) advertising

focuses on creating a positive image toward a government, an organization, or an entire industry

Action learning

focuses on solving real problems and actual work projects

The future demand for employees is determined in a process called...

forecasting

Employee stock ownership plans

form of defined contribution plan that allow employees to own part of the company without purchasing stock

Congress of Industrial Organizations(CIO)

formed in 1935 to represent entire industries

example of perfect competition

fruits and veggies

General partners

full owners of the business, are responsible for all the day-to-day business decisions, and remain liable for all the debts and obligations of the business

Employee empowerment

giving employees responsibility and authority to make decisions regarding all aspects of product development or customer service

Substitute Goods

goods that can be used in place of other goods

devalue

government decreases its currency

sovereign wealth funds (SWFs)

government investment funds that exists in the year of a trade surplus and investing it

Subsidies

government payments to domestic producers to help them remain competitive against foreign competitors

Securities and Engagement Commission (SEC)

governs the securities industry to ensure that all investors are treated fairly and have the same access to information about companies

Specialized professional services

help support a firm's operations

moral relativism

holds that there is no universal moral truth but only people's individual beliefs, perspectives, and values

behavior

how your relationships reflect your character and beliefs

beliefs

important beliefs you hold and use to make decisions in your life

boycott

in which supporters refuse to buy or handle the company's products or services

small business

independently owned and operated, is not a dominant force in its fields, usually has fewer than 500 employees and has an annual revenue of less than $7 million

Producer price index (PPI)

indicator that tracks the average change in prices from the seller's perspective

international joint venture

involve an international business teaming up with a local partner in order to enter a foreign market

limited partners

involved as investors and are personally liable only up to the amount of their investment in the business and must not actively participate in any decisions of the business

Shareholders have no...

involvement with the direct management of the corporation

Labor

is the human resource that refers to any physical or intellectual work people contribute to a business's production

The intent of dumping...

is to dominate an industry and then control it

Visionary

leaders that are able to inspire others, believe in their own vision, and move people toward a shared dream

fixed exchange rates can be...

manipulated or fixed by governments

Behavioral segmentation

market segmentation based on certain consumer behavior characteristics

Niche marketing

marketing a product to a very narrowly defined set of potential customers

Procurement exchanges

marketplaces where companies can buy and sell goods or services at lower prices

strong dollar

means that the U.S. dollar exchanges for a relatively large amount of foreign currency

weak dollar

means the U.S. dollar exchanges for relatively small amount of foreign currency

productivity

measurement of the quantity of goods and services that human and physical resources can produce in a given period of time

Liability of a limited-liability company (LLC)

members are not personally liable for debts of the LLC

monopoly

occurs when a provider of a service or a good has control of all or nearly all of its market

seasonal unemployment

occurs when a worker gets laid off during the off-season (snow/beach industries)

Peak

occurs when an economic expansion is at its most robust point

Employment agencies

often specialize in specific sectors and provide a screened pool of candidates

Reverse mentoring

older employees often executives are trained by younger ones on how to use technology and on new trends in the market place

Entrepreneurs

people who assume the risk of creating, organizing, and operating a business and direct all the business resources

partners

people who offer the company strengths that the new owner does not possess in turn of share in profits and liabilities

Management development programs

prepare management trainees to become managers within the organization

Americans with Disabilities Act

prohibits discrimination based on disabilities, requires employers to make reasonable accommodations to the known disability of a qualified applicant/employee

Herzberg's Two-Factor Theory

proposed that work satisfaction and dissatisfaction arise from two different factors, hygiene factors and motivators

Simulation training

provides realistic job training in an environment away from the work environment

Click and mortar

refers to B2C businesses that have both an online presence and brick-and-mortar stores

dumping

refers to selling a product at a price below the price charged in the producing country; it is illegal and difficult to prove

Enterprise social networking

refers to the application of products like Facebook in a corporate setting

Aesthetics

refers to what is considered beautiful or in good taste

Example of Judeo-Christian ethics

respecting property and relationships, respecting one's parents, and being kind to others

Management of a partnership

roles specified in partnership agreement; partners generally have equal voice

Decision-making skills

skills in defining problems and selecting the best courses of action

Example of small businesses helping bigger companies

small automotive companies build parts that big companies need

Australia has the least...

small businesses

The U.S has the most...

small businesses

Online analysis package (OLAP)

software application that enables very quick analysis of combinations of different business factors, used for reporting sales, budgeting, and forecasting figures

tactical plans

specifically determine the resources and the actions required to implement particular aspects of a strategic plan

operational plan

specifies of carrying out tactical plans are spelled out

Micropreneurs

start their own business but are satisfied with keeping the business small, have no desire of growing large or hiring hundreds/thousands of employees

Infant industry argument

states that an undeveloped domestic industry needs time to grow and develop in order to acquire a comparative advantage in the global economy

National security argument

states that certain industries critical to national security should be protected from foreign competition

Theory of Comparative Advantage

states that specialization and trade between countries benefit all who are involved

leading indicators

statistics that can be used to help predict how the economy will do in the near future

Expectancy Theory (Vrooms)

suggests an individual's motivation can be described by 3 psychological forces, Motivation = Expectancy * Instrumentality * Valence

Theory Y (McGregor)

suggests that people are naturally motivated and will direct themselves to work for the aims of the organization

prices are based off of

supply and demand

Example of place utility

swimsuit being stocked and displayed at a department store

frictional unemployment

temporary unemployment that results when workers move between jobs, careers, and locations

franchiser

the company that sells a franchise

privatization

the conversion of government-owned production and services to privately owned, profit-seeking enterprises (most communist and socialist government converts to free-market through privatization)

If a company is manufacturing in another country the GDP counts for...

the country its being manufactored in

Consumer preferences

the demand for products can change quickly

Information technology

the design and implementation

Ethics represents...

the guidelines you use to make decisions every day

Total Quality Management (TQM)

the philosophy that everyone in the organization is concerned about quality, throughout all of the firm's activities, to better serve customer needs

Cloud computing

the practice of using a network of remote servers hosted on the Internet to store, manage, and process data, rather than a local server or a personal computer.

Product Differentiation

the process of distinguishing a product or service from others, to make it more attractive to a particular target market

exchange rates

the rates at which currencies are converted into another currency

Larger companies acquire smaller companies for...

their innovativeness

dirty industries

those that have a high risk of pollution, danger to workers, or toxic damage of the environment

Lower-level managers communicate with

those who perform the tasks of the organization

Federal Equal Employment Opportunity

to ensure equality of opportunity by vigorously enforcing federal legislation prohibiting discrimination in employment

Bootstrap financing

when entrepreneurs start a business with little capital; includes personal savings, borrowing from friends and family, trading with vendors or clients

actively disengaged

work in a disruptive manner, are unhappy with the company, combat the efforts of engaged workers

not engaged

work with minimal effort, are indifferent to the company, make little or no contribution to the company

engaged

work with passion, feel connected and obligated to the company, add to the success of the company

The current supply of employees is determined by developing a....

workforce profile

code of conduct

written code of ethics/a statement of their commitment to certain ethical practices

partnership agreement

written document to formalize the relationships among business partners

law of supply

amount supplied will increase as price increases, if price lowers less of the product will be supplied

Product line

A group of similar products marketed to one general market

Generic Brand

A product that has no brand at all

Specialty store

A retail store that carries a wide selection of products in one category

Department store

A retail store that carries a wide variety of products organized by departments

Order getter (aka creative selling)

A salesperson who increases a company's sales by selling to new customers and by increasing sales to existing customers

Example of individual brand

Airpods, iPad, iPod

Example of procurement exchanges

Alibaba.com (site similar to eBay) has a B2B section on their website, it was launched to help Chinese manufacturers sell products to oversea business buyers

Products of Customer Relationship Era

Amazon, Ritz Hotels

Example of online intermediaries

Amazon.com

Brand licensing

An agreement between the owner of a brand and another company who pay royalty for the use of the brand in association with a new product

Specialist

Dedicated and self-starting

Example of damage control

ExxonMobil still suffers from the Exxon Valdez oil spill accident that occurred more than two decades ago

A company with a vertical organization cannot use an inverted organization. True or False

False

A local pizza joint increased its prices, so now you buy pizza elsewhere. Pizza is therefore an inelastic good. True or False

False

A mission statement details the plans of how a company will achieve profitability True or False

False

A social intrapreneur is someone who provides funding for those in Third World countries who want to begin their own businesses but have no capital with which to do so. True or False

False

Autocratic leaders cannot manage large companies effectively True or False

False

Business managers do not need to be aware of the decisions of collective businesses outside their own industry. True or False

False

Trade and investment barriers

Government restrictions that prevent the flow of goods, services, and financial capital across national boundaries

Example of find a new market

Home Depot and Lowe's do-it-yourself training

Example of secondary data

Internal corporate information, trade associations, commercial sources, government data, magazines, newspapers, social media, internet databases, and search engines

duopoly

Only two suppliers exist in an industry or have dominant control

Benefits to autocratic leadership style

Soothes fear by giving clear direction in an emergency

SMARTER stands for

Specific Measurable Acceptable Realistic Timely Extending Rewarding

Example of brokering sites

TD Ameritrade

Taxation of a limited-liability company (LLC)

Taxes as a partnership, although it can elect to be taxed as a corporation

Departure of partners

The partnership agreement should have rules for a partner's exit, this is to prevent the business from liquidation

A significant disadvantage of forming a corporation is the amount of paperwork and reporting it requires True or False

True

A small, privately owned company can be structured as a corporation True or False

True

Globalization poses risks to the U.S. economy because of security and patent protection concerns True or False

True

In effect, ethics are the guidelines you use to make daily decisions. True or False

True

Intrinsic motivators come from a sense of purpose and value in the work employees are doing True or False

True

Population changes are a key determinant of demand for goods and services. True or False

True

Example of a strong dollar

U.S. dollar -> Belize dollar

Example of a weak dollar

U.S. dollar -> Pesos

Example of social media monitoring

UberUV and Brandwatch

amoral behavior

When a person has no sense of right and wrong and no interest in the moral consequences of his or her actions

licensing

an agreement in which the licensor's intangible property (intellectual property) may be sold or made available to a license in exchange for a royalty fee

SWOT Analysis

an analysis of the strengths, weaknesses, opportunities, and threats a company is facing

Example of price expectations

an anticipated lowering of interest rates may indicate a future increase in new housing contracts

Limited partnership...

are limited to their investment

Traci and Rashan have equal liability in their small machine repair shop and share equally in the profits of the business. What type of partnership do they​ have? a. A limited liability partnership b. A general partnership c. An​ asset-reduced partnership d. A limited partnership e. A cooperative partnership

b. A general partnership

Rob is a stern leader. His favorite saying​ is, "It's my​ way, or the​ highway!" What type of leader does this behavior fit​ best? a. An affiliative leader b. An autocratic leader c. A democratic leader d. A laissez faire leader e. A visionary leader

b. An autocratic leader

Arthur is a truck driver who owns his own business. He has been on the road for several months, and the constant wear and tear on his truck results in the need for several major mechanical repairs. This generates a loss for his business. Which of the following reflects how this will affect Arthur's tax obligation a. Arthur's tax obligation will be increased b. Arthur's tax obligation will be reduced c. Arthur's tax obligation will not change at all d. Arthur will not be required to pay his tax obligation e. Arthur gets an automatic extension on paying his tax obligation

b. Arthur's tax obligation will be reduced

Jacob feels like he must be a​ well-liked member of a group in order to have​ self-worth. Which level of needs in​ Maslow's hierarchy of needs does this best​ reflect? a. Physiological b. Belonging c. Achievement d. ​Self-actualization e. Safety

b. Belonging

Which of the following statements about small business failure is FALSE? a. Business owners may fail if they do not anticipate necessary personal sacrifices b. Business owners may fail if they take excessive time in creating a business plan c. Business owners may fail if they are not prepared to invest their money and time d. Business owners may fail if they are unable to take on multiple responsibilities e. Business owners may fail if they take on too much debt

b. Business owners may fail if they take excessive time in creating a business plan

Which of the following is a determinant of demand? a. Technology changes b. Changes in income levels c. Price of substitute goods d. Price expectations

b. Changes in income levels

The nation of Baa-Baa raises sheep relatively more efficiently than the nation of Snuggle. Snuggle weaves woolen blankets relatively more effectively than Baa-Baa. Baa-Baa decides to specialize in raising sheep, to sell wool to Snuggle, and to buy blankets from Snuggle. Snuggle decides to specialize in blanket weaving, to sell blankets to Baa-Baa, and to buy wool from Baa-Baa. This international trade illustrates____________. a. International b. Comparative c. Absolute d. Artificial Competitive e. Globalization

b. Comparative

In what way does monopolistic competition favor consumers? a. A single seller or provider ensures consistency of product quality and regulated pricing. b. A large number of sellers providing virtually identical products means that no single seller can set the price. c. A limited number of sellers differentiate their products or services by offering better quality items and/or greater incentives to sellers are likely to purchase item. d. A large number of sellers and products increases supply of similar, but not identical, products and services, so to increase demand sellers are likely to reduce prices. e. A small number of sellers compete by differentiating their products from one another.

d. A large number of sellers and products increases supply of similar, but not identical, products and services, so to increase demand sellers are likely to reduce prices.

Small businesses must meet _______ and _________ standards established by the SBA

employee, sales

Example of intrinsic motivators

interests, sense of purpose, and value from work

Socially responsible investing (SRI)

investing only in companies that have met a certain standard of CSR

Advertising is used in the ________ stage to stress product differentiation

maturity

monetary policy

ran by the Federal Reserve System (Fed), it controls the nation's money supply and helps shape the direction of the economy

due diligence

research and analysis of the business to uncover any hidden problems associated with it

In larger companies, officer positions must be...

separate

By agreeing to work for a company, you're saying that...

you agree with its mission and ethics

What are the challenges to national business?

1. Balancing budgets and managing finances 2. Awareness of state laws in many different states 3. Managing longer, more complex supply chains

Challenges of technological changes

1. demands on time and money (capitol) 2. changes to business operations

regional business

Serve a wider area although they do not serve a national or international market

Addison wants her new t-shirt store to be environmentally friendly. With the concept of the green economy in mind, which of the following business initiatives would BEST make her business greener? a. sell t-shirts with environmental slogans b. give a discount to customers who claim to be environmentally conscious c. raise prices to include the cost of a donation to a green nonprofit organization d. mail out paper fliers advertising her business e. install solar panels on her store's roof to provide electricity

e. install solar panels on her store's roof to provide electricity

Financial capitol

refers to money used to facilitate a business enterprise

supply chain

the process by which products, information, and money move between supplier and consumer

What are the benefits of globalization?

1. companies have the opportunity to sell their products around the globe 2. they can lower production costs 3. they can make higher profits

The global nature of businesses increases

1. demand for workers who can communicate with international business partners 2. have up-to-date technological talents 3. can demonstrate excellent communication and creative problem-solving skills 4. posses leadership skills

Which of the following is a current sociocultural trend? a. A decrease in the overall U.S. population b. An increase in the population of Americans ages 30 to 45 years old c. A decrease in the U.S. minority population d. An increase in the population of Americans ages 65 and over

d. An increase in the population of Americans ages 65 and over

The four types of businesses are a. foreign and domestic, large and small b. local, regional, national, and multinational c. private, public, government, and medical d. employee owned, government owned, foreign owned, and bank owned

d. employee owned, government owned, foreign owned, and bank owned

Which of the following BEST describes competition? a. Two or more companies compete with one another to maintain a monopoly b. Two or more companies compete with one another to limit the variety of goods and services c. Two or more companies compete with one another for greater federal, state, and local subsidies d. Two or more companies compete with one another to attract customers and gain an advantage e. Two or more companies compete with one another to influence trade policy

d. Two or more companies compete with one another to attract customers and gain an advantage

Who is legally responsible for protecting the privacy of consumer information that businesses store online? a. Internal Revenue Service b. Social Security Administration c. Internet service providers d. business owners e. consumers

d. business owners

Which of the following are the factors of production? a. Labor, natural resources, capital, entrepreneurs, technology, and intellectual property b. Labor, capital, entrepreneurs, motivations, and good ideas c. Natural resources, entrepreneurs, profits, and creativity d. Labor, profits, natural resources, technology, and motivation

a. Labor, natural resources, capital, entrepreneurs, technology, and intellectual property

The WAWA chain of convivence stores has over 500 locations in five states in the mid-Atlantic region of the United States. WAWA is an example of______. a. a regional business b. a specialty business c. a local business d. a state business e. a national business

a. a regional business

You are managing your own life like a business when you a. consider how your expenses, the social environment, and globalization impact your life b. create an online avatar c. post revealing photos on your Facebook page d. None of the above

a. consider how your expenses, the social environment, and globalization impact your life

A(n)________ is the process by which products, information, and move between supplier and consumer. a. supply chain b. operational flow c. delivery system d. funneling mechanism e. product flow

a. supply chain

Which of the following is NOT a benefit of business competition? a. It may lead to increased customer satisfaction b. It may lead to a limited variety of goods and services c. It may lead to cheaper goods and services d. It may lead to a wider variety of goods and services e. It may lead to higher quality goods and services

b. It may lead to a limited variety of goods and services

Social networking makes it possible for a. companies to better manage their employees b. customers to spread the word about great products c. companies to keep network information secure d. social gatherings to be monitored

b. customers to spread the word about great products

Your life is similar to a small company in that it requires careful planning, precise record keeping, and ___________. a. physical fitness b. an outgoing personality c. openness to change d. a current resume e. a good memory

c. openness to change


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