Business Final Review Questions

(long paragraph) initially employees were not willing to go to EAI management with ethical issues but would instead report them to the press. This is an example of a) whistle blowing b) a social audit c) poor employees d) opportunity emptor e) a narc

a

A list of key personnel as well as possible successors within a firm is called a) a replacement chart. b) a skills inventory. c) management inventory. d) a wage survey. e) performance appraisal.

a

A list specifying qualifications necessary for a particular position is called a job a) description b) specification c) analysis d) orientation e) inventory

a

A sense of belonging is a characteristic of which need level? a) Social b) Esteem c) Self-actualization d) Safety e) Physiological

a

A system where the basic economic questions are determined, at least to some degree, though centralized government planning is referred to as a _____________ economy a) command b) capitalistic c) mixed d) laissez faire e) communal

a

Although it lacks sources of timber and oil, Chablis has a plentiful supply of grapes for its many wineries. Which statement about Chablis is true? a) It has a comparative advantage in wine production. b) It has a comparative advantage in timber and oil production. c) It has an absolute advantage in the production of wine. d) It has an absolute advantage in timber and oil production e) It has no comparative or absolute advantages.

a

Olan Okowo recently moved to the United States with many hopes and dreams. However, he realizes that economic freedom includes all of the following except the right to a) guaranteed economic success. b) use owned resources to produce a profit. c) accept or reject any job offered. d) sell a product at the price chosen. e) buy any economic good or service producers sell.

a

Selling and shipping raw materials or products to other nations is called a) exporting b) alien trading. c) importing. d) tariffing. e) deficit trading.

a

The reduction in the workforce that normally * internal recruiting. You have started your report by occurs when employees leave a company is called stating. "The main disadvantage of internal recruiting Is that a) attrition. b) retirement. c) layoff. d) there may be resentment among employees termination. e) reduction

a

The study of the morality of choices made by people is known as a) ethics b) business ethics c) freedom of choice d) moral aptitude e) standard of behavior

a

When a firm's sales revenues are greater than its expenses, the firm has a a) profit b) loss c) positive cash flow d) financial resource e) factor of production

a

___________ resources are the individuals who provide labor for an organization in exchange for wages. a) human b) material c) labor d) financial e) informational

a

____________ is the study of how wealth is created and distributed. a) economics b) business c) marketing d) capitalism e) finance

a

A person who risks his or her time, effort, and money to start and operate a business is called a(n) a) free-market specialist b) entrepreneur c) intrapreneur d) competitor e) profit taker

b

Although all casual clothing ultimately provides the same purpose, companies such as The Gap strive to make their brand seem unique from the many other brands available on the market. The market for casual clothing can best be characterized as a) pure competition b) monopolistic competition c) an oligopoly d) a monopoly e) a natural monopoly

b

An unfavorable balance of trade occurs when a) exports are greater than imports. b) imports are greater than exports. c) the total outflow of money is greater than the total inflow of money. d) the total outflow of money is less than the total inflow of money. e) exports equal imports

b

As a human resources specialist, you were asked to briefly summarize the disadvantages of using internal recruiting. You have started your report by stating "the main disadvantages of internal recruiting is that a) there may be resentment among employees." b) promotion leaves another position to be filled." c) it helps hold on to quality personnel." d) job posting may be required e) it brings in unfamiliar ideas and perspectives

b

Because Saudi Arabia and Australia have ____________ Saudi Arabia can specialize in the production of crude oil and petroleum products, and Australia can specialize in the production of wool. a) a company advantage b) an absolute advantage c) a comparative advantage d) an effective manufacturing system e) very low labor costs

b

Ford Motor Company, Mazda Motor Corporation, and Matsushita Electrical Industrial Company formed a to make heating and cooling units in Japan for Mazda cars beginning in 1988. The new company's heating and cooling units may also be used in Ford's cars. a) A sales branch b) joint venture c) subsidiary d) licensing agreement e) sole proprietorship

b

Paul wanted to know about the skills and experience needed to qualify for a management position with JC Penny. Thus he called and asked the personnel specialist to send him a job a) description b) specification c) analysis d) orientation e) inventory

b

The manager of a successful local restaurant believes his responsibilities are to provide delicious meals and excellent service, provide jobs, comply with laws and the IRS, and earn a respectable profit on the restaurant. These are the manager's only concerns. What concept does this indicate? a) Socialism b) The economic model of social responsibility c) The socioeconomic model of social responsibility d) Consumer protectionism e) A lack of social responsibility

b

The monetary contributions that the owners of IBM pay for shares of the companies stock are _________ resources for IBM a) material b) financial c) informational d) human e) manufacturing

b

The order of difficulty and expense, from most to least, when forming a business organization is as follows: a) corporation, sole proprietorship, partnership. b) corporation, partnership, sole proprietorship. c) partnership, corporation, sole proprietorship. d) partnership, sole proprietorship, partnership e) sole proprietorship, partnership, corporation.

b

The ultimate objective of every firm, such as IBM, Hewlett-Packard, JC Penny, and Cengage Learning, must be to a) sell either to other firms or to customers b) satisfy the needs of its customers c) pay out money to cover the various expenses of doing business d) know that people generally buy a product and store it e) make it impossible to satisfy customers

b

Usually, the human resources department administers a(n) ____ program to introduce new employees to the organization. a) job selection b) orientation c) employee training d) on-the-job training e) job rotation

b

When a firm's expenses are greater than its sales revenue, the firm has a a) profit b) loss c) negative cash flow d) planned economy e) market economy

b

When sales drop each season in the auto industry, General Motors temporarily has too many employees to produce the number of cars sold. In this situation, General Motors most likely would a) hire more workers. b) lay off workers. c) fire as many workers as possible. d) Wallow production workers to relax more on the production line. e) force all of the extra workers to seek early retirement.

b

(long paragraph) The principles that EAI chooses to pride itself on show that the company has a) a moral minority b) cultural diversity c) social responsibility d) caveat emptor e) a social audit

c

A local retailer calls its customers when it receives merchandise that they may be interested in, provides individual service to each customer, provides forms and phone numbers for complaints and comments, and has a 100 percent satisfaction guarantee. Which objective is this business working hard to accomplish? a) making a profit b) achieving low employee turnover c) satisfying the needs of its customers d) increasing the owner's wealth e) keeping up with the current technology

c

A partnership formed to operate for a specific time period or to accomplish a specific purpose is known as a a) conglomerate. b) cooperative. c) joint venture. d) corporation. e) joint merger

c

An employee's attitude toward his or her job, supervisors, and the firm itself is termed a) behavior. b) motivation. c) morale. d) judgment. e) mindset.

c

Glenn owns and operates a large hardware store in Missouri that employs about fifty people. He delegates some of the decision making to two managers, but he remains the only owner. Glenn's business is organized as a a) corporation. b) partnership. c) sole proprietorship. d) limited partnership. e) limited-liability corporation

c

Memories Forever Scrapbooking Company is interested in global expansion but does not want to make a large financial commitment. Therefore, it decides to allow a Japanese company to manufacture and distribute products under the Memories Forever name. This is a(n) agreement. a) exporting b) strategic alliance c) licensing d) countertrade e) bill of lading

c

When Compag and Hewlett-Packard decided to become one company, this was an example of a(n) a) acquisition. b) hostile takeover. c) horizontal merger. d) conglomerate merger. e) joint venture.

c

When General Mills and a few other firms dominate the American cereal market, this is an example of a) pure competition b) monopolistic competition c) oligopoly d) natural monopoly e) monopoly

c

Which of the following is not a level in Maslow's hierarchy of needs? a) Self-actualization b) Safety c) Psychological d) Social e) Esteem

c

Which of the following would least likely be started as a small business? a) Flower shop b) Restaurant c) Electricity company d) Landscaping business e) Furniture repair store

c

A corporation whose stock can be purchased by anyone and is traded in stock markets is known as a(n) a) government-owned corporation b) S-corporation. c) closed corporation. d) open corporation. e) not-for-profit corporation.

d

Debbie is a financial analyst for a health care company in Phoenix. Her husband is transferred to Atlanta, but Debbie's employer allows Debbie to keep her job and work from her new home in Atlanta. Debbie has to travel back to Phoenix for one week every other month to meet in person with company officials. This arrangement is called a) flextime. b) part-time. c) self-managed work. d) telecommuting. e) long-distance empowerment.

d

First Tennessee Bank introduced a new program that allowed employees to determine their own work schedules. This type of program is a) job modification. b) job redesign. c) job sharing. d) flextime. e) telecommuting.

d

For a profit, General Motors corporation produces and sells automobiles that satisfy society's needs. these efforts are referred to as a) entrepreneurial b) agricultural c)economical d) business e) competition

d

If Japan were regarded as the best electronics manufacturer in the world, what would be true? a) Japan would have a comparative advantage in electronics manufacturing. b) Japan would have a positive balance of trade. c) The United States would have a comparative advantage in electronics. d) Japan would have an absolute advantage in electronics production. e) Japan would have a trade deficit with the United States.

d

In providing health insurance for its emplovees, IBM is probably satisfying which level of need? a) Physiological b) Esteem c) Self-realization d) Safety e) Social

d

Lawyers, accountants, and engineers are resources of Microsoft. a) informational b) non-revenue-producing c) material d) human e) financial

d

The Saudi Arabian government does not allow the consumption of alcoholic beverages within its country. The Saudi Arabian government is imposing a(n) a) import quota. b) currency devaluation. c) prohibition. d) embargo. e) dumping restriction.

d

The theory stating that rewarded behavior is likely to be repeated and that punished behavior is less likely to recur is called a) expectancy theory. b) Theory Y. c) equity theory. d) reinforcement theory. e) Theory X

d

Unlimited liability means a) there is no limit on the amount an owner can borrow. b) creditors will absorb any loss from nonpayment of debt. c) the business can borrow money for any type of purchase. d) the owner is responsible for all business debts. e) stockholders can borrow money from the business.

d

Wal-Mart is incorporated in Arkansas, the state of its origins and headquarters. Within Arkansas, Wal-Mart is classified as a(n) corporation a) privately-held b) foreign c) alien d) domestic e) hometown

d

When United Parcel Service (UPS) is looking for crews to fly its giant 747 cargo aircraft, it wants to hire the very best people to whom to entrust its extremely expensive equipment. Therefore, it looks for a) only applicants from internal sources. b) only applicants from external sources c) only pilots laid off from passenger carriers d) many more applicants than there are positions to be filled. e) a very small number of applicants to reduce the time and costs required to examine the complete credentials of a larger number of applicants.

d

When the United States levies a tax on textiles from India, this tax is a type of a) export duty. b) barter. c) import. d) tariff. e) responsibility.

d

You were asked to write a report to management indicating the primary advantage of external recruiting. You chose to focus on external recruiting's ability to as its primary advantage. a) provide strong motivation for current employees b) help retain quality employees c) aid in reducing costs d) bring in new perspectives and varied backgrounds e) aid in motivating employees rather than causing resentment

d

_____________ is a market situation (or industry) in which there are few sellers. a) monopolistic competition b) pure competition c) monopoly d) oligopoly e) a natural monopoly

d

(long paragraph) EAI's creation of its code of conduct demonstrated its application of moral standards to business situations, which is also known as a) moral responsibility b) social consciousness c) social responsibility d) moral consciousness e) business ethics

e

(long paragraph) since the company created its code of conduct, employees have limited ___________, or amount of freedom to perform an unethical act a) time b) responsibility c) moral dilemmas d) unethical options e) opportunity

e

A manager who has the abilities to relate to people, understand their needs, and show compassion has skills. a) personal b) people c) compassionate d) communication e) interpersonal

e

A whistle-blower is a person who a) announces the beginning and end of a work shift. b) praises his or her own accomplishments. c) does public relations work for a company. d) accepts responsibility when a company is in trouble with the government. e) reports illegal or unethical conduct within his or her organization.

e

According to Theory Y by McGregor, managers think people a) are concerned mainly with security. b) must be of led because they have little ambition. c) dislike work and try to avoid it. d) must be coerced, controlled, and threatened. e) have the ability to help accomplish an organization's goals

e

At Victoria's Secret, managerial approval is required whenever an employee makes a purchase at the store using an employee discount. Which factor affecting ethical behavior is Victoria's Secret seeking to control? a) individual b) social c) moral d) circumstantial e) opportunity

e

Atlas Company pays workers $500 for recommendations that result in a hiring. In two years, the company has hired at least forty people through this program. Atlas Company is fulfilling its employment needs by using ____________ as a recruiting source. a) college campuses b) employment agencies c) newspaper ads d) walk-in applicants e) employee referrals

e

Examples of command economies include a) socialism and free enterprise b) capitalism and socialism c) socialism and market economy d) communism and capitalism e) socialism and communism

e

Management can achieve its goals by coordinating what four types of resources? a) Financial, material, organizational, and operational b) Informational, human, controllable, and tangible c) Tangible, intangible, human, and financial d) Human, material, financial, and intangible e) Material, informational, human, and financial

e

Michael Dell is the CEO of Dell, a large computer manufacturer. He started the company himself, building and selling computers during college. Although he does not frequently use these skills now, it is likely that he has good skills. a) conceptual b) interpersonal c) employee d) administrative e) technical

e

Sawyer discovered problems in coordinating the work flow going from her department to marketing To solve the problem, she identified some situations that needed correction and asked employees to submit their suggestions for improvement. After their suggestions were summarized, the employees selected one for implementation. Next, a supervisor was given responsibility and authority to oversee implementation and to keep Sawyer informed. Sawyer's actions exhibit the leadership style a) laissez-faire b) hands-off c) existential d) authoritarian e) democratic

e

Shares of Burger House stock cannot be purchased on any stock exchange or by just any individual. This means that Burger House is a(n) a) alien corporation. b) partnership. c) open corporation. d) family corporation. e) closed corporation.

e

The maker of Hanes pantyhose attempts to set its product apart from the competition. As a result, the company obtained some limited control over the price of its product. Achieving price control in this manner is known as a) advertising b) distributional efficiency c) low-cost production d) niche marketing e) product differentiation

e

The need for self-actualization concerns an employee's desire for a) safety. b) survival. c) a sense of belonging. d) self-worth. • e) becoming the best there is

e

The partner who can lose only what he or she has invested in a business is the a) general partner. b) sole proprietor. c) manager. d) employee. e) limited partner.

e

The person who assumes full co-ownership of a partnership, including unlimited liability, is a a) sole proprietor. b) stockholder. c) shareholder. d) limited partner. e) general partner.

e

The process of attracting qualified job applicants is called a) development. b) orientation. c) selection d) training. e) recruiting

e

The socioeconomic model of social responsibility a) holds that society will benefit most when business is left alone to produce and market profitable products. b) emphasizes that social responsibility is someone else's responsibility c) holds that a firm is legally obligated to act in the economic interests of its stockholders. d) states that managers who concentrate on profit indirectly fulfill their social responsibilities. e) emphasizes profits as well as the effect of business decisions on society.

e

What is probably the most effective way for a company to encourage ethical behavior? a) Hire employees who are ethical and in agreement with the company's views. b) Have ethics training sessions for interested employees. c) Threaten employees with immediate termination for unethical behavior. d)Post signs discouraging sexual harassment and discrimination. e) Develop and enforce a written code of ethics for the organization.

e

What resource tells the managers of a business how effectively other resources are being combined and used? a) technical b) human c) financial d) material e) Informational

e

Which of the following scenarios would best exemplify Adam Smith's view of vest serving the interests of society? a) individuals are selected to fill certain positions within the economy of their nation according to the needs of the nation as a who b) markets are carefully regulated to ensure that all individuals within a nation are treated fairly and charged standardized prices c) a country only has a limited amount of space for college students and uses a type of lottery stem to determine who gets these spaces d) government scarcely exists in this country, and transactions are based on a system of barter, or trading goods, for other goods e) individuals in the country may pursue their own economic gain and self-interest by doing whatever is best for them

e