Business Foundations Final

Freddie's Fenders is seeking a loan from the SBA. If he seeks the average-size SBA-guaranteed business loan he will borrow

$300,000

Telecommuting can be especially beneficial to the disabled, working parents, and employees taking care of elderly or disabled family members and _____ percent of the US workforce are classified as telecommuters.

2.8%

Mary chooses to work only 30 hours a week as an administrative assistant while trying to shield herself from additional responsibilities at work. Mary seems to value what?

more free time

Reba has been hired by Big Blue Company as an analyst. She is to perform regular SWOT evaluations of the firm's strengths, weaknesses, ___, and threats.

opportunities

Barney's Bookstore has more customers seeking a new title released by a popular author than it can fill. This positive problem can be viewed as a(n)

opportunity

Terry's Tires owner, Terry, has no accounting training and has three employees. He will most likely_____ to handle the necessary accounting for his business.

pay a public accountant

During which phase of the business cycle does a business typically introduce new products?

peak

The executives and operations specialists for Aristocrat, Inc., a maker of computer gambling machines, meet and determine the operational plan for the next five years. Five years is Aristocrat's

planning horizon

Andre is a hinge salesman. When Andre gains a new hardware store as a client, he receives a commission on the sales to the store for the next year. These commissions lead Andre to work harder to obtain more new accounts. For Andre, the commissions are

positive reinforcement

Alexander Broich is at the top of the organizational chart for the international division of Cengage, Inc. His job title most likely is

president.

Darrell is trying to determine the base prices and kinds of discounts for the chairs he sells at his furniture store. Darrell is concerned with the ___ element of the marketing mix.

pricing

When Bigger Bagels decides on packaging, names, sizes of orders, ingredients, and whether to use regular or gluten free flour, it is controlling the ___ element of the marketing mix.

product

A ___ is a group of similar products that differ only in relatively minor characteristics.

product line

When Pizza Hut determined that it would add chicken, bread sticks, dipping sauces, and new pizza toppings to its menu,Pizza Hut was determining its

product line

What is the economic term given to the total value of a nation's goods or services that have been adjusted for inflation?

real gross domestic product

Employers will often call individuals and former employers to verify background information on a candidate. The names of these ____ are normally provided to the employer by the applicant.

references

During the 1950s, a Sears, Roebuck & Company manager may recognize that the company was not merely a producer or seller but instead in the business of

satisfying customers' needs

A(n) ___ is a marketplace where member brokers meet to buy and sell securities.

securities exchange

The Nike motto, "Just do it," most closely relates to the ___ level of needs.

self actualization

Terry's Tires made just under $750,000 last year, according to the Small Business Administration. Terry's is a.

small business

The business that represents 99.7 percent of all employers in the United States is a.

small business

Anastasia has started a dry cleaning business but is having difficulties with various aspects of organizing and operating the business. Which of the following organizations would most likely give her the help she needs?

small business institute

Business students at universities can work together to provide management counseling to small businesses in their community. This program is part of the.

small business institute

Mary just started a new job and already feels a strong sense of belonging, which is characteristic of the __ need level.

social

The subjective measure of how prosperous a society or individual is in terms of obtaining want-satisfying services and goods is called

standard of living

Barry's Business Solutions, an international company, has a(n) ____ committee comprised of managers from various departments in charge of evaluating the performance of the staff employees every year.

standing

Magda has progressed through the decision-making process step-by-step and is now in the last stage of the process but still does not feel that the solutions generated are adequate to solve the problems her department experiences. Magda may

start the problem identification process all over again

Green Products is creating products that it believes will make it possible for humans and nature to exist in productive harmony while fulfilling the social, economic, and other requirements of present and future generations. Green Products is attempting to achieve ____ through products it creates.

sustainability

Kenny's, a muffler shop, develops and maintains a marketing mix suitable to meet the specific needs and preferences of car owners who need muffler work done on their vehicles. The car owners who need muffler work done on their vehicles are Kenny's

target market

___ are equal to salary motivation according to the Hawthorne studies.

Human factors

If Maurice, CFO, meets with Luminary, CEO, to discuss the company's budget allocations to departments as a part of planning for next year's projects, what kind of planning are they engaged in?

Strategic planning

Researchers for a drug manufacturer have spent years trying to develop a cure for diabetes; however, while they have made major discoveries, they have not yet found a cure for the disease. This is always a risk with

basic research

Leticia has always wanted to own her own restaurant but has read that restaurants have a very high failure rate. To increase her chances of success she should consider

buying a franchise of a well established restaurant

Consumer buying behavior is affected by the ability to buy, called one's ___, which is largely determined by income.

buying power

On an income statement, the ____ is the remainder or residual value.

cash surplus

The health of a national economy will have an effect on all of the following except

changes in productivity

When a business discovers that its female employees generally make less than its male employees, it should study the ___ of the positions occupied by both genders.

comparable worth

Your business took out a $5 million loan and is required to keep $500,000 on deposit with the lender as a _____ balance.

compensating

Teenagers spend billions of dollars on music downloads and video games. They have the ability, willingness, and authority to purchase these products and have a perceived need to do so. Teenagers are an example of a(n) ___ market.

consumer

___ refers to the purchasing of products for personal or household use, not for business purposes.

consumer buying behavior

___ and ___ are the broad classifications of markets.

consumer; business-to-business

The biggest consumer of American business is:

consumers

In ___ manufacturing, the firm produces the same product(s) over a long period of time.

continuous process

The ___, with the approval of the board of directors, determines the amount of retained earnings in any year.

corporate management

Kenny's Market organizes its customers according to retail, wholesale, and online using the concept of departmentalization by

customer

Which of the following focuses on using information about customers to create marketing strategies that develop and sustain desirable long-term customer relationships?

customer relationship mgmt

____ is the use of information about customers to create marketing strategies that develop and sustain desirable long-term customer relationships.

customer relationship mgmt

Janet has discussed a problem she is having with her AT&T communications services with an AT&T representative via chat. During the last chat, the AT&T rep writes that the company will be sending Janet a brief survey about the services she received so the company can better address customers' needs and concerns and requests that she complete it and return it. Which facet of total quality management (TQM) is being exercised?

customer satisfaction

Downtown Bank has a department to handle loans to individuals and a separate department to handle commercial loans. This bank has departmentalized by

customer.

Jan's business had a hard first year. It experienced all of the following that caused a cash flow problem except

customers who pay early.

Tesla Motors decides to produce a new type of vehicle. It has determined the desired capacity and use of technology. The next step is to

decide whether to build a new plant or refurbish an existing plant

Tesla Motors decides to produce a new type of vehicle. It has determined the desired capacity and use of technology. The next step is to

decide whether to build a new plant or refurbish an existing plant.

Depend® makes Depends® undergarments and has targeted the elderly adult as its market. Depend® has segmented the sale of disposable undergarments on a ___ basis.

demographic

A famous movie star has decided she wants to go into business. She targets making disposable diapers environmentally friendly by producing them of cotton and other natural substances that will break down more rapidly in landfills. She hires a team to convert this idea into an actual product. This process is called

design planning

Jennifer and Raleigh are considering starting a small business and are weighing the pros and cons of doing so. Which of the following would not be a good reason to start a small business?

desire for guaranteed financial return

Howard, an analyst with Big Texas Company, has been asked to estimate how many of the company's oil drilling rigs will sell during the last quarter of the current year based on doubling the current marketing efforts. Howard has asked the company executives what they think the likely sales will be, he has surveyed buyers and sales personnel, developed a time-series analysis, and done correlation analysis. Which of the following most accurately describes what Howard has been asked to do?

develop a sales forecast

Keith is considering changing the structure of his organization to a matrix system because it is more flexible, but he hesitates to do so because a disadvantage of this system is that

employees have to report to more than one supervisor, which can cause confusion about who is in charge of certain situations

Dwight is a(n) ___ manager in charge of both accounting and investments and oversees all of the employees involved with these functions for his company.

financial

Fred's Furniture Importers, a wholesale business, sells furniture to Sarah's Furniture Sales, a retailer. This is an example of a business-to-business market. Business-to-business markets include all of the following except ___ markets.

financial

Which of the following resources includes the funding needed to pay wages, purchase raw materials, and operate a business?

financial

Weyerhaeuser is estimating how much lumber it will sell during the coming calendar year based on a specified level of marketing effort. The method Weyerhaeuser will use to forecast sales includes all of the following except

financial ratios

Obligations to creditors and investors are met using

financial resources

Goods that are awaiting shipment to customers are included in the

finished goods inventory

A wide span of management implies that the height of the organization will be ____, whereas a narrow span of management implies that the height of the organization will be _____.

flat; tall

With the exception of administrative personnel, employees at AJ's Engineering can work any hours they choose as long as they work 40 hours from Monday through Saturday and between 6 a.m. and 10 p.m. This plan is called

flex time

Javier and Jamal work for different companies that have low levels of sociability among employees. The corporate cultures of their companies are most likely

fragmented and mercenary.

Reno decides to purchase and operate a McDonald's restaurant. Reno is a.

franchisee

AQZ, Inc., a new computer services company, has grown rapidly and desires to departmentalize to simplify supervision and facilitate coordination. It will most likely departmentalize by

function

AQZ, Inc., a new computer services company, has grown rapidly and desires to departmentalize to simplify supervision and facilitate coordination. It will most likely departmentalize by

function.

Bill has his own tax preparation and accounting business. He works many hours from January through April but in May takes a month-long vacation and the rest of the year works part-time. What advantage of a small business does Bill enjoy?

independence

Harold has been hired by Big Chief Auto to collect and analyze data on consumer preferences in services provided and the frequency and type of "up-selling" services or items customers purchased. Harold is thus responsible for what general type of resources?

informational

When Facebook, Inc. sold common stock for the first time to whoever wanted to buy it, this ___ generated millions of dollars for the company.

initial public offering

J.C. Penney's uses ____data such as inventory levels, sales figures, and product and marketing costs to make marketing decisions.

internal

Nancy sees a listing on Monster.com for a job she is interested in and wants to know if she is qualified for the position. To find this information she will look at the ___ on Monster.com.

job description

Some of the things considered by management when developing the firm's organizational structure are

job design, departmentalization, delegation, span of management, and chain of command.

Craig would like to employ a motivational technique that involves expanding a worker's assignments to include additional but similar tasks. To do this he should use

job enlargement

Gary's Corp. has undergone an extensive job redesign for all positions within the company. This type of ___ restructuring has been undertaken to create a better worker-job match.

job enrichment

In farming, one employee may plow the field, another may plant the seed, and another may set up the irrigation system. This is an example of

job specialization.

The comparable worth concept would be violated if

jobs requiring about the same level of training and skill receive significantly different pay.

Work performed to produce goods and services is

labor

When Reno purchases the McDonald's she will be expected to supply

labor and capital and will own and operate the outlet

A ____ is one in which people do most of the work.

labor intensive technology

KitchenAid is in the design planning stage for a new appliance. During this stage it needs to determine how many different product variations there will be. This is the same as determining the product

line

What is the oldest and simplest form of organizational structure?

line

HRM specialists and ___ generally share the responsibility for human resources management.

line managers

Frank's Furniture needs short-term loans periodically to cover operating expenses prior to selling new shipments of furniture imported from abroad. To cover its short-term capital needs, it has established a ___, which is a loan approved before the money is actually needed.

line of credit

Ray's Custom Auto Parts Fabricator has old machine lathes that need to be upgraded or it will risk losing much of its business. Ray does not have the money to purchase the lathes so it will most likely need

long-term financing.

Jan's Jujitsu owes money for mats, light fixtures, bulletin boards, and white boards that Jan's will repay to the seller over a five-year period. On Jan's balance sheet these debts will be classified as

long-term liabilities.

Kenny's Muffler Service will pay the mortgage off on its shop over a 20-year period. The majority of this mortgage will be classified on Kenny's balance sheet as a

long-term liability.

What is the term given to the finances of a firm that has expenses in excess of its sales revenues?

loss

Benefits of total quality management (TQM) include

lower operating costs and higher return on sales and on investments

A ___ is a pay raise in which the employee can receive the entire amount of the increase at the beginning of the year.

lump-sum salary increase

Harvey's Construction, a home builder, and Tinker Toys both use lumber as the major input for their conversion process. Although the input is the same for each factory, the ___ of the conversion process varies greatly between the two.

magnitude

hillip likes to use MBO to manage his business. MBO stands for

management by objective

What is the name given to organizations that combine machinery, labor, and raw materials to produce goods?

manufacturing businesses

What are the characteristics of perfect competition?

many buyers and many sellers

Sam's Club stores would most likely be classified as

marketing intermediaries

After a company has developed a new product, it determines its sales price, decides how to distribute the product to customers, and develops a promotional campaign. By undertaking these activities, the company has created a(n)

marketing mix

Phillip is working on his business plan and is working on a section in which he will determine how the business can make the best use of its resources and meet its objectives. He is developing a

marketing strategy

Jeff and John work for competing aerospace companies. In both organizations the employees are quite intense, focused, and determined to win. They both work in companies with a(n) ___ culture.

mercenary

What is the term applied to the efforts of individuals to produce and sell products and services that satisfy societal needs through the Internet?

E-business

The ___ establishes minimum wages and overtime pay rates

Fair Labor Standards Act

When a government influences savings and changes the levels of government spending, this is referred to as

Fiscal policy

____ is a method of training and development in which participants attend courses in a room with lessons taught by either an instructor brought in for the training session or an individual within the company who has special expertise in the subject matter.

Classroom teaching and lectures

Sherry Smith holds focus groups with employees of Smith's Hotels. By doing this she is employing which aspect of total quality management?

Employee participation

___ is teaching employees new jobs, skills, and more effective ways of doing their present job.

Employee training

Herbert has attempted to institute job enrichment programs in his company but they seem to be failing. What must happen first for the programs to benefit the company?

Employees must show interest in taking on other tasks.

____ is the definition of scientific management, which was researched by Frederick W. Taylor.

"The application of scientific principles to the management of work and workers"

Samantha would like to get a small business loan from the SBA. What is the largest guaranteed loan she could be granted?

$2 million

Stuart has $50,000 to start a new business. This is higher than _____, the amount the Census Bureau and Federal Reserve say 50 percent of all new businesses begin with..

$30,000

Tyler's Yard Art turns over inventory 10.0 times a year. Tyler's cost of goods sold is $300,000. What is its average inventory?

$30,000 (Inventory turnover is calculated by dividing the cost of goods sold by the average inventory)

Barry's Backhoe Corporation has issued only common stock. It has 10,000 shares outstanding at $20 per share. In addition, $100,000 of Barry's earnings have been reinvested in the business since it was founded. What is Barry's total owners' equity?

$300,000

The major marketing mix elements include all of the following except

- price - promotion - product - PACKAGING

___ management is another name for human resources management.

Personnel

Ellis owns a Subway franchise. Where is Ellis most likely to go for advice and guidance about running the outlet?

Franchisor

Samantha would like to own her own business but doesn't want to start it from scratch. She heard about a business model in which an individual or organization grants a license to another to operate an individually owned business as though it were part of a chain of outlets or stores. The party granting the license is the

Franchisor

Who was president of the United States during the Great Depression?

Franklin D Roosevelt

_____ is the total dollar amount of all goods and services sold during the accounting period.

Gross sales

Jerry and Dave are friends at work and play golf together on Saturdays. Marilyn is Katherine's supervisor at work and while they may eat lunch together from time to time, it is understood that Katherine is answerable to Marilyn for her work performance. Jerry and Dave's relationship is part of the company's

Informational organization

The competition among businesses to sell their goods or services to potential customers

Is referred to as rivalry

In farming, one employee may plow the field, another may plant the seed, and another may set up the irrigation system. This is an example of

Job specialization

___ is the separation of all organizational activities into distinct tasks and the assignment of different tasks to different people.

Job specialization

When an employer asks employees to participate in satisfaction surveys, communication programs, exit interviews, and fair treatment interviews, what part of the human resources management process is being utilized?

Maintaining human resources

Which of the four lists below best represent the types of resources management can coordinate to achieve its goals?

Material, informational, human, and financial

The Federal Reserve's actions to set interest rates and the size of the money supply in the nation is called

Monetary policy

Which of the following would be considered capital or capital goods?

Money

Tilly has discovered a way to make solar panels thin enough to easily see through and capable of being formed into any shape needed. She has decided to open a business forming solar panels into vehicle and building windows and is exploring a means to make them durable enough to be formed into hoods for vehicles. What factors of production will she use to make and develop the solar panels?

Natural resources, labor, capital, and entrepreneurship

A plan developed to implement tactical plans is known as a(n) ___.

Operational plan

Felicity is the manager of a department in the company where she is employed that is responsible for converting resources into goods and services. Felicity is a(n) ___ manager.

Operations

Sam is doing a crossword puzzle and must find a word synonymous with authority. He should choose

Power

___ for a barbecue manufacturing company would include the wood used for racks and handles, metal for the barbecue, wheels, nuts, and bolts.

Raw materials inventory

What is the economic term given to the total value of a nation's goods or services that have been adjusted for inflation?

Real GDP

___ provides the greatest part of ZXC Corporation's financing.

Sales revenue

SCORE is the acronym for

Service Corps of Retired Executives

____ are the portion of a corporation's profit not distributed to stockholders.

Retained earnings

The owner of John's Tire Store is attempting to understand how effectively the firm is transforming sales into profits. To do this, which of the following ratios should he use?

Return on sales.

According to economists, factors of production would not include which of the following:

Revenues

An entrepreneur is a person who

Risks his or her time, effort, and money to start and operate a business

In the United States, ___ account(s) for 97.7 percent of all identified exporters and produce(s) 33 percent of export value.

Small businesses

Elizabeth lives in a country where individuals may own their own property. Some of the very wealthy people own oil refineries and have stock in computer companies but the government owns the railroads, airports, ports, and roads in addition to the utility companies, communications companies, banking, and steel production facilities. What kind of economy best characterizes this nation?

Socialist

As the demand for Walkman CD players declined, what happened to the price of Walkman CD players?

The price decreased

Ulla is a farmer who farms in California's Central Valley where water usage is being restricted due to prolonged drought. She sells sugar beets to buyers throughout the United States. Ulla would like to know how the price at which she sells her sugar beets is determined in an economy with perfect competition.

The price is determined by combining the actions of all buyers and all sellers together.

Becky wants to form a business in the easiest way possible. What form of business should she use?

Sole proprietorship

The decision-making process requires all of the following steps except

Solving the identified problem

Increasing the ease of training new employees is one of the benefits of job

Specialization

Separating the manufacturing process into distinct tasks and assigning each task to an individual or unit is called

Specialization

____ is the division of organizational activities into individual tasks and assigning them to different people.

Specialization

Magda has progressed through the decision-making process step-by-step and is now in the last stage of the process but still does not feel that the solutions generated are adequate to solve the problems her department experiences. Magda may

Start the problem identification process all over again.

___ provide equity capital for a corporation.

Stockholders

ABC Business Solutions is an HR contracting firm that provides a variety of services to customers including employee training, assistance with downsizing, assistance with hiring to promote diversity, and training of managers to avoid common human relations legal problems. When it is helping small companies develop their human resource management, what activity is it involved in?

Training

A(n) ___ is the broadest set of plans developed as a guide for major policy setting and decision making.

Strategic plan

Darrel's Donuts has been operating quite successfully for two years. Darrel is considering expanding the business by franchising. Which of the following is not an advantage of a franchise?

Success will cause another outlet to be opened nearby.

Mitzie is the chief executive officer of RST Development Company which employs 500 individuals. Mitzie is in the ___ management of the company.

Support

Green Products is creating products that it believes will make it possible for humans and nature to exist in productive harmony while fulfilling the social, economic, and other requirements of present and future generations. Green Products is attempting to achieve ____ through products it creates.

Sustainability

If Bank of America, Wells Fargo, Union Bank, and USA Bank joined together to make an extremely large loan, this association would be referred to as a(n)

Syndicate

Jon is a welder at a Chevron storage facility. To accomplish his job, he must use specific skills known as ___ skills.

Technical

Ted is opening his own stationery store. In order to open the business, he will need to purchase display cases, wall display units, a cash register, bags, and inventory. He will also need people to work in the business stocking the supplies, delivering handmade cards to customers and stores, accountants to keep track of the income and costs, and a computer with software to track how effectively he is pricing his product and to track inventory. Which of the following best describes the resources used by Ted's stationery store?

Ted will be using material resources, human resources, financial resources, and information resources.

Hank is paid $11 per hour as a busboy but also pays for medical and dental coverage, a 401K retirement plan, and a week of paid vacation. Terrance is a busboy at a different restaurant. He is paid $12 per hour without medical or dental coverage, paid vacation, or a 401K. Terrance brags that he makes more money than Hank because he is paid more money per hour. Which of the following is true?

The benefits Hank receives from his company, in addition to his wages, very likely total more per hour than Terrance earns.

Which of the following are included in economic freedom?

The right to own resources to produce a profit

Fannie and Mae decide to form a partnership after discussing it for a few days. They have determined that a partnership has all of the following advantages except

Unlimited liability

____ is short-term financing not backed by collateral.

Unsecured financing

T'Xion is seeking his first full-time job and would like to work in a field that will help him develop his skills, improve in his profession, challenge him and will be something he will really enjoy doing. He is considering several methods for finding the job that best suits his needs but is not quite sure what steps to take to find a job. Which of the following would be good steps to take to find a job that will meet T'Xion's needs?

Use online networking and social media sites to locate job openings and help prospective employers find him.

Ford, Chevrolet, and Dodge, are among the top U.S. auto manufacturers and sellers. Because the production of vehicles requires a sizeable investment, it is difficult to enter this market and the sellers are quite large. Which of the following best describes the market or industry in which these companies operate?

These businesses operate in an oligopoly

A manager with 1,000 subordinates would have a

Wide span of control

Generally _____ require(s) some equity capital to start.

a business, regardless of its legal form,

GM is a very large company, therefore, like most large organizations it most likely uses

a combination of departmentalization bases.

The Small Business Administration offers many courses to individuals interested in going into business or improving his or her business. The most popular SBA course is

a course that surveys eight to ten areas of business management

The definition of deflation is

a general decrease in the level of prices

Economists describe inflation as

a general rise in the level of prices

PayBank, a start-up online payment system for handling online purchase transactions, may want to consider locating its facility in Silicon Valley because

a highly skilled labor force with technology experience will be available

Godfrey is manager of a computer repair store where he is required to have a great deal of interaction between himself and his workers because new problems arise frequently. He is most likely to have

a narrow span of control.

Tito's Tamarinds Restaurant had a total of $320,000 in expenses and $295,000 in revenues. Tito's had

a net loss of $25,000 for the year.

Allen has a garment jobbing business. He pays his employees based on the number of pieces they complete in an hour. Allen is using

a piece-rate system

A business seeking a loan through the Small Business Administration will actually be given a loan through

a private lender

Harry Hill works for Underhill Funeral Services. He travels to nearby colleges, interviewing interested students for hiring after graduation and selecting those who will be invited to an office visit. While performing these activities he is in the ___ phase of the HRM process.

acquiring human resources

Magic Music Stores Inc. wants to know what sheet music it should order for the coming year. It forms a short-term committee to investigate. This committee is called a(n) ___ committee.

ad hoc

The matrix structure has many advantages, but the most obvious one is

added flexibility.

Public relations is a(n) ___ type job that does not fit directly into the chain of command.

advisory

When a line manager in an organization encounters issues and turns to a staff member with specialized expertise, the manager gives that individual ___ authority.

advisory

Independence and a desire to determine one's own destiny are some of the entrepreneurs' personal factors in small-business success, others include:

age and family background

The global environment can be described as

an increase of competition from firms in other nations

A business grapevine is

an informal communications network.

New online teachers at Exciting U attend classes about expectations for online instructors, regular and effective contacts, and how to create a course. This is called

an orientation process.

When Chevron Oil refines crude oil it is using a(n) ___ process.

analytical

Ludwick is starting a steak and potato restaurant. He spent many hours sitting in various steakhouses making notes about which cuts of beef are ordered the most, which sell-out first, which side dishes are ordered the most, and what prices are charged for each product at the different restaurants. He already knows what his break-even point will be and is now trying to determine how he will promote his shop and whether he will rely on word-of-mouth and walk-in customers, or if he should actively market his restaurant. Which of the following best describes Ludwick's activities?

determining his marketing mix

___ are research activities undertaken to put new or existing knowledge to use in producing goods and services.

development and implementation

The ___ approach is used by car manufacturers to choose their target market.

differentiated

To manage an organization effectively, and to stay informed, it is very important that managers understand how to use and maximize the potential of.

digital communication devices

Pick the correct phrase from the following that best characterizes the relationship between franchisors and franchisees.

disagreements between the two parties have increased and contract disputes are causing many lawsuits

McGregor's Theory X submits that managers assume employees

dislike work and need to be controlled.

When Carolina's nail salon and day spa start bringing in income, her income less all additional personal taxes would be called her

disposable income

Brenda has a small grocery store in a residential neighborhood where she primarily sells staples to the people who live in the area. Which of the following best describes the industry she operates in?

distribution

The earnings of a corporation that are distributed to the stockholders are called

dividends

When a business receives unsecured financing this means that it was not required to provide ____ to the lender.

collateral

A short-term promissory note with no collateral that is issued by a large corporation is known as

commercial paper.

Theresa is an outside sales person for Cengage Learning. She is paid a salary and a ___ which is a percentage of sales revenue.

commission

___ advanced the concepts of Theory X and Theory Y.

douglas mcgregor

You stop by a Carl's Jr. fast food restaurant and notice that they also have Green Burrito Mexican food. This is an example o.

dual branded franchise

People are motivated by ___ according to the equity theory.

eceiving a reward commensurate with their performance,

An economic downturn or upturn and the effects of other economic conditions on consumers' ability and willingness to buy are called ___ forces.

economic

Doug and Grover are friends at work and frequently voluntarily participate in activities outside of work with their work group. When Grover's wife was ill, the members of the work group babysat, brought the family food, and made sure they were taken care of but did not neglect their work in the office and still sought to meet or exceed company goals. Doug and Grover work in a ___ culture organization.

communal

Charlene is a manager of a department store. A large part of her day is spent conversing and e-mailing others, therefore, she uses ___ skills frequently during her day.

communication

Which of the following is a feature of laissez-faire capitalism?

competition

All but ___ are included in the different resources available to all managers.

competitors

Marion uses a computer program called a ___ to help develop products for his employer.

computer aid design (CAD)

Toyota uses ___ to design products and control the machinery needed to produce the finished product.

computer aided manufacturing (CAM)

A ___ computer system may be used to help design clothing and to control the machinery needed to produce the finished product.

computer integrated manufacturing (CIM)

A manager with ___ skills can see the big picture of how the various functions within the organization interact..

conceptual

Thomas likes to think in abstract terms and look ahead to how all of the pieces of his company fit together and what they can accomplish. Thomas has ___ skills.

conceptual

What management trait category would the ability of a manager to think in abstract terms while envisioning the big picture fall into?

conceptual skills

Fry Bread Inc. is planning a large summer party in Window Rock, Arizona, where sudden summer rainstorms are frequent. The individuals planning the party intend to have all activities held outside in a park utilizing the open-to-the sky park tables for the food. What type of planning is apparently lacking?

contingency

A manager tasked with ensuring that a company reaches set goals by monitoring progress and taking corrective actions to adjust for deficiencies is exercising the ___ function of management.

controlling

What is the name given to the study of how wealth is created and distributed?

economics

Sylvia has an SBA-guaranteed business loan for the average life of such loans. How many years will she have to repay the loan?

eight

___ is a situation in which employees own the company they work for by virtue of being stockholders.

employee ownership

A firm should have ___ to have good cash flow.

enough money coming into the firm to cover the expenses in that period

Leading audit firms must be changed ____ for public corporations.

every five years

Tito is reviewing the statement of cash flows for his business. This statement will provide him with all of the following information except

expenses during a particular accounting period.

Mary Lou is manager of a department and is having difficulty getting her subordinates to perform the tasks she assigns to them in the manner she wants them performed. Normally, she just posts a list of the required tasks on the break-room bulletin board with the name of the person assigned the task next to it without explanation of why it needs done or how to do it. Mary Lou could best improve delegation by

explaining the purpose of each task.

All products go through a product life cycle. With the increase in digital storage, Harry's Office Furniture has found that file cabinets are nearing the end of their product life cycle. To maintain its market share, the firm must at least find ways to

extend or refine the want-satisfying capabilities of its products.

Terry's Trykes, a growing three-wheel motorcycle business, is interested in attracting managers who can contribute new perspectives to the managerial process. Terry's should focus its management search on

external recruiting.

Franchisors benefit from the franchise agreement because they have.

fast and selective distribution of products

When the U.S. government spends more than it receives within a fiscal year, this is called the

federal deficit

What kind of resource is used when owners of Facebook exchange money for shares of the company's stock?

financial

Business cycle is defined as:

fluctuations in a national economy

Janna owns a nail salon where cosmetologists provide manicures and pedicures to clients. When considering the conversion process, the human resources employed by Janna are the ___ for her salon.

focus

Production and operations managers normally focus on ____ utility.

form

Give a Heart Company, a maker of mechanical heart valves, has its own bowling league formed by employees with teams drawn from different departments within the company. It also has ad hoc committees and task forces to accomplish the goals of the company. The ad hoc committees and task forces are ___ groups, whereas the bowling teams are ___groups within the organization.

formal; informal

Ellis owns a Subway franchise. Where is Ellis most likely to go for advice and guidance about running the outlet?

franchisor

In Adam Smith's view, which of the following is the role of government in business?

furnishing public works

When giving financing advice, an advisor would most likely tell a client seeking a loan that the first step would be to

get to know the potential lenders before requesting debt financing.

As a class assignment, business students were told to prepare a business plan for a business they would like to own. Which of the following is something that would not be included in the plan?

government regulations

Small businesses have an advantage over large businesses in all of the following areas except

greater potential for making a profit

To compare the productivity of Vietnam to India, one should examine their respective:

gross domestic products

Leticia would like to start a business and has investigated starting her own or buying a franchise. Which of the following is an advantage to purchasing a franchise?.

guidance from the franchisor

Richard has a motorcycle and ATV store. His customers often talk about trikes. Richard orders some Harley-Davidson Trikes for his inventory. His actions are possible because small businesses.

have the ability to quickly adapt to change

Which of the following is a characteristic of a depression?

high unemployment

Google managers operated on Theory Y because the workers are

highly motivated

Which of the following is an organization's most important resource?

human

Google, Zappos, and other tech companies strive to keep their employees happy and satisfied as a means of ensuring they will perform better. This philosophy, borne of the Hawthorne studies, gave rise to the __ movement.

human relations

Adele is tasked with managing TUV Corporation's human resource program including hiring new personnel and processing new hires' paperwork and separation paperwork for those departing the company. Adele is a ___ manager..

human resources

Calvin, a human resource manager at Very Large Corporation, tracks information on evolving technologies, industry staffing practices, projected economic trends, their company's future business ventures, and projected expansions or contractions of product lines to estimate ___.

human resources demand

Barry's Backhoe Corporation's account has prepared a(n) ___ for the company. It is a summary of the firm's revenues and expenses during a specified accounting period, such as a year.

income statement

For U.S. government entities such as the federal government, states, and municipalities to provide services, they collect revenue from

individuals and businesses in the form of taxes

Barack has been attending a seminar to be a more effective leader. He has learned that leadership is best defined as the ability to.

influence others

Taylor is not in top management in her company but is well-liked, charismatic, and outgoing. When top management hands down new policies, other employees look to Taylor to determine how they should react. Taylor has ___ leadership in the company.

informal

Jerry and Dave are friends at work and play golf together on Saturdays. Marilyn is Katherine's supervisor at work and while they may eat lunch together from time to time, it is understood that Katherine is answerable to Marilyn for her work performance. Jerry and Dave's relationship is part of the company's

informal organization.

Microsoft sells its software to colleges and universities, K-12 schools, hospitals, charitable organizations, and foundations. This market is called a(n) ___ market.

institutional

Managers who are effective in dealing with people both inside and outside of their organization are known to have excellent ____ skills.

interpersonal

One of the key skill sets of successful managers is the ability to deal effectively with other people, both inside and outside an organizations. These ___ skills allow the manager to relate to people and understand their needs and motives.

interpersonal

Gerald is the hiring manager for RTY Corp. He will utilize the most widely used selection technique for job applicants which is the

interview.

Large companies often have internal web pages, called ___ which allow employees to access internal data and facilitate communication among departments.

intranets

Stocks of completed goods, work in process, and raw materials are included in the company'.

inventories

The competition among businesses to sell their goods or services to potential customers

is referred to as rivalry

Cathy's Comic Warehouse has undertaken a cultural diversity program to encourage comic book fans of all races, ethnicities, and genders to patronize the store. For the program to be successful, it is essential that

it has a strong, sustained commitment from top leadership.

Farmer Fred is hesitant to extend trade credit to Gleason's Market. Gleason's agrees to execute a promissory note instead, which Farmer Fred agrees to because

it is a legally binding and enforceable agreement.

All of the following are true about Vroom's expectancy theory except

it is easy to apply

Which of the following is an advantage to the franchisee?

it is possible to start a business with limited capital

What is the likelihood of a business started today still being in operation in ten years?

it is unlikely because over half of all new small businesses fail

Sarah has opened her own cosmetology business in a small shopping center with a lot of foot traffic. It is most likely that

it may take several years for this business to begin to show a profit

Sarah has opened her own cosmetology business in a small shopping center with a lot of foot traffic. It is most likely that

it may take several years for this business to begin to show a profit.

Walmart collects external marketing data in order to forecast its sales. In doing so, it looks at information about

its customers

The Mondavi Winery marketing information system collects data from internal sources such as

its sales figures

Theodore has reviewed lists from different employers specifying qualifications necessary for the same particular position. These lists are known as

job descriptions

To determine the relative worth of various jobs in a firm, the firm will conduct a

job evaluation.

Fred's business separates the computer repair technicians from the customer service personnel. After repeated returns of computers from customers with complaints, Fred decided to combine the customer service and repair functions to improve customer-technician communications and motivate employees to improve the quality of their service. This motivational technique is called

job redesign

Many companies move employees systematically among departments in the organization to alleviate boredom and to provide employees with a better overall view of company goals and procedures. Intel does this to encourage creativity. Southwest Airlines has a program in which workers do another worker's task (except for flying) for the day to acquaint employees with the contributions made by each individual and department to the overall mission of Southwest Airlines. This practice of systematically moving employees is called

job rotation.

Which of the following is not included in material resources?

labor

Magic Mountain is open during the summer and many weekends during the rest of the year, but closed during the week. When summer ends, Magic Mountain will most likely

lay off workers.

The four basic functions in the management process include planning, organizing, _______, and controlling.

leading and motivating

____ is a concept built on the idea of eliminating waste from all of the activities required to produce a product or service.

lean manufacturing

The Great Depression was characterized by all of the following except

less governmental involvement in business

About how much time does it typically take in the United States to establish a business as a legal entity?

less than a week

Accounts receivable are bought for ___ by a factor and then collected at face value.

less than their face value

Managers need different specific types of information which depend on their area of management and

level within the firm.

Of the following, only ____ would not be a section of the income statement for a business.

liabilities

Terry's Tire Shop has debts. In accounting, debts are known as

liabilities

Westchester Mall has decided to expand the mall square footage. To do so it had to borrow money from a local bank. The debt owed to the banker is a(n)

liability

Jonathan owns savings bonds, a certificate of deposit, stock, and an office building. The ease with which each of these can be converted into cash is referred to as its

liquidity

Textbook Publishing has grouped its sales regions by Northeast Region, Northwest Region, Southeast Region, and Southwest Region, which is departmentalization by

location

Departmentalization is most often based on

location, product, function, and customer

Textbook Publishing has grouped its sales regions by Northeast Region, Northwest Region, Southeast Region, and Southwest Region, which is departmentalization by

location.

Ford Motor Company needs $5 million to build a new plant and $2 million for new equipment for the plant. These needs are both examples of

long-term financing needs.

UPS and FedEx are both in service industries in which the ___ of the conversion process is usually small or none at all.

magnitude

___ refers to the degree to which input resources are physically changed by the conversion process.

magnitude of change

All of the following except ___ is a major approach to performance feedback interviews:

mailing a written copy without any interaction from the supervisor,

In the planning step of marketing research, the researcher

make plans on how to gather needed but missing data

Coordinating finances, materials, people, and other resources of an organization to achieve the organization's goals is a process known as

management

Customers will buy a certain quantity of a designated good at the going price. This is called the

market demand

Wealthy female street motorcycle riders could be considered a(n) ___ for Ducati, a manufacturer of expensive luxury motorcycles.

market segment

The owners of Jay's Bicycle shop are trying to decide what types of bicycles to carry in their shop. They have noted that there are many elderly individuals in their area who would benefit from beach cruisers, there are many road riders who would most likely select high-end street bicycles, and the mountain bike riders should be provided for as there are many dirt roads to ride them on. Jay's owners are in the process of

market segmentation

___ developed the hierarchy of human needs.

maslow

UPS uses airplanes, trucks, and crates in its operations. These are ___ resources for UPS.

material

Which of the four lists below best represent the types of resources management can coordinate to achieve its goals?

material, information, human, financial

The manager of a department store would like to reward his employees as a form of motivation, encouragement, and acknowledgement of their achievements. All of the following are elements of an effective employee rewards system except

maximizing the amount of money spent on employee compensation.

What size organization is best at utilizing a line-and-staff structure?

medium and large

The ____ phase of human resources management includes both training and development.

appraising performance

What percent of American workers are employed in service industries today?

approximately 87

Changing tastes, development of new technologies, recessions, storms, and war are forces that make up the external marketing environment of a firm and

are generally beyond the firm's control

The proper order for information reported on the ____ is assets = liabilities + owners' equity.

balance sheet

____ is the systematic use of reinforcement to encourage desirable organizational behavior.

behavioral modification

The Ritz Carlton markets to wealthy individuals and those who would like to give the appearance of wealth; therefore, the Ritz has segmented its market on a ___ basis.

behavioristic

One of the biggest benefits of external recruiting is its ability to

bring in new perspectives and varied backgrounds.

John is buying copy paper for his printer that he uses in his home-based business. John is a

business buyer

Which of the following products will most likely not require a fixed-position layout?

canoe

The ____ ratio averages about 2.0 for all industries.

current

Marketing can inform potential customers about a product, promote the product, and price it at a point customers would be willing to purchase it, but marketing cannot control

customers' social values

A ____ is a collection of information arranged for easy access and retrieval.

database

Carolina is opening a nail and day spa and would like to know more about her market to select colors, styles, and store location. If she uses information services available online, they would offer her access to which of the following?

databases

A ____ bond is backed only by the reputation of the issuing corporation.

debenture

Techno Inc. operates in a complex and uncertain environment, therefore, it is likely the company will

decentralize the organization.

When a manager develops a set of possible alternative solutions and chooses one alternative from among that set, he or she is involved in the process of.

decision making

Fred is manager of Soft Rock Restaurant. He is called out of the restaurant to attend to restaurant matters at the bank. He tells Baxter, a worker at the restaurant, to oversee the operation while he is away and to be sure workers take their breaks. Fred has ____ duties to Baxter.

delegated

Faraday is a plant manager for Glass Doors, Inc. which places him in the ___ management level of the company.

middle

The ____ of Enterprise Celestial Industries is to seek out and explore new worlds and new civilizations, and boldly go where no man has gone before.

mission

The Federal Reserve's actions to set interest rates and the size of the money supply in the nation is called

monetary policy

A market in which similar but not identical products are available for sale would be known a.

monopolistic competition

____ describes an employee's attitude toward his or her job, supervisors, and the firm itself.

morale

Costco produces bread, soft-serve ice cream, and pizzas, and uses software programs, provides business financial services to customers, and provides vacation travel services. As a result, Costco uses

more than one production process

Godfrey has just graduated from business school and is seeking employment. He is considering applying to small firms because he knows that small businesses have traditionally added _____ new jobs to the economy.

more than their proportional share of

Many companies hold training sessions or provide online in-house training for employees. Employers can use training to do all of the following except

motivate.

According to Herzberg, managers should focus on ___ factors to produce employees who are dedicated for the long-term.

motivation

Understanding the ___ of subordinates is important for a manager in order to encourage effective performance..

motivation

An employer's emphasis on achievement, recognition, responsibility, advancement, and growth would be emphasizing

motivation factors

Gerry has only a few subordinates, therefore, he has a

narrow span of control.

Jack owns a franchise. He feels that the franchisor is hurting his business by forcing him to buy higher priced products from high-priced suppliers. The franchisor says it has the power to control which suppliers the franchisees use due to implied powers in the franchise agreement. Which of the following agencies will most likely arbitrate this dispute?

national franchise mediation program

Whenever Jane, a trainee at QRT Corp., answers the telephone improperly, her supervisor looks at her, raises one of his eyebrows, and frowns slightly. After receiving five of these looks one morning, Jane no longer answered the telephone improperly. Her supervisor was using ___ to eliminate the undesirable activity.

negative reinforcement

Rafael is considering using a virtual organizational structure for his business. Another name for this structure is

network.

If Microsoft issued commercial paper in denominations of $10,000 to raise a large sum of money, the commercial paper would be secured only by Microsoft's reputation; therefore,

no collateral is involved.

Jimmy and Henry are considering opening a smoke shop. They have heard that the disadvantages of small businesses include all of the following except

no opportunity to support your family

Ted's company subscribes to a service that collects information from e-mail, websites, downloadable files, news, databases, and research materials. His company uses___ for market information collection.

online info services

___ of the ideas for new products, refinements, and extensions ever get to the production state.

only a few

If Weber Breads states that it is going to spend $10 million in advertising in the upcoming year to increase its market share by attaining 300 new accounts, it is explaining part of its ___ plan.

operational

A plan developed to implement tactical plans is known as a(n) ___.

operational plan

___ concerns itself with determining the quantity of products or services each facility will produce during a specified period.

operational planning

Barry Moore, a division manager of Barry's Burger Barn, a chain of fast food restaurants, is reviewing the goals for the company's different departments. The marketing department has set a goal to increase sales by 15 percent over the next year but the accounting department has set a goal to reduce costs by 25 percent by seeking cost efficiencies. In compensating for these goals, Barry is engaged in.

optimization

Faraday is responsible for the human resource department and the shipping department which continually set conflicting goals. He must utilize ___ to achieve balance between the departments.

optimization

A(n) ___ is a diagram that represents the positions and relationships within an organization.

organizational chart

The president of UVW Inc. wrote in the company's quarterly report that the company had five layers in its organizational structure. When he wrote this he was writing about the company's

organizational height.

Of the following, which is considered a basic management function necessary to be an effective manager?

organizing

Which of the following is a material resource for Ford Motor Company?

paint

Peter was hired to work six hours a day for five days a week and is able to complete all of his responsibilities within the time allotted. Peter is engaged in

part-time work

Zappos main office has an area where tired employees can go to sleep if needed. Which level of need is sleep most related to?

physicological

Jenny's Glass Shop sells handmade glass objects produced by her employees. She pays the employees a set amount for each piece they produce regardless of the amount of time it takes. She pays them on a

piece-rate system

Daniel grew up on a farm where he raised chickens. When there was an overabundance of eggs, his mother drove him to one of the subdivisions nearby and he sold the eggs door-to-door. Daniel provided ___ utility to his customers.

place

Large non-profit hospitals have a donors' wall where they list donors in categories based on the amount of money they have contributed to the hospital. Each year many of the hospitals hold galas and give plaques and recognition to the donors to encourage them to continue giving. This is an example of

positive reinforcement

James is the manager of an office. In the afternoon, the office workers start playing music which escalates into dancing by quitting time. James realizes that this activity is decreasing productivity and would like it to stop, but has not determined the best way to do so. According to researchers, the most effective form of reinforcement is __ and by ___, the activities can be terminated.

positive; encouraging proper behavior

Chocolate, a dinner at The French Laundry, and an overnight stay at the Ritz Carlton all satisfy human needs. Therefore, each ___

possesses utility (goods + services that satisfy human needs)

A ____ is an accountant who is the employee of the company he or she provides accounting services for.

private accountant

Bill is hired by Mike's Mufflers to help with determining the costs of the firm's muffler services, record transactions, and create financial statements. Bill is a

private accountant

Teri has temporarily brought together knowledgeable employees from different part of the organization to form a team to solve a specific problem. Teri has formed a

problem-solving team

A(n) ____ is used when all products undergo the same operations in the same sequence.

product layout

A large department store is departmentalized by Women's Clothing, Children's Clothing, Men's Clothing, Housewares, Hardware, Home Furnishings, and Electronics. This store is departmentalized by

product.

___ for a barbecue manufacturing company would include the wood used for racks and handles, metal for the barbecue, wheels, nuts, and bolts.

raw materials inventory

At what stage in the business cycle do companies become more focused on value in their production decisions?

recession

Most corporate bonds today are

registered bonds.

At the end of each day, Javier gives his work crews movie tickets, gift coupons for dinner for two at nice restaurants, and other items when they complete a job early and exceed the expectations of the business owners for the quality of work performed. Javier is using ___ behavior.

reinforcement

After an airplane crash killed several US CEOs and politicians, companies began creating ___, which are lists of key personnel as well as possible successors within their firms.

replacement charts

Human resource managers use ___ and ___ to estimate the supply of needed human resources for their organization.

replacement charts; skills inventories

____ are activities intended to identify new ideas and technical advances that may result in new goods and services.

research and development

Ross Stores buy finished products and sell them for a profit to its customers. Ross Stores is part of which type of market?

reseller

Fred and Bernard start a rock quarry business. They each contribute $25,000 of capital to the business. After the first year of operation, the total owners' equity is listed as $70,000. Most likely, the additional $20,000 of owners' equity is

retained earnings.

Which of the following equations represents the relationship between sales and profits?

sales revenue − expenses = profit

Which of the following equations represents the relationship between sales and profits?

sales revenue- expenses= profit

The employee's desire to become the best there is concerns the employee's need for __ fulfillment.

self-actualization

Studies have shown that the incidence of innovation among small-business workers is ___ among workers in larger businesses.

significantly higher than

Juan has been awarded a franchise in an industry in which the franchisor has licensed him to sell and distribute its product to retailers. Juan is most likely a franchisee in the ___ industry.

soft drink

____ is a work slowdown instituted by the employees to achieve a purpose beneficial to them.

soldering

The decision-making process requires all of the following steps except

solving the identified problem

Michael has 12 subordinates reporting directly to him. This is called his

span of control.

A(n) ___ is the broadest set of plans developed as a guide for major policy setting and decision making.

strategic plan

If Maurice, CFO, meets with Luminary, CEO, to discuss the company's budget allocations to departments as a part of planning for next year's projects, what kind of planning are they engaged in?

strategic planning

Which of the following businesses would most likely be included in the production industry?

subassembly plant

High-tech ___ entrepreneurship is exploding.

teen

____ is the name given to working from home all the time or for a portion of the work week.

telecommuting

Boats are most likely segmented according to

the end use of the product

The primary disadvantage of internal recruiting is

the promotion leaves another position to be filled.

Jeff Katz, the founder of Orbitz,Inc., when speaking about new businesses recently said, "A flat checkbook is the mother of invention." He was referring to

the reality that small business workers are more innovative than workers in large businesses

What is the primary disadvantage of owning a franchise experienced by a franchisee?

the franchisor still maintains a great deal of control

Marilyn's Beauty Salon has assets of $107,000, and the owners' equity is $75,000, therefore,

the liabilities are $32,000 (Assets = liabilities + owners' equity.)

All products go through a product life cycle. With the increase in digital storage, Harry's Office Furniture has found that file cabinets are nearing the end of their product life cycle. To maintain its market share, the firm must at least find ways to

to extend or refine the want-satisfying capabilities of its products

What is the purpose of specialization?

to increase worker efficiency

What are government tax dollars used for?

to purchase products and resources needed to provide services

Mitzie is the chief executive officer of RST Development Company which employs 500 individuals. Mitzie is in the ___ management of the company.

top

After undergoing several recalls due to faulty parts being used in vehicles that were responsible for drivers' deaths, Toyota refocused its business and began a coordination of efforts directed at improving customer satisfaction, increasing employee participation in decision making, improving supplier partnerships, and facilitating an organizational atmosphere of continuous quality improvement known as.

total quality management

How many periods of three-month consecutive decline in a country's gross domestic product is considered a recession?

two

A salesman for Sears, Roebuck & Company in the 1920s to 1950s would most likely emphasize the durability and practicality of the clothing the store sold rather than the latest fashions and may

use high-pressure sales techniques to sell more of the company's high production output.

Money invested in small, new, or struggling firms that have the potential to become very successful is called

venture capital

Jeremy has written a business plan for the business he would like to open. He states in the plan, "This business will serve over 400 customers by the end of the year and employ ten full-time employees." Which major question in his business plan does this statement address?

what are the goals for the business?

When consumers change buying patterns from buying compact discs to buying iPods and iPhones, what are they telling resource owners?

what to produce

Apple wants to expand its line of telephones by introducing a new product. In keeping with the marketing concept, it will likely research all of the following except

who their major competitor's most recent buyers are

The majority of small businesses are managed by

the people who start and own them

A manager with 1,000 subordinates would have a

wide span of control

Smyth's Lighting has many completed candelabras, some that have not been started and some that have been partially completed. The partially completed candelabras would be included in Smyth's ___ inventory.

work in progress

Vincent and Swede were lifting a couch to move it into the storage room at the furniture store where they are employed. Vincent injured his back. His medical bills for this injury are covered under

workers' compensation insurance

Hewlett-Packard forms employees into units and permits them to set unit goals and means of attaining them so they will accomplish the overall goals of the company. It also permits the units to determine what personal rewards will be given for reaching the goals. By doing this, Hewlett-Packard is applying

theory y

Equity financing provides two primary benefits for corporations. These benefits are:

there is no obligation to pay dividends or to repay the money obtained from the sale of stock.

Following the economic crisis, the U.S. House of Representatives and Senate proposed all of the following financial reform regulations except

tighten access to long-term financing by large corporations.

Costco sells turkeys from November through December. By doing this, Costco is providing ___ utility.

time

For total quality management (TQM) to be effective

top management must make it the top priority and management must coordinate the specific elements of TQM so they work in harmony with each other.

Which of the following would be included in the gross domestic product of the United States?

total value of Procter and gamble products in Michigan

Terrance Taxi Service creates each new budget based on the dollar amounts budgeted in the preceding year, thus utilizing ___ budgeting.

traditional

Harold, Age 65

type J

Deborah works for Hewlett-Packard, an organization that emphasizes long-term employment, collective decision making, individual responsibility for the outcomes of decisions, and moderately specialized career paths. Hewlett-Packard is most likely a ___ firm.

type Z

Caren works for an American firm that emphasizes short-term employment, individual decision making and responsibility, rapid evaluation and promotion, explicit control, and specialized career paths. Her firm is most likely a ___ firm.

type a

Hot Coffee, a retail coffee bean business, designs a single marketing mix and directs it at the entire market. The company is using the ___ approach.

undifferentiated

Bob and Betty recently opened a bicycle shop. They consider all bicycle riders as their target market. Which targeting strategy did they use in choosing a target market for their store?

undifferentiated approach

Allen has five employees for whom he will provide benefits. A benefit he is required by law to provide is

unemployment insurance.

Harry needs a vehicle to get to work because he lives too far away from the bus stop to take the bus. He finds a small motorcycle that he can ride and that works well. Since the motorcycle satisfies his need it has

utility

Carlos has set up a rewards system using play money and a rewards chart. Employees who reach predetermined goals are issued the money to purchase items on the rewards chart or to accumulate to purchase higher valued rewards such as a week-long all-expense paid trip to Cancun, the Caribbean, or Vancouver, British Columbia. Carlos believes that his employees' motivation is based on how much they want something and on how likely they think they are to get it. He is using

vroom's expectancy theory

MGM Hotel and Casino hires front desk personnel, administrative assistants, store clerks, and cashiers. Whether these positions are all paid the same depends on the nature of the firm's ___ structure.

wage

Evelyn works in the human resources department of a large department store and has been asked to do a job evaluation of the sales clerk position. The company is most likely seeking information for developing a new

wage structure.

The human resources department at CDE Corp. is evaluating the compensation to be offered to new hires in different departments. To ensure that they offer wages comparable to similar positions in other businesses in its industry, they collect data on prevailing wage rates in the industry in their geographical area. The data collection the human resources department is conducting is called a(n)

wage survey.

Gavin is paid a specific amount of money for each hour he works at the coffee shop where he is employed. Gavin is paid a

wage.

Which of the following is not an example of Herzberg's motivation factors?

working conditions

In the workplace, differences among people due to race, ethnicity, and gender is referred to as ___

workplace diversity.

Wesley is reviewing the planning horizon for a current production. The planning horizon will last for about one

year

One of the special focus areas of the SBA is to

assist minorities wanting to start or expand small businesses

Freddie's Ford is facing budget cuts due to decreases in sales across the nation. Freddie needs to reduce the number of employees at his dealership over the next three years. He has decided to stop hiring new employees to fill vacant positions to comply with the budgetary constraints. This approach is called

attrition.

A chain of command distinguishes between positions with direct ____ from those that are support positions.

authority

Clarence is a runner for a sports ticketing business in Las Vegas. His duties normally include picking up sports merchandise from the warehouse and delivering it to the stores in addition to receiving ticket orders and delivering the tickets to customers at the hotels on The Strip. Clarence was given permission by the office manager to sign credit-card receipts when making purchases. Clarence has been given the ___ to use the business credit card.

authority

Fernandez is a buyer for Western Foods. As a member of the food-buying market, Fernandez is a member of a group of individuals and/or organizations that have needs for products in a given category and have the ability, willingness, and ___ to purchase such products.

authority

Melanie was given the responsibility of serving as manager during her boss' absence. To complete the delegation process, she should be given the ___ to carry out this responsibility.

authority

A top-down leadership style in which the top management makes all of the decisions and instructs subordinates about what to do and how to do it is known as ___ leadership.

autocratic

Terry is CEO of Big Business Affiliates. She makes all final decisions, and anything important must be routed through the hierarchy she has established. Terry is a(n) __ leader.

autocratic

Ron and Don are studying for their accounting class exam. They have discovered that another name for the statement of financial position is the

balance sheet.

Teri has been asked by the owner of the accounting office to prepare a "statement of financial position" for a client. Another name for this statement is

balance sheet.

All of the following can provide answers to a variety of questions about a firm's ability to do business and stay in business, its profitability, and its value as an investment except

bank statements.

A ___ is a written order for a bank to pay a third party a stated amount of money on a specific date.

banker's acceptance

John traded five acres on the top of a mountain for two acres next to a lake with lake rights. This is an example of

barter

In the book One Red Paperclip, the author Kyle MacDonald trades his way from one red paperclip to a house in a series of fourteen exchanges. What is the economic term given to this kind of exchange?

bartering

A group of bio-chemists and biologists study the unique features of Mono Lake every year to discover new knowledge and make scientific advances. They are funded by a government grant and are not required to consider the potential use of this knowledge. These scientists are conducting

basic research

Studies have shown that when people from different cultures, educational backgrounds, and work experiences come together to work on a project, the company benefits from

better problem solving.

Employment tests may include all of the following except

blood tests to determine ancestry.

Jeremy notices that sales in his department have declined and brings together his sales staff, marketing staff members, and product development department staff members to participate in a round-table discussion to generate as many new ideas as possible for solutions to the declining sales without criticizing or ridiculing the ideas of others. Jeremy is using.

brainstorming

Marilyn is creating a ____, which is a statement that projects income and/or expenditures over a specified future period.

budget

___ and consider a product's quality, its price, and the service provided by suppliers.

business buyers are generally better informed than consumers

A(n) ____ is a carefully constructed plan for an individual starting a business.

business plan

Sheryl's law firm buys office products which are used by the firm. This is a type of ___ market.

business-to-business

When a cabinet-making shop purchases lumber to make cabinets, it is engaged in which function of marketing?

buying

Betsy's Bakery can produce 500 loaves of bread, 1,000 pastries, and wait on 500 customers in eight hours. This is an assessment of Betsy's Bakery's

capacity

The number of customers RJs Restaurant can serve at one time is the restaurant's

capacity

When managers at M & M are in the process of operational planning, they must compare market demand with

capacity

In order to operate a successful small business, the entrepreneur should be most concerned with

capital and management skills

Gregory, a finance manager for XCV Corporation, uses a _____ to estimate major expenditures for assets, expansion of facilities, and mergers and acquisitions.

capital budget

A business that is characterized by high initial costs to enter and low operating costs is termed

capital intensive

A steel recycling business in which scrap steel is melted down and formed into rebar with machines and equipment doing

capital intensive technology

The _____ is a financial statement that provides information about a firm's operating, investing, and financial activities during an accounting period.

cash flow statement

The normal reference to profit and loss for a business on its income statement is ___ and ___.

cash surplus; cash deficit

Billy Sports Investments needs to make risky decisions on a daily basis. Because of this, its managers are likely to

centralize decision making.

Macy Black has been working in an air conditioning repair company for about a month. This morning she noticed that they only had one of their most popular selling filters remaining. She is unsure of whom to report to for approval to order more because she is unclear about the

chain of command.

The line of authority that extends from the highest to the lowest levels of the organization is the

chain of command.

The ___ normally elect the board of directors of a corporation.

common stockholders

The College of Southern Nevada faculty pay scale is based on teaching experience and degrees earned. In addition to pay, it has a benefits package that includes medical insurance, dental insurance, life insurance, and retirement benefits. The policies and strategies used to create the employment compensation package comprise a

compensation system.

Marion uses a computer program called a ___ to help develop products for his employer.

computer-aided manufacturing (CAM)

When a locally owned coffee shop heard that Starbucks may be coming to town, it developed a(n) _______ to establish alternative courses of action they could take if their competitive landscape changed.

contingency plan

Smith's Foods collects internal and external data for its marketing information system

continually

All of the following are components of total quality management (TQM) except.

continuous monitoring of bottom line

The primary functions of a manager are:

controlling, organizing, planning, leading

Harlan's Used Autos prides itself on its efficiency and value in delivering vehicles that have had full mechanical reviews by trained mechanics before the vehicles are sold and a detailed list of known defects that have not been corrected provided to each customer. These characteristics can best be defined as Harlan's.

core competencies

Gary wants to form a business that has very little government regulation. He has investigated different forms of business and determined that he will avoid forming a ____ because it is the most heavily regulated by the government.

corporation

Inventory turnover is calculated by dividing the _____ by the average inventory.

cost of goods sold

Philomena works at Very Large, Inc., an international conglomerate with offices in ten different countries. Recently the company had a problem with a new computer chip it had developed. The company outlined the problem in a post in the company's on-line newsletter where employees could read about it and volunteer to join the team to solve it. The manager of computer chip department read through the names and qualifications of the volunteers then formed a team. The team was comprised of individuals from throughout the world and, once formed, took over the management role by assigning tasks from within, doing progress assessments and employee critiques. Teams of this nature are formed only to solve individual problems and once the problem is solved they are disbanded. Which of the following would not be a label you would give to this team?

cross fucntional

John works for accounting, Nancy works for legal, Marianne works in marketing, and David works in the technology development department of a large technology firm. They have been brought together to determine the best way to market and sell the company's new product. These individuals are part of a ___ team.

cross-functional

Malinda, a sales representative; Thomas, an engineer; Andrew, an accountant; and Betsy, a human resource specialist, are placed in a group to devise new uses and marketing schemes for one of the company's existing products. Malinda is on a

cross-functional team.

Jeremy owes $2,000 to his attorney and $500 to his accountant. He will pay off both of these debts, which on a balance sheet are classified as _____, in a year or less.

current liabilities

Managers balance ___ and product requirements when deciding on a product line.

customer preferences

An office supply business is organized by Home/Personal Use, Small Business, Large Business, and Large Institutions. Within each of these divisions, it is organized by finance, marketing, and human resources. The office supply company is organized by ___ then by ___.

customer; function

FriedoMac Inc. has a very centralized organization. This means that

decision making rests with a few top-level managers.

What is the focus of the study of microeconomics?

decisions made by the individual

One of the six steps of marketing research is

define the problem

The degree of ___ will determine the degree of centralization of an organization.

delegation of authority

Geraldine manages a branch of a large corporation. When she notices a problem, she outlines it, identifies situations that need corrected, and then sends an e-mail to employees in that department asking for suggestions about how to correct the problem. When all of the suggestions have been received, Geraldine summarizes them, and presents them to the employees to choose one to implement. Geraldine uses a ___ form of leadership.

democratic

Grouping tasks into manageable working units is

departmentalization.

On Terry's Tire Shop books, the cost of the car lifts, which are fixed assets, will be spread over their useful life which is called

depreciation

A famous movie star has decided she wants to go into business. She targets making disposable diapers environmentally friendly by producing them from cotton and other natural substances that will break down more rapidly in landfills. She hires a team to convert this idea into an actual product. This process is called

design planning

The original personal computers were designed for offices and came in black and grey. As personal computers and laptops proliferate, computer companies have given more thought to what they should look like, where and how they will be produced, and what options they will have. Supplying answers to these questions is part of

design planning

___ is the development of a plan for converting a product idea into an actual product.

design planning

Amelia has identified a problem in the department she manages and has generated alternatives to correct the problem. Next she will

determine the best alternative

While on vacation in France, Christa ate some bread that she liked so well she decided that when she returned home she would start a bakery where she would also sell coffee and have a sitting area for customers. She is not quite sure what to do to begin her business and comes to you for advice. Following the advice of Joe Dudley, you recommend that she

determine what she wants, why she wants it, and write it down

The management of Kohl's is discussing the number and locations of warehouses it will need to build and operate in its new expansion area. The management is concerned about addressing the ___ element of the marketing mix.

distribution

Characteristics of a small business would include all of the following except

dominant in its field

John's Café may use long-term financing for all of the following reasons except

eliminating immediate cash-flow problems.

Starbucks hires many part-time employees but provides benefits for employees who have been with the company for a pre-determined length of time. Arianna was hired as a barista. She did not understand all of the initial hiring documents she received when she started working, but when she received her tax documents at the end of the year, she noticed that she had been given stock options which would permit her to buy the company stock at a reduced rate. Which of the following motivational techniques is the company using?

employee ownership

Sherry Smith holds focus groups with employees of Smith's Hotels. By doing this she is employing which aspect of total quality management?

employee participation

An example of ___ would be an employer asking its employees to complete satisfaction surveys that management uses to improve employee job satisfaction.

employee relations

Cherise has started a new dry cleaning business that utilizes online services for notifying customers that their orders are ready for pick up. Which of the following would least likely be considered a threat to the company?

employees

Keith is considering changing the structure of his organization to a matrix system because it is more flexible, but he hesitates to do so because a disadvantage of this system is that

employees have to report to more than one supervisor, which can cause confusion about who is in charge of certain situations.

The Hawthorne studies concluded that

employees' motivation to work is influenced by human factors.

Giving employees greater involvement in their jobs and the organization's operations by permitting employees to have greater involvement in decision making is known as

empowerment

For management to put in place an effective reward system they must

enable employees to satisfy basic needs.

At Google, teams of workers make their own job assignments, create cross-functional teams, plan their work, and control their material and inventory needs. This is an example of job

enrichment

Jesse is in charge of ordering all of the materials to be used in Jesse & Mike's Bicycle Builders. The objective of purchasing is to.

ensure that require materials are available when they are needed in proper amounts and at a minimum cost

Carrie is the director of personnel for the technology development department for a large company. She wants to institute an MBO system nationwide. She should begin by

ensuring that top management endorses and participates in MBO.

Piccard looks into the future of his company and implements initiatives to accomplish the goals he envisions. Piccard is a(n) ___ leader..

entrepreneurial

What is the term for the price at which the quantity demanded equals the quantity produced?

equilibrium

Bonnie and Bret decide to start a new bagel breakfast business. They each contribute $20,000 to get the business started. This money is considered

equity capital.

An instructor who provides a rubric for grading all assignments and provides detailed instructions for what will be required to obtain extra credit would be using

equity theory

The first step in creating a financial plan is to

establish a set of valid goals and objectives.

Maria is the finance manager of SDF Corporation and tasked with establishing the company's financial plan. The steps to effective financial planning are

establishing organizational goals and objectives, budgeting for financial needs, and identifying sources of financing.

The fire department gives awards once a year to employees who devise new ways to make the department work more efficiently and capable of responding to calls more rapidly. When employees receive awards the ___ need is filled.

esteem

Sarah is reading about ways to extend and refine a product. The purpose of product extension and refinement is to

extend the product life cycle

By selling accounts receivable to a ___, a company receives cash and shifts the task of collection and the risk of nonpayment to the other company.

factor

Fred has established a ___ business in which he buys accounts receivable at a discount and then collects the full dollar amount due, thus profiting on the difference between the face value of the accounts receivable and the amount he has paid for them.

factor

A business that receives short-term financing via ___ normally incurs the highest loan costs.

factoring

Samuel Slater's contributions to the development of American business included, among other things, the use of

factory system

Mona's business does just one thing, does it the same way every time, and does it well. Mona can have a wide span of control because

few new problems are expected to arise.

A Las Vegas company removes rock from a quarry and crushes it to make gravel, its only product. The gravel company has

few production processes

The ___ resources of Mondavi Winery include revenues and loans from banks.

financial

_____ resources include revenue from the sale of products and loans from financial institutions.

financial

Weiders C.P.A. develops statements and reports for the shareholders, financial analysts, and bankers of HJK Inc. These services can be classified as

financial accounting.

An employee whose responsibility is to oversee all the activities concerned with obtaining money and using it effectively is a(n)

financial manager.

A ____ is developed by a finance manager to determine the company's financial needs and how to obtain the necessary financing to implement its goals and objectives.

financial plan

A ____ shows a relationship between two elements of a company's financial statements.

financial ratio

Matilda would like to open an ice cream and sweet treats store but she will need a loan to do so. She is concerned she may not be given a loan and researches the subject, discovering that in 2013, the SBA data showed that women-owned businesses are

financially sound and credit worthy

Matilda would like to open an ice cream and sweet treats store but she will need a loan to do so. She is concerned she may not be given a loan and researches the subject, discovering that in 2017, the SBA data showed that women-owned businesses are

financially sound and credit-worthy

When a Nissan dealer purchases vehicles from the Nissan manufacturer, the manufacturer finances the sale. Retail stores receive financing from their wholesalers and manufacturers. What marketing function do such activities perform?

financing

New airplanes are completed and parked on the tarmac awaiting delivery to customers. Because of this, they are classified a.

finished goods

Goods that are awaiting shipment to customers are included in the

finished-goods inventory

When an employer needs to reduce the workforce, the workforce reduction he would most likely save as a last resort is

firing

A fast-food manager for a chain operation is an example of a(n) ___ manager.

first line

When a government influences savings and changes the levels of government spending, this is referred to as

fiscal policy

When a nation reduces income taxes for individuals so they will have more income to spend as a means of stimulating the economy, the nation is exercising its

fiscal policy

The equipment racks built into the walls, the car lifts, and the outside business sign that will be used by the business for more than a year are considered ___ for Terry's Tire Shop.

fixed assets

A(n) ____ layout is used when a very large product that is hard to move is produced.

fixed position

What type of layout is most likely used in the Boeing factory where the space shuttle was built?

fixed position

A(n) ____ layout is used when a very large product that is hard to move is produced.

fixed-position

Maple syrup production companies focus on the syrup extracted from maple trees which is then refined and converted into the syrup used in homes. The emphasis on the raw material resources that are used implies that they are the ___ of the conversion process.

focus

In order to compare financial data in their annual reports, most corporations include important elements of their financial statements

for recent years.

On the Saturday before Mother's Day, Becky goes to the local farmer's market and buys flowers for her mother, her best friend's mother, and her favorite aunt. Which of the following types of utility is not created by this activity?

form

The utility created by converting production inputs into finished products is called ___ utility.

form

Mary's Models is a successful model airplane store. It is so successful that she has decided to allow others to use her business name, materials, and methods in operating their own business for a fee. Henry approaches her about operating his own business under the terms above. What is the name of the business agreement Henry would sign?

franchise agreement

Craig has $60,000 to invest in a new small business. He wants the business to succeed. He has read about the success rates of franchises and the success rates of start-up businesses. Which of the following statements most accurately describes the success rate of franchises?

franchises have a very high success rate compared to other small businesses

Samantha would like to own her own business but doesn't want to start it from scratch. She heard about a business model in which an individual or organization grants a license to another to operate an individually owned business as though it were part of a chain of outlets or stores. The party granting the license is the

franchisor

The most common form of franchising today is one in whic.

franchisor supplies brand names, techniques, or other services instead of a complete product

Timothy is the operations manager at Aristocrat, Inc. In his position he will need management information in all of the following areas except

future capitalization needs.

Jeremy, an employee of an advertising and marketing firm, is working on a new campaign for one of the firm's clients. He must choose between several potential ad pieces. To choose the best piece, he should

gather information from coworkers and consumers on their reaction to the different ad pieces.

Clarence provides overall guidance and leadership for the company where he is employed. He does not provide any specialized function. What type of manager is he?

general

Tom Taxin, C.P.A., is auditing the books of a business. Audits are performed to ensure that financial statements have been prepared according to

generally accepted accounting principles.

Derrek Dugan has become the president of DBD Enterprises. He sets up meetings with groups of employees to get their opinions about steps needed to turn around the company's declining sales. This part of the decision-making process is an example of

generating alternatives

The U.S. Navy uses a technique called "Blast! Then Refine" during which stage of the managerial decision-making process?

generating alternatives

Ernest's Emergency Supplies markets its emergency supplies in areas along the gulf coast of Florida where hurricanes and tropical storms have been known to cause devastation, rather than in Orlando, where hurricanes and tropical storms are unlikely. This is an example of ___ segmentation

geographic

If the CEO of Becky's Bicycles states that she wants to have 50 percent of the bicycle rental business in Sonoma County by 2020, she has state.

goal

Tony is sales manager for his region. He meets with each of his agents every quarter to review sales, set strategies for the coming quarter, and establish expected accomplishments for the coming year. These actions rely on

goal-setting theory

William, a manager for a large company, overheard employees gossiping about him during lunch. He immediately sent e-mails to all employees with newly enacted rules against rumors, gossip, and discussions about the company's financial situation, management, and other company matters. William is

going to fail in his attempt to eliminate the company grapevine.

A potential franchisor is concerned that the franchisees will destroy the reputation of the company and end up hurting his business. Which of the following could he use to protect his interests?.

he can ensure that the new stores are operated according to his own standards through the franchise agreement

Steven's Sporting Goods started as a small shop catering to hunters and the fly-fishing crowd, but as demand for other products were made, he branched out into other outdoor-sports. Steven's philosophy is that the store should cater to its core customer base, but stock the latest outdoor gear for those who want participate in other sports. His store is limited in space, so he has had to carefully consider what other products he will carry. He carries gear that would be required for wading in cold mountain rivers and streams, canoes, and kayaks, but no other water sports equipment. His marketing is directed toward hunters and fishermen, but includes activities, events, and sales directed to other outdoor enthusiasts. Over the past month, he has received numerous requests for rock climbing gear. As a result of these requests, Steven has entered into negotiations with three providers of high-quality rock climbing shoes and gear. What do Steven's activities show about his marketing for Steven's Sporting Goods?

he has a marketing concept and is acting on it

Daniel is employed by National Computing, Inc., a large business-to-business firm. Because the business has grown exponentially in a short amount of time, Daniel's manager has given him the task of developing a program that will continually collect data from a business' internal sources. The data will include sales figures, product and marketing costs, inventory levels, and activities of the sales force. He is also to include external data from and about suppliers, intermediaries, and customers. He has been informed that the program will be used by his firm and will be sold to clients to make marketing decisions. Which of the following best describes the purpose of Daniel's program?

he is developing a program for a marketing info system

____ developed the motivation-hygiene theory.

herzberg

A businessperson in the early 1980s would have been faced with which of the following problems?

high inflation with high interest rates

Liz is an employee of Friendly Ford. She will be paid a wage which is a specific amount of money paid per

hour.

Brent and Wendy plan to open a new business. They meet with a business planner who helps them compile a business plan. The planner will want to find the answers to all of the following questions except.

how often the business will have sales?

Programmers, engineers, designers, lawyers, and accountants are Google's ______ resources.

human

Ramon has been hired to keep the books, write correspondences, answer phones, and pay the bills for a small company. Ramon provides a(n) ___ resource for the firm.

human

Starbucks requires potential employees to complete an online job application before they go to the store in person to be interviewed. Employment applications are used for two purposes: to familiarize interviewers with the applicants' backgrounds and to

identify applicants who are worthy of further scrutiny.

Rocky has a managerial decision to make. The first step he will take is

identifying an opportunity

Dorothy is the manager of a department within her company. During her annual employee review she notices that Tim and Allen are less productive since they began working next to each other. What stage of the managerial decision-making process is Dorothy in?

identifying the problem or opportunity

Makenzie, manager of a car plant in Ohio, has received word through the grapevine that employees believe the plant is closing. Makenzie should

immediately take action to correct the inaccurate grapevine information to minimize damage.

Sheri had her income taxes prepared by a tax preparation service provider. After that she went to the store and bought a case of canned goods, a computer, and a lawnmower. The services she received were consumed ___ whereas the goods can be ___.

immediately; stored

Sheri had her income taxes prepared by a tax preparation service provider. After that she went to the store and bought a case of canned goods, a computer, and a lawnmower. The services she received were consumed ___ whereas the goods can be ___.

immediately;stored

Nail Concepts, a nail and day spa, is collecting marketing research information. All of the following are ways to collect useful marketing research information except

impulsively stopping people on the street to inquire about their buying habits

The ___ is summarized in the formula: Revenues - cost of goods sold - expenses = net income.

income statement

The _____ is also called the earnings statement.

income statement

Instead of having a manager instruct new baristas, Starbucks has employees use a computer training program that tells them about the company, the role of baristas, and the steps of coffee production from the farms to the coffee pot. This is an example of a way to __ productivity.

increase

As the price of jeans rises, Jordache is likely to

increase production thus increasing the supply of jeans

The four basic forms of organizational structure include all except

informal.

Southwest Airlines is known for its unique hiring style, its company Christmas party held in a hangar at Love Field in Houston, Texas, flight attendants that give announcements with humor, and job-swap days during which employees have the opportunity to do a different job for the day. These activities are part of the corporate culture which is generally defined as

inner rites, rituals, heroes, and values of a firm.

Nonprofit Accounting Services has developed software for not-for-profit organizations that provides donors with instant tax-deductible receipts via SMS and email. The software app makes it possible for donors to make donations directly to organizations and records all donations made. It also provides donors with a running total of all donations made to any not-for-profit organization that uses the software. The software also tracks donors for the organizations and sorts them according to criteria set by the organization so the organization can use this information for marketing purposes. What market is the target of the Total Accounting marketing team?

institutional market

Which of the following companies is an example of a manufacturer?

intel

Stocks of completed goods, work in process, and raw materials are included in the company's

inventories

Barrack opens a bagel shop and at the end of each day has five dozen bagels left over that he cannot sell the next day due to health code restrictions. He has misjudged

inventory

For a department store, the most likely need for short-term financing would be for

inventory

The ____ is the number of times a company sells and replaces its merchandise inventory in one year.

inventory turnover

Tommy's Burgers has several locations and determines that three are not profitable. Tommy's sells the facilities to a new business. The money Tommy's receives from this sale will be found in the ___ section of the statement of cash flows.

investing

Small firms usually sell parts and assemblies to large firms because the large firms have found that

it is less expensive than making their own

Con Crete Company is trying a new method to motivate employees. At the beginning of the year the company began a stepped in-processing program. During the first year of employment, entry-level employees are mentored by their supervisor during bi-weekly meetings that give them the opportunity to ask questions. The supervisor shows the employee how his or her work contributes to the goals of the organization. At the end of the first year, they are given new tasks to do that are related to, but not the same as, the tasks they already perform, because of the close supervision and mentoring they received the first year, they are expected to be able to accomplish the new tasks without supervision but may ask for coaching if they feel it is needed to perform well. What type of motivation technique is Con Crete Company using?

job enrichment

Harry's Autos used to have three full-time employees, but one employee, Peter, had family issues that required him to be home in the afternoon. Now Peter works from 10 a.m. to 2 p.m. and Paul works from 3 p.m. to 7 p.m. Both are working on the exact same tasks. This is an example o

job sharing

Human resource specialists generally develop the employee compensation systems, but pay increases and promotions are usually recommended by

line managers.

Harvey's Construction, a home builder, and Tinker Toys® both use lumber as the major input for their conversion process. Although the input is the same for each factory, the ___ of the conversion process varies greatly between the two.

magnitude

A sales manager at Big Books has a very wide span of control. This is probably because the

manager and his or her subordinates are very competent.

One of the disadvantages of a line structure for an organization is

managers are responsible for a wide range of activities and, therefore, must have vast knowledge about all of these activities.

Followers of Theory Y support all of the following assumptions except

managers must coerce and control workers to achieve organizational goals.

A wholesaler purchases products in quantity from _____ and then resells them to retailers.

manufacturers

A ____ manager would be most concerned about the competitor's product offerings.

marketing

Nancy was reviewing LinkedIn contacts and noticed that in Rafal's profile he said he was a manager responsible for facilitating the exchange of products between his organization and its customers through distribution and advertising. From this she could conclude that Rafal is a(n) ___ manager.

marketing

Princess Cruise Lines representatives talk to its present and potential customers to assess where they would like to cruise, where they have cruised, how many people they would most likely take with them on a cruise, and what amenities and activities they enjoy and participate in or are likely to participate in. Princess is applying the ___ concept.

marketing

Sheryl's organization has managers over many departments. Sheryl's department is responsible for facilitating the exchange of products between the organization and its customers or clients; therefore, Sheryl is the ___ manager..

marketing

___ is defined as the organizational function and set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

marketing

Lotsa Fabric, Inc. just installed a computer-based system for continually gathering internal and external information about fabric sales. This system is known as

marketing info system

Sheeree works for a company where employees do not become friends and have a high degree of autonomy and flexibility. She works in an organization with a(n) ___ culture.

mercenary

Dishes, luggage, clothing, golf clubs, and camping gear that Costco owns for selling to its customers are classified as

merchandise inventory

Every year Walmart used to open early and had hundreds of employees and temporary helpers count everything in the store. On a balance sheet the value of these goods is called

merchandise inventory

Teri is explaining the statement of financial positions to the firm's client. One of the things she will explain to the client is that on the asset side of the statement she has included

merchandise inventory.

Which of the following would be considered capital or capital goods?

money

Terrence and Solet are walking down the sidewalk in the retail district of their city. Solet has entered all of the 20 clothing stores on the street and shopped in each of them. Terrence notices that there are many clothing stores on the street and more clothing stores further up the street. He also notices that the street is packed with people shopping for clothes. He ponders these facts and thinks about the marketing situation. What kind of market competition is represented by these stores?

monopolistic

Gwendolyn works in the marketing department for a women's magazine. Her employer believes that employees should have regular breaks in their work to stay focused but expects them to return to work immediately afterwards. In spite of tight deadlines and brutal competition, her manager likes to inject fun into the workplace and one time distributed toy guns that shot soft sponges to everyone. When he blew his whistle, the office erupted into a play war zone. All employees are paid well and recognized for their contributions to the company. Gwendolyn looks forward to going to work each day because of the sense of camaraderie and fun she finds there.

morale

Holly gets paid a salary plus a commission for her sales of her company's product. In addition, if the company reaches a predetermined level of sales, she will receive profit-sharing. She has exceeded her sales goals and the company is near its profit-sharing point. Holly is ___ to sell and her ___ is high.

motivated; morale

____ embraces the idea that satisfaction and dissatisfaction are distinct dimensions.

motivation-hygeine theory

Jefferson is a human relations department employee tasked with speaking to employees to encourage and influence them toward a common goal. Jefferson is a(n) ____ speaker.

motivational

___ factors in the workplace act as satisfiers.

motivators

Tilly has discovered a way to make solar panels thin enough to easily see through and capable of being formed into any shape needed. She has decided to open a business forming solar panels into vehicle and building windows and is exploring a means to make them durable enough to be formed into hoods for vehicles. What factors of production will she use to make and develop the solar panels?

natural resources, labor, capital, entrepreneurship

Bill graduated from college and obtained a job selling insurance. He later obtained a full-time job in accounting. At the end of his first year of employment, his assets, which included his car and some money in the bank, totaled $9,000 and his liabilities totaled $3,000, therefore, his ___ was $6,000.

net worth

Google strives to have a corporate culture based on trust and friendship among employees, a strong commitment to the company, and a relaxed and informal atmosphere. This is a ___ culture.

networked

Increases in productivity for the past 200 years are characterized by

new ways to do a job with less effort and at a lower cost

GHI Corp. has employees forming teams. The role of each person within the team will become apparent during the ___ stage of team development.

norming

Lazarus was asked to join a team with Jacquelin, Alondra, Mateusz, and Mindy to resolve a product packaging issue their company was having. Lazarus took an instant dislike to Alondra because she was boisterous and did not seem to take things seriously. Because Alondra seemed to be friends with Mateusz, Mindy avoided her. After the team had been together for about a week, they had a loud argument that resulted in the members expressing the pros and cons they saw with working with each of the other members. Mindy discovered that she was not liked because she refused to take a stand and say what she meant. After the argument, the group unofficially made Jacquelin leader because she was even-tempered and they all respected her. With the appointment of Jacquelin as leader, the group began working in earnest on the problem because they finally understood what their roles were on the team. At what point in the team formation process was the team at the end of this scenario?

norming

Helen and Joanne would like to form a corporation to provide string music education to children in their area and concerts in rest homes for the elderly who are unable to travel. Helen and Joanne will most likely form a

not-for-profit corporation

One of the first steps to implementing the marketing concept is to

obtain info about its customers' needs

Jeff's Automotive ran a tire sale that significantly increased sales. The day following the sale, Jeff realized that he would be unable to meet the month's bills because most of the sales were on credit. To rectify this situation, Jeff can temporarily

obtain short-term financing.

The SBA assists small-business owners entering the world markets by doing all of the following except

offering long term loans to US business owners

The SBA assists small-business owners entering the world markets by doing all of the following except

offering long-term loans to U.S. business owners

Accountant Andy will include all of the following on the company's books as current assets except

office equipment.

Zappos can locate its production facilities anywhere in the world, but the choice of a particular location for production facilities

often involves balancing the variables

Zappos can locate its production facilities anywhere in the world, but the choice of a particular location for production facilities

often involves balancing the variables.

A market in which there are few sellers is called

oligopoly

When Exxon/Mobil and Shell and a few other firms dominate the American oil market, this is an example of

oligopoly

What are the typical payments paid by a franchisee to a franchisor?

one time franchise fee and monthly royalties based on sales

If In-N-Out Hamburgers decided to seek equity financing by selling stock, it could sell its stock on the primary market

one time.

Felicity is the manager of a department in the company where she is employed that is responsible for converting resources into goods and services. Felicity is a(n) ___ manager...

operations

Raj is responsible for ensuring that the processes of the accounting office where he is employed run smoothly and that the business will be able to provide its services efficiently and effectively. Raj is a(n) ___ manager.

operations

Sylvia is in charge of making sure that the flour, eggs, salt, yeast, and other raw materials brought into the company's bakery are turned into high-quality uniform loaves of bread for sale to retail outlets. Sylvia is a(n) ___ manager.

operations

___ management is the sum of all the managerial activities in which managers engage for the purpose of creating goods and services.

operations

Jay's Hardware received large shipments of flashlights, batteries, and generators just before a massive storm knocked out the power, downed electrical poles, and damaged the power substation in the town where Jay's was located. Power will be off for at least a week. For Jay's this is a(n)

opportunity

Dean is calculating the ____ by subtracting the total liabilities from total assets.

owners' equity

Empowerment means making employees more involved in their jobs and in the operations of the organization by increasing their _________.

participation in decision making

Renee has observed that her hair salon is suffering long periods without customers. To determine the cause of the problem she assembles all of the cosmetologists to get their input on the matter. Although she will make the ultimate decision regarding how to address the problem, she feels comfortable delegating decision-making authority to any member of her staff. This leadership style suggests that she is a(n) ___ leader.

participative

To downsize by attrition means that the company will reduce its workforce by

people leaving the company.

Jerry has a wheat farm in Nebraska. He sells his wheat to a buyer who stores it in his grain elevator along with grain from many of the other farms in the area. Jerry checked with other buyers and discovered that the amount paid per bushel of wheat was consistent throughout the region. What kind of market is he competing in?

perfect competition

When a manager reviews the results of an employee's performance with the employee soon after completion of the employee's performance review, this is known as a(n)

performance feedback interview.

Portica knows the customers of her hat shop by name and knows each of their preferences. This demonstrates which advantage of a small business?

personal relationships with customers

The owner of Nogales Gardens in Oceanside, California, loads flowers into a truck early every Saturday morning and then sets them out in buckets at the Temecula farmer's market. The process of trucking fresh flowers from his gardens in Oceanside to the farmer's market in Temecula, California gives ___ utility to the flowers.

place

A(n) ___ is an outline of the actions an organization intends to take to accomplish its goals and objectives..

plan

What is the "first" management function?

planning

The arrangement of machinery, equipment, and personnel within a production facility is the ___.

plant layout

Gun sales have been subject to changes in the external marketing environment due to changing values of elected and appointed officials related to gun ownership, the kinds of guns that can be owned in a particular state, the types of ammo that can be purchased, and gun registration requirements. These influences on the external marketing environment of guns are called ___ forces.

political

Carlos has a Mexican handmade craft import business. He read an article in the newspaper that said the government is working to limiting imports from Mexico in order to increase employment within the United States. He is concerned that he will be unable to get products for his store, and that if he can get products, they will cost him much more than they did prior to the new trade restrictions. Which of the following forces in the external marketing environment is the primary source of his concern?

political forces

Miss Maple has a reward chart in her first grade classroom. Each time a child completes one of the required activities on the chart, she puts a gold sticker on the chart by the child's name. When a child has 30 stickers, he or she can choose a prize from the prize box. This teacher is practicing

positive reinforcement

Bella works at a florist shop after school. She has to work to pay for school and just barely makes enough money to live on. Other girls at her school carry Chanel bags to school, wear Christian Dior and Givenchy clothing, Gucci sneakers for sports, and Jimmy Choo shoes for formal events. Bella has been invited to the prom but is concerned that she will look and feel out of place. She discusses her predicament with her grandmother, who assures her she has nothing to worry about because they can get her the clothes and accessories she needs at either no cost or a fraction of the cost. A week later, her grandmother asks her to come to her house. When she arrives, she sees her grandmother has five Louis Vuitton dresses, and a variety of designer shoes, handbags, and accessories and tells her to pick out what she likes and try it on. She picks out a dress and shoes and tries them on. She models them for her grandmother who insists that she take them and the accessories she has picked out to go with them. Bella asks how much she owes for them and her grandmother tells her, "$200." Bella pays her and takes the purchases home with her. What type of utility is the focus of this scenario?

possession

Maddie ordered a child's backpack online from Target, but after receiving it, decided it was too small for her child and returned it for a refund thus reversing the effect of ___ utility.

possession

When Becky buys flowers at the farmer's market, the flower business transfers ownership of the flowers to her which is called ___ utility.

possession

Sam is doing a crossword puzzle and must find a word synonymous with authority. He should choose

power

In the event of a corporate dissolution, after the creditors are paid, the ____ owners have first claim on profits and assets.

preferred stock

Stock is sold in the ___ when a corporation uses an initial public offering to raise capital.

primary market

The ___ is the lowest rate of interest charged by a bank for a short-term loan.

prime interest rate

Large corporations with excellent credit ratings can borrow money at the

prime interest rate.

Alpha and Omega Inc. has borrowed money from its bank at various times over the years but has always been slow in making its payments. Based on its payment history, when it is next in need of financing, the interest rate Alpha and Omega Inc. will pay is

prime rate plus 4 percent.

Once Used Automobile Sales will hire a new sales agent but wants to ensure the agent is honest. The most common methods of obtaining information about applicants are all of the following except

private investigators.

Toyota Motor Company builds cars. Its plant is organized into a fabrication section, welding section, painting section, and assembly line to assemble each vehicle. This type of plant layout is referred to as a(n) ___ layout.

process

A(n) ___ is used when different sequences of operations are required for creating small batches of different products.

process layout

Harry's Lighting, a home lighting manufacturer, purchases electrical wires needed to make light fixtures from various wire manufacturers. Harry's is a part of which type of market?

producer

In the Grimm's fairy tale, "The Elves and the Shoemaker", the elves sneaked into the shoemaker's shop at night while he was asleep. One elf cut the shoe leather and passed it to the next who sewed it. The third put the soles on the shoes and the last added the laces. The elves used a ___ layout.

product

The attempt by a seller to set its product apart from the competition to obtain limited control over the price of the product is known as

product differentiation

Kraft Macaroni and Cheese has been on the market for many years and is still popular. All of the following except ___ are most likely used by Kraft to lengthen the life of Kraft Macaroni and Cheese.

product integration

The advantages of cultural diversity include all of the following except

profit-sharing.

A matrix structure is a combination of a functional structure and a ___ structure.

project

A ____ is a written pledge by a borrower to pay a certain sum of money to a creditor at a specified future date.

promissory note

When the MGM Grand Hotel and Casino is seeking front desk personnel in the hotel who are qualified for the position, it can use any of the following, which are all sources of external recruiting, except

promoting a current employee.

Due to employees becoming bored and dissatisfied with their work when performing specialized tasks, employers may take any of the following steps to improve job satisfaction except

promotion.

After Todd cost the company where he was employed $30,000 in wasted materials because he did not follow instructions even after initially having the procedures shown to him, receiving training, being reminded of the proper procedures several times, and additional feedback, he was demoted. This action indicates the use of

punishment

Lyle must find a parts supplier for his company's new product line. All of the following are true about selecting a supplier except

purchasers should focus on having only one supplier for each material needed

Georgie is charged with obtaining the flour, lard, oil, sugar, yeast, eggs, and other ingredients needed for Betsy's Bakery to make pastries. Georgie is in charge of

purchasing

Economists theorize that sound fiscal and monetary policy can effectively reduce the time the economy is in the ____ stage of the business cycle.

recession

The MGM Grand Hotel and Casino is seeking front desk personnel for the hotel who are qualified for the position. It places ads in the local newspaper, holds a job fair, and posts openings on Indeed.com, Glassdoor.com, and Monster.com. MGM is

recruiting employees.

The Ford Motor Company operations must engage in all of the following activities except ___ to produce a Ford truck.

recruitment of human resources

Smyrna has listed several previous employers and positions she held with them and duties she performed on her job application with Blah Blah Communications Co. To verify this information, Blah Blah will most likely perform a(n

reference check.

When Apple improves the sound clarity of music on the iPhone it is

refining its existing product

A law requiring all scales sold to be tested to determine if the weight readout is accurate would be what type of force in the external marketing environment?

regulatory and legal

Harry's girlfriend does things that his roommate, Tim, does not like. In order to retrain Harry's girlfriend, Tim gives her a candy every time she does what he tells her to do. Which theory does Tim utilize?

reinforcement theory

Walmart holds morning meetings which gather all employees together briefly. During the meeting the manager acknowledges employees who excelled in their work the previous day. This daily praise session is based on the theory that rewarded behavior is likely to be repeated and that punished behavior is less likely to recur, and is called the

reinforcement theory

Sultan's is a Greek restaurant that has a booth at the local farmer's market each Saturday selling Greek food to customers. The owner runs the booth because he enjoys interacting with customers. When a customer asks for items not on the menu and he does not have in his booth, the owner takes the order for the following Saturday and has it available for the customer at that time. Sultan's is creating a model for

relationship marketing

Many companies have a(n) ____ which gives them confidence in seeking short-term financing.

relationship with the friend of their banker

____ provides the kernel of understanding that leads to the inventions or ideas that are the basis for the creation of most of the goods and services that we enjoy today.

research and development

Cisco, one of the largest food distributors in the United States, distributes cold foods for a company in Las Vegas. It is specifically a part of a(n) ___ market.

reseller

In business buying, a committee or a group of people often make the buying decision and consider the organization's objectives, purchasing policies, ___.

resources and personnel

Jeffrey has a duty to do a job or perform a task. This is called

responsibility

Jeffrey has a duty to do a job or perform a task. This is called

responsibility.

One of Herzberg's motivation factors is

responsibilty

Which of the following small businesses could be categorized as being in the distribution industry?

retail and communications

Sheri is evaluating her financial statements to determine profitability. She creates a ratio by dividing net income after taxes by net sales. This is known as the ____ ratio.

return on sales

Peter provides math tutoring services in his home five days a week. The money he earns from tutoring is called ___ on an income statement.

revenue

According to economists, factors of production would not include which of the following:

revenues

What is the name given to the ratio that is based on the principle that a high-risk investment should generate higher financial returns for a business and more conservative decisions often generate lesser returns?

risk-return

When a business manager is faced with competing decisions and one is risky and the other more conservative, the manager should calculate the ____ to help make the right decision.

risk-return ratio

An entrepreneur is a person who

risks his or her time, effort, and money to start and operate a business

At a recent training seminar of QRS Corp., employees were given slips of paper with job titles on them and were then given a scenario and told to act out the role represented by the job title they were given to better understand those roles. This kind of training is called

role-playing.

To inform potential employers about an applicant's background and qualifications, the applicant should send a(n)

résumé.

Banks in Sun City, a retirement community, were robbed regularly one year. In response, the banks added additional security devices, double entries that required people entering to open and then close one door entirely before opening the second door, and security guards. In spite of this, while the security guard stood at the entrance to one of the banks, robbers entered the other door and held up the bank and its customers. The bank employees have indicated that they feel uneasy on the job. The bank may find that the employees' and customers' ___ needs must now be met.

safety

By providing medical, dental, vision, and retirement benefits to employees, Microsoft is probably satisfying which level of need?

safety

Travis has worked for his school district for two weeks but the district only pays monthly. The amount of money the district owes him is classified as ____ on the district's balance sheet.

salaries payable

Jeannette is paid $50,000 per year as the manager of a gas station. This type of compensation is called

salary.

The emphasis of business from the period between 1920 and 1950 was on ___, with focus placed on advertising, sales forces, and occasionally high-pressure sales techniques.

sales

Jennifer has found a dress at Ross she would like to buy; however, one of the belt loops has become unattached and will need to be sewn into place. She takes the dress to customer service and asks the manager for a ___, which is a reduction in price for accepting the slightly damaged merchandise.

sales allowance

Henry's Market has an agreement with one of its suppliers that provides a 10 percent discount if Henry's pays the bill within ten days of receiving it. This is called a ____

sales discount

To develop a ___, United Airlines may use executive judgments, surveys of buyers or sales personnel time-series analyses, correlation analyses, and market tests.

sales forcast

Tim and Dan open a lemonade stand at the corner of their street. They expect to sell three pitchers of lemonade during the afternoon by holding signs up at each end of the street directing motorists to their stand. Their estimate of expected sales during the afternoon based on this level of marketing effort is called a

sales forecast

___ can be marketed successfully with the undifferentiated approach.

salt and flour

The purpose of the marketing mix is to

satisfy the target market

Sierra's Snow and Ski Shop orders snow gear ten months in advance of winter, but receives the inventory in early fall—about three months before ski season. Due to the lack of sales at the time the inventory is received, Sierra's is unable to pay for the inventory up front. Instead, its suppliers allow it to use its inventory as collateral in ____ agreements.

secured short-term financing

Harry is a farmer in Iowa where he owns a section of land on which he raises corn. The corn is used for animal feed and to produce corn oil. Which of the following best represents the material resources he will use?

seeds, water, tractor

Satisficing describes solutions that are only adequate and not ideal. At what point in the decision-making process should managers avoid satisficing?

selecting an alternative

Sammy received a telephone call from the human resources department of T.J. Maxx a week after he completed his application. The caller invited him to an interview, which is part of the company's ___ process.

selection

Everett is part of a highly skilled scientific research team working to find a cure for diabetes. His team establishes its own budget, purchases supplies, conducts performance reviews within its own ranks, and takes corrective action as needed. The team has found that by keeping management within its ranks, it can more quickly adapt to needs within the group and the changes demanded by the work they are performing. Everett is part of a ___ team.

self managed

____ is the most difficult need to satisfy.

self-actualization

SDF Corporation is in dire financial straits. It will ____ as a last resort for obtaining funds.

sell assets

DEFX Corporation is dedicated to total quality management and will do whatever is necessary to maintain quality now and in the future. The company must have incorporated all of the following aspects of operations control into its operations except.

selling

When a firm reports its operating expenses, they are categorized as either ____ expenses related to the firm's marketing activities or ____ expenses incurred in managing the business.

selling; general

New employee training can be carried out through

seminars.

During the Industrial Revolution, America was viewed as a production economy. Today it is characterized as a(n) ___ economy.

service

SCORE is the acronym for

service corps of retired executives

Automobile dealerships and ___ were the primary uses for franchises in the early days of franchise agreements.

service stations

Maria has purchased a Subway franchise. About how much work should she expect to do to make the franchisee successful?

she will work very hard putting in long hours about six days a week

Meredith is responsible for maintaining her company's data bank of skills and experience of all employees which is known as the company's ___

skills inventory.

Frieda's Freestyle Skateboards has many customers but is not dominant in its field. This is a ___ business.

small

In the United States, ___ account(s) for 97.5 percent of all identified exporters and produce(s) 31 percent of export value.

small business

Milkshake Lending Company is a small privately owned firm providing venture capital to small businesses. This company could also be referred to a.

small business investment company

All of the following are true about small business except.

small businesses create cyclical unemployment

TLC Inc. has its own network site where employees can post pictures, personal notes, accomplishments, and network with employees in other offices and other countries. When employees use this site, what needs are they meeting?

social

Ernestine manages a bistro for a large restaurateur. David manages a bistro for the same restaurateur five miles from Ernestine's shop. Moonrise manages a bistro for the same restaurateur five miles from David's shop. All of their employees are paid the same and have the same benefit packages. Ernestine is very involved in the community and includes her employees in fundraisers for autism awareness and providing coffee for a nonprofit string music organization's fundraisers. She also does fundraising for elimination of breast cancer. She holds potluck picnics in the park with her employees where they play team games and have relay races with prizes for the winning teams. Once an employee is hired at her store, the employee very rarely leaves unless life events require it. David is into sports and does not really get involved with his employees. He has a high employee turn-over. Moonrise loves surfing and sponsors a children's surfing tournaments. He invites employees to attend the national surfing championships and extreme sports events with him but does not hold storewide events. Moonrise has a few very faithful employees. Which of the following needs are fulfilled by Ernestine more than the other managers?

social needs

Elizabeth lives in a country where individuals may own their own property. Some of the very wealthy people own oil refineries and have stock in computer companies but the government owns the railroads, airports, ports, and roads in addition to the utility companies, communications companies, banking, and steel production facilities. What kind of economy best characterizes this nation?

socialist

Terrance, the marketing director for Fillmore Environmental Waste Removal Service, supervises ten people. This represents his

span of management.

Separating the manufacturing process into distinct tasks and assigning each task to an individual or unit is called

specialization

Increasing the ease of training new employees is one of the benefits of job

specialization.

Nancy often mentally drifts off while in the middle of performing the tasks she has been assigned to perform. Nancy may be suffering from boredom, which is one of the negative side effects of job

specialization.

Facilities maintenance is a(n) ___ type job, so it does not fit directly into the chain of command.

staff

The attorney for the City of Henderson would most likely occupy a(n)

staff position.

School districts frequently use hiring panels to interview new candidates. Each candidate is asked the exact same questions and given the same time frame in which to answer. They use this ___ to eliminate differences when determining the candidates' qualifications after the interview.

structured interview

The franchise with the most outlets in the United States is

subway

Darrel's Donuts has been operating quite successfully for two years. Darrel is considering expanding the business by franchising. Which of the following is not an advantage of a franchise?

success will cause another outlet to be opened nearby

The Columbia Sportswear Company corporate responsibility statement says, "Whether it is responsible sourcing, giving back to our communities, or reducing our environmental impact, we believe corporate responsibility is a companywide effort." This company promotes

sustainability

A tool manufacturer that produces several different kinds of tools uses a(n)____ process.

synthetic

Combining cake mix, a plastic wrapper, and a cardboard box to make packages of Pillsbury cake mix most closely resembles a(n) ___ process.

synthetic

Ducati makes street motorcycles that cost in excess of $35,000 for the wealthy motorcycle enthusiasts. This group is Ducati's

target market

Wilma, a certified public accountant with ABC Company, and George, a securities expert with the company, have been appointed to a(n) ___ to investigate the pending merger of their company with DEF Company.

task force

Jeffrey M. Katz started Orbitz. He has two masters degrees in engineering—one from Stanford and one from Harvard. He has been in top management positions with Wize Commerce, Inc., Nextag, Inc., and Leapfrog Enterprises, Inc.Although it is unlikely he uses them often, it is likely that he has good ___ skills.

technical

on is a welder at a Chevron storage facility. To accomplish his job he must use specific skills known as ___ skills.

technical

The invention of insulin and power steering by small businesses are examples of the ability of small businesses to provide

technical innovation

Companies that produced record players found themselves in trouble when cassette recorders became popular. The cassette recorder production companies found themselves in trouble when CDs became popular. Currently, CD production companies are being impacted in the same way by ___ forces as CDs give way to streaming music and music downloads.

technological

Some of the benefits of ____ for the employer is that he or she has the benefit of the full-time employee's contribution to achieving the goals of the organization while saving on real estate and travel expenses, and the employer has access to larger labor pools.

telecommuting

Ted is a computer programmer who works for a company that was located a ten-minute drive from his home. The company moved to another state but Ted did not want to relocate. He asked his employer if he could perform his work from home and attend meetings via Skype. Ted's employer agreed but required that Ted be available Monday through Friday from 8 a.m. to noon for conferences. Ted's employer is practicing ____ as a motivational technique.

telecommuting

A(n) ____ is a promissory note that requires a borrower to repay a loan in monthly, quarterly, semiannual, or annual installments.

term-loan agreement

Franz has won a scholarship to study economics at the University of Warsaw for a semester. He must decide by Friday whether to accept or reject the scholarship. He is concerned that Poland may not be as economically advanced as the United States. He researches the country's gross domestic product. What will this tell him about the economic status of Poland?

the GDP is a measure of total dollar value of all goods and services produced by all people within the boundaries of a country during a one year period. It will let him know the economic well being of Poland

What period in American history was ushered in by the factory system?

the Industrial Revolution

What is the best definition of productivity?

the average level of output per worker per hour

Which of the following companies is most likely operating in an oligopoly?

the boeing

Becky's Bakery follows a ____ budgeting process in which each department manager is required to provide documentation justifying every expected expense.

zero-based

Janice is the manager of a store who has delegated authority to a subordinate. She has given the subordinate all of the following except

a line position.

Often, when _____ in short-term financing, a warehouse receipt may held by the lender.

a loan has been secured by inventory

Every few days Dilbert Doogood, a manager at Something Big Productions, sends a maintenance worker into the office to move the plastic plants around and make new arrangements of them. When the man leaves, productivity increases in alignment with Hawthorne's experiments with lighting that showed

a sense of involvement affects production.

Maria's Taco Shop, a locally owned and operated restaurant with just one location, is likely to have

a short chain of command.

What is a tactical plan?

a smaller scale plan developed to implement a strategy

Carole has investigated the possible tax advantages of opening a business in the form of a sole proprietorship rather than one of the other forms of business. She discovers that

a sole proprietorship does not pay special state and federal taxes that corporations pay

Armando's Furniture buys its inventory on credit. Before Armando pays for this merchandise in 60 days, the amount owed is classified on its balance sheet as a(n)

account payable.

Larry Lawyer provides legal services for clients and bills them when he has completed his work. He normally gives them about 30 days to make the payments. The amounts of money his customers owe are called

accounts receivable.

Nancy, a lawyer, has written a will for a client. The client has not yet paid the bill. On Nancy's books, this amount would be recorded under

accounts receivable.

Boeing Corp. created a committee to study the company's hiring, promoting, and compensation policies. The committee will review these areas for four months then report to the board of directors and, afterwards, be disbanded. This is a(n) ___ committee.

ad hoc

The chief executive officer of CA, Inc. provides the company with leadership and overall guidance in addition to interpreting the company's mission. Because of the tasks he is required to perform, he would be classified as a(n) ___ manager.

administrative

When a corn processing plant takes corn and converts it into corn oil, corn syrup, ethanol, and other corn products it is using

an analytical process

When a corn processing plant takes corn and converts it into corn oil, corn syrup, ethanol, or other corn products it is using

an analytical process

Larry's Lawn Service works out an agreement with its Internet provider that will give Larry's a 20 percent break on the cost of Internet service if Larry's prepays for a year of service. On Larry's books this prepaid expense would be classified as

an asset.

Milford is a manager at QRZ Inc. He is tasked with identifying problems correctly, generating reasonable alternatives, and selecting the "best" alternative to solve problems. When Milford carries out these tasks he is using ___ skills.

analytical

Benchmarking is the process of evaluating the products, processes, or management practices of ___ for the purpose of improving quality.

another organization

A group of design engineers from Ford take a Mustang Shelby to a test track in Arizona during the hottest week of the year to test its performance at extreme temperatures. Ford uses the results of the tests to improve fuel consumption and maneuverability in Mustang Shelbys. The engineers are engaged in

applied research

___ is research and development activities intended to disclose new knowledge and its uses.

applied research

Companies that invest in small businesses.

are profit making organizations

Terry's Tire Shop is located in a building owned by the business. The building is a(n) ___ of the business.

asset

Henrietta has completed most of her business plan for her new business. She is now developing a marketing strategy. This will consist of the selection and analysis of a target market and

the creation and maintenance of an appropriate marketing mix.

The participative leadership style has many advantages, but disadvantages too. Which of the following is a disadvantage of this type of leadership?

the decision making process is time consuming

If a report was released that showed using olive oil for cooking dramatically reduced the risk of heart disease in adults, what would be the likely effect on the demand for olive oil?

the demand for olive oil will increase at every price

Hamilton has wanted to start a business of his own since he was a small child. This desire is referred to as

the entrepreneurial spirit

Kevin worked for Tire Company for five years. His sales surpassed those of every other salesperson regardless of the shift he worked because he had excellent up-selling techniques. In spite of his efforts, he discovered that he earned far less than any of the other salespeople. Consequently, he quit and took a sales position with a competitor who paid salesmen a commission in addition to a salary. To avoid losing other top performing salespeople, Tire Company should apply

the equity theory

Julia is a new-hire at QRS Corp. Her initial wage rate will be determined by

the experience, qualifications, and expected performance of that employee.

Fuji, a plant manager with UVW Inc., evaluated the plant's operations after the absence of a key employee almost halted production because no one knew how to do his job. Fuji recommended to top management that there was a need for some specialization because

the more specialized the job, the easier it is to train new employees when an employee quits or is absent

Fuji, a plant manager with UVW Inc., evaluated the plant's operations after the absence of a key employee almost halted production because no one knew how to do his job. Fuji recommended to top management that there was a need for some specialization because

the more specialized the job, the easier it is to train new employees when an employee quits or is absent.

Danuta is studying financial statements. She has reviewed the cash flow statement and determined that cash flow is

the movement of money into and out of an organization.

Louis Vuitton is designing his new fall line and attempting to forecast the sales for the coming year. Which of the following is least likely to be a factor in developing a sales forecast?

the number of salespeople employed by the firm's major competitors

One of the reasons for job specialization is

the organization is too large for one person to do everything.

Gunderson starts his own business as a sole proprietor. This form of business has the advantage of

the owner keeping all of the profits from the business

Becky's Bicycle Shop has assets of $124,000 and liabilities of $31,000, therefore,

the owners' equity is $93,000 (Assets = liabilities + owners' equity)

At IBM, human resources are most likely handled by ____; but at a small business, they would most likely be handled by ___.

the personnel manager; the owner

As the demand for Walkman CD players declined, what happened to the price of Walkman CD players?

the price decreased

Ulla is a farmer who farms in California's Central Valley where water usage is being restricted due to prolonged drought. She sells sugar beets to buyers throughout the United States. Ulla is familiar with the economics of perfect competition. How is the price at which she sells her sugar beets determined?

the price is determined by combining the actions of all buyers and all sellers together

___ was the focus of business from the beginning of the Industrial Revolution until the early 20th century.

the production of goods

Which of the following are included in economic freedom?

the right to own resources to produce a profit

Bill, a supervisor at a grocery store, continually monitors employees' performance and often goes into the stock room to make sure they are working. He reprimands employees who talk to one another while working the registers, even if no customers are present, and surveys the breakroom to ensure employees do not take longer breaks than allotted. Bill most likely uses ___ assumptions when dealing with employees.

theory x

Approximately what portion of the U.S. total production is made up of things other than consumer goods?

30%

Jennifer would like to open her own business. According to the SBA, in 2012 women were 51 percent of the U.S. population, and owned at least ___ percent of all small businesses.

30%

What percentage of businesses in the United States are sole proprietorships?

72%

What is a tactical plan?

A smaller-scale plan developed to implement a strategy

Erica was in a car accident as a child and lost her sight. In spite of being blind, she has excelled in school, worked with the poor and homeless, and was the ASB president. She graduated with highest honors. She applied for a job at a call center, was interviewed, and received good reports from several people who worked for the company and had heard about the interview. In spite of her qualifications and favorable reports, she was not hired for the position. Later she heard that an individual who could barely spell, had a very slovenly office appearance, and no education was hired for the position. She was also told "off the record" that she was not hired due to her blindness. She is considering filing a lawsuit against the call center company. What would be the most likely employment act she would cite as the basis for her claim?

Americans with Disabilities Act

Mono Lake has been the subject of hundreds of biological, biochemical, ornithological, and ecology studies over the past several decades. Initial studies focused on the biochemical connection between the hoodoos, lake water, and microscopic life forms in the water. Recent studies have focused on recreational use of the lake and potential use of the information provided by the initial research to understand the interaction of chemicals remaining from the volcanic development of the cinder cones that formed the lakes. It is possible that this new knowledge could be used to develop ecologically friendly solvents to dissolve chemical build-ups in homes and businesses caused by standing water. What are the scientists doing who are currently researching the lake to discover potential uses?

Applied research

Fred and Barney have decided to go into the quarry business together. They start by writing an agreement that explains the parameters of the business they will own and the responsibilities and roles each of them will have in the business. They have created

Articles of partnership

Philip is a human resources manager in an industry that is experiencing an over-supply of qualified workers due to an economic downturn and decreased demand for the products his industry manufactures. His company has had a greater over-supply than most companies in the industry due to restrictions placed on the products his company produces that limits the number of units that can be sold during a specific time period. Philip must recommend to management ways to reduce the company's workforce. He has several options at his disposal, which of the following would be the most desirable option to utilize to reduce the workforce?

Attrition

Arlie joined the United States Air Force when he graduated from high school after talking to an Air Force member who was tasked with going to schools and showing movies of Air Force personnel in action, handing out literature, doing follow-up contact work, and answering questions students may have. Before being accepted into the Air Force, Arlie was required to take exams and then to report to a designated location where he was weighed and required a physical fitness test. Having passed all of the physical exams and tests, Arlie is now on his way to San Antonio, Texas for boot camp. He will be sent to school in Biloxi, Mississippi when he completes boot camp. What part of the employment process is represented by boot camp?

Boot camp is the military's version of employee orientation.

How many years after World War II did the United States lead the world in productivity?

30

Sarah's Salon ordered $5,000 worth of merchandise from Cosprof, Inc. The invoice to Sarah's has a discount term of 2/10, net30. Sarah writes a check within ten days for

$4,900.

Sarah's Beauty Salon has $260,000 in assets and $158,000 in stockholders' equity. It owes $55,000 from a long-term loan (this is its only long-term liability). Sarah's has ___ in total current liabilities.

$47,000 (Assets = liabilities + owners' equity)

Fran's Fancy Frocks, a retail clothing store, may not exceed ___ in annual sales to qualify as a small business.

$7 million

Harry's Market has sales revenues of $150,000 during 2014. The market has expenses that totaled $80,000. What is the market's profit or loss amount?

$70,000

Peter Pauper's Clothing store had net sales for the period of $175,000 and a cost of goods sold of $85,000. What is the firm gross profit on sales?

$90,000 (Gross profit is the difference between net sales and cost of goods sold)

The definition of deflation is

A general decrease in the level of prices

Economists describe inflation as

A general rise in the level of prices

Jenny bought a sweater at J.C.Penney and later returned it to the store for a refund. What would the sweater be called on J.C.Penney's books?

A sales return.

Tim Jones is a C.P.A. with his own practice. A client asks for consulting services. Which of the following represents a key component of the Sarbanes-Oxley Act relating to consulting services?

Accounting firms are prohibited from providing many types of consulting services to the companies they audit.

_____ are the assets most commonly used as collateral for short-term financing.

Accounts receivable and inventory

____, in the book, The Wealth of Nations, emphasized the power of specialization.

Adam Smith

The matrix structure has many advantages, but the most obvious one is

Added flexibility

The global environment can be described as

An increase of competition from firms in other nations

A market in which there are few sellers is called

An oligopoly

Milford is a manager at QRZ Inc. He is tasked with identifying problems correctly, generating reasonable alternatives, and selecting the "best" alternative to solve problems. When Milford carries out these tasks he is using ___ skills.

Analytical

For many years, flying on a known airline from a large airport was the only way to travel long distances quickly and economically. Recently, a company decided to challenge that business model by providing charter flights into large, but lesser used airports. Individuals can charter the entire plane, part of the plane, or fly on one of its scheduled daily flights with other passengers. The flights are more expensive, but come with many amenities unavailable on a commercial flight and require no waiting in TSA lines. The flights, a rental car, or car and driver, can be ordered through the company's app along with in-flight meals that are prepared onboard by a chef, beverages, movies, office equipment to be used in-flight, and other services. During the development of the app for the flight service, the founders created a think tank that included air traffic controllers, pilots, CEOs, statisticians, gate agents, airport managers, and a machinery expert to predict demand for charter flights and locations for the highest demand. Which of the activities in operations management is represented by the development of the charter flight app?

Design

Rachel and Diane would like to form a business providing large-print books to homebound destitute senior citizens in Detroit. The books would be purchased from library book sales or donated to their business. Rachel and Diane would deliver the books. They would like the business to become international in scope. They will need to raise $100,000 to get their business running and will eventually have much greater capital needs. From the following choices, select the best form of business Rachel and Diane could adopt?

Non-profit corporation

Megan would like to start a sewing club for underprivileged children teaching them to make quilts and other creative items. She does not want to sell stock but would like to take donations to support the club. What would be the best business form for this club?

Not-for-profit corp

Which of the following is a short-term financing need?

Speculative production.

The subjective measure of how prosperous a society or individual is in terms of obtaining want-satisfying services and goods is called

Standard of living

About ___ of every consumer dollar spent is spent on marketing activities associated with time, place, and possession utility.

ONE HALF

___ of evaluation techniques use some measurable quantity as the basis for assessing performance.

Objective methods

Planning includes all of the following except

Objective planning

Xavier and Jesus have been operating an indoor rock-climbing business for three years. When they started the business, they intended to expand to other locations and to offer training leading to outdoor climbs. They developed a guide for the planning policy which incorporated major policy decisions and methods for setting policies. They developed individual plans for carrying out each of the phases of the initial plan and even created a plan to oversee the other plans that included a checklist for locating business sites, flow charts for establishing businesses at new locations, and accountability charts for overseeing the implementation of all of the individual plans. Without names for the types of plans they are using, Xavier is finding it difficult keeping the plans straight. What names should he use to refer to the guide, individual plans, and the plan to oversee the other plans?

Strategic plan, tactical plans, operational plan

____ training is accomplished by having a trainee learn by doing the work under the supervision of an experienced employee.

On-the-job

___ of the ideas for new products, refinements, and extensions ever get to the production state.

Only a few

If Weber Breads states that it is going to spend $10 million in advertising in the upcoming year to increase its market share by attaining 300 new accounts, it is explaining part of its ___ plan.

Operational

Barney's Bookstore has more customers seeking a new title released by a popular author than it can fill. This positive problem can be viewed as a(n)

Opportunity

Barry Moore, a division manager of Barry's Burger Barn, a chain of fast food restaurants, is reviewing the goals for the company's different departments. The marketing department has set a goal to increase sales by 15 percent over the next year but the accounting department has set a goal to reduce costs by 25 percent by seeking cost efficiencies. In balancing these goals, Barry is engaged in

Optimization

Faraday is responsible for the human resource department and the shipping department which continually set conflicting goals. He must utilize ___ to achieve balance between the departments.

Optimization

Godfrey is the manager of a new business that produces custom ski equipment. His production department would like to minimize costs by focusing production on only ski boots and then expanding their offerings as sales increase and funds can be used to purchase new production equipment for skis, ski goggles, helmets, and apparel. The marketing department would like to maximize sales, which requires the production and sale of a variety of products and options. When Godfrey balances these competing interests, what is he doing?

Optimization

Alyiah is helping Yahaira design a chart to show who supervises her and who their supervisors are. She wants the chart to show the entire line of supervisors from the president down to her position and those she supervises. She would also like to show the employees who are at an equal level with her in the organization. What would be the best device to use to make the process easier to understand?

Organizational chart

___ is one of the common errors made by managers appraising employees.

Overusing one portion of an evaluation instrument

___ is the value of a firm's stock plus any retained earnings that have accumulated to date

Owners' equity

Rachel is leaving for maternity leave. Upon her return to work she does not want to work full-time. Her employer has given her a choice between part-time and job sharing. What is the difference between these two arrangements?

Part-time jobs can be done in less than full-time; however, in job-sharing, a full-time job is created from two part-time employees.

Dynamite Distribution distributes packages for customers worldwide. It works on short deadlines and must assure that the packages it delivers are received in proper order, intact, billed properly, and received by the specific individual to whom they are addressed. Derek, the CEO of Dynamite Distribution, meets each month with employees to discuss ways to streamline the delivery process. After the meetings, he assembles the input and analyzes it by himself then brings in the heads of finance, materials, logistics, human resources, and operations to answer questions he has that have arisen from the monthly employee meeting. After meeting with the managers, he makes a decision, notifies all managers of the decision, and gives specific instructions of how it will be implemented, how it will be analyzed for effectiveness, and the timeframe for implementation. He instructs them that he expects full and complete cooperation and exact compliance with the instructions. What type of leadership style is this CEO most likely using?

Participative

During which phase of the business cycle does a business typically introduce new products?

Peak

Jerry has a wheat farm in Nebraska. He sells his wheat to a buyer who stores it in his grain elevator along with grain from many of the other farms in the area. Jerry checked with other buyers and discovered that the amount paid per bushel of wheat was consistent throughout the region. What kind of market is he competing in?

Perfect competition

Hannah has been weighing the pros and cons of starting her business as a corporation. She has determined that all but ______ is a disadvantage of starting a business as a corporation.

Perpetual life

Harry runs several businesses simultaneously. He also participates in marathons for which he has won several international titles. He opened his first software business when he was 15, and was a multi-millionaire by the time he was 19. He is known for conducting business non-stop and his employees even speculate that he never sleeps. He takes conference calls while he works out in his gym, is continually on the phone, and contacts his office before and after each race. He has a half a million followers on Facebook and Instagram due to both his racing and businesses. He is sought out for autographs wherever he goes. He sponsors events to raise funds for the local children's hospital and has retrofitted waiting areas at the children's hospital so they are more like comfortable coffee shops than waiting areas. He finds many ways to encourage his employees and includes their ideas in his business and charity work in order to stimulate creativity and build loyalty. He gives special recognition to employees who excel. He is known to work as an undercover employee in any of his businesses that have problems their managers cannot resolve. He works undercover until he fully understands what the problems are and can formulate a working solution. His employees are under the impression that he never tires and never stops working. He finds it difficult to understand why his employees do not have his level of passion for their work. Which of the following best describes Harry's leadership style?

Entrepreneurial

Which of the following resources includes the funding needed to pay wages, purchase raw materials, and operate a business?

Financial

___ is the use of borrowed funds to increase the return on owners' equity.

Financial leverage

___ could be defined as all of the activities concerned with obtaining money and using it effectively.

Financial management

X'Zion manages a fish market. He is responsible for scheduling employees, receiving fish and other products, and having it stocked on the shelves, and in the freezer and refrigerator. He is also responsible for the banking and reconciling the cash register records against the contents of the registers. He likes working with the inventory and employees but does not like doing the banking and dealing with the cash and cash registers. Of the resources X'Zion must oversee, which one does he least enjoy?

Financial resources

If Facebook decided to issue new stock to expand its facilities, where would the receipt of cash from the sale appear on the statement of cash flows?

Financing

Businesses in Finland sell a wide variety of products with manufacturing, woods, telecommunications, metals, engineering, and electronics being the primary exports. Businesses are free to sell any legal product they want in any manner they desire as long as it does not violate any laws or ordinances. The nation has a very liberal welfare policy with most citizens, even at an early age, receiving monthly pension checks from the government. What type of economic system is employed in Finland?

Finland has a free market capitalistic economy

When a nation reduces income taxes for individuals so they will have more income to spend as a means of stimulating the economy, the nation is exercising its

Fiscal policy

A wide span of management implies that the height of the organization will be ____, whereas a narrow span of management implies that the height of the organization will be _____.

Flat; tall

Business cycle is defined as

Fluctuations in a national economy

Toyota Motor Company builds cars. Its plant is organized into a fabrication section, welding section, painting section, and assembly line to assemble each vehicle. This type of plant layout is referred to as a(n) ___ layout.

Pooled manufacturing

Give a Heart Company, a maker of mechanical heart valves, has its own bowling league formed by employees with teams drawn from different departments within the company. It also has ad hoc committees and task forces to accomplish the goals of the company. The ad hoc committees and task forces are ___ groups, whereas the bowling teams are ___groups within the organization.

Formal; informal

Anderson and Diego are engineers and, along with the other employees, have a high degree of autonomy, flexibility, and equality at work. They have very few friends at work but enjoy their work nonetheless because it gives them the opportunity to design new and unique structures; however, the general feeling is that they work "at" the company but not "for" it. What kind of company culture does this company have?

Fragmented

Who was president of the United States during the Great Depression?

Franklin D. Roosevelt

Derrek Dugan has become the president of DBD Enterprises. He sets up meetings with groups of employees to get their opinions about steps needed to turn around the company's declining sales. This part of the decision-making process is an example of

Generating alternatives

Janet has started an electric car rental business in Sonoma, California. She rents out small electric cars from a parking lot equipped with charging stations. Renters swipe their credit card and driver's license through a meter and after the rental fee is deducted and information collected from the driver's license, the meter opens and the keys are dispensed. To check the vehicle in, the renter presses a button that says, "Vehicle Return," swipes their credit card and license again and deposits the keys in the meter. She has an agreement with a wine country tour company to drop off tour members next to her parking lot in order to entice them to rent from her. So far, her primary business is derived from renting the vehicles to the tour group tourists. She is considering expanding her business by offering day-long tours to sites around the county. She is also considering opening a chain of rentals with the first located near the cruise ship terminal in San Francisco and the others spaced at 60-mile intervals throughout the Northwest wine country. Which answer below best describes Janet's decision-making activities?

Generating alternatives

Randy, an office manager, is overwhelmed with the amount of work he has to do and is considering delegating work to others. Which of the following is a reason that would not prevent him from delegating?

He has few responsibilities and therefore little to delegate.

Ariana has been tasked with purchasing 223 desks for her employer. The desks fall into roughly three categories: desks that can be converted from sitting to standing desks for the accounting department, executive desks with credenzas and matching bookcases, and cubical desks for the secretarial pool. Each department drafted "wish lists" of the components they wanted for the desks. From the information given, what can we best conclude about Ariana?

That she is most likely better informed than consumers and considers a product's quality, its price, and the service provided by suppliers.

Hollister is the human resource manager at his company. He has noted that, while there are many engineers working for his employer, they serve different functions: civil engineers perform different functions from the electrical engineers, or computer engineers. While all need engineering degrees and licensing, the civil engineers need a focus on architecture and building functionality, electrical engineers need an understanding of electrical circuits and an ability to envision a finished product, and computer engineers need an in-depth understanding of not only engineering, but also of software. What part of the employment process is Hollister engaged in?

He is gathering data to create job specifications.

Jenkins is a human resources specialist for his company. This morning he reviewed the tasks performed by the engineers and began writing job specifications, a job description, and a job announcement for a new position in the secretarial pool. What function was Jenkins filling?

He was beginning the recruiting process.

Cloie's Ceramics embarked on a plan to make its ceramics staff happy with their jobs. Cloie had more sinks installed and subscribed to a towel service so employees could use terrycloth towels to dry on after washing their hands. She purchased a hypoallergenic hand lotion and had containers of it available at each wash station. She also had the refrigerator stocked with cold drinks and treats. At the beginning of the year three employees reported they were satisfied with the work environment as it was, the remaining ten employees were dissatisfied. By the end of the year she found that four employees reported they were satisfied with the work environment, two employees were dissatisfied and the remaining seven were not dissatisfied. She was puzzled by these results because she thought employees should be satisfied or dissatisfied and asked you for input. You explained that she has stumbled upon the same results of a famous motivational researcher. Which of the following researchers presented a theory of motivation based on satisfaction and dissatisfaction?

Herzberg

Programmers, engineers, designers, lawyers, and accountants are Google's ______ resources.

Human

Which of the following is an organization's most important resource?

Human

As the price of jeans rises, Jordache is likely to

Increase production thus increasing the supply of jeans

Harold has been hired by Big Chief Auto to collect and analyze data on consumer preferences in services provided and the frequency and type of "up-selling" services or items customers purchased. Harold is thus responsible for what general type of resources?

Informational

Calvin invested $100,000 in the stock market in 2007. In 2008 the market dropped drastically. During the recession, his portfolio lost $50,000 in value even though all of the companies he invested in became liquid assets. Calvin left his money in the market, invested in the same companies he had it invested in in 2007. What is the most likely state of his portfolio today?

It has most likely gained value due to the uptick in the business cycle and economic growth experienced since 2011.

What is the likelihood of a business that is started today still being in operation ten years from now?

It is unlikely because over half of all new small businesses fail.

At what stage in the business cycle do companies become more focused on value in their production decisions?

Recession

Economists theorize that sound fiscal and monetary policy can effectively reduce the time the economy is in the ____ stage of the business cycle.

Recession

The Bicycle Company has been incorporated and Rebekah and Andy have sold stock to 33 other individuals while retaining just over half of the stock for themselves. During a shareholder meeting, the shareholders unanimously agreed that they would like to have the profits and losses passed through to them just like they would in a partnership. All of the shareholders are individuals and citizens of the United States. The Bicycle Company could be converted into a(n)

S-Corp

An organization created by Congress in 1953 to help, counsel, and protect small business is known as the

SBA

Drake has always had difficulty with numbers and never took accounting courses. After two years in business, he is afraid that his books are in such disarray that he will be audited by the IRS and be unable to prove his income and expenses. He has read about the SBA SCORE Association and would like to have a SCORE volunteer mentor him. Which of the following most accurately describes SCORE services?

SCORE personnel provide services to small businesses through the SBA

She has been examining data from her company and discussing its successes and failures with the different division heads and managers. As part of her analysis, she has reviewed the company's strengths and found that it is very good at promotion and meeting clients' specific needs. She has discovered that the company is very slow with delivery and with prompt collection of its receivables. She also discovered that another company is producing goods similar to those produced by New Product, Inc. and is selling them for less money and with a longer warrantee

SWOT analysis

Harry is a farmer in Iowa where he owns a section of land on which he raises corn. The corn is used for animal feed and to produce corn oil. Which of the following best represents the material resources he will use?

Seeds, water, tractor

Satisficing describes solutions that are only adequate and not ideal. At what point in the decision-making process should managers avoid satisficing?

Selecting an alternative

During the hiring selection process, a manager will perform which of the following activities?

Selection

Joshlyn, the manager of the sales department of the business where she works, is going on vacation for two weeks. During a staff meeting, she assigns her clients to different staff members to handle until she returns and gives them the power to answer the clients' questions and solve their problems. What has Joshlyn done?

She has distributed power in the organization by delegation

Mary Beth works for a department store chain. She has a recurring Friday 9 a.m. meeting with her supervisor to review the company's ability to meet the deadlines and goals of the tactical and operational plans she has made. At 5 p.m. daily, she meets with the managers who coordinate and supervise the activities of operating employees to discuss how well the tactical plans she designed are serving the needs of the company. What kind of manager is Mary Beth?

She is a middle manager

Britney and David work as paralegals for the same real estate law firm. Britney has a bachelor's degree in urban planning, a real estate broker's license, a paralegal license, and worked for a developer for five years. Britney was paid a starting salary of $50,000 per. David has a bachelor's degree in English, and is licensed as a paralegal. He also has six years' experience as a real estate agent and spent a year on the staff of the Environmental Protection Agency. He was paid a starting salary of $80,000 per year. Britney and David were discussing their compensation during lunch one day and Britney was quite upset that David was paid so much more than she. What is the issue that has caused Britney to be upset?

She is upset because she feels their education, training, and skills show that they have comparable worth and should be equally compensated.

Maven decides she wants to open a chicken and waffle restaurant. She rents a restaurant that was closed, gets a business license, opens a business checking account, buys dishes, silverware, cups, saucers and supplies; and opens the doors. She does all of the work herself, pays all the bills herself, owns it, and operates it herself. What is the business form she uses to operate her restaurant?

Sole proprietorship

Rebekah, a former barista and bicyclist, loves to cook. She has decided that the best blend of these interests is to open a bicycle repair and bagel shop along a popular bicycle route in Napa, California, named Bikes, Bytes & Bagels. She has enough money to open the business and would like to open it quickly, have complete control over it, and face little government intervention. What business form will she most likely choose for this business?

Sole proprietorship

Janna's deli has traditionally carried salami, pastrami, and ham for sandwiches, but after requests from customers for roast beef sandwiches, Janna started carrying roast beef as well. This indicates a customer orientation because

Janna is developing products that fulfill customers' needs.

Only Real Estate, Inc., Really Real Estate Broker, Inc., and Bigger Builders, Inc. form a business to purchase land to develop and build a strip center in Fort Wayne, Indiana. According to their agreement, the business will operate only until the strip center is built, then the strip center will be sold to Uptown Stores, Inc., an owner and operator of shopping centers across the United States. Once the sale is complete, their business will be dissolved. What type of business have they formed?

Joint venture

Joshua, age 15, knew several professional tennis players who had several tennis rackets and extra tennis gear that had been given to them by their sponsors. They did not use them because they had all they could use. He contacted the tennis players and bought the extra rackets and gear from them. He resold the rackets and gear to individuals through his web page. He saved most of his money and when he had enough money to lease a building, he leased a storefront on a busy street and made it into a sporting goods department store. When he was generating sufficient income from the store he began importing goods from other countries and added these to his sporting goods offerings. He invested his profits in energy stocks which returned a large gain and gave him the ability to start other businesses. By the age of 30, Joshua was a multi-millionaire. In a recent interview, he said he determined at an early age that he would only work for himself and had wanted to have his own business all of his life. Which of the following best describes Joshua?

Joshua is an entrepreneur

Jeeves and Elizabeth would like to form a business that gives them protection from liability but is taxed like a partnership. They have investigated S-corporations but rejected them as having too many government regulations. They should form a

LLC

Melville and Ishmael would like to form a fishing company that limits their personal liability but gives them complete control over its operations and allows them to share profits and losses. They do not mind filing documents with the secretary of state but would like to maintain privacy as well. What form of business would you recommend they utilize for this business?

LLC

Shanice has been reading business publications about different forms of business. She reads that experts believe _____ will become the most popular type of business organization.

LLC

Philippe would like to open a fondue restaurant in San Francisco. He has determined that, due to the large population of upwardly mobile individuals, and the city's reputation for fine dining, the demand for such a restaurant should be high. He has studied the demographics of the area, the competing businesses, the costs of rent, electricity, gas, licensing, insurance, and all of the costs associated with payroll taxes and employee liabilities. He has determined that he can run the business with a minimum of 12 people if the restaurant does not open until 5 p.m. and closes at midnight. After completing all of his costs calculations and subtracting them from his projected income for the first year, he has determined that he will be about five thousand dollars a month short. He had decided to run the business as a sole proprietorship but is now reconsidering this decision. He needs money but he doesn't want to give up any control or go into debt. What would be the best form of business for him to have under these circumstances?

Limited partnership

What is the term given to the finances of a firm that has expenses in excess of its sales revenues?

Loss

Benefits of total quality management (TQM) include

Lower operating costs and higher return on sales and on investments

Melanie, a manager at a contemporary business, wants employees to have more control over their work. She should implement either

MBO or job enrichment

Marilyn and Macy are arguing about the primary financial function of the Small Business Administration. Marilyn argues that the SBA's primary function is to lend money. Macy argues that its primary function is to guarantee loans. Who is correct?

Macy because the SBA's primary financial function is to guarantee loans

Santa Fe Station Hotels and Casinos hire workers for several positions. Which of the following would most likely be paid on a salary plan?

Manager

Thelma has delegated a task to a subordinate and is holding her accountable for the outcomes. Which of the following statements about accountability is false?

Managers delegate accountability.

The line of authority that extends from the highest to the lowest levels of the organization is the

Chain of command

The health of a national economy will have an effect on all of the following except

Changes in productivity

___ laws require that equal compensation be paid for jobs requiring about the same level of education, training, and skills.

Comparable worth

Which of the following is required to retain human resources?

Compensation

Which of the following is a feature of laissez-faire capitalism?

Competition

Fry Bread Inc. is planning a large summer party in Window Rock, Arizona, where sudden summer rainstorms are frequent. The individuals planning the party intend to have all activities held outside in a park utilizing the open-to-the sky park tables for the food. What type of planning is apparently lacking?

Contingency

When a locally owned coffee shop heard that Starbucks may be coming to town, it developed a(n) _______ to establish alternative courses of action they could take if their competitive landscape changed.

Contingency plan

A manager tasked with ensuring that a company reaches set goals by monitoring progress and taking corrective actions to adjust for deficiencies is exercising the ___ function of management.

Controlling

Jay's Hardware received large shipments of flashlights, batteries, and generators just before a massive storm knocked out the power, downed electrical poles, and damaged the power substation in the town where Jay's was located. Power will be off for at least a week. For Jay's this is a(n)

Core compentency

Harlan's Used Autos prides itself on its efficiency and value in delivering vehicles that have had full mechanical reviews by trained mechanics before the vehicles are sold and a detailed list of known defects that have not been corrected provided to each customer. These characteristics can best be defined as Harlan's

Core competencies

Rebekah and her business partner, Andy, are reviewing their business and think they should add a bicycle tour business to their Bikes, Bytes, & Bagels business that will pick up riders at their hotels, take them to the shop for breakfast, and then provide them with a guide, bicycle helmets, transportation for those unable to complete the ride, and a pick-up of the bicycles and riders at the end of the ride to return them to their hotels. Because of the liability and need for more money to buy the vehicles, bicycles, and other equipment for the new business enterprise, they decide that it would be best to form the new business as a ___ named The Bicycle Company.

Corporation

Prior to the 1989 "Velvet Revolution" Czechia was a communist country under the Stalin regime. After the fall of that regime, Czechia enjoyed a market economy. Which of the following is most correct about the Czechia economy?

Czechia had a command economy but now has a capitalistic economy

Marion owns stock in a corporation that builds houses. He read in the finance pages of the newspaper today that the country has experienced two or more consecutive three-month periods of decline in the gross domestic product, that interest rates for home loans remain high, and that unemployment is rising. If you were his stockbroker, would you advise him to sell his stock?

Marion should sell his stock. The signs he has seen show that the country is entering a recession so fewer people will be able to buy houses and the company may become financially unstable.

Marion owns stock in a corporation that builds houses. He read in the finance pages of the newspaper today that the country has experienced two or more consecutive three-month periods of decline in the gross domestic product, that interest rates for home loans remain high, and that unemployment is rising. If you were his stockbroker, would you advise him to sell his stock?

Marion should sell his stock. the signs he has seen show that the country is entering a recession so fewer people will be able to buy houses and the company may become financially unstable

Nancy was reviewing LinkedIn contacts and noticed that in Rafal's profile he said he was a manager responsible for facilitating the exchange of products between his organization and its customers through distribution and advertising. From this she could conclude that Rafal is a(n) ___ manager.

Marketing

Sam's Club stores would most likely be classified as

Marketing intermediaries

Joelle and Adamaris were drinking coffee at a coffee shop with their business classmates and began to discuss Star Wars and the Clone Wars. Joelle said the Clones were mass produced through an analytical process, but Adamaris asserted that they were produced through a synthetic process. Joelle asked Adamaris to define mass production. Select the best answer Adamaris could have given from the options below.

Mass production is a manufacturing process that lowers the cost required to produce a large number of identical or similar products over a long period of time

Theopolis drives a food truck from which he sells Greek food and Greek desserts. He makes all of the food and pastries himself. To make a cake he mixes together in stages: 2 1/4 cups cake flour, 1 cup milk, 6 large egg whites, 2 teaspoons almond extract, 1 teaspoon vanilla extract, 1 3/4 cups granulated sugar, 4 teaspoons baking powder, 1 teaspoon table salt, and 1 1/2 sticks unsalted butter. What is the focus of his conversion process?

Material

Terrence and Solet are walking down the sidewalk in the retail district of their city. Solet has entered all of the 20 clothing stores on the street and shopped in each of them. Terrence notices that there are many clothing stores on the street and more clothing stores further up the street. He also notices that the street is packed with people shopping for clothes. He ponders these facts and thinks about the marketing situation. What kind of market competition is represented by these stores?

Monopolistic

A market in which similar but not identical products are available for sale would be known as a

Monopolistic competition

_____ can be defined as numerical or verbal descriptions that usually result from some sort of measurements.

Data

Mateusz sells cameras from his shop on a main street in his city. He normally sells twenty cameras per month. He has been trying to increase the number of cameras he sells and as a result has improved his advertising, store signage, and utilization of social media to contact potential buyers in the most likely demographic group. Even with all of these efforts, sales have only improved by one camera per month. This month he decided that if he stocks his shelves with four times more cameras and sells them at the same price he is now offering them, he will sell four times more cameras. What is the fundamental flaw in his plan?

Demand for a product is not necessarily increased just because there is a greater supply, in addition, based on his sales, he has no doubt reached the equilibrium price.

Geraldine manages a branch of a large corporation. When she notices a problem, she outlines it, identifies situations that need corrected, and then sends an e-mail to employees in that department asking for suggestions about how to correct the problem. When all of the suggestions have been received, Geraldine summarizes them, and presents them to the employees to choose one to implement. Geraldine uses a ___ form of leadership.

Democratic

Franz has won a scholarship to study economics at the University of Warsaw in Poland for a semester. He must decide by Friday whether to accept or reject the scholarship. He is concerned that Poland may not be as economically advanced as the United States. He researches the country's gross domestic product. What will this tell him about the economic status of Poland?

The gross domestic product (GDP) is a measure of the total dollar value of all goods and services produced by all people within the boundaries of a country during a one-year period. It will let him know the economic well-being of Poland.

The participative leadership style has many advantages, but disadvantages too. Which of the following is a disadvantage of this type of leadership?

The decision-making process is time-consuming

If a report was released that showed using olive oil for cooking dramatically reduced the risk of heart disease in adults, what would be the likely effect on the demand for olive oil?

The demand for olive oil will increase at every price

____ is the most popular form of short-term financing.

Trade credit

Some banks require business borrowers to maintain a compensating balance in the bank on short-term loans; for example, if the bank requires a 20 percent compensating balance and you borrow $50,000, at least ___ of the loan amount must be kept on deposit at the bank.

$10,000

There are approximately ___ businesses in the United States.

28 million

For Jerry's Automobile Parts Fabricating business to qualify as a small business by the Small Business Administration, it can employ no more than ___ people.

500

For Jerry's Automobile Parts Fabricating business to qualify as a small business, it can employ no more than ___ people.

500

Harry's Market has sales revenues of $150,000 during 2014. The market has expenses that totaled $80,000. What is the market's profit or loss amount?

70,000

Janice is the manager of a store who has delegated authority to a subordinate. She has given the subordinate all of the following except

A line position

Godfrey is manager of a computer repair store where he is required to have a great deal of interaction between himself and his workers because new problems arise frequently. He is most likely to have

A narrow span of control

Independence and a desire to determine one's own destiny are some of the entrepreneurs' personal factors in small-business success, others include:

Age and family background

Teri is applying for a job at an accounting office. As part of her interview for the position she has been asked to state the accounting equation. She correctly answers

Assets = liabilities + owners' equity

____ is the most humane form of workforce reduction.

Attrition

John traded five acres on the top of a mountain for two acres next to a lake with lake rights. This is an example of

Barter

____ is a systematic program of reinforcement to encourage desirable behavior.

Behavior modification

Which of the following companies is most likely operating in an oligopoly?

Boeing

A(n) ____ is a carefully constructed plan for an individual starting a business.

Business plan

___ is (are) the most liquid asset.

Cash

_____ is the movement of money into and out of an organization.

Cash flow

Becky's Bagel Restaurant has a statement of cash flows prepared. Which section of the statement will show her payments for food ingredients and wages paid to employees?

Cash flows from operating activities.

Assets and liabilities are presented in a specific order on the balance sheet. Which of the following presents assets in the correct balance sheet order?

Cash, inventory, equipment.

_____ are the two types of stock a company can sell.

Common and preferred stock

___ ownership is (are) the most basic form(s) of corporate ownership.

Common stock

____ have the right to vote on major corporate actions.

Common stockholders

A manager with ___ skills can see the big picture of how the various functions within the organization interact.

Conceptual

Management traits are categorized by skills and functions. Which category would the ability of a manager to think in abstract terms while envisioning the big picture fall into?

Conceptual skills

The biggest consumer of American business is:

Consumers

All of the following are components of total quality management (TQM) except

Continuous monitoring of the bottom-line

Malinda, a sales representative; Thomas, an engineer; Andrew, an accountant; and Betsy, a human resource specialist, are placed in a group to devise new uses and marketing schemes for one of the company's existing products. Malinda is on a

Cross-functional team

____ may include cash, marketable securities, notes receivable, and merchandise inventory.

Current assets

Janet has discussed a problem she is having with her AT&T communications services with an AT&T representative via chat. During the last chat, the AT&T rep writes that the company will be sending Janet a brief survey about the services she received so the company can better address customers' needs and concerns. The rep requests that she complete it and return it. Which facet of total quality management (TQM) is being exercised?

Customer satisfaction

An office supply business is organized by Home/Personal Use, Small Business, Large Business, and Large Institutions. Within each of these divisions, it is organized by finance, marketing, and human resources. The office supply company is organized by ___ then by ___.

Customer; function

____ is money obtained through various types of loans.

Debt capital

When a manager develops a set of possible alternative solutions and chooses one alternative from among that set, he or she is involved in the process of

Decision-making

What is the focus of the study of microeconomics?

Decisions made by individuals

Amelia has identified a problem in the department she manages and has generated alternatives to correct the problem. Next she will

Determine the best alternative

Kelsey has just received her distribution of earning from the stock she has in Chevron. That means she has received

Dividends

In which direction does authority flow in an organization with a matrix structure?

Down and across

In which direction does authority flow in an organization with a matrix structure?

Down and across.

Which of the following is not included in material resources?

Labor

Work performed to produce goods and services is

Labor

What is the name given to the study of how wealth is created and distributed?

Economics

The ___ specifies that men and women who are doing equal jobs must be paid the same wage.

Equal Pay Act

What is the term for the price at which the quantity demanded equals the quantity produced?

Equilibrium

____ is money received from the owners or from the sale of shares of ownership in a business.

Equity capital

When the U.S. government spends more than it receives within a fiscal year, this is called the

Federal deficit

What kind of resource is used when owners of Facebook exchange money for shares of the company's stock?

Financial

In Adam Smith's view, which of the following is the role of government in business?

Furnishing public works

To compare the productivity of Vietnam to India, one should examine their respective:

GDP

Clarence provides overall guidance and leadership for the company where he is employed. He does not provide any specialized function. What type of manager is he?

General

Merit is an accountant who keeps his clients' books according to GAAP. What does GAAP stand for?

Generally accepted accounting principles.

If the CEO of Becky's Bicycles states that she wants to have 50 percent of the bicycle rental business in Sonoma County by 2020, she has stated a

Goal

As a class assignment, business students were told to prepare a business plan for a business they would like to own. Which of the following is something that would not be included in the plan?

Government regulations

Randy, an office manager, is overwhelmed with the amount of work he has to do and is considering delegating work to others. Which of the following is a reason that would not prevent him from delegating?

He has few responsibilities and therefore little to delegate

A businessperson in the early 1980s would have been faced with which of the following problems?

High inflation with high interest rates

Which of the following is a characteristic of a depression?

High unemployment

Sole proprietorships are the most prolific form of business in the United States, however, ___ businesses account for the highest percentage of all sales revenues.

Incorporated

Luis has a trucking company that he would like to expand. To do so he will need more money but does not want to risk any more money of his own. He contacts a lawyer to see if all of the legal requirements have been met to begin the process of

Incorporating

Bill has his own tax preparation and accounting business. He works many hours from January through April, but in May takes a month-long vacation and the rest of the year works part-time. What advantage of a small business does Bill enjoy?

Independence

For U.S. government entities such as the federal government, states, and municipalities to provide services, they collect revenue from

Individuals and businesses in the form of taxes

Barack has been attending a seminar to be a more effective leader. He has learned that leadership is best defined as the ability to

Influence others

Copyrights, trademarks, and patents are

Intangible assets.

Which of the following companies is an example of a manufacturer?

Intel

____ provide the bulk of the data provided for a management information system.

Internal sources

One of the key skill sets of successful managers is the ability to deal effectively with other people, both inside and outside of organizations. These ___ skills allow the manager to relate to people and understand their needs and motives.

Interpersonal

Consolidated Trucking operates in most states of the United States. If it decides to incorporate, which state could it elect to be its state of incorporation?

It could incorporate in any state in the United States

Deja, Dedra, and Kiana work for a large magazine that has largely featured light-skinned women on its cover. During a discussion regarding the fall cover, the women decided that using women from multiple races would be advantageous. They developed a magazine cover that includes women from multiple races and when the magazine was released, more copies were sold than any other edition that year. How has diversity awareness most benefitted this company?

It has broadened the marketing efforts to include a wider customer base which could improve sales.

___ of performance appraisals are used by managers who judge or estimate the employee's performance level and rank employees on a scale.

Judgmental methods

The four basic functions in the management process include planning, organizing, _______, and controlling.

Leading and motivating

____ is a concept built on the idea of eliminating waste from all of the activities required to produce a product or service.

Lean manufacturing

The Great Depression was characterized by all of the following except

Less governmental involvement in business

____ is borrowed money that will be used for more than one year.

Long-term financing

Edward, Julio, and Zachery attended the same college and shared an apartment during their senior year. After graduating from college with degrees in business administration, they started a business consulting partnership. Before the end of the first year, the partners had a disagreement regarding the division of labor, the type of consulting work they should do, and whether to seek small businesses or branch out into large publicly held corporations as well. Which of the following best represents the problem they are experiencing?

Management disagreements

What is the name given to organizations that combine machinery, labor, and raw materials to produce goods?

Manufacturing businesses

What are the characteristics of perfect competition?

Many buyers and many sellers

Which of the following is a material resource for Ford Motor Company?

Paint

If Microsoft purchased Apple, leaving only one company remaining at the conclusion of the purchase, this would be referred to as a(n)

Merger

Faraday is a plant manager for Glass Doors, Inc. which places him in the ___ management level of the company.

Middle

Mary chooses to work only 30 hours a week as an administrative assistant while trying to shield herself from additional responsibilities at work. Mary seems to value

More free time

Perez and Hezron are commissioned textbook salesmen representing their publisher throughout Illinois. Perez has a wife and two children and is the sole provider for his family.

Motivation is the internal process that energizes, directs, and sustains behavior.

Because of disputes between franchisors and franchisees, a program was instituted to arbitrate them. What is the name of that program?

National Franchise Mediation Program

Jack owns a franchise. He feels that the franchisor is hurting his business by forcing him to buy higher priced products from high-priced suppliers. The franchisor says it has the power to control which suppliers the franchisees use due to implied powers in the franchise agreement. Which of the following agencies will most likely arbitrate this dispute?

National Franchise Mediation Program

The ___ and ___ are federal laws that concern themselves with the relationships between a business firm and labor unions.

National Labor Relations Act; Labor-Management Relations Act

___ occurs when expenses exceed revenues

Net loss

When Exxon/Mobil, Shell, and a few other firms dominate the American oil market, this is an example of

Oligopoly

Which of the following countries is considered to have a communist economy?

North Korea

The president of UVW Inc. wrote in the company's quarterly report that the company had five layers in its organizational structure. When he wrote this he was writing about the company's

Organizational height

Of the following, which is considered a basic management function necessary to be an effective manager?

Organizing

Disputes among business associates occur most often in

Partnerships

___ occur(s) when stock and other corporate securities are sold directly to insurance companies, pension funds, or large institutional investors.

Private placement

A large department store is departmentalized by Women's Clothing, Children's Clothing, Men's Clothing, Housewares, Hardware, Home Furnishings, and Electronics. This store is departmentalized by

Product

The attempt by a seller to set its product apart from the competition to obtain limited control over the price of the product is known as

Production differentiation

____ provides the kernel of understanding that leads to the inventions or ideas that are the basis for the creation of most of the goods and services that we enjoy today.

Research & development

Geraldine is an officer at QBT Corporation. How did Geraldine become an officer?

She was appointed by the board of directors

Rebekah has very little money but would like to start a business that will meet the needs of customers. She has reviewed a variety of economic and business publications and found one business area that seems to fit her capital requirements. Businesses in this area employ 86 percent of the nation's workforce. She now just needs to determine the specific type of business in this area she will open. What type of business will she open?

She will open a service business

____ is money that will be used for one year or less.

Short-term financing

___ focused on determining how the work environment affects productivity.

The Hawthorne Studies

What period in American history was ushered in by the factory system?

The Industrial Revolution

In the colonial period, cash crops, primarily tobacco, grown in Virginia were traded almost exclusively with England with the majority of goods being imported into America from England. How have changes in the global market affected U.S. importing today?

The U.S has more trading partners with imports and exports travelling throughout the world

In the colonial period, cash crops, primarily tobacco, grown in Virginia were traded almost exclusively with England with the majority of goods being imported into America from England. How have changes in the global market affected U.S. importing today?

The US has more trading partners with imports and exports traveling throughout the world

What is the best definition of productivity?

The average level of output per worker per hour

Samuel Slater's contributions to the development of American business included, among other things, the use of

The factory system

What is the primary disadvantage of owning a franchise experienced by a franchisee?

The franchisor still maintains a great deal of control

Saul's Store Supplies is selling seafood to Sally's Seafood Shop. Saul is considering whether to extend trade credit to Sally or to require Sally to execute a promissory note. From Saul's perspective, which of the following is not an advantage that promissory notes have over trade credit?

The seller may demand payment from the buyer at any time.

The national debt can be defined as

The total of all federal deficits in the United States

What is the purpose of specialization?

To increase worker efficiency

Which of the following would be included in the gross domestic product of the United States?

Total value of Procter & Gamble products produced in Michigan

__ is (are) the least expensive form of short-term financing.

Trade credit

What are government tax dollars used for?

To purchase products and resources needed to provide services

For total quality management (TQM) to be effective

Top management must make it the top priority and management must coordinate the specific elements of TQM so they work in harmony with each other

___ has a repayment period of 30 to 60 days.

Trade credit

Money invested in small, new, or struggling firms that have the potential to become very successful is called

Venture Capital

___ is money invested in small firms that have the potential to become very successful.

Venture capital

When Microsoft purchased SwiftKey, the maker of a predictive keyboard powered by artificial intelligence, this was an example of a(n)

Vertical merger

_____ is (are) rights held by common stockholders but preferred stockholders do not have these rights.

Voting rights

Tom is reviewing the balance sheet for his business. He notices that to be ordered correctly the accounts should be

assets, liabilities, owners' equity.

In a delegation, the person who ___ the delegation is accountable for the work.

assigns

The Clark County School District is reviewing all of the jobs filled within the district and seeks to thoroughly understand what each job requires. To do this the Clark County School District would first

conduct a job analysis.

Melissa is required to attend a gathering where she will listen to a speech from one of the company board members who has been in the business for 40 years. This form of training and development is called

conference and seminars.

Maurice is reviewing the employee benefit package for a job he is considering applying for. Employee benefits are

nonmonetary rewards.

Planning includes all of the following except.

objective planning

Another name for return on sales is

profit margin.

Daniel and Ashack are outside salesmen for Wholesale Carpets. They have worked very hard to help the company profit because each year, in addition to their salary and commissions, the company distributes a percentage of its profits among its employees. This distribution is called

profit-sharing.

Jerry, the owner of Jerry's Auto, is working out a compensation system for his organization. The ideal compensation system for him to utilize must

provide for employees' needs while keeping labor costs within reasonable limits.

___ involves obtaining required materials, supplies, and parts from other firms.

purchasing

Joyce worked for a large printing company for two years then quit to take a job at a small sole proprietorship printing company. One of the main reasons she may have made the move was.

the ability to build personal relationships with the owners and other employees

All of the following statements about the Sarbanes-Oxley Act are correct except:

the act was passed in 1996.

The purpose of an organizational chart is to reveal

the company's organizational structure.

Charity's Cupcakes has liabilities totaling $59,000 and owners' equity of $124,000, therefore,

the total assets equal $183,000 (Assets = liabilities + owners' equity)

The national debt can be defined as

the total of all federal deficits in the US

Jorge works for a school district as a landscaping architect. He recently underwent a performance review and was given a copy of his performance review report. As a part of the review, his supervisor observed his work and wrote a report of his observations. Jorge wrote a self-evaluation and his co-workers provided reviews of his work as well. All of these reviews were included in the report. After Jorge had time to review the report, he received a phone call from his supervisor who requested Jorge to meet with him the following day regarding the review. If the supervisor is following good performance review policies, why has he scheduled the meeting with Jorge?

The supervisor has scheduled him for a meeting for a performance feedback interview.

Frederick has been reviewing employee files, compensation packages, and other human resource matters to plan for future compensation allocations. Which of the following would he not consider when making a compensation decision?

The wage-cut decision

Kevin is a manager of an auto parts store. To motivate employees to work, he warns them often about losing their jobs. Kevin's actions indicate that his assumptions about employees reflect ___ concepts.

Theory XXX

Daniel, a supervisor at a manufacturing plant, instituted quality circles and encouraged subordinates to meet unit and company goals by working together and self-regulating their activities. Daniel's attitude reflects assumptions underlying

Theory YYYYYYYY

____ is the sales arrangement in which a seller allows a buyer 30 to 60 days to pay for a purchase.

Trade credit

Mr. Smyth will manage employees throughout the northeastern region of the United States. The employees will be of all major nationalities and all genders. In determining his span of control, you should consider which of the following span factors?

Whether the subordinates are physically located far from one another

Mr. Smyth will manage employees throughout the northeastern region of the United States. The employees will be of all major nationalities and all genders. In determining his span of control, you should consider which of the following span factors?

Whether the subordinates are physically located far from one another.

The gross domestic product (GDP) of Finland is $230 billion (2016 est.), with a real GDP growth rate of 0.9% (2016 est.), and GDP per capita of $41,800 (2016 est.). The GDP of Poland is $1.052 trillion (2016 est.), with a real GDP growth rate of 3.1% (2016 est.), and GDP per capita of $27,700 (2016 est.). The GDP of Uganda is $84.93 billion (2016 est.), real GDP growth rate of 4.9% (2016 est.), and GDP per capita of $2,100 (2016 est.). When comparing the gross domestic product (GDP) numbers of these three nations, which of the following conclusions would be appropriate?

While Poland has a higher GDP, individuals in Finland produce more per capita, and Uganda produces less per capita and has the lowest GDP of the three nations

Smyth's Lighting has many completed candelabras, some that have not been started and some that have been partially completed. The partially completed candelabras would be included in Smyth's ___ inventory.

Work-in-progress

At Zappos, employees are informed of the company's values and goals and work to be done, and then permitted to accomplish their tasks without interference from management but with help given whenever needed. Zappos follows a ___ concept of employee motivation.

YYYYYYYYY

When a line manager in an organization encounters issues and turns to a staff member with specialized expertise, the manager gives that individual ___ authority.

Advisory

During lunch at a local pie shop, Fred, a stockholder in SuperSize Industries, Inc., Frieda, an employee of SuperSize, Nick, a SuperSize customer, and Blanche, an elderly woman who lives adjacent to the SuperSize factory, were talking to Evelyn and Aarnold, members of the SuperSize board of directors, about changes in the company's product line. The group gave various suggestions to Evelyn and Aarnold who said they would consider them during the upcoming board meeting. Which of the following best describes the roles of these individuals as they relate to SuperSize?

Each of these individuals is a stakeholder of SuperSize

Dr. Timothy, PhD is the department head for his college's marine biology department. He has conducted research on every continent and published several papers. His work is cited by other researchers throughout the world. In spite of his experience, he is required to take classes in use of technology for educational purposes, applying technology practically in the classroom, and how to make courses accessible to individuals with disabilities. From an employment perspective, what are the additional classes?

Employee training

Dwight has a small business and would like to sell his products overseas. Which of the following organizations can assist him?

US commercial service

When consumers change buying patterns from buying compact discs to buying iPods and iPhones, what are they telling resource owners?

What to produce