Exam 2

LLC

Tim wants to start a business on his own in a way that will limit both his expense of startup and his exposure to liability. His best choice would be what form of business?

Exercise their authority based on their rank in the organization

Transformational leaders do all of the following EXCEPT:

NOT: only an acquisition involves the board of directors of the target company

What is the difference between a merger and an acquisition?

Achieving competitive advantage

What is the ultimate goal of the process of strategic planning?

Competitors follow each other on price

Which of the following is not true of a market characterized by monopolistic competition?

NOT: generates about half of the GDP in the economy

Which of the following is not true of small businesses in the United States? Small business _______.

Changes in price by one seller influence prices of the other sellers

Which of the following is true of an oligopolistic market?

A project to increase in battery life to extend the range of electric cars

Which of the following would be the best example of a logical response to a technological macroeconomic force?

NOT: Contract manufacturing

According to the model in your text, which of the following has the highest risk and return potential?

Educational

All of the following are forces addressed by the PESTEL model except:

NOT: Repetitive/mundane work

All of the following are reasons why Foxconn employees were committing suicide, requiring the company to install nets on the outside of their buildings except (refers to an assigned video):

Harder to scale

Among the disadvantages to forming a business as a corporation are all of the following except:

Angel

Anna forms a group to code an app to help people donate to charities. She needs funds to promote the application. An investor provides $15,000 in exchange for a 10% stake in the company. The investor hopes to make money by connecting Anna to her network and coaching her on how to succeed. This scenario describes what kind of investor?

Security

David has an awesome idea for a new startup company, but when it came time for him to quit his full-time job to work on this company, he decided to keep the steady income that he currently has. This is an example of what reason that some businesses never get started?

Monetary policy stimulus

Due to the severe negative impacts of the coronavirus outbreak, the Federal Reserve announced expansion of a policy called quantitative easing to pump $1.5 million into the money supply. This move is an example of:

Limited partnership

Eric and Nicole are trying to decide what business form to select for their startup. Eric is too busy with school to do any work, and he wants to protect his life savings, whereas Nicole wants to run the day-to-day and has no assets to protect. The best business form to match their situation is:

job enrichment

JT saw that his employee Meg needed a new challenge, so he assigned her some tasks that JT normally would have done himself. His objective was to invest in Meg's development, making this move ____________.

piecework

Jake lands a job installing the control switches on heaters in a factory. He makes minimum wage plus $1.00 for every switch he installs correctly. The $1.00 incentive portion of his pay is known as ___________.

assistance in personal income tax preparation

Jennifer Schmidt is buying a Cinnabon franchise at the airport in Charlotte. Schmidt knows that she will get all of the following benefits EXCEPT:

either trade bloc or common market

The European Union is a regional group of countries that exists to facilitate free trade among its member nations. It serves as an example of a(n) ____.

Telecommuting

The coronavirus has resulted in many companies instructing their employees to work from home. The term in business for working from outside the office is:

Dividends

Stockholders benefit from corporate ownership by receiving _________________.

Stock options

Beth signs an agreement with her company that gives her the right to buy shares in the company at a specified price for a certain period of time. The document she signed provides her with _____________.

Synergies

Cavani Co. acquired Icardi Group, enabling them to access new markets and reduce costs by eliminating duplicate positions. These benefits realized by Cavani in this acquisition are known as _______.

Celine is guilty of sexual harassment

Celine tells her employee Steve that he would have a better chance for a promotion if he went on a date with her. Steve can report this incident to his superiors because:

commission

Claudia loves her job at the perfume counter at Sachs because she gets a percentage of every sale she makes. That percentage is her _______________.

Benchmarking

Harvard, Wharton, and other top MBA programs willingly share their admissions and placement statistics with publications like US News, who then compile rankings of MBA programs. The information is thus available to all MBA programs and is often used to target areas of improvement. The process described here is a form of ___________.

Whistleblowing

Hez observes that his boss is using company funds to make improvements on her vacation home. He reports the situation to the CEO of the company. In so doing, he has acted under what principle?

Mass Production

If a company wanted to manufacture the same item repeatedly and keep costs as low as possible, it would logically use what production method?

Bolivia would have a trade surplus of $0.6 billion with respect to Ecuador

Imagine that Bolivia and Ecuador trade heavily with each other and that in 2018, Bolivian companies sold $3.4 billion of products to Ecuador, and Ecuadorian companies sold $2.8 billion in products to Bolivia. If these were the only transactions between the two, which of the following would be true?

Crowdfunding

Liz funded her startup on a platform that allowed her supporters to give her money in exchange for small rewards, which increased in value depending on the amount. This form of funding is called _________.

Limited partnership

Maddi starts a business after graduation with financial help from five friends. In the form of business chosen, Maddi has unlimited liability, but her friends do not. The business form must be __________.

Opportunity Cost

Nyle earned $300 mowing grass. He wants the Beats Solo Pro but he also is considering the PS4 Pro. If he buys the Beats, the PS4 will represent the ____________ of buying the headphones.

Make to order

Nyle is a professional bicyclist. Frames for his bike are made by hand to the exact geometry that best suits his body. Based on this description, these frames are made using what production method?

Organizing

One of four functions of management. This one that deals with the allocation of resources to tasks and who reports to who in a business.

To gain access to specialized labor not present within the company

Other than cost savings, which of the following was discussed in chapter 10 as a reason why companies outsource certain aspects of their business?

Just in time

PSG Co. orders parts from their suppliers so that the company can minimize inventory of production material and warehouse space and so that the parts all arrive together at the optimum moment. What inventory management practice is therefore enabled (or used)?

$800

Sharon Midford has invested $800 in the corporate stock of a manufacturer of offshore wind farm equipment. If the company goes bankrupt, the most Midford could lose would be:

Conflict of interest

Sophia leads the purchasing area for her company. A new food supplier for the company restaurant is being sought, and her Mom intends to bid on the business. Which term best describes the situation that Sophia is facing?