final business exam

Question 11 Why has climate change become a major issue for both business and government

The change in climate patterns affects the entire planet. (Although climate change is occurring at a relatively mild pace at the moment, one possible outcome in the future of increased environmental damage is more rapid climate change.)

Question 3 What is the main organizational characteristic of decentralized firms

flat

The U.S. Department of Commerce considers a business "small" if it has fewer than how many employees

500 (The U.S. Department of Commerce considers a business "small" if it has fewer than 500 employees. )

A new business should have enough capital to operate at least how many months without earning a profit

6 (In addition, some experts recommend having enough capital to last one year.)

Which of the following represents the fastest-growing segment of minority business ownership

African Americans (The number of businesses owned by African Americans increased by 60 percent during the most recent five-year period for which data is available. )

Question 18 In perfect competition, which of the following conditions must prevail

All firms in a given industry must be small. (In perfect competition, all firms in a given industry must be small, the number of firms in the industry must be large, and no single firm is powerful enough to influence the price of its product; therefore, prices are determined completely by supply and demand.)

Short and Shearer are two friends who want to begin an entrepreneurship as business partners. They need to decide whether to start up a new business or to buy an existing business. To do this, Short and Shearer need to weigh the pros and cons of each in order to see what the best strategy for them would be. Which of the following, if true, would strengthen the case for Short and Shearer buying an existing business

An existing business would have an existing customer base that Short and Shearer would inherit. (Having an existing customer base would make doing business easier, because they could count on a relatively reliable source of revenue right away. If an existing small business has debts or other difficulties that Short and Shearer would inherit, this would weaken the case for buying it. If Short and Shearer value independence, this means they should be entrepreneurs, but it would not strengthen the case for their buying an existing business over starting their own. If they have a lot of business ideas, this does not strengthen the case for buying an existing business, although it would strengthen the case for them starting a new business of their own. )

8.Which term refers to the pattern of short-term ups and downs in an economy:

Business cycle

Question 16 Which of the following is the MOST likely pricing approach for a monopoly

Charge a price that will not cause consumer demand to drop.

Question 3 Which of the following should be the first step in assessing ethical behavior in a certain situation

Collect facts related to the situation.

Question 1 The video about DuPont concerning zero waste introduced

Composting cafeteria waste and using it for landscaping Recycling countertop waste into landscape stone Repairing shipping pallets to extend their use life, and shredding those not repairable for use as animal bedding All of the alternatives are correct.

Question 4 What is likely the single MOST effective step that a company can take to set ethical standards

Demonstrate support from top management. ( Perhaps the single most effective step a company can take in setting ethical standards is to demonstrate top management support of ethical standards.)

Question 15 When evaluating a decision based on the ethical norm of utility, a manager is MOST likely to consider which of the following questions

Does the decision optimize the benefits for those who are affected by it?

Question 16 When evaluating a decision based on the ethical norm of rights, a manager is MOST likely to consider which of the following questions

Does the decision respect the individuals involved (The ethical norm of rights addresses the rights of individuals involved with the decision and whether the decision respects those individuals' rights.)

Question 14 The CEO of Perry's Pizzeria, a rapidly growing restaurant chain, is committed to a high level of corporate social responsibility along with continued business success. Which of the following would likely be a failure in the area of legal compliance for the pizzeria

Female applicants are not hired for delivery jobs, even when they are capable of performing those duties. (By law, businesses cannot practice a wide variety of forms of discrimination against people in any facet of the employment relationship. Examples in the text include discrimination based on sex, race, and ethnicity.)

Question 20 If, in the long run, international trade improves the standards of living in participating countries, why might some countries want to place trade barriers, such as extra taxes, on imported products

Generating government revenue is often more economically valuable than free trade. (In the course of international trade, jobs are often initially lost in those industries in which a country does not have a comparative advantage. Trade barriers are used as a way to protect these industries from strenuous competition.)

Question 12 Terrell is being considered for promotion from a plant manager to top management. He is unsure whether he is qualified for the position. He wants to ensure that he is an effective manager, and not simply having success in the workplace because of his multiple promotions in the last few years. Although he's never been a top manager, there are some things he does in his personal life other members of the management team think qualify him for the position. What personal activity does management most likely think is a good indicator of whether or not Terrell will be an effective top manager

He juggles being a parent, working as a middle manager, and having personal hobbies, showing an ability to do well in all aspects of his life without going overboard in one or neglecting another.

Question 17 How does monopolistic competition differ from perfect competition

In a perfectly competitive market, the size of the firms must be large. (Individual firms have some control over price in monopolistic competition; in perfect competition, price is determined by supply and demand.)

Question 10 Jordan is a recent college graduate with a degree in computer programming. He has just begun his first full-time job and is excited to apply the skills that he worked so hard to acquire. Though he excelled as a student, Jordan is anxious about how successful he will be as an employee. When an opportunity unexpectedly presents itself to take credit for a brilliant software program that someone else wrote, Jordan does not resist and claims the program as his own. Which of the following statements must be true about Jordan's decision

It raises questions about his personal ethics. (Personal ethics are the guiding principles that help you make ethical decisions in your life. Jordan's decision to take credit for, and essentially steal, someone else's invention reflects questionable personal ethics.)

The video of mercy core introduced:

Micro financing

7.Which of the following exists when an industry or market only has one producer:

Monopoly

Question 18 Tarnopol Learning Services (TLS) offers tutoring to high school students, college students, and adults returning to school. TLS also bids on government-sponsored contracts. TLS's major product offerings include academic tutoring, standardized test preparation, and admissions consulting. Its operations spread over many geographic regions. Currently, the company is deciding whether it should change from its current approach of organizing by geographical area. A senior manager has predicted that if TLS is not profitable this year and fails to develop any new products, the company will switch to either a functional approach or a product approach. Which of the following, if true, would strengthen the argument that TLS should change its organizational structure

New product offerings have been neglected as divisions have focused on traditional revenue sources.

Question 15 In an oligopoly, when one firm reduces its prices, how do other sellers react

Other firms reduce their prices also, usually quite quickly

What type of business has two or more owners who share in the operation of the firm and are financially responsible for its debts

Partnership (Partners may invest equal or unequal sums of money and may earn profits that bear no relation to their investments. )

What type of enterprise is mercy core:

Social Business Enterprise

Question 14 "Teach For America provides a critical source of well-trained teachers who are helping break the cycle of educational inequity. These teachers, called corps members, commit to teaching for two years in one of 39 urban and rural regions across the country, going above and beyond traditional expectations to help their students achieve at high levels. "Teach For America's 20,000 alumni are playing critical leadership roles in the effort to improve the quality of public education in low-income communities. Armed with the experience, conviction, and insight that come from leading children to fulfill their potential, our alumni are working from all sectors to shape our schools, policies, and investments in low-income communities." What objective might Teach For America have, based on this description of its company mission

Teach For America will increase the number of its alumni in leadership positions within school systems across the United States by 10 percent each year.

Question 20 A firm is considering opening a new plant in an existing building at a business park. It is located in the middle of a coal-producing region, which remains visibly blighted by the effects of strip mining. The plant's heating system is based on coal heat, which is locally produced and relatively cheap, reducing the plant's operating expenses significantly. Company engineers note that the plant's roof is ideal for solar panels, which would reduce the firm's future dependence on coal, nuclear, and other conventional sources of energy. However, the cost of installing the panels is considerable and would mean that the new plant would not return a profit to the company for several years. The CEO feels that the panels should be installed. Which of the following, if true, strengthens the ethical standing of the CEO's position

The commitment to "green" and sustainable energy use would lower the company's emissions locally as well as support the development of an alternative power industry. (The issue here is one of corporate social responsibility: how can the company's actions serve or protect the interests of parties other than those directly involved in its business? Therefore, the right answer, as the company's decision to move toward sustainable, renewable energy supports a cleaner local environment as well as national efforts to reduce overall dependency upon fossil fuels. Other choices suggest ways in which the decision will mainly profit the firm)

Question 19 Steve Beatty, the head salesperson of a computer company, contracts with a supplier for technical equipment. Just before the winter holiday, a greeting card comes to his home address from the president of the supplier. In it, he finds a Best Buy gift card worth $500, with a note that says, "Go buy some toys for the kids." His children are excited, because they had been looking forward to getting some newly released video game equipment. Beatty looks at his firm's formal code of ethics and finds that employees are cautioned not to accept gifts from suppliers for their own personal use. It does not specifically say that gifts for family members are included. He decides to keep the card. Which of the following, if true, strengthens Beatty's ethical position

The president of the supplier is Beatty's father-in-law, so the gift is a personal one for his grandchildren. (Introduces a personal relationship between Beatty and the president, thus making the $500 more truly a gift rather than a bribe. Ideally the president of the supplier should have sent the gift card to his daughter, Beatty's wife. Sending it to Beatty, a person with a professional relationship to the supply company, still introduces a conflict of interest that should be avoided by both parties. The other choices all more clearly compromise Beatty's ethical position.)

Question 17 Since the mid-1980s, the Walt Disney Company's strategic planning group turned the company into a huge and diverse collection of media and entertainment businesses. The sprawling Disney grew to include everything from theme resorts and film studios to media networks to consumer products and a cruise line. The newly transformed company proved hard to manage and performed unevenly. So Disney disbanded the centralized strategic planning unit, decentralizing its functions to Disney division managers. Since then, Disney's management has helped it perform strongly in a competitive marketplace. A strategic manager at Disney believes that the video-on-demand unit should be sold because the return it has made on Disney's investment has been below Disney's standards. Which of the following, if true, would MOST weaken the strategic manager's conclusion

Video-on-demand is gaining in popularity over other methods of viewing videos.

Question 16 When conducting a SWOT analysis of an organization, which question can help management brainstorm for the strengths section of the analysis

What does the organization offer that makes it stand out from other organizations?

Question 19 When conducting a SWOT analysis of an organization, which question can help management brainstorm for the weaknesses section of the analysis

What necessary skills do the organization's employees currently lack

Question 18 Which of the following questions would be MOST important to determine the attitude toward risk that prevails in Domino Grace's corporate culture

What procedures does Domino Grace use before deciding whether to proceed with a new initiative

Question 13 Which of the following is an advantage of job specialization

Workers can develop expertise in their jobs.

Question 2 In which of the following is the customer part of the system during service delivery

a high-contact system

Question 7 If PepsiCo sets out to increase its share of the snack food market by 10 percent during the next eight years, what kind of goal is the organization setting

a long-term goal

Question 8 When the finance department aims for a 3 percent increase in return on investment in three years, what type of goal is the organization setting

an intermediate goal

Question 4 What is the power to make the decisions necessary to complete a task called

authority

Question 7 A snack food firm has one division for the United States, one for Europe, and another for Asia. How is this firm departmentalized

by geography

Question 13 Moia is a successful entrepreneur who owns several popular pastry shops. She often imports macadamia nuts from countries with poor economic conditions, which has furthered her desire to help improve the lives of the people living there. How can Moia BEST exhibit corporate social responsibility to the citizens of these nations

by opening pastry shops in these countries that would create jobs for the citizens there (A company that is socially responsible makes ethical decisions in the area of ethical sourcing and procurement, and community and "good neighbor" policies.)

Question 14 Which economic system emphasizes the private ownership of most factors of production

capitalism

Question 8 At McDonald's, most advertising is handled at the corporate level, and any local advertising must be approved by a regional manager. What kind of organization is McDonald's demonstrating

centralized

Question 2 What do the solid lines on an organization chart show in reporting relationships within a company

chain of command

Question 5 Which of the following refers to a person's ability to think in the abstract, to diagnose and analyze different situations, and to see beyond the present situation

conceptual skills

Question 9 What is the term for an activity that may benefit the individual to the detriment of his or her employer

conflict of interest (For example, many companies have policies that forbid buyers from accepting gifts from suppliers since such gifts might be construed as a bribe or an attempt to induce favoritism.)

Question 11 Which of the following measures indicates the prices of typical products purchased by American consumers living in urban areas

consumer price index

What is the main reason why women start new businesses

control in organizing their time (Some 46 percent of woman cite being able to gain control over their schedule as the reason why they are attracted to starting their own businesses. )

Question 10 Comparing actual performance against standards is an example of which function of the management process

controlling

Which form of business ownership generates the MOST sales in the United States

corporation (Corporations generate up to 81 percent of the total sales revenue of all businesses. )

Question 6 What is dividing a store into a men's department, a women's department, and a luggage department an example of

customer departmentalization

Question 15 Jack Welch, former CEO of General Electric, stated, "If you don't let managers make their own decisions, you're never going to be anything more than a one-person business." What style of management is Welch proposing

decentralized management

Question 6 What type of skills requires defining problems and selecting the best course of action to take

decision-making skills

What term denotes a nations basis for allocating its resources among its citizens:

economic system

Which of the following is the MOST significant recent trend in small-business start-ups

emergence of e-commerce ( entrepreneurs who cross over from big business Because the Internet provides fundamentally new ways of doing business, entrepreneurs have created and expanded new businesses faster than ever before. )

What is the point at which the supply curve and the demand curve intersect on a graph:

equilibrium price

Question 2 What are beliefs about what is right and wrong or good and bad called

ethics (Ethics are beliefs about what is right and wrong or good and bad in actions that affect others.)

3.type of manager spends most of their time working with and supervising the employees who report to them

first-line managers

Question 16 At Ace Products, three vice presidents report to the CEO, including the VP for Finance, the VP for Marketing, and the VP for Operations. What type of structure does Ace Products have

functional

10. Which term refers to the total value of goods and services produced with in a given period by a national economy through domestic factors of production:

gross domestic product

Question 4 What type of skills are needed to understand and work well with people in the workplace

human relations skills

Question 12 What is the economic condition characterized by widespread increased prices without increased purchasing power

inflation

Question 7 Which of the following occurs when someone uses confidential information to gain from the purchase or sale of stocks

insider trading

Question 12 What has Rubbermaid used to create and maintain the innovation and flexibility of a small business environment within the large, bureaucratic structure

intrapreneuring

Question 9 Which element of an organization is defined by shared experiences, stories, beliefs, and norms

its corporate culture

Question 13 Starbucks has established itself as the premier marketer of the finest coffee in the world while maintaining its uncompromising principles and continuing to grow. This statement illustrates what aspect of Starbucks' organization

its mission

In the video about Netflix, assigned in Canvas, Reed Hastings said that to be successful, one has to play _______, with the ability to improvise, and play _________ with the ability to strategize

jazz, chess

Two businesses, Rio Books and Devereaux Holdings, collaborate to create and run a new bookselling business. What is this action called

joint venture (Joint ventures abound in numerous industries. Unlike in a strategic alliance, each partner in a joint venture owns a share of the new enterprise. )

Question 11 Steve motivates employees by rewarding them with additional vacation when standards are achieved. This is an example of which function in the management process

leading

Question 11 What type of organization seeks to integrate continuous improvements with continuous employee development

learning

1.Which business constituents analyze their competitive environments and plan, organize, direct, and control the operations of their organizations

managers

Question 17 Which of the following types of structure entails a second chain of command

matrix

2.Which type of manager is responsible for implementing the strategies, policies, and decisions made by top managers

middle manager

Question 9 What is the preferred span of control when jobs are more diversified or prone to change

narrow

Question 17 IBP, a leading meat-processing firm, has a long record of breaking environmental protection, labor, and food processing laws and then trying to cover up its offenses. What type of stance has IBP adopted to social responsibility

obstructionist (Firms who take this stance do as little as possible to be responsible and often go to great lengths to deny or cover up any wrongdoing.)

Question 1 Which term refers to the specification of jobs to be done within an organization and the ways in which those jobs relate to one another

organizational structure

What type of company has stock that is widely held and available for sale to the general public

public corporation (When shares are publicly issued, the firm becomes a publicly held (or public) corporation stock is widely held and available for sale to the public )

Question 19 What is an employee's duty to perform an assigned task

responsibility

What is the major drawback of accepting venture capital

sharing company control (Venture capitalists focus on turning a profit on their investments. In order to better ensure that they do, they typically invest in a business on the condition that they be given some control over the company. )

Question 15 Increasing sales by 4 percent in the next eight months is an example of what kind of goal

short-term

What occurs when the quantity demanded exceeds the quantity supplied:

shortage

Question 8 Which of the following is a way to tell how an organization is doing in meeting its social responsibility goals

social audit (A social audit is a systematic analysis of an organization's success in using funds earmarked for its social responsibility goals.)

Question 18 Tyrone, the president of an architectural firm, was faced with a difficult decision when asked to decrease the portion of his company's budget designated to help construct new homeless shelters. After considering his personal ethics and seeking the advice of coworkers, Tyrone decided he would not cut these funds-even though his decision would mean the company could not immediately move forward on another initiative. Caleb serves on the ethics committee at Tyrone's company. He disagrees with and is upset about Tyrone's decision. Based on this information, which of the following do Caleb and Tyrone most likely disagree about

social auditing (Companies that participate in corporate philanthropy donate some of their profits or resources to charitable organizations. Tyrone and Caleb most likely degree about whether or not the company should practice corporate philanthropy.)

Question 5 What term refers to the way in which a business tries to balance its commitments to groups and individuals in its social environment

social responsibility ( Social responsibility refers to the way in which a business tries to work responsibly within its social environment by benefiting all stakeholders.)

Which of the following legal forms of business is owned and usually operated by a person who is responsible for its debts

sole proprietorship ( About 72 percent of all businesses are sole proprietorships however, they account for only about 5 percent of total business revenues. )

Which of the following types of businesses is MOST common in the United States

sole proprietorships (About 74 percent of all U.S. businesses are sole proprietorships. )

Question 5 At Chaparral Steel, some employees transport scrap steel while others operate shredding equipment. What does this example demonstrate

specialization

Question 10 What authority is based on special expertise and usually involves counseling and advising

staff authority

9.Which term refers to the total quantity and quality of goods and services that people living in an economic system can purchase

standard of living

.What is the MOST significant disadvantage of owning a franchise

start-up costs (Start-up costs are considered one of the most significant disadvantages of owning a franchise )

Who are the owners of a corporation

stockholders (Stockholders are the owners of shares of stock in a corporation)

Question 6 Advertising for which of the following products is MOST likely to have ethical ramifications

swimwear (Laws regulate the advertisement of such items as underwear, condoms, alcohol, and firearms. There are also ethical considerations that extend beyond the legal requirements.)

.What is the price at which the quantity of goods demanded and the quantity of goods supplied are equal:

the market price

Question 20 When McDonald's experimented with a call center in India to process customer orders at drive-through locations, it failed because

the order takers lack of understanding of special orders.

Which of the following will force a sole proprietorship to be legally dissolved

the owner dies (Although the business can be reorganized by a successor, executors or heirs must otherwise sell its assets.)

Question 19 Which of the following BEST describes purchasing power parity

the principle that exchange rates are set so that prices of similar products in different countries are about the same (Purchasing power parity gives us a good idea of what people can actually buy with the financial resources allocated to them by their respective economic systems.)

Which of the following is the MOST significant disadvantage of starting a business from scratch

the risk of failure (There is much greater risk involved in starting a new business from scratch than in acquiring an already-existing business. )

Question 13 What marks the key difference between economic systems

the way they manage the factors of production

What is a major drawback of sole proprietorships

unlimited liability (A sole proprietor is responsible for all debts incurred by the business, which increases the risk involved in doing business. )

Question 1 Which of the following is the ability of a product to satisfy a human want or need

utility

Question 12 What is the term for an employee who detects and tries to put an end to a company's unethical, illegal, and/or socially irresponsible actions by publicizing them

whistle-blower (As whistle-blowers, employees generally contact the media or a particular regulatory agency.)