Intro to Business Bonus Exam Part 1 (Most Missed Question/Exam Questions)

As the price of jeans rises, Levi Strauss is likely to

increase production and thus increase the supply.

A hardware manufacturer uses total quality management and quality circles to ensure that all employees are involved with and are responsible for quality. By doing this, the hardware manufacturer can eliminate the need for

inspection.

The examination of work in process for the purpose of controlling quality is called

inspection.

A benefit of job specialization is that it

is easier to train new employees.

After six months with the company, Betty's performance was evaluated by a graphic rating form. The ratings for each statement were added together to obtain her total score. In comparison with the other five employees in her unit, Betty received a very good performance appraisal. Betty experienced a(n) ____________________ appraisal method.

judgmental

A computerized system that integrates production planning and inventory control is called

just-in-time record keeping.

Tom's Toothpicks and Don's Doghouses both use lumber as the major input in their conversion processes. Although the input is the same for each factory, the ________________ of the conversion process varies greatly between the two.

magnitude

Suppose a manager at the Rolodex Corporation has recently become aware that employees are taking office supplies home and taking longer coffee and lunch breaks than the personnel policy allows. The manager finds these are widespread practices and wants to solve the problem. The best way to do this would be to

make the corporate culture encourage more ethical behavior.

Sprint employees who sell cellular phones and calling plans are evaluated based on their total sales per hour worked. This is a(n) __________________ appraisal method.

objective

The number of layers in the organizational structure of Dayton Hudson Corporation indicates the company's

organizational height.

The systematic use of reinforcement to encourage desirable organizational behavior is called

behavior modification.

Which form of franchising is the most common today?

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

The most effective form of business organization for raising capital is the

corporation.

Allied Services is a transportation company that operates in most of the United States. If Allied Services decided to incorporate, in which state would it incorporate?

Any state that the company chooses

Activities that increase employee satisfaction such as satisfaction surveys, employee communication programs, exit interviews, and fair treatment are all part of which phase of the human resources management process?

Maintaining human resources

Which of the following statements about accountability is false?

Managers delegate accountability.

_________________ evaluation methods use some measurable quantity as the basis for assessing performance.

Objective

What is the most significant difference between leaders and assembly line workers in regard to affecting the behavior of others?

Power

In Adam Smith's view, which of the following is not the role of government in business?

Regulating business activity

In 1915, Amanda Groves, mother of seven, lost her husband in a horrible industrial accident that could have easily been prevented. Soon after, Amanda decided to take legal action against the company. What obstacle did she likely encounter?

She will find out that court is very expensive, and her chances of winning are extremely slim.

How can the following quotation best be explained: "Stockholders control the activities of a corporation"?

Stockholders elect the board of directors, and this board is responsible for appointing corporate officers who manage the daily business of the corporation.

Karen is the assistant manager of a midsized logistics firm. She believes her manager, Michael, has become carried away with supporting nonprofit organizations and encouraging employees to do community service. What argument would Karen most likely use to turn Michael to her point of view?

The company's time and money should be spent maximizing the owner's wealth, not solving society's problems.

"We are busy producing and marketing profitable products for society to enjoy! Now you want us to provide legal services, day-care centers, and counseling for AIDS victims and alcohol and drug abusers. If we do all these things, what role will the government, church, and family play?" exclaimed the vice president of Milam Corporation. This manager's comments reveal what concept?

The economic model of social responsibility

The manager of a successful local restaurant believes his responsibilities are to provide delicious meals and excellent service, provide jobs, comply with laws and the IRS, and earn a respectable profit on the restaurant. These are the manager's only concerns. What concept does this indicate?

The economic model of social responsibility

Which of the following is an example of a vertical merger?

The purchase of Kentucky Fried Chicken by PepsiCo

In 2001, Susan Scholz was fired from her sales clerk's job at the Walgreens store in North Mall after refusing to work on Sundays. The Christian Reformed Church, of which she was a member, prohibited working on Sunday. Therefore, she did not go to work on those days even though she was scheduled to do so. Ms. Scholz filed a lawsuit against the company because she felt her rights had been violated. Which rights were violated?

The rights to equal treatment in the workplace

Tim Long's first year as unit supervisor for a local manufacturer was quite a challenge. To encourage his subordinates to meet unit and company goals, he instituted quality circles. These circles were then enabled to directly affect unit operations. Tim's managerial attitude reflects the assumptions underlying

Theory Y.

When Hewlett-Packard assumes that employees accept responsibility and work toward company goals and thus also achieve personal rewards, it is using

Theory Y.

You are the executive vice president for Cooper Tire, the sixth largest U.S. tire maker. You have the responsibility to locate land for a new distribution center in Mississippi, and you own over 1,000 acres of land near one site in Tupelo. This could create for you

a conflict of interest.

Best Buy stores would most likely be classified as

a marketing intermediary.

Wesley is a manager in an organization where a great deal of interaction is required between himself and his workers and new problems arise frequently. Wesley is likely to have

a narrow span of control.

When a lumber company takes timber and converts it into lumber, cardboard, and other paper products, the company is using

an analytical process.

When a manufacturer like ExxonMobil refines crude oil, that corporation is using a(n) ________________ process.

analytical

South Carolina is facing budget cuts. The number of employees needs to be reduced over the next three years at all state agencies. The state decides to stop hiring new employees to fill vacated positions to comply with budgetary constraints. This approach is called

attrition.

American Airlines has established a goal of increasing its profits by 12 percent next year. To ensure that the goal is reached, management monitors profits on a monthly basis. After three months, if profits have not increased by 3 percent, management will take corrective action to get the company on track. By doing so, management is carrying out its __________________ function(s).

controlling

The Saudi Arabian government does not allow the consumption of alcoholic beverages within its country. The Saudi Arabian government is imposing a(n)

embargo.

When Russell Meyer started his new job, he was offered a cafeteria plan from which he could choose items such as health care, vision care, child care, life insurance, and membership at the company's gym. This is likely a type of

flexible benefit plan.

IBM satisfies consumers' needs for powerful, easy-to-use laptop computers by converting assorted software routines, hardware devices, and miscellaneous parts into personal computers. By doing this, IBM is creating

form utility.

When 3M satisfies consumers' needs for notepads that will not get lost easily by converting paper and glue into Post-It Notes, it is creating

form utility.

Many small firms seek to establish a particular niche in the market, realizing that they cannot afford to operate on a larger scale without exposing themselves to considerable risk of retaliation from larger companies. When a number of small businesses are operating in this manner, they are forcing the larger businesses to recognize and account for their influence on the market. In this way, small businesses are primarily

fostering competition.

Foreign licensing is similar to

franchising.

Nordstrom sells designer suits made in Italy in its stores in the United States. Nordstrom is __________________ suits.

importing

Suppose France imposes a tax on agricultural products from the United States to help its own farmers. This describes a(n)

protective tariff.

The economic model of social responsibility was developed in a period when the primary concern of firms was

short-run profits and survival.

American Airlines found that for some jobs it was unwise to train workers on equipment used at the work site. Therefore, a special classroom facility was set up for instruction on operating equipment like that found in some departments. By doing this, American Airlines offered ______________________ training for some jobs.

simulation

The HRM specialists at A&C Company took the opportunity to increase productivity and decrease manual data analysis by using their microcomputer along with a commercial database management system (DBMS) to develop a __________________. Now the company can readily identify specific organizational skills, eliminating the need to comb personnel files manually.

skills inventory

The nationalization of key industries in countries such as Sweden and India is indicative of a(n) ________________ economy.

socialist

Tim Garner owns and operates his own small automobile repair shop. However, the prices he can charge are fixed, and he rents his land and building from the government. Most of his friends work for industries owned by the government. Tim's country is most likely a(n) _________________ economy.

socialist

All of the following are disadvantages to the franchisee except

starting a business with limited capital.

Prudential and several other large insurance companies have joined together to underwrite an extremely large insurance policy. This sort of association is referred to as a(n)

syndicate.