Business Intro Midterm
Which of the following organizations would be considered a small business?
Wholesaler with 50 employees
Noor manages shipments of components and materials that will be transformed into game consoles for her company. These materials are _______.
raw-materials inventory
BiffCo, a medium manufacturing company, is struggling to remain competitive, especially against lower-cost competitors from overseas. It turns to PricewaterhouseCoopers' Strategy& for advice. In this case, Strategy& best represents which type of resource for BiffCo?
Information
How long is the legal life of a corporation?
It depends on the state of incorporation
Which of the following statements is true about the United States-Mexico-Canada Agreement?
It must be formally reviewed at least every six years to ensure that it remains beneficial to all three nations.
Which of the following specifies a legal requirement of a limited partnership?
It must have at least one general partner.
Which of the following scenarios would not be considered international business?
A bearing manufacturer in South Carolina sells its parts to a Hyundai plant in Alabama.
Which of the following statements about the grapevine is false?
It usually parallels the organizational chain of command.
What is the significance of the term preferred stock?
Its claims on dividends are paid before those of common stock.
What is the difference between a joint venture and a syndicate?
A syndicate is appropriate when no one person or firm is willing to put up the entire amount required for the undertaking.
Which of the following declared that consumers have the right to safety, to be informed, to choose, and to be heard?
John F. Kennedy
Which of the following statements about productivity is false?
Increased productivity can lead to higher manufacturing costs.
Actor Ashton Kutcher regularly invests in promising startups and has a track record of investing in companies that will become successful such as Uber and Airbnb. How would you classify his role in financing small businesses?
Angel investor
Jaime works for a computer manufacturer. According to Jaime, the time required to develop a new product has decreased because of the increased use of _______ software.
CAD
Leo owns stock in Walgreens, a retail pharmacy company. He has the right to vote on company issues and examine corporate records, and he receives dividends from Walgreens's profits. What type of stock does Leo own?
Common
Which of the following is an example of a nation's infrastructure?
Communications networks
By ensuring that products are safe and reliable, the Food and Drug Administration and the Consumer Product Safety Commission are taking part in a movement known as _______.
Consumerism
When did the U.S. government begin to become more deeply involved in business than it had been previously?
During the Great Depression
Elora owns a business making and selling Indigenous craft items on Etsy. What is the primary factor used to determine which set of guidelines will be used to define her business as small?
Elora's resources
A government agency with the power to investigate complaints of discrimination and to sue firms practicing employment discrimination is known as the _______.
Equal Employment Opportunity Commission
A limited partnership must have at least one general partner to be responsible for the partnership's debts. T/F
False
A main disadvantage of a small business is that employees and customers usually develop too close of a relationship. T/F
False
An S corporation can have no more than 20 stockholders. T/F
False
Comparative advantage is the ability to produce a specific product more efficiently than any other nation. T/F
False
Compared to a corporation, a partnership is more difficult and expensive to establish. T/F
False
Corporate officers are elected by the stockholders. T/F
False
Corporations are forbidden by law to enter joint ventures. T/F
False
Managerial decision making involves a four-step process that begins with generating alternatives and ends with selecting an alternative. T/F
False
President Franklin D. Roosevelt declared that consumers are entitled to safety, to be informed, to choose, and to be heard. T/F
False
The equilibrium or market price exists when the supply of a product exceeds the amount that consumers are willing to purchase. T/F
False
The problems associated with the disposal of waste have declined in recent years because of modern technology. T/F
False
The total flow of money into a country minus the total flow of money out of the country over some period of time is called the nation's balance of trade. T/F
False
When machines and equipment do most of the work in a manufacturing plant, it is referred to as a mechanical-intensive process. T/F
False
Which of the following describes an individual who has undertaken full co-ownership of a partnership, including limitless liability?
General partner
Sage wants to start a business to sell handmade jewelry. She is very talented at making jewelry and good at teaching others to make it. She has saved a reasonable amount of money to start a small business. Who of the following would make the best partner for Sage?
Gillian, who has business experience with accounting, management, and marketing
Which of the following would be an effect of restricting the amount of a particular foreign currency that can be purchased or sold in a country?
Limiting the amount of goods importers can purchase with that currency
Which of the following organizational structures offers the clearest chain of command?
Line
Which of the following is the Federal Reserve applying when it lowers the interest rate charged to banks on short-term loans?
Monetary policy
One of the first pro-environment laws that established the Environmental Protection Agency was the _______.
National Environmental Policy Act of 1970
Which of the following items is not a part of planning?
Objective plan
_______ is a market situation (or industry) in which there are few sellers.
Oligopoly
Pax is comparing the estimated market demand with their facility's capacity to produce products to satisfy that demand. Pax has determined that demand and capacity are equal. What action should Pax take?
Operate the facility at full capacity
Which of the following involves subordinates identifying essential goals and developing strategies to reach those goals?
Participative
Ram is at the top of their company's organization chart. Which of the following is most likely to be their job title?
President
Who (or what) actually lends the money for Small Business Administration loans?
Private lenders
Which of the following statements is correct?
Restrictions or not, international business is growing.
The Butler family owns and operates an interior decorating business. Colin installs hardwood floors and chair rails; Tyra reupholsters furniture and takes care of the finances; Levi designs and makes draperies and pillows; and Mila coordinates the overall color, look, and design. The process the Butler family uses to run its business is _______.
Specialization
Which of the following are becoming the dominant means of competing in the automobile and computer industries?
Strategic alliances
Which of the following would you use to determine the extent to which a nation is experiencing economic growth on an annual or quarterly basis?
The GDP growth rate
Which of the following is the largest and oldest regional multilateral development bank?
The Inter-American Development Bank
Which of the following addressed trade related to intellectual property?
The Uruguay Round
Which of the following is likely to cause a firm to decentralize?
The company's environment is complex and unpredictable.
Kamal recently opened a Popeyes franchise and is having some troubles in running the business. Where would you recommend that Kamal go for advice and guidance?
The franchisor
If the demand for curved 4K televisions weakens, what will happen to the price of the curved 4K televisions?
The price will decrease
When creating a corporation, to whom or what do incorporators submit the firm's articles of incorporation?
The secretary of state or appropriate state official
With regard to routing materials, what are schedulers especially concerned with?
The sequence of each step of the production process
Which of the following best characterizes how the government uses tax dollars?
To purchase resources and products needed to provide services
A tariff is a tax levied on a particular foreign product entering a country. T/F
True
Achieving a balance between competing and conflicting goals is called optimization. T/F
True
By definition, every country has a comparative advantage in some product. T/F
True
Monetary policies exert the government's influence on the amount of savings and expenditures by altering the tax structure and changing the levels of government spending. T/F
True
Most organizations use four types of resources: material, human, financial, and informational. T/F
True
Profits of a large corporation are taxed twice, once as corporate income and again as personal income of stockholders. T/F
True
Reducing costs and enabling employees to work more efficiently are at the core of all attempts to improve productivity. T/F
True
Shareholders of an S corporation are taxed as if they were owners in a partnership. T/F
True
The corporation, partnership, and sole proprietorship are the three most common forms of business ownership in the United States. T/F
True
The four basic management functions are planning, organizing, leading and motivating, and controlling. T/F
True
The planning stage of a social responsibility program can involve outside consultants to help develop it. T/F
True
The right to consumer education entitles people to be fully informed about their rights as consumers. T/F
True
What is the most common number of partners in a partnership?
Two
Which of the following would not be included in the gross domestic product (GDP) of the United States?
Value of Pizza Hut's sales for its Tokyo locations
Which of the following is not a right of both common and preferred stockholders?
Voting on changes to the corporate charter
Which of the following best illustrates a core competency?
Walmart's supply chain management and buying power
You are the decision maker for purchasing office equipment in your organization. One sales representative privately offers you season tickets to the Boston Red Sox if you help him out. This tactic is _______.
a bribe
The disadvantages of small businesses include all the following except _______.
ability to keep proprietary information from competitors
Joaquin provides overall guidance and leadership for his hospitality company. Joaquin is a(n) _______ manager.
administrative
A plan designed to increase the number of underrepresented employees within an organization is known as _______.
an affirmative action program
When the U.S. government bars the importation of beef from Argentina into the United States, it is imposing a(n) _______.
an embargo
Business ethics _______.
applies moral standards to business settings
Before DeAndre can incorporate his advertising business in Atlanta, Georgia, he must have _______ approved by the _______.
articles of incorporation; secretary of state of Georgia
Consumers have a right to protest excessive rate increases and safety violations as well as other issues. In doing so, they exercise their right to ________.
be heard
The amount of products or services an organization can produce in a given time is known as _______.
capacity
Demetrius, who founded a successful startup, has often been described as a visionary. He has the ability to think theoretically and to grasp instinctively how all the pieces of his company fit together. Demetrius has _______ skills.
conceptual
Capital or capital goods as recognized by economists would include all the following except _______.
crude oil
If Hawaii State Bank were to assign two of its bank tellers to business merchants and two others to individual accounts, it would be departmentalizing on the basis of _______.
customer
A laptop manufacturer is organized into the following groups: Personal/Home Office, Small Business, Corporate, and Educational Institutions. Within each of these divisions, management is further organized into finance, operations, marketing, and human resources. This company is organized first by _______, then by _______.
customer; function
For health-related companies such as Nutrisystem, one of the most frequent ethical issues related to communications that they face is _______.
deception
Shu, an administrative assistant in the business division of a university, is assigned the responsibility of serving the needs of the division's professors. However, Shu often reads books and surfs the internet during working hours because she has plenty of free time. It appears that the professors in the division have failed to _______.
delegate
Evan left his position as a manager for Dillard's after two years. He complained of being burned out from having to fulfill too many roles and tasks for one position. Evan probably never learned to use the tool of _______.
delegation
Location, product, function, and customer are common bases for a firm's _______.
departmentalization
Research activities undertaken to put new or existing knowledge to use in producing goods and services are called _______.
development and implementation
In the state in which it is incorporated, a business is known as a(n) _______.
domestic corporation
You stop at a KFC to get a chicken sandwich for lunch and you notice that they now have Long John Silver's products in the same building. This is an example of a _______.
dual-branded franchise
Lexi regularly spends an entire working day ensuring that goods and services are produced in accordance with design specifications. Obviously _______ is important in her company.
quality control
To encourage ethical conduct within their organizations, managers should do all the following except _______.
enforce the company's code of ethics haphazardly
Arguments for imposing trade restrictions include _______.
equalizing a nation's balance of payments
Jeep and Tesla vehicles produced in the United States are found in dealerships and on roads around the world. The United States is _______ these automobiles.
exporting
The head of the marketing department at Stagg Enterprises supervises just seven people in their department, and the head of human resources supervises just two people. This would tend to suggest that their organization is _______.
flat
Valero and other refiners emphasize material resources in the conversion process. This implies that the material resources are the _______ of the conversion process.
focus
When 7-Eleven contracts with Oscar to operate an individually owned business as though it were part of the 7-Eleven chain of stores, 7-Eleven is a(n) _______.
franchisor
Green marketers that fail to ensure that their promoted claims are supported by evidence demonstrating a significant environmental benefit may be accused of _______.
green washing
Businesses such as flower shops, restaurants, bed and breakfasts, and automobile repair are good candidates for entrepreneurs because they _______.
have a relatively low initial investment
Luke owns his own store selling motorcycles and all-terrain vehicles and related gear. He notices that many of his customers talk about golf while in his store. He quickly adds golf carts and golf clubs to his merchandise selection. Rapidly adjusting to the needs of his customers is possible because small businesses _______.
have the ability to adapt quickly to change
Bloomingdales sells designer suits made in Italy in its stores in the United States. Bloomingdales is _______ suits.
importing
The _______ factor affecting ethical behavior includes one's personal knowledge, moral values, and central attitudes.
individual
A top executive at a major telecom has a reputation for publicly humiliating subordinates who annoy or disappoint him. This manager obviously needs to improve his _______ skills.
interpersonal
For T-Mobile and Verizon, competition _______.
is a rivalry among businesses for sales to potential customers
Social responsibility _______.
is costly but provides tremendous benefits to society and business
Which of the following is not an industry with fields dominated by small businesses?
manufacturing
An economic system that gives decision-making power about what to produce and what to buy to individuals and businesses, and in which the market determines how much is sold and at what prices, is best called a _______ economy.
market
IKEA strives to create a better everyday life for many people. This notion is best described as IKEA's _______.
mission
All of the managerial activities in which managers engage for the purpose of creating goods and services are known as _______ management.
operations
When people or organizations foul water, air, or land, whether knowingly or unwittingly, the action is called _______.
pollution
Ransom Olds, the founder of Oldsmobile, introduced the first mass production system in which workers brought parts to a vehicle being assembled at a fixed station. Henry Ford soon developed a conveyer system that pulled the vehicle under production along a line from worker to worker. Olds' system can best be described as a(n) _______ while Ford's illustrates a(n) _______.
process layout; product layout
When Tarka, an Indian-food restaurant, determines what different food items it will offer on its menu and how many it will offer, it is deciding its _______.
product line
The main reason there are fewer small businesses in production industries than in distribution or service industries is that _______.
production industries need a large initial investment
Melissa would like to open a small business that is categorized as being in the distribution industry. To do this, she could open a _______ establishment.
retail, wholesale, transportation, or communications
As a scheduler, Grace is concerned with the sequence of workstations through which the materials will flow. This is called _______.
routing
Garnet's responsibility is to ensure that materials used in production are at the right place at the right time. His job involves _______.
scheduling
Leadership differs from management in that leadership _______.
strives for voluntary cooperation from subordinates
The team member who places the team's goals first is fulfilling what role?
task specialist
What is the primary financial function of the Small Business Administration?
to guarantee loans
An unfavorable trade balance is called a(n) _______.
trade deficit
