Business Law and Ethics Exam

Which of the following is a limit to economic freedom in a private enterprise system:: A. Personal choices B. Private property C. Profit motive D. Pricing systems

A. Personal choices Even though there are many economic freedoms in a private enterprise system, there also are certain limits. We are limited by our own choices. If we choose to buy one thing, we may not have enough money to buy another. We may need to choose which item is more important to us.

Which of the following is the type of action that a business is taking when it continuously monitors the laws that affect its operations for the purpose of minimizing risk: A. Preventative B. Corrective C. Reactive D. Remedial

A. Preventative Businesses must comply with a variety of government regulations. Because regulations often change, it is important for businesses to keep up with changes so they can implement appropriate action, if needed, to stay in compliance. Monitoring regulations is a preventative action because it is taking steps to prevent the negative consequences associated with noncompliance.

What effect do some environmental laws have on businesses? A. Require more employees B. Increase operating costs C. Control exterior landscapes D. Limit equipment purchases

B. Increase Operating Costs Environmental laws are intended to conserve and protect the natural environment. Many of these laws have an impact on the way businesses operate by requiring them to decrease pollution or control waste. As a result, businesses often need to spend money to comply with the rules and regulations, which leads to an increase in operating costs. For example, a business might need to purchase pollution-control devices. .

As the principal in an agency business relationship, Lynn tells Bob to take specific action on her behalf under certain circumstances. What type of authority has Lynn given Bob? A. Temporary B. Provisional C. Express D. Unlimited

C. Express An agent is a person or business that is authorized to conduct certain business activities with third parties on the behalf of another person or business (principal). When the principal provides the agent with express authority, the principal gives specific directions, often in writing, to the agent who is handling certain business matters for the principal. .

A country that can produce a good or service at a lower cost than another country has A. Comparative Advantage B. Domestic Needs C. Absolute Advantage D. International Interdependence

C. Absolute Advantage Countries should trade those products in which they have an absolute advantage.

Cassandra is a buyer for a department store chain. On Tuesday, she placed a seasonal order with an apparel vendor without providing specific models, sizes, colors, or ship dates. Why type of order did Cassandra place? A. Standing B. Special C. Blanket D. Rush

C. Blanket A blanket order is an order that covers all or part of a retailer's seasonal requirements. Blanket orders typically are placed several months before the season and do not contain detailed specifications or shipping dates.

A group of individuals organized by a charter and permitted to form a business that functions as a legal entity is know as a A. Licensing Arrangement B. Partnership C. Corporation D. Sole Proprietorship

C. Corporation Corporations can be complex to form, but they provide protection for their owners because each owner's liability is limited to the amount of his/her investment.

Which of the following statements about protecting digital customers data is true: A. A company's protection of data has a little impact on the customer's perception. B. Protecting digital customer data is a responsibility of the IT department. C. Data protection strategies should be reevaluated often. D. Protecting digital customers data is only necessary for large businesses.

C. Data protection strategies should be reevaluated often. Data protection strategies should be reevaluated often because, as technology changes and hackers become more sophisticated, what was a good strategy five years ago may not be effective today.

A company's cash flow is $1,680,500 its current stock price is $45.50, and there are 570,000 shares outstanding. What is the company's price-to-cash-flow ratio? A. 43.21 B. 29.48 C. 36.93 D. 15.42

D. 15.42 Investors use the price-to-cash-flow ratio to determine the relative worth of a potential investment. A low price-to-cash-flow ratio can be a sign that the stock has been under valued a particular stock, while a high price-to-cash-flow ratio can be a sign that the stock has been over valued.

For successful innovation in the workplace, employees should have a desire to learn and be willing to A. suppress ideas. B. follow procedures. C. exhibit bias. D. accept change.

D. Accept change. Innovation is the process of creating new or more effective products, processes, services, technologies, or ideas. Creating something new requires change. When a business encourages its employees to learn about new processes, customer wants, market needs, and trends, innovation is more likely to occur.

If a message recipient is frowning and has clenched fists, the emotional response that she/he is most likely displaying is: A. nervousness B. sadness C. joy D. anger

D. Anger Nonverbal cues are the elements of communication that use gestures and facial expressions rather than words. Nonverbal behavior can indicate what the sender and/or receiver think about a message. If the recipient responds to a message by frowning and clenching his/her fists, it is likely that the message has made the recipient angry.

Functional specialist, data scientist, and business process managers are __________ positions. A. human resources management B. office management C. general management D. business analytics

D. Business analytics Business analyst, data scientist, and business process manager are all business analytics positions.

What should project managers do to ensure that team members will perform their designated tasks efficiently? A. Provide a team evaluation form B. Ask team members if they like their assignments C. Correct the team members' mistakes for them D. Communicate their roles and responsibilities to them

D. Communicate their roles and responsibilities to them An important aspect of the project manager's role is to communicate to team members their individual roles and responsibilities for executing the project. When team members understand whats expected of them, the project is more likely to run smoothly and achieve its goals.

Which of the following words most accurately describes arbitration: A. Temporary B. Nonconsensual C. Biased D. Confidential

D. Confidential Arbitration is private and not open to the media, so parties may choose arbitration if they want to keep information confidential.

Dealing with shortages of resources is included in the study of A. Private Enterprise B. Marketing C. Sociology D. Economics

D. Economics Economics is the study of how to meet unlimited, competing wants with scarce resources.

What is one reason why many people decide to become entrepreneurs? A. Less responsibility B. Long hours C. Less risk D. Flexibility

D. Flexibility Flexibility is a motivator that attracts many budding entrepreneurs. Entrepreneurs are their own bosses and they are able to decide when and where to work and for how long. Flexibility allows an entrepreneur to control and manage time based on individual needs and desires and on the nature of the business.

When Claire tells her supervisor that she made a mistake on the report that she recently submitted, she is demonstrating A. Adaptability B. Enthusiasm C. Self-Control D. Honesty

D. Honesty Honest people tell the truth, even when it may cause problems for them. By accepting responsibility for her own actions and telling her supervisor about the mistake she made, Claire is being truthful.

Company B's management has determined that it must downsize. Three persons in the customer service department will lose their jobs. Which of the following records can management use to help them determine which employees to keep: A. Inventory records B. Production records C. R&D records D. Human resources records

D. Human resources records A company's human resources records include employee attendance as well as notes (positive or negative) about each employee's performance.

In which of the following situations might it be difficult to give effective verbal directions: A. Employees are focused B. Time is important C. Managers are organized D. Information is complex

D. Information is complex In some situations, it is difficult to give effective verbal directions. One situation is when the information is complex. Managers sometime make the mistake of believing that all directions can be given verbally. However, if the information is complex and requires an extensive explanation, it may be better to provide verbal directions as well as written instructions or diagrams. If the complex information is difficult to understand, employees will be better able to follow the directions if they are presented in several ways.

Althea just received her first paycheck at work. She's excited, but as she looks at her pay stub she gets confused. She wants to know how much money she made in this pay period, but there are so many different numbers. If Althea wants to know how much money will actually be deposited in her bank account, she should look at the A. State tax B. Gross pay C. Federal income tax D. Net pay

D. Net pay The net pay is the amount of money Althea will actually receive after all her withholdings have been taken out. This is the money that will be deposited into her account.

One way to effectively prepare for an oral presentation is to: A. Articulate B. Communicate C. Perform D. Practice

D. Practice Practicing is the best way to prepare for an oral presentation.

Which of the following statements has been edited properly: A. Frank, Gus, and Bob is taking a client out to lunch. B. Roger's weekly sales-volume quota are $8,500. C. Carole is developing a prodect analysis sheet. D. Primary sources may be difficult to find.

D. Primary sources may be difficult to find.

Which of the following is a source of career information that is easy to contact: A. Government agencies B. Employers C. Research institutions D. Relatives

D. Relatives Relatives are often a good source of career information, and they are also easy to contact. Family members may work in various types of professions or industries and be able to explain the job requirements and advancement opportunities.

Many employment applications ask individuals the reason that they left their previous jobs. Which of the following is an acceptable response: A. Disliked the manager B. Structured environment C. Terminated for cause D. Seasonal position only

D. Seasonal position only Many employment applications ask applicants the reason for leaving a previous job. An acceptable answer is because the position was seasonal. Many teenagers work in seasonal or part-time positions and can freely state that they left because their services were no longer needed.

A person who assumes the responsibility and risk of establishing a business is a(n) A. clerk B. customer C. buyer D. entrepreneur

D. entrepreneur Entrepreneur start and operate their own businesses.

One possible downside to choosing overseas suppliers is A. increased taxes. B. increased costs. C. a simpler supply chain. D. increased delivery times.

D. increased delivery times. Most companies want to reduce supply chain costs. Some of them may decide to use overseas suppliers, who often have lower prices and lower taxes. However, using an overseas supplier can often result in increased delivery time and a more complex supply chain.

A business process change would likely be required if a company A. has a profitable quarter. B. goes out of business. C. plans a meeting for Friday. D. merges with another company.

D. merges with another company. An alteration to a company's current business process is considered a business process change. If a company undergoes a significant change, such as merging with another company, it requires a change in business procedures.

The XYZ Company has a committee whose members are appointed for three-year terms to review the company's hiring policies. This committee is an example of a(n) _________ committee. A. multi-functional B. ad-hoc C. volunteer D. standing

D. standing A standing committee is one whose work continues over a long period of time. A committee whose members are expected to serve for three years would be considered a standing committee.

In order to set your personal goals, you must have a clear understanding of A. social responsibility. B. human relations. C. technology. D. yourself.

D. yourself. In order to set goals for yourself, you must have a clear understanding of what your skills and abilities are. You cannot be successful unless you know who you are, what you want to achieve, and what you are capable of doing.

Which of the following situations would supply chain managers encounter during the final stage of supply chain management: A. A customer returns a defective product. B. The company finds reliable suppliers. C. The business plans to deliver goods to customers. D. Managers develop a supply chain strategy.

A. A customer returns a defective product In the final stage of supply chain management, customers may return defective products. Finding reliable suppliers, planning to deliver goods to customers, and developing a supply chain strategy would all occur during earlier stages of supply chain management.

Which of the following is a guideline that an employee should follow when responding to criticism: A. Admit the mistake B. Look embarrassed C. Become defensive D. Ignore the criticism

A. Admit the mistake This is the first step to self-improvement. An employee who becomes defensive, embarrassed, or ignores criticism will probably show little improvement on the job.

Which of the following is a user-owned, nonprofit, cooperative financial institution: A. Credit union B. Commercial bank C. Insurance company D. Savings and loan association

A. Credit union A credit union is a nonprofit financial cooperative set up to provide savings and credit services to its members, who are also the owners of the credit union.

Businesses' profits are at a 30-year low, but consumer savings are at an all-time high. For more than a year, unemployment has also been at record levels. What is the state of the economy? A. Depression B. Expansion C. Recession D. Recovery

A. Depression In an economic depression, consumers often choose to save their incomes due to uncertainty about the future. Many of them also lose their jobs, so there is more incentive to save than to spend.

What do business employees often do to motivate customers to make the decision to buy? A. Explain the advantages B. Listen to questions C. Dismiss any objections D. Offer many substitutes

A. Explain advantages Business employees often need to help customers make the decision to buy. One way to motivate customers is to explain the advantages of purchasing the product. If customers clearly understand the benefits and advantages, they are often motivated to buy.

Which of the following is one type of information needed to compute the gross profit of a business: A. Income from sales B. Net profit C. Market share D. Operating expenses

A. Income from sales Income is the first factor that businesses consider when calculating profit. The gross profit of a business is computed by subtracting cost of goods sold from income from sales.

Which of the following statements is true about strategic planning: A. It involves planning for the next three to five years. B. It involves short-term planning for the next six months. C. It is a supervisory technique for improving employee performance. D. It is used primarily by departments that do not meet company goals.

A. It involves planning for the next three to five years. Strategic planning is long-range planning for the company as a whole and is a responsibility of top-level management.

People need to learn how to adjust to change because A. It is the only constant in life. B. We should help others to change. C. We benefit from making changes. D. It helps us to influence others.

A. It is the only constant in life. In the modern world, people are constantly faced with change. The only thing that doesn't change is that changes will keep happening.

Using a credit card is A. Like getting a free loan if you pay the balance each month. B. A good way to pay for impulsive purchases. C. An inexpensive way to borrow money for an extended period. D. A privilege reserved for working adults.

A. Like getting a free loan if you pay the balance each month. When you pay the balance on a credit card each month, you are getting what amounts to a free loan.

One way in which you can show empathy is by A. Listening carefully B. Offering critical advice C. Limiting contacts D. Asking few questions

A. Listening carefully Listening to others without interrupting is a sign of respect. It shows that you are interested in what they have to say. It also shows you are trying to understand them, and that is an aspect of empathy.

Jessica must develop an analytical report that assesses the product opportunities for 18 to 34-year-old sports enthusiasts in the greater Seattle area. What type of analytical report is Jessica writing? A. Market analysis B. Troubleshooting C. Justification D. Feasibility

A. Market analysis Analytical reports are documents that evaluate issues, opportunities, or problems. A market analysis is a type of analytical report that evaluates a particular market.

What management function is responsible for coordinating resources in ways that maximize efficiency? A. Organizing B. Staffing C. Directing D. Controlling

A. Organizing The organizing function of management focuses on setting up the way the business's work will be done. Organizing involves determining what resources the business needs and how the various resources will work together to accomplish the business's goals in the most efficient ways.

Jack is a computer programmer who is struggling to fix a glitch with his company's new computer network. During a get-together with some friends who also work in technology, Jack brings up his dilemma. His friend Janelle suggests a process that helped her solve a similar problem that she experienced a few weeks ago. Two other friends, Tim and Susan, provide some suggestions as well. In this situation, Jack and his friends are transferring knowledge by A. Participation in a community of practice B. Applying group thinking strategies. C. Forming a strategic alliance. D. Conducting a formal interview.

A. Participation in a community of practice. A community of practice is an informal group that is formed by people who have common interests. In communities of practice, group members share ideas, discuss problems, and brainstorm solutions. By doing so, the group members are transferring their knowledge among themselves. One or all members can capture and record the collected knowledge for future personal or group use.

A realistic vision involves attaining ____________ results A. permanent B. complex C. noble D. conditional

A. Permanent A vision is the future you wish to create. Though visions often develop from abstract dreams, they must be achievable at some point in the future-they must be realistic. Realistic visions yield permanent results.

Jake is researching career trends in the field of accounting. Which of the following sources is most likely to contain the most current, credible information: A. The federal government's labor and workforce website B. An early edition of the Managerial Accounting in Practice textbook C. An online newspaper article written by a well-known compliance expert D. The latest edition of the Insurance News Monthly trade publication

A. The federal government's labor and workforce website when exploring career trends, researchers need to identify credible sources that keep their information up to date. Federal governments often post and regularly update career information on their labor and workforce websites.

Which of the following is a reason that organizations undertake knowledge management: A. They want to ensure that organizational knowledge isn't wasted. B. They know that new knowledge is only created outside the organization. C. They don't value an organizational culture of learning. D. They must follow the laws and regulations of their industries.

A. They want to ensure that organizational knowledge isn't wasted. Organizations undertake knowledge management because they want to make sure that organizational knowledge is available for use, not wasted.

Why do many socially responsible businesses offer their employees benefits such as counseling, retirement planning, and additional training? A. To increase employee satisfaction B. To comply with government regulations C. To promote community involvement D. To improve personal relationships

A. To increase employee satisfaction Many businesses recognize that they have a social responsibility to the overall well-being of employees. They want their employees to be mentally satisfied with their jobs. Many businesses offer benefits such as counseling, retirement planning, and additional training in order to increase employee satisfaction so that employees can focus their attention on work. Businesses do not offer such benefits in order to comply with government regulations, promote community involvement, or improve personal relationships.

To have effective knowledge-management processes, businesses need their employees to have a(n) _____________ attitude. A. Transparent B. Cautious C. Argumentative D. Curious

A. Transparent Knowledge management involves leveraging the expertise, insight, and information of internal and external resources to help an organization achieve its goals. Transparency is the quality of being just as one's seems-trustworthy. When employees have expertise or personal insight that can help the business achieve its goals, they should share their knowledge with their employers.

Which of the following items would a clothing manufacturer classify as raw materials inventory: A. buttons, cloth, and thread B. zippers, sewing machines, and cloth C. thread, zippers, and sewing machines D. cloth, zippers, and shirts

A. buttons, cloth, and thread Raw-materials inventory are goods that are used to make a finished good. Buttons, cloth, thread, and zippers are examples of goods used to make clothing, such as shirts.

Before you analyze the available information to solve a problem, it is important to A. identify and check your assumptions. B. brainstorm possible solutions. C. determine the best solution from several alternatives. D. ask for input from your peers.

A. identify and check your assumptions. An assumption is a thought or idea that you presume is true. In some situations, a person makes incorrect assumptions.

Customer complaints and returns can increase the business's costs by A. increasing interest payments B. increasing list prices C. decreasing trade discounts D. decreasing functional discounts

A. increasing interest payments Business often borrow money in order to buy goods for resale. The longer the period of time money is borrowed, the higher the amount of interest charged on the loan will be.

The local government fined Lenny's Grille because there were 75 more patrons in the facility at one time than legally permitted. In this situation, the business violated a A. maximum capacity code. B. federal property law. C. traffic ordinance. D. construction permit.

A. maximum capacity code. Maximum capacity codes exist to protect a business's employees and customers from harm if an emergency occurs on the premises. If there are too many people in a facility that has only two exits, it becomes more difficult to get everyone out of the facility safely in emergencies.

Luke is a purchasing department employee who must complete his inventory report by 4:00 p.m. on Tuesday. He must also collect bids and place orders for staple items by Wednesday at noon. Because Luke knows that it will take a while to obtain the bids, he decides to start contacting vendors before he begins working on his inventory report. Luke is _________ his workload. A. prioritizing B. delegating C. communicating D. simplifying

A. prioritizing Prioritizing involves ranking things in the order of their importance. When employees prioritize their work, they evaluate several factors, including due dates and the time it will take to complete a task. In Luke's situation, he determined that he needed to start acquiring bids before working on the inventory report, even though the report was due before the bids. Because Luke realized that he had to allow the vendors time to provide the bids, he needed to give them the order specifications promptly.

Statistical findings reveal that the Benson Company earned a 35% net profit on the funds it spent on a project. The statistics provided the Benson Company with information about the business's A. return on investment. B. retention rate. C. sales strategies D. Sales commission rate

A. return on investment The return on investment is calculated by dividing the net profit by the amount spent. This type of information helps the business measure the success of a specific business activity.

Online shipment tracking is one example of __________ affecting supply chain management. A. technology B. globalization C. an economic downturn D. production changes

A. technology Online shipment tracking is one example of technology affecting supply management. This is not an example of globalization, an economic downturn, or production changes affecting supply chain management

Maurice, who is the head of the purchasing department at this company, needs to eliminate one of his vendors. Which vendor should Maurice stop working with? A. A vendor that had a late shipment one time after they installed new equipment B. A vendor with prices that are consistently higher than the competition's bids C. A vendor that lets Maurice tour its plant and even view its financial statements D. A vendor that has been in business with the same president for many years

B. A vendor with prices that are consistently higher than the competition's bids. If a vendor's prices are consistently higher than industry standards, Maurice should think twice about continuing to do business with that company.

Which of the following is an example of an ethical issue related to the business's operations function: A. A salesperson gives a customer a price break on an obsolete item. B. An assistant buyer accepts a gift from a potential vendor. C. A manager obtains shipping information from several transportation companies. D. An assistant supervisor changes the weekly production schedule.

B. An assistant buyer accepts a gift from a potential vendor. Gift giving and receiving is often viewed as bribery. Many businesses implement policies that require their employees to refuse gifts from vendors. Because purchasing is an operations function, buyers and assistant buyers are often exposed to situations in which vendors present them with gifts to obtain business. Therefore it is important for operations employees to understand the company's policies about gift giving and receiving.

What components must "balance" in a balance sheet? A. Income plus expenses should equal owner's equity. B. Assets minus liabilities should equal owner's equity. C. Assets plus liabilities should equal net profit. D. Income minus expenses should equal owner's equity.

B. Assets minus liabilities should equal owner's equity. The balance sheet gets its name from the fact that the figures it presents must balance each other. When the business subtracts what it owes from what it owns. The result should be the same as the owner's equity. This is the total net worth of the business.

If you like rules, directions, and close supervision, you would probably work best with which of the following types of managers: A. Democratic B. Authoritarian C. Laissez-faire D. Interdependent

B. Authoritarian Authoritarian managers like being in charge, creating detailed plans for employees, and handling major work problems themselves.

People may think you're dishonest, nervous, embarrassed, or bored if you A. Talk a lot B. Don't make eye contact C. Use concise communication D. Don't use body language

B. Don't make eye contact Lack of eye contact usually indicates dishonesty, nervousness, embarrassment, or boredom. Eye contact is an important element of body language. Making eye contact with others lets them know that you are listening when they are talking. And when you make eye contact while you're the one doing the talking, you give off a sense of confidence and honesty.

A company with a small budget has lots sensitive customer data on file. If it wants to keep this information safe, what should it do? A. Hire a team of cyber security experts. B. Focus on prevention by training all employees to protect data. C. Save money by only teaching one department to protect data. D. Wait until a breach occurs to develop a protection plan.

B. Focus on prevention by training all employees to protect data. Keeping data safe and protected requires a company-wide focus on security. This means training all employees to use practices that protect customer and company data. This sort of training should be conducted before a breach ever occurs.

Monitors, keyboards, and hard drives are examples of computer A. Servers B. Hardware C. Dashboards D. Standards

B. Hardware These are physical components of a computer system that are necessary for the system to function. They include the central processing unit, hard drive, modem, monitor, keyboard, etc.

To maintain favorable relationships with vendors, a business must A. Use aggressive negotiation tactics. B. Have a cooperative orientation. C. Implement return policies. D. Develop a decentralized buying structure.

B. Have a cooperative orientation. When a business has a cooperative orientation, it is willing to work with other businesses to achieve their mutual goals. Having a cooperative orientation involves a willingness to share relevant information, to negotiate fairly, and to be trustworthy and reliable.

Which of the following is an activity associated with the closing phase of a project: A. Obtaining funds, equipment, and supplies for the project B. Holding a team meeting to evaluate the project's successes and mistakes C. Developing a production schedule for team members D. Determining the appropriate computer technology needs

B. Holding a team meeting to evaluate the project's successes and mistakes Project managers and team members often meet at the end of the project to discuss the things that went well during the project and the mistakes made along the way. Evaluating the successes and mistakes made during the course of the project helps the project manager and team members determine how to improve or better handle similar projects in the future.

Daniela is in charge of moving company data into a new software system. Which of the following is a step she should take: A. Avoid telling employees about the change until it is completed. B. Make sure all the data are saved in a backup location. C. Delete the old software system before installing the new one. D. Schedule the change to occur during a project deadline.

B. Make sure all the data are saved in a backup location. It's important for Daniela to make sure all the company's data are saved in a backup location. If something goes wrong while she's moving the data into the new system, this will help her avoid losing all that information.

One tool that businesses can use to allow employees and customers to share knowledge through their websites is by posing A. Metal tags B. Message boards C. Bots. D. Interesting content

B. Message boards A message board is a page on a website that allows computer users to ask questions and post responses to the questions.

In relation to unexpected events, which of the following is a true statement about project planning: A. Plans should be made right before the project starts. B. Plans should change if necessary. C. Plans should always stay the same. D. Plans should be monitored.

B. Plans should change if necessary. Because events sometimes surprise us, we should change our plans when necessary. Plans aren't set in stone. They should not always stay the same.

Which of the following exemplifies the time value of money: A. Matthew decided to purchase a smartphone from TeleTech.com for the $199.00. B. Rachel placed $250 in a savings account and accumulated $12.50 in interest. C. Sophie estimated that she uses 78% of her income to pay her bills. D. Harrison paid the government $1,508 in property taxes last year.

B. Rachel placed $250 in a savings account and accumulated $12.50 in interest. The time value of money is the difference between the money's current purchasing power in relation to its purchasing power at a future date.

As a manager, Pablo is taking steps to correct a problem that is affecting the business's productivity. Which of the following types of control is Pablo using: A. Preliminary B. Rework C. Contingency D. Functional

B. Rework Control is the management function that monitors the work effort. Because Pablo is initiating corrective action to fix a problem or output, he is engaging in the rework control process. Preliminary control is a form of control in which the manager takes action to prevent problems from occurring.

Which of the following is an example of a business managing its information in an ethical manner: A. The TKN Corporation sells its customer mailing list to third parties without consent. B. The XPB Company takes precautions to maintain the privacy of its clients' information. C. OWC Manufacturing distributes an employee's performance review to his/her coworkers. D. GVZ and Associates deliberately prepares its annual report to confuse readers.

B. The XPB Company takes precautions to maintain the privacy of its clients' information. Businesses collect and maintain information about their employees, clients, and activities, and some of the information may be private or confidential. Businesses have an ethical obligation to protect certain information so it does not become public and cause harm or embarrassment to clients or employees.

Which of the following is a reason that someone might want to settle a legal case: A. To avoid a judge's approval B. To avoid a costly trial C. To damage someone's reputation D. To have a lengthy trial

B. To avoid a costly trial. Many parties opt for settlements because they wish to avoid costly, lengthy trials.

Which of the following is a natural resource that can be renewed through people's efforts: A. Crude Oil B. Trees C. Water D. Mineral Deposits

B. Trees As trees are cut, people can plant new trees so that more timber will be available. Nature replaces oil deposits and minerals over a period of years. Water is replaced by rain.

What is the first thing you need to do when you want to persuade others to take a certain course of action? A. State you case B. Understand your audience C. Express a need or want D. communicate clearly

B. Understand your audience When you are persuading others, you are trying to get them to see things a certain way or to take a certain course of action. Before you can persuade people, you must first know what appeals to them.

A project manager who wants a central location that contains relevant information about each component of the work breakdown structure (WBS) should develop a A. WBS thesaurus B. WBS dictionary C. training chart D. pie chart

B. WBS dictionary A WBS dictionary is a tool that helps inform project team members about the scope, status, and milestones, and deliverables associated with each project activity. The dictionary can be formatted in a variety of ways, such as an organizational chart or an outline. By maintaining and keeping the dictionary in a central location, all team members have access to the information at any time.

Businesses should help employees to prevent accidents and injuries by providing A. a comfortable lounge area. B. a safe work environment. C. attractive furnishings. D. a convenient lunch room.

B. a safe work environment. Accidents and their costs can be reduced considerably if businesses create safe work environments. Unsafe conditions can be prevented more easily than unsafe acts. Therefore, businesses should create safe work environments that prevent their employees from making hazardous mistakes.

Many computer software programs help businesses determine their levels of business risk, which is helpful when they develop A. content theories. B. contingency plans. C. endorsement records. D. monetary regulations.

B. contingency plans. A contingency plan is an alternative course of action. A contingency plan states specific guidelines that a business uses when responding to undesirable circumstances. Businesses often use computer software programs to obtain numerical data about their levels of risk in different areas of the business.

Orderly and systematic behavior is usually logical and directed toward certain A. barriers. B. goals. C. rules. D. people.

B. goals. If you are an organized and logical person, you set personal and career goals for yourself. You may be guided by specific rules, encounter barriers, or interact with other people; but your behavior will still be directed toward your goals.

The Six Sigma framework approaches the quality improvement of existing processes by implementing the DMAIC method, which includes the five steps of defining, measuring, analyzing, A. increasing and counteracting B. improving and controlling C. instigating and correcting D. influencing and collaborating

B. improving and controlling Six Sigma is a quality improvement framework that involves continuously setting higher goals of perfection. It builds upon previous goals to set higher goals that continuously improve the quality of the business's goods, services, or processes. DMAIC is an acronym for the Six Sigma method of improving existing processes. The steps include defining goals, measuring performance, analyzing problem areas, improving the problem areas by eliminating defects, and controlling future performance processes.

Before businesses can effectively use relevant data, they need to determine the type of A. Report that is required. B. Computer system to purchase. C. Information that is needed. D. Collection process to develop.

C. Information that is needed. Information is a collection of facts, statistics, or data. Before businesses can use the information, they must determine the type of information that is needed. For example, does a business need economic data because it wants to expand, or does it want need marketing data because it wants to attract new customers? The business must decide the type of information it needs before it can obtain and use the data.

One activity associated with the directing function of management is A. determining tasks. B. establishing goals. C. instructing employees. D. interviewing applicants.

C. Instructing employees. Directing is the management function of providing guidance to workers and work projects. When managers provide employees with guidance, they are often providing employees with instructions about performing tasks in a certain sequence or manner.

A limitation to the use of project-management software is that it lacks the ability to A. Track changes B. Calculate data C. Make decisions D. Flag information

C. Make decisions Project-management software helps project managers automate, schedule, and track the various project components by computer. If used appropriately, the software can help a project run efficiently. One thing software can not do is make decisions.

Which of the following is a primary staffing consideration when a manager decides to hire a new employee: A. Communication methods B. Investment goals C. Necessary skills D. Reimbursement procedures

C. Necessary skills Staffing is the management function of finding workers for a business. An important aspect of staffing involves hiring employees to do the work.

Which of the following is true statement regarding quality management and the environment: A. Environmental issues have little to no impact on quality management. B. Organizations should regard environmental issues above customer satisfaction. C. Quality-management plans should create environmentally sustainable processes and products. D. Creating quality products is usually harmful to the environment.

C. Quality-management plans should create environmentally sustainable processes and products. Customers and businesses are aware of the need to preserve and protect the environment. Many organizations consider this one of their social responsibilities, and customers expect them to do their part. Quality management should include plans to create environmentally sustainable processes and products.

The ability to quickly and accurately calculate mathematical data is one of the characteristics of a ____________ software program. A. Graphics B. Database C. Spreadsheet D. Word-processing

C. Spreadsheet Spreadsheet software programs are designed to organize, calculate, and analyze mathematical or numerical information. Businesses are able to enter mathematical information into rows and columns, and the software provides accurate calculations in a matter of seconds.

Oriented of a company's new employees usually takes place A. At management's convenience B. Monthly during the first year C. The first day on the job D. At the employee's convenience

C. The first day of the job Orientation is an introductory program for new employees in which they are given basic information about the company and its policies. Orientation should take place as soon as possible after hiring so that employees know enough about the company to feel comfortable and to get off to a good start.

An accounts-receivable employee monitors delinquent accounts by placing them into three folders-30 days past due, 60 days past due, and 90 days past due. How has the employee organized the information? A. Location B. Invoice Number C. Time D. Name

C. Time The system used or the way information is organized often depends on the type of information or task at hand.

What is the primary purpose of managerial planning? A. To evaluate forecasts B. To implement activities C. To prepare for the future D. To change processes

C. To prepare for the future Planning is the management function of deciding what will be done and how it will be accomplished, which is preparing for the future. Preparing forecasts are activities that are often performed during the planning process. Implementing activities and changing processes are part of the managerial controlling function.

When businesses make decisions that are honest and fair, they are being A. patient B. accommodating C. ethical D. generous

C. ethical Ethical behavior in business means doing what is right. This involves making decisions that are honest and fair and that do not harm or take advantage of others. Being ethical is often difficult because it may involve putting others first.

An important factor in building positive customer relations is to give customers A. benefits based on who they are. B. the promise of satisfaction. C. fair and equal treatment. D. a business-oriented approach.

C. fair and equal treatment Receiving fair and equal treatment from a business promotes goodwill with customers. Even customers who disagree with the business may not complain if they feel they received fair treatment.

Sally, Joe, Tim, and Jane are team members who perform different tasks by themselves at the same time to create a single output. The method of work coordination that the team members are using is ___________ tasks interdependence. A. reciprocal B. sequential C. pooled D. reversed

C. pooled Pooled task interdependence involves several employees working independently on different tasks at the same time. When the employees finish their tasks, they combine or pool their individual outputs to create the final output.

Belinda is reviewing departmental reports to determine why the business's outputs have been decreasing steadily over the last six weeks. Belinda analyzing issues related to A. finance B. distribution C. production D. human resources

C. production Business analysis is the process of investigating and evaluating a business issue, problem, process, or approach. Analysis helps the business determine if it is accomplishing goals or if it needs to make adjustments so it can accomplish its goals. Business analyze many types of situations. Production is the process of producing goods and services.

Why is it important for a business to clearly communicate its budget to employees? A. Because employees need to know when they need to adjust the budget. B. So employees know when they should work overtime. C. Because the business is legally required to disclose financial information. D. So employees are aware of their effect on the business's profits.

D. So employees are aware of their effect on the business's profits A budget is an estimate of income and expenses for a specific period of time. A budget is a tool that helps a business to manage its money. A budget should be realistic, well planned, and communicated to employees. Employees need to know how their actions affect the amount of money that flows into and out of the business-how their decisions affect the business's bottom line.

Which of the following is a negative effect that technology has on business: A. Businesses often cut employee-assistance programs. B. Less emphasis is placed on research and development. C. It's more difficult to enter new and foreign markets. D. Some technologies can create pollution.

D. Some technologies can create pollution. Although technology provides many benefits, there are also some negatives, as well.

"I'd like to have that in writing before I give you my money," best describes the _________ customer. A. slow/methodical B. dishonest C. disagreeable D. suspicious

D. Suspicious These customers want facts and proof before making the final buying decision. They tend to question everything you tell them. This skepticism may be the result of bad experiences with other businesses.

Which characteristic of a SMART objective does the following statement exemplify: Phase one of the project will be completed on May 10, 2016? A. Structured B. Realistic C. Motivational D. Time-bound

D. Time-bound SMART is the acronym for specific, measurable, achievable, realistic, and time-bound, which are the characteristics of effective goals. In the example, the goal states that phase one of the project will be done by a specific date, making it time-bound.

Which of the following information should be included in the inside address section of a business letter: A. Message B. Subject C. Date D. TItle

D. Title The inside address section of a business letter should include the addressee's title, which might be both a courtesy title and a job title, if known.

Why is it important for businesses to have efficient production? A. To buy resources B. To remain flexible C. To pay employees D. To be competitive

D. To be competitive Businesses must have efficient production in order to be competitive. Efficient production turns out the maximum number of products at the lowest cost. If the business's costs of production are higher than its competitors' costs, the business will have to set its prices higher than competitor's prices.

Why might a business decide to purchase goods for a price higher than the lowest possible price? A. To arrange flexible contracts B. To spend additional funds C. To satisfy a favorite vendor D. To obtain a needed delivery date

D. To obtain a needed delivery date The people responsible for purchasing should always seek to buy needed goods and services at the lowest possible price, provided that quality, delivery, and service do not suffer.

Why might a business obtain a trademark for its intellectual property? A. To stop the unauthorized use of the business's inventions B. To prevent the publication of the business's written work C. To keep competitors from using the business's manufacturing processes D. To protect the integrity of the business's logo

D. To protect the integrity of the business's logo Trademarks protect unique symbols, designs, or words that businesses use to identify their brands. A business can legally protect its logo from unauthorized use by registering the logo with the appropriate government agency. If an unauthorized entity compromises or uses the logo in harmful, embarrassing, or negative ways, trademark protection provides the business with legal recourse.

Madelyn is responsible for selecting Elite Manufacturing Company's new payroll-processing vendor. Madelyn has narrowed down her selection to three vendors and is favoring Pay Day Enterprises, the small company where her brother works. The primary concern with Pay Day is that is has never handled payroll for a company as large as Elite, which presents a business risk to the manufacturing company. This situation illustrates an ethical issue related to A. the company's structure. B. financial reporting methodology. C. levels of service. D. a conflict of interest.

D. a conflict of interest. Because Madelyn's brother works for a potential vendor, Madelyn may not be able to be objective and neutral when making a final selection for her employer's new payroll-processing provider. When selecting a vendor, it is important to be objective and consider all of the advantages, disadvantages, and potential risks with each candidate. A vendor that has not worked with large companies may not have the resources readily available to provide adequate service. Because Madelyn has a conflict of interest in this situation, she may want to seek input from her managers or formally request that someone else make the final decision.

The Simpson Company is negotiating discount terms with Cornwell Manufacturing, a prospective vendor. During the negotiation, Cornwell states that it is willing to offer Simpson a six-percent discount on orders over $50,000. Although Simpson would rather have an eight-percent discount, it agrees to the terms, hoping to obtain something it wants later in the negotiation. This is an example of a A. position B. withdrawal C. plea D. concession

D. concession A concession is something that one party gives ups during a negotiation. In many situations, one party will give up something that it wants and use it as leverage to get something else that it wants later in the negotiation process.