Business of Fashion Test 2

Which of the following is a duty of a socially responsible organization toward customers? Answers: A. Using strategies such as planned obsolescence for the organization's growth B. Delivering value by providing quality products at fair prices C. Being involved in competitive practices such as collusion and monopoly D. Increasing overhead business costs significantly

Delivering value by providing quality products at fair prices

Which of the following is true of human resource (HR) management function? Answers: A. If the HR department reports to the CFO, it indicates that the department plays a crucial role in the firm. B. Effective HR people remain open to exceptions even as they enforce broad company policies. C. If the HR department reports to the CEO, it indicates that it may be on the fast track to outsourcing. D. Human resources executives need not be aware of the strategic goals of the firm.

Effective HR people remain open to exceptions even as they enforce broad company policies.

Which of the following differentiates wages from salaries? Answers: A. Wages are not regulated by federal law, while salaries are regulated by federal law. B. Top-management employees receive wages, while entry-level employees receive salaries. C. Salaries are paid on the basis of the number of hours an employee works, while wages cover a fixed period, weekly or monthly. D. Employees earning wages qualify for overtime earnings, while salaried employees do not qualify for overtime earnings.

Employees earning wages qualify for overtime earnings, while salaried employees do not qualify for overtime earnings.

_______________ refer to sets of beliefs about good and bad that are shaped by the social group and culture in which an individual functions. Answers: A. Ethics B. Dilemmas C. Morality D. Spiritual values

Ethics

The _________________ expresses the value of one nation's currency in terms of another nation's currency. Answers: 1. Liquidity ratio 2. Exchange rate 3. Discount rate 4. Countertrade ratio

Exchange rate

Brandon holds stock in several different companies. Some of these are in technology companies, others are in entertainment, and still others are in oil and gas. By doing this, Brandon is making an intentional effort to be _____. Answers: A. Strategically aligned B. Professionally managed C. Investing for growth D. Financially diversified

Financially diversified

Tanya Williams, the chief executive officer of Willister Computers, believes that the firm is currently best equipped to enter the Chinese market. The firm offers a small-scale producer in China to produce and market its goods based on the set of specific operating functions and requirements Willister offers to the firm. This is an example of _____. Answers: A. Foreign franchising B. A joint venture C. Direct investment D. A strategic alliance

Foreign franchising

Amsten Inc. is an American firm that manufactures and distributes household appliances. The firm shuts down its production facilities in America and contracts suppliers in China to manufacture its products. This enables Amsten Inc. to drastically reduce its cost of production. Which of the following strategies is the firm using? Answers: A. Exporting B. Foreign outsourcing C. Foreign franchising D. Foreign licensing

Foreign outsourcing

The primary purpose of a written code of ethics in any organization should be to: Answers: A. Differentiate stakeholders and their priorities. B. Meet the legal requirements of the country. C. Give employees the information they need to make morally right decisions. D. Enhance the public image of the organization.

Give employees the information they need to make morally right decisions.

During his tenure as the manager of a large toy store, Barry developed strong technical skills. He will soon be promoted to the position of regional manager for several branches of the toy store. Barry's boss informs him that in this new role, he will need to communicate, coach, and motivate other managers. In this case, which of the following management skills is his boss describing? Answers: A. Processing skils B. Human skills C. Technical skills D. Conceptual skills

Human skills

If Samuel sells his stock in Goodman Corporation on the floor of the New York Stock Exchange, the stock is being traded _____. Answers: A. In the secondary market B. For less than the market value C. For more than the market value D. In the primary market

In the secondary market

Which of the following statements is true about the markets around the world? Answers: A. China has lower gross domestic product (GDP) growth rate than the U.S. B.Most of the developing countries remain ahead of the United States in terms of development and prosperity. C.India's subscriber base for cell phones has grown explosively over the past five years. D.China and India have a smaller opportunity to attract investments because of to their economic growth.

India's subscriber base for cell phones has grown explosively over the past five years.

A(n) _____ is the first time a company issues stock that may be bought by the general public. Answers: A. Direct public offering B. Reverse public offering C. Initial public offering D. Secondary market offering

Initial public offering

Betty and Jacob Smith keep their money in an FDIC-insured institution. They currently have a checking account and a savings account, with funds totaling $240,000. If the bank were to fail, how much of the Smiths' money would be safe? Answers: A. $2,500 B. $240,000 C. $250,000 D. $100,000

$240,000

Dividends to common stockholders of a company are: Answers: A. A tax-deductible expense. B. A legally required payment to the company's shareholders. C. The result of a rise in the market price of the firm's stock in the secondary market. D. A distribution of earnings that are paid only if declared by the company's board of directors.

A distribution of earnings that are paid only if declared by the company's board of directors.

According to the Equal Employment Opportunity Commission (EEOC), which of the following is true of sexual harassment? Answers: A. A person is subjected to it based on his or her gender. B. A harasser is always the victim's supervisor. C. Only women workers can be subjected to it. D. An employee can only be subjected to it by a member of the opposite sex.

A person is subjected to it based on his or her gender.

A __________ is the most common depository institution. Answers: A. Commercial bank B. Savings and loan association C. Credit union D. Not-for-profit organization

Commercial bank

Sharon started her career as a shift leader at Timeline Vintage. Over the years, she moved up the management hierarchy and was recently promoted to a position in top-level management. In her new position, she strategically plans, interprets marketplace trends, and plans for the future of her organization. Which of the following management skills does Sharon demonstrate in her new position? Answers: A. Human skills B. Tactical skills C. Conceptual skills D. Technical skills

Conceptual skills

Copeland Inc. conducts a SWOT analysis to evaluate its competitive position. As a part of the SWOT analysis, which of the following findings is the firm most likely to classify as an opportunity? Answers: A. Copeland Inc. has identified an emerging trend that it can use to enter a new market segment. B. Copeland Inc. provides better employee benefits compared to its competitors and hence attracts the most efficient manufacturing personnel. C. The method used by Copeland Inc. to control the flow of raw materials is used as a standard by other firms. D. Employees at Copeland Inc. can adapt to constant internal change at a rapid pace.

Copeland Inc. has identified an emerging trend that it can use to enter a new market segment.

Tzania, a small developing country, has placed limits on the amount of electronic goods that can be imported from Baria in a year. Tzania aims to encourage domestic industries through this policy. Which of the following trade restrictions is Tzania using in this example? Answers: A. Tariffs B. Trade deficit C. Embargoes D. Quotas

Quotas

John's friend Greg works at a production company. Greg has been worried about his job for a while as his company's stock value is very low and there have been rumors that the company will be shutting down. Last night John found out that Greg is relieved because next week a large corporation is going to buy Greg's company. John decides to invest some money in Greg's company while the stock value is low, because surely it will go up once the news of the acquisition gets out. This is an example of _____. Answers: A. Smart investing B. Loyalty to a friend C. Diversification D. Insider trading

Insider trading

Which statement is NOT true about business ethics? Answers: A. Business ethics are the application of ethical standards in a business setting. B. Business ethics can be different from individual employees' personal ethics. C. It is not critical for business ethics to be available in a written form since employees will automatically understand the ethics in the organization from the behavior of their supervisors. D. Business ethics can be a part of a company's social responsibility.

It is not critical for business ethics to be available in a written form since employees will automatically understand the ethics in the organization from the behavior of their supervisors.

Identify a true statement about exporting. Answers: A. It is ineffective for small and mid-sized companies. B. It is the most basic level of international market development. C. It is colloquially known as foreign outsourcing. D. It means producing products abroad and selling them domestically.

It is the most basic level of international market development.

Identify a true statement about global trade. Answers: A. It reduces a firm's opportunity to tap into growing new markets. B. It offers companies an invaluable source of new ideas. C. It increases the economic risk of multinational companies. D. It increases a firm's dependence on its domestic economy.

It offers companies an invaluable source of new ideas.

Flash Inc. is an automobile manufacturing firm based in Detroit. Which of the following measures undertaken by the firm is most likely to be referred to as affirmative action? Answers: A. It provides job opportunities to people from the minority communities. B. It provides basic safety equipment for all its employees. C. It verifies employment eligibility for all new hires. D. It provides a minimum wage and overtime pay for all employees.

It provides job opportunities to people from the minority communities.

In the context of line-and-staff organizations, which of the following is a difference between line managers and staff managers? Answers: A. Line managers do not have any authority, whereas staff form the primary chain of authority in a company. B. Line managers do not report to anyone, whereas staff managers report to line managers. C. Line managers supervise the functions that contribute directly to profitability, whereas staff managers supervise the functions that provide advice and assistance to the line departments. D. Line managers focus on accounting and human resources, whereas staff managers focus on production and marketing.

Line managers supervise the functions that contribute directly to profitability, whereas staff managers supervise the functions that provide advice and assistance to the line departments.

Unlike the early stock exchanges, National Association of Securities Dealers Automated Quotation System (NASDAQ) has never: Answers: A. Established formal listing requirements B. Used a computerized network to trade securities C. Maintained a physical trading location where dealers meet to trade securities D. Listed stocks of large, well-known firms

Maintained a physical trading location where dealers meet to trade securities

When a stock is traded on the secondary market, the company whose stock is sold will receive... Answers: A. A set percentage of that sale in dollars B. The entire value of that sale in dollars C. A boost in the stock price, thus benefiting the company D. No money whatsoever from the trade

No money whatsoever from the trade

Liza, a trainer, is explaining the formal structure of an organization to a group of trainees. She uses a visual representation for this purpose. In this case, Liza is using a(n) _____ to help employees understand how they and their jobs fit within the broader organization. Answers: A. SWOT analysis B. Operational plan C. Organizational chart D. Network model

Organizational chart

Patricia is the Managing Director of Crimson Electronics, an Ohio-based company. Which of the following, if true, would indicate that she uses a democratic approach to leadership? Answers: A. Patricia does not participate in any of the organization's decision-making. B. Patricia takes into consideration the feedback and opinion of all employees before making a final decision. C. Patricia makes all decisions herself without consulting other managers and employees. D. Patricia conveys broad goals to her employees and then lets them choose their own means of reaching those goals.

Patricia takes into consideration the feedback and opinion of all employees before making a final decision.

__________ is the strategy of deliberately designing products to fail in order to shorten the time between purchases. Answers: A. Market-timing production B. Repurchase-driven marketing C. Planned obsolescence D. Cause-related marketing

Planned obsolescence

Which of the following is a core goal of human resource (HR) management? Answers: A. Maintaining the computer systems and other technology B. Promoting employees' career development C. Increasing employee turnover D. Increasing employee turnover

Promoting employees' career development

Which of the following is an example of an internal recruitment method? Answers: A. Trade associations B. University employment centers C. Newspaper ads D. Promotions

Promotions

In the management hierarchy, _____ includes managers who set the overall direction of a firm, articulating a vision, establishing priorities, and allocating time, money, and other resources. Answers: A. First-line management B. Middle management C. Supervisory management D. Top management

Top management

When the total value of a nation's exports is higher than the total value of its imports, that country has a(n) _____. Answers: A. Absolute advantage B. Trade surplus C. Trade deficit D. Trade embargo

Trade surplus

Lucy works as an accountant at M&S Investment Inc. She discovers that several senior managers at the firm engage in fraudulent activities and misuse clients' funds for speculative purposes. She informs a local newspaper about these illegal activities. This is an example of: Answers: A. Cognitive dissonance B. Whistle-blowing C. Grapevine communication D. Ethical dilemma

Whistle-blowing

Which of the following would be part of the job description for a brand manager? Answers: A. Excellent communication and networking skills B. Excellent communication and networking skills C. Working with product developers and media managers to develop ads D. A minimum of three years' experience managing a brand

Working with product developers and media managers to develop ads

Which of the following is unethical? Answers: A.At Horizon Inc. ethical decision making is expected to follow the top-down approach, where the top management takes the initiative of fostering ethics in the organization. B. RedApples Inc. manufactures toys that they know will break much before their time. 3Ccollaborates with medical clinics and doctors of low-income countries like Ethopia to guarantee low prices. D.Polka, an apparel brand, introduced eco-friendly clothing as a "greener planet" initiative. However, it charges a premium price from its customers.

RedApples Inc. manufactures toys that they know will break much before their time.

Who among the following is most likely to benefit in a case where there is a strong dollar against a euro? Answers: A. Hallinser, an American who exports goods to Europe B. Fieolia Corp., a European firm that imports goods from America C. Joinieker Inc., a European firm with American operations D. Ron, an American who is touring Europe

Ron, an american who is touring Europe

In the context of equal employment opportunities, affirmative action: Answers: A.Seeks to make up for the systematic discrimination of the past by creating more opportunities in the present. B. Refers to policies that increase educational opportunities for minorities but decrease employment opportunities for them. C. Provides equal opportunities for majority groups. D. Is required by law for all companies with 500 or more employees.

Seeks to make up for the systematic discrimination of the past by creating more opportunities in the present.

A systematic evaluation of how well a firm is meeting its ethics and social responsibility goals is known as: Answers: A. Social marketing B. Performance audit C. Social audit D. Business reengineering

Social audit

A clothing company, Patagonia, Inc., pledges one percent of its annual revenue to environmental causes around the world. Founders of the company believe they have an obligation to contribute to the world. This is an example of _____. Answers: A. Moral absolutism B. Green washing C. Ethical relativity D. Social responsibility

Social responsibility

Network Inc, a British software company, is setting up a new firm in India. Nathan, the manager, has arranged a training program where all the employees will be taught two Indian languages and will be introduced to Indian customs, values, and attitudes. This training program is an attempt to bridge the gap in _____ differences. Answers: A. Sociocultural B. Legal C. Economic D. Political

Sociocultural

SeeStreet is a company that produces gourmet coffee. Its employees, coffee bean growers who supply raw materials to the company, people who drink the coffee, and the people who live in the community where the company produces the coffee are called SeeStreet's _____. Answers: A. Benefactors B. Philanthropists C. Self-dealers D. Stakeholders

Stakeholders

Before going public, a firm must file a registration statement with _____. Answers: A. NASDAQ B. A savings and loan association C. The SEC D. A credit union

The SEC

In the context of recruitment, _____ is primarily a tool to reject unqualified candidates, rather than to actually choose qualified candidates. Answers: A. An apprenticeship B. The job application C. The performance appraisal D. An affirmative action

The job application

Carl works as the manager of a functional department at EasyTech Inc. Which of the following describes his span of control? Answers: A. The leadership style that Carl uses B. The number of employees who are under Carl's supervision C. The number of senior managers who are at a higher level than Carl D. The amount of compensation that Carl receives from the firm

The number of employees who are under Carl's supervision

Span of control refers to.... Answers: A. The ability of an individual to work with and through other people in a range of different relationships. B. The process of comparing a company's performance with that of other companies, and then learning how the strongest-performing companies achieve their results. C. The action plans that help an organization achieve its goals by forging the best fit between the firm and the environment. D. The number of people a manager supervises.

The number of people a manager supervises.

What is the difference between an autocratic leader and a democratic leader? Answers: A. An autocratic leader does not make the final decision on any project, while a democratic leader makes the final decision on all projects. B. An autocratic leader issues orders without consulting his/her followers, while a democratic leader issues orders after consulting his/her followers. C. An autocratic leader shares power with his/her followers, while a democratic leader hoards decision-making power for his/her personal use. D. An autocratic leader provides customers with a balance of consistency and flexibility, while a democratic leader provides only consistency.

An autocratic leader issues orders without consulting his/her followers, while a democratic leader issues orders after consulting his/her followers.

_____ refer to noncash compensation, including programs such as health insurance, vacation, and childcare. Answers: A. Salaries B. Commissions C. Bonuses D. Benefits

Benefits