GEB 1011 Final Chp 1-6

An acquisition occurs when one company purchases another company by buying most of its stock.

True

Basecamp is a company that has a tool for web-project development. It uses developers in India to supplement its U.S. staff because it was less expensive than hiring in the U.S. This is an example of outsourcing.

True

Ben had an iPhone for years, but he had a lot of problems with it. When his contract ended, he bought a Galaxy phone. Ben's buying behavior was influenced a psychological factor.

True

Christy's editing service had some new computers that needed to be hard-wired for faster Internet speed. She offered free editing on her neighbor's master's thesis if he would do the wiring for her. This demonstrates the concept of bartering.

True

Entrepreneurship is the process of creating and managing a business to achieve desired objectives.

True

Every organization has an organizational culture, regardless of size, organizational type, product, or profit objective.

True

Generally, the more shares of stock a company issues, the less income is available for each share.

True

ISO 14000 is a comprehensive set of environmental standards that help organizations committed to sustainability find acceptable global solutions to problems.

True

In double-entry bookkeeping, assets and liabilities are on different sides of the accounting equation.

True

Insider trading is considered a conflict of interest.

True

Kankakee's airport was aging and in dire need of repair, or it would not be able to continue to operate. It needed a new source of income for infrastructure.

True

Labor, money, materials, and energy are all inputs in the transformation process.

True

Laini noticed that one of the sales divisions wasn't performing as well as the others, so she called a meeting of the district managers to determine what the problem was and what could be done about it. Laini was performing the management function of controlling.

True

Marta started her auto body shop with money she had saved from a small inheritance. When she began to have costly equipment issues, she quickly ran out of money. This is a case of undercapitalization.

True

Metrics can be quantitative or qualitative.

True

More U.S. currency is in circulation outside the United States than within.

True

More than 40 percent of the world's population now uses the Internet.

True

Nike and Puma are manufacturer brands.

True

One disadvantage of general partnerships is that the general partners have unlimited liability for the debts incurred by the business.

True

Planning involves forecasting events and determining the best course of action from a set of options or choices.

True

Prosper is a website that matches investors and borrowers with loans.

True

Tasty Beverages promoted its new soft drink to people who were very active and tended to be risk takers. In this case, Tasty Beverages was segmenting its market based on demographic variables.

True

The General Agreement on Tariffs and Trade provided a forum for tariff negotiations and a place where international trade problems could be resolved.

True

The Sarbanes-Oxley Act is an example of how basic ethical and social responsibility concerns have been codified by laws and regulations.

True

The assets and liabilities of a corporation are separate from its owners.

True

The tangible evidence of ownership is a security called common stock.

True

Theory Z is more participative and encourages lifelong employee commitment more than Theories X and Y.

True

Trying to determine customers' true needs is difficult because no one fully understands what motivates people to buy things.

True

Operations management applies to the development of both good and services

True.

The U.S. had a balanced budget in the 1990s.

True. In the 1990s, the U.S. government eliminated its long-standing budget deficit by balancing the money spent for social, defense, and other programs with the amount of money taken in from taxes.

Several employees in a well-known corporation, CarCorp, were arrested for intentionally selling defective car parts to their customers. Scandals like this

Undermine public confidence in coporations

Which of the following markets is most likely to be a monopoly?

Utility Companies

Some companies use ________ as internal tools for teams working on projects that require a great deal of documentation.

Wikis

Theory Z was first described by

William Ouchi

Arnold approached a bank to get a loan for a business he planned to launch later that year. He explained his business idea and its capital requirements to the bank manager. The manager asked Arnold to provide a formal document that included a rationale for the business, an explanation of how it will achieve its goals, an analysis of the competition, and estimates of income and expenses, among other information. Which of the following documents does the bank expect from Arnold in this scenario?

a business plan

Every month, Charlotte receives a bill in the mail from her mortgage company. By the first of each month, she must send back her payment along with the bottom part of the bill, which includes her account information and the amount enclosed. She pays these mortgage bills using a form of payment that is essentially a written order to her bank to pay the mortgage company the specified amount from the money in her bank account. What form of payment is Charlotte using in this scenario?

a check

Miranda runs a small backyard horse boarding stable. When her truck broke down and needed to be replaced, she went to the bank to take out a home equity loan, which allowed her to borrow money against the appraised value of her home. Which type of bank would Miranda most likely go to for this type of loan?

a commercial bank

An organization that creates many products with similar characteristics using assembly lines would most likely be categorized as ________ organization.

a continuous manufacturing

North Farm Society is an association of farmers from rural communities. Its agenda is not to make profits but to help its members market their produce and purchase large quantities of fertilizer, seeds, and other supplies at discounted prices. Thus, North Farm Society is an example of

a cooperative.

When Fly Away Airlines needed to purchase some expensive airplanes to expand its business, which of the following institutions would the company most likely turn to for help financing this purchase?

a diversified firm

Since Eva has decided to use her savings to purchase the rights to own and operate a McDonald's outlet rather than starting her own restaurant, she is most likely to be

a franchisee.

Michael Wong and Sanjay Patel, both lawyers, start a law firm together. Both of them have unlimited liability for the debts of the business, and the management of the firm is equally shared between them. This law firm is an example of

a general partnership.

Alejandro owns a gluten-free bakery. In addition to being the owner, he also serves as the manager, sales force, head baker, shipping and receiving clerk, bookkeeper, and custodian. Alejandro is the first person to arrive at the bakery every morning and the last to leave every night. Which of the following is the most applicable challenge Alejandro faces?

a high stress level

Jeremy wants to open a new bank account. He is looking for an account with a good interest rate that he can mostly use for savings but that he can also write a few checks from each month to pay his mortgage and utility bills. Which type of account would Jeremy most likely open?

a money market account

Judy has realized that she does not like working for others. She wants to open a business in which she will have maximum control and the least interference from government regulations. Which of the following forms of business is best suited for Judy's needs?

a sole proprietorship

Catalina owns a small restaurant and is solely responsible for its debts and liabilities. She is also entitled to all the profits the restaurant makes after paying off taxes and other expenses. Her business is an example of

a sole proprietorship.

IMagicCards.com is a website that allows its members to trade their Magic: The Gathering cards with other members. Since the website's founders do not trust the value of money in relation to the cards, they require members to use only Magic cards as currency rather than money. Which characteristic of money does this scenario best relate to?

accetability

Unlike tangible goods, services are effectively

actions or performances that must be directed toward the consumers who use them.

In the context of digital communication, ________ is the ability of a marketer to identify customers before they make a purchase.

addressability

Which of the following best illustrates an organization's efforts toward sustainability through its manufacturing and operations systems?

adopting 100-percent wind-powered electricity

Which of the following modes of transportation offers speed and a high degree of dependability but is the most expensive?

air transport

Marketing activities best create value by

allowing individuals and organizations to obtain what they need and want

A mining company in Malyia that possesses the only mine where a specialty ruby can be found has

an absolute advantage

Matt lives in an apartment in New York. Every month, he must pay rent and utilities to stay in his apartment. This is an example of ________ action.

an operating

Actual performance of a service provider's product typically occurs

at point of consumption

Carlos is a manager at a men's clothing store. He is very particular about how things are done, right down to how the shirts are folded and the positioning of the mannequins. He uses his authority and economic rewards to get his employees to comply with his directions. What type of manager is Carlos?

autocratic

Ramlin traded his tablet PC to a friend for a cellphone. Since both were of the same value, there was no exchange of money. Which of the following concepts does this scenario illustrate?

bartering

Elliott owns and operates a small farm that produces vegetables and fruits. His friend Marcus owns and operates a butcher shop that sells various kinds of meat. Elliott often gives Marcus vegetables and fruits in exchange for meat, and vice versa. This scenario best describes

bartering.

Healthy Foods, Inc. started using a new experimental sugar substitute in its products. However, it didn't include that this sugar substitute could cause dizziness and nausea anywhere on its packaging. This is a violation of the consumers' right to

be informed

___ are web-based journals in which writers can editorialize and interact with other Internet users.

blogs

Brenda manages a flower shop. Recently, the flower shop has had trouble competing with the local grocery store's florist. Brenda wants to develop a list of possible courses of action to draw more customers to her shop, so she gathers her team. They discuss the issue and suggest ideas to solve the problem. This is called

brainstorming.

Jancy and Kevin are competing for a promotion. Hoping to sway her manager to promote her over Kevin, Jasmine gives her manager an expensive watch. This is an example of

bribery

Which of the following is associated with a hostile workplace when a person or group is targeted and is threatened, harassed, belittled, verbally abused, or overly criticized?

bullying

Cheryl is an investor who purchases stock using credit. If the Federal Reserve Board lowers the margin requirement on buying stock with credit, what would Cheryl be likely to do?

buy more stock

In the manufacturing sector, small businesses sometimes have an advantage over large firms because small businesses

can customize products to meet specific customer needs and wants.

A money market account differs from an interest-bearing checking account in that the owners of a money market account

can write only a limited number of checks each month.

Compared to service providers, manufacturers are generally more

capital intenstive

________ is usually preferred when the decisions of a company are very risky and low-level managers lack decision-making skills. Specialization

centeralization

________ are preferred over currency for many transactions due to their lower risk of loss.

checks

The warning on cigarette packages about the health implications of smoking is an example of which element of fairness and honesty?

communications

The European Commission investigated Google to determine whether it promoted its own search results over those of other search engines in spite of their relevance. The aspect of fairness at issue here is

competition

In a Socialist economy,

competition is restricted in major industries.

Generally, when a retailer announces a discount sale on all its products

consumers will demand more products

BagsGalore.com, a leading online retailer, uses the services of Data Safe Inc., a small startup that helps companies manage and keep their electronic data safe. This helps BagsGalore.com keep a backup of its proprietary information in case of virus attacks or any sort of damage to property. This is an example of

contingency planning.

________ permit website operators to track how often a user visits the site, what he or she looks at while there and in what sequence, and also allow web users to customize services and content.

cookies

Which of the following is one of the most common factors that executives give for an increase in turnover?

A lack of transparency among company leaders

U.S. exports to China have been rapidly increasing but not fast enough to offset the imports from China. This means that the United States has

A trade deficit

Effective promotional positioning uses promotion to

create and maintain an image of a product in buyers' minds.

Employees of a local school conduct their financial transactions through a financial institution, which is also owned by them. This financial institution is most likely to be a(n)

credit union.

Auto Corp. released an advertisement showing fair-skinned people driving their cars into an indigenous Malyian village while the indigenous people watched in awe. Malyian activists claimed this ad reinforced negative stereotypes of the indigenous people and called for their government to issue sanctions against Auto Corp. This is an example of a(n) ________ barrier.

cultural

Paresh is on his way to a concert, and he wants to deposit his paycheck, get cash, and check the balance of his bank accounts. Which type of electronic banking will he most likely use to complete these activities?

ATM

Carlos speaks fluent Spanish, and English is his second language. When communicating with his colleagues, Jennifer and Kim, he uses words that are normal in his language, but they consider them to be profanity. What does this exhibit?

Abusive behavior is difficult to assess and manage.

All of the following are examples of multinational strategy EXCEPT

American clothing companies use social media sites to connect with global customers.

Which of the following is an advantage of a corporation over a partnership?

As a legal entity, a corporation can enter into contracts without as much difficulty as a partnership.

Managers at Sprocket Inc. have recognized declining sales on their water purifier and must decide what has to be done to improve it. Which of the following would be their next step?

defining the situation

U.S. money includes subtle colors in addition to the traditional green, as well as enhanced security features, such as a watermark, security thread, and color-shifting ink. Which of the following characteristics of money is being protected by these measures?

difficulty to counterfeit

A model of inventory management that identifies the optimum number of items to order to minimize the costs of managing them is called the ________ model.

economic order quantity

Gwendolyn manages a resort boutique. Her goal is to run this business in such a way that she achieves the desired result, providing her customers with the items they need to enjoy their vacation. Thus, her primary managerial concern is

effectiveness.

What is the rationale for specialization?

efficiency

If a manager is concerned about accomplishing the work with the least cost and waste possible, then his or her primary managerial concern is

efficiency.

Derek borrowed $50,000 from his mother for his new business venture. He promised that she would be a partner in the business and would be entitled to a significant percent of profits from the business at the end of the year. This is an example of

equity financing.

According to ________, how much people are willing to contribute to an organization depends on their assessment of the fairness of the rewards they will receive in exchange.

equity theory

A hair dryer manufacturer produced a new model that could dry a person's hair in under five minutes. When customers used this hair dryer and experienced scalp and hand burns, the manufacturer was required to create and enforce detailed plans to prevent future burns. This example relates to

fairness and honesty

A need is the satisfaction of a goal.

false

Service businesses are too varied to incorporate quality standards.

false

Abigail is an animal lover and vegetarian. Frustrated by trying to find vegetarian substitutes for commonly needed items, she has started her own vegetarian boutique. Her store sells vegetarian food, shoes, toiletries, and many other items. Which advantage of small-business ownership is this scenario most closely related to?

focus

Kevin works for the Internal Revenue Service. His main responsibility is rooting out evidence of cooked books at major companies. Kevin is a ________ accountant.

forensic

A market orientation requires organizations to

gather and use customer information to help build long-term relationships with customers

Steven opened his own Quiznos franchise in his community. He is pleased with how quickly he was able to open his franchise and that he was able to establish a good customer base from the start because of name recognition. However, since he started this business to be his own boss, he is likely to

get frustrated with the restrictions of the franchise.

The European Union passed a law that requires companies to

get users' consent before using cookies to track their information.

Which of the following is a part of informal communication channels?

gossip

Which of the following statements is true of bookkeeping?

Bookkeeping is much more mechanical than accounting.

Which of the following is likely to be a reason for some U.S. companies to bring their outsourced production processes back to the United States?

high costs of transporting products to the home country

Razor, Inc. and Tyros, Inc., two automobile companies, merged, reducing the number of corporations competing within the automobile industry. This merger is an example of a

horizontal merger.

Kim, Diana, and Courtney are starting their own after-school tutoring business, and they are drafting articles of partnership. All of the following are issues they should consider EXCEPT

how to manage customer information.

Asset utilization ratios measure

how well a firm uses its assets to generate each $1 of sales.

Carleigh is a private accountant who passed an examination by the Institute of Management Accountants. After passing this examination, Carleigh is a

Certified management accountant

Which of the following does an organizational chart display?

Chain of command

Farmers who sell their fruit and vegetables to consumers at roadside stands or farmer's markets use a ________ consumer marketing channel.

Channel A

Which of the following types of consumer marketing channels is used for the distribution of products like refrigerators, televisions, soft drinks, cigarettes, clocks, watches, and office products?

Channel C

________ is the full introduction of a complete marketing strategy and the launch of a product.

Commercialization

________ remains a major element of any strategy to develop and manage long-term customer relationships by providing multiple points of interaction.

Communication

Which of the following statements is true regarding business ethics and social responsibility?

Companies can be both profitable and socially responsible.

Theory Z and Theory Y can be seen as

Complementary

In the ________ approach to market segmentation, a company develops one marketing strategy for a single market segment.

Concentration

A huge fire broke out in Country Rooms, a small rustic furniture store. The fire destroyed all of the furniture, and ultimately, the company went out of business. Which of the following is most likely the reason this company went out of business?

Country Rooms didn't have an updated contingency plan to handle such a crisis.

Maurice was asked to extend trade credit to a restaurant she hadn't serviced before. She asked to see its balance sheet to determine if it could pay its bills. She divided its current assets by current liabilities to get its

Current Ratio

________ costs include anything a buyer must give up to obtain the benefits the product provides.

Customer

Derek, an accountant, allocates the cost of a piece of earth-moving equipment over a specific period of time. Based on the given information, it can be concluded that Derek is implementing the process of

Depreciation

Isabella makes unique clothing pieces, jewelry, and hair accessories. To avoid the costs of opening a store, she sells these pieces on Etsy. This is an example of

Direct Marketing

The person primarily associated with the Hawthorne studies is

Elton Mayo

Job ________ is the incorporation of motivational factors, such as opportunity for achievement, recognition, responsibility, and advancement, into a job.

Enrichment

How are profits handled in a communist system

Excess income goes to the government

Which of the following is a characteristic of the marketing economy phase of the American economy?

Expensive goods, such as cars and appliances, could be purchased on a time-payment plan.

A sole proprietor has limited liability in meeting the debts of his or her business.

False

A term used to describe businesses that depend heavily on advanced scientific and engineering knowledge is new technology.

False

Advertising is direct, two-way communication with buyers and potential buyers.

False

All groups are teams, but not all teams are groups.

False

American Express cards require full payment at the end of each month.

False

Because of the high cost of claims payments, insurance companies generally have very few excess funds.

False

Businesses have the right to keep and use their profits as they choose, without limitations.

False

Convenience products generally use selective distribution.

False

Creating an innovative product that meets many users' needs is sufficient in today's volatile global marketplace.

False

Credit unions are not considered banking institutions.

False

For any company, owners and shareholders are the only sources of primary funding.

False

GDP measures those goods and services made within a country and profits from companies' overseas operations.

False

Ghalib knew his company was dumping toxic waste on public land. He reported it to the EPA. Ghalib's actions were unethical.

False

Harvey put together a financial plan so he could forecast income and expenses for his company for the year. This is called an annual report.

False

Horizontal communication involves the traditional flow of information from upper organizational levels downward.

False

Inflation usually indicates slow economic growth and falling prices.

False

LinkedIn is the most popular social networking site in the world.

False

Management takes place only in business settings.

False

Multidivisional structure is the simplest organizational structure that is based on direct lines of authority extending from the top executive to the lowest-level employees of an organization.

False

Multinational corporations (MNCs) rarely get targeted by activists because they provide so many benefits to the countries in which they do business.

False

Net income is the amount on which a firm will pay taxes.

False

One of the most significant drawbacks of small businesses is their inability to innovate and to bring significant benefits to customers.

False

Shadow banking is an illegal form of banking that has been outlawed by the Dodd-Frank Act.

False

Social responsibility is the extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their various stakeholders.

False

Sole proprietorships pay a lower marginal tax rate than do small corporations on income of less than $75,000.

False

The Association of Southeast Asian Nations (ASEAN) effectively united Singapore, Britain, and Japan into one market.

False

The Credit CARD Act of 2009 was passed to give card issuers the right to raise interest rates without restrictions.

False

The Hawthorne studies found that money was the primary motivator for employees.

False

The concept of social responsibility is now universally accepted.

False

The first step in the decision-making process is developing options to resolve a situation.

False

While ethical behavior can enhance a company's reputation, it often has a negative effect on the company's financial performance.

False

People in the entertainment industry claim that requiring warning labels on movies and video games violates their ________ right.

First

________ is one of the most popular photo sharing sites on the Internet and enables users to upload images, edit them, classify the images, create photo albums, and share photos with friends.

Flickr

________ refers to standardizing products by dividing them into subgroups and displaying and labeling them, so consumers clearly understand their nature and quality.

Grading

Hakim set goals for his store that included satisfying his customers while making enough money to open a second store. Which component of a goal did Hakim leave out?

Hakim forgot to include a time frame in which the goal is to be achieved.

Nadim wants to start a small moving company. He has enough funds to start the business, but not enough to run it effectively. What is one thing he can do to provide working capital to his company?

He can refrain from drawing a full salary.

Which of the following is a difference between high technology businesses and other small businesses?

High technology businesses require greater capital and have higher initial startup costs than other small businesses.

McGregor's Theory Y corresponds to

Humanistic view of management

The process of coordinating the promotion mix elements and synchronizing promotion as a unified effort is known as

Integrated marketing communications

Which of the following effects is seen on the money supply and the economy when the Federal Reserve Board raises the discount rate?

Interest rates increase and the money supply decreases.

A company is paying off its long-term debt from the bank loan it secured to open the business several years ago. What does this scenario indicate?

It has a negative amount of cash from financing activities.

Which of the following is true of a piece of equipment when it is fully depreciated?

It has a zero value on the firm's balance sheet.

Paula is a partner in a local hardware store. She has decided to sell her partnership interest. What is one challenge that Paula will face?

It is difficult to place a value on a partner's share of the partnership.

Which of the following statements is true about GDP as a measure of a country's economic health?

It measures only those goods and services made within a country

Which of the following is true about the Association of Southeast Asian Nations (ASEAN)?

It will not have fully-free labor flows between member-nations.

In the context of employee motivation theories, Theory Z includes many elements associated with the ________ approach to management.

Japanese

Which of the following statements is true about less-developed countries (LDCs)?

LDCs represent a potentially huge and profitable market for many businesses.

Earth-moving equipment, stamping machines, and robotic equipment used on auto assembly lines are examples of

Major Equipment

A product ________ is all the products offered by an organization

Mix

Which of the following is true about the General Agreement on Tariffs and Trade (GATT)?

More than 100 nations abided by its rules.

Neehara recently opened a premium bakery. She did not have enough savings, so she applied for a loan to obtain the additional funds required to start the bakery. She had to provide her house as collateral to obtain the loan. The type of financing obtained by Neehara can be regarded as a

Mortgage

Which of the following is true of organizational culture?

Organizational culture is more commonly expressed informally.

________ is the process by which a person selects, organizes, and interprets information received from his or her senses.

Perception

The financial value placed on an object involved in an exchange between a buyer and a seller is known as its

Price

Which of the following statements describes the force that drives the distribution of resources (goods and services, labor, and money) in a free-enterprise economy?

Prices for goods and services vary according to the change in supply and demand

________ encourages consumers to make purchases based on emotion rather than rational considerations about the price.

Psychological pricing

The little black and white squares that sometimes appear in magazines, posters, and store displays, which let a consumer with a smart device view a website, video, or image with additional marketing information, are known as

QR codes

The groups with whom buyers identify and whose values or attitudes they adopt are referred to as

Reference Groups

Through ________, marketers ascertain the need for new goods and services.

Research Programs

________ is the chance of loss associated with marketing decisions.

Risk

According to Herzberg's theory, which of the following is a hygiene factor?

Salary

During the period of the ________ orientation, the supply of manufactured goods caught up with and then exceeded demand, which made businesspeople realize they would have to promote their products to get buyers to desire them.

Sales

Leiko owns a childcare company. Since this market is competitive, she has hired an advertising and sales manager to make sure potential customers know about her company. As a result, she must pay for advertising materials and her advertising and sales manager's salary. These expenses would be classified as ________ expenses.

Selling

Services are usually distributed through ________ marketing channels.

Service A

________ is the division of labor into small, specific tasks and the assignment of employees to do a single task.

Specialization

Stan's older sister tells him that she could buy more toffee candies for a dollar when she was his age than she can now. Stan's sister is referring to the ________ of money.

Stability

Garrett wants to become a certified public accountant. To accomplish this, he must be certified by the ________ in which he plans to provide accounting services.

State

Many countries with poor telephone infrastructure have seen an increase in the use of cell phones, providing opportunities for companies to market their products to more people. This is an example of overcoming ________ barriers.

Technological

All of the following are examples of customized products EXCEPT

Television sets

How does modified capitalism differ from pure capitalism?

The government intervenes and regulates business to some extent.

Alma is an investor who wants to compare the performance of one publishing company with another on an equal, or per share, basis. What is a general finding associated with this practice?

The more shares of stock a company issues, the less income is available for each share.

Which of the following is true of economic expansion?

The standard of living rises because more people are employed and have money to spend.

Which of the following is a reason that credit cards are a popular substitute for cash payments?

They are accepted by merchants around the world.

Which of the following statements is true of joint ventures?

They are popular in situations that call for large investments.

On which of the following grounds are multinational corporations (MNCs) often criticized by antiglobalization activists?

They misuse and misallocate scarce resources.

Which of the following is a reason that financial institutions want consumers to use debit cards?

They reduce the number of teller transactions and check processing costs

Which of the following is a reason that financial institutions want consumers to use debit cards?

They reduce the number of teller transactions and check processing costs.

Which of the following is an effective practice with regard to tactical plans?

They should be periodically reviewed and updated by an organization's management.

A ________ is a brand that is legally protected from use by any other firm.

Trademark

To deter identity theft, the National Fraud Center wants financial institutions to

implement new technologies such as digital certificates, digital signatures, and biometrics.

Auto Corp. buys engines from Malyia and resells them in its stores in Thelisia. This is an example of

importing

Project teams are

in control of their operation and have total control of a specific work project.

Which of the following is a hallmark of the Hawthorne effect?

increase in productivity regardless of physical conditions

An ________ is the personal satisfaction and enjoyment that a person feels from attaining a goal.

intrinsic reward

The term ________ refers to all raw materials, components, completed or partially completed products, and pieces of equipment a firm uses.

inventory

The process of determining how many supplies and goods are needed and keeping track of quantities on hand, each item's location, and who is responsible for it within an organization is called

inventory control

The country of Maglia decided to stop holding its currency at a fixed exchange rate with the euro. All of the following are effects this change would have on the investment potential in Maglia EXCEPT

its stock market will flourish.

Benchmarking lets an organization

know where it stands competitively in its industry

All of the following are true of current trends in ethics programs EXCEPT

lack of organizational ethics initiatives do not impact organizational objectives but do impact employee retention.

Rebeccah is a manager at a law firm. Part of her role is conducting performance reviews for the paralegals in the office. By doing so, she is fulfilling the managerial role of a

leader.

Which of the following is a key step in evaluating ethical decisions in business?

learning how to recognize and resolve ethical issues

Which of the following is a basis for the psychographic segmentation of markets?

lifestyle

Gwen is a doctor who is forming her own medical practice. She wants her practice to be flexible, simple to run, and free from required meetings, minutes, or resolutions. Her goal is to blend the best characteristics of corporations, partnerships, and sole proprietorships. What form of business ownership seems most in-line with Gwen's goals?

limited liability company

From the perspective of manufacturers, standardization means

making identical, interchangeable components or complete products.

Phuong is a very talented engineering student who starts her own small software development firm. She finances the firm from her savings. Initially, she is able to get many projects from customers and completes them successfully. However, as her business grows, she fails to make good decisions in hiring new employees, billing the clients, and negotiating prices. She eventually ends up liquidating the business. Which of the following causes of small-business failure does this scenario best illustrate?

managerial inexperience

A ________ is a plan of action for developing, pricing, distributing, and promoting products that meet the needs of specific customers.

marketing strategy

For an organization, the first step in the management function of controlling is to

measure the actual performance.

Michelangelo owns a small catering business that mostly serves his community. He has been hired for company picnics, backyard barbecues, and family celebrations. As word of mouth has spread about his delicious food, good service, and fair prices, he has started getting more business. To handle this, he has hired four employees to help cook and serve food at these events. What kind of entrepreneur is Michelangelo?

microentrepreneur

Google Wallet is a

mobile app that stores credit card information on smartphones.

When the Federal Reserve Board increases the reserve requirements, the

money supply declines

Which of the following is a common mobile marketing tool

multimedia messages

GloboTron is headquartered in Argonia, and it operates over 500 factories around the world. It is one of the world's major producers of home entertainment equipment. GloboTron is an example of a

multinational corporation.

After a major horse race, it was discovered that the winner had drugged his horse to make it run faster. As a result, the horse's owner, trainer, and jockey were banned from the racing industry. This exemplifies how

negative judgment directly affects an organization's ability to achieve its business goals.

Span of management refers to the

number of subordinates reporting to a manager.

Diagonal communication

occurs when individuals from different units and departments within an organization communicate.

Sublime Trails, a trail mix store, is planning to expand its business by opening several new stores over the course of four years. Within this strategic plan, all of the following are items operational plans may specify EXCEPT the schedule for

opening all the stores.

________ is an element of the management activity in a business.

operations

Kim's company, Globotech, does not have established rules and policies on ethics. It is a small, independent company that depends on its employees to use their own judgment. This structure can lead to

opportunity for misconduct

_______ refers to a firm's shared values, beliefs, traditions, philosophies, rules, and role models for behavior.

organizational culture

Molly is preparing a balance sheet for her pet grooming company. Following long-established traditions, she lists items on her balance sheet on the basis of their

original cost minus accumulated depreciation.

When Harvey opened his store, he convinced his family and friends to invest in the store. They invested money and assets to help him start and grow his business. The money and assets these investors contributed to Harvey's store comprise his

owners' equity.

Clink, a new bar and restaurant, encourages its employees and managers to participate in creating its specialty drinks and menu items. This is an example of

participatory decision making

Which of the following protects intellectual property?

patents

A catastrophic flood crippled Malyia's government. In an effort to help local businesses rebuild, the government forced foreign businesses out of the country. This is an example of a(n) ________ barrier to trade.

political

Rarely, a country will decide to increase the value of its currency in relation to other currencies. This is called

positive exchange

A special type of project team that focuses on devising, designing, and implementing a new product is a

product-development team.

All of the following are major responsibilities of the Federal Reserve Board EXCEPT

provide short-term loans to businesses.

Many service providers are considered retailers because they

provide their services directly to ultimate consumers.

All of the following are major responsibilities of the Federal Reserve Board EXCEPT

providing short-term loans to businesses

Which of the following is an element of the promotion mix?

publicity

Materials that have been purchased to be used as inputs in making other products are included in ________ inventory.

raw materials

A primary reason for using standardization is to

reduce production costs

According to Herzberg's theory, which of the following is a motivational factor?

responsibility

During the first half of the 20th century, businesspeople viewed ________ as the primary means of increasing profits.

sales

Games Galore has a new video game that it hopes will increase its sales. It is offering coupons and a sweepstake to get people to buy the game. These are all examples of

sales promotion

Which of the following needs is at the top, and therefore the hardest to attain, of Maslow's hierarchy of needs?

self-actualization needs

A ________ is a group of employees responsible for an entire work process or segment that delivers a product to an internal or external customer.

self-directed work team

Louis, Carl, and David have secured a charter for their car dealership. They hold an organizational meeting to establish the corporation's bylaws and elect a board of directors. What is one thing the bylaws might do?

set up committees of the board of directors

Jailene works at a hospital that has its own credit union. Her savings account at this credit union is called

share account

Which of the following media is used by digital marketing?

social networks

18th-century economist Adam Smith illustrated improvements in efficiency in manufacturing units through the application of

specialization.

The United States has a budget deficit of over 18 trillion dollars. A budget deficit occurs when a nation

spends more than it takes from taxes

Mary makes $3500 a month working as a dental hygienist. She wants to buy a used car for $8000. She plans to save $2000 per month for 4 months to buy the car. Which of the following functions of money does this scenario best describe?

store value

The top management of New 18 Apparels Inc. has decided to set up an online store to cater to the changing business environment and reach out to the Asian market. The management has also identified that the success of the company will depend on its ability to create and develop new products and processes in the next two years. This is an example of

strategic planning.

Given the crucial role of communication and information in business, the long-term impact of digital media on economic growth is

substantial, and it will inevitably grow over time.`

Hearth and Home, a home improvement store, is planning to expand and open four new stores, one each year. As a result, it develops four separate plans to determine how much to spend on each store as well as when and where to open each store. These are ________ plans.

tactical

Sue hired an attorney to help her draft a purchase and sale agreement for her new home. The home is an example of a product that is a(n)

tangible item

Which of the following is a temporary group of employees, usually chosen for their expertise, who are responsible for bringing about a particular change?

task force

Jordan has been an accountant for many years. Since the accounting scandals in 2000, his firm added fraud-detection services, and Jordan now focuses on these services. Which of the following organizations could certify Jordan, so he can focus on detecting fraud?

the Association of Certified Fraud Examiners

Before the Industrial Revolution, the economy of North America under the colonists was characterized by

the domestic system of producing goods

Which of the following best describes management by objectives

the need to develop goals that both managers and employees can understand and agree upon

All of the following are elements of creating a corporation EXCEPT

the procedure for chartering a corporation is the same in all states.

The decision-making process in a partnership tends to be faster when

there are few partners and all of them are involved in the day-to-day activities of the business.

The usefulness of the International Monetary Fund (IMF) for developed countries is limited because

these countries use private markets as a major source of capital.

All of the following are true of 501(c)(3) organizations EXCEPT

they must answer to their shareholders

Harold owns a chain of coffee shops. He hires accountants to summarize the information from his company's business transactions into a financial statement. Which of the following is a reason Harold would use a financial statement?

to aid in internal planning and control

The National Business Ethics Survey found that employees who feel pressured to compromise ethical standards view ________ as the greatest source of such pressure

top and middle managers

Fear of failure is the most common concern when starting a business.

true

Adelaide lives in a small farming town in Nebraska. When she needs to buy farming equipment and supplies, she uses the milk, eggs, and plants her farm produces as currency. What concept does this scenario best describe

using materials that have their own value to society as money

Adelaide lives in a small farming town in Nebraska. When she needs to buy farming equipment and supplies, she uses the milk, eggs, and plants her farm produces as currency. What concept does this scenario best describe?

using materials that have their own value to society as money

Ramon funds small businesses that he believes have the potential to grow large. When these companies are still in their initial stages and need investment, he buys their stocks at a low price and later sells them at higher prices when they are successful. Thus, Ramon is a(n)

venture capitalist.

Insurance, Inc. is a large insurance company with partners that specialize in home, auto, and business insurance. Since each partner specializes in a different area of insurance, customers would be likely to

view the service as higher quality than that provided by one person.