ICDC + SCDC Test Prep (Questions)

34. Jasmine doesn't think it's a big deal to steal a few things from work. Which ethical principle would help her realize that the long-term repercussions of her actions could create an ethical dilemma?

viability; over time (LONG term)--insuring that your actions are helpful in the long term, not just the short term: short term, not a long term benefit

1. What is created when the U.S. Supreme Court rules that a business activity is unconstitutional? A. Federal agency B. Common law C. State law D. International law

1. B Common law. Common law is law created by court decisions rather than through written legislation. Since there are no courts that can overrule the U.S. Supreme Court, its decisions have the force of law, including when it rules that a business activity is unconstitutional. This example does not depict the creation of a federal agency, state law, or international law. SOURCE: BL:163 SOURCE: LAP-BL-163—Laying Down the Law (Complying With the Spirit and Intent of Laws and Regulations)

1. Reynolds Uniform Supplier agreed to sell 500 customized polo shirts to a fast-food restaurant chain at a price of $10 each. After receiving the shirts, however, the fast-food restaurant was surprised to find that the order was missing 100 shirts—and that the supplier charged them $12 per shirt instead of $10. Reynolds Uniform Supplier most likely violated __________ law. A. sales B. contract C. property D. tax

1. B Contract. A contract is an agreement between two (or more) parties that can be legally enforced in a court of law. One example of a business contract is the agreement to buy or sell a certain product or service from another business. Reynolds Uniform Supplier most likely violated its business contract with the fast-food chain by not providing the correct number of shirts, as well as by charging more than the agreed-upon price. Sales law governs the transfer of ownership of property from one entity to another. Property law governs the various forms of ownership of property. Tax law deals with the regulatory rules associated with taxes.

1. Sean wants to put his competitor out of business, so he calls the competitor's customers and convinces them to break their contracts and do business elsewhere. This is an example of a(n) A. ethical business strategy. B. typical business transaction. C. business tort. D. trade regulation.

1. C Business tort. Interfering with another business's contracts and attempting to harm that business is considered wrongful interference, which is a type of business tort. This is not a typical business transaction, an ethical business strategy, or trade regulation.

10. Which of the following is a formatting characteristic of a full-block business letter: A. Double-spacing within the paragraph B. No paragraph indents C. Indented first paragraph D. Paragraphs use right justification

10. B No paragraph indents. Many businesses use the full-block method to format business letters. All components of the letter (date, address, greeting, body, closing, signature block) use left justification, which means all text is aligned on the left margin. Writers using the full-block format do not indent the first sentence of each paragraph. Other formatting characteristics of full-block letters are the use of single- spacing within the paragraphs and the use of double-spacing between the paragraphs. SOURCE: CO:088 SOURCE: Means, T. (2019). Business communication (3rd ed.) [Lesson 7-4]. Boston, MA: Cengage Learning, Inc.

10. Each day after history class, Marty lists the important historical events that he learned about according to the dates when they occurred. Marty is using the __________ method of organizing information. A. order of importance B. chronological order C. comparison and contrast D. geographical

10. B Chronological order. There are several methods of organizing information, including chronological order, order of importance, comparison and contrast, and geographical organization. Chronological order involves listing information in a sequence of dates or time frames, like Marty did in this example. Order of importance involves organizing data around the significance of the information. The comparison and contrast method involves organizing information according to its similarities and differences. Geographical organization involves organizing information according to the location it is associated with

100. Which of the following is a benefit that individuals receive from following rules of conduct: A. Increased organizational communication B. Protection from consequences C. Less ethical guidance D. Increased financial compensation

100. B Protection from consequences. If you follow the rules laid out by your organization, you will meet expectations and be protected from consequences. Increased organizational communication is a benefit that organizations, rather than individuals, receive from following rules of conduct. Increased financial compensation is not necessarily related to following rules of conduct. Finally, rules of conduct provide more ethical guidance rather than less. SOURCE: PD:251 SOURCE: LAP-PD-251—Know the Code (Following Rules of Conduct)

100. Which of the following is an example of a material resource: A. A marketing-research study B. A piece of manufacturing equipment C. A bank loan D. A long-term employee

100. B A piece of manufacturing equipment. Material resources are the equipment and supplies that businesses need to produce and/or sell their goods and services, including manufacturing equipment (tangible). A marketing-research study is an example of an informational resource. A bank loan is an example of a financial resource. A long-term employee is an example of a human resource.

100. If a company spends all of its financial resources to discover a new way to purify water, it could be classified as a __________ organization. A. risk-tolerant B. risk-adverse C. risk-seeking D. zero-risk

100. C Risk-seeking. A company that spends all of its financial resources to discover a new way to purify water is a risk-seeking organization because it is hoping to gain from the discovery while risking its financial health. Risk-adverse and risk-tolerant organizations do not seek new risks. A zero-risk approach to risk management involves eliminating all possible risks.

11. Natalia just finished her first draft of a grant proposal for the Feed the Hungry Foundation. The first step that she needs to take before revising and editing the document is to A. take some time away from the document. B. create an outline of the proposal's content. C. correct grammatical errors in the draft. D. determine the general purpose of the paper.

11. A Take some time away from the document. Stepping away from the document for a while allows the writer to view it from a fresh perspective. This allows you to take a more honest look at what you've written. Creating an outline should come before the first draft. Writers shouldn't spend time correcting grammatical errors at this point because many sentences and words may be revised or cut later. A writer should determine the purpose of the paper before writing the first draft.

11. One principle of good business-letter writing is to use A. popular clichés. B. long paragraphs. C. clear language. D. minimum organization.

11. C Clear language. A good business letter should present a message in plain language that is clear and easy to understand. The message should be well organized so that it follows a logical sequence. A combination of long and short paragraphs is more effective than a series of long paragraphs. Popular clichés, catchy phrases, and slang are inappropriate in business letters. SOURCE: CO:133 SOURCE: Means, T. (2019). Business communication (3rd ed.) [Lesson 7-4]. Boston, MA: Cengage Learning, Inc.

11. Which of the following formats is most appropriate when creating a persuasive piece of professional writing: A. Minutes B. Report C. Proposal D. Memo

11. C Proposal. Persuasive professional writing is intended to convince an audience to adopt a certain stance on an issue. The format of persuasive writing, therefore, should naturally be different than the format of other types of professional writing. Proposals, press releases, and sales emails are common formats for persuasive writing. Reports are generally used for informing an audience about something, rather than for persuading them. Minutes are recorded during meetings. Memos are brief, informative documents used to bring attention to an important issue quickly and effectively.

12. Which of the following situations demonstrates how digital communications expose businesses to risk: A. An employee uses his personal (nonwork) computer to play games. B. A company's email server is hacked, and sensitive data is leaked. C. A business welcomes the public into its building for a lecture series. D. A company regularly participates in international conferences.

12. B A company's email server is hacked, and sensitive data is leaked. Digital communications such as email, text messaging, and chat rooms can expose businesses to risks such as data breaches. Computers, networks, and servers are rarely 100% secure and are often hacked by cyber criminals. A company's email server being hacked is an example of a risk resulting from digital communication. Employees' use of their personal devices for entertainment would not expose a business to risks from digital communication, nor would welcoming the public into a company building or participating in international conferences.

12. What is an example of a written business inquiry? A. A form describing an employee's performance review B. A memo outlining an upcoming meeting agenda C. An email requesting vendor pricing and discounts D. A report summarizing annual financial information

12. C An email requesting vendor pricing and discounts. An inquiry is a request for information. Businesses often send emails requesting information from other businesses. Some requests might include product pricing, membership eligibility, or shipping dates. A performance review, meeting agenda, and financial report provide business information. The information is not an inquiry unless someone asks for something. SOURCE: CO:040 SOURCE: Roberts, S.J. (2012). Fundamentals of business communication (pp. 23-29). Tinley Park, IL: Goodheart-Willcox.

12. Gerry's Burger Barn produces a spoof video on social media that shows its burgers are "so good that cows eat them." The video goes viral and is shown on different sites on the Internet, which was not Gerry's original intent. This would most likely cause a(n) __________ risk. A. employment B. legal C. reputational D. security

12. C Reputational. A reputational risk can do damage to a brand or company by twisting the intent and portraying the company or brand in a negative light. Legal risks include employment, privacy, security, intellectual property, and media risks.

13. Which of the following pieces of information would be most appropriate for posting on LinkedIn or another professional social networking site: A. Photos of your family from a recent vacation B. An award you received at work C. Concerns you have about your current job or career D. Updates on your personal marathon training

13. B An award you received at work. LinkedIn and other professional social networking sites are intended to be used for educational and networking purposes, not for posting personal information such as family photos or updates on personal projects. It would be unwise to post concerns about your job on any social networking site, professional or personal, since employers could potentially see your post.

13. Pat is presenting the yearly financial figures to the board of the YG Corporation. To make the figures more appealing and easier to follow, Pat might want to use a __________ to present the information. A. calculator B. bar chart C. heat map D. geographic data map

13. B Bar chart. A bar chart would help simplify financial figures and make them easier to understand more quickly. A calculator would complicate a presentation. Heat maps and geographical data maps are used to show locations and information as it relates to space

13. A person who publicly tweets negative comments about his/her company is most likely to be A. prosecuted. B. laughed at. C. promoted. D. fired.

13. D Fired. An individual's "personal brand" on social media can either positively or negatively influence a company and its ability to achieve its organizational goals. If an individual publicly tweets negative comments about his/her company, s/he is likely to be fired, not promoted. Employees serve as unofficial brand ambassadors for their companies, so it is important that they represent their company well at all times—even online. An individual who publicly tweets negative comments about his/her company may be laughed at, but it is more likely that s/he would be fired. It is unlikely that an employee would be prosecuted for publicly tweeting negative comments about his/her company, since this behavior is protected under free speech laws. SOURCE: CO:205 SOURCE: America's Job Exchange. (2019). Don't tweet your way out of a job—It's easy. Retrieved August 19, 2019, from http://www.americasjobexchange.com/career-advice/the-dangers-of- twitter

13. As Kevin edits a professional report, he is not sure whether to italicize or underscore a book title. To obtain the correct information, Kevin should A. identify the readers' preferences. B. seek a coworker's opinion. C. look up the information in a current dictionary. D. refer to the appropriate publisher's style manual.

13. D Refer to the appropriate publisher's style manual. To provide consistency throughout written documents, certain businesses or industries often follow a specific writing style, such as Associated Press (AP) or Chicago Manual. Each style varies and often uses different styles and standards. For example, one style may italicize book titles and another style may underscore book titles. Most style publishers post style information on their websites, as well as in physical manuals or reference books. The best way to verify a specific style or format is to consult the publisher's manual or website. Coworkers, dictionaries, and readers are not the most reliable sources for publishing styles and standards.

75. Which of the following is the primary computer-system tool used to input data: A. Hardware B. Printer C. Software D. Keyboard

D: - a TOOL to input

14. Penelope wants to use an interactive channel to communicate with her employees. Which channel of communication should she choose? A. A phone call B. A voice mail C. A letter D. A report

14. A A phone call. Interactive communication goes two ways. There is a back-and-forth conversation involved, like on a phone call. Voice mails, letters, and reports are considered static communication because they do not involve interaction. If Penelope wants to use an interactive channel of communication, she should call her employees. She might also consider talking to them in person. SOURCE: CO:092 SOURCE: Roberts, S.J. (2012). Fundamentals of business communication (pp. 23-29). Tinley Park, IL: Goodheart-Willcox.

14. A manager wants to inform her employees that there is free coffee in the common area. Which of the following communication channels would be most appropriate for her message: A. An in-person announcement B. A business memo C. A Skype call D. A formal letter

14. A An in-person announcement. For a message as casual as "free coffee," the most appropriate method of communication would be a simple in-person announcement. A memo, a Skype call, and a formal letter would all be inappropriate for this type of announcement. A memo is generally used to disseminate important information, not casual announcements. A Skype call would likely disrupt employees' work flow, and a letter would be too formal for this message.

14. The opening sentences of an effective business letter should A. be completely impersonal. B. come right to the point. C. always be formal. D. avoid specific details.

14. B Come right to the point. The opening paragraph of a business letter should explain the reason for writing and come right to the point. Effective business letters do not waste the reader's time by providing a lot of unnecessary information, but they immediately come to the point and capture the reader's attention. The letter does not need to be formal, but it should contain specific details and have personal appeal for the reader.

14. Many employers are now encouraging employees to become activists of the company on social media. One possible impact this could have on the company is A. decreased sales leads. B. increased marketing expenses. C. decreased productivity. D. decreased online presence.

14. C Decreased productivity. Employees that use social media at the workplace may be inclined to use their personal social media sites, which could decrease productivity. The company would not likely have to increase marketing spending for this initiative. Social media activism has been shown to boost sales and online presence.

15. When participating in staff meetings, business employees should be prepared to A. remain silent. B. join in the discussion. C. comment on every detail. D. argue.

15. B Join in the discussion. For staff meetings to be effective, all employees should participate in the discussion. The purpose of staff meetings usually is to discuss issues that are of importance to the business, or to solve problems. Therefore, employees should join in the discussion rather than remain silent because their ideas and opinions are valuable. Employees should not comment on every detail. Employees should adequately explain their ideas, but it is not effective to start an argument with those who disagree. SOURCE: CO:063 SOURCE: Means, T. (2019). Business communication (3rd ed.) [Lesson 13-3]. Boston, MA: Cengage Learning, Inc.

15. Which of the following would most likely be viewed by an employer as an acceptable use of your personal social media site for business purposes: A. Chatting with a coworker online about your plans after work B. Posting company news to help gain employees or clients C. Talking to your significant other about what's going on in the office D. Posting photos of coworkers and customers

15. B Posting company news to help gain employees or clients. Although company policies differ, using social media for business purposes is becoming more and more common. Many companies urge employees to use social media to gain employees and clients. Chatting with coworkers about after hour plans, talking to your significant other, and posting photos of coworkers and customers are most likely for personal use and may not be appropriate depending on the work environment.

15. Which of the following statements regarding staff meetings is true: A. It's best to avoid speaking up unless you have a brilliant idea. B. It's okay to work on other things during a meeting. C. You should contribute something to every meeting. D. Note-taking during meetings makes you seem over-enthusiastic.

15. C You should contribute something to every meeting. Staff meetings are times to exchange information, brainstorm as a group, and build rapport with colleagues. It's a good idea to contribute something to every meeting you attend, even if it's simply agreeing with what's been said. You don't need to have a brilliant idea to speak up. Contributing to meetings sends the signal that you are engaged in your work and want to help the group succeed. It is inappropriate to work on other things during a meeting. Instead, you should set aside all other tasks and focus your attention completely on the meeting. It's a good idea to take notes during meetings to help you remember what was discussed. Taking notes sends the message that you care about the meeting and are taking it seriously, not that you are over-enthusiastic

16. Sonya pulls together her management team to determine different approaches to a problem that the company is facing. The team develops as many solutions as possible, making sure not to judge the correctness or feasibility of the ideas. Which step is this in the group problem-solving process? A. Brainstorming B. Developing action plans C. Defining the problem D. Assessing the consequences

16. A Brainstorming. Brainstorming is a creative-thinking technique involving the identification of as many different ideas as possible during a certain time frame. You need to define the problem before you brainstorm to come up with the right solution. Assessing the consequences involves deciding what results could come from each alternative. Developing an action plan determines what outcomes will look like and how to reach success.

16. Stacy, a poodle owner, chose her dog's groomer based on the friendliness and attentiveness of the staff. Even though the prices are higher than other groomers, Stacy would never consider going somewhere else. This example demonstrates the importance of A. building and maintaining customer relationships. B. setting prices higher to create an image of luxury. C. outpricing the competition through sales and giveaways. D. earning new customers rather than focusing on current ones.

16. A Building and maintaining customer relationships. One of the best ways to differentiate a business from the competition is by offering excellent customer service. By building and maintaining strong customer relationships, businesses can retain current customers and turn them into loyal brand ambassadors. It is more expensive to acquire new customers than it is to retain current customers, so businesses should focus on satisfying the needs of their current customers before attempting to earn new customers. This example does not demonstrate the importance of setting high prices for brand image or outpricing the competition through sales and giveaways.

16. A disadvantage of problem-solving in groups is that it A. decreases risk-taking. B. decreases conformity. C. takes more time. D. hinders communication.

16. C Takes more time. Group problem-solving takes more time than individual problem-solving because of conflicting schedules, differing opinions, and more discussion. Group problem-solving increases conformity and risk-taking, rather than decreasing them. Finally, group problem-solving increases communication rather than hindering it. SOURCE: CO:067 SOURCE: Burrow, J.L., Kleindl, B., & Becraft, M.B. (2017). Business management (14th ed.) [Lesson 13.2]. Boston, MA: Cengage Learning, Inc.

17. As employees go about their daily activities, their actions should be driven by whether the actions will A. result in additional sales. B. result in customer satisfaction. C. bring them personal fulfillment. D. be witnessed by customers.

17. B Result in customer satisfaction. Making customers feel important is a goal of demonstrating a customer service mindset. Customers should feel welcome and that their satisfaction is important to everyone concerned. By focusing on the customers' needs, employees can increase sales and, in most cases, bring themselves personal fulfillment. The customer service mindset should be practiced by all employees regardless of whether employees have direct contact with customers. SOURCE: CR:004 SOURCE: Means, T. (2019). Business communication (3rd ed.) [Lesson 14.1]. Boston, MA: Cengage Learning, Inc.

17. Why do advertising agency account executives often participate in meetings and problem-solving groups? A. To place ads in local newspapers B. To schedule production facilities C. To develop ad campaigns for clients D. To write copy for promotional brochures

17. C To develop ad campaigns for clients. Account executives often participate in meetings with clients and other advertising agency staff to develop ad campaigns for the clients. The purpose of the meeting is to identify the clients' advertising needs, discuss ways of satisfying those needs, and design a successful campaign. In many cases, there are problems to solve because the client may have a limited advertising budget or specific requirements for the campaign. Account executives usually do not schedule production facilities. Media buyers are responsible for placing ads. Copywriters write copy for promotional brochures. These activities often take place after the meeting phase in order to implement the ad campaign.

17. Which of the following is an important task for a business that is building positive customer relations: A. Researching and developing new products B. Expanding facilities C. Identifying the target market D. Soliciting investments

17. C Identifying the target market. Identifying the target market is an important task for any business that is attempting to build positive customer relations. A business can't meet customer needs if it doesn't know who its customers are! Expanding facilities, researching and developing new products, and soliciting investments are all business-building activities, but they are not as directly related to customer relations as identifying the target market is.

17. Liz works at a furniture store. A customer recently came into the store looking for a particular couch. When Liz informed the customer that the couch was out of stock, he started raising his voice and making rude comments to Liz. This is an example of a(n) __________ customer. A. suspicious B. leave-me-alone C. domineering D. insulting

17. D Insulting. Insulting customers can be very rude. Customers that are insulting often take out their frustrations with a particular product or company on an individual salesperson, even though the salesperson is not the reason for the customer's problem. Leave-me-alone customers are people who refuse to accept help from sales representatives, even when they are confused or need assistance. Domineering customers like to be in control. They often give orders to salespeople even if they don't know what they are talking about. Suspicious customers ask questions such as "Are you sure there are no bed bugs in this hotel?" and "I want to be certain I won't be charged for extra towels." The customer in this example is best described as insulting.

18. It is important for employees to demonstrate a customer-service mindset when they are A. handling problems. B. contacting suppliers. C. placing orders. D. preparing schedules.

18. A Handling problems. Problems and complaints should not be avoided but looked at as opportunities to demonstrate a customer-service mindset. Most customers will tell others about problems they have with the business, but they will also tell how quickly and satisfactorily their problems or complaints were resolved. These customers will likely return to the business, in spite of previous problems, because they know employees will resolve whatever problems arise. Employees do not need to demonstrate a customer-service mindset when placing orders, contacting suppliers, and preparing schedules because customers are not involved in these situations.

18. What are businesspeople who fail to adapt their communication styles to appeal to their international clients likely to do? A. Earn the clients' trust B. Offend the clients C. Impress the clients D. Persuade the clients to buy

18. B Offend the clients. Businesspeople should try to learn as much as they can about a client's culture, customs, and social values. By understanding and being aware of cultural differences, businesspeople can adapt their communication styles to make a positive impression on their clients, earn their clients' trust, and persuade their clients to buy. Businesspeople who adapt their communication styles are aware of actions that a particular client might view as hospitable, as well as behaviors that the client might find offensive. Offensive behaviors can hinder the ability to build long-term relationships with international clients. SOURCE: CR:019 SOURCE: Lehman, C., Dufrene, D., & Walker, R. (2020). BCOM (10th ed.) [p. 13]. Boston, MA: Cengage Learning, Inc.

18. Julie is a salesperson who's trying to develop rapport with her customers. When she meets a new customer, what's the first thing she should do? A. Make promises and tell the customer what s/he wants to hear. B. Get down to business immediately and ask the customer about his/her budget. C. Get the customer to relate to her by engaging in pleasant small talk. D. Give the customer a catalog that shows her company's products.

18. C Get the customer to relate to her by engaging in pleasant small talk. When meeting a new customer, it's important for Julie to create a personal connection. If she immediately gets down to business, she'll have a hard time building a relationship with the customer. By discussing pleasant but neutral topics first, Julie can get to know her customer and show that she's interested in her/his life. Although making promises and telling the customer what s/he wants to hear may make the customer like her, it won't help Julie in the long run if she can't fulfill those promises. Julie should give her customer a catalog, but that should not be the first interaction she has with the customer

18. Smith's Candy Company specializes in small-batch chocolates. Which of the following is an example of a brand touchpoint for Smith's Candy Company: A. A coupon for a competing brand's chocolate bars B. The brand's slogan: "Candy for the people, by the people" C. The organizational culture of Smith's Candy Company D. A magazine advertisement for the brand's chocolate

18. D A magazine advertisement for the brand's chocolate. A touchpoint is any interaction between a business and a customer or potential customer. Examples of touchpoints include advertisements, publicity, word-of-mouth marketing, engagement with salespeople, interaction with the company's website, and the good itself. A brand slogan itself is not necessarily a touchpoint until a customer comes into contact with that slogan. Similarly, the organizational culture of the company is not a customer touchpoint either. A coupon for a competing brand's chocolate is not a touchpoint for Smith's Candy Company, but instead a touchpoint for the competitor.

19. What is a factor that affects a business's selection of policies to guide its operations? A. Nature of the business B. Personal preferences of management C. Communication skills of employees D. Space available to display policies

19. A Nature of the business. A business's policies must be appropriate for the type of business. For example, a policy that might be appropriate for an investment business might be inappropriate for a hardware store. Not all business policies are written, and it would not be necessary to display them. The personal preferences of management should not be a consideration. Employees who lack good communication skills can receive training that will improve their skills in communicating policies to customers. SOURCE: CR:007 SOURCE: Gartenstein, D. (2019). How to create effective policies. Retrieved August 19, 2019, from https://smallbusiness.chron.com/create-effective-policies-14989.html

19. There are several core principles for using customer information ethically. When a company makes it hard for customers to opt out of certain promotional emails, mobile alerts, and other messages, which core principle is it violating? A. Choice/Consent B. Access/Participation C. Integrity/Security D. Enforcement

19. A Choice/Consent. The choice/consent principle encourages businesses to give their customers certain options in how their information will be used. For instance, businesses often allow customers to opt in or out of receiving promotional emails, mobile alerts, messages from partnering businesses, etc. The access/participation principle states that customers should be able to view and verify their information with ease. The integrity/security principle refers to keeping customer information safe and private. Enforcement refers to regulations and laws designed to hold companies accountable to these principles

19. Why is it important for employees to effectively communicate information about the business to customers? A. To promote teamwork B. To display integrity C. To build morale D. To provide service

19. D To provide service. Employees need to be able to communicate effectively with customers in order to provide them with the service they require. If customers have questions or concerns about the business, employees should be able to provide the answers or the appropriate information. For example, employees should be able to answer a customer's questions about the business's credit policies or handle a complaint about a product. Effective communication helps to provide service and to create a good impression of the business. Employees do not communicate information about the business to customers in order to promote teamwork, display integrity, or build morale.

2. Brandi invents a new machine for her manufacturing plant, and she wants to be sure that competing manufacturing plants can't use the same machine. Brandi needs to obtain a A. trademark. B. patent. C. copyright. D. cease and desist letter.

2. B Patent. A patent is the legal protection of an invention or a process granted to its owners by a government for a certain number of years. If Brandi wants to protect her invention, she should obtain a patent. Trademarks protect words, names, symbols, or devices used by a manufacturer or merchant to identify and distinguish its goods from those manufactured and sold by others. A copyright is the legal protection of books and other artistic works granted by government and giving their creators sole rights to them for a certain number of years. This is not an example of a cease and desist letter.

2. A good way to determine the most relevant information in a textbook is by A. scanning the glossary that is located in the back of the textbook. B. taking detailed notes on each example provided in the textbook. C. reading the review questions at the end of each chapter or section.

2. C Reading the review questions at the end of each chapter or section. When reading a textbook, it is helpful to review the questions at the end of the chapter because the review questions' answers typically indicate the most relevant information or key points covered in the chapter or section. Taking detailed notes about each example in the text is not feasible and may not be helpful in identifying the most important information. The glossary defines key terms; however, the glossary does not put the terms in the context needed to understand the text as a whole. Titles and subtitles describe the topics that are to be covered in the text but do not provide detailed information that might be relevant. SOURCE: CO:055 SOURCE: Education Corner. (2019). Strategies for reading textbooks. Retrieved August 19, 2019, from https://www.educationcorner.com/textbook-strategies.html

2. If you promise your boss that you will attend a professional development seminar, following through on that promise will A. help you become more organized. B. ensure you will never get fired. C. lead you to receive a promotion. D. build a strong, trusting relationship.

2. D Build a strong, trusting relationship. When you manage commitments well, you are living up to your obligations, which means you are being fair and respectful to others. This allows you to build strong, trusting relationships, as is the case with your boss in this example. Following through on a promise to your boss will not necessarily ensure you will never get fired or lead you to receive a promotion, although it might help you grow in your career. It is not necessarily related to becoming more organized.

20. Manufacturing equipment, machinery, transportation systems, and buildings are A. noneconomic goods. B. natural resources. C. capital goods. D. human resources.

20. C Capital goods. Capital goods include all of the manufactured or constructed items that are used to produce goods and services. This includes the buildings, equipment, and machinery used to produce goods and services, along with the transportation systems used to provide access to the products. Natural resources are items found in the environment that are used to produce goods and services. Trees, air, and land are all natural resources. People are our human resources. In economics, they are valued for the physical and mental work that they do to produce goods and services. Some examples of human resources are entrepreneurs, construction workers, bus drivers, and police officers.

20. Which of the following is an example of a during-the-sale touch point: A. Rebates B. Customer satisfaction surveys C. The physical aspects of the business D. Word-of-mouth advertising

20. C The physical aspects of the business. The physical aspects of the business (location, facilities, etc.) are an example of a touch point that takes place during a customer's actual buying process. Customer satisfaction surveys and rebates are post-sale touch points. Word-of-mouth advertising can happen at any time but is generally considered a pre-sale touch point.

20. Martha has been working with a customer on a printer purchase for the past 45 minutes. The customer has looked at all of the printers several times and still is not sure which one to purchase. With what type of customer is Martha working? A. Disagreeable B. Suspicious C. Dishonest D. Indecisive

20. D Indecisive. Martha is working with an indecisive customer because the customer is having great difficulty making a choice or buying decision. A suspicious customer doubts or questions everything and may want facts and proof before being convinced something is true. Dishonest customers intentionally attempt to avoid paying part or all of the price for a product. A disagreeable customer is a client who is unpleasant and hard to help because they are argumentative, complaining, irritable, moody, insulting, impatient, and/or have a leave-me-alone attitude. SOURCE: CR:009 SOURCE: LAP-CR-009—Making Mad Glad (Handling Difficult Customers)

21. Which of the following statements accurately describes the law of demand in regards to customer buying behavior: A. Consumers generally buy more at lower prices, and less at higher prices. B. Consumers generally buy less at lower prices, and more at higher prices. C. There is no relationship between customer buying behavior and prices. D. Consumers rarely buy products logically or according to rational thought.

21. A Consumers generally buy more at lower prices, and less at higher prices. The law of demand states that the quantity of a good or service that consumers will buy varies inversely with the price of the good or service. In other words, consumers will buy more of a certain product if it is inexpensive than if it is expensive

21. What type of difficult customer may be the most trying on your patience and do the most damage to the image of your business? A. Slow/Methodical B. Domineering/Superior C. Suspicious D. Disagreeable

21. D Disagreeable. These customers are unpleasant and hard to help because they are argumentative, complaining, irritable, moody, insulting, impatient, and/or have a leave-me-alone attitude. If the domineering/superior customers are properly handled, they will usually convince or sell themselves. Although suspicious customers are hard to help and difficult to change, they can become your most loyal customers. The slow/methodical customer is easy to handle but requires a lot of time before making a buying decision.

21. During the sale, touchpoints should be designed to A. get the customer's attention. B. show the customer what benefits the brand offers. C. resolve any problems the customer has with the product. D. reinforce that the customer is making the right buying decision.

21. D Reinforce that the customer is making the right buying decision. During the sale, touchpoints should be designed to reinforce that the customer is making the right buying decision. By this point, presale touchpoints should have gotten the customer's attention and shown the benefits the brand offers. Resolving problems with the product is typically something that occurs after the sale. SOURCE: CR:001 SOURCE: LAP-CR-006—Share the Promise (Identifying Brand Promise)

21. Most customers prefer __________ to shopping around. A. having others make their buying decisions B. comparing prices C. avoiding malls D. relationship buying

21. D Relationship buying. Most customers prefer relationship buying—patronizing businesses they like and trust—to shopping around and comparing prices. Customers don't necessarily avoid malls or want others to make their buying decisions for them.

22. A transportation service makes sure that its trucks are well-maintained and driven with care. This is an example of a way to A. conserve the firm's capital goods. B. retrain human resources. C. renew natural resources. D. increase the number of capital goods.

22. A Conserve the firm's capital goods. Capital goods are manufactured or constructed items that are used to produce goods and services. Trucks that are taken care of will last longer. Adding more trucks would be an example of increasing the number of capital goods. Natural resources are items that are found in nature and used to produce goods and services. Human resources, or workers, are retrained to develop new skills. SOURCE: EC:003 SOURCE: LAP-EC-014—Be Resourceful (Economic Resources)

22. A company decides to spend $5000 on new office furniture instead of putting that money toward the marketing budget. What is the opportunity cost of this decision? A. Office furniture B. Lost benefits of additional marketing C. $5000 D. Lost benefits of new furniture

22. B Lost benefits of additional marketing. When a choice is made about the best use of resources, the next-best alternative that is given up is called the opportunity cost of that choice. Opportunity cost is the benefit that is lost when you decide to use scarce resources for one purpose rather than for another. The opportunity cost of the company's decisions is the lost benefits from additional marketing. Office furniture, $5000, and lost benefits of new furniture are not considered opportunity costs in this situation.

22. ABC Corporation recently held a series of executive meetings where company leaders discussed several "big-picture" questions about the business's future. These questions included "Is the company headed in the right direction?" and "Is the company likely to experience long-term success?" Which primary business activity were the company leaders a part of? A. Human resources management B. Financial analysis C. Strategic management D. Information management

22. C Strategic management. Strategic management is the process of planning, controlling, and organizing an organization or department. Strategic management helps a business determine how it can succeed and reach its goals over time. Holding a series of executive meetings to answer "big-picture" organizational questions is an example of strategic management, not financial analysis, human resources management, or information management. Financial analysis is the process of planning, maintaining, monitoring, controlling, and reporting the use of financial resources. Human resources management is the process of planning, staffing, leading, and organizing employees. Information management is the process of accessing, processing, maintaining, evaluating, and disseminating business knowledge, facts, or data.

23. If a business doesn't want to pay to set up operations overseas, it might choose to expand through A. joining a strategic alliance. B. exporting to foreign countries. C. establishing a multinational firm. D. creating a wholly owned subsidiary.

23. B Exporting to foreign countries. If a business doesn't want to pay to set up operations overseas, it might choose to expand through exporting. With exporting, a business simply ships its products to other countries. Joining a strategic alliance, establishing a multinational firm, and creating a wholly owned subsidiary are all options that require the time, effort, and money of setting up overseas operations

23. The ultimate goal of all economic activity is A. distribution. B. production. C. exchange. D. consumption.

23. D Consumption. The ultimate goal of all economic activity is consumption, which is the economic process or activity of using goods and services. For consumption to occur, goods and services must be produced, or made. Producers, consumers, and resource owners exchange money payments for the use of their goods, services, and resources. Distribution examines how money payments are divided between producers and resource owners. SOURCE: EC:001 SOURCE: LAP-EC-006—Are You Satisfied? (Economics and Economic Activities)

23. Last week, you bought a carton of eggs for $2.50. When you return to the store today, you see that they now cost $3.00. What is today's market price of the carton of eggs? A. $5.50 B. $2.50 C. $.50 D. $3.00

23. D $3.00. The market price is the actual price that prevails at any particular time—the price that you actually pay for a good or service. If the eggs cost $3.00, then that is today's market price. $2.50 was the market price last week. The market price is not $.50 or $5.50.

24. Whether prices go up or down, the relationship between relative prices does not change if the __________ remains the same. A. ratio B. value C. market D. resource

24. A Ratio. A ratio is a fixed relation in number or degree between two similar things. Therefore, if the relative price of two items is cut in half or doubles, the ratio would remain the same. Value is the amount of satisfaction that a good or service will provide a customer. A market is any circumstance in which buyers and sellers exchange goods or services for a price. A resource is any item that is used to produce goods or services. SOURCE: EC:006 SOURCE: LAP-EC-012—When More Is Less (Functions of Price)

24. A company is concerned about conducting itself with integrity and respecting the rights of its employees and customers. Which pillar of social responsibility is this business focused on? A. Economic B. Legal C. Philanthropic D. Ethical

24. D Ethical. A business is responsible for conducting itself with integrity, for respecting the rights of others, and for playing fair. This is part of ethical responsibility, which is one of the four pillars of social responsibility. Legal, philanthropic, and economic responsibility are the other three pillars of social responsibility.

24. You use a streaming television service that allows you to watch shows for free, as long as you watch several advertisements as well. If you want to watch a show without advertisements, you have to pay money. What type of business model is this? A. Upgradeable B. Franchise C. Manufacturer D. Freemium

24. D Freemium. In a freemium business model, customers can access basic services for free. However, they have to pay for premium services. The hope with a freemium model is that customers will be "hooked" by the free service and decide that it's worth it to pay extra for the premium services (such as an advertisement-free viewing experience). This is not referred to as an upgradeable business model. This is not an example of a franchise or a manufacturer.

25. When a large company closes down its manufacturing facility in a small town to move the facility overseas where labor and taxes are cheaper, what is one likely consequence? A. Increased customer loyalty B. Negative public image C. Happier employees D. Government fines

25. B Negative public image. If a company closes in one town to move the facility overseas, many people will likely be unhappy with this decision. Although it is legal, they may feel that it is unethical to leave so many employees jobless. This could lead to a negative public image and decreased customer loyalty. It will likely not lead to happier employees. This action is legal and would not lead to government fines.

25. One way in which many businesses demonstrate their social responsibility toward employees is by providing them with A. a stress-free atmosphere. B. regular entertainment. C. a safe working environment. D. free meals.

25. C A safe working environment. Most businesses feel this is one of their most important responsibilities toward employees. Few businesses provide free meals or free entertainment on a regular basis. It is impossible to provide a stress-free atmosphere. SOURCE: EC:070 SOURCE: LAP-EC-070—Business Connections (Business and Society)

25. Which of the following is an example of an operational business risk: A. Regulatory issues B. Natural disasters C. Property damage D. Human errors

25. D Human errors. Operational risks are the possible events and situations that can result from employee actions, core processes, and daily business activities. Examples of operational risks include human errors, production problems, leadership problems, labor relations, and insufficient information management. Natural disasters and property damage are examples of hazard risks. Hazard risks are potential events or situations that can cause injury or harm to people, property, or the environment. Regulatory issues fall under the category of strategic risks. Strategic risks are much broader than the other types of risk and generally concern the overall business environment.

26. Which of the following is used to set levels of government spending and taxation: A. Monetary policy B. Fiscal policy C. Price supports D. Subsidies

26. B Fiscal policy. Government intervenes in business through its fiscal policy. Fiscal policy is used to set levels of government spending and taxation. A government's monetary policy, on the other hand, determines the amount of money that will be in circulation and the level of interest rates. A price support is a direct form of government intervention in business. For example, food prices sometimes fall because of overproduction by farmers. When this happens, government price supports allow farmers to make enough money from selling their products to pay their costs. Businesses may also receive financial help from government in the form of subsidies. Subsidies are financial assistance such as grants or tax breaks.

26. Kelsey takes the risk of opening her own bakery because she wants to make a profit. Kelsey's desire is known as the profit A. rule. B. motive. C. dilemma. D. limit.

26. B Motive. Profit is the monetary reward business owners receive in return for taking the risk involved in starting a business. The desire to make a profit, called the profit motive, forms the economic basis for the private enterprise system. If a business did not make a profit, it would eventually cease to exist. Kelsey opens her business to make money because she is motivated by profit. This is not known as the profit rule, dilemma, or limit.

27. The personnel office of a business carefully checks the background and references of its job applicants. This is an example of handling business risks through A. prevention. B. retention. C. avoidance. D. transfer.

27. A Prevention. Careful screening of job applicants is one way that businesses attempt to prevent risk by hiring only competent and trustworthy people. In this example, the risk of having incompetent or dishonest employees is not transferred to another business or person, retained by doing nothing, or avoided by not hiring employees at all. SOURCE: EC:011 SOURCE: LAP-EC-003—Lose, Win, or Draw (Business Risk)

26. The freedom to compete is a characteristic of businesses that operate in a(n) A. independent society. B. communist economy. C. imperial political environment. D. market economy.

26. D Market economy. A market (free enterprise) economy is an economic system in which individuals and groups, rather than the government, own or control the means of production. A characteristic of a market economy is that individuals and businesses can use their skills and other resources to compete with other individuals and businesses for scarce consumer dollars. A communist command economy is a command economic system in which the government controls the economic system and does not allow private ownership of resources and production. Imperialism occurs when one territory or country takes control, often by force, of the political and economic system of another territory or country. An independent society is a group of people who may or may not be involved in business activities. SOURCE: EC:009 SOURCE: LAP-EC-015—People Power (The Private Enterprise System)

27. Kelly runs a small home bakery. To help her fulfill more orders, she hired three part-time employees. The additional workers increased her output, so she hired another three workers. To her surprise, Kelly's output actually decreased once she added the last three workers. This example best demonstrates the A. harm of taking business risks. B. need for effective employee training. C. law of diminishing returns. D. danger of hiring employees.

27. C Law of diminishing returns. The law of diminishing returns is an economic concept that states that if one input increases while others are constant, at some point the increases in output will decline. In this example, Kelly added six new employees to her business without changing anything else. Kelly's business reached the point at which output could no longer increase unless the inputs also increased. This example demonstrates the law of diminishing returns, not the need for effective employee training, the harm of taking business risks, or the danger of hiring employees.

27. Hannah is a farmer who receives tax breaks from the government for her corn crop. She benefits from government A. monopolies. B. disposable income. C. environmental conservation. D. subsidies.

27. D Subsidies. Some businesses receive financial help from the government in the form of subsidies. Subsidies are financial assistance such as grants or tax breaks. Businesses most likely to benefit from government subsidies are those found in the transportation, housing, agriculture, and mining industries. Disposable income is the money consumers have left over after their taxes are paid. Environmental conservation is another purpose of government involvement. A monopoly exists when a single business influences the entire production of a particular good or service.

28. When Charlyne buys gasoline for her car, she is surprised that she doesn't have to pay any tax in addition to the price of the gasoline. Why is this? A. Charlyne must pay the tax later on her own. B. Charlyne is paying an excise tax that is already included in the purchase price. C. Charlyne is paying a property tax that is already included in the purchase price. D. The flat tax means that Charlyne doesn't have to pay taxes on gasoline.

28. B Charlyne is paying an excise tax that is already included in the purchase price. For certain products, the government levies taxes that businesses pay by building the amount into the customer's purchase price. In other words, instead of charging a tax in addition to the product's price, the business just charges a higher price to begin with, using the difference to pay the required tax to the government. These are known as excise taxes. Since Charlyne is paying the excise tax, she does not have to pay the tax later on her own. Property taxes are based on a percentage of a property's value. With a flat tax, every business pays the same percentage, no matter how much profit it makes.

28. A new business opened across the street from Heinrich's. It is virtually identical to Heinrich's. What type of competition is Heinrich's facing? A. Price B. Indirect C. Strict D. Direct

28. D Direct. Direct competition is the rivalry between or among businesses that offer similar types of goods or services. Price competition is a type of rivalry between or among businesses that focuses on the use of price to attract scarce customer dollars. Indirect competition is a rivalry between or among businesses which offer dissimilar goods or services. Strict competition is a distractor. SOURCE: EC:012 SOURCE: LAP-EC-008—Ready, Set, Compete! (Competition)

28. Which of the following statements regarding a nation's unemployment rate is true: A. When businesses create fewer products, they need more workers, and unemployment drops. B. Frictional (voluntary) unemployment will disappear once an economy reaches full employment. C. The unemployment rate is a predictive indicator; it predicts what will happen to an economy but does not reveal what happened in the past. D. The unemployment rate is a lagging indicator; it confirms what is already known about the economy but does not predict future trends.

28. D The unemployment rate is a lagging indicator; it confirms what is already known about the economy but does not predict future trends. For example, if the unemployment rate went up last month, it reinforces other gauges that show the economy has been doing poorly. It doesn't, however, mean that the economy will continue to worsen in the near future. Frictional (voluntary) unemployment will always exist in an economy, since this type of unemployment typically results from normal life circumstances. When businesses create fewer products, they need fewer workers—not more workers—and unemployment rises.

29. Achievement-oriented, emotionally intelligent people usually are A. transparent. B. prosperous. C. motivated. D. impatient.

29. C Motivated. Achievement-oriented, emotionally intelligent people are motivated. They have a strong desire to succeed. They often set high standards for themselves so that whatever they do is evaluated in terms of their goals. Achievement-oriented, emotionally intelligent people are not necessarily prosperous or impatient. Transparent people are who they say they are and have nothing to hide. SOURCE: EI:001 SOURCE: LAP-EI-001—EQ and You (Emotional Intelligence)

29. During which of the following business cycle phases does demand for goods and services start to fall: A. Peak B. Trough C. Contraction D. Expansion

29. C Contraction. When the demand for goods and services starts to fall and unemployment rises, the peak has passed. The business cycle has entered its third phase, known as contraction. This is considered to be a bad time for consumers and businesses. The trough phase of the business cycle, the low point of economic activity, comes after the contraction phase. The peak phase is when economic prosperity hits a high point. The expansion phase is the first phase of the business cycle and is a time of economic growth.

3. A company that is being sued is given the opportunity to present evidence to defend itself. This is an aspect of A. legal procedure. B. legislative history. C. personal rights. D. business rules.

3. A Legal procedure. Procedural law controls the workings of courts and the method by which rights are enforced. Legal procedure means that rights must be enforced in court, so the business is guaranteed an opportunity to present evidence to defend itself. This is not because of legislative history, personal rights, or business rights

3. In most countries, cases begin their legal journeys in __________ court. A. trial B. supreme C. appellate D. intermediate

3. A Trial. Cases begin their legal journeys in trial court, where crimes are initially reviewed and examined in a trial by a judge (and often a jury of civilians). Once a case has been heard in trial court, the decision can be appealed to a higher court of law. Appellate or intermediate court refers to a court that hears cases after an initial trial. Finally, decisions from an appeals court can be appealed a final time to a supreme court. Decisions from a supreme or "last resort" court have final authority, meaning they cannot be appealed further

3. Which of the following statements regarding company policies is true: A. Company policies identify very specific employee actions. B. Company policies and procedures are the same thing. C. Company policies describe emergency measures. D. Company policies identify general company rules.

3. D Company policies identify general company rules. Company policies are rules made in advance by management to assist employees in decision-making. They are typically general rather than specific in nature and relate to the company's overall vision. Company policies also describe to whom the rules apply and why they exist. Company policies and procedures are not the same; company procedures provide more detailed step-by-step plans of how to carry out policies and processes. Company procedures identify very specific employee actions, such as what to do in the event of an emergency. SOURCE: CO:057 SOURCE: Difference Between.info. (2012-2015). Difference between policy and procedure. Retrieved August 19, 2019, from http://www.differencebetween.info/difference-between-policy-and- procedure

30. When Lora hires her first employee at her bakery, she's able to produce 12 cupcakes. With a second employee, she can produce another 24 cupcakes. A third employee adds another 36 cupcakes, but when she hires her fourth employee, the bakery can only produce an additional 24 cupcakes. Lora's example illustrates the law of A. diminishing returns. B. total revenue. C. marginal cost. D. perfect competition.

30. A Diminishing returns. The law of diminishing returns is an economic concept that states that if one input increases while others are constant, at some point the increases in output will decline. As Lora's number of employees continues to grow, at some point (in this example, when she hires the fourth employee), the increases in cupcake output will decline. Total revenue is the amount of money a company receives from the sale of its output. Marginal cost is the change in cost that occurs when there is a change in output. Perfect competition exists when there are many businesses selling a lot of identical products for about the same price to many buyers.

30. An American manufacturing company has always produced its products in the United States. But in recent years, increased competition from foreign manufacturers has forced the company to move some of its manufacturing operations overseas. The cost of labor is simply cheaper in other countries. This is an example of the effects of __________ on business. A. exchange of technology B. globalization C. knowledge transfer D. domestic operations

30. B Globalization. Globalization is the rapid and unimpeded flow of capital, labor, and ideas across national borders. One of the major impacts of globalization on business is increased competition. As a result of globalization, companies now operate in several different countries—and have access to more markets than ever before. This increases competition among businesses in the same industry. This example demonstrates the effects of globalization-related competition on business. The exchange of technology and the transfer of knowledge are both by-products of globalization, not effects of globalization. Domestic operations refers to business that takes place in a company's home country.

30. Mary has been an employee at the Acme Company for nine years and has been having trouble motivating herself to complete tasks on time. Her supervisor feels she needs to develop her self-esteem through affirmations. Why should Mary write and use affirmations? A. To carry 3x5 index cards around with her for a week B. To daydream about being a superstar in life C. To develop a positive aspect of her life D. To know the difference between self-esteem and affirmations

30. C To develop a positive aspect of her life. Affirmations are positive statements about present or desired strengths. These are things that you want to accept, incorporate, or develop. Carrying around 3x5 index cards for a week would be unproductive if Mary does not write positive affirmations relating to her development of motivation on the job. To daydream about being a superstar in life does not advance Mary's self-esteem. The difference between self-esteem and affirmations is that self-esteem is the way people feel about themselves, and an affirmation is a positive statement, or statements, that assist in the development or improvement of a person's self-esteem. SOURCE: EI:016 SOURCE: Sheridan, K. (2019). How to boost your self-esteem & confidence in the work place. Retrieved August 19, 2019, from https://smallbusiness.chron.com/boost-self-esteem- confidence-work-place-23101.html

31. An employee who is able to adjust to changing conditions possesses the desirable trait of A. loyalty. B. adaptability. C. friendliness. D. tact.

31. B Adaptability. This is the ability to be flexible and to change with the times. Friendliness means to display good feelings toward others. Loyalty means giving steady support. Tact is the ability to say the right thing in all circumstances. SOURCE: EI:018 SOURCE: LAP-EI-009—You've Got Personality (Personality Traits in Business)

31. The coastal city of Los Angeles, California is home to one of the most important ports for global trade. Los Angeles's location relative to countries such as Japan, Korea, and China makes it a prime location for transpacific shipping and receiving. Los Angeles's port is an example of the impact of __________ on world trade. A. political factors B. natural resources C. geography D. economic development

31. C Geography. The geographical location of cities and ports is an important component of global trade. Los Angeles is an example of a city that is ideally located for trade because it can be easily accessed from the Pacific Ocean. Natural resources, political factors, and economic development also influence where the centers of global trade are located, but this example best demonstrates geography's impact on global trade.

31. Which of the following is most likely to be a result of competition: A. More monopolies B. Reduction in product quality C. High prices D. Development of new products

31. D Development of new products. Competition encourages businesses to develop new products in order to meet consumers' needs. Businesses feel that the company which best satisfies consumers will be the most successful company. Competition helps to control prices because businesses must keep prices in line with production costs in order to be competitive. Businesses must also maintain or improve product quality to be competitive. A monopoly exists when a market is controlled by one supplier, and there are no substitute goods or services readily available. No competition exists in a true monopoly.

31. Which of the following is a true statement regarding inflation and lending: A. Lenders do not consider inflation when offering loans. B. Inflation affects home loans more than other types of loans. C. Higher inflation makes loans easier to get. D. Inflation benefits borrowers over lenders.

31. D Inflation benefits borrowers over lenders. Inflation benefits borrowers over lenders because the amount of the loan is not worth as much to the lender when the borrower pays it back. This is why lenders consider the inflation rate when charging interest. Inflation doesn't necessarily affect home loans more than other types of loans, nor does higher inflation make loans easier to get (it may, in fact, make them more difficult to obtain).

32. If the economy is sluggish, what might a central bank do to encourage spending and investing? A. Double interest rates B. Lower interest rates C. Eliminate interest rates D. Disregard interest rates

32. B Lower interest rates. If the economy is sluggish, a central bank may lower interest rates in hopes of encouraging spending and investing. In this situation, interest rates would not be doubled. Interest rates are an important part of an economy and would not be eliminated or disregarded.

32. Marisa believes that she possesses the skills to make a positive contribution to the work team. Marisa is exhibiting A. empathy. B. ethical standards. C. systematic behavior. D. self-confidence.

32. D Self-confidence. Self-confidence is a positive belief in your own talents, skills, and objectives. Ethical standards are the basic principles or unwritten rules that govern your behavior and help you recognize right from wrong. Systematic behavior involves conducting activities in an organized, logical, and methodical manner. Empathy is the ability to put yourself in another person's place. SOURCE: EI:023 SOURCE: Mind Tools. (n.d.). Building self-confidence. Retrieved August 19, 2019, from http://www.mindtools.com/selfconf.html

32. Which of the following is a potential impact of bribery and other corrupt practices on business: A. Decreased crime B. Greater efficiency C. Gained resources D. Loss of customer trust

32. D Loss of customer trust. If news gets out that a company has been engaging in corrupt business practices, the company can suffer from the loss of customer and public trust. Customers generally do not support corruption in business and will refuse to buy from a business that engages in bribery or other fraudulent practices. Other potential results of corruption include decreased business efficiency, loss of resources, and an increase in black market crime and other types of organized fraud. Companies that engage in corrupt business activities generally do not enjoy greater efficiency or increased resources.

33. Which of the following is a reason to avoid lying: A. Lies can help you gain respect. B. Lies are hard to keep track of. C. Lies can get you out of trouble. D. Lies may turn a bad situation around.

33. B Lies are hard to keep track of. Honesty is the best policy. It's hard to keep track of lies, and they tend to sneak up on you after a while. Lies may get you out of trouble or turn a bad situation around for a short time, but, in the end, you will be in more trouble for lying. Liars lose respect, never gain it. SOURCE: EI:021 SOURCE: LAP-EI-021—Make the Honor Role (Acting Responsibly)

33. Labor laws in other countries are things businesses must consider due to A. monetization. B. entrepreneurship. C. globalization. D. communication.

33. C Globalization. Globalization is the rapid and unimpeded flow of capital, labor, and ideas across national borders. When companies do business with or in other countries, they must be aware of those other countries' labor laws. In this example, businesses do not have to consider entrepreneurship, monetization, or communication.

33. Sierra is an Asian-American woman who enjoys watching football. However, the commercials she sees on TV always seem to portray men as the only demographic that enjoys sports. The idea that only men watch football is an example of a(n) A. unconscious bias. B. prejudice. C. stereotype. D. discriminatory statement.

33. C Stereotype. Stereotypes are set images or assumptions about a person, group of people, or thing. Stereotypes are often widely recognized by a society as a whole. For example, the idea that only men enjoy watching sports is a stereotype. Prejudice is an opinion or judgment that is based on feeling or hearsay, rather than fact. Unconscious bias is bias that we are unaware of and unable to control. This type of bias happens automatically through the quick judgments we make. A discriminatory statement would involve discrimination, or unfair treatment of a person or group based on the person's or group's characteristics. This examp

33. Why is it sometimes difficult to be honest about strengths? A. Few people have strengths. B. No one likes to recognize strengths. C. Weaknesses are more significant than strengths. D. We don't want to brag.

33. D We don't want to brag. It's sometimes difficult to be honest about strengths. We don't want to seem as if we're bragging or stuck up. However, recognizing our talents, abilities, and the things we do well is a healthy and acceptable thing to do. Everyone has strengths. Weaknesses are not more significant than strengths.

34. Jackson travels to many other countries for work. Before he visits a new country, he always researches the customs and language of the country to avoid offending his clients. Jackson is paying attention to __________ considerations. A. technological B. cultural C. financial D. economic

34. B Cultural. When traveling to other countries for business, it's important to research cultural differences. Considering the country's culture can help you avoid offending clients. This is not an example of technological, financial, or economic considerations.

34. Bill punishes each of his staff exactly the same way when they break the rules. Bill is being A. generous. B. empathetic. C. biased. D. consistent.

34. D Consistent. Consistency means treating everyone the same regardless of the situation or circumstances. Since Bill treats all of his staff the same way, he is being consistent. This situation does not show that Bill is empathetic, biased, or generous. SOURCE: EI:127 SOURCE: LAP-EI-127—Fair or Foul? (Demonstrating Fairness)

34. Jenna just realized that she failed to do an important and difficult task that her boss had assigned to her. The task needs to be completed by tomorrow morning. What should Jenn do to show that she has initiative? A. Ask her teammates to help complete it B. Complete what she can before her workshift is over C. Ask her boss to extend the deadline D. Work late to complete it on time

34. D Work late to complete it on time. Working late shows that Jenna has initiative because she is willing to work hard to accomplish her assigned work. If Jenna leaves the work unfinished, asks for an extended deadline, or asks her teammates to help, she will show a lack of initiative by not accepting personal responsibility for completing her assignment on time.

35. Which of the following is an example of a limited decision: A. Brushing your teeth B. Buying a jacket C. Ordering lunch D. Getting married

35. B Buying a jacket. Buying a jacket is a limited decision that is not made frequently and involves some degree of consideration. Brushing your teeth and ordering lunch are everyday decisions that are considered routine decisions. Getting married is an extensive decision because it carries a lot of risk and a long-term impact. SOURCE: EI:091 SOURCE: LAP-EI-091—Worth the Risk (Assessing Risks of Personal Decisions)

35. New jobs, new products, and support for the local economy are all contributions that __________ make to society. A. politicians B. entrepreneurs C. entry-level employees D. managers

35. B Entrepreneurs. Entrepreneurs make many contributions to society, including new jobs, new products, and support for the local economy. This is not necessarily true of politicians, entry-level employees, or managers.

35. Ben and Melissa were partners for a group project at school. After Melissa failed to complete her part of the project on time, Ben decided not to work with her again on the next project—even though Melissa wanted to work with Ben. Ben no longer trusts Melissa because she A. didn't take responsibility for her actions. B. shared confidential information with others. C. didn't follow through on her commitments. D. was disrespectful toward Ben.

35. C Didn't follow through on her commitments. Perhaps the most important thing you can do to build trust is to keep your promises. If you don't do what you say you'll do, it's difficult for others to count on you. In this example, Melissa didn't complete her part of the project on time. As a result, Ben no longer trusts her to be his partner for the next group project. It's also important to avoid sharing confidential information with others, to respect other people, and to take responsibility for your actions; however, this example best demonstrates the importance of following through on commitments.

36. You want to get straight A's and impress your teachers, so you consider cheating on tests to make sure you do well. You're facing an ethical dilemma because of your A. desire to prove yourself. B. conflicting values. C. pressure from others. D. bad role models.

36. A Desire to prove yourself. The desire to look good at work or at school can lead to ethical dilemmas. If, for example, you want to prove yourself at school, you may be tempted to cheat on your tests. This is not an example of being influenced by conflicting values, pressure from others, or bad role models. SOURCE: EI:124 SOURCE: LAP-EI-124—What's the Situation? (Reasons for Ethical Dilemmas)

36. Gia's department gets several new interns who are recent college graduates. Gia assumes that they will not do a good job because she knows that young people are not hard workers. Gia is engaging in A. respectfulness. B. stereotyping. C. adaptability. D. researched beliefs.

36. B Stereotyping. Stereotyping is generalizing people based on their backgrounds. When Gia assumes that all young people are not hard workers, she is engaging in stereotyping because she's generalizing the interns based on their age. She is not being respectful or adaptable. Gia's beliefs are not researched— they are her personal biases and opinions.

36. Which of the following statements regarding legally binding contracts is true: A. A contract is legally binding even if one party does not accept an offer. B. Only one party has to be in agreement for the contract to be valid. C. Contracts are never required to be in writing to be legally binding. D. Something of value must be exchanged for something else of value.

36. D Something of value must be exchanged for something else of value. A legally binding contract requires two things: a clear agreement by all involved parties, and mutual promises to exchange things of value. A contract is not legally binding if any involved party is not in agreement with the terms of the contract. Under certain laws, contracts must be in writing to be legally valid; however, not all laws require written contracts. If one party does not accept an offer to exchange items of value, the contract is not legally binding.

37. Which of the following examples best illustrates someone practicing "not knowing": A. Louis doesn't look up unknown information on his phone right away. B. Sandy tries driving along the back roads instead of taking the highway. C. Pete makes a list of all of the things that he cannot control. D. Rosa practices deep breathing and other relaxation techniques.

37. A Louis doesn't look up unknown information on his phone right away. Tolerating ambiguity is all about being comfortable with not knowing what will happen or what the "correct" action is. If you can get comfortable with the unknown, however, you won't try to fill in the blanks with wrong or incomplete information. Louis is allowing himself to accept the unknown without quickly trying to figure out the answer. Sandy's drive along back roads instead of the highway is an example of stepping out of her comfort zone rather than practicing not knowing. Pete is doing a reality check rather than practicing not knowing. Finally, Rosa is practicing mindfulness rather than practicing not knowing.

37. Jon is constantly checking and responding to email during the workday. Because of this, it takes him twice as long to finish writing a report. This is an example of how A. perfectionism allows people to better manage commitments. B. organization leads to overcommitment. C. commitment leads to professional success. D. technology hampers one's ability to manage commitments.

37. D Technology hampers one's ability to manage commitments. Technology makes it difficult to manage commitments because it is easier to do more—and to do more at once. Jon finds it difficult to focus on getting one task done because of the constant presence of his email, prompting him to take on other commitments before he finishes the first. This is not an example of how organization leads to overcommitment, how commitment leads to professional success, or how perfectionism allows people to better manage commitments. SOURCE: EI:077 SOURCE: LAP-EI-077—Commit to It! (Managing Commitments in a Timely Manner)

37. Trey acts on opportunities at his job and solves problems before they occur. Trey is A. empathetic. B. reactive. C. adaptable. D. proactive.

37. D Proactive. Proactive people, like Trey, act on opportunities when they see them and solve problems before they occur. People who are reactive are hesitant to take action until a problem occurs or someone asks them to help. Employers value proactive employees much more than reactive ones. Adaptability and empathy are personality traits that are often related to initiative, but Trey is not showing them in this example.

38. Ethical employees are responsible workers who can be counted on to A. do whatever it takes to get ahead. B. complete the tasks they start. C. copy the actions of celebrities. D. discuss personal issues with coworkers.

38. B Complete the tasks they start. Ethical employees are responsible workers who adhere to a standard of appropriate employee behavior. They can be counted on to complete the tasks they start. They do not do whatever it takes to get ahead, or copy the actions of celebrities if those actions are unethical. They do not discuss personal issues with coworkers on company time.

38. Jennifer is a person who exhibits self-control in difficult situations. She always remains calm, is patient, empathetic, and a good listener. Her self-control helps her A. avoid a factual response. B. express a negative reaction. C. have a positive attitude. D. react in a defensive manner.

38. C Have a positive attitude. Self-control helps you have a positive attitude, which is very important to successful living. Self-control helps you replace negative thoughts with positive approaches to problems. In this example, Jennifer's self-control helped remind her that life may be full of difficult situations, but it is also full of opportunities. Self-control helps people in difficult situations avoid reacting negatively or in a defensive manner. People who exhibit self-control often are able to respond factually, even in difficult situations. SOURCE: EI:025 SOURCE: LAP-EI-014—Control Yourself! (Demonstrating Self-Control)

39. Isaac is having a tough time adjusting to his new job duties, so he asks his boss for help in dealing with the changes. His boss tells him the first step in handling a workplace change is understanding that change is A. unavoidable. B. unnecessary. C. intimidating. D. negative.

39. A Unavoidable. Change in the workplace is unavoidable. New hires, new job duties, new bosses, and other changes can be difficult adjustments for employees. As Isaac's boss reminds him, understanding that change is unavoidable is the first step in accepting it. Change is necessary in all companies. Although Isaac may find the change intimidating or negative at first, looking at the situation that way will not help him adjust to it.

38. When Ross misses a deadline at work, he's quick to blame everyone, including his boss, for not reminding him about the deadline. He also blames his coworkers for not helping him finish the project on time. Ross needs to A. ask others to accept the responsibility for his actions. B. create better excuses for missing the deadline. C. accept personal responsibility for his actions. D. tell his boss that he needs a deadline extension.

38. C Accept personal responsibility for his actions. It's important for Ross to take responsibility for his own actions and decisions at work. He should not blame others for his mistakes, because it is not his boss's or coworkers' responsibility to make sure he meets his deadline. Ross should not create excuses or ask others to accept the responsibility. If he knows ahead of time that he cannot meet his deadline, he could ask his boss for a deadline extension. However, he first needs to accept responsibility for his actions

38. Whenever Rosa starts to think negatively, she imagines a big red "STOP" sign and pushes the bad thoughts out of her head. Rosa is practicing A. gratitude journaling. B. pessimism. C. positive self-talk. D. thought stopping.

38. D Thought stopping. Thought stopping is a technique used to help maintain a positive attitude. It involves imagining a "STOP" sign whenever a negative thought enters the mind. In this example, Rosa is practicing thought stopping—not pessimism, positive self-talk, or gratitude journaling. Positive self-talk involves giving yourself encouragement and praise for personal successes. Gratitude journaling involves writing down what you're thankful for. Pessimistic people always look on the negative side of life. If Rosa was being pessimistic, she would allow her negative thoughts to continue

39. Rachel, a high school senior, works at a grocery store. When her boss schedules her to work on prom night, she explains to her boss that she already bought tickets to the dance and asks her to reschedule her for the next day. Her boss, however, won't budge—she says Rachel has to work on prom night or lose her job. Rachel's boss most likely lacks A. respect. B. empathy. C. rationality. D. logic.

39. B Empathy. Empathy is the ability to put yourself in another person's place or to see a situation from another person's point of view. Someone who is empathetic can relate to another person's feelings, thoughts, and experiences. In this example, Rachel's boss lacked empathy by forcing her to work on prom night. If she was more empathetic, she would have realized how miserable it would be for Rachel to miss out on prom and agreed to let Rachel work another day. Rachel's boss did not necessarily lack respect, rationality, or logic in this example. She simply acted without empathy.

39. You should expect some criticism on your job performance because a certain amount of criticism on the job is A. cruel. B. tolerable. C. necessary. D. senseless.

39. C Necessary. Criticism is used by your employer or supervisor to let you know how you can improve your job performance. It lets you know what you are doing wrong and what is expected of you. Constructive criticism is not cruel or senseless. Fair criticism is not only tolerable but valuable and desirable. SOURCE: EI:003 SOURCE: LAP-EI-015—Grin and Bear It (Using Feedback for Personal Growth)

4. When Arthur travels out of the country, he picks up some souvenirs. When he tries to bring them back home with him, he discovers that he has to pay a tax on them. Arthur must pay the A. customs duty. B. travel tax. C. travel duty. D. souvenir tax.

4. A Customs duty. Goods that are brought across international borders are often subject to a tax called a customs duty. This is meant to control the flow of goods. It is not called a travel tax, a travel duty, or a souvenir tax.

4. Which of the following is a rule of good listening: A. Be thinking about what you will say next. B. Eliminate background noise. C. Listen with empathy. D. Stand as close as possible to the speaker.

4. C Listen with empathy. Empathy is the ability to put oneself in another person's place. Listening with empathy helps the listener understand the speaker's point of view. You should stand a reasonable distance from the speaker. Standing too close may be interpreted as aggressiveness. If you are thinking about what you will say next, you may not hear everything that the speaker says. Background noise exists in all environments and cannot be eliminated. SOURCE: CO:017 SOURCE: Lehman, C., Dufrene, D., & Walker, D. (2020). BCON (10th ed.) [p. 29]. Boston, MA: Cengage Learning, Inc.

4. Why do countries often impose customs duties on products moving into and out of their country? A. To prevent illegal drugs and other contraband from being transported across borders B. To encourage foreign trade by allowing goods to flow across borders with no regulation C. To discourage foreign trade by prohibiting goods from moving across borders D. To protect the country's economy and residents by controlling the flow of goods

4. D To protect the country's economy and residents by controlling the flow of goods. A customs duty is a tax or tariff imposed on goods when transported across international borders. The purpose of these duties is to protect each country's economy and residents by controlling the flow of goods. The purpose of customs duties is not to encourage foreign trade by allowing goods to flow across borders with no regulation. However, customs duties do not completely prohibit goods from moving across borders, either. The purpose of customs duties is not to regulate illegal drugs or contraband.

40. Which of the following individuals is exhibiting cultural sensitivity: A. Omar sees his Asian-American friend preparing an unfamiliar dish for lunch and says: "That looks really good. Could you tell me what's in it?" B. Karen tells her new colleague, an African-American woman, that "she doesn't see race." C. Wyatt notices that one of his classmates wears a hijab and says to his friends: "I don't care what religion other people practice." D. Liz loudly remarks: "It's not fair that some students get excuses to leave school early for religious holidays."

40. A Omar sees his Asian-American friend preparing an unfamiliar dish for lunch and says: "That looks really good. Could you tell me what's in it?" Some people think that exhibiting cultural sensitivity means ignoring or minimizing differences. They may say things like, "I don't see you as being female" or "I don't care which religion you choose to follow." While these people may have the best intentions, they are still missing the mark. Valuing diversity does not mean ignoring differences or minimizing other people's unique experiences; rather, it means openly acknowledging differences and believing that they are assets instead of problems. An example of exhibiting cultural sensitivity is showing interest in someone's culture or heritage, like Omar did by asking about his friend's lunch. All the other options provided demonstrate people being culturally insensitive.

40. Liam feels sorry for a coworker who was fired, but he doesn't understand how she feels. What trait is Liam showing? A. Empathy B. Sympathy C. Tact D. Codependence

40. B Sympathy. Sympathy is simply the ability to recognize another person's feelings, while empathy is the ability to understand another person's feelings or concerns. Tact is the ability to do or say the right thing in any circumstance. A person is in a codependent relationship if s/he compromises her/his own needs and wants to care for another person who may be experiencing emotional, physical, or financial difficulties.

40. Why should a business inform employees that their email will be monitored? A. To reduce its liability B. To communicate policies C. To respect their privacy D. To control operating costs

40. C To respect their privacy. Some businesses consider email to be corporate property and routinely monitor the messages that employees send and receive. If a business monitors email, it should inform its employees in order to respect their privacy. Employees have the right to know if someone in the business will read their email so that they can decide the type of information they will include. They might not want to send or receive personal messages if they know a manager might read their mail. A business that informs employees that their email will be monitored is communicating a policy. Businesses do not inform employees that their email will be monitored to reduce their liability or to control operating costs. SOURCE: EI:029 SOURCE: Lehman, C., Dufrene, D., & Walker, R. (2020). BCOM (10th ed.) [pp. 90-91]. Boston, MA: Cengage Learning, Inc.

41. How does communicating with others help you to maintain a positive attitude? A. By providing you with support for your ideas B. By helping you to feel understood C. By allowing you to justify your opinions D. By informing you about others' achievements

41. B By helping you to feel understood. Sharing the good and bad of life with others helps you to understand them and to feel understood yourself. Feeling understood supports your positive attitude, while feeling misunderstood leads to a negative attitude. Others will not always support your ideas or agree with your opinions even if you can justify them. Learning about others' achievements may tend to make you feel negative if you allow yourself to be overly impressed by them.

41. When the company president finished his speech complimenting the staff on their work and promising raises and bonuses, the staff members rose to their feet and applauded him. The staff members were expressing their approval through A. sign language. B. nonverbal communication. C. animated conversation. D. inappropriate behavior.

41. B Nonverbal communication. Nonverbal communication is forms of communication that do not involve the use of words. It may include facial expression, body posture or movement, eye contact, and appearance. In this situation, the staff members are using body movements to express approval. This is not inappropriate behavior. The group is making an animated response, but it does not involve conversation or sign language, which is a formal kind of communication method using signs to represent letters and words. SOURCE: EI:007 SOURCE: Lehman, C.M., & Dunfrene, D.D. (2011). Business communication (16th ed.) [pp. 47-56]. Mason, OH: South-Western Cengage Learning.

41. Rowan's coworker tells her that he's looking for another job. He asks Rowan to keep their conversation confidential. Rowan should A. tell only her boss about the conversation. B. not tell anyone about the conversation. C. tell customers about Rowan's job search. D. share the information only with trusted colleagues.

41. B Not tell anyone about the conversation. If Rowan's coworker asks her to keep their conversation confidential, she should not tell anyone what they discussed. This means not telling her boss, her customers, or even a trusted colleague.

41. Which of the following statements accurately describes the difference between collaboration and cooperation: A. Collaboration is primarily about going along with others; cooperation is about having other people go along with you. B. Collaboration is less of a challenge than cooperation; cooperation requires heavier involvement and contribution than collaboration. C. Collaboration involves helping other people meet their goals; cooperation involves setting goals and coming up with ideas together. D. Collaboration involves generating ideas with other people; cooperation involves accepting other peoples' ideas.

41. D Collaboration involves generating ideas with other people; cooperation involves accepting other peoples' ideas. Collaboration is an arrangement in which two or more parties contribute and share responsibilities to achieve success. While collaboration requires cooperation and teamwork, it is about much more than getting along with others or helping them with a task or project. Collaboration is generally more of a challenge than cooperation, since it requires more input and involvement. Collaboration involves generating ideas and working toward goals with other people, rather than helping others meet their own goals.

42. Greg attempts to help a customer at his store purchase a sofa, but after looking at all the available models, the customer decides not to make a purchase. Greg asks the customer why he doesn't want to buy and the customer explains that he can find similar sofas for a better price at other stores. By talking to the customer, Greg solicited __________ that can help the store determine future pricing. A. feedback B. compliments C. blame D. advice

42. A Feedback. It's important for people in many careers, including sales, to solicit feedback from customers. Feedback can help you learn why a customer didn't make a purchase, which is information you can use to improve the business. By asking the customer why he didn't make a purchase, Greg is not soliciting compliments, blame, or advice.

42. Which of the following individuals is using persuasion to convince his/her audience to go along with something: A. Eric threatens his younger brother with blackmail if he doesn't help Eric with the dinner dishes. B. Melody presents several statistics to her parents about a university she wants to attend in the hopes that they will allow her to go there. C. After yelling at his roommate Mark for forgetting to lock the door, Oscar demands that Mark buy a security system for the apartment. D. Tanya tells her friends that they cannot come to a big party she's throwing unless they help her complete a school project.

42. B Melody presents several statistics to her parents about a university she wants to attend in the hopes that they will allow her to go there. Persuasion is the ability to get people to see things your way, to do things your way, or to agree with you. When you persuade, you try to influence people to change their attitudes or behavior. Persuasion is not fighting, losing your temper, or threatening other people. Melody is the only individual presented here that is effectively using persuasion.

42. Individuals who respect their own personal rights, as well as the rights of others, have developed A. passiveness. B. defensiveness. C. assertiveness. D. aggressiveness.

42. C Assertiveness. Assertiveness is a positive trait that is vital to personal happiness and career success. Passiveness is the failure to exercise personal rights and a lack of respect for personal needs. Defensiveness is an attitude of constantly expecting to be attacked. Aggressiveness is a negative trait, and aggressive behavior is characterized by a willingness to ignore the rights of others and to exploit them to achieve personal goals. SOURCE: EI:008 SOURCE: LAP-EI-018—Assert Yourself (Assertiveness)

42. Should you be able to adjust to change more quickly over time? A. Yes, the more change you cope with, the faster you adjust. B. Yes, practicing adjusting to change makes it go faster. C. No, adjusting to change takes most people very little time. D. No, the length of time it takes depends on the kind of change.

42. D No, the length of time it takes depends on the kind of change. Don't expect your adjustment to change to take place overnight. The length of time it takes to adjust will depend upon the kind of change that has occurred. Practicing adjusting may make it easier but not faster. Different people require varying amounts of time to adjust to change.

43. The goal of quality circles is to A. complete a specific one-time task. B. improve performance in many areas. C. solve a large organizational problem. D. increase social contact among organizations.

43. B Improve performance in many areas. A quality circle is a team of employees with similar roles who meet regularly to discuss issues and solve problems. Quality circles stay intact from project to project and seek to make improvements in a wide range of areas across the organization. Quality circles generally do not seek to solve a large organizational problem, complete a specific one-time task, or increase social contact among organizations. SOURCE: EI:045 SOURCE: LAP-EI-045—Team Up (Participating as a Team Member)

43. Employers should care about limiting employee stress because high stress in the workplace can contribute to A. lower health care costs. B. increased productivity. C. more absenteeism. D. less employee turnover.

43. C More absenteeism. Stress can lead to absenteeism and tardiness at work. When absent workers are the norm, employers have a hard time relying on employees, adhering to deadlines, and getting work done. Employers, therefore, should take steps to limit employee stress as much as they can. High stress in the workplace also leads to decreased productivity, increased health care costs, and higher employee turnover.

43. You think some changes should be made to your department, but first you have to convince your boss to agree with you. Which of the following actions should you take to sell your boss on your ideas: A. Send your boss an email instead of discussing things in person. B. Spend most of your time talking, rather than listening. C. Talk to your boss in person about your ideas. D. Take it personally if your boss rejects your ideas.

43. C Talk to your boss in person about your ideas. People are often more responsive when they can hear your voice versus just reading your words. When trying to sell an idea to your boss, it can be helpful to talk to her/him in person instead of sending an email. You should spend more time listening than talking. You should not take it personally if your boss rejects your ideas.

44. Sasha is tempted to look up the answers to her homework problems. She knows she will not get caught, and she doesn't think the homework is helpful. How could you best help Sasha in this situation? A. Show her why ethical behavior is valuable to her and others. B. Report Sasha's behavior to your teacher. C. Follow the rules and hope Sasha notices. D. Tell Sasha that you do not approve of her decision to cheat.

44. A Show her why ethical behavior is valuable to her and others. Many people ignore ethics because they don't realize how important ethics are—and how serious the consequences of unethical behavior can be. Sasha does not see the importance of behaving ethically in regard to her homework. To best help her, you should make sure she understands why it is important to be ethical. She will then be more likely to do so. You should not necessarily report her behavior to your teacher because Sasha has not done anything wrong, yet. While it is a good idea to follow the rules, Sasha's belief that ethics aren't valuable likely won't change just from noticing what you do. Finally, telling Sasha that you do not approve of her decision to cheat wouldn't be as effective as explaining why ethical behavior is valuable. SOURCE: EI:132 SOURCE: LAP-EI-132—Practice What You Preach (Modeling Ethical Behavior)

44. Just as Ryan is leaving work to get dinner with friends, his coworker asks for help with a project that needs to be finished immediately. Ryan agrees to help his coworker, even though this means he'll be late to meet his friends. Ryan is behaving A. passively. B. aggressively. C. assertively. D. forcefully.

44. A Passively. Passive behavior is conduct in which people fail to exercise their own rights or to respect their own needs. A passive person usually displays an attitude based on the desire to avoid conflict at all costs. When Ryan puts his own needs aside to help a coworker, he is behaving passively. Aggressive behavior is conduct based on a willingness to ignore the rights of others and to take advantage of them to achieve personal goals. Forceful behavior would likely be considered aggressive. Assertiveness is the ability to express yourself, communicate your point of view, and stand up for your rights, principles, and beliefs.

44. A manufacturing company formed a team of food scientists, chemical engineers, salespeople, and marketing managers to develop a new type of cereal. This group of people is most likely to be a A. standing committee. B. self-directed work team. C. cross-functional team. D. quality circle.

44. C Cross-functional team. A cross-functional team includes team members from different areas of specialization who work together to complete a task. For example, an automobile company might form a team that includes engineers, salespeople, managers, and marketing personnel when planning future business strategies. These teams include a wide variety of experiences and skillsets. A self-directed work team is one in which all individual members work together without the supervision of a leader. There is not enough information provided in this example to determine if this team is self-directed or not. A standing committee is one that exists and functions on a permanent basis, whereas a short-term or ad hoc committee is created for a particular or temporary reason. The team in this example is likely a shortterm committee, not a standing committee. A quality circle is a team of employees with similar roles who meet regularly to discuss issues and solve problems. The team in this example is not a quality circle since each member has a different specialty.

45. Joanna is well-respected at work. She consistently follows through on her commitments, is honest with her employees and superiors, and takes responsibility for her actions when she makes mistakes. Because of her behavior, Joanna has positive relationships with others and a sense of purpose and pride. Joanna probably wouldn't enjoy these benefits if it weren't for her A. confidentiality. B. ethical behavior. C. position at work. D. optimistic personality.

45. B Ethical behavior. When people behave ethically, they make good decisions, form positive relationships, and are more likely to achieve success. If you demonstrate ethical behavior, you will be respected and trusted by those around you. You'll impress employers, customers, teachers, and friends who'll know they can count on you. You will also be happier and more confident in your choices and actions. You'll know you're doing the right thing and won't have to worry about the negative consequences of unethical behavior.

45. Ben and Tasha are coworkers who are applying for the same supervisory position in the company and now they are NOT speaking to each other. The reason for the conflict is A. exclusion. B. unclear boundaries. C. authority. D. unclear expectations.

45. C Authority. Conflicts occur for many reasons. Power struggles can arise when people want to control, or be in charge of, the same situation. In the example, Ben and Tasha want the same job, so the reason for their disagreement is authority. Disagreements about what constitutes appropriate behavior are conflicts due to unclear boundaries. When people don't know what they're supposed to do, or what someone else expects them to do, the conflict is due to unclear expectations. Exclusion is a reason for a conflict that stems from a feeling of being left out of an activity.

45. One way to develop an achievement orientation is to establish A. personal relationships. B. flexible deadlines. C. reachable goals. D. safe conditions.

45. C Reachable goals. Individuals who have an achievement orientation want to do their best and be successful. One way to develop an achievement orientation is to establish reachable goals. Achieving goals builds confidence and self-esteem and encourages individuals to continue achieving. If the goals are unrealistic, individuals might fail, which often leads to giving up rather than trying to achieve in the future. To achieve the goals, it is often necessary to establish firm deadlines. Establishing personal relationships and safe conditions are not ways of developing an achievement orientation. SOURCE: EI:027 SOURCE: LAP-EI-027—High Hopes (Developing an Achievement Orientation)

45. Which of the following statements is true of office politics: A. Taking part in office gossip is a good strategy. B. Office politics are best ignored. C. You can only control your own behavior. D. Being aggressive is the best way to win.

45. C You can only control your own behavior. Office politics are present in every office environment and can often lead to a negative working experience. However, it's important to remember that while you cannot eliminate office politics, you can control your own behavior. This means being respectful, being positive, and avoiding office gossip. Ignoring office politics doesn't make them go away. Being aggressive is not generally a good way to handle office politics; instead, focus on being assertive.

46. What should change leaders do after they're done leading a change? A. Celebrate success. B. Address resistance. C. Explain why the change was necessary. D. Create a communication plan.

46. A Celebrate success. Leading change can be a long, hard process. Change leaders should celebrate a successful change with everyone who was involved. They should address resistance before the change is complete. Explaining why the change is necessary and creating a communication plan are tasks that should be done early in the change process. SOURCE: EI:005 SOURCE: LAP-EI-022—Start the Revolution (Leading Change)

46. Which of the following decision-making techniques requires close collaboration among group members: A. Consensus building B. Voting C. Minority rule D. Majority rule

46. A Consensus building. Close collaboration is an essential element of consensus building. Consensus building is not voting—in consensus building, no one wins. Majority rule usually occurs when a large part of the group has the power to decide. Minority rule occurs when a few of a group's members are allowed to make the decision for everyone.

46. The employees at Axion Pharmaceuticals have always held weekly team meetings at the same time every Friday afternoon. Originally intended to be productive brainstorming sessions, the meetings have become boring and ineffective over the years. Jackson, a new hire at the company, thinks that the meetings could be more effective if the format was changed. But Jackson doesn't want to "rock the boat" with his new ideas—after all, everyone else seems to just go along with the meetings. So Jackson says nothing, and the boring meetings go on. This example demonstrates the potential negative consequences of A. refusing to accept the norm. B. challenging the status quo. C. accepting risk. D. herd mentality.

46. D Herd mentality. It's human nature to want to be accepted by our peers. As a result, we have a natural tendency to follow the crowd; in most cases, it simply feels safer to belong to a group than to do your own thing. The practice of following the crowd is often referred to as herd mentality. It is a mob mentality that causes people to be influenced by others or adopt certain behaviors. This example demonstrates the potential negative consequences of herd mentality. Because Jackson simply followed the crowd rather than voicing his opinion, the boring meetings at his company will go on unchanged. Jackson followed the status quo, rather than challenging it or refusing to accept it. He decided against taking the risk of speaking out, and so he remained quiet.

47. When management and employees have the same idea of what the business is capable of being in the future, they are sharing a(n) A. vision. B. goal. C. dream. D. idea.

47. A Vision. A vision for a business is what the business wants to become. Management and employees have a shared vision when they have the same idea of what the business is capable of being in the future. When everyone in the business shares the vision, that vision has a better chance of becoming a reality because everyone is working for the same future. A business might realize a vision by setting several goals to achieve. A vision is more than a dream or an idea. SOURCE: EI:060 SOURCE: LAP-EI-060—Vision Quest (Enlisting Others in Vision)

47. A good coach is someone who assists a person by A. letting that person figure things out for him/herself. B. helping the person improve his/her performance. C. pointing out the person's mistakes. D. obtaining that person's knowledge and skills.

47. B Helping the person improve his/her performance. A coach is someone who assists others by helping them improve their performance, grow, and achieve more. Coaches provide guidance rather than letting people figure things out for themselves. A good coach focuses on ways the coachee can improve his/her performance instead of focusing on mistakes. A coach is more likely to share his/her knowledge and skills rather than obtaining knowledge and skills from someone else.

48. Calling in sick only if you are truly sick is an example of what type of behavior that builds positive working relationships? A. Carrying your own weight B. Getting to know others on your work team C. Having a good attitude D. Being cooperative

48. A Carrying your own weight. Calling in sick only if you are truly sick is an example of carrying your own weight in the process of building positive working relationships. When you carry your own weight, you are not making your coworkers pick up unnecessary slack. Although calling in only when you're truly sick does not demonstrate getting to know others on your work team, your honesty does relate to having a good attitude and being cooperative. The example is best, however, for carrying your own weight as you foster positive working relationships. SOURCE: EI:037 SOURCE: LAP-EI-037—Can You Relate? (Fostering Positive Working Relationships)

48. In times of crisis, business leaders are needed to A. encourage overwhelmed employees. B. provide a new vision for an organization. C. lead change. D. get the business off the ground

48. A Encourage overwhelmed employees. In times of crisis, business leaders are needed to encourage overwhelmed employees and help the organization weather the storm. A crisis isn't the time to provide a new vision or to lead change—these tasks are better accomplished when the business is stable. Getting the business off the ground is an important leadership task when a business is just starting up.

48. When giving recognition to someone, it is important to avoid being A. genuine and authentic. B. culturally insensitive. C. personalized to the person. D. timely and appropriate.

48. B Culturally insensitive. When giving recognition, it is important to be mindful of the person's cultural background to avoid offending him/her. For example, it would be inappropriate to reward a Jewish employee for her excellent performance by giving her tickets to see a Christmas play. It is also important to be genuine and authentic, personalized to the person, and timely and appropriate when giving recognition.

49. Being respectful when considering conflicting viewpoints means A. not jumping to conclusions. B. thinking about things subjectively. C. listening to your gut instead of facts. D. avoiding people different from you.

49. A Not jumping to conclusions. Being respectful when considering conflicting viewpoints means avoiding jumping to conclusions or making assumptions before you've heard the entire viewpoint. It also means considering things objectively, not subjectively. To show respect when considering conflicting viewpoints, you should listen to the facts, not to your gut. Avoiding people that are different from you is not respectful.

49. What is the benefit of shared vision to an organization? A. It creates an ethnocentric environment. B. It ensures that the team's goals are achievable. C. It serves as a guide for decision making. D. It supports a groupthink attitude.

49. C It serves as a guide for decision making. When a shared vision exists, all members of the organization understand and support the organization's purpose. Successful organizations set goals and make decisions to fulfill the organization's purpose, which is based on the vision. A shared vision does not ensure that goals are achievable. Groupthink is a form of extreme cohesiveness that occurs when individuality and independent thinking within the group are discouraged. Ethnocentrism is the belief that your own culture is naturally better than other cultures. Unattainable goals, ethnocentrism, and groupthink tend to create circumstances that hinder an organization's ability to achieve its purpose.

49. Which of the following is a true statement about coaches: A. They are also known as teachers. B. They decide on goals for their coachees. C. They focus on performance instead of knowledge. D. They are usually judgmental.

49. C They focus on performance instead of knowledge. Instead of focusing on knowledge, like teachers do, coaches focus on performance. Although coaching may involve teaching, it isn't necessarily the same thing. Coaches do not decide on goals for their coachees; instead, they work collaboratively to come up with goals. Coaches should be accepting, not judgmental

49. It is important to learn how to handle conflicting viewpoints because A. it is impossible for people to change their minds. B. other people's opinions are generally wrong. C. you need to know how to convince others that you are right. D. you will face conflicting viewpoints many times in life.

49. D You will face conflicting viewpoints many times in life. There will be plenty of instances in your life when you will be confronted with viewpoints and opinions that conflict with each other, including at home, at school, and at work. It is important, therefore, that you learn how to handle them so that you can be a successful student, employee, and citizen. Other people's opinions are not always wrong, and you don't need to know how to convince others that you are right. It is not impossible for people to change their minds. SOURCE: EI:136 SOURCE: LAP-EI-136—Pick a Side (Considering Conflicting Viewpoints)

5. Matt works in customer service and often has to deal with customer inquiries. Which of the following should he do if he wants to respond in an appropriate way: A. Act disinterested while the customer is asking a question. B. Answer the question immediately, even if he doesn't know the answer for sure. C. Pay close attention to the question and ask for clarification, if needed. D. Spend as much time talking to and answering the customer as possible.

5. C Pay close attention to the question and ask for clarification, if needed. When answering inquiries, it's important to pay close attention to the question. If Matt wants to offer great customer service, he should be sure to ask for clarification, if necessary. He should not answer the question if he doesn't know the answer. He should show the customer that he is interested in his/her question. He shouldn't spend more time than necessary answering customer questions—it's important to be concise when answering inquiries. SOURCE: CO:060 SOURCE: Means, T. (2019). Business communication (3rd ed.) [Lesson 14.1]. Boston, MA: Cengage Learning, Inc.

5. Trina is preparing a report for her boss on the importance of diversity in the workplace. Which of the following sources would be the best for her to use: A. A personal blog post on LinkedIn B. Wikipedia article C. Academic journal article D. A college student's thesis paper

5. C Academic journal article. An academic journal article is a valid source for reference. Most are written by highly educated professors. Wikipedia is not a fully reliable source because anybody is able to add information on the site. A personal blog post is usually one person's opinion on a subject and does not have to be verified to post on social media sites. A college student's thesis paper is unreliable because it comes from a student that is currently learning the material, so there's no way to tell how correct s/ he is.

5. Aiden is doing research for a school project. While searching the Internet, he finds an article that he thinks may be helpful for his project. Which of the following would indicate that the author of the article is most likely a credible source: A. The author has included his/her personal Twitter handle B. There is no background information provided about the author C. The author lists his/her professional background and qualifications D. The author is currently a student in college

5. C The author lists his/her professional background and qualifications. Credible authors generally provide background information about themselves such as where they attended school or received training. If there is no background information provided by an author, it is best to do further research on the individual to determine if s/he is a credible source of information. Including a personal Twitter handle does not necessarily imply credibility. Articles and reports by college students may be useful in certain situations but usually should not be used as primary sources of information because their credibility cannot be guaranteed.

50. Julian just started a new job, and he wants to adapt to the company's culture. Which of the following should he do on his first day: A. Meet and talk to as many new coworkers as he can. B. Tell coworkers about the culture at his previous job. C. Spend as much time on his computer as possible. D. Remember that corporate culture is the same at all companies.

50. A Meet and talk to as many new coworkers as he can. On his first day, Julian wants to get a good idea of his new company's culture. To do so, he should meet all of his new coworkers and understand the personalities that make up the company. This can help him begin to understand the business's culture. The culture at his previous job does not have an effect on the culture at this job. Although Julian should be getting work done, spending all of his time on his computer will not help him get to know his coworkers. Corporate culture varies from company to company

50. Which of the following is an ethical issue: A. Deciding whether to have french fries or a salad B. Deciding whether to lie to a friend C. Choosing between buying a new shirt or a new book D. Choosing which movie to see this weekend

50. B Deciding whether to lie to a friend. When you're dealing with an ethical situation, you're deciding whether something is right or wrong. Often in an ethical situation, if you pick the wrong choice, someone (or something) could be harmed. This doesn't necessarily mean that the issue must be life or death, but that the wrong action could cause someone or something to be hurt. When you're deciding whether or not to lie to a friend, there is a right and wrong decision. There is no right or wrong decision when you're deciding what to eat for lunch, what to buy, or what movie to see. SOURCE: EI:123 SOURCE: LAP-EI-123—Rules To Live By (Nature of Ethics)

50. Which of the following behaviors demonstrates positive (rather than negative) office politics: A. Chatting with the "office gossip" to get the scoop on the company's upcoming layoffs—and then telling your friends what you heard B. Building relationships with a variety of people at work to further your professional network C. Spreading a rumor about the company CEO that you heard from a coworker, even though you're not sure if it's entirely true D. Choosing employees to work on an important project with you based on whether they brought you gifts for your birthday

50. B Building relationships with a variety of people at work to further your professional network. Office politics are unavoidable. Everyone brings their own unique interests, desires, and goals into the workplace—and oftentimes, those interests, desires, and goals affect our behavior. However, there are ways to navigate office politics positively and without harming others. One example of this is building positive relationships with a variety of people at work to further your professional network. There is no harm in meeting a variety of different people, and it helps you build your professional brand. Chatting with the "office gossip," spreading rumors, and playing favorites are all examples of negative office politics at work.

52. In an ancient society, townspeople used cows to pay for the things they needed. The cows are an example of __________ money. A. commodity B. representative C. fiat D. paper

52. A Commodity. Commodity money is a physical item that has value on its own. A cow, for example, has value even if it is not being used as money. Fiat money is not backed by a commodity. Instead, it has value because the government says it does. Representative money can be traded in for something valuable. A cow is not an example of paper money.

50. Employees who value differences in the workplace are more satisfied and increase the company's A. benefits. B. workforce. C. productivity. D. assets.

50. C Productivity. Workers who feel good about the workplace are more motivated and more productive. This means that both the workers and the business benefit, since greater productivity usually means more income for the workers and more profits for the business. Assets are the property owned by the company, such as real estate, equipment, and inventory. Workforce is the total number of workers employed by a company. Benefits are the extras provided by businesses, such as vacation time, sick leave, retirement, medical insurance, and stock options.

51. The disadvantage to using credit cards to pay for goods and services is that you A. pay interest on purchases. B. establish a credit rating. C. earn quarterly dividends. D. defer cash payments.

51. A Pay interest on purchases. Credit is the arrangement by which individuals or businesses can purchase now and pay later. Many types of businesses (e.g., banks, large retailers) offer credit cards to consumers and businesses to purchase goods and services. Usually, the credit card issuer sends the credit card holder a monthly statement. The information on the statement includes a list of the purchases made during the billing cycle and the amount owed for the purchases, which includes the interest charges. If the credit card holder pays the minimum amount due, the amount of interest owed accumulates on the balance due until the debt is paid off. Because interest rates can be high, this can be a disadvantage to the credit card holder. It is important to establish a good credit rating in order to borrow money in the future from other lenders. Therefore, establishing a credit rating is not necessarily a disadvantage. Credit card holders do not earn quarterly dividends on their credit cards. Temporary deferment of cash payment is an advantage to credit card holders.

51. One of the best ways to adapt to a new company's culture is by A. continuing to adhere to the policies and procedures at your previous workplace. B. asking questions about new policies and procedures you aren't familiar with. C. pretending that you know all the new workplace rules and norms. D. questioning the new policies and procedures if you don't agree with them.

51. B Asking questions about new policies and procedures you aren't familiar with. Your supervisor at a new company should provide you with effective training on any policies and procedures that you need to know about for your job. However, it's up to you to ask questions if you don't understand something. It's much better to ask for clarification than to accidentally violate a policy or follow the wrong procedure because you were afraid to get help. It's a bad idea to continue to adhere to the policies and procedures of your previous workplace, since it's unlikely that they will be the same at your new workplace. It's also a bad idea to pretend that you know all the new workplace rules and norms or to question the new policies and procedures while you are still a new hire. Instead, you should carefully learn the workplace rules at your new company and follow them to the best of your ability.

51. Coins and paper money are types of A. dividends. B. contracts. C. bonds. D. currency.

51. D Currency. Currency is the money that a country uses to buy and sell goods and services. There are several types of currency. For example, coins and paper money are types of currency because they can be used to buy products. Coins and paper money generally are used by individuals to purchase the products they need. Bonds are interest-bearing certificates issued by the government that promise to pay bond owners a certain sum at a specified time. A dividend is a sum of money paid to an investor or stockholder as earnings on an investment. Dividends are often sent to the investor in the form of a check. A contract is a legal agreement between two or more businesses stating that one party is to do something in return for something provided by another party. SOURCE: FI:059 SOURCE: Frankenfield, J. (2019, July 14). Currency. Retrieved August 19, 2019, from http://www.investopedia.com/terms/c/currency.asp

51. Cornell wants to start his own business, but he isn't exactly sure what product or service he wants to pursue at the moment. The first step of the entrepreneurial process that Cornell should focus on is A. verification. B. a feasibility study. C. illumination. D. idea generation.

51. D Idea generation. Coming up with an idea is the first step in the entrepreneurial process; without an initial idea, none of the other steps can be completed. A feasibility study is conducted to see if the idea is viable. Two steps in the feasibility study are illumination (where the idea becomes realistic) and verification (where the idea is found to be practical and useful).

52. Ariana wants to promote her handcrafted jewelry in several different countries. Promoting her products in multiple countries is most likely to result in A. fewer cultural barriers. B. reduced financial risk. C. exposure to new markets. D. fewer compliance challenges.

52. C Exposure to new markets. When a business expands internationally, it often gains exposure to new markets for its products. When international customers discover and enjoy that new business's products, sales often increase. A business operating in several different countries will have more cultural barriers to deal with because customer preferences, traditions, and trends vary from country to country. When a business operates in many countries, it faces more compliance challenges since it must deal with a greater number and types of regulations imposed by different countries (e.g., ingredients and packaging used for products). Business expansion into international markets exposes a business to more financial risk since different currencies, tariffs, and shipping fees often reduce profits.

52. Investing can help build wealth because it A. eliminates the need to save for retirement. B. guarantees that you will not lose any money. C. doesn't require any money to start investing. D. increases your savings over your lifetime.

52. D Increases your savings over your lifetime. Investing can help you build wealth and meet your financial goals because it often increases the value of your money over time. Investing does not guarantee that you will not lose any money; however, if you invest wisely, it is unlikely that you will suffer significant losses overall. Investing does require money to begin, but it does not require a lot of money. You can invest as little or as much as you would like. While investing can be a good way to ensure your future financial health, it does not eliminate the need to save for retirement. SOURCE: FI:062 SOURCE: Caldwell, M. (2019, March 7). How to begin to build wealth. Retrieved August 19, 2019, from https://www.thebalance.com/how-do-i-begin-to-build-wealth-2386145

53. The Fair Credit Reporting Act is important to consumers because it A. provides guidelines that institutions must use in extending credit. B. gives them the right to inspect the files of their credit history. C. ensures that they are not denied credit for any discriminatory reason. D. makes it easy for them to compare the terms of different credit systems.

53. B Gives them the right to inspect the files of their credit history. This lets the consumer make sure that there are no errors in the report or, if errors exist, to have them corrected. The Truth-in-Lending Act makes it easy for consumers to compare the terms of different credit systems and provides guidelines that institutions must use in extending credit. The Equal Credit Opportunity Act protects consumers from being discriminated against when applying for credit. SOURCE: FI:002 SOURCE: LAP-FI-002—Give Credit Where Credit Is Due (Credit and Its Importance)

53. Which of the following is NOT a concept related to the time value of money: A. Opportunity cost B. Scarcity C. Interest rates D. Future value

53. B Scarcity. Scarcity of resources has little to do with the time value of money. It's relevant to a discussion of pricing or economic resources. The time value of money is a measure of its opportunity cost, or what the spender is foregoing by spending now instead of saving. Interest rates are a measure of that opportunity cost. Future value is the value of money at some future point.

53. Which of the following is considered a source of taxable income: A. A personal loan from a friend B. Rent payments received from tenants C. Group medical insurance premiums D. Life insurance payout due to a loved one's death

53. B Rent payments received from tenants. Rent payments received from tenants are considered a source of taxable income. A personal loan from a friend is not considered a source of income except in cases where the friend forgives your loan (i.e., doesn't require you to pay it back). Group medical insurance premiums are monies paid for the cost of health insurance and are not considered a source of income. Life insurance payouts are not considered a source of taxable income.

53. Chandra wants to develop a personal budget. What is the first step she should take? A. Allocating income B. Estimating her income C. Determining regular expenditures D. Establishing her goals

53. D Establishing her goals. Before Chandra figures out the details of her budget, she needs to establish her goals. She can't create an effective or realistic budget unless she knows what goals she's focusing on. Estimating income, determining regular expenditures, and allocating income occur later in the budget development process.

54. Under which of the following circumstances is a cosigner held legally responsible for paying the balance owed on a bank loan: A. The borrower defaults on the loan. B. The lender defaults on the loan. C. The borrower's interest rate increases. D. The lender's interest rate increases.

54. A The borrower defaults on the loan. When borrowers agree to a loan, they are making a legal contractual agreement to pay back the loan in a certain manner within a specific period of time. When the borrower does not have the collateral or credit history to obtain the loan, the lender often requests that another person cosign for the loan. A cosigner is responsible for paying the loan if the borrower defaults on it, which means the borrower does not make the scheduled payments to the lender. Changes in interest rates do not affect a cosigner's legal responsibility for paying the balance owed on a loan.

54. What course of action can a lender take if a debtor's account is past due? A. Claim defamation B. File a judicial lien C. Apply for bankruptcy D. Liquidate assets

54. B File a judicial lien. A lien is a legal claim to an item of property that protects the seller if the buyer does not complete his/her payments. If a debtor does not make payments as promised, the lender can take legal action to obtain the debtor's assets or items of collateral, such as a home, car, etc. The debtor, rather than the lender, may need to liquidate assets to fulfill her/his legal obligation to the lender. If the debtor doesn't have any assets, s/he may need to file for bankruptcy. Defamation involves writing or saying something that damages an individual's or an organization's reputation. SOURCE: FI:063 SOURCE: USLegal. (1997-2019). Judicial lien law & legal definition. Retrieved August 19, 2019, from http://definitions.uslegal.com/j/judicial-lien/

54. Lalita receives a check as a birthday gift. Before she deposits it in the bank, she signs her name on the back of the check in black ink. Lalita is __________ the check. A. registering B. endorsing C. writing D. withdrawing

54. B Endorsing. Signing the back of a check is considered endorsing it. Lalita must do this if she wants to deposit the check into her account. You keep track of checks in a check register. Lalita did not write the check. Instead, the person who gave her the check wrote it. Lalita is not making a withdrawal.

54. What is the main motivation for a business to offer credit accounts to its customers? A. To collect finance charges B. To delay the receipt of income C. To avoid paying income taxes D. To encourage more business

54. D To encourage more business. The main reason that businesses offer credit accounts to their customers is to encourage more business and to remain competitive with other businesses that also offer credit. When businesses offer credit accounts, customers benefit from extended payment periods. Businesses do not benefit from delayed income. Providing credit accounts does not help a business avoid taxes. When customers are late in making a payment on their credit account, they typically have to pay finance charges to help compensate the creditor for lost income and to encourage timely payments. Since late payments negatively impact a business's cash flow, collecting finance charges is not a primary reason to offer customer credit accounts.

55. A government charges a $0.184 tax on each gallon of gasoline, regardless of location or price. This is an example of __________ tax. A. sales B. excise C. estate D. capital gains

55. B Excise. Excise taxes are specific, targeted taxes that are applied to specific goods and use a flat rate. In contrast, sales tax applies to almost every purchase and is a percentage of the sale price. Sales taxes also vary by state and by the type of item bought. Estate tax is imposed on the transfer of property upon the death of the owner. Capital gains tax is charged on profits made from the sale of assets such as stock or real estate. SOURCE: FI:067 SOURCE: Fay, B. (2019). Types of taxes. Retrieved August 19, 2019, from https://www.debt.org/tax/type/

55. Each month, Maggie checks her bank statement against her own record of her deposits and withdrawals. Maggie is __________ her bank statement. A. disputing B. challenging C. reconciling D. creating

55. C Reconciling. When Maggie checks her bank statement against her own record, she is reconciling the bank statement. Maggie is checking to make sure that no mistakes have been made and that she has recorded all of her information correctly. She is not challenging or disputing her bank statement, although she may choose to do so if she suspects her bank has made a mistake. The bank, not Maggie, creates the statement.

55. Shiori has just started her first full-time job as a customer service representative and is earning $2,500 each month. She is working on a list of financial goals. Which of the following is an example of a realistic long-term financial goal for Shiori: A. Earmark $50 each week to use for utility expenses B. Save $200 each month for a $1,000 down payment on a used car C. Save $150 every month to help buy a house in five years D. Save $3,000 every month for a retirement fund

55. C Save $150 every month to help buy a house in five years. Saving $150 each month to put toward a down payment on a house in five years is an example of a realistic long-term goal. Realistic goals are achievable with the amount of income an individual has and/or earns. Long-term goals are goals that take five or more years to accomplish. Saving money for a $1,000 down payment on a used car is a short-term goal since it can be achieved in less than a year. Earmarking money for utility expenses is an example of budgeting. Since Shiori only earns $2,500 each month, saving $3,000 every month for a retirement fund is unrealistic.

56. Rosie is in the process of choosing a financial-services provider, but she has so many options that she feels overwhelmed. What is the first step she should take? A. Ask herself, "What kinds of financial services do I want?" B. Ask the financial-services provider for references. C. Ask the financial-services provider how much s/he charges. D. Find out what licenses the financial-services provider holds.

56. A Ask herself, "What kinds of financial services do I want?" The first thing Rosie should do when selecting a financial-services provider is ask herself what kinds of financial services she wants. This will help her narrow down her focus. When she has an idea of what she wants out of a financial-services provider, she can ask about references, charges, and licenses.

56. When writing a check, what information goes after the phrase "Pay to the order of"? A. Your signature B. The amount paid C. The name of the recipient D. The current date

56. C The name of the recipient. When writing a check, the name of the check's recipient goes on the line after the phrase "Pay to the order of." The amount paid goes on the line below. The signature goes in the bottom right corner. The current date goes in the top right corner. SOURCE: FI:560 SOURCE: Pritchard, J. (2019, May 14). See how to write a check—Step-by-step explanation. Retrieved August 28, 2019, from https://www.thebalance.com/how-to-write-a-check-4019395

56. What does the gross pay on a pay stub reflect? A. Retirement plan contributions made by the employee B. Income left over after all deductions have been made C. Overtime pay provided by the employer D. All monetary income provided by the employer

56. D All monetary income provided by the employer. Gross pay reflects the full amount of money earned by an employee before any deductions are made. The income left over after all deductions have been made is considered net pay. Overtime pay is included along with regular wages to calculate gross pay. Pre-tax retirement plan contributions made by the employee are subtracted from gross pay, reducing net pay as well as taxable income, which in turn reduces the employee's tax burden.

57. Why is it important to read and reconcile bank statements? A. To balance an account B. To calculate interest C. To withdraw excess money D. To make a deposit

57. A To balance an account. Reconciling bank statements involves comparing the entries in a checkbook with the entries listed on the bank statement. This procedure is also known as balancing an account. The purpose is to determine the actual amount of money that is in the account. To do this, it may be necessary to add in deposits that have not been posted or subtract checks that have not cleared. If the checking account pays interest, that amount will be listed on the bank statement. It is not necessary to read and reconcile bank statements to withdraw excess money or to make a deposit. SOURCE: FI:070 SOURCE: Ryan, J.S., & Ryan, C. (2017). Personal financial literacy (3rd ed.) [Lesson 5-1d]. Boston, MA: Cengage Learning, Inc.

57. Aria wants to invest her money, but she doesn't want to take much risk. She also wants to be able to access her money at any time. Which type of investment should she consider? A. A savings account B. A certificate of deposit (CD) C. Stocks D. Collectibles

57. A A savings account. A savings account is an investment in which you lend money to a bank for the benefit of being able to access it at pretty much any time. Savings accounts are insured by the FDIC, so they're extremely safe. A certificate of deposit (CD) is a lending investment in which you lend money to a bank at a set interest rate for a particular period of time. With CDs, you are guaranteed a certain rate of return, but you can't access your money before the end of the time period without paying a penalty. Stocks and collectibles are more risky and would not allow Aria to access her money.

57. Dan is working part-time delivering pizzas. He has a new credit card with 0% interest, a credit limit of $5,000, and no minimum payment required for the first six months. The card also grants 1% cash back for all purchases. How can he wisely handle his account for the first six months? A. Make no payments until the six-month period is over B. Pay the balance in full each month C. Earn more cash back by using all of the available credit D. Make small monthly payments

57. B Pay the balance in full each month. To use a credit card responsibly, an individual should only make purchases that are within his/her budget and that s/he is able to pay in full each month. It is wise to avoid large credit card balances since they can be difficult to pay and eventually incur interest. It's unwise to delay payments on a credit card and run up a large balance. Waiting until the six-month period is over will likely result in high interest charges. Using all available credit is unwise because it can negatively impact a person's credit score and create a large balance that charges interest and is difficult to pay.

58. Calista has very little savings and needs help with all aspects of financial planning, including setting goals, making a plan, and choosing appropriate investment products. She has little financial knowledge and a low tolerance for risk. What type of financial-services provider should she seek? A. Boutique finance firm for wealthy clients B. Certified financial planner C. Stock broker D. Certified public accountant

58. B Certified financial planner. Since Calista needs help developing a plan and choosing investment products, she will benefit from the services of a certified financial planner (CFP). CFPs are experienced professionals who are qualified and committed to maintaining current knowledge of investment products and helping clients set financial goals. Stock brokers sell stock based on clients' desires and requests and do not routinely assist with planning and goal setting. Certified public accountants primarily help clients manage their current finances and do not have specialized knowledge of investment products. Boutique financial firms typically only offer their services to clients who possess a great deal of financial wealth.

58. When reconciling bank statements, it is important to consider A. services not available online. B. the number of transactions. C. checks that have not cleared. D. the types of payroll deposits.

58. C Checks that have not cleared. Reconciling bank statements involves comparing the entries in a checkbook with the entries listed on the bank statement. In many cases, the balance will be different because checks have been written that have not cleared the bank. Therefore, these amounts will not appear on the bank statement. To verify the actual amount in the account, it is necessary to subtract the checks that have not cleared from the balance listed on the bank statement. When reconciling bank statements, it is not necessary to consider the number of transactions, services not available online, or the types of payroll deposits.

58. Who is responsible for verifying that all the information reported on a consumer's credit report accurately reflects his/her personal transactions? A. Organizations reporting consumer payments B. Credit bureaus C. Organizations that have extended credit D. Consumers

58. D Consumers. Consumers should monitor their credit reports because an error could be made by any organization contributing information to a credit bureau. Monitoring credit reports is also helpful in detecting fraud. Credit bureaus can help resolve errors on a consumer's credit report, but they are not responsible for verifying all the credit information contained within a report. Organizations that have extended credit or reported consumer payments can only verify transactions that involved those organizations. SOURCE: FI:072 SOURCE: Madura, J., Casey, M., & Roberts, S. (2014). Personal financial literacy (2nd ed.) [pp. 156- 165]. Mason, OH: South-Western Cengage Learning.

58. Balraj has insurance to protect himself if his house is damaged by a natural disaster or an accident. He's using insurance to protect himself against A. deductibles. B. opportunity. C. poverty. D. risk.

58. D Risk. Insurance is meant to protect against risk. In Balraj's case, he purchases insurance to protect himself against a loss caused by damage from an accident or a natural disaster. Although insurance can help people minimize financial loss, it cannot prevent poverty. A deductible is the amount that Balraj would pay before his insurance company begins to pay

59. Which of the following is an advantage of using technology in accounting: A. Using technology makes accounting more efficient. B. Technology may make information less secure. C. Employees require training to use the technology. D. Technology eliminates accounting mistakes.

59. A Using technology makes accounting more efficient. Using technology, such as accounting software, can make accounting much more easy, cost-effective, and efficient. However, one disadvantage of computerized systems is that they can make it possible for information to be stolen by hackers. Employees require training to use technology, and that costs a business time and money. Technology cannot completely eliminate accounting mistakes.

59. Maya has $3,000 that she wants to invest for the long term. She is willing to assume some financial risk in exchange for a high return. What type of investment should she select? A. Rare antique gold coins B. Stocks C. Money market account D. Government bonds

59. B Stocks. An individual willing to assume financial risk and invest for the long term should consider stocks as an investment tool. Stocks carry risk but can greatly increase in value over the long term. Money market accounts carry little risk but usually don't earn significant interest. Government bonds are debt securities issued by a government. Government bonds typically carry little risk and offer a low rate of return. Rare antique gold coins are not recommended as a profitable investment tool since it's difficult to predict what coin collectors will be willing to pay for them in the future.

59. Which of the following is a tool that often helps individuals organize and manage their mortgage, utility, and insurance bills: A. Credit report B. Scatter chart C. Daily work calendar D. Monthly payment schedule

59. D Monthly payment schedule. Developing a monthly payment schedule can help individuals organize, manage, and pay their bills on time. Computer spreadsheets, schedule templates, and calendars are several effective ways to manage the bill-paying process. Regardless of the format used, individuals should note the payee's name, amount due, due date, date paid, and the method of payment. If writing a check, the check number should also be noted on the payment schedule. Individuals do not organize and manage their bills by using a scatter chart, a work calendar, or credit report. SOURCE: FI:565 SOURCE: Haagensen, E. (2019, June 25). Procrastinator's guide to bill payment. Retrieved August 19, 2019, https://www.investopedia.com/articles/pf/08/stop-paying-bills-late.asp

6. What communication style is most appropriate to use when you are providing a friend with personal advice? A. Empathic B. Formal C. Judgmental D. Businesslike

6. A Empathic. Being empathic is acting according to an intellectual identification with the thoughts, feelings, values, attitudes, and/or actions of another person. It is often helpful to imagine yourself in your friend's place, to try to understand how s/he feels. By doing so, you often gain insight and can better help your friend by providing thoughtful advice. If you are too formal, judgmental, or businesslike with a friend, you may come across as uncaring, and you may offend your friend. SOURCE: CO:084 SOURCE: Lehman, C., Dufrene, D., & Walker, R. (2020). BCOM (10th ed.) [p. 29]. Boston, MA: Cengage Learning, Inc.

6. What should you do first when someone gives you a set of written instructions to follow? A. Read the instructions in their entirety. B. Comprehend what the instructions are telling you. C. Reference the instructions when you get stuck. D. Skim the instructions for a general overview.

6. A Read the instructions in their entirety. The first step to effectively following written instructions is to read the written instructions all the way through at least once, not to skim for a general overview. Comprehension of written instructions is a result of reading and understanding what the instructions are telling you in-depth. Although you should reference the instructions when you get stuck, this step should follow a full read-through of the instructions.

6. Which of the following is an effective strategy for identifying important information while reading: A. Skipping the preface and introduction to spend more time on the main content B. Paying special attention to headings, titles, and graphics C. Skimming the text instead of reading it all word for word D. Reading only the first and last paragraphs of the text

6. B Paying special attention to headings, titles, and graphics. One of the best strategies for extracting important information from a text is to pay attention to headings, titles, and graphics. These elements often point the reader to the main issues presented in the text and can help the reader better comprehend the information s/he is reading. It would be unwise to skip or simply skim any portion of a text. Important information could be presented in any section, including the preface or introduction.

60. Craig recently opened a new credit card account. Since he's short on cash, he decides to make only the minimum payments toward his debt each month. At the end of the year, however, he notices that his overall balance has gone up quite a bit. This is a result of A. the cost of credit. B. income tax. C. social security. D. Craig's credit score.

60. A The cost of credit. When you take out a line of credit, you agree to terms and conditions that outline how and when you will pay the money back. Most lines of credit have interest rates, which means that the lender can collect additional money from you if you fail to pay back the loan by a certain time. By making only the minimum payment each month, Craig's credit balance would have increased due to accumulated interest. The increased balance would not be a result of income tax, social security, or Craig's credit score. SOURCE: FI:782 SOURCE: Vohwinkle, J. (2019, June 25). The true cost of credit cards. Retrieved August 19, 2019, from https://www.thebalance.com/the-true-cost-of-credit-cards-1289627

60. Cash flow statements estimate when, where, and how much A. money flows into and out of the business. B. staff is hired and fired by a business. C. inflation will increase in the future. D. the economy will fluctuate in the coming years.

60. A Money flows into and out of the business. A cash flow statement is a financial summary with estimates as to when, where, and how much money will flow into and out of a business. Cash flow statements do not estimate when, where, or how much staff is hired and fired by a business or how much inflation will increase in the future. Studying economic trends can help a business create its cash flow statement.

60. When you are just beginning your career, what should be the main emphasis of your retirement planning efforts? A. Taking monthly payouts from acquired assets B. Adjusting retirement plan to maintain acquired wealth C. Setting aside money for retirement D. Matching your employer's contributions

60. C Setting aside money for retirement. The main emphasis of retirement planning early in one's career is saving money for the purpose of retirement. Near the end of one's career, adjustments help protect acquired wealth that is needed for retirement. Monthly payouts should not occur until one has reached retirement. Employees do not match employer's contributions. Some employers, however, match a percent of employee contributions to help employees meet retirement goals.

61. If Diedra wants to open a savings account to save money for her dream vacation, she should place her money in a deposit-taking institution, such as a(n) A. investment bank or mortgage company. B. savings and loan bank or investment bank. C. commercial bank or credit union. D. mortgage company or credit union.

61. C Commercial bank or credit union. Savings and loan banks, commercial banks, and credit unions are depositing-taking institutions. A credit union is a nonprofit financial cooperative set up to provide savings and credit services to its members, who own the credit union. Commercial banks offer a variety of services for consumers including checking and savings accounts, credit cards, and automobile loans. A savings and loan bank is a financial institution that offers savings accounts and makes loans to borrowers, most of which are for real-estate purchases. An investment bank is a financial intermediary that underwrites securities and facilitates mergers. A mortgage company specializes in real-estate (property) loans. SOURCE: FI:075 SOURCE: State of Connecticut. (2019). ABC's of banking. Retrieved August 19, 2019, from https://portal.ct.gov/DOB/Consumer/Consumer-Education/ABCs-of-Banking—Banks-Thrifts- and-Credit-Unions

61. Which of the following is true of corporate fundraising: A. Internet fundraising is exempt from regulations. B. Fundraising laws apply only to fundraising events. C. Nonprofits do not have to follow fundraising laws. D. All business must comply with fundraising laws.

61. D All businesses must comply with fundraising laws. Fundraising activities are regulated by law. This means that all businesses, including nonprofits, must comply with fundraising laws. Fundraising laws apply to all forms of fundraising, including events and Internet fundraising.

61. How can property insurance benefit an individual or organization? A. It ensures that the property will not go down in value. B. It accrues interest to increase the property owner's wealth. C. It eliminates the risk of lawsuits and financial loss. D. It reimburses the property owner for damage or theft.

61. D It reimburses the property owner for damage or theft. Property insurance provides financial reimbursement to the owner in the event of damage or theft. If there's a claim, the insurance policy will reimburse the policyholder for the actual value of the damage that occurred or the replacement cost to repair the damage. Property insurance offers liability coverage for accidents that occur on the property and makes payments to the affected parties. However, it does not eliminate the risk of lawsuits and financial loss. Property insurance does not protect property from depreciating, nor does it accrue interest.

62. Which of the following statements is true of good investment brokers: A. They are an investor's personal link to the stock exchange. B. Most of them are research analysts. C. They are responsible for making sure the investor makes money. D. They control an investor's money.

62. A They are an investor's personal link to the stock exchange. Investment brokers are licensed and registered "middlemen"—without them, you can't invest. Brokers are the only people who are authorized to buy and sell securities, so they are an investor's personal link to the stock exchange. Brokers are not research analysts. Research analysis is a separate part of a brokerage house where in-depth investigation of companies and industries takes place. Brokers are salespeople—they get paid to make transactions for investors. Brokers are responsible for providing suitable investment council at all times, but this doesn't necessarily mean they're responsible for making the investor money. It just means that the advice a broker gives has to make sense for the present financial situation. Good brokers realize that the investor is ultimately in control of his or her own money. While a broker can make suggestions for the investor to consider, s/he shouldn't pressure the investor into making any decisions. SOURCE: FI:076 SOURCE: Beers, B. (2019, June 25). How to pick a broker. Retrieved August 19, 2019, from https://www.investopedia.com/articles/younginvestors/06/firstbroker.asp

62. Which of the following most accurately describes the overall purpose of accounting: A. To keep track of income B. To estimate and pay taxes C. To maintain financial information D. To keep track of expenses

62. C To maintain financial information. The primary purpose of accounting is to accurately record and maintain all financial transactions and information. When accounting is performed correctly, it helps individuals and businesses keep track of their financial situation and make informed financial decisions. Estimating and paying taxes, keeping track of income, and tracking expenses are just a few of the financial activities achieved through accurate accounting.

62. Which of the following is a disadvantage of investing in bonds: A. They are issued by corporations or governments. B. Their returns do not keep up with inflation. C. You must pay a penalty for early withdrawal. D. They may take a long time to provide a return.

62. D They may take a long time to provide a return. Bonds are considered safe, reliable investments. However, the trade-off is that the investor must be willing to leave her/his money with the bond issuer for a long time before receiving the return. The rate of this return will not necessarily be lower than the rate of inflation. There is no penalty for early withdrawal from a bond—you just miss out on the return you would have gotten if you had left your money in it. Bonds are issued by corporations or governments, but this is not necessarily a disadvantage.

62. Becca just opened a restaurant, and she needs to make sure she has enough money to cover her expenses and make a profit. Becca needs to develop a(n) A. insurance policy. B. marketing department. C. contract. D. budget.

62. D Budget. A budget is an estimate of income and expense for a specific period of time. Developing a budget can help Becca make sure she has enough money to cover her expenses and make a profit. A contract and a marketing department would not necessarily help Becca make sure she has enough money to cover her expenses. An insurance policy would help Becca protect her business but would not help her keep track of expenses or make a profit.

63. How does a cash flow statement benefit a business? A. It estimates the business's anticipated cash flow. B. It identifies unpaid customer credit accounts. C. It predicts future business growth. D. It helps the business generate interest income.

63. A It estimates the business's anticipated cash flow. The cash flow statement is a business's best guess, or estimate, as to when, where, and how much actual cash will flow into and out of the business. Knowing when money will flow in and out is important because it warns businesses when they will be low on cash. Future business growth is typically predicted by analyzing the company's overall financial situation, assets, and business opportunities. A cash flow statement only includes actual monies received and does not identify unpaid customer credit accounts. Interest income is generated by financial investments.

63. A manager looks at financial information to see if the company can afford to purchase a popular new item it wants to add to its shelves. This is an example of using financial information to A. manage debt. B. increase sales. C. check up on the competition. D. reduce expenses.

63. B Increase sales. Businesses often want to add new products to their offerings as a way to increase sales. They need to study financial information to make sure they can afford to do so. Adding new products is not managing debt, checking up on the competition, or reducing expenses. SOURCE: FI:579 SOURCE: LAP-FI-009—By the Numbers (The Need for Financial Information)

63. What must Preston Enterprises pay to the insurance company to maintain its business liability insurance? A. Stipend B. Commission C. Fine D. Premiums

63. D Premiums. Insurance premiums are the fees that the insured pays to the insurer to obtain insurance coverage. A commission is a percentage of the total sale amount paid to the individual or business that makes the sale. A fine is a monetary sum paid to a government agency when an individual or business violates a law. A stipend is a fixed sum of money paid as a salary or allowance.

63. Stu, who runs the human resources department, requires all new employees to select five webinars to attend in their first year. This is an example of using technology for A. data storage. B. recruiting. C. performance management. D. training.

63. D Training. Webinars are an example of using technology in human resource management to develop and train employees. Recruiting normally wouldn't include webinars and happens prior to hiring an employee. Performance management deals with metrics to gauge employee performance. Data storage is essentially record-keeping and uses technology to store necessary files and information.

64. Which of the following is part of the product/service management function: A. Deciding on the products that a business will produce or order B. Getting products from producers to customers C. Informing customers about new and improved products D. Conducting research to find out as much as possible about customers

64. A Deciding on the products that a business will produce or order. The product/service management function involves deciding on the products that a business will produce or order. It is important because a business must offer the products that customers want and need to be successful. Getting products from producers to customers is part of the channel management function. Informing customers about new and improved products is part of the promotion function. Conducting research to find out as much as possible about customers is part of the marketing-information management function.

64. The Apex Company is a large, growing company with finance, accounting, operations, and sales departments. The company needs additional outside funding to pay for new buildings and equipment. What business department is responsible for ensuring the monies are available when needed? A. Accounting B. Finance C. Operations D. Sales

64. B Finance. When a business needs outside funding, it typically relies on its finance department to obtain the monies. A company's finance department is responsible for money management decisions, including obtaining the financing and capital needed to run a business. Accounting ensures that a company has accurate information about its current financial situation. A sales department is responsible for meeting company sales' goals. Operations is responsible for the effective use of a company's available resources to conduct business activities.

64. What type of accounting would most likely be used by a small-business owner who does not offer credit? A. COD method B. Accrual method C. Cash method D. Check method

64. C Cash method. Many small businesses that do not offer credit use the cash method because it tracks the actual amount of cash that the business has on hand. With the cash accounting method, income and expenditures are recorded at the time the money changes hands. Expenses are not recorded when they are incurred but on the date that the bills for them are paid. The accrual method records the expense at the time it is incurred, even if a check is used to pay the bill. COD and check are methods of payment but not accounting methods. SOURCE: FI:085 SOURCE: LAP-FI-085—Show Me the Money (Nature of Accounting)

65. When return on capital is positive, the company is A. growing in value. B. losing value. C. low on cash. D. paying out dividends.

65. A Growing in value. When return on capital is positive, the company is growing in value. When return on capital is negative, the company is losing value. A high return on capital would not indicate that a company is low on cash. Businesses can have a high return on capital but not pay out dividends. SOURCE: FI:354 SOURCE: LAP-FI-007—Money Matters (Role of Finance)

65. One principle on which the marketing concept is based is that a business should be able to meet its own goals when it A. sells products at fair and reasonable prices. B. focuses on the wants/needs of the business. C. achieves maximum production. D. demonstrates social responsibility.

65. A Sells products at fair and reasonable prices. The marketing concept is a philosophy of conducting business based on the belief that all business activities should be aimed toward satisfying consumer wants and needs while achieving company goals. When a business sets reasonable prices, customers want to buy the products, and the company meets its goal of making a profit. Achieving maximum production and demonstrating social responsibility do not guarantee that the business will meet its goals. Focusing on the business's wants/needs is contrary to the marketing concept.

65. What is the primary reason why a budget is an essential financial tool for a company? A. Because money is a limited resource, it must be carefully managed. B. Because money is an unlimited resource, it must be carefully managed. C. A budget helps a company predict company growth. D. A budget helps a company identify business opportunities.

65. A Because money is a limited resource, it must be carefully managed. A budget is a powerful tool that helps a business manage its limited financial resources to accomplish company goals. Virtually no resource is unlimited. A company typically uses past sales, sales forecasts, and possible business opportunities to predict growth. Companies identify opportunities by studying customer needs, competitors, and industry trends.

65. Why is goal setting important for every company? A. It is legally required. B. It helps companies measure progress. C. It guarantees customer satisfaction. D. It is a corporate formality.

65. B It helps companies measure progress. It's important for companies to establish goals, both general and specific, so they can measure progress and set priorities. Goals are not legally required. Although companies can set goals to improve customer satisfaction, merely creating goals does not guarantee customer satisfaction. Goal setting is an important part of a business's success; it is much more than just a corporate formality.

66. If you want to avoid excessive debt, which of the following actions should you take: A. Create a budget, and stick to it. B. Avoid big purchases unless they're impulse buys. C. Pay the minimum payment due each month on your credit card. D. Use a credit card for purchases you can't afford.

66. A Create a budget, and stick to it. The best way to avoid debt is to not spend more money than you have. This means creating a budget and sticking to it! Sometimes big purchases (such as cars, houses, or a college education) are necessary, but they should never be impulse buys. Big purchases should be planned (and budgeted) for. Making just the minimum payment each month can lead to lots of interest, which you don't want if you're trying to avoid debt. If possible, you should always pay off the full balance on your credit card. Using credit cards for purchases you can't afford is dangerous and can quickly lead to excessive debt if you aren't careful. It's a good idea not to charge purchases to your credit card if you know you won't be able to pay for them when your bill comes. SOURCE: FI:568 SOURCE: Irby, L. (2019, June 25). How to manage debt of any size. Retrieved August 19, 2019, from https://www.thebalance.com/how-to-manage-your-debt-960856

66. Asha's coworker Melissa often makes offensive jokes about her religion. This is an example of __________ in the workplace. A. ethical behavior B. harassment C. discrimination D. high morale

66. B Harassment. Harassment is defined as any kind of unwelcomed behavior that is carried out for the purpose of irritating or intimidating another person. Making jokes about someone's religion is an example of workplace harassment. It is not an example of ethical behavior, discrimination, or high morale.

66. Simon is creating a report for his boss and comes across a passage he wants to use in the report: "Time stands still for nobody, and yet we all think it revolves around us." He changes the passage to "We all think time revolves around us, but it doesn't stand still for anybody" and references the source in the document. Simon is A. quoting. B. paraphrasing. C. summarizing. D. plagiarizing.

66. B Paraphrasing. Paraphrasing is restating a message in other words in order to confirm or clarify its meaning. Quoting involves duplicating an exact passage and attributing that passage to the original author. Summarizing involves putting main ideas in your own words for a broader overview of the material. Plagiarizing is stealing the work or idea of another without referencing the original source to pass it off as your own. Simon is not plagiarizing because he references the source in his document.

67. Certain gemstones such as emeralds are more plentiful in some countries than others. How does widespread international marketing impact this situation? A. It discourages trade between nations. B. It encourages trade between nations. C. It limits customers' access to emeralds. D. It makes emeralds extremely valuable.

67. B It encourages trade between nations. When a product or resource is more plentiful in one country, international marketing encourages trade so customers from other countries can acquire the goods they desire. International marketing increases customers' access to products and resources from other regions. A product's value is largely determined by consumers' wants and desires and is impacted by demand and scarcity. If demand is high and the product is scarce, the value increases. Widespread marketing will make emeralds available to more markets which can help increase demand, but it may or may not influence consumers' personal preferences. Making emeralds widely available will also increase production and actually reduce the scarcity of emeralds. There's no way to determine if widespread marketing will make emeralds extremely valuable to consumers.

67. Which of the following is a downside of electronic information storage: A. Files take up too much storage space. B. Too much information can lead to overload. C. Information can be more quickly sorted. D. It's more costly to store information electronically.

67. B Too much information can lead to overload. Electronic storage makes it possible to keep much more information, since electronic files do not take up storage space like physical files do. Keeping so much information can cause an information overload. Information can be more quickly sorted when it is stored electronically, but this is an advantage. Electronic storage generally saves money

67. When HR management executives participate in a company's long-range planning efforts, they are taking part in A. financial analysis. B. marketing. C. budgeting. D. strategic management.

67. D Strategic management. When HR management executives participate in a company's long-range planning efforts, they are taking part in strategic management. Strategic management may take into account marketing, budgeting, and financial analysis, but HR managers will be present to ensure that the company is planning now to have the human resources it needs tomorrow. SOURCE: HR:410 SOURCE: LAP-HR-035—People Pusher (Nature of Human Resources Management)

68. Which of the following marketing functions focuses on informing all current and potential customers about the business's products: A. Marketing-information management B. Promotion C. Product/Service Management D. Pricing

68. B Promotion. The promotion function focuses on informing customers about new products, improved products, new uses for existing products, and special values on products. Businesses use a variety of communication channels to inform customers about products including advertising and sales promotion. The marketing-information management function focuses on gathering, accessing, synthesizing, evaluating, and disseminating information to aid business decision-making. The product/service management function focuses on obtaining, developing, maintaining, and improving a product mix in response to market opportunities. The pricing function focuses on determining and adjusting prices to maximize return and meet the customers' perceptions of value. SOURCE: MK:002 SOURCE: LAP-MK-001—Work the Big Seven (Marketing Functions)

68. In the United States, the Hispanic population is an example of a __________ that marketers often target. A. social influence B. subculture C. membership group D. reference group

68. B Subculture. A subculture is a culture within a culture and is often based on ethnicity, religion, or geographic location. So, while you might be an American, you might also be an Asian American, a Jewish American, a New Englander, a "farm kid," etc. The growing Hispanic population in the United States is an example of a subculture that marketers often target. The Hispanic population is not an example of a social influence, membership group, or a reference group. A membership group is a social group such as a school organization, church group, neighborhood association, or sports team. A reference group is a group that someone aspires to be a part of, or a group that someone wants to distance him/herself from.

68. Which of the following situations best demonstrates why businesses should retain their records: A. A business is planning to send press releases to the local newspaper. B. A business is planning to send anniversary cards to employees on the date of their employment. C. A business is planning to sell out to another company. D. A business is planning to use webinars for employee training.

68. C A business is planning to sell out to another company. When businesses merge or sell out to other companies, they need to provide records to prove their value to the other companies. Although businesses might retain documentation of employee anniversaries, press releases, and training plans, these records have less significance than records needed to provide proof of a business's income, expenses, and capital investments.

68. Which of the following could cause a legal issue associated with information management: A. Using a secure network to store data B. Requiring a passcode to unlock work stations C. Shutting down your computer before leaving the office D. Accidentally emailing a client's personal information to others

68. D Accidentally emailing a client's personal information to others. A client's personal information is confidential and should be treated as such. Requiring a passcode to unlock work stations, shutting down computers after work hours, and using a secure network to store data are all ways to prevent legal issues from occurring.

69. The Blue Shark Company needs a way to allow employees to share messages and files securely. They should create a(n) A. intranet. B. Internet. C. Facebook page. D. public website.

69. A Intranet. An intranet is an internal network similar to the Internet that is accessible only by authorized personnel and is used to access information and communicate with others within an organization. The Internet is the only worldwide network of computers that enables users to access information and communicate with others. A Facebook page and a public website are not secure for sharing files and messages.

69. To complete a report about commercial loans, Lola needs to review a specific online article called, "The Truth About Commercial Interest Rate Increases." Which of the following search entries will provide Lola the most accurate results: A. [-the -truth -about -commercial- interest -rate -increases] B. {truth_ commercial interest rate_ increases} C. "the truth about commercial interest rate increases" D. "{-the_truth_about_commercial_interest_rate_increases-}"

69. C "The truth about commercial interest rate increases." When you place quotes around a phrase or title in the search field, the search engine will show results only for those websites containing that exact phrase. Placing a dash in front of the word means that you do not want the word included in the search. Placing an underscore between words and parentheses around the phrase is less likely to retrieve the exact results desired. SOURCE: NF:078 SOURCE: Google. (2019). Refine web searches. Retrieved August 19, 2019, from https://support.google.com/websearch/answer/2466433?hl=en

69. Your boss asks you to prepare a report about current market trends. Which of the following is the most efficient way to obtain the needed information: A. A customer survey B. Library research C. Customer interviews D. Online research

69. D Online research. One of the most convenient and efficient ways of obtaining information is an online search. Search engines such as Google and Bing make it easy to locate information using keywords and phrases. Using online searches gives you access to the widest selection of current information in many different formats. Library research can help provide reliable information, but it takes more time to conduct. Interviewing customers and conducting surveys are examples of primary research that can be costly and time-consuming to conduct.

7. Matthew's boss recently showed him how to use his company's copier. While Matthew was listening to her instructions, however, he was distracted by a TV in the next room. As a result, Matthew jammed the machine when he tried to use it to make copies. Which of the following listening strategies did Matthew fail to implement in this example: A. Giving undivided attention to the person speaking B. Asking for clarification if something is unclear C. Repeating the instructions in your own words D. Highlighting important information in the instructions

7. A Giving undivided attention to the person speaking. When receiving oral instructions, it's important to give the speaker your undivided attention so that you don't miss any of the directions. In this example, Matthew failed to give his boss his undivided attention because he was distracted by the TV. Asking for clarification if something is unclear and repeating the instructions in your own words are also good listening strategies; however, it's not clear if Matthew did either of these things or not. Highlighting important information is a good strategy for written instructions and text, not for oral instructions.

7. While attending a presentation, Jimmy indicates to the speaker that he would like to ask a question. Before stating his question, Jimmy briefly sums up the speaker's lecture. Which communication technique is Jimmy using? A. Nonverbal B. Paraphrasing C. Probing D. Gestures

7. B Paraphrasing. Paraphrasing involves restating a message in other words in order to confirm or clarify its meaning. Nonverbal communication techniques include gestures, nodding, smiling, etc. Probing is seeking to uncover what others think, feel, or know

7. Which of the following is a true statement about listening skills while handling telephone calls: A. If you listen very carefully, you will not have to ask questions. B. It is easy to listen while carrying on other activities. C. Listening is a natural skill that doesn't require practice. D. Being a good listener requires active-listening skills.

7. D Being a good listener requires active-listening skills. To be a good listener while handling telephone calls, you need to learn to shut out distractions, put aside what you are working on, and focus on what the speaker is saying. This is not a natural skill, but it is one that can be learned through practice. There will still be times when, no matter how carefully you listen, you will have to ask questions. SOURCE: CO:114 SOURCE: Lehman, C., Dufrene, D., & Walker, R. (2020). BCOM (10th ed.) [p. 29]. Boston, MA: Cengage Learning, Inc.

70. A website that ends in .gov would most likely have __________ information than a website that ends in .com. A. more trustworthy B. less trustworthy C. more recent D. less recent

70. A More trustworthy. If a website ends in .gov, it is more likely to have trustworthy, researched information. Websites that end in .gov can only be owned and operated by the government, while websites that end in .com can be owned and operated by anyone. Sites that end in .gov are not necessarily more or less recent than sites ending in .com.

70. When evaluating the reliability of a journal article that addresses a complex issue or topic, it is important to consider the author's A. expertise and knowledge. B. age and expertise. C. gender and age. D. knowledge and gender.

70. A Expertise and knowledge. An important consideration when evaluating the reliability of a journal article is the author's expertise and knowledge about the subject matter. Age and gender are not primary factors to consider when evaluating the reliability of a journal article that addresses a complex issue or topic. SOURCE: NF:079 SOURCE: University of Southern Queensland. (n.d.). Using the R.E.V.I.E.W. method. Retrieved August 28, 2019, from https://lor.usq.edu.au/usq/file/f9ec7f38-3676-4197-9e68- c6739cba79b0/1/evaluating-research- resources.zip/content/index.html#/lessons/MOSKsWQL4Xa60zyzBsGN- E188F7svvk4?_k=oxrdq3

70. You've been asked to attend a meeting with an organization's board of directors to convince them to buy your company's customer relationship management software. Which of the following best describes the type of information you should provide and how you should prepare it: A. Create a custom slideshow presentation that explains how the software program will benefit the client. B. Write a lengthy report that includes all of the technical details regarding the software you are recommending. C. Create a brief marketing message to generate interest in the software. D. Create a storyboard to share an exciting visual message about your software.

70. A Create a custom slideshow presentation that explains how the software program will benefit the client. A slideshow presentation is best used to share information when meeting with a group of people. A lengthy report containing technical details is not as effective or persuasive as explaining how the software will benefit the company. Storyboards are best used to organize visual content for slideshow presentations and videos or to present highly artistic or conceptual products such as television advertisements or films. Brief marketing messages are used to generate customer interest in a product and are not appropriate for a formal business meeting.

71. Which of the following types of nonpublic personal information (NPI) can a company be held legally responsible for revealing: A. A customer's published phone number B. A record of bankruptcy C. A customer's payment history D. A customer's ownership of a home

71. C A customer's payment history. Companies can be held liable for revealing customers' nonpublic personal information (NPI) because it invades their privacy and can expose them to financial harm. NPI is any personally identifiable information that an organization collects in connection with providing a financial product or service, unless that information is publicly available. Examples of NPI include information about a customer's business with an organization, account numbers, payment history, loan or deposit balances, and credit or debit purchases. Bankruptcies, published phone numbers, and home ownership are all examples of published information that is easily accessed through regional, state/province, national, and court databases and records.

71. Alexa wants to create and post a basic web page for her food truck. The first step she should take is to choose A. the background colors. B. a template. C. a website-building platform. D. the font size.

71. C A website-building platform. The first step in creating and posting a basic web page is selecting a website-building platform (such as Wordpress). Choosing a template, background colors, and font size all come later.

71. Reese is writing a paper for his business class. He wants to include an idea he found in one of his sources. He rewrites the main points in his own words, making sure to attribute his ideas to the original source. Reese is A. plagiarizing. B. paraphrasing. C. quoting. D. summarizing.

71. D Summarizing. Quoting, paraphrasing, and summarizing are all ways to incorporate another writer's work into your own. Although they are similar, there are key differences among them. Quoting occurs when you use someone else's text word-for-word. Paraphrasing involves using a section of the source material, but putting it into your own words. What Reese is doing is summarizing—putting the ideas in the source material into his own words but including only the main points. His summary will be much shorter than the original text, since he's only including the most important information. Quoting, paraphrasing, and summarizing are not the same as plagiarizing. Plagiarizing occurs when you use someone else's words or ideas and don't credit him/her. That's not what Reese is doing, since he's being careful to cite the original source. Avoiding plagiarism is very important, since it's dishonest, and it can have negative consequences at school or work. SOURCE: NF:080 SOURCE: The OWL at Purdue. (1995-2019). Quoting, paraphrasing, and summarizing. Retrieved August 19, 2019, from https://owl.purdue.edu/owl/research_and_citation/using_research/quoting_paraphrasing_and _summarizing/index.html

72. To perform a proper data analysis, the researcher should be A. unbiased. B. untrained. C. judgmental. D. inconsistent

72. A Unbiased. For data analysis to be performed properly, the researcher should be unbiased, nonjudgmental, trained, and consistent with the information and results.

72. A risk involved with information management is leaving customers unprotected from A. high prices. B. bad customer service. C. identity theft. D. faulty products.

72. C Identity theft. A risk involved with information management is leaving customers unprotected from identity theft. An information management program that does not use technology properly may put customers' personal information at risk. Appropriate information management will not necessarily protect customers from bad service, high prices, or faulty products. SOURCE: NF:110 SOURCE: LAP-NF-110—In the Know (Nature of Information Management)

72. You need to send a new email message to all the people contained within a large email group without exposing each individual's email address. What email function should you use? A. Carbon copy B. Reply all C. Forward D. Blind carbon copy

72. D Blind carbon copy. The blind carbon copy function (Bcc) is used to keep email addresses private and to prevent recipients from seeing who else is receiving the email. The blind carbon copy function is frequently used to send messages to a large group of email recipients while maintaining the privacy of each individual's email address. The carbon copy feature (cc) can also be used when sending email to several people, but every recipient can see everyone else's email address using this technique. The forward function is used to forward a message to selected recipients. The reply all function is used to send a reply message to all of the original recipients of an email message.

73. What is the importance of the computer hard drive in a computer system? A. It permanently stores the computer program files and data. B. It facilitates the computer's audio transmissions. C. It allows the user to view the computer data. D. It transmits power to other computer devices.

73. A It permanently stores the computer program files and data. The hard drive is the component of the computer's central processing unit (CPU) that stores the computer's program files and inputted data. A sound card is a device that transmits sound waves through the computer so the user can hear audio elements. A computer monitor allows the user to view the computer data. The power supply transmits power to other computer devices (e.g., printer) so they can operate. SOURCE: NF:084 SOURCE: Lacoma, T. (2018, March 19). What is a hard drive? Retrieved August 19, 2019, from https://www.digitaltrends.com/computing/what-is-a-hard-drive-your-guide-to-computer- storage/

73. A company wants to know how to better advertise to specific segments of customers, so it groups its customer data based on their incomes. This company is using the __________ method of data mining. A. neural networks B. decision tree C. clustering D. huddling

73. C Clustering. Clustering is a method of data mining that involves grouping data by similarities. If a company groups its customer data based on their incomes, it is using clustering. Clustering is not referred to as huddling. The decision tree model of data mining is organized like a tree, with "branches" and "leaves." The neural network method of data mining is modeled after the brain's neurological functions.

73. Your boss asks you to create a spreadsheet to generate monthly sales reports. What spreadsheet function or technique should you use to reduce the amount of data you will need to enter each month? A. Use the Auto Sum function B. Create formulas using monthly sales amounts C. Create formulas using cell locations D. Use the Sort and Filter function

73. C Create formulas using cell locations. Spreadsheet applications are more fully automated and require less input from users when formulas are created using cell locations. When a spreadsheet's formulas contain cell locations, the user only needs to enter new sales figures to automatically calculate the rest of the information. If a user creates formulas using monthly sales amounts, the user must update the data contained in every formula for every monthly sales report. The Auto Sum function only automates the addition of figures contained in a row or a column but is not able to multiply, divide, or perform complex math calculations. The Sort and Filter function enables computer users to change the order of data in a spreadsheet.

74. Businesses can use data mining to A. show why information is valuable. B. see patterns within data. C. eliminate the need to understand data. D. make decisions for them.

74. B See patterns within data. Data mining is a way for businesses to see the relationships and patterns within data. Data mining can give businesses the information they need to make decisions, but it cannot make decisions for them. Businesses must decide for themselves why the information is valuable. Businesses still need to understand data.

74. Which of the following situations can a company's employees avoid by using the same integrated business software application package: A. Need to proofread documents B. Data-entry errors C. Need to convert files D. Misaddressed email messages

74. C Need to convert files. An integrated business software application eliminates the need to convert files since all the software is interconnected. When a company uses separate software programs, files need to be converted before they can be used in other programs. File conversions can result in information and formatting loss. Most software applications have tools that help reduce data-entry errors and misaddressed email messages, but they do not eliminate all potential user errors. While built-in editing tools can help correct user errors, they do not entirely eliminate the need for proofreading.

74. Businesspeople often use the calendar applications on their mobile devices to A. check their email. B. obtain driving directions. C. send text messages to clients. D. track their appointments.

74. D Track their appointments. Most mobile devices have calendar and scheduling applications that allow users to set and track their tasks and appointments. Mobile devices also include Internet access to check email, text-messaging functions to send text messages to clients, and global positioning systems (GPS), which are navigational tools that help users obtain driving directions. SOURCE: NF:005 SOURCE: Wax, D. (n.d.) Use your mobile phone to stay organized on the go. Retrieved September 4, 2019, from https://www.lifehack.org/articles/featured/use-mobile-phone-to-stay-organized-on- the-go.html

75. Dara is using Google to locate information on the Internet about her research report topic. She is using a search A. machine. B. engine. C. technology. D. group.

75. B Engine. Search engines (such as Google, Yahoo, or Bing) find web pages that correspond to the phrases, key words, or topics you enter. If Dara searches for her research report topic, she will receive results that correspond to that topic. Search engines are not referred to as machines, technologies, or groups. SOURCE: NF:006 SOURCE: Kimmons, J. (2019, February 4). What is a search engine? Retrieved September 4, 2019, from https://www.thebalancesmb.com/search-engine-2867354

75. Which of the following tools can be used to reduce information redundancy, control access to information, and share and back up data: A. Social networking websites B. Cloud-based storage applications C. Database management systems D. Financial accounting software

75. C Database management systems. Database management systems allow users to create, retrieve, manage, and update databases. Some of the primary benefits of database management systems are the ability to reduce data redundancy, control access to information, and share and back up important data. Cloud-based storage applications are used to store information in a remote server accessed from the Internet. Social networking websites such as Facebook and Twitter are Internet-based communication tools that allow people to interact online. Financial accounting software assists users with various financial accounting activities.

75. Computer programs that allow businesses to manage all types of activities, such as inventory control and finance, are known as A. wireless connectivity programs. B. electronic communications programs. C. interactive information display packages. D. integrated software application packages.

75. D Integrated software application packages. Integrated software application packages allow businesses to manage all types of business activities, such as inventory control, finance, tracking, invoicing, etc. For example, businesses can track the placement of an order, when the order is shipped and received, when an invoice is generated, and when payment is received. These types of computer programs are not known as electronic communications programs, interactive information display packages, or wireless connectivity programs.

76. A business wants to purchase computer software that would store, manage, and retrieve customer information in order to better serve customer needs and increase sales. What type of software should the business buy? A. Database B. Spreadsheet C. Word processing D. Computer-aided design

76. A Database. A database program allows the organized collection of information with pieces of information related to one another. This information can be used to maintain, analyze, and combine customer information. Spreadsheets, word-processing software, and computer-aided design do not perform the functions required by the business. SOURCE: NF:009 SOURCE: Chapple, M. (2019, July 10). What is a database? Retrieved August 28, 2019, from https://www.lifewire.com/what-is-a-database-1019737

77. Ted's Tater Chips is conducting market research to decide what new flavor of chips it wants to release next year. They receive the following data about the current taste preferences of a large test group: 40% prefer spicy chips 40% prefer sweet chips 10% prefer sour chips 10% prefer regular chips Which flavor should Ted's Tater Chips introduce next year? A. Ted's Spicy Sweet Chips B. Ted's Lemon Vinegar Chips C. Ted's Sour Chips D. Ted's Classic Tater Chips

77. A Ted's Spicy Sweet Chips. The results of the market research show that the tested group prefer sweet and/or spicy chips, like Ted's Spicy Sweet Chips. Lemon vinegar, sour, and classic tater chips wouldn't appeal to the majority of the test group.

76. Which of the following accurately describes the purpose and scope of data mining: A. Calculating the mean, median, and mode of a dataset B. Searching data sets to locate a specific data point C. Identifying patterns to predict outcomes D. Eliminating unnecessary data within a data set

76. C Identifying patterns to predict outcomes. Data mining is the practice of identifying patterns, anomalies, and correlations within a set of data to predict future outcomes. Data mining can be used to help make sense of large sets of data. The purpose of data mining is not necessarily searching data sets to locate a specific data point; calculating the mean, median, and mode of the set; or eliminating unnecessary data from a set—although these activities may be included in a data mining effort.

76. A restaurant's owner notices that people in the community are starting to eat healthier food instead of the burgers and fries that the restaurant serves. So, the restaurant owner decides to start offering healthier menu options along with the old menu items. The restaurant owner is looking at __________ to find business opportunities. A. theories B. regulations C. economic policies D. trends

76. D Trends. A trend is the general direction in which people or events are moving. It's important for businesses to keep an eye on trends because trends can help businesses find opportunities. The restaurant owner notices that customers are eating healthier food, so s/he is able to take advantage of that opportunity by offering healthier menu items. This is not an example of a regulation, economic policy, or theory helping the restaurant owner find a business opportunity

77. The ability to quickly and accurately calculate mathematical data is one of the characteristics of a __________ software program. A. spreadsheet B. database C. graphics D. word-processing

77. A 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. Database software programs maintain information according to specific criteria. Word-processing software programs are used to create text documents. Graphics software programs are used to combine text and pictures to create visual impact. SOURCE: NF:010 SOURCE: Masters, T. (2019, January 28). Spreadsheets vs. databases. Retrieved August 19, 2019, from https://smallbusiness.chron.com/spreadsheets-vs-databases-53907.html

77. Tara closes a large business deal for the company she works for. What should she do with the signed contract? A. Keep it with her B. Return it to the client C. Store it in a secure place D. Show it to her coworkers and friends

77. C Store it in a secure place. Business contracts are important documents since they detail the conditions and terms of a legally binding contract. Employees should place contracts in a secure location so they can be accessed when needed and to prevent unauthorized individuals from gaining access to them. The client should be provided with his/her own copy. If Tara keeps the contract in her possession, she creates the risk of loss and makes the information unavailable to other employees or managers who may require the information. It is unethical and illegal to show a contract to coworkers or friends who do not have a valid reason to view it.

78. A café owner has noticed many consumers prefer strongly caffeinated tea products. He decides to offer teas and lattes made with strongly caffeinated matcha green tea. The owner is responding to A. a trend. B. the business cycle. C. competition. D. a government regulation.

78. A A trend. The business owner's offering of matcha green tea drinks is a response to a consumer trend. There's no indication that the café owner is responding to competition, the business cycle, or a government regulation

78. Stella has just finished designing the web page for her new business. Next, she needs to select a ___________ and register the website's ____________. A. hyperlink, modem B. web host, domain name C. media permit, server D. file link, ethernet

78. B Web host, domain name. After creating a web page, the developer needs to post the web page through a web host (web server) or Internet service provider (IPS). The web host may charge a fee to post and store the web page, although some web hosts will provide the service free of charge. The domain name is the business's web address. Internet users enter the web address to view Stella's website. Stella can register her domain name directly with the Internet Corporation for Assigned Names and Numbers (ICANN). Or, Stella can work with her web host to register the domain name for her. Stella does not need to register a hyperlink, media permit, or file link with any organization. A hyperlink (link) is the component of an electronic document (file) that can be clicked on in order to jump to another place within the document or into a different document. A modem is an internal or external computer communications device that is used to transmit information over a particular medium such as telephone lines or television cables. Ethernet is a local area network. SOURCE: NF:042 SOURCE: Tester, A. (2016, December 21). Publishing your website in three steps. Retrieved August 19, 2019, from http://www.webhostingsearch.com/articles/how-to-publish-your-website.php

78. Shia manages the day-to-day activities needed to produce and distribute smartphones for a worldwide company. Shia's job title is most likely a(n) A. marketing manager. B. sales manager. C. operations manager. D. quality inspector.

78. C Operations manager. Operations managers plan, control, and monitor the day-to-day activities required for continued business functioning. Sales managers are usually not involved with the daily operations and focus on customer service. Marketing managers are responsible for all marketing functions, including channel management, marketing-information management, pricing, product/service management, promotion, and selling. Quality inspectors focus on ensuring the degree of excellence of a good or service.

79. Because operations managers control so much of a business's money, they must focus on A. keeping costs low. B. hiring the best employees. C. creating effective advertising campaigns. D. generating publicity.

79. A Keeping costs low. Because operations managers control so much of a business's money, they must focus on keeping costs low. Operations managers are not responsible for hiring employees, creating advertising campaigns, or generating publicity. SOURCE: OP:189 SOURCE: LAP-OP-189—Smooth Operations (Nature of Operations)

79. Jimmy works in a warehouse as a forklift operator and has told his supervisor numerous times about a safety issue that could cause serious physical harm if it's not fixed. Jimmy's supervisor has yet to fix the problem. Jimmy's next step should be to A. file a complaint with OSHA. B. try to fix the problem, even though it's dangerous. C. ask his coworkers to help him fix the dangerous problem. D. call a repairman and pay for the repairs himself.

79. A File a complaint with OSHA. Employees can file complaints with OSHA if they believe there is a violation of a safety or health standard, if there is any danger that threatens physical harm, or if an imminent danger exists. It is an unsafe act for Jimmy and his coworkers to fix a dangerous problem themselves. Employees should never have to pay for safety repairs on their own because the company is responsible for their safety.

79. Anna is conducting an environmental scan to help her company better satisfy its customers' needs. As part of her research, Anna collects data on customers' age, gender, employment status, race, and other personal characteristics. This data falls under which category of information gathered through environmental scanning? A. Competition B. Society and culture C. The economy D. Demographics

79. D Demographics. Demographics are the physical and social characteristics of the population. Examples of demographic data include age, gender, income, employment status, family status, education, geographic location, religious beliefs, and race or ethnic origin. Demographics can help companies better understand their customers' unique needs and wants. Society and culture includes information about what customers value. Our society is transforming at a rapid rate—some say faster than ever before. Successful businesses stay on top of changes in society and culture so that they can remain sensitive to customer needs and wants. The economy also greatly affects businesses and the decisions they must make to satisfy customers and remain profitable. Economic factors that businesses should pay attention to during an environmental scan include stage of the business cycle, inflation, interest rates, unemployment rates, investor confidence, tax rates, currency exchange rates, and foreign economic conditions. Finally, businesses should always pay attention to what their competition is doing. By watching its competition, a business can better decide on strategies to be successful.

8. Cynthia and Gerald are proposing a new project to their boss. When the boss questions Gerald about something he says, what should Gerald do? A. Explain to the boss that Cynthia wrote their project proposal B. Ask for clarity on the question and make sure he answers it fully C. Answer a different question that Gerald definitely knows the answer to D. Act defensive because the boss doesn't understand the project

8. B Ask for clarity on the question and make sure he answers it fully. By asking for clarity, Gerald can make sure that he fully understands his boss's question and give him the best possible answer. Telling the boss that Cynthia wrote the project, answering a different question, or acting defensively would reflect poorly on Gerald and paint him in a bad light.

80. A common type of injury that can result from improper lifting is a A. fall. B. strain. C. shock. D. wound.

80. B Strain. Back muscles can be strained by improper lifting of heavy or bulky objects. This kind of injury often takes a while to heal and in some cases never heals completely. Shock is caused by a traumatic occurrence or contact with electric current. A wound is an injury of any kind. A fall occurs when someone trips while walking or falls from an elevated location to the ground.

8. Lily, a sales representative at a kitchen store, recently received a question from a customer about a particular product. The customer wanted to know what type of material a certain cooking pot was made of. Lily responded by saying: "This cooking pot is an excellent choice for high-temperature cooking. It can be placed in an oven up to 500 degrees." What was wrong with Lily's response? A. She exaggerated or embellished the truth about the product. B. She didn't address the question that was asked. C. She interrupted the customer with her response. D. She made the customer feel uncomfortable.

8. B She didn't address the question that was asked. Lily's response to the customer's question did not actually address the customer's inquiry. Instead of informing the customer about the material of the cooking pot, she described a particular benefit of the pot. It's important to answer customers' questions directly and concisely. Lily did not necessarily exaggerate or embellish the truth about the product in this example, nor did she interrupt the customer. There is not enough information given to determine if Lily made the customer feel uncomfortable.

8. When Dale is taking notes during a staff meeting, he should A. avoid abbreviations and symbols. B. write his notes in complete sentences. C. capture every word that is said. D. organize his notes in a logical manner.

8. D Organize his notes in a logical manner. Effective note-taking is essential in school as well as on the job. Regardless of whether you are in a university lecture hall or in a staff meeting, taking notes helps you better remember important information and record facts, figures, and other details that may not be available elsewhere. Notes that are organized in a logical manner are much clearer, more understandable, and easier to read than notes that follow no form at all. When taking notes, it is not necessary to capture every word that is said. Instead, you should focus on the main points and subpoints of the conversation. It is also not necessary to write notes in complete sentences. To save time and space, you should use abbreviations and symbols whenever appropriate. SOURCE: CO:085 SOURCE: Vanderkam, L. (2015, May 14). How to master the art of taking better notes. Retrieved August 19, 2019, from https://www.fastcompany.com/3046058/how-to-master-the-art-of- taking-better-notes

80. An employee notifying a government agency that the business is violating health and safety regulations is an example of A. reporting noncompliance. B. spreading gossip. C. unethical behavior. D. verbal communication.

80. A Reporting noncompliance. Certain government agencies have developed health and safety regulations that businesses are expected to follow in order to provide employees with a safe work environment. If businesses do not comply with these regulations, they should be reported for noncompliance so the necessary action can be taken to solve the problem and make the workplace safe for employees. The goal is to correct dangerous situations and keep the workplace safe. An employee notifying a government agency is not an example of spreading gossip, unethical behavior, or verbal communication. In fact, the employee is exhibiting ethical behavior. Also, the employee may have notified the agency in writing which is nonverbal communication. SOURCE: OP:005 SOURCE: OSHA Education Center. (2019) How to report labor violations. Retrieved August 19, 2019, from https://www.oshaeducationcenter.com/articles/reporting-labor-violations/

80. Before working on any piece of machinery or equipment, you should A. look it up on the Internet. B. read the operating manual. C. rely on the warning stickers. D. ask a coworker how it works.

80. B Read the operating manual. Before working on any new piece of machinery or equipment, you should read the operating manual to make sure you know the technical information and the hazards associated with it. While it is important to read the warning stickers on the machinery or equipment, the warning stickers typically do not provide enough information to operate the equipment properly. Although looking up the piece of machinery or equipment online or asking for a coworker's advice may be helpful, both of these sources might be missing valuable and necessary information.

80. Brenna works at a meat processing plant. After accidentally touching meat products without gloves, Brenna contracted a bacterial infection. This example demonstrates which type of occupational hazard? A. Physical B. Chemical C. Biological D. Mechanical

80. C Biological. Biological hazards are dangers associated with working with animals, people, or hazardous plants. People who work in hospitals, food processing, daycares, and schools are especially at risk for exposure to disease or other injury related to biological hazards. Chemical hazards are present whenever a worker is exposed to chemicals in the workplace, such as in laboratory or manufacturing settings. Physical hazards are any factors within an environment that can harm the body, such as sunlight, extreme temperatures, and loud noise. Mechanical hazards are hazards associated with operating machinery or other potentially dangerous tools

81. The Rustin Corporation has a policy that employees should never let anyone use their work computers without supervision. Which of the following scenarios complies with the policy: A. Collaborating with another employee on your work computer B. Letting your family play video games on your work computer at home C. Giving a coworker your password to finish a project when you leave the office D. Swapping computers with a coworker to access a specific program or application

81. A Collaborating with another employee on your work computer. When you collaborate on your work computer, you are still able to supervise and monitor how it is being used. Letting your family play video games, giving a coworker your password, and swapping computers go against the policy of not letting others use your computer without your supervision.

81. One way that businesses maintain the security of data that they send over the Internet to clients is by using a software program that prevents a(n) A. attachment from being included. B. virus from being downloaded. C. document from being forwarded. D. search engine from being used.

81. C Document from being forwarded. Some businesses use software programs that help maintain the security of data they send over the Internet to clients. These programs prevent documents from being forwarded to others so the information does not end up in the hands of competitors. Also, these programs prevent others from copying, editing, or printing the documents which helps maintain the information in its original form. These software programs do not prevent a virus from being downloaded, an attachment from being included, or a search engine from being used. SOURCE: OP:064 SOURCE: Bartlett, M. (2016, February 13). Disable email forwarding in Outlook 2016 & 2013. Retrieved August 19, 2019, from https://www.technipages.com/outlook-disable-email-forwarding

81. When a workplace security issue occurs, an employee should report the problem to the appropriate __________ agency. A. health B. fire prevention C. law enforcement D. welfare

81. C Law enforcement. Theft and robbery are examples of security emergencies. Many companies develop procedures that advise employees how to handle these types of situations. If a theft or a robbery occurs, an employee generally contacts law enforcement officials (e.g., police). The fire department is contacted about fire-related issues. Health and welfare agencies do not handle security issues.

82. What kind of dangerous situation might result if a new employee operates specialized equipment without having received prior training on how to properly use that equipment? A. Personal tension B. Mental stress C. Physical fatigue D. Safety hazard

82. D Safety hazard. A safety hazard is any situation that has the potential to cause bodily harm. Machines and equipment can be hazardous to workers who don't know how to use them. Using specialized equipment without prior training can result in possible injury to the employee or a coworker. Stress is a mental or emotional feeling of pressure or tension. Fatigue is a state of mental or physical tiredness. Tension is stress. SOURCE: OP:007 SOURCE: Mathis, R.L., Jackson, J.H., Valentine, S.R., & Meglich, P.A. (2019). Human resources management (15th ed.) [Lesson 14.3c]. Boston, MA: Cengage Learning, Inc.

81. Workers at KJC Technology generally spend at least nine hours at their desks every day. Last year, five employees in the same office were diagnosed with high blood pressure. An additional two employees suffered minor heart attacks. What steps could the company take to reduce the risk of more employees suffering from similar conditions? A. Educate workers on the dangers of UV exposure B. Provide candy bars and other quick snacks C. Prohibit employees from bringing their own lunches D. Offer standing desks and hourly work breaks

81. D Offer standing desks and hourly work breaks. Recent studies have shown that "sitting is the new smoking." Sitting for long periods of time can contribute to several health conditions, including high blood pressure, high blood sugar, obesity, and heart disease. Offices can help their employees stay healthy by offering standing desks and frequent breaks to walk around. Providing healthy snacks may be beneficial, but candy bars would not contribute to employees' health. Prohibiting employees from bringing their own lunches would not necessarily reduce the risk of employee illness. Educating employees on the dangers of UV exposure is a good way to prevent sun damage, but not diseases such as the ones described in this example

82. Liz's Ice Cream Parlor is especially popular for its "Chocolate Mystery" flavor. When a former employee of the shop quit her job and started working at a competing ice cream parlor, she took the recipe for "Chocolate Mystery" with her—and stole a big chunk of Liz's business. This example demonstrates the importance of A. keeping employees in the dark. B. protecting company "intangibles." C. hiring people you don't trust. D. taking steps to secure financial assets.

82. B Protecting company "intangibles." Companies should take steps to protect their intangible assets, such as their trade secrets and other intellectual property. If Liz's Ice Cream Parlor knew that its "Chocolate Mystery" flavor was a major contributor to profits, it should have registered it as a trade secret or taken other actions to protect it from being stolen or misused. Another way to protect company intangibles is by making employees sign noncompete forms. Noncompete agreements essentially prohibit employees from taking the company's sensitive information to a competitor. This example does not demonstrate the importance of keeping employees in the dark or taking steps to secure financial assets. It's important to hire people that you trust—not people that you distrust.

82. Brianna is performing a project audit for her company. The first thing she should do to ensure a successful audit is A. conduct all necessary research. B. understand the success criteria of the project. C. conduct all interviews. D. develop a "lessons learned" report.

82. B Understand the success criteria of the project. Brianna should interview core managers and project members to determine the success criteria so that she knows what criteria to use in assessing the project. After knowing the criteria and developing questions, she should conduct research and interviews. A "lessons learned" report is one of the final steps to make sure the next project goes smoothly.

83. The most flexible document within a project plan is the A. risk-management plan. B. project schedule. C. project scope. D. quality-management plan.

83. B Project schedule. The most flexible document within a project plan is the project schedule. This is because deadlines within the project may be pushed forward or backward as priorities shift. It's still important to have a tentative schedule in place, however. The risk-management plan, the project scope, and the quality-management plan are not as changeable as the project schedule.

83. If your project team members are located across the country, which of the following project planning tools would be most beneficial for communication and file sharing: A. To-do lists and assignment sheets B. Online collaboration platforms C. Focus groups D. Flow charts

83. B Online collaboration platforms. Many web-based collaboration tools make it easy to plan your project digitally with others. You can upload files, host discussions, and manage tasks online. Even if your project stakeholders aren't in the same place, they'll all be able to participate in the planning process. Todo lists, assignment sheets, focus groups, and flow charts are all important project planning tools, but they are not specifically beneficial for communication and file sharing when project team members are located across the country.

83. One way that employees can help prevent accidents is by practicing A. emergency methods. B. first-aid techniques. C. good health habits. D. security procedures.

83. C Good health habits. Practicing good health habits helps reduce the risk of carelessness, which commonly causes workers to make errors that result in accidents. People who eat a balanced diet, get plenty of sleep, and exercise regularly are more rested, alert, and able to concentrate on their work. Practicing first-aid techniques, emergency methods, and security procedures will not help employees prevent accidents, but they should be trained in those areas in order to properly deal with accidents once they have occurred. SOURCE: OP:009 SOURCE: Clark, B., Basteri, C.G., Gassen, C., & Walker, M. (2014). Marketing dynamics (3rd ed.) [pp. 564-566]. Tinley Park, IL: The Goodheart-Willcox Co.

83. Joanna is a purchaser for 193 Inc. and forgets to purchase a large order of shipping materials. What will most likely happen as a result of this mistake? A. Inventory will go down. B. Productivity will increase. C. The client's order will be delayed. D. Orders will increase.

83. C The client's order will be delayed. Because there are no materials to ship the order, the client's order will not be able to be shipped in time. Productivity will decrease, and inventory will increase. Orders will not be affected, although fulfillment times may increase.

84. Which of the following is NOT an example of point-of-sale fraud committed by employees: A. Accepting a check from a customer who lacks funds to cover it B. Undercharging friends or family members for purchases C. Overcharging customers and keeping the extra money D. Using employee discount privileges for friends or family members

84. A Accepting a check from a customer who lacks funds to cover it. This is an example of customer fraud. Even though the employee may follow all procedures for handling checks, the check may still be "bad" because the customer does not have enough money in the bank to cover the check. An employee commits fraud when deliberately causing losses to the business by overcharging and keeping the difference, undercharging friends, and misusing the discount privilege. SOURCE: OP:013 SOURCE: Clark, B., Sobel, J., & Basteri, C.G. (2014). Marketing dynamics (3rd ed.) [pp. 682-683]. Tinley Park, IL: Goodheart-Willcox.

84. Coral owns a gymnastic studio that teaches children and young adults to do gymnastics. Coral's business produces A. intangible outputs. B. tangible outputs. C. industrial services. D. retail goods.

84. A Intangible outputs. A service business produces an intangible output. Outputs are goods or services produced as the result of combining inputs. Coral's outputs are intangible because they have no physical presence. Coral does not produce tangible outputs, retail goods, or industrial services.

84. Although projects are constrained by scope, time, and budget, managers must prioritize A. quality. B. saving money. C. communications. D. sales numbers.

84. A Quality. Scope, time, and budget are constraints on projects. They each affect the others and work together to ensure project quality. No matter what changes occur to the scope, time, and budget, quality must be the top priority. Saving money, communications, and sales numbers are all important, but they should not be prioritized over project quality.

85. Why is it important for business employees to follow established security procedures? A. To develop a healthy environment B. To create a pleasant facility C. To avoid the risk of accidents D. To reduce the possibility of loss

85. D To reduce the possibility of loss. Businesses establish security procedures, which are activities that employees should follow to protect the business from loss. These security procedures are intended to reduce the risk of robbery, assault, and other violent crimes, all of which might result in a loss for the business. For example, robbery usually results in financial loss. Employees do not follow established security procedures to create a pleasant facility, avoid the risk of accidents, or develop a healthy environment. SOURCE: OP:152 SOURCE: Hudson, M. (2018, December 31). Shoplifting prevention 101: A guide to stopping retail theft. Retrieved August 19, 2019, from https://www.thebalancesmb.com/shoplifting-prevention- 101-2890256

85. The first thing a company should do before selecting a vendor is A. hold initial vendor discussions to negotiate a contract. B. identify potential sources for vendor recommendations. C. eliminate vendors that don't meet the organization's standards. D. determine and document the organization's need(s).

85. D Determine and document the organization's need(s). The first thing a company should do when selecting a vendor is determine what it needs a vendor for in the first place. Once the company has documented its need, it can then move on to identifying potential vendors, holding discussions with potential vendors, and eliminating vendors that don't meet the organization's standards. It would be unwise to take any of these steps without first determining why the company needs the vendor.

85. Fido Company manufactures dog toys. Throughout the day, an inspector randomly checks a few dog toys to make sure there are no defects. The inspector is responsible for A. regulatory compliance. B. quality assurance. C. inventory control. D. quality control.

85. D Quality control. Acceptance sampling is the inspection of a random sample of products to determine the quality of the entire batch and is a form of quality control. Quality assurance is a process that attempts to prevent defective products from being made in the first place. Inventory control deals with tracking the amount, kind, and value of inventory that a business has on hand. Regulatory compliance is meeting standards required by law.

86. When combined, which costs equal all of the expenses incurred by a company? A. Overhead and direct costs B. Salaries and rent C. Direct labor and materials D. Products and services costs

86. A Overhead and direct costs. Overhead and direct costs make up the total expenses incurred by a company. Salaries and rent are only part of the costs that make up overhead costs. Direct labor and materials are part of direct costs. Products and services costs are otherwise known as direct costs, so they would only be a part of overall expenses.

86. Allison is a pastry chef. Each morning, she combines flour, sugar, eggs, and various other ingredients to produce delicious muffins, cookies, and cakes. Taking ingredients and turning them into finished products like Allison does is called A. intermittent production. B. production planning. C. the conversion process. D. batch production.

86. C The conversion process. Inputs turn into products during the conversion process. Conversion processes could include manufacturing, cooking, teaching, constructing, printing, or any activity that takes resources and turns them into something usable. Production planning determines how products will be produced and in what amounts. An intermittent production process is one in which production periodically stops and restarts. It can be used in the production of standard products such as tools, or custom products such as individual insurance policies. Batch production means producing items in specific amounts, or batches. It is often used to meet specific or short-term market needs. For example, Starbucks usually produces batches of pumpkin spice lattes in the fall and batches of peppermint mochas in the winter.

86. The people who are impacted by a project in any way are called A. workers. B. team members. C. customers. D. stakeholders.

86. D Stakeholders. Stakeholders are people who are impacted by the project in any way. Customers, team members, and workers might be stakeholders, but they are not the only people who are impacted by the project. SOURCE: OP:519 SOURCE: LAP-OP-519—Plan On It! (Planning Projects)

87. Your employer, The Work Group, does not allow nonemployees in its facility, nor does it permit nonemployees to use company equipment. Which of the following scenarios would comply with The Work Group's policy: A. Letting your brother do his homework on your laptop after work B. Bringing a family member to see the office after work C. Taking your laptop home to finish a project D. Allowing a friend to visit you at work to help you with a project after hours

87. C Taking your laptop home to finish a project. The Work Group's policy is specific to nonemployees and does not say anything about employees using equipment after hours. Bringing a family member to the office, letting your brother use your laptop, and allowing a friend to visit you at the office after hours would all violate the company's policy.

87. A project team decided to meet every week, but after a while, the members realized that monthly meetings would be enough. The project team is monitoring A. budget. B. quality. C. risk. D. communications.

87. D Communications. Project teams usually develop a communications plan that they follow throughout the course of the project. Communications between teams and stakeholders need to be monitored. Monitoring communications includes making sure your planned communications are appropriate for your project, such as the project team determining that biweekly meetings were more appropriate than weekly meetings. This example does not involve monitoring budget, quality, or risk. SOURCE: OP:520 SOURCE: LAP-OP-520—Check Your (Project) Pulse (Monitoring Projects and Taking Corrective Actions)

87. A furniture manufacturing company has been having problems making a certain type of desk chair. Employees on the assembly line have reported higher-than-average numbers of defective chairs. Instead of spending thousands of dollars tweaking its machinery or training its employees more effectively, the company decides to invest its time and money on designing a better chair. This is an example of what quality-control method? A. Lean production B. Concurrent engineering C. Process performance management D. Taguchi method

87. D Taguchi method. Also known as robust design, the Taguchi method is an approach to quality management that focuses on product research, design, and development, rather than manufacturing. Though following the Taguchi method may require more time, effort, and money upfront, it's often much less expensive in the long run than it is to "clean up" issues relating to poor quality. Concurrent (simultaneous) engineering refers to performing the various stages of product design and development at the same time, instead of one after another. This method enhances product quality by allowing potential problems to be caught and adjusted earlier in the development process. Process performance management is the supervision of business and/or manufacturing processes to ensure their quality and efficiency. Lean production, often referred to simply as "lean," originated with the car manufacturer Toyota. The foundation of "lean" is maximizing customer value while minimizing waste. The method demonstrated in this example is the Taguchi method, not concurrent engineering, process performance management, or lean production.

88. Which of the following is a goal that takes priority over other activities: A. Performance goal B. Effective goal C. Learning goal D. SMART goal

88. B Effective goal. An effective goal is one that takes priority over other activities through wise decisions. A SMART goal is one that is specific, measurable, attainable, results oriented, and time bound. Performance and learning goals are types of goals you can work toward. Learning goals have to do with mastering a skill, whereas performance goals have to do with how well you do something or simply completing a task.

88. Which of the following is an indicator that your project is a success: A. It is temporary. B. The team is challenged by the work. C. It offers financial value. D. It comes in under budget.

88. C It offers financial value. When it comes down to it, money matters. A successful project should bring money in rather than waste it. Whether or not the team is challenged by the project's work does not necessarily indicate project success. Successful project outcomes are sustainable rather than temporary. Finally, projects that come in under budget can be successful, but not in every instance. SOURCE: OP:521 SOURCE: LAP-OP-521—Making the Grade (Evaluating Project Success)

88. Akua is in charge of supervising the entire process of getting products into the marketplace, otherwise known as the flow of goods. Akua's job title is most likely A. Chief Financial Officer. B. Line Supervisor. C. Supply Chain Manager. D. Inventory Manager.

88. C Supply Chain Manager. A supply chain manager is in charge of supervising the entire process of getting goods into the marketplace, including coordinating with other companies and vendors. A line supervisor supervises a given team, or line, to ensure quality and productivity. A chief financial officer, or CFO, monitors all of a company's funds and assets. An inventory manager supervises and controls the number of finished products a company has in stock.

88. Which of the following is an example of a variable expense: A. Wages/Salaries B. Utility payments C. Property taxes D. Employee bonuses

88. D Employee bonuses. Operating costs that fluctuate with changes in production are called variable expenses. When a company produces more of a product, variable expenses go up. Examples of variable expenses include advertising and promotion; travel expenses; sales commissions; employee bonuses; permits and fees; and the cost of providing free shipping, delivery, or installation. Utility payments, property taxes, and wages/salaries are examples of fixed expenses—expenses that must be paid no matter what.

89. If you work for a business that wants to maintain patient confidentiality, how should you dispose of old papers that include patient information? A. Black out any identifiable information and throw the documents away B. Ask a coworker to destroy the papers for you C. Shred the documents D. Recycle the documents

89. C Shred the documents. Shredding the documents will make it more difficult to recover client information. Asking a coworker to destroy the documents does not ensure they will be destroyed. Blacking out information or recycling the documents makes it possible to recover the information.

89. Centralized retail buying can become ineffective for a large chain when A. purchasing responsibility is shared by buyers. B. its stores are divided into districts. C. all buying is carried out at one location. D. its stores are located very far apart.

89. D Its stores are located very far apart. Retail chains can grow so large that centralized buying no longer is effective. To correct this, the chains switch to decentralized buying in which the country is divided into districts, and district managers take responsibility to buy for district stores. Having buying carried out in one location and giving purchasing authority to buyers of different lines help make centralized buying effective. SOURCE: OP:015 SOURCE: LAP-OP-002—Buy Right (Purchasing)

89. Which of the following behaviors is most likely compliant with policies for using company property: A. Taking a work device home to enable your family to use it B. Keeping a company cell phone after quitting your job C. Sending confidential information to someone outside the company D. Avoiding use of a company computer for personal email

89. D Avoiding use of a company computer for personal email. Most companies have policies and procedures in place for using company property, including computers, smartphones, and other devices. Company property also includes intellectual property, and many businesses have policies regarding its use—such as prohibiting employees from sending confidential information to people unaffiliated with the company. Avoiding use of a company computer for personal reasons is an example of complying with a companyproperty policy. Most companies prefer (or require) that employees do not use business property for personal reasons. These policies generally prohibit employees from allowing people other than the employee to use the company device. Many companies also have policies that require employees to return company devices upon resignation or termination

9. Which of the following is a guideline for developing effective written communication: A. Be thorough. B. Be repetitious. C. Be wordy. D. Be trite.

9. A Be thorough. Effective written communication must be thorough and contain all the information necessary for the recipient to respond or react. Effective written communication answers the questions of who, what, when, where, why, and how. Recipients of effective written communication will understand exactly what the senders are trying to convey. Effective written communication should not be repetitious, wordy, or trite. SOURCE: CO:016 SOURCE: Mulkeen, D. (2016, April 19). 8 top tips for effective business writing. Retrieved August 19, 2019, from https://www.communicaid.com/communication-skills/blog/communication- skills/top-tips-for-effective-business-writing-2/

9. Joel, a car salesman, purposely adjusts his communication style to mirror the habits of his customers. He finds that customers are more comfortable talking to someone that communicates in a familiar way. In other words, Joel is A. building rapport. B. being dishonest. C. tricking his customers. D. subduing his own personality.

9. A Building rapport. One of the most effective ways to build rapport is by mirroring—matching your communication style to that of your audience. Customers generally feel more comfortable when salespeople communicate in ways that are familiar to them. Mirroring is not dishonest or a way to trick customers—it is simply a communication strategy. Joel is not necessarily subduing his own personality in this example; rather, he is matching his communication style to that of his customers.

9. Tarion is leading a group discussion on new safety strategies in the workplace. How might he lead the discussion to encourage collaborative participation? A. Let a small group dominate the discussion B. Ask open-ended questions C. Dominate the conversation himself D. Assume everyone has the same opinion

9. B Ask open-ended questions. Open-ended questions require more analysis and support than "yes or no" questions and open the discussion up for reflection and reasoning. Letting a small group dominate the discussion can have a negative impact on collaboration because those outside the group may be less likely to speak up. Dominating the conversation has a negative impact on collaboration because it causes confrontation and only allows one opinion to take precedence. People are individuals with different experiences and opinions, so assuming everyone agrees without hearing them out can have a negative impact on collaboration.

90. Think about the last time you ate an apple. That apple passed through several hands before it reached your lunch bag. First, the apple was grown by a farmer, who sold it to a wholesaler or distributor, who then sold it to a retail store. Finally, the apple was bought by you or your parents—the final consumers. The apple's journey from farm to table is an example of A. deflation. B. supply chain. C. manufacturing. D. marketing.

90. B Supply chain. A supply chain is a complete network of producers, distributors, and retailers that work together to get a product into the hands of consumers. In this example, the apple journeyed from farmer, to distributor, to retailer, to consumer. This is an example of a supply chain in action—not deflation, manufacturing, or marketing. Deflation is a steady decline in the general price levels of consumer goods and services over a period of time. Manufacturing is the process of changing raw materials so that they will be useful to consumers. Marketing is an organizational function and a set of processes for creating, communicating, and delivering value to customers.

90. Which of the following should a person do first when facing the need to make a decision: A. Evaluate information B. Make a choice C. Analyze results D. Define the objective

90. D Define the objective. The first step in the decision-making process is identifying what it is you want to do. The decision-making process begins when a person becomes aware of a situation and sees the need to make a decision. Making a choice, analyzing results, and evaluating information are steps in the decision-making process that occur after the objective is defined.

90. Which of the following actions would most likely be taken by an organized employee: A. Having coworkers prioritize workload B. Thriving on tight deadlines C. Asking for help to complete tasks D. Planning work ahead of time

90. D Planning work ahead of time. Planning work involves scheduling activities and making sure to have the supplies needed to complete tasks. This helps effectively manage time, so work can be done at a relaxed pace. Generally, employees who work at a relaxed pace do not make as many mistakes as those employees who are rushed and work on unnecessarily tight deadlines. Planning work often leads to greater productivity and efficiency, which means an employee is less likely to impose on coworkers for help to complete a task or project on time. SOURCE: PD:009 SOURCE: Downing, S., & Brennan, J. (2018). On course: Strategies for success in college, career, and life (9th ed.) [Lesson 4-5a]. Boston, MA: Cengage Learning, Inc.

90. Which of the following is a short-term goal: A. A culinary student wants to open her own restaurant. B. A student wants to earn a bachelor's degree. C. A new employee wants to become president of the company. D. A salesperson wants to get five new clients this week.

90. D A salesperson wants to get five new clients this week. Short-term goals are objectives that take less than a year to achieve. The salesperson plans to get five new clients this week, so this goal is short term. Long-term goals are objectives that take a year or more to reach. It would take a year or more to earn a bachelor's degree, become president of a company, or open a restaurant.

91. As a New Year's resolution, Kelly set a goal to eat more healthy foods. While well-intentioned, Kelly may have a hard time meeting her goal because it is A. not specific or measurable. B. time-bound and results-oriented. C. not attainable or realistic. D. too specific to be met.

91. A Not specific or measurable. SMART goals are those that help you identify exactly what it is you want to achieve—and then know for sure when you've achieved it. SMART goals are specific, measurable, attainable, results-oriented, and time-bound. Kelly is unlikely to meet her goal of eating more healthy foods because the goal is not specific or measurable (or time-bound or results-oriented). A better goal would be to eat at least three servings of fruits and vegetables per day. This goal would allow Kelly to monitor her progress and determine whether she is meeting the goal or not.

91. One way companies can help improve their employees' work/life balance is by A. offering employees the ability to work from home. B. cutting personal days and time off. C. maintaining constant contact with employees after hours. D. creating rigid hours that employees must be in the office.

91. A Offering employees the ability to work from home. Employers can let employees work from home a few hours or days a week so that the employees can get things done in their personal life and work life. Cutting personal days and time off, maintaining constant contact with employees after hours, and creating rigid hours that employees must be in the office can have a negative impact on work/life balance.

91. Before trying to generate possible solutions to problems, it is essential to identify all of the A. consequences. B. rewards. C. outcomes. D. facts.

91. D Facts. This is a critical step in the problem-solving process and should be done immediately after the problem has been defined. Conduct an inventory of the facts by making lists or diagrams. It is not always possible to identify all the outcomes or consequences of a possible solution in advance. Solving problems does not always bring rewards other than the elimination of the problem. SOURCE: PD:077 SOURCE: LAP-PD-077—No Problem (Demonstrating Problem-Solving Skills)

92. Sony's PlayStation 3 gaming system, which was released in 2006, didn't compete well initially against other gaming consoles on the market. After nearly three years of lackluster sales and diminished profits, Sony launched a new advertising campaign for the unpopular product— marketing the PlayStation 3 as an all-in-one entertainment source for playing video games, downloading movies, and watching Blu-ray discs. This is an example of __________ innovation. A. product B. paradigm C. positioning D. process

92. C Positioning. Positioning innovation occurs when the purpose of a product is changed. The product itself remains the same, but it is marketed differently. In other words, the company focuses on changing the customer's perception of its product. Paradigm innovation involves a significant change in the way a product is viewed by users and society at large. Paradigms are the values, assumptions, and beliefs that make up the way people see things. A well-known example of paradigm innovation involves personal computers. Once upon a time, computers were only in labs. But that all changed with the creation of the personal computer. Computers quickly became something everyone wanted and needed. Product innovation occurs when a business either creates or improves a product. Finally, process innovation focuses on how something is done. Innovations don't just happen to products themselves—they can also happen to the processes or methods used to create products. Better processes typically mean more profit. If a company can make a product more quickly, it can produce more in the same amount of time— which means it can sell more products and make more money

92. Laura has made a list of the things she most enjoys doing and the way she likes to spend her time. This list will help Laura A. increase her level of ability. B. improve her study habits. C. measure her work skills. D. identify an appropriate career.

92. D Identify an appropriate career. In order to find out which career would be most appropriate for you, you first need to know yourself. This involves identifying the things that interest you, as well as assessing your skills, aptitudes, and other traits. Assessing your interests will not help you increase your level of ability. It also will not help in measuring work skills or improving study habits. SOURCE: PD:013 SOURCE: Jordan, A., & Crews, T.B. (2019). Investigating your career (3rd ed.) [p. 12]. Boston, MA: Cengage Learning, Inc.

92. Flexible people tend to be more comfortable with A. risk. B. failure. C. visual arts. D. doubt.

92. D Doubt. Flexible people tend to be more comfortable with ambiguity (vagueness or doubt). Flexibility is a trait often found in creative people. It's not necessarily true that flexible people are more comfortable with visual arts, risk, or failure.

93. Employees who arrive at work on time and direct their own work-related activities during the course of the day usually possess positive __________ skills. A. inner-qualitative B. self-conceptual C. self-management D. personal-orientation

93. C Self-management. The ability to control one's own activities, behaviors, and attitudes in the workplace is often referred to as self-management. Employees who make a conscious effort to get to work on time each day are engaging in positive self-management skills. Other activities that employees can control in the workplace might include their ability to perform and produce quality work in a given time, willingness to learn new activities, level of flexibility, and degree of workplace socializing. Self-concept refers to how one views him/herself. Inner-qualitative and personal-orientation are not terms frequently used to describe self-control issues as they relate to the workplace. SOURCE: PD:020 SOURCE: Downing, S., & Brennan, J. (2018). On course: Strategies for success in college, career, and life (9th ed.) [Lesson 4-5]. Boston, MA: Cengage Learning, Inc.

93. Ryan recently witnessed his coworker Tabatha being reprimanded by their boss for failing to meet an important deadline. Based on this encounter, Ryan could infer that his boss expects his employees to A. maintain a positive attitude at work. B. represent the company positively. C. work well together in teams. D. demonstrate dependability.

93. D Demonstrate dependability. Employers value many things in employees, including dependability, trustworthiness, positivity, a strong work ethic, and the ability to work well with others. In this example, however, the situation best demonstrates that Ryan's employer wants dependability from employees— employees that consistently meet deadlines.

93. Which of the following is a basic right of all employees in the workplace: A. Paid time off for jury duty B. Email and Internet privacy at work C. Overtime pay D. Equal pay for men and women

93. D Equal pay for men and women. The Equal Pay Act mandates equal pay for men and women performing similar job tasks. Email and Internet privacy when working on an employer's computer system is not guaranteed, nor is paid time off for jury duty legally mandated. Overtime pay is a basic right to most employees but does not include some professionals, managers, and other employees

94. Entrepreneurs typically work A. on their businesses. B. in their businesses. C. relatively few hours. D. to employ under 500 employees.

94. A On their businesses. Entrepreneurs work on their businesses rather than in them. Entrepreneurs typically work long and irregular hours, including weekends. Entrepreneurs work to grow their businesses. While their businesses may start small, they often turn into organizations that employ thousands of workers.

94. Tia has many interests and doesn't know which career path is best for her. One method Tia can use to determine the best occupational options for her is to A. develop a general interest questionnaire. B. have friends and family critique her personality type. C. complete an aptitude assessment survey. D. surf the Internet for job descriptions.

94. C Complete an aptitude assessment survey. Many people have a difficult time selecting a career path that is right for them. Some people complete professionally developed aptitude assessment surveys to help them determine their aptitudes and skills. By considering factors such as personality type, abilities, interests, and learning style, a person can use the survey results to determine the career for which s/he is best suited. Although constructive input from friends and family might help Tia in assessing her career options, the information may not provide her with the objectivity and the detail she would receive from a professionally developed assessment survey. Developing a general interest questionnaire and surfing the Internet for job descriptions are not activities that will provide her with guidance in terms of her specific career selection. SOURCE: PD:023 SOURCE: Jordan, A., & Crews, T.B. (2019). Investigating your career (3rd ed.) [Lesson 3-2]. Boston, MA: Cengage Learning, Inc.

94. Tanya, a quality manager, spends her workdays ensuring that the production lines at her manufacturing plant are running smoothly and efficiently. Positions such as Tanya's fall under which subcategory of business career? A. Business information management B. Human resource management C. Operations management D. General management

94. C Operations management. Employees working in operations management focus on planning, organizing, coordinating, and controlling the resources needed to produce/provide a business's goods and/or services. Examples of activities in operations management include quality control, scheduling, procurement, and warehousing. Human resource (HR) management careers focus on the staffing activities that involve planning, recruitment, selection, orientation, training, performance appraisal, compensation, and safety of employees. Business information management is an umbrella term covering those careers that provide a bridge between business processes/initiatives and IT (information technology). Employees in this area help align business and IT goals. Careers in general management focus on planning, organizing, directing, and evaluating part or all of a business organization through the allocation and use of financial, human, and material resources. These are the employees who have supervisory responsibilities and make decisions, either big or small.

95. Which of the following would be appropriate to include in a follow-up letter after a job interview: A. An assertion that you'll only accept the job if you are offered a specific salary B. An entirely new qualification or skill that you didn't mention during the interview C. A few sentences expressing your enthusiasm for the position you interviewed for D. A copy of the résumé you provided for the company during the interview

95. C A few sentences expressing your enthusiasm for the position you interviewed for. Sending a follow-up letter is an excellent way to express your gratitude for the interviewer's time—and to set yourself apart from the competition. Generally, a follow-up letter should reiterate your enthusiasm for the position as well as remind the interviewer of your unique skills and qualifications. Any relevant skills, experiences, or qualifications should be addressed during the interview and should not be added to a follow-up letter unless they were discussed in conversation or listed on your résumé. It would be inappropriate and unwise to mention salary in a follow-up letter, and you are unlikely to receive the job if you do mention compensation. It is unnecessary to include a copy of your résumé in a follow-up letter, since the interviewer likely already has several copies.

95. What is one thing that all potential employees should do when filling out a job application? A. Leave questions blank. B. Provide specific salary requirements. C. Keep applications consistent with their résumés. D. Fill the application out as fast as possible.

95. C Keep applications consistent with their résumés. Potential employees should keep all information consistent between their résumés and applications to show organization and trustworthiness. They shouldn't include specific salary requirements because this could get them turned down before an interview. Leaving questions blank shows disorganization and laziness. Potential employees should take their time filling out an application and proofread before submitting.

95. Taylor works as a public relations manager. His career is in the area of A. marketing research. B. operations management. C. professional selling. D. marketing communications.

95. D Marketing communications. Taylor's career in public relations is in the area of marketing communications. Marketing communications involves marketing activities that inform, remind, and/or persuade the targeted audience of ideas, experiences, goods/services, and/or images. Examples of marketing communications techniques include advertising, direct marketing, digital marketing, publicity/public relations, and sales promotion. Taylor's career is not in the areas of operations management, professional selling, or marketing research. Employees working in operations management focus on planning, organizing, coordinating, and controlling the resources needed to produce/provide a business's goods and/or services. Careers in professional selling involve marketing and management activities that determine customer needs/wants and respond through planned, personalized communication to influence purchase decisions and enhance future business operations. Marketing research jobs focus on marketing activities that involve determining information needs, designing data- collection processes, collecting data, analyzing data, presenting data, and using data for marketing planning. SOURCE: PD:025 SOURCE: LAP-PD-025—Go for It! (Careers in Business)

96. How do entrepreneurs develop their skills? A. By training and continuous practice B. By reducing their flexibility C. By becoming an autocratic leader D. By seeking little or no advice from others

96. A By training and continuous practice. Skill is defined as the ability to perform a task that is developed through knowledge, training, and practice. Entrepreneurs also grow by learning to be flexible and seeking advice from others. Flexibility is the ability to adapt to changes as they occur. When entrepreneurs seek advice, they exhibit open-minded behavior. Being open-minded is the ability to see different viewpoints. Being open-minded and flexible are behaviors that successful entrepreneurs generally exhibit. Autocratic leadership is a dictatorial style of leading in which the leader determines all policies, maintains close control, and lets employees know only what they need to know in order to do the job. Possessing this form of leadership does not necessarily help entrepreneurs develop the skills they need. SOURCE: PD:066 SOURCE: LAP-PD-066—Own Your Own (Career Opportunities in Entrepreneurship)

45. Sooji shows that she is a high achiever by taking __________ risks and avoiding __________ risks. A. moderate; high B. high; realistic C. unrealistic; moderate D. high; moderate

A

96. Virgil is looking to gain work experience in graphic design, but he has not been able to secure a part- or full-time position with a company. He decides to bid on jobs online that will pay him a small wage per project he completes. Virgil is __________ to gain valuable work experience. A. freelancing B. volunteering C. interning D. being an apprentice

96. A Freelancing. Freelancing is a great way to gain work experience and allows people to bid on jobs for lower wages. Volunteering is another way to gain work experience but normally doesn't involve pay. An internship may not pay the best, but it puts people in an organization so they can be immersed in the professional role. An apprenticeship allows people to earn higher wages while learning a job in a particular field.

96. Joel is a newly certified HVAC (heating, ventilation, and air-conditioning) technician. By joining a local professional association, he was able to meet a recruiter looking for employees with his skills. This example demonstrates how networking A. guarantees that professionals will find a suitable job. B. is generally a waste of time that could be better spent. C. should only be used when you are actively seeking a job. D. can be used to identify job opportunities.

96. D Can be used to identify job opportunities. Networking techniques such as joining a professional organization can help individuals identify job opportunities. In this example, Joel found a job through a contact he made in his organization. While networking doesn't guarantee that a suitable job will be found, it can certainly help. When done correctly, networking is not a waste of time. Networking techniques can be used in any stage of a professional's life to build relationships, learn new skills, and stay up to date on industry trends.

97. What types of skills are extremely important for an applicant to use effectively during an employment interview? A. Occupational B. Communication C. Management D. Educational

97. B Communication. Good communication skills will enable an applicant to perform well during an employment interview. An applicant who carefully listens to questions, provides brief but concise answers, and speaks clearly will make a positive impression on the interviewer. Proper body language, or nonverbal communication, such as maintaining eye contact and having a pleasant facial expression, also helps applicants interview effectively. Applicants with good communication skills usually are able to favorably explain their occupational, educational, and management skills to interviewers. SOURCE: PD:028 SOURCE: Clark, B., Basteri, C.G., Gassen, C., & Walker, M. (2014). Marketing dynamics (3rd ed.) [pp. 645-648]. Tinley Park, IL: The Goodheart-Willcox Co.

97. Which of the following often makes it necessary for workers to continue their education and obtain training to pursue different careers: A. Changes in geography B. Increases in responsibility C. Advances in technology D. Limits to confidentiality

97. C Advances in technology. Advances in technology have eliminated the need for some jobs while creating a need for new jobs. Therefore, some employees need additional education and training to change careers and pursue different occupations because the jobs for which they were trained no longer exist. Workers usually do not need to continue their education and obtain training to pursue different careers because of increases in responsibility, changes in geography, or limits to confidentiality.

97. Brandon, an accountant, wants to expand his professional network and stay up to date in his industry. However, he doesn't have time to commit to attending events on a weekly basis. Which of the following resources would best help Brandon achieve these goals: A. Classes/Seminars B. Trade journals/periodicals C. A professional association D. A social group outside of work

97. C A professional association. Joining a professional or trade association would help Brandon meet other professionals in his industry and stay up to date on industry trends. Unlike classes or seminars, professional organizations generally do not require weekly or even monthly participation—making them the perfect fit for Brandon's busy schedule. Trade journals and publications may help Brandon stay up to date on industry trends, but they would not necessarily help him meet other people in the industry. A social group outside of work would certainly help Brandon form friendships with a diverse group of people, but not necessarily with professionals in his field.

98. Smoother workflow, clearer lines of communication, and faster issue resolution are all benefits of A. operating as a limited liability partnership. B. implementing a chain of command. C. hiring mostly recent college graduates. D. executing a marketing campaign.

98. B Implementing a chain of command. Organizations that implement solid chains of command enjoy many benefits compared to organizations that lack them, including smoother workflow, clearer lines of communication, and faster issue resolution. These are not necessarily benefits of operating as a limited liability partnership, which is a hybrid form of business ownership that is generally used by business professionals for the purpose of protecting innocent partners from the malpractice of the other partners. These benefits are also not necessarily benefits of hiring recent college graduates or executing a marketing campaign.

98. A primary purpose of sending a follow-up letter to the interviewer after a job interview is to A. ask for a second interview, if the first interview did not go well. B. provide detailed information about your integrity and skills. C. reinforce your qualifications and interest in the position. D. request more information about the job's salary and benefits.

98. C Reinforce your qualifications and interest in the position. It is a courtesy to send follow-up letters to interviewers to thank them for their time. The applicant can use the letter to reinforce his/her qualifications and express his/her interest in the position. This letter may also help the interviewer remember the applicant. The follow-up letter should be brief—the detailed information should have been provided in the application and résumé and during the interview. If the first interview did not go well, interviewers do not usually ask applicants for a second interview. It would be inappropriate to request more information about the job's salary and benefits in a follow-up letter. This type of information is typically provided when the employer extends a job offer to the applicant. SOURCE: PD:029 SOURCE: Means, T. (2019). Business communication (3rd ed.) [Lesson 15.4]. Boston, MA: Cengage Learning, Inc.

99. Which of the following statements about organizational goals and employees is true: A. Employees must fully understand organizational goals for the goals to be met. B. Organizational goals should be made without employee input. C. Goals should be set by top management and only told to select employees. D. Employees' performance has no impact on the achievement of organizational goals.

99. A Employees must fully understand organizational goals for the goals to be met. Employees play a large role in accomplishing organizational goals. Without full employee participation and engagement, companies are unlikely to meet their goals. Employees should be included in the goal-setting process so that they can learn how to align their work with the wider organizational strategy. Goals should not be kept "secret" among company leaders—they should be common knowledge among all members of the organization.

99. Serving as a volunteer in a specific industry or for a business-related organization is one way that individuals might obtain A. guidance counseling. B. monetary compensation. C. technical training. D. work experience.

99. D Work experience. Many young people have limited paid work experience, and many of these jobs may be in areas unrelated to their career goals. One way to obtain valuable work experience is to serve as a volunteer in a specific industry or for a business-related organization. Volunteer work refers to activities or tasks that a person performs without pay. Although responsibilities might be menial in nature, the experience provides the volunteer with insight as to how business operates and what is expected of employees. Volunteers usually do not receive monetary compensation, technical training, or guidance counseling. SOURCE: PD:032 SOURCE: Doyle, A. (2019, July 08). Volunteer to get valuable work experience. Retrieved August 19, 2019, from https://www.thebalancecareers.com/dream-job-timeline-2059455

57. Which of the following is a variable expense that Jake must consider when developing his personal budget: A. Anticipated salary increases B. Unexpected car repairs C. Fixed car-loan payments D. Homeowner insurance premiums

B: -EXPENSE: "a" is not an expense

28. Why are certain monopolies permitted to exist? A. To stabilize the economy B. To be in the public interest C. To require no regulation D. To protect competition

B; if they think its in the public interest, gov will allow it to exist

69. While researching information for a business report, Tara reads the following statement in an online newspaper article: "Although unemployment has dropped slightly over the past few months, many politicians have indicated that they believe the government has done enough to get our country out of this recession." This is an example of information that contains A. historical facts. B. criticism. C. statistics. D. poll data.

B; if you have the opposite point of view; trick question

98. One reason why many individuals include in their résumés information about their involvement in volunteer programs and charitable organizations is because they A. are socially responsible. B. have no paid work experience. C. do not expect a high salary. D. will need a lot of training.

B; trick question. they haven't worked much, so they list volunteer instead; you wouldn't include being socially responsible on a resume, but Mrs. Armstrong disagrees with their answer. think about it like which is the most valuable reason

12. A credit manager must write a letter of rejection to a credit applicant. To maintain the customer's patronage, the letter should A. not mention the credit application. B. state the bad news immediately. C. be a formal letter of apology. D. open with a positive statement.

D Open with a positive statement. An effective way to relay bad news in written form is to present good news, bad news, and then good news. This process would ease the blow of credit rejection and help to create goodwill. No apology is necessary since the business is following routine procedure and is not responsible for the customer's credit rating. The bad news is presented after a positive opening statement. The credit application is the subject of the letter and must be mentioned.

96. What question is often asked in the work experience section of an employment application? A. When are you available to begin work? B. Are you eligible to work in this country? C. What course of study have you completed? D. Why did you leave your previous job?

D: - where you worked, what dates you worked, and why you left - C is not about work, its about school

48. Which of the following is an organizational vision: A. Margaret's company wants to be the best sporting goods store in the country. B. Penelope's department wants to offer the best customer service in the state. C. Franco wants to get his project done by the end of the week. D. Omar's shoe store plans to increase sales by 15% this quarter.

Margaret's company wants to be the best sporting goods store in the country. all these other things SUPPORT an organization vision, but your organizational vision is your grand overall end goal which SHOULD be to be the best. why you create.

23. What is a realistic example of a benefit that employees could expect for reinforcing their company's environmentally friendly image? A. Extra day of vacation for riding a bike to work instead of driving B. Bonus of $500 for finishing a project early C. Airline ticket to the employee who recycles the most over one year D. Luncheon for employees who turn in reports on time

a

60. Limiting the number of credit cards that you have will help you A. manage your spending. B. purchase most of the items that you want. C. waive the transaction fees for each card. D. exceed your credit limit.

a

63. A company's current balance of assets and liabilities falls under the focus of A. working capital management. B. return on capital. C. capital investment decisions. D. the cash conversion cycle.

a

88. A traditional ordering system typically begins with A. the business gathering sales data and inventory information. B. customer surveys to assess customer needs. C. the business making sure all inventory is exhausted first. D. buyers going on buying trips.

a

What is one reason why businesses write informational messages? A. To sell products B. To prepare letters C. To develop memos D. To identify customers

a

49. Which of the following is the best way to approach a coworker who has a vision impairment: A. Make a small amount of noise as you come near B. Tap the person with a paper or other object C. Touch the person to make him/her aware of your presence D. Say something in a loud voice when you reach the person

a make a small noise like clearing your throat or shuffling your feet you dont want to scare them you should NEVER touch a person without their consent

9. Once you know your group's purpose, what should you do next? A. Contribute in a useful way B. Find out what people know about the subject C. Volunteer a new idea D. Agree on ground rules

agree on ground rules. Once you know your group's purpose, you can (as a group) lay some simple ground rules for appropriate behavior during the discussion. Finding out what people know about the subject and contributing in a useful way occur later in the process. Volunteering a new idea is a discussion tool for contributing in an open-minded way.

20. Which of the following is the best way to handle customers who come into the business with a string of complaints: A. Give personal advice B. Determine the cause of the problem C. Avoid waiting on them D. Refer them to another business

b

49. Which of the following activities is considered an essential part of thoroughly examining a viewpoint: A. Doing objective research B. Arguing with others C. Reflecting on your beliefs D. Showing respect

b

55. The first step in setting up a budget is to A. cut fixed expenses. B. add up your income. C. maintain a spending log. D. invest in retirement.

b

75. The two best ways to send a document by email are by A. rekeying the document as an email and by sending a file attachment. B. including it as a file attachment and by pasting it into the body of the email. C. rekeying the document in the email and by creating a hyperlink to the document. D. creating a hyperlink to the document and by pasting it into the body of an email.

b

84. When a customer or an employee is involved in a minor accident on the business's premises, an employee of the business should immediately A. offer to take the person home. B. report the accident to a supervisor or manager. C. help the injured person move to a quiet area. D. call the local medical emergency number.

b

97. When writing a letter of application, it is important for individuals to state that A. they have many references. B. a résumé is attached. C. a friend works for the business. D. they are in need of a job.

b

99. Many businesspeople are required to take continuing education classes to A. improve their standard of living. B. maintain their professional certifications. C. demonstrate their emotional intelligence. D. supplement their existing income.

b

The supervisor said, "Amber, I know that this is a busy time for you right now, but I really need for you to give me the weekly expense report on Tuesday morning. Because you submitted last week's report on Wednesday, reimbursement checks were delayed, and several employees did not receive payment when they expected it." The supervisor is providing Amber with A. an unsolicited opinion. C. internal feedback. B. constructive criticism. D. a defensive response.

b

84. Major Company decided to use a loss-prevention technique that would monitor employee activity in the business to detect theft as it takes place. What type of security device should Major Company implement? A. Electronic sensors C. Undercover shoppers B. Closed-circuit television D. Convex, one-way, and two-way mirrors

b Systems of cameras, monitors and recording equipment that are not used for broadcasting but are connected to a closed network by cables. CCTV is used primarily for video surveillance of premises.

10. Jolie is working in a group in her business class. If she wants to contribute to her group's discussion in a meaningful way, what should she do? A. Wait for other people to lead the conversation when it gets silent B. Let someone know right away if his/her idea is bad or unrealistic C. Summarize what's been discussed in the conversation D. Ask questions as a way of judging someone else's suggestion

c

27. Which of the following statements about wholesale trade businesses is true: A. They operate only from distribution centers. B. They operate only from mail-order warehouses. C. They operate from a variety of business premises. D. They operate in areas convenient to ultimate consumers.

c

59. Preparing wills and setting up guardianships are types of financial services that often are provided by A. courts. B. executors. C. attorneys. D. beneficiaries.

c

75. Ingrid is able to access information from her desktop publishing software, word-processing software, and spreadsheet software at the same time on her personal computer. This is an example of an operating system with __________ capabilities. A. multiprocessing C. multitasking B. multiuser D. multithreading

c

78. What procedure should always be performed before posting a web page on a web server? A. Review the page to make sure the content meets international trade requirements B. Consult an attorney to verify the accuracy of the web page legal content C. Test the page to identify broken links, missing images, or unclear instructions D. Apply for a patent to protect the web page contents from plagiarism

c

86. You want to do something fun this weekend, so you call up your friends to see if they want to go to an amusement park. This is an example of A. organizing. B. scope. C. planning. D. transparency.

c

9. An individual calls your company and asks to speak with your coworker, Rhonda Hoffman. What should you do if Rhonda is not available to take the call? A. Tell the caller that you would be glad to take his/her order. B. Advise the caller to call again in a few minutes. C. Ask the caller if s/he would like to leave a message. D. Put the caller on hold while you track down Rhonda.

c

63. Why is it important to start early when planning for retirement? A. To benefit from the time value of money B. To beat inflation rates C. To take advantage of compounded interest D. To ensure that protections are in place for retirement plans

c; time value of money indicates that today's dollar is worth more now because of inflation rates, so it's not time value of money

19. Which type of customer can best be described as being shy, insecure, and sensitive? A. Suspicious B. Domineering/Superior C. Dishonest D. Slow/Methodical

d

22. One factor that might limit the human resources available for certain jobs is a(n) A. organized training program. B. appealing company image. C. good safety record. D. inadequate pay level.

d

56. One reason why some businesses make investments and hold them for less than one year is to A. control inflation rates. B. monitor long-term wealth. C. reduce tax obligations. D. obtain short-term capital.

d

72. An advantage to a business that uses intranet capabilities is that it allows employees to share the business's information with A. former employees. B. competitors. C. customers. D. each other.

d

75. To streamline its information systems, the Mason Company wants to purchase a computer program that performs a variety of related functions, such as accounts payable, accounts receivable, and general ledger applications. The Mason Company should purchase a(n) __________ computer package. A. customer identification B. marketing intelligence C. engineering design D. integrated software

d

91. What can an employee do on a regular basis to maintain an organized workspace? A. Shred documents that are over one year old B. Make copies of all computer documents C. Place all paperwork in storage boxes D. Discard outdated files and papers

d

Which of the following is a relevant question for a job applicant to ask during an employment interview: A. What is your annual salary? B. Are there any good restaurants nearby? C. Why didn't the sales department meet its goals last month? D. What type of training do you provide for this position?

d

64. Which of the following is a factor that determines how much investment risk a person can handle: A. Banking institution C. Social status B. Income D. Goals

d if youre trying to be a billionaire, you need to take big risks income doesn't dictate your quality of life investment risk is based on what your trying to do, not how much money you have

97. Cara wants a promotion and has told her boss she is looking to move forward in her career. One way she can show this to her boss is to A. ask for more work. B. take credit for others' work. C. give her easier tasks to others. D. complain that she is doing more than others.

97. A Ask for more work. Asking for more work is proactive and will show supervisors that Cara can handle her workload, is a team player, and wants to see the team succeed. Taking credit for others' work, passing off easier tasks, and complaining can hinder promotions and may paint the employee in a negative light.

98. An employee tells a joke in the office that directly discriminates against females. This could be a potential __________ violation. A. safety B. privacy C. equal opportunity D. HIPAA

98. C Equal opportunity. A joke that directly discriminates against females would most likely go against a company's equal opportunity policies, which discourage inappropriate behavior in regards to race, gender, sexual orientation, religion, and culture. Privacy issues deal with intrusions on personal information. Safety policies are in place to provide physical safety for employees. HIPAA is the Health Insurance Portability and Accountability Act, which deals with insurance and health information.

99. S.M.A.R.T. goals are a very effective method of motivating employees and increasing productivity. A S.M.A.R.T. goal is said to be specific, measurable, attainable, relevant, and A. tested. B. trusted. C. timely. D. terrific.

99. C Timely. S.M.A.R.T. goals are specific, measurable, attainable, relevant and, timely. This eliminates confusion and helps employees know what is specifically asked of them.

10. June is in charge of operations at BZ Corporation. She attends a meeting to hear the latest projections from the CEO so she can brief her department on the new material. What is one note-taking strategy that will make her efforts more effective? A. Recording every sentence B. Abbreviating words and sentences C. Spelling every word correctly D. Using a pencil instead of a pen or computer

10. B Abbreviating words and sentences. Abbreviating words and sentences streamlines the note-taking process and allows you to focus on the content. Recording every sentence and spelling every word correctly make the note-taking process less efficient. Using a pencil, pen, or computer is based on personal preference and may or may not make note-taking more efficient.

19. Difficult customers who believe that they know more than you or could do your job better are often referred to as A. slow/methodical. B. leave-me-alone. C. domineering/superior. D. dishonest.

19. C Domineering/Superior. Difficult customers who believe that they know more than you or could do your job better are often referred to as domineering/superior. Leave-me-alone customers do not want your advice or assistance even though you might be able to help. Slow/Methodical customers are indecisive or just take a long time to make up their minds. Dishonest customers may try to steal or get a discount on merchandise that isn't on sale.

29. A manager divides a large job into smaller units so that each individual on her staff can do one task to accomplish the job faster and easier. The manager is making use of A. job rotation. B. specialization by trade or profession. C. increased job depth. D. division of labor.

29. D Division of labor. Division of labor, or specialization by stage of production or task, occurs when a large job or work force is divided into smaller units to accomplish a job faster and easier. Specialization by trade or profession is the type of work a person performs to earn a living, also known as her/his occupation. Job depth is the amount of control and decision-making responsibility an employee has in a job. Job rotation is an instructional method in which employees are rotated periodically from one job to another to broaden the employees' perspective of the business.

47. A team of employees is working on a big presentation for a national conference, and their manager wants to motivate them to do a great job. The manager should A. avoid communicating with the team. B. encourage creativity and new ideas. C. let team members work on unchallenging tasks. D. avoid giving much praise.

47. B Encourage creativity and new ideas. If the manager wants to motivate team members, s/he should encourage creativity and new ideas as much as possible. Giving people freedom to create new solutions and ideas can encourage them to do better work. The manager should communicate often with the team and give praise when possible. Giving employees challenging tasks can actually help motivate them and help them grow.

75. The Alphabet Corporation is putting rules into place for updating its customer database on a regular basis. One of the basic rules for maintaining customer records is to A. allow all employees to update the database. B. only access the database yearly. C. restrict access to the database. D. ignore the dates that customer information was added to the database.

75. C Restrict access to the database. Allowing every employee to access the database could result in clutter, duplicates, and different formats—hindering the usefulness of the database—so limiting access to only a few individuals is the best course of action. Customer information should be updated and modified as often as possible, so only accessing the database yearly could leave you with incomplete information. It's important to pay attention to the dates that information was added so that you know when information is outdated.