Intro to Business
Assets refer to the tangible economic resources owned by a firm.
False
________ is an agreement to produce and market another company's product in exchange for a royalty or fee.
A license
According to Maslow's hierarchy of needs theory, which of the following are self-actualization needs?
A person's need to become what he or she is capable of becoming.
________ limit the amount of particular goods that countries allow to be imported during a given year.
Import quotas
The equilibrium point is the point at which quantity of a good or service equals the quantity demanded.
True
Another term for work specialization is ________.
division of labor
In a ________ organization, a manager usually has a wide span of control.
flat
The ________ economic system allows individuals to own and operate the majority of businesses with limited economic intervention by the government.
mixed
An organization that seeks to operate efficiently and effectively to achieve its goals without focusing on profit as a motive is a ________.
nonprofit organization
________ refers to a resource or capability a company must have before it can start competing in a given market.
Barriers to entry
Which of the following combines the benefits of independent business ownership with the support of a large organization?
Buying a franchise
________ refers to some aspect of a product or company that makes it more appealing to target customers.
Competitive advantage
________ claims an employee's level of effort is tied to the expected outcome of the effort.
Expectancy theory
Which of the following is a drawback of David McClelland's three-needs theory?
It has limited practicality in terms of identifying needs.
________ are fairly important individual goods and services that people buy less frequently.
Shopping products
Which one of the following is true regarding the economic environment of business that shapes the behavior of buyers and sellers?
Virtually every decision made is influenced by the economic environment.
Which of the following Acts protects the rights of employees to join and assist labor unions?
Wagner Act
During which stage of the product development process would a feasibility study be most useful?
idea screening
What is the level of authority and liability in a general partnership?
joint authority and joint liability
Which of the following allows companies to make data-driven marketing decisions?
marketing analytics
Aligning the workforce refers to ________.
matching the right employees to the right jobs at the right time
A diagram that shows how employees and tasks are grouped and where the lines of communication and authority flow is called a(n) ________.
organization chart
Developing strategies, establishing goals and objectives for the organization, and translating those strategies and goals into action plans is part of the ________ function of management.
planning
Which of the following is an example of a strength that companies possess?
respected brand
Organizations can promote systems thinking by ________.
showing people how they contribute to the overall goal
Organizational purchasing differs from consumer purchasing in that organizational purchasing ________.
usually involves closer relationships between buyers and sellers
A(n) ________ is a brief and inspirational expression of what a company aspires to be.
vision statement
________ are those activities in which a company excels and has the potential to create competitive advantages.
Core competencies
What can a manager do to benefit from systems thinking?
Solve problems instead of moving them to another subsystem.
In a(n) ________, employees aren't required to join the union but must pay the equivalent of union dues.
agency shop
A(n) ________ is a framework of how a business intends to generate revenue.
business model
What types of technologies are strong enough to create or destroy companies?
disruptive
In order to be effective, a business goal should be ________.
measurable
A(n) ________ is a specific, short-range target or aim.
objective
A public corporation refers to a corporation ________.
whose stock is sold to the general public
Which of the following is a major difference between a line view and a circular view?
A circular view includes feedback, unlike a line view.
________ is the process of gathering information about the demands, responsibilities and worker requirements of each position in the organization.
Job analysis
The ________ Act was passed in 1932 to limit companies' ability to obtain injunctions against union strikes, picketing, membership drives, and other activities.
Norris-La Guardia
________ refers to overseeing all the activities involved in producing goods and services.
Operations management
________ is the term used to describe the difference between revenue and expenses.
Profit
________ is money that an organization brings in through the sale of its goods and services.
Revenue
What is the advantage of a master limited partnership?
They have the fundraising capabilities of a corporation without the double taxation disadvantage.
________ refer to brands that have been given legal protection so that their owners have exclusive rights to their use.
Trademarks
Which of the following is an advantage of offshoring?
U.S. firms can charge lower prices through offshoring.
Which of the following is a field of study that might offer better insight into consumer buying behavior?
behavioral economics
Businesses can impact society in both positive and negative ways. Occupying land and displacing existing businesses are examples of ________.
disrupting communities
Which of the following helps an organization define product features and workability?
feasibility studies
The risk and reward relationship ________.
is fundamental to businesses in every modern economy
Which of the following designates any ethnic segment other than white Americans of European descent?
minority
A(n) ________ is an unincorporated company owned by two or more people.
partnership
Entrepreneurs often have a talent for inspiring others, or ________ for what they do.
passion
What are positive internal factors that contribute to a company's success?
strengths
Succession planning is used to identify key employees and potential replacements, allowing HR to estimate ________.
the supply of available employees
A country's balance of payment equals the ________.
total flow of money into the country minus the total flow of money out of the country
Which of the following is a valid observation of corporations?
A corporation is distinct from the people running it.
Which of the following actions of the government indicates the privatization of an industry?
Allowing private businesses to operate in an industry that was previously operated by the government.
________ refers to a view of business that considers the many decisions that must be made and the potential problems that must be overcome before the organization can deliver its products or services.
Business mindset
How are taxes paid in a partnership?
By each partner based on their individual profit.
To better protect union interests after the passage of the Taft-Hartley Act, how did labor federations respond?
By increasing cooperation and merging to form the AFL-CIO.
________ is defined as a pathway for the flow of authority from one management level to the next.
Chain of command
What is one of the key roles of management?
Creating an environment where employees can excel in their work.
Which of the following is a disadvantage of offshoring?
Customer responsiveness may suffer due to offshoring.
________ is the study of how a society uses scarce resources to produce and distribute goods.
Economics
________ refers to a state of physical and emotional exhaustion that can result from constant exposure to stress over a long period of time.
Employee burnout
________ is lead by innovation, initiative, and the willingness to take the risks in creating and operating businesses.
Entrepreneurship
________ suggests that employee satisfaction depends on the perceived ratio of inputs to outputs.
Equity theory
________ is a broad concept that incorporates one's genetic background in addition to cultural issues such as language.
Ethnicity
________ connects an employee's efforts to the outcome he or she thinks will result from those efforts.
Expectancy theory
________ are a form of financial assistance in which producers receive enough money from the government to allow them to lower their prices.
Export subsidies
What type of exposure to liability is there in a sole proprietorship?
Exposure is unlimited and the owner's personal responsibility.
________ refers to the idea that carefully designed performance targets and aims can motivate employees to higher performance.
Goal-setting theory
________ refers to a supposed effect of organizational research, in which employees change their behavior because they are being studied and given special treatment.
Hawthorne effect
________ refers to how the various business functions and work specialties are divided across the company.
Horizontal structure
________ refers to determining the right quantities of supplies and products to have on hand and tracking where those items are.
Inventory control
Which of the following is a key advantage that corporations have over sole proprietorships and partnerships?
Investments in corporations have more liquidity than partnerships and sole proprietorships.
Which of the following is an advantage of buying into a franchise system?
It comes with an established business system.
Preparing a business plan serves which of the following functions?
It helps persuade lenders and investors to finance the business.
Which of the following is a defining characteristic of a problem-solving team?
It is assembled to find ways of improving quality, efficiency, or other performance measures.
Which of the following is a key advantage of incorporating a business as a sole proprietorship?
It is easy to establish and requires less paperwork than other structures.
Which of the following is a defining characteristic of a task force?
It is formed to work on a specific activity with a completion point
Which of the following is a defining characteristic of a command team?
It is organized along the lines of the organization's vertical structure.
Which of the following is a defining characteristic of a committee?
It typically deals with regularly recurring tasks, such as addressing employee grievances.
________ refers to a statement of the tasks involved in a given job and the conditions under which the holder of a job will work.
Job description
________ refers to a statement describing the kind of person who would be best for a given job - including the skills, education, and previous experience that the job requires.
Job specification
________ refers to a motivational approach in which managers and employees work together to structure personal goals and objectives for every individual, department, and project to mesh with the organization's goals.
Management by objectives
________ refers to a company's target customers, the buying influences that shape the behavior of those customers, and competitors that market similar products to those customers.
Market environment
________ refers to the combination of forces that moves individuals to take certain actions and avoid other actions.
Motivation
________ is legislation passed in 1935 that established labor relations policies and procedures for most sectors of private industry.
National Labor Relations Act
________ refers to contracting out certain business functions or operations to other companies.
Outsourcing
________ utility is the benefit provided by making the company's products available where customers want to purchase them.
Place
Which of the following is a key difference between private corporations and public corporations?
Private corporations are owned by a few people, whereas public corporations can be owned by anyone who has the means to buy stake.
________ refers to the acquisition of the raw materials, parts, components, supplies, and finished products required to produce goods and services.
Procurement
How can a large firm foster an entrepreneurial spirit within the organization?
Reward risky behavior that might lead to innovation.
________ suggests that an organization is making changes in the workforce to match its business needs more precisely.
Rightsizing
________ are politically motivated embargoes that revoke a country's normal trade relations status.
Sanctions
Which of the following is one of the main reasons that small businesses are using social media for marketing and advertising?
Social media allows them to stretch their small advertising and promotional budgets.
________ plans outline the firm's long-range (often two to five years) organizational goals and set a course of action the firm will pursue to reach its goals.
Strategic
Which of the following best describes the working relationship within a team?
Teams have shared missions and are collectively responsible for their work.
________ made it illegal for employers to practice sexism or discrimination on the basis of gender.
The Civil Rights Act of 1964
A business mindset is a view of business that considers the various decisions a business has to make as well as the challenges that it must overcome in order to be successful.
True
Capitalism is a term used to describe the free-market system, one in which private parties own and operate the majority of businesses and where competition, supply, and demand determine which goods and services are produced.
True
Government agencies require publicly traded companies to publish extensive and detailed financial reports.
True
Management is the process of planning, organizing, leading, and controlling to meet organizational goals.
True
Unlimited liability is a legal condition under which any damages or debts incurred by a business are the owner's personal responsibility.
True
________ refers to the percentage of the workforce that leaves every year.
Turnover
Which of the following is an advantage of labor unions?
Union members receive greater benefits compared to nonunion employees.
Which of the following is a disadvantage of becoming a union member?
Unions often force employees to help fund political activities.
Which of the following is a key difference between a corporation and a sole proprietorship?
Unlike a sole proprietorship, a corporation has limited liability.
How can managers avoid or eliminate reoccurring mistakes in the system?
Use mistakes as an opportunity to learn.
________ include all the elements and processes from transforming raw materials to making the final products available to the ultimate customer.
Value chains
________ refers to the number of layers the chain of command is divided into from the top of the company to the bottom.
Vertical structure
The maturity stage of product life cycle is ________.
a stage where firms have to win sales away from others
Which of the following is an example of an industrial union?
a union that represents all the employees of a manufacturing company
Which of the following is a characteristic of a matrix structure?
assigning employees to functional and project teams simultaneously
Which of the following is the main objective of engaging in inventory control?
balancing supply and storage costs
A(n) ________ has most of the attributes of a regular corporation but adds the legal requirement that the company must also pursue a stated non-financial goal.
benefit corporation
A company's ________ defines how it will generate revenue and produce a profit.
business model
Which of the following requires less work and less risk because there is an established customer base?
buying an existing business
The money, equipment, and buildings that a business needs in order to produce goods and services are called ________.
capital
Organizations that focus decision-making authority near the top of the chain of command are said to be ________.
centralized organizations
Which of the following is, in part, a contributor to the gender pay gap?
chosen profession
Which of the following is a form of union security where an employer is allowed to hire only union members?
closed shop
An S corporation ________.
combines limited liability of a corporation with the federal taxation advantages of a partnership
In the workplace, motivation can be assessed by measuring four indicators: satisfaction, engagement, rootedness, and ________.
commitment
When the U.S. dollar is strong, U.S. exports will likely ________.
cost more in other countries
Which of the following influence our purchase decisions by shaping values, attitudes, and beliefs?
culture
Choosing a candidate from several job applicants is an example of the ________ role of managers.
decisional
In the U.S. culture, age is often associated with ________, creating the potential for discrimination.
declining powers
A(n) ________ shows the relationship between the amount of product that buyers will purchase at various prices, all other factors being equal.
demand curve
Three factors contributing to the increased number of small businesses are technologies such as e-commerce, growing diversity in entrepreneurship, and ________.
downsizing and outsourcing
Microeconomics is the study of ________.
economic behavior among consumers and businesses
To ensure the supply of available experienced employees for new opportunities, where should companies focus efforts?
employee retention
According to McGregor, Theory X-oriented managers believe that ________.
employees dislike work and can be motivated only by the fear of losing their jobs or by extrinsic rewards
An employee's rational and emotional commitment to his or her work is termed as ________.
engagement
Employee retention programs ________.
ensure a steady supply of experienced employees for new opportunities
The positive, forward-thinking desire to create a profitable, sustainable business is called ________.
entrepreneurial spirit
Studying people in their daily lives to learn about their needs, wants, and behaviors in real-life settings is called ________.
ethnographic research
The number of units of one currency that must be exchanged for a unit of the second currency is known as the ________ between the currencies.
exchange rate
A(n) ________ is a tool that provides quick-read summaries of vital performance variables.
executive dashboard
Profits of sole proprietorships ________.
flow directly to the owners
Predicting when events will occur and their impact on the organization should be done through ________.
forecasting
In a ________, companies can decide what to produce, how to produce, whom to sell to, and at what price to sell.
free-market system
Grouping workers according to their similar skills, resource use, and expertise is called a ________ structure.
functional
The ________ is a metaphor for discriminatory practices that have prevented women and minorities from advancing to executive level jobs.
glass ceiling
The introductory stage will be followed by a(n) ________ stage for a successful product.
growth
The Labor-Management Relations Act, better known as the Taft-Hartley Act, ________.
guarantees the right of employees not to join or support unions
Which of the following is an objective of protectionism?
guarding specific industries in a nation
A major advantage of partnerships is that they ________.
have a straightforward income tax structure
Quality of hire measures ________.
how closely incoming employees meet the company's needs
Which of the following refers to people and their individual talents and capabilities?
human resources
An organization decides to use crowdsourcing in its new-product development process. Crowdsourcing would be used during the ________ stage of product development.
idea generation
Which of the following is most likely to encourage entrepreneurship?
inability to find attractive employment anywhere else
Managerial roles are grouped into three main categories: interpersonal, decisional, and ________.
informational
In the global marketplace, which of the following is often a type of key asset needed to successfully utilize an advantage?
intellectual
In systems view, an organizational department is viewed as a(n) ________.
interconnected element
Providing leadership to employees is an example of a(n) ________ role of management.
interpersonal
The entrepreneurial spirit found within a larger corporation is referred to as ________. vitality
intrepreneurship
Research and development is carried out usually during the ________ stage of product development.
introduction
Dumping ________.
involves selling a product at a price lower than the cost of production
A disadvantage of the corporate structure is that it ________.
involves strict reporting requirements
A small business is defined as a company that ________.
is independently owned and operated and not dominant in its field
Consumer purchasing differs from organizational purchasing in that consumer purchasing ________.
is influenced more by subconscious and emotional factors
A sole proprietorship ________.
is owned by only one person
A potentially significant disadvantage of a partnership is that ________.
it has more potential for disagreement and conflict
When evaluating job requirements, which of the following tries to identify the nature and demands of a position, and the best employee profile to fill the position?
job analysis
Which of the following alternative work arrangements allow two or more employees to share a single full-time job, and split the salary and benefits?
job sharing
The period of time between placing an order for supplies and receiving the material is called ________.
lead time
The point in a system where a small correction could improve performance is called the ________.
leverage point
What is management's top priority when having to work with unions in the organization?
making sure the firm can stay competitive
Which of the following refers to the interrelated tasks that lead an organization in pursuit of its goals?
management
A company benefits from economies of scale when it ________.
manufactures and distributes products in higher quantities
The process of collecting and interpreting information about customers, competitors, and other related marketing issues is known as ________.
marketing research
A(n) ________ is a brief declaration of what the organization aims to accomplish for customers, investors, and other stakeholders.
mission statement
What must every employee have in order to perform at a high level?
motivation
In response to increasing demand for products in developing countries, some manufacturers pursue a strategy called ________ by establishing production facilities in or near those markets.
near-shoring
When a firm develops a marketing campaign for a social cause, such as a cleaner environment, what type of marketing campaign is being used?
needs marketing
Typically, labor unions seek to protect employee interests by ________.
negotiating with employers for better wages and benefits
Shifting a job to an overseas division of the same company is considered ________.
offshoring
What type of utility is created when a customer actually purchases and has a product?
possession
During the final stage of development, large-scale production and distribution of the product begins the process of ________.
product launch
A business plan is a written document that summarizes the ________.
proposed business venture, goals, and plans for achieving those goals
A ________ identifies key employees who are considered critical to the company's ongoing operations and lists potential replacements.
replacement chart
The Wagner Act was passed, it ________.
required employers to bargain in good faith with unions
The phenomenon where U.S. companies move their production back to U.S. soil is known as ________
reshoring
According to Frederick Herzberg's two-factor theory, which of the following factors acts as a motivator?
responsibility
Which of the following refers to the degree to which an employee intends to stay with his or her employer?
rootedness
According to Maslow, workplace factors such as health insurance, pension plans, and retirement benefits would satisfy ________.
safety needs
According to Maslow, what type of motivational need is the need to become everything one can be?
self-actualization
Belief in your ability to complete a task is known as ________.
self-efficacy
A ________ creates value by performing activities that provide benefit to the customer.
service business
Goal-setting theory of motivation suggests that ________.
setting goals is an effective way to motivate employees
Population trends that change the composition of consumer markets and the workforce are a part of a company's ________ environment.
social
Which of the following has moved marketing from being a one-way promotional tool to a two-way conversation tool?
social commerce
Who are the workers who apply entrepreneurial strategies to cause large-scale social change?
social entrepreneurs
The classic theory of comparative advantage suggests that each country should ________.
specialize in those areas where it can produce more efficiently than other countries
Which of the following gives unionized employees rights and opportunities that are more closely aligned with management, and is the most fundamental appeal of unionization?
strength in numbers
Before establishing long-term goals, a company should understand its ________ relative to opportunities and threats.
strengths and weaknesses
Individual systems within an organization are considered ________ of the overall business
subsystems
The ________ depicts the relationship between prices and quantities that sellers will offer for sale, regardless of demand.
supply curve
The overall strategic plan of an organization might be supported by plans from functional areas, such as research and development, manufacturing, and marketing. The plans from these functional areas are called ________ plans.
tactical
Taxes on goods charged by a country where an item is being imported to are known as ________.
tariffs
Taxes, surcharges, or duties levied against imported goods are known as ________.
tariffs
The term ________ refers to forces resulting from the practical application of science to innovations, products, and processes.
technological environment
The need to feel a part of something larger is a motivational indicator called ________.
the drive to bond
Which of the following is a typical role of middle managers in an organization?
translating strategic goals and objective into actions
In a(n) ________, employees don't have to be union members when they are hired, but they must join the union within a specified period of time.
union shop
Which of the following helps determine the value a customer places on a product?
utility
A country has a trade surplus when the ________.
value of its exports exceeds the value of its imports
A country has a trade deficit when the ________.
value of its imports exceeds the value of its exports
"Do what's right, respect others, care for customers, and perform with excellence." This is likely to be an organization's ________ statement
values
One of the most important skills a manager can develop is the ability to ________.
view the business from a systems perspective
Which of the following is a quality that a successful entrepreneur is most likely to have?
views failure as a chance to grow