Intro to Business: Final exam study guide

17:Carole Grand and Bonnie Lamore run a shuttle service from Western Illinois to the busy Chicago O'Hare airport. Last month, they recorded the following: Revenues [25 trips @ $80 per trip] $2,000 Fuel charge [$30 per trip] 750 Banking expenses 20 Insurance expenses 70 Van depreciation 250 Taxes (@25%) 228 Carole and Bonnie's gross profit for the past month was:

$1,250 gross margin = rev - costs of goods sold in this case, COGS is the fuel charge because for every trip of $80 revenue, there is a direct cost associated with earning that revenue.

17:As a bank loan officer, you are considering a loan application by Peak Performance Sporting Goods. The company has provided you with the following information: Cash $25,000 Account receivable 45,000 Inventory 140,000 Fixed assets 190,000 Current liabilities 70,000 Long term liabilities 90,000 Peak performance's debt to owners equity ratio is: Select one: a. 133.3% b. 45.4% c. 112.5% d. 66.7%

66.7%

3:The world market is approximately ______________. Select one: a. 30 billion potential customers b. 7 billion potential customers c. 300 million potential customers d. 1 billion potential customers

7 billion potential customers

5:A major advantage of S corporations is that they: Select one: a. Can have more stockholders than a C corporation. Incorrect b. Require less paperwork to set up than a C corporation does. c. Can operate in foreign nations as if they were domestic corporations. d. Avoid the problem of double taxation associated with conventional corporations.

Avoid the problem of double taxation associated with conventional corporations.

18:________ examine the data prepared by ________ and then make recommendations to top management regarding strategies for improving the firm Select one: a. Accountants; financial managers b. Financial managers; accountants c. Accountants; bankers d. Financial managers; bankers

Financial managers; accountants

3:The legislation that prohibits U.S. businesses from making "questionable" or "dubious" payments to foreign officials, to secure business contracts is the _____________. Select one: a. Anti-Collusion Law b. Foreign Anti-Trust Act c. Foreign Corrupt Practices Act d. United Nation Proper Business Conduct Law

Foreign Corrupt Practices Act

17:If a firm has a debt to owners' equity ratio of .54 (or 54%) we can conclude that: Select one: a. Its total liabilities are less than its owners' equity. b. The firm has expenses that are exactly 54% of its gross profit. c. The firm is likely to have trouble paying its short term debts when they come due. d. It has relied more on debt than equity to finance its operations.

Its total liabilities are less than its owners' equity.

9:With the __________ inventory control system, producers hold only the amount of materials and parts that they need for a short period of time - sometimes just a few hours. Select one: a. First in First out (FIFO) b. Just in time (JIT) c. ABC d. maximum

Just in time (JIT)

9:The ___________ National Quality Award is given to firms that achieve an outstanding level of overall quality based on performance in seven key areas. Select one: a. Association of Operations Managers b. Malcolm Baldrige c. Excellence in Production Committee d. National Association of Manufacturers

Malcolm Baldrige

11:What is NOT true about performance standards in a performance appraisal process? Select one: a. Manager can change the standard unilaterallys when he/she sees a business need b. Communicate the standards to the employee c. Standards should be reasonable and measurable d. Compare employee performance against the standards

Manager can change the standard unilaterallys when he/she sees a business need

4:What is necessary to improve America's business ethics? Select one: a. Managers and employees must be trained to act ethically b. Companies should let employees decide on their own based on their own background c. CEOs should step back and let Human Resources department decide on the ethics codes d. Ethics code is an internal company matter, and should not involve outsiders such as suppliers, subcontractors, customers or distributors.

Managers and employees must be trained to act ethically

17:Which of the following responses is the best and most comprehensive? "A company's accounting information is useful to _____________." Select one: a. Marketing research firms for pricing insights b. Managers within the firm, exclusively c. Primarily the IRS and other government agencies that regulate the firm d. Managers, owners, creditors, employees, and the government

Managers, owners, creditors, employees, and the government

11:Which of the following is NOT an appropriate selection step in screening candidates for a position? Select one: a. Test skills such as programming, software, welding, etc that are related to doing the job b. Credit check c. Marital status d. Personality test

Marital status

17:A bookkeeper's first task is to Select one: a. Interpret and report data to the firm's management. b. Separate all of the firm's transactions into meaningful categories. c. Prepare the firm's financial statements. d. Summarize the firm's financial data.

Separate all of the firm's transactions into meaningful categories

17:In order to understand if the results of ratio calculations indicate a financially strong company, the results: Select one: a. Are compared to same size firms in the same geographic region of the country. b. Are compared to the norms established by generally accepted accounting principles. c. Are compared to the largest firms in the country. d. Should be compared to other firms in the same industry

Should be compared to other firms in the same industry

4:What is true about whistleblowers? Select one: a. Whistleblowers are not protected by law b. Whistleblowers report illegal and unethical behavior c. Whistleblowers disclose internal company information and should be dismissed immediately d. Whistleblowers are unethical

Whistleblowers report illegal and unethical behavio

9:Using computers to help with design and manufacturing of products is called: Select one: a. MRP b. CAD/CAM c. SAP d. ERP

CAD/CAM

5:Two important considerations when choosing a form of business ownership is: Select one: a. Number of small businesses vs. Large businesses currently formed and percentage of profits that each form brings to the nation's GDP b. Number of employees and banking access. c. Taxes and liabilities d. liabilities and assets

Taxes and liabilities

1: According to the textbook, what caused the shift from Agricultural Era of business to Manufacturing Era and Manufacturing to the Service Era? Select one: a. Technology makes farming more efficient, resulting in fewer farmers with larger farms b. Service industry generated most of the jobs c. Technology sector dominated the job market d. Population growth

Technology makes farming more efficient, resulting in fewer farmers with larger farms

17:Net profit prefers to: Select one: a. The result of deducting liabilities from the assets of the firm. b. The result of deducting depreciation expense from revenues. c. The net earnings after the deduction of all expenses, including tax expense. d. The result of subtracting cost of good sold from revenues.

The net earnings after the deduction of all expenses, including tax expense.

5:One reason that companies participate in mergers and acquisitions is: Select one: a. To do the same thing as the competition because it makes for a highly leveraged company. b. To take the first step toward a join venture. c. To expand within their own field or enter new markets. d. To convert a sole proprietorship into a partnership.

To expand within their own field or enter new markets.

17:How would you calculate debt to equity ratio? Select one: a. Long term liabilities over Total shareholders equity b. Current liabilities over common stocks c. Total Liabilities over Total shareholders equity d. Total Assets over Total liabilities

Total Liabilities over Total shareholders equity

5:In a cooperative, members/customers: Select one: a. are known as limited partners b. Democratically control their businesses by electing a board of directors. c. Each have unlimited liability for the debts of the firm. d. Take turns serving on the board that manages the company.

Democratically control their businesses by electing a board of directors.

7:_________ is choosing among two or more alternatives. Select one: a. Decision making b. Contingency planning c. Utlity analysis d. Organizational selection

a. Decision making

14:What does a break-even point of 100 units mean to a firm? Select one: a. If the firm sells 100 units, its total revenues will equal its total costs. b. The firm must sell 100 units to maximize its profits. c. By producing 100 units, the firm can ensure that variable costs completely cancel its fixed costs. d. Fixed costs plus variable costs equals 100 units.

a. If the firm sells 100 units, its total revenues will equal its total costs.

5:The income generated by S-Corporations: Select one: a. Passes through to its owners, and each is taxed individually for this income. b. Is taxed separately from its owners. c. Is provided to non-profit organizations, so it is considered a tax-free source of funds. d. Must be reinvested in the business. Owners should not expect dividends.

a. Passes through to its owners, and each is taxed individually for this income.

5:The limited liability provided to limited partners means that they are not responsible for the debts of the business beyond: Select one: a. The amount they have invested in the company. b. The percentage of profits they are entitled to earn. c. Their total personal assets d. The firm's total assets.

a. The amount they have invested in the company.

7:When a firm makes use of the SWOT analysis, one of its objectives is to: Select one: a. identify the things it does well as an organization and the things it needs to improve. b. set specific short-term performance standards for each department. c. evaluate the desirability of issuing stocks or bonds in the current financial climate. d. identify the best employees to fill each position within the organization.

a. identify the things it does well as an organization and the things it needs to improve.

11:In a _____________ arrangement two part-time employees fill one full-time job. Select one: a. job sharing b. job enlargement c. multitasking d. split shift

a. job sharing

5:Which of the following is an advantage of the corporate form of business when compared to sole proprietorships and partnerships? Select one: a. limited liabilities of owners b. ease of formation c. lower taxes d. simplified paper work

a. limited liabilities of owners

5:_____________are companies that are similar to S Corporations but are not restricted with similar eligibility requirements Select one: a. limited liability companies b. limited partnership c. franchises d. Sole proprietorship

a. limited liability companies

5:One way to eliminate some of the risk of your partners making costly mistakes that could jeopardize your personal assets is to set-up a: Select one: a. limited liability partnership b. sole proprietorship c. Master limited partnership d. limit the amount of time each can actively spend in the business

a. limited liability partnership

15:Those organizations that assist in the movement of goods and services from producer to industrial and consumer users are known as: Select one: a. marketing intermediaries. b. directed marketers. c. supplementary marketers. d. distributive specialists.

a. marketing intermediaries.

10:Maslow classified the needs for basic items such as food, water, and shelter as: Select one: a. physiological needs b. self-actualization needs c. sustenance needs d. safety needs

a. physiological needs

16:People with an unmet need, the authority to buy, and the willingness to listen to a sales message represent a firm's: Select one: a. prospects b. intermediaries c. employees d. buyers

a. prospects

16:The use of promotional tools to persuade wholesalers and retailers to stock and sell merchandise represents a: Select one: a. push strategy b. financial strategy c. segmentation strategy d. pull strategy

a. push strategy

16:In the B2B selling process, the selection of potential customers and make sure they have the needs and authority to buy is known as: Select one: a. qualifying b. promoting c. prospecting d. closing

a. qualifying

10:In Maslow's hierarchy, __________ needs refer to the desire to reach one's fullest potential. Select one: a. self-actualization b. social c. egoistic d. esteem

a. self-actualization

7:A meaningful mission statement should address topics such as the organization's: Select one: a. self-concept and company philosophy. b. form of ownership and methods of financing. c. tactical plans and contingency plans. d. advertising strategy and distribution plan.

a. self-concept and company philosophy.

13:During the ________, the prevalent business philosophy turned from an emphasis on production to an emphasis on advertising and selling Select one: a. selling era b. marketing concept era c. customer relationship era d. production era

a. selling era

5:The__________ is usually the easiest form of business to start and end. Select one: a. sole proprietorship b. limited partnership c. corporation d. general partnership

a. sole proprietorship

5:If a group of stockholders or management obtain all the stock of a previously publicly traded firm for themselves, this is referred to as: Select one: a. taking the firm private b. turning the equity c. capitalizing d. stock turning

a. taking the firm private

16:Firms with a very limited advertising budget would be very unlikely to use ________ advertising. Select one: a. television b. Internet c. outdoor d. radio

a. television

6:Bankers and potential investors are likely to read ___________ first. Select one: a. the executive summary b. the marketing plan c. the qualifications of the management team d. the analysis of the competition

a. the executive summary

3:A disadvantage of licensing is: Select one: a. the licensee may decide to use the expertise you have developed, break the agreement, and begin producing the product on his/her own. b. very costly for the licensor. c. . your company's image is never permitted to be associated with the product, even though you are the developer. d. the licensee can decide to end the contract at a moment's notice.

a. the licensee may decide to use the expertise you have developed, break the agreement, and begin producing the product on his/her own.

7:Autocratic leadership is likely to be effective when: Select one: a. the organization faces an emergency situation. b. workers enjoy expressing their opinions and having a say in what is done. c. subordinates are highly trained professionals. d. the manager is uncertain about the best strategy to pursue.

a. the organization faces an emergency situation.

18:Which of the following correctly identifies areas of authority and responsibility for a chief financial officer (CFO)? Select one: a. accounting and finance b. marketing and finance c. finance and research and development d. production and accounting

accounting and finance

9:The six sigma approach to quality control: Select one: a. detects potential problems early to prevent their occurrence. b. views quality control as a function of the marketing department. c. relies on a special team of experts to examine every unit of output at the end of the production process. d. allows only 3.4 defective units per one million units produced.

allows only 3.4 defective units per one million units produced.

17:A(n) _________ is a yearly published statement of the financial condition, progress and expectations of an organization Select one: a. independent audit b. annual report c. balance sheet d. mission statement

annual report

11:The first step in establishing training and development programs is to: Select one: a. establish appropriate simulation parameters b. start designing programs. c. conduct pre-employment tests. d. assess the needs of the organization and the skills of the employees.

assess the needs of the organization and the skills of the employees.

17:Resources that a firm owns are called: Select one: a. assets b. cash c. equities d. revenues

assets

17:__________ involves the review and evaluation of the records that are used to prepare the organization's financial statements. Select one: a. financial accounting b. certified bookkeeping c. managerial accounting d. auditing

auditing

15:Taken together, all of the organizations that move goods from the sources of raw materials to ultimate consumers is known as a(n): Select one: a. critical distribution path. b. supply chain. c. multifunction network. d. marketing priority network.

b. supply chain.

15:The types of utility commonly provided by marketing intermediaries include: Select one: a. cost, value, flexibility, use, and resale. b. time, place, possession, information, and service. c. retailing, wholesaling, brokering, and financing. d. product, price, place, and promotion.

b. time, place, possession, information, and service.

17:The __________ is an accounting statement that reports the financial condition of a firm at a specific point in time. Select one: a. income statement b. trial balance c. balance sheet d. statement of cash flows

balance sheet

17:The ______________ shows how the capital is structured in the business, including the value of assets and the amount the firm owes at a specific point in time Select one: a. statement of cash flows b. income statement c. trial balance d. balance sheet

balance sheet

18:The interest paid on________ represents a tax deductible business expense. Select one: a. depreciated assets b. stock c. bonds d. retained earnings

bonds

13:Which of the following describes a word, letter, or group of words or letters that differentiate the goods and services of a seller from those of competitors? Select one: a. generic name b. brand name c. prototype name d. production designation

brand name

18:In order to assist in revenue realization, a(n) ________ allocates resources throughout the firm. Select one: a. income statement b. balance sheet c. budget d. forecast

budget

1: An activity which seeks to earn a profit by providing a good or service is known as a(n): Select one: a. service b. business c. industry d. corporation

business

10:Herzberg's research identified several ___________ factors that did not necessarily motivate employees if they were increased, but could cause employees to become dissatisfied if they were missing or inadequate. Select one: a. retroactive b. negative c. inferior d. hygiene

d. hygiene

10:The practice of moving employees from one job to another to make work more interesting is called: Select one: a. task mobility b. job incrementation c. worker alternation d. job rotation

d. job rotation

15:_________ involves planning, implementing, and controlling the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit Select one: a. Export management b. multi-level marketing c. shipping control management d. logistics

d. logistics

15:In _____________,salespeople are independent contractors who not only sell the product, but also recruit additional salespeople Select one: a. hierarchical marketing b. telemarketing c. two stage marketing d. multi-level marketing

d. multi-level marketing

11:__________is the process of establishing and maintaining contacts with key managers in one's own organization and in other organizations, and using those contacts to establish strong relationships that serve as informal development systems. Select one: a. training and development b. orienteering c. social integration d. networking

d. networking

16:Which of the following offers the greatest potential for meaningful interaction between buyers and sellers? Select one: a. informercials b. testimonials c. CD ROM advertising d. online advertising

d. online advertising

11:The overall purpose of the five step human resource planning process is to: Select one: a. eliminate needless job specifications. b. determine the number and types of employees needed by the firm. c. protect the company from lawsuits from employees who claim discrimination. d. develop a workforce that is better educated than the workforce of competitor firms.

determine the number and types of employees needed by the firm.

1: High tax rates tend to: Select one: a. discourage entrepreneurship b. reduce the amount of money created by the government c. make a nation's currency tradable d. promote economic development

discourage entrepreneurship

17:__________ is the accounting practice of recording each transaction in two places in the accounting journal. Select one: a. entry duplication b. double entry bookkeeping c. trial balancing d. account matching

double entry bookkeeping

3:A(n)__________ refers to a complete ban on importing or exporting of products from a specific country. Select one: a. absolute tariff Incorrect b. embargo c. health quarantine d. quota

embargo

1:A(n) ____________ is a person who assumes the risk of starting a business. Select one: a. investor b. entrepreneur c. manager d. stakeholder

entrepreneur

1: Two factors of production that seem to contribute the most to a nation's ability to create wealth are: Select one: a. land and labor b. land and capital c. entrepreneurship and knowledge d. entreprenuership and labor

entrepreneurship and knowledge

18:By selling shares of ownership in their company, California Scientific acquires the funds needed to finance their research and development projects. California Scientific provides for their long-term funding needs through ________ financing. Select one: a. equity b. asset c. retained d. debt

equity

18:In 2009, it was rumored that the previous owners of Skype (the internet calling service), were interested in buying it back from its current owner, eBay. The two entrepreneurs were said to be soliciting others who wanted to join them in the private ownership of this company. If they are successful in funding the venture in this way, the purchase of Skype would be financed with__________. Select one: a. leverage b. debt c. bonds d. equity

equity

11:The first step in the performance appraisal process is to: Select one: a. establish performance standards. b. perform a human resource inventory. c. meet with employees and discuss the overall objectives of the firm. d. analyze the jobs to see what tasks must be performed.

establish performance standards

17:The preparation of financial statements for people outside the firm (creditors, unions, suppliers, and others) is the goal of: Select one: a. managerial accounting b. auditing c. financial accounting d. cost accounting

financial accounting

18:As a management consultant, Lamont knows that regardless of how good his firm's product might be, the business has little chance of success without a(n): Select one: a. advertisement b. financial plan c. auditor d. warranty

financial plan

11:A___________ plan gives employees some ability to adjust when they work, as long as they work the required number of hours. Select one: a. Gantt scheduling b. cafeteria style plan c. flextime d. varitime

flextime

3:A form of foreign direct investment, where a domestic company purchases a company in a foreign country to produce a similar product or service is a: Select one: a. host company b. joint venture c. licensor d. foreign subsidiary

foreign subsidiary

3:Firms such as McDonald's, Pizza Hut, and KFC, have entered the global market by offering investors the opportunity to buy: Select one: a. licensed trade offices b. independent exporting companies c. franchises d. foreign subsidiaries

franchises

17:Revenue, minus cost of goods sold =____________. Select one: a. owners' equity b. net income c. gross profit d. retained earnings

gross profit

17:Apple sells its Apple Watch's sports bands for $49 each, yet it costs only $2.05 to manufacture. What is the difference between $49 and $2.05 called? Select one: a. Gross Profits b. Cost of Goods Sold c. Net profits d. Net expense

gross profits

14:Which of the following refers to a group of products offered by a firm that are physically similar or are intended for a similar market? Select one: a. total product offer b. product mix c. product line d. product matrix

c. product line

13:A consumer's decision-making process is influenced by his/her __________, consisting of those people who help shape the consumer's beliefs, attitudes, values or behavior Select one: a. social class b. focus group c. reference group d. target audience

c. reference group

10:Herzberg's research found that safe working conditions and good pay: Select one: a. helped maintain worker satisfaction, but did little to increase motivation. b. are important motivators for most employees. c. had no impact on worker morale. d. were very important motivators for professional employees and managers, but were poor motivators for unskilled employees.

helped maintain worker satisfaction, but did little to increase motivation.

14:As firms develop their marketing mix, it is important to remember that: Select one: a. prices must be linked directly to the cost of production b. firms are often restricted in creating pricing strategies by relevant government rules and guidelines c. regardless of the strategy used, prices ultimately reflect the forces of supply and demand. d. instincts and past history are the best guides in determining price.

c. regardless of the strategy used, prices ultimately reflect the forces of supply and demand.

13:__________ consists of information that has already been researched by others and is published in journals or books, or has been made available online Select one: a. precoded information b. technical data c. secondary data d. primary data

c. secondary data

17:A firm's ________ reports the profit or loss for the firm over a specified time period. Select one: a. balance sheet b. bank statement c. income statement d. cash flow statement

income statement

1: The new era of business is likely to be dominated by the: Select one: a. continuing decline in productivity b. manufacturing sector c. service sector. d. information-based sector

information-based sector

18: Under capitalization refers to the problem of: Select one: a. inadequate control of expenses. b. under-valued capital stock. c. inappropriate cash flows. d. insufficient start-up funds.

insufficient start-up funds.

9:A production process characterized by a short production run and frequent adjustments to machines so that different products can be produced is known as a(n): Select one: a. analytic process b. intermittent process. c. lean manufacturing system d. just in time process

intermittent process.

17:_____ measures the speed of inventory moving through the firm and its conversion into sales. Select one: a. inventory turnover ratio b. cost of goods sold turnover ratio c. sales turnover ratio d. asset turnover ratio

inventory turnover ratio

11:A management training program that gives managers assignments in a variety of departments in order to expose them to different functions within the organization is called: Select one: a. job rotation b. vestibule training. c. apprenticeship program d. job enlargement

job rotation

17:The accounting book or computer program where each day's transactions are first recorded is called a(n): Select one: a. journal b. posting book c. balance sheet d. general ledger

journal

17:A __________ is a specialized accounting book, where transactions are categorized according to type. For example, all utility transactions are recorded in the same category. Select one: a. journal b. trial balance c. balance sheet d. ledger

ledger

17:Financial ratios that reflect the degree to which a firm relies on borrowed funds are called ________ratios Select one: a. leverage b. liquidity c. profitability d. financing

leverage

17:When companies owe money to creditors, suppliers, and others, these outstanding amounts are recorded on the balance sheet as __________. Select one: a. expenses b. liabilities c. contra assets d. owners' equity

liabilities

17:The fundamental accounting equation states: Assets = __________. Select one: a. liabilities plus receivables. b. payables plus cash equivalents. c. liabilities minus owners' equity d. liabilities plus owners' equity.

liabilities plus owners' equity.

17:_________ refers to how quickly an asset can be converted into cash. Select one: a. fundability b. accessibility c. velocity d. liquidity

liquidity

17:The financial ratios that measure a firm's ability to pay its short-term debts are called: Select one: a. liquidity ratios b. equity ratios c. leverage ratios d. profitability ratios

liquidity ratios

18:If a company secures a three year bank loan, it is considered __________. Select one: a. liability funding b. short-term financing c. asset funding d. long term financing

long term financing

17:The area of accounting that provides managers inside the organization with information they need to make decisions is called: Select one: a. informational accounting b. managerial accounting c. tax accounting d. financial accounting

managerial accounting

6:Historically entrepreneurs in the U.S. Select one: a. created wealth for themselves, but have had a minor impact on the economy as a whole. b. experienced success only when they worked in partnership with the federal government. c. started many small firms that later became major corporations employing thousands of workers. d. played an important role, but are less important now in creating jobs and wealth.

c. started many small firms that later became major corporations employing thousands of workers.

5:An owner of a corporation is known as: Select one: a. general partner b. stakeholder c. stockholder d. limited partner

c. stockholder

7:A ______ plan is done by the top management that sets the major goals of the organization and determines the resources it will need to achieve the plan. Select one: a. operations b. tactical c. strategic d. contigency

c. strategic

7:The type of planning that is concerned with developing detailed short-term actions about what is to be done, who is to do it, and how it is to be done is known as __________planning. Select one: a. contigency b. strategic c. tactical d. operations

c. tactical

15:______ is the sale of goods and services by telephone. Select one: a. direct marketing b. cel-tailing c. telemarketing d. teleselling

c. telemarketing

13:Which of the following is most consistent with a relationship marketing strategy? Select one: a. distributing goods through limited service discount stores b. the creation of a national advertising campaign using radio and television to increase market share c. the development of a Web site that seeks customer feedback and allows customers to communicate with each other d. designing a promotional campaign to increase cooperation among the firm's suppliers

c. the development of a Web site that seeks customer feedback and allows customers to communicate with each other

3:Afavorable balance of trade occurs when the value of: Select one: a. imports equal the value of exports b. the value of the dollar is greater than the value of the Euro c. the value of imports is less than the value of exports d. the cash inflows equal the value of the cash outflows

c. the value of imports is less than the value of exports

6:Small businesses are important to the U.S. economy because: Select one: a. they fill-in the gaps when large businesses want to let workers go on vacation; or when large businesses want to temporarily cease production b. banks and other financial services companies would not have borrowing customers, because small businesses borrow more than large businesses c. they create over 60% of new jobs each year and generate over 50% of the U.S. GDP d. they pay most of the tax revenue collected by the U.S. government

c. they create over 60% of new jobs each year and generate over 50% of the U.S. GDP

14:The cost of raw materials used to produce a good or service represent the firm's ________ costs. Select one: a. mixed b. fixed c. variable d. uncontrollable

c. variable

6:A firm or individual providing financial capital to small businesses in exchange for an ownership stake in the company is called a(n): Select one: a. takeover specialist b. financial analyst c. venture capitalist d. corporate raider

c. venture capitalist

15:A _________ is a marketing intermediary that sells products to other organizations. Select one: a. merchandizer b. disintermediary c. wholesaler d. retailer

c. wholesaler

18:Which of the following shows a firm's spending plans on fixed assets such as large equipment? Select one: a. capital budget b. operating budget c. surplus budget d. cash budget

capital budget

17: The most liquid asset is: Select one: a. sales b. account receivable c. owners' equity d. cash

cash

17:___________ refers to the difference between cash coming into the firm and cash leaving the firm. Select one: a. cash flow b. liquidity c. accounts payable d. retained earnings

cash flow

11:Sales people often are paid a _______ based on a percentage of their sales. Select one: a. salary b. piece rate c. royalty d. commission

commission

1: When corruption is present in the business environment: Select one: a. it promotes fair competition b. workers can make more money c. factories are easier to build without a government permit d. company leaders can threaten competitiors and minimize competition

company leaders can threaten competitors and minimize competition

4:A(n)________-based ethics code emphasizes the prevention of unlawful behavior by increasing control and penalizing wrongdoers. Select one: a. compliance b. legal c. corporate responsibility d. integrity

compliance

1:The green movement is: Select one: a. concern with depletion of natural resources and leaving carbon footprint b. a trend that started with the U.S. government c. developing more green food products to feed the world's poor d. our concern with the fact that everywhere we look, things are remaining green for longer periods of time.

concern with depletion of natural resources and leaving carbon footprint

3:Export trading companies: Select one: a. are government owned businesses that help companies go global. b. enter into joint ventures with firms wanting to export goods and services. c. connect sellers in the U.S. with buyers in other nations, and help with customs, documentation and payments d. is similar to a corporation that sells franchises.

connect sellers in the U.S. with buyers in other nations, and help with customs, documentation and payments

5:The form of business ownership that usually requires the most detailed recordkeeping is the: Select one: a. limited liability partnership b. general partnership c. corporation d. sole proprietorship

corporation

17:Which of the following items is found on an income statement? a. current assets b. cost of goods sold c. owners' equity d. cash flow from investments

cost of goods sold

17:Debts that are due in one year or less are classified on the Balance Sheet as: Select one: a. account payable b. bonds payable c. callable bonds d. current liabilities

current liabilities

1: The customers, employees, stockholders, suppliers, creditors, and others who stand to gain or lose by the policies and activities of a business represent the firm's: Select one: a. economic environment b. managers c. market makers d. stakeholders

stakeholders

1:The amount of goods and services people can buy with the money they have is called their: Select one: a. standard of living b. consumper price index c. nominal income d. profit margin

standard of living

17:A ___________ provides a summary of cash coming into and money going out of a firm from operations activities, financing activities, and investing activities. Select one: a. statement of cash flow b. cash receivable and payable report c. budget plan d. income statement

statement of cash flow

3:A__________ represents a long-term partnership between two or more companies established to help each firm build competitive market advantages, without sharing the cost of risk. Select one: a. joint venture b. global franchise c. multinational cooperative d. strategic alliance

strategic alliance

13:A firm's marketing mix refers to the combination of: Select one: a. people directly involved in making marketing decisions. b. goods the firm offers to different market segments. c. strategies regarding product, price, place, and promotion. d. advertising media the firm utilizes to promote its products.

strategies regarding product, price, place, and promotion

17:Skilled professionals who are responsible for the development of strategies to minimize taxes are called: Select one: a. certified internal auditors b. tax accountants c. certified public accountants d. certified management accountants

tax accountants

6:Intrapreneurs make use of __________ to develop and launch new products and generate new profits. Select one: a. old ideas abandoned by entrepreneurs b. their own personal financial resources c. government-supplied physical and financial resources d. their employer's existing human, financial, and physical resources

their employer's existing human, financial, and physical resources

1: In countries where businesses are government owned: Select one: a. the quality of goods is high but profits are low b. there is less incentive to work hard c. profits tend to be higher d. the right amount of each good is produced

there is less incentive to work hard

11:Corporate managers who supervise, coach, and guide lower-level employees and serve as their organizational sponsors are called: Select one: a. mentors b. role models c. networkers d. corporate guides

mentors

1: Businesses favor: Select one: a. less government spending because it lowers business profits. b. maximum government spending because it raises business profits. c. . minimal government spending because it keeps taxes to a minimum. d. more government services because it minimizes tax consequences.

minimal government spending because it keeps taxes to a minimum

17:Rent, depreciation, and salaries are examples of: Select one: a. current assets b. owners' equity c. operating expenses d. current liabilities

operating expenses

18:The overall objective of financial planning is to: Select one: a. optimize the firm's profitability b. establish budgets for financial control c. forecast the impact of technological trends. d. prepare financial statements for managers.

optimize the firm's profitability

17:_______ refers to the value that stockholders or owners have in a company. Select one: a. owners' equity b. assets c. liabilities d. contra receivables

owners' equity

11:The_____________ is an evaluation of the performance level of employees against established standards to make decisions about promotions, compensation, additional training, or firing. Select one: a. job analysis b. MBO assessment c. objective analysis d. performance appraisal

performance appraisal

13:A firm gathers ___________data by conducting surveys, interviewing customers, or mailing out questionnaires Select one: a. secondary b. primary c. biased d. unbiased

primary

9:In ____________, materials are physically or chemically changed to produce a product. Select one: a. utilitarian production b. diffusive manufacturing c. process manufacturing d. assembly process

process manufacturing

17:Earnings per share, return on sales, and return on equity are examples of: Select one: a. leverage ratios b. liquidity ratios c. profitability ratios d. equity ratios

profitability ratios

17:The top managers of Highbrow Bookstores want to indicate to the firm's shareholders how effectively they have managed the company. Perhaps the most meaningful way to do this would be by reporting strong: Select one: a. leverage ratios b. profitability ratios c. liquidity ratios d. activity ratios

profitability ratios

1: In recent years, almost all new job creation in the United States has occurred in the __________ sector: Select one: a. service b. manufacturing c. agricultural d. telecommunications

service

1: Appliance repair firms, tax consultants, law firms, and insurance companies are all business firms that are part of the: Select one: a. new industry sector b. management sector c. service sector d. production sector

service sector

18:If a company secures a one-year bank loan it is considered _______. Select one: a. asset funding b. short term financing c. long term financing d. liability funding

short term financing

18:The biggest challenge of effective financial management is: Select one: a. working within the strict regulations of the Financial Accounting Standards Board (FASB). b. ensuring the satisfaction of each of the stakeholder groups. c. to have sufficient cash on hand without compromising the firm's investment potential. d. providing the financial data in a timely manner for management consultants to improve decision making.

to have sufficient cash on hand without compromising the firm's investment potential.

9:The purpose of a PERT network is: Select one: a. to monitor the progress of a multi-step project during its development. b. to monitor the quality of a product for compliance with ISO 9000 standards. c. to connect all firms that are ISO 9000 certified so that they can partner with each other on future projects. d. to be used as a decision making tool when evaluating the best facility locations and layouts.

to monitor the progress of a multi-step project during its development.

3:Since1975, the U.S. has had a(n) ____________. Select one: a. trade surplus b. import surplus c. export surplus d. trade deficit

trade deficit

11:Vestibule training is ________ Select one: a. an online training course b. training in a classroom primarily for safety and procedures c. Another name for Job Simulation such as for airline pilots d. Taken after being on a job for a while as refresher course

training in a classroom primarily for safety and procedures

18:Typically, only highly regarded customers with financial stability receive ___________. Select one: a. secured loans b. unsecured loans c. commercial paper d. bank premiums

unsecured loans

17:Accounting recognizes that assets, such as machinery and buildings, lose value over time. Accountants will record a portion of the cost of an asset as an expense each year through the use of: Select one: a. appreciation b. depreciation c. Asset valuation. d. asset audits

depreciation

17:As a bank loan officer, you are considering a loan application by Peak Performance Sporting Goods. The company has provided you with the following information from its Balance Sheet: Cash $25,000 Account Receivable 45,000 Inventory 140,000 Fixed assets 190,000 Current liabilities 70,000 Long term liabilities 90,000 Peak performance's current ratio is: Select one: a. 3.0 b. 1.5 c. 2.5 d. 1.0

3.0

17:Marshall McBride inherited$10,000 from his Great Aunt Martha. He invested $5,000 in a new start-up venture, 10th Generation, Inc., and the other $5,000 in Major Chemicals, Inc., a well-known chemical company that's been around for years. Yesterday, he gathered the following information from the financial statements of these companies. 10th Generation, Inc: Net income after taxes $3,000,000 Total owner's equity 66,000,000 Total assets 134,000,000 Major Chemicals, Inc: Net income after taxes $224,000,000 Total owner's equity 4,000,000,000 Total assets 8,000,000,000 At this time, Marshall's return on equity is: Select one: a. 4.5% on the 10th Generation, Inc. stock; 5.60% on the Major Chemicals, Inc. stock b. 16% on the 10th Generation, Inc. stock; 11% on the Major Chemicals, Inc. stock c. 2.24% on the 10th Generation, Inc stock; 2.8% on the Major Chemicals, Inc. stock Incorrect d. 8.5% on the 10th Generation, Inc stock; 10.5% on the Major Chemicals, Inc. stock

4.5% on the 10th Generation, Inc. stock; 5.60% on the Major Chemicals, Inc. stock

17:In the current economic climate, banks are remaining very conservative in their lending practices. Peak Performance Sporting Goods is seeking a loan for expansion. As a loan officer for the local bank, you calculate the total equity as: Cash $25,000 Accounts Receivable 45,000 Inventory 140,000 Fixed Assets 190,000 Current Liabilities 70,000 Long term liabilities 90,000 Select one: a. $160,000 b.$240,000 c. $70,000 d. $400,000

Assets = Liabilities + Equities Assets = $25k+$45k+$140k+$190k = $400k Liabilities = $70k+$90k = $160 $400k=$160k+Owners Equity $240,000 A=L+E Add up all the assets = cash + AR + Inv + Fixed assets Add liabilities = curr liab + LT liab Then solve for E

17:The balance sheet is composed of the following types of accounts: Select one: a. Capital, cost, and valuation. b. Operating expenses, cash flow, and capital expenditures. c. Revenue, expenses, and earnings. d. Assets, liabilities, and owners' equity.

Assets, liabilities, and owners' equity.

1: When businesses sell to other businesses over the Internet, these transactions are known as: Select one: a. B2C transactions b. B2B transactions c. e-wholesale transaction d. intermediate e-commerce transaction

B2B transactions

17:Where do you find the information to calculate Liquidity ratio? Select one: a. Depreciation table b. Income Statement c. Cash flow statement d. Balance sheet

Balance sheet

17:The three important financial statements prepared by accountants are: Select one: a. Cash budget, capital budget, and master budget. b. Ledger, journal, and trial balance. c. Balance sheet, income statement, and statement of cash flows. d. Revenue summary, expense summary, and consolidation statement

Balance sheet, income statement, and statement of cash flows.

11:Danielle relies on summer earnings to fund her next year at the university. When she tried to get her old high school summer job back at local Cool Rags Clothier, she learned that the manager no longer hires college students during the summer months. Which of the following strategies do you recommend that Danielle pursue? Select one: a. Realize that Cool Rags always needs more sales associates in the summer, and stay in contact with the management just in case. b. Look for a permanent position, and quit as it gets closer to the time when you will return to the university. c. Contact temporary staffing companies. d. Seek the services of a resume consultant, and pay to access a variety of employment tests so that you are prepared when the next job opportunity arises.

Contact temporary staffing companies.

5:Which of the following is an attractive benefit of a corporation? Select one: a. Corporations can enjoy double taxation. b. Corporations can attract employees by offering stock options. c. Unlike limited partnerships, all owners of corporations are passive investors. d. Corporations can protect its owners with unlimited liability.

Corporations can attract employees by offering stock options.

5:"Double taxation" means: Select one: a. If stockholders decide to sell their shares, they are subject to paying twice the amount of taxes on any capital gains. b. As the owner of the company, you pay twice the amount in employment taxes on yourself, as you do on your employees. Incorrect c. Corporations pay taxes on their profits. If they distribute after-tax profits to the stockholders, the stockholders also pay taxes on the distribution. d. If the corporation doubles its profits from the previous year, the firm's tax rate (the percentage it pays in taxes) will also double.

Corporations pay taxes on their profits. If they distribute after-tax profits to the stockholders, the stockholders also pay taxes on the distribution.

17:Costs that are incurred directly due to every revenue dollar is: Select one: a. Costs of Goods Sold b. Operating Expenses c. Gross profit d. Depreciation expenses

Costs of Goods Sold

17:An accountant's responsibilities include: Select one: a. Setting prices for specific goods and services. b. Developing plans to help his company establish a supply chain. c. Entering, summarizing and interpreting financial information needed by his firm's managers. d. Developing a fringe benefit program that improves employee morale.

Entering, summarizing and interpreting financial information needed by his firm's managers.

5:One disadvantage of a limited liability company is that it: Select one: a. Requires the owners to divide up profits and losses in a fixed proportion. b. Requires all earnings of the business be taxed at the corporate rate. Incorrect c. Has a more restrictive ownership requirement than S corporations. d. Has a limited life span.

Has a limited life span

9:____________ standards are concerned with the best practices for managing an organization's environmental impacts. Select one: a. EPA 2000 b. Eurogreen 700 c. Enviro 2001 d. ISO 14000

ISO 14000

3:An unfavorable balance of trade occurs when the value of: Select one: a. Imports exceed the value of exports b. Imports equal the value of exports c. Exports exceed the value of imports d. Cash inflows are equal to the value of cash outflows

Imports exceed the value of exports

17:Depreciation is a systematic write-off of the cost of a tangible asset that is listed on___________. Select one: a. Statement of retained earnings b. Income Statement c. The Statement of Cash Flows d. Balance sheet

Income Statement

18:Facebook announced on February 1, 2012 that it is going to sell its stocks for the first time on the stock exchange hoping to raise $5 billion. This first-time offering is a(n): Select one: a. Stock Equity Commission b. Broad Based Offering c. Stock Fund Offering d. Initial Public Offering

Initial Public Offering

4:What is true about insider trading? Select one: a. Insider trading is legal if the insider does not use the information for himself or herself, but give to family or friends. b. Insider trading is illegal only when the person makes over $10,000 c. Insider trading is illegal only if the person profits from the action. d. Insider trading is illegal because insiders use private company information to further their own fortune.

Insider trading is illegal because insiders use private company information to further their own fortune.

17:The markets for laundry detergents, soft drinks, and automobiles are dominated by just a few sellers. Economists would classify these markets as examples of: Select one: a. Perfect competition. b. Monopolistic competition. c. Monopolies d. Oligopolies

Oligopolies

4:Given the mortgage scandal, in order for the government and businesses to restore consumer confidence and ensure our free market system, we need to do the following except: Select one: a. Make accounting records more transparent b. People are innately greedy and there is little government and businesses can do about it. c. Consider what is ethical, not just illegal d. Punish those who have broken the law

People are innately greedy and there is little government and businesses can do about it.

11:According to the American with Disabilities Act and the Americans with Disabilities Amendments Act, which of the following is true: Select one: a. Physical disabilities include diabetes, epilepsy, heart disease, and cancer. b. Accommodation means employers should treat everyone the same c. Disabilities include only visible physical disabilities such as the need of a wheel chair d. No discrimination against individuals 40 or older

Physical disabilities include diabetes, epilepsy, heart disease, and cancer.

1: Last year, Adventure Enterprises reported revenues of $24 million while its total expenses were $10 million. Based on this information, Adventure reported: Select one: a. losses of $34 million b. losses of $14 million c. profits of $14 million d. profits of $34 million

Profits of $14 million

11:What is not part of typical corporate responsibilities to employees? Select one: a. Create jobs and provide a chance for upward mobility b. Provide employees meals and recreation facilities such as at Googleplex c. Treat employees with respect d. Offer salaries and benefits that help employees to reach their personal goals

Provide employees meals and recreation facilities such as at Googleplex

9:__________ is the operations management planning function that searches for quality material resources, finds the best suppliers, and negotiates the best price. Select one: a. Collective bargaining b. Bartering c. Marketing d. Purchasing

Purchasing

1: According to the lecture, sales receipts, as stated in the textbook, often is called ________ Select one: a. Profit or loss b. Cost of goods sold c. Expenses d. Revenue

Revenue

5:The form of business ownership best suited to raising large amounts of money for expansion is the: Select one: a. cooperative b. corporation c. Sole proprietorship. d. partnership

b. corporation

14:Costs incurred regardless of the number of units of a product that are produced or sold are called (think copying machine example in the lecture): Select one: a. fixed costs b. variable costs c. total costs d. unit cost

a. fixed costs

1:Which of the following best describes recent job growth in the service sector? Select one: a. There has been little change in the number of jobs in the service sector in recent years, however employment is expected to increase rapidly b. Employment in the service sector has declined in recent years, and this decline is expected to continue. c. Jobs in the service sector have increased slowly over the past decade, but most new jobs are created in the manufacturing industries d. The service sector has generated almost all new jobs in the American economy since the mid 1980s, but the rate of job growth in services has slowed in recent years.

The service sector has generated almost all new jobs in the American economy since the mid 1980s, but the rate of job growth in services has slowed in recent years.

5:Which of the following statements about S corporations is most accurate? Select one: a. The major attraction of S corporations is that they avoid the problem of double taxation. b. Only large corporations with operations in more than one state can qualify to be classified as S corporations. c. Any corporation willing to pay the necessary fees and fill out the required paperwork can become an S Corporation. d. S Corporations are similar to C corporations, except that the majority of owners are foreign investors.

a. The major attraction of S corporations is that they avoid the problem of double taxation.

5:The reason a professional such as a lawyer or doctor would incorporate his/her business is Select one: a. To protect his/her other assets with limited liability. b. To protect his/her assets with unlimited liability. c. To comply with the law because insurance companies require that they be corporations. d. To be assured that another professional firm would not take over and make decisions - similar to a hostile takeover.

a. To protect his/her other assets with limited liability.

16:Which of the following is required to build meaningful relationships with customers? Select one: a. Tracking customer purchases b. Offering full-service purchases over their cell phones c. Giving consumers access to limited information d. "Promoting to" rather than "working with

a. Tracking customer purchases

10:_________is the term William Ouchi used to refer to the management approach typically used by firms in the United States. Select one: a. Type A b. Type Z c. Type O d. Type J

a. Type A

10:William Ouchi called the management approach typically used by Japanese firms: Select one: a. Type J b. scientific management c. Type O d. Type X

a. Type J

3:In volume of exports, the three leading nations are: Select one: a. U.S., German & China b. England, China, U.S. c. China, India, Japan d. U.S., Japan, Canada

a. U.S., German & China

10:Theory____ assumes that the average person likes work, and has a relatively high degree of imagination and creativity. Select one: a. Y b. A c. Alpha d. X

a. Y

7:Which of the following should form the foundation of a firm's control system? Select one: a. accounting and finance b. marketing and production c. human resources and marketing d. operations and production

a. accounting and finance

6:One reason we have seen continued growth in home-based businesses is: Select one: a. affordable computer and information technology makes it easier to compete. b. people need something to do while they wait to return to work for a large corporation. c. it is less risky to start a home-based business than other types of entrepreneurial ventures. d. the location offers a more secure operational environment.

a. affordable computer and information technology makes it easier to compete.

15:A (n) _________ is one type of marketing intermediary that brings together buyers and sellers and assists in negotiating an exchange, but does not take title to the goods. Select one: a. agent b. wholesaler c. retailer d. drop shipper

a. agent

3:The_____________ is the total value of a nation's exports compared to its imports measured over a specific period of time. Select one: a. balance of trade b. balance of trade surplus c. balance of trade deficit d. balance of payments

a. balance of trade

14:Successful product differentiation: Select one: a. can be based on either real or perceived differences in products. b. of consumer goods is determined exclusively by price. c. is prohibited if it restricts price competition and market access. d. is less important due to the growth of the Internet.

a. can be based on either real or perceived differences in products.

15:A(n) ____________ consists of the marketing intermediaries that transport and store goods as they move through their path from producer to final user Select one: a. channel of distribution b. input-output matrix c. mode of distribution d. marketing network

a. channel of distribution

5:____________comprise about 20% of all businesses but account for about 80% of U.S. business receipts. Select one: a. corporations b. sole proprietorships c. partnerships d. limited liability companies

a. corporations

13:A ___________ orientation refers to the process of determining the wants and needs of buyers and then providing goods and services to meet or exceed their expectations. Select one: a. customer b. production c. profit d. market

a. customer

6:Small businesses: Select one: a. deal with similar management issues that large companies face. b. do not seek government funding due to the fact that the federal government has made it very clear that it must support large operations before small operations. c. deal with very different management issues due to the very different management challenges experienced by small businesses. d. concern themselves with state-of-the-art information and accounting technology but not employee relations due to their challenge to financially support employee benefits programs.

a. deal with similar management issues that large companies face.

7:The first step in the rational decision-making model is to: Select one: a. define the situation b. develop alternative responses c. gather data d. recruit team members to work on the problem.

a. define the situation

15:___________ means selling goods and services to ultimate consumers over the Internet Select one: a. electronic retailing b. B2B distribution c. intercommerce d. e-selling

a. electronic retailing

3:The European Union created a single monetary unit to replace the national currencies of 27 member nations. This common currency is known as the: Select one: a. euro b. pound c. e-dollar d. franc

a. euro

5:Compared to partnerships and sole proprietorships, a major advantage of the C(conventional) corporation as a form of business ownership is that it: Select one: a. Creates unlimited liability for its owners. b. Has the ability to raise more money. c. Is easier and less expensive to form. d. Qualifies for simplified tax treatment

b. Has the ability to raise more money.

6:Which of the following best describes the difference between an intrapreneur and an entrepreneur? Select one: a. Intrapreneurs start nonprofit organizations while entrepreneurs start profit-seeking businesses b. Intrapreneurs work within existing corporations while entrepreneurs assume the risks of starting their own business c. Intrapreneurs limit their efforts to financial investments, while entrepreneurs are involved in the management of all areas of a business d. Intraprenuers are practical while entrepreneurs are creative

b. Intrapreneurs work within existing corporations while entrepreneurs assume the risks of starting their own business

3:Which of the following statements is the most accurate observation regarding multinational corporations? Select one: a. Rather than manage manufacturing and marketing facilities overseas, most multinational corporations attempt to enter global markets by exporting domestically produced goods b. Only those firms with a physical presence in different nations qualify as multinational corporations. c. Most multinational corporations are small- to medium-sized firms d. Because of political and economic concerns, most multinational corporations choose to ignore investment opportunities in China and Russia

b. Only those firms with a physical presence in different nations qualify as multinational corporations.

5:When entering into a new partnership, a good strategy is to: Select one: a. Agree to put the first year's profits back into the partnership. b. Put the partnership agreement in writing. c. Plan to incorporate as soon as possible. d. Avoid putting their agreement in writing since this would limit the flexibility of the partnership.

b. Put the partnership agreement in writing.

5:Any debts or damages incurred by a firm organized as a sole proprietorshipare: Select one: a. Limited to the amount the owner has invested in the firm. b. The responsibility of the owner. c. Paid for out of a reserve contingency fund that sole proprietors are required by law to set up. d. Normally covered by liability insurance.

b. The responsibility of the owner.

3:Companies may have several reasons for creating joint ventures. Which of the following statements is one reason why firms may decide to form a joint venture? Select one: a. They may wish to contract manufacture with each other b. They will save time to market if they pool their technological know-how. c. These arrangements avoid the temptation to tap into marketing and management expertise of the parent companies d. These arrangements are always less risky than strategic alliances.

b. They will save time to market if they pool their technological know-how.

10:According to Maslow, a higher order need: Select one: a. contributes directly to the physical survival of the individual. b. becomes a source of motivation after lower order needs are satisfied. c. never provides as much motivation as a lower order need. d. always provides greater motivation than a lower order need.

b. becomes a source of motivation after lower order needs are satisfied.

6:A__________ is a written document that details the business idea, the target market and the business's competitive advantage, financial resources available for the business, and the qualification of the management. Select one: a. mission plan b. business plan c. statement of intent d. marketing plan

b. business plan

16:The advertising medium that accounts for the largest share of total advertising expenditures is: Select one: a. newspapers b. cable and broadcast tv c. radio d. internet

b. cable and broadcast tv

14:When consumers decide to purchase a particular product, they: Select one: a. will search for the retailer that offers the lowest price. b. consider the total collection of benefits that the product offers. c. initially evaluate the product's package. d. base their decision on a brand name nearly all of the time.

b. consider the total collection of benefits that the product offers.

3:When a company's strategy is __________ the firm makes arrangements for a foreign manufacturer to produce the product. The domestic company's label and/or trademark are attached to the completed product. Select one: a. franchising b. contract manufacturing c. export trading d. import trading

b. contract manufacturing

5:A separation between ownership and management is most likely to occur in a: Select one: a. general partnership b. corporation c. limited liability partnership d. sole proprietorship

b. corporation

6:A good business plan will: Select one: a. be purposefully vague, since specifics can restrict creativity and flexibility. b. describe all aspects of the business, including product, the target market, the nature of the competition, any financial resources, and the owner's qualifications. c. focus on the nature of the business and the target market, omitting personal information about the owner in order to avoid personality issues d. focus on the big picture and omit the small details of operating the business.

b. describe all aspects of the business, including product, the target market, the nature of the competition, any financial resources, and the owner's qualifications.

3:__________is the practice of selling a product in foreign countries for a lower price than the good is sold in the producing country. Select one: a. Deflating b. dumping c. Countertrading d. Inflating

b. dumping

3:__________is an arrangement whereby someone with a good idea for a business sells the rights to use the business name and sell the parent company's product or service to others in a given territory in a specified manner. Select one: a. import trading b. franchising c. contract manufacturing d. export trading

b. franchising

14:An advertisement for the Xerox Corporation encourages customers to say, "Copy it" rather than "Xerox it". This indicates that Xerox is fearful that its brand name might become a(n): Select one: a. equity name b. generic name c. public domain good d. private brand

b. generic name

14:When a brand becomes commonplace and identified with a category of goods rather than the unique product of a specific manufacturer, the brand may become a: Select one: a. universal product code b. generic name c. trademark d. product liability issue

b. generic name

14:The stages of the product life cycle are: Select one: a. opportunity recognition, concept testing, production, market acceptance, brand insistence, and obsolescence. b. introduction, growth, maturity, and decline. c. conception, testing, production, commercialization, and obsolescence. d. production, inventory, exchange, usage, and disposal.

b. introduction, growth, maturity, and decline.

5:An attempt by employees, management, or a group of investors to purchase an organization primarily through borrowing is: Select one: a. strike b. leveraged buyout c. golden parachute d. downsize

b. leveraged buyout

13:Successful marketing researchers: Select one: a. focus their efforts on determining historical needs of customers, since the core value of marketing is that the customer needs don't change. b. listen to customers and other stakeholders c. develop as much information as possible from primary sources d. rely on their experience and personal opinions when making decisions

b. listen to customers and other stakeholders

13:The __________ is based on three elements: (1) a customer orientation, (2) a service orientation, and (3)a profit orientation. Select one: a. relationship approach to marketing b. marketing concept c. hierarchy of needs d. mercantile philosophy

b. marketing concept

14:Sales of cell phones in the United States are still increasing, but the rate of growth has slowed. Sales are expected to peak somewhat soon in the U.S. Based on this information, cellular phones are in what stage of the product life cycle in the U.S.? Select one: a. growth b. maturity c. introduction d. decline

b. maturity

7:A(n) __________ would be used by a department manager as a tool for making daily and weekly assignments: Select one: a. strategic b. operations c. tactical d. contigency

b. operations

6:Two key management functions that need particular attention when starting a business are: Select one: a. staffing and controlling b. planning and financing c. human relations and accounting d. marketing and public relations

b. planning and financing

9:__________ is the creation of goods and services using land, labor, capital, entrepreneurship, and knowledge. Select one: a. purchasing b. production c. resource recombination d. supply chain management

b. production

13:__________ consists of all the techniques sellers use to persuade consumers to buy their goods and services. Select one: a. advertising b. promotion c. closing d. pre-selling

b. promotion

16:The goal of __________ is to inform and remind people in a target market about specific products, eventually persuading them to participate in an exchange Select one: a. market segmentation b. promotion c. market loyalty d. market research

b. promotion

16:The strategy of directing advertising and sales promotion toward consumers to stimulate them to request the products from their local retailers is called a: Select one: a. push strategy b. pull strategy. c. product placement strategy d. segmentation strategy

b. pull strategy.

3:________tariffs are designed to raise money for the government. Select one: a. price b. revenue c. regulatory d. profit

b. revenue

10:Maslow called the needs people have for security at work and at home: Select one: a. stability needs b. safety needs c. insurance needs d. physiological needs

b. safety needs

14:Charging high prices to earn large profits during a time when there is little competition represents a________ strategy Select one: a. bundling b. skimming c. penetration d. cost based

b. skimming

7:Which of the following best summarizes the type of leader future organizations are likely to need? In the future, organizations will need leaders who: Select one: a. provide the sense of stability and orderliness the organization needs to withstand the challenges posed by a changing environment b. supply both a vision and a moral and ethical foundation for growth. c. have a strong track record of focusing on the accomplishment of financial objectives. d. are effective at using autocratic techniques.

b. supply both a vision and a moral and ethical foundation for growth.

5:Which of the following statements about the operation of a corporation is correct? Select one: a. A corporate charter automatically expires in 99 years and must be renewed if the corporation wants to remain in business. b. Owners of a corporation have unlimited liability for any claims against their company c. A corporation receives its charter from a state government. d. A corporation tends to be much easier to set up than a sole proprietorship or partnership.

c. A corporation receives its charter from a state government.

5:Which of the following statements about partnerships is most accurate? Select one: a. A major advantage of a partnership is that it offers all owners limited liability b. A partnership is a corporation with fewer than 100 owners. c. A major drawback of a partnership is that it is difficult to terminate. d. Partnerships are taxed at the lowest corporate tax rate.

c. A major drawback of a partnership is that it is difficult to terminate.

3:__________occurs when a country has a monopoly on producing a product or is able to produce it at a cost well below that of all other countries Select one: a. Dumping advantage b. Complete advantage c. Absolute advantage d. Comparative advantage

c. Absolute advantage

5:One reason limited liability companies have become so popular is that they: Select one: a. Permit owners to avoid paying self-employment taxes on the company's profits. b. Allow owners to sell their interests in the company without requiring approval from other owners. c. Can be taxed either as a corporation or as a partnership, so owners can choose the tax treatment that is most advantageous for their situation. d. Have unlimited life.

c. Can be taxed either as a corporation or as a partnership, so owners can choose the tax treatment that is most advantageous for their situation.

15:Which of the following activities is most likely to be performed by someone responsible for supply chain management? Select one: a. Developing an effective advertising campaign for a particular line of products b. Holding focus groups to learn what consumers want in new products c. Finding ways to handle the return of goods and recycled materials d. Establishing a budget for the firm's next fiscal year

c. Finding ways to handle the return of goods and recycled materials

9:Manny is a production and operations manager who likes to keep track of how various projects are progressing. One of Manny's favorite tools is a bar graph that shows how much work has been completed on the projects that are currently underway and which processes are behind schedule. Manny likes to use a(n): Select one: a. CAD/CAM diagram b. Targeted completion date graph c. Gantt chart d. input-output graph

c. Gantt chart

10:The tendency for people to behave differently when they know they are being studied is known as the: Select one: a. Type II effect b. Taylor effect c. Hawthorne effect d. induced motivation effect

c. Hawthorne effect

9:___________ are a set of international standards for quality management and quality assurance. Select one: a. DPA 2000 b. ISO 14000 c. ISO 9000 d. TQM 2003/2004

c. ISO 9000

5:The S corporation is likely to be less popular in the future because: Select one: a. Many states significantly increased the annual fee that S corporations must pay to maintain their tax status, thus eliminating the financial advantages of this form of ownership b. S corporations have been made illegal in several states as a reaction to widespread abuse of the special benefits available to this type of business c. Limited liability companies, which do not have the restrictive eligibility requirements of S corporations d. Congress repealed the limited liability protection of S corporations and limited them to companies with earnings of less than $3 million per year

c. Limited liability companies, which do not have the restrictive eligibility requirements of S corporations

5:A significant disadvantage of owning a sole proprietorship is the: Select one: a. Possibility of limited liability. b. Lack of incentives to motivate the owner. c. Overwhelming time commitment often required of the owner. d. Heavy tax liability that must be assumed.

c. Overwhelming time commitment often required of the owner.

10:______________was the dominant strategy for improving worker productivity during the early1900s. Select one: a. Management by objective b. Social darwinism c. Scientific Management d. Job enrichment

c. Scientific Management

6:Which of the following will not help your small business succeed? Select one: a. You provide a unique service that requires a significant amount of personal attention such as a service that provides in-home care for seniors b. Investing in a franchise c. Services you perform are easily replicated by larger companies, such as online banking d. Your product is not easily mass produced, like professional photography

c. Services you perform are easily replicated by larger companies, such as online banking

10:_________blends Japanese and American management practices into a hybrid approach which calls for long-term employment, collective decision making, and individual responsibility for the outcome of decisions Select one: a. Theory Y b. Theory A c. Theory Z d. Theory X

c. Theory Z

6:Which of the following statements is characteristic of entrepreneurs? Select one: a. They like certainty b. They prefer to be inventive rather than worry about whether the invention solves a customer need c. They look at problems and see opportunities d. They have the ability to visualize a clear path

c. They look at problems and see opportunities

3:The largest importer in the global market today is: Select one: a. Japan b. Germany c. U.S. d. China

c. U.S.

3:The 3 countries in NAFTA: Select one: a. Britain, France, Germany b. Mexico, Brazil, Venezuela c. U.S., Canada, Mexico d. Panama, Belize, Costa Rica

c. U.S., Canada, Mexico

5:Three types of corporate mergers are: Select one: a. Explicit, implicit, and intrinsic. b. Economic, geographic, and financial. c. Vertical, horizontal, and conglomerate. d. Flexible, differentiated, and conditional.

c. Vertical, horizontal, and conglomerate.

3:Reviewing the recent experience of the United States in global markets reveals that the U.S has: Select one: a. avoided becoming a debtor nation. b. a merchandise trade surplus with the rest of the world. c. a large trade deficit with China d. attracted very little foreign direct investment

c. a large trade deficit with China

5:Compared to a sole proprietorship, which of the following is considered an advantage of a general partnership? Select one: a. unlimited liability for all owners b. division of profits among owners c. ability to pool financial resources d. ease and flexibility in transferring shares of ownership to others

c. ability to pool financial resources

5:A franchise can be formed: Select one: a. either corporation or partnership, but never sole proprietorship b. only as a general partnership c. can be corporation, partnership or sole proprietorship d. only as a corporation

c. can be corporation, partnership or sole proprietorship

3:Nike_________________ its products in foreign countries, where labor is cheap and production sites are owned by other companies. This strategy allows Nike to experiment in new markets without incurring large start-up costs involved with building their own production facilities. Select one: a. licenses globally b. pays governments to market c. contract manufactures d. franchises

c. contract manufactures

15:Companies who send salespeople to customers' homes or places of work are making use of __________selling Select one: a. downline b. point of contact c. direct d. nonretail

c. direct

3:An American firm recently criticized a Chinese steel producer for charging a lower price for its steel in the United States than it charges in China. If proven to be true, the Chinese firm has engaged in _________. Select one: a. protectionism b. a low labor cost strategy c. dumping d. exchange rate manipulation

c. dumping

6:When seeking financial backing from a venture capitalist, a small business owner should realize that the venture capitalist will: Select one: a. not be interested in the management of the business. b. charge an interest rate that is much higher than any other lender c. expect an ownership stake in the company in exchange for financial backing. d. demand that the money be repaid within 90 days or less.

c. expect an ownership stake in the company in exchange for financial backing.

16:The final step of the selling process involves: Select one: a. trial closing b. closing c. follow up d. posting

c. follow up

15:____________ put many small shipments together to create a single large shipment that can be transported more cost-efficiently to the final destination Select one: a. mixed merchandiser b. container shippers c. freight forwarders d. freight consolidators

c. freight forwarders

5:Ina partnership, a(n) __________ partner (owner) actively manages the company and has unlimited liability for claims against the firm Select one: a. unlimited b. associate c. general d. limited

c. general

9:Which of the following statements about the impact of CAD/CAM on manufacturing is most accurate? CAD/CAM: Select one: a. is most useful to firms producing durable goods such as automobiles. b. allows firms to save money by replacing skilled labor with computers to perform all of the high-skill tasks. c. has made it possible to produce custom-designed products with little increase in costs. d. has replaced ERP as the most sophisticated resource planning technique.

c. has made it possible to produce custom-designed products with little increase in costs.

15:Marketing intermediaries: Select one: a. are unlikely to survive in a competitive global economy. b. tend to increase the number of exchange relationships producers and consumers must deal with in order to buy and sell goods c. have survived because they can often perform marketing functions faster and at lower cost than producers. d. create value, but this value is seldom great enough to justify the added cost they charge for their services.

c. have survived because they can often perform marketing functions faster and at lower cost than producers.

10:The purpose of management by objectives is to: Select one: a. simplify the jobs of middle management by providing them with predetermined goals and objectives. b. enable top management to set goals for the entire organization. c. help employees motivate themselves with a goal-setting model that involves, discussion, review, and evaluation by management and employees. d. allow employees to set their own goals without consulting with management.

c. help employees motivate themselves with a goal-setting model that involves, discussion, review, and evaluation by management and employees.

16:A promotional campaign begins by: Select one: a. determining a promotional budget. b. defining the objectives for each element of the promotion mix. c. identifying a target market. d. developing a unifying message.

c. identifying a target market.

15:The characteristic that all forms of direct marketing have in common is that they: Select one: a. are carried out by agents or brokers. b. involve face-to-face or teleconferencing sessions with the customer. c. include some type of activity that directly links manufacturers to the ultimate consumer. d. make use of exclusive distribution systems with a network of traditional "bricks and mortar" stores.

c. include some type of activity that directly links manufacturers to the ultimate consumer.

3:One advantage of free trade is: Select one: a. jobs are shifted to low-wage global markets. b. advanced production operations are built in low-wage countries c. innovation for new products occurs which keeps firms competitively challenged d. service jobs are moved overseas

c. innovation for new products occurs which keeps firms competitively challenged

6:The Small Business Administration defines a small business as a firm that: Select one: a. is dominant in its industry, but small in the number of workers it employs. b. has fewer than 100 partners. c. is independently owned but not dominant in its industry. d. has annual receipts of more than a specified amount depending upon the industry.

c. is independently owned but not dominant in its industry.

3:An advantage of forming a joint venture is: Select one: a. no shared costs or risks b. it's a great way to enter new markets without divulging any marketing or management strategy to the other member of the joint venture c. it's a good strategy for entering new markets where you have never had a presence d. a perpetual arrangement

c. it's a good strategy for entering new markets where you have never had a presence

10:As companies restructure to create greater efficiencies in their operations, there is a greater opportunity for _____________ where management combines specialized tasks in one job, and asking employees to broaden their scope of responsibilities. Select one: a. job specialization b. job simplification c. job enlargement d. job confrontation

c. job enlargement

3:A__________ is a partnership in which two or more companies (often from different countries) join together and share the risk and costs in order to undertake a major project. Select one: a. franchisee transfer b. multinational cooperative c. joint venture d. recruit affiliation

c. joint venture

13:________ is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large Select one: a. advertising b. promoting c. marketing d. selling

c. marketing

16:Compared to other promotional tools, publicity: Select one: a. prevents a response from competitive firms b. costs more c. offers the firm little control over the message d. the easiest to manage

c. offers the firm little control over the message

7:A(n) __________ is used by an organization to show who is accountable for the completion of specific work and who reports to whom. Select one: a. annual report b. income statement c. organization chart d. balance sheet

c. organization chart

7:When managers work on creating conditions and systems to ensure that everything and everyone works together to achieve the organization's goals, they are involved in the__________ function of management. Select one: a. controlling b. planning c. organizing d. leading

c. organizing

7:The management function concerned with anticipating future trends and determining the best strategies to achieve an organization's goals and objectives is known as: Select one: a. directing b. forecasting c. planning d. leadership

c. planning

14:A competition-based pricing strategy in which all the competitors in an industry follow the pricing practices of one or more dominant firms is known as (think about the gas stations pricing discussed in the lecture): Select one: a. price penetration b. market fixing c. price leadership d. primary pricing

c. price leadership

5:The difference between a merger and an acquisition is: Select one: a. A merger does not combine the assets and liabilities of firms, whereas an acquisition combines assets and liabilities. b. A merger combines the assets of the two firms, but each company continues to assume its own liabilities, whereas an acquisition is a total buyout of one firm by another. c. A merger is always something smaller tagging onto something larger, like a merging lane onto an interstate, whereas an acquisition is two firms that are relatively the same size agreeing to continue as one - more like two major interstates that come together and travel as one for several miles. d. A merger is the joining of resources of two companies, whereas an acquisition is a buyout of one firm by the other. The new company concerns itself with merging of resources.

d. A merger is the joining of resources of two companies, whereas an acquisition is a buyout of one firm by the other. The new company concerns itself with merging of resources.

7:A vision for a company is: Select one: a. a detailed plan that outlines the major organizational structure of the firm. b. very relevant for the short-term, but less useful for the long-term. c. the same thing as an objective. d. A. an explanation of why the company exists and where it wants to go.

d. A. an explanation of why the company exists and where it wants to go.

6:________are private individuals who invest their own money in potentially hot new companies before these firms become larger, publicly traded companies Select one: a. corporate raiders b. venture capitalists c. Leveraged buyout specialists d. Angel investors

d. Angel investors

5:Which of the following statements about buying a franchise is most accurate? Select one: a. Buying a franchise is the simplest and least expensive way to set up a business, since the franchisor has already worked out all of the details for setting up and running the business b. One of the advantages of buying a franchise is that franchisors are so closely regulated that there is virtually no chance for scams to succeed. c. Franchise agreements are simple to evaluate, since federal law requires that all such agreements must be written in plain English with all fees and terms clearly explained. d. Before purchasing a franchise, the buyer should carefully evaluate the franchise, the franchisor, his or her own situation, and the nature of the market.

d. Before purchasing a franchise, the buyer should carefully evaluate the franchise, the franchisor, his or her own situation, and the nature of the market.

7:Which of the following management positions is responsible for getting the right information to other managers to enable them to make better decisions? Select one: a. Chief executive officer (CEO) b. Chief Planning officer (CPO) c. Chief financial officer (CFO) d. Chief information officer (CIO)

d. Chief information officer (CIO)

5:Which of the following is normally considered a disadvantage of the corporate form of business? Select one: a. Unlimited liability of owners. b. Limited life. c. Difficult transfer of ownership. d. Double taxation of earnings.

d. Double taxation of earnings.

3:Which of the following statements best describes the theory of comparative advantage? Select one: a. The nation that has the largest reserves of gold and other natural resources will enjoy a position of comparative advantage in trade relationships. b. The best way for a nation to ensure full employment is to be totally self-sufficient rather than relying on other nations to obtain goods and services c. A nation should produce those goods for which domestic demand is comparatively strong, and should import those goods for which domestic demand is comparatively weak. d. Each nation should produce those goods that it can produce more efficiently and effectively than other nations, and buy the goods it cannot produce efficiently from other nations.

d. Each nation should produce those goods that it can produce more efficiently and effectively than other nations, and buy the goods it cannot produce efficiently from other nations.

9:___________ is a computer application that enables a firm to combine computerized functions of all divisions and subsidiaries of the firm into a single, integrated software program that uses a single database. Select one: a. Materials requirement planning (MRP) b. PERT analysis c. Manufacturing resource planning (MRP II) d. Enterprise resource planning (ERP)

d. Enterprise resource planning (ERP)

5:To qualify as an S corporation, a company must: Select one: a. Have not more than 5 percent of income derived from passive sources. b. Have no more than 50 shareholders. c. Have a different class of stock for each owner. d. Have shareholders who are individuals or estates, and, qualify as permanent residents of the U.S.

d. Have shareholders who are individuals or estates, and, qualify as permanent residents of the U.S.

5:Earnings of C (conventional) corporations can be: Select one: a. Taxed at twice the going rate of a partnership or sole proprietorship. b. Taxed by the federal government, but exempt from state taxes if the corporation owns any facilities within that state. c. Taxed the same as a partnership. d. Taxed twice if they are distributed as dividends to stockholders.

d. Taxed twice if they are distributed as dividends to stockholders.

3:licensing is a popular strategy because: Select one: a. There are seldom any long-term contractual requirements b. Licensees spend little or no money to produce and market their products c. It increases domestic market revenues d. The licensee has incentive to work hard and succeed because he/she has borne the cost.

d. The licensee has incentive to work hard and succeed because he/she has borne the cost.

5:A___________ is an arrangement whereby someone with proven idea for a business sells the rights to use the business model, to sell a product or service to others in a given territory. Select one: a. conditional grant b. trade contract c. extended ownership agreement d. franchise agreement

d. franchise agreement

5:A person who buys the right to use a business name and sell a product within a given territory is called a Select one: a. stockholder b. limited partner c. venture capitalist d. franchisee

d. franchisee

15:Which of the following assessments of electronic retailing is most accurate? Select one: a. Traditional retailers seldom find much success when they attempt to incorporate online selling into their businesses b. Electronic retailing has two major advantages over traditional businesses: simplicity and very low startup costs c. One of the reasons electronic retailing firms have been so successful has been their ability to deal with customer complaints and provide personalized services more efficiently than traditional firms. d. The line between electronic retailing and traditional retailing is blurring as traditional retailers go online.

d. The line between electronic retailing and traditional retailing is blurring as traditional retailers go online.

5:Which of the following is not a disclosure that should be part of a partnership agreement? Select one: a. The way profits will be divided among partners. b. The specific responsibilities of each partner. c. The salaries and drawing accounts of each partner. d. The list of personal assets of each partner.

d. The list of personal assets of each partner.

5:One of the major disadvantages of a sole proprietorship is the: Select one: a. High cost of starting or ending the company. b. Possibility of disagreements between owners. c. Fact that any income earned by this type of business is taxed twice. d. Unlimited liability the owner has for the debts of the firm.

d. Unlimited liability the owner has for the debts of the firm.

5:The strategy of investors who are attempting a leveraged buyout is: Select one: a. Use investment tax credits from the government to acquire all of the physical assets owned by the firm. b. Secure ownership of all of the existing stock in a company by issuing and selling large amounts of new stock. c. Shape up the company for quick resale. d. Use debt to finance the buyout of the firm's stockholders and gain control of the firm themselves.

d. Use debt to finance the buyout of the firm's stockholders and gain control of the firm themselves.

10:Theory___ managers see employees as having a general dislike for work and an unwillingness to accept responsibility. Select one: a. A b. Z c. Y d. X

d. X

3:The fee paid to a firm in a licensing agreement that gives another firm the right to manufacture their product or use its trademark is called: Select one: a. a licensee. b. an outsource agreement c. a joint venture. d. a royalty.

d. a royalty.

10:Herzberg's research found that the factor that ranked highest as a motivator was: Select one: a. a compensation system that included bonuses and regular pay raises. b. the friendliness of supervisors. c. the presence of clear and consistent company rules and policies. d. a sense of achievement.

d. a sense of achievement.

5:A(n)_________ occurs when one company buys the property and obligations of another company. Select one: a. leverage buyout b. hostile takeover c. cooperative d. acquisition

d. acquisition

10:As a group, Millennials (Gen Y) tend to be: Select one: a. inefficient, easily bored, and uncommitted. b. older and more mature than Gen Xers. c. less interested in technology than Baby Boomers. d. adaptable, tolerant, and tech savvy.

d. adaptable, tolerant, and tech savvy.

16:_________ refers to any paid, non-personal communication through various media by organizations and individuals who are in some way identified in the message Select one: a. publicity b. public relations c. promotion d. advertising

d. advertising

10:Generation X employees are likely to: Select one: a. lack the drive and ambition of earlier generations. b. be less willing to move and change jobs. c. be poor at providing feedback to others. d. be more concerned with career security than with job security.

d. be more concerned with career security than with job security.

6:A review of small business successes and failures indicates that the: Select one: a. reason the service sector is rapidly growing is that these firms are easy to start and keep going, and offer high levels of security and growth potential. b. businesses that are easiest to start offer the greatest potential for long term growth and profits. c. restaurant industry offers the least risk for entrepreneurs. d. businesses with potential of high profit levels tend to be difficult to start and hard to keep going.

d. businesses with potential of high profit levels tend to be difficult to start and hard to keep going.

7:__________ planning prepares alternative courses of action that may be used if the primary plans are not achieving objectives. Select one: a. strategic b. tactical c. operations d. contigency

d. contigency

9:A production process characterized by long production runs to turn out finished goods over time is known as a(n): Select one: a. unrestricted process b. extended process c. assembly process d. continous process

d. continous process

7:__________ is the management function that involves determining whether an organization is progressing toward its goals, rewarding employees for doing a good job, and taking corrective action when they are not. Select one: a. leading b. organizing c. planning d. controlling

d. controlling

10:Maslow would classify the need for recognition from others and for self respect as_________ needs. Select one: a. physiological b. social c. security d. esteem

d. esteem

3:Currently boasting a $1.6 billion Ketchup brand, the H.J. Heinz Company is flying high with a 44%increase in its sales of Indonesian based ABC, a soy sauce company that it owns. ABC is a _____________ of Heinz. Select one: a. export partner b. Licensee c. Joint venture d. foreign subsidiary

d. foreign subsidiary

10:According to Herzberg, the difference between motivators and hygiene factors is: Select one: a. motivators cause persons to work smarter, while hygiene factors cause people to work harder. b. hygiene factors make employees more enthusiastic about the work itself, whereas motivators make employees enthusiastic about how many hours they have to work and their next day off. c. hygiene factors develop more loyalty from workers, while motivators make workers enthusiastic about moving on to a different company. d. overall, motivators related to greater job satisfaction, while hygiene factors made the work place a satisfying place to thrive.

d. overall, motivators related to greater job satisfaction, while hygiene factors made the work place a satisfying place to thrive.

6:A market consists of potential buyers of a good or service. However, for a market to exist: Select one: a. the business requires wholesalers and retailers. b. one firm must dominate in sales and product development. c. the product must be laboratory tested and approved by the Food and Drug Administration (FDA). d. people must have unsatisfied wants and needs as well as a willingness and ability to buy.

d. people must have unsatisfied wants and needs as well as a willingness and ability to buy.

7:___________ is the management function that involves setting objectives and making decisions. Select one: a. controlling b. organizing c. leading d. planning

d. planning

14:The ____________ is a theoretical model that describes the sales and profit performance of a product class over time Select one: a. market stages model b. commercialization time line c. marketing template d. product life cycle

d. product life cycle

14:The combination of product lines offered by a manufacturer is called the firm's: Select one: a. total product offer b. product matrix c. product categories d. product mix

d. product mix

16:Which of the following refers to the practice of paying to have a product appear favorably in a TV show or movie? Select one: a. brand association b. Interactive promotion c. market recognition d. product placement

d. product placement

13:The business philosophy of "produce as much as you can because there is a limitless market" is consistent with which of the following marketing eras? Select one: a. customer relationship era b. selling era c. marketing concept era d. production era

d. production era

3:A________ tariff is designed to raise the price of imported products so that domestic goods are more competitively priced. Select one: a. restrictive b. revenue c. progressive d. protective

d. protective

16:The activity that evaluates public attitudes, changes policies and procedures in response to the public's requests, and executes a program of action and information to earn public understanding and acceptance is called: Select one: a. ppublic research b. public advocacy c. public communication d. public relations

d. public relations

16:__________ refers to any information about a product or an organization that is communicated to the public through the media and is not paid for or controlled by the sponsor. Select one: a. public relations b. promotion c. market presentation d. publicity

d. publicity

15:Currently, in the United States the greatest volume of goods and services is shipped by: Select one: a. pipelines b. trucks and vans. c. water d. rail

d. rail page 419, first sentence. The category with the highest number of shippers is truck, but the highest volume shipped is rail.

13:The number of buyers in business-to-business markets is: Select one: a. roughly the same as the number of buyers in the consumer market. b. much larger than the number in the consumer market. c. controlled by government regulation. d. relatively small compared to the consumer market

d. relatively small compared to the consumer market

15:The primary difference between retailers and wholesalers is that: Select one: a. retailers operate in local areas, while wholesalers operate over a wide geographic area. b. retailers sell consumer goods, while wholesalers sell industrial goods. c. retailers have sales of less than $100 million, while wholesalers have sales of $100 million or more. d. retailers sell to final consumers, while wholesalers sell to other organizations, such as retailers or manufacturers.

d. retailers sell to final consumers, while wholesalers sell to other organizations, such as retailers or manufacturers.

5:The__________ is the most common form of business ownership. Select one: a. joint venture b. corporation c. partnership d. sole proprietorship

d. sole proprietorship

5:The board of directors for a corporation is elected by its: Select one: a. creditors b. managers c. employees d. stockholders

d. stockholders

16:Infomercials provide the opportunity for: Select one: a. the use of outdoor advertising. b. product placement to occur. c. the promotional mix to be avoided. d. the product to sell itself.

d. the product to sell itself.

14:A brand that has been given exclusive legal protection, such as the McDonald's golden arches is a: Select one: a. private brand b. promotional mark c. dealer brand d. trademark

d. trademark

15:__________ is the value or want-satisfying ability that is added to products by organizations that make the product more useful or accessible to consumers Select one: a. applicability b. functinality c. user friendliness d. utility

d. utility

10:Herzberg found that good pay: Select one: a. was the strongest motivator. b. had no effect on worker attitudes. c. was a significant motivator, but not as important as job security. d. was a hygiene factor rather than a motivator.

d. was a hygiene factor rather than a motivator.

18:Businesses acquire long-term financing from two major sources: Select one: a. debt financing and government funds. b. equity financing and trade credit. c. debt financing and equity financing. d. retained earnings and commercial paper.

debt financing and equity financing

11:Title VII of the Civil Rights Act of 1964: Select one: a. requires all firms with over 100 employees to have an affirmative action plan. b. prohibits firms from using employment testing as a means of selecting employees and determining which employees should be promoted. c. prohibits discrimination based on race, religion, sex, creed, or national origin in matters such as hiring, firing, training, and compensation. d. gives all citizens over the age of 18 the right to vote regardless of race, religion, sex, or creed.

prohibits discrimination based on race, religion, sex, creed, or national origin in matters such as hiring, firing, training, and compensation.

1: ___________ is a measure of the general well-being and satisfaction derived from a variety of factors including political freedom, safety, education, and a clean environment. Select one: a. gross national product b. gross national income c. Standard of living d. quality of life

quality of life

17: The _____ account on the Balance Sheet shows profits that the firm has reinvested in the company. Select one: a. retained earnings b. notes payable c. intangible assets d. stockholder's equity

retained earnings

1: total amount of money that businesses take in by selling goods and services is called ________. Select one: a. profit b. revenue c. loss d. retained earning

revenue

10:According to the principles of scientific management, the best way to improve productivity is to: Select one: a. use time-motion studies to find the best method of doing each job, then teach those methods to employees. b. establish open two-way communications among all of the organization's employees and managers. c. use job rotation and job enlargement to make work more interesting and challenging. d. give employees greater recognition for their efforts.

use time-motion studies to find the best method of doing each job, then teach those methods to employees.

18:__________ provide financing to new or emerging companies with high profit potential. In return, these organizations expect a share of ownership in the company Select one: a. Investment bankers b. venture capital firms c. Federal Reserve banks d. commercial banks

venture capital firms

3:A major advantage of licensing is: Select one: a. the bulk of the revenues gained by the licensee come back to the licensor. b. your company name does not need to be associated with the product in a foreign country. c. very little cost to the licensor. d. these arrangements almost always lead to a joint venture.

very little cost to the licensor.