Intro to Business Final
Understanding that Arab businessmen tend to stand face to face when holding a conversation reveals the importance of knowing another culture's use of
body language
CPA stands for
certified public accountant
The most common ethical issue identified by employees is ____.
conflict of interest
Which of the following organizational forms is most expensive to set up?
corporation
____ resources are also known as labor
human
A bond
is a current liability
The first step in the control process is to
measure actual performance
If a company's goal is to develop an image of having very high-quality luxury products, it should employ a
prestige pricing strategy
______ is the most flexible element of the marketing mix.
price
Accounting
records, measures, and interprets financial data
A primary reason for using standardization is to
reduce production costs
When Bill Wilson became a father he became increasingly interested in health and began to look for household items that were safe for use around young children. His new perspective is related to his
reference groups
The Federal Reserve System was established by Congress in 1913 to
regulate the banking industry
Which of the following is not part of organizational culture?
religion
The ______ sector accounts for the majority of jobs in the United States.
service
Consumer consumption patterns are changing in all of the following ways except
slowly
The decision-making process in a partnership tends to be faster when the partnership is
small
The majority of all new jobs created in the United States in recent years were generated by
small businesses
echo boomers
the generation of Americans born between 1977 and 1994
In a socialist system, citizens are dependent on _________ for many goods and services.
the government
The most important source of funds for any new business is
the owner
The financial value placed on an object involved in an exchange is
the price
It is especially difficult to measure quality characteristics when
the product is a service
Perhaps one of the most significant strengths of small businesses is
their ability to innovate and bring significant changes and benefits to customers
Mary called her work group together and presented a problem to them: They need to accomplish some extra work in less time than usual. Her employees suggest a plan for handling the situation, and she accepts it. According to McGregor's Theory, Mary could be described as
theory Y manager
Bryan thinks their plant resale company should be a corporation because
they would have limited liability and seem larger
Having analytical skills means that a manager is able to do all of the following except
think in abstract terms
The most widely used source of short-term financing is
trade credit
When an organization hauls canned goods from the manufacturer to grocery stores, it is involved with which marketing function?
transporting
A marketing channel is a group of marketing organizations that move products from producers to consumers.
true
A marketing information system is a framework for accessing information about customers.
true
A person's buying behavior may be affected by his or her social roles.
true
An estimated 90% of illegal software sharing is done by businesses.
true
E-business has had much more impact in certain industries where the cost of business and customer transactions has been very high.
true
Motivation explains why people behave as they do.
true
New product ideas can come from customers.
true
Participative management programs are becoming more popular as a means to boost productivity and efficiency.
true
Ethical violations destroy
trust
The 140-character posts on Twitter are called ____ and can be used by marketers to build customer relationships.
tweets
The lack of funds to operate a business normally is called
undercapitalization
Marketing research is
used to guide marketing decisions
Factors of production are
used to produce goods and services
To carry out its function of controlling the supply of money, the Federal Reserve Board
uses monetary policy
Persons or organizations that agree to provide some funds for a new business in exchange for ownership interest or stock are called
venture capitalists
Your textbook uses the term small business to refer to an owner-managed business that employs not more than
500 people
Which segment of the population is one of the wealthiest in the U.S.?
Baby boomers
Theories X and Y are most closely associated with
Douglas McGregor
The person primarily associated with Theory Z is
William Ouchi
An example of a product distributed through Channel B, producer to retailer to consumer, is
a chair from target
Economic expansion occurs when
an economy is growing and people are spending more money
A small business's ability to focus on narrow niches can help it develop
an enviable reputation for quality and service
To start any business you must first have
an idea
Frederick Taylor
analyzed jobs to improve efficiency
One advantage that small businesses have over large businesses is that they
are better able to focus on a few key customers
The legal documents that identify the basic agreements between partners are called
articles of partnership
A(n) ________ leadership style is best for stimulating unskilled or unmotivated employees.
autocratic
Which of the following reduces the cost of handling bank transactions and are found in banks, airports, and other public places?
automated teller machines
_________ and __________ are important measures to financial managers because they need to know how their stocks are performing compared to other stocks.
averages, indices
7-UP, Cherry 7-UP, and Diet 7-UP are products in Dr. Pepper Snapple Group's
7-UP product line
The person primarily associated with the Hawthorne Studies was
Elton Mayo
The balance of payments includes all the following except
NOT - a country's balance of trade
When implementing a decision, management should be ready to deal with:
NOT - employee confusion
Teams
NOT - have a strong, clearly focused leader
Which of the following is not a common pricing objective?
NOT - survival
In the future, most significant competitiveness gains will come from improvements in _____.
NOT - transaction speed
After accepting a position at IOWatch, Paul realized quickly that he did not have sufficient experience in _________________.
NOT - working for a corporation?
Following the interview, the next stage of the employee selection process usually involves
NOT reference checking testing
Some larger corporations have acted like small businesses from their inception with great success. Which airline is a famous example?
Southwest Airlines
Because a strike has partly shut down a company's operations, management closes down the rest of the plant so that none of the employees can go to work; this is
a lockout
Which of the following is not one of the dimensions of social responsibility?
altruistic
The money used to start a business and keep it running is also called
capital
A permanent, formal group that performs a specific task is a
committee
A mortgage is an example of
debt financing
When market conditions change rapidly, a small business usually has fewer layers of management to work through in making decisions. This advantage of small business is
flexibility
Small businesses usually only have one layer of management, making them more ______ and able to adapt to market demands.
flexible
A corporation doing business outside the state in which it is chartered is known as a(n)
foreign corporation
A product's profits peak and start to decline during which of the life cycle stages?
growth
When two companies combine to form a new company, it is called a(n)
merger
Which of the following is not an advantage of small-business ownership?
over-optimism
____ is the primary goal of business
profit
Common stockholders do not have the right to
receive dividends before preferred stockholders
Consumers spend very little time planning where to buy convenience products.
true
Echo boomers
were born between 1977 and 1994
The 52-week high and low are the highest and lowest prices, respectively, paid for a stock in the last
year
The face value of a bond, its initial sales price, is typically ____.
$1000
When are limited partnerships generally used?
When the project is risky and the chance of loss is great
Big City Financial is attempting to avoid a hostile takeover by a corporate raider by allowing stockholders to buy more shares of stock at prices lower than current market value. Which of the following methods is being used to avoid the takeover?
a poison pill
The goal of the marketing concept is
customer satisfaction
Small businesses commonly employ
functional departmentalization
A company that has departments for marketing, finance, personnel, and production is organized by
functions
Professionals who specialize in luring qualified people away from other companies are known as
headhunters
Joint ventures are popular in situations that call for
large investments
Downsizing helps firms to become
more flexible
What is the best way to not become a victim of online fraud?
never give out your personal information
The Theory X style of management focuses on
physiological and security needs
Subjective evaluation tools include
ranking systems
When companies operating at different, but related, levels of an industry merge, it is known as a(n)
vertical merger
Although some businesses are less risky than others, overall the financial risks of running a small business are
very high
The buying of all materials needed by the organization is called
NOT - capital expenditures
All of the following would be examples of objective assessments of an employee's performance appraisal except
a ranking system for an office worker
Which is an industry that may not experience large decreases in the cost of communication gained from the digital communications?
a roadside fruit seller
Marketing is not manipulating customers into buying things they do not really want, it is
a systematic approach to satisfying customers
Poor morale is likely to cause
absenteeism and high turnover
Many businesses, recognizing that employees lack many basic work skills, are becoming more concerned about the quality of ____ in the United States.
education
Venture capitalists are an example of
equity financing
Managers need adequate ____________ resources to pay for essential activities.
financial
___________ occurs when criminals obtain personal information that allows them to impersonate someone else in order to use the person's credit to obtain financial accounts and make purchases.
identity theft
Internal recruiting has advantages over external sources, one of which is:
improved employee moral
If Linda Wilson borrows $20,000 to buy a car and ends up paying the lender a total of $24,000, the $4,000 difference represents the
interest
The rationale for job specialization is that
it is more efficient
Allowing one employee to work in a position from 8:00 A.M. to 12:00 P.M. and another employee to work in the same position from 1:00 P.M. to 5:00 P.M. is called
job sharing
The debts Anna's Flowers owes to the Small Business Administration and her company's suppliers represent which of the following?
liabilities
Workers who join together in unions try to achieve all of the following objectives except
more hours
Which of the following is not a source of funds for a sole proprietorship?
not personal funds
_____________ includes any attempt to conduct fraudulent activities online, such as by deceiving consumers into releasing personal information.
online fraud
Money market accounts differ from interest-bearing checking accounts in that
owners can write only a limited number of checks
All of the following activities are associated with warehousing goods except
producing
The marketing mix is a combination of
product, price, promotion, distribution
Agricultural commodities are usually sold under which competitive environment?
pure competition
Information found on the company's income statement and balance sheet is extracted from these documents and examined more closely through the use of
ratio analysis
Industrial products such as lumber, cotton, and iron are classified as
raw materials
If a firm tries to produce goods just in time to meet sales demand, its level of inventory will tend to be
relatively low
Which of the following is a temporary group of employees, usually chosen for their expertise, responsible for bringing out a specific change?
task force
Not all countries trading in international markets package goods in the same units. Unlike the United States, most countries rely on
the metric system
Which market exists so that corporations can sell stocks directly to the public?
the primary market
The over-the-counter securities market
trades most corporate bonds and all U.S. government securities
Stimulating demand is especially important when a firm is using a pull strategy.
true
Finance companies
typically function as the lender of last resort for individuals and businesses with poor credit ratings or whose other lines of credit have been exhausted
When a firm is facing a hostile takeover attempt, it may issue a poison pill, which is
when the firm allows stockholders to buy up shares of stock at lower than market value.
Corporations contribute more than ______ to environmental and social causes each year.
12 billion
Which countries were merged into one market by NAFTA?
Canada, U.S., and Mexico
The major difference between banks and credit unions is that
Credit Unions are owned and controlled by depositors
Recently, _________ have spawned many small businesses.
Deregulation of energy markets and demand for renewable energy
An interview is
NOT - the best way to gather verifiable data about a candidate a chance to exchange information with the candidate
A department store's organizational structure defines the relationships between
all the individuals working together to achieve its objectives
Articles of partnership are required by many states for businesses that have two or more co-owners. The issues covered usually include all of the following except
classes of stock to be issued
A set of formalized rules and standards that describe what a company expects of its employees is called a(n)
code of ethics
All the following are factors of production used to make goods and services except
customers
Services are usually distributed through
direct marketing channels
Ratio analysis is used to determine all of the following except
how a firm compares to its stated goals
Profitability ratios are used to measure
how much income (net or operating) a firm generates relative to its assets, equity, and sales.
Most new product ideas are rejected during which stage because they seem inappropriate for the organization?
idea screening
Transformation processes occur
in all organizations
Double-entry bookkeeping is a system of recording and classifying business transactions
in separate accounts in order to maintain the accounting equation
Primary characteristics of diversity typically involve all of the following categories except
income
Selling interest in a partnership may be difficult because
it is difficult to place a value on a share of partnership
A sole proprietorship is a popular form of business because
it is easy to form
The organizational form that many consider to be a blend of the best characteristics of corporations, partnerships, and sole proprietorships is the
limited liability company (LLC)
Many companies believe podcasts will do all of the following except
most popular?
Credit cards are
preapproved lines of credit granted by a bank or finance company
Which of the following is the most flexible variable in the marketing mix?
price
An income statement shows
revenues, expenses, and net income over a period of time
If a business is to be successful in the long run, it must produce quality products, operate efficiently, and be
socially responsible
Barber shops, dog kennels, and independent grocery stores are typically
sole proprietorships
A temporary group of employees responsible for bringing about a particular change is a
task force
________ has helped small businesses compete with larger businesses.
technology
When a company offers to buy some or all of another company's stock at a premium price, it is a(n)
tender offer
Good money managers strive to keep just enough cash on hand to pay bills. This cash is called ______.
transaction balances
Joe Johnson was recently moved to a new position in his company that involved learning new skills and work assignments even though Joe received no pay increase. This would best be called a
transfer
Customer satisfaction is a goal of the marketing concept.
true
Early management theorists thought money was employees' primary motivation.
true
Managers must take care to warn employees when their performance is unacceptable.
true
All of the following are advantages of a sole proprietorship except
unlimited liability
Of minority groups in the United States, ________ own the most small businesses.
Hispanics
Why does shopping online raise more privacy concerns than shopping in a store?
NOT - it is more anonymous
Companies often determine the compensation for a specific job by
NOT - job evaluation; conducting a wage/salary survey
The law that allows selected American firms desiring international trade to form monopolies to compete with foreign cartels is the
Webb-Pomerene Export Trade Act
Which of the following is not a common cause of small business failure?
entrepreneurial vision
Which of the following is the first step in the accounting cycle?
examine source documents
Long-term assets are also called what?
fixed
A license to sell another's products or to use another's name in business is called a
franchise
The accounting cycle includes all but which of the following?
generate annual reports
Worries about new equipment, expanding inventory, rent increases, competition, changing market conditions, and the like may contribute to
high stress level
Items such as a bond's value, date, and rate are specified in the
indenture
Human relations is the study of
individual and group behavior in organizations.
A check
is a written order to a bank to pay the indicated party the amount specified on the check from money on deposit
Human resources departments strive to
minimize losses due to separations and transfers
According to the Internal Revenue Service
partners report their share of profits as personal income
Inventory handling, transportation, and warehousing are all examples of activities of
physical distribution
An employee stock ownership plan is
profit sharing
The marketing concept states that an organization
should try to satisfy customer needs while also achieving its own goals.
Which characteristic of a sole proprietorship can be considered both an advantage and a disadvantage?
taxation
What is the fastest growing demographic group on Facebook?
women over 55
Who ranked people's five basic needs in order of importance?
Abraham Maslow
____ is often called the father of capitalism.
Adam Smith
Which of the following requires organizations to gather information about customer needs, share that information throughout the entire firm, and use that information to help build long-term relationships with customers?
Market Orientation
Approximately ____ percent of Fortune 500 companies engage in recycling efforts.
NOT - 83?
_______________ involves the use of digital networks to provide linkages between information providers and users.
NOT - accessibility
All of a firm's unpaid financial obligations are occasionally consolidated into an account called
NOT - accounts payable
To implement the marketing concept, a company must do all of the following except.
NOT - adopt a consumer orientation
What has changed a great deal in recent years, creating difficulties for the banking industry and is forcing it to change?
NOT - advances in technology
When discussing corporations, What is a white knight?
NOT - an attempt to fend off a hostile takeover by selling stock at below market value
Which is not an area of the banking industry listed in your text as experiencing rapid changes?
NOT - bill presentation the basic structure of credit union
Which of the following reduces the cost of handling bank transactions and are found in banks, airports, and other public places?
NOT - checking machines
_____ is the activities that individuals, groups, and organizations undertake to protect their rights as consumers
NOT - conspicuous consumption
Which of the following have not been cited as incidents of unethical business activity recently?
NOT - deceptive advertising of medicines and toys
Which of the following is not a difference between digital media and traditional media?
NOT - digital media make customer communications richer
The only long-term funds that a company can generate internally are
NOT - dividend yields
The following are types of bonds except
NOT - floating-rate Commercial
Customizing products, promotion, and distribution according to cultural, technological, and national differences indicates a
NOT - globalization strategy
What is a major weakness of the firm?
NOT - having a poor quality product
If an employee is involved with transforming resources into goods and services, then he is in
NOT - human resources
High-quality items such as musical instruments, sailboats, and airplanes would probably use what distribution coverage?
NOT - intensive; exclusive
What did Quest Star do, structurally, to help it become more competitive with Japanese firms?
NOT - it increased the number of management layers
Which of the following is a downside to digital media?
NOT - it is expensive NOT - most managers don't know how to use digital media
What does Ventura Motors make?
NOT - lawnmowers NOT - compact cars
Items such as a bond's value, date, and rate are specified in the
NOT - ledger
After demand began to accelerate beyond supply, Mrs. Acres Homemade Pies was faced with a series of options. Which of the following is NOT one of those options?
NOT - maintain current production levels and raise price
The primary business of savings and loan associations has been
NOT - making loans to large corporations
The amount of money budgeted for the purchase of long-term assets is called the
NOT - master budget
If the negotiations between union and management representatives come to a standstill and a third party is brought in to make suggestions or propose solutions to help resolve the impasse, then the third party would likely be a(n)
NOT - mediator arbitrator?
___________ exists when there are many small businesses selling one standardized product.
NOT - oligopoly
When Gillette asks supermarkets to give its new razors shelf space, it is using a
NOT - positioning strategy
The Federal Reserve provides all of the following services except
NOT - regulates financial institutions
To ensure quality and efficiency, operations managers take ________ at various points in the transformation process and compare them to established standards.
NOT - samples; feedback
What is the problem with McKing's plan to start selling 16" pizzas at its drive throughs?
NOT - there is no market for 16" fast food pizzas
What did the Hawthorne studies reveal?
That managers who understand the needs, beliefs, and expectations of people will have the greatest success motivating workers
What is the last step that must be done before a firm's books can be closed for an accounting cycle?
a CPA must attest that good principles were used in the preparation of the document
If a government agency paid its workers additional compensation at the end of the year as a thank-you for good work, this would most likely be called
a bonus
The fact that the American company 3M owns a film-manufacturing facility in Italy is an example of
a direct investment
Securities markets provide all of the following except
a federally insured place to deposit savings
Allowing some employees to work at home part-time is
a flexible scheduling strategy
A compressed workweek is
a four-day or shorter period in which employees work 40 hours.
What is the product Dr. Hill has developed?
a highly scratch-resistant and light-weight lens
When Snapple uses viral ads on the Internet to introduce its new beverage to consumers before introducing it to supermarkets, it uses
a pull strategy
Anand believes that he can get some extra work completed before the deadline by withholding his workers' vacation schedules until the job is completed. Anand could be described as
a theory X manager, according to McGregor
If a boat manufacturer orders 50 units of fiberglass material and secures trade credit, promising to pay the supplier at a later date, the manufacturer will record the amount to be paid as a(n)
account payable
All of the following would be considered owners' equity accounts except
accounts payable
Which of the following is a current asset?
accounts receivable
The ability of a business to identify customers before they make a purchase is ________.
addressablility
Many people incorrectly equate promotion with
advertising
After the product orientation came the sales orientation of the mid-20 th century. Supply exceeded demand and businesspeople and ________ and _________ became the most important marketing activities.
advertising; selling
The transformation process occurs in
all organizations, regardless of product
As a result of changing laws and regulations, commercial banks are moving beyond their traditional sources of income to develop new services such as
all the above
Which of the following actions did the Federal Reserve not take during the most recent financial crisis to stave off economic collapse?
allowed most troubled banks to fail
One of the major reasons people want to own and operate their own business is to
be their own boss
Every time Elias broke the department production record, Judah hung a gold banner from Elias' machine and bought him lunch. This illustrates
behavior modification techniques
_____ are web-based journals in which writers can editorialize and interact with other Internet users.
blogs
The group of individuals elected by the stockholders to oversee the general operation of a corporation are known as the
board of directors
A light bulb used to provide light for workers on an assembly line would be classified as what type of product?
business
Many financial institutions decide whether to loan a small business money based on its
business plan
If a manager pressures a subordinate to engage in activities that he or she may otherwise view as unethical, such as accounting fraud or stealing a competitor's secrets, there exists an ethical issue related to
business relationships
Unless fixed assets are continually reevaluated for appropriateness,
businesses lose their competitive edge
What is one of the things that the Troubled Asset Relief Program (TARP) allowed the government to do to help financial institutions?
buy up hundreds of millions of dollars of preferred share of banking securities
Marketers needs to expend much effort understanding which of the following functions of marketing to determine what products to market?
buying
Consumers vote against firms they view as socially irresponsible by not
buying the company's products
All of the following are associated with the manufacturing economy except
cable television
The process of deciding what fixed assets, projects, and investments will earn profits for the firm beyond the costs necessary to fund them is called _____.
capital budgeting
All of the following are ways to invest idle cash for the short term except
certificates of deposit
If Evelyn Chang is a self-employed, state-certified accountant who provides various types of accounting services for different companies and organizations, she is probably a
certified public accountant
Marketing requires creativity and a consumer focus because the marketing environment can
change quickly and dramatically
An advantage of line structure in organizations is
clear chain of command
According to the text, all of the following are skills needed by managers except
clerical
Dan bought three new trucks with a loan obtained from the First National Bank. If he fails to repay the loan, the bank will repossess the trucks. The trucks are
collateral
The oldest and largest of all financial institutions are
commercial banks
During which stage does the firm gear up for full-scale production, distribution, and promotions?
commercialization
The last in line for the payment of profits are the
common stockholders
Crisis management plans generally cover maintaining business operations during a crisis and
communicating with others about the situtation
Making claims about dietary supplements or the health benefits of certain unproven ingredients is an issue related to:
communications
One of the best ways to analyze a company's financial performance is to compare its ratios with those of
companies in the same industry
All of the following would be external sources for recruiting except
company websites
Because Colombia can produce coffee so much more efficiently than other items produced there, it has which of the following advantages?
comparative
An organization that creates many products with similar characteristics, such as automobiles, television sets, or vacuum cleaners, would most likely be which of the following types of organizations?
continuous manufacturing
When Madison flies to Italy from the United States on a British airline, stays in Italian hotels, and buys clothing in Milan to bring home after her trip, she
contributes to the negative balance of payments
__________ refers to consumers' ability to regulate the information they receive via the Internet, and the rate and sequence of their exposure to that information.
control
______ permit Web site operators to track how often a user visits the site, what he or she looks at while there, and in what sequence, but they also allow Web users to customize services and content.
cookies
The Federal Reserve System is responsible for
creating a stable environment for economic growth
Operations management has the primary responsibility for
creating products that satisfy customers
Marketing is the facilitation of exchanges through
creating, pricing, promoting, and distributing goods
According to your book, what is the main source of Internet identity theft?
credit card fraud
The translation of product names can be crucial in the success of a foreign marketing effort because of
cultual barriers
Cash, investments, accounts receivable, and inventory are also known as
current assets
What part of its business does Glasspray have a difficult time managing?
current assets and liabilities
Digital media can reduce the cost of _______ and _________ transactions
customer, business
Digital media can reduce the cost of _______ and _________ transactions.
customer; business
Long-term liabilities are
debts that will be repaid over a number of years
If a company is eliminating certain models of a product and cutting back on expenditures, the product is most likely in which life cycle stage?
decline
When the Fed increases the reserve requirement, it
decreases the money supply
When the Federal Reserve sells investments, it
decreases the money supply
If Juan's manager gives him an assignment without providing Juan with the resources to complete the assignment, Juan's manager is exhibiting improper
delegation of authority
Another name for a checking account is a
demand deposit
If a company develops an advertising campaign that targets a segment of consumers with a certain income and education, the company is using the following segmentation variable:
demographic
When an accountant allocates the cost of a piece of equipment over a period of time, this is called
depreciation
All of the following have helped to create new opportunities abroad for small businesses except
deregulation
Which of the following is a disadvantage of a partnership?
difficulty of selling ownership
___________ are electronic media that function using digital codes and includes media available via computers and other digital devices, including mobile and wireless ones like cell phones and smart phones.
digital media
Which of the following is not a difference between digital media and traditional media?
digital media make communications more confusing
What is not an essential difference between digital and traditional media?
digital media require a completely different marketing mix
The major variable of the marketing mix that uses marketing middlemen is
distribution
Corporations distribute profits to their owners in the form of
dividends
Conducting _____ means carrying out the goals of business through the use of the Internet.
e-business
If a manager is concerned about doing the work with the least cost and waste, then her primary managerial concern is
efficiency
Which is not a means of formally expressing an organization's culture?
employee dress code
The _______ is the price at which the number of products that businesses are willing to supply equals the number of products consumers are willing to purchase at a point in time.
equilibrium price
In the context of starting a new business, a retailer differs from a manufacturer in that the retailer is less likely to make a heavy investment in
equipment and distribution systems
Jane learned that, although she and June were both hired as part-time salesclerks at the same time and have similar backgrounds, June is paid $1 more per hour. Jane decided to stop cleaning dressing rooms on her shift because she thinks this is unfair. This is an example of which theory?
equity theory
The principles and standards that determine acceptable conduct in business are referred to as:
ethics
When a customer hands the cashier $1 and receives a loaf of bread, which of the following has occurred?
exchange
Companies of all sizes grow and improve profitability by
expanding their operations
Jim has learned that his company is offering a Hawaiian vacation to its best salesman. He almost won last year and really wants the trip. He is working very hard because he thinks he has a good chance to win. This exemplifies which theory?
expectancy theory
The net income of a company is equal to the total profits minus
expenses
Private accountants do all of the following except
express an unofficial unbiased opinion regarding the accuracy of a client's financial statements
A finance company that buys other companies' accounts receivable is known as a(n) _____.
factor
A job description is a written description of the qualifications necessary for a specific job.
false
A target market is a group of people who have a need, purchasing power, and the desire and authority to spend money on goods, services, and ideas.
false
Although customer-generated videos are increasingly available, most companies still prefer to hire professional advertising firms.
false
As long as both a buyer and seller have something of value to exchange, an exchange will take place.
false
Behavior that is punished will tend to be repeated.
false
Benefits are an addition to regular compensation for exceptional performance.
false
Consumer consumption patterns have not changed very much over time.
false
Employees who are dissatisfied with their working conditions or compensation have to negotiate with a labor union to bring about change.
false
Expectancy theory suggests that managers do not need to show employees that they can obtain things they want.
false
Givebacks are concessions made by management to keep workers working.
false
Intrinsic rewards are benefits and recognition you receive from someone else.
false
It is not necessary to verify an applicant's references because most applicants tell the truth on applications or resumes.
false
Job analysis is a systematic procedure to determine the relative worth of various jobs.
false
Marketing is just selling and advertising.
false
Of the thousands of products introduced every year, most succeed.
false
People spend more time on email than they do on social networking sites
false
Price skimming is charging a low price to help a product enter the market and gain market share rapidly.
false
Pricing objectives are influenced solely by marketing mix decisions.
false
Social networking sites and blogs are not effective tools at building customer relationships.
false
Spending money to hire a sales force or to conduct marketing research does not involve risks.
false
The Internet is not a valid advertising medium.
false
The Internet often impedes business transactions, making them slower and less efficient.
false
The forces in the marketing environment are totally uncontrollable
false
Transporting includes warehousing goods.
false
Recruiters can find internal sources of applicants outside the firm.
false(external)
Which of the following is not a disadvantage of forming a partnership?
fewer regulatory controls than in a corporation
Because the U.S. government promises that its metallic coins and paper money are legally acceptable as a means of exchange for products, they are considered which type of money?
fiat
When a computer manufacturer provides stores with credit to encourage them to carry their computers in stores, the manufacturer is involved in the marketing function of
financing
Marketers who learn where online users are likely to express their thoughts and opinions can use these forums to do all of the following except
find out consumers addresses
Positions such as foremen, supervisors, and office managers are examples of
first-line management
A work system that allows employees to choose their starting and ending times as long as they are at work during a specified core period is called
flextime
If the interest rate on a loan changes according to the daily average of the prime rate over the life of the loan, the interest rate is said to be
floating
Since Eva Chang has the capital and decided to purchase the rights to own and operate a McDonald's fast-food restaurant rather than start her own operation, she is probably a(n)
franchisee
Which of the following is not typically part of downward communication?
gossip
When a worker in the deli department of a grocery store designates a steak with little or no fat as an "AA" and another steak with more fat as a "B," the worker is participating in the marketing function of
grading
When a company invests a lot of money in a particular project, it is concerned about the amount of risk involved. In general, the longer the expected life of a project or asset, the potential risk is
greater
Which of the following is an advantage of a small business?
greater flexibility to change
In general, the longer the term of a certificate of deposit, the
higher the interest rate
When firms that make and sell similar products to the same customers merge, it is known as a
horizontal merger
When providing benefits, a manager is most closely involved with which of the following resources?
human
The financial document that shows a company's revenue, expenses, and profits over a period of time is called a(n)
income statement
Viewed from the perspective of operations, the money used to purchase a carpenter's tools and the electricity used to run his power saw are
inputs
Operations management includes responsibility for
inputs and outputs
Money has all the following characteristics except
intangibility
An orientation would likely include all of the following except
interview of finalists
Individuals who take responsibility for the development of innovations of any kind within larger organizations are called
intrapreneurs
Which of the following is the most risky?
introducing a new product in a foreign market
A mutual fund allows many small investors to
invest in a diversified stock market portfolio
A private corporation is one that
is owned by only a few people and not traded on the open market
A method of long-term financing that requires repaying funds with interest is
issuing bonds
Human relations is important in business primarily because
it affects worker morale and productivity
Which of the following is not part of the definition of a small business?
it employs more than 500 people
Because many countries do not permit foreign companies to purchase and operate facilities in their countries, a company wishing to do business in such a country may share the business costs with the host country by forming a
joint venture
When a group of investors borrows money to buy a company or division, using the company's assets to guarantee the loan, it is called a(n)
leveraged buyout
An important advantage of a corporation is its
limited liability
The following is an advantage of a sole proprietorship
limited liability
Anand has been asked to join a new partnership that is developing wind energy technologies. Because the business is high risk, he does not want to be liable for the firm's debts if the project should fail. He could still participate as a
limited partner
Plants, offices, and equipment are considered
long term assets
Which of the following is an advantage of small-business ownership?
lower cost of formation
All of the following are advantages of a corporation except
lower frequency of taxation
_____ make decisions about the use of an organization's resources and are concerned with planning, organizing, leading, and controlling the organization's activities.
managers
Good financial managers minimize the amount of cash available to pay bills in
marketable securities
Acme Inc. is surveying customers as to what kinds of services they would like the company to add. It is involved in the marketing function of
marketing research
Which of the following organizational forms is most likely to be complex and expensive?
matrix structure
The specific operations of the organization, plant, division, or department would most typically involve
middle management
_____ are responsible for tactical planning that will implement the general guidelines established by top management.
middle managers
Building a computer so that components can be installed in different configurations to meet customers' needs is a result of
modular design
Many companies have improved compensation and benefits packages as a means of increasing employee _______.
morale
It is easier to raise funds in a partnership than in a sole proprietorship because
more people means greater earning power and credit.
Flextime is associated with a number of unexpected consequences. One of the major ones is
more physical activity and better sleeping habits
An inner drive that directs behavior toward objectives is called
motivation
If a person invests in the stock market through a vehicle that pools funds from a large number of people and buys and professionally manages stock from a number of diversified companies, that person is investing in a(n)
mutual fund
When superiors and subordinates are not in close proximity and the manager has many responsibilities in addition to supervision, the appropriate span of management would be
narrow
Although the terms accounting and bookkeeping are often used interchangeably, a point of distinction is that the scope of bookkeeping tends to be
narrower
Allie wants to be warm, but she is not; she has a ______ and may be motivated to satisfy it.
need
Diagonal communication
occurs when individuals from different units and departments within an organization communicate
Dividing work into small units and assigning it to individuals are tasks related to
organizing
When seeking out information on a new product, consumers tend to trust _________ over _________.
other consumers, corporations
From an operations perspective, food sold at a restaurant and services provided by a plumbing company are
outputs
Which of the following equations is equivalent to the accounting equation?
owner's equity = assets - liabilities
The owners' contributions to a company and all earnings retained to finance continued growth and product development are
owners' equity
According to the Internal Revenue Service,
partners report their share of profits as personal income
Which form of business organization is the least used in the U.S.?
partnership
An understanding of which of the following realities is not required for businesspeople to plan in a global economy?
personal
Which of the promotion mix variables is best for promoting expensive products with specialized uses, such as houses?
personal selling
In some companies, the department that handles the human resources management function is called by this name:
personnel management
If a manager is organizing equipment within a factory setting, he is mainly involved in which of the following resources?
physical
In the United States, workers'________ needs, as defined by Maslow, have largely been met by minimum-wage laws and federal occupational safety standards.
physiological and security
Maslow's hierarchy classifies needs that motivate people in which order, starting with the most basic?
physiological, security, social, esteem, and self-actualization
Distribution is sometimes referred to as
place
Which of the following can be changed quickly to stimulate demand or respond to competitors' actions?
place
If an employee learned of a significant cost-saving idea from a coworker and then informed management of the idea without revealing its true source, then the employee would be involved in
plagiarism
__ involves taking someone else's work and presenting it as your own.
plagiarism
Determining an organization's objectives and deciding how to accomplish them are part of the management function known as
planning
Forecasting is most closely associated with
planning
Top managers spend most of their time performing which of the following management functions?
planning
__________ are audio or video files that can be downloaded from the Internet via a subscription that automatically delivers new content to listening devices or personal computers.
podcasts
Which of the following environmental forces influence marketing strategy by dictating what elements cannot be included in advertising?
political, legal, and regulatory forces
When analyzing options in the decision-making process, managers must consider the appropriateness and _______ of each option.
practicality
The right of common stockholders to have the opportunity to purchase new shares of stock is called a
preemptive right
When a stock quote includes the stock symbol followed by the letters "pf," it indicates
preferred stock
The pricing policy that allows a company to cover the product's development cost most quickly is
price skimming
Age, gender, and race are _____ characteristics of diversity.
primary
If a real estate developer borrows $100,000 from a bank and ends up paying back $120,000, the $100,000 represents the
principal
Vikram Patel is an accountant who is employed by a large department store chain in the tax department. He is probably a(n)
private accountant
A company performing large, complex tasks such as construction or exploration is called a(n)
project organization
The form of communication that attempts to facilitate a marketing exchange by influencing people, groups, or organizations is
promotion
All of the following are objectives of performance appraisal except to
provide a basis for reward distribution
A written authorization assigning a stockholder's voting privilege to another is a
proxy
If a company markets to a segment of people who have a certain lifestyle, the type of segmentation being used is
psychographic
__________ encourages consumers to make purchases based on emotion, rather than rational considerations about the price.
psychological pricing
The type of ownership that has the ability to raise capital most easily is a
public corporation
When an airline company reacts to a plane crash with press conferences, news releases, and having company employees work with the families of survivors and victims of the crash, the company is focusing on which of the following elements?
publicity
The processes an organization uses to maintain its established quality standards are called
quality control
When selecting the best option among a series of possible decisions,
quantitative analysis is almost always helpful
The ratio that reflects a company's liquidity after the inventory has been deleted is which type of ratio?
quick
What has challenged the banking industry and has forced it to undergo changes?
rapid technological changes
When a company wants to place a value on a physical asset for its balance sheet, it must
reduce the value by the amount the asset has depreciated
All of the following are organizational benefits of fostering and valuing workforce diversity except
reduced worker efficiency
According to Herzberg's two-factor theory, all of the following represent hygiene factors except
responsibility
Social ______ relates to a business's impact on society
responsibility
Social ______ relates to a business's impact on society.
responsibility
Which of the following is not a reason why small businesses choose to become retailers?
retailing requires a large capital investment
Profit is the reward for business in exchange for the ____ taken in providing products.
risks
Which of the following forms of business organization restricts the number and type of shareholder?
s-corporation
An accounting term that is synonymous with revenue is
sales
Human relations is concerned with all of the following except
sales
It is desirable to test only a sample of the product in all of the following circumstances except when
sampling is the cheapest option and does not destroy the product
The financial institution that traditionally concentrated on long-term loans, such as mortgages, and is sometimes called a thrift, is a(n)
savings and loan Association
A marketing channel includes all of the following except
secondary stakeholders
According to Maslow, an employee who goes to night school to get a college degree to minimize the chance of being laid off during a recession is motivated to fulfill which of the following needs?
security
The first major step of a marketing strategy is to
select a target market
According to Maslow, living life to the fullest is most closely associated with fulfilling this need:
self-actualzation
Many service businesses are considered retailers because they
sell their services to consumers
Which of the following is a sequence of small bond issues of progressively longer maturity?
serial bonds
Trends have gradually changed the U.S. to a(n) _____ economy focused on making life easier for busy consumers.
service
Which of the following industries is not listed in your text as one that has been significantly impacted by the Internet?
small-scale organic farming
The public's opinions and attitudes toward living standards, ethics, and the environment are considered
social forces
One of the most popular and easiest to establish forms of business in the United States is the
sole proprietorship
Ruji has realized that she does not like working for others. She wants to open a business in which she will have maximum control and the least interference from government regulation. Which business form might be best for her to use?
sole proprietorship
Which of the following forms of business ownership is directly limited by the life of its owner?
sole proprietorship
Which of the following requires owners to perform many functions and possess diverse skills to make decisions?
sole proprietorship
Adam Smith illustrated improvements in efficiency through the application of
specialization
When inflation is very high, money is no longer a ______ means of exchange.
stable
The financial statement that explains how a firm's cash changed from the beginning of the accounting period to the end is called the
statement of cash flows
The financial statement that explains how a firm's cash changed from the beginning of the accounting period to the end is called the
statement of cashflows
When two computer companies joined together in hopes of obtaining a competitive advantage on a worldwide basis, this exemplifies a
strategic alliance
When managers assign work activities to groups and individuals and coordinate the diverse activities required to attain organizational objectives, they contribute to the development of organizational
structure
Pharmaceutical companies sometimes use which of the following pricing strategies to price their over-the-counter drugs?
symbolic/prestige pricing
After analyzing its own resources and unique abilities, a company is now trying to determine what group of customers it can satisfy with a good or service. It is in the process of choosing a
target market
The income earned by sole proprietorships is
taxed as personal income
To train employees, answer questions, and provide guidance in doing a task, managers need
technical expertise
Which of the following is not a social force in the marketing environment?
technological advances
Advances in _____ have opened many new markets for small businesses, allowing them to more effectively expand their businesses and marketing efforts into new markets.
technology
The primary problem with a trade deficit is
that more cash is leaving the country than is entering
Organizational structure is defined as
the arrangement or relationship of positions within an organization
The transformation process is
the conversion of human, financial, and physical resources into goods, services, and ideas.
What is not a decision that Jack and Bruce have to make before starting their business?
the general idea for their business
Joe is a copywriter in his company's marketing department. The copy for an ad placed in Time magazine for his company spelled the company's name wrong. Who is ultimately responsible for the mistake?
the marketing vice president
About three-quarters of all businesses in the United States are sole proprietorships, and they earn somewhere around 10 percent of total business income. We may conclude that
there are many sole proprietorships, but their average income is small
What are intrapreneurs?
they champion innovation from within organizations
If consumers do not pay off their entire credit card balance, they will
they have to pay interest on the unpaid amount
Equity theory relates a person's willingness to contribute to the organization to the perceived fairness of the rewards received.
true
Everyone in the organization who interacts with customers must know what customers want.
true
Human relations is the study of individual and group behavior in organizational settings.
true
Managers who ascribe to Theory Y assumptions about their workers assume that people like and want to work and that people will seek out responsibilities if provided with the proper conditions.
true
Phishing is a growing scam whereby con artists counterfeit a well-known Web site and send out e-mails directing victims to it.
true
Psychographic characteristics of segmentation include personality characteristics, motives, and lifestyles.
true
Technology and the Internet have dramatically changed the business environment.
true
The Hawthorne Studies marked the beginning of a concern for human relations in the workplace.
true
The best products in the world will not be successful unless companies make them available where and when consumers want to buy them
true
When laid off, a person's attention probably shifts from fulfilling esteem needs to fulfilling physiological and security needs.
true
What is one thing Jack and Bruce know that a good startup company does not need?
undercapitalization
When discussing financial institutions, what is a shrinking capital base?
when the amount of debt in relation to equity increases
