MANA 1301 Exam 2

Get Fit Gym wants to make the best use of its resources. As a result, the company hires college students to work at the front desk, so personal trainers can focus on helping members in the gym and teaching fitness classes. What type of objective is the most relevant to this example?

efficiency

Many service providers are considered retailers because they

provide their services directly to consumers

Walt owns a business in which he offers standardized test prep classes and individual tutoring for students. This is an example of a

service business

If a manager is concerned about doing the work with the least cost and waste, then the primary managerial concern is...

efficiency

A person who is involved in the process of creating and managing a business to achieve his or her desired objectives is engaged in

entrepreneurship

When a manager makes sure there is adequate funding to pay for essential activities, he or she is managing _________ resources

financial

A business that is engaging in importing and exporting must be familiar with the ratio at which one nation's currency can be exchanged for another. In other words, the business must be familiar with the balance of trade.

False

A common reason for establishing quotas or tariffs is to encourage dumping.

False

As an international opportunity, direct investment provides the least amount of control but is also the least expensive way to participate in foreign trade.

False

Companies doing business internationally have traditionally used a globalization strategy.

False

Export agents either purchase products outright or take them on consignment but are not responsible for storage and transportation of the product.

False

Fit Rite Fasteners, a firm based in the United States, buys metal parts from China to manufacture its fasteners. In doing so, the company os engaged in exporting.

False

Manufacturing businesses are attractive to entrepreneurs because of the low start-up costs required to establish a manufacturing business.

False

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

False

Small businesses, by their very nature, are small and therefore do not contribute significantly to job creation.

False

Sociocultural differences, such as variations in body language and personal space, rarely have an impact on international business.

False

The Asia- Pacific Economic Cooperation (APEC) is a trade agreement between Asian countries and does not include the United States.

False

Trade deficits can help businesses succeed, create more jobs, and improve the standard of living.

False

When a nation imports more than it exports, it has a positive balance of trade.

False

Why has outsourcing become a controversial practice in the United States?

Outsourcing takes away jobs that be accomplished by workers in the United States.

Baubles and Bangles, an independent jewelry store acquires jewelry and accessories from producers and wholesalers and sells them to consumers. Baubles and Bangles is a

retailer

Menami and Michael recently had their first child. As two working parents, they struggles to find good, economical childcare. As a result, they developed their own software to link parents with licensed, reasonably prices childcare providers. This is an example of the

sharing economy

A global strategy involves standardizing products for the whole world.

True

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

True

International business involves the buying, selling, and trading of goods and services across national boundaries.

True

Licensing is a good option for small manufacturers waiting to launch a well-known brand internationally.

True

Many U.S. companies have taken advantage of Mexicos's low labor costs and proximity to the Unites States to set up maquiladoras.

True

Nations trade with other nations to obtain resources that would otherwise be unavailable to them.

True

Political unrest in countries often creates a hostile environment for foreign businesses and can act as a barrier to international trade.

True

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

True

The International Monetary Fund promotes trade among member nations by eliminating trade barriers and fostering financial cooperation.

True

Trevor lives in Florida during the winter months. While in Florida, he rents out his main home in Colorado to people traveling there for skiing season. Trevor is participating in the sharing economy.

True

Joey's jewelry business has grown from a small startup in his basement to a chain of outlets all over the state. His business has the potential to expand further, provided he has the resources. To attract investors and other resources, he creates a mission statement for his company. He highlights that his gems come from countries with fair labor practices. Which basic question of a well-developed mission statement is he addressing?

What are our responsibilities with respect to being a good steward of environmental, financial, and human resources?

What type of business has been growing faster than other classifiable firms and represents almost 30 percent of all small businesses?

minority-owned businesses

A declaration of an organization's fundamental purpose and basic philosophy is known as a(n)

mission statement

Suppose there are several countries that are efficient at producing coffee beans and Brazil is one those countries. While Brazil is efficient at producing coffee beans, it is inefficient at producing electronics. Because of this, Brazil sells its coffee beans to other countries and buys electronics from other countries. This scenario exemplifies the concept of -supply and demand -absolute advantage -a monopoly -exchange controls - comparative advantage

comparative advantage

A company objective related to ____ is generally stated in terms of percentage of sales increase and market share, with the goal of increasing those figures.

competitive advantage

To earn a profit, managers must acquire, coordinate, and control all of the following resources EXCEPT

competitive products

Maria manages an online shoe store. She must determine what her company's warehouses and distributing facilities need and which type of automation can maximize order efficiency. What major phase of the planning process does this example describe?

data gathering

Before an organization can plan a course of action, it must first

determine what it wants to achieve

While Justin attends college, he is working part-time for a cutlery company. He goes door-to-door and offers consumers face-to-face presentations in their homes. This is an example of

direct selling

Grace manages a beach rental kiosk. Her goal is to run this business in such a way that she achieves the desired result, making a profit and providing her customers with the items they need to enjoy their vacation. Thus, her primary managerial concern is

effectiveness

Marissa is a fitness expert who starts her own personal training company. She conducts fitness classes for women and provides personal training sessions for clients. Marissa can be regarded as a(n)

entrepreneur

Jake starts his own catering business. He creates a website for the business, which states that his purpose is to provide his customers with delicious food at a fair price. For Jake's company, this is its

mission statement

Melvin's fishing store has profit as an objective. As a result, he wants to have

money and assets left over after paying off business expenses

__________ is the transferring of manufacturing or other tasks--such as data processing-- to countries where labor and supplies are less expensive. -importing -exporting -outsourcing -dumping -insourcing

outsourcing

Determining an organization's objectives and deciding how to accomplish them is the management function known as

planning

Ross is one of the senior managers of a large company. He is part of a team that determines the objectives of the company based on future trends in the industry and decides how to accomplish them. Ross is involves in the management function of

planning

Which management function is crucial because it lays the foundation for all other management functions?

planning

Bradley is a manager at a company that has made the difficult decision to downsize. After his company eliminated 50 employees, what must Bradley do to effectively manage his remaining employees and help them through the situation?

promote optimism and positive thinking

Mahie owns an Indian restaurant that employs around 20 people. She is solely responsible for the management of the restaurant. Her business competes with a larger chain of restaurants that offers the same cuisine. Mahie's restaurant can be classified as a

small business

Robert's music Center is a local music shop. Along with selling musical instruments, it also rents instruments to students in school and band programs. Robert is the owner and employs three full-time and five part-time employees. Robert's business is a

small business

Which type of business has created a majority of net new jobs annually?

small businesses

While growing up, Carlos notices that many families in his community struggled to make ends meet and provide for their children's education. As a result, he started a business to provide low-cost tutoring and scholarship opportunities for low-income families in his community. As his company has grown, Carlos has been able tp extend free tutoring and college scholarships to five impoverished students per year. Carlos is a

social entrepreneur

Wes is a manager at a large investment banking firm. The firm is expanding, and he is tasked with hiring more people to carry out the organization's increased workload. Wes must also determine what to pay the new hires and develop a plan to train them. Wes is engaged in staffing.

staffing

The Electronics Warehouse wants to make sure its products are always available to customers. Since the company sells many electronic products, including computers, televisions, printers, and gaming equipment, it will need many diverse ______ to maximize efficiencies and provide creative solutions to help the company reduce expenses and reach its objectives.

suppliers

Bolivia, South America is the only country in the world that is able to grow a rare plant that is used to produce a healing ointment for arthritis patients. Because Bolivia is the only country with access to this plant, it has a(n) -comparative advantage -comparative disadvantage. -absolute advantage -absolute disadvantage -domestic advantage

absolute advantage

Growth objectives essentially relate to

adapting and releasing new products in the market.

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

can customize products to meet specific customer needs and wants.

A drawback of franchising is the need for franchisees to strictly adhere to the standardized operations.

True

Hiring people to carry out the work of an organization is known as

staffing

Vince starts his own tutoring business. He wants to write a good mission statement that explains his company's reason for existence. What is one guideline he should follow in writing his mission statement?

It should be clear and concise

Countries like China and Vietnam are flooded with counterfeit videos, movies, computer software, furniture, and clothing. Wh is this?

Copying is a tradition in these countries.

What is a difference between high technology businesses and other small businesses?

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

What social and cultural issues should a manager consider before doing business in a foreign country?

It is important for the manager to understand the importance of social and cultural differences between countries. Because cultural norms are rarely written down, careful research is crucial. Social and cultural differences include differences in spoken and written language, body language, personal space, family roles, perceptions of time, national and religious holidays, local customs, and measurement systems.

What is the purpose of the Small Business Administration?

It offers managerial and financial assistance to small businesses.

If Yvette wants to start her own business, what might persuade her to open a retail operation?

Retailing requires low initial financing.

Which scenario best illustrates a small business operating in a retail industry as opposed to wholesaling its products?

The Case Place imports cell phone covers and sells them directly to customers through kiosks at the mall

Which question does the mission statement of an organization seek to answer?

What business are we in?

Which of these basic questions will be answered by a well-developed mission statement?

Who are our customers?

What is true of wholesalers?

Wholesalers are extremely important because of the marketing activities they perform.

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

a microentrepreneur

Nellie's Sweet Shop, a large candy store, has historically sold a lot of chocolate and gummy candies. However, over the years, people have become more health conscious. As a result, Nellie's develops a new line of sugar-free candies that taste as good as the original but without the guilt. What type of objective does this exemplify?

growth

All of the following are true of direct selling EXCEPT -the cost of getting involved is low -it can be done part time -it requires buying a lot of inventory -those who can do it can receive commissions on their sales - those who do it have the opportunity to recruit other distributors

it requires buying a lot of inventory

Naveen is part of the planning team in his organization that is working to develop the firm's mission statement. The team know that along with describing the business and identifying its customers, the ream should also articulate the business's operating philosophy and list any core competencies the business has. What other item should Naveen and his team include in the mission statement?

the firm's responsibilities with respect tp being a good steward of environmental, financial, and human resources

Bob and Tom live and work in Texas, but they love vacationing in the Bahamas. After several years, they decide to buy a vacation home in the Bahamas. When they are not there, they rent the property to other people for $1,200 per week. This is an example of

the sharing economy