Management Test 2

Export agents either purchase products out right or take them on consignment but are not responsible for storage and transportation of the product. True or false?

false

The general agreement on tariffs and trade provided a forum for tariff negotiations in a place where international trade problems could be resolved. True or false?

true

The international monetary fund promote trade among member nations by illuminating trade barriers and fostering financial cooperation. True or false?

true

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

False

When a manager and make sure there is adequate funding to pay for central activities, he or she is managing __________ Resources. Human, tangible, financial, production, biological

Financial

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 their favorite the property to other people for $1200 per week. This is an example of... A service business, direct selling, social entrepreneurship, the sharing economy, retailing

The sharing economy

A drawback of franchising is the need for franchisees to strictly adhere to standardized operations. True or false?

True

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

True

As an international business opportunity direct investment provides the least amount of control but is also the least expensive way to participate in foreign trade. True or false?

false

Companies doing business internationally have traditionally used a globalization strategy. True or false?

false

Manufacturing businesses are attracted to entrepreneurs because of the low start up costs required to establish a manufacturing business. True or false?

false

Multinational corporation's are rarely targeted by activist because they provide so many benefits to the countries in which they do business. True or false?

false

Small businesses by their very nature are small and therefore do not contribute significantly to job creation. True or false?

false

Socio-cultural differences such as variations and body language and personal space rarely have any impact on international business. True or false?

false

The Asia-Pacific economic cooperation is a trade agreement between Asian countries and does not include the United States. True or false?

false

when a nation imports more than it exports, it has a positive balance of trade. T or F?

F

all the following are true of direct selling except... It Requires buying a lot of inventory, it can be done part time, the cost of getting involved is low, those who do it can receive commissions on their sales, does he do it have the opportunity to recruit other distributors

It requires buying a lot of inventory

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 fall in reading his mission statement? — it should be long and include complex details -it should be written in technical industry jargon -it should answer every question its customers could ever want the answers to -It should be short and vague -It should be clear and concise

It should be clear and concise

Randy on the small local catering business. He has been hired for a company picnics, backyard barbecues, and family celebrations. As word-of-mouth is spread about his delicious food, good service, and fair prices, he has started getting more business. To handle this, he has hired three employees help cook and serve food at three events. What kind of entrepreneur is Randy? A macro entrepreneur, a social entrepreneur, and sharing entrepreneur, a gig entrepreneur, micro entrepreneur

Micro entrepreneur

what type of business has been growing faster than other classifiable farms and represents almost 30% of all small businesses,? Family owned businesses, minority owned businesses, publicly owned businesses, social entrepreneurship's, small corporations

Minority owned businesses

A declaration of an organizations fundamental purpose and basic philosophy is known as an... Statement of operations, mission statement, referendum, operating agenda, goal statement

Mission statement

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 jakes company this is it... Statement of operations, mission statement, business plan, operating agenda, target statement

Mission statement

Melvin's fishing store has profit as an objective. As a result, he wants to have... - unlimited liability -money and assets left over after paying off business expenses -The ability to promote diversity -Time to release new products in the market place -The ability to evaluate opportunity cost

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

Fit rite fasteners, a firm based in the U.S. buys metal parts from china to manufacture its fasteners. in doing so, the company is engaged in exporting. T or F?

F

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 an a) Comparative advantage, b) comparative disadvantage, c) absolute advantage, d) absolute disadvantage, e) domestic advantage

Absolute advantage

growth objectives essentially relate to... -making the best use of an organizations resources -coordinating an organizations resources smoothly -Focusing on profit as the sole indicator of growth -adapting and releasing new products in the market -building an organizations ability to promote diversity

Adapting and releasing new products in the market

In the manufacturing sector, small businesses sometimes have an advantage over large firms because small businesses... -are exempted from paying taxes in most countries -Can customize products to meet specific customer needs and wants -have a better access to highly skilled workers -can mass produce and supply goods in bulk have better access to funds and can invest on sophisticated equipment

Can customize products to meet specific customer needs and wants

Suppose there are several countries that are efficient at producing coffee beans in Brazil is one of those countries. While Brazil is efficient at producing coffee beans, it is a in efficient 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 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. Opportunity cost, efficiency, competitive advantage, employee turnover, raising capital

Competitive advantage

to earn a profit, managers must acquire, coordinate, and control all of the following resources except.... Competitive products, people, services, money, Raw materials and equipment

Competitive products

Countries like China and Vietnam are flooded with counterfeit videos,movies ,computer software ,furniture,and clothing.Why is this? -The counterfeit products are a better quality -The copyright laws of those countries are strict for domestic products -those countries do not engage in trade that is legal -intellectual property laws in those countries are very strict -copying is a tradition in those countries

Copying is a tradition in those countries

marla manages an online shoe store. She must determine what her companies warehouses and distributing facilities need in which type of automation can maximize order efficiency. What major phase of the planning of process does this example describe? Data gathering, event forecasting, objective setting, action taken, option selecting

Data gathering

before an organization can plan a course of action, it must first.... Take correct of action, develop a blueprint of the plan, decide on the people to be involved in the plan, determine what it wants to achieve, allocating organize the required resources

Determine what it wants to achieve

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

Differences in spoken and written language, body language, personal space, family roles, perception of time, national and religious holidays, local customs, and measurement systems

well Justin attends college he's working part time for a cut blurry company. He goes door-to-door and offers customers face-to-face presentations in their homes. This is an example of... Direct selling, direct marketing, wholesaling, manufacturing, telemarketing

Direct selling

Grace manages a beach rental kiosk. Her goal is to run this business in such a way that she cheese 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... Efficiency, effectiveness, standardization, innovation, expertise

Effectiveness

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, profit, growth, competitive advantage, sales

Efficiency

if a manager is concerned about doing the work with the least cost and waste possible, then his or her primary managerial concern is... Efficiency, effectiveness, delegation, hiring, expertise

Efficiency

Marissa is a fitness expert who starts her own personal training company. She conducts fitness classes for women and provide personal training sessions for clients. Marissa can be regarded as a... Shareholder, entrepreneur, investor, entrepreneur, inventor

Entrepreneur

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, capitalization, economics, philanthropy, entrepreneurship

Entrepreneurship

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. T or F?

F

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

F

what is the difference between high technology businesses in other small businesses? -High technology businesses never start in garages, basements, kitchens, or dorm rooms, while some other types of small businesses can start in these places -High technology businesses require a greater capital and have higher initial start up cost than other small businesses -High technology businesses are less innovative than other small businesses -High technology businesses are the only type of small business that uses technology -High technology businesses have lower initial set up cost than other small businesses

Hi technology businesses require greater N have higher initial start up costs and other small businesses

what is the purpose of the small business administration? -It protects consumers against unfair practices by businesses -it offers managerial and financial assistance to small businesses -it protects small businesses against competition from larger companies -Ensures that newly formed businesses adhere to the law -It regulates the issue of stocks by small businesses

It offers managerial and financial assistance to small businesses

Why has outsourcing become a controversial practice in the United States? —outsourcing takes away jobs that could be accomplished by workers in the US —Outsourcing takes away a company's ability to develop a comparative advantage -outsourcing has made US based product significantly more expensive -outsourcing increases the cost of labor and supplies needed to get that job done -The outsourced products end up having substandard quality because the producers lack expertise

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

Ross is one of the senior managers of a large company. He is a part of a team that determines the objectives of the company based on future trends in the industry and decide how to accomplish them. Ross is involved in the management function of... staffing, recruiting, planning, directing, factoring

Planning

determining an organizations objectives and deciding how to accomplish them is the management function known as... Planning, controlling, staffing, organizing, factoring

Planning

which management function is crucial because it lays the foundation for all other management functions? Planning, organizing, staffing, controlling, directing

Planning

Bradley is a manager at a company that has made the difficult decision to downsize. After his company already and 50 employees, what Must Bradley do to effectively manage his remaining employees and help them through the situation? -promote optimism and positive thinking -commiserate with his employees -make sure his employees know that the company, not him, is to blame -encourage his employees to look for employment elsewhere -give his employees expensive gifts to encourage them to stay

Promote optimism and positive thinking

many service providers are considered retailers because they... -require a high initial start up cost -provide their services directly to consumers -sell their services from a single store location -Focus on large market segments in institutional buyers -Employee only a small number of people

Provide their services directly to consumers

bubbles and bangles, and independent jewelry store, acquires jewelry and accessories from producers and wholesalers and sells them to consumers. Bubbles and bangles is a... Manufacturers, wholesalers, retailer, direct sales company, direct marketing company

Retailer

if Yvette wants to start her own business, what might persuade her to open a retail operation? -Gaining experience in retail is a challenge, so our business would likely have less competition -there is no cost associated with opening a retail business -retailing does not require interacting directly with customers -Retailing requires low initial financing -retailing limits of farms need to focus on specific groups of consumers

Retailing requires low initial financing

Walt owns a business in which he offers standardized test preparation classes and individual tutoring for students. This is an example of a... manufacturing business, wholesaler, retailer, service business, direct selling business

Service business

Menami and Michael recently had their first child. As two working parents, they struggle to find good, economical childcare. As a result they develop their own software to link parents with licensed, reasonably priced childcare providers. This is an example of the... Sharing Economy, market segment economy, service economy, retail economy, consumer economy

Sharing economy

Maddi 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. Maddi's restaurant can be classified as a.... Multinational corporation, conglomerate, franchise, micro partnership, small business

Small business

Roberts music center is a local music shop. Along with selling musical instruments it also runs instruments to students in school band programs. Robert is the owner and he employs three full-time and five part-time employees. Roberts business is a... Social entrepreneurship, limited liability company, small business, micropreneurship, conglomerate

Small business

Which type of business has created a majority of net new jobs annually? Multinational corporation's, publicly traded companies, small businesses, conglomerates, public sector holdings

Small businesses

Or growing up Carlos noticed that many families in his community struggle 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 this company has grown Carlos has been able to extend free tutoring in college scholarships to five impoverished students per year. Carlos is a... Nonprofit entrepreneur, profit entrepreneur, social entrepreneur, sharing entrepreneur, macro entrepreneur

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 organizations increased workload. Wes must also determine what to pay the new hires and develop a plan to train them. Wes is engaged in... Factoring, directing, organizing, staffing, supplying

Staffing

hiring people to carry out the work of an organization is known as... Factoring, bartering, staffing, controlling, directing

Staffing

The electronics warehouse wanted to make sure it's products are always available to customers. Since the company sells many electronica products, including computers, television, printers, and gaming equipment, it will need many diverse ___________. to maximize efficiency and provide creative solutions to help the company reduce expenses and reach its objectives. customers, managers, investors, locations, suppliers

Suppliers

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

T

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

T

nations trade with other nations to obtain resources that would otherwise be unavailable to them. T or F?

T

which scenario best illustrates a small business operating in a retail industry as opposed to wholesaling its products? -Jerry bake cookies and sells them to other restaurants and cafés in malls -stellar cards manufactures cards and sells them to gift shops in supermarkets -trendy trees in apparel company sells his merchandise to T-shirts.com so they can be sold on its website -The case place imports cell phone covers and sells them directly to customers through kiosks at the mall -Spare parts Inc. manufactures component parts for appliances and sells them to appliance repair companies

The case place in Port cell phone covers in Saulsberry directly to customers through kiosk at the mall

Navin is part of the planning team in his organization that is working to develop the firm's mission statement. The team knows that along with describing the business and identifying its customers, the team should also articulate the businesses operating philosophy and list any court competencies the business has. What other items shouldn't of been and his team include in the mission statement? -how the business will be financed -Detailed plan of how the firm plans to grow in the future -The firms organizational hierarchy and management structure -The firms responsibilities with respect to being a good steward of environmental, financial, and Human Resources -A complete listing the answers every possible question that customers could have about the firms processes and products

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

joey's jewelry business has grown from a small start up 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 germs come from countries with the 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? -when do we plan to go international? -Who are our stockholders? -Who are our competitors? -How will we source our products?

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

Which question does the mission statement of an organization seek to answer? -what business are we in? -how do we expand our business? -what are our staffing requirements? -why are we not cost-effective? -How do we meet the annual sales target?

What business are we in?

which of these basic questions will be answered by a well developed mission statement? Who are our customers? how do we expand our business? how do we acquire customers? Who are our competitors? what products do we sell?

Who are our customers?

what is true of wholesalers? -wholesalers cannot be eliminated because their functions are too important -wholesalers receive their products from retailers -wholesalers do not provide management or merchandising assistance to clients -wholesalers do not perform marketing activities -wholesalers are extremely important because of the marketing activities they perform

Wholesalers are extremely important because of the marketing activities they perform

Nelly'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, Nellies 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? Sales, competitive advantage, profit, efficiency, growth

growth

A global strategy involves standardizing products to the whole world. True or false?

true

Licensing is a good option for small manufacturers wanting to launch a well-known brand internationally. True or false?

true

Many US companies have taken advantage of Mexico's low labor cost in proximity to United States to set up maquiladoras. True or false?

true

Trevor lives in Florida during the winter months. Well in Florida he rents out his main home in Colorado to people traveling there for the skiing season. Trevor is participating in the sharing economy. True or false?

true