Management tools and principle
____ limit the amount of particular goods that countries allow to be imported during a given year (A) Import quotas (B) Embargoes (C) Export quotas (D) Import tariffs (E) Import subsidies
(A) Import quotas
Where can a description of the personal attributes a candidate needs to do well on the job be found? (A) Job analysis. (B) Job forecast. (C) Job description. (D)Workforce analytics. (E) Job specification.
(A) Job analysis.
Which of the following actions has the goal of reducing the money supply in markets? (A) The central bank raises the interest rate. (B) The central bank reduces the so-called 'reserve requirement'. (C) The central bank buys treasury bills from the market. (D) The central bank decreases property taxes. (E) The central bank liberalizes credit control actions on loans.
(A) The central bank raises the interest rate.
Firms typically diversify for the following reason: (A) To grow in a new market when their existing market is declining or saturated. (B) To increase their level of forward/backward integration. (C) To reduce the bargaining power of their suppliers. (D) To reduce the so-called 'transaction costs'. (E) To reduce the price sensitiveness of their customers.
(A) To grow in a new market when their existing market is declining or saturated.
Profits of sole proprietorships (A) flow directly to the owners (B) are taxed at corporate rates (C)are subject to double taxation (D) are received in the form of dividends (E) are considered fixed assets
(A) flow directly to the owners
The maturity date is the date on which (A) the debt must be repaid (B) a bond will be converted to a common stock (C) the yield will be adjusted to reflect new market value (D) a COO becomes mature to replace the CEO (E) interest will be paid
(A) the debt must be repaid
Which of the following is a key difference between financial accounting and management accounting? (A)Financial accounting is based on market data, while management accounting is based on historical data. (B)Financial accounting creates information for outsiders, whereas management accounting creates information for insiders. (C) Financial accounting is based on the matching principle, while management accounting is based on the accotinting equation principle. (D) Financial accounting considers such aspects as profitability, whereas management accounting does not consider profitability. (E) Financial accounting is concerned with preparing cost analysis, whereas management accounting is concerned with creating reports.
(B) Financial accounting creates information for outsiders, whereas management accounting creates information for insiders.
In the BCG matrix, an ______ enjoys a high expected growth rate and a high market share. Feedback for student (A) pearl (B) star (C) dog (D) question mark (E) cash cow
(B) Star
Which of the following is a typical role of middle managers in an organization? (a) Defining the strategic goals and objectives of the organization. (B) Translating strategic goals and objectives into actions. (C) Supervising knowledge workers. (D) Making long-range plans for the organization. (E) Supervising workers on an assembly line.
(B) Translating strategic goals and objectives into actions.
A(n) _____is responsible for overseeing all accounting functions in a company, reports to the CFO or company president, and is the higher ranking accountant in a company. (A) inventory manager (B) controller (C) cost accountant (D) credit manager (E) marketing manager
(B) controller
Independent accounting firms that provide auditing services for publie companies are called (A) domestic auditors (B) external auditors (C)financial analysts (D) cost accountants (E) forensic auditors
(B) external auditors
Grouping customers with similar characteristics, behaviors, and needs is known as (A) marketing mix (B) market segmentation (C) market development (D) market penetration (E) market targeting
(B) market segmentation
According to the ____ view, the only social responsibility of business is to pay taxes and obey the law. (A) stakeholder (B) minimalist (C) defensive (D) proactive (E) cynical
(B) minimalist
Equity financing refers to arranging funding by_____. (A) issuing commercial papers (B) selling ownership shares (C) borrowing money from institutions (D) selling corporate bonds (E) borrowing money from individuals
(B) selling ownership shares
_____ is/are the principles and standards of moral behavior that are accepted by society as right and wrong. (A)Corporate social responsibility (B) Etiquette (C) Ethics (D) Business mindset (E) Philantropy
(C) Ethics
When a company buys part of a company or the control of a company in a foreign country, this is known as _____. (A) strategic alliance (B) importing (C) Foreign direct investment (D) licensing (E) franchising
(C) Foreign direct investment
_______ unemployment is the natural movement of workers into and out of jobs, such as when a person quits one job without first lining up a new job (A) Structural (B) Intrinsic (C)Frictional (D) Cyclical (E) Seasonal
(C) Frictional
When we charge a high price for a new product during the introductory stage and then we lower the price later, what type of pricing strategy are we using? (A) Freemium pricing. (в) Penetration pricing. (C) None of the others. (D) Participative pricing. (E) Dynamic pricing.
(C) None of the others
A(n)____ has most of the attributes of a regular corporation but adds the legal requirement that the company must also pursue a stated non-financial goal. (A)limited liability corporation (B) sole proprietorship (C)benefit corporation (D) proactive corporation (E) general partnership
(C) benefit corporation
Steps an organization takes to target the needs of a workforce that includes woman and minorities are referred to as______. (A) cognitive abilities (B) accommodations (C) diversity and inclusion initiatives (D) competitive advantage (E) assistive technologies
(C) diversity and inclusion initiatives
All the groups affected by a company's business activities are called_____? (A) partners (B) shareholders (C)stakeholders (D) community (E) constituents
(C) stakeholders
!!"'Do what's right, respect others, care for customers, and perform with excellence." This is likely to be an organization's statement." (A) vision (B) mission (C) values (D) tactical (E) operational
(C) values
A public corporation refers to a corporation____. (A) that is owned solely by the federal government, that's why it is called public (B) whose stock is not traded in stock exchanges or other markets (C) whose stock is sold to the general public (D) that is allowed to sell stock only to a limited number of investors (E) whose stock is privately held
(C) whose stock is sold to the general public
_______ are long-term partnerships between two or more companies to jointly develop, produce, or sell products. (A)Mergers (B)Global franchises (C)Strategic alliances (D) General partnerships (E) Joint ventures
(C)Strategic alliances
In a______companies can decide what to produce, how to produce, whom to sell to, and at what price to sell. (A)socialist economy (B) communist economy (C)free-market system (D) planned system (E) regulated economy
(C)free-market system
Which of the following types of compensation enables employees to acquire shares in a company? (A) A retirement plan. (B) convertible bond. (C) A self-insurance plan. (D) A stock option. (E) A pension plan.
(D) A stock option.
Which of the following is the main objective of engaging in inventory control? (A) Providing a channel for brand communication. (B)Obtaining feedback from the customers. (C) Storing less finished products and more raw materials. (D) Balancing supply and storage costs. (E) Providing a channel for customer communication.
(D) Balancing supply and storage costs.
______occurs when an organization seeks to broaden its scope of activities by moving into new products, markets and industries. (A)Market penetration (B)Market segmentation (C) Vertical integration (D) Diversification (E) Transaction cost analysis
(D) Diversification
______ Is/are the study of how a society uses scarce resources the produce and distribute goods. (A) Socialism (B) Capitalism (E) Entrepreneurship (D) Economics (E) Sociology
(D) Economics
______ refers to the idea that carefully designed performance targets can motivate employees to higher performance. (A) Three needs theory (B) Equity theory (C) Maslow theory (D) Goal-setting theory (E) Scientific management
(D) Goal-setting theory
Leverage ratios indicate ______. (A) how well a firm is generating profits out of sales (B) a firm's ability to pay its short-term debts (C) how well a firm is making use of its investments (D) a firm's ability to pay its long-term obligations (E) how well a firm is making use of its assets
(D) a firm's ability to pay its long-term obligations
Socially adept managers will have a knack for ______. (A) controlling their own emotions and impulses (B) exhibiting rational skills to make high-quality decisions (c) solving problems quickly using their reasoning abilities (D)finding and building common ground with people of all (E) better understanding financial statements
(D) finding and building common ground with people of all kinds
According to the book, managerial roles are grouped into three main categories: interpersonal, decisional, and ______. (A) instructional (B) social (C) differential (D) informational (E) operational
(D) informational
The______ requires that expenses incurred in producing revenues be deducted from the revenue they generated during the same accounting period. (A) principle of prudence (B) principle of continuity (C) materiality principle (D) matching principle (E) deferral principle
(D) matching principle
In the context of teams, groupthink occurs when ____. (A) employees judge a decision by its eventual outcome, rather than on the quality of the decision at the time it was made (B) a team places too much importance on one aspect of an event, which causes errors in accurately predicting the utility of a future outcome (C) managers favor employees who don't compete with their own particular strengths (D) peer pressures cause individual team members to withhold contrary or unpopular opinions (E) the teams 'thinks' very effectively and thus arrives to innovative solutions
(D) peer pressures cause individual team members to withhold contrary or unpopular opinions
Which is the highest-ranked officer of a corporation? (A) Chief operating officer. (B) Board of directors. (C)Chief information officer. (D)Chief executive officer. (E) Chief financial officer.
(D)Chief executive officer.
Which of the following is a component of the specific market environment within which each business operates? (A) Environmental restrictions. (B) Technological innovations. (C) A growing economy. (D) Ethical restrictions. (E) Competitors.
(E) Competitors.
During a hostile acquisition, in a______ the raider launches a public relations battle for shareholder votes, hoping to enlist enough votes to oust the board and management (A ) guerilla blitz (B) white knight tactic (C) poison pill defense (D) tender offer (E) proxy fight
(E) Proxy fight
Which of the following is a major advantage of equity financing through the sale of shares of ownership? (A) Selling shares of ownership consumes less time than other forms of financing. (B) Selling shares of ownership does not change the way a company is managed. (C) Owners do not risk their position in the firm when selling shares. (D) Selling shares of ownership makes the company's operations less complicated. (E) Selling shares of ownership has tremendous potential to fuel organizational growth.
(E) Selling shares of ownership has tremendous potential to fuel organizational growth.
A(n)_____ is a framework of how a business intends to generate revenue. (A) profitability analysis (B) strategic management tool (C) entrepreneurial mindset (D) competitive advantage (E) business model
(E) business model
Stock exchanges are organizations that _______. (A) function as underwriters in public issues (B) issue stock on behalf of small companies (C) combine multiple stocks to create mutual funds (D) issue cash in exchange for pledging stock (E) facilitate the buying and selling of stock
(E) facilitate the buying and selling of stock
The minimum sales volume that, at a given price, covers all costs, is called _____. (A ) cost of good sold (B) EBITDA (C) gross sales (D) break-even point (E) none of the others
(E) none of the others
A country's balance of payment equals the _______. (A) gross domestic product of the country minus the gross national product of the country (B) money spent on procuring services minus money spent on procuring goods (C) money spent on producing services minus money spent on producing goods (D) balance of trade but also includes the military expenses (E) total flow of money into the country minus the total flow of money out of the country
(E) total flow of money into the country minus the total flow of money out of the country
________ refers to a resource or capability a company must have before it can start competing in a given market. A free-market system B A barrier to entry C customer service department D CSR departmentE High skilled employees
B A barrier to entry
The effort on developing and maintaining long-term relationships and create customer lifetime value, while seeking long-term profitability and other goals, is known as. (A) stakeholder relations (B) cause-related marketing (C) relationship marketing (D) stealth marketing (E) relationship management
C relationship marketing
What is a platform? (A) None of the others. B) It means engaging with customers through social networks. (C) A medium that allows customers to trade cryptocurrencies or digital currencies for other assets. (D) A new business model that uses technology to connect people, organizations, and resources in an interactive ecosystem in which amazing amounts of value can be created and exchanged. (E) A new type of e-commerce website.
D A new business model that uses technology to connect people, organizations, and resources in an interactive ecosystem in which amazing amounts of value can be created and exchanged.
_____plans outline the firm's long-range (often two to five years) organizational goals and set a course of action the firm will pursue to reach its goals. (A) Short-term (B) Mission (C)Contingency (D)Strategic (E)Operational
D Strategic
Which of the following is a major difference between debt financing and equity financing? (A) Equity holders have primary claims on assets unlike debt financiers. (B) Equity financing is based on issuing bonds, while debt financing is based on issuing stocks. (C) Debt financing is used to cover long-term expenses, whereas equity financing is used for current expenses. (D) Equity financing has a specific maturity period, whereas debt financing usually has no specific maturity period. (E) Repayment of debt financing is not linked to organizational performance, unlike equity financing.
E Repayment of debt financing is not linked to organizational performance, unlike equity financing.
An organization that seeks to operate efficiently and effectively to achieve its goals without focusing on profit as a motive is a_____. (A) government-owned corporation (B) business intermediaryservice business (D) benefit corporation (E) nonprofit organization
E nonprofit organization
Which of the following is an example of a current asset? (A) Land. (B) Intellectual property. (C)Money the company owes its suppliers. (D) Equipment. (E) Accounts receivable.
E) Accounts receivable
