TLI 152 Quizzes up to Week 8
A business's primary obligation to its owners and investors is to ______.
maximize the owners' investments in the firm
Select the three items that would be considered ethical behavior in a business.
meeting obligations and responsibilities avoiding conflicts of interest keeping company secrets
The advantages of centralized authority in organizations include:
more efficiency
A local furniture company launched a website to boost national sales. However, it could not ship the orders efficiently so its started using FedEx and UPS. This is an example of _
outsourcing
Which of the following is an advantage of offshore outsourcing?
paying low wages to employees
An individual's values, principles, and standards of conduct are referred to as ______.
personal ethics
When employees copy the work or ideas of others and present it as his or her own this is called _______.
plagiarism
brain drain
the loss of the smartest people from a country
The image depicts a(n) _ corporation structure
virtual
Business Environment - Opportunity - Challenge Economic & Legal - Freedom to choose and start own business - High Taxes Technological - The Internet - Social - Wealthy senior citizens - Decrease in Social Security contributions Global - - War and Terrorism
- Identify theft - is a challenge in the technological environment of businesses, while the desire for - green living - presents opportunities for new businesses in the global environment.
Reasons against trade restrictions
-misallocation of international resources -restriction of consumers' choices -higher prices for consumers -loss of jobs
reasons for trade restriction
-retaliate for another nation's trade restrictions -protect domestic jobs -protects health of citizens -equalize nation's balance of payments -protect new/weak industries -protect national security
Which behavior is the most common ethical problem for employees?
Abusive behavior
Which leadership style focuses on making decisions without consulting others?
Autocratic
As effective as the informal organization may be in creating group cooperation, it can still be equally powerful in resisting management directors. Identify from the following list some examples of employee resistance
Being absent Employees may spread incorrect rumors Employee theft
Which of the following statements reflects the difficulty companies face when requiring international suppliers to follow environmental and human rights standards set by U.S. firms?
Both economics and culture enter into the discussion of fairness concerning international suppliers who do business with U.S. firms.
What is the term for the periodic rises and falls that occur in economies over time?
Business Cycles
Select the statement that best substantiates why we say, "The role of management is evolving
Contemporary managers will focus on collaboration and continue to emphasize the team approach to work.
__________ is a cost-effective way that many companies outsource the production of goods, such as clothing, shoes, and cell phones. The domestic firm contracts with a foreign company to produce and private-label the goods because the price is much cheaper than the domestic firm could produce in its home market.
Contract manufacturing
The widely shared values within an organization that provide unity and cooperation to achieve common goals is the organization's
Culture
Which person is a stakeholder for a business?
Customer
The practice of exporting goods at prices lower than prices in the home market.
DUMPING
To more quickly respond to customer needs, a company is changing its organizational structure to give more authority and responsibility to field managers located across the country. These managers spend time with customers and know what the customers need right away. It appears that this company is moving toward a more __________ structure.
Decentralized
Which act was passed to reform the financial industry and offer consumers protection against complex and/or deceptive financial products?
Dodd-Frank
A legal provision known as the _______________ provides a "bounty" provision for whistleblowers whose actions result in a legal conviction. The monetary award may total as high as 30% of the amount collected for violations that exceed $1 million.
Dodd-Frank Wall Street Reform and Consumer Protection Act
As a global company, Electra Bikes sells its products to other countries. This process is referred to as
EXPORTING
According to the text, ethical behavior begins with
Each and every individual.
What person is engaged in plagiarism?
Edmund, a manager, takes credit for his employee's ideas.
Which statement is TRUE of business ethics?
Ethical issues are not limited to for-profit organizations.
Price for which the currency of one country can be exchanged for the currency of another country.
Exchange rate
The primary concerns when first starting your business are
Financing and planning.
The law that specifically prohibits "questionable" or "dubious" payments to foreign officials in an effort to secure business contracts is called the:
Foreign Corrupt Practices Act.
A partially or wholly owned company that is part of a larger company with facilities in another country.
Foreign subsidiary
When Keira bought a Super Suds car wash franchise, she became a
Franchisee
General Agreement on Tariffs and Trade; international treaty to facilitate international trade.
GATT
Which of the following was formed in 1948 by the governments of 23 nations to ease trading restrictions?
GATT
Henri Fayol's book was popularized in the United States under what title
General and Industrial Management
Which statement is accurate regarding the use of alternative energy?
Government subsidies will most likely be needed in order to make significant progress in the use of alternative energy.
Reed Hastings created Netflix. His inspiration came from the fact that he had to pay a sizeable late fee for returning a DVD beyond the due date at a rental store. It took a few tries to develop the winning business model. Which statement accurately describes his key to success?
His idea solved a problem
Which of the following control standards is stated most effectively?
Increase sales of our top-end product from 2,000, in the first quarter to 3,000, during the same period by 2017.
Which of the following is NOT included as one of the questions we must ask when faced with an ethical dilemma?
Is it acceptable if everyone else is doing it?
Which of the following are considered to be disadvantages to the matrix organization
It requires good interpersonal skills It can confuse employees about whose order to follow It's costly and complex
___________________are economic systems where some allocation of resources is made by the market and some by the government.
Mixed economies
Organization with facilities and other assets in at least one other country than its home country.
Multinational corporation
__________ uses communications technology and other means to link organizations and allows them to work together on common objectives.
Networking
Regarding the misconduct of business firms, which of the following statements is TRUE?
Often, misconduct evolves from ethical conflicts into legal disputes.
Sergey Brin and Larry Page are the founders of Google. Most would agree that they have a superb product, but in order to grow, the company needed more structure. Together, they agreed to hire Eric Schmidt to join the executive team as the executive chairman. Schmidt quickly began performing the ________ function, where he created well-structured departments and hired skilled people to perform the various functions of the business.
Organizing
Which of the following exemplify line personnel in the line-and-staff organization
Production workers Packaging personnel
Which BRIC country has not lived up to expectations due to a slowing economy, political and social problems, and being labeled as the world's most corrupt major economy?
Russia
Thinking of the various categories for misconduct in the workplace, select the person who BEST fits misconduct based on "fairness and honesty."
Sandra takes reams of copy paper from the office to use with her printer at home.
To truly create an ethical culture, leaders must
Show a strong commitment to ethics and compliance.
Philanthropic activities
Starbucks created the Starbucks Foundation to award grants to eligible nonprofits and to give back to its communities.
__________ is the process managers use to continually monitor all phases of the production process to ensure that quality is being built into the product from the beginning and that quality is not being inspected into the product at the end of the production process.
Statistical quality control (SQC)
Conducting activities in such a way as to provide for the long-term well-being of the natural environment is referred to as _____.
Sustainability
The type of planning that involves developing detailed, short-term statements about what is to be done, who is to do it, and how is referred to as __________ planning.
Tactical
A firm's management purchases all the issued and outstanding stock of the firm and takes the company off the stock market. The management of this company has engaged in
Taking the firm private.
Which are characteristics typical of a C corporation?
Taxed separately from its owners who also enjoy limited liability
Which scenario exemplifies one of the most common ways employees abuse company resources?
Taylor uses her company computer to shop online and check her Facebook page.
Unlimited liability means
The business is responsible for the debt it incurs. If the business cannot pay its bills, the debt burden transfers to the owner(s), and the owners are liable for all debt.
Ethics are the standards of right and wrong set for us by society, whereas legality refers to
The collection of laws to protect society from fraud, theft, and violence.
U.S. businesspeople are often accused of ethnocentricity. This means that
They feel their culture is superior to others.
Which of the following are reasons to name department managers for each department created during departmentalization
To assure the department's accountability To maintain control of the whole process
What are some of the goals of developing an organization chart
To show who report to whom To show relationships among people
Which statement concerning the U.S. service sector today is most accurate?
Today's economy depends overwhelmingly on services rather than manufacturing.
Which of the following best describes entrepreneurial personality traits?
Tolerant of uncertainty and highly energetic
True or false: Ethical issues often emerge from conflict.
True
What has been identified as the most common way employees abuse company resources?
Using company computers for personal use
Which organizational theorist promoted the pyramid-shaped organizing structure as critical to his bureaucracy- based philosophy
Weber
Individuals who report unethical or illegal behavior within an organization are referred to as
Whistleblowers
trading company
a company that provides a link between buyers and sellers in different countries and is not involved in manufacturing or owning assets related to manufacturing
licensing
a contractual agreement in which one firm permits another to produce and market its product and use its brand name in return for royalty or other compensation
trade restrictions-non-tariffs
a nontax measure imposed by a government to favor domestic over foreign suppliers -foreign-exchange control -currency devaluation -import quota
joint ventures
a partnership formed to achieve a specific goal or to operate for a specific period of time
strategic alliance
a partnership formed to create competitive advantage on a worldwide basis
Line managers are those who have the authority to:
adjust to changing conditions enforce discipline issue orders
Economic Communities
an organization of nations formed to promote the free movement of resources and products among its members and to create common economic policies
Under Fayol's _ principle, managers have the right to give orders and the power to enforce obedience
authority
The difference between money flowing into a country from exports and money leaving the country for imports, plus the flow of money from other factors such as tourism, foreign aid, military expenditures and foreign investments is a country's
balance of payments
The new era of business will:
be an information-based global revolution that will impact all sectors of economy.
Why is ethical decision making difficult?
because there are always gray areas that create dilemmas
Although sexual harassment has legal recourse, workplace _______ has little legal recourse at this time.
bullying
A __________ is a written document that details the business idea, the target market and the business's competitive advantage, financial resources available for the business, and the qualification of the management.
business plan
Target's CEO personally conducts the interview process when hiring for the top 600 positions in the company. This is an example of _
centralized authority
According the the consumer bill of rights, the right to _____ ensures that consumers have access to a variety of goods and services at competitive prices.
choose
The formalized rules and standards describing expected employee behavior are outlined in ______.
codes of ethics
Group formed by countries within a geographical region to promote free trade among its members.
common market
False and misleading advertising is an example of how _______ is an area in which ethical concerns may arise.
communication
Because they often picture the organization as a whole and work to incorporate all departments into one, seamless organization, top managers utilize __________ skills the most.
conceptual
Sustainability can be defined as ______.
conducting activities in such a way as to provide for the long-term well-being of the natural environment
This exists when a person must choose whether to advance his or her own personal interests or those of others.
conflict of interest
Nike's strength is in manufacturing athletic shoes and Apple's is in marketing innovative electronics. These are examples of each company's:
core competencies
Because Nike is superior at designing and marketing athletic shoes, this is considered to be their:
core competency
An important reason why companies _ authority is to be more responsive to customer needs
decentralize
As managers perform all four management functions, we recognize that ________ is required. For example, when making plans, the manager must typically choose between two or three alternatives, that have pros and cons.
decision making
The last recession changed the way many companies offer support to people and communities in need. Many companies
decreased financial donations but encouraged their employees to volunteer their time to corporate social initiatives and projects.
Diving an organization into separate working units is called:
departmentalization
Important decisions to be made while designing an organization include:
departmentalization span of control degree of centralization
Once managers determine what work needs to be done, they then need to divide up the tasks among workers. This is called _ of _
division labor
When a house painting company divides workers into those who prepare the surface, those who paint the trim, and those who paint the walls, it is an example of:
division of labor
Robin Banks is a supervisor for a large, bureaucratic organization on the West Coast. According to the views of a bureaucratic organization, this means that Robin should:
do her work and let middle- and upper-level managers do the decision making.
When a company purchases raw materials in bulk, thus reducing the cost of production, it is called:
economies of scale
Restructuring involves redesigning an organization so that it can be more _ and _
effective efficient
Contemporary managers
emphasize teamwork and cooperation, and act as coaches, rather than bosses.
When Parker started his business, he knew he had to keep costs to a minimum and he worried about taxes. He planned to build and distribute safety goggles for construction workers and military personnel. He realized most of his business would not be through walk-in customers but rather large orders from companies. He chose to locate in a government-subsidized area called a(n) ________________, where he would receive tax breaks.
enterprise zone
To build trust among individuals, organizations should adhere to conduct that is _____ in order to validate and promote confidence in business relationships.
ethical
Organizational _____ initiatives have been supportive of many positive and diverse organizational objectives, such as profitability, hiring, employee satisfaction, and customer loyalty.
ethics
trade restriction dumping
exportation of large quantities of a product at a price lower than that of the same product in the home market
This figure is an example of a wide span of control in a _ organizational structure
flat
Which of the following statements regarding offshore outsourcing is TRUE?
focus on areas in which they can grow
International commerce not restrained by government interference or regulation.
free trade
At Schwinn, managers of various new departments in the company were told, "Go out and shape the department the way you feel is best. You have total freedom and support." Schwinn's managers operate under a system of:
free-reign leadership
In the informal organization, the system through which unofficial information flows between and among managers and employees is the
grapevine.
The concept that states all workers should know to whom they report is referred to as the _ of _
hierarchy authority
negative balance of trade
imports>exports=(-) balance of trade
Andre works for a company that promotes an entrepreneurial culture. Employees are encouraged to discuss new ideas. Development time is provided on the job for those ideas that float to the top. Employees who use their creative talents to generate ideas and create products within large companies are called ________.
intrapreneurs
Robert Redford created The Sundance Film Festival, where talented, young directors and producers can submit their films for review and possible screening. The festival attracts thousands of tourists each year, employs many others at various capacities, and provides important exposure to up-and-coming artists who may otherwise not be able to get their works noticed. Ultimately, the festival provides social and economic benefit for many. Adam Smith believed that one's self-directed gain would eventually create prosperity for many, and called the process the ___________.
invisible hand
The drawbacks to Weber's principles of organization have been that:
large organizations may develop too many rules following the rules can become an end in itself
Once known as "directing," the_______ role of management means creating a vision for the organization and empowering employees to become self-directed and self-motivated.
leading
Increased diversity of the population of the United States has:
led to companies with more diverse workforces.
Examples of employees considered to be staff personnel would include:
legal advisers information technology workers
Select from the following the four stages of social responsibility.
legal compliance ethics financial philanthropy
Under this global strategy, a U.S. footwear company allows a foreign firm to use its trademark and manufacture its products in exchange for a royalty.
licensing
When Luke, Larry, and Lance
limited liability
In a pizza parlor the chain of command is a general manager, shift manager, and employees. The employees report to the shift manager who reports to the general manager. This exemplifies a:
line organization
The personnel directly responsible for achieving organizational goals are:
line personnel
The branch of economics which studies the behavior of entire economies and policies that affect the economy as a whole is called
macroeconomics
The primary reason why managers in the latte 1900s began designing organization was so that _
managers could control workers
The evolving business environment has made __________ a critical managerial function.
managing change
A __________ refers to people with unsatisfied wants and needs who are willing and able to buy a product or service.
market
Economies of scale work best in a company that makes large quantities of goods using _ processes
mass production
When Beck joined his uncles oil exploration company in east Texas
master limited partnership
A _ structure, also called a project management structure, sets up teams from different departments, thereby creating two or more intersecting lines of authority
matrix
Bella has perfected the art of candle making. She has made gifts for her friends for years and has always gotten rave reviews, so decided to make a business out of her craft. She plans to run the business out of her home so she can be there to raise her children and still participate in all of their activities. Bella is not interested in growing a large business; she just wants to make extra income. Bella is best described as a(n)
micropreneur.
Business owners who prefer to maintain their businesses at a manageable size are called
micropreneurs
Which of the following statements is a good prediction of future occurrences in global markets?
offshore outsourcing will continue to increase
Under unity of command, each worker is to report to only _ boss
one
Advantages of ________ include reduced start-up fees and no territory
online franchising
Today's trend is to expand the span of control because:
organizations save by reducing the number of middle managers the workforce is better educated at all levels
The Fayol principle esprit de corps indicates that a spirit of _ and _ should be created among people in the firm
pride loyalty
A company may choose to departmentalize by _ so employees are able to focus on learning a few critical skills such as cutting leather to make coats
process
The term used to describe all the activities managers do to help their firms create finished goods and services is __________ management.
production
Besides the shift of jobs to foreign countries, outsourcing has other drawbacks such as
questionable safety and quality issues with finished products
When Target developed its "creative cabinet" its main objective was to gather information from a wide range of customers so that it could:
reach different nationalities reach digital natives adapt to change
__________ is the world's largest exporter.
China
A large commercial cattle farm provides jobs for over 100 employees, who care for over 500 various species of cattle. The operation consists of traditional functional units, which include management, marketing, and finance, and 30 veterinarians that specialize in the various types of cattle owned by the company. Although the firm operates with a CEO, COO, CFO, and a director of marketing, it relies on the veterinarians to make decisions on the appropriate care and environment for the cattle. Sometimes the veterinary decisions override marketing and financial concerns even though the veterinarians operate at a lower level in the organization structure. The commercial farm operates as a(n) __________ organization.
Inverted
The most basic question one should ask when faced with an ethical dilemma is
Is it legal?
Matrix organizations violate traditional managerial principles, yet can be more efficient. This contradiction can be attributed to which of the following attributes
It can produce creative solutions to problems It encourages inter organizational cooperation and teamwork
How does ethical conduct validate and promote confidence in business relationships?
It creates a sense of trust between partners.
Because of the high volume of bicycles as a common form of transportation in Beijing and Shanghai, Charles wants to sell his bicycle horns to these markets. In this case, the exchange rate is $1 U.S. dollar = 6.42 Chinese yuan. Economically speaking, how are his prospects
It depends on the value of the Chinese yuan in relation to the dollar.
Which of the following would be a positive result of departmentalization by product
It results in good customer relations
Select from the following the typical actions of consumerism. (Select all that apply)
Making public service announcements Boycotting companies Writing letters to companies Lobbying government agencies
Identify the TRUE statement about legal issues in business.
Many problems in business could be avoided if managers and employees knew more about business law and the legal system.
Which craft brewer is the first all-wind-powered brewery in the United States?
New Belgium Brewing Company
Judy started a business called "Music and Memories." She recognized that music, socialization, and memory-challenging activities for senior citizens helped maintain their cognitive skills for longer periods of time. Though she strives for a financial gain, she uses the excess funds for enriching her programs instead of personal profit. Her organization is classified as:
Nonprofit
What are the primary sources of funding for entrepreneurs?
Personal savings and individual investors such as family.
Which of the following are advantages of departmentalization by function
The company can achieve economies of scale Employees develop in depth skills and continue to progress
True or false: When it comes to business ethics in the workplace, the "fairness and honesty" principle means, in part, not harming customers, employees, clients or competitors knowingly through deception.
True
What three items represent a misuse of company resources?
Using the company copier for personal use Submitting personal expenses on a company expense report Using the company computer for sending personal e-mails
Due to his reputation of putting together powerful presentations, Victor was contractually hired by AI Life, Inc., to help this firm introduce the value of its new robotic arms and legs to high-net-worth investors. AI Life hired Victor strictly for this special project. At this stage of its life, the firm operates as a(n) __________, where it solicits the services of other companies on an "as needed" basis and then releases them when the job is done.
Virtual corporation
Staff employees _ line managers in meeting their goals
advise
Even though there are plenty of people unemployed, many companies have positions that go unfilled. A survey in Indiana revealed that 39% of companies surveyed say the reason positions go unfilled is because applicants ______.
are not qualified
Many companies are moving from a(n) __________, in which workers do only a few tasks at a time, to a(n) __________, in which teams of workers combine to produce more complex units of the final product.
assembly-line layout; modular layoutCorrect
Organizational ethics begins
at the top levels of management.
A(n) _ span of control allows one supervisor to be responsible for many workers whose work tasks are predictable and standardized
broad
A supervisor who is responsible for 40 workers at an auto assembly plant is said to have a _ span of _
broad control
Leveling the playing field for home-based businesses, ___________ has (have) made starting a home-based business much more affordable.
broadband Internet connections and other technologies
What type of behavior creates a hostile workplace environment but has little legal recourse?
bullying
Joylen recently started working at a major urban university. One of the first things her supervisor provided her with was a large white notebook that contained rules and regulations on just about every aspect of the university's business. As a recent business graduate, Joylen realized that the university operated in a(n) ___________ environment.
bureaucratic
The legal rules and regulations that govern the conduct of business is referred to as ______.
business law
When a firm like Target compares itself to Walmart to improve its practices or processes in order to become better than Walmart it is exemplifying benchmarking for a(n) _ purpose
competitive
When doctors, nurses, technicians, and anesthesiologists from different departments in the hospital work together to complete an operation this is an example of a:
cross-functional self-managed team
Companies that allow their managers to make key decisions to cater to local markets are _
decentralized
Aiden does not offer any direction to his employees regarding ethical behavior. Because of this, Aiden is putting his company at risk for which three of the following? (Select all that apply)
dishonesty conflicts of interest manipulation
positive balance of trade
exports>imports=(+)balance of trade
Chinese firm purchases an American company, the American company becomes a
foreign subsidiary
When Betsy Blackwell bought a mighty maid franchise she became a
franchisee
The number of businesses owned by immigrants, minority groups, and women has _____ in recent years.
grown
The principle of _______________ means that each person should know to whom they report, and that managers should have the right to give orders and expect others to follow.
hierarchy of authority
An important driver of change is customer expectations. Consumer today expect _ products and fast, friendly _ at a reasonable cost
high-quality; service
Government and business leaders are being held to
higher ethical standards than in the past.
A self-managed team:
is empowered to make decisions without management aprovval
Technical skills that apply to the business at hand are most often necessary at __________.
lower levels of management
New production techniques have
made it possible to custom-make products for individual buyers.
For a department to operate effectively, the organization must allocate it sufficient _ such as funds and personnel
resources
OSHA regulates the ______ of employees in the workplace.
safety
Built-right Manufacturing has a positive image in the community in which it operates. The company gives a percentage of its profits every year to support local charities and causes, its employees regularly volunteer within the community and it is committed to using sustainable manufacturing processes. The actions taken by Built-right manufacturing exemplify ______.
social responsibility
Regardless of what an individual believes about a particular action, if _____ judges it to be unethical or wrong, whether correctly or not, that judgment directly affects the organization's ability to achieve its business goals.
society
In a virtual corporation the replaceable firms are joined together on a(n) _ basis to create a flexible organization
temporary
A business plan for a new business does not need to include:
the names of the prospective lending companies.
In using a PERT chart to analyze tasks outlined to complete a given project, the critical path represents
the path of tasks that will take the longest to complete.
Small businesses have an advantage over large business in international trade in all these ways except:
their prices are usually lower due to low overhead.
The chain of command is the line of authority that moves from the _ of a hierarchy to the _ level
top; lowest
A negative balance of trade; a country's imports exceed its exports.
trade deficiet
Air pollution
usually the result of smoke and other pollutants emitted by manufacturing facilities
According to the textbook, one of the drawbacks of using venture capital is
venture capital firms may ask for a high stake in your business.
A _ corporation uses a networked organization structure in order to be flexible
virtual
Principles proposed by Weber and Fayol that are still useful in today's organizations include:
written rules, decision guidelines, and records staffing and promotion based on qualifications job descriptions
trade deficit
An excess of imports over exports
Which factor of production includes the machines, buildings, and tools used in the production of goods?
Capital
Which of the following is a false statement?
General consensus is that larger companies are more responsive to customer needs than smaller companies
Dave facilitated a hiring committee for his advertising company. Six employees (including two managers) met together to discuss applicants and select the finalists for a copywriter position in the public relations department. Although the head of public relations would have the final nod on the candidate that would ultimately be hired, the evaluative work of the committee was very important because this group would send forward those persons they believed would be good work colleagues. In setting up this type of hiring process, the head of public relations was utilizing a(n) __________ style of leadership.
participative
Acid rain
results when certain chemical compounds emitted by manufacturing facilities react with air and rain
A small business advantage is
the ability to quickly adapt to customer needs.
The U.S. unemployment rate is a key economic indicator because most of us need jobs to maintain our standard of living. A criterion used to calculate the unemployment rate is _________.
unemployed persons age 16 and over, who have been looking for work during the past four weeks
Identify which of the following would exemplify employee empowerment
An employee is able to offer free delivery to close a sale without manager approval Workers can approve a sale price without management approval An employee is able to take customer returns without manager approval
When your profitable franchise fails simply because other similar franchisees have failed, this is known as the
Coattail effect.
While many traditional measures of success revolve around the firm's financial performance, it is also important to gauge the satisfaction of the firm's dealers and end users, otherwise known as the firm's
External customers
If you have managerial skills and leadership ability, you also possess the personality to be an entrepreneur.
False
The United States government views entrepreneurship as a result of an individual's self-motivation. The government can do very little to encourage an individual to become an entrepreneur.
False
True or false: Neither line nor line-and-staff organization structures suffer from inflexibility
False
Venture capitalists prefer investing in smaller start-up businesses in order to reduce their overall risk.
False
Through the enactment of ___________ policy, the U.S. government collects tax dollars and then spends some of these funds to maintain the infrastructure of the nation, such as roads and utilities.
Fiscal
When a company departmentalize by areas of business like Japan, America, and Australia it is exemplifying departmentalization by:
Geographic location
The _ of control is the optimal number of subordinates a manager should supervise
span
Division of labor means
tasks are divided into areas of specialization among a group of employees
import duty
tax levied on a particular foreign product entering a country
Profits equal _____.
the funds available for business growth, after expenses and salaries are paid.
In 2010, Congress passed the Dodd-Frank Act, which includes a bounty program to provide incentives for ______.
whistleblowers to come forward with information
twenty years ago your parents invested in apple
your parents will only lose the value of their shares
Select the questions to consider when determining whether an action is ethical. (Select all that apply)
How does this activity fit with your own beliefs and values? Are there legal restrictions? Would this activity be accepted by your co-workers? Is this action customary in your industry?
Which of the following would qualify as staff personnel in the line-and staff organization
Human resource managers Legal advisers Marketing research analysts
A firm that has a marketing department organized geographically and a production process organized by function has which type of departmental structure
Hybrid
America purchases over fifty percent of its crude oil and petroleum products from other countries. This is an example of
IMPORTING
Buying products produced in another country is known as
Importing
Small businesses often have advantages in international markets. One advantage is
Individualized customer service as opposed to impersonal corporate bureaucracies.
Even though he is not a manager, Mr. Klein is the one to see in the company when there is something you need. He will get it quickly and can avoid the red tape that often delays action. Mr. Klein is also the one to see if you need advice or help. Mr. Klein is an important member of the firm's
Informal organization.
A few months ago, Grandma's Country Kitchen, a large nationwide chain of restaurants, purchased one of its competitors, A Taste of Home, for $600 million. A Taste of Home stockholders got a very fair deal for the stock they owned in the company. However, it was disclosed that somehow a member of Grandma's management team mentioned the deal to five of his relatives and several friends. They quickly bought shares of A Taste of Home and purchased the stock before the acquisition became public. These actions are
Insider trading
_______ is an example of a conflict of interest.
Insider trading
A small business
Is considered small relative to other businesses in its industry.
Max Weber's principle of organization resembled Fayol's. In addition, Weber emphasized which of the following principles
Job descriptions Consistent procedures, regulations, and policies Written rules, decision guidelines, and detailed records
Which statement reflects an advantage small businesses have over large business in international trade?
Overseas buyers like dealing with individuals rather than large bureaucracies.
In the past, the major purpose of organizational design was to facilitate the needs of management in making their job easier, rather than
Pleasing customers
When Electra decided to produce its "pedal-assist" motor bike it had to adhere to speed regulations. The company found out, however, that safety regulations differ greatly among various countries and it opted to use the U.S. standard which calls for a lower speed motor. This is an example of how _______ forces can affect global trade.
REGULATORY
In what way is small-business management and large-business management similar in practice?
Similar to large businesses, small business have concerns about obtaining capital and good marketing and management practices.
Why do experts agree that small-business management and large-business management are similar in practice?
Similar to large businesses, small business have concerns about obtaining capital and good marketing and management practices.
When referring to risk, which of the following statements are reasonable?
Sizeable risks can lead to substantial profits, if the business takes calculated risks and captures good opportunities.
What do studies show about the relationship between social responsibility and profitability?
Social responsibility is associated with improved business performance.
Which form of business ownership is the most common in the United States?
Sole proprietorship
The Republic of South Africa exports edible fruits and nuts into the common market known as the European Union, and imports from the European Union other products which South Africa could produce but at a higher cost than what it costs the Europeans to produce. This practice follows the premise of _________________.
The Theory of Comparative Advantage
One of the results of the increase in the older population of the United States is:
a future problem for the Social Security system.
Physical threats, false accusations, use of profanity and yelling at others all fall under which category of organizational misconduct?
abusive behavior
An organization must remain flexible and able to _ to changing times and be successful
adapt
Total flow of money into a country less the total flow out of that country over a specified period of time.
balance of payments
A nation's ratio of exports to imports.
balance of trade
When a snowboard company consulted a cable television company to learn how to braid layers of fiberglass and carbon for its snowboards it was an example of _
benchmarking
XYZ Company desires a successful product launch for its new product venture. Looking outside of its industry, the company solicited the advice of companies JKL and MNO, known for successful product introductions in past years. The business term used to describe the practice of looking toward others to develop a model approach is called
benchmarking
Money given in exchange for a special favor is called a _____ and benefits an individual or a company at the expense of other stakeholders.
bribery
The foundation of the U.S. economic system is considered to be:
capitalist
Global Warming
carbon dioxide in the earths atmosphere prevents the earth's surface from cooling
A(n) _ organization structure maintains the decision- making authority at the top level of management
centralized
If the structure of an organization is a tall pyramid, it would be likely to have _ decision making
centralized
Employees at all levels often resist _ because they are used to doing their jobs in ways they know
change
The result of the increase in the rate of change in the business environment from causes such as natural disasters and global competition has been that companies must:
change more quickly than ever before adapt to new technologies
Natalia notices that one of her coworkers takes extended lunch hours and often leaves the office early. In deciding whether or not to report this behavior, what should Natalia do first?
check her company's policies and codes of ethics regarding this behavior
The recent financial crisis created problems for companies because:
companies had to cut managers and lay off many workers.
the impact of war and terrorism on us business is that
companies have increased organizational costs, including insurance costs
Brazil exports coffee into the common market known as the European Union and imports from the European Union other products that Brazil could produce but at a higher cost than what it costs the Europeans to produce. This practice follows the theory of
comparative advantage.
In a free-market economic system, if consumers perceive the price dfor a state-of-the-art smartphone as too high for the value received, they are likely to avoid buying it. In the same light, if the __________.
consumer's desired price is too low, producers may limit the amount produced
Randy works in an auto plant in which parts constantly travel along a conveyor belt and each worker performs his/her specific job. This describes a(n)
continuous process.
Dell Computer has an arrangement with Quanta Computer in Taiwan to makes its notebook PCs, on which it puts the Dell name. This is an example of
contract manufacturing
Production of goods by one firm under the label or brand of another firm.
contract manufacturing
A manager's need to exert tight controls on subordinates (span of control) is most accurately captured by which of the following statements?
control will decrease as the manager gets to higher levels in the organization and work becomes less standardized.
Measuring performance relative to objectives and standards is part of ___________.
controlling
When Fayol refers to subordination of individual interests to the general interest, he believes that workers are to think of themselves as a(n):
coordinated team
The extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their stakeholders is referred to as ______.
corporate citizenship
Google is a company that provides many services and a relaxed atmosphere for its employees to keep them engaged at work. That is a strong feature of its:
corporate culture
The use of outsourcing is primarily designed to reduce _____________ for the business that is implementing this strategy.
cost
When your profitable franchise falls simply because of other simialir franchise have failed . This is known as the
cottail effect
A form of international bartering in which several countries each trade goods or services for other goods or services.
counter trading
Groups of employees from different departments who work together on a long-term basis and are empowered to make decisions without management approval are
cross-functional self-managed teams.
To build the next generation of gaming software, Fun Time Gaming, Inc., put together a ______________ structure. The structure consisted not only of employees but also suppliers, distributors, and customers, who joined the company experts to pursue the company's objectives.
cross-functional team
Groups of employees from different departments who work together on a long-term basis are called:
cross-functional teams
A bank has a department for customer accounts and another department for corporate accounts. The bank is departmentalizing by _
customer group
Empowering front line workers help organizations adapt to change by responding more quickly to its:
customers
The process of setting up individual departments to do specialized tasks is called _
departmentalization
The first step in the process of organizing a business is to:
determine the work that needs to be done.
Deliberate downward adjustment to a country's exchange rate relative to other currencies.
devaluation
The lowering of the value of a nation's currency relative to other currencies is an economic force called
devaluation
Young people who have grown up with the internet are referred to as:
digital natives
socialist systems tend to
discourage the best from working as hard as they can
According to Fayol, the _ of _ principle states that functions are to be divided into areas of specialization
division labor
You inherited 300 shares of AT&T stock from your Uncle Fred. As you contemplate selling the shares, your accountant informs you that the company pays a generous dividend and advises you to start watching the firm's profits. When you are awarded the first dividend, you learn that it is considered a source of income and you will be taxed on that amount. You find this bothersome because the firm paid the dividend from after-tax profits (these dollars were already taxed). This phenomenon is called
double taxation
Businesses must first be responsible to their owners, who are primarily concerned with ______.
earning a profit
Juan has many business ideas that could satisfy the unfulfilled needs of people who live in his community. However, there are laws that govern the type of businesses that private citizens can own and business taxes are high because the government subsidizes many social programs in his nation. In this case, challenges in the _____ environment increase the risk of Juan starting a business.
economic and legal
Wind power, solar power, and nuclear power are all forms of alternative _____ sources that businesses are turning to in order to reduct carbon emissions.
energy, power, or fuel
According to Fayol's traditional management rules, line organization managers:
enforce discipline for those they supervise issue orders to those they supervise
A(n) __________ is a group of experienced professionals from different areas of business who join together to develop, make, and market a new product.
entrepreneurial team
While unemployment is seen as an economic issue, it carries _____ implications when the gap between rich and poor is large.
ethical
Codes of _______ are formalized rules and standards describing expected employee behavior.
ethics
When seeking financial backing from a venture capitalist, a small business owner should realize that the venture capitalist will
expect an ownership stake in the company in exchange for financial backing.
Departmentalization by _ may create groupthink, where all members think alike and so make poorer decisions
function
The idea of facility layout is to
have offices, machines, and storage areas in the best position to enable workers to produce goods and services for their customers.
The disadvantages of a line structure for large businesses are:
having lengthy lines of communication being too inflexible the lack of expertise to solve complex problems
At a young age, Eliza's coaches were confident she had the potential to be a world-class swimmer. They encouraged her parents to do as much as they could to further develop her skills, because a future in Olympic swimming could set her up for life, including promotional endorsements and coaching positions when her competitive days were over. After four years on an athletic scholarship and Olympic experience under her belt, she chose a different path. With her savings and personal connections, she rented a corner building in a bustling San Francisco neighborhood and pursued her dream: a surf shop business. After several successful years, Eliza was certain that Adam Smith would smile because ______________.
he laid the foundation for her success: she had freedom of choice
In order to protect its local farmers, Japan has imposed a(n) _______ to limit the amount of rice that can be imported from other countries.
import quota
Blake, an operations manager at a plastics processing plant, notices that there is significant scrap and inefficiencies in the plant's operations. Which technique would he be most interested in implementing if he wanted to increase capacity while decreasing the need for resources?
lean manufacturing
Production workers, distribution people, and marketing personnel who are responsible for directly achieving organizational goals are called _ personnel
line
to encourage entrepreneurial growth governments might
Pass laws that enable business people to write contracts that are enforceable in court
Payments, gifts, or special favors intended to influence the outcome of a decision are considered ______.
bribery and are unethical
The activities that independent individuals, groups, and organizations undertake to protect their rights as consumers is called ______.
consumerism
trade restrictions-tariff
import duty, revenue, protective
Citizens of socialist nations can rely on the government to provide all of the following except:
money to start a business
G.E. owns and operates hundreds of companies worldwide with facilities in Europe, India, China, and the U.S.—to name a few. G.E. is an example of a(n)
multinational corporation
Countries participate in foreign trade because
no nation can produce all of the products its people want and need.
All managers do planning. Andrea is a general manager for a large toy store. Each day she plans the number of employees she will have in each department, including the number of cashiers. She plans the break schedules and the freight delivery schedules. In the business world, we refer to this as ________ planning.
operational
All managers do planning. Allison is a general manager for a large toy store. Each day she plans the number of employees she will have in each department, including the number of cashiers. She plans the break schedules and the freight delivery schedules. In the business world, we refer to this type of planning as ___________.
operational planning
Fayol's _ principle states that materials and people should be placed and maintained in the proper location within an organization
order
Partnerships refer to more than one owner. A limited partnership
Consists of general partners and limited partners, at least one of each.
Government order to restrict or prohibit commerce with a specific country.
embargo
The stopping of all trade with a particular country is called
embargo
Among the advantage of a matrix structure are that it:
encourages creativity gives manager flexibility in assigning people to projects
If a company wants to link the computerized functions of all its divisions and subsidiaries into an integrated software program that uses a single database in order to develop a more integrated system that improves customer service, it would use
enterprise resource planning.
The Milford Bottling Company recently became certified as an ISO 14001 company. Which criteria would decision makers evaluate for this award?
environmental improvement plans at the brewery
What is likely to result when managers or employees of an organization have ethical beliefs that differ from those of the organization?
ethical conflict
If your supervisor directed you to enter false information into a sales order book and told you if you refused that you would lose your opportunity for promotion, you would probably consider this situation to be a(n)
ethical dilemma.
Your company is aware of major flaws in the design of one of its products. Your supervisor directed you to lie to a client about the defects in order to get the sale, knowing that the product would be discontinued and no longer supported by the company. Your supervisor also told you if you refused you would lose your opportunity for promotion. You would probably consider this situation to be a(n)
ethical dilemma.
An identifiable problem, situation, or opportunity that requires a person to choose between actions that may be evaluated as ethical or unethical is called a(n) _________.
ethical issue
Trevor is short of his sales goal this month. He knows if he adds small items to his customer's orders, they most likely won't notice the small increase and then he would be able to make his goal. This exemplifies a(n) ______.
ethical issue
Fairness and honesty are at the heart of business _____ and relate to the general values of decision makers.
ethics
Organizations that adopt integrity-based ethical initiatives recognize that ______.
ethics should be a part of core organizational values
Rowe Furniture Company's management dismantled the assembly line, reduced the number of supervisors, and empowered line employees with the freedom to make sofas as they saw fit. This is an example of a(n):
expansion of the span of control
Reliable Industries is a maker of component parts in heating and cooling ventilation systems. The company is looking for a site on which to build a new production facility. Major considerations the company must take into account are that any area selected has adequate rail access and is at the hub of major highways to quickly move products. Reliable is in the process of
facility location.
When the value of exports from a country exceeds the value of imports into that country, there is a _______________.
favorable balance of trade
If more and more countries decide to enact trade protectionism, then CH2M Hill would probably realize
fewer opportunities and revenue
The Dodd-Frank Act was passed to reform the ______ industry.
financial
The American Society of Civil Engineers published a report card for America's interstates. It was reported that road repairs cost the American taxpayers $67 billion per year. Through the enactment of ___________, the U.S. government collects tax dollars and then spends some of these funds to maintain the infrastructure of the nation. Increasing taxes has the effect of drawing money away from the private sector.
fiscal policy
An advantage of a _ organization structure is that lower level employees have authority to respond more quickly to customer needs
flat
An organization structure that has few layers of management and a broad spend of control is called a(n) _ organizational structure
flat
During the past recession, Cali-Bration Company created a __________ organization, when it restructured and eliminated several middle management positions and broadened the span of control for the remaining managers. As it emerged from the recession, Cali-Bration realized that technology permitted the remaining employees to be just as responsive to customer needs as the firm was prior to restructuring.
flat
Departmentalization by process enables employees to do a better job because they can:
focus on learning few critical skills
Even though the nation faces political instability, the island of Frollik with its wide, expansive beaches is a destination hub for cruise lines. Recently, a large theme park company showed strong interest in buying land in Frollik with the intent of building a park targeted toward families. The company wants to make a commitment to Frollik, including the hiring of several hundred local employees. They're using a global marketing strategy called ____________.
foreign direct investment
Free-market capitalism includes four basic rights: the right to own property, the right to own a business and keep the profits; the right to freedom of competition; and the right to
freedom of choice.
In a __________, members democratically control the business by electing a board of directors that hires professional management to run the business.
Cooperative
Which dimension of corporate social responsibility includes charitable donations made to nonprofit groups of all kinds?
Corporate philanthropy
When a tornado hit a town in southern Texas, the people that lived there needed the basics: food, water, and shelter. The owners of a family-owned restaurant in Houston drove several hours with a van of employees, equipment, and food to donate what they could to help the storm victims. The business term we use to describe this philanthropic action is ________, where a company donates what it does best to help make a situation better.
Corporate social initiative
A surgical team has various skilled personnel that work together on a long-term basis to accomplish daily surgeries. A group like this represents what type organizational model
Cross-functional self-managed teams
Which of these actions is least likely to restore the trust of the American public in the free-market system?
Defining the concept of ethics more narrowly and making the definition closer to the definition of legality.
Which Fayol principle states that the amount of decision-making power vested in top management should vary by circumstances
Degree of centralization
With regard to socially responsible behavior, American businesses are
Demanding socially responsible behavior from international suppliers, particularly in the areas of environmental standards and human rights issues.
The first step in developing a knowledge management system is
Determining what knowledge is most important.
Knowing the importance of employee relations, what is the likely result of a company that does NOT listen to employee grievances or treat employees fairly?
Difficulty in attaining company goals
Which business environment determines whether people believe they can afford to take a financial risk and start a business?
Economic and legal
The way in which a country's resources are utilized to produce goods and services and the way those goods and services are distributed among those who desire to have them depends upon the
Economic system under which the country operates.
The reasons for implementing departmentalization include:
grouping all of those doing the same task together assigning people with the correct knowledge to do each task
Eddie started out with one small print shop. His business has grown so much that he now has two other branches across town. Eddie has found that having three locations has greatly increased his production levels. He also notices that the price he pays for supplies (paper, ink, and packaging materials) has gone down considerably since he can now buy these items in bulk quantities. This exemplifies the principle known as
Economies of scale
Which characteristic of being a leader is exhibited by the leader's willingness to transform the way the company does business so that it becomes more effective and efficient?
Embrace change
The principle of organizational structure where one person is at the top and the other managers are ranked sequentially from the top down is called:
hierarchy
Which of the following is NOT a part of an integrity-based ethics code?
Emphasizes strong penalties for wrongdoers
Which of the following are elements of a typical organization chart
Employees First-line supervisors President
a few years ago, in order to gain market share, blackboard
horizontal merger
A manufacturer made the decision to buy less expensive materials from another supplier which resulted in the reduced quality of its products. As a result, company sales dropped and many retailers refused to carry the product line. This is an example of ______.
how negative impressions of a business can affect its ability to achieve its goals
Limiting the quantity of imports of a product to protect a domestic industry against foreign competition.
import quota
During the past five years, the nation of Andolvia began a massive undertaking: teaching farmers how to successfully grow and harvest peanuts. The government subsidized the building of peanut processing plants, where private businesses are now producing peanut butter and other products of nutritional value. Although the Andolvia government has not completely banned the importation of peanuts, it has placed ________________ on the number of peanut products that the nation can import each year, in order to protect Andolvia's young peanut industry.
import quotas
revenue
imposed solely to generate income
protective
imposed to protect domestic industry from competition
The CPI (consumer price index) measures ________________ and ________________.
inflation and deflation; includes energy and food as part of the market basket of goods and services that it measures
A.J. was a newly hired attorney for Idle Time Gaming, Inc. Even though he reported directly to the president of the company, A.J. noticed that the president always had time to converse with the director of sales, calling on him to get a pulse on legal/regulatory issues that, as the company attorney, A.J. could have probably handled. A.J. also noted that the HR manager's administrative assistant was the go-to person for a number of things that would make life easier at work. A.J. was recognizing the _________________ culture at Idle Time Gaming.
informal organization
Even though he is not a manager, Mr. Bilko is the one to see in the company when there is something you need. He will get it quickly, and can avoid the red tape that often delays action. Mr. Bilko is also the one to see if you need advice or help. Mr. Bilko is an important member of the firm's:
informal structure.
The executive summary section of the business plan contains
information that will capture the attention of bankers and other investors who receive many business plans every day.
A Japanese auto company recognized the quality of air-conditioning systems that a U.S. company in Indiana successfully manufactured for the U.S. auto industry. Rather than build its own, it ______________ the air-conditioning component of its models to the U.S. company, which provided several jobs for skilled tradespersons in that state.
insourced
The first day on the job waiting tables at a popular restaurant, Norah noticed that when one member of the waitstaff was serving a very large party, the other waiters would help carry food to the tables and even check to make sure water glasses were filled. Although these actions were not part of the mandatory waitstaff training, Norah perceived that waitstaff members who were not helping out were not viewed as team players by the majority of employees. Norah was observing an example of the ________ ethics followed at this organization
integrity-based
Designing and making custom-made guitars is an example of which process?
intermittent process
A manufacturer who uses just-in-time inventory management shares information in real time with its supplier. This is an example of transparency between firms using _ technology
internet
When an organization chart is turned upside down with top management placed at the bottom this is usually known as a(n):
inverted organization
An automotive assembly plant in Kentucky purchases several thousand unassembled parts for automobiles and then performs final assembly of the vehicles before delivering them to dealers all over the nation. Purchasing parts several days or weeks before they are assembled would increase the total cash outlay the plant has tied up in inventory at any given time. In order to reduce the expense of large inventories, most assembly plants have successfully adopted __________ inventory systems.
just-in-time
The current trend is to move away from _______ -based ethical initiatives in organizations to _______ -based initiatives that make ethics a part of core organizational values.
legally; cultural
If the employees of San Simeon Company successfully borrowed a large sum of money and purchased the firm from its current owners, we would call this event a ___________.
leveraged buyout
Business arrangement in which one company gives another, permission to manufacture its goods in exchange for a fee.
licensing
At Oldies but Goodies, a store that buys and sells vintage record albums, there is only one general partner, Alexa. She spends all her time running the business and makes all the decisions. Alexa's mother and brother put up money for her to buy the store, but they work full time at other jobs and have no management say in the running of Oldies but Goodies; they, however, share in some of the profits. This is an example of a
limited partnership
In line- and- staff structures, staff managers provide advice and support to _ departments on specialized matters such as finance, engineering, human resources, and the law
line
When it comes to ethical behavior,
many Americans decide what's ethical based upon the situation in which they find themselves.
Four organization designs include: line, line and staff, _, and cross-functional teams
matrix
In a _ organization, project managers are in charge of teams made up of members from several departments
matrix
"We believe in creating loyal customers by providing a superior experience at a great value. We are committed to direct relationships, providing the best products and services based on standards-based technology, and outperforming the competition with value and a superior customer experience." This statement is a part of Dell's:
mission statement.
Jason's mom specifically asked for a CIP cast iron pan for her birthday. As Jason scanned the stock in two department stores, he found ten different brands, none of which were CIP. When he found CIP in a kitchen specialty shop, he was challenged to tell the difference between his mom's choice and the others. In his business class, he learned about ______________, where many sellers may be offering very similar products. Through various means, each seller differentiates his product from the competition.
monopolistic competition
Studies have shown that organizations that employ a diverse set of leaders tend to be _____ profitable. (more/less)
more
The sum of all the federal deficits over time is known as the:
national debt
A visit a store where clerks are uniformly glum, indifferent, or test. This is an organization where no one cares about service quality, an example of the _ impact of organizational culture
negative
Whistleblowers can be helped by protecting them from ______.
negative treatment on the job
Because of technology an organization is no longer self-contained. As a result the modern organization chart would show people in different organizations and indicate how they are _
networked
To understand the formal reporting relationships among people in a company one may consult the company's:
organizational chart
The widely shared values within organization that foster unity and cooperation to achieve common goals is called the:
organizational culture
Cara started a small business a little less than 10 years ago. The business employed several social workers and nurses that visited and cared for persons who had left hospital care, but were not quite ready to be on their own at home. As the CEO of the firm, Cara decided it was time to hire a business operations manager and a marketing manager to handle the details of the business. Which of the following functions of management was Cara primarily performing?
organizing
Regardless of the size of the business, the principles of _ its structure remain the same
organizing
The strategic alliance between Coca-Cola and Nestlé has spanned a period of over 20 years due to the fact that both companies benefit from this arrangement. As a global marketing strategy, an important characteristic of a strategic alliance is _____________
participant companies do not share costs or profits
The formal organization details lines of:
position authority responsibility
Real time is the _ moment or the _ time in which something takes place
present;actual
A firm that makes tables may have one department that cuts the wood, another department that assembles the wood into tables, and a third department that stains the tables. This firm would departmentalize by _
process
In order for the value of goods and services to be counted as part of a nation's gross domestic product, the goods and services must be ___________.
produced within the physical boundaries of a particular nation
Efficiency means _____.
producing items using the least amount of expenses.
An appliance company may have a refrigerator department, a washing machine department, and a dishwasher department. This company is departmentalizing by _
product
A cross-functional team that is working on the development of a new prosthetic device for amputees should include:
product designers amputees who will use it parts suppliers for medical devices
A number of studies have found a direct relationship between social responsibility and _______ as well as a link that exists between employee commitment and customer loyalty.
profitability
Employees expect businesses to ______. (select all that apply)
provide a safe workplace keep them informed of what is happening in their company pay them adequately for their work
importing
purchasing raw materials or products in other nations and bringing in other nations and bringing them into one's own country
when going into a partnership, you should always
put all terms of the partnership into writing in a partnership agreement
Recently, companies have been changing the organization structure to focus more on front-line employees like department store clerks, bank tellers, or cashiers. This focus has been implemented in many organization using an inverted _ structure
pyramid
One of the key advantages of the franchise
receiving management and marketing expertise from the franchise
True or false: A company is benchmarking when comparing its practices, processes, and products against only the best companies in its region
False
True or false: An informal organization system follows the organization chart's lines of authority
False
True or false: Outsourcing is a process used by larger firms, but it has not become a prevalent practice used by small firms
False
True or false: The key to success for companies in a capitalist economy is to remain inflexible during times of change
False
True or false: The minimum number of subordinates a manager can supervise is called span of control
False
The line organization has direct lines of _ that extend from the top managers to employees at the lowest level of the organization
responsibility communication authority
Land pollution
results from the dumping of residential and industrial waste, strip mining, forest fires, and poor forest conservation
Water Pollution
results when the burial of industrial waste leeches into underground water supplies
A firm that is viewed negatively may have a hard time ______. (select all that apply)
retaining employees attracting investors building customer relationships
Charlie Hayes owns his own landscaping business, including all the land on which they grow their plants, and all the equipment. Charlie's son Josh has just graduated from college with an architectural landscaping degree. Charlie hopes to retire in a few years and turn the business over to Josh, and Josh will inherit the business when Charlie dies. This is an example of the ______________ in a capitalist system.
right to private property
in his search for a franchised business that would satisfy his passion
royalty
Entrepreneurs emphasize the importance of believing in your own ideas because in the process of developing those ideas you are likely to hear from skeptics. Characteristically, they also know that success or failure is "on them." These attributes are described as
self-directed and self-nurturing.
exporting
selling and shipping raw materials or products to other nations manufacture products in home country and export them to foreign markets -relative low risk -export-import merchant -document *letter of credit*bill of lading*draft
U.S. companies that operate abroad, particularly those who contract with foreign companies, are now ________ human rights and environmental standards followed by U.S. law.
separating themselves from suppliers who violate
The purpose of an organizational chart is to:
show relationships among people show who is accountable for the completion of specific work show who reports to whom
The You Design, We Build Company makes custom furniture of all kinds. The firm has evolved into a big business due to quality and innovative work. Recently, top management asked company departments to list and evaluate the kinds of socially responsible efforts conducted internally and externally in the business and to list negative occurrences that supervisors observed. Top management is essentially conducting a(n)
social audit.
The benefit of using __________ to communicate a business's CSR efforts to the public is that it allows companies to reach broad and diverse groups directly in a low-cost, efficient way.
social media
You studied for two hours each day, for an entire week, before your first marketing exam. When you turned in the test, you felt confident that your effort would pay off. At the next class meeting, your instructor said she was considering curving the grades because the class average was lower than she had anticipated. All of a sudden, your 98% score did not have the same impact that it did when you first saw it! Now the guy next to you that got an 84% is likely to have an "A" grade too. As you analyze this situation, you realize that it parallels an economic system such as ________________, where even if you work harder than another person, you are likely to realize the same benefit.
socialism
According to Geert Hofstede, who has spent a lifetime studying differences in cultures, the Chinese have a long-term orientation, meaning they are patient savers and are willing to forgo things today, for a better future. Americans typically have a short-term orientation. They prefer more instant gratification and are not as willing to save for the future. This difference in values between the Chinese and Americans is a _____________ attribute that may represent a challenge in future global trade.
sociocultural
1. When GM introduced the Chevy Nova in South America, it was perplexed to find that, despite its best efforts, it wasn't selling many cars. GM finally realized that "nova" in Spanish means "it won't go." This is an example of a(n) _______ force that adversely affected GM in its globalization efforts.
socioculturism
If the owner of a lawn-moving company were to take the division of labor a step further and divide the mowing task into mowing, trimming, and raking this would exemplify job _
specialization
The management function of ___________ includes hiring, motivating and retaining the best people to accomplish the company's objectives.
staffing
Historically entrepreneurs in the U.S.
started many small firms that later became major corporations employing thousands of workers.
Insider trading is the buying or selling of _____ by insiders who possess material that is still not public.
stock
Pharmaceutical giant Eli Lilly partnered with the Belgium-based company Galapagos to develop treatments for osteoporosis. This is an example of
strategic alliance
Miriam Njunge wants to start a small business importing some products from her native Kenya. Before she starts, some good advice to Miriam would be:
talk to others who have been or are in the import business.
Tax on imported goods used by governments to reduce imports and protect domestic industries.
tariff
One solution to the _ or short-term nature of matrix teams is to establish long-lived teams and empower them to work closely with suppliers, customers, and others
temporary
Imagine the following: New sources of energy have become marketable and the industries involved have hired thousands to operate the emergence of new businesses. Construction companies cannot build homes fast enough for workers in the energy industry. Due to increasing salaries in several other industries that partner with energy companies, the demand for everything from food to entertainment to travel has increased. High demand has brought about shortages in some product categories. To help manage the situation in the short term, ___________.
the Fed will likely increase interest rates
The U.S. award that recognizes firms that meet customer needs, produce high-quality products, and have customer satisfaction ratings that are better than those of competitors is known as
the Malcolm Baldrige National Quality Award.
Recently, two nations experienced a trade dispute over copyright issues. Country "A" accused Country "B" of violating international copyright laws. Since both were members of __________, they appealed to this organization to mediate the dispute
the WTO (World Trade Organization)
comparative advantage
the ability of an individual, a firm, or a country to produce a good or service at a lower opportunity cost than competitors
absolute advantage
the ability to produce a specific product more efficiently than any other nation
Gretchen planned to open a cupcake shop in a resort town on the west coast. As she pondered her organizational set-up, she decided she would need four employees to specialize in the creation and production of the cupcakes, and three employees to greet, serve, and sell to customers. One or two of her workers were designated as supervisors. Another preliminary organizational decision that Gretchen will most likely tackle is
the allocation of resources within her operation.
As a strategy for reaching global markets, licensing provides the licencor with several advantages. One advantage is _____________.
the cost of producing and marketing the product in a foreign market is significantly reduced.
Most businesses follow a logical process when performing the planning function. It is important to understand ______________________, before embarking upon creating future long-term goals, objectives, and strategies.
the current situation
Jacinta has high individual moral standards and values but the opportunity still exists for her to engage in misconduct in her company. What key factor would keep Jacinta from behaving unethically?
the ethical behavior of her managers and co-workers
The value of one nation's currency relative to the currencies of other countries is referred to as
the exchange rate.
A brother and sister team, Camilla and Arturo, took over the family's Mexican restaurant business when their father died. Camilla operated one of the three locations, kept the firm's books, and ordered supplies and equipment for all three locations. Arturo operated the other two restaurants. Arturo thought he should get two-thirds of the company profits because he was responsible for the profitability on two out of three locations. Camilla saw it differently because she felt her responsibilities spanned the entire business. What's important for them to remember in their situation is
the fact they both shared unlimited liability, and if one or the other failed to meet their financial commitment, the other partner would be liable for all debts
the resources used to create wealth are collectively referred as
the factors of production
Sovereign wealth funds (SWFs) are a fast-growing form of foreign direct investment. The size of these funds and the fact that they are investments from government coffers of other nations might be a cause for concern. More specifically, some fear __________
the governments who offer these funds may obtain sensitive technologies or gain control of strategic resources
According to your text, ethical decisions in organizations are influenced by which three key factors?
the influence of managers and co-workers the opportunity to engage in misconduct individual moral standards and values
Spending work hours looking at personal email, submitting personal expenses on company expense reports and using the company copier for personal use are all examples of ______.
the misuse of company resources
dumping refers to
the practice of selling products in a foreign country at lower prices than those charged in the producing country.
Managers accustomed to more traditional forms of organizational structures may have difficulty adapting to:
the rapid rate of change in virtual organizations
At Six City Wellness Center, Greg operates a new state-of-the-art MRI scanner that serves approximately 10 patients during his 8-hour shift. Patients are scheduled for various lengths of time, depending on which part(s) of their body requires scanning. The image quality is significantly superior to what it was on previous scanners, but the number of patients served per day remains the same. This situation attests to the fact that ____________.
the service sector has seen improvement in quality of service, but productivity remains about the same
balance of payments
the total flow of money into a country minus the total flow of money out of that country over some period of time -payment by foreign governments -money spent by foreign tourists -aid to foreign governments -imports and exports -all other receipts and payments -investments
Balance of trade
the total value of a nation's exports minus the total value of its imports over some period of time
While unemployment is seen as an economic issue, it carries ethical implications when ______.
the unemployment gap between rich and poor is large
Studies have found that firms have a better chance of generating stronger profits when ______.
there are equal numbers of male and female managers
Although successful entrepreneurs are more tolerant of uncertainty,
they strive to take calculated risks.
When it comes to fairness and honesty, what two things are expected of businesses?
to follow applicable laws and regulations to avoid harming customers, employees, clients or competitors
McDonald's moved from a centralized authority to a more decentralized authority primarily due to _
today's rapidly changing markets, and global differences in consumer tastes
A positive balance of trade; a country's exports exceed its imports.
trade surplus
If the value of all the goods/services that United States exports is greater than the value of all that it imports, then this is referred to as a
trade surplus
The nation of Andulasia exports $50 million worth of products and services and imports $44 million worth of products and services. Andulasia has a(n) _____________.
trade surplus
When the value of its exports is greater than the value of its imports, a country experiences
trade surplus
The pyramid in this image depicts a(n) _ organization
traditional
A key component of ethical communications from companies to consumers is that the communication be ______.
truthful
After 8 years of working for a company that installed underground sprinkling systems for golf courses, Jake was ready to venture into his own business. As he prepared his SWOT analysis, he evaluated where he stood at this time. He was fortunate to have $100,000 financing to get the business under way. He knew of three skilled installers who were willing and interested to work for him, and he was aware that new construction was at an all-time low, with several residential properties being foreclosed. In reviewing his list, you would categorize these events as __________.
two strengths and one threat
Accountants at Business Solutions, Inc. work with state-of-the-art systems that create financial statements every day, but the interpretation and analysis of those statements can take several hours. The accounting department consists of financial, managerial, and tax accountants. One advantage of departmentalizing the accountants is
For efficiency; the employees can coordinate work within the function.
Martin Fittings was a small manufacturing company that made shut-off valves for gas pipe used in home and building construction. Martin purchased the National Gas Pipeline Company, which was Martin Fittings' largest customer. This strategic decision bringing the two companies together is called a
vertical merger
A group of field engineers perform installation and repair on large pieces of equipment that are used in the process of making gasoline at petrochemical plants. Each day, the on-site engineer reviews the __________ to determine which parts of the project are in progress and which have been completed. This bar graph also shows the engineer which equipment must be installed before other parts are started.
Gantt chart
When carbon dioxide collects in the earth's atmosphere, it traps the sun's heat and prevents the earth's surface from cooling. This is referred to as _____ _____.
Global Warming
______ refers to creating a positive association with environmental issues for an unsuitable product, service, or practice.
Greenwashing
Maribeth has first-hand knowledge that her supervisor is engaged in insider trading. At a minimum, this practice goes against company policy and may even be illegal so Maribeth reported her supervisor to the Securities and Exchange Commission. Maribeth is acting as a ______.
whistleblower
Employees who report concerns about a unethical company practices to a government regulatory agency are called ______.
whistleblowers
When a supervisor is responsible for 20 or more workers assembling computers or cleaning movies theaters it is an example of a(n) _ span of control
wide
Fayol's equity principle states that a manager should treat employees and peers:
with respect and justice
Which of these industries is among the fastest growing today?
Health
Jake serves on a committee of employees who were charged with selecting three co-workers to honor at the holiday banquet. One employee whose name was at the top of everybody's list was instrumental in helping another employee who failed to wear his protective headgear to avoid suffering a serious head injury. Although this was a noble act, Jake knew that the hero was frequently negligent about wearing his own headgear. Jake knew that several other employees followed strict company policy every day and always wore their headgear; yet, they were not being acknowledged for their compliance. According to Norman Vincent Peale, which of the following questions should Jake refer to as he proceeds to make an ethical decision?
How does the action I am proposing to take make me feel about myself?
Which question is included as one we must ask when faced with an ethical dilemma?
How will it make me feel about myself?
Which three are outcomes of having effective business ethics programs and organizational ethics initiatives?
Increased customer loyalty Increased profitability for the firm Greater employee satisfaction
What type of ethical code serves to define the organization's guiding values, create an environment that supports ethically sound behavior, and stresses shared accountability?
Integrity-based ethics codes
Which person is engaged in a misuse of company time?
Joel spends an hour or more a day surfing the web and checking his social media sites.
Contractual agreement of 2+ companies for the purpose of executing a specific business undertaking.
Joint Venture
When President Obama was elected, the U.S. economy was in trouble, and had slid into a recession. Consumer spending was low and getting worse. In an effort to stop the decline, President Obama proposed an economic stimulus package which included government spending on roads, bridges, and schools, among other things, and a tax cut that each U.S. worker would see in her or his paycheck. Apparently, President Obama was a proponent of:
Keynesian economic theory
While on a trip to South Africa, Erin was impressed with colorful woven outdoor placemats, floor mats, chair cushions, and umbrellas that local artisans were weaving. Upon returning to the U.S., she was confident that U.S. consumers would be as intrigued by these accessories as she was. Erin decided to explore the possibility of starting an importing business to bring these products to the U.S. Which of the following statements seems to be good advice for Erin?
Learn from others who import goods from abroad, and particularly from Africa
The branch of economics that looks at the operation of a nation's economy as a whole is
Macroeconomics
Which of the following departments could be considered by a company approaching departmentalization by functions
Marketing Production Accounting
Metro Motors was awarded a bid to build an energy-efficient motor for a large government heating and cooling project. The requirements of the project included a timeline of one year to build and deliver the system. In order to provide a quality product and stay within the time requirements, Metro Motors set up a __________ organization whereby employees from various functions of the business would join a team to see this project through, from start to finish. Upon completion, the team would disband and members would return to their respective functional units.
Matrix
The Theory of Social and Economic Organizations was written by which organizational theorist
Max Weber
Which of the following were two organization theorists that emerged during the mass production era
Max Weber Henri Fayol
Ben oversaw the work of six pharmaceutical sales managers in the southeast region of the U.S. Each sales manager managed a team of 8-10 pharmaceutical sales representatives that developed relationships with doctors, clinics, hospital pharmacies and local drug stores. Ben met regularly with four others in his company whose jobs were similar to his position. How would you describe the level of management Ben has achieved?
Middle Management
As a manager for the northeast region, Yeung oversees the work of six pharmaceutical sales representatives. She is responsible for developing plans to help the region meet its strategic objectives as well as rewarding her employees when they meet their sales objectives. What level of management has Yeung achieved?
Middle management
Joe spends an hour or more each day at work checking his Facebook page, Twitter account, and watching YouTube videos, even though it is against company policy to do so. Joe is guilty of which form of misconduct?
Misuse of company time
Profit is best described as
Money earned after expenses and salaries are paid.
When developing and maintaining good stakeholder relationships, companies find that
Most often, they must balance the needs of the stakeholders with the need to make profits.
Which of the following best describes a capitalistic nation?
Most or all of the factors of production and distribution are privately owned and operated for a profit.
Electra Bikes is an American brand with a global presence. Which of the following trade agreements allowed Electra Bikes to expand its business by opening a new market in Canada?
NAFTA
The agreement that created free-trade among the United States, Canada, and Mexico is
NAFTA
There are those who hope that ______ is a stepping-stone to the creation of a Free Trade Area of the Americas. This agreement today is between the United States, Canada, and Mexico
NAFTA
Trilateral treaty among Canada, Mexico and the U.S. that encourages free trade among these countries.
NAFTA
Laws regulating safety in the workplace are enforced by ______.
OSHA
In order to keep its manufacturing costs down, Electra manufactures its bikes in Taiwan because it is cheaper for the company than producing the bikes in the United States. The process of contracting the production of goods to an overseas company is called
OUTSOURCING
Business incubators are usually government-funded facilities intended to
Offer start-up firms low-cost office space and basic business services
What's going on here? As soon as Dewey Cheatum and Howe Motors increase the prices on their SUVs, then so does their only competitor, You Betcha Motors! Their prices are basically the same for similar vehicles, although their advertising says their products are really very different. What kind competition exists here?
Oligopolistic competition
Advantages of __________ franchising include reduced start-up fees and no territory restrictions.
Online
__________ is about converting resources into goods and services. It includes inventory management, quality control, production scheduling, follow-up services, and more.
Operations management
A car company makes four models—a hybrid sport utility, a sports car, a four-door sedan, and a compact car. Employees at the company work on only one type of vehicle, and separate marketing and product development processes are designed for each type of vehicle to better serve customers for each type of vehicle. This company is departmentalized by
Product
Besides environmental groups, unions, and investors, a relatively new type of watchdog organization that reports on corporate social responsibility efforts is
Socially conscious research organizations.
When Amir started his pest control business, he wanted to keep things simple. He liked the idea of being his own boss and the possibility of leaving the business one day to his son. He chose the type of business that was easy to start, allowed him to keep company profits, and not have any special taxes. Amir's financial resources were limited, but so were his concerns; after all, "he was the business." Amir's business is most likely a(n)
Sole proprietorship.
Nellie works as an attorney for a large consulting firm. Nellie's job is to act as an advisor to the firm's consultants, to be sure they do not confront any legal issues when they are working at the various clients' job sites. Nellie's position would be classified as a __________ position
Staff
Ethics, principles, and values
Starbucks offers healthcare benefits to part-time employees and supports coffee growers by offering them fair prices.
Financial and economic viability
Starbucks offers investors a healthy return on investment, including paying dividends.
Compliance with legal and regulatory requirements
Starbucks specifies in its code of conduct that payments made to foreign government officials must be lawful according to the laws of the U.S. and the foreign country.
Within the planning function, a SWOT analysis identifies, in part, a firm's
Strengths and weaknesses
A traditional tool that serves as a way of evaluating a company's current business situation is called the SWOT Analysis. This is an acronym for ___________.
Strengths, Weaknesses, Opportunities, Threats
Which of the following is not a part of the business cycles that occur in economies over time?
Structural unemployment
The ________ curve indicates the relationship between the price of a good and the quantity supplied.
Supply
Walt is a supervisor in a small automotive shop. He spends a lot of his time training some workers while helping others solve some of the problems they have in doing their jobs. He also runs the diagnostic machine. Walt spends time on __________ skills.
Technical
Electrical appliance manufacturers need to be concerned about the kind and availability of electricity in the global marketplace. If a compatibility problem were to exist, it would be the result of a(n) __________ difference.
Technological
Although the business plan has a great amount of detail and requires thoroughness, a well-explained business idea will come to life almost immediately in which part of this document?
The executive summary
Which of the following is a FALSE statement about small business?
The first job for most Americans is unlikely to be in a small business.
A drawback of the informal organization is that:
The grapevine can spread inaccurate rumors very quickly
Adam smith believed that ones self directed gain would eventually create prosperity for many, he called the process
The invisible hand
There are many reasons why small-business owners don't go international. What is not one of those reasons?
The market doesn't have great potential.
There are many reasons why small-business owners don't go international. Which of the following is not one of those reasons?
The market doesn't have great potential.
What role does the media play when it comes to ethical conduct by business?
The media reports on unethical behavior by businesses far more often than businesses with good ethical behavior.
In global trade, the term dumping refers to
The practice of selling products in a foreign country at lower prices than those charged in the producing country.
According to John F. Kennedy, which of the following represent the four basic rights of consumers?
The right to choose The right to be heard The right to safety The right to be informed
Which scenario best represents a company with a strong ethical culture?
The top management at Tom's company clearly communicate to all employees the ethical behavior that is expected of them.
Small businesses often have advantages in international markets. Which best describes one of those advantages?
They can provide individualized customer service as opposed to impersonal corporate bureaucracies.
World Trade Organization (WTO)
This organization was created to provide more trade agreements between countries and solve trade disputes if/when they arise. powerful successor to GATT that incorporates trade in goods, services and ideas MEMBERSHIP -Obliges 149 members to observe GATT -has judicial powers to mediate among members disputing new rules -has more binding authority than GATT
Using government regulations to limit the import of goods and services is called
Trade protectionism
Enterprise zones offer lower tax rates and government assistance to attract private business investment.
True
True or false: A company may have to make organization changes based on outsiders' perceptions, such as that of stock market actors
True
True or false: Learning to create the right corporate culture and work within the informal organization is key to managerial success
True
True or false: Many jobs can be done quickly and well when each person specializes
True
True or false: Most legal issues arise as choices that society deems unethical, irresponsible or unacceptable.
True
True or false: Networking uses technology, such as a company intranet, to link organizations and their suppliers to allow them to work together for a common goal
True
True or false: Perceptions of ethics can differ in different societies.
True
Weber's principles of strict rules and procedures are still known to be very effective for which of the following organizations
United Parcel Service
What two criticisms are levied against businesses regarding unemployment?
Unwillingness to train employees Unfair hiring standards
While cultural differences and bureaucratic paperwork for foreign governments make the prospect of global trade difficult for small businesses, there is one bright spot on the horizon that has brought global trade closer to home. Small businesses can now
Use technology such as PayPal to fulfill orders, which gives them some assurance of payment.
If you owned a small company, and a major competitor stated promoting itself in your area, what information might you look for while monitoring the business environment
Who are your competitor's target clients in the area What new products are customers demanding
For a market to exist, there must be potential buyers
Who have a willingness and the resources to buy.
All of the following are questions to consider in determining whether an action is ethical EXCEPT ______.
Will this activity further my career?
Social responsibility is defined as ______.
a business's obligation to maximize its positive impact and minimize its negative impact on society
multinational enterprise
a firm that operates on a worldwide scale without ties to any specific nation or region, representing the highest level of involvement in international business
Totally owned facilities
a firm's own production and marketing facilities, developed in one or more foreign nations as a direct investment
Country's ability to produce a good or service at a lower cost per unit than any other country can produce it.
absolute advantage
Companies based on the inverted organization structure support front-line personnel with internal and external databases, advanced communication systems, and professional assistance. Naturally , this means front-line people have to be _
better paid better educated better trained
In the past many organizations designed rules and regulations to give managers control over employees. An organization's reliance on these rules is called _
bureaucracy
Max Weber used the word _ to describe a middle manager whose function was to implement top management's orders
bureaucrat
Making your organization more responsive to customers by decentralizing its structure is one way to adapt to _ in the environment
change
According to Fayol, all workers should be able to reach each other quickly and easily through clear _
communication channels
Which ethical issue is being exhibited by a manager that makes decisions which profit him personally rather than profiting the firm and its investors?
conflict of interest
The unity of command principle states that each person should report to only one manager in order to prevent _
confusion
Brad and Jeevan would like to start a new business selling a product new to the U.S. market. Brad and Jeevan have done a considerable amount of research on this product and think it would be successful in the United States. However, they are still concerned about the risk of a new venture, and both would like to avoid losing any personal assets. They should organize their firm as a
corporation
_______ is a complex form of bartering in which several countries may be involved, each trading goods for goods or services for services.
countertrading
In terms of economic systems, the trend has been for:
countries that are mostly capitalist to move toward more socialism.
When a company plans to expand its operations globally, it should be concerned with economic and financial forces. Which of the following is NOT an economic or financial force?
cultural difference
Experience with the _____ in which a business operates is critical to understanding what is ethical or unethical.
culture, cultural, or society
All of the following are reasons for countries to participate in foreign trade
1. no nation can produce all of the products its people want and need. 2. even if a country were self-sufficient, other nations would seek to trade with that country in order to meet the needs of its own people. 3. some nations have resources, but not technological know-how; while others have know-how, but lack resources.
__________ is an advanced procedure where products are created one layer at a time. It is also known as additive manufacturing.
3D printing
A mobile veterinary business, Paws on the Go, Inc., created a mission statement long before it opened its doors for business. The mission statement referred to the unique characteristic of the business: a traveling pet unit whose veterinarians went to the home of the pet owner, rather than the pet owner bringing the pet to the clinic. What other criteria should be considered for the mission statement?
A description of the customers it serves and a statement about its social responsibility to the area where it operates
Which of the following employment statistics about small businesses is true? A. Small businesses create about 15% of all new jobs in the U.S. B. The number of women owning small businesses has remained constant. C. A great majority of American workers find their first jobs with a small business. D. Growth of minority-owned businesses in the U.S. is declining.
A great majority of American workers find their first jobs with a small business.
Identify drawback of a tall organization structure from the following examples
A higher cost to support the many levels of staff High amount of paperwork generated Messages can get distorted through the various levels
Which of the following is not characteristic of a leader?
A leader will always attempt to keep operations from changing.
International franchising is
A successful growth area for both small and large franchises.
Tanzania is the only country in the world where a rare gem called tanzanite can be found. Tanzania has a(n) _______ in the production of tanzanite gems
Absolute Advantage
The controlling function closes the loop for managers. It answers the question: "Did we succeed in what we set out to do?" Which of the following business departments has a very important role in the controlling function?
Accounting department
Americans are often accused of ethnocentricity. This means that
Americans feel their culture is superior to others.
Which of the following is the BEST reason for a business to be managed ethically?
An ethically managed business helps to reduce employee turnover.
Which circumstance is most likely to reduce one's standard of living?
An increase in the cost of some goods such as escalating gasoline prices
For the last several years, the country of Amerensia has been moving from a communist country to a more mixed economic system. Which of the following most likely would not occur in Amerensia?
An increase in the level of government involvement in trade.
When an airline decides to buy new planes and is deciding which company to buy from, it doesn't have a lot of options to choose from. This demonstrates ________.
An oligopoly
Identify the principles of Henri Fayol's book General and Industrial Management from the following list
Authority Division of labor Hierarchy of authority
When decision making is delegated to lower-level managers and employees more familiar with local conditions than top mangers it is called:
decentralized authority
Networking will continue to evolve as digital natives become more and more prevalent in organizations. Why is this considered to be a natural and smooth transition
Because digital natives have grown up with certain technologies used in networking
We refer to the BRIC nations as four global economic powers that will likely be important forces in world trade by 2030. It is predicted that the two nations that will supply the world with most of the world's raw materials are ___________.
Brazil and Russia
What factor has leveled the playing field by making it much more affordable to start a home-based business?
Broadband Internet connections and other technologies
______ is/are principles and standards that determine acceptable conduct in business.
Business ethics
_______ refers to the rules and regulations that govern the conduct of business.
Business law
What type of departmentalization is shown in this example
By product
Why do incubator facilities continue to remain very popular with start-up businesses?
By providing essential services to entrepreneurs, they have a very strong success rate.
A company that makes custom staircases uses computer modeling to ensure that the process used makes the most efficient use of resources and effectively design their products. The company is equipped with __________ technology.
CAD/CAM
Organizations known as ________ have a significant role in the economic recovery. Some start-up businesses have successfully found sources of capital by going through one of these organizations.
CDFIs (Community Development Financial Institutions)
Although bananas are grown in almost one hundred countries worldwide, Ecuador and Costa Rica are among the world's largest banana growers due to their climate. These countries have a(n) _______ in the production of bananas.
COMPARATIVE ADVANTAGE
Proponents of corporate social responsibility (CSR) strongly believe in benevolence; however, they still want their businesses to be profitable. In the long run, they believe
CSR can lead to even more profits.
The global economic trend has been for ________ countries to move toward ________.
Capitalist; socialism
Which of the following would not be used to describe a company with a positive corporate culture?
Closer supervision of employees.
________ economies exist when the government controls what goods and services will be produced and how the economy will grow, while ________ economies exist when the market largely determines what goods and services get produced and how the economy grows.
Command; free-market
For a U.S. or non-European company to export manufactured goods to European countries, which of the following would most likely apply?
Companies that want to do business with the EU must be certified by ISO standards.
forms of direct investment
B2B
All of the following are reasons for countries to participate in foreign trade except
it is just as easy to start a business overseas as it is in the U.S.
Dividing tasks into smaller jobs is called:
job specialization
The business relationship between Electra Bikes and Trek provides Electra with a competitive advantage. This business arrangement would be classified as
joint venture
The owners of a corporation
stockholders
_, or division of labor, begins with determining what work needs to be done, and then dividing up the tasks among the organization
Organizing
What are the steps in entering international markets?
1. identify exportable products 2. identify key foreign markets for the products 3. analyze how to sell in each priority market 4. set export prices and payment terms, methods, and techniques 5. estimate resource requirements and returns 6. establish overseas distribution network
The EU is an example of a trading bloc, or a __________, which has a common external tariff, no internal tariffs, and the coordination of laws to facilitate trade between member countries.
Common market
According to the Harvard Business Review, young people who play online games will feel comfortable working in global teams. Why is this assumption made
These young people have experience working in groups over the Internet
According to John Mackey of Whole Foods, cross-functional self-managed teams work best when:
They are collaborative They are empowered Leadership is shared
If a nation exports $100 million worth of products and services and imports $68 million worth of products and services, then this nation has a(n)
Trade Surplus
International Monetary Fund (IMF)
an international bank with 184 member nations that makes short-term loans to developing countries experiencing balance-of-payments deficits
countertrade
an international barter transaction in which goods and services are exchanged for different goods and services
General Agreement on Tariffs and Trade (GATT)
an international organization of 132 nations dedicated to reducing or eliminating tariffs and other barriers to world trade
Multilateral Development Bank
an internationally supported bank that provides loans to developing countries to help them grow
SCORE is ____________.
an organization affiliated with the Small Business Administration where retired experts volunteer to provide free advice to small businesses that are just getting started
Entrepreneurship is
accepting the risk of starting and running a business.
Identify from the following lists the advantages and disadvantages to decentralized authority:
advantage empowerment of workers adaption to customer wants disadvantage less efficiency complex distribution system
Pam logged onto her Facebook account and noted that Sallie liked two different websites. Since Sallie is a good friend of Pam's and a reliable source of information, Pam checked out these websites and decided to purchase products from one of them. A common strategy for web-based business is _______________.
affiliate marketing
international business
all business activities that involve exchanges across national boundaries
export-import bank of the United States
an independent agency of the U.S. government whose function it is to assist in financing the exports of American firms