Exploring Business
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- 1.The amount of goods and services people can buy with the money they have is called their:
- A.
Nominal income
- B.
Consumer price index
- C.
Profit margin
- D.
Standard of living
- 2.An entrepreneur risks time and money to start and manage a business
- A.
True
- B.
False
- 3.Backstreet Books, an eclectic bookstore on a large college campus generated total revenues of $15 million while incurring expenses of $12 million. During the year Backstreet Books earned a profit of $3 million
- A.
True
- B.
False
- 4.Political freedom, quality education, access to health care, and a clean environment are all factors that contribute to an improved quality of life.
- A.
True
- B.
False
- 5.Productivity is the amount of output you generate given the amount of input such as hours worked.
- A.
True
- B.
False
- 6.Empowerment means giving frontline workers the responsibility, authority, and freedom to respond quickly to customer requests.
- A.
True
- B.
False
- 7.The customers, employees, stockholders, suppliers, creditors, and others who stand to gain or lose by the policies and activities of a business represent the firm's:
- A.
Market makers
- B.
Economic environment
- C.
Stakeholders
- D.
Social mentors
- 8.The resources that contribute to the creation of wealth are known as ________.
- A.
Production coefficients
- B.
Factors of production
- C.
Production technologies
- D.
Production agregates
- 9.Efficiency means:
- A.
Producing the desired result.
- B.
Producing goods and services using the least amount of resources.
- C.
The amount of output you generate given the amount of input.
- D.
The buying and selling of goods using the most amount of resources.
- 10.The two main types of e-commerce are:
- A.
Online and offline.
- B.
EDI and EDC.
- C.
Wholesale and retail
- D.
B2B and B2C
- 11.Macroeconomics is the economic perspective that looks at the operation of a nation's economy as a whole.
- A.
True
- B.
False
- 12.Microeconomics focuses on the decisions and behavior of people and organizations in particular markets.
- A.
True
- B.
False
- 13.In capitalist countries, the government decides what to produce and how the goods and services will be produced
- A.
True
- B.
False
- 14.Demand refers to the quantity of a good that consumers are willing and able to buy at different prices at a specific time.
- A.
True
- B.
False
- 15.The point of intersection between the supply and demand curves is called the stress point.
- A.
True
- B.
False
- 16.Which of the following is a basic right under capitalism?
- A.
Freedom of collusion
- B.
Freedom from taxation.
- C.
The right to vote.
- D.
The right to compete.
- 17.A simple supply curve shows that an increase in the price of a good will cause the quantity supplied to:
- A.
Decrease.
- B.
Increase.
- C.
Remain constant.
- D.
Fluctuate randomly around its equilibrium value.
- 18.A typical demand curve shows that:
- A.
As people earn more income, they buy more of a good
- B.
As supply increases, the amount purchased decreases.
- C.
People tend to buy more of a good than they really want.
- D.
People tend to buy more of a good when its price decreases.
- 19.__________ exists when the entire supply of a good is controlled by a single seller.
- A.
Perfect competition
- B.
Oligopoly
- C.
Pure Capitalism
- D.
A monopoly
- 20.An oligopoly is a market that is characterized by:
- A.
One firm that totally dominates the supply of the product.
- B.
A large number of small firms all producing very similar products.
- C.
A few large sellers who dominate the market.
- D.
Several small firms that compete primarily by differentiating their products.
- 21.Importing is the selling of products to another country.
- A.
True
- B.
False
- 22.Exporting is the selling of products to another country.
- A.
True
- B.
False
- 23.The country of Nelly exports $250 of goods and services and imports $170 of goods and services. Nelly has an unfavorable balance of trade of $80.
- A.
True
- B.
False
- 24.Foreign direct investment refers to the buying of goods produced in another country
- A.
True
- B.
False
- 25.A complete ban on the import or export of a specific good is called an embargo
- A.
True
- B.
False
- 26.Granting a foreign company the right to manufacture your product or to use your firm's trademark in return for a fee is called:
- A.
A joint venture.
- B.
A foreign subsidiary.
- C.
Licensing.
- D.
Outsourcing.
- 27.__________ is an arrangement whereby someone with a good idea for a business sells the rights to use the business name and sell the parent company's product or service to others in a given territory in a specified manner.
- A.
Franchising
- B.
Contract manufacturing
- C.
Import trading
- D.
Export trading
- 28.When a company's strategy is __________ the firm makes arrangements for a foreign manufacturer to produce the product. The domestic company's label and/or trademark are attached to the completed product.
- A.
Franchising
- B.
Contract manufacturing
- C.
Import sourcing
- D.
Export trading
- 29.A __________ is a partnership in which two or more companies (often from different countries) join together and share the risk and costs in order to undertake a major project.
- A.
Multinational cooperative
- B.
Joint venture
- C.
Franchisee transfer
- D.
Recruit affiliation
- 30.10. (p. 70) A form of foreign direct investment, where a domestic company purchases a company in a foreign country to produce a similar product or service is a:
- A.
Licensor
- B.
Joint venture
- C.
Foreign subsidiary
- D.
Host company
- 31.Overly ambitious business goals and employee incentives can lead to unethical behavior.
- A.
True
- B.
False
- 32.In order to be successful, efforts to improve the ethical behavior of businesses must begin with top management's support of a corporate code of conduct.
- A.
True
- B.
False
- 33.People who report illegal or unethical behavior are called whistleblowers.
- A.
True
- B.
False
- 34.Enforcement is perhaps the most important step in an effective code of ethics
- A.
True
- B.
False
- 35.Insider trading occurs when employees of publicly traded companies use private company information to profit in the stock market.
- A.
True
- B.
False
- 36.When WorldCom used intentional accounting irregularities to make the company look more profitable than it actually was, it:
- A.
Provided its stockholders profit through a tax-loophole
- B.
Acted in an acceptable business manner.
- C.
Engaged in illegal behavior
- D.
Executed its responsibility to its owners
- 37.Which of the following would most likely involve ethical concerns?
- A.
Overstating an expense report
- B.
Forecasting sales for the next year
- C.
Developing the marketing plan for the next year.
- D.
Improving working conditions.
- 38.Sharon, a CPA for a large firm noticed that the company's accounting records drastically overstated the amount of inventory on hand, which led to overstating the assets of the firm. Initially, she brought it to the attention of her supervisor, but when nothing was done to correct the mistake in a timely manner; she decided the best course of action was to report it to the appropriate government official. Although her actions took her outside the company, she was counting on current law, under the ____________ to protect her against company retaliation.
- A.
Cellar-Kefauver Act
- B.
Sarbanes-Oxley Act
- C.
Robinson-Patman Act
- D.
Sherman Act
- 39.We describe charitable donations by corporations to nonprofit organizations as
- A.
Corporate philanthropy
- B.
Corporate responsibility
- C.
Corporate strategy
- D.
Structural commitment
- 40.Entrepreneurship involves accepting the risk of starting and running a business.
- A.
True
- B.
False
- 41.The most important difference between entrepreneurs and micropreneurs is the focus placed by micropreneurs on balancing the demands of work and family.
- A.
True
- B.
False
- 42.Creative people working as entrepreneurs within a large organization are called intrapreneurs.
- A.
True
- B.
False
- 43.Small businesses account for over 50% of the U.S.'s gross domestic product (GDP)
- A.
True
- B.
False
- 44.A good business plan describes key items such as the nature of the proposed business, the target market, the competitive advantages, and the qualifications of the owners
- A.
True
- B.
False
- 45.A detailed written statement that describes the nature of the business, the target market, the firm's competitive advantages, as well as the owner's resources and qualifications is a:
- A.
Business plan
- B.
entrepreneurial mission statement.
- C.
Profit and loss statment
- D.
Professional action plan
- 46.After personal savings, the next largest source of capital for entrepreneurs is from:
- A.
large multinational banks.
- B.
Small business administration
- C.
State and local governments
- D.
Friends and family
- 47.A ________ refers to people with unsatisfied wants and needs who are willing and able to buy a product or service.
- A.
Market
- B.
Consumer cooperative
- C.
Consumer collective
- D.
Buyers cooperative
- 48.A market consists of potential buyers of a good or service. However, for a market to exist:
- A.
the business requires wholesalers and retailers.
- B.
One firm must dominate in sales and product development.
- C.
People must have unsatisfied wants and needs as well as a willingness and ability to buy.
- D.
The product must be laboratory tested and approved by the Food and Drug Administration (FDA).
- 49.Managers in progressive organizations tend to emphasize teamwork and cooperation rather than discipline and giving orders.
- A.
True
- B.
False
- 50.The four key management functions are planning, organizing, leading, and controlling.
- A.
True
- B.
False
- 51.One trend of the "leading" management function is to empower employees, giving them as much freedom as possible to become self-directed and self-motivated.
- A.
True
- B.
False
- 52.Planning involves setting the organizational vision, goals and objectives
- A.
True
- B.
False
- 53.The SWOT analysis helps firms identify competitive threats and market opportunities.
- A.
True
- B.
False
- 54.A __________ is an overall explanation of why an organization exists and where it is trying to head.
- A.
Tactical plan
- B.
Prime directive
- C.
Corporate charter
- D.
Vision
- 55.__________ planning prepares alternative courses of action that may be used if the primary plans are not achieving objectives.
- A.
Strategic
- B.
Contingency
- C.
Tactical
- D.
Alternative
- 56.Which of the following is involved in setting work standards and schedules needed to implement the firm's tactical objectives?
- A.
Mission statement
- B.
Tactical planning
- C.
Operational planning
- D.
Contingency planning
- 57.__________ is a problem solving technique that attempts to come up with as many solutions as possible in a short time without censoring the ideas.
- A.
Brainstorming
- B.
Game theory
- C.
CAD/CAM
- D.
PMI
- 58.A bureaucracy empowers employees to quickly respond to customers' wants and desires.
- A.
True
- B.
False
- 59.An advantage of decentralized authority is that those individuals closest to the customers and more familiar with local conditions make decisions.
- A.
True
- B.
False
- 60.Centralized authority provides for the delegation of authority to employees who are then better able to respond to customers' needs.
- A.
True
- B.
False
- 61.Span of control refers to the number of different markets a business can serve efficiently.
- A.
True
- B.
False
- 62.A flat organization is less likely to respond quickly to customer needs
- A.
True
- B.
False
- 63.The concept of ____________ suggests that as a firm produces more, the average cost of goods produced goes down.
- A.
Natural growth
- B.
Survival of the fittest
- C.
Cost enhancement
- D.
Economies of scale
- 64.The line of authority that moves from the top of a hierarchy to the lowest level is called the:
- A.
Chain of logic
- B.
Chain of command
- C.
Organizational design
- D.
Delegation of contingent authority
- 65.In a(n) _____________ organization, decision-making authority is concentrated at the top level of management.
- A.
Bottom up
- B.
Decentralized
- C.
Inverted
- D.
Centralized
- 66.An organization that consists of many layers of management is referred to as a(n) ____________ organization.
- A.
Flat
- B.
Wide
- C.
Tall
- D.
Deep
- 67.The traditional technique used to departmentalize an organization is by:
- A.
Function
- B.
Customer group
- C.
Geographic ares
- 68.Employees who perform functions that advise and assist line personnel are known as:
- A.
Middle managers
- B.
Empowered workers
- C.
Secondar employees
- D.
Staff personnel
- 69.Firms that specialize in accounting, finance, and management consulting are all part of the service sector.
- A.
True
- B.
False
- 70.Operations management involves inventory management, quality control, and production scheduling.
- A.
True
- B.
False
- 71.When firms successfully produce products, they create form utility
- A.
True
- B.
False
- 72.Manufacturers use CAM (computer aided manufacturing) to create three-dimensional designs of products before they are built.
- A.
True
- B.
False
- 73.The main difference between process manufacturing and an assembly process is: Process manufacturing uses sophisticated robots and automated machinery to produce a good or service, while an assembly process uses labor and simple tools to make a product.
- A.
True
- B.
False
- 74.In ____________, materials are physically or chemically changed to produce a product.
- A.
Process manufacturing
- B.
Assembly processes
- C.
Utilitarian production
- D.
Diffusive manufacturing
- 75.A(n) __________ puts together components to make a product.
- A.
Modular process
- B.
Compression process
- C.
Assembly process
- D.
Econometric process
- 76.A production process characterized by long production runs to turn out finished goods over time is known as a(n):
- A.
Assembly process
- B.
Continuous process
- C.
Extended process
- D.
Unrestricted process
- 77.The goal of lean manufacturing is to:
- A.
Keep inventories of finished goods as high as possible.
- B.
Produce goods and services with less of everything that goes into the process.
- C.
Produce a very limited variety of goods.
- D.
Become more self sufficient by producing major components rather than buying them.
- 78.A major trend in business is ___________, where employees work at least part time at home using a computer and modem.
- A.
Outsourcing
- B.
Riveting
- C.
Outbounding
- D.
Telecommuting
- 79.The sense of satisfaction you get when you achieve an important goal is an intrinsic reward.
- A.
True
- B.
False
- 80.Mark successfully completed a very challenging assignment given to him by his supervisor at work. The feeling of accomplishment and satisfaction Mark experiences is an example of an extrinsic reward.
- A.
True
- B.
False
- 81.Safety needs are placed at the lowest level in Maslow's hierarchy of needs.
- A.
True
- B.
False
- 82.Since Herzberg’s hygiene factors do not motivate workers toward high achievement at work, managers can safely ignore these factors when trying to develop an effective work environment.
- A.
True
- B.
False
- 83.According to McGregor, Theory X managers assume that employees dislike work, and will avoid it if possible.
- A.
True
- B.
False
- 84.Theory ____ assumes that the average person likes work, and has a relatively high degree of imagination and creativity.
- A.
A
- B.
Aplha
- C.
X
- D.
Y
- 85.Theory X managers are likely to believe that:
- A.
The average person dislikes work and will seek to avoid it when possible.
- B.
Most employees know more about their job than the boss.
- C.
Employees are motivated mainly by the chance for advancement and recognition.
- 86.________ is a system of goal setting and implementation that involves a cycle of discussion, review, and evaluation of objectives among top and middle managers, supervisors, and employees.
- A.
Objective planning
- B.
Management by objective
- C.
Three step planning system
- 87.________ means acting as a resource to a subordinate by teaching, guiding and making recommendations, without actively doing any of the subordinate's work.
- A.
Coaching
- B.
Augmenting
- C.
Helping
- 88._________ theory is based on the idea that managers can use both rewards and punishments to motivate employee behavior.
- A.
Expectancy
- B.
Equity
- C.
Reinforcement
- D.
Goal setting
- 89.Human Resources Management is the process of deciding the number and types of people your business needs, and then, recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organizational goals.
- A.
True
- B.
False
- 90.Today's workers place a lower priority on leisure time than they did in the past.
- A.
True
- B.
False
- 91.Title VII of the Civil Rights Act of 1964 prohibits discrimination in hiring, firing, or compensation, based on race, religion, creed, sex, or national origin
- A.
True
- B.
False
- 92.The Age Discrimination in Employment Act only prevents discrimination against employees who are over the age of 65
- A.
True
- B.
False
- 93.Part-time workers, seasonal workers and independent contractors are all examples of contingent workers.
- A.
True
- B.
False
- 94.A ____________ is a statement that identifies the minimum qualifications required of a worker in order to perform a specific job.
- A.
Job description
- B.
Performance criteria review
- C.
Human resource inventory
- D.
Job specification
- 95.A job ___________ is a statement that identifies the objectives of a job, the type of work to be done, the responsibilities and duties that are associated with the job, the working conditions, and the relationship of the job to other functions.
- A.
Specification
- B.
Description
- C.
Evaluation
- D.
Analysis
- 96._________ is the set of activities for obtaining the right number of people at the right time in order to select those who best meet the needs of the organization.
- A.
Pre selection
- B.
Recruitment
- C.
Networking
- D.
Preemptive hiring
- 97.Help wanted ads, public and private employment agencies, and college placement bureaus are all ________ sources that human resource managers can use in the recruiting
- A.
Secondary
- B.
Passive
- C.
Back-up
- D.
External
- 98.A _________________ is a check of a potential employee's work record, academic record, credit history, and recommendations.
- A.
Personality profile
- B.
Background investigation
- C.
Fidelity appraisial
- D.
Character review
- 99.The four eras of the evolution of marketing are (1) production, (2) selling, (3) advertising, and (4) stakeholder relationships
- A.
True
- B.
False
- 100.Customer relationship management (CRM) is the process of learning as much as possible about customers and doing everything you can to satisfy them.
- A.
True
- B.
False
- 101.Setting prices higher than the competition can help create an image of quality
- A.
True
- B.
False
- 102.Intermediaries are firms in the middle of a series of organizations that distribute goods from producers to consumers.
- A.
True
- B.
False
- 103.Market segmentation is the process of dividing a market into several groups whose members have dissimilar characteristics.
- A.
True
- B.
False
- 104.A firm's marketing mix consists of 4 major components, which are generally referred to as the four:
- A.
P's
- B.
Keynotes to success
- C.
Intangibles of marketing
- 105.A ________ group consists of a small group of people who meet under the direction of a discussion leader to discuss opinions about an organization, its products, or other issues.
- A.
Concept
- B.
Focus
- C.
Peer
- D.
Consumer interest
- 106.The two major types of markets are the
- A.
Primary market and the secondary market.
- B.
B2B market and the C2C market.
- C.
Consumer market and the business-to-business market.
- D.
Target market and the niche market.
- 107.Which of the following describes individuals that want goods and services for personal consumption and have the resources to buy them?
- A.
Secondary market
- B.
Business to business market
- C.
Merket segmentation
- D.
Consumer market
- 108.__________ marketing is the marketing of products to groups of customers a firm decides it can serve profitably.
- A.
Objective
- B.
Departmentalized
- C.
Target
- D.
Subjective
- 109.Miller Light Beer, Maxwell House Coffee, Jell-O brand gelatin, Kraft Mayonnaise, and Marlboro Cigarettes, were all at one time products of the Philip Morris Company. These products represented a part of the product line Philip Morris offered.
- A.
True
- B.
False
- 110.Marketers use pricing, advertising, and packaging to differentiate their products from competitors' products even when actual differences are quite small.
- A.
True
- B.
False
- 111.Convenience goods are products that the consumer wants to purchase frequently and with a minimum of effort.
- A.
True
- B.
False
- 112.Industrial goods are sold in the B2B market.
- A.
True
- B.
False
- 113.Industrial goods and services are used to produce other products.
- A.
True
- B.
False
- 114.The combination of all the factors that consumers evaluate when deciding whether or not to buy a good or service is called a:
- A.
Total product offer
- B.
Product mix
- C.
Product differntiation
- D.
Product package
- 115.The combination of product lines offered by a manufacturer is called the firm's:
- A.
Product matrix
- B.
Product mix
- C.
Total product offer
- D.
Product portfolio
- 116.Which of the following are products consumers buy after comparing quality, price, and style from a variety of sellers?
- A.
Shopping goods
- B.
Specialty goods
- C.
Convenience goods
- D.
Unsought goods
- 117.__________ goods and services represent those products that consumers are unaware of or haven't thought of buying.
- A.
Inferior
- B.
Convenience
- C.
Shopping
- D.
Unsought
- 118.A __________ is a name, symbol, or design (or combination of these) that identifies the goods or services of one seller or group of sellers and distinguishes them from those of competitors.
- A.
Trademark
- B.
Brand
- C.
Logo
- D.
Copyright
- 119.Wholesalers are marketing intermediaries who sell goods or services to ultimate consumers.
- A.
True
- B.
False
- 120.A key distinction between agents and brokers is that agents tend to maintain long-term relationships with the people they represent whereas brokers are hired on a temporary basis.
- A.
True
- B.
False
- 121.Warehouse clubs compete with enhanced service to customers and seldom try to compete on price.
- A.
True
- B.
False
- 122.Vending machines are used primarily to sell goods where consumers have little interest in convenience.
- A.
True
- B.
False
- 123.In multilevel marketing, salespeople have little incentive to recruit new salespeople, because the new salespeople may compete against them and reduce their income
- A.
True
- B.
False
- 124.Those organizations that assist in the movement of goods and services from producer to industrial and consumer users are known as:
- A.
Directed marketers
- B.
Distributive specialists
- C.
Marketing intermediaries
- D.
Supplementary marketers
- 125.A(n) ____________ consists of the marketing intermediaries that transport and store goods as they move through their path from producer to final user.
- A.
Channel of distribution
- B.
Marketing network
- C.
Input output martrix
- 126.A _________ is a marketing intermediary that sells products to other organizations.
- A.
Wholesaler
- B.
Retailer
- C.
Disintermediary
- D.
Jobber
- 127.A __________ is a marketing intermediary that sells to ultimate consumers.
- A.
Channel captain
- B.
Wholesaler
- C.
Secondary marketer
- D.
Retailer
- 128.When marketing intermediaries perform the steps necessary to transfer ownership from one party to another, they are providing _________ utility.
- A.
Marginal
- B.
Title
- C.
Possession
- D.
Registration
- 129._________ utility adds value to goods by having them available where people want them.
- A.
Spatial
- B.
Location specific
- C.
Place
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