The Ultimate Business Fundamentals Quiz!

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  • 1/129 Questions

    Customer relationship management (CRM) is the process of learning as much as possible about customers and doing everything you can to satisfy them. 

    • True
    • False
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Business Fundamentals Quizzes & Trivia
About This Quiz

The Ultimate Business Fundamentals Quiz assesses key concepts such as standard of living, entrepreneurship, profit calculation, quality of life, productivity, and empowerment. This quiz is ideal for learners looking to understand basic business principles and apply them effectively.

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  • 2. 

    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. 

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Human Resources Management involves various tasks and processes such as determining the required number and types of employees, hiring, training, motivating, evaluating, compensating, and scheduling them to achieve organizational goals. This statement accurately describes the definition and scope of Human Resources Management, making the answer "True" correct.

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  • 3. 

     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

    • True

    • False

    Correct Answer
    A. True
    Explanation
    A good business plan is essential for any successful venture as it provides a comprehensive overview of the proposed business. It includes important details such as the nature of the business, the target market it aims to serve, the competitive advantages it possesses, and the qualifications of the owners. These key items help potential investors, partners, and stakeholders understand the viability and potential success of the business. Therefore, it is true that a good business plan describes these crucial elements.

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  • 4. 

    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. 

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Empowering employees is a trend in the "leading" management function because it encourages them to take ownership of their work and make decisions independently. This approach promotes self-direction and motivation, as employees feel trusted and valued. By giving employees more freedom, they are more likely to be engaged and proactive in their roles, leading to increased productivity and innovation within the organization.

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  • 5. 

    The sense of satisfaction you get when you achieve an important goal is an intrinsic reward. 

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Achieving an important goal often brings a sense of satisfaction that comes from within oneself, rather than from external factors. This feeling of satisfaction is considered an intrinsic reward because it is a personal and internal source of motivation. It is not dependent on external rewards or recognition, but rather on the individual's own sense of accomplishment and fulfillment. Therefore, the statement that the sense of satisfaction you get when you achieve an important goal is an intrinsic reward is true.

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  • 6. 

    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

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Title VII of the Civil Rights Act of 1964 is a federal law that indeed prohibits discrimination in hiring, firing, or compensation based on race, religion, creed, sex, or national origin. This means that employers are legally obligated to treat employees and job applicants fairly and without bias in these areas. Therefore, the statement "True" is correct.

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  • 7. 

    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

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The statement is true because the profit earned by Backstreet Books is calculated by subtracting the expenses from the total revenues. In this case, the total revenues are $15 million and the expenses are $12 million, resulting in a profit of $3 million.

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  • 8. 

    Productivity is the amount of output you generate given the amount of input such as hours worked. 

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Productivity refers to the efficiency and effectiveness with which individuals, organizations, or systems convert inputs into outputs. It measures the amount of output produced relative to the amount of input used. In this context, the statement correctly states that productivity is the amount of output generated based on the input, such as hours worked. Therefore, the answer "True" is correct.

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  • 9. 

    The point of intersection between the supply and demand curves is called the stress point. 

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The statement is false because the point of intersection between the supply and demand curves is actually called the equilibrium point. This is the point where the quantity demanded by consumers matches the quantity supplied by producers, resulting in a balance in the market. The stress point, on the other hand, refers to a situation where there is an imbalance between supply and demand, leading to either excess supply or excess demand.

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  • 10. 

    Vending machines are used primarily to sell goods where consumers have little interest in convenience. 

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The given statement is false because vending machines are actually used primarily to sell goods where consumers have a high level of convenience. Vending machines are designed to provide quick and easy access to products without the need for human interaction or assistance. They are commonly found in locations such as airports, train stations, and office buildings, where people are looking for a convenient way to purchase snacks, beverages, or other small items. Therefore, the correct answer is False.

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  • 11. 

     Entrepreneurship involves accepting the risk of starting and running a business.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Entrepreneurship involves taking on the risk of initiating and managing a business. Entrepreneurs are willing to step out of their comfort zones and invest their time, money, and effort into a new venture, knowing that success is not guaranteed. They embrace uncertainty and are prepared to face challenges and setbacks along the way. By accepting the risk, entrepreneurs have the opportunity to pursue their ideas, create innovative products or services, and potentially achieve financial rewards and personal fulfillment.

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  • 12. 

    Operations management involves inventory management, quality control, and production scheduling. 

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The statement is true because operations management is a field that focuses on overseeing and controlling various aspects of a company's operations, including inventory management, quality control, and production scheduling. These functions are crucial in ensuring efficient and effective production processes, meeting customer demands, and maintaining high product quality standards. Therefore, it can be concluded that operations management does involve inventory management, quality control, and production scheduling.

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  • 13. 

    Convenience goods are products that the consumer wants to purchase frequently and with a minimum of effort. 

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Convenience goods are products that are purchased frequently and with minimal effort. This means that consumers have a high demand for these goods and they are readily available in stores or online. Examples of convenience goods include everyday items like toothpaste, bread, and milk. Therefore, the statement "Convenience goods are products that the consumer wants to purchase frequently and with a minimum of effort" is true.

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  • 14. 

    Importing is the selling of products to another country. 

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The given statement is false. Importing refers to the buying and bringing in of products from another country, not the selling of products to another country.

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  • 15. 

    Part-time workers, seasonal workers and independent contractors are all examples of contingent workers. 

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Part-time workers, seasonal workers, and independent contractors are all considered contingent workers because they are not permanent employees and do not have the same level of job security as full-time employees. These types of workers are typically hired on a temporary or as-needed basis, and their employment status is contingent upon the demand for their services. Therefore, the statement "Part-time workers, seasonal workers, and independent contractors are all examples of contingent workers" is true.

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  • 16. 

    An entrepreneur risks time and money to start and manage a business

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Starting and managing a business requires a significant investment of both time and money. Entrepreneurs often invest their own personal savings or seek funding from investors to finance their business ventures. Additionally, they dedicate a substantial amount of time and effort to develop and grow their businesses. This involves conducting market research, creating business plans, hiring and managing employees, and making strategic decisions. Therefore, it can be concluded that entrepreneurs do indeed risk both time and money to start and manage a business, making the answer "True."

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  • 17. 

    Empowerment means giving frontline workers the responsibility, authority, and freedom to respond quickly to customer requests.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Empowerment refers to the act of granting frontline workers the power and autonomy to promptly address customer demands. This includes providing them with the responsibility, authority, and freedom to take necessary actions and make decisions without constant supervision or approval. By doing so, organizations enable their employees to respond swiftly and effectively to customer requests, leading to improved customer satisfaction and overall business success.

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  • 18. 

    Overly ambitious business goals and employee incentives can lead to unethical behavior. 

    • True

    • False

    Correct Answer
    A. True
    Explanation
    When businesses set overly ambitious goals and offer high incentives to employees, it can create a high-pressure environment that may push individuals to engage in unethical behavior. The desire to achieve these goals and earn rewards can lead employees to cut corners, manipulate data, or engage in other unethical practices. This can harm the company's reputation, lead to legal issues, and damage employee morale. Therefore, it is true that overly ambitious business goals and employee incentives can contribute to unethical behavior.

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  • 19. 

     Insider trading occurs when employees of publicly traded companies use private company information to profit in the stock market.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Insider trading refers to the illegal practice of using confidential information about a company, which is not available to the public, to make stock market transactions for personal gain. This information is typically known only to employees or individuals with access to non-public company data. By trading based on this privileged information, insiders can potentially make significant profits or avoid losses. Therefore, the statement "Insider trading occurs when employees of publicly traded companies use private company information to profit in the stock market" is true.

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  • 20. 

    The most important difference between entrepreneurs and micropreneurs is the focus placed by micropreneurs on balancing the demands of work and family.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Micropreneurs are individuals who start and operate small businesses with a focus on maintaining a work-life balance. They prioritize their family commitments and integrate them into their work schedule. On the other hand, entrepreneurs are generally more focused on the growth and success of their businesses, often sacrificing personal and family time for work. Therefore, the statement that micropreneurs place a greater emphasis on balancing work and family demands is true.

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  • 21. 

     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: 

    • Business plan

    •  entrepreneurial mission statement.

    • Profit and loss statment

    • Professional action plan

    Correct Answer
    A. Business plan
    Explanation
    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 referred to as a business plan. This plan outlines the goals and objectives of the business, the strategies to achieve them, and the financial projections. It serves as a roadmap for the entrepreneur, providing a comprehensive overview of the business and its potential for success.

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  • 22. 

    Intermediaries are firms in the middle of a series of organizations that distribute goods from producers to consumers. 

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Intermediaries are indeed firms that play a crucial role in the distribution process of goods, acting as middlemen between producers and consumers. They help facilitate the movement of products from the manufacturer to the end consumer by performing various functions such as transportation, storage, promotion, and selling. These intermediaries can include wholesalers, retailers, agents, and brokers, among others. Therefore, the statement "Intermediaries are firms in the middle of a series of organizations that distribute goods from producers to consumers" is true.

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  • 23. 

     Political freedom, quality education, access to health care, and a clean environment are all factors that contribute to an improved quality of life. 

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The statement is true because political freedom allows individuals to have a say in their government and participate in decision-making processes, leading to a sense of empowerment and autonomy. Quality education ensures that individuals have the necessary skills and knowledge to succeed in life, opening up opportunities for better employment and personal growth. Access to healthcare ensures that individuals can receive necessary medical treatment and live a healthier life. A clean environment promotes physical and mental well-being, reducing the risk of diseases and providing a pleasant living environment. All these factors contribute to an improved quality of life.

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  • 24. 

    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. 

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Efforts to improve the ethical behavior of businesses must begin with top management's support of a corporate code of conduct because top management sets the tone and example for ethical behavior within an organization. They have the power and influence to establish and enforce ethical standards, create a culture of integrity, and hold employees accountable for their actions. Without top management's support, efforts to improve ethical behavior may lack credibility and effectiveness, as employees may not see ethical behavior as a priority or may feel that they can get away with unethical practices.

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  • 25. 

    People who report illegal or unethical behavior are called whistleblowers.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Whistleblowers are individuals who expose or report illegal or unethical activities within an organization or society. They play a crucial role in bringing attention to wrongdoing and promoting transparency and accountability. By speaking out against such behavior, whistleblowers often face risks and potential backlash. However, their actions are essential for safeguarding the public interest and ensuring that justice is served. Therefore, the statement that people who report illegal or unethical behavior are called whistleblowers is true.

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  • 26. 

     When firms successfully produce products, they create form utility

    • True

    • False

    Correct Answer
    A. True
    Explanation
    When firms successfully produce products, they add value to the products by transforming raw materials into finished goods, which is known as form utility. This process involves converting inputs into outputs that are more useful and desirable to consumers. Therefore, the statement "When firms successfully produce products, they create form utility" is true.

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  • 27. 

    Small businesses account for over 50% of the U.S.'s gross domestic product (GDP)

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Small businesses account for over 50% of the U.S.'s gross domestic product (GDP). This means that the combined economic output of small businesses in the U.S. is greater than 50% of the total economic output of the country. Small businesses play a significant role in driving economic growth and creating jobs, making them an important component of the U.S. economy.

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  • 28. 

    A bureaucracy empowers employees to quickly respond to customers' wants and desires. 

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The statement is false because a bureaucracy is typically characterized by a hierarchical structure with multiple layers of authority and decision-making processes. This often leads to a slower response time and less flexibility in meeting customers' wants and desires. Bureaucracies are more focused on following rules and procedures rather than being agile and responsive to customer needs.

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  • 29. 

    The four key management functions are planning, organizing, leading, and controlling. 

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The statement is true because planning involves setting goals and deciding on the best course of action to achieve them, organizing involves arranging resources and tasks to achieve the goals, leading involves guiding and motivating employees to work towards the goals, and controlling involves monitoring progress and making adjustments to ensure that goals are being met. These four functions are essential for effective management.

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  • 30. 

    The SWOT analysis helps firms identify competitive threats and market opportunities. 

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The SWOT analysis is a strategic planning tool used by firms to assess their internal strengths and weaknesses, as well as external opportunities and threats. By conducting a SWOT analysis, firms can identify potential competitive threats from their competitors and also uncover market opportunities that they can capitalize on. Therefore, the statement that the SWOT analysis helps firms identify competitive threats and market opportunities is true.

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  • 31. 

     ________ means acting as a resource to a subordinate by teaching, guiding and making recommendations, without actively doing any of the subordinate's work.

    • Coaching

    • Augmenting

    • Helping

    Correct Answer
    A. Coaching
    Explanation
    Coaching refers to the act of acting as a resource to a subordinate by teaching, guiding, and making recommendations without actively doing any of the subordinate's work. This involves providing support, advice, and feedback to help the subordinate improve their skills and performance. The coach acts as a mentor and facilitator, helping the subordinate develop their own capabilities and problem-solving skills.

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  • 32. 

    Demand refers to the quantity of a good that consumers are willing and able to buy at different prices at a specific time.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    This statement is true because demand refers to the willingness and ability of consumers to purchase a specific quantity of a good at different prices. It is a fundamental concept in economics that helps to determine the relationship between price and quantity demanded. The demand for a good can vary depending on factors such as price, income, preferences, and availability. Therefore, the statement accurately defines demand as the quantity of a good that consumers are willing and able to buy at different prices at a specific time.

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  • 33. 

    Exporting is the selling of products to another country. 

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Exporting refers to the act of selling products or goods to another country. This involves the transfer of goods or services from one country to another, typically for trade purposes. Therefore, the statement "Exporting is the selling of products to another country" is correct.

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  • 34. 

     Safety needs are placed at the lowest level in Maslow's hierarchy of needs.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    Maslow's hierarchy of needs is a theory that arranges human needs into a pyramid structure, with the most basic physiological needs at the bottom and higher-level needs at the top. Safety needs, such as personal security, employment, and health, are actually placed above physiological needs and below love/belonging needs in the hierarchy. This means that safety needs are not the lowest level of needs according to Maslow's theory. Therefore, the correct answer is false.

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  • 35. 

    A(n) ____________ consists of the marketing intermediaries that transport and store goods as they move through their path from producer to final user. 

    • Channel of distribution

    • Marketing network

    • Input output martrix

    Correct Answer
    A. Channel of distribution
    Explanation
    A channel of distribution refers to the network of marketing intermediaries that are involved in the transportation and storage of goods as they move from the producer to the final user. These intermediaries play a crucial role in ensuring that products reach the intended customers efficiently and effectively. They may include wholesalers, retailers, logistics companies, and transportation providers, among others. The channel of distribution helps to bridge the gap between producers and consumers, ensuring that products are available and accessible to the target market.

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  • 36. 

    Microeconomics focuses on the decisions and behavior of people and organizations in particular markets. 

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Microeconomics is a branch of economics that studies the behavior and decisions of individuals, households, and firms in specific markets. It examines how individuals and organizations allocate resources, make production and consumption choices, and interact with each other in these markets. Therefore, the statement that microeconomics focuses on the decisions and behavior of people and organizations in particular markets is true.

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  • 37. 

     A complete ban on the import or export of a specific good is called an embargo

    • True

    • False

    Correct Answer
    A. True
    Explanation
    An embargo refers to a complete prohibition or ban on the import or export of a specific good. This means that no trade or exchange of the particular good is allowed between countries or regions. Therefore, the statement "A complete ban on the import or export of a specific good is called an embargo" is true.

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  • 38. 

    Marketers use pricing, advertising, and packaging to differentiate their products from competitors' products even when actual differences are quite small. 

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Marketers use pricing, advertising, and packaging to differentiate their products from competitors' products even when actual differences are quite small. This is true because in a competitive market, companies need to find ways to stand out and attract customers. By manipulating pricing, advertising strategies, and packaging design, marketers can create a perceived value or unique selling proposition for their products, even if the actual differences between their products and competitors' products are minimal. This differentiation helps companies gain a competitive edge and increase their market share.

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  • 39. 

    Macroeconomics is the economic perspective that looks at the operation of a nation's economy as a whole. 

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Macroeconomics is the study of the overall behavior and performance of an economy, including factors such as inflation, unemployment, economic growth, and government policies. It focuses on analyzing aggregate measures such as GDP, national income, and overall price levels to understand how the economy as a whole functions. Therefore, the statement that macroeconomics looks at the operation of a nation's economy as a whole is true.

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  • 40. 

    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. 

    • True

    • False

    Correct Answer
    A. False
    Explanation
    An unfavorable balance of trade, or trade deficit, occurs when the value of imports exceeds that of exports. In this case, Nelly has a favorable balance of trade of $80.

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  • 41. 

    When WorldCom used intentional accounting irregularities to make the company look more profitable than it actually was, it: 

    • Provided its stockholders profit through a tax-loophole

    • Acted in an acceptable business manner.

    • Engaged in illegal behavior

    • Executed its responsibility to its owners

    Correct Answer
    A. Engaged in illegal behavior
    Explanation
    WorldCom engaged in illegal behavior by using intentional accounting irregularities to make the company appear more profitable than it actually was. This deceptive practice violated accounting laws and regulations, and was a clear breach of ethical standards. By manipulating financial statements, WorldCom misled its stockholders and the public, which is not acceptable in any legitimate business. The company's actions were fraudulent and resulted in significant financial losses for investors, leading to its eventual bankruptcy and the conviction of several top executives.

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  • 42. 

    Planning involves setting the organizational vision, goals and objectives

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Planning is a crucial management function that involves determining the organization's vision, goals, and objectives. It is the process of setting a direction for the organization and outlining the necessary steps to achieve the desired outcomes. By establishing the vision, goals, and objectives, planning provides a roadmap for the organization's actions and helps in aligning efforts towards a common purpose. Therefore, the statement "Planning involves setting the organizational vision, goals and objectives" is true.

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  • 43. 

    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. 

    • True

    • False

    Correct Answer
    A. True
    Explanation
    The statement is true because agents typically work on behalf of a specific company or individual and develop long-term relationships with their clients. They provide ongoing support and guidance, acting as a representative for their clients. On the other hand, brokers are usually hired on a temporary basis to facilitate a specific transaction or deal. They may work with multiple clients and do not typically maintain long-term relationships.

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  • 44. 

    The resources that contribute to the creation of wealth are known as ________. 

    • Production coefficients

    • Factors of production

    • Production technologies

    • Production agregates

    Correct Answer
    A. Factors of production
    Explanation
    Factors of production are the resources that contribute to the creation of wealth. These resources include land, labor, capital, and entrepreneurship. Land refers to natural resources such as land itself, minerals, and water. Labor refers to the human effort involved in production. Capital refers to the tools, machinery, and infrastructure used in production. Finally, entrepreneurship refers to the ability to organize and combine these resources to create goods and services. Together, these factors of production play a crucial role in economic growth and wealth creation.

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  • 45. 

     Foreign direct investment refers to the buying of goods produced in another country

    • True

    • False

    Correct Answer
    A. False
    Explanation
    Foreign direct investment refers to the investment made by a company or individual from one country into a business or project located in another country. It involves the acquisition of assets, such as stocks, bonds, or real estate, and does not specifically refer to the buying of goods produced in another country. Therefore, the statement "Foreign direct investment refers to the buying of goods produced in another country" is false.

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  • 46. 

    The four eras of the evolution of marketing are (1) production, (2) selling, (3) advertising, and (4) stakeholder relationships

    • True

    • False

    Correct Answer
    A. False
    Explanation
    The statement is false because the four eras of the evolution of marketing are (1) production, (2) sales, (3) marketing, and (4) societal marketing. The eras mentioned in the statement are not accurate.

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  • 47. 

    Enforcement is perhaps the most important step in an effective code of ethics

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Enforcement is indeed a crucial step in an effective code of ethics. Without proper enforcement, a code of ethics becomes merely a set of guidelines without any real consequences for non-compliance. Effective enforcement ensures that individuals and organizations are held accountable for their actions and that ethical standards are upheld. It helps to create a culture of integrity and trust, as well as deter unethical behavior. Therefore, the statement "Enforcement is perhaps the most important step in an effective code of ethics" is true.

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  • 48. 

    A flat organization is less likely to respond quickly to customer needs

    • True

    • False

    Correct Answer
    A. False
    Explanation
    Flat organizations have wider spans of control. A wider span of control lends itself to empowering lower level employees to respond more quickly to customer needs, without the need to get permission from managers.

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  • 49. 

    The line of authority that moves from the top of a hierarchy to the lowest level is called the: 

    • Chain of logic

    • Chain of command

    • Organizational design

    • Delegation of contingent authority

    Correct Answer
    A. Chain of command
    Explanation
    The correct answer is chain of command. Chain of command refers to the line of authority that flows from the top of a hierarchy to the lowest level. It establishes the order in which decisions are made and instructions are passed down within an organization. This ensures clear communication, accountability, and efficient functioning of the organization.

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  • Current Version
  • Mar 21, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Dec 09, 2010
    Quiz Created by
    Acasto5

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