Principles

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Principles

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  • 1. 
    Letters of inquiry that businesses write to other businesses are routine business communication and usually contain only
    • A. 

      Basic information.

    • B. 

      Complex instructions.

    • C. 

      Confidential data.

    • D. 

      Technical explanations.

  • 2. 
    What can you do to project to customers that they are important to the business?
    • A. 

      Stare at customers so they know you are listening.

    • B. 

      Use customer names in conversations.

    • C. 

      Request a supervisor's assistance in resolving problems.

    • D. 

      Speak loudly so that customers can easily hear your responses.

  • 3. 
    • A. 

      Adaptability

    • B. 

      Assertiveness

    • C. 

      Self-control

    • D. 

      Interest and enthusiasm

  • 4. 
    About a week before her 16th birthday, Kimberly got a phone call from her grandparents. They explained that they wanted to give her $1,000 to put toward college expenses as a birthday present, but they weren't sure if she wanted the money now or in two years, when she would be starting college. Kimberly decided to get the $1,000 from her grandparents right away and put it into an interest-bearing savings account for two years. Kimberly based her decision on
    • A. 

      The time value of money.

    • B. 

      The concept of absolute advantage.

    • C. 

      The capital gains potential.

    • D. 

      Foreign exchange rate.

  • 5. 
    One way to show empathy toward another person is to
    • A. 

      Be frank at all times.

    • B. 

      Share your own experiences.

    • C. 

      Keep your distance.

    • D. 

      Resist involvement.

  • 6. 
    A business uses a spreadsheet software program to track monthly sales for each salesperson and calculate commissions. Based on the following spreadsheet data, how much more will the business owe its salespeople for last month if it decides to raise the commission rate by 1%:
    • A. 

      $2,856.50

    • B. 

      $2,391.20

    • C. 

      $2,625.30

    • D. 

      $2,578.70

  • 7. 
    Which of the following is an example of an activity associated with the directing function of management
    • A. 

      A manager coordinates the tasks of a cross-functional work team.

    • B. 

      Pedro interviews several applicants for an open position in the finance department.

    • C. 

      A manager disciplines an employee for inappropriate behavior in the workplace.

    • D. 

      Carmen recommends changes to increase outputs on the production line.

  • 8. 
    A message from the company president to all employees concerning a change in insurance coverage is a form of __________ communication.  
    • A. 

      Staff

    • B. 

      Informal

    • C. 

      Upward

    • D. 

      Lateral

  • 9. 
    When you ask questions in an open-minded way, you avoid
    • A. 

      Suggesting a better way to do something.

    • B. 

      Attacking someone else's idea.

    • C. 

      Stating your own opinion.

    • D. 

      Mentioning the truth.

  • 10. 
    One of the most important pieces of information needed to process a customer's telephone order is the 
    • A. 

      Customer's age.

    • B. 

      Method of payment

    • C. 

      Country of birth.

    • D. 

      Number of dependents.

  • 11. 
    Certificates of deposit and collectibles are types of
    • A. 

      Investments.

    • B. 

      Securities.

    • C. 

      Accounts.

    • D. 

      Earnings.

  • 12. 
    What is a benefit to a business of having written records of financial transactions?
    • A. 

      Investments are increased, and profit is reinvested.

    • B. 

      Accounting is simplified and less detailed.

    • C. 

      Expenses are reduced, and income is increased.

    • D. 

      Information is accurate, accessible, and meaningful.

  • 13. 
    Randy has three tasks that he must complete in the next two days. One task that he must do is to develop the production schedule for next week, which is due by 12:30 p.m. tomorrow and will take him approximately three hours to complete. Randy must also finish a PowerPoint presentation for a meeting at 4:00 today, which will take him approximately two hours to complete. And, he must prepare and place an order for parts by 1 p.m. today, so the order arrives by next Monday. It is currently 12:15 p.m. In what order should Randy prioritize his work load?
    • A. 

      Prepare and place the order; develop the production schedule; complete the PowerPoint presentation.

    • B. 

      Develop the production schedule; prepare and place the order; complete the PowerPoint presentation.

    • C. 

      Prepare and place the order; complete the PowerPoint presentation; develop the production schedule.

    • D. 

      Complete the PowerPoint presentation; prepare and place the order; develop the production schedule.

  • 14. 
    Phil has a one-hour sales meeting with a new customer at 11 a.m. today. Early this morning, a vendor telephoned Phil to schedule a one-hour luncheon meeting to discuss a co-op advertising program. The vendor would like to meet at a restaurant that is 30 minutes from Joe's office at 1:00 p.m. today. Joe must be back at his office by 2:00 p.m. for an important computer training session. Should Joe meet with the vendor today?
    • A. 

      Yes, Phil can meet the vendor after the vendor changes the meeting time to 12:45 p.m.

    • B. 

      No, it is rude for the vendor to assume that Phil wants to meet them today.

    • C. 

      Yes, Phil can meet the vendor after he reschedules his 2:00 p.m. training session

    • D. 

      No, Phil only would have 30 minutes to meet with the vendor before he needs to return to the office.

  • 15. 
    It is important for employees to follow the rules of conduct established by management to
    • A. 

      Prevent workplace conflict.

    • B. 

      Increase the need for professional development.

    • C. 

      Maintain a fair and consistent workplace environment.

    • D. 

      Ensure that everyone is compensated equally.

  • 16. 
    As Maria uses her credit card to make purchases in a responsible manner, she should remember that credit is a(n)
    • A. 

      Privilege

    • B. 

      Loan

    • C. 

      Asset

    • D. 

      Mortgage

  • 17. 
    One way to reduce the risk of identity theft is to
    • A. 

      Shred old bank statements

    • B. 

      Use strong passwords

    • C. 

      Photocopy old credit card receipts

    • D. 

      Run regular virus scans

  • 18. 
    Bob has won some money in a lottery, and he wants to become a business owner. However, he has a full time job as a teacher that he plans to keep and very little time to devote to his business. What type of business ownership should he consider?
    • A. 

      Corporation

    • B. 

      General partnership

    • C. 

      Sole proprietorship

    • D. 

      Franchise

  • 19. 
    The purpose of active listening is to
    • A. 

      Help make boring lectures more interesting.

    • B. 

      Let the speaker know that you agree with the message and plan to act on it.

    • C. 

      Give the speaker your opinion.

    • D. 

      Let the speaker know that the message has been received and understood.

  • 20. 
    Mikael has a $20 bill. Although this money is just a piece of paper and not backed up by a reserve, Mikael is still able to buy groceries with it because everyone in his country treats it as currency. This $20 bill is known as ______ currency.
    • A. 

      Paper

    • B. 

      Commodity

    • C. 

      Electronic

    • D. 

      Fiat

  • 21. 
    Valerie is developing a personal budget for the first time. Which of the following is the first step sheshould take:
    • A. 

      Adjust her debt payments

    • B. 

      Set her financial goals

    • C. 

      Know her income

    • D. 

      Estimate her fixed expenses

  • 22. 
    On Samantha's first pay stub, she sees that her gross pay is $150.00, and her net pay is $125.00. When she cashes her check, she will have ________ that she can deposit into her bank account. 
    • A. 

      $25.00

    • B. 

      $125.00

    • C. 

      $150.00

    • D. 

      $275.00

  • 23. 
    • A. 

      To gain management's approval

    • B. 

      To increase productivity levels

    • C. 

      To increase absenteeism

    • D. 

      To protect themselves and the business

  • 24. 
    Jerry works as a cashier. When Jerry's brother purchased a fishing rod that was marked $130.00, Jerry charged him $75.00. Jerry's supervisor told him this was __________ fraud.
    • A. 

      Point-of-sale

    • B. 

      Price-ticket switching

    • C. 

      Record keeping

    • D. 

      Inventory

  • 25. 
    The operations manager schedules quarterly reviews of office equipment whether there have been recent problems or not. This is an example of
    • A. 

      Safety precautions.

    • B. 

      Preventive maintenance.

    • C. 

      Installation.

    • D. 

      Corrective maintenance.

  • 26. 
    The president of the Acme Company identifies the jobs to be accomplished and assigns responsibility for completing those jobs to specific departments. What management function is the president performing?
    • A. 

      Organizing

    • B. 

      Staffing

    • C. 

      Planning

    • D. 

      Controlling

  • 27. 
    • A. 

      Unpleasant working environment

    • B. 

      Unable to get along with supervisor

    • C. 

      Left for a better job

    • D. 

      Unfair supervisor

  • 28. 
    • A. 

      No, the business will discard the letter if it has no openings.

    • B. 

      Yes, the worker can write if s/he has heard about a job opening.

    • C. 

      Yes, the worker should write to each business in the industry.

    • D. 

      No, a letter is used only in response to job advertisements.

  • 29. 
    While preparing her annual income tax return, Kate determined that she had her employer withhold more tax than necessary. As a result, Kate is eligible for a government
    • A. 

      Refund.

    • B. 

      Due bill.

    • C. 

      Deduction.

    • D. 

      Reference.

  • 30. 
    When reconciling a bank statement, you use checkmarks to do which of the following:
    • A. 

      Correct the deposits you have missed

    • B. 

      Void the checks you have ruined

    • C. 

      Total the interest you have received

    • D. 

      Identify the items you have compared

  • 31. 
    Your ability to empathize with someone else is limited by the number/nature of your experiences and by your
    • A. 

      Physical traits.

    • B. 

      Self-understanding.

    • C. 

      Intelligence.

    • D. 

      Job skills.

  • 32. 
    EB Games has just recieved a shipment of a new PC game that has been on order for several weeks. The best way for the store's manager to advise EB Games sales associates that the game is available is by
    • A. 

      Placing sales circulars in display racks.

    • B. 

      Sending an e-mail to the store's cashiers.

    • C. 

      Distributing a memo to the store's buyers.

    • D. 

      Holding a short sales-staff meeting.

  • 33. 
    Ace Hardware wants to purchase a computer program that performs a variety of related functions, such as accounts payable, accounts receivable, and general ledger applications. Ace Hardware should purchase a  ____________ computer package.
    • A. 

      Customer identification

    • B. 

      Financial software

    • C. 

      Marketing intelligence

    • D. 

      Integrated software

  • 34. 
    One reason that buyers might decide to use only a few suppliers is to
    • A. 

      Gain an increased selection.

    • B. 

      Obtain quantity discounts.

    • C. 

      Encourage vendor competition.

    • D. 

      Acquire a greater variety of goods.

  • 35. 
    • A. 

      Fee structure

    • B. 

      Tax status

    • C. 

      Office location

    • D. 

      Gross income

  • 36. 
    The process of providing a service and/or making a good is called
    • A. 

      Production.

    • B. 

      Business.

    • C. 

      Marketing.

    • D. 

      Financing.

  • 37. 
    The supervisor's response to an employee's orderly and systematic behavior on the job should be
    • A. 

      Indifference

    • B. 

      Criticism

    • C. 

      Praise

    • D. 

      Favouritism

  • 38. 
    Adrian works from his home office on Tuesdays and Thursdays. This is known as
    • A. 

      Networking

    • B. 

      Information gathering

    • C. 

      Collaborating

    • D. 

      Telecommuting

  • 39. 
    In order for a contract between two parties to be legally binding, one party must make an offer and the other party must accept the offer. This offer and acceptance meet the __________ provision.
    • A. 

      Consideration

    • B. 

      Legality

    • C. 

      Competent parties

    • D. 

      Agreement

  • 40. 
    Supplemental materials that help to explain the information contained in a simple report can be included in the form of
    • A. 

      Resources

    • B. 

      Attachments

    • C. 

      References

    • D. 

      Bibliographies

  • 41. 
    When an agent legally acts in the best interests of his/her client, the agent is establishing a(n) _______ relationship.
    • A. 

      Authoritative

    • B. 

      Principal

    • C. 

      Fiduciary

    • D. 

      Legislative

  • 42. 
    Which of the following statements would be placed in the introductory section of a research report:
    • A. 

      The survey consisted of 100,000 respondents from the southern region of the country.

    • B. 

      The statistics indicate that the business is losing up to 25% of its market share to new competitors.

    • C. 

      The purpose of this study is to determine why sales have been decreasing for four consecutive quarters.

    • D. 

      Based on the previously stated findings, it is recommended that the XYZ Company revise its operating budget.

  • 43. 
    What channel of staff communication are managers usually unable to control?
    • A. 

      Grapevine

    • B. 

      Formal

    • C. 

      Downward

    • D. 

      Objective

  • 44. 
    The amount of satisfaction a product will provide a customer is referred to as the product's
    • A. 

      Price.

    • B. 

      Value.

    • C. 

      Market.

    • D. 

      Incentive.

  • 45. 
    Risks that may result in a loss, no change, or a gain are
    • A. 

      Insurable.

    • B. 

      Uninsurable.

    • C. 

      Avoidable.

    • D. 

      Unimportant.

  • 46. 
    Individuals put limits on their own economic freedom by
    • A. 

      Complying with the law.

    • B. 

      Competing with others.

    • C. 

      Making personal economic choices.

    • D. 

      Deciding to learn new job skills.

  • 47. 
    When doing business in Taiwan, foreigners should avoid winking because this is considered a(n)
    • A. 

      Sincere greeting.

    • B. 

      Negotiation tactic

    • C. 

      Verbal insult.

    • D. 

      Inappropriate gesture.

  • 48. 
    Paige is a Canadian businessperson who is attending a meeting in India. What should Paige wear to the meeting to make a positive, professional impression?
    • A. 

      Leather belt

    • B. 

      Ornate jewelry

    • C. 

      Conservative pantsui

    • D. 

      Sleeveless dress

  • 49. 
    Susan is a purchasing manager for a manufacturer. On Monday, Susan received a call from the plant manager, who frantically told Susan that the production line ran out of 3/8” washers, which has forced production to stop. Because Jason is the senior buyer in charge of ordering the washers, Susan set up a meeting with Jason to discuss the problem. During the meeting, Susan asked Jason to explain why the washers were out of stock. Jason replied, “Well, I told the office assistant to check the inventory. It's not my fault that we don't have the washers in stock.” What is Jason doing?
    • A. 

      Blaming another person for his mistake.

    • B. 

      Helping Susan to resolve the problem.

    • C. 

      Providing Susan with a valid reason for the stock-out.

    • D. 

      Denying that a problem exists.

  • 50. 
    Which of the following is a cost of credit:
    • A. 

      Discounts

    • B. 

      Finance charges

    • C. 

      Fidelity bonds

    • D. 

      Rebates

  • 51. 
    What is an important question that a manager must consider when hiring a new employee?
    • A. 

      What are the company's product quality standards?

    • B. 

      How should the workload be distributed?

    • C. 

      How will the company compensate this worker?

    • D. 

      What is the company's vision?

  • 52. 
    The cash conversion cycle should be
    • A. 

      At equilibrium.

    • B. 

      As long as possible.

    • C. 

      As short as possible.

    • D. 

      On an upward trends.

  • 53. 
    Information consists of facts and data for a specific situation or condition, and knowledge consists of __________ and ___________ that accumulate over time.
    • A. 

      Definitions, competence

    • B. 

      Data, expertise

    • C. 

      Symbolisms, transitions

    • D. 

      Fabrications, creativity

  • 54. 
    An economy with a high unemployment level tends to have
    • A. 

      A high supply of money.

    • B. 

      A lower rate of inflation.

    • C. 

      Fewer monetary policies.

    • D. 

      Rapid GDP growth.

  • 55. 
    Who is most likely to report to a company's chief executive officer?
    • A. 

      Vice president of finance

    • B. 

      Board of directors

    • C. 

      Regional production coordinator

    • D. 

      Store clerk

  • 56. 
    Pamela has devised a process that helps her complete her work in a more efficient manner. This is an example of
    • A. 

      Statistical information.

    • B. 

      Raw data.

    • C. 

      Quantitative fact.

    • D. 

      Tacit knowledge.

  • 57. 
    What do companies often use to assign and track various business tasks?
    • A. 

      Customer database

    • B. 

      Accountability matrix

    • C. 

      Surveillance system

    • D. 

      ID cards

  • 58. 
    Mr. Daly bought a vacation cottage on lakefront property. What type of investment did Mr. Daly purchase?
    • A. 

      Securities

    • B. 

      Stock

    • C. 

      Ownership

    • D. 

      Escrow

  • 59. 
    Which of the following is an example of a person using credit in a responsible manner:
    • A. 

      Maintaining a low credit rating

    • B. 

      Paying credit-card balances on time

    • C. 

      Seeking counseling to reduce unmanageable debt

    • D. 

      Using only low-interest credit cards

  • 60. 
    As a manager, Pablo is taking steps to correct a problem that is affecting the business's productivity. Which of the following types of control is Pablo using:
    • A. 

      Rework

    • B. 

      Functional

    • C. 

      Contigency

    • D. 

      Preliminary

  • 61. 
    Michelle has acquired proof that her coworker Ted has been embezzling money from the company. If Michelle fails to inform her employer about Ted's activities, what will likely occur?
    • A. 

      The company will have to pay non-compliance fines

    • B. 

      The company's property insurance premium will increase.

    • C. 

      Ted will be charged with a felony.

    • D. 

      The company's financial risk will increase.

  • 62. 
    Which of the following is the proper sequence for the chain of command:
    • A. 

      Chief Executive Officer, Chief Financial Officer, Accounting Department Manager, and Accounts Payable Specialist

    • B. 

      Accounting Department Manager, Accounts Payable Specialist, Chief Executive Officer, and Chief Financial Officer

    • C. 

      Chief Financial Officer, Chief Executive Officer, and Accounting Department Manager, and Accounts Payable Specialist

    • D. 

      Chief Executive Officer, Chief Financial Officer, Accounts Payable Specialist and Accounting Department Manager

  • 63. 
    A project manager who wants a central location that contains relevant information about each component of the work breakdown structure (WBS) should develop a
    • A. 

      WBS executive summary

    • B. 

      WBS dictionary

    • C. 

      WBS thesaurus

    • D. 

      Training chart

  • 64. 
    Cassandra is a buyer for a department-store chain. On Tuesday, she placed a seasonal order with an apparel vendor without providing specific models, sizes, colors, or ship dates. What type of order did Cassandra place?
    • A. 

      Standing

    • B. 

      Special

    • C. 

      Blanket

    • D. 

      Rush

  • 65. 
    Which of the following loans would have the lowest total simple-interest charges:
    • A. 

      A loan for $4,000 @ 9% interest for 6 years

    • B. 

      A loan for $7,000 @ 8% interest for 2 years

    • C. 

      A loan for $6,000 @ 8 1/2% interest for 1 year

    • D. 

      A loan for $5,000 @ 8 3/4% interest for 4 years

  • 66. 
    When you look at whether or not your project is “do-able,” what should you examine?  
    • A. 

      What the project is exactly

    • B. 

      How much money the stakeholders want to invest

    • C. 

      How long you have to complete the project

    • D. 

      What could happen with a similar project

  • 67. 
    • A. 

      Monopolistic

    • B. 

      Productive

    • C. 

      Buyer's

    • D. 

      Competitive

  • 68. 
    What should project managers do when an unexpected situation occurs during the execution of a complex project?
    • A. 

      Reassign work

    • B. 

      Work overtime

    • C. 

      Get support

    • D. 

      Be flexible

  • 69. 
    The primary focus of most professional organizations/associations is generally to
    • A. 

      Expand members' professional knowledge.

    • B. 

      recruit new association members.

    • C. 

      Promote the field of marketing.

    • D. 

      Increase profit for their members.

  • 70. 
    As the principal in an agency business relationship, Lynn tells Bob to take specific action on her behalf under certain circumstances. What type of authority has Lynn given Bob?
    • A. 

      Unlimited

    • B. 

      Temporary

    • C. 

      Provisional

    • D. 

      Express

  • 71. 
    There are six workers employed by a manufacturer. Over the course of six months, the manufacturer hires a new worker every month, so that at the end of the hiring period there are 12 workers total. The total output increased dramatically with the hiring of the first two workers. It increased less dramatically with each new hiring after the first two. This is an example of the law of diminishing
    • A. 

      Utility.

    • B. 

      Returns.

    • C. 

      Output.

    • D. 

      Production.

  • 72. 
    In order for an accounting system to be useful to the business, the accounting information it contains must be
    • A. 

      Approved by the chief executive officer.

    • B. 

      Posted by an accountant.

    • C. 

      Accurate and up-to-date.

    • D. 

      Recorded using the accrual method.

  • 73. 
    Jim likes to tease Susie because she gets upset, but she doesn't say anything to him about it. What kind of behavior is Susie exhibiting? 
    • A. 

      Passive

    • B. 

      Aggressive

    • C. 

      Independant

    • D. 

      Verbal

  • 74. 
    What does the Occupational Safety and Health Administration (OSHA) require all companies to have available for use?
    • A. 

      Emergency generator units

    • B. 

      Replacement office equipment

    • C. 

      Adequate first-aid supplies

    • D. 

      Back-up power sources

  • 75. 
    Which of the following is an example of an economic activity:
    • A. 

      Conducting a meeting

    • B. 

      Buying new company equipment

    • C. 

      Complimenting a coworker

    • D. 

      Developing an advertising budget