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Appendix A 1 Congress prohibited discrimination against people with physical disabilities when they enacted the Americans with Disabilities Act. This is an example of common law
AppA 1. (p. 574) The executive branch of the government is responsible for overseeing the legal system. 2. (p. 574) The U.S. court system is organized solely at the federal and state levels. FALSE LG: 1 LL: 1 Nickels – […]
Appendix A 2 Requiring that both parties are competent for a contract to be legal protects those who might be unable to protect themselves
101. (p. 580) When each party to a contract provides something of value to the other party, the principle of mutual acceptance has been satisfied. 102. (p. 581) Requiring that both parties are competent for a contract to be legal […]
Appendix A 3 Which of the following holds a company liable for damages caused by a defective product even if the firm was unaware of the defect at the time of sale
191. (p. 574) The Griggs v. Duke Power Company (1971) case established a precedent on the need to use job-related tests in employment practices. Similar court cases have been decided based on this decision. This is an example of: D. […]
Appendix A 4 Big Johnson charges other firms similar to Moe’s Meats more for the same products and this is beginning to hurt the business of the other firms
239. (p. 584) Which of the following was included in the basic rights of consumers as proposed by President John Kennedy? A. the right to the best price 240. (p. 583) Big Johnson Products charges Moe’s Meats a lower price […]
Appendix B 2 Computing costs go up with productivity losses as a company upgrades and troubleshoots equipment as well as trains employees to use the system
91. (p. 605) In a network computing system, computational tasks are handled by personal computers, but the information needed to complete the tasks is stored in databases controlled by a server. 92. (p. 605) A disadvantage of network systems is […]
Appendix B 3 Sales manager Stephen Edmonson has just finished reading a printout of some statistics showing how his company’s sales performance compares to that of competing
175. (p. 597) The use of knowledge technology should result in a(n): A. greater reliance on mainframe computers. 176. (p. 598) In order to compete successfully in the future, businesses must design information systems that: A. improve current business methods. […]
Appendix B 5 Jason Hart was recently informed by his bank that someone illegally broke into the bank’s computer system and gained access to information about customer account numbers
271. (p. 608-609) Which of the following is an advantage of telecommuting? A. Workers are not included in the office loop. 272. (p. 610) Which of the following statements about computer viruses is most accurate? A. Viruses could be completely […]
Appendix B The Edutext Company has adopted a system that allows its employees to use Windows-based applications. Each user has a machine that resembles
235. (p. 606) The Edutext Company has adopted a system that allows its employees to use Windows-based applications. Each user has a machine that resembles a desktop PC. However, these desktop machines lack the processing power to perform all the […]
Appendix B Though the types of technology used by businesses have changed over the last several decades, the role of business technology has remained remarkably constant
AppB 1. (p. 596) Though the types of technology used by businesses have changed over the last several decades, the role of business technology has remained remarkably constant. 2. (p. 596) In the 1970s business technology was known as data […]
Appendix C 1 Southern Deliveries has decided to manage risk by requiring drivers to wear seat belts, have a commercial driver’s license, monitor any moving violations each driver obtains commercial driver’s license, monitor any moving violations each driver obtains
AppC 1. (p. 620) The management of risk is a small part of American business. 2. (p. 620) An enterprise risk management (ERM) program has a goal of defining which risks the program will manage. TRUE LG: 1 LL: 1 […]
Appendix C 2 The threat of lawsuits has caused some drug companies not to manufacture certain types of vaccines. What type of risk management option is being practiced
96. (p. 621) ________ is a term that refers to the chance of loss, the degree of probability of loss, and the amount of possible loss. A. Speculation 97. (p. 621) ________ risk involves a chance of either profit or […]
Appendix C 3 Marianne has just graduated from college and as part of her orientation in her new job she must choose the type of health insurance plan she would like
132. (p. 627) Home-based business owners add a ________ to their homeowner’s insurance policy to ensure that they have adequate coverage. A. deductible unit 133. (p. 626) ________ insurance replaces part of your income if you become unable to work […]
Appendix D 1 Once you have evaluated your current financial situation and know your sources of income and expenses, you have reached the point where you can establish a personal budget
AppD 1. (p. 634) The value of education is often exaggerated when searching for a good job. 2. (p. 634) The average lifetime income of someone with an undergraduate degree is about $1.6 million higher than for someone with only […]
Appendix D 2 Wendy wants to obtain life insurance at the lowest possible cost, but is leery of term insurance because she has heard the premiums tend to go up every few years
97. (p. 642) Wendy wants to obtain life insurance at the lowest possible cost, but is leery of term insurance because she has heard the premiums tend to go up every few years. One way for her to avoid this […]
Appendix D 3 Slobo is an immigrant to the United States from a formerly communist country. He is searching for advice to help him succeed in a capitalist system
177. (p. 640) About _______ of all U.S. households own stock in corporations. 178. (p. 640) According to contrarians, the big decline in the stock market during the early 2000s was: A. a great opportunity to invest in stocks. B. […]
Appendix D 4 Trends in the number of workers contributing to the Social Security system and the number of workers drawing benefits from the system suggest that future generations will
D. adequately provide for all the retirement income the typical retiree needs to live comfortably. LG: 4 LL: 1 Nickels – Chapter D… #228 229. (p. 644) Trends in the number of workers contributing to the Social Security system and […]
Chapter 1 1 The knowledge and skills learned in business courses are seldom relevant to students who work for nonprofit organizations or volunteer groups
c1 1. (p. 4) Any organization that produces a good or service can be classified as a business. 2. (p. 4) Businesses seek to earn a profit by providing goods and services to others. TRUE LG: 1 LL: 1 Nickels […]
Chapter 1 2 Over the past several years, workers in the small nation of Rain land have enjoyed an increase in the number of holidays and a reduction
97. (p. 15) The databases of a business often include a great deal of information about the firm’s customers. 98. (p. 15) Information in a database allows firms to carry only the products that the local population wants. TRUE LG: […]
Chapter 1 3 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
186. (p. 5) The amount of goods and services people can buy with the money they have is called their: A. nominal income. 187. (p. 5) The customers, employees, stockholders, suppliers, creditors, and others who stand to gain or lose […]
Chapter 1 4 Kisa is a production manager at Western Widgets, Inc., a manufacturing corporation that sells its products world wide. Thanks in part to Kisa’s efforts
253. (p. 16) To implement a policy of empowerment, the organization sometimes has to restructure so that: A. managers have more responsibility and employees learn to follow directions. 254. (p. 15–16) Which of the following statements about the competitive environment […]
Chapter 10 1 A key element of Frederick Taylor’s approach was the time-motion study, which examined the tasks performed to complete a job and the time needed to complete each task
c10 1. (p. 260) The sense of satisfaction you get when you achieve an important goal is an intrinsic reward. 2. (p. 260) Extrinsic rewards are those that are given to a person by someone else. TRUE LG: 1 LL: […]
Chapter 10 2 According to William Ouchi, two of the main features of the Japanese approach to management are individual decision-making and rapid promotions
86. (p. 271) Many service firms have found that management styles that are consistent with McGregor’s Theory Y are helpful in dealing with problems. 87. (p. 271) According to William Ouchi, two of the main features of the Japanese approach […]
Chapter 10 3 New employees at Throne berry Manufacturing are carefully trained to use the most efficient production methods. They are then placed on an assembly line and expected to perform
169. (p. 260) Weldon Task has just successfully negotiated a new long-term sales agreement with a major client. The personal satisfaction Weldon has about his efforts is his ________ reward. A. external 170. (p. 260) Maureen’s supervisor was so impressed […]
Chapter 10 4 The employees follow a somewhat specialized career path and have individual responsibility for results. Forester’s approach is an example of
231. (p. 269-270) ________ used the terms Theory X and Theory Y to describe different attitudes managers had about employees. A. Robert Colby 232. (p. 269-270) Douglas McGregor described two very different sets of managerial attitudes about employees, which he […]
Chapter 10 5 Paul Blocker is the offensive line coach for the Lisolini College Fighting Hampsters. He wants his players to report to fall practice in good shape
284. (p. 274) Paul Blocker is the offensive line coach for the Lisolini College Fighting Hampsters. He wants his players to report to fall practice in good shape. Coach Blocker has set challenging fitness standards that the linemen will be […]
Chapter 11 1 The process of recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organizational goals is called internal organizational management
c11 1. (p. 288, figure 11.1) The process of recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organizational goals is called internal organizational management (IOM). 2. (p. 288) Human resource management is receiving increased attention because the […]
Chapter 11 2 Haller’s School of Truck Driving is proud of its training methods. Before its students are ever allowed on the road with a big rig, they are taught safe driving techniques with the help of sophisticated
89. (p. 300) Women usually find it easier than men to obtain mentors and engage in networking. 90. (p. 300) So far, among all minority groups, only Asian-Americans have realized the need for networking. FALSE LG: 5 LL: 1 Nickels […]
Chapter 11 3 Recent federal law clearly and strongly supports the notion that companies must use employment quotas to correct for past discriminatory actions
175. (p. 312) The Civil Rights Act of 1991 gave victims of discrimination the right to seek punitive damages from the firms that discriminated against them. 176. (p. 312) Recent federal law clearly and strongly supports the notion that companies […]
Chapter 11 4 Betty Roosevelt is a human resource manager with Avondale Industries. Her current assignment is to revise and update Avondale’s employment testing procedures
240. (p. 295) Preemployment physical examinations are: D. legal in all states, but seldom used. Physical exams are a good way to ensure that the firm is hiring individuals who are healthy enough to handle the requirements of the job, […]
Chapter 11 5 Human resource managers at Tri Max, Inc. want to encourage teamwork and are looking for a better way to compensate members of teams. One approach they are considering is a skill-based system
306. (p. 306, Reaching Beyond Our Borders box) According to the material in the “Reaching Beyond Our Borders” box for Chapter 11, which of the following statements about working with employees from different countries is most accurate? D. More often […]
Chapter 11 6 Evan McConnell is angry and upset because he was passed over for a promotion even though he believes he was the most qualified candidate. He heard through the company grapevine the promotion
344. (p. 313) The ____________ protects individuals over the age of 40 from discrimination based on age with respect to issues such as hiring, promotions, job benefits, and assignments. D. Employee Rights and Responsibilities Act of 1983 LG: 10 LL: […]
Chapter 12 1 A union is an employee organization that has the main goal of representing its members in employee-management negotiation concerning job-related issues
c12 1. (p. 322) Throughout most of American history, the relationship between managers and employees has been fairly smooth. 2. (p. 322) It is important that managers are popular with the non-management workers that they manage. FALSE LG: 1 LL: […]
Chapter 12 2 In a primary boycott, a union encourages its members and the general public not to buy the goods and services produced by a firm involved in a labor dispute
94. (p. 332) Postal workers and other employees of the federal government who provide important services are allowed to form unions, but are denied the right to strike. 95. (p. 332) The “blue flu” refers to a situation in which […]
Chapter 12 3 The AFL originally was a federation of craft unions that did not attempt to organize industrial unions. The main reason for this strategy was that
181. (p. 324) In its early years, the AFL’s strategy was to: D. form one big craft union which everyone could join; but it later split into several smaller organizations. LG: 1 LL: 1 Nickels – Chapter 12 #181 182. […]
Chapter 12 4 In recent years some unions have granted concessions and given up benefits secured in earlier contract negotiations in an attempt to save jobs. These concessions are called
243. (p. 330, Reaching Beyond Our Borders box) According to information contained in the “Reaching Beyond Our Borders” box in Chapter 12, a major reason the nations belonging to the European Union are experiencing wage tension is that: A. the […]
Chapter 12 5 Paulo owns a few shares of stock in a large and diversified firm. He realizes that the CEO of the company is responsible for a multi-billion dollar business
292. (p. 342) The U.S. Department of Labor cites ________ as the third leading cause of job-related fatalities. D. toxic chemicals LG: 5 LL: 1 Nickels – Chapter 12 #292 293. (p. 342) The national Institute of Health estimates that […]
Chapter 13 1 18 P 350 Outstanding Service After The Sale Was Primary Focus Businesses
c13 1. (p. 350) Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of goods and services to facilitate exchanges that satisfy individual and organizational objectives. 2. (p. 350) The activities of marketers depend on […]
Chapter 13 2 With careful attention to controlling costs and quality, businesses can successfully satisfy consumers with a standardized product for different markets
92. (p. 362) Selecting which groups an organization can serve profitably is called target marketing. 93. (p. 362) With careful attention to controlling costs and quality, businesses can successfully satisfy consumers with a standardized product for different markets. FALSE LG: […]
Chapter 13 3 Keith has been hired as a marketing manager for a textbook publishing company. His primary responsibilities are likely to be concerned with
171. (p. 354) Bob has the responsibility for product development, pricing, promotion, and distribution of Hi Vee Vitamins for children. Bob’s job would not involve: A. test marketing. 172. (p. 354) Andre is a real estate agent who has an […]
Chapter 13 4 Consumer decisions regarding the products they buy are often influenced by their nationality, religion, or ethnic origin. Marketers realize that the consumer decision-making process
224. (p. 367) Consumer decisions regarding the products they buy are often influenced by their nationality, religion, or ethnic origin. Marketers realize that the consumer decision-making process is impacted by the consumers’: D. market position. Subculture is the set of […]
Chapter 14 1 Once an organization surveys the consumer’s wants and needs and has designed a group of products to meet those needs, and begun to market them in stores, the organization is assured of success
c14 1. (p. 376) When consumers calculate the value of a product, they look at the benefits and then subtract the cost. 2. (p. 376) Successful businesses constantly monitor consumer wants and needs. TRUE LG: 1 LL: 1 Nickels – […]
Chapter 14 2 Nailerman’s Hardware is a large chain of hardware stores that sells a line of tools under the Nailerman brand even though they were actually produced by another firm
102. (p. 386) Brand loyalty refers to the degree to which customers are satisfied with a brand and are committed to further purchases. 103. (p. 386) Although their names are similar, brand loyalty and brand equity are unrelated. FALSE LG: […]
Chapter 14 3 Lo Rider Wheels sells high quality bicycles and accessories. The store is known for a pleasant environment, friendly salespeople and an excellent service department
193. (p. 376) When consumers calculate the value of a product, they: A. subtract the cost of production from the market price. 194. (p. 376) Whether a consumer thinks a product provides the best value depends upon: A. the actual […]
Chapter 14 4 Some businesses use nostalgia ads to rekindle the memories and emotions of consumers to an earlier time and place. This technique of linking a brand name to a pleasant memory or favorable image
262. (p. 385) The Pillsbury Doughboy is an example of a: D. generic label. A trademark is a brand that has been given exclusive legal protection for both the brand name and the pictorial design. LG: 4 LL: 2 Nickels […]
Chapter 14 5 Which of the following represents a pricing strategy that establishes a low price in hopes of attracting a great number of customers and attempts to discourage competitors
317. (p. 393) A competition-based pricing strategy called __________involves one or more dominant firms establishing the pricing practices that all competitors in an industry follow. A. skimming 318. (p. 393) __________ is the process used to determine the profitability of […]
Chapter 15 1 A channel of distribution consists of the marketing intermediaries who join together to transport and store goods in their path from producers to consumers
c15 1. (p. 404) Organizations that assist in moving goods and services from producers to business and consumer users are called financial intermediaries. 2. (p. 404) Retailers and wholesalers are two major types of marketing intermediaries. TRUE LG: 1 LL: […]
Chapter 15 2 Firms that rely on electronic retailing are almost guaranteed success because they give companies easy access to literally millions of consumers all over the world
91. (p. 413) Firms that rely on electronic retailing are almost guaranteed success because they give companies easy access to literally millions of consumers all over the world. 92. (p. 413) Electronic retailing is selling goods and services over the […]
Chapter 15 3 Childress Manufacturing wants to ship a large quantity of its goods across the country. They have contacted Grunwell Shipping, Inc. to find out what the shipment would cost
182. (p. 422-423) The main difference between storage warehouses and distribution warehouses is that storage warehouses are relatively small, specialized facilities used to store one particular type of good for short periods while distribution warehouses are large facilities used to […]
Chapter 15 4 Sports Coasters sells good quality athletic wear by sending its customers a catalog nine times a year. The company has no retail stores, but offers a toll free order number
248. (p. 412) Producers of snack foods (such as candy bars) are most likely to use a(n) _____________ distribution strategy for their products. D. restrictive An intensive distribution strategy tries to make the product available in as many locations as […]
Chapter 15 5 Marketing manager Connie Smythe is concerned that her firm is doing a poor job of managing the movement of finished products to the final consumer. If Connie is right
293. (p. 419) __________ brings raw materials, packaging, other goods and services, and information from suppliers to producers. D. Supply side logistics LG: 7 LL: 1 Nickels – Chapter 15 #293 294. (p. 419) _________ change(s) raw materials, parts, and […]
Chapter 16 1 Integrated marketing communication simplifies the marketing process by replacing personal selling with extensive use of advertising to create a positive brand image
c16 1. (p. 432) As a component of the promotion mix, advertising includes each of the activities marketers use to inform people about products and persuade them to participate in an exchange. 2. (p. 432) A firm’s promotion mix refers […]
Chapter 16 2 To be effective and maintain its independence, the public relations department should avoid establishing close relationships with the media, community leaders
95. (p. 442) To be effective and maintain its independence, the public relations department should avoid establishing close relationships with the media, community leaders, and other corporate stakeholders. 96. (p. 442) Effective public relations demands a dialogue with customers so […]
Chapter 16 3 In their advertisements, Luther Pharmaceuticals asks consumers to judge their product, Ache-Free, against a well known competitor’s product to see that Ache-Free provides superior pain relief
183. (p. 434, figure 16.5) One advantage of magazine advertising is that: A. the ad must conform to post office regulations. 184. (p. 434, figure 16.5) The best advertising medium to reach a specific target market is: A. radio. B. […]
Chapter 16 4 Chip Off The Old Block is a new chocolate chip cookie created by the Arizona Cookie Company. To generate interest for this new product, the company sent a free package of six cookies
245. (p. 444, figure 16.8) Which of the following is a consumer sales promotion activity? D. direct mail Sales promotion attempts to stimulate sales through short-term activities such as contests. LG: 5 LL: 2 Nickels – Chapter 16 #245 246. […]
Chapter 17 1 Accounting is actually an easy subject for most people to understand because almost everyone is exposed to basic accounting concepts in their everyday life
c17 1. (p. 456) Accounting is actually an easy subject for most people to understand because almost everyone is exposed to basic accounting concepts in their everyday life. 2. (p. 456) Although managers who work for large firms must know […]
Chapter 17 2 Although a firm may use different inventory valuation methods, generally accepted rules of accounting state that these methods must produce the same dollar value
95. (p. 464) Assets are economic resources that are owned by a firm. 96. (p. 463) The fundamental accounting equation is as follows: Assets = Liabilities + Owners’ equity. TRUE LG: 4 LL: 1 Nickels – Chapter 17 #96 97. […]
Chapter 17 3 The basic earnings per share and the diluted earnings per share would have quite different values for a firm that relied heavily on preferred stock and convertible debt securities to acquire funds
194. (p. 473) One way to make ratio analysis more meaningful is to compare the ratios of one firm to those of other firms in the same industry. 195. (p. 474) A debt to owners’ equity ratio of 25% indicates […]
Chapter 17 4 Ralph owns a small business. Some friends have suggested that he should switch from his current manual accounting system to one that is computerized
262. (p. 461, figure 17.4) Accountant Alan Wingspan has just finished working on the balance sheet, income statement, and statement of cash flows for his company. The next step in the accounting cycle will involve: D. placing the data used […]
Chapter 17 5 As a bank loan officer, you are considering a loan application by Bama Bart’s Sporting Goods. The company has provided you with its balance sheet and income statement
323. (p. 471) Carlisle Communications is preparing its statement of cash flows. Among other things, this statement will show: A. net income from operations after taxes. 324. (p. 469, Legal Briefcase box) ElecTech Industries had in inventory two transformers, one […]
Chapter 18 1 Financial managers examine the data prepared by accountants and make recommendations to top management regarding strategies for improving the financial performance of the company
c18 1. (p. 484) Finance is the function in a business that acquires funds for the firm and manages those funds within the firm. 2. (p. 484) Managing a firm’s resources so that it can meet its goals and objectives […]
Chapter 18 2 As a financial manager for a large manufacturing firm, Gail evaluates the purchase of expensive machinery and construction of new facilities. She is analyzing capital expenditure proposals
99. (p. 492) Successful businesses establish restrictive credit policies encouraging customers to pay cash. 100. (p. 492) Offering cash discounts to customers who pay their bills by a certain date represents an effective technique to manage accounts receivable. TRUE Although […]
Chapter 18 3 Susan is convinced that her new business failed because she lacked the necessary funds to do the things that it takes to get a new business up and running. Her problem apparently was
193. (p. 484) Finance is most closely related to: A. marketing. 194. (p. 484, figure 18.1) Which business function involves credit management/collecting funds from customers? A. accounting B. production C. marketing D. finance LG: 1 LL: 1 Nickels – Chapter […]
Chapter 18 4 As a result of cash flow shortages, Washington Department Stores has fallen behind in payments to suppliers. Some suppliers are withholding shipments to Washington until
261. (p. 497) The process of ________ uses a firm’s accounts receivable as collateral for a loan. 262. (p. 497) A firm negotiates a(n) _________ with its bank so the firm will have access to a specified amount of unsecured […]
Chapter 18 5 Mort Tishian feels it’s necessary to predict revenues, costs, and expenses on a six-month basis. “It’s the only way you get an idea of what to expect,” explains Mort
299. (p. 500) One of the primary factors that influences the interest rate a firm pays on long-term loans is the: A. intensity of competition the firm faces. 300. (p. 503) Venture capital firms look to invest their funds in […]
Chapter 19 1 Your privately held firm needs additional funding for a planned expansion. Having never issued stock to the public, your firm should seek the advice and assistance of an investment banker
c19 1. (p. 512) Securities markets represent the financial marketplaces for stocks and bonds. 2. (p. 512) Securities markets provide private investors a place to buy and sell stocks, bonds, and mutual funds. TRUE LG: 1 LL: 1 Nickels – […]
Chapter 19 2 Before a corporation’s stock can be sold on a major stock exchange, the firm must provide detailed financial information to the Securities and Exchange Commission
103. (p. 520) The NASDAQ exchange is the oldest and largest securities market in the U.S. 104. (p. 520) Stock exchanges compete with each other for the listing of a corporation’s stock. TRUE LG: 4 LL: 1 Nickels – Chapter […]
Chapter 19 3 After planting wheat, Farmer Jones worries about the volatility in wheat prices. To reduce his risk, Farmer Jones should consider selling his wheat today in the futures market
199. (p. 530) If a firm defaults on interest payments on its bonds, the bondholders have the right to convert their investment into common stock. 200. (p. 531) Novice investors trading in commodities earn rates of return over the long […]
Chapter 19 4 Maplewood Toy Company hopes to raise long-term capital by promising in writing to repay the principal provided by potential creditors in ten years
279. (p. 515) Wyoming Mining utilizes a: D. retirement escrow account. A sinking fund requires the issuer of a bond to regularly set aside funds in a reserve account to provide for accumulated funds necessary to repay the principal of […]
Chapter 19 5 Samad wants to supplement his current investments with a high risk, low priced security. Which of these best fits his strategy of high risk, low price and a potentially high rate of return
348. (p. 526) Abraham found a $1000 face value bond that belonged to his father. He checked the Wall Street Journal and found the bond was currently selling for $1220. This bond sells at a: D. primary market. A bond […]
Chapter 19 6 As a widow, Gladys lives on the dividends from the stock investments of her late husband. Newly married Grace and Will are trying to build a nest egg to buy their first home
407. (p. 530) The interest rate on bonds rated BB or lower is ___________ that of most other bonds. A. the same as 408. (p. 530) Buying stock on margin allows an investor to borrow funds and buy shares of […]
Chapter 2 1 The study of how society chooses to employ resources to produce goods and services and to distribute them for consumption among various
c2 1. (p. 30) A major part of America’s business success is due to an economic and social climate that allows businesses to operate freely. 2. (p. 30) Global economics and politics have no influence on businesses in the United […]
Chapter 2 2 The total value of a country’s output of final goods and services in a given year is known as the nation’s gross domestic product
90. (p. 44) Deanne Beardon is a vocal critic of socialism. She likes to point out that in recent years the governments in many socialist countries have cut back on government services and have reduced taxes. Deanne believes that this […]
Chapter 2 3 The freedom of people to decide where they want to work and live, and what they want to buy or sell are basic capitalist rights under
168. (p. 32-34; Making Ethical Decisions box) In the boxed material “Making Ethical Decisions,” the results of Hurricane Katrina were discussed. Adam Smith would suggest that the reason that businesses like Wal-Mart helped the disaster victims was: D. it was […]
Chapter 2 4 The nation of Try land has seen the total value of the goods and services it produces increase rapidly over the past year. This would show up most clearly as a
235. (p. 46) The total value of final goods and services produced within a nation’s borders in a given year is known as that nation’s: A. aggregate production quota 236. (p. 46) Three of the major indicators of the economic […]
Chapter 20 1 28. (p. 546) Several European countries report a significant decrease in the level of jobs, income, and production of goods and services. The size and strength of the U.S. economy insulates U.S
c20 1. (p. 546) Economic growth and the creation of jobs depend on money. 2. (p. 546) Most countries restrict the flow of money in and out of their borders. FALSE LG: 1 LL: 1 Nickels – Chapter 20 #2 […]
Chapter 20 2 After years of banking with Quality Bank and Trust, Saul decided to switch to a competing institution. Thanks to changes in government regulation, his search will uncover a wide variety
98. (p. 554) Typically, banks impose a service charge for check-writing privileges or demand a minimum deposit. 99. (p. 554) NOW accounts represent checking accounts that pay interest to depositors. TRUE LG: 4 LL: 1 Nickels – Chapter 20 #99 […]
Chapter 20 3 As a relatively poor nation, Liberia wants to obtain funds for a project to improve the availability of water and electricity. Liberia should contact the International Monetary Fund.
192. (p. 563) When the Federal Reserve pursues policies that increase interest rates, the amount of foreign funds flowing into the United States also increases. 193. (p. 564-565) As a relatively poor nation, Liberia wants to obtain funds for a […]
Chapter 20 4 Dorian has a checking account with the Progress National Bank that allows her to earn an attractive rate of interest on the money in her account. The account offers free and unlimited checking
261. (p. 557) Savings and loan associations are sometimes known as: D. bankers’ banks. LG: 4 LL: 1 Nickels – Chapter 20 #261 262. (p. 557) __________ are nonprofit, member-owned financial cooperatives that offer a full variety of banking services […]
Chapter 20 5 Alan works as a loan officer for a major U.S. commercial bank, specializing in international loans. When considering loans to governments and businesses in other nations
302. (p. 561) Banks prefer that customers use electronic funds transfer rather than traditional methods of payment because: A. traditional payments are subject to regulation by the Fed and electronic transactions are not. 303. (p. 562) Rather than receiving a […]
Chapter 3 1 One reason countries trade with other countries is that even technologically advanced nations cannot produce all the products their people want and need
1. (p. 60) There are over 6 billion potential customers in the 193 countries that make up the global market. 2. (p. 60) Importing involves the selling of products to another country. FALSE LG: 1 LL: 1 Nickels – Chapter […]
Chapter 3 2 Global trading has been significantly simplified by the introduction of standardized international laws regulating business organizations
95. (p. 72–73) Effective marketing strategies focus on the product and ignore the socio-cultural differences in the global environment. 96. (p. 72) Many U.S. companies fail to think globally. TRUE LG: 4 LL: 1 Nickels – Chapter 03 #96 97. […]
Chapter 3 3 First Engineering, a large U.S. based mechanical engineering firm, is considering entering the global market. Upon careful analysis of the global market
180. (p. 62) Climate and terrain in several South American countries are conducive to growing coffee efficiently. While other countries can grow coffee, they are not as productive or efficient. This fact would lead you to believe that the South […]
Chapter 3 4 Foreigners sometimes comment on the ethnocentric attitudes of U.S. business people. This indicates that American business people
247. (p. 73) __________ determines the value of currency according to supply and demand determined by global currency traders. A. The currency rate 248. (p. 73–74) __________ is the exchange of merchandise or services for other merchandise or services without […]
Chapter 3 5 Responding to pressure from political lobbyists representing the steel industry, the U.S. government levies a tax on steel products imported from Europe
289. (p. 76) The keiretsu tradition in Japan serves as a: A. protective tariff. LG: 5 LL: 2 Nickels – Chapter 03 #289 290. (p. 75) Responding to pressure from political lobbyists representing the steel industry, the U.S. government levies […]
Chapter 4 1 People involved in business may be tempted to do something unethical in order to increase sales and profits. However, if they are caught, our legal system will deal harshly with them
c4 1. (p. 90) The Enron scandal illustrates the difference between unethical behavior and illegal behavior. 2. (p. 90) Ethical behavior requires more than following the law. TRUE LG: 1 LL: 1 Nickels – Chapter 04 #2 3. (p. 90) […]
Chapter 4 2 Environmentalists and union officials can both serve as “watchdog” groups regarding how well companies enforce their ethical and social responsibility policies
94. (p. 104) In the long run, a firm’s loyalty to their employees can pay off financially. 95. (p. 104) Getting even is one of the most powerful incentives for good people to do bad things. TRUE LG: 5 LL: […]
Chapter 4 3 In an effort to help employees resist the pressure to make an unethical decision, the Johnston Petroleum Company has communicated their code of ethics statement to their suppliers
167. (p. 96) A(n) ________-based ethics code defines corporate values, creates a supportive environment, and stresses shared accountability among employees. A. social 168. (p. 97; figure 4.3) Compliance-based ethics codes: A. conform to laws and regulations only. B. enable responsible […]
Chapter 4 4 Cole González is the owner of Timmy’s Treats, a small company that makes organic dog treats. Each year Cole donates a portion of his profits to the Dumb Friends League
206. (p. 107) Many businesses have developed internal procedures to enforce their ethical policies. Which of the following is an example of an outside group urging ethical behavior in businesses? D. foreign trade representatives Investors, environmentalists, customers and union officials […]
Chapter 5 1 A comparison of the three major forms of business ownership shows that sole proprietorships are usually the most difficult type of business to establish
c5 1. (p. 118) The corporation is the most common form of business ownership. 2. (p. 118) The three major forms of business ownership in the U.S. are sole proprietorships, partnerships, and corporations. TRUE LG: 1 LL: 1 Nickels – […]
Chapter 5 2 When Erica Wayne decided to start a business she chose to form it as a corporation. This choice ensures that, as the founder and incorporator of the company
96. (p. 128) When Erica Wayne decided to start a business she chose to form it as a corporation. This choice ensures that, as the founder and incorporator of the company, Erica will remain in control of the firm’s operations […]
Chapter 5 3 According to the Uniform Partnership Act, the three key elements of any general partnership are: A. a board of directors, a written partnership agreement,
180. (p. 121) The limited liability provided to limited partners means that they are not responsible for the debts of the business beyond: D. their total personal assets. LG: 2 LL: 1 Nickels – Chapter 05 #180 181. (p. 122) […]
Chapter 5 4 Continental Foods is looking at a possibility of agreeing to a conglomerate merger. A likely reason Continental may be looking at this type of merger is a desire to
247. (p. 133) A merger involving a commercial bakery and a grocery retailer would be an example of a: D. conglomerate merger. A vertical merger involves two firms in different stages of related businesses. The bakery would make bread and […]
Chapter 5 Twenty-six years ago, several small vineyard owners in California joined voluntarily to market their grapes and wine in an attempt to get better prices
281. (p. 141) A ___________ is an organization that is owned and controlled by the people who use it—producers, consumers and workers with similar needs who pool their resources for mutual gain. 282. (p. 141) In rural areas electrical power […]
Chapter 6 1 Because of the stress of being in business for yourself, it’s important that entrepreneurs have people around them to help replenish their enthusiasm
c6 1. (p. 150) Entrepreneurship involves accepting the risk of starting and running a business. 2. (p. 150) Entrepreneurship is another name for management. FALSE LG: 1 LL: 1 Nickels – Chapter 06 #2 3. (p. 150) Entrepreneurs are less […]
Chapter 6 2 Your brother, a family dentist, has opened a new office in your home town. As a business student you know that this type of business experiences both low failure and growth rates
100. (p. 162) Traditionally small business statistics classified the retirement of an owner of a sole proprietorship as a business failure. 101. (p. 161) Small businesses lack the resources to compete directly with big businesses. FALSE Small businesses can often […]
Chapter 6 3 Kenya recently quit a job with a large corporation to start her own business. While she realizes that her decision comes with risk
190. (p. 150) An entrepreneur: A. manages businesses for others. 191. (p. 150) The importance of entrepreneurs to our economy is found in their: A. impact on the political process. B. ability to create jobs for others. C. contributions of […]
Chapter 6 4 Employees of small businesses often have greater job satisfaction than do employees of larger firms. One reason for this difference in job satisfaction is that employees of small businesses often
254. (p. 163) When starting a small business, it’s important to remember: A. luck is the critical factor in achieving small business success. 255. (p. 165) ________ are the primary concerns of someone starting a business. A. Human relations and […]
Chapter 7 1 Despite all of the changes in the business environment, the basic way a manager performs his or her job has remained remarkably constant
c7 1. (p. 182) Managers get things done through organizational resources like workers, information, and equipment. 2. (p. 182) The main job of managers today is to watch over people to be sure they do what the manager asks of […]
Chapter 7 2 The question of how to organize a firm so that it is more responsive to its stakeholders has been a dominant issue for many firms over the past twenty years
93. (p. 192, figure 7.6) First-line managers typically spend little time on conceptual tasks. 94. (p. 192, figure 7.6) Most of a top manager’s time is devoted to conceptual and human relations tasks. TRUE LG: 4 LL: 1 Nickels – […]
Chapter 7 3 When managers determine that an organization is not making sufficient progress toward achieving its goals and objectives and they develop corrective measures, they are involved in
180. (p. 182) How are managers today different from managers in the past? A. Managers today are more likely to reprimand workers. 181. (p. 182) Which of the following statements is the most accurate description of a challenge that is […]
Chapter 7 4 Which of the following management positions is responsible for getting the right information to other managers to enable them to make better decisions
245. (p. 192) Top managers make less use of __________ skills than supervisory managers. D. empirical LG: 4 LL: 1 Nickels – Chapter 07 #245 246. (p. 190, figure 7.5) The downsizing that has occurred in recent years has __________ […]
Chapter 7 5 Ralph Bowley is a first-line manager for the Mizzill Corporation. Although Mizzill has been a fairly traditional company in the past, its top management recently decided to
288. (p. 195) At Livwell Pharmaceuticals, research personnel are told that the company would like to develop at least three new products each year and are given some general information about which types of drugs seem to have the most […]
Chapter 8 1 The unity of command principle, introduced by Henri Fayol, suggests that all people in an organization should work toward the same objective
c8 1. (p. 206) Many U.S. companies are going through the process of reorganizing. 2. (p. 206) Reorganization will help U.S. automakers become better competitors. TRUE LG: 1 LL: 1 Nickels – Chapter 08 #2 3. (p. 206) In a […]
Chapter 8 2 Unfortunately coordinating the efforts of the traditional departments and the company Internet has proven to be difficult and the cause of a loss of market share in many companies.
106. (p. 215) Departmentalization helps develop a creative environment through a group think process. 107. (p. 214) Organizations that utilize departmentalization benefit from improved communication between different organizational departments. FALSE LG: 2 LL: 1 Nickels – Chapter 08 #107 108. […]
Chapter 8 3 Trendly Bank is the second largest bank in a big Midwestern city. Trendly has many layers of management. Because of concerns about fraud, theft, and embezzlement
199. (p. 227) The key people in an organization’s grapevine typically have considerable influence in the organization. 200. (p. 224) Trendly Bank is the second largest bank in a big Midwestern city. Trendly has many layers of management. Because of […]
Chapter 8 4 JayLo Corporation has experienced rapid growth during their five years of existence. While still relatively small, JayLo is now big enough that Jennifer
269. (p. 215) Springfield National Bank organizes its loan operations based on the market served, such as consumer, small business, and nonprofit organizations. Departmentalization based on ________ allows Springfield to better serve borrowers with different needs. 270. (p. 214) JayLo […]
Chapter 8 5 The widely shared values within an organization that provide unity and cooperation to achieve common goals are together known as the
309. (p. 224) Empowering employees to better serve customers requires __________ front-line employees. A. fewer 310. (p. 224, Dealing with Change box) According to the “Dealing with Change” box in Chapter 8, Mark Hurd recently took over as CEO of […]
Chapter 9 1 Production techniques such as ERP and lean manufacturing are being used by American manufacturers so these manufacturers can become a source of strength to the U.S. economy
c9 1. (p. 234) When General Motors is in trouble it affects the economy of the United States. 2. (p. 234) Today American companies hold 90% of the U.S. auto market. FALSE LG: 1 LL: 1 Nickels – Chapter 09 […]
Chapter 9 2 Materials requirement planning relies on the firm’s balance sheet to make sure that the right quantities of finished goods are produced
97. (p. 245) Facility layout is the function of operations management that considers the physical arrangement of resources (including people) in the production process. 98. (p. 245) For services, facility layout is usually designed to centralize the decision-making process. FALSE […]
Chapter 9 3 Aaron Nance is a freshman in college who has not yet decided on his major. He is thinking about majoring in operations management and is concerned about job opportunities in this field
180. (p. 235) Overall auto production is the U.S. is expected to __________ over the next several years. A. level out 181. (p. 235-236) Efforts to redesign and rebuild America’s manufacturing base are likely to: A. fade in importance as […]
Chapter 9 4 Sylacon Industries, a leading producer of consumer goods, is looking for a site for a new production facility. The company is mainly focusing on sites that are close to major highways
246. (p. 245) __________ is the physical arrangement of resources in the production process. D. RRL LG: 4 LL: 1 Nickels – Chapter 09 #246 247. (p. 245) For services, the facility layout is usually designed to: A. enable the […]
Chapter 9 5 Which of the following would be most helpful to a production manager who wanted to determine the minimum time required to complete a proposed project
288. (p. 250-251) ___________ is a technique to analyze the tasks involved in completing a project, to estimate the time needed to complete each task, and to determine the minimum amount of time needed to complete each project. D. GANTT […]