The use of special knowledge about a firm, which results in an unfair advantage or
generates profit or other types of gain, is known as what?
A) Equity financing
B) Market capitalization
C) Insider trading
D) Prospectus information
E) FINRA violation
According to the situational approach to leadership, the extent to which a leader or
subordinate is involved in decision making depends on characteristics of which aspects
of an organization?
A) The leader, the followers, and the situation
B) The leader, the structure of the organization, and the situation
C) The leader, the resources at hand, and the situation
D) The followers, the resources at hand, and the situation
E) The resources, the structure of the organization, and the situation
Which of the following scenarios would allow a firm to price below prevailing market
price and still succeed?
A) The public does not learn that the firm’s product is indeed inferior.
B) The firm can offer a product of acceptable quality.
C) The firm can offer an entirely new product.
D) The firm can effectively copy competitors’ promotional tactics and marketing
strategies.
E) The firm can effectively criticize its competitors’ products and quality.
Which of the following describes the skills, abilities, and qualifications required for a
job?
A) Staffing survey
B) Advertising write up
C) Job specification
D) Employee analysis
E) Replacement chart
To raise revenue, what can a business issue and sell to those wishing to own some of the
organization?
A) Bonds
B) Profits
C) Stocks
D) Dividends
E) Loans
What do new forms of solid-waste disposal such as repurposing combustible waste help
prevent?
A) Future contamination of land
B) Toxic dumping
C) Use of phosphates
D) Runoff
E) Zero-landfill claims
Which organization provides guidelines for ethical conduct for the accounting
profession?
A) AICPA
B) SEC
C) GAAP
D) FASB
E) CMA
When a company shares information to improve the overall flow through a system
composed of companies working together, it is engaging in which of the following?
A) Distribution chain management
B) Total quality management
C) Supply chain management
D) Service channel analysis
E) Supplier selection analysis
Which of the following allows firms to focus on core activities and reduce cost by
moving aspects of the business to areas where costs are low?
A) Outsourcing
B) Adapting
C) Offshoring
D) Exporting
E) Importing
The value of the Dow Jones Industrial Average (DJIA) has remained unchanged in
recent years.
A snack food firm has one division for the United States, one for Europe, and another
for Asia. How is this firm departmentalized?
A) By customer
B) By process
C) By geography
D) By function
E) By productivity
When the finance department has a goal of a 3 percent increase in return on investment
in three years, what type of goal is the organization setting?
A) A long-term goal
B) A tactical goal
C) A short-term goal
D) An intermediate goal
E) An organizational goal
To ensure efforts are producing the desired benefit, what must a socially responsible
business use?
A) Government regulation
B) The concept of control to social responsibility
C) Ethics
D) An evaluation process of effectiveness
E) Senior leadership task forces
What is the name of the concept that expanded the role of business in protecting and
enhancing the general welfare of society?
A) Ethics
B) Morals
C) Social responsibility
D) Accountability
E) Restraint
If a manager believes that his employees are self-motivated and growth-oriented, what
type of manager is he?
A) Theory Y
B) Theory X
C) Classical
D) Hierarchical
What type of warehouse is owned by a single retailer that deals in mass quantities?
A) Public warehouse
B) Relay warehouse
C) Retail stockroom
D) Private warehouse
E) Storage warehouse
Which of the following documents would MOST likely come from a planning strategy
meeting?
A) Income statement
B) Flow of cash statement
C) Balance sheet
D) Budget
E) Statement of projected earnings
What type of hack floods a network with bogus requests for information and resources,
overloading and shutting down the network?
A) Wireless mooching
B) File-swapping
C) Identity theft
D) Denial of service (DoS)
E) Pharming
Where can a manager find information on the skills, abilities and other qualifications
needed to perform a job successfully?
A) Talent management files
B) Job specification
C) Human capital systems
D) Job analysis
E) Job description
What kind of departmentalization happens when an organization is divided into
operations related to different products?
A) Functional departmentalization
B) Process departmentalization
C) Customer departmentalization
D) Geographic departmentalization
E) Regional departmentalization
What do both sole proprietorships and partnerships lack?
A) Trust
B) Legal standing
C) Continuity
D) Shared vision
E) Adaptable processes
Which of the following is a consequence of the divisibility characteristic of money?
A) Units of money do not expire after a certain time limit.
B) Units of money can be accurately matched with the value of goods.
C) Units of money are easily carried.
D) Units of money have relatively stable value.
E) Units of money of different nations are easily converted to other units of money.
When conducting a corporate social audit, what must be evaluated?
A) Cost of social responsibility efforts
B) General goals that are flexible, based on need
C) The resources devoted to each goal
D) The strength of the leadership team
E) Laws and regulation that limit the ability to reach goals
How does the government affect the idea of social responsibility in a planned economy?
A) The government requires higher stakeholder returns.
B) The government passes laws to make sure business interests do not damage society.
C) The government heavily regulates business activities to ensure the business supports
social ideals.
D) The government attempts to offset small business restrictions.
E) The government limits regulations in exchange for planned giving.
What is the advantage to a small business when planning for shortfalls in cash flow?
A) Financial resources can be saved in a savings account until needed.
B) Banks are more likely to offer loans if they know when the money will be needed.
C) Loans can be obtained in advanced and put in interest earning investments.
D) Lower interest loans can be sought for the needed time frame.
E) Small businesses will appear more professional, resulting in favorable banking
relationships.
Which of the following is critical to the success or failure of service operations?
A) Provider-customer contact
B) Internet exposure
C) Supply chain
D) Tangible services products
E) Supplier-manufacture contact
Which of the following financial institutions was taken over by the Federal Housing
Finance Agency when it was on the verge of financial failure?
A) Lehman Brothers Holdings
B) JP Morgan Chase
C) Freddie Mac
D) Federal Home Loan Banks System
E) Federal Reserve
What is selling the rights to place a brand name on products such as t-shirts referred to
as?
A) International branding
B) National branding
C) Private branding
D) Regional branding
E) Licensed branding
When a small business identifies themselves and their products with local groups and
events, what aspect of marketing are they pursuing?
A) Price
B) Promotion
C) Product
D) Public relations
E) Place
Factors such as international trade agreements, economic conditions, and political
unrest will have the greatest impact on what type of business environment?
A) Global business environment
B) Economic environment
C) Domestic business environment
D) Technological environment
E) Political-legal environment
Which of the following is the name for a portion of the ownership of a corporation?
A) Schedule C
B) Stock
C) Partnership
D) LLC
E) Dividend
Behaviors that detract from, instead of contribute to, organizational performance are
known as what?
A) Inclusive
B) Negative reinforcement
C) Counterproductive
D) Turnover
E) Associative
What type of behavior do consumers exhibit by regularly purchasing products because
they are satisfied with the performance of the product?
A) Psychological influences
B) Need recognition
C) Brand loyalty
D) Emotional motives
E) Consumer activism