What is the extent to which members of an organization follow basic ethical and legal
standards of behavior?
A) Social responsibility
B) Norms
C) Values
D) Ethical compliance
E) Legal compliance
What is the purpose of the Family and Medical Leave Act of 1993?
A) To extend the length of maternity leaves
B) To allow employees to take a leave of absence with pay
C) To allow employees to take a leave of absence for family or medical emergencies or
when a child is born
D) To increase the percentage of payroll spent on health care for workers
E) To ensure financial security for all employees, regardless of circumstance
Which of the following is patterned after the successful Japanese concept of quality
circles?
A) Supply chain management
B) Quality improvement team
C) Total quality management
D) Quality ownership
E) Value-added analysis
After responsibility for a task is assigned, which of the following comes next to ensure
the successful completion of the task?
A) The centralization of the task is identified.
B) The liability of the task is determined.
C) The span of control is decided.
D) The work team is created.
E) Authority is granted.
What do managers do when the “job” of a firm is broken down into smaller jobs?
A) Fragment the task
B) Specialize the job
C) Respond to the job
D) Assign the task
E) Control the job
Which of the following is an ethical issue when it comes to Internet privacy?
A) Not allowing employees to use work computers for personal reasons
B) Using data mining on work equipment, including cell phones
C) Using cyber-insurance to recoup some of the losses incurred by hackers
D) Using encryption software to scramble messages
E) Asking a job seeker for their Facebook username and password
Which of the following BEST describes department stores?
A) A department store is a large product line retailer organized into smaller,
convenience-focused components.
B) A department store is a large product line retailer organized into smaller,
bargain-focused components.
C) A department store is a large product line retailer organized into smaller,
producer-focused components.
D) A department store is a large product line retailer organized into smaller,
product-focused components.
E) A department store is a large product line retailer organized into smaller specialty
stores.
Why do exchange rates matter to companies?
A) Strong exchange rates could stimulate sales in foreign markets.
B) Inflation could be caused by an exchange rate that is too strong.
C) Poor exchange rates can be offset by government contribution.
D) Exchange rates indicate the strength of the overall economy.
E) Exchange rates affect the prices of goods and services.
Which mode of transportation is the fastest and least expensive, but can only be used by
a limited number of industries?
A) Digital
B) Air-freight
C) Water
D) Rail
E) Pipelines
What type of economy is the United States reflective of?
A) Planned
B) Mixed
C) Market
D) Private
E) Socialist
What is the name of software and hardware that prevent hackers from accessing a
company’s internal network?
A) Partition
B) Firewall
C) Extranet
D) Index
E) Security
How would supply affect the aggregate output of an economy?
A) Supply would decrease aggregate output.
B) Increases in both would cause inflation.
C) Aggregate output would grow as supply grows.
D) Supply would have no direct effect on aggregate output.
E) Aggregate output would increase the money supply.
Which of the following costs refers specifically to those that are unaffected by the
quantity of a product sold or produced?
A) Annual costs
B) Variable costs
C) Fixed costs
D) Marginal costs
E) Market-adjusted costs
What can be used to identify the sequence of activities, movements of materials and
work performed?
A) Operations schedules
B) Process flowcharts
C) Gantt charts
D) PERT charts
E) Project schedules
Which of the following is an organization of individuals coordinated to provide an
institutional setting in which stock can be bought and sold?
A) Stock exchange
B) Brokerage
C) Server
D) Over-the-counter market
E) Mutual fund
Which of the following institutions simplifies financial settlements between buyers and
sellers in different countries?
A) The U.S. State Department
B) The International Monetary Fund
C) The World Bank
D) Commercial banks
E) The Internet
Which of the following is NOT considered an organizational strength?
A) Strong market position
B) Dedicated work force
C) Changing consumer tastes
D) Technical expertise
E) Recognized customer relation management
Which of the following BEST demonstrates cash flow from operations?
A) Transactions involved in buying and selling goods and services
B) Net cash used in or provided by investment
C) Cash flow from borrowing or issuing stock
D) Outflows for payments of dividends
E) Inflows of cash that will be used to repay borrowed money
How do marketers best use viral marketing?
A) To increase use of social media networks
B) To identify needs in the international market
C) To promote public relations
D) To improve branding
E) To foster excitement for stimulating sales
What do organizations use to build relationships among users?
A) Institutional marketing
B) Web-driven revenue
C) Negotiations
D) Social networking media
E) Reseller relationships
The first step in the planning process is determining goals. What is the next step?
A) Developing a strategic mission
B) Developing a comprehensive strategy
C) Developing an array of tactics
D) Developing an operational plan
E) Developing a functioning budget
What is the term for the communication efforts that are designed to build goodwill and
build favorable attitudes in consumers?
A) Sales promotion
B) Advertising
C) Promotion
D) Public relations
E) Personal selling
What recourse is available to the FDIC when a bank fails?
A) Funds can be taken from the insurance deposit fund to pay off creditors.
B) Employee behavior is monitored and analyzed to ensure ethical behavior.
C) Interest rates can be raised to offset the cost of payouts.
D) Other banks are purchased to cover the cost of the failure.
E) Bank assets can be disposed of in order to pay off debt.
The practice of using suppliers in foreign countries to perform business processes that
were previously done in the United States is called
A) outsourcing.
B) adapting.
C) offshoring.
D) exporting.
E) importing .
Which of the following best supports an organization’s stance in terms of social
responsibility and ethical leadership?
A) Philanthropic giving
B) Organizational leadership practices
C) Line and staff members
D) Stakeholders
E) Government intervention
In which way does the World Bank differ from true international banks?
A) The World Bank does not charge interest to governments with emerging markets.
B) The World Bank only provides funds for national improvements in order to increase
international trade.
C) The World Bank is comprised and run by a group of 150 member nations.
D) The World Bank is designed to promote the stability of exchange rates among
member nations.
E) The World Bank only lends money to those with negative trade balances.
Those firms that look for opportunities to contribute because of a sincere desire to
improve social welfare take what type of social responsibility stance?
A) Obstructionist
B) Accommodative
C) Social accommodations
D) Defensive
E) Proactive
What is the term for the physical and intellectual contributions of people while engaged
in the production of goods and services?
A) Human resources
B) Working capital
C) Physical resources
D) Planned resources
E) Market resources
What structure does an organization with little or no formal structure and with only a
handful of permanent employees use?
A) Team structure
B) Virtual structure
C) Learning structure
D) Flexible structure
E) Balanced structure
Over the past ten years, there has been increased belief that unethical behavior in the
banking industry is the result of what?
A) Increased social media use
B) Corporate culture
C) Increased regulation
D) Stricter enforcement by the FDIC
E) Increased stability of the industry
Which of the following indicates the relative strength of the currencies of two
countries?
A) Trade rate
B) Exchange rate
C) Trade balance
D) Relative gross national products
E) International loan rate
Comparing actual performance against standards is an example of which function of the
management process?
A) Planning
B) Organizing
C) Leading
D) Controlling
E) Strategizing
A company has an assets-to-liabilities ratio of 3:2 and total assets worth $6 million.
What is its owners’ equity?
A) $1 million
B) $2 million
C) $3 million
D) $9 million
E) $12 million
Which aspect of the management process involves determining what the organization
needs to do and how best to get it done?
A) Organizing
B) Planning
C) Controlling
D) Processing
E) Monitoring