Outsourcing reduces opportunities for small businesses and entrepreneurs.
Task identity refers to the employee’s perception of how his or her job impacts the lives
of other employees.
Global economists use the terms capitalism and private enterprise to describe centrally
planned economic systems.
The sales concept is an approach to business management that stresses customer needs
and wants, seeks long-term profitability, and integrates marketing with other functional
units within the organization.
The executive dashboard is a tool that provides quick-read summaries of vital
performance variables.
Quick ratio is a measure of a firm’s long-term liquidity.
Culture is not a determinant of ethical behavior.
In practice, no economy is truly a free-market economy.
All owners in a general partnership and the general partners in a limited partnership
face the same unlimited liability as sole proprietors.
Creation of a sexist environment in which employees are made to feel uncomfortable by
lewd jokes, remarks, or gestures is a form of sexual harassment.
Engagement predicts the likelihood that employees will stay or leave their jobs.
Partnerships are subject to double taxation of income.
Thrift banks offer a variety of services related to initial public stock offerings and
mergers and acquisitions.
Customer involvement tends to be more for goods than services.
Leading economic indicators suggest changes that may happen in the economy in the
future.
Depreciation is an accounting procedure used for intangible assets.
Financial decisions with high perceived risk will have low potential for rewards.
Intangible products have a physical presence.
NGOs are nonprofit groups that provide charitable services or promote causes such as
workers’ rights and environmental protection.
Intellectual property and goodwill are considered liabilities in accounting.
Funds that invest in a combination of stocks and bonds are called ________ funds.
A) specialized
B) sector
C) restricted
D) balanced
E) socially responsible
Which of the following is characteristic of a country with a planned economic system?
A) The economy relies chiefly on market forces to allocate goods and resources and to
determine prices.
B) The economic system combines private and state enterprises with limited
intervention from the government.
C) The economy subscribes to capitalistic competition, where private parties own and
operate the majority of businesses.
D) The economic system is primarily capitalistic but there is some degree of
government ownership of the means of production.
E) The economy is largely controlled by the government and freedom of choice is
limited in order to accomplish government goals.
The advent of ________ has put buyers and sellers on much more equal footing.
A) cloud computing
B) B2B marketing
C) adaptive technology
D) social media
E) pop-up advertising
________ skills refer to the ability to identify a decision situation, analyze the problem,
weigh the alternatives, choose an alternative, implement it, and evaluate the results.
A) Interpersonal
B) Technical
C) Administrative
D) Decision-making
E) Interpersonal
Movement along the supply curve typically slopes upward because ________.
A) the amount of government regulation in an industry rises with increase in demand
B) the quantity that the sellers are willing to supply rises with decrease in demand
C) the amount of government regulation in an industry rises with increase in price
D) the quantity that the sellers are willing to supply rises with increase in government
regulation
E) the quantity that the sellers are willing to supply rises with increase in price
Which of the following is TRUE about the elements of marketing mix?
A) A firm’s marketing mix consists of the combination of print, broadcast, online, and
other media to be used in the promotion campaign.
B) Retailers sell to other companies, whereas wholesalers sell to individual consumers.
C) Customer communication consists of the organized network of firms and systems
that move goods and services from the producer to the customer.
D) Channel decisions are independent of everything else in the marketing mix.
E) Price elasticity is a measure of how sensitive customers are to changes in price.
Which of the following is one of the main reasons that small businesses are using social
media for marketing and advertising?
A) Many of their employees are social media mavens.
B) Social media offers their customers robust protection from identity theft.
C) Social media offers a noncompetitive space where they can sell their products.
D) Social media allows them to stretch their small advertising and promotional budgets.
E) Big businesses have avoided social media in favor of traditional advertising and
promotion.
Which of the following acts prohibits any form or testing that can be construed as a
preemployment medical examination?
A) the Taft-Hartley Act
B) the Landrum-Griffin Act
C) the Wagner Act
D) Americans with Disabilities Act
E) Fair Labor Standards Act
Which of the following is a key difference between a master limited partnership (MLP)
and other forms of partnerships?
A) A MLP allows partnerships to sell units of ownership to the general public.
B) Other partnerships should have more members than an MLP.
C) Other partnerships have double-taxation disadvantage unlike an MLP.
D) A MLP allows the partners to have limited liability on their investments.
E) A MLP is characterized by double taxation unlike the other forms of partnerships.
All internal and external groups affected by a company’s activities are referred to as its
________.
A) shareholders
B) customers
C) stakeholders
D) employees
E) suppliers
________ are non-bank institutions that lend money to consumers and businesses for
such purposes as cars, home improvements, and purchases.
A) Finance companies
B) Mortgage brokers
C) Thrifts
D) Credit unions
E) Loan associations
Three factors contributing to the increased number of small businesses are technologies
such as e-commerce, growing diversity in entrepreneurship, and ________.
A) downsizing and outsourcing
B) increased ease in going public
C) nationalization
D) market regulation
E) monopolistic business practices
Mark hacks into the database of an e-commerce firm and steals the social security
numbers of many of its customers. He then uses these numbers to take loans. This is an
example of ________.
A) phishing
B) identity theft
C) spamming
D) brandjacking
E) cybersquatting
Trying to attract buyers by advertising a product that you don’t intend to sell, and then
trying to sell them another, usually more expensive, product is known as ________.
A) stealth advertising
B) bait and switch advertising
C) implied claims
D) reminder advertising
E) a push strategy
In some countries, payoffs to government officials are so common that they are
considered by business people as a standard operating practice. However, this practice
is illegal in the U.S. under the Federal Corrupt Practices Act (FCPA). Do you feel that
the FCPA tries to impose U.S. values on other cultures? Why or why not?
Jennifer buys such items as bread, flour, and beverages every week from nearby shops.
These items are examples of a(n) ________.
A) shopping product
B) expense item
C) capital item
D) specialty product
E) convenience product
Demographics differs from psychographics in that demographics ________.
A) involves analyzing customers’ self-concept and behavior
B) involves segmenting the market into geographic units
C) involves grouping customers according to characteristics such as age, gender, and
income
D) involves grouping customers according to their relationship with products
E) involves grouping customers according to their response to product characteristics
A U.S. multinational retailer corporation wants to set up a chain of large discount
department stores in a developing nation. However, it is hindered by strict licensing
procedures and bureaucratic delays in obtaining government approvals. In this example,
the multinational corporation faces ________.
A) incumbent inertia
B) economies of scale
C) first-mover disadvantage
D) free-rider effects
E) barriers to entry
In order to be effective, a business goal should be ________.
A) broadly defined
B) measurable
C) time unlimited
D) remotely defined
E) substantially high
Word-of-mouth marketing is often called ________.
A) guerrilla advertising
B) institutional advertising
C) sales promotion
D) prospecting
E) viral marketing
The risk and reward relationship is ________.
A) unimportant to capital-intensive businesses
B) of little interest to service-intensive businesses
C) essential to the counter-cyclical business model
D) fundamental to businesses in every modern economy
E) an outdated concept that’s been replaced by corporate sustainability
Which of the following statements is TRUE?
A) The creation, delivery, use, and disposal of products that society values can be
carried out without generating any pollution and consuming any natural resources.
B) Web-based businesses are “clean” because there is no pollution associated with
them.
C) Environmental issues are easy and simple, and companies can easily make decisions
when faced with such issues.
D) Environmental issues faced by businesses are about forests, rivers, and wildlife; and
not about human health and safety.
E) Dealing with environmental issues often requires tough trade-offs, occasional
sacrifice, and disruptive change.
Foreign direct investment (FDI) ________.
A) usually does not receive support from domestic governments
B) carries much lesser political risk
C) typically gives companies greater control
D) carries much lesser economic risk
E) is less complex than any other form of global entry
Companies rely on public relations to build a favorable corporate image and foster
positive relations with their many stakeholders, including communities, investors,
industry analysts, government agencies, and activists. Compare and contrast the use of
traditional press releases and social media releases in public relations’ efforts to reach
those stakeholders.
Do you think protectionism is totally unwarranted? Explain your answer.
Compare and contrast centralization with decentralization.
Identify and discuss the “alt-labor” movement.
Explain the significance of labeling.
Explain why companies perform stock split.
How does capitalism promote monopolistic competition in the market?
Compare and contrast concentrated marketing with micromarketing.
What type of governmental intervention, according to you, is the most severe?
Categorize different types of governmental inventions based on their rigorousness.
Gordon Consultants is planning to raise money by leasing a building that it owns. What
do you think are the components of a lease agreement? Draft a lease agreement for
Gordon Consultants.