Globalization refers to the process by which countries around the world are becoming
more self-sufficient.
In setting wage and salary levels, a firm may start by looking at competitors’ levels.
According to research, emotional intelligence cannot be developed or learned.
The United States government manages the collection and spending of its revenues
through monetary policy.
Wage reopener clauses are not required by law.
Trojan horses are malicious programs that replicate themselves like viruses.
Owners’ equity is net worth minus liabilities.
A key component of the Sarbanes-Oxley Act of 2002 was increased government
oversight over the certification examinations given by the accounting professional
organizations such as the Institute of Management Accountants.
The behavioral approach to the study of leadership identified two main areas of
effective leadership behavior: trait-focused behavior and goal-focused behavior.
Savings and loan associations began primarily to loan money to small and
medium-sized businesses.
By law, each general partner is liable for all debts incurred in the name of the
partnership.
Drop shippers carry inventory for retailers.
An application server, an e-mail server, and a print server are all computers that provide
services shared by users.
Most ideas for new products eventually reach the market.
Small-business investment companies (SBICs) may be sponsored by the federal
government.
The best method of evaluating the success of training is to ask how the employees liked
the training and which aspects they feel will be most relevant to their job.
Rational motives involve nonobjective factors and include sociability, imitation of
others, and aesthetics.
Although millions of American workers still belong to unions, union membership as a
percentage of the total workforce has steadily declined.
Using the odd-even psychological pricing strategy, a restaurant would price an entree at
$10.00 rather than $9.95.
In a company-sponsored pension plan, employees are not allowed or required to make
contributions.
Personal influences on consumer behavior include lifestyle, personality, and economic
status.
Corporations enjoy significant tax benefits when compared to sole proprietorships or
partnerships.
A fixed-position layout is most effective when there is a large-volume make-to-stock
operation in place.
A private brand is a brand name developed by a wholesaler or retailer for their product.
Managementis defined as the processes and behaviors used to motivate, inspire, and
influence the behaviors of others.
Aggressive growth funds are designed for investors who can accept the risk of loss
inherent in common stock investing with severe price fluctuations, but also the potential
for superior returns over time.
Goal setting helps managers assess performance.
Motivation factors are directly related to the work that employees perform; hygiene
factors refer to the environment in which they work.
Most business products are distributed through direct channels.
Product placement includes showing actors on television shows using a name-brand
product.
In the United States, the Federal Reserve System, which is the nation’s central bank, can
influence the ability and willingness of banks to lend money.
The main measure of growth in the business cycle is aggregate output.
The standards of behavior that guide managers in their work are called employee ethics.
Revenue from the earnings of a particular transaction is able to be reported as soon as
the product or service is delivered.
What type of decisions are unstructured and require considerable time, energy, and
resources to make?
A) Conditional
B) Nonprogrammed
C) Ethical
D) Strategic
E) Programmed
Which of the following BEST describes the stability characteristic of money?
A) Units of money do not expire after a certain time limit.
B) Units of money of different nations are easily converted to other units of money.
C) Units of money can be matched with the value of goods.
D) Units of money allow people to measure the relative value of goods and services.
E) Units of money have relatively constant value.
Because of the complexity and dynamism of organizations, what decision-making state
occurs when risks, alternatives, and consequences are unknown?
A) A state of recognition
B) A state of risk
C) A state of rationality
D) A state of certainty
E) A state of uncertainty
Which defining word or phrase below BEST captures the meaning of capital items?
A) Bulk loads
B) Directly used in the production process
C) To the consumer within a year
D) Longer lasting
E) Governmental purchase
When a large organization has departments based on areas of production, what type of
departmentalization is being utilized?
A) Customer departmentalization
B) Process departmentalization
C) Geographic departmentalization
D) Functional departmentalization
E) Product departmentalization
What is the advantage of forming a strategic alliance with a competitor or supplier?
A) Mutual gain
B) Increased shares of stock
C) The ability to influence the price of stock
D) To legally join the two organizations
E) The ability to sell a section of the business but still retain control
Which of the following outlines the duties of a job, its working conditions, and the
tools, materials, and equipment used to perform it?
A) Job advertisement
B) Job specification
C) Job description
D) Job analysis
E) Job report
Which of the following denotes the international organization strategy of finding a
partner in the country in which a company would like to conduct business?
A) Opening a branch office
B) Developing a strategic alliance
C) Forming an independent agency
D) Outsourcing
E) Investing directly in a foreign venture
Partial ownership of a firm that is considered to be the strongest and financially sound
is done through what method?
A) Buying of mutual funds
B) Buying of blue-chip stocks
C) Dividend reinvestment
D) Funding of aggressive growth opportunities
E) Buying of load funds
What is the process of seeking business opportunities under conditions of risk?
A) Investment
B) Entrepreneurship
C) Leadership
D) Diversification
E) Growth
Which of the following factors MOST contributes to small business failure?
A) Managerial incompetence or inexperience
B) Bad product design
C) Legal problems
D) Time spent raising capital
E) Personnel issues
Which of the following accurately describes a primary characteristic of charismatic
leaders?
A) They tend to set high expectations for themselves and energize others.
B) They tend to set high expectations for themselves and establish high standards for
others.
C) They tend to establish high standards for and energize others.
D) They tend to energize others and establish good, stable practices.
E) They tend to set high expectations for themselves and establish good, stable
practices.
What is the advantage of using product departmentalization?
A) Managers can focus on specific product lines.
B) Products are organized based on the production process.
C) Products are better targets to specific customer groups.
D) Customer groups are easily identifiable.
E) Products are closer to where consumers are served.
Which of the following is a natural part of organizational growth?
A) Retrenchment
B) Entrepreneurship
C) Job specialization
D) Outsourcing
E) Team consolidation
The extent to which people are self-aware, able to manage their emotions, and motivate
others is an aspect of which of the following?
A) Attitude
B) Emotional intelligence
C) Negative emotionality
D) Social skills
E) Empathy
Which of the following BEST describes nominal GDP?
A) Total quantity of goods and services produced by an economic system
B) Total value of all goods and services produced within a given period by a national
economy through domestic factors of production, measured in current dollars or with all
components valued at current prices
C) Total value of all goods and services produced within a given period by a national
economy regardless of where the factors of production are located
D) Total value of all goods and services produced within a given period by a national
economy through domestic factors of production, adjusted to account for changes in
currency values and price changes
E) Total quantity of goods and services that are imported within a given period of time
Which of the following is a fundamental element of charismatic leadership?
A) Planning
B) Controlling
C) Analyzing
D) Influencing
E) Organizing
Which term, similar to emotions, identifies a person’s feelings about something?
A) Affect
B) Intention
C) Cognitive dissonance
D) Attitude
E) Morale
Which type of pension trust service includes tax-deferred funds that wage earners and
their spouses can use to supplement their retirement funds?
A) Trust services
B) Securities investment deals
C) Pension funds
D) Individual retirement accounts (IRAs)
E) Savings
Increasing sales by 4 percent in the next eight months is an example of what kind of
goal?
A) Tactical
B) Strategic
C) Short-term
D) Intermediate
E) Long-term
What is created when one company is able to supply all the goods or services needed by
the marketplace?
A) Communism
B) Natural monopolies
C) Marketplace shifts
D) Monopolistic competition
E) Oligopolies
Examining step-by-step procedures to reduce inefficiency most centrally involves
which approach?
A) Operations scheduling
B) Performance analysis
C) Value-added analysis
D) Methods improvement
E) Quality ownership
What does the Sarbanes-Oxley Act of 2002 require a chief financial officer to do?
A) Prevent insider trading
B) Engage in strategic management
C) Guarantee the accuracy of financial reporting
D) Hire a forensic accountant
E) Oversee the implementation of ethical standards
The choice of legal ownership of a small business should be based on what?
A) Goals of the entrepreneur
B) Tax advantages
C) Stakeholders needs
D) Legal liability
E) Ease of launch
Which method of leadership encourages supervisors to establish a small number of
trusted subordinates and give them special duties and privileges?
A) Transformational
B) Charismatic
C) Leader-member exchange
D) Decision tree
E) Path-glory
Which of the following best defines fixed costs?
A) Costs that are needed to acquire a fixed market share
B) Costs that are needed to acquire fixed profits
C) Costs that are unaffected by the number of goods sold by the firm
D) Costs that remain the same from year to year
E) Costs that remain the same across all products
When a domestic marketer competes against foreign firms to sell products of a similar
nature, what type of sales competition is created?
A) Brand
B) Substitute
C) International
D) Competitive
E) Social
What does a statement of cash flow describe?
A) Gross profit compared to operating expenses
B) Value of revenues compared to cost of revenues
C) Yearly receipts and cash payments
D) Cost of obtaining materials needed to produce products
E) Funds that flow into the business from the sale of the goods or services provided
Which of the following is NOT part of the M-2 money supply?
A) Debit card account
B) Time deposits
C) Money market mutual funds
D) Savings account
E) Credit card account
Which of the following best explains the difference between a market economy and a
planned economy?
A) In a planned economy, consumers have little choice in where they work or what they
purchase or pay.
B) In a market economy, consumers must pay what the market demands.
C) Capitalism is the root of a planned economy.
D) Market economies are also known as mixed market economies.
E) Planned economies promote the use of privatization to increase market share.
Which of the following terms includes all activities involved in getting quality products
into the marketplace?
A) Quality control
B) Quality reliability
C) Total quality management
D) Performance quality
E) Quality overview
Which of the following allows firms to contact customers directly to inform them about
products that can be purchased immediately?
A) Direct-response retailing
B) Catalog showrooms
C) Wholesale clubs
D) Product-line retailers
E) Bargain retailers
According to McGregor, what motivational theory beliefs will result in managers most
likely to have satisfied and motivated employees?
A) Hierarchy of human needs
B) Theory X
C) Theory Y
D) Two factor theory
E) Expectancy theory
Summarize the steps in the personal selling process for creative selling.
Describe how a Gantt chart and a PERT chart are similar, and how they are different.
Identify and discuss three factors that may affect a manager’s span of control.
What is branding? Explain what branding is and give an example of branding.
Explain entrepreneurship and describe key entrepreneurial characteristics.
Describe the stakeholder model of social responsibility.
When defining its sense of social responsibility, a firm typically confronts what areas of
concern?
What is the difference between employee-focused leadership and task-focused
leadership?
Discuss the advantages to developing a super Wi-Fi network.
Why is it important for the union to include a cost-of-living adjustment clause when
negotiating a union contract?
Describe the role of information systems, the different types of information systems,
and how businesses use such systems.
Why is water the least expensive mode of transportation?
Discuss the principle known as full disclosure.
Why would a firm want to set its price above competitors’ prices?
Identify who is responsible for regulating advertising and what the key issues are.
Describe the three types of brand names and give an example of each.