Choosing a distribution network is a strategic decision in that the decision determines
the amount and cost of what?
A) Channel conflict
B) Market coverage
C) Online retailing
D) Retail coverage
E) Channel leadership
Which of the following would lead some to become an entrepreneur and influence the
choice of goods or services to produce?
A) Competition
B) Profit
C) Freedom of choice
D) Government regulation
E) Monopolistic competition
What name is given to the process by which a company analyzes another company’s
product to identify desirable improvements in its own product?
A) Quality reliability analysis
B) Benchmarking
C) Performance quality analysis
D) Competitive product analysis
E) Quality outsourcing
What type of network links computers and workstations, usually within one building?
A) Satellite communication
B) Global positioning
C) Personal digital
D) Wide area
E) Local area
How can organizations best deal with emergencies requiring immediate response?
A) Contingency plans
B) Operational plans
C) Crisis management plans
D) Tactical plans
E) Cultural flexibility plans
What is a major drawback of sole proprietorships?
A) Short-term focus of shareholders
B) Work flexibility
C) Low start-up costs
D) Unlimited liability
E) Structured hours
Which of the following terms refers to the amount paid for an existing business beyond
the value of its other assets?
A) Goodwill
B) Excess compensation
C) Licensing
D) Asset promotion
E) Liability deduction
During which step of the product development stage does a company conduct market
research on benefits and prices?
A) Screening
B) Concept testing
C) Prototype development
D) Benefits analysis
E) Product idea
Which are the two major fields of accounting?
A) Managerial and forensic
B) Financial and managerial
C) Bookkeeping and advisory
D) Corporate and individual
E) Public and private
Which of the following refers to the receiving, storing, handling, and counting of all
raw materials, partly finished goods, and finished goods?
A) Materials handling
B) Inventory control
C) Quality control
D) Wholesaling
E) Distribution control
Which component of the distribution mix do agents and brokers represent in exchange
for receiving commissions?
A) Producers
B) Consumers
C) Retailers
D) Industrial users
E) Other intermediaries
What type of policy is made up of fiscal and monetary policy?
A) Trade
B) Employment
C) Stabilization
D) Tax
E) Foreign
What is the power to make the decisions necessary to complete a task called?
A) Delegation
B) Specification
C) Authority
D) Responsibility
E) Accountability
What is a stock’s book value?
A) The current price of a share of stock in the stock market
B) The average price of one share of stock over the past year
C) The face value of a share of stock, set by the issuing company’s board of directors
D) The value expressed as total stockholders’ equity divided by the total number of
shares of stock issued
E) The value expressed by the number of stock shares issued by the board of directors
Which of the following exists when a country can produce something more cheaply
and/or of higher quality than any other country can?
A) Monopolistic advantage
B) National competitive advantage
C) Resource advantage
D) Absolute advantage
E) Comparative advantage
What goods-producing operations method is designed around specific customer
specifications?
A) High-contact systems
B) Make-to-order
C) Layout planning
D) Low-contact systems
E) Make-to-stock
What term do economists use for the pattern of short-term expansions and contractions
in the economy?
A) Business cycle
B) Aggregate output
C) Standard of living
D) Consumer price index
E) Purchasing power parity
In client-server networks, who or what is the usual client?
A) The computer through which users make requests for information
B) The application through which users answer information requests
C) The customer who does business online
D) The supplier who checks the availability of components
E) The network which supports the database and software systems
What typically happens to a country’s balance of trade as the value of its currency falls?
A) It improves.
B) It declines.
C) It remains the same.
D) It fluctuates drastically.
E) It fluctuates moderately.
What type of skills requires defining problems and selecting the best course of action to
take?
A) Human relations skills
B) Production skills
C) Conceptual skills
D) Decision-making skills
E) Technical skills
Which of the following is an indication of national economic growth, shown by
measuring aggregate output?
A) Gross domestic product
B) Standard of living
C) Economic indicators
D) Gross national product
E) Real growth rate
What type of power is more abstract, often based on loyalty or charisma?
A) Legitimate power
B) Reward power
C) Referent power
D) Expert power
E) Coercive power
Which of the following is indicative of a bull market?
A) Stock prices that are averaging 20 percent off peak
B) Rising stock prices for 12 months or more
C) Falling stock prices for 6 months or more
D) A spike in the value of the Dow Jones Industrial Average
E) Investors who are motivated to sell stocks based on current value
Which of the following gives examples of bargain retailers?
A) Bakery outlet, athletic shoe store
B) Local bakery, discount shoe chain
C) Bakery thrift shop, athletic shoe store
D) Bakery thrift shop, shoe factory outlet
E) Local bakery, shoe factory outlet
Which ethical norm considers whether a particular act optimizes the benefits to those
who are affected by it?
A) Utility
B) Rights
C) Justice
D) Caring
E) Respect
The ability of a good or service to satisfy a need is considered to be its
A) benefit.
B) utility.
C) value.
D) market.
E) sociocultural environment.
Which of the following BEST describes the portability characteristic of money?
A) If it wears out, it can be replaced.
B) Units of money can be matched with the value of goods.
C) It can be exchanged across national borders.
D) It allows people to measure the relative value of goods and services.
E) It is light and easy to handle.
Financial statements that do not include interpretation and explanation by management
are in violation of which GAAP principle?
A) Principle of sincerity
B) Principle of continuity
C) Principle of full disclosure
D) Principle of regularity
E) Principle of prudence
Determining how people performing certain tasks can best be grouped together is called
what?
A) Departmentalization
B) Specialization
C) Controlling
D) Leadership
E) Directing
When gross domestic product increases, what is the outcome for economic growth?
A) Aggregate output will increase.
B) The nation will experience a slowdown in growth.
C) Aggregate output will decrease.
D) Growth will remain steady when compared to developing nations.
E) Growth will decline based on the value of the national currency.
Which of the following describes the concept of leadership?
A) The processes and behaviors used by someone to determine the optimal decision
among several options
B) The processes and behaviors used by someone to motivate, inspire, and influence the
behaviors of others
C) The processes and behaviors used by someone to establish the organizational
structure of a firm
D) The processes and behaviors used by someone to manage the functioning of an
organization
E) The processes and behaviors used by someone to achieve tangible outcomes within
an organization
Which term refers to collaborative groups of employees from various work areas who
meet regularly to define, analyze, and solve common production problems?
A) Quality improvement teams
B) Quality assurance teams
C) Quality control teams
D) Quality evaluation teams
E) Quality review teams