Programmed decisions are more structured than nonprogrammed decisions, and recur
more often.
Positive reinforcement is used when a company or manager provides a reward when
employees exhibit desired behaviors.
As the government’s bank, the Fed produces the nation’s paper currency and lends
money to the government.
People who assume the risk of business ownership with a primary goal of growth and
expansion are called entrepreneurs.
Wages refer to compensation usually expressed as an amount paid per year.
Performance behaviors contribute directly to company productivity.
According to many experts, motivational impact is the biggest advantage of MBO.
Ethical values do not vary from person to person.
According to expectancy theory, people are motivated to work toward rewards they
want and that they believe they have a reasonable chance of obtaining.
A description such as single, age 20-34, earning $30,000 a year is an example of a
psychographic variable.
All managers are leaders, but not all leaders are managers.
Most leadership theories and studies have focused on the roles of both men and women
in leadership roles.
Focus groups allow researchers to observe a group of participants gathered in one place
while they explore issues associated with a product.
A Chinese steel company cannot charge less for its product in the United States than the
cost of production.
The largest stock exchange in the world is the Tokyo exchange.
The building blocks of all organizations are specialization and centralization.
The Family and Medical Leave Act of 1993 requires employers to provide up to 12
weeks of paid leave for family and medical emergencies or when a child is born.
When forecasting the internal supply of labor, planners must rely on information from
sources such as government reports and figures supplied by colleges on the number of
students in major fields.
Intrapreneuring attempts to create and maintain the innovation and flexibility found in
large, bureaucratic structures.
Accountability refers to the liability of subordinates for accomplishing tasks assigned
by managers.
Companies using price lining offer all items in certain categories at a limited number of
prices.
According to the classical theory of motivation, attention from the supervisor is more of
a motivator than money.
Information networks are leading to leaner companies with fewer employees and
simpler organizational structures.
Benefits add value by providing features that increase the customer’s satisfaction.
The process of product development begins with concept testing.
Line departments are linked directly to the production and sales of a specific product.
With job sharing, companies often experience increased turnover.
Organizational structure is a function of the organization’s mission and strategy.
A CAD system could help a sales manager learn what sales levels will likely result from
various levels of advertising expenditures.
The reason why a savings account is not considered a component of the M-1 money
supply is that it bears interest.
In case of financial distress, the firm would pay its stockholders before paying its
bondholders.
Profit centers can occur based on function, product, process, customer, or geographical
areas.
Though an individual feels that his behavior is ethical, that behavior may still be
considered unethical if social norms consider it to be so.
The consumer price index is expressed as a percentage of prices as compared to a base
period.
The number of variable pay programs in the United States has been consistently falling
for the last decade, and it is predicted that they will continue to decline in popularity.
A group of small investors who invest money in companies in return for partial
ownership is known as a small-business development company.
Some actions may be illegal, yet considered ethical.
What is a difference between an international firm and a multinational firm?
A) Multinational firms design, produce, and market products in many nations, whereas
international firms are based primarily in one nation.
B) International firms design, produce, and market products in many nations, whereas
multinational firms are based primarily in one nation.
C) International and multinational firms are the same thing.
D) Multinational firms are concerned primarily with foreign markets, whereas
international firms are concerned primarily with the domestic market.
E) International firms are concerned primarily with foreign markets, whereas
multinational firms are concerned primarily with the domestic market.
How does globalization of business benefit shareholders of an organization?
A) Through easier and faster international travel
B) Through the elimination of dieses in developing nations
C) Through increased and improved profitability
D) Through lower taxes between trade partners
E) Through more distinct cultural heritage
In a small business, who determines prices for wholesalers and customers?
A) Customers
B) Franchise owners
C) Market forces
D) Small business administration
E) Small business owner
Which type of layout is designed to move resources through a smooth, fixed sequence
of steps?
A) Same-steps
B) Location
C) Custom-products
D) Quality
E) Make-to-order
Which component directs the computer to the correct resources to use and how to use
them?
A) An application program
B) System software
C) An electronic spreadsheet
D) A database
E) Management information systems
What are the three major classifications of retail outlets in the United States?
A) Large-sized outlets, medium-sized specialty shops, small-sized convenience stores
B) Product-based retailers, bargain-based retailers, convenience-based retailers
C) Quality-based retailers, quantity-based retailers, specialty-based retailers
D) Producer-owned retailers, franchised retailers, independently owned retailers
E) Brick-and-mortar retailers, e-retailers, hybrid retailers
Which of the following BEST describes responsibility?
A) The power to make the decisions necessary to complete a task
B) The liability of subordinates for accomplishing tasks assigned by managers
C) The number of people supervised by one manager
D) The duty to perform an assigned task
E) The need to prove satisfactory work performance
In what area can a small business create an advantage over larger competitors?
A) Value
B) Price
C) Response time
D) Marketing
E) Shipping costs
Which of the following BEST describes competitive product analysis?
A) The principle that quality belongs to each person who creates it while performing a
job
B) The consistency of a product’s quality from unit to unit
C) The process by which a company analyzes a different company’s products to identify
desirable improvements
D) The sum of all activities involved in getting a high-quality product into the
marketplace
E) Examining a product to improve its form utility
Which of the following is a scheduling tool that breaks down large projects into steps to
be performed and specifies the time required to perform each one?
A) Myers graphic
B) Critical path chart
C) Gantt chart
D) Process analysis graph
E) Master schedule
Which of the following affects how efficiently a company can respond to demand for
more or different products and their ability to match competitors speed and
convenience?
A) Location planning
B) Quality planning
C) Technology planning
D) Long-range capacity planning
E) Layout planning
Which of the following ratios measures a firm’s ability to meet its current debt
obligations?
A) Short-term solvency ratio
B) Long-term solvency ratio
C) Profitability ratio
D) Activity ratio
E) Equity ratio
Which factor plays a key role in determining an organization’s structure?
A) Competition and technology
B) Location and life-cycle stage
C) Profitability and leverage
D) Research and development
E) Mission and strategy
Which of the following BEST describes what is called the “open-market operations” of
the Federal Reserve System?
A) The development of new financial opportunities for banks
B) The minting of new money to disperse into the money market
C) The control of interest rates among banks
D) The maintenance of a well-functioning lending system among banks
E) The buying and selling of securities
What is the increase in the dollar value of an investment known as?
A) Dividend payout
B) Total return
C) Interest yield
D) Capital gain
E) Price appreciation
How do IT communications support leaner, more efficient organizations?
A) By increasing collaborative efforts among all employees
B) By supporting shared activities between buyers and sellers
C) By providing better use of employee skills and greater efficiencies instead of
resources
D) By allowing for more rapid exchange of information in the global market
E) By improving the management process
What is the extent to which an organization conforms to local, state, federal, and
international laws known as?
A) Government agency support
B) Social responsibility
C) Legal compliance
D) Political action
E) Free-trade
Which key piece of legislation made it illegal to discriminate in key areas of
employment, including hiring, promotion, and compensation?
A) Equal Employment Opportunity Act of 1972
B) Civil Rights Act of 1991
C) Equal Pay Act of 1963
D) Title VII of the Civil Rights Act of 1964
E) Fair Labor Standards Act
Which of the following describes the function of search engines that act as collections
of business Web sites representing diverse products?
A) Internet service providers
B) Electronic storefronts
C) Cybermalls
D) E-catalogs
E) Interactive retailing
What is the MOST effective way for an entrepreneur to become a competent manager?
A) Working alone
B) Relying on luck
C) Getting a college degree
D) Being open to opportunities
E) Working for a successful company first
Which software can create products ranging from cell phones to auto parts at lower
costs compared to manual modeling methods?
A) Decision support systems
B) Operations software
C) Computer-aided manufacturing software
D) Computer-aided design software
E) Data warehousing software
Which term describes services that cannot be produced ahead of time?
A) Transformed
B) Low-contact
C) Unstorable
D) Intangible
E) Consistent
Which of the following is the MOST significant recent trend in small-business
start-ups?
A) Entrepreneurs who cross over from big business
B) Increased opportunities for minorities
C) Increased opportunities for women
D) Emergence of e-commerce
E) Global economic downturn
Before products reach consumers, what market, consisting of wholesalers and retailers,
do products pass through?
A) Services markets
B) Industrial markets
C) Reseller markets
D) Government markets
E) Institutional markets
What is the name for a production system in which all the needed materials and parts
arrive at the precise moment they are required for each production stage?
A) Quality control system
B) Process control system
C) Just-in-time production
D) Standardized production
E) Custom-products production
When selling industrial goods and services, using representatives who are trained to
understand the needs of each customer is a key component of
A) advertising.
B) personal selling.
C) sales promotions.
D) publicity.
E) interactive marketing.
What is data warehousing?
A) A marketing strategy that creates sales agreements that stipulate product delivery
B) The process of dividing a market into categories of customer types
C) The study of consumer needs and wants and the way in which sellers can best meet
them
D) The process of collecting, storing, and retrieving data in electronic files
E) A customer identification strategy that targets potential buyers
What do firms use to avoid privacy invasion and improve productivity?
A) Spyware
B) Routers
C) Encryption software
D) Spam-filtering software
E) Anti-virus software
Which of the following represents the group of products that are closely related or are
sold to the same customer group?
A) Product line
B) Specialty product
C) Product mix
D) Convenience mix
E) Production mix
If, instead of offering incentives for sales goals, a manager were to get ideas on
increasing sales revenue from his sales team to implement, which of the following
would MOST likely result?
A) The sales team would be more motivated by feeling more invested in the process.
B) The sales team would prefer to be given clearly defined goals to meet.
C) The sales team would not have enough information to go on in order to get ideas.
D) The sales team would come up with too many different ideas.
E) The sales team would be more motivated because of the chance to earn more money.
Which of the following is a likely cause of increased prices for products, decreased
purchasing power, and decreased profit margins?
A) Low unemployment
B) Stagnant wages
C) Declining living standards
D) Cyclical inflation
E) Limited credit
What organization was founded in 1967 for economic, political, social, and cultural
cooperation in the Asia Pacific region?
A) SEATO
B) ASEAN
C) CENTO
D) OAS
E) WTO
How are equity theory and the psychological contract connected?
Discuss why a business owner would form a limited partnership instead of a general
partnership.
Discuss the implications of the Patriot Act for Human Resource Management.
What is the difference between leadership and management within an organization?
Discuss the types of grapevines within an organization and how accurate the grapevine
can be.
From a coaching perspective, what roles might an organizational leader assume?
What is the purpose of a knowledge information system?
Identify and explain each of the “Big Five” personality traits.
Differentiate between goods production and service operations.
The inquiry has discovered that the bank involved has been selling its riskiest mortgage
accounts to the insurance company, which in turn has been selling these accounts
packaged with other more stable loans at a sharply discounted price to other banks.
Gavin asks his aides why this would be a beneficial relationship between the two
institutions. What would his aides say?
Which of the three functions of money does a time deposit account MOST exemplify?
Why are employers concerned about the use of e-mail and potential legal liability, and
what steps are being taken to prevent issues?
Why does each company’s operations capability match up with its business strategy?
What are the purposes of having a strong corporate culture?
How is the U.S. economy affected by small businesses?
In assessing a country’s national competitive advantage, what is meant by factor
conditions?
Explain a tender offer.
Why might nations decline International Monetary Fund funds?
Identify and discuss five recommendations for companies that wish to grow.