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The purchasing behavior of organizations is easier to understand than the purchasing
behavior of consumers because it's more clearly driven by economics and influenced
less by subconscious and emotional factors.
A joint venture does not result in a separate legal entity.
Treasury bills are sold at a discount and redeemed at face value.
A team that may become permanent in order to deal with regularly recurring tasks is
called a task force.
Hedging refers to selling a product at a higher rate than what was determined.
Cost of capital is the average rate of interest a firm pays on its combination of debt and
equity.
Investing in bonds typically has higher risk than investing in stocks.
Outsourcing and offshoring are synonymous terms.
Strong dollar will lower the cost of goods that the U.S. exports.
A value statement does not establish expectations for an organization's employees.
Equity financing refers to arranging funding by selling ownership shares in the
company.
Leverage is the technique of increasing the rate of return on an investment by financing
it with borrowed funds.
________ leaders act as advisors and supporters and generally let subordinates chart
and adjust their own course toward meeting agreed-upon goals and objectives.
A) Participative
B) Consultative
C) Autocratic
D) Transactional
E) Laissez-faire
Which of the following is a key difference between financial accounting and
management accounting?
A) Financial accounting is concerned with preparing cost analyses, whereas
management accounting is concerned with creating reports.
B) Financial accounting considers such aspects as profitability, whereas management
accounting does not consider profitability.
C) Financial accounting creates information for outsiders, whereas management
accounting is for insiders.
D) Management accounting is based on historical data, whereas financial accounting is
based on real time data.
E) Accounting knowledge is crucial to perform management accounting, whereas
limited accounting knowledge is sufficient for financial accounting.
A sole proprietorship ________.
A) is taxed as a separate corporation
B) requires immense paperwork
C) does not have a legal status
D) is owned by only one person
E) gives reduced control to the owner
Direct marketing differs from advertising in that direct marketing ________.
A) is carried by someone else's medium
B) promotes the features and benefits of specific products
C) refers to personal sales contacts
D) involves the purchase of time or space in other media
E) often uses personally addressable media
Expenses incurred through marketing and distributing a product are referred to as
________ expenses.
A) organization
B) permanent
C) general
D) selling
E) administration
A(n) ________ identifies both the current skill levels of the company's workforce as
well as those the company needs in order to succeed.
A) employee turnover analysis
B) replacement chart
C) EPM
D) skills inventory
E) 360-degree review
Which of the following is the basic premise of a derivative?
A) limiting the value of an asset attached to them
B) transferring risk from one party to another
C) linking shares to governmental bonds
D) minimizing the risk for all parties involved
E) maximizing the dividend payout on equities
In the workplace, motivation can be assessed by measuring four indicators: satisfaction,
engagement, rootedness, and ________.
A) intelligence
B) commitment
C) creativity
D) work performance
E) cognitive dissonance
Differences between a person's actual state and his or her ideal state is termed as
________.
A) cognition
B) utility
C) needs
D) perception
E) drive
Charles is the owner and manager of Fresh Bakes, a bakery and cafe in New York.
Charles keeps a close tab on all the employees at the store, and closely reviews their
work. All the chefs have to get his approval before choosing the daily specials. Charles
often gets irritated if any decision is made without his input. He even supervises the
simple tasks such as store decorations, and the arrangement of the window display. In
this example, Charles is most likely to be using which of the following strategies?
A) vertical integration
B) micromanaging
C) empowering
D) macromanaging
E) reinforcing
Since its inception, Whole Foods Market has contributed 5% of its profits to charitable
endeavors. At Whole Foods Market, company leaders believe they have responsibilities
beyond making a profit. The firm has a ________ approach to CSR.
A) cynical
B) minimalistic
C) primary
D) philanthropic
E) proactive
Accrued expenses are expenses that ________.
A) are likely to be incurred at a future time in a different financial year
B) have been incurred but for which bills have not yet been received
C) are long-term liabilities that have been incurred in a financial year
D) have been incurred and for which the bills have been received
E) are likely to be incurred at a future time in the same financial year
________ is the study of how a society uses its scarce resources to produce and
distribute goods and services.
A) Anthropology
B) Economics
C) Proxemics
D) Entrepreneurship
E) Sociology
Which of the following is TRUE about a small business?
A) A small business employs from 500 to 1000 employees.
B) A small business is usually funded by personal lines of credit, and not through bank
loans and microlenders.
C) A small business is one that is not dominant in its field.
D) A small firm usually curtails the freedom to innovate.
E) A small firm avoids risks that larger firms are willing to take.
A promotional strategy that focuses on intermediaries is termed as ________.
A) push strategy
B) digital strategy
C) pull strategy
D) operations strategy
E) pricing strategy
________ refers to distributions of financial incentives to employees who voluntarily
depart; usually undertaken in order to reduce the payroll.
A) Mandatory retirement
B) Affirmative action
C) Worker buyout
D) Decentralization
E) Outplacement
Joint ventures ________.
A) let companies create tightly integrated operations
B) are less risky than strategic alliances
C) are riskier to a firm than formal mergers
D) disrupt the original companies and their business
E) would not help companies gain credibility in new fields
________ is the quality of performing at a high level and conducting oneself with
purpose and pride.
A) Business mindset
B) Professionalism
C) Job enrichment
D) Positive reinforcement
E) Etiquette
On a vacation to Italy, you exchange $100 to get 70 Euros in return. This amount is
significantly lower than what you received last year. This indicates that the ________.
A) U.S. has a trade surplus against Italy
B) Euro has depreciated in value recently
C) U.S. dollar has weakened in the past year
D) U.S. has a trade deficit against Italy
E) balance of payment between U.S. and Europe is unfavorable
Loather Bank is a commercial bank in Italy. The bank offers financial services to
individuals in Italy. The major products of the bank include personal loans, savings
accounts, credit cards, and debit cards. Loather Bank is a(n) ________.
A) investment bank
B) retail bank
C) thrift bank
D) credit union
E) merchant bank
Boston Ceramics is a manufacturer of semiconductors. The company produces such
parts as ceramic machine components. The company wants to raise $15 million to
launch operations in a new country. The company decides to fund the launch entirely by
using debt financing. Which of the following observations, if true, would most
strengthen this financing decision?
A) Research has revealed that the company has a high chance of succeeding in the new
market.
B) The company is looking to obtain funding that does not have a specific maturity
period.
C) The management feels that the new project is a very risky affair.
D) The management wants to establish discretionary costs for the new project.
E) Tax rates are high in the new market and the company wants to minimize taxable
income.
Co-branding is ________.
A) a legal protection given to owners for exclusive rights to the use of brands
B) a partnership to closely link brand names for a single product
C) the process of selling a famous brand to a third party
D) a method of testing and evaluating a new product
E) an agreement to produce and market another company's product
Compare and contrast the various approaches used to resolve ethical dilemmas.
Is there such a thing as a "free" economy? Explain and support your views.
Compare and contrast the social environment and the economic environment of a
business.
Explain the decisional roles of managers.
What is the optimal size for teams? How does an employee who assumes a
task-specialist role differ from an employee who assumes a socioemotional role?
Compare and contrast debt financing and equity financing.
The management at RXF Constructions has failed to convince the employee union to
accept an hourly wage of $10. The union is demanding a wage of $13 per hour. The
management feels that such high wages will not be feasible. Conduct a mock trial of
compulsory arbitration to resolve this issue.
