Which type of investment will sacrifice current income potential for long-term returns?
A) Blue-chip stock
B) Balanced funds
C) Aggressive growth funds
D) No-load funds
E) Mutual funds
Which of the following is a partner who actively manages a firm and has unlimited
liability for its debts?
A) Limited partner
B) General partner
C) Stockholding partner
D) Public partner
E) Silent partner
Which of the following acts as an intermediary by selling products to other businesses,
who then sells them to the final consumer?
A) Brokers
B) Agents
C) Wholesalers
D) Intermediaries
E) Retailers
What is MOST useful about Theory X and Theory Y?
A) They shed light on managers’ attitudes toward employees.
B) They provide a useful blueprint for taking action.
C) They help managers better understand employees.
D) They accurately depict the attitude of employees at work.
E) They support management decisions and plans.
Which of the following BEST characterizes the difference between the roles of
advertising and personal selling in the promotional mix of a firm?
A) Advertising is, at its worst, very expensive with little return, whereas personal
selling is also very expensive, at its worst, but with better returns.
B) Advertising, at its best, targets a specific audience about a product, whereas personal
selling, at its best, is always dependent on the clients that a seller has.
C) Advertising involves public relations with the overall population of consumers,
whereas personal selling involves personalized relationships with select individuals.
D) Advertising is a relatively new method of promotion, whereas personal selling is the
oldest method of promotion.
E) Advertising is nonpersonal in its communication about a product, whereas personal
selling is highly individualized.
When there is little ambiguity in the decision-making process, what decision-making
condition exists?
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
What type of loan allows a borrower to maintain a compensating balance at the bank
instead of putting up collateral?
A) Unsecured loan
B) Venture capital loan
C) Angel investor loan
D) Secured loan
E) Corporate bond
Which of the following options BEST describes an example of price lining?
A) Having the price of each individual song on an online music store be determined by
length of song
B) Having the price of each individual song on an online music store be determined by
popularity of the band
C) Having the price of each individual song on an online music store be determined by
user auction
D) Having the price of each individual song on an online music store be determined by
reverse auction
E) Having the price of each individual song on an online music store be determined by
which of several categories the song falls into
What is created when a corporation creates a new operation with another firm?
A) Divestiture
B) Spin-off
C) Joint venture
D) Merger
E) Acquisition
What does a start-up company need in order to estimate the required size of a plant,
store, or office, inventory levels, and size of staff?
A) Sales forecast
B) Tax estimate
C) Business objective
D) Stock options
E) Funding source
Which material management process stores incoming materials for production and
finished goods for distribution?
A) Warehousing
B) Lean production
C) Transportation
D) Purchasing
E) Supply chain
What is used to guide the detailed activities of the marketing plan ensuring the goals of
the plan are accomplished?
A) Marketing strategy
B) Product differentiation
C) Marketing objectives
D) Distribution policy
E) Marketing mix
For investors who do not want investment advice and wish to avoid paying a
commission, what is the best type of broker assistance firm?
A) Mutual fund advisors
B) Investment banks
C) Stock broker
D) Discount broker
E) Full service broker
Which of the following clarifies structure and shows employees where they fit into a
firm’s operations?
A) Delegation
B) Departmentalization
C) Organization charts
D) Mission statement
E) Job descriptions
When a company produces products when consumers want them, it creates which type
of utility?
A) Ownership
B) Time
C) Form
D) Place
E) Value
Which description defines the planning function of the management process?
A) Guiding and motivating employees to meet organizational objectives
B) Discussing how best to arrange an organization’s resources into a coherent structure
C) Scanning the business environment for threats and opportunities
D) Determining what an organization needs to do and how best to get it done
E) Monitoring a firm’s performance to make sure that it is meeting its goals
The marketing manager wants to increase regional sales by 2 percent each quarter over
the next year. This is an example of what kind of goal?
A) Long-term
B) Intermediate
C) Short-term
D) Strategic
E) Tactical
What does e-partnering involve?
A) Buying shares of small companies that provide technology unavailable to the
purchasing company
B) Buying shares of small companies that are similar to the purchasing firm
C) Linking up to the inventory records of another company
D) Sharing a Web server with another company
E) Advertising another company on the purchasing company’s Web site
An employee is encouraged to apply for a promotion, but does not because he has
children and wants to be home in the evening. Based on expectancy theory, which of
the following explains why the employee doesn’t apply for the job?
A) The effort-performance issue
B) The rewards-personal goals issue
C) The performance-rewards issue
D) The rewards-ethics issue
E) The ethics-performance issue
In which type of store would you MOST likely find specialized departments based on
types of products?
A) A supermarket
B) A discount house
C) A department store
D) A convenience store
E) A specialty store
Which of the following represents an informal alliance of individuals who seek to
achieve a common goal?
A) Lobbying
B) Escalation of commitment
C) Political force
D) Coalition
E) Leadership
In which step of the strategy formulation process would a SWOT analysis take place?
A) Matching the organization and its environment
B) Analyzing the organization and the environment
C) Developing tactical and operations plans
D) Setting strategic goals
E) Contingency planning and crisis management
What is the name given to a group of individuals working together to achieve shared
job-related goals such as higher pay, shorter working hours, greater benefits, or better
working conditions?
A) Management organization
B) Company hierarchy
C) Labor union
D) External organization
E) Permanent employees
Which of the following begins when a manager assigns responsibility to a subordinate?
A) Centralization
B) Delegation
C) Liability
D) Authority
E) Training
What do organizations use to build better, stronger information connections with
clients?
A) Customer relationship management (CRM)
B) Data warehousing
C) Industrial marketing
D) Possession utility
E) Data mining
When a business hires a staff to formally represent the organization before a political
body, in efforts to influence that political body, the business is
A) using personal contacts.
B) starting a political action committee.
C) lobbying.
D) asking for favors.
E) campaigning.
Which of the following terms refers to the monetary amount added to a product’s cost to
the seller in order to sell it at a target profit?
A) Profit margin
B) Breakeven cost
C) Revenue
D) Revenue margin
E) Markup
The U.S. Department of Commerce considers a business ‘small” if it has fewer than
how many employees?
A) 10
B) 50
C) 100
D) 500
E) 1,500
Which behavior modification choice links a negative action with a negative
consequence?
A) Performance measurement
B) Punishment
C) Regression
D) Social learning
E) Management by objectives
According to which theory are employees given a voice in how they do their jobs and
how the company is managed?
A) Participative management and empowerment
B) Theory X
C) Classical theory of motivation
D) Modified work schedules
E) Scientific management
In Germany, Walmart has been required to buy existing retailers rather than open
brand-new stores. What does this illustrate?
A) Local content laws
B) Fair trade agreements
C) Free trade agreements
D) Licensing arrangements
E) Business practice laws
Social activism dedicated to protecting the rights of consumers is the result of what?
A) Increased legislation
B) Consumerism
C) International agreements
D) The Consumer Bill of Rights
E) Green marketing efforts
Which of the following statements BEST describes the need for global accounting
standards?
A) The complexity of the global market increases the risk of unethical accounting
behavior by allowing accountants to choose which national GAAP standards are best
for their clients.
B) The rise of the global market increases the risk of money laundering and offshore
accounting.
C) The rise of the global market increases the risk of fraudulent business transactions
across borders.
D) The rise of the global market increases the risk of international dumping and
profit-skimming.
E) The rise of the global market increases the risk of the creation of dummy companies
and accounts for the purpose of dumping toxic assets.
In addition to increased flexibility, why do organizations use contingent workers?
A) There is less need for training.
B) Contingent workers can replace knowledge workers.
C) Contingent workers often represent a higher quality labor force.
D) Contingent workers are less expensive to hire.
E) The organization simply cannot find full time workers.
Which of the following BEST describes an extranet?
A) A software and hardware system that prevents outsiders from accessing a company’s
network
B) A tool that searches Web pages containing the user’s search terms and then displays
pages that match
C) A private network of internal Web sites and other sources of information available to
a company’s employees
D) An Internet connection allowing outsiders limited access to a firm’s internal
information system
E) A delivery system linked to production schedules