A company with high demand for its product in a particular foreign market that is
associated with high transportation costs would tend to arrange a strategic alliance over
any other international organization structure.
The starting point in effective management is setting goals.
When an organization analyzes its internal strengths and weaknesses, it is conducting
an organizational analysis.
The technological environment includes only electronics and telecommunications used
to perform business activities.
Contingency planning seeks to identify how a company will respond to change.
Ethics are beliefs about what is right and wrong.
A systematic study of jobs within an organization is conducted through a job analysis.
Stabilization policy is made up of both monetary and fiscal policy.
Most businesses in the United States are large businesses with more than 500
employees.
Through data mining, a manager can access demographic information on customers, for
example, in order to decide which advertising media may be best to use.
The board of directors of a corporation reports to the officers of the corporation.
Quality improvement teams are groups of employees from various work areas who
define, analyze, and solve common production problems.
Economic conditions greatly influence marketing plans for product offerings.
A company with a very high amount of liabilities will always find it more difficult to
secure loans than a company with a very low amount of liabilities.
A marketer seeking to reach a highly targeted audience would probably get better
results from Internet advertising than from newspaper advertising.
Stock brokers earn commissions from the individuals and organizations for which they
place orders.
Microsoft’s Live Messenger and IBM’s Visualization Data Explorer are examples of
groupware.
Doubling the number of merchants participating in a sales program over the next 10
years is an example of a long-term goal.
Neglect is a major factor that contributes to small business failure.
Human resource managers need to forecast the internal and external supply of
employees.
Job specialization is the process of eliminating unnecessary or undesirable jobs.
One advantage to marketers of selling online is that it is easier for sellers to hide prices
and enjoy a large markup.
In a centralized structure, most decision-making authority is delegated to levels of
management at various points below the top.
Value-added analysis might focus on both the elimination of waste and cost
minimization.
B2B sellers rarely have long-term relationships with buyers.
Flat organizational structures are usually associated with centralized decision making.
The primary measure of growth in the business cycle is inflation.
In spite of employment at will, employees may not be fired for filing workers’
compensation claims.
Divisional structure is the relationships between group functions and activities that
determine authority.
In general, the accounting standards from the IASB and from the U.S. GAAP align
nearly perfectly.
A detailed schedule will consider employees’ needs and the company’s efficiency and
cost, including demand for production.
SWOT analysis is usually conducted before strategic goals have been established.
The failure rate among small businesses has been increasing in recent years.
Information managers are responsible for getting products from producers to
consumers.
When an investment bank engages in underwriting, that investment bank is taking on
risk in the process of launching new securities.
Hypertext transfer protocol (HTTP) is a basic communications protocol used to receive
e-mail.
Unlike the Dow and the S&P 500, all NASDAQ-listed companies, not just a selected
few, are included in the index for a total of some 3,400 firms across six continents.
If productivity increases, prices charged to consumers will tend to increase as well.
Individuals may satisfy social needs by making and maintaining friendships at work.
In what type of distribution process does the product move from producer to consumer
without the use of intermediaries?
A) Wholesale
B) Direct channel
C) Agency
D) Brokerage
E) Retail
What category of ethics relates to matters such as hiring, firing, working conditions,
privacy and respect?
A) Behavior toward economic agents
B) Behavior toward employees
C) Behavior toward the organization
D) Elimination of conflicts of interest
E) Social responsibility
Which of the following is used to automate the analysis of customer information and
how might they be influenced by marketers?
A) Data mining
B) Brand competition
C) Customer relationship management
D) Relationship marketing
E) Data warehousing
What type of management is exemplified by the idea that managers should delegate to
subordinates and allow those subordinates to be responsible for decisions?
A) Authentic management
B) Linear management
C) Centralized management
D) Group management
E) Decentralized management
Which is usually the first step in the marketing strategy that allow marketers to focus
efforts on a particular group of people or organizations?
A) Distribution
B) Product differentiation
C) Target market selection
D) Pricing
E) Integration
How does an issuer of mortgage-backed security pay off debt obligations?
A) Through the sale of mortgages to consumers
B) Through an increase in interest rates on mortgages
C) Through the assets of the lending institutions
D) Through the closing of a mortgage loan
E) Through the influx of cash from mortgage payments
What is the definition of a coalition?
A) An informal group formed to achieve a common goal
B) An institution incorporated in order to achieve a common goal
C) A pro-business political party
D) The network of management within a firm
E) The network of employees within a firm
When conducting a SWOT analysis of an organization, which question can help
management brainstorm for the weaknesses section of the analysis?
A) What external changes present interesting possibilities?
B) What aspect of the organization’s vision can be altered?
C) What necessary skills do the organization’s employees currently lack?
D) What does the organization offer that makes it stand out from other organizations?
E) What external economic forces can affect the organization’s bottom line?
Which level of management is responsible for the overall performance and
effectiveness of the firm?
A) Top managers
B) First-line managers
C) Middle managers
D) Supervisory managers
E) Human resource managers
According to reports, what can the subprime crisis of 2008 be traced to?
A) Overly relaxed credit standards
B) Home foreclosures
C) Defaults on credit payments
D) High unemployment levels
E) Prime mortgage rates
Which of the following best describes a private label brand?
A) A retailer uses packaging as a form of advertising.
B) A retailer develops a brand name and has a manufacturer put it on a product.
C) A manufacturer puts its name on an unrelated product for a fee.
D) A brand name is used throughout a series of products made by the same
manufacturer.
E) A brand is reintroduced in a new, often global, market.
If, in the long run, international trade improves the standards of living in participating
countries, why might some countries want to place trade barriers, such as extra taxes,
on imported products?
A) Imported products compete with domestic products and thus put pressure on local
business.
B) Imported products are usually not as good quality as domestically made products.
C) Generating government revenue is often more economically valuable than free trade.
D) This is necessary to keep a country’s currency strong.
E) International trade tends to lead to political tension.
Which of the following bodies formulates the generally accepted accounting principles
(GAAP)?
A) Accounting Disclosure Board
B) Financial Accounting Standards Board
C) Association of Certified Fraud Examiners
D) Securities and Exchange Commission
E) American Institute of Certified Public Accountants
Which of the following represents the accounting equation?
A) Assets = Liabilities + Owners’ Equity
B) Owners’ Equity = Assets + Liability
C) Liability = Assets + Owners’ Equity
D) Assets = Liabilities – Owners’ Equity
E) Assets = Liabilities Owners’ Equity
What are products that are created abroad and then transported and sold domestically?
A) Dumped goods
B) Exports
C) Imports
D) Buy backs
E) Domestic goods
What is the name given to an employee who is hired on something other than a
permanent or full-time basis?
A) Knowledge expert
B) Contingent worker
C) Technical employee
D) Supervisory manager
E) Managing director
Which of the following is greatly influenced by nonobjective factors such as sociability,
imitation and aesthetics?
A) Emotional motives
B) Post-purchase evaluation
C) Rational motives
D) Evaluation of alternatives
E) Need recognition
Which of the following banking instruments has a fixed term?
A) Demand deposits
B) Time deposits
C) Money market mutual funds
D) Credit card accounts
E) Savings accounts
What is the biggest advantage of incorporating?
A) Limited liability
B) Increased profits
C) Tax advantage
D) Increased talent pool
E) Limited tender offers
When does a state of certainty exist in a decision-making process?
A) When conditions and alternatives are understood
B) When conditions are complex and turbulent
C) When potential payoffs and costs are determined
D) When decisions are made based on intuition, judgment, and experience
E) When the conditions are clearly defined and the need for a decision is clear
To move a new idea to a marketable entity, who must approve and support the project,
including the funding of the idea?
A) Inventors
B) Sponsors
C) Stakeholders
D) Product champions
E) Project committees
Why do exchange rates change daily?
A) Because exchange rates reflect global supply and demand
B) Because exchange rates reflect political decisions
C) Because exchange rates reflect the economic health of the country
D) Because exchange rates are closely tied to the unemployment rates
E) Because exchange rates are based on the travel industry
Which of the following affects the value of money?
A) How much currency is in circulation
B) How many units the currency can be divided into
C) How portable the form of currency is
D) How durable the form of currency is
E) How much currency has been saved
Which of the following BEST describes a mission?
A) An objective that a business hopes and plans to achieve
B) A broad set of organizational plans for implementing decisions made for achieving
organizational goals
C) The shared experiences, stories, beliefs, and norms that characterize an organization
D) An organization’s statement of how it will achieve its purpose in the environment in
which it conducts business
E) An organization’s competitive standing in the marketplace
What are independent contractors, on-call workers, temporary employees, contract
employees, and leased employees all examples of?
A) Union workers
B) Contingent workers
C) Migratory workers
D) Ancillary workers
E) International workers
Which type of business constituent has titles such as President and CEO?
A) First-line managers
B) Top managers
C) Middle managers
D) Power brokers
E) Stockholders
The systematic direction and control of activities that transform resources into finished
products is known as which of the following?
A) Service operations
B) Operations capability
C) Operations management
D) Good operations
E) Process capability
What would marketers utilize if they wanted to identify markets where customers had a
certain lifestyle, personality, or attitude?
A) Place utility
B) Geographic segmentation
C) Psychographic segmentation
D) Possession utility
E) Behavioral segmentation
What causes people to behave in a certain way on the job?
A) Person-job fit
B) Inducements
C) Pay
D) Psychological contracts
E) Motivation
How can e-commerce help businesses with scattered geographical locations better
compete?
A) By coordinating remote deliveries
B) By creating portable offices
C) By creating leaner, more efficient organizations
D) By fostering increased collaboration
E) By improving management processes
What type of management process function is being used when a manager motivates the
workforce by rewarding them with additional vacation when standards are achieved?
A) Leading
B) Planning
C) Organizing
D) Marketing
E) Strategizing
When is conducting market research generally most effective?
A) When entering international markets
B) When sales begin to drop
C) When competitors release newer, competitive products.
D) When developing new products or altering existing products
E) When a new product is ready to be released
What does an entrepreneur use to summarize his or her business strategy for a proposed
new venture?
A) Success chart
B) Director’s guideline
C) Financial blueprint
D) Business plan
E) Balance sheet
Which of the following are examples of premiums?
A) Contests that reward winners with free samples of the product
B) Free items given out at trade shows
C) Coupons for reduced prices on certain products
D) Reduced-price items available upon purchase of a product
E) Reduced-price items available during a sales promotion
What is a decision support system?
Contrast leadership substitutes with leadership neutralizers.
Identify the potential users of accounting information.
Describe how the behavioral approach to leadership could apply to the situational
approach to leadership.
What is the difference between ethics and social responsibility?
Describe the four basic forms of organizational structure.
In a TQM environment, what are some steps that companies use to emphasize the
importance of quality?
What is a leveraged buyout?
Discuss the difference among a divestiture, a merger and acquisition, and a spin-off.
Discuss the difference between production items, expense items, and capital items.
A corporation must be managed on the principles of corporate governance. Explain
what this is.
Differentiate among strategic, tactical, and operational plans.
Discuss the strategic importance of human resources within an organization.
How do human resource managers use job analysis for human resource planning?
How does expectancy theory explain employee motivation?
Explain what is covered by GAAP and why it is important to use these standards.
Describe the services provided by investment banks.
The situational approach to leadership was first proposed as a continuum of leadership
behavior. Explain the two extreme ranges of the continuum.
Identify the ways small businesses can benefit from an understanding of the marketing
mix.