A corporation is a legal entity distinct from the persons running the corporation.
Government agencies require publicly traded companies to publish extensive and
detailed financial reports.
Goals that are specific enough to give employees clarity and focus can function as
effective motivators.
The degree to which organizational tasks are broken down into separate jobs is referred
to as work specialization.
Credit derivatives based on home mortgages are known as mortgage-backed securities.
Full-service merchant wholesalers never actually own the products they handle, and
they perform fewer services than agents and brokers.
The supply curve of a firm will shift to the right if technology increases the firm’s
production costs.
A deep and prolonged recession can be considered as a depression.
Management is the process of planning, organizing, leading, and controlling to meet
organizational goals.
The basic distinction between wholesalers and retailers is that retailers sell to other
companies whereas wholesalers sell to individual consumers.
Both Fannie Mae and Freddie Mac are agencies of the FDIC.
Rolling forecasts are not based on revenue budgets and cost assumptions.
With rebates, companies offer partial reimbursement of the price as a purchase
incentive.
The prime rate is the interest rate that a bank charges its most credit-worthy customers.
Business start-ups decline when the economy sours.
When someone uses the justice approach as a way to resolve an ethical dilemma, he or
she seeks the greatest good for the most people.
Participative pricing allows customers to pay the amount they think a product is worth.
Market share can be defined by either number of units sold or by sales revenue.
Monetary policy involves changes in the government’s revenues and expenditures to
stimulate a slow economy or dampen a growing economy that is in danger of
overheating and causing inflation.
The U.S. Federal Trade Commission (FTC) and the Word of Mouth Marketing
Association assert that stealth-marketing techniques are deceptive because they don’t
give their targets the opportunity to raise their instinctive defenses against the
persuasive powers of marketing messages.
DS Bank is a bank specialized in buying shares of ownership from firms that want to
sell it to investors. The bank sells the shares to investors on the company’s behalf. DS
Bank is a(n) ________.
A) financial renovator
B) controller
C) treasurer
D) underwriter
E) non-banking firm
________ refers to the idea that carefully designed performance targets and aims can
motivate employees to higher performance.
A) Goal-setting theory
B) Equity theory
C) Herzberg’s two-factor theory
D) David McClelland’s three needs theory
E) Expectancy theory
One-on-one interaction between a salesperson and a prospective buyer is called
________.
A) personal selling
B) direct marketing
C) prospecting
D) sales promotion
E) specialty advertising
________ refers to the quantities of a good or service that producers will provide on a
particular date at various prices.
A) Necessity
B) Supply
C) Demand
D) Utility
E) Want
Unlike conventional organizations, unstructured organizations tend to ________.
A) provide employees opportunity to form close bonds with co-workers
B) lack clear assignments of legal or financial liability in the event of major foul-ups
C) have lower flexibility in adjusting their expense levels to match revenue levels
D) have clear lines of accountability up and down the chain of command
E) invest in employees over months or years, giving them time and opportunities to
develop deep knowledge and skills
Charles Associates is a U.S. company and has a central production plant in the U.S.
(Currency: U.S. dollar). It imports capital equipment and raw materials from Italy and
Germany (Currency: Euro). The company exports its products to China (Currency:
Renminbi), Japan (Currency: Yen), and India (Currency: Rupee). Which of the
following changes in the exchange market is beneficial to Charles Associates?
A) The U.S. dollar has strengthened against the Rupee.
B) The U.S. dollar has strengthened against the Renminbi.
C) The U.S. dollar has strengthened against the Euro.
D) The Yen has become weak against U.S. dollars.
E) The Euro has become strong against U.S. dollars
Alfa Knowledge is a knowledge management firm. The company helps organizations
document and manage internal knowledge. The company has operations in seventeen
countries.Which of the following is an opportunity available to Alfa Knowledge?
A) having strong financial resources
B) having a respected brand
C) having committed employees
D) presence of potential partners
E) presence of strong management professionals in the company
Which of the following is a limitation of the goal-setting theory?
A) decreased extrinsic motivation
B) reduced internal competition
C) missed learning opportunities
D) less challenging goals
E) reduced emphasis on short-term performance
A mortgage loan that has a variable interest rate over the life of the loan is known as
a(n) ________ mortgage.
A) adjustable term
B) secondary
C) subprime
D) prime
E) adjustable rate
Labex Chemicals has invented a new vaccine for pneumonia in children. The vaccine is
hyped to bring in huge profits for the firm. Because of this hype, the market value of
Labex’s shares increase by 300 percent. Many experts believe that this appreciation is
much more than the likely benefits that the shareholders will receive. This situation
exemplifies a(n) ________.
A) liquidity crisis
B) bubble
C) fiscal shock
D) asset crisis
E) credit freeze
The process of collecting, analyzing, and interpreting information about customers,
competitors, and other related marketing issues is known as ________.
A) social commerce
B) product development
C) market development
D) data mining
E) marketing research
Independent mortgage companies are non-bank companies that ________.
A) initiate loans on behalf of an investment bank
B) use their own funds to offer mortgages
C) use pooled funds to offer mortgages
D) initiate loans on behalf of a mortgage lender
E) offer opinions about the creditworthiness of borrowers
Which of the following is most likely to encourage entrepreneurship?
A) inability to find attractive employment anywhere else
B) increased market regulations
C) inadequate protection of property rights
D) excessive market regulation
E) monopolistic business practices
The Labor-Management Relations Act ________.
A) restricts employees’ freedom of speech and outlaws promotional activities of
unionization
B) guarantees the right of employees not to join or support unions
C) allows unions to strike for creating new jobs for union workers
D) gives employers the right to stop strikes and protests at the workplace
E) restricts employers’ freedom of speech to dissuade workers from voting for
unionization
An electronic appliance marketing company merges with one of its suppliers to form a
larger company. This is an example of a ________ merger.
A) market-extension
B) product differentiation
C) conglomerate
D) vertical
E) product-extension
Allan Donegan is the creative director of Barton Advertising, an advertising company
based in Dallas. He notices that Barry, the team-lead of the graphic designers has been
demotivated and distracted for the past couple of months. In an attempt to motivate
Barry, Allen decides to uses job enrichment strategy. Which of the following actions is
Allen most likely to implement?
A) Allen trains Barry to lead the team of copywriters and asks the team-lead of the
copywriters to handle the graphic designers.
B) Allen asks Barry to begin handling some of the client meetings and presentations
that were earlier done by Allen.
C) Allen asks Barry to handle some of the basic, uninteresting graphic designing tasks,
to help his team meet tight deadlines.
D) Allen begins to closely supervise Barry’s work and even sits in during Barry’s
monthly meetings with his team members.
E) Allen increases Barry’s salary and improves his incentive scheme.
Which of the following is a typical role of middle managers in an organization?
A) defining the strategic orientation of the organization
B) supervising workers on an assembly line
C) supervising knowledge workers
D) making long-range plans for the organization
E) translating strategic goals and objective into actions
GAAP aims to ________.
A) prohibit firms from documenting their internal financial controls and processes
B) give companies the freedom to determine the salaries of its employees
C) prevent firms from using internal auditors to audit operations
D) enable outsiders to make confident analyses and comparisons
E) provide the users with business intelligence to make informed decisions
Buyer’s remorse, in which one makes a purchase and then regrets doing so, is an
example of ________.
A) anchoring
B) hindsight bias
C) self-serving bias
D) fundamental attribution error
E) cognitive dissonance
Which of the following is TRUE about strategic CSR?
A) It involves donating money, employee time, or other resources to various causes
without regard for any direct business benefits for the company.
B) It is an attempt to balance free-market economics with government intervention.
C) It refers to organizational growth that meets the needs of the present without
compromising the ability of future generations to meet their own needs.
D) It involves social contributions that are directly aligned with a company’s overall
business plans.
E) It refers to the argument that firms should indulge in philanthropy only when there is
no conflicts of interest with the profitability of the firm.
Which of the following is a defining characteristic of a committee?
A) It refers to a team of people from several departments who are temporarily brought
together to address a specific issue.
B) It is composed of members at two or more geographic locations.
C) It typically deals with regularly recurring tasks, such as addressing employee
grievances.
D) It is usually composed of managers and employees within a single functional
department.
E) It manages its own activities and requires minimal supervision.
The term ________ is defined as having two consecutive quarters of decline in the
country’s gross domestic product.
A) deflation
B) stagnation
C) depression
D) stagflation
E) recession
Define a small business? What is the economic role of small businesses?
Identify the forces behind the real estate bubble and the Great Recession of 2007-2009.
A group of friends is planning to start a business. Should they form a formal contract to
establish themselves as a partnership? Elucidate the legal and practical aspects of this
issue.
Describe the major provisions of the Sarbanes-Oxley Act.
Compare and contrast between capital-intensive businesses and labor-intensive
businesses.
What is a trading bloc? Explain the working of any one trading bloc.