Which term refers to the acquisition of the raw materials a company needs to produce
its products?
A) Development
B) Purchasing
C) Goods control
D) Quality control
E) Wholesaling
Which of the following is an advantage of sole proprietorships?
A) Ease in attracting a silent partner.
B) Sales and expenses are treated as part of personal finances.
C) It is easier to borrow money.
D) There is increased continuity.
E) Bills are paid out of pocket.
Which type of business environment can reduce or replace the need for traditional
working methods, physical equipment, and other platforms needed to conduct business?
A) Global business environment
B) Economic environment
C) Domestic business environment
D) Technological environment
E) Political-legal environment
In selecting an alternative when making a decision, what should decision makers keep
in mind?
A) Finding multiple acceptable alternatives is neither possible nor efficient.
B) Finding multiple acceptable alternatives should not take very long.
C) Selecting one alternative and rejecting all others will be the decision maker’s main
objective.
D) Selecting one alternative and rejecting all others might not be necessary.
E) Selecting one alternative and rejecting all others should be a straightforward process.
Which of the following industry groups is the fastest growing segment of small
business enterprise?
A) Manufacturing
B) Wholesaling
C) Retailing
D) Transportation
E) Services
Which of the following strengthens identity-theft protection by specifying how
documents with personal information must be disposed of?
A) Spamhaus Project
B) CAN-SPAM Act of 2003
C) Federal Trade Commission
D) Fair and Accurate Credit Transactions Act
E) Webroot Spy Sweeper Project
What is the advantage of exchange-traded funds (EFTs) over mutual funds?
A) They can be traded throughout the day like a stock.
B) The cost of the fund management is passed on to the holder.
C) They do not require the services of a broker to complete a transaction.
D) They allow for frequent trading with lower overall transaction fees.
E) They regularly out-perform mutual funds.
The value of the U.S. dollar relative to the value of the British pound fluctuates with
market conditions. What is this type of exchange rate?
A) Floating
B) Fixed
C) Indexed
D) Adjusted
E) Monitored
What is another name for a falsified Web page?
A) Phished
B) Spoofed
C) Mooched
D) Pharmed
E) Wormed
Who is defined as an older worker under the Age Discrimination in Employment Act?
A) Those over 30 years of age
B) Those over 40 years of age
C) Those over 50 years of age
D) Those over 60 years of age
E) Those over 70 years of age
Which of the following political bodies appoints the members of the board of governors
for the Federal Reserve System?
A) The Senate
B) The House of Representatives
C) The President of the United States
D) The Council of American Governors
E) The people of the United States
What type of ratio measures a firm’s ability to generate cash to meet current obligations
by selling inventory and collecting revenue?
A) Earnings per share
B) Debt
C) Revenue recognition
D) Current
E) Activity
What is the difference between a specialty good and a specialty service?
A) A specialty service is an intangible item.
B) A specialty good costs more than a specialty service.
C) A specialty service is often compared to other services before purchase.
D) A specialty good can be compared to other items using the Internet.
E) A specialty service is purchased regularly.
Which of the current business characteristics has brought the rise of virtual leadership?
A) More communication within the organization
B) Little communication among employees
C) More face-to-face communication within the organization
D) Less face-to-face communication within the organization
E) Little communication between employees and management
How is the market value of a stock determined?
A) Interest rates
B) The firm’s owners’ equity
C) Number of shares available
D) Profit-seeking potential
E) How much buyers are willing to pay
Which of the following ratios measures a firm’s potential earnings?
A) Short-term solvency ratio
B) Long-term solvency ratio
C) Profitability ratio
D) Activity ratio
E) Equity ratio
When might high debt levels be a benefit to an organization?
A) When trying to make otherwise unaffordable investments
B) When trying to prevent a leveraged buyout
C) When determining earnings per share on common stock
D) When calculating the current ratio to determine short-term solvency
E) When the firm’s short run credit risk is strong
When a security is resold and bought by another investor, where does the gain or loss
go?
A) The investor who bought the security
B) The bank that financed the IPO
C) Stakeholders with vested interests in the company
D) The investor who sold the security
E) The company
Which of the following describes an organization’s investment in attracting and
motivating an effective workforce?
A) Human capital
B) Talent management
C) HR planning
D) Internal forecasting
E) Job descriptions
Which of the following allows people to choose their working hours by adjusting a
standard work schedule on a daily or weekly basis?
A) Job enrichment
B) Flextime programs
C) Job enlargement
D) Job redesign
E) Work sharing
What are keyboards, monitors, and printers examples of?
A) Control
B) Hardware
C) Software
D) Databases
E) Servers
What concept is supported by those who believe that corporations should help improve
the lives of citizens?
A) Social auditing
B) Government initiative
C) Collusion
D) Social responsibility
E) Social accommodation
Which of the following will help a manager be more successful both now and at some
point in the future?
A) Training
B) Development
C) Cafeteria-style plans
D) Pay-for-knowledge plans
E) Vestibule training
Which of the following statements BEST describes the effects of subsidies?
A) A subsidy essentially lowers the prices of foreign goods rather than raising the prices
of domestic goods.
B) A subsidy essentially raises the prices of domestic goods rather than lowering the
prices of foreign goods.
C) A subsidy essentially lowers the prices of domestic goods rather than raising the
prices of foreign goods.
D) A subsidy essentially raises the prices of foreign goods while also raising the prices
of domestic goods.
E) A subsidy essentially lowers the prices of foreign goods while also lowering the
prices of domestic goods.
Which of the following will allow for the transfer of money between accounts in order
to allow an individual to make retail purchases, without increasing funds at the
individual’s disposal?
A) Smart cards
B) Blink cards
C) Debit cards
D) E-commerce cards
E) Credit cards
Which is the MOST widely cited U.S. stock market index?
A) Standard & Poor’s Composite Index of 500 Stocks
B) The NYSE index
C) Dow Jones Industrial Average
D) Moody’s Stock List
E) The NASDAQ
Suppose the United States requires products sold in the United States be at least 51
percent made in the United States. Which of the following denotes this type of policy?
A) Business practice law
B) Deregulation law
C) Antidumping laws
D) Strategic alliance
E) Local content law
Which of the following might you, as a manager, expect to see in an employee who has
a low degree of conscientiousness?
A) A tendency to be unprepared at meetings
B) A tendency to have a high degree of performance
C) A tendency to focus on relatively few tasks at one time
D) A high level of organization and self-discipline
E) An ability to meet deadlines without fail
In order to exert influence on corporate managers, groups can pool resources to buy
huge blocks of stock. These groups are known as
A) spin offs.
B) ESOPS.
C) joint ventures.
D) institutional investors.
E) strategic alliances.
When an investor is not interested in owning their own business, why do they need to
understand entrepreneurship?
A) To understand why someone would want to work so hard for a small return
B) To determine the key characteristics of success
C) To understand how to convert a great idea to a profitable idea
D) To assess the market potential for up-and-coming businesses
E) To learn how to set up a business plan
If a buyer is unhappy with their purchase decision, what are they more likely to do than
those who are happy with their purchase decision?
A) Use a different decision-making process.
B) Continue to purchase the same product until a replacement is found.
C) Tell others.
D) Rely more on rational motives.
E) Develop a more limited evoked set of purchase options.