Retained earnings are net profits minus dividend payments to stockholders.
Psychographics cannot be changed by marketing efforts.
The informational roles of a manager are natural continuations of a manager’s
interpersonal role.
A person’s self-efficacy is a belief about their extent of power and status within the
organization.
Hygiene factors affect motivation only if they are absent or fail to meet expectations.
A comparative advantage exists when a country can produce something more cheaply
and/or of higher quality than any other country.
Price skimming occurs when a company sets an initially low price to establish a new
product in the market.
Strategic alliances give firms greater control over foreign activities than do agents and
licensees.
Geographic variables describe populations by identifying traits, such as age, income,
gender, ethnic background, marital status, race, religion, and social class.
The situational approach to leadership gives equal weight to the elements of the
situation and the characteristics of the leader and followers in order to ascertain the
outcomes of a leader’s actions.
Aggregate output refers to a company’s annual production of goods or services.
Variable costs of a product are those costs that change with the quantity of a product
produced and sold.
A joint venture occurs when partners share ownership of a new enterprise.
If a company’s assets exceed its liabilities, owners’ equity is negative.
An information system may be a set of several information systems that share
information.
Through the Federal Deposit Insurance Corporation, a deposit in a member bank is
currently insured up to $50,000.
Products priced above the market play on the common assumption that a higher price
means higher quality.
Due to current concerns over accounting fraud, certified public accountants are now
licensed by the Securities and Exchange Commission.
The reporting relationships within an organization follow a chain from the highest level
to the lowest level in the organization, known as chain of command.
In promotion, a pull strategy involves marketing a product to wholesalers and retailers
who then persuade customers to buy it.
Inventory control is the means of moving resources to the producer and finished goods
to the customer.
Human capital represents the set of organizational activities directed at attracting,
developing, and maintaining an effective workforce.
Operations managers are responsible for production, inventory, and quality control.
Because of the uncertainties involved in stock prices, investment professionals believe
day-to-day prices to be a generally poor indicator of any stock’s real value.
Among the bargain retail operations, convenience stores, in general, provide the most
substantial price reductions to the products.
The Federal Reserve System has been instrumental in providing interbank clearing of
electronic payments for the nation’s financial institutions.
For B2B promotions, who typically sponsors trade shows where companies display and
demonstrate their products?
A) Retailers
B) Manufacturers
C) Wholesalers
D) Marketers
E) Industry sponsors
Which states the correct definition of collectivism?
A) A greater focus on group characteristics than on individual characteristics
B) A greater focus on the group than on the individual
C) A greater focus on the individual within a group than on the individual without a
group
D) A greater focus on individuals who are most successful
E) A greater focus on groups that have been operative for the longest time
What is the goal of market research?
A) To identify stakeholders and how to best meet their needs
B) To gain goodwill with consumers by utilizing public relations
C) To increase competitiveness by clarifying relationships that affect the marketing
decisions
D) To conduct studies on customer responses to the marketing mix
E) To determine which research method will deliver the most effective results
What is an employee’s duty to perform an assigned task?
A) Delegation
B) Authority
C) Responsibility
D) Accountability
E) Specialization
Who is responsible for ensuring the accounting information system provides the reports
and statements needed for management planning and decision making?
A) Auditors
B) Controller
C) Fraud examiners
D) Managerial accountant
E) Bookkeepers
Which of the following federal laws made transactions between banks significantly
more efficient?
A) The Check Clearing for the 21st Century Act
B) The Bank Secrecy Act
C) The USA Patriot Act
D) The Federal Reserve Act
E) The Economic Emergency Recovery Act
Which of the following BEST describes depreciation?
A) The process of increasing the value of fixed assets over time
B) The process of deducting operating expenses from the value of fixed assets
C) The process of reducing the value of fixed assets over time
D) The process of distributing the cost of liabilities over time
E) The process of distributing the cost of intangible assets over time
What is the term for behavior that is related to doing a certain job?
A) Performance behavior
B) Interpersonal behavior
C) Disruptive behavior
D) Potential behavior
E) Assertive behavior
What is needed to gain a competitive advantage over competitors?
A) The ability to produce goods and services and sell those at a fixed profit
B) The ability to produce goods and services and sell those at a high profit
C) The ability to produce goods or services efficiently and at a reasonable profit
D) The ability to leverage the internet to sell in a global marketplace
E) The ability to have a unique good or service that cannot be easily duplicated by
competitors
What is the process for converting government enterprises into individually owned
firms known as?
A) Production allocation
B) Privatization
C) Entrepreneurship
D) Demand assessment
E) Profit maximization
Machine, woodworking, and dry cleaning shops typically use which type of layout?
A) Product
B) Custom-products
C) Same-steps
D) Hybrid
E) Make-to-stock
Which of the following statements BEST describes why an increase in the discount rate
often results in a decrease in the money supply?
A) An increase in the discount rate will lower the overall values of loans from the
Federal Reserve Banks to individual banks.
B) An increase in the discount rate will lower the overall values of loans from
individual banks to other financial institutions.
C) An increase in the discount rate will lower the overall number of banks issuing loans
to individuals.
D) An increase in the discount rate will lower the overall number of loans from the
Federal Reserve Banks to individual banks.
E) An increase in the discount rate will lower the overall number of loans from the
Federal Reserve Banks to individuals.
Which country in the Pacific Asia region has one of the world’s largest economies?
A) South Korea
B) China
C) Indonesia
D) Japan
E) Taiwan
Which of the following represents the fastest-growing segment of minority business
ownership?
A) African Americans
B) Asians
C) Hispanics
D) Pacific Islanders
E) Europeans
Which of the following terms refers to the amount of money that owners would receive
if they sold all of a company’s assets and paid all of its liabilities?
A) Asset
B) Owners’ equity
C) Inventory
D) Liability
E) Credit
What is the major drawback of accepting venture capital?
A) Sharing company control
B) Having to pay high interest rates
C) Limiting expansion
D) Facing a short repayment period
E) Having to write proposals
What are products that are created domestically and transported for sale abroad?
A) Dumped goods
B) Exports
C) Imports
D) Buy backs
E) Domestic goods
What type of firm helps online consumers gather and sort information about products
and helps in the sale of the products by presenting the information in an easy to
understand format?
A) Shopping agents
B) Drop shippers
C) Business-to-business brokers
D) Syndicated sellers
E) E-agents
Which of the following represents a popular form of direct-response retailing?
A) E-retailing
B) Specialty store retailing
C) Catalog showroom retailing
D) Mail-order retailing
E) Brokered retailing
Under which of the following circumstances would the Federal Reserve System want to
decrease the money supply by increasing the discount rate?
A) The economy is experiencing severe inflation, and market activity is very low, yet
the financial institutions have a great deal of M-1 resources at their disposal that they
are not investing.
B) The economy is experiencing severe inflation, and most financial institutions have
low M-1 resources at their disposal, yet there is a great deal of market activity.
C) The economy is experiencing severe deflation, and market activity is very low, yet
the financial institutions have a great deal of M-1 resources at their disposal that they
are not investing.
D) The economy is experiencing severe deflation, and most financial institutions have
low M-1 resources at their disposal, yet there is a great deal of market activity.
E) The economy is experiencing wild fluctuations, and most financial institutions have
low M-1 resources at their disposal.
Which of the following identifies international differences and diversity issues within
an organization?
A) Culture
B) Individualism
C) Collectivism
D) Diversity
E) Autocracy
What is the condition in an economic system in which the amount of money available
and the number of goods and services produced are growing at about the same rate?
A) Unemployment
B) Stability
C) Deflation
D) Inflation
E) Oversupply
When working to protect the environment, what type of pollution lowers air quality?
A) Noise
B) Land
C) Water
D) Air
E) Waste
What is first mover advantage?
A) The concept that the first in the market will make the most money
B) The concept that a firm who exploits an opportunity before others has an advantage
C) The concept that there is an advantage in leaving a market when it becomes flooded
D) The concept that large organizations cannot take advantage of an opportunity as
quickly as an entrepreneur
E) The concept that there is more risk being first, but also more reward, if successful
Which of the following terms refers to the interest level at which commercial banks
lend reserves to each other, usually overnight?
A) Discount rate
B) Key rate
C) Prime rate
D) Federal insurance premium
E) Reserve requirement
Which economic system emphasizes the private ownership of most factors of
production?
A) Socialism
B) Communism
C) Capitalism
D) Marxism
E) Federalism
Which of the following is a primary advantage for the consumer when using the
internet for shopping?
A) Objective customer reviews
B) Faster delivery
C) Elimination of added costs of wholesalers and retailers
D) Efficient use of corporate resources
E) Cost-oriented pricing
What is the first step in rational decision making?
A) Understanding who will make the decision
B) Recognizing that a decision is necessary
C) Identifying alternatives to the problem
D) Choosing an alternative
E) Implementing the alternative
Under which legal concept is it legal for a manager to discharge all her employees
without advance notice?
A) Quid pro quo
B) Affirmative action
C) Employment at will
D) Joint agreement
E) Arbitration
Where can an investor learn information about a firm’s proposed security offering and
the issuing company?
A) The Russell 2000 Index
B) The annual report
C) The prospectus
D) The SEC
E) The retained earnings statement
Which is an example of a modified work schedule?
A) Job sharing
B) Job redesign
C) Job rotation
D) Job enrichment
E) Job elimination
Which form of organization is used by most small to medium-sized firms?
A) Divisional
B) Functional
C) Matrix
D) International
E) Stratified
How does the EEOC define sexual harassment in the workplace?
A) A single off-color joke that makes a worker uncomfortable
B) Any unwelcomed sexual advances
C) Persistent sexual advances
D) Unwelcome sexual advances made only by members of the opposite sex
E) Behavior that is sexual in nature only when it is instigated by a supervisor
Describe how wages, salaries, incentives, and benefits programs help companies attract
and keep skilled workers.
Explain the principle of compound growth.
Discuss the advantages and disadvantages of partnerships.
For what types of organizations do forensic accountants work?
What is the difference between retail and industrial selling?
How can a local content law in Japan act as a barrier to a U.S.-based automobile
manufacturing company that is interested in setting up a branch office in Tokyo?
What is insider trading? Why would an investor engage in it?
Contrast Theory X and Theory Y.
Identify the four factors of production and their role in economic systems.
What are three basic levels of involvement available for a firm that decides to conduct
business internationally?
Discuss the role of a private accountant within large and small firms.
Explain the concept of mixed market economies and how they support pure planned
and pure market economies.
Describe the services provided by e-intermediaries.
Describe three ways to extend a product’s life as it nears the end of the maturity stage.
What is the difference between data and information?
How can price be best determined?
When are corporate bonds attractive to a firm?