What is the first step in becoming an entrepreneur?
A) Deciding to proceed
B) Formulating a business plan
C) Identifying distinctive competencies
D) Searching for capital to invest
E) Implementing plans and opening
How a piece of data that has been tested for security travels is determined by which
tool?
A) Firewall
B) Router
C) Access tests
D) Encryption system
E) Spy sweeper
What tactic could a unionized employee take to show why they are striking against an
employer?
A) Picketing
B) Boycotting
C) Work slowdowns
D) Mediation
E) Lockouts
What is the result of a person behaving in a way that is inconsistent with their attitudes?
A) Affect
B) Lapsed morale
C) Increased satisfaction
D) Cognitive dissonance
E) Impairment
What is the term for a file that attaches itself to a program, then moves from computer
to computer within a networked system, with the intention of contaminating files?
A) Spam
B) Trojan horse
C) Hack
D) Worm
E) Spyware
What is the term used to describe a market condition where buyers are able to satisfy
the demand of the consumer, yet have some product remain unsold?
A) Surplus
B) Stoppage
C) Shortage
D) Demand deficit
E) Equilibrium price
Investments such as money market mutual funds offer what advantage to investors?
A) Conservative capital growth
B) Long-term capital growth
C) Market appreciation
D) Aggressive growth
E) Safety and stability
When an employee sees themselves as a member of the team and can easily identify
with the organization’s mission, what is the result?
A) Organizational commitment
B) Psychological contracts
C) Cognitive dissonance
D) Intention
E) Cognition
Which of the following is a form of direct-response retailing?
A) Online
B) Mail order
C) Promotion
D) Department stores
E) Wholesale clubs
What is the term for something that is produced by the mind, such as a new invention,
that has commercial value?
A) Identity-based property
B) Decision support systems
C) Knowledge information systems
D) Management information systems
E) Intellectual property
In some South American countries, it is sometimes legal to bribe other businesses and
government officials, while this practice is illegal in the United States. Which of the
following refers to this type of policy?
A) Protectionism
B) Business practice laws
C) Free trade agreements
D) Fair trade agreements
E) Local content laws
What do manufacturers use to design and control equipment?
A) Computer-aided design
B) Information linkages
C) Computer-aided manufacturing
D) Decision support systems
E) Knowledge software
Which of the following statements BEST explains how financial institutions create
money?
A) By opening new checking accounts and giving more people access to readily
available cash, financial institutions expand the money supply.
B) By issuing money through government contracts, financial institutions expand the
money supply.
C) By taking deposits and loaning out these funds, financial institutions expand the
money supply.
D) By paying interest on its accounts and investments, financial institutions expand the
money supply.
E) By giving interest from its accounts to its clients, financial institutions expand the
money supply.
Why would a company use a bundling strategy when selling goods or services?
A) To decrease packaging costs
B) To increase the sale of bundled items
C) To introduce a new product to the market
D) To offer all products at a limited range of prices
E) To take advantage of psychological pricing
Which would an employee who is productive but refuses to help others or the
organization be lacking in?
A) Organizational citizenship
B) Workplace aggression
C) Performance behavior
D) Personal productivity
E) Self-esteem
If an employee feels they have the skills and ability needed to perform a task well, they
are better able to focus their attention on performance because of their high degree of
A) self-esteem.
B) locus of control.
C) risk propensity.
D) self-efficacy.
E) cognitive dissonance.
What is the practice of selling products in a foreign market for less than in its home
country?
A) Countervailing duties
B) Skimming
C) Odd-even pricing
D) Dumping
E) Price lining
Some employers provide employees with a fixed dollar amount for benefits, allowing
employees to choose between various health insurance, life insurance, disability
insurance, and educational benefits. What is the name of this plan?
A) Gainsharing
B) Profit-sharing
C) Cafeteria benefits
D) Equal employment
E) Retention benefits
When the value of a currency is strong in the international market, what happens to
trade?
A) Trade increases because the cost of the item is more affordable in the international
market.
B) Trade decreases because the cost of the item is more expensive in the international
market.
C) Trade increases because sales decrease, creating a more competitive market.
D) Trade decreases because the manufacturers limit production of the item.
E) Trade increases with a slower revenue growth.
Which of the following supports the idea that the prices of similar products in different
countries should be about the same?
A) Standard of living
B) Real growth rate
C) Purchasing power parity
D) Trade deficit
E) Balance of trade
Which of the following reasons is the primary motivator for a commercial bank to
acquire new depositors?
A) A new deposit account will make more funds available to pay the interest on other
deposit accounts.
B) A new deposit account will make more funds available to pay the bank’s employees.
C) A new deposit account will make more funds available to give out in loans.
D) A new deposit account will make more funds available to give out in dividends to its
investors.
E) A new deposit account will make more funds available to facilitate brokerage
transactions.
The sales price of a product is given as the product’s cost to the seller plus which of the
following quantities?
A) Breakeven price
B) Revenues
C) Variable price
D) Fixed point
E) Markup
Which of the following terms represents a promise by the bank to pay a firm on behalf
of another firm, if specified conditions are met?
A) Banker’s acceptance
B) Bank trust service
C) Certified check
D) Letter of credit
E) Currency exchange agreement
What is the point at which the supply curve and the demand curve intersect on a graph?
A) Equilibrium price
B) Decision point
C) Surplus price
D) Perfect price
E) Parity point
A manager is expected to serve in what interpersonal capacity when coordinating
people, groups, and organizations?
A) Figurehead
B) Spokesperson
C) Leader
D) Negotiator
E) Liaison
Which term refers to a labor action in which employees temporarily walk off the job
and refuse to work?
A) Strike
B) Lockout
C) Boycott
D) Mediation
E) Bargaining
What type of users would download spyware?
A) Users seeking to prevent viruses from attacking
B) Users who are unaware that their computer activities will be monitored
C) Users who wish to prevent spam from entering their computer
D) Users who want easy access to their coworkers’ files
E) Users who are keen to share documents
Which term refers to the strategy of paying suppliers and distributors to perform certain
business processes or to provide needed materials or services?
A) Outsourcing
B) Reengineering
C) Controlling
D) Scheduling
E) Warehousing
How can an organization determine if training has been successful?
A) Have employees fill out a survey on how well they liked the training.
B) Track how much time employees spent at the training program.
C) Monitor the waiting list for the training program.
D) Test job performance both before and after training has been complete.
E) Measure job performance after training has been completed.
What is the MOST important source of money for new business start-ups?
A) Banks
B) The SBA
C) Personal resources
D) Government grants
E) Venture capital
Which of the following denotes small retail stores carrying only one product line or
category of related products?
A) Department stores
B) Bargain retailers
C) Supermarkets
D) Convenience stores
E) Specialty stores
Which of the following statements BEST describes the assumptions made by
researchers of the behavioral approach to leadership?
A) Behaviors of effective leaders differ in various situations.
B) Behaviors of effective leaders are the same in all situations.
C) Behaviors of effective leaders reflect the proper traits for effective leadership.
D) Behaviors of effective leaders differ as reflected by different traits for effective
leadership.
E) Behaviors of effective leaders reflect the proper disposition for effective leadership.
Which of the following terms refers to the examination of a company’s accounting
system to determine whether its financial reports fairly represent its operations?
A) Company-wide analysis
B) Forensic accounting
C) Portfolio analysis
D) Audit
E) Preliminary investigation
What is the result when a country can produce goods more efficiently or better than
other nations?
A) Balance of trade deficit
B) Absolute advantage
C) Increased globalization
D) Comparative advantage
E) National competitive advantage