Transportation costs have relatively little impact on a domestic firm’s decision to go
international when compared to other possible factors.
In terms of a psychological contract, inducements represent what employees will
contribute to an organization.
The functional organizational structure is the approach to organizational structure used
by most small to medium-sized firms.
Balancing anxiety, fear, and anger so they do not overly interfere with getting things
accomplished is a part of emotional intelligence.
The Federal Deposit Insurance Corporation is the government agency that regulates
American banks.
The product life cycle describes the commercial life of services as well as goods.
When people feel they are being inequitably treated, they are likely to ask for raises,
increase their efforts, and work longer hours.
Consumers will often spend a great deal of time and money to find a specialty good and
will generally not accept a substitute.
An exchange-traded fund (ETF) is a bundle of stocks (or bonds) that are in an index
that tracks the overall movement of a market.
Japanese companies adapted the concept of quality circles from quality improvement
teams used by U.S. companies.
In the United States, there are increased expectations for a greater social role for
business.
Personality includes personal attributes that vary from one person to another.
Shopping agents allow consumers to purchase products directly from their site.
Product differentiation is selecting the best price at which to sell a product.
Small businesses must answer many of the same social responsibility questions as big
businesses.
Firms that make only tangible products are engaged in goods production.
Promotion refers to the process of establishing an easily identifiable product image in
the minds of consumers.
The breakeven point is the price at which a company earns the maximum profits.
When making a decision, finding multiple acceptable alternatives may be possible;
however, selecting just one and rejecting all others is critical.
Time utility is created by a sales agreement that stipulates where products will be
delivered to customers.
Marketing research is the study of behavioral variables.
Shopping agents (e-agents) help people shop from factory outlet stores.
When a sales manager compares actual sales to the quarterly sales quota, he or she is
performing the controlling function of management.
Even free market economies often establish some system of quotas and/or tariffs.
Corporations generate sales revenues proportionate to their number as compared to
other forms of ownership.
Virtual leadership refers to the role of leaders in a team environment.
Talent management reflects the organization’s investment in attracting and motivating
an effective workforce.
Physical resources include the data and other information used by businesses.
The application of electronic technologies for searching, sifting, and reorganizing pools
of data to uncover useful information is called data warehousing.
Employees’ abilities and the supervisor’s managerial skills help determine whether span
of control is wide or narrow.
The behavioral approach to the study of leadership emphasized the actions taken by an
effective leader rather than any specific traits.
One of the four elements that are necessary for private enterprise to be carried out is
reasonable prices.
The United States has large trade deficits with Japan, China, and Mexico. This means
that the United States has imported more from them than what they have purchased
from us.
Intermediaries can expedite the delivery of products, but otherwise add no additional
value to a distributional system.
Few studies have successfully assessed the meaning and impact of charismatic
leadership.
Leaders at the now defunct energy company Enron were recognized as having
demonstrated exemplarily high ethical leadership.
Organization charts are graphical representations of employee salary information.
Individual retirement accounts can be opened only by self-employed people such as
doctors, small business owners, and consultants.
Stocks are known as securities because they represent a secured interest in a company.
Who most often needs information in order to conduct technical projects?
A) Middle managers
B) Members of the board of directors
C) Top-level managers
D) Knowledge workers
E) Network administrators
What is the term that reflects the extent of one’s self awareness and ability to manage
emotions?
A) Emotional intelligence
B) Personality
C) Introversion
D) Openness
E) Emotionality
What is the term for the process of creating, communicating, and delivering value to
customers while managing customer relationships in ways that benefit the organization
and its stakeholders?
A) Financial planning
B) Controlling
C) Operations management
D) Marketing
E) Demographic profiling
Which form of business ownership generates the MOST sales in the United States?
A) Sole proprietorship
B) General partnership
C) Cooperative
D) Corporation
E) Limited partnership
Which approach to leadership only considers subordinate participation in decision
making, yet does not address other aspects of leadership?
A) Decision tree
B) Leader-member exchange
C) Transformational
D) Path-glory
E) Directive leader
Which type of communication technology is attractive to businesses because it
eliminates travel expenses by allowing simultaneous communication globally?
A) VSAT satellite communications
B) Extranets
C) Intranets
D) Electronic conferencing
E) Client-server networks
The management of assets or investments offered by a commercial bank on behalf of an
individual can be conducted by a bank through
A) trust services.
B) letters of credit.
C) banker’s acceptance notes.
D) individual retirement accounts.
E) securities investments deals.
Family members and friends can have a strong impact on consumer choices when
acting as
A) psychological influences.
B) personal influences.
C) social influences.
D) loyalty influences.
E) cultural influences.
Which of the following pieces of legislation made it easier to sue an employer for
discrimination, but limited how much could be awarded in damages?
A) Equal Employment Opportunity Act of 1972
B) Civil Rights Act of 1991
C) Equal Pay Act of 1963
D) Title VII of the Civil Rights Act of 1964
E) Fair Labor Standards Act
Which of the following financial institutions earn profits from loans taken from the
funds in each of its depositors’ accounts?
A) Securities investment firms
B) Pension funds
C) Credit unions
D) Commercial banks
E) Mutual savings banks
How can virtual leaders ensure effective communication with remote workers?
A) Develop a strong one-way process for communication.
B) Limit active listening.
C) Use multiple channels to communicate.
D) Minimize the use of structured work-related events.
E) Allow each remote employee to establish ground rules for getting work done.
A manager wants to motivate the maintenance staff to be more productive. She starts by
providing training and assures employees that high productivity will be rewarded.
Employees are asked to identify the rewards that would mean the most to them. The
manager likely subscribes to which theory of motivation?
A) Equity
B) Expectancy
C) Two-factor
D) Hierarchy of needs
E) Productivity
Which organization was developed to promote economic and cultural cooperation
among Asian countries?
A) ASEAN
B) UAS
C) EU
D) NAFTA
E) ECOWAS
Which of the following indicates an understanding of the skills employees hold and
how to best use those skills for the success of the organization?
A) Job analysis
B) Talent management
C) Skills inventory
D) Adverse impact
E) Human capital
What is the term that describes what happens after the sale to ensure consumers buy the
product again?
A) Postpurchase evaluation
B) Prepurchase evaluation
C) Rational motives
D) Emotional motives
E) Evoked set
When an employee can perform well without a leader, what is indicated?
A) Presence of a rigid reward system
B) Presence of a leadership neutralizer
C) Presence of a leadership substitute
D) Presence of a leadership incentive
E) Presence of a highly automated system
Why do firms want to prevent hackers from stealing intellectual property?
A) Crooks may create unauthorized duplications.
B) Rights are no longer protected.
C) Ownership becomes unclear.
D) Commercial value is diminished.
E) The intellectual property can no longer be trademarked.
What is the proportion of investments in each investment alternative referred to as?
A) Portfolio
B) Dividend yield
C) Asset allocation
D) Risk-reward relationship
E) Diversification
Who is charged with enforcing the provisions outlined in Title VII?
A) Supreme Court
B) ERISA
C) OSHA
D) EEOC
E) NLRB
Using symbols and names to communicate the qualities of a product is a function of
what?
A) Awareness
B) Reintroduction
C) Product adaptation
D) Product extension
E) Branding
When conducting a SWOT analysis of an organization, which question can help
management brainstorm for the opportunities 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 of the following is the most frequently used method of setting performance goals
to motivate behavior?
A) Social learning
B) Participative management
C) Management by objectives
D) Job enrichment
E) Positive reinforcement
Which of the following describes two of the primary objectives of promotion?
A) Positioning and communicating information
B) Positioning and developing new uses for products
C) Developing new uses for products and communicating information
D) Adding value to a product and eliminating competition
E) Controlling sales volume and eliminating competition
Which of the following describes one of the primary concerns associated with
charismatic leadership due to severe devotion to a particular leader?
A) The potential lapse of ethical practices
B) The potential inability to replace leadership efficiently
C) The potential encouragement of micromanaging
D) The potential stagnation of corporate vision
E) The potential creation of bureaucracy
Which of the following helps explain why some people do not work as hard as they can
when their salaries are based purely on seniority?
A) Two-factor theory
B) Maslow’s hierarchy of human needs
C) Scientific management
D) Expectancy theory
E) Theory X and Theory Y
What is the advantage of promoting from within when filling an opening within the
organization?
A) Less need for a realistic job preview
B) Increased influx of high quality employees
C) Increased employee morale
D) Reduced turnover
E) Increased diversity of employees
Which of the following types of firms design, produce, and manufacture products in
many nations?
A) Multinational firms
B) Importing firms
C) Domestic firms
D) International firms
E) Exporting firms
When an entrepreneur has the goals of growth and expansion, with the vision of turning
the business into a large business, what term is used when referring to the business?
A) Visionary
B) Small Business
C) Diversification
D) Start-up
E) Expansionist
Which approach to leadership is based on the assumption that appropriate behavior
varies from one situation to another?
A) Situational leadership
B) Trait-based leadership
C) Transformational leadership
D) Transactional leadership
E) Charismatic leadership
The Age Discrimination in Employment Act requires passive nondiscrimination. How
do employers practice passive nondiscrimination?
A) By seeking employees who are protected by the act
B) By seeking minorities who are protected by the act
C) By providing special treatment to women and minorities
D) By treating all who apply fairly
E) By increasing salaries for workers covered by the Act
What does a planned economy rely on a centralized government to do?
A) Support free enterprise in every way possible
B) Allocate all or most factors of production
C) Encourage citizens to buy shares of stock in small companies
D) Keep its control activities to a minimum
E) Direct workers to start their own small businesses
What type of selling should be used if a buyer is unaware they need or want a product,
and the product is high-priced?
A) Industrial selling
B) Missionary selling
C) Creative selling
D) Personal selling
E) Retail selling
What government agency has the responsibility to handle investor-related issues?
A) SEC
B) Department of Labor
C) FTC
D) Environmental Protection Agency
E) EEOC
What type of societies tend to prefer reward systems that link pay with performance of
individual employees?
A) Collectivist
B) Power respect
C) Power tolerance
D) Uncertainty avoidance
E) Individualistic
What types of firms lend to businesses needing capital or long-term funds?
A) Insurance companies
B) Pension and trust services
C) Finance companies
D) Pension funds
E) Securities investment dealers
Because international organizational structures have emerged in response to the need to
manufacture, purchase, and sell in global markets; how do some companies adopt a
truly global structure?
Explain the difference between labor relations and a labor union.
What is an operations capability?
Why would one expect a product sold at a specialty store to cost more than the same
product at a department store?
Explain the difference between demographic variables and psychographic variables.
What is the difference between responsibility and authority?
Describe the steps involved in the rational decision-making process.
Describe the current trends in labor-management relations in the United States.
What is informal organization and how does it relate to the formal structure?
Identify the IT resources businesses have at their disposal and how these resources are
used.
Describe the difference between the make-to-order and make-to-stock production
processes.
Describe the three-step model for applying ethical judgments.
What are three common constraints limiting the development of alternatives in the
rational decision-making process?
A union can picket, boycott, or use a work slowdown to support strike efforts. Why
would the union choose one of these over the other?
Give three examples of management advisory services.
Discuss the differences between absolute advantage and comparative advantage.