What type of organizations are used to solicit money that then is distributed to political
candidates?
A) Lobbies
B) Government agencies
C) Stakeholders
D) Ethical compliance leaders
E) Political action committees
What is the most common and direct way to provide direct financial support when
taking a proactive stance to social responsibility?
A) Set up a foundation
B) Reduce prices
C) Make a donation with each purchase
D) Use the Internet to solicit donations
E) Follow all laws set forth by the government
Which of the following is a unique feature of a multinational corporation?
A) Owners have unlimited financial liability.
B) Owners are taxed like partners.
C) It is considered to be a partnership for tax purposes.
D) Stock is held by only a few people.
E) Stock is traded on the exchanges of several countries.
Which type of strategy emphasizes low overhead and inventory, and a limited
assortment of products to attract customers?
A) Flexibility
B) Quality
C) Low-cost
D) Dependability
E) Consistency
When developing the marketing mix, what is the basis for any successful marketing
strategy?
A) Customer needs and wants
B) Value packaging
C) Product mix offerings
D) Features and benefits
E) Offering the best product for the least amount of money
Why is it difficult to compare relative job growth for different-sized businesses?
A) Sourcing up-to-date employment figures is difficult.
B) Many small businesses experience rapid unreported growth.
C) Spheres of influence overlap between the small and big business sectors.
D) Staff size of small businesses tends to change faster than staff size of big businesses.
E) It is hard to determine the cutoff point at which a small business becomes a large
business.
What are the major categories within an income statement?
A) Operating costs and profits, investing costs and profits, and financing costs and
profits
B) Current revenue, long-term revenue, and net revenue
C) Revenue, sales, and income
D) Assets, liabilities, and owners’ equity
E) Revenues, cost of revenues, operating expenses, and net income
What is the common currency for nations who are members of the European Union?
A) Deutsche Mark
B) Euro
C) Dollar
D) Lira
E) Franc
Which type of system is designed for smooth production flow to avoid inefficiencies,
eliminate unnecessary inventories, and continuously improve production processes?
A) Quality system
B) Lean system
C) Managed system
D) Production system
E) Flexible system
Most institutional investors are large investors, who purchase shares of an organization
through
A) employee stock ownership plans.
B) spin offs.
C) strategic alliances.
D) joint ventures.
E) mutual funds.
Who is responsible for developing and gaining support for global accounting standards
and gaining support and cooperation to implement those standards?
A) Securities and Exchange Commission
B) Sarbanes-Oxley
C) International Accounting Standards Board
D) Financial Accounting Standards Board
E) Institute of Management Accountants
What is likely the single MOST effective step that a company can take to set ethical
standards?
A) Offer large cash awards for whistle-blowing.
B) Suggest that employees take ethics training.
C) Post ethical rules on bulletin boards.
D) State that the workplace values diversity.
E) Demonstrate support from top management.
Which indicator refers to the total quantity of goods and services produced by an
economic system during a given period?
A) The business cycle
B) Aggregate output
C) Gross domestic product
D) The consumer price index
E) Gross national product
Which part of the management of an organization would be MOST involved with
strategic leadership?
A) The top level of management
B) The supervisory level of management
C) The advisory level of management
D) The auxiliary level of management
E) All levels of management
Which of the following transactions are NOT included among Automated Clearing
House payments?
A) ATM deposits
B) Business-to-business electronic payments
C) Checks
D) Internet-initiated debit card payments
E) Local tax payments
Those cultures that place a higher value on social relationship, quality of life, and
concern for others instead of money and assertiveness have which type of orientation
behavior?
A) Uncertainty avoidance
B) Aggressive goal
C) Time
D) Passive goal
E) Power tolerance
Which motivational theory focuses on social comparisons as a motivator?
A) Equity theory
B) Expectancy theory
C) Maslow’s hierarchy of needs
D) Hygiene factors
E) Herzberg’s two-factor theory
What type of analysis focuses on external factors?
A) Organizational analysis
B) Governmental analysis
C) Environmental analysis
D) Functional analysis
E) Financial analysis
Which of the following BEST describes supply chain management?
A) The principle of improving the supply chain by focusing on the slowest step in the
chain
B) A limitation on the number of suppliers allowed to supply a particular company
C) Complete movement of raw materials throughout a manufacturing or service facility
D) A cost-reduction program in which wholesalers and retailers are eliminated in an
effort to entice consumers to purchase directly from manufacturers
E) The principle of looking at the supply chain as a whole in order to improve the
overall flow through the system
Which of the following structures relies on product departmentalization?
A) Matrix
B) Functional
C) Divisional
D) International
E) Regional
Which of the following BEST describes the purpose of point-of-sale displays?
A) To inform customers about the benefits of the products
B) To entice customers to buy additional products
C) To make it easier for customers to find products
D) To promote the reputation of the company offering certain products
E) To target specific messages about the product to customers
Which of the following BEST describes a firewall?
A) A software and hardware system that prevents outsiders from accessing a company’s
internal network
B) A tool that searches Web pages containing the user’s search terms and then displays
pages that match
C) A private network of internal Web sites and other sources of information available to
a company’s employees
D) An Internet connection allowing outsiders limited access to a firm’s internal
information system
E) An extranet site that gives customers access to different product lines
What is the study of the decision process by which customers come to purchase and
consume products?
A) Marketing
B) Segmentation
C) Resource management
D) Consumer behavior
E) Acculturation
Which of the following organizational systems is the part that can be seen and
represented in chart form?
A) Networking
B) Formal organization
C) Informal organization
D) Grapevine
E) Intrapreneuring
Which of the following is an advantage of using viral marketing and social networking?
A) Marketers can reach a wider audience at a lower cost.
B) Consumers can post opinions and feedback about products.
C) New markets are easier to identify.
D) Companies have more control over what the public experiences.
E) Companies can respond to and eliminate negative reviews.
Which of the following is a summary of price trends in a specific industry and/or the
stock market as a whole?
A) Investment index
B) Average index
C) Market indicator
D) Market index
E) Prospectus
What is profit?
A) Total money taken in by a corporation
B) Increases in income from year to year
C) Increases in a corporation’s stock price
D) Revenue generated by goods and services
E) Difference between revenues and expenses
Leadership researchers in the late 1940s believed that leaders should engage in which of
the following behaviors?
A) Mostly employee-focused leader behavior
B) Mostly task-focused leader behavior
C) Both employee-focused leader behavior and task-focused leader behavior in equal
amounts
D) A variable mixture of employee-focused leader behavior and task-focused behavior
depending on the task
E) A variable mixture of employee-focused leader behavior and task-focused behavior
depending on the employees
What is the purpose of a skills inventory?
A) To plan and identify people for transfer or promotion
B) To list key managerial positions
C) To describe the specifications for a job
D) To assess trends in previous human resource usage
E) To hire people from outside the organization
Which type of plan intentionally seeks out employees from underrepresented groups
within the organization?
A) Civil Rights
B) Adverse impact
C) Employment at will
D) Patriot Act
E) Affirmative action
What is the next step in the product development process when test marketing is
positive for a product?
A) Prototype development
B) Business analysis
C) Concept testing
D) Commercialization
E) Product diversification
Which of the following types of payments are usually received by an exporter as an
ongoing payment calculated as a percentage of the license holder’s sales?
A) Flat fees
B) Royalties
C) Agent fees
D) Subsidies
E) Direct investments
What type of system aids in the decision-making process by creating virtual business
models and then test them with data?
A) Computer-aided design
B) Information linkages
C) Computer-aided manufacturing
D) Decision support systems
E) Knowledge software