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Dumping ________.
A) involves selling a product at a price lower than the cost of production
B) is a strategy used by firms to enter an industrialized nation
C) refers to the practice of selling products in small quantities
D) is a strategy used by organizations to enter a developed market
E) is typically prevented by providing export subsidies to local producers
The economic system of the U.S. is such that individuals own and operate the majority
of businesses with limited economic intervention by the government. This is
characteristic of a ________ economy.
A) mixed
B) planned
C) capitalist
D) free-market
E) communist
________ is the spirit of innovation, the initiative, and the willingness to take the risks
involved in creating and operating businesses.
A) Capitalization
B) Socialization
C) Merchandizing
D) Automation
E) Entrepreneurship
Margin trading occurs when a ________.
A) buyer pays the broker immediately after buying a stock
B) broker does not charge brokerage fee for a transaction
C) buyer pays the broker before placing an order
D) broker gives volume discounts to a good buyer
E) buyer borrows money from the broker to buy stock
With most bond issues, a corporation retains the right to pay off the bonds before
maturity. Such bonds are called ________.
A) secured bonds
B) fixed bonds
C) debentures
D) callable bonds
E) convertible bonds
Merchant wholesalers that sell products to organizational customers for internal
operations or the production of other goods, rather than to retailers for resale, are called
________.
A) manufacturers' representatives
B) drop shippers
C) rack jobbers
D) distributors
E) system integrators
Leverage ratios indicate ________.
A) how well a company is making use of its assets
B) a firm's ability to pay its short-term debts
C) how well a company is making use of its investments
D) a firm's ability to pay its long-term obligations
E) a firm's ability to meet short-term obligations
Which of the following statements is TRUE of a brand extension strategy?
A) Brand extension cuts the costs and risks of introducing new products.
B) It is used by firms that have a weak brand name.
C) It is a strategy used by start-up firms.
D) It refers to developing items to fill gaps in the market.
E) Brand extension refers to creating variations of a product.
________ refers to the creation of a unique good or service for each customer.
A) Mass production
B) Batch production
C) Customized production
D) Mass customization
E) Standard production
________ refers to the acquisition of the raw materials, parts, components, supplies,
and finished products required to produce goods and services.
A) Procurement
B) Logistics
C) Operation
D) Finishing
E) Inventorying
PopArt, an American manufacturer of music and pop culture-related clothing and
accessories, sells its products to selected retail stores, who then resell them to
consumers. However, the firm finds that the retail stores do not market their products
effectively. PopArt begins to market its products directly to the consumers to have
greater control over pricing, promotion, service, and delivery of their products. Thus the
firm replaces the retailers. This exemplifies ________.
A) decentralization
B) disintermediation
C) centralization
D) diversification
E) the wheel of retailing
________ is an accounting method in which revenue is recorded when payment is
received and expense is recorded when money is paid.
A) Accrual basis
B) Profit basis
C) Cash basis
D) Depreciation
E) Deferral basis
A group of college graduates starts a business. They want to give their business a
structure such that their risk is limited to the amount they have invested in the business.
They also want to avoid double taxation of the income that they generate from the
business. Which of the following structures is most suitable to satisfy these wants?
A) sole proprietorship
B) corporation
C) direct partnership
D) S corporation
E) general partnership
________ is defined as meeting the needs of the present without compromising the
ability of future generations to meet their own needs.
A) Greenwashing
B) Consumerism
C) Materialism
D) Sustainable development
E) Cap and trade
CTM Manufacturers, a firm that manufactures luxury cars, offers its products in only
one outlet in each market area. The car dealers are carefully chosen by the firm and
monitored to ensure that CTM cars are properly merchandised. The firm chooses the
optimum number of outlets carefully to balance cost and market coverage. CTM
Manufacturers uses which of the following market coverage strategies?
A) selective distribution
B) exclusive distribution
C) intensive distribution
D) disintermediation
E) multichannel retailing
________ refers to developing items to fill gaps in the market that have been
overlooked by competitors or have emerged as consumer tastes and needs shift.
A) Brand extension
B) Line filling
C) Brand stretching
D) Line extension
E) Line stretching
Which of the following refers to people and their individual talents and capacities?
A) natural resources
B) knowledge
C) capital investments
D) human resources
E) entrepreneurship
Creative Solutions, a Chicago based advertising agency, allows its team of copywriters
to control the pace of work and determination of work assignments. The team is
comprised only of copywriters, and team members have the freedom to make their own
decisions. The firm has a strong policy against work-from-home. This is an example of
which of the following forms of teams?
A) cross-functional team
B) virtual team
C) command team
D) horizontal team
E) self-managed team
One of the general characteristics of a small business is that it typically sells fewer
products ________.
A) to a larger customer base
B) to fewer market segments
C) to foreign companies
D) at lower costs to government agencies
E) at higher costs
Small businesses employ about ________ of the private-sector workforce and create
roughly ________ of all new jobs.
A) one-third; one-fifth
B) half; two-thirds
C) one-fourth; half
D) two-thirds; half
E) one-third; two-thirds
If a union is certified, the employer is then required to negotiate with the union for at
least a period of ________.
A) six months
B) five years
C) one year
D) three years
E) three months
________ refers to a view of business that considers the many decisions that must be
made and the potential problems that must be overcome before the organization can
deliver its products or services.
A) Business mindset
B) Service orientation
C) Free-market philosophy
D) Competitive advantage
E) Business model
Compare and contrast discount stores with off-price retailers?
Compare and contrast mass production, customized production, and mass
customization.
Compare and contrast viral marketing with conversation marketing.
Compare and contrast the workforce implications of the Baby Boomers generation with
those of the Generation X.
Compare and contrast cap and trade programs and sustainable development.
