Granting the authority or power to make decisions is done through the process of
A) line authority.
B) committee.
C) delegation.
D) functional structure.
E) department authority.
While it’s invested, money grows by earning interest or yielding some other form of
return. What is this known as?
A) Compound growth
B) Dividend
C) Capital gains
D) Security
E) Diversity
Which of the following will allow one firm to use another firm’s brand name, operating
procedures or technology?
A) A foreign direct investment
B) A licensing arrangement
C) A branch office setup
D) A strategic alliance
E) An import-export relationship
The managerial role characterized by the ability to gather and disseminate
communications and areas of interest is referred to as
A) interpersonal.
B) resource allocator.
C) decisional.
D) disturbance handler.
E) informational.
What is a mortgage-backed security?
A) A bundled group of home mortgages
B) A bundled group of investments with AAA credit-ratings
C) A bundled group of bonds
D) A bundled group of stocks
E) A bundled group of loans made to risk assessment firms
Which of the following use an embedded computer chip that is programed with
electronic money for individual consumer purchases?
A) Smart cards
B) Blink cards
C) Debit cards
D) E-commerce cards
E) Credit cards
Reporting relationships within a company are indicated on an organization chart and
represent
A) organizational structure.
B) mission and strategy responsibility.
C) areas of specialization.
D) chain of command.
E) decision making responsibility.
What occurs when a neutral third party dictates a settlement between two sides that
have agreed to submit to outside judgment?
A) Mediation
B) Arbitration
C) Strikebreaker
D) Impasse
E) Picketing
Which of the following ratios evaluates management’s use of resources?
A) Short-term solvency ratio
B) Long-term solvency ratio
C) Activity ratio
D) Profitability ratio
E) Equity ratio
Which of the following is used to aid in decision making about training, raises, and
promotions?
A) Judgments
B) Evaluation of training
C) Vestibule training
D) On-the-job training
E) Performance appraisals
What area was the earliest research on leadership MOST concerned with?
A) Leadership behaviors
B) Leadership traits
C) Leadership situations
D) Leadership integrity
E) Leadership roles
What is a stock’s market value?
A) The current price of a share of stock in the stock market
B) The average price of one share of stock over the past year
C) The face value of a share of stock, set by the issuing company’s board of directors
D) The price of the stock plus the previous year’s dividend
E) The monthly average of a stock’s price over a year
What type of partner invests all funds in the organization but plays no role in its
management?
A) Limited partnership
B) General partner
C) Silent partner
D) Active partner
E) Master limited partnership
What is the general term for resources used by a business to produce a good or service
referred to as?
A) Labor
B) Human Resources
C) Human capital
D) Factors of production
E) Economic systems
What is the environment where a firm conducts business known as?
A) Global business environment
B) Economic environment
C) Domestic business environment
D) Technological environment
E) Political-legal environment
What is considered to be a significant disadvantage of owning a franchise?
A) Start-up costs
B) Operational guidelines
C) Difficulty obtaining loans
D) Double taxation
E) Competition
In what type of ownership is an owner liable for debt, but only based on how much they
invested?
A) Master limited partnership
B) Cooperative
C) Limited partnership
D) Corporation
E) General partnership
Companies with centralized authority systems typically require multiple layers of
management. What type of organizational structures are these companies utilizing?
A) Tall
B) Short
C) Flat
D) Broad
E) Compressed
What do ethical norms that ensure an action is consistent with what’s fair entail?
A) Caring
B) Morals
C) Justice
D) Social responsibility
E) Economic agents
Which term describes creating and maintaining the innovation and flexibility of a small
business environment within the confines of a large, bureaucratic structure?
A) Basic structuring
B) Process organization
C) Intrapreneuring
D) Extrapolating
E) Product innovation
Which of the following strategies is involved with penetration pricing?
A) Setting an initial low price to establish a new product in the market
B) Setting an initial low price to cover new product costs and still generate a profit
C) Setting a limited number of prices for certain categories or products
D) Setting an initial high price to establish a new product in the market
E) Setting an initial high price to cover new product costs and still generate a profit
Which of the following are responsible for production and quality control?
A) Information managers
B) Human resource managers
C) First-line managers
D) Operations managers
E) Marketing managers
Consumers often spend a great deal of time and money doing research to purchase a
specific service. These consumer products are referred to as
A) production services.
B) specialty services.
C) convenience services.
D) industrial services.
E) shopping services.
Which states the correct definition of individualism?
A) A greater focus on individual characteristics than on cultural characteristics
B) A greater focus on the individual than on the group
C) A greater focus on the individual within a group than on the individual without a
group
D) A greater focus on individuals who have been present for the longest time
E) A greater focus on individuals who are in leadership roles
What is a computer-based system that allows people to communicate simultaneously
from different locations via telephone, e-mail, or video?
A) Groupware
B) A data communication network
C) A management information system
D) Electronic conferencing
E) Hypertext
When a leader asks for employee’s suggestions and input in the decision making
process, what type of leadership style is being utilized?
A) Directive
B) Supportive
C) Participative
D) Achievement
E) Transformational
In which of the following is the customer part of the system during service delivery?
A) A high-contact system
B) A low-contact system
C) A customer system
D) A quality system
E) A utility system
Titles such as plant manager, operations manager, and division manager designate
which level of management?
A) First-line managers
B) Middle managers
C) Top managers
D) Supervisors
E) Technology managers
Which country is the world’s largest marketplace and most stable economy?
A) The United States
B) Canada
C) Germany
D) Japan
E) China
What type of system allows customers electronic access to a supplier’s delivery times,
increasing sales, profits, customer service, and loyalty?
A) Distribution channel
B) Intranet
C) Handbook
D) Extranet
E) Product availability
If a firm hides responsibility for wrongdoing, what type of stance are they taking
toward social responsibility?
A) Responsible
B) Obstructionist
C) Accommodative
D) Proactive
E) Moderate
Which of the following is the name for the overall flow of money into or out of a
country?
A) Exchange rate
B) Trade rate
C) Balance of exchange
D) Balance of payments
E) Balance of trade