When someone is able to act as both a leader and a manager, what type of power to they
possess that others often do not?
A) Legitimate power
B) Reward power
C) Referent power
D) Expert power
E) Coercive power
In a union contract, future wage increases are often tied to the Consumer Price Index
and provide for
A) economic strikes.
B) contract renegotiations.
C) wage reopener clauses.
D) pay tied to productivity.
E) cost of living adjustments.
Which of the following represents a pool of managed funds that provide retirement
income for members?
A) Insurance companies
B) Finance companies
C) Securities investment dealers
D) Nondeposit institutions
E) Pension funds
What type of investment offers low returns, but is insured by the U.S. government?
A) Common stock
B) Mutual funds
C) Exchange-traded funds
D) Treasury bills
E) Securities
A three year goal is considered to be what?
A) Long-term
B) Intermediate
C) Short-term
D) Objective
E) Problematic
Which of the following BEST describes a certified fraud examiner?
A) A specialized managerial accountant concerned with issues of fraud
B) A specialized certified public accountant concerned with issues of fraud
C) A specialized forensic accountant concerned with issues of fraud
D) An accounting agent for the Securities and Exchange Commission concerned with
issues of fraud
E) An accounting agent provided by the Sarbanes-Oxley Act of 2002 concerned with
issues of fraud
What is the process of designing specific jobs that need to be done and identifying the
people who will perform them called?
A) Departmentalization
B) Job specialization
C) Group tasks
D) Segmentation
E) Team cohesion
Why does a marketing strategy utilize the marketing mix, which includes product,
price, place, and promotion?
A) To control the organization’s resources to support marketing activities
B) To transfer goods or services to customers
C) To develop a clear strategy for planning and implementing marketing activities
D) To plan the organization’s marketing toward supporting the organization’s overall
mission
E) To satisfy customers in target markets
During the product life cycle, when do sales begin to climb and the product begin to
show profit?
A) Ascending
B) Mature
C) Initial
D) Growth
E) Accelerated
The use of formal committees, training, and codes of conduct help to ensure standards
of ________ within an organization.
A) Ethical compliance
B) Philanthropic giving
C) Organizational leadership
D) Social responsibility
E) Legal compliance
Which of the following is a person’s belief about the importance of an individual
compared to the importance of a group?
A) Social orientation
B) Power orientation
C) Uncertainty orientation
D) Goal orientation
E) Time orientation
Which of the following is NOT considered an international organizational structure?
A) Independent agents
B) Licensing arrangements
C) Foreign direct investments
D) Branch office
E) Exporters
What is the main cause of water pollution?
A) Acid rain
B) Landfill runoff
C) Chemical and waste dumping
D) Vehicle exhaust
E) Decomposition
Which of the following supports the belief that people are naturally lazy and must be
punished or rewarded to be made productive?
A) Hierarchy of human needs
B) Theory X
C) Theory Y
D) Two factor theory
E) Expectancy theory
China and India require that when foreign firms enter into joint ventures with local
firms, the local partners must have the controlling ownership stake. What is this an
example of?
A) Local content laws
B) Business practice laws
C) Fair trade agreements
D) Quotas
E) Subsidies
Which of the follow BEST defines those who assume the risk of business ownership?
A) Entrepreneurs
B) Customers
C) Corporate partners
D) The Small Business Administration
E) Banks
Which variable of SWOT analysis identifies changing consumer tastes, hostile takeover
offers, and new government regulations?
A) Threats
B) Opportunities
C) Strategies
D) Internal factors
E) Weaknesses
Banks offer a variety of services for customers, including banker’s acceptances. Which
type of service offered by a bank would include a banker’s acceptance option?
A) Pension services
B) International services
C) Financial advice
D) Electronic funds transfer
E) Automated teller machines
When a firm modifies a production process to limit the consumption of valuable
resources, what business practice are they engaging in?
A) Collusion
B) Consumerism
C) Green marketing
D) Recycling
E) Near zero status
Some employees have special knowledge about a future event an organization will
experience that will affect the value of stock. Using this knowledge to buy or sell stock
before the major event is called
A) prospectus violations.
B) market capitalization.
C) insider trading.
D) retaining earnings.
E) underwriting.
Who are the owners of a corporation?
A) Board of directors
B) Financial officers
C) Stockholders
D) Top managers
E) Entrepreneurs
What do most small business fail to estimate correctly, often resulting in the business
failing?
A) Price
B) Promotion
C) Product
D) Public relations
E) Place
What are the tangible and intangible qualities that a company builds into its products?
A) Features
B) Requirements
C) Benefits
D) Safety devices
E) Guarantees
Convenience stores utilize which kind of distribution?
A) Direct distribution
B) Retail distribution
C) Wholesale distribution
D) Distribution by agents
E) Distribution by brokers
Small businesses impact key aspects of the U.S. economy including
A) bank loans, and contributions to big business.
B) international trade and the service industry.
C) bank loans and innovation.
D) the service industry and job creation.
E) job creation and innovation.
In the global economy, how is the value of one currency determined when compared to
another?
A) World Bank rate
B) International monetary fund
C) Inflation rate
D) Exchange rate
E) Automated Clearing House network
Which of the following terms refers to the difference calculated by subtracting income
taxes from the operating income of an organization?
A) Gross revenue
B) Net income
C) Gross profit
D) Cash flow
E) Leverage
Which of the following describes an investor in a business who is liable for some of its
debt, but has no active role in its operation?
A) General partners
B) Unlimited partners
C) Master partners
D) Limited partners
E) Minority partners
What part of the marketing mix includes communicating information about products
and is the most visible component of the marketing mix?
A) Product
B) Promotion
C) Price
D) Place
E) Psychographics
Odd-even pricing falls under the category of which of the following?
A) Price fixing
B) Psychological pricing
C) Market pricing
D) Price lining
E) Price skimming