The least common type of partnership is the general partnership.
A manager working in the United States will typically see a high level of collectivism
among workers.
Leadership neutralizers tend to outweigh a leader’s ability to affect a subordinate’s
performance.
In a market economy, there is a centralized government that controls factors of
production and decision making.
Packaging can serve as an in-store advertisement that makes the product attractive,
displays the brand name, and identifies features and benefits.
An overly large decrease in the reserve requirement by the Federal Reserve System
could result in inflation.
Intellectual property is something produced by a computer that has personal value.
By turning raw materials into finished goods, production creates form utility.
The product mix includes consideration of product, pricing, place, and promotion.
The only goal of determining prices is to maximize profit for the firm.
Mass-customization tends to reduce the volume in which companies produce.
The SPAM Act of 2003 is designed to strengthen identity-theft protection.
One of the purposes of ethics in accounting is to maintain public confidence in business
institutions, financial markets, and the products and services of the accounting
profession.
The two-factor theory examines the relationship between effort and performance.
Loans are the most important sources of money for new businesses.
The overall value of the U.S. M-2 has grown considerably since 1979 due primarily to
the increased use of credit cards and debit cards.
In the screening stage of product development, companies use market research to get
consumers input about benefits and prices.
Lending institutions are more likely to help finance the purchase of an existing business
rather than the start-up of a business from scratch.
Mutual funds are traded in securities markets.
Computer-aided design (CAD) can increase the productivity of knowledge workers.
Replacement charts can be used to forecast the external supply of candidates for senior
managerial positions in the organization.
Long-term goals are derived directly from a firm’s mission statement.
Firms with production, marketing, human resource, and finance departments have a
process form of organization.
One pitfall with VSAT satellite communications is that they tend to lack privacy.
Because supply chain strategy is based on the collective effort of a number of firms, no
one firm in the chain gains a competitive advantage.
When selecting someone to hire, the first step in selection is usually asking the
candidate to take a test.
Male leaders tend to be no more task-focused than female leaders.
The investment industry categorizes firms according to size of capitalization.
A whistle-blower is an outsider who reports publicly on the wrongdoings of companies.
Electronic conferencing is popular because it reduces travel expenses and saves money.
Sears’ Craftsman Tools is an example of a private brand.
When a new bond is issued, when does the bond’s par value have to be repaid?
A) When the company files for bankruptcy
B) Before the company goes into default
C) On the maturity date
D) On the issue date
E) When the company makes enough profit to cover the value of the bond
How can marketers best develop product promotion in a new, international market?
A) Centered on product usage
B) Centered on price and innovation
C) Centered on cultural values and local customs
D) Centered on using a “hard-sell” campaign
E) Centered on home country values and customs
A leader who sets levels of expectation, then gives direction and guidance and
determines work schedules uses what type of leadership theory?
A) Transformational
B) Directive
C) Supportive
D) Participative
E) Achievement-oriented
In order for a virus to spread from computer to computer, what must it always attach
itself to first?
A) All available computer memory
B) A worm
C) A router
D) A piece of hardware
E) A program
Why are credit cards excluded from the measure of the nation’s money supply?
A) Because debt continues to accrue as the credit card is used
B) Because money is not moved until the debt is paid
C) Because there are few spending controls on credit cards
D) Because credit cards represent a convenience, not a service
E) Because only the interest paid on the credit card is considered liquid money
New stocks and bonds are sold in what market?
A) Private placement market
B) Secondary market
C) Primary market
D) Tertiary market
E) Open market
Which Act established the National Labor Relations Board?
A) Taft-Hartley Act
B) Patriot Act
C) Labor-Management Relations Act
D) Occupational Safety and Health Act
E) National Labor Relations Act
Which of the following is the difference between revenues and the cost of revenues?
A) Net income
B) Gross profit
C) Accounts payable
D) Interest expense
E) Cash flow
What happens when companies extend their horizons and identify opportunities outside
existing product lines?
A) Disconnected product lines
B) Multiple product lines
C) Uniform product lines
D) Universal product lines
E) Tailored product lines
What process is used by marketers to communicate the nature of a product to a target
segment?
A) Product positioning
B) Target marketing
C) Promotion
D) Product differentiation
E) Personal influence
How do firms create benefits for themselves and their customers and effectively use
resources such as knowledge, physical materials, equipment, and information?
A) By creating intangible goods and services
B) By instituting high-contact systems
C) By changing capacity planning based on customer needs
D) By utilizing operations management techniques
E) By creating a fixed-position production layout
Which is the BEST explanation for why standard of living only increases through
productivity?
A) The more goods that are available, the lower prices will be.
B) More goods are available without having to come by additional resources.
C) Productivity increases the money supply in an economy.
D) Purchasing power increases when there is more consumer choice.
E) Prices are determined by the standard of living.
What is the most common type of network used in businesses?
A) Intranet
B) Client-server
C) Extranet
D) Hotspot
E) Anti-virus
What is the practice of injecting water and chemicals into underground rock in order to
break the rock apart called?
A) Recycling
B) Toxic waste elimination
C) Fracking
D) Zero-landfill support
E) Repurposing
Which of the following helps producers distribute goods from sellers to customers?
A) Intermediaries
B) Sales agents
C) Wholesalers
D) Retailers
E) Brokers
Which of the following, if true, would BEST show that a manager’s strategy for
motivating his team is consistent with “Theory Y” about employee motivation?
A) The employees would need to see incentives as worth having for their own sake.
B) The employees would need to see their work as contributing to a success that they
share in.
C) The manager wants his team to feel rewards will increase as the quality of work is
increased.
D) The manager thinks that his team will not do their work well without added
incentives.
E) The manager thinks that incentives are needed in order to boost morale.
When a wholesaler or retailer develops a brand name and has the manufacturer place
that name on the product, what is that product name called?
A) National brand
B) Private brand
C) Luxury brand
D) Licensed brand
E) Manufacturer brand
What measure of the money supply is most often used by businesses and governments
for economic planning?
A) M-2
B) Currency
C) Demand deposits
D) Liquidity
E) M-1
What is the main reason why women start new businesses?
A) Need to earn more money
B) Preference for working alone
C) Opportunities for family members
D) Control in organizing their time
E) Desire to employ other women
How can an investor request the courts to enforce a bond’s terms of payment?
A) File for bankruptcy
B) Ask for an improved risk rating on the bond
C) File a bondholders’ claim
D) Have the bond converted to stock
E) Have the bond converted to a mortgage-backed security
Which of the following lists Maslow’s Hierarchy of Human Needs in order, starting
with the most basic?
A) Physiological, security, social, esteem, self-actualization
B) Social, security, physiological, esteem, self-actualization
C) Physiological, self-actualization, security, esteem, social
D) Physiological, esteem, security, social, self-actualization
E) Esteem, self-actualization, social, physiological, security
What type of company has stock that is widely held and available for sale to the general
public?
A) Private corporation
B) Public corporation
C) General partnership
D) Limited liability corporation
E) Professional corporation
Which of the following would be classified as opportunities for an organization?
A) Government regulation of the organization’s services
B) Highly unionized workers in the organization’s industry
C) New competitors
D) Stronger demand for the organization’s services
E) Economy fluctuations
Which of the following BEST describes the durability characteristic of money?
A) Units of money do not expire after a certain time limit.
B) Units of money can be matched with the value of goods.
C) Units of money allow people to measure the relative value of goods and services.
D) Units of money of different nations are easily converted to other units of money.
E) Units of money have lasting value.
What is the advantage for a business who uses offshoring in their manufacturing
process?
A) Decreased costs
B) Improved quality
C) Decreased production time
D) Increased employee moral
E) Decreased employee turnover
Which government agency regulates advertising and pricing practices to protect
consumers?
A) Generally Accepted Accounting Principles
B) North American Free Trade Agreement
C) Food and Drug Administration
D) Federal Trade Commission
E) Children’s Online Privacy Protection Act
Ethical issues are generally based on what?
A) Social responsibility
B) Individual ethics
C) Laws
D) Societal norms
E) Stakeholder returns
What can a company do to offset the consequences of slow sales in a product line?
A) Limit the use of capital items.
B) Diversify the product line.
C) Add convenience goods.
D) Increase the use of shopping goods available to consumers.
E) Reclassify specialty products as convenience products.
Which of the following is an indication that people accept the authority of superiors
simply because of their position in the organization?
A) Power respect
B) Power tolerance
C) Power acceptance
D) Power uncertainty
E) Uncertainty avoidance
Currently, a majority of U.S. imports come from Canada, Japan, Mexico, and China.
Which distinctive competency must an entrepreneur identify when attempting to enter
an established market?
A) The ability to identify new markets
B) The ability to identify niche markets
C) The ability to differentiate themselves from others in the market
D) The ability to gauge prices to get the highest return without driving away customers
E) The ability to move quickly to take advantage of new opportunities
What is the specific communication device that sellers use to send a message to
potential customers?
A) Advertising media
B) Personal selling
C) Real-time media
D) Promotional mix
E) Media mix
What authority is based on special expertise and usually involves counseling and
advising?
A) Line authority
B) Matrix authority
C) Delegated authority
D) Staff authority
E) Divisional authority
What term denotes a nation’s basis for allocating its resources among its citizens?
A) Capital structure
B) Economic system
C) Ownership processes
D) Distribution network
E) National regulations
What distinguishes the two most commonly used categories of owners’ equity?
A) The amount of equity within each type of assetcurrent versus fixed and intangible
B) The financial form of the equitycash investments versus stock and bond investments
C) The source of the equityinvestments versus earnings
D) The use of the equityinvested versus saved
E) The age of the equityolder investments and earnings versus newer investments and
earnings
There is discussion of a bill raising insurance premiums on bank deposits. Why would
these premiums need to be raised?
What two sources of capital make up owners’ equity?
Distinguish between internal and external recruiting.
Why are savings accounts not considered a component of M-1, whereas checking
accounts are?
What is collusion?
What is required for perfect competition to exist, and what principles must be in place
to achieve those conditions?
What are target markets? Explain the role that target markets play in market
segmentation.
Describe the purpose of an assembly line layout and when a firm would choose to use
this format.
Managers have many roles within the organization. Discuss the interpersonal roles of
managers and how those roles affect the organization.
Explain the types of policies used by the U.S. government to manage the U.S. economy.
Why are efforts to standardize global accounting practices important?
Discuss ways in which absenteeism affects coworkers and the organization.
Where do organizations get new product ideas?
Differentiate between data conferencing and videoconferencing.
How does unemployment affect economic stability?
What is SWOT analysis?