What is the term for a division of stock that gives stockholders a greater number of
shares but does not change each individual’s proportionate share of ownership?
A) Stock dividend
B) Stock split
C) Stock yield
D) Stock warrant
E) Stock exchange
In addition to understanding the organization’s history and culture, what must a leader
understand in order to be effective at strategic leadership?
A) The external environment
B) The needs of stakeholders
C) The advantages to virtual leadership
D) The hiring process
E) How men and women respond to various leadership styles
What are individual beliefs about what is right and wrong or good and bad referred to
as?
A) Motivators
B) Rules
C) Cultures
D) Ethics
E) Laws
The profit realized when the market value of an investment increases is known as which
of the following?
A) Capital gains
B) Asset allocation
C) Diversification
D) Price appreciation
E) Profiteering
National economies, regardless of industry, are measured through what?
A) Standard of living
B) Aggregate output
C) Gross domestic product
D) Output per capita
E) Inflation rates
In which of the following bargain retailers do the customers view display samples,
place orders, and wait briefly while clerks retrieve orders from attached warehouses?
A) Off-price store
B) Catalog showroom
C) Factory outlet
D) Wholesale club
E) Discount house
Which of the following intermediaries matches numerous sellers and buyers as needed,
often without knowing in advance who they will be?
A) Producer representative
B) Retailer
C) Syndicated seller
D) Sales agent
E) Broker
In what way does absenteeism result in a direct cost to a business?
A) Additional training must be provided to coworkers.
B) Turnover among high quality employees increases.
C) Burnout and psychological distress increases for those who are on the job.
D) There is confusion about authority roles within the organization.
E) A substitute must do the work of the missing employee.
Where can a new business owner go to seek help and learn from other institutions and
disciplines?
A) The Service Corps of Retired Executives (SCORE)
B) The Small Business Development Center (SBDC)
C) Small business investment companies (SBICs)
D) Venture capitalist
E) Minority Enterprise Small Business Investment Companies (MESBICs)
Which of the following bargain retailers generate large sales volume by offering a wide
variety of new products at substantial price reductions?
A) Discount houses
B) Catalog showrooms
C) Second-hand stores
D) Factory outlets
E) Direct-response bargain marketing
How have companies such as Tyvek, General Motors, and DuPont worked to lessen the
impact of waste on the environment?
A) By achieving LEEDS certification
B) By achieving zero-landfill status
C) By agreeing to recycle more than 50 percent of total waste
D) By eliminating the use of phosphates
E) By repurposing products and systems
Consistency refers to which of the following?
A) The principle that quality belongs to each person who creates it while performing a
job
B) The sameness of product quality from unit to unit
C) The sum of all activities involved in getting high-quality products into the
marketplace
D) The process by which a company analyzes a competitor’s products to identify
desirable improvements
E) Providing value by making products available where customers want them
How does behavioral segmentation identify target markets?
A) Behavioral variables
B) Demographics
C) Marketing research
D) Geographics
E) Psychographics
Which of the following is TRUE about corporate culture?
A) It can direct employees’ efforts toward goals.
B) It is usually determined by outside forces.
C) It cannot be changed.
D) It is easy to change.
E) It rarely affects newcomers in an organization.
When a new product has high demand in the market, how should a company react?
A) Increase the supply of the product.
B) Decrease the supply of the product.
C) Reduce the price of the product.
D) Maintain the current supply until demand falls.
E) Create an artificial shortage of the product.
Which of the following types of leaders has the primary role of helping a less
experienced person learn how to function and to advance within an organization?
A) Enabler
B) Mentor
C) Manager
D) Taskmaster
E) Motivator
What government agency has the responsibility to oversee consumer-related concerns?
A) Department of Labor
B) FTC
C) Equal Employment Opportunity Commission
D) SEC
E) National Labor Relations Board
Which of the following is an informal dimension for managing social responsibility?
A) Legal compliance
B) Whistle-blowing
C) PAC committees
D) Ethical compliance
E) Philanthropic giving
What does the process of positioning involve?
A) Hiring only employees who have the strongest credentials
B) Designing a company’s products to appeal to target customers
C) Focusing on only one component of the marketing mix
D) Disregarding customers’ reactions to a company’s products
E) Reorganizing employees according to seniority
Which of the following BEST describes a decision support system?
A) A system that supports an organization’s managers by providing daily reports,
schedules, plans, and budgets that can be used for making decisions
B) A quick-reference, easy-access application of information systems specifically
designed for instant access by upper-level managers
C) A system of hardware and software that imitates human behavior
D) An interactive system that creates virtual business models for a particular kind of
decision and tests them with different data to see how they respond
E) A processor that plans production and delivery schedules
Which cybercriminal activity refers to the act of luring Internet users to bogus Web
sites?
A) Computer virus distribution
B) Spamming
C) Phishing
D) Trojan horse distribution
E) Piracy
Which of the following terms refers specifically to the activities needed to move
products efficiently from manufacturer to consumer?
A) Physical distribution
B) Promotion and positioning
C) Product distribution
D) Transportation modes
E) Product placement
Which of the following terms refers to a bundling of stocks, bonds, and other
securities?
A) Blue-chips
B) Mutual funds
C) Exchanges
D) Commodities
E) Dividends
What is the result of two or more firms collaborating on a wrongful act, such as price
fixing?
A) Unfair pricing
B) Price gouging
C) Product collaboration
D) Collusion
E) Consumerism
Who generally has access to intranets?
A) Employees
B) Suppliers
C) Customers
D) Shareholders
E) Dealers
Which of the following is the name for the economic value of all of the products that a
country exports minus the economic value of its imports?
A) Balance of foreign competition
B) Balance of domestic competition
C) Balance of trade
D) Balance of payments
E) Balance of supply and demand
Why do attitudes about entrepreneurship vary internationally?
A) Decision making in big business can overlook local customs.
B) Attitudes towards risk-taking in business are culturally determined.
C) Consumer attitudes are influenced by economic cycles.
D) Foreign-owned companies can be unresponsive to local markets.
E) International business is creating a global village.
What type of rating system incorporates feedback from customers, subordinates and
peers, among others?
A) Ranking
B) Recency
C) 360-degree feedback
D) Judgmental
E) Rating
Which of the following types of training occurs while the employee is at his or her
place of work?
A) On-the-job training
B) Vestibule training
C) Off-site training
D) Incentive training
E) Remote training
In which international organization structure does a firm have greatest control over
foreign activities?
A) Exporting arrangements
B) Strategic alliances
C) Importing arrangements
D) Licensing arrangements
E) Independent agents
Why is gross national product (GNP) considered to be a less valuable indicator of
domestic economic performance than gross domestic product (GDP)?
A) GNP does not consider where the economic performance was located.
B) GNP only considers economic performance within the United States.
C) GNP is not adjusted for inflation.
D) GNP does not consider currency fluctuations at the time of product purchase.
E) GNP does not compare output to population rates.
Which of the following describes a liability?
A) The potential profit from selling a firm’s assets and settling all of its debts
B) A debt owed by a firm to an outside organization or individual
C) Any economic resource expected to benefit a firm or an individual who owns it
D) Any economic deficit expected to cost a firm or an individual who owns it
E) The amount of money originally invested in a business by its owners
What system includes data conferencing and videoconferencing?
A) Electronic communication systems
B) Electronic conferencing
C) Group systems
D) Data communication networks
E) Data mining