Revenue tariffs are primarily designed to discourage the importation of foreign
products.
Organizational citizenship reflects the ability of a behavior to detract from, rather than
contribute to, organizational performance.
The increased activity of the financial market in the past five years has resulted in a
severe drop in the required premiums for commercial banks to be members of the
Federal Deposit Insurance Corporation.
It is not possible to change an organization’s corporate culture.
Just-in-time (JIT) production systems normally require large amounts of safety stock to
be maintained in a firm’s warehouse.
A company’s security policy can prevent certain data from passing through its firewall.
Corporate culture is largely a result of state and local laws and regulations.
The marketing process to the consumer is significantly different than the marketing
process for the industrial buyer.
The effectiveness of managers in using time can be undermined by frequent phone
calls.
Because railroads do not have limited delivery routes, they can economically transport
high-volume, heavy, bulky items, such as cars, steel, and coal.
A bond is said to be in default if the borrower fails to make payment when due to
lenders.
After a product has been in the maturity stage for a few decades, marketers must accept
that the product will begin to decline.
Worms, Trojan horses, and other infection software are collectively known as malware.
The formula for value is benefits divided by costs.
The B2B market includes industrial, reseller, and government/institutional markets.
A tax service can provide management advisory services ranging from personal
financial planning to planning corporate mergers.
In a secondary securities market, new stocks and bonds are bought and sold by firms
and governments.
Government will most often influence organizations through the establishment of laws
and rules that dictate what organizations can and cannot do.
The ethical norm of utility evaluates whether an act respects the rights of all parties.
Deflation, an indication that the economy is contracting, is characterized by price
stabilization of goods.
Premiums reward frequent buyers for making repeat purchases.
The primary purpose of the World Trade Organization is to impose tariffs on imported
products.
Many managers spend as much as four hours a day in meetings.
Current assets are all assets that are able to be liquidated in a short amount of time.
Many firms say that merit raises are a better motivator than variable pay.
A stock exchange is an organization of individuals coordinated to provide an
institutional auction setting in which stocks can be bought and sold.
The World Trade Organization (WTO) was created to encourage international trade.
As organizations grow and become larger, jobs tend to become less specialized.
Discount houses, catalog showrooms, and factory outlets are examples of product line
retailers.
If prices are set too high, the company will make a large profit on each item, but will
sell fewer units.
Corporate culture influences management’s philosophy, style, and behavior.
When attempting to market a domestic product in an international market, what
typically has to happen?
A) The product must be priced higher because of currency exchange rates.
B) The product must have major redesign work done.
C) The home country distribution system must be retrained for the international market.
D) The product must have an existing close competitor in the intended market.
E) The advertising campaign must be consistent with those used in the home country.
What type of nondeposit institution will buy and sell stocks and bonds on behalf of
clients?
A) Insurance companies
B) Pension and trust services
C) Finance companies
D) Pension funds
E) Securities investment dealers
What can be used to determine what products are sold and when they are sold to be
better able to forecast upcoming demand?
A) Upstream sourcing
B) Systems integration
C) Supply chains
D) Large inventories
E) Data mining
Performance refers to which of the following?
A) The principle that quality belongs to each person who creates it while performing a
job
B) The consistency of product quality from unit to unit
C) How well the product does what it is supposed to do
D) The process by which a company analyzes a competitor’s products to identify
desirable improvement
E) Providing value by making products available when customers want them
Standards that help to shape behaviors towards employees, the organization, and other
economic agents are
A) social responsibility.
B) managerial ethics.
C) whistle-blowing techniques.
D) values.
E) morals.
According to McClelland, what is the need for achievement based on?
A) The desire to control one’s environment
B) The desire to increase job satisfaction
C) Recognition for a job well done
D) The desire to accomplish a goal or task as effectively as possible
E) The need for human companionship
Who is the person in charge of operating the systems used for gathering, organizing,
and distributing information?
A) Production manager
B) Operations manager
C) Information systems manager
D) Research and development manager
E) Communications manager
Which legal concept holds that both employer and employee have the mutual right to
terminate an employment relationship any time, for any reason, and without advance
notice to the other?
A) Quid pro quo
B) Affirmative action
C) Employment at will
D) Mutual consent
E) Equal employment opportunity
Which of the following terms refers to the recording of financial transactions?
A) Bookkeeping
B) Accounting
C) Controlling
D) Budgeting
E) Auditing
Which of the following occurs when an organization sells part of a business or
operation to another corporation?
A) Merger
B) Acquisition
C) Divestiture
D) Buy out
E) Spin off
Which of the following BEST gives the meaning of the term gross domestic product?
A) Total quantity of goods and services produced by an economic system
B) Total quantity of goods that a country’s citizens can purchase with the currency used
in their economic system
C) Conditions of the economic system in which an organization operates
D) Total value of all goods and services produced within a given period by a national
economy through domestic factors of production
E) Indicators of available goods and services produced within a specific domestic
market
Which of the following statements BEST describes why U.S. Treasury securities have
always been considered risk-free investments?
A) They are backed by the U.S. government.
B) They have a guaranteed rate of return.
C) They are easily sold.
D) They are readily available for purchase.
E) They earn a great profit on the international money market.
What is the term for buying several different kinds of investments rather than just one?
A) Spreading
B) Shorting
C) Margin buying
D) Diversification
E) Management
What type of structure represents one with relatively few layers of managers?
A) Tall organizational structure
B) Short organizational structure
C) Flat organizational structure
D) Elliptical organizational structure
E) Triangular organizational structure
What is dividing a store into a men’s department, a women’s department, and a luggage
department an example of?
A) Product departmentalization
B) Customer departmentalization
C) Process departmentalization
D) Geographic departmentalization
E) International departmentalization
Recent corporate scandals that have shaken the public’s faith in business leadership
have brought increased attention to what area of leadership?
A) Virtual leadership
B) Ethical leadership
C) Strategic leadership
D) Employee-focused leadership
E) Charismatic leadership
Which term is defined as the combination of “characteristics of a product or service that
bear on its ability to satisfy stated or implied needs”?
A) Quality
B) Production
C) Quantity
D) Clarification
E) Capacity
How can competing firms collaborate on a new business without losing control of their
existing firm?
A) Establish a joint venture
B) Buy large blocks of the competitor’s stock
C) Hire a new chief executive office
D) Sell off similar operations
E) Change the corporate governance of both firms
What type of planning has the greatest effect on production costs and flexibility?
A) Capacity
B) Layout
C) Quality
D) Location
E) Process
What can marketers use to attempt to separate consumers based on identifying traits
such as age or income?
A) Demographic variables
B) Geographic segmentation
C) Product positioning
D) Integrated marketing
E) Demographic segmentation
Which of the following is one of the elements required in private enterprise?
A) Adequate representation in the government
B) Freedom from foreign competition
C) The opportunity for market leadership
D) The right to ownership of property
E) Numerous regulatory agencies
Under the path-goal theory of leadership, what type of leader behavior includes setting
challenging goals for the employee with the expectation that those goals will be
achieved?
A) Directive
B) Supportive
C) Participative
D) Achievement-oriented
E) Decision tree
What stance do firms who do as little as possible to solve social or environmental
problems take?
A) Social accommodation
B) Obstructionist
C) Defensive
D) Accommodative
E) Proactive
What is the cumulative growth of money from interest paid over a given period of time
known as?
A) Compound growth
B) Rule of 72
C) Time value of money
D) Interest
E) Market value
Which of the following pricing strategies BEST describes price lining?
A) Setting an initial low price to establish a new product in the market
B) Setting an initial high price to cover new product costs and generate a profit
C) Setting individually negotiated prices for certain categories of products
D) Setting a limited number of prices for certain categories of products
E) Setting individually negotiated prices for all categories of products
Which of the following indicated a firm sold the rights to put their name on a product
not produced by them?
A) Asset brands
B) National brands
C) Licensed brands
D) Private brands
E) Private labels
When a consumer knows what they want to buy and is not willing to accept a substitute,
what type of consumer product is being sought?
A) Production goods
B) Shopping goods
C) Convenience goods
D) Expense goods
E) Specialty goods
Which of the following is NOT part of the M-1 supply?
A) Currency at hand
B) Currency amount of written checks
C) Currency available through a debit card
D) Currency in checking accounts
E) Currency value of time deposits
If a U.S. firm wishes to buy products from an overseas supplier, what would the firm
use to guarantee payment on a certain date?
A) Currency exchange guarantee
B) Letter of credit
C) Brokerage service
D) Banker’s acceptance
E) Security intermediary
What activity do company managers undertake so they can later measure success or
failure at every organizational level?
A) Planning tactics
B) Setting goals
C) Devising strategies
D) Auditing skills
E) Publicizing promotions
Under which of the following circumstances would the Federal Reserve System want to
decrease the money supply by increasing the reserve requirement?
A) The economy is experiencing severe inflation, and market activity is very low, yet
the financial institutions have a great deal of M-1 resources at their disposal that they
are not investing.
B) The economy is experiencing severe inflation, yet market activity has been
extremely high and erratic.
C) The economy is experiencing severe deflation, and market activity is very low, yet
the financial institutions have a great deal of M-1 resources at their disposal that they
are not investing.
D) The economy is experiencing severe deflation, yet market activity has been
extremely high and erratic.
E) The economy is experiencing severe deflation, market activity is very low, and most
financial institutions are low on M-1 resources.
Where do government regulations evolve from?
A) Laws
B) The National Labor Relations Board
C) Indirect channels
D) The Foreign Corrupt Practices Act
E) Social beliefs
Why should companies conducting international operations be concerned about
exchange rate fluctuations?
Discuss the differences in the three types product line retailers.
Discuss how an employee’s level of self-esteem affects their actions and needs at the
workplace.
How does the Fed’s monetary policy influence banks’ willingness to loan money?
Why is workplace violence increasing?
What is the difference between a goal and a strategy?
Explain competitive product analysis.
What is a supply chain? How can supply chain management create competitive
advantage?
Why is product placement an effective marketing tool?
How has information technology affected organizational structure in terms of the
number of employees and the organizational structure?
What are the advantages and disadvantages of globalization?
What are the advantages and disadvantages for a franchisee?
Explain direct-response retailing.
How does outsourcing affect global supply chain management?
Why is electronic conferencing a desirable alternative for business?
How can teams lead to higher levels of employee motivation and satisfaction in smaller
firms?
Describe psychological, personal, social, and cultural influences on consumer behavior.
Discuss why the majority of decisions made by managers are made under a state of
uncertainty, and how managers can minimize the risk of poor decisions.
Discuss modified work schedules and how they increase job satisfaction.