A value chain includes an entire network of firms, beginning with suppliers and ending
when production is complete.
The Consumer Bill of Rights is backed by numerous federal and state laws.
Rigid rules and procedures, along with individual professionalism, may render leader
behavior unnecessary.
A divisional structure relies on functional departmentalization.
An employee stock ownership plan allows employees to join together and influence
corporate managers and how they run the company.
The one area the Federal Reserve System has very little control over is the strength of
the U.S. dollar against other currencies.
NAFTA regulates trade between the United States, Europe, and Japan.
A check is an order to a bank to withdraw funds at any time.
The international payments process that moves money between buyers and sellers on
different continents is subject to worldwide policy systems.
Effective crisis management involves having a contingency plan for emergencies.
A process flowchart identifies the sequence of production activities, movements of
materials, and work performed at each stage of the process.
Labor relations refers to the dealing with employees who are not represented by a
union.
The informal organization is not as powerful as the formal structure.
Dividend payments are optional and variable. The corporation’s CEO decides whether
and when a dividend will be paid, as well as the amount that is best for the future of the
company’s employees.
Economic systems differ in how factors of production are used.
A subsidy is a tax designed to help companies who import products.
The goals of the marketing plan are the foundations for the marketing objectives.
A long-term ratio of 2:3 indicates that the company has more equity than debt by a half.
Participation and empowerment work more effectively in large firms than in small
firms.
With product adaptation, the product is modified for greater appeal in different
countries.
In a low-contact system, the customer must be a part of the system to receive the
service.
The National Labor relations Board was established by the Wagner Act to enforce the
provisions of the Act.
An example of a point-of-sale (POS) terminal is making a payment at the grocery store
and having the system transfer funds from your account to the store’s account.
Firms typically use the same form of departmentalization at upper and lower levels.
Open-market operations are often a more effective method for the Federal Reserve
System to expand the money supply than is minting more dollars and coins.
Economic indicators help to assess the performance of an economy.
Organizational commitment reflects an individual’s identification with the organization
and its mission.
Like most of the federal government, the governors of the Federal Reserve System are
democratically elected by the citizens of the United States.
The chain of command is depicted by solid lines on an organization chart.
The distribution mix is the combination of channels that a firm selects to get a product
to end users.
In order to increase the quality of current accountants, the CPA Vision Project has
re-asserted the ability to use and calculate large amounts of numerical data as a primary
competency for accountants.
To attract attention in stores, companies use point-of-sale (POS) displays to ease finding
products and to eliminate competitors from consideration.
Which of the following is a government payment to help a domestic business compete
with foreign firms?
A) Revenue tariff
B) Protectionist tariff
C) Import buy-back
D) Export rebate
E) Subsidy
Which of the following is an advantage of using a product layout plan?
A) They do not require specialized equipment.
B) They can be easily rearranged for new applications.
C) They can only be used for custom products.
D) They are inflexible in nature.
E) Unskilled labor can be utilized.
Which term refers to employees hired to supplement a firm’s permanent workforce?
A) Union workers
B) Contingent workers
C) Knowledge workers
D) Flextime workers
E) Remote workers
Which of the following refers to tariffs that are imposed strictly to raise money for the
government?
A) Revenue tariffs
B) Protectionist tariffs
C) Quota tariffs
D) Subsidy tariffs
E) Labor tariffs
Which of the following best describes product placement?
A) Placing products on the shelf where they receive the most attention
B) Identifying specific products for viral marketing campaigns
C) Placing products in movies and television shows
D) Placing a national brand next to a store brand for better comparison
E) Determining if a product should be sold only online or only in brick and mortar
shops
What term is most closely associated with the pursuit of entrepreneurship with the goal
of independence from working for someone else with a reasonable degree of financial
security?
A) Vision
B) New ventures
C) Small business
D) Start-ups
E) Dominance
Which term refers to the total quantity and quality of goods and services that people
living in an economic system can purchase?
A) Business cycle supply
B) Demand and supply schedule
C) Standard of living
D) aggregate output
E) Consumer price index
What Act requires an organization’s chief financial officer to personally guarantee the
accuracy of all financial reporting?
A) Generally Accepted Accounting Principles (GAAP)
B) Securities and Exchange Commission (SEC)
C) Sarbanes-Oxley
D) False Claims Act of 1863
E) Whistle-Blower Protection
Before a firm can offer an IPO, they must file a document with the SEC that explains
the offering and the company. This document is called a(n)
A) Rule of 72 report.
B) prospectus.
C) FINRA confirmation.
D) blue-chip evaluation.
E) IPO launch form.
What is the most popular pre-employment test given?
A) Drug tests
B) Reference checks
C) Credit checks
D) Physical exams
E) Interviews
The sum actions of employees in an organization is known as what?
A) Ethics
B) Regulation
C) Culture
D) Vision
E) Focus
Which of the following BEST describes accountability?
A) The power to make the decisions necessary to complete a task
B) The obligation employees have to their manager for the successful completion of an
assigned task
C) The decision to communicate clear expectations related to assigned tasks
D) The number of people supervised by one manager
E) The duty to perform a financial task
Which of the following best describes the new, modern role of a leader?
A) Overseer
B) Individualist
C) Collectivist
D) Coach
E) Autocratic
A firm that wanted to conduct a short-term activity in order to boost consumer buying
would use which of the following strategies?
A) Sales promotions
B) Special offers
C) Trade shows
D) Point-of-sale displays
E) Missionary selling
According to social learning theory, what determines the behavior of an individual at
the work place?
A) Cognitions and social environment
B) Management by objectives
C) Analysis
D) Comparisons
E) Reinforcement
A separate company unit responsible for its own cost and revenue is referred to as
which of the following?
A) Centralized organization
B) Decentralized organization
C) Department
D) Job specialty
E) Profit center
In addition to help preparing tax returns, what benefit can a tax service offer a business?
A) Tax planning
B) Litigation advice
C) State certification
D) Personal financial planning
E) Advice on corporate mergers
A new business should have enough capital to operate at least how many months
without earning a profit?
A) 1
B) 2
C) 4
D) 6
E) 9
What is the term for the extent to which a person’s contributions and the organization’s
inducements match?
A) Employee equity
B) Person-job fit
C) Psychological contract
D) Time-motion study
E) Team culture
What is the legal document that identifies a borrower’s obligation when issuing
corporate bonds?
A) Bondholder’s claim
B) Risk claim analysis
C) Initial public offering
D) Mortgage-backed security
E) Bond indenture
What is the term given to the groups, individuals, and organizations that are directly
affected by the practices of an organization?
A) Primary agents of interest
B) Social auditors
C) Competitors
D) Organizational stakeholders
E) Local communities
The Small Business Administration (SBA) may consider a business with many
employees to be small as long as it has low annual revenues.
How are the individual Federal Reserve Banks organized?
A) By size of financial institution memberssmall, medium, large, etc.
B) By type of financial institution memberscommercial banks, credit unions, etc.
C) By geographical regionSoutheast, Northeast, West, etc.
D) By financial purposebuying, lending, interest controlling, etc.
E) By legislative districts10th District of Massachusetts, 1st District of Colorado, etc.
Which department is responsible for ensuring that operations departments produce
products that meet specific, predetermined standards?
A) Purchasing
B) Production systems
C) Quality control
D) Productivity
E) Marketing
What function of the management process is used to monitor and ensure the
organization is meeting its goals?
A) Planning
B) Organizing
C) Leading
D) Controlling
E) Budgeting
How is the decisional role of a corporate manager similar to the role of the
entrepreneur?
A) Both are initiators of change.
B) Both are resource allocators.
C) Both require technical skills.
D) Both must have strong Human Resource skills.
E) Both rely on strong conceptual skills.
What is the grouping of products available for sale by a company called?
A) Product line
B) Capital mix
C) Goods and services
D) Specialty goods
E) Product mix
In which type of economy do the individual producer and consumer control production
through supply and demand?
A) Planned
B) Communist
C) Market
D) Socialist
E) Mixed
What is the advantage to starting a business from scratch instead of buying an existing
business?
A) There is a proven ability to attract customers.
B) Profit is generated sooner.
C) There is a stronger relationship with lenders and other stakeholders.
D) There are no ill-effects from the previous owner.
E) There is a clearer picture of what to expect in terms of start-up.
Which element of an organization is defined by shared experiences, stories, beliefs, and
norms?
A) Its human resources
B) Its product philosophy
C) Its corporate culture
D) Its mission statement
E) Its organizational structure
Those employees who like to experiment with new ideas or gamble on the development
of new products are considered to have a higher degree of
A) self-esteem.
B) intrinsic reward need.
C) authoritarianism.
D) propensity for risk.
E) cognition.
Identify the threats and risks information technology poses on businesses.
Describe the purpose of the Wagner Act, including how the Act is enforced.
Why would a consumer utilize trust services offered by commercial banks?
Describe the three types of competition faced by marketers.
How has e-business contributed to lower prices?
What is an angel investor?
How can a firm utilize and control an informal company grapevine?
Why is it important to have ethical codes in the field of accounting?
Describe the differences between primary and secondary securities markets.
Define the term corporate culture.
List one advantage of using trucks for transportation and one disadvantage.
Discuss reasons why informal communication plays a growing role in an organization.
Describe the relationship between a firm’s productivity level affect and a country’s GDP.
Compare wide area networks with local area networks and indicate why a firm would
use one over the other.
Differentiate between fixed costs and variable costs.
Discuss each of the four principles of private enterprise systems.
How do organizations develop workers’ skills?