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________ is an accounting method in which revenue is recorded when a sale is made,
and expense is recorded when it is incurred.
A) Accrual basis
B) Cash basis
C) Profit basis
D) Depreciation
E) Deferral basis
Line stretching refers to ________.
A) using the brand of existing products on products in a new category
B) adding items with price points above or below the current product line
C) creating variations of a current product
D) creating variations of an existing product
E) developing items to fill gaps in the market that have been overlooked by competitors
McDonald's has sold individual owners the rights to use its trademark and business
system. Furthermore, McDonalds's has used this approach to open restaurants in more
than 100 foreign countries. This is an example of ________.
A) a strategic alliance
B) export licensing
C) franchising
D) joint venturing
E) a foreign direct investment
Matthew decides to open a cafe in his neighborhood, called Coffee Beans. While
analyzing the start-up options, he decides against buying an existing independent
business, or even buying into a franchise system. Because of a recent reduction in the
availability of loans to entrepreneurs, he is unable to get a bank loan. He is likely to
have which of the following benefits?
A) He will have established brand recognition.
B) Since business processes and systems are usually in place, he need not create them.
C) Support networks are already in place, so he need not update them.
D) He need not hire and train the workforce at his own expense.
E) He will experience very high freedom and flexibility.
The term ________ refers to a severe shortage of cash during which companies can't
get enough cash to meet their operating needs.
A) liquidity crisis
B) cash drought
C) asset crisis
D) payment shock
E) credit default
A product-extension merger occurs when ________.
A) two companies from unrelated industries unite to become a single company
B) different stages or levels of the same industry unite
C) different companies merge to increase global reach
D) a merger expands the mix of goods and services available for sale
E) a merger expands the geographic range of markets that it can serve
Which of the following is a source of long-term debt financing?
A) corporate bond
B) trade credit
C) credit card
D) factoring
E) commercial paper
________ refers to a company-sponsored counseling or referral plan for employees
with personal problems.
A) Health savings accounts
B) Employee assistance program
C) High-deductible insurance
D) Sliding-scale plans
E) 401(k) plan
A diagram that shows how employees and tasks are grouped and where the lines of
communication and authority flow is called a(n)________.
A) positional depiction
B) matrix structure
C) network structure
D) organization chart
E) functional chart
________ are particular brands that the buyer especially wants and will seek out.
A) Specialty products
B) Expense items
C) Capital items
D) Convenience products
E) Shopping products
Which of the following is a defining characteristic of a cross-functional team?
A) It manages its own activities and requires minimal supervision.
B) It is is organized along the lines of the organization's vertical structure.
C) It is composed of members at two or more geographic locations.
D) It is typically composed of managers and employees within a single functional
department.
E) It often involves some form of matrix structure.
Which of the following federal actions is aimed at increasing the money supply in
markets?
A) The Fed imposes more selective credit controls on loans.
B) The Fed buys Treasury bonds from the market.
C) The Federal Reserve raises the discount rate.
D) The Federal Reserve controls the issue of new loans.
E) The Federal Reserve increases the reserve requirement.
Which of the following terms refers to a court order that requires one side in a dispute
to refrain from or engage in a particular action?
A) injunction
B) boycott
C) lockout
D) arbitration
E) infringement
A(n) ________ is a tool that provides quick-read summaries of vital performance
variables.
A) executive dashboard
B) business plan
C) benchmark
D) budget plan
E) managerial pyramid
Producers rely on a class of intermediaries called value-added resellers (VARs) to assist
with which of the following functions?
A) transport the goods from the producer to the retail outlets
B) assist with advertising, in-store displays, and other promotional efforts
C) provide market information
D) divide bulk quantities into smaller packages
E) complete or customize solutions for customers
________ refers to the categorization of customers according to their relationship with
products or response to product characteristics.
A) Demographic segmentation
B) Geographic segmentation
C) Ethnographic segmentation
D) Psychographic segmentation
E) Behavioral segmentation
________ is a combination of private and public financing, in which an entrepreneur
invites people to fund a share of a new business venture or a new product.
A) Crowdfunding
B) Microlending
C) Angel investment
D) Business incubator
E) Threshold pledge system
In a ________, borrowers stop making payments on a loan.
A) liquidity crisis
B) bubble
C) foreclosure
D) default
E) market squeeze
Which of the following statements is TRUE of the European Union (EU)?
A) The EU has imposed hundreds of local regulations and variations in product
standards for its member nations.
B) The European Union's membership now encompasses more than 150 countries.
C) Viewed as a whole, the EU now constitutes the world's largest economy.
D) The EU adopts protectionist measures to regulate trade among member countries.
E) The EU was formed primarily to monitor global financial developments and to
alleviate poverty in developing economies.
________ refers to a state of physical and emotional exhaustion that can result from
constant exposure to stress over a long period of time.
A) Worker buyout
B) Discrimination
C) Employee burnout
D) Work-life balance
E) Ergonomic stress
Grinder, Inc. is a manufacturer of aluminum and steel ball bearings used in large
machineries. The company periodically estimates the future demand of its products and
bases manufacturing on this data. Such estimates of the company are called ________.
A) operation plans
B) PERT reports
C) resource plans
D) critical paths
E) production forecasts
Stock options grant employees the right to purchase a set number of shares of the
employer's stock at a specific price, called the ________.
A) 401(k) plan
B) sliding-scale plan
C) convenience yield
D) exercise price
E) market price
Prime interest rate is the ________.
A) lowest rate of interest that banks charge for short-term loans
B) average rate of interest charged by banks on their customers
C) interest rate that the Federal Reserve charges on loans
D) interest that the Federal Reserve pays for deposits
E) interest rate banks charge to their least creditworthy customers
Explain the different factors of production.
Compare and contrast Theory X with Theory Y.
Compare and contrast wage and salary?
Compare and contrast undifferentiated marketing with differentiated marketing.
Compare and contrast cognitive intelligence and social intelligence.
