One of the biggest disadvantages to advertising in newspapers is declining readership in
many cities.
ISO 9000 is a methodology used for customized production and avoids the use of
standards.
Dynamic pricing refers to offering temporary price reductions to stimulate sales.
In a canned sales pitch, the salesperson focuses on questioning and listening before
offering a solution that meets each prospect’s unique needs.
The stage of team development in which the team stabilizes and team members
recognize and accept their roles and duties is called performing.
Money is anything generally accepted as a means of paying for goods and services.
An injunction is an order issued by a union to stop work temporarily.
Management by objectives is a motivational approach where managers set specific
goals for each employee.
Difficulty in obtaining business permits or licenses to do a particular business would be
an example of a barrier to entry for a firm.
Transferring net revenue and expense account balances to retained earnings for the
period is referred to as closing the books.
The diagram that shows how employees and tasks are grouped is called organizational
structure.
The shortest distribution channel is from the producer, to the retailer, to the consumer.
Mentoring is the process of establishing a short-term relationship between a senior
member and a junior member.
Cap and trade programs try to balance free-market economics with government
intervention.
Legislators enacted the Patient Protection and Affordable Care Act in 2010, featuring a
variety of changes designed to improve access to health care.
Exporting is the least risky form of international business activity.
Institutional advertising refers to advertising that presents a company’s opinions on
public issues such as education or health care.
When you segment a market using demographics, you subdivide your customers
according to characteristics such as their ________.
A) attitudes
B) lifestyles
C) neighborhoods
D) habits
E) ethnic group
Another term for work specialization is ________.
A) virtual organization
B) chain of command
C) span of management
D) division of labor
E) organizational structure
TechSmart, Inc., a software solutions firm, runs full-page advertisements in the
newspaper and commercials emphasizing the firm’s commitment to employment
generation, affirmative action, and multiculturalism. The aim of the promotional
strategy is to create goodwill and build a positive image for the firm. In this example,
TechSmart, Inc. uses ________ advertising.
A) product advertising
B) institutional advertising
C) comparative advertising
D) bait and switch advertising
E) reminder advertising
________ is the technique of increasing the rate of return on an investment by financing
it with borrowed funds.
A) Returns projection
B) Budgeting
C) Leverage
D) Forecasting
E) Financial projection
Which of the following statements is TRUE about the major functional areas in a
business enterprise?
A) An R&D function is an integral part of all businesses.
B) Operations managers create branding and advertising strategies to communicate with
potential customers.
C) Accounting specialists work closely with other functional areas to ensure profitable
decision making.
D) Managers in finance and accounting functions remain uninvolved in the hiring and
training process.
E) Social media has resulted in customers being passive recipients of broadcast
advertising messages rather than being participants in a multidirectional conversation
with companies.
Which of the following is an advantage of offshoring?
A) Hidden costs and risks are rarely involved in offshoring.
B) U.S. firms can charge lower prices through offshoring.
C) Offshoring is the best way to improve business agility.
D) Information risks are low when offshoring services.
E) Offshoring is the best way to increase customer responsiveness.
________ refers to flexible benefit programs that let employees personalize their
benefits packages.
A) Cafeteria plans
B) Gain sharing
C) Profit sharing
D) Commissions
E) Bonus
Most countries outside of the United states use ________ to standardize their
accounting practices.
A) international financial reporting standards (IFRS)
B) generally accepted accounting principles (GAAP)
C) earnings before interest, taxes, depreciation, and amortization (EBITDA)
D) internationally accepted accounting protocols (IAAP)
E) country-specific principles of accounting (CSPOA)
Which of the following is the cheapest method of transportation?
A) rail
B) trucks
C) ships and barges
D) pipelines
E) air
Rex Associates has a poor credit rating and is finding it difficult to obtain loans. In
order to fund a new project, the company decides to let out one of its buildings to a
bank. The company obtains funds in return from the bank. This is an example of
________.
A) unsecured lending
B) factoring
C) leasing
D) long-term lending
E) short-term lending
Which of the following statements is TRUE regarding whistle-blowing?
A) Whistle-blowing is the normal channel through which employees can address issues
involving unethical or illegal behavior within their companies.
B) Whistle-blowing refers to the use of unpublicized information that an individual
gains from the course of his or her job to benefit from fluctuations in the stock market.
C) Whistle-blowing occurs when employees share confidential company information
with external agents for personal gain.
D) The federal and state laws governing whistle-blowing are simple and clear, so they
are easy for employees and employers to understand.
E) Although whistle-blowing is sometimes characterized as “ratting on” colleagues or
managers, it has an essential function.
As a part of the Fed’s function of designing and implementing monetary policy, the
________ decides on monetary policy.
A) Federal Committee for Money Management (FCMM)
B) Federal Institute for Financial Oversight (FIFO)
C) Federal Savings and Loan Insurance Corporation (FSLIC)
D) Federal Open Market Committee (FOMC)
E) Federal Deposit Insurance Corporation (FDIC)
The ________ requires that expenses incurred in producing revenues be deducted from
the revenue they generated during the same accounting period.
A) principle of prudence
B) deferral principle
C) materiality principle
D) matching principle
E) principle of continuity
Independent accounting firms that provide auditing services for public companies are
called ________.
A) forensic auditors
B) external auditors
C) cost accountants
D) domestic auditors
E) financial analysts
Edwin runs an antique retail shop that is registered as a sole proprietorship. The liability
exposure of Edwin’s business ________.
A) is limited to the amount he has invested on fixed assets
B) refers to the amount invested on variable assets
C) is more if the size of transactions is limited
D) refers to the total fixed investments made by him
E) is unlimited for the business’s personal obligations
In response to increasing demand for products in developing countries, some
manufacturers pursue a strategy called ________ by establishing production facilities in
or near those markets.
A) reshoring
B) near-shoring
C) global-shoring
D) spot-shoring
E) onshoring
Which of the following statements is TRUE about professionalism?
A) Professionalism involves striving to excel in a single area, instead of attempting to
excel at every level.
B) Professionalism consists of working individually, rather than in a team.
C) Professionalism involves prioritizing business goals over ethical considerations.
D) Professionalism involves being accountable.
E) Professionalism involves having the confidence to present opinions as facts.
Which of the following is the best example of an external source for obtaining funds for
business?
A) revenue from selling assets
B) funds from shareholders
C) interest from deposits
D) issuing corporate bonds
E) earnings from investments
Choosing a candidate from several job applicants is an example of the ________ role of
managers.
A) interpersonal
B) instructional
C) collaborative
D) decisional
E) informational
Blackstone Stove Company has three self-contained business units that specialize in the
design, manufacture and sale of cooking appliances: one business unit for microwave
ovens, another for gas and electric ranges, and a third for gas grills. The business units
are self-contained and enjoy great autonomy. Blackstone Stove has a ________
structure.
A) matrix
B) divisional
C) functional
D) line
E) network
Which of the following is a legitimate disadvantage of offshoring?
A) U.S. Consumers will be charged higher prices due to offshoring.
B) Global trade will decline if businesses offshore processes.
C) Customer responsiveness may suffer due to offshoring.
D) Customers will lack choice in many industries due to offshoring.
E) U.S. competitiveness will decrease if businesses offshore processes.
________ refer to treasury issues in which the principle amount is tied to the Consumer
Price Index to protect the buyer against the effects of inflation.
A) Treasury notes
B) Treasury bills
C) Treasury bonds
D) TIPS
E) Municipal bonds
________ is a situation in which no single firm is large enough to influence prices and
distort the workings of the free-market system.
A) Pure monopoly
B) Pure entrepreneurialism
C) Pure competition
D) Regulated monopoly
E) Stabilized monopoly
Making jobs more challenging and interesting by expanding the range of skills required
is called ________.
A) job enlargement
B) cross-training
C) job enrichment
D) flextime
E) task identity
Retail sales, on the day after Thanksgiving, are usually a good indicator of overall retail
sales for the Christmas season. This is an example of a ________ indicator.
A) leading
B) conversionary
C) lagging
D) current
E) latent
Discuss the three trends that are likely to shape advertising media in the coming years.
Compare and contrast functional structure with divisional structure.
Compare and contrast expectancy theory with equity theory.
Coca Foods markets packaged foods in the United States. The company recently
decided to expand globally and produce in large quantities from a central location. How
will this decision impact the company’s unit cost of production?
Explain the role of corporate officers in corporate governance.
Compare and contrast secured bonds and debentures.