Suppose that a manager completely hands over operational decision making to her
subordinates. This manager is a democratic leader.
Working capital refers to the amount of cash an organization has in hand.
During a bear market, most stocks increase in value.
Making a morally wrong decision is not the same thing as an ethical lapse.
What is professionalism? List the key traits of professionalism.
Organizing is the process of arranging resources to carry out an organization’s plans.
Venture capital is one of the least specialized and most widely available forms of
funding.
Highly leveraged companies will have adequate funds to spend on advertising, staffing,
and product development.
Concentrated marketing is the narrowest strategy of all market-coverage strategies, in
which firms target a single location or even a single customer.
As social equality is a major goal of planned systems, private enterprise and the pursuit
of private gain are encouraged.
An employee who works from home and uses electronic communications to stay in
touch with colleagues is said to be telecommuting.
Establishing a corporation is more complicated and expensive compared to establishing
a sole proprietorship.
Marketing and distributing expenses are examples of general expenses.
Customer loyalty is one of the most significant goals of relationship marketing.
Which of the following is a disadvantage of long-term loans?
A) They cannot provide substantial sums of money to businesses.
B) They require diluting ownership in organizations.
C) They are available to firms with a weak credit rating.
D) Such loans can restrict the way an organization uses its assets.
E) Not all companies can qualify for loans and acceptable terms.
The number of workers who report directly to a manager is called the manager’s
________.
A) chain of command
B) functional structure
C) divisional structure
D) span of management
E) task force
The process of finding and qualifying potential customers is known as ________.
A) consultative selling
B) behavioral targeting
C) consumer promotion
D) prospecting
E) trade promotion
A(n) ________ has most of the attributes of a regular corporation but adds the legal
requirement that the company must also pursue a stated non-financial goal.
A) limited liability corporation
B) general partnership
C) S corporation
D) sole proprietorship
E) benefit corporation
Supply chain management refers to the business procedures, policies, and computer
systems that ________.
A) separate supply chain from the value chain of an organization
B) convert supply chain into a cohesive system
C) separate supply chain from other business functions
D) help an organization communicate with competing firms
E) create a procurement process independent of the supply chain
Ace, Inc., an American multinational computer software company, has a large number
of hierarchical levels. Each manager is responsible for a few employees and maintains a
tight control on them. At Ace Inc., the time taken to make decisions is very high, as
each decision needs to go through numerous management layers. Which of the
following statements is TRUE about the organizational structure of Ace Inc.?
A) Ace Inc. has a narrow span of management.
B) Ace Inc. is a flat organization.
C) Ace Inc. lacks work specialization.
D) Ace Inc. is a decentralized organization.
E) Ace Inc. encourages employees to form self-managed teams.
________ is a special type of bar chart that shows the progress of all the tasks needed to
complete a project.
A) Forecast schedule
B) Gantt chart
C) Value chart
D) PERT diagram
E) Supply chain diagram
Creating branding and advertising strategies to communicate with potential customers,
and setting prices would fall under the ________ function of a business.
A) human resource
B) accounting
C) logistics
D) marketing
E) research and development
Nongovernmental organizations are ________.
A) publicly traded and owned entities
B) firms that apply sustainable business strategies to achieve their business goals
C) nonprofit groups that provide charitable services or promote causes
D) firms that derive a substantial portion of their income from trade
E) composed primarily of sovereign states (referred to as member states), or of other
intergovernmental organizations
A small business is defined as a company that ________.
A) is newly launched and has fewer than 100 shareholders
B) is dominant in its field and employs fewer than 1,500 employees
C) has revenue of less than $750,000
D) is independently owned and operated and not dominant in its field
E) is funded through personal lines of credit and has fewer than 1,000 employees
Theocratic law is found in Iran and Pakistan and is based on ________.
A) traditions and customs
B) religious principles
C) detailed legal codes
D) legal parameters
E) judicial interpretations
Frost Bank lends $500,000 to Arbex Manufacturer. Arbex has agreed to pay this amount
back in fifty equal installments over a period of ten years. This is an example of a
________.
A) lease agreement
B) trade credit
C) corporate bond
D) long-term loan
E) commercial paper
An e-commerce website allows visitors to sign up for specific content streams with the
promise that they won’t be bombarded with information they don’t care about. This is an
example of ________.
A) stealth marketing
B) social commerce
C) permission-based marketing
D) market development
E) cause-related marketing
A ________ is an economic system in which individuals and companies are largely free
to decide what products to produce, how to produce them, whom to sell them to, and at
what price to sell them.
A) planned system
B) regulated economy
C) socialist economy
D) free-market system
E) communist economy
Which of the following actions of the government indicates the privatization of an
industry?
A) allowing private businesses to operate in an industry that was previously operated by
the government
B) discouraging private business to operate in an industry that is critical for the growth
of the economy
C) acquiring the market leader to gain control of the industry and its resources
D) imposing taxes on scarce raw materials to discourage unfair pricing by its suppliers
E) imposing regulations on multinational businesses to protect local businesses
Many companies have integrated live chat into their websites, in order to combine the
wide reach and cost efficiencies of ________ with the individualized touch of
________.
A) digital questionnaires, downloadable media
B) online promotion, personal selling
C) mass customization, social promotion
D) pop-up advertisements, individual reflection
E) niche marketing, consumer-sensitive retailing
Janet teaches the first grade at Meadows Elementary on Monday, Wednesday and
Friday. Jeff teaches the class on Tuesday and Thursday. They split the salary and
benefits of the job on a pro-rata basis. In this example, the human resource team at
Meadows Elementary uses which of the following alternative work arrangements?
A) job sharing
B) cross-training
C) flextime
D) performance monitoring
E) succession planning
Aligning the workforce refers to ________.
A) making jobs more challenging and interesting by expanding the range of skills
required
B) helping employees balance the competing demands of their personal and
professional lives
C) improving overall work environment
D) training workers to perform multiple jobs
E) matching the right employees to the right jobs at the right time
________ is a concept that refers to the finite supply of resources.
A) Redundancy
B) Scarcity
C) Deficit
D) Stringency
E) Shortage
Sterling Fashions, an apparel manufacturer, sells women’s clothes and fashion apparel
in its stores across the U.S. and Canada. Following extensive market research, the firm
decides to manufacture and sell women’s footwear and designer handbags in its existing
markets. In this example, Sterling Fashions uses which of the following strategies?
A) market penetration
B) decentralization
C) market development
D) diversification
E) product development
Go to a web site that allows you to maintain a virtual portfolio (Example: Yahoo).
Create a diversified portfolio in the web site.
What is a virtual team?
Compare and contrast the perspective of a business professional with that of a
consumer.
Compare and contrast the minimalist and the purely cynical perspective on corporate
social responsibility.
Compare and contrast mission statements, vision statements, and values statements.