The legal systems in the United States and the United Kingdom are based on civil law.
Creating variations of an existing product is referred to as line stretching.
Funding a business with credit cards or a personal line of credit is extremely risky.
Leverage ratios indicate a company’s ability to pay its long-term debts.
Aspirational reference groups are those to which consumers actually belong, such as
families, networks of friends, clubs, and work groups.
Organizational culture refers to a set of shared values and norms that support the
management system and that guide management and employee behavior.
Commercial paper is an arrangement in which a financial institution makes money
available for use at any time after the loan has been approved.
Scarcity creates competition for resources, and forces trade-offs on the part of every
participant in the economy.
A vision statement is a brief description of a company’s present status in the market.
The accounts receivable turnover ratio is calculated by dividing sales by the average
value of accounts receivable for a period.
A financial plan outlines the funds needed for a certain period of time.
Financial analysis refers to combining accounting and investigating skills to assist in
legal and criminal matters.
The 360-degree review can uncover weaknesses that employees and even their direct
managers might not be aware of.
Conflict is a destructive force in an organization and should be avoided at all costs.
At the federal level, small businesses can apply for loans backed by the ________.
A) Center for Emerging Technologies
B) U.S. Chamber of Commerce
C) Service Corps of Retired Executives
D) Venture Capitalists Association (VCA)
E) Small Business Administration
Stores that specialize in Halloween costumes and decorations open in retail spots in
middle-class areas during the beginning of September. These stores typically sell
unusual items like animatronic witches, various stage props, as well as a range of
makeup, wigs, etc. They are temporary stores, and close shortly after Halloween. These
stores would be examples of ________.
A) pop-up stores
B) retail theaters
C) distributors
D) off-price stores
E) drop shippers
A company that takes positive steps to address a particular issue, but only because it has
been embarrassed into action by negative publicity, has a ________ CSR.
A) minimalist
B) defensive
C) strategic
D) proactive
E) cynical
Roder Industries is a multinational production firm. Invo Bank is the firm’s major
financier in the United States. The bank offers short-term loans to Roder at a very low
rate and the bank considers Roder to be its best customer. The interest rate the Invo
bank charges on these short-term loans are called ________ interest rate.
A) risk-based
B) deferred
C) prime
D) federal
E) inflationary
Froxer Electronics is an electronic appliance manufacturer. The company merges with a
food manufacturer to form a larger company. This is an example of a ________ merger.
A) product-extension
B) vertical
C) retail
D) market-extension
E) conglomerate
The manufacturers of Zap Deodorant, a newly launched brand of men’s deodorants,
decide to provide coupons for 50-cents off on all their products in the Sunday
newspaper. This is an example of what element in the communication mix?
A) conversation advertising
B) social media
C) public relations
D) personal selling
E) sales promotion
In your portfolio, you own 450 shares of General Electric. The company announces that
each share of stock is being divided into three new shares, so you now own 1,350
shares. This is known as a stock ________.
A) option
B) buyback
C) valuation
D) dilution
E) split
________ refer to debt securities issued by the federal government that are repaid more
than 10 years after issuance.
A) Treasury bonds
B) TIPS
C) Treasury notes
D) Municipal bonds
E) Treasury bills
A business plan outlines that investors will be able to sell their investment through a
public stock offering, or a buyback of the investors’ interest. This is an example of
which of the following elements of a business plan?
A) start-up schedule
B) operations plan
C) exit strategy
D) marketing strategy
E) target market
Justin M. Brown, the operations manager at Vernon Manufacturing Company,
formulated a strategy to motivate the firm’s employees. Justin addressed employee’s
dissatisfaction by increasing their salary and incentives; he employed several industrial
counsellors to help employees deal with work-related stress, and improved the health
insurance plan provided to employees. He also motivated employees by providing
greater opportunity for advancement; recognizing employees who perform well; and
giving employees greater responsibility to foster a sense of achievement in them.
Justin’s measures are based on which of the following approaches?
A) McClelland’s three needs theory
B) Theory X
C) Theory Y
D) Herzberg’s two-factor theory
E) scientific management
Shopper’s Paradise, a department store chain, was accused of working with contractors
who use sweatshop labor in their manufacturing units. The company was labeled as
promoting unethical business policies. To deal with these criticisms, the company
decides to make a large donation to a cancer research foundation, as well as sponsor a
health awareness program in the community. Shopper’s Paradise would be said to have
a ________ approach to CSR.
A) minimalist
B) strategic
C) proactive
D) defensive
E) philanthropic
The Fed decides to lower the discount rate offered to banks in the United States. This
would ________.
A) constrict economic activities
B) accelerate interest rates
C) slow down market activity
D) increase the money supply
E) reduce the availability of credit
Which of the following refers to evaluating a company’s performance and the economic
implications of strategic decisions such as product pricing, employee benefits, and
business acquisitions?
A) financial analysis
B) tax accounting
C) bookkeeping
D) cost accounting
E) forensic accounting
Toy Land, Inc. was criticized for selling toys that had lead paint and were proven to be
harmful for children. The company recalled several batches of toys. It responded to
these accusations by changing its logo to include a recycle theme, using advertisements
that promoted waste management and recycling, and providing Toy Land, Inc. branded
reusable shopping bags at their store. However, the firm did not undertake any specific
measures to avoid using toxic materials in its products. This is an example of ________.
A) proactive CSR
B) cynical CSR
C) minimalistic CSR
D) primary CSR
E) philanthropic CSR
Astral Inc., an office stationery manufacturing firm, has outsourced its engineering and
manufacturing functions to K&M Manufacturers, a company in Singapore. It has also
signed a two-year contract with Acme Solutions to handle its payroll and employee
benefits functions. Astral Inc. has a small headquarters in Ohio that is electronically
connected to the various firms to which it has outsourced functions. Astral Inc. is most
likely to have a(n) ________.
A) network structure
B) divisional structure
C) matrix structure
D) functional structure
E) informal structure
Which of the following is a defining characteristic of unstructured organizations?
A) It takes the virtual and networked organizational concepts to an extreme.
B) It decreases division of labor and work specialization.
C) It has a chain-of-command system that establishes a clear line of authority flowing
from the top down.
D) It involves grouping employees according to their skills.
E) It involves using product divisions, grouping departments around each of the
company’s products.
Gobex financial services is a multinational firm that has many branches across the
globe. The U.S. subsidiary of the firm assigns its accounting tasks to the Chinese
subsidiary. Lower labor costs enable the Chinese firm to perform the tasks more
efficiently. This is an example of ________.
A) offshoring
B) outsourcing
C) leveraging
D) customization
E) external valuation
________ refers to the increase in the value of a product with the number of customers
who use it.
A) Cognitive dissonance
B) Possession utility
C) Network effect
D) Positioning
E) Form utility
The Resource Recovery Act (1970) ________.
A) subsidizes pilot recycling plants
B) regulates treatment, storage, transportation, and disposal of hazardous waste
C) establishes a structure for coordinating all federal environmental programs
D) authorizes grants to states for water-pollution control
E) prohibits ocean dumping that could threaten human health or the marine
environment
Craft unions offer membership to workers ________.
A) who are not directly employed
B) with a specific skill
C) of the same age
D) with the same seniority
E) with a part-time membership
Which of the following is a leverage ratio?
A) inventory turnover ratio
B) debt-to-equity ratio
C) current ratio
D) acid-test ratio
E) accounts receivable turnover ratio
Harmony House, a software development firm, had recently hired a large number of
software developers to work on several new projects. Colleen, the manager of the
human resource department, wanted to assess the effectiveness of the recruitment team.
She used a combination of criteria (including the percentage of qualifications met and
subjective assessment by managers) to measure how closely newly-hired employees
met the company’s needs. Colleen is most likely to be using which of the following
tools?
A) quality of hire
B) employee satisfaction
C) utilization percent
D) job enrichment
E) outplacement
________ activities are intended to identify new ideas that have the potential to result in
new goods and services.
A) Capital-intensive
B) Regulatory
C) Research and development
D) Demographic
E) Economic
Compare and contrast sole proprietorships and general partnerships.
Select a manufacturing industry of your choice. Conduct a ratio analysis of three major
firms in the industry to determine and compare the activity ratios in the industry.
Analyze the results that you have calculated.
Compare and contrast the production of goods and services.
Compare and contrast technical skills and conceptual skills.
Compare and contrast surveys with interviews and focus groups.
Discuss the legal and regulatory environment of a business. How is it related to barriers
to entry? What kind of legal and regulatory environment do most businesses prefer?
Compare and contrast between monetary and fiscal policies.
Conduct a secondary research and estimate the balance of trade and balance of payment
for the United States.
Compare and contrast line organization and line-and-staff organization.