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For goals to function as a motivator, the employee must believe in his or her ability to
meet that goal.
Capital is the collective intelligence of an organization.
Secured loans are backed up with assets that the lender can claim in case of default.
A goal is a broad, long-term accomplishment that an organization wants to achieve.
Debentures are backed by specific assets that will be given to bondholders if the
borrowed amount is not repaid.
Pay for performance requires employees to accept a lower base pay but rewards them
with bonuses, commissions, or stock options if they reach agreed-upon goals.
Grievance is an informal complaint made to the immediate supervisor.
When a supermarket provides fresh, ready-to-eat dishes as an alternative to buying all
of the ingredients needed to make dinner, it is creating place utility.
The International Brotherhood of Electrical Workers is an example of an industrial
union.
GDP considers who is responsible for the production; GNP considers where the
production occurs.
Treasury bonds are short-term debt securities issued by the federal government that are
repaid within a year.
According to the FTC, you can support claims for your product by offering a
money-back guarantee or providing letters from satisfied customers.
The value assigned to each share of stock when it is first issued is known as its book
value.
A company that hires an outside firm to do its accounting and payroll function is
outsourcing that function.
Turnover rate refers to the percentage of the workforce that is hired every year.
Inventory represents a cost while it is waiting to be sold.
Making sure you have what you need no earlier than when you need it is known as
just-in-time inventory management.
Arbitration is a process in which an impartial referee listens to both sides and then
makes a judgment by accepting one side's view.
Scalability is the potential to increase production by expanding or replicating its initial
production capacity.
Claire holds the position of chief information officer (CIO) position at Celera Inc., a
real estate company. Her position indicates that she is responsible for the preparation of
income statements and balance sheets.
________ laws limit what businesses can and cannot do to ensure that all competitors
have an equal chance of succeeding.
A) Fiscal
B) Discrimination
C) Antitrust
D) Stabilization
E) Equilibrium
Which of the following is a major advantage of raising funds through selling shares of
ownership?
A) Selling shares to the public makes the company's operations less complicated.
B) It does not change the way a company is managed.
C) It consumes less time than other forms of financing.
D) It has tremendous potential to fuel organizational growth.
E) Owners do not risk their position in the firm when selling shares.
The Sarbanes-Oxley Act outlaws ________.
A) loans by corporations to their own executives
B) the use of external auditors
C) internal financial tests by companies
D) loans obtained through pledging assets
E) having financial experts in the director board
________ taxes, levied on the earnings of individuals and businesses, are the
government's largest single source of revenue.
A) Income
B) Property
C) Sales
D) Excise
E) Payroll
A ________ gives a franchisee the right to produce and distribute the manufacturer's
products, using supplies purchased from the franchisor.
A) product franchise
B) business-format franchise
C) manufacturing franchise
D) licensed franchise
E) utilitarian franchise
Organizations can promote systems thinking by ________.
A) showing people how they contribute to the overall goal
B) implementing output-based individual incentives
C) restricting interactions at the subsystem level
D) giving them direct solutions from the top
E) implementing output-based incentives for small teams
A firm wants to enter foreign markets to expand its business. However, it does not want
to make significant investments before assessing foreign conditions. Which of the
following strategies is best suited to enter a foreign market slowly and then design the
firm's product offerings?
A) foreign direct investment
B) exporting
C) business merger
D) joint venture
E) franchising
Which of the following terms refers to a formal complaint against an employer?
A) arbitration
B) boycott
C) grievance
D) mediation
E) injunction
________ refers to establishing the overall level of resources needed to meet customer
demand.
A) Production planning
B) Facility analysis
C) Capacity planning
D) Process control
E) Critical path analysis
The Asia Pacific Economic Cooperation Council's long-term goal is ________.
A) imposing tariffs and quotas on imports to the land areas that surround the Pacific
Ocean
B) protecting the pacific rim from the perils of international trade
C) liberalizing and simplifying trade and investment among member countries
D) preventing the trade of destructive goods such as arms and ammunition
E) preventing terror attacks and other organized crime in the land areas that surround
the Pacific Ocean
Keri Sears uses the funding platform Kickstarter to solicit money to start a
not-for-profit organization that promotes folk musicians and revives interest in the folk
and traditional forms of music in America. She invites people to fund the business
project and she states that donors will be honored on the organization's website. She
sets a six-month goal to raise the money. Keri is using which of the following forms of
financing?
A) angel investors
B) business incubator
C) threshold pledge system
D) fund and release system
E) crowdfunding
Which of the following is a key difference between mediation and arbitration?
A) Mediation involves a third party, whereas arbitration is performed without third
parties.
B) Arbitrators give suggestions, whereas mediators give directives.
C) Mediation is compulsory, whereas arbitration is voluntary in nature.
D) Arbitration provides a legally binding settlement, whereas mediation is not binding.
E) Mediation has a win-lose orientation, whereas arbitration has a win-win orientation.
Which of the following arguments supports the idea of free trade?
A) Dumping rules and tariffs should be stricter in developing countries.
B) International trade must take place without any interference.
C) Organizations should prefer local workers to foreign workers.
D) Local businesses should obtain help from governments.
E) Governments should subsidize exporters to promote global trade.
One of the valuable services that a wholesaler might perform is ________, in which it
receives large shipments from the producer and then sells smaller quantities to retailers.
A) rack jobbing
B) drop shipping
C) bundling
D) breaking bulk
E) system integration
A situation in which you must choose between two conflicting but arguably valid
alternatives would be known as a(n) ________.
A) insider trading
B) ethical lapse
C) corporate opportunity
D) ethical dilemma
E) conflict of interest
Activity ratios analyze ________.
A) how well a company is making use of its assets
B) a firm's ability to pay its short-term obligations
C) a firm's ability to pay its long-term obligations
D) the leverage status of a company in question
E) the extent to which a business is financed by debt
Compare and contrast full-service merchant wholesalers with limited-service merchant
wholesalers.
Explain the significance of procurement in a business.
Compare and contrast the Wagner act of 1935 and The Taft-Hartley Act of 1947.
What is market segmentation. List the four fundamental factors marketers use to
identify market segments.
Explain the concept of price elasticity.
What is GAAP?
Briefly describe the organizing function of management.
Explain why businesses use factoring to raise funds.
What are economic indicators?
Compare and contrast intensive distribution with selective distribution.
