Companies attempt to increase the market valuation of a share by ________.
A) repurchasing some of the shares through a stock buyback
B) maintaining a lower than average price/earnings ratio
C) announcing a stock split of its shares
D) dividing the shares into multiple shares
E) reducing the percentage of dividend being paid out to investors
________ plans outline the firm’s long-range (often two to five years) organizational
goals and set a course of action the firm will pursue to reach its goals.
A) Tactical
B) Operational
C) Strategic
D) Short-term
E) Contingency
Which of the following is an example of a variable cost that businesses have to incur?
A) insurance premiums
B) real estate taxes
C) unit-based incentives
D) employee salaries
E) mortgage payments
The North American Free Trade Agreement (NAFT
A) was formed by the United States, Canada, and ________.
A) Costa Rica
B) Jamaica
C) Cuba
D) Mexico
E) Honduras
Which of the following is a business oriented service that helps business owners raise
money to launch or expand companies?
A) CashKing
B) MoMoney
C) Kickstarter
D) Crowdfunder
E) StartUpDaddy
Which of the following is an advantage of using newspapers as an advertising media?
A) long lead time for placing ads
B) low visual competition from other ads
C) extensive market coverage
D) long life span
E) printed papers have rapidly increasing readership in most cities
The institution that actually provides the money for an SBA-backed loan is the
________.
A) venture capitalist
B) bank
C) SBIC
D) business incubator
E) IPO
________ refers to the arrangement of production work centers and other elements
needed to process goods and services.
A) Supply chain
B) Facility layout
C) Capacity plan
D) Critical path
E) Production forecast
Which of the following is a main feature of protectionism?
A) high levels of risks for domestic industries
B) increased risk for local workers
C) compromise on national security
D) governmental intervention in trade
E) formation of trade blocs between nations
In a regulated monopoly, ________.
A) prices are set by government mandate
B) no single firm can grow large enough to influence prices across the market
C) firms that excel in one or more aspects can gain some control over pricing
D) individual firms can have considerable control over pricing
E) suppliers can charge as much as they want, at least until people stop buying
Because they fundamentally change the nature of an industry, ________ can be
powerful enough to create or destroy entire companies.
A) adaptive technologies
B) disruptive technologies
C) apocryphal technologies
D) incremental technologies
E) innovative technologies
Jass Glass Studio has been hired to make a church window. A church hires the company
to make ten windows based on a design provided by the Church. This is an example of
________.
A) mass production
B) batch production
C) customized production
D) mass customization
E) standard production
Using a brand name on a variety of related products is known as ________.
A) brand filling
B) brand extension
C) line extension
D) family branding
E) brand stretching
________ refer(s) to intermediaries that sell products to other intermediaries for resale
or to organizations for internal use.
A) Retailers
B) Wholesalers
C) Department store
D) Specialty store
E) Convenience store
Which of the following statements is TRUE of strategic alliances?
A) Establishing strategic alliances have more legal requirements than mergers and
acquisitions.
B) Strategic alliances attract more work than other forms of business.
C) Strategic alliances are not an effective way to collaborate.
D) Establishing strategic alliances involves more risks than other forms.
E) Strategic alliances don’t create a unified entity with a single management structure.
The Civil Rights Act of 1991 amended the original act, and ________.
A) provided for unlimited amount of damage awards
B) made it mandatory for private firms to employ persons from minority groups
C) made it tougher to sue for discrimination
D) gave employees the right to have a trial by jury in discrimination cases
E) made it mandatory for the government to subsidize programs based on race
The purpose of issuing a prospectus during a public stock offering is to ________.
A) validate the corporate bonds issued by them
B) provide information to the underwriters
C) disclose information to the SEC
D) create opportunities for debt financing
E) obtain short-term financing from institutions
A country’s balance of payment equals the ________.
A) money spent on procuring services minus money spent on procuring goods
B) total flow of money into the country minus the total flow of money out of the
country
C) gross domestic product of the country minus the gross national product of the
country
D) money spent on producing services minus money spent on producing goods
E) money spent on buying goods minus money spent on producing goods
Polar Refrigerator Company reduces its inventory carrying costs by having their
vendors deliver materials right before they are needed in the production process. This is
an example of ________ inventory management.
A) discounted
B) PERT
C) JIT
D) buffered
E) economic order based
Barbara decided to open an independent bookstore. However, after careful
consideration, she decided to purchase an existing bookstore called BookStop from an
owner who was retiring. Which of the following statements, if true, is most likely to
make Barbara’s business successful?
A) Barbara decides to change the layout of the bookstore and repaint the walls.
B) The government increases the taxes on small businesses.
C) Barbara decides to reduce the freedom given to the existing employees by the
previous owner of BookStop.
D) Barbara does not like the existing business processes and systems, so she decides to
build them from scratch.
E) BookStop was a profitable business with many loyal customers.
M&K Wholesalers, owned by Jonathan McCloud, sells rough lumber to furniture
manufacturers. M&K Wholesalers take ownership, but not physical possession, of the
goods they handle. The firm does not keep goods in stock, but instead transfers
customer orders and shipment details to American Timber and Lumber Inc., a producer
and manufacturer of quality hardwood lumber. M&K Wholesalers can be classified as
________.
A) brokers
B) drop shippers
C) agents
D) value-added resellers
E) manufacturers representatives