Product mix is a complete list of all products that a company offers for sale.
Consumers make all kinds of decisions that are hard to explain by any rational means.
The growth of online retailing has lagged store-based retailing in recent years.
“Environmental” causes are often as much about human health and safety as they are
about forests, rivers, and wildlife.
With a zero-coupon bond the purchaser buys the bond at a discount from the face value.
Negative reinforcement and punishment are the same thing.
A business can use short-term financing to cover current expenses. Typically, short-term
financing will be repaid in one year.
Theory X-oriented managers believe that most employees are motivated by intrinsic
rewards.
The period of time that elapses between placing an order and actual receipt is the
product’s lag time.
Progressive discipline usually starts with a written warning or a suspension without pay.
Derivatives are contracts whose value is derived from some other entity.
Drop shippers take legal title to and possession of goods from a producer and then resell
those goods to retailers or organizational buyers.
Treasury notes are debt securities issued by the federal government that are repaid
within 1 to 10 years after issuance.
The AIDA model, a classic approach to promotional communication, consists of four
steps: stimulating Anxiety, encouraging Introspection, increasing Determination, and
promoting Activity.
A union insists that the organization must hire workers only if they are union members.
This union is implementing a union shop.
Owners’ equity refers to the total assets of a company.
Bookkeeping is the clerical function of recording the economic activities of a business.
The primary function of distribution channels is delivering value to producers, so
channel strategy decisions should start with producers’ needs and expectations.
Order processing involves preparing orders for shipment and receiving orders when
shipments arrive.
________ are estimates of future demand for a company’s products.
A) Operation plans
B) PERT reports
C) Resource plans
D) Critical paths
E) Production forecasts
________ is a legislation passed in 1935 that established labor relations policies and
procedures for most sectors of private industry.
A) Labor-Management Relations Act
B) National Labor Relations Act
C) Norris-La Guardia Act
D) Landrum-Griffin Act
E) Labor-Management Reporting Act
In a sole proprietorship, the owner ________.
A) obtains limited liability protection on the business’s actions
B) is taxed more than once for the income generated
C) and the business are legally inseparable
D) has lesser responsibility compared to other forms
E) does not have personal liability for the transactions of the business
When demand for goods and services drops, businesses reduce production, thereby
requiring fewer workers. The unemployment resulting because of this phenomenon is
known as ________ unemployment.
A) intrinsic
B) cyclical
C) structural
D) seasonal
E) frictional
John’s Apparel is a tailoring shop that manufactures custom-made dresses for special
occasions and festivals. While ordering raw materials, John estimates that he would sell
500 Santa Claus lawn decorations in November. In this case, John is performing a(n)
________.
A) production forecast
B) capacity planning
C) PERT analysis
D) resource planning
E) critical path analysis
A country can assist its domestic producers by implementing ________ such as special
business licenses and limiting foreign companies’ access to them.
A) export subsidies
B) embargos
C) import quotas
D) tariffs
E) restrictive import standards
Alpha Laboratories, a global pharmaceuticals company, groups its employees into
several departments such as research and development, regulatory affairs, production,
quality control, quality assurance, and sales & marketing. Employees are grouped by
specialization to allow for the efficient use of resources and encourage the development
of in-depth skills. Alpha Laboratories is most likely to have a(n) ________.
A) divisional structure
B) matrix structure
C) functional structure
D) virtual structure
E) network structure
At Meyer Department Store, employees are encouraged to make certain decisions
without consulting their managers. For example, cashiers are allowed to make price
adjustments for customers without consulting the store manager as long as the amount
of the adjustment is less than $10. Meyer Department Store is most likely to have which
of the following organizational structures?
A) departmentalized decision making
B) structured decision making
C) decentralized decision making
D) informal organization
E) tall organization
A promotional strategy that directly stimulates consumer demand via advertising and
other communication efforts is known as ________.
A) pricing strategy
B) push strategy
C) digital strategy
D) pull strategy
E) operations strategy
Research and development is carried out usually during the ________ stage of product
development.
A) maturity
B) introduction
C) growth
D) saturation
E) intensification
The new social model of customer communication differs from the conventional
promotion model in that the social communication model ________.
A) is unidirectional and intrusive
B) is hierarchical and static
C) views audiences as passive recipients of messages
D) is interactive and conversational
E) broadcasts carefully scripted messages to a mass audience
Cost-based pricing ________.
A) uses a software to generate the ideal price for each item
B) introduces a new product at a very low price
C) is based on customer perceptions of cost
D) doesn’t consider factors such as customer demand
E) uses a high price for a new product during the introductory stages
Well-known examples of ________ include Taco Bell, Pizza Hut, The UPS Store, and
Curves fitness centers.
A) product franchises
B) business franchises
C) manufacturing franchises
D) global franchises
E) discount franchises
The Federal Trade Commission (FTC) is charged with which of the following duties?
A) overseeing communication by telephone, telegraph, radio, and television
B) regulating and overseeing carriers engaged in interstate transportation
C) enforcing laws and regulations to prevent distribution of harmful foods and drugs
D) protecting the national transportation infrastructure
E) enforcing laws regarding unfair business practices and deceptive advertising
Incobar Steel is a large manufacturer of steel. The company decides to issue bonds to
raise money to expand its operations. The final maturity term of the bonds is three
years, but a portion of the outstanding bonds matures once in every six months. The
bonds are backed only by the corporation’s promise to pay. The bonds that Incobar Steel
is issuing are best referred to as ________ bonds.
A) mortgage
B) callable
C) term
D) secured
E) serial
________ are those activities in which a company excels and has the potential to create
competitive advantages.
A) Core competencies
B) Span of management
C) Cost leadership
D) Economies of scale
E) Value chain
Which of the following statements is TRUE of the long-term trends observed in
organized labor?
A) Labor unions have become stronger in private sector than in public sector.
B) Businesses have become tolerant to unionization in workplaces.
C) The trend has been against unions in the private sector.
D) Unions have been eradicated fully from the public sector.
E) Labor unions have become stronger in both public and private sectors.
Charles buys a house and waits till its value rises. He then resells the house to make a
big profit. This act of making profit by reselling is referred to as ________.
A) swapping
B) flipping
C) retrenching
D) vaulting
E) catapulting
Banks that provide financial services to consumers are called ________.
A) loan associations
B) retail banks
C) thrift banks
D) credit unions
E) merchant banks
Corporate officers are the ________.
A) people who elect directors of a company
B) official representatives of shareholders
C) top executives who run a corporation
D) middle level managers of a corporation
E) lower level employees of an organization
Andy, an entrepreneur, plans to open a bakery in his neighborhood. He realizes that
there are no branded bakeries in the locality, even though there are a number of
independent bakeries. He approaches Soft Bakes, an international bakery chain, and
signs an agreement with them that gives him the right to open a bakery shop that uses
Soft Bakes’ name and management methods. In this scenario, which of the following
business methods does Andy use?
A) business-format franchise
B) joint venture
C) shakeout
D) vertical integration
E) delayering
Almex is a U.S. based transportation company. In order to enter the Brazilian
transportation market, the company purchases one of the leading transporters in Brazil.
This strategy is known as ________.
A) operational licensing
B) service exporting
C) foreign direct investing
D) brand licensing
E) outstation franchising
Agents differ from merchant wholesalers in that agents ________.
A) take legal title to goods they distribute
B) never actually own the products they handle
C) take ownership, but not physical possession, of the goods they handle
D) provide a wide variety of services, such as storage, selling, order processing,
delivery, and promotional support
E) set up displays in retail outlets, stock inventory, and perform other services such as
marking prices on merchandise
What are the functions of HR specialists and managers? How has the role of the HR
function changed over time. Compare it with the functions of a chief information
officer.
Discuss some of the contemporary staffing challenges.
Compare and contrast personal selling with consultative selling.
What is load? What are no-load funds?
Discuss banks and microlenders as sources of private financing. How does it differ from
seeking funds by going public?