Organization structure is a framework that enables managers to divide responsibilities,
ensure employee accountability, and distribute decision-making authority.
The ethnic composition of the United States has been on a long-term trend of
decreasing diversity.
The new social model of customer communication is unidirectional and intrusive.
The term stakeholders refers only to those people who have invested money in the
company’s stock.
Non-bank companies that use their own funds to offer mortgages are known as
mortgage brokers.
Productivity is the measure of the efficiency at which an organization can convert
inputs into outputs.
Successful marketers try to identify sources of competitive advantage and areas that
need improvement.
Frictional unemployment is caused by economic fluctuations.
A firm uses the brand of an existing product on a new product in a different new
category. This is an example of line filling.
A solution obtained through mediation is legally binding.
Sarbanes-Oxley Act prohibits companies from testing their internal financial controls
and processes.
Capacity planning is not directly linked to estimation of future demand.
Tariffs are politically motivated restrictions that revoke a company’s normal trade
relations status.
Assets refer to the tangible economic resources owned by a firm.
Typical service businesses tend to ________.
A) operate as not-for-profit enterprises
B) rely more on human resources to prosper
C) use a command-and-control operational strategy
D) depend on property, machinery, and equipment to prosper
E) be resistant to using customer feedback to change the way they do business
________ refers to how the various business functions and work specialties are divided
across the company.
A) Hybrid structure
B) Line structure
C) Line-and-staff structure
D) Vertical structure
E) Horizontal structure
People who monitor social media to spot shifts in consumer tastes are called ________.
A) social arbitrators
B) trend watchers
C) crowd pullers
D) social developers
E) social programmers
The period of time between placing an order for supplies and receiving the material is
called ________.
A) process forecast
B) run time
C) lead time
D) lag time
E) procurement delay
Which of the following is the most important purpose of issuing a stop order?
A) restricting the possible losses an investor is likely to incur
B) buying a stock if its price reaches a certain level
C) buying stock even without having adequate capital
D) buying a stock if its price falls below a certain level
E) minimizing the brokerage fee on a particular transaction
A(n) ________ is a graph showing the relationship between the amount of product that
buyers will purchase at various prices, all other factors being equal.
A) supply curve
B) inflation rate
C) demand curve
D) deflation rate
E) competitive balance
Which of the following statements is TRUE about the consumer decision process?
A) Behavioral economics suggests that consumer behavior follows a completely
rational process.
B) Cognitive dissonance refers to the delivery of marketing messages to people who are
not aware that they are being marketed to.
C) Companies, government agencies, and other organizations that buy goods and
services are a part of the consumer market.
D) Many consumers tend to believe that “you are what you buy,” so they make or avoid
choices that support their desired self-images.
E) Aspirational reference groups are those to which consumers actually belong, such as
families, networks of friends, clubs, and work groups.
Which of the following is a key feature of a supermarket?
A) It is a store that offers a complete selection in a narrow range of merchandise.
B) It is a large outlet store that sells discontinued items, overruns, and factory seconds.
C) It is a web-based store that offers anything from a single product line to
comprehensive selections in multiple product areas.
D) It is a large, self-service store that offers a wide selection of food and non-food
merchandise.
E) It is a store that sells designer labels and other fashionable products at steep
discounts.
________ agreements entitle one company to use some or all of another firm’s
intellectual property in exchange for a royalty payment.
A) Joint venture
B) Exporting
C) Franchising
D) Licensing
E) Strategic alliance
TechSource Inc. is a wholesaler of electronic components, such as connectors and
semiconductors. The firm purchases electronic components directly from technology
manufacturers, has physical possession of the products, takes legal title to the goods,
and then resells it to organizational customers for internal operations or the production
of other goods. TechSource Inc. does not sell products to retailers for resale.
TechSource Inc. can be classified as a(n) ________.
A) drop shipper
B) manufacturers’ representative
C) agent
D) distributor
E) broker
An overall environment that results from job and work conditions is called ________.
A) ergonomics
B) work-life balance
C) quality of work life
D) job enrichment
E) employee turnover
________ encompasses a wide variety of nonsales communications that businesses
have with their many stakeholders, including communities, investors, industry analysts,
government agencies, and activists.
A) Push strategy
B) Trade allowances
C) Brand communities
D) Public relations
E) Pull strategy
Which of the following terms refers to a formal evaluation of the fairness and reliability
of a client’s financial statements?
A) cost accounting
B) audit
C) control
D) bookkeeping
E) management accounting
Private equity refers to ________.
A) shares that are owned by institutions rather than individuals
B) ownership assets that aren’t publicly traded
C) preference shares issued by a corporation
D) shares that are traded in stock exchanges
E) shares that are owned by individuals rather than institutions
Prototypes are ________.
A) layouts used in the design of a product
B) analysts who screen product ideas
C) tools used to design a new product
D) preproduction samples of products
E) networks used in the commercialization of products
Which of the following is an example of a company’s asset?
A) inventory in the warehouse
B) mortgage loans
C) bonds issued by the company
D) short-term loans
E) debt security raised by the company
Which of the following is a principle that governs the world trade organization’s work?
A) giving preference to trading partners who provide maximum business
B) protecting domestic industries by offering financial assistance
C) making trade policies more predictable and less arbitrary
D) establishing dumping procedures to prevent pollution in developed countries
E) implementing protectionist ideologies to establish fair trade between nations
Natural resources such as lumber, grain and coal are usually marketed through
________ who take ownership but not physical possession of the goods.
A) manufacturers’ representatives
B) brokers
C) rack jobbers
D) drop shippers
E) agents
Charles Associates is an accounting firm that provides accounting services to many
companies across the United States. The company follows an accounting system where
it records revenue only when the money is actually received. Identify the accounting
system that this company is using.
A) depreciation
B) deferral basis
C) accrual basis
D) profit basis
E) cash basis
The recession in 2007 was caused due to ________.
A) poor performance of the automobile sector
B) a fall in imports to the United States
C) an unstable housing market
D) a fall in foreign direct investments
E) the slow growth of manufacturing industries
A company helps develop the workforce by supporting job-training efforts. This is an
example of ________.
A) strategic CSR
B) cap and trade
C) sustainable development
D) philanthropy
E) affirmative action
________ refers to buying goods or services from a supplier in another country.
A) Franchising
B) Importing
C) Licensing
D) Partnering
E) Intermediating
The technology known as ________ attaches small antenna tags to products or shipping
containers to help the company track where needed materials are in its supply chain.
A) WiFi intelligence (WFI)
B) resource identification protocols (RIP)
C) ISO informatics (ISOI)
D) just-in-time systematics (JITS)
E) radio frequency identification (RFID)
Unlike general philanthropy, strategic CSR ________.
A) promotes an antagonistic business-versus-society mindset
B) leads to weakening of both the business and the society
C) refers to CSR activities that are mandatory according to law
D) is aimed at specific sections of the society that have been historically discriminated
against
E) is more likely to be sustained over time
Compare and contrast convenience products, shopping products, and specialty products.
Compare and contrast a limited liability company and a benefit corporation.
Compare and contrast independent mortgage companies and mortgage brokers.
Cite an example of a person who holds a managerial position and categorize the various
activities that he or she performs into informational roles, decisional roles, and
interpersonal roles.