Savings and loan associations are not-for-profit, member-owned cooperatives that focus
on offering home mortgage loans.
A license is an agreement to produce and market another company’s product in
exchange for a royalty or fee.
Financial accounting is concerned with preparing cost analyses, profitability reports,
budgets, and other information for insiders such as management and other company
decision makers.
At one time or another, all consumers suffer from cognitive dissonance.
Sexism refers to discrimination on the basis of gender.
An investor buys a right and obligation when he or she buys an option.
Funds that invest in foreign and U.S. securities are called international funds.
Layoffs involve terminating employees because of poor performance or other
disciplinary reasons.
Intrapreneurship is a term coined by business consultant Gifford Pinchot to designate
entrepreneurial efforts within a larger organization.
Offshoring is moving processes to markets that are closer to home in order to minimize
transportation and management costs.
In general, accounting managers are responsible for planning, while financial managers
are responsible for monitoring and reporting.
________ services, such as resume-writing courses, career counseling, and secretarial
assistance are offered to laid-off employees by many companies.
A) Rightsizing
B) Termination
C) Coaching
D) Affirmative action
E) Outplacement
The number of units of one currency that must be exchanged for a unit of the second
currency is known as the ________ between the currencies.
A) balance payment
B) trading bloc
C) tariff rate
D) exchange rate
E) trade balance
Wants differ from needs in that wants ________.
A) are more specific
B) are independent of culture
C) create demand for products
D) are the focus of marketing efforts
E) are independent of a person’s experiences
Which of the following is an example of a fixed cost that businesses have to incur?
A) cost of raw materials
B) cost of supplies
C) shipping costs
D) sales commissions
E) cost of building plants
Eight women, with children within the age range of 3 to 7 years, participated in a panel
discussion conducted by the marketing department of Ecospace Beach Resorts, based in
California. The facilitator asked the women what amenities they wanted in a resort
when they go on a vacation. They were also asked to discuss which facilities made a
resort more convenient for people with young children. In this example, Ecospace
Beach Resorts uses which of the following methods?
A) survey
B) ethnographic research study
C) focus group
D) process data collection
E) neuromarketing study
In a country, the government owns many of the key industrial sectors, such as
transportation, health care, and communications. Private ownership, however, is
allowed in other industries. What type of economic system does this country have?
A) communism
B) capitalism
C) free-market economy
D) socialism
E) totalitarianism
Which of the following statements is TRUE of a company’s inventory?
A) It is an example of a long-term asset that companies hold.
B) It is the most liquid current asset of a company.
C) It has the potential to be converted to cash.
D) It is classified under accounts receivable.
E) It is not associated with costs when it is waiting to be sold.
Which of the following is a tool available to the Fed to manage the money supply?
A) federal insurance scheme
B) federal funds rate
C) national credit union
D) deposit insurance
E) credit rating agencies
Woodworks Inc., an American furniture manufacturing company, has stores across
America that sell furniture. The firm offers the Fine Furnishings collection of residential
furniture designed for the middle-income and upper-middle-income group segments. It
offers a Platinum Collection of luxury furniture for high-income groups. The firm also
has a range of corporate office furniture that includes desks, chairs, filing cabinets,
cubicles, and other office furniture. Woodworks Inc. uses which of the following
targeting strategies?
A) mass marketing
B) differentiated marketing
C) concentrated marketing
D) individualized marketing
E) niche marketing
R&M Group, a consumer products company based in Libya, conducted a market
research. The research indicated that there was a lack of branded soft drinks in the
market, even though there were several local soft-drink manufacturers. The company
purchased the right to produce and distribute soft drinks of Fizzpop, Inc.(a leading U.S.
based soft-drinks firm). R&M Group also sources the supplies from Fizzpop, Inc. to
ensure that the taste of the product remains the same. In this scenario, which of the
following business methods does R&M Group use?
A) joint venture
B) shakeout
C) vertical integration
D) manufacturing franchise
E) delayering
Credit derivatives are used to ________.
A) reduce a lender’s exposure to risk
B) link liabilities to a federal agency
C) hedge against exchange rate shifts
D) link assets to a federal agency
E) avoid obligations to buy or sell assets
Which of the following is an example of whistle-blowing?
A) An employee discloses confidential information about the company to a rival firm
for personal gain.
B) An employee suggests some process changes to his manager that he claims will
increase the productivity of the team.
C) An employee avoids taking ownership of his mistakes by blaming it on his
co-workers.
D) An employee informs the manager that some of his team members are misusing
confidential customer details from the company database.
E) An employee who is unsatisfied with his performance appraisal requests his manager
for a re-evaluation of his performance.
The defining characteristic of ________ is that it tells past customers that a product is
still available or a company is ready to serve their needs.
A) reminder advertising
B) cooperative advertising
C) bait and switch advertising
D) comparative advertising
E) advocacy advertising
________ refers to a situation in which a lender takes possession of a home after the
borrower defaults on his or her mortgage payments.
A) Liquidity crisis
B) Foreclosure
C) Securitization
D) Credit freeze
E) Negative amortization
In a(n) ________, employees don’t have to be members when they are hired, but they
must join the union within a specified period of time.
A) open shop
B) union shop
C) closed shop
D) agency shop
E) voluntary shop
Which of the following is a defining characteristic of distributors?
A) They do not take title to the goods they distribute.
B) They take ownership, but not physical possession, of the goods they handle.
C) They sell various noncompeting products to customers in a specific region.
D) They complete or customize solutions for customers.
E) They sell products to organizational customers for internal operations or the
production of other goods.
One of the key differences between arbitration and the civil justice system is that in
arbitration the ________.
A) arbitration cannot be used for alternative dispute resolution
B) employer gets preference over the employee union
C) union and the employer get to select the arbitrator
D) employee union gets preference over the employer
E) decisions made through arbitration are not legally binding
The ________ depicts the relationship between prices and quantities that sellers will
offer for sale, regardless of demand.
A) demand curve
B) supply curve
C) equilibrium point
D) business cycle
E) competitive analysis
In a ________, the raider launches a public relations battle for shareholder votes,
hoping to enlist enough votes to oust the board and management.
A) guerilla blitz
B) proxy fight
C) tender offer
D) direct offer
E) white knight tactic
Stocks that sell for less than one dollar per share or stocks that are highly speculative
are called ________ stocks.
A) penny
B) income
C) defensive
D) cyclical
E) mid cap
Creating new goods and services for a firm’s current markets is called ________.
A) market penetration
B) product development
C) market development
D) diversification
E) pure play
Jefferson Accounting is an independent accounting firm that provides auditing services
for public companies. The firm thoroughly evaluates its clients’ financial statements and
certifies them. The firm is a(n) ________.
A) forensic auditor
B) cost accountant
C) external auditor
D) domestic auditor
E) financial analyst
Hamilton Manufacturing Group manufactures stationary products such as various types
of pens, papers, pencils, paper clips, etc. The firm tries to place a product in as many
outlets as possible. Hamilton Manufacturing Group works with wholesalers and
retailers of many types to ensure that their products have a wide market coverage.
Hamilton Manufacturing Group uses which of the following strategies?
A) intensive distribution
B) selective distribution
C) multichannel retailing
D) exclusive distribution
E) disintermediation
Employee benefits refer to ________.
A) pay tied to an employee’s acquisition of knowledge or skills
B) tying rewards to profits or cost savings achieved by meeting specific goals
C) compensation other than wages, salaries, and incentive programs
D) employee compensation based on a percentage of sales made
E) a cash payment, in addition to regular wage or salary, that serves as a reward for
achievement
The first step in a decision-making process is to ________.
A) generate options or alternatives
B) select the best or optimum option
C) recognize and define the problem
D) implement the decision
E) monitor the results
What are diversity initiatives?
Why is being a team player an important aspect of professionalism?
What is shareholder activism?
You work for a European company that is planning to launch business in the United
States. The firm is planning to incorporate the new business as a partnership with a
domestic firm in the U.S. Present the arguments for changing the company’s decision
and incorporating the business as a corporation.
When can an employee file a wrongful discharge lawsuit against the employer?
Explain the importance of the Landrum-Griffith Act.
Discuss the implications of stealth marketing for business communication transparency.
Compare and contrast wholesalers with retailers.
Compare and contrast creating a new, independent business with buying into a franchise
system.
A group of six entrepreneurs are starting a paper-manufacturing unit. The owners have
contributed $20,000 and have availed a long-term loan of $15,000. Use zero-based
budgeting to create a launch budget for this firm. Make necessary assumptions and list
all the assumptions that you are making.