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The federal government recognizes a sole proprietorship as an independent taxable
entity.
Brand communities refer to formal or informal groups of people united by their interest
in and ownership of particular products.
While a network structure can lower costs and increase a company's flexibility, it can
also leave the company vulnerable to risks such as outside contractors going out of
business or offering the same goods and services to a competitor.
Social commerce refers to a type of information system that captures, organizes, and
capitalizes on all the interactions that a company has with its customers.
Ethnographic research refers to research that measures brain activity while customers
are viewing or interacting with product, Web site, or other elements.
According to what might be termed the minimalist view, businesses should be involved
in making social policy and spending the public's money.
Right-to-work laws promote the implementation of union shops to promote union
security.
Owner has limited personal liability for the business's financial obligations in sole
proprietorships.
Target customers are familiar with a brand and are likely to consider buying it. This
brand has high brand preference.
A country's balance of trade is the total value of its imports less the total value of its
exports.
Suppliers use futures contracts to protect themselves from future price decreases.
Celebrations Depot is a store that is only open for several weeks during the summer,
selling fireworks and decorations before the 4th of July. It is designed more as an
attention-getting event than as an ongoing retail operation. Celebrations Depot would
be an example of a convenience store.
Businesses can have both positive and negative effects on society.
A product line comprises all products from a single manufacturer.
Scheduling involves determining how long each operation takes and deciding which
tasks are done in which order.
First-line managers are those at the lowest level of the management hierarchy.
Corporate social responsibility (CSR) embodies the concept that a business has
obligations to society beyond the pursuit of profit.
Mr. White is a detergent brand. The brand is owned by Unitech, a company that
produces consumer products. Unitech uses the same brand for a new kitchen utensil that
the company is launching. Identify the product-line expansion method used in this case.
A) brand extension
B) brand stretching
C) line filling
D) line extension
E) line stretching
The CEO of a pharmaceutical firm learns that the FDA is going to deny approval for
one of the company's drugs. He knows this will have a negative effect on the company's
stock, so he quickly tells his broker to sell all of his shares of company stock before the
news is announced. This is an example of ________.
A) strategic CSR
B) whistle-blowing
C) utilitarianism
D) a code of ethics
E) insider trading
Majestic Shoes Inc., an international shoes and footwear manufacturing firm, groups its
customers according to the region in which they live. The firm markets its range of
waterproof, cold-weather footwear in mountainous regions. In this example, Majestic
Shoes Inc. uses which of the following targeting strategies?
A) demographic segmentation
B) psychographic segmentation
C) horizontal integration
D) cause-related marketing
E) geographic segmentation
When a downward swing or recession is over, the economy enters into a period of
________.
A) recovery
B) depression
C) contraction
D) stagnation
E) repercussion
Identify the action that is typically taken after a company has recognized a union.
A) union petition filing
B) NLRB inspection
C) collective bargaining
D) certification election
E) decertification election
No-load funds are mutual funds that ________.
A) do not charge sales commission
B) offer high rates of interest
C) offer low rates of interest
D) do not invest in equity shares
E) offer huge tax benefits to investors
________ include all the elements and processes from transforming raw materials to
making the final products available to the ultimate customer.
A) Customer chains
B) Supply webs
C) Value chains
D) Supply chains
E) Product cycles
Under ________ leadership, subordinates have little or no freedom to make decisions,
deviate from plans, or provide contrary input.
A) democratic
B) autocratic
C) laissez-faire
D) transformational
E) participative
The CEO of a company considers offshoring some of its production to another country
with lower labor costs. This decision would favor the company's customers who will
benefit from lower prices. The shareholders also stand to benefit from lower production
costs, which could increase sales, profits, or both, probably leading to increases in share
prices. However, some employees will lose their jobs, and morale is likely to suffer
among those employees who keep theirs. In this situation, the CEO faces a(n)
________.
A) ethical dilemma
B) ethical lapse
C) strategic CSR
D) defensive CSR
E) cognitive dissonance
Equity financing refers to arranging funding by ________.
A) borrowing money from institutions
B) selling corporate bonds
C) selling ownership shares
D) issuing commercial papers
E) borrowing money from individuals
Robert owns three restaurants in Atlanta. He pays taxes for the income from the
restaurants as his personal income. Robert's business is an example of a ________.
A) personal partnership
B) sole proprietorship
C) joint venture
D) small corporation
E) limited liability firm
A ________ CSR is one in which a company accused of irresponsible behavior
promotes itself as being socially responsible without making significant improvements
in its business practices.
A) minimalist
B) philanthropic
C) strategic
D) proactive
E) cynical
Which of the following regulatory agencies is responsible for monitoring the hiring
practices of companies and can require them to compensate individuals who have been
victimized by unfair hiring practices.
A) Federal Employment Commission (FEC)
B) Civil Rights Commission (CRC)
C) Employee Protection Commission (EPC)
D) Employment Regulatory Commission (ERC)
E) Equal Employment Opportunity Commission (EEOC)
Alfa Knowledge is a knowledge management firm. The company helps organizations
document and manage internal knowledge. The company has operations in seventeen
countries.Which of the following refers to a strength that Alfa Knowledge possesses?
A) The company has an early mover advantage in the market that it is operating.
B) The company is functioning in a low-growth industry.
C) The company has a patented technology for knowledge management.
D) The company is functioning in a high-growth industry.
E) The countries in which the company is operating were not affected by the economic
slowdown of 2009.
Hedging refers to forming contracts that allow a company to ________.
A) obtain funds for a short period without paying interest
B) buy supplies in the future at designated prices
C) finance long-term debt on a continuous basis
D) engage in buyer-seller relationships with many firms
E) issue letters of credit to buyers exterior to the home country
At Creative Solutions, an event management firm, employees are given ample creative
freedom, flexible work-timings, and they can choose their own working styles. The top
management of the firm believes that all employees enjoy meaningful work, and are
naturally committed to the firm's goals. Team leaders are advised not to use force,
control, or threats to motivate team members. The top management of Creative
Solutions is most likely to be using which of the following approaches?
A) Theory X
B) Hawthorne's effect
C) Scientific management
D) Expectancy theory
E) Theory Y
Which of the following is an example of disintermediation?
A) A manufacturing firm introduces a new line of products.
B) A manufacturing firm uses in-store marketing to help customers locate its products.
C) A manufacturing firm chooses retailers that can provide customer support for its
products.
D) A manufacturing firm closely monitors the activities of its retailers to ensure that its
brand image is not harmed.
E) A manufacturing firm supplies its products directly to the retailers, instead of selling
them to the wholesaler.
A stop order is an order to sell a stock when ________.
A) an order is placed by a specific buyer in the stock exchange
B) its price falls to a particular point
C) its p/e ratio crosses a certain level
D) brokerage cost is lower than a specified amount
E) overall price index of the stock exchange exceeds a certain amount
Brand preference means that people ________.
A) are not willing to accept substitutes for the product
B) will purchase the product if it is available
C) are willing to wait long for the product
D) are not willing to experiment with other brands
E) will buy the product only if it is availed in small numbers
Bonds issued by states, cities, and various government agencies to fund public projects
are known as ________.
A) treasury bonds
B) treasury bills
C) TIPS
D) treasury notes
E) municipal bonds
Kaizen refers to ________.
A) customization of production processes
B) continuous quality improvements
C) intensification of quality control
D) use of statistical process control
E) standardization of production processes
Advertising that seeks to create goodwill and to build a desired image for a company,
rather than to promote specific products is termed as ________.
A) product advertising
B) institutional advertising
C) comparative advertising
D) bait and switch advertising
E) reminder advertising
What is a team? How does a functional team differ from a cross-functional team?
Identify and briefly discuss the three basic types of franchises.
"As the supply and demand curves are dynamic, so is the equilibrium point." Explain
this statement with an example.
What is the relationship between the Fed's reserve requirement and the money supply?
Explain why companies form hedging agreements with their suppliers.
Compare and contrast credit cards and trade credit.
Think of a situation where you have used decision-making skills to solve a problem.
Analyze the situation based on the decision-making steps discussed in the text.
Compare and contrast philanthropy and strategic CSR.
