Core competencies are those activities in which a company excels and has the potential
to create competitive advantages.
Money-market funds are financial instruments that invest in stocks considered to be
selling below their true value.
The Labor-Management Reporting Act is intended to ensure democratic processes and
financial accountability within unions.
Profit refers to the money the company brings in through the sale of goods and services.
Export subsidies are a form of financial assistance given to exporters.
Investment banks provide services to the general public.
The term bubble is used to describe a market situation in which low demand for an
asset reduces its price far below its true economic value.
Standards refer to the criteria against which performance is measured.
Lifestyle businesses are small only because they are new and have ambitious plans to
grow.
Yelp is a popular content curation site, in which someone with expertise or interest in a
particular field collects and republishes material on a topic in that field.
Companies that engage in cynical CSR believe that the only social responsibility of
business is to pay taxes and obey the law.
Job description refers to a statement describing the kind of person who would be best
for a given job.
Price elasticity is a measure of the sensitivity of demand to changes in price.
Many Web sites use stealth marketing, letting visitors sign up for specific content
streams with the promise that they won’t be bombarded with information they don’t care
about.
A team is a unit of two or more people who work together to achieve a shared goal.
Inventory control refers to determining how much of what to have on hand at any given
time.
Break-even point refers to the sales volume at a given price that will cover all of a
company’s costs.
Lean systems are systems whose productivity is relatively low.
Ethics are principles and standards of moral behavior that are accepted by society as
“right” or “wrong.”
The stock of a private corporation is made available for purchase by the public.
In a furniture factory, one worker cuts the wood according to the design, another worker
glues and screws the pieces together, and another worker stains and polishes the wood.
This is an example of ________.
A) core competencies
B) decentralization
C) work specialization
D) chain of command
E) centralization
In a(n) ________, one company simply buys a controlling interest in the voting stock of
another company.
A) limited partnership
B) consolidation
C) acquisition
D) joint venture
E) strategic alliance
RS Bank introduces a mutual fund that is designed to invest only in the telecom sector.
This mutual fund is an example of a(n) ________.
A) target-date fund
B) sector fund
C) optimal fund
D) balanced fund
E) socially responsible fund
Solitaire Jewelers of New York sells custom-made jewelry. Customers are involved in
the design process and can order one-of-a-kind jewels made of platinum, gold, and
silver, as well as precious (diamonds, rubies, sapphires, emeralds) and semi-precious
(tanzanite, etc.) gemstones. Every customer can order jewelry that is different from the
friends of previous and future customers, and made to match their tastes. Solitaire
Jewelers uses which of the following targeting strategies?
A) mass marketing
B) differentiated marketing
C) concentrated marketing
D) micromarketing
E) undifferentiated marketing
M&Z Information Systems, a software development company, has built a day care
center in the office premises to help working women take care of their children. The
company also has flexible working hours and work-from-home policies that enable
employees to better manage both their personal and professional tasks. In this example,
the company’s efforts are aimed at ________.
A) aligning the workforce
B) improving motivation through job enrichment
C) succession planning
D) improving employee’s work-life balance
E) cross-training employees
John stayed late in order to finish a project. When his manager found the completed
project on her desk, she immediately sent John an email praising his good work and
thanking him for going the extra mile. In this example, John’s manager uses ________.
A) chaining
B) transactional analysis
C) cognitive restructuring
D) negative reinforcement
E) positive reinforcement
________ limit the amount of particular goods that countries allow to be imported
during a given year.
A) Import subsidies
B) Embargoes
C) Import quotas
D) Import tariffs
E) Restrictive import standards
________ taxes are levied on earnings of individuals to help fund Social Security,
Medicare, and unemployment compensation.
A) Excise
B) Payroll
C) Sales
D) Income
E) Property
Which of the following is a component of a firm’s working capital account?
A) long-term loans
B) debentures
C) inventory
D) mortgage bonds
E) convertible bonds
In collective bargaining, a mediator is a(n) ________.
A) committee comprising many employees
B) impartial third party
C) financial intermediary
D) representative of the union
E) representative of management
________ is a product development stage in which a product is sold on a limited basis
to gauge its market appeal.
A) Business analysis
B) Test marketing
C) Crowdsourcing
D) Prototyping
E) Commercialization
Generating a(n) ________ is a function of financial accounting.
A) organizational budget
B) balance sheet
C) cost analysis
D) profitability report
E) productivity analysis
A ________ is a brief declaration of what the organization aims to accomplish for
customers, investors, and other stakeholders.
A) operational plan
B) mission statement
C) SWOT statement
D) tactical plan
E) values statement
Which of the following is an example of an activity ratio?
A) inventory turnover ratio
B) acid-test ratio
C) debt-to-equity ratio
D) current ratio
E) debt-to-assets ratio
Total liabilities divided by total assets will yield the ________ ratio.
A) debt-to-equity
B) current
C) acid-test
D) asset turnover
E) debt-to-assets
KLM Inc., a textile-manufacturing firm, has been supplying mesh fabric to Clarence
Furnitures for one year. KLM Inc. is delayed by two days in delivering a scheduled
batch of mesh fabric to Clarence Furnitures. The firm had met all its previous supply
dates, and adhered to all the required quality standards. KLM Inc. follows a relationship
marketing strategy. In keeping with this strategy, KLM Inc. is most likely to ________.
A) give Clarence Furnitures a 20% discount on the material supplied
B) send an email to Clarence Furnitures informing them about the delay
C) ask Clarence Furnitures for an extension on future supplies as well
D) take disciplinary action against employees who were responsible for the delay
E) make structural changes to enable the firm to detect and prevent such delays
Which of the following is an example of a fixed asset?
A) transportation equipment
B) money-market funds
C) cash in hand
D) accounts receivable
E) short-term investments
If individuals and companies believe they can pursue rewards without facing the risks
that should be attached to those pursuits, they are more likely to engage in irresponsible
and even unethical behavior. This situation is known as a(n) ________.
A) ethical dilemma
B) professionalism
C) barrier to entry
D) technological environment
E) moral hazard
Compare and contrast creating a new, independent business with buying an existing
independent business.
Explain the concept of national unions.
Discuss the two-tiered approach to CSR.