A partnership is a company that is owned by two or more people but is not a
corporation.
Destructive conflict can lead to win-lose or lose-lose outcomes, in which one or both
sides lose, to the detriment of the entire team.
Strengths and weaknesses are internal factors that contribute to a company’s success or
failure.
A 401(k) plan refers to a defined-benefit plan in which companies specify how much
they will pay employees upon retirement.
Financing a business you are starting from scratch is often easier than financing an
existing business.
Gain sharing ties rewards to an employee’s knowledge and abilities rather than to his or
her job per se.
When companies go public, they put out an IPO, or initial public offering.
Collective bargaining is a negotiation between union and management negotiators to
forge the human resources policies that will apply to all employees covered by a
contract.
According to the double-entry bookkeeping method, the accounting equation must be in
balance.
Kaizen calls for continuous quality improvements.
A functional team is also known as a horizontal team.
When a new product enters the commercialization phase of the product development
process, it’s guaranteed to succeed, if it has gone through rigorous risk-reduction
procedures.
Foreclosures are situations in which lenders take possession of homes after borrowers
default on their mortgage payments.
A mentor is usually an experienced manager or employee who can help guide other
managers and employees.
Qualitative managerial forecasts involve historical data and complex statistical
computations.
Unlimited liability is a legal condition under which any damages or debts incurred by a
business are the owner’s personal responsibility.
A logo is a graphical or textual representation of a brand.
Mass marketing differs from differentiated marketing in that mass marketing ________.
A) has one marketing mix for the entire market
B) focuses on only a single market segment
C) requires substantial resources
D) sells a variety of products to several target customer groups
E) targets a single location or even a single customer
________ is a method of setting prices based on customer perceptions of a product’s
worth.
A) Cost-based pricing
B) Optimal pricing
C) Skim pricing
D) Freemium pricing
E) Value-based pricing
Erikson Manufacturers, a firm that designs and manufactures fire, carbon monoxide,
and heat detection and notification devices, has been selling its products to U.S.
corporate firms for several years. After examining its current marketing condition, the
firm decides to open sales offices in Italy and Germany to sell its existing products. The
firm aims to gain market share in Europe. This strategy is known as ________.
A) product development
B) market segmentation
C) market penetration
D) market development
E) vertical integration
Gordon Fiber is a firm that manufactures fiber products. The firm is facing a credit
crunch and wants to liquidize the treasury bills and commercial papers they have. The
firm can sell these at the ________ market.
A) options
B) bond
C) money
D) stock
E) futures
Fashion Tree, an online retailer of fashion apparel, asks its website visitors if they want
to opt-in to its mailing list, via a pop-up screen. This enables the firm to avoid annoying
its customers. Every month Fashion Tree sends an e-mail highlighting current fashion
trends to individuals who opt-in to its mailing list. In this example, Fashion Tree uses
________.
A) remarketing
B) stealth marketing
C) search engine marketing
D) targeted display advertising
E) permission-based marketing
Casey is an entrepreneur who owns AZS Solutions, a software development business.
Instead of using a conventional organizational structure, he signs a contract with
freelance software developers for a specific project. This structure provides him the
flexibility to hire freelance developers that match the requirements of specific skills
required for each project. Casey’s business has which of the following organizational
structures?
A) functional
B) informal
C) unstructured
D) line-and-staff
E) line
A corporation primarily or wholly owned by another company is known as a(n)
________.
A) domestic company
B) alien company
C) subsidiary
D) parent company
E) holding company
________ theory suggests that managers can motivate employees by shaping their
actions through behavior modification.
A) Expectancy
B) Two-factor
C) Equity
D) Reinforcement
E) Maslow’s
________ refers to the degree to which a product or process meets reasonable or
agreed-upon expectations.
A) Quality
B) Standard
C) Scalability
D) Capacity
E) Serviceability
Which of the following can be cited as an example of geographic segmentation?
A) Affinity Bank, an international bank, issues Golden Eagle cards by invitation only to
customers who spend more than $250,000 a year on their Affinity credit cards.
B) A luxury car company creates a hybrid line for consumers who are concerned about
the environment.
C) Harley-Davidson offers a wide variety of motorcycles, and each model attempts to
cater to a particular lifestyle.
D) P&G acquires the list of parents-to-be and showers them with samples of Pampers
and other baby products to capture a share of their future purchases.
E) A toy manufacturing company launches a special line of Hispanic books, dolls,
puppets, and toys for areas with high Hispanic habitation.
When the Federal Reserve buys or sells U.S. Treasury bonds, bills and notes, it is
influencing the money supply through ________.
A) imposing reserve requirements
B) offering discount rates
C) selective credit controls
D) open-market operations
E) changing the value of derivatives
Integral Solutions is a firm that offers open-source, enterprise-software services to small
and medium companies. The company had a public issue two years ago and the
company has shown significant growth in the current financial year. A major rival is
silently amassing the company’s shares to acquire majority stake in the company. In
order to prevent this, the company issues shares to current shareholders at prices below
the market value. This tactic used by Integral Solutions to prevent a takeover is an
example of a ________.
A) poison pill defense
B) proxy fight
C) direct offer
D) tender offer
E) white knight tactic
Donald is the customer service manager at Artemis Technologies, a software
development firm. During a lean period, employees who handle customer issues over
the telephone are trained and asked to handle walk-in customers for 2 months; similarly,
employees who handle walk-in customers are trained and asked to handle customer
issues over the telephone for 2 months. Donald makes these changes to improve
employee motivation. In this example, Donald is most likely to be using which of the
following strategies?
A) centralization
B) cross-training
C) decentralization
D) horizontal integration
E) benchmarking
Which of the following statements is TRUE of bond markets?
A) Treasury bills and commercial papers are traded in a bond market.
B) A bond market is a component of a stock market.
C) Exchange trading of futures occurs at a bond market.
D) Most trading is done over the counter in a bond market.
E) A bond market is less diffuse and centralized than the stock market.
Charles is the CFO of a manufacturing organization. When determining how much
money should be allocated to each departmental budget, he is performing the ________
role of management.
A) informational
B) decisional
C) instructional
D) communicative
E) interpersonal
Which of the following statements is TRUE of the liability of investors in a
corporation?
A) Majority investors are personally liable, whereas minority investors are not
personally liable.
B) Investors have personal liability for the business transactions in corporations.
C) Investor’s liability is limited to the amount invested in the corporation.
D) Investors are personally liable for transactions, whereas their property is not liable.
E) Investors’ property is liable for the business transactions but investors are not
personally liable.
According to the job characteristics model, experienced responsibility for results refers
to ________.
A) how much employees care about the jobs they are doing
B) the sense each employee has that his or her efforts contribute to the outcome
C) an employees’ intention to stay in the company
D) an employees’ support of the company and its mission
E) employees’ awareness of the real-life results of their efforts
A company sells its accounts receivable to an intermediary. The intermediary collects
the receivables from the customer. This is an example of ________.
A) an unsecured loan
B) factoring
C) trade credit
D) a secured loan
E) a commercial paper
Discuss the guidelines that companies should follow while using social media.
Taxation, fees, efforts to coordinate multiple regulatory agencies, labor rules,
environmental restrictions, protection for assets such as patents and brand names, roads
and other infrastructure, and the transparency and consistency of decision making are a
part of the ________ environment.
A) economic
B) market
C) legal and regulatory
D) political
E) social
________ are long-term partnerships between two or more companies to jointly
develop, produce, or sell products.
A) Strategic alliances
B) Global franchises
C) Joint ventures
D) Strategic mergers
E) Incorporated partnerships
The ________ function of an organization coordinates the incoming flow of materials
and the outgoing flow of finished products.
A) finance
B) logistics
C) human resource
D) purchasing
E) sales
________ refers to sums of money (equal to a certain percentage of their deposits) that
banks are legally required to keep on hand.
A) Securities
B) Mortgages
C) Reserves
D) Savings
E) Collaterals
Merchant wholesalers differ from brokers in that merchant wholesalers ________.
A) are generally paid a commission for arranging sales
B) never actually own the products they handle
C) take legal title to goods they distribute
D) sell various noncompeting products to customers in a specific region
E) offer a limited range of convenience goods, long service hours, and quick checkouts
Compare and contrast needs with wants.
What is a business plan? How is it different from an executive summary?
What is Herzberg’s two-factor theory? How do hygiene factors differ from motivators.
Compare and contrast federal funds rate and discount rate.
Discuss the positive and negative role of business in society.
Compare and contrast a general partnership and a limited partnership.
Compare and contrast the technological environment and the market environment
within which a business operates?