Skim pricing refers to introducing a new product at a low price in hopes of building
sales volume quickly.
Trade that takes place without interferences is known as free trade.
Complaints about gender pay fairness, where men get more money than women for the
same work, are instances of equity issues.
A business plan summarizes the proposed business venture, goals, and plans for
achieving those goals.
Strikebreakers are nonunion workers hired to do the jobs of striking workers.
Managerial control with the global strategy is highly decentralized.
Seniority refers to the length of time someone has worked for his or her current
employer.
Demand refers to the quantities of a good or service that producers will provide on a
particular date at various prices.
The European Union has created a currency of its own.
Macroeconomics studies economic behavior among consumers, businesses, and
industries that collectively determine the quantity of goods and services demanded and
supplied at different prices.
National Do Not Call Registry gives individuals the opportunity to have their numbers
removed from telemarketers’ lists.
Alfa Electrical is a firm that manufactures electrical products. The employees believe
that they are not being paid adequately and decide to form a union. More than seventy
percent of the employees issue authorization cards for forming a union, but the
management refuses to accept the union. In order to form a union in this company, the
employees ________.
A) must obtain support of all the employees in the organization
B) should form an informal union and function for more than a year
C) must obtain support of at least 75 percent of the employees
D) should petition the NLRB to remove the management from authority
E) should petition the NLRB to conduct a secret-ballot certification election
Which of the following is a major difference between banks and venture capitalists as
categories of private financing?
A) Unlike banks, which recruit investment specialists, venture capitalists are private
investors without any specialized investment skills.
B) Unlike banks, which provide investment for high-risk businesses, venture capitalists
won’t lend money to a start-up that hasn’t established a successful record of
accomplishment.
C) Unlike banks, which don’t require collateral, venture capitalists provide investments
only when an entrepreneur puts up marketable collateral.
D) Unlike banks, which only provide money, venture capitalists also provide
management expertise.
E) Unlike banks, which are extremely focused and selective in giving loans, venture
capitalists are less focused and provide loans to a large number of start-ups.
Which one of the following is an element of the economic environment of business that
shapes the behavior of buyers and sellers?
A) Forces resulting from the practical application of science to innovations
B) Conditions and forces that affect the cost and availability of goods
C) Laws and regulations that restrain, support, and protect businesses
D) Targeted customers and competitors that market similar products to those customers
E) Population trends, social values, and relationships of society and business
________ is a defined contribution retirement plan in which employers often match the
amount employees invest.
A) Self-insurance
B) In-house clinic
C) Sliding-scale plan
D) Wellness program
E) 401(k) plan
________ is an arrangement in which a financial institution makes money available for
use at any time after the loan has been approved.
A) Corporate bond
B) Factoring
C) Line of credit
D) Lease agreement
E) Commercial paper
All ________ must become members of the Federal Reserve System and ________
may choose to join.
A) national banks, savings and loans
B) credit unions, state banks
C) national banks, state banks
D) state banks, national banks
E) investment banks, credit unions
If an employee has perfect attendance for the month, then he or she is given a $25
bonus. This would be an example of ________.
A) an incentive
B) job enrichment
C) an intrinsic reward
D) punishment
E) negative reinforcement
Dobex Investing is a fund management company. Most of the firm’s funds are invested
in a wide mixture of stocks and bonds. Such funds are called ________ funds.
A) balanced
B) sector
C) restricted
D) specialized
E) socially responsible
The annual interest rate that an issuer offers when a bond is first sold is known as the
________.
A) current yield
B) coupon
C) market yield
D) par value
E) market value
Money serves as a ________ when it is used to measure the value of goods and
services.
A) unit of accounting
B) means of payment
C) store of value
D) medium of exchange
E) standard of deferred payment
In ________, a salesperson acts as a consultant and advisor who helps current and
potential customers find the best solutions to their personal or business needs.
A) direct marketing
B) prospecting
C) consultative selling
D) specialty advertising
E) sales promotion
Which of the following statements regarding a sales professional is TRUE?
A) A career in sales is limited to the retail sector of professional selling.
B) Personal characteristics are of little importance in the sales professional.
C) A sales professional is responsible for determining long-term financial goals and
budgets.
D) A sales professional is responsible for building relationships with customers and
helping them make purchase decisions.
E) A sales professional does not receive any immediate indicators of success or failure.
You invest $6,000 in a no-load mutual fund whose net asset value per share is $36. How
many shares of the mutual fund will you receive if the coupon is 8 percent?
A) 4.92
B) 166.66
C) 750
D) 288
E) 20.83
Grouping customers with similar characteristics, behaviors, and needs is known as
________.
A) a marketing mix
B) market development
C) social commerce
D) market segmentation
E) market penetration
When using ________, a company starts the year with a budget based on revenue and
cost assumptions made at that point but then reviews economic performance every
month or every quarter to see whether the budget needs to be modified as the year
progresses.
A) hedge-based budgeting
B) scenario planning
C) rolling forecasts
D) product segmentation
E) judgmental forecasting
The tendency for a manager to oversee every detail of their employees’ work and give
them little autonomy in how to perform their jobs is known as ________.
A) vertical integration
B) micromanaging
C) empowering
D) centralization
E) reinforcement
Todd D. Morrison is the manager of an advanced research team at LCM Inc., a
pharmaceutical company. Todd is keen to introduce process improvements aimed at
making the business unit more profitable. He also uses innovative leadership methods,
such as giving team members greater flexibility and freedom. Todd takes direct
responsibility for turning an idea into a profitable finished product through assertive
risk-taking and innovation. Todd Morrison’s efforts are an example of ________.
A) intrapreneurship
B) outsourcing
C) downsizing
D) vertical integration
E) horizontal integration
James C. Massey is the team-lead of a team of twelve associate consultants and two
senior associate consultants at AMZ Inc., a global management-consulting firm. James’
performance appraisal requires a web-based feedback form to be filled by his manager,
the members of his team, as well as several other team-leaders he has worked with. The
HR department consolidates data obtained from these forms and provides James with
detailed feedback regarding his performance during the past year. In this example,
which of the following performance appraisal methods is used?
A) 360-degree review
B) behaviorally anchored rating scale
C) benchmarking
D) skills inventory
E) coaching
What is performance appraisal? Compare and contrast the 360-degree review method
with electronic performance monitoring (EPM).
Explain how systems are found in a company.
List the major factors that affect the overall demand of a product.
Define marketing. Compare and contrast place marketing with cause-related marketing.
Briefly describe what a business plan is and discuss its importance in starting a
business.
Explain how unions use publicity campaigns to pressure management.
Explain how a floating exchange rate system operates.