Cash basis is an accounting method in which revenue is recorded when a sale is made.
The paid display or use of products in television shows, movies, and video games is
referred to as media mix.
Cognitive intelligence is a measure of a person’s awareness of and ability to manage his
or her own emotions.
Frederick W. Taylor’s scientific management approach focused on intrinsic motivational
elements, such as opportunities for personal satisfaction.
A firm sets up a paper-manufacturing factory in a country which has very strict
regulations regarding disposal of industrial waste. This increases the cost of production
of the firm. This is an example of the social environment of the firm.
Long-term loans on real estate are called mortgages.
A firm uses strategic sourcing techniques to reduce its costs. This is an example of
barrier to entry.
The equilibrium point is the point at which quantity of a good or service equals the
quantity demanded.
Salary is paid by the unit of time or by the unit of output.
Most companies in the United States use international financial reporting standards
(IFRS) to standardize accounting and financial reporting methods.
A national union is composed of many local unions that represent employees in specific
locations.
If you invest in a successful franchise, you know you are getting a viable business
model, one that has worked many times before.
Partners are responsible for each other’s action in a limited liability partnership.
National Labor Relations Act is a legislation established to restrict labor unions.
Ethnocentrism is the tendency to assign a wide range of generalized attributes to an
individual.
Shopping products are particular brands that the buyer especially wants and will seek
out, regardless of location or price.
Accounts payable is an example of a long-term liability.
The loans themselves are not transferred when a credit default swap is performed.
In 1965, the Federal Cigarette Labeling and Advertising Act was passed, requiring all
cigarette packs to carry the Surgeon General’s warnings.
Companies that sell shares of stock to the public are required to have their financial
records audited by an outside accounting firm.
________ is a steady rise in the average prices of goods and services throughout the
economy.
A) Recession
B) Depression
C) Deflation
D) Inflation
E) Arbitration
A ________ identifies key employees who are considered critical to the company’s
ongoing operations and lists potential replacements.
A) replacement chart
B) job specification
C) Pareto chart
D) depth chart
E) job analysis
The ________ measures a country’s output-its production, distribution, and use of
goods and services-by computing the sum of all goods and services produced for final
use in a country during a specified period.
A) gross domestic product (GDP)
B) producer price index (PPI)
C) gross national product (GNP)
D) consumer price index (CPI)
E) economic stability index (ESI)
Market coverage refers to ________.
A) the arrangements by which channel partners coordinate their activities under the
leadership of one of the partners
B) the number of layers between producers and target customers
C) all the activities required to move finished products from the producer to the
consumer
D) the planning, movement, and flow of goods and related information throughout the
supply chain
E) the number of wholesalers or retailers that will carry a product
There are 10 pizza restaurants in a city. Each restaurant claims to have the “best pizza in
town” and advertises the ways in which its pizza is different and better than its
competitors’ pizzas. This is an example of a(n) ________.
A) regulated monopoly
B) controlled oligopoly
C) regulated duopoly
D) monopolistic competition
E) monopoly
A business plan is a written document that summarizes the ________.
A) cost benefit analysis of the business
B) sources of financing for the business
C) proposed business venture, goals, and plans for achieving those goals
D) personal financial statements of the business owners
E) organization’s exposure to internal and external threats
The phenomenon where U.S. companies move their production back to U.S. soil is
known as ________.
A) offshoring
B) outsourcing
C) leveraging
D) reshoring
E) external valuation
________ refers to continually adjusting prices to reflect changes in supply and
demand.
A) Freemium pricing
B) Auction pricing
C) Optimal pricing
D) Dynamic pricing
E) Participative pricing
A group of fifteen entrepreneurs starts a manufacturing firm. The total fixed costs that
they have incurred in setting up the business amounts to $50000. The variable cost of
selling a unit of product is $25. What is the break-even point if each unit is priced at
$50?
A) 2000
B) 500
C) 333
D) 666
E) 1000
The term ________ refers to forces resulting from the practical application of science to
innovations, products, and processes.
A) social trends
B) research and development
C) barriers to entry
D) technological environment
E) business mindset
________ are fairly important individual goods and services that people buy less
frequently.
A) Convenience products
B) Expense items
C) Specialty products
D) Capital items
E) Shopping products
The ________ is the federal agency responsible for protecting money in customer
accounts and managing the transition of assets whenever a bank fails.
A) Federal National Loan Corporation
B) Federal Deposit Insurance Corporation
C) Federal Home Loan Association
D) Federal Mortgage Corporation
E) Federal National Mortgage Association
In a(n)________, two or more firms bond together to create a new business entity that
is legally separate and distinct from its parents.
A) operational partnership
B) strategic alliance
C) joint venture
D) operational alliance
E) international franchise
A ________ is a market situation in which frenzied demand for an asset pushes the
price of that asset far beyond its true economic value.
A) liquidity crisis
B) bubble
C) default
D) flash crash
E) credit freeze
A ________ is a legally binding contract that defines the relationship between a
franchisee and a franchisor.
A) franchising prospectus
B) franchise agreement
C) business agreement
D) franchisor’s declaration
E) contractual understanding
________ refers to the creation of identical goods or services in large quantities.
A) Mass customization
B) Batch-of-one production
C) Mass production
D) Customized production
E) Mass personalization
Financing would cost more if ________.
A) opportunity cost is low for the financier
B) investors lend less money
C) funding is for long-term
D) perceived risk is less
E) a company is financially solid
________ policy involves adjusting the nation’s money supply by increasing or
decreasing interest rates.
A) Fiscal
B) Taxation
C) Cyclical
D) Antitrust
E) Monetary
________ refers to a motivational approach in which managers and employees work
together to structure personal goals and objectives for every individual, department, and
project to mesh with the organization’s goals.
A) Scientific management
B) Theory X-oriented management
C) Management by objectives
D) Theory Y-oriented management
E) Micromanagement
Groupthink occurs when ________.
A) managers favor employees who don’t compete with their own particular strengths.
B) employees judge a decision by its eventual outcome, rather than on the quality of the
decision at the time it was made.
C) peer pressures cause individual team members to withhold contrary or unpopular
opinions.
D) a team places too much importance on one aspect of an event, which causes errors in
accurately predicting the utility of a future outcome.
E) employees rely too heavily, or “anchor,” on one trait or piece of information when
making decisions about team members.
Which of the following is an objective of protectionism?
A) reducing the purchasing power of individuals
B) guard specific industries in a nation
C) enhancing trade between nations
D) increasing foreign direct investment
E) helping developing nations engage in global trade
________ skills refer to technical skills in information gathering, data analysis,
planning, organizing, and other aspects of managerial work.
A) Collaborative
B) Decisional
C) Conceptual
D) Administrative
E) Interpersonal
Greytip Information Systems, a software development firm, tackles high health-care
costs by encouraging employees to enroll in smoking-cessation classes, and teaches
them relaxation techniques to help them to deal with stress. Greytip Information
Systems is most likely to be using which of the following cost-cutting tools?
A) sliding-scale plans
B) health insurance buying groups
C) wellness programs
D) 401(k) plan
E) high-deductible insurance
Dick works as the first-line manager of a team of sales persons at Dowson’s Store, a
leading clothes retail store. To motivate the sales agents in his team, Dick says that he
will not assign weekend work and overtime to the top three sales agents, as per
quantitative performance measures. In this example, Dick uses ________.
A) positive reinforcement
B) cognitive heuristic
C) negative reinforcement
D) decentralization
E) onboarding
________ refers to combining accounting and investigating skills to assist in legal and
criminal matters.
A) Financial analysis
B) Tax accounting
C) Bookkeeping
D) Cost accounting
E) Forensic accounting
What are cap and trade programs?
Compare and contrast growth funds, income funds, and value funds.
What is cognitive dissonance?
Compare and contrast multichannel retailing with retail theater.
Discuss the distribution functions performed by wholesalers and retailers.
Compare and contrast the three critical psychological states described in the job
characteristics model.