bus 101 – Flashcard
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1 In the U.S. economy, ________ are considered the reward for the risk of entering business.
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1profit
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2 The factors of production in an economic system are
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entreprenuership, land, labor capital and natural resources
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3 Businesses that operate in an environment where success or failure is determined by how well they match and counter the offerings of competitors are operating under ___.
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private enterprise system
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4 Capitalism is founded on ________.
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the belief that competition among business firms best serves the needs of society
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5 To be successful in the private enterprise system, firms must
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find a basis for competitive differentiation
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6 Which of the following is considered to be the most fundamental right of the private enterprise system
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The right to private property
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7 Nurturing customer loyalty by gathering knowledge of customer needs and preferences is an approach known as _____.
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Relationship management
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8 Diverse employee teams tend to perform ________ and develop ________ than do homogenous employee groups.
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more effectively, better solutions
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9 In business, _____ refers to the ability to see better and different ways of doing busi-ness.
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creativity
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10 A company removes a profitable product from the market because it may be danger-ous. This company is demonstrating:.
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:. Ethical behavior
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11 Businesses have responsibilities to ___.
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employee and to customers, investors, and society__.
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12 Why should a company act in an ethical manner?
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Acting ethical will help a company prosper in the long run
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13 Which of the following is not part of the three-pronged approach to ethics and social responsibility?
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Constant improvement
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14 Many people rationalize unethical acts because they ________.
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feel pressured on their
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15 Sean avoids using his office computer for personal use, even though his company doesn't have a specific policy forbidding it. Sean is at the ________ stage of ethical development
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conventional
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16 Lynn Brewer, the primary "whistle-blower" at Enron who brought attention to the company's unethical behavior, had moved beyond self-interest and company duty to which stage of individual ethics?
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? Post conventional
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17 Technology has ________ ethical issues.
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expanded the range of
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18 ________ are two traits highly valued by employers and are the most important quali-ties sought in job applicants.
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Honesty and integrity
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19 Which of the following is the first step in the development of a corporate culture de-signed to support ethical behavior?
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Ethical awareness
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20 A formal statement that defines how the organization expects and requires employees to resolve ethical questions is__.
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code of conduct
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21 ________ is the study of the economic choices of individual consumers, families, or businesses.
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microeconomics
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22 If the number of buyers increases, the demand curve will shift to the ________ and the price will ________.
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right_, _rise
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23 If buyers' incomes decrease, the demand curve will shift to the ___ and the price will _____.
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left, fall
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24 If the prices of substitute goods increase, the demand curve will shift to the __ and the price will ___.
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right, rise
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25 If the cost of producing a good or service declines, the supply curve will shift to the ______ and the price will ______.
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right, fall
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26 As the number of suppliers of a product declines, the supply curve shifts to the ______ and the price will ______.
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right, fall
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27 During an economic recovery, consumer spending ______ and unemployment _____.
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increases, decreases
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28 The three major types of economic systems are ______.
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_ capitalism, planned economies, and mixed economies _____.
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29 The four different types of market structure in a private enterprise system are:
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pure competition, monopolistic competition, oligopoly, and monopoly
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30 A particular industry has only a few competitors, who have at least some control over price. Entry into the industry is difficult. This industry is an example of ________.
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an oligopoly ______.
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31 There is no direct competition in a particular industry, yet the firms have almost no control over pricing. This industry is an example of ____.
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regulated monopoly
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32 In a particular country, the government owns all the transportation companies, the util-ities, the energy suppliers, and major manufacturing firms. Small businesses are pri-vately owned. What is this type of economic system?
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socialism
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33 ________ is the relationship between the goods and services produced in a nation each year and workers, raw materials, and other inputs necessary to produce them.
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productivity
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34 ________ provides a running measure of consumer price changes.
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The Consumer Price Index (CPI)
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35 Two major policy tools are available for controlling economic activity. They are:
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Monetary and fiscal policy
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36 The part of the federal government responsible for monetary policy is:
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the Federal Reserve System
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37 The Federal Reserve increases the amount of money banks can lend. As a result, inter-est rates will ___ and economic growth will ___.
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fall, increase
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38 The federal government raises corporate income taxes in order to reduce the budget deficit. This change will likely ________ economic activity, which is an example of ________ policy.
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decrease, fiscal
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39 One way for a country to obtain an absolute advantage in marketing a product outside its borders is to ________.
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produce the good at the lowest cost
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40 A trade deficit occurs when ________.
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imports exceed exports
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41 A comparative advantage in a good or service means that ________.
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compared to another good or service, a nation will produce the one that it produces most effiently
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42 A balance of payments deficit occurs when __.
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the net outflow of money from a country exceeds the net inflow of money from abroad _.
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43 A country's exchange rate is based on:
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the rate at which its currency can be exchanged for other currencies
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44 Which of the following would result from devaluation of the U.S. dollar?
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U.S. goods would sell for less abroad
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45 Which of the following are considered to be trade restrictions?
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Import quotas and embargoes
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46 The objective of an import quota is to:
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protect domestic industries
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47 Which of the following is the most common form of international business?
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Direct exporting
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48 A less-developed nation is facing a financial crisis due to the rapid devaluation of its currency. Which of the following might aid this country?
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International Monetary Fund
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49 Through the ________, the Group of Eight economic powers (U.S., Britain, France, Germany, Japan, Italy, Canada and Russia) agreed to offer full debt relief to African countries that are working toward government reforms on behalf of education and welfare.
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International Monetary Fund
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50 A U.S. agricultural producer sells wheat to a small country in Africa. The country pays the U.S. firm in seafood. This is an example of __.
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countertrade
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51 Speedy Lube enters into a contract with a foreign company to produce and distribute its products in a specific geographic area. Speedy Lube is involved in:
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Foreign licensing
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52 When a company specifies a standardized, worldwide product and marketing strategy it is following a(n) ________.
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global strategy
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53 An American company that makes plastic garden furniture wants to market its prod-ucts in a foreign country that has a high tariff barrier against imported plastic goods. One way the company can get around this problem is to __.
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enter into a licensing agreement with companies within the foreign country to produce the furniture there
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54 When firms develop products and marketing strategies that appeal to the customer tastes and buying habits of particular national markets, they are using a:
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55 Traditionally, small businesses tended to be concentrated in the ______ industry.
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retailing
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56 All of the following are contributions of small businesses EXCEPT:
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They provide more job security than large corporations.
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57 Innovation is possible in small business because they ________.
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___ provide fertile ground for new ideas _
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58 Which of the following is the leading cause of today's small business failures?
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Management shortcomings
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59 Many businesses fail during the early years because of ________.
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inadequate financing______.
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60 When the Small Business Administration (SBA) assists a small business in applying for a major loan, it acts as the lender's ________.
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guarantor
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61 The Small Business Administration (SBA) provides all of the following EXCEPT _____.
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business incubators
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62 The two principals in a franchising agreement are ________.
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franchiser and franchise
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63 The franchisor provides all of the following services EXCEPT ________.
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on-site management
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64 Sole proprietorships have all of the following advantages EXCEPT ________.
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unlimited life
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65 Corporations have all of the following advantages EXCEPT ________.
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favorable tax treatment
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66 Anita established a corporation in Nebraska, but she recently moved to Colorado where she now conducts her business. What type of corporation does Anita own?
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foreign corporation
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67 For its favorable legal climate, as well as the ease and simplicity of its incorporation process, ____ is the most popular state of incorporation for many members of the For-tune 500.
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delaware
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68 All of the following are duties of the board of directors of a corporation EXCEPT__.
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guaranteeing the payment of cash dividends every year
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69 The board of directors of a corporation is elected by the ________.
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stockholder
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70 An acquisition occurs when ________.
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one company purchases the property and assumes the obligations of another company
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71 Which type of merger is likely to receive the closest examination by the Federal Trade Commission?
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Horizontal merger
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72 ________ are pioneers of innovations that benefit humanity.
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Social entrepreneurs
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73 All of the following EXCEPT ________ are important characteristics of entrepreneurs.
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vision to make money
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74 ________ are business organizations or groups of private individuals who invest in new or growing firms.
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Venture capitalists
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75 _____ are specific geographic areas designated for economic revitalization.
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75 enterprise zones
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As someone moves up the managerial hierarchy, which skills become relatively less im-portant?
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Technical skills
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Human skills involve ________.
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leading and motivating workers
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Tate, president of Progressive Graphics, is highly respected for his ability to analyze and interpret trends in the rapidly changing graphics industry. Tate has effective ________ skills.
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conceptual
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Rosetta classifies and divides work into manageable units by determining the specific tasks necessary to introduce a new product. Rosetta is involved in the ________ function.
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organizing
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Marcus is responsible for guiding and motivating 10 other employees to accomplish various organizational objectives. Marcus handles the ________ function.
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directing
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Ramon's job is to establish performance standards, monitor actual performance, and compare actual performance to the standards. Ramon is engaged in the ________ function.
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controlling
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Nearly a week before Hurricane Katrina reached New Orleans, Wal-Mart began moving trucks and supplies into position, as specified in the company's ________ plan.
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contingency
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Senior management usually spends the majority of their time on ________ plans.
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strategic
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Mario is part of a strategic planning team. He has identified that his company is the low-cost producer in its industry. This should be listed on a SWOT analysis as a(n) ________.
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strength
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Serguis is a member of his firm's strategic planning team. He has identified several untapped markets that exist in other countries. His observation should be listed as a(n) ________.
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opportunity
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All of the following require non-programmed decisions EXCEPT ________.
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common, relatively simple problems ______.
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Leadership is most often associated with the ability to ________.
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to inspire others toward high levels of achievement
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Leaders establish power from all of the following sources EXCEPT their ________.
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work ethic
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Marriott has a policy of allowing employees at its hotels to immediately respond to customer problems without having to obtain prior approvals from senior managers. This policy is best described as ________.
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employee empowerment
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An organization's system of principles, beliefs, and values is called ________.
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corporate culture
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What is the first step in the organizing process?
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? Determine specific work activities necessary to implement plans and achieve objectives
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The three key elements present in an organization are ________.
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goal-directed activities, structure, and human interaction ____.
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The process of dividing work activities into units is known as ________.
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departmentalization _____.
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Procter & Gamble is subdivided by its different lines (such as food products, toiletries, and detergents). Procter & Gamble is departmentalized by ________.
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product
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The matrix organization is also frequently referred to as ________.
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project management
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Which leadership style is best?
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dependent on the leader's base of power
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A _____ manager forms part of the primary line of authority that flows throughout the organization.
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...
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A manage will have a wider span of management in an organization that is ____.
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free rein
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Which of the following is NOT an example of departmentalization as described in the text.
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...
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