question

Risk is the chance an entrepreneur takes of losing time and money on a business that may not prove profitable.

answer

true

question

Stakeholders are all the people who stand to gain or lose by the policies and activities of a business.

answer

true

question

Stakeholders include customers, employees, stockholders, suppliers, dealers, bankers, government officials and environmentalists.

answer

true

question

Outsourcing has caused many complications in many states where jobs have been lost to overseas companies.

answer

true

question

The knowledge and skills learned in business courses are seldom relevant to students who work for nonprofit organizations or volunteer groups

answer

False

question

The only way a firm can increase its profits is to increase its sales revenue.

answer

False

question

The study of how society chooses to employ resources to produce goods and services and to distribute them for consumption among various competing groups and individuals is known as sociology

answer

false

question

Microeconomics focuses on the decisions and behavior of people and organizations in particular markets.

answer

true

question

Economist Adam Smith's important contribution was an inquiry as to why some nations are wealthy, while others remain poor

answer

true

question

The concept of the invisible hand begins with the assumption that the primary motivation of entrepreneurs is that they will prosper from their own hard work

answer

true

question

Due to the fundamental rights afforded to us by a free-market capitalistic system, people are more willing to take calculated risks.

answer

true

question

A free-market economic system is one in which the market of buyers and sellers decides what is produced, how much is produced, and how it is distributed.

answer

true

question

Monica notices that just a few big companies produce the vast majority of soft drinks. She would be correct in describing the soft drink industry as an oligopoly

answer

true

question

One reason countries trade with other countries is that even technologically advanced nations cannot produce all the products their people want and need.

answer

true

question

Global trade is the exchange of goods and services between countries.

answer

true

question

According to the theory of comparative advantage, a country should buy from other countries those goods it produces most efficiently.

answer

false

question

Even though the U.S. exports a vast amount of goods globally, it exports a much lower percentage of its products than other countries do.

answer

true

question

A favorable balance of trade occurs when the value of a nation's exports exceeds its imports.

answer

true

question

If visitors from Germany spend money at Florida's Walt Disney World, it will increase the U.S.'s unfavorable balance of payments

answer

false

question

A Chinese steel manufacturer is selling certain types of steel in the United States at a price significantly lower than it sells the same steel in its home market. This practice may be a violation of U.S. law.

answer

true

question

Ethical behavior refers to the standards that are accepted by society as right or wrong.

answer

true

question

Making businesspeople more accountable for company actions may help restore trust in the free-market system and leaders in general.

answer

true

question

Ethical behavior involves the clear and easy choice of right and wrong actions toward others.

answer

false

question

Two recent studies found a strong correlation between academic dishonesty among undergraduates and dishonesty at work.

answer

true

question

Utilizing the phrase "the ends justify the means" as a corporate value system can negatively impact company morale and competitiveness.

answer

true

question

The majority of CEOs believe that employee misconduct results from the failure of organizational leadership to establish ethical standards.

answer

true

question

Overly ambitious business goals and employee incentives can lead to unethical behavior.

answer

true

question

Corporations represent 20 percent of all the businesses in the U.S. and earn 81 percent of the total U.S. business receipt

answer

true

question

The sole proprietorship form of ownership tends to be attractive to people who want to invest in a company without taking an active role in management

answer

false

question

If a sole proprietorship fails, the owner may lose whatever was invested in the business; however, the owner's personal assets are not at risk

answer

false

question

In a general partnership, all partners share in management of the business and in the liability for the firm's debts

answer

true

question

A limited partner is an owner who assumes no management responsibility and has no liability for losses beyond the amount invested.

answer

true

question

A major objective of limited liability partnerships (LLPs) is to limit each partner's personal liability to the consequences of their own acts and those of people under their supervision.

answer

true

question

A conventional corporation is a state-chartered legal entity, with authority to act and have liability separate from its owners.

answer

true

question

While entrepreneurs frequently earn significant profits for themselves, their impact on society is quite small.

answer

false

question

Successful entrepreneurs rely on others for direction and support.

answer

false

question

Many micropreneurs are home-based business owners.

answer

true

question

Micropreneurs are exempt from the local ordinances that restrict home-based businesses from operating in residential areas.

answer

false

question

One advantage enjoyed by home-based businesses is the relative ease in attracting new customers.

answer

false

question

Successful entrepreneurs are exclusively motivated by the desire to become rich.

answer

false

question

Division of labor refers to deciding how many jobs must be accomplished and then dividing them up amongst the labor force.

answer

true

question

To better organize his landscaping business, Frank divides each job into several parts. One part is excavation and removal of old landscaping, the next part is design, followed by purchasing, and the last part is installation of new plants. If he assigns a different employee to each part, this action would be an example of departmentalization.

answer

false

question

The proven success of job specialization lies in the fact that:

answer

C) it adds efficiency to the business's operation by identifying tasks that some do better than others.

question

The concept of ____________ suggests that as a firm produces more, the average cost of goods produced goes down.

answer

economies of scale

question

A(n) __________ is used by an organization to show who is accountable for the completion of specific work and who reports to whom.

answer

organization chart

question

Fayol believed that decision-making authority should remain in the hands of top management:

answer

B) in small organizations, but should be delegated to middle and first-line managers in large organizations.

question

Frank and Lillian Gilbreth developed the principle of motion economy, which said that every job could be broken down into a series of elementary motions.

answer

true

question

The results of the Hawthorne studies encouraged researchers to begin studying human motivation and managerial styles that lead to higher productivity.

answer

true

question

Which of the following statements is the best description of how scientific management viewed employees?

answer

D) Employees are like machines that must be programmed to perform in a certain way.

question

The most important impact of the Hawthorne studies was that it:

answer

D) changed the direction of research away from Taylor's scientific management toward the study of human-based management.

question

According to Maslow, a higher-order need:

answer

C) becomes a source of motivation after lower-order needs are satisfied.

question

Theory Y managers would:

answer

D) have confidence in the ability of employees to solve problems that arise during work.

question

Labor unions were largely responsible for:

answer

minimum wage laws and laws against child labor

question

Critics of labor unions argue that unions are no longer needed to protect workers from abusive and unfair treatment because:

answer

D) laws and modern management attitudes minimize the possibility of unsafe working conditions and unfair treatment of workers found in earlier eras.

question

The Taft-Hartley Act:

answer

C) allowed individual states to pass right-to-work laws prohibiting compulsory union membership.

question

Over the past several decades, the compensation of CEOs of large U.S. corporations has:

answer

C) increased enormously, even when inflation is taken into account.

question

Sexual harassment laws:

answer

Correct Response D) apply to the conduct of women as well as men.

question

As an employee of the human resource department of a major corporation, you are concerned about the potential costs of drug abuse. You are contemplating testing employees for substance abuse. Before adopting such tests, you should know that:

answer

B) if you use these tests, your company will join over 80 percent of major companies that test workers and job applicants.

question

Given the lack of discipline and short attention spans of today's workers, modern managers must watch their workers closely, set strict rules, and vigorously enforce policies.

answer

false

question

One trend of the leading management function is to empower employees, giving them as much freedom as possible to become self-directed and self-motivated.

answer

true

question

Today's progressive managers:

answer

A) emphasize teamwork and cooperation rather than discipline and order giving.

question

Which of the following statements has resulted in changes in the role of management?

answer

B) The marketplace is becoming global, which increases both competition and opportunities for cooperation and integration.

question

Which of the following goals best describes today's view of the organizing function? Organizing today focuses on:

answer

B) designing the organization around the customer.

question

As a manager, two of Sylvia's strengths are her ability to communicate goals clearly, and her ability to guide, coach, and motivate workers. Based on these strengths, __________ is a management function that Sylvia is likely to be good at performing.

answer

D) leading

question

In the process of operations management, a firm transforms resources such as raw materials, supplies, and even human resources into goods and services.

answer

true

question

While going through the line at the local grocery store, the clerk asks you if you found everything you needed, as she continues to scan the goods you are planning to purchase. At the end of the scan, a coupon emerges that you can use on future purchases of a product you have just purchased. In reviewing the key concepts from Chapter 9, you would consider this action to be the store's management of its labor.

answer

false

question

Which of the following statements about operations management in the service sector is most accurate? Operations management in the service sector:

answer

B) should focus on providing customers with a good experience.

question

In __________, materials are physically or chemically changed to produce a product.

answer

B) process manufacturing

question

Operations managers at Alumax Corporation have found that they can achieve efficient production only by producing very large quantities of aluminum without shutting down the production process. This indicates that Alumax should use a(n) ___________ production process.

answer

continous

question

Which of the following is a likely reason that a company would move its facility from one location to another?

answer

access to various modes of transportation

question

The appropriate term for employees whose skills and knowledge go beyond their current work environment and work responsibilities is underemployed workers.

answer

true

question

Rick is in his early sixties. A few years ago he had planned to retire by the time he was sixty, but when the time came, he decided to continue working. In fact, not only is Rick still working, he has no intention of retiring or setting a time when retirement might occur. Rick's decision to keep working into his late sixties is unusual in today's labor market.

answer

false

question

Which of the following statements best describes the current view of the role of human resource management within a firm?

answer

B) Human resource management functions have become so important that in many firms all managers now perform them

question

Frank is a human resource manager at a major corporation. If Frank's company is like most firms today, which of the following statements about his job is likely to be the most accurate?

answer

D) Government laws and regulations concerning hiring, worker safety, pay, and unionization will make Frank's work complex and challenging.

question

According to U.S. business law, accommodation means:

answer

A) providing services for employees according to their specific needs.

question

Minnie A. Dent is completing her thirtieth year as a bus driver. Her company recently told her that she would be required to retire within the next two years because she had reached the age limit for mandatory retirement. Minnie wants to fight this ruling based on a claim of age discrimination. Which of the following statements about this case is most accurate? According to the:

answer

D) Age Discrimination in Employment Act, Minnie can be required to retire at a certain age, because she is in an occupation where evidence exists that ability to perform the job diminishes significantly with age.

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