Chapters 1-12 Multiple Choice – Flashcards
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The difference between the revenue that a company brings in from selling goods and services and the cost of generating this revenue is called _____
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Profit
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Which of the following is an example of a service Company? a. Custom sign maker b. lumber mill c. insurance company d. mobile home manufactor
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c. insurance company
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Generally speaking economic systems can be divided into ____ and _____ systems
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planned/free market
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Because they operate in an _____ industry a fare decrease at American Airlines will likely result in decreases at other carriers
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oligopolistic
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When the United States experiences a slowdown in economic activity and GDP goes down for two consecutive quarters it is called a ____
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recession
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In calculating gross domestic product the US government does not include the following
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Goods and services produced by US companies in facilities outside the United States
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Ethics refers to ____
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the ability to know right from wrong and to know when you're practicing one instead of the other
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"How can I change my behavior so that I can move up a notch by ethical standards/" If you find that question hard to answer, perhaps you could rephrase it as _____
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"How can I cultivate an ethical personality?"
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Karen learns from a coworker at her pharmaceutical company that one of the firm's most profitable drugs will be pulled off the market. Before the news becomes public, she sells all of her stock in the company. This action is best characterized as ______
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insider trading
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Which of the following criteria are not helpful in distinguishing a bribe from a gift? a. Cost of the item b. Timing of the gift c. Connection between the giver and the receiver d. All these criteria are helpful in distinguishing a bribe from a gift
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d. All these criteria are helpful in distinguishing a bribe from a gift
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The ____ Agency has been a major force in cleaning up US waters
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Environmental Protection
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Basically, nations trade:
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because no nation's economy can produce all of the goods and services that it needs
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According to the principle of _____ a country that decides to specialize in the production of a particular product must sacrifice the production of another product
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Opportunity cost
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The difference between a country's total outflows and inflows of money over a period of time is its
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Balance of trade
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A ____ is an agreement between two companies (or a company and a nation) to pool resources to achieve goals that benefit both partners
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Strategic alliance
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All of the following are conductive to economic growth except
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An unfavorable balance of trade and payments
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If you're a US farmer receiving a subsidy, you are
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guaranteed a certain price regardless of the market price
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Lumber can be produced in Canada at a lower cost than in the US. When Canadian lumber is shipped into the US, its price is raised about 20% to allow the Us lumber industry to remain competitive. This is accomplished through a
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Tariff
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In deciding on a legal form of organization, you should ask yourself all of the following questions except ______
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How many employees will you hire
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Which of the following is not true for a sole proprietor?
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you have limited liability
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When it distributes a portion of its income to shareholders in the form of cash payments, a corporation pays out_______
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Dividends
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A corporation pays taxes on its earnings. When the earnings are distributed as dividends, the shareholders pay taxes on these dividends. This is called______
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Double Taxation
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Which of the Following is not a requirement of an S-corporation?
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Revenues must be less than $1 million annually
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Which industry as the highest percentage of cooperatives?
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Agriculture
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An ______ is someone who identifies a business opportunity and assumes the risk of creating and running a business to take advantage of it.
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Entrepreneur
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The Small Business Administration defines a small business as one with 500 or fewer_____
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employees
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Small business output in the United States generates about _____ of our gross domestic product
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50 percent
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A local Bakery is acting as a _____ when it sells desserts to a restaurant
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wholesaler
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About 80 percent of small businesses in the US are concentrated in the ______ sector
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service-producing
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Which of the following is an advantage to starting a business?
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Opportunity to gain an understanding of all aspects of a business
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If you run a _____ you may find that you must adhere to certain rules even if you disagree with some of them.
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Franchise
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When performing the management ____ function , managers measure the results of operations and compare them with the results they had laid out in their original goals
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Controlling
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In performing the ____ function, mangers set goals and determine the best way to achieve them
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Planning
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_____ are major accomplishments that a company plans to achieve over a long period of time, generally five years
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Goals
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Long-range planning that establishes an overall course of action for a company is generally called ______
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Strategic
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All of the following are advantages of the functional approach to organization except_____
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Communication between units
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Under a _____ structure, employees from various functional areas form teams to combine their skills in working on a specific project.
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Matrix
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A manager who mentors and develops subordinates, providing them with challenging opportunities and working one-on-one to help them meet their professional needs, is practicing a _____ leadership style
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Transformational
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When an employee is treated unfairly on the basis of some characteristics unrelated to ability ______
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Management is guilty of discrimination
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The Age Discrimination in Employment Act of 1964 protects individuals who are _____ or older
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40
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Under federal law its illegal to discriminate in recruiting and hiring on the basis of all the following characteristics except
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education
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In Herzberg's two-factor theory, strong contributors to job satisfaction are called
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motivation
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The principle that a reward will motivate only if it's valued by the employee is key to the _____ theory of motication
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Expectancy
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Nationwide surveys show that most companies today actively strive to develop ______ workforces
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Diverse
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With____ feedback, employees are evaluated not only by those above them but also by those below and beside them
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360 degree
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Which of the following statements about unions is false?
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A tactic available to management when negotiations break down is boycotting
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Companies build and support teams because
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teams increase overall work performance
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In contrast to a team, members of a working group
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meet primarily to share information
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Which of the following factors is not important to team effectiveness?
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Members have known each other for a long time
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Which of the following is true regarding group cohesiveness?
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It refers to the attractiveness of a team to its members
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Which of the following is true regarding groupthink?
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Groupthink results in a tendency for team members to conform to group pressure in making decisions
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A survey conducted by the College board identifies the following as the most frequently required business communication skill______
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E-mail
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About 80% of top executives say that learning to ____ is the most important skill in getting things done in the workplace
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listen
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Which of the following statements is not true about nonverbal communication?
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While nonverbal cues are important it's what you say that always matters most
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_____ is not an aspect of marketing strategy.
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performing sales-related accounting tasks
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_____ would not be included in a demographic segmentation of consumers
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Lifestyle preferences
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A ____ is a letter, sound, or symbol that differentiates a product from similar products on the market
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brand
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Using ____ branding, a company makes a product and sells it to a retailer who resells it under its own name
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Private
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_____ is the process of collecting and analyzing data that's relevant to a specific marketing situation
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Marketing research
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A few years ago, when Nike was charging $140 for a pair of jogging shoes, the company was using a strategy of ____ pricing
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Prestige
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to deliver high customer value, a company must monitor and improve its ____ the entire range of activities involved in delivering value to its customers
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Value chain
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According to the US Department of transportation the ____ is the transportation mode of choice for most goods
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truck
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When the market for it stabilizes a product has entered the _____ stage of the product life cycle
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maturity
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Which of the following is the smallest division of customers?
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Niche
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A market segment is best characterized as a group of ____
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potential customers with common characteristics
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those costs that don't vary with quantity of goods sold are called _____
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fixed
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The selling price per unit minus the variable cost per unit is called ______
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contribution margin per unit
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A _____ is a physical model of product
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prototype
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The goal of the "design with manufacturing in mind" step in the product development process is to
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build both quality and efficiency into the manufacturing process
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All of the following are necessary criteria for obtaining a patent except
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The product idea has profit potential
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Businesses such as print or sign shops that produce low-volume high variety goods according to customer specifications use a process called_____
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Make to order
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When choosing a location for an online stock trading broker company you would want to consider all of the following except
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Proximity to your customers
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______ refers to the maximum number of goods that a facility can produce over a given period of time under normal working conditions.
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Capacity
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Both product and process layouts arrange and work by____
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function
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The inventory-control method called _____ relies on a computerized program to calculate the quantity of materials needed for production and to determine when they should be ordered or made
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Material requirements planning
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Which tool is best for diagramming complex schedules?
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PERT chart
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Estimating capacity needs (goods/services to provide) for a service business is more difficult than for a manufacturer because
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service providers cannot store their services for later use
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The best way to prepare to be an investor is to learn all the _____ that you can
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accounting
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All of the following appear in the financial statements prepare by accountants except
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Marketing budgets
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Your ____ shows organizational sales, expense, and profit
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income statement
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_____ is the selling price per unit minus the variable cost per unit
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Contribution margin per unit
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The cost of using a long term asset (such as a vehicle) that will be used in a business for several years is spread over the asset's useful life, Its annual allocated coast appears on the income statement as a ______ expense
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Depreciation
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Its ______ ratio shows how efficiently a company sells its average stock of goods on hand in one year
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inventory turnover
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The ____ Act severely restricts the ability of accountants to serve the same clients as both auditors and consultants
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Sarbanes Oxley
