Final Business 101 – Flashcards
226 test answers
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Web-based tools like Meeting Wizard can help with time management.
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True
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Managers do not need to be comfortable with technology because they can delegate those tasks to their information technology (IT) staff.
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FALSE
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The skills of a manager and the process a manager goes through will be entirely different if the organization is a simple working group instead of a multibillion-dollar company.
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False
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________ are broad, long-term accomplishments an organization wants to achieve and ________ are short-term targets designed to help achieve them.
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Goals; objectives
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An organization where power is distributed and employees work in groups or teams is a ________ organization.
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horizontal
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Only for-profit companies use mission statements.
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False
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Once long-term goals and objectives have been determined, middle management generates ________.
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tactical plans
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Which is NOT a primary function of management?
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marketing
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A mission statement identifies what a business wants to be in the future.
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False
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When is the annual budget for an organization developed?
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during tactical planning
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________ reflect the personality of a company.
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Mission statements
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A ________ is a graph that displays the values of two variables to see if there is a relationship between the variables.
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scatterplot
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Organizational structure depends on a variety of factors NOT including ________.
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the location(s) of business operations
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Tactical plans are made with a six-month to one-year horizon in mind.
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False
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Despite their benefits, traditional pyramidal management has been criticized as being ________.
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inflexible
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If a computer virus spreads rapidly through a company's computer system and threatens to shut down all internal and external lines of communication, the company will likely put a(n) ________ into effect.
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contingency plan
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At what stage in the decision-making process would managers be most likely to seek customer or market opinion?
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when choosing the best plan of action
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The specifics of carrying out tactical plans are ________.
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operational plans
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Which of the following processes BEST describes how managers identify unseen problems?
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analyzing data and searching for trends
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Xerox maintains a flat organizational structure organized by product category and by region.
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TRUE
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The BEST way to describe the conceptual skills that a good manager must develop is to state that these skills must include understanding the relationships between ________.
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the different parts of the organization
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Diane Pollock was recently promoted to middle management based on her excellent interpersonal skills. These skills help her because one of the primary roles of a middle manager is to ________.
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act as a liaison among different groups in the company
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In an organizational chart for a company, training will generally fall under what division?
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human resources
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Once a company's vision and mission statement have been articulated, management must assess a company's SWOT, which stands for ________.
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strengths, weaknesses, opportunities, and threats
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Reebok only designs and markets its products. The company does not actually produce any products. This is an example of a ________.
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network organization
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What represents the highest level of planning in an organization?
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strategic planning
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A vision statement is a current description of an organization's purpose, basic goals, and philosophies.
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False
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When Boeing recently produced its latest airplane, the Boeing 787, parts of the plane were manufactured by a firm in Italy, other parts were manufactured by a firm in Wichita, Kansas, and all of the elements of the plane were shipped to Everett, Washington, where the final assembly was completed. This is an example of a ________ organization.
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network
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A(n) ________ organization consolidates decision making in the hands of a few people.
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vertical
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There are several steps that are crucial to effective time management. Which of the following steps will NOT improve the productivity of a business?
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answering all emails as soon as they arrive
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Goals are broad accomplishments that an organization wants to achieve within a certain time frame; in most companies this is about _______.
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five years
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A network organization is an emerging business structure in which ________ collaborate.
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a group of companies
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Juan is frustrated with his job of five years. He feels like nothing he does has any effect on the company's success or failure. He believes that his personal successes probably will not benefit him and, if there is any benefit, it will be very small. According to Vroom, Juan has ________.
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low motivation
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Global Tech, Inc. has employees all over the world. Employees have face-to-face meetings on occasion, but they mostly communicate with each other via conference call, email, and webcasts. These employees form a virtual team.
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True
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Emi has worked as a computer programmer for the same company for five years. She is actively looking for another job and spends a great deal of her work day scanning want ads, making phone calls, and chatting with her coworkers. She completes none of her work tasks and is secretly pleased to negatively affect the company with whom she is employed. According to the Q12, Emi is classified as ________.
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actively disengaged
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The Q12 identified Sarah as an employee who is not engaged. According to the Q12, which of the following statements is MOST LIKELY TRUE?
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Sarah makes little contribution to the company.
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For her psychology project, Melissa has decided to study the production levels of cooks at a local fast food restaurant. She expects the cooks in her study group to outperform the cooks in her control group because of ________.
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the Hawthorne effect
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The vice president at Steve's company recently assigned him a very challenging project. Steve successfully completed it on time and within budget. The feeling of satisfaction he has for this job well done is an extrinsic motivator for Steve.
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False
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Rosa has a challenging job at a company that she respects. Her only regret is that her supervisor does not seem to appreciate her accomplishments and work ethic. According to Maslow, Rosa will strive to satisfy her esteem needs before addressing her self-actualization needs.
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True
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The most important aspect of Stephen Covey's Seven Habits model is thinking in terms of win-win because most achievements are based on cooperative efforts.
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True
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After accepting a new job and moving to a new city, Tania felt isolated and unhappy. After a few months, she became friends with some of her coworkers and joined a book club. According to Maslow, Tania fulfilled her need for ________.
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belonging
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Antonio owns a small auto body shop. He is concerned with apathy among his employees and decides to add some extrinsic motivators in hopes of increasing performance. Which of the following is NOT an extrinsic motivator Antonio may try?
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offering work employees may find more satisfying
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Which statement about a Theory Y management style is FALSE?
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People mainly want security in their jobs.
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Mario works as an accountant for a large firm. He frequently sends email messages to coworkers that contain jokes about disgruntled employees and their difficult bosses. He interrupts meetings with random complaints about the company and often tries to coax fellow accountants to join him for long lunches. According to the Q12, Mario is an "actively disengaged" employee.
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True
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Anna, a psychology major, has decided to specialize in the study of how to create a workplace that fosters motivation and productivity among employees. This is known as ________ psychology.
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organizational
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Luis works as a marketing manager for a consumer products company. He feels strongly about the product lines he manages and is dedicated to the company's mission and ideals. Luis' product lines are among the best sellers in the company. According to the Q12, Luis is classified as ________.
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engaged
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The need for affiliation in McClelland's "three-needs" theory most closely resembles which need in Maslow's hierarchy?
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belonging
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In which type of business would you most likely find a Theory X style of management?
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mass manufacturing company
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InfoTech offers its employees long-term employment with a focus on individual responsibility. As a result, its workers are loyal to the organization, are highly productive, and have strong morale. The management style InfoTech most likely is applying is ________.
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Theory Z
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Which of the following best defines McClelland's need for achievement?
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It is the need to accomplish something difficult on one's own.
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Karen is an accountant for a large construction company. Her supervisor decides to reward Karen's excellent performance with a one-time bonus. To Karen, this could be a(n) ________.
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extrinsic motivator
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According to Maslow, which need are people striving to satisfy when they seek to maximize their own potential?
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self-actualization
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Chelsea is a marketing manager and receives a lump sum payment from her company based on the company's higher-than-normal profits from last year. This compensation is called a ________.
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bonus
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Greg is 57 years old and is looking for a new job even though he knows many companies prefer not to hire older workers. Which of the following is likely a disadvantage of hiring Greg?
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expectation of a fairly high salary
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Midori was searching for a new job. An employment agency contacted her about a job that was perfect for her skill set. Midori was hired. Midori's new company was performing ________.
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external recruiting
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Suki earns $52,000 per year for her work as an associate marketing manager. Suki's compensation is called a ________.
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salary
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Janet is the human resource manager for a large consumer products company. She has a great many job responsibilities. Which of the following is most likely NOT an aspect of her job?
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asset management
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Marvin has worked for his company for five years and feels it is time to increase his level of responsibility and stature in the company. Marvin is seeking a ________.
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promotion
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Barney is an HR manager and would like to see a more diversified workforce at his company. He decides the best way to do this is to follow a plan that requires the company to employ a certain number of minorities and women. This plan is otherwise known as ________.
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affirmative action
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When plumbers from a local union stopped working during negotiations, management hired replacement plumbers so the effects on their business would be lessened. These replacement plumbers are called ________.
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strikebreakers
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Archie is a new HR manager and knows that a diverse workforce can benefit his company. The best way for Archie to create a motivated, diverse staff is to follow an affirmative action plan that prescribes a certain number of minorities and women.
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False
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Johanna decides she is bored with her current job and is ready to quit. She wants to take some time off and then look for a new job in a different city. Her coworker tells Johanna to check the company handbook to make sure her reasons for quitting are acceptable. Johanna knows this is not necessary because of the legal doctrine, ________.
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employment at will
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Kathleen wants to be a nurse manager at a local children's hospital. She is studying for this position through a distance learning program and is taking a class offered by a university in another state. The type of training Kathleen is experiencing is ________.
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online
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What is the retirement age in the United States?
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whenever the employee stops participating full-time in his/her career
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Joshua is paid the minimum hourly rate for his work as a lifeguard. Joshua's compensation is called a ________.
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wage
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Sydney recently saw a notice in her company newsletter about a new job opening within her company. Since it would be a promotion for her, she applied later that day. In this example, Sydney's company recruited externally.
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False
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What is the difference between performance management and performance appraisals?
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Performance management is an ongoing process while a typical performance appraisal happens once per year.
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Recently, negotiations between a local housepainters union and their employer came to an impasse. The employer felt he had a legitimate position in the negotiations and refused to allow union member painters from entering the premises. This is called a ________.
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lockout
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Bella has two young children and a full-time job. Her day care provider cannot work on Fridays. Bella's employer allows her to work Mondays through Thursdays, as long as she puts in ten hours each day. From this example, we know Bella's employer allows ________.
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a compressed workweek
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While training for a new job, Vincenzo was given a computerized, multiple-choice test, which provided him immediate feedback regarding his answers. Vincenzo experienced a(n) ________.
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programmed learning approach
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Nicholas works for a marketing firm, which is looking to cut staff due to financial hardships. Since Nicholas is nearing 70 years old, the company decides to encourage him to retire by offering him various financial incentives. This worker buyout is also known as a(n) ________.
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golden parachute
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Elizabeth saw a posting for a new job on her company's intranet. She was interested in the new challenges this job could provide her, so she applied right away. Elizabeth's company was performing ________.
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internal recruiting
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Teresa just received a quarterly statement from the Vanguard Group, which shows earnings from investments using her pretax dollars. Teresa contributes a percentage of her salary to the plan and her company matches it. Teresa has a 401(k) plan.
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True
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When Iris was trained for her new job, she was asked to respond to questions on a computerized multiple-choice test. Iris' company used the apprentice training approach.
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False
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Felix is concerned about saving money for retirement. His company offers him a plan that requires him to contribute a specific amount of money each year through payroll deductions. At retirement, Felix will receive the monies he contributed as well as the fund's investment earnings. Felix is contributing to a(n) ________.
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pension plan
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Daniel is due for his regularly scheduled performance appraisal. This is the time when Daniel receives an official evaluation of his performance, feedback about his work, and areas where improvements should be made.
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True
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Ricardo supervises a group of computer programmers. One of his employees, Natalia, frequently tells him about another employee's tardiness and penchant for two-hour lunches. After a few months, Ricardo fires this employee based on Natalia's information. Because Ricardo can back up his accusations with Natalia's statements, he is guaranteed to be protected in a wrongful discharge lawsuit.
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False
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Benjamin has a full-time job and has decided to work toward earning his master's degree at a local university. Some days he works from 7:00 A.M. until 3:30 P.M. so he can leave in time to attend his 4:00 P.M. classes. The rest of the week, Benjamin works from 8:00 A.M. until 4:30 P.M. From this example, we know Benjamin's company allows ________.
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flextime schedules
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Gabrielle is in charge of hiring new employees for her company. She decides she needs to assess the future demand for employees through forecasting and sets out to learn more about it. Which of the following statements about forecasting does Gabrielle discover is FALSE?
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Forecasting considers the role of antidiscrimination policies at present.
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Ramona's company has taken a new approach to the appraisal system. They combine goal setting, performance appraisals, training, and feedback into an ongoing process. This approach is called performance management.
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True
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Roseanne is in the process of hiring a new administrative assistant. What is the last step in this hiring process?
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monitor through probationary period
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The local library system offers some employees the opportunity to work five days per week for four hours each day. These employees also receive the same health insurance and paid time off plans that the employees working 40 hours per week receive. From this example, we know the library system is offering ________.
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permanent part-time schedules
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Veronica is reentering the workforce after years away caring for her elderly parents. She is making many assumptions about today's workplace. Which of Veronica's assumptions is FALSE?
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Women receive pay equal to their male counterparts.
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Which of the following is NOT a part of a typical management development program?
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workforce profiles
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Oscar works in pharmaceutical sales. His base compensation is fairly low, but it is enhanced with compensation directly tied to his sales results. The incentive-based payments Oscar receives are called ________.
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commissions
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Yvette was recently hired as a restaurant manager for McDonald's and must attend classes at Hamburger University. This is an example of the programmed learning approach.
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False
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Yoshiko owns a greeting card store and recently hired a new daytime clerk. The new clerk is learning job skills by performing them under Yoshiko's informal direction. Yoshiko is conducting a(n) ________.
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on-the-job training program
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Which of the following is NOT a problem typically encountered with performance appraisals?
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There is much administrative pressure due to the high frequency of an individual's performance appraisals in one year.
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________ involves tricking a person into entering sensitive personal or financial information into a form on a website or in an email, typically by convincing the person that she is dealing with a site she normally interacts with, such as her bank.
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Phishing
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Terrell urgently needs to take care of some personal business using the Internet, but he is afraid that he might jeopardize his job if he is found using the company network for personal use. Which corporate practice is causing Terrell to most likely feel this concern?
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electronic monitoring
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Google's AdSense advertising is a form of contextual advertising.
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True
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UPS has a(n) ________ that allows businesses to examine UPS services and prices and track shipments.
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company website
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What is MOST important for cloud computing?
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Internet
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Business intelligence software can help managers ________.
answer
identify which factors are the greatest contributors to bad debt
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Which of the following BEST describes how businesses convert raw data into information?
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organizing the data in a way that helps make decisions
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Molave Furniture Company plans to launch a new website. Lila, the company's CIO, thinks that the company can better reach its customers through an interactive site that allows customers to view pictures of all furniture items, schedule an appointment with a sales consultant, or order items online. Which of the following areas of responsibility is Lila most specifically addressing?
answer
e-commerce
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________ refers to the application of products like Facebook in a corporate setting.
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Enterprise social networking
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Employers use electronic monitoring to ________.
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gather information about an employee's activities while on the job
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As a chief information officer, Bob looks for ways that his company's technological resources can generate bigger returns on its information technology investments. Which aspect of the CIO's role is he addressing?
answer
budget
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IT departments must ensure that companies use the newest technology that is available.
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False
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The following are all functions of a chief information officer (CIO) EXCEPT ________.
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overseeing the accounting office
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Of the following, which is harmed MOST by current regulations governing the collection of sales taxes on Internet purchases?
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state governments that charge sales taxes
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Which of the following uses of social media would be MOST likely to hurt rather than promote one's business?
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Which of the following uses of social media would be MOST likely to hurt rather than promote one's business?
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Which of the following is a function of a company's IT department?
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managing the use of mobile computing
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Phishing is commonly used to steal credit card numbers.
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True
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The person in charge of technology-enabled information processing in companies is most often called the ________.
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chief information officer
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What does a management information system (MIS) do that an IT system would typically not do?
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focus on applying IT to solve business problems
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Technology's ability to process and document large amounts of data has better enabled people to understand interpersonal communication.
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False
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Online analysis packages (OLAPs) enable very quick analysis of multiple sources of business information in order to present a clearer picture of the state of the business.
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True
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The unit in a company that is most often responsible for the hardware components, software programs, and networking strategies of a business organization is ________.
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information technology
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What best describes a data mart?
answer
What best describes a data mart?
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Technology BEST supports whistle-blowers by ________.
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making it possible for people to report a business's ethical violations anonymously
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The chief information officer is responsible for the technology of a business, including the management and evaluation of the budget allotted for such technology.
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True
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Viral marketing is most effective when it targets people who spend little or no time on the Internet.
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False
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Hilde's company wants to develop an understanding of the demographics of people purchasing its new product. The company wants to target its marketing at this demographic of people. The marketing department has used a database management system to identify the characteristics of buyers. Which of the following will be MOST useful for identifying the appropriate demographic group at which to target marketing?
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data mining
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Most states are pleased that their residents buy products online.
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False
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The online advertising acronym PPC stands for ________.
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pay-per-click
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eBay is an example of which type of e-commerce transaction?
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C2C
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Which of the following statements is TRUE about the impact of technology on employee privacy?
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Technology allows companies to access information about employees' behavior on the job
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Ben receives an email purporting to be from his bank, advising him that new passwords are being distributed. The email asks him to enter his current password, as well as other personal information. Ben sends the requested information and then notices the next day that funds have been withdrawn from his account without his knowledge or consent. Upon contacting the bank, Ben learns that the original email was a fraud. Ben is a victim of ________.
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phishing
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Although electronic monitoring offers some advantages to a company, it may also result in disadvantages. Which of the following is the MOST significant disadvantage of electronic monitoring of employees?
answer
Electronic monitoring can result in increased employee stress and anxiety.
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A marketing plan is best provided as an oral presentation so that employees can grasp concepts through visual aids and ask questions in a question-and-answer session.
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False
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When competition for customers became more intense during the sales era, businesses began to ________.
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undertake aggressive sales tactics to "push" their products
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When U.S. soldiers returned home from World War II, they influenced the marketing of products by ________.
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getting married, starting families, and having the willingness to spend money
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Social media sites such as Facebook and Twitter are unreliable sources of market research data because few customers use such sites to discuss business issues.
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False
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The ideal marketing objective is ________.
answer
time specific, realistic, and quantifiable
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How does marketing MOST benefit consumers?
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by responding to needs in an effort to satisfy those needs
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Marketing has evolved over which general eras?
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production, sales, marketing, societal marketing, customer relationship
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The more loyal a traveler is to a certain hotel chain, the more sensitive he or she is to the room rate at hotels in that chain.
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False
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Which of the following is a typical characteristic of a business-to-business market?
answer
complex buying decisions
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Secondary marketing data, which has already been collected and processed, is usually more expensive to obtain than primary data.
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False
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When we interview for a job, we are marketing ourselves.
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True
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The first step in the marketing process is to ________.
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identify a market need
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Prudent firms follow domestic markets exclusively in order to keep their focus on immediate sales and to avoid the additional expenses incurred in the global marketplace.
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False
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________ is the process of surveying the market environment to assess external threats and opportunities.
answer
Environmental scanning
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Marketers need to be aware of cultural and social differences before launching their products and campaigns.
answer
TruE
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The middlemen in a distribution channel are sometimes called ________.
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wholesalers
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In the age of identity theft, customers feel that marketers are violating their privacy when they ________.
answer
resell information collected in marketing surveys without permission
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A target market is a group of people who have completed surveys, questionnaires, or other response forms and have indicated an interest in the production of a new product.
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False
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Environmental influences are variables under the direct control of an organization.
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False
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Which of the following is NOT one of the most common consumer market segmentation classifications?
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home ownership
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Which of the following is NOT a good way to develop rapport with clients?
answer
providing high quality products without a money-back guarantee
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A rising inflation rate increases the purchasing power of money.
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False
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There are many more consumer markets than business-to-business (B2B) markets.
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False
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The most visible part of the marketing mix, which can be very expensive, is ________.
answer
promotion
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Which of the following is NOT an example of how not-for-profit organizations use marketing?
answer
The Red Cross is investigating the use of alcohol-based drugs for children's diseases.
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Which of the following is NOT a criticism of marketing?
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catering to an exclusively upscale clientele
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The marketing process is different for B2B markets than it is for consumer markets.
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False
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The automobile industry is an example of a business that skips the wholesaler in the distribution channel.
answer
False
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The era when companies believed that a good quality product would simply sell itself ran ________.
answer
from the industrial revolution until the 1920s
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The market mechanism benefits society by ensuring that ________.
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scarce resources are channeled into products most desired by society
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The two basic elements of a marketing strategy are the market research and the marketing mix.
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False
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Snow blowers are sold in areas where there is a longer cold season and the likelihood of snow. The consumer market for snow blowers is an example of ________.
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geographic segmentation
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A consultation with a world-famous surgeon is an example of a(n) ________ service.
answer
specialty
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A group of similar products marketed to one general market is called a product ________.
answer
line
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If a package prevents tampering with a product, which purpose of packaging is being performed?
answer
to contain and protect the product
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The package design, shape, color, and texture influence buyers' perceptions, but do NOT influence buying behavior.
answer
False
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In order for customers to acquire a total product offering, the customer must offer the ________.
answer
price
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Ford offers several categories of vehicles: cars, minivans, trucks, and SUVs. All of these vehicle categories together make up Ford's product ________.
answer
mix
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Price ________ involves charging a high price for a product initially, then lowering the price over time.
answer
skimming
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A company that announces a manufacturer's suggested retail price and then offers a discount off that price is using ________ pricing.
answer
reference
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An agreement between the owner of a brand and another company or individual who pays a royalty for the use of the brand in association with a new product is brand ________.
answer
licensing
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The blue Tiffany & Co. box is an example of which purpose of packaging?
answer
to promote the product
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An advertising campaign that attempts to reposition its product is an example of ________.
answer
creating a new vision
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Sheets of copper shipped to a factory for plumbing pipes are an example of ________.
answer
raw and processed materials
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A bag of snack food says, "Walmart's Corn Chips." This is an example of a(n) ________ brand.
answer
private
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The process of distinguishing a product from its competition in real or perceived terms to attract customers is called product ________.
answer
differentiation
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A legally protected brand is called a(n) ________.
answer
trademark
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A whole supermarket shelf of snack food bags is marked, "Frito-Lay." This is an example of a(n) ________ brand.
answer
family
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Which of the following is a consumer product classification?
answer
unsought goods and services
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The two functions of labels are to ________.
answer
inform and persuade
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A manufacturer of yachts sets its prices high above its competitors. This is an example of the pricing objective of ________.
answer
creating an image
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An augmented product consists of the core product and the actual product plus other real or perceived benefits that provide additional value to the customer's purchase.
answer
True
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A bulldozer is an example of ________.
answer
equipment
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Each of the following is a form of discount EXCEPT ________.
answer
packaging discounts
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A new freelance writer who sets a price at a level to generate just enough revenues to pay expenses is using the pricing objective of ________.
answer
covering costs to survive
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All of the following are steps in new product development EXCEPT ________.
answer
brand awareness
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A store that sets its prices at the same level as the store across the mall is using the pricing objective of ________.
answer
status quo pricing
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Use and convenience are unimportant when planning packaging for products.
answer
False
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The many product lines at Procter & Gamble are an example of product ________.
answer
mix width
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A theoretical model describing a product's sales and profits over the course of its existence is known as the product ________.
answer
life cycle
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A brand assigned to each product within a company's product mix is a(n) ________ brand.
answer
individual
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A snack food bag is white with plain black letters spelling, "Corn Chips." This is most likely an example of a ________ brand
answer
generic
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Branding increases the risks involved in some purchases for which buyers are unable to determine quality objectively.
answer
False
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A package contains a snack food bag with a manufacturer's brand and a container of dip with the brand of a different manufacturer. This is an example of a(n) ________ product.
answer
co-branded
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Packaging milk in a sealed bag that does not require refrigeration is an example of creating new markets.
answer
False
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Last year Huge TV Corp. had net income equaling $5 million. At the end of the year, the corporation had 4 million shares of stock outstanding. The company's earnings per share were ________.
answer
$1.25
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Accounting is important for ________.
answer
organizations of all sizes and types
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Your boss asks you to email a spreadsheet that is similar to a checkbook register, since it reflects changes in the company's cash position last month. When sending the email, you MOST LIKELY will attach the file named ________.
answer
Statement_of_Cash_Flows
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The clothing and accessories at New Fashion Stores, Inc. are an example of ________ assets.
answer
current
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Your boss asks you to email a spreadsheet that shows what the company owns and what it has borrowed (owes) at a fixed point in time and shows the net worth of the business. When sending the email, you MOST LIKELY will attach the file named ________.
answer
Balance_Sheet
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The statement of cash flows tells how efficiently management generates and uses cash.
answer
True
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Jason Prows' job this week is to prepare a spreadsheet that shows his company's long-range plans and outlines the expected financial needs for significant purchases such as real estate, manufacturing equipment, plant expansions, and technology. Jason is preparing a(n) ________ budget.
answer
capital
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The amounts that New Fashion Stores, Inc. owes to clothing manufacturers are an example of ________.
answer
liabilities
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When New Fashion Stores, Inc. paid a dividend to its shareholders, it recorded to outflowing cash in the ________ activities section of its statement of cash flows.
answer
financing
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The longest period covered in financial accounting reports is three months.
answer
False
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Government and not-for-profit accounting refers to the accounting required for organizations that are not focused on generating a profit, such as legislative bodies and charities.
answer
True
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The Sarbanes-Oxley Act established the Public Company Accounting Oversight Board, which is responsible for overseeing financial audits of public companies.
answer
True
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Leverage is the amount of debt used to finance a firm's assets.
answer
True
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Current assets at New Fashion Stores, Inc. are $20 million, and current liabilities are $10 million. The company's current ratio is ________.
answer
2.00
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Assets are the amounts that a company owes to its creditors.
answer
False
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Financial statements represent what has happened in the past.
answer
True
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When New Fashion Stores, Inc. built 100 new stores, it recorded to outflowing cash in the ________ activities section of its statement of cash flows.
answer
investing
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GAAP stands for ________.
answer
generally acceptable accounting principles
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An airline's long-term leases of its jets are examples of current liabilities.
answer
False
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Joseph Coulter needs long-term financing for his company. He contacts Funders Group, which is willing to provide funding in exchange for an ownership stake, an active role in management of Joseph's company, and an opportunity for a large return on its investment. Funders Group is offering ________ capital.
answer
venture
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Tracking a business's income and expenses through a process of recording financial transactions is called ________.
answer
accounting
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In her work as an accountant, Sandra Garcia recognizes that for every transaction that affects an asset, an equal transaction must also affect either a liability or owners' equity. Sandra is using ________ bookkeeping.
answer
double entry
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Your boss asks you to email a spreadsheet that reflects the profitability of the company by showing its revenue and operating expenses. When sending the email, you MOST LIKELY will attach the file named ________.
answer
Income_Statement
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Depreciation helps keep the accounting equation in balance by matching the expense of a liability with the revenue that liability is expected to generate.
answer
False
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Housing Repair Co. has total revenue of $100,000. COGS is $40,000. The company's gross profit margin is ________.
answer
0.60
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Mark Lewis manages a corporate department that reviews and evaluates the accuracy of financial reports. Mark works in ________.
answer
auditing
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Liquidity is the speed at which assets can be turned into ________.
answer
cash
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The financing activities section of a statement of cash flows includes cash used or provided by the actual business of the company.
answer
False
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Commercial banks are financial institutions, credit unions, and savings-and-loan institutions that raise funds from businesses and individuals in the form of checking and savings accounts and use those funds to make loans to businesses and individuals.
answer
True
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Accounting involves a great deal of precision and some degrees of interpretation; therefore, accounting is ________.
answer
both an art and a science
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You are a financial manager. Your assistant tells you that there will be a cash flow gap next month, meaning that cash outflows are expected to be ________ cash inflows.
answer
greater than
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Long-term financing generated by the owners of a company is called ________ financing.
answer
equity
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Kay Alden manages a department that prepares annual reports. Kay works in ________.
answer
financial accounting
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Accounts receivable is an example of a fixed asset.
answer
False
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If a company has negative working capital, its current assets ________ its current liabilities.
answer
are less than
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New Fashion Stores, Inc. received 1,000 t-shirts on the first of the month. By the end of the month, the company had sold 743 shirts. The difference is ________.
answer
inventory
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