Flashcards on OLS 274 FINAL

question

Which phase of production control determines the amount of all resources needed to produce a certain amount of goods and services?

answer

production planning

question

Which production process describes a manufacturing operation in which long production runs generate finished products over a period of time?

answer

continuous

question

Employers may obtain valuable information regarding employee satisfaction from exit interviews

answer

True

question

Which level of management includes job titles such as general manager, division manager, or plant manager?

answer

middle management

question

Corn processing is an example of analytic production

answer

True

question

A trend toward decentralization has pushed decision making down to operating employees.

answer

True

question

Autocratic Leaders ________

answer

make decisions on their own, often without consulting others

question

The production manager in a manufacturing company divides employee work into small segments so each employee can concentrate on just a few tasks. This manager is involved in ________.

answer

Specialization

question

All of the following are examples of external communications EXCEPT

answer

e-mails sent to sales representatives

question

Danny works for a home electronics store and is a member of a team created to increase communication among various departments. Danny has networked with new people and now has strong contacts for each department when he needs them. Danny is a member of a ________ team.

answer

Cross-functional

question

A problem-solving team is usually temporary.

answer

true

question

Guadalupe's firm is divided into work units representing human resources, marketing, production, and finance. This is known as ________ departmentalization.

answer

Functional

question

Kate is a full-time nurse and would like to vary her starting and ending time to better accommodate her children's school hours. Which flexible work plan would be ideal for her situation?

answer

flextime

question

Which of the following is a disadvantage of assembly lines

answer

It is inefficient for producing small batches

question

Robert's company contracted with an outside business to provide technical and computer support. This is an example of ________.

answer

outsourcing

question

Teams at Google come from many different countries, with skills ranging from creativity to communication to search engine optimization. This is an example of team ____________.

answer

diversity

question

Which of the following is the first step in the employee recruitment process?

answer

Identify job requirements

question

SWOT is an acronym for strategies, weaknesses, opportunities, and teamwork

answer

False

question

According to Maslow, the desire to be valued and recognized by others is a(n) ________ need.

answer

esteem

question

The goal of ________ is for companies to eliminate virtually all defects in output, processes, and transactions.

answer

six-sigma programs

question

Jana's firm allows her to work four 10-hour days each week. This type of flexible work arrangement is known as ________

answer

compressed workweek

question

During the adjourning stage, team members may celebrate by distributing plaques or awards

answer

True

question

When Toyota was faced with serious quality problems and was forced to recall thousands of vehicles, the company quickly formed a temporary group of employees to brainstorm the problem. This is an example of a _______ team

answer

problem solving

question

Starr works in the bakery at Whole Foods Market. As part of a ________ team, she shares in the responsibility of managing her department's work schedule and ordering baking supplies.

answer

self-managed

question

Darren decided to change jobs. Before he left the company, he talked to someone in the human resources department about the reasons why he was leaving. Darren went through a(n) ________ interview

answer

exit

question

A firm's human resource plans often correspond with competitive strategies.

answer

True

question

Lilly's supervisor sends her an e-mail requesting updated financial figures as soon as possible. When Lilly interprets the message as meaning by the end of the day, she is decoding the message.

answer

True

question

Countries like the United States which tend to rely on explicit written and verbal messages are considered ________ cultures

answer

Low-context

question

How can a firm best protect itself against an interruption in the supply of parts?

answer

Maintain more than one supply source

question

The Fair Labor Standards Act ________.

answer

established the federal minimum wage

question

An inadvertent failure to comply with federal or state employment laws still leads to significant penalties for the firm involved

answer

True

question

Jacob begins working an apprentice plumber. He will most likely receive

answer

on-the-job training

question

Madison thinks that employees must be closely supervised and controlled at all times. Madison is an example of a Theory Y manager

answer

False

question

Nearly a week before Hurricane Katrina reached New Orleans, Home Depot began moving trucks and supplies into position, as specified in the company's ________ plan

answer

contingency

question

Middle managers develop detailed plans and procedures to implement the firm's strategic plans.

answer

True

question

Custom low-volume machine shops are typically organized in a product layout.

answer

False

question

Bill is listening to one of his fellow team members speak at a meeting. He believes she is just trying to get the team leader to adopt her idea. Bill is being a(n) ________ listener.

answer

cynical

question

The decision to make, buy, or lease never hinges on the availability of outside suppliers that can dependably meet a firm's standards for quality and quantity.

answer

False

question

Pin-yuan is trying to promote the cohesiveness of his team. Which of the following would LEAST likely improve his team's cohesiveness?

answer

encouraging his team members to work from home

question

Corporate vision should be ________ and ________.

answer

focused, flexible

question

The orientation program is typically administered jointly by the ________.

answer

human resource department and the department in which the employee will work

question

Team norms are ________ and ________ standards of behavior.

answer

informal, unwritten

question

Team cohesiveness increases with frequent team member interaction.

answer

true

question

Leadership is most often associated with the ability to ________

answer

inspire others toward high levels of achievement

question

Free-rein leaders allow subordinates to make most of the decisions and communicate with employees when situations arise.

answer

True

question

Compared to other techniques for empowering employees, information technology has minimal risks.

answer

False

question

When a cabinet maker combines wood, tools, and skill to create finished kitchen cabinets for a new home, the cabinet maker is engaging in ________.

answer

Production

question

A company's vision should include flexibility

answer

True

question

Gantt charts are most effective for indicating projected and actual work progress over time.

answer

True

question

One disadvantage of a matrix organization is that employees may be confused and frustrated in reporting to two bosses

answer

True

question

State and local governments may offer ________ to encourage businesses to locate in their area

answer

Tax incentives

question

Which of the four functions of management creates a well-designed road map of the actions needed to lead a company forward?

answer

Planning

question

Japan is considered to be a ________ context country and thus, Japanese businesspeople place importance on ________ communications.

answer

High, both verbal and nonverbal

question

Pham is a human resource manager. His responsibilities might include all of the following activities EXCEPT ________

answer

Projecting sales for the coming 6 month period

question

Which stage of team development is marked by conflicts over the team's mission and the roles of team members

answer

Storming Stage

question

Top management usually spends the majority of time on ________ plans

answer

Strategic

question

Tiffany is a first-line manager at an electronics retailer. The number of employees that Tiffany supervises is known as

answer

Span of Management

question

Democratic leaders ________.

answer

involve their subordinates in making decisions

question

Diversity among team members often decrease the chances of conflict.

answer

False

question

Which of the following is a concern about performance appraisals?

answer

They may be skewed in favor of a single manager's subjective opinion

question

Tamara is the owner of Baker's Dozen, a bakery with all perishable products. What will be her primary consideration in regard to location?

answer

Proximity to her market

question

A plant where plastic 2-liter bottles are manufactured probably uses a ________ layout.

answer

Product

question

Polite listeners are attentive listeners

answer

False

question

In a cafeteria plan, each employee receives a set allowance to pay for benefits depending on his or her needs.

answer

True

question

________ is the phase of production control that determines the sequence of work and specifies where and by whom each aspect of production will be performed.

answer

Routing

question

Tactical planning is primarily the responsibility of ________

answer

middle managers

question

A process layout groups machinery and other equipment according to their functions.

answer

True

question

Organizing involves the process of logically classifying tasks that will be assigned to employees.

answer

True

question

Which of the following is NOT part of the mission of ISO?

answer

Enforce quality standards

question

All of the following are examples of flexible working arrangements EXCEPT

answer

401(k) plans

question

The critical path in a PERT diagram illustrates the sequence of operations that requires the longest time for completion.

answer

True

question

Harriet uses a computer-based production planning system by which a firm can ensure that it has needed parts and materials available at the right time and place and in the correct amounts. Harriet uses:

answer

Materials requirement planning

question

What is the first step in the organizing process?

answer

Determine specific work activities necessary to implement plans and achieve objectives

question

Management development programs are designed to improve the skills and broaden the knowledge of current or future managers and executives

answer

True

question

Collective bargaining encompasses all of the following issues EXCEPT ________

answer

Investor relations

question

Which of the following statements is correct regarding team conflict?

answer

it often improves team performance

question

During the performing stage, team members ________

answer

Focus on solving problems

question

Only a small percentage of labor-management contract negotiations involve a work stoppage.

answer

True

question

Mass production is highly efficient for producing small quantities of unique items.

answer

False

question

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) ________.

answer

Opportunity

question

The first step in developing a competitive retailing strategy is identifying a target market.

answer

True

question

What method of transportation accounts for the majority of finished goods finding their way to consumers?

answer

Trucks

question

The fundamental purpose of promotion is to persuade and influence customers to purchase a product

answer

True

question

The Internet is considered an indirect method for connecting with customers.

answer

False

question

A buyer's market is one characterized by a shortage of goods and services.

answer

False

question

The utility that is created when a salesperson at a car dealership completes the sales contract is ________ utility.

answer

Ownership

question

Tabitha is a research specialist in a marketing division. She is working on a project that involves searching through customer files to detect spending patterns or trends that her company could target to increase sales. Tabitha is ________.

answer

data mining

question

Some products can be highly profitable during the later stages of their life cycle because the initial development costs already have been recovered

answer

True

question

A university offers alumni a special Visa card with the university's logo printed on the front. Each time the cardholder uses the card, the university receives a small percentage of the amount charged. This is an example of _______

answer

an affinity program

question

Many large retailers sell both a private brand and a manufacturer's brand, which are produced by the same manufacturer

answer

True

question

Advertising can be a global activity

answer

True

question

If a company's target market is small and buyers are concentrated in a specific geographical area, which distribution channel would be most effective?

answer

Direct Channel

question

The new-product development stage that deals with the elimination of ideas that do not mesh with overall company objectives is ________

answer

screening

question

Logistics is the process of coordinating the flow of goods, services, and information among all members of the supply chain.

answer

True

question

Genuine Products has been involved in intensive price competition with one of its products. Profits are low and market researchers are concerned that losses will soon occur due to a reduced market for the item. This product has reached the ________ stage of the product life cycle

answer

Decline

question

________ involves the use of innovative, low-cost marketing efforts to attract customer attention.

answer

Guerrilla marketing

question

A manufacturer of a new moisturizing shampoo offers free samples to all potential consumers. The product is generally in the introductory stage

answer

true

question

A singles business aims its promotions toward singles between the ages of 25 and 40 who reside in a specific county. The business has ________.

answer

selected a target market

question

Salespeople determine if prospects have the financial ability and authority to buy through ________.

answer

qualifying

question

Television is an attractive advertising medium because it ________

answer

offers mass coverage and flexibility

question

Water transportation is generally more expensive than transportation by truck.

answer

false

question

Luis wants a particular brand of golf ball, but his local pro shop is out of stock. Instead of buying a substitute, Luis goes home and orders his preferred brand online. Luis is at which stage of brand loyalty?

answer

brand insistence

question

Since potential customers are unaware of a product during its introductory stage, initial promotion concentrates on ________

answer

informing the market about the item and explaining its features, uses, and benefits

question

A company includes an "instant coupon" as part of a product's package, giving the buyer a reduction off the retail price. What is the company attempting to do?

answer

increase sales

question

If you did a breakeven analysis for your firm, it would be possible for you to show management the point at which ________.

answer

The level of sales that will cover all of the company's costs

question

Goods and services such as haircuts, GPS systems, and computers that are purchased for end users are examples of ________.

answer

Consumer products

question

One product may be considered a shopping product by one consumer and a convenience product by another consumer.

answer

True

question

Which classification of business goods is consumed over a long period and usually involves large sums of money?

answer

Capital items

question

A food producer's goods are carried by thousands of grocery stores across the country. Which of the following distribution channels is the manufacturer most likely to use?

answer

Producer to wholesaler to retailer to consumer

question

Coppertone manufactures sunscreens with various SPF factors, which constitutes the company's ________.

answer

product line

question

price decreases become common during a products maturity stage

answer

true

question

The breakeven point determines at which point to halt production because sales beyond the breakeven point result in losses to the firm.

answer

false

question

The buyer-seller communication in _________ occurs during a face-to-face meeting or via telephone, videoconference, or interactive computer link

answer

personal selling

question

Aidan is tired of doing his laundry at the local laundromat and would like to buy a washer and dryer for his apartment. In the Saturday paper, he notices that a retail store is having a half-price sale. Aidan is at what step of the consumer behavior process?

answer

searching for alternatives

question

The era in marketing history characterized by the notion that a good product will sell itself is known as the ________ era.

answer

production

question

What can a firm do if it is too difficult or expensive to have salespeople meet all potential customers in person?

answer

use telemarketing

question

The future attitudes of most prospects are affected by the first impression they form of the salesperson. Therefore, salespeople ________.

answer

should carefully prepare their approach to potential customers

question

Personal selling is often used for technically complex products

answer

True

question

A consumer who is at the stage of brand insistence will go out of their way to buy a product belonging to that brand, whether it be traveling to a store farther away or making an online purchase.

answer

True

question

Dunkin' Donuts uses __________ advertising when it tells people that "hard-working" people prefer their coffee over the high-priced Starbucks.

answer

comparative

question

Some firms will avoid the process of test marketing in order to avoid having their competition learn of their strategies

answer

true

question

Maria owns a store that prepares gourmet chocolates, which are hand-made and sold on the premises. What type of product is Maria selling?

answer

specialty

question

Physical distribution is a major focus for logistics management.

answer

True

question

One of the most common forms of segmenting consumer markets uses characteristics such as age, income, household size, and/or ethnic group. This is known as ________ segmentation.

answer

demographic

question

In which stage of the product life cycle do competitors enter the field with similar offerings?

answer

Growth stage

question

Explaining the hidden benefits of ownership can enhance a product's value.

answer

true

question

If a product sells for $20 and the variable costs are $14, then the per-unit contribution to fixed costs is $34

answer

false

question

Dell Computer is offering $100 cash back on the purchase of a computer. This is an example of a(n) ________.

answer

Rebate

question

In the movie, The Social Network, the actor portraying Mark Zuckerberg is featured wearing products by Gap and the North Face. This form of promotion is known as ________.

answer

product placement

question

The current marketing period where companies emphasize customer satisfaction is referred to as the ________ era

answer

relationship

question

The first step in the sales process is to identify the potential customer.

answer

True

question

n breakeven analysis, the costs that change with the level of production are considered ________ costs

answer

variable

question

Customers who choose one brand over another are displaying ________

answer

brand preference

question

Peapod is an online grocery service that saves customers time by selecting, packing, and delivering groceries to customers. Peapod is utilizing a ________ retail strategy

answer

customer service

question

Ida works on creating ways to ensure that customers receive goods at the right time and correct location. Ida is involved in her firm's ________ strategy.

answer

distribution

question

In which stage of the product life cycle do sales reach a saturation level, making further sales expansion difficult?

answer

maturity stage

question

An example of secondary data is an interview with 500 reliable consumers.

answer

false

question

McDonalds including a toy in each Happy Meal purchase is an example of a premium.

answer

true

question

Wal-Mart's pricing objective is based primarily on ________ while a jewelry store's pricing objective is based primarily on ________

answer

volume, prestige

question

Gender is an example of a factor in demographic segmentation

answer

True

question

Goods and services are classified as either consumer or business, depending on the ________.

answer

Purchasers of the particular item

question

Luke works as a marketing researcher and goes online to obtain information from government publications for census data and demographics. What type of data is Luke researching?

answer

secondary

question

Many marketers pay placement fees to promote their products in television shows or movies

answer

true

question

When Kroger's grocery store puts its own line of detergent on the shelf next to Tide, the store is promoting its ________ brand.

answer

private

question

Trademark protection extends to pictorial designs and slogans.

answer

true

question

Barnes and Noble starts earning 30 percent more profit a month after their new e-reader hit the shelves. Consumers continuously recommend the new product to friends. The e-reader is in the growth stage.

answer

True

question

Devin obtains research data based on the number of unique visitors to his company's Web site, as well as tracking types of orders and amount of money spent. Devin is acquiring what type of research data?

answer

primary

question

One of the most difficult areas of marketing decision making is pricing because these decisions are often subject to government regulation and public scrutiny.

answer

True

question

Promotion activities increase substantially when a product begins to enter the decline stage

answer

false

question

An outdoor store sells rafting and camping permits for a close-by national park. The store is creating place utility.

answer

true

question

Karen is aware of both Coke and Pepsi, but she buys whichever is on sale. Karen is at the stage of brand recognition but not yet at the stage of brand preference

answer

true

question

The end of the supply chain is when goods or services are delivered to marketing intermediaries.

answer

false

question

Elizabeth and Tom have an in-ground swimming pool installed in their back yard. About one week after installation, the salesperson telephones and asks if everything about the pool has met with their approval. The salesperson is ________________.

answer

conducting a follow up

question

Products purchased only after the consumer has compared competing products in competing stores on the basis of price, quality, style, and color would be classified as ________

answer

shopping products

question

Philippe owns a store that sells lampshades. The process of receiving money in return for lamp shades is ________.

answer

exchange

question

Local area networks allow computers to share the same printers, documents, and information.

answer

True

question

All short-term bank loans are secured, meaning that the borrower pledges specific assets as collateral.

answer

false

question

The price of a bond is affected by its interest rate.

answer

True

question

If a firm has a current ratio of 2.5, it means that for every $2.50 in ________ it has $1.00 in ________.

answer

Current assets, current liabilities

question

Deposit insurance shifts most of the financial risk of bank failures from depositors to ________

answer

the federal government

question

In the secondary market, firms and governments issue securities and sell them initially to the public.

answer

False

question

The most basic form of corporate ownership is ________

answer

common stock

question

A firm has $15 million in assets and $5 million in owner's equity. Therefore, the firm must also have $15 million in liabilities.

answer

False

question

Increasing leverage decreases management's flexibility in future financing decisions.

answer

True

question

A company's overall operating budget is a composite of many individual budgets for separate units of the firm.

answer

True

question

Bonds with the highest level of risk are rated AAA.

answer

False

question

Mac downloaded some company information into a spreadsheet so that he could work on it at home. When he returned to work, he inserted his memory card into his company computer. Within minutes, all of his hard drive files were corrupted. The most likely cause was a(n) ________.

answer

Computer Virus

question

A firm has $12 million in current assets, of which $8 million is inventory. If the company has $4 million in current liabilities, then its current ratio equals 1.0.

answer

False

question

Aaron is sitting at his computer preparing a new sales brochure. The brochure combines high-quality type, graphics, and photographs. What type of software is Aaron likely using to create the brochure?

answer

desktop publishing program

question

When a company offers stock for sale to the general public for the first time, it is called an initial public offering.

answer

True

question

Camille is an accountant who works for a firm providing auditing services to other businesses. Camille is a public accountant.

answer

True

question

Who is recognized worldwide as the body with sole responsibility and authority to issue pronouncements on international accounting standards?

answer

IASC

question

The ________ is a collection of financial markets in which previously issued securities are traded among investors.

answer

Secondary Market

question

The process that periodically checks actual revenues and expenses against forecast values is ________.

answer

Financial control

question

Which of the following current assets is NOT included when calculating the acid-test ratio?

answer

inventory

question

________ are investment companies that raise funds from wealthy individuals and institutional investors and use the funds to make investments in both public and private companies

answer

Private equity funds

question

If the Fed pushes interest rates lower, policymakers at other nations' central banks will most likely ________

answer

follow suit and drop their rates as well

question

Depreciation is reported as an expense on the firm's income statement but does not involve any actual cash.

answer

True

question

When a firm receives goods or services from a supplier and agrees to pay for them at a later date, this arrangement is called ________.

answer

trade credit

question

Kate is the Executive Director of a local food bank and is assessing the financial situation of her not-for-profit organization. Kate uses a(n) ________ to determine whether revenues from contributions and other sources will cover operating costs.

answer

income statement

question

Drew purchases a new game for his computer. He will load the program onto the computer's hard drive. Drew is buying ________.

answer

application software

question

________ activities provide the necessary funds to start a business and to expand it after it begins operations.

answer

financing

question

The Fed's only tool to enact monetary policy is open market operations.

answer

false

question

All of the following are types of securities EXCEPT ________.

answer

cash

question

Decision support systems provide support to people making business decisions.

answer

True

question

A firm has total assets of $50 million and owner's equity of $40 million. What is the firm's debt ratio?

answer

20 percent

question

On a balance sheet, total assets must always equal the sum of liabilities and owners' equity

answer

true

question

________ tie geographic regions together using long-distance telephone lines or satellite transmissions.

answer

wide area networks

question

If the Fed reduced reserve requirements, ________

answer

interest rates would fall

question

Assets can include intangible possessions such as patents and trademarks.

answer

true

question

Miles is an accountant and works for a firm that provides tax planning and preparation services to other businesses. Miles is a management accountant.

answer

False

question

Bondholders are creditors; therefore, they have a claim on the firm's assets that must be satisfied before any claims of stockholders in the event of the firm's bankruptcy, reorganization, or liquidation.

answer

true

question

The SEC requires virtually all new public issues of corporate securities to be registered.

answer

true

question

Daily business decisions are generally unaffected by accounting information; long-term decisions, however, are affected by accounting information and the interpretation of financial reports.

answer

false

question

Hedge funds are private investment companies open only to qualified large investors.

answer

true

question

Sales figures are an example of data

answer

true

question

Gavin's company has installed a system to make data transmission secure. Therefore, he can use the Internet to send and receive sensitive data. Gavin's company has installed a(n) ________.

answer

virtual private network

question

Milwaukee Fabrication has $80 million in assets and $50 million in owners' equity. How much does the firm have in liabilities?

answer

30 million

question

A(n) ________ is a transaction in which one company buys another.

answer

acquisition

question

m2 includes _______ m1

answer

all of

question

Expenses that have been incurred (such as wages) but have yet to be paid, are reported on the balance sheet as ________.

answer

accruals

question

Raising reserve requirement tends to increase the supply of money, thereby lowering interest rates.

answer

false

question

The New York Stock Exchange (NYSE) is a secondary market.

answer

true

question

In most firms the controller is the chief accounting manager.

answer

true

question

Major current assets include all of the following EXCEPT ________

answer

stockholder's equity

question

The two largest stock markets in the world are the ________ and the ________.

answer

New york stock exchange, nasdaq stock exchange

question

Owners of common stock expect returns on their investment in the form of cash dividend payments, expected price appreciation, or both.

answer

true

question

An international firm's consolidated financial statements must reflect any gains or losses due to changes in exchange rates during specific periods of time.

answer

true

question

Because changing the reserve requirement can have a sudden and dramatic impact on the money supply, the Fed rarely uses this tool.

answer

true

question

Dana's office in south Florida was destroyed by a hurricane last year, and she lost numerous company documents. After relocating, Dana took no chances and implemented ________, in which she backed up her data in a secure online storage service.

answer

a disaster recovery plan

question

Grid computing is a cost-effective solution for smaller-sized companies.

answer

true

question

Assume a company buys a machine worth $1 million and pays for it by borrowing the funds from a bank. The firm's assets will rise by $1 million and its liabilities will decrease by $1 million.

answer

false

question

Central Valley Pharmaceuticals needs to raise funds to buy new production equipment. The financial manager would probably suggest that his company raise debt capital by ________.

answer

Borrowing money from a bank

question

Which of the following represents the accounting equation?

answer

Assets= liabilities+owners equity

question

Jeff wants to purchase a lower-risk bond. Therefore, he should buy a government bond.

answer

true

question

Sofia is an investment advisor and wants to recommend a stock she happens to own. How should Sofia best deal with this potential conflict of interest?

answer

She should disclose the fact that she owns the stock while making the recommendation

question

________ has a blend of both planned and free enterprise system

answer

a mixed market economy

question

"Newman's Own" is a food product line that gives 100 percent of its after-tax profits to charity. This company is practicing ________.

answer

social responsibility

question

Joint ventures allow companies to share risks, costs, profits, and management responsibilities with one or more host country nationals.

answer

True

question

A balanced budget occurs when ________.

answer

taxes, fees, and borrowings are equal to government spending for the year

question

The objective of an import quota is to ______

answer

protect domestic industries

question

BMW and Toyota set up a factory in Brazil to produce minivans. Slightly different minivan versions are sold in Brazil—one as a Toyota and one as a BMW. This is an example of ________.

answer

joint venture

question

Mike was a foreman at Hi-Way Construction and discovered his company was deliberately using faulty materials for a project. Although Mike was worried about his family's financial security if he lost his job, he went to authorities and informed them of the potentially dangerous construction. Mike's action is called ________.

answer

whistle blowing

question

All of the following are current social issues related to business's responsibilities to employees EXCEPT ________.

answer

discrimination against workers under 40 years of age

question

Less-developed countries represent a lucrative market for U.S. firms because of their huge population.

answer

True

question

Which of the following would result from devaluation of the U.S. dollar?

answer

US goods would sell for less abroad

question

The business philosophy that advocates determining what consumers want and need, and then designing products to satisfy those needs, is known as ________.

answer

Consumer orientation

question

________ is a commonly used measure of productivity.

answer

GDP gross domestic product

question

Patents, trademarks, and intellectual property are important concerns in the ___________ environment.

answer

legal

question

The United States has a trade surplus with which of the following items?

answer

services

question

The purpose of a restrictive monetary policy is to:

answer

curb rising prices and overexpansion

question

In order to remain viable, not-for-profit organizations need to focus on profits even more than the public service they provide.

answer

false

question

Most industrialized nations operate economies based on ________.

answer

private enterprise system

question

When a business employs an outside company to handle all customer correspondence and phone calls, the business is ________ its customer service department.

answer

outsourcing

question

The equilibrium price is established when the quantity ________.

answer

purchased is equal to the quantity offered

question

3 types of unemployment are

answer

frictional cyclical and structural

question

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 ________.

answer

the private enterprise system

question

National governments sometimes take deliberate action to devalue their currencies as a way to increase exports and stimulate foreign investment.

answer

true

question

Starbucks' efforts to go green with recyclable cups is an example of social responsibility.

answer

true

question

Even with advances in management and communications, manufacturing still accounts for most of the annual output in the United States.

answer

false

question

Amit, CEO of Charter Chemical, has recognized the financial opportunities in China. Amit has hired a foreign freight forwarder to coordinate selling Charter Chemical's products outside the United States. Charter Chemical is now involved in _______

answer

direct exporting

question

Just as with a for-profit business, the first priority for a not-for-profit organization is making a profit.

answer

false

question

A key element of the production era was the use of consumer research.

answer

false

question

A joint venture is a partnership between companies formed for a specific undertaking.

answer

true

question

The two major policy tools available for controlling economic activity are ________

answer

monetary and fiscal policies

question

Employees should always be loyal, regardless of the situation

answer

false

question

Paying corporate taxes is an example of corporate philanthropy.

answer

false

question

When 3M managers decided to manufacture Post-it notes, a new product was born. This was an example of ________ in action.

answer

creativity

question

Nurturing customer loyalty by gathering knowledge of customer needs and preferences is an approach cultivated in the ____________.

answer

relationship era

question

Controversies involving the World Trade Organization (WTO) include pollution and human rights abuses.

answer

true

question

Henry Ford is noted in business history for introducing the moving assembly line, which greatly reduced the cost of producing a car. Assembly lines first became common during the ________

answer

production era

question

The managerial quality of vision is the ability to perceive marketplace needs and what an organization must do to satisfy them.

answer

true

question

All of the following are typically part of the not-for-profit sector EXCEPT ________.

answer

hotels

question

Tanisha is a diabetes educator at a local clinic. Recently, she was offered a lavish trip by a sales representative who has been pushing the clinic to use his company's diabetes supplies. Tanisha declined the gift. Which ethical challenge did she face?

answer

conflict of interest

question

Employers expect employees to generally act in the best interests of the organization.

answer

true

question

Rene's boss has offered him a raise if Rene agrees to spend the night with her. This is an example of:

answer

sexual harrassment

question

Companies that adhere to high ethical standards ________

answer

often make better investments in the long run

question

Diverse employee teams tend to perform ________ and develop ________ than do homogenous employee groups.

answer

more effectively, better solutions

question

A U.S. company operating in the European Union (EU) is required to adhere to European regulations.

answer

True

question

A company removes a profitable product from the market because it may be dangerous. This company is demonstrating ________.

answer

Ethical Behavior

question

The conversion of a publicly held company into privately held businesses would be an example of ________.

answer

privatization

question

A country with a balance of payments surplus means ________.

answer

monetary inflow exceeds monetary outflow

question

When Google opened offices in Tokyo, London, and Sydney, they were utilizing ________ by relocating business activities to lower-cost locations overseas.

answer

offshoring

question

according do a supply curve, _______

answer

as prices rise, the quantity of a product that is supplied also rises

question

The four different types of market structure in a private enterprise system are ________.

answer

pure competition, monopolistic competition, oligopoly and monopoly

question

Consumers often turn to lower-priced retailers for the goods they need during a business cycle of ________.

answer

recession

question

Assume a nation has a comparative advantage in the production of clothing. If the value of this country's currency rises, ________.

answer

its comparative advantage will decrease

question

The factors of production in an economic system are ________.

answer

natural resources, human resources, capital and entrepeneurship

question

________ is essential because it serves as a primary incentive for people to start companies, expand them, and provide consistently high-quality competitive goods and services.

answer

profit

question

A particular industry has many competitors, each of whom has little control over price. In addition, it is fairly easy to enter the industry. This industry is an example of ________.

answer

pure competition

question

Businesses exercise social responsibility for all of the following reasons EXCEPT ________.

answer

profits are guarunteed

question

When McDonald's franchises into foreign countries, they are engaging in direct international investment.

answer

false

question

Equilibrium price refers to the intersection of the supply and demand curves.

answer

true

question

Last year, the United States imported less from Switzerland, than it exported to Switzerland. Which of the following statements is true?

answer

the united states has a trade surplus with switzerland

question

Before the patent expired on allergy medicine Claritin, pharmaceutical company Schering-Plough was able to set its own price in the marketplace. From which type of competition did the company benefit?

answer

monopoly

question

The Federal Reserve can implement both expansionary and restrictive monetary policies.

answer

True

question

A formal statement that defines how the organization expects and requires employees to resolve ethical questions is ________.

answer

a code of conduct

question

In recent years, the value of the dollar relative to the euro has declined. What does this mean for European businesses exporting to the United States?

answer

european countries are more likely to import US goods or services

question

Social responsibility would include all of the following EXCEPT ________.

answer

making campaign contributions to politicians in the hope of obtaining a government contract

question

Which of the following statements is true of subcontracting?

answer

Subcontracting can unintentionally result in child labor or other unethical business practices

question

________ provides a running measure of consumer price changes.

answer

the consumer price index CPI

question

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 ________.

answer

an oligopoly

question

a trade deficit occurs when ______

answer

imports exceed exports

question

A surplus will occur when ________.

answer

price is above equilibrium point

question

When Target donates 5 percent of its federally taxable income to nonprofit groups, the company is highlighting its ________

answer

social responsibility

question

Many people rationalize unethical acts because they _______

answer

feel pressured on their jobs to meet performance goals

question

Equilibrium price is the prevailing market price at which consumers can buy an item

answer

true

question

Which of the following is considered to be the BEST example of pure competition in today's business environment?

answer

agriculture

question

inflation benefits customers with fixed incomes

answer

false

question

An understanding of religious holidays is essential in order to overcome ________ international trade barriers.

answer

cultural

question

Even though the United States manufactures textiles, China is able to produce them more efficiently. Thus, China has a(n) ________________ in manufacturing textiles.

answer

comparative advantage

question

capitalism is founded on _______

answer

the belief that competition among business firms best serves the needs of society

question

In general, as price of a good or service increases, the quantity demanded

answer

decreases

question

The Federal Reserve reduces the amount of money banks can lend. As a result, interest rates will ________ and economic growth will ________.

answer

increase,fall

question

Giant oil companies such as BP (British Petroleum) and ExxonMobil are engaged in oligopoly competition.

answer

true

question

The government owns the railroads, utilities, energy companies, and financial institutions. Ownership of small businesses is in private hands. This is an example of socialism.

answer

true

question

The ____________ of a coffee-growing company include its employees, customers, suppliers, and the community members where the company is located.

answer

stakeholders

question

If a foreign company offers steel in the United States below the company's cost of production, the company might be accused of ________.

answer

dumping

question

Each country's exchange rate is generally quoted in terms of another country's currency.

answer

true

question

a balance of payments deficit occurs when ______

answer

the net outflow of money from a country exceeds the net inflow of money from abroad

question

There is no direct competition in a particular industry, yet the firms have almost no control over pricing. This industry is an example of ________.

answer

a regulated monopoly

question

In a particular country, the government owns all the transportation companies, the utilities, the energy suppliers, and major manufacturing firms. Small businesses are privately owned. What type of economic system does this country have?

answer

socialism

question

The Equal Employment Opportunity Commission is beginning to focus on individual situations rather than systemic discrimination.

answer

false

question

Emily works for a pharmaceutical company and gives a presentation on the need to expand the company's geriatric division within the next ten years. Emily is helping to establish the company's ________.

answer

vision

question

Outsourcing is the use of outside vendors to produce goods or fulfill services and functions that were previously handled in-house or in-country.

answer

true

question

When Greenlawn Inc. finds itself losing contracts because Lo-Price Lawn Co. charges less money, Greenlawn responds by lowering its bids. This reaction demonstrates ________.

answer

the invisible hand of competition

question

An advertising agency representing two companies that compete with one another has an obvious conflict of interest.

answer

true

question

Feedback from customers is an example of a(n) ________ that requires organizational change.

answer

external force

question

All of the following are examples of corporate philanthropy EXCEPT ________.

answer

paying local property taxes

question

Formally stating that employees must not discriminate on the basis of race, gender, or age in their dealings with customers is something that could be found in a company code of conduct

answer

true

question

The Occupational Safety and Health Administration (OSHA) sets standards for workplace safety and investigates workplace accidents.

answer

true

question

When customers enter a supermarket and select their favorite brand of laundry detergent, they are exercising their right to freedom of choice.

answer

true

question

A country raises the tariff on imported cheese in order to increase its price above the price of domestically produced cheese. This is an example of ________.

answer

a protective tariff

question

in consumer orientation, a company creates a product first, and then determines if the consumer will likely purchase the product.

answer

false

question

Owning a business, by definition, means that you are an entrepreneur.

answer

false

question

what percent of US companies are considered small businesses

answer

99.7

question

most of the small businesses today are run by caucasian males

answer

false

question

many businesses fail during the early years because of

answer

inadequate financing

question

Most owners of small businesses rely on loans from financial institutions for their start-up funds.

answer

true

question

the _____ is most likely an example of public ownership

answer

city sewer system

question

Joint ventures are not ideal for international companies due to logistics and conflicting business laws.

answer

false

question

Which of the following is the leading cause of today's small business failures?

answer

management shortcoming

question

Sole proprietorships are concentrated mainly in corporations.

answer

false

question

The joining of Chemical Bank and Chase Manhattan Bank was an example of a ________.

answer

horizontal merger

question

Entrepreneurial environments created within companies can help firms retain valuable employees who might otherwise leave to start their own businesses.

answer

true

question

Kayla is opening a home HEALTH CARE business that she knows will do well in her community based on prior research. Although she must repay borrowed funds, Kayla chooses to maintain complete control over the business without having to answer to investors or partners

answer

debt financing

question

For small businesses, establishing a Website is generally cheaper than opening up a retail store.

answer

true

question

Which of the following persons is LEAST likely to become an ENTREPRENEUR

answer

calm low energy person

question

Concerning education and entrepreneurs, all of the following statements are correct EXCEPT

answer

obtaining a college degree in entrepreneurship is essential before starting your own business

question

All of the following are duties of the board of directors of a corporation EXCEPT ________

answer

guaranteeing the payment of cash dividends every year

question

Louis works as an artist for a major textile company and created an innovation for producing designs. The company will implement Louis's idea as part of its ________ strategy

answer

skunkworks

question

If Smith Steel buys Kennedy Iron Ore to assure itself of a constant flow of ore, this is an example of a ________.

answer

vertical merger

question

In 2009, Walmart started working together with another company in India by forming a __________ with Bharti Enterprises, Inc., one of India's leading business groups

answer

joint venture

question

Horizontal mergers are popular in the auto and healthcare industries

answer

true

question

Sole proprietorships have all of the following advantages EXCEPT ________

answer

unlimited life

question

Jada is opening her own bakery. Jada is an example of a(n) ________.

answer

entrepeneur

question

Entrepreneurs possess all of the following traits EXCEPT ________

answer

low self confidence

question

Students who graduate from entrepreneurship programs are more likely to be self-employed.

answer

true

question

Many small businesses prove successful when they become suppliers to large corporations.

answer

true

question

Michael is a successful financial advisor looking to invest money directly into a new consulting business in return for equity in the company. Michael is an example of a(n) ________

answer

angel investor

question

Elian wants to start a business. He takes a personality test and discovers he possesses a trait that may reduce the likelihood he will succeed. Which of the following is that trait?

answer

low tolerance for risk

question

Small businesses produce over 16 times more patents than large businesses each year.

answer

true

question

Desire for improved quality of life is often a motivation for becoming an entrepreneur.

answer

true

question

Entrepreneurs enjoy guaranteed job security because no one can fire them.

answer

false

question

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?

answer

foreign competition

question

The maximum number of shareholders is limited to ________ for a firm to qualify as a subchapter S corporation.

answer

100

question

High start-up expenses sometimes prove to be challenging for owners of small businesses.

answer

true

question

________ are pioneers of innovations that benefit humanity

answer

social entrepeneurs

question

If business owners in a partnership wish to limit liability, they have the option to ________.

answer

set up a limited partnership

question

The stock of Old Germany Brewery is totally owned by the Prechter family. When the family elected to move from a sole proprietorship to a corporation, the greatest concern was ________.

answer

double taxation

question

Small-business owners want to determine whether their companies meet the standards for small-business designation because:

answer

government agencies offer benefits designed to help small businesses compete with larger firms

question

All of the following are contributions of small businesses EXCEPT:

answer

they provide more job security than larger corporations

question

United Airlines' purchase of Continental Airlines combines the resources and capabilities of both firms to create the world's largest airline. The newly formed company is an example of a _____________.

answer

horizontal merger

question

Which type of merger results in decreased competition within the same industry?

answer

horizontal merger

question

Dina is a single mother who is required to work evenings and weekends at a local retail store. She is thinking of starting a consulting business primarily so she can _______

answer

enjoy a higher quality of life

question

James is putting together a business plan for his new bookstore and café. Which of the following will NOT be part of his business plan?

answer

a detailed, itemized budget for the entire fiscal year

question

A corporation operating outside its state of incorporation is known as a domestic corporation.

answer

false

question

An acquisition occurs when ________.

answer

one company purchases the property and assumes the obligations of another company

question

small businesses are not required to pay any taxes

answer

false

question

Franz and Arlene had an idea for a different type of ice cream. They struggled to open their own small business, and later, to expand production and distribution. Their products are distributed nationwide and their sales continue to increase. Franz and Arlene are examples of ________.

answer

classic entrepeneurs

question

Many entrepreneurs rely on personal savings or loans from business associates, family members, or even friends for start-up funds

answer

true

question

Angie wants to be her own boss, but she doesn't have an idea for a profitable business. What could Angie do to help her identify a successful business idea?

answer

make a list of her interests and abilities and a list of businesses that could match these interests and abilities

question

The average amount rewarded to owners of small businesses through Small Business Administration (SBA) microloans is $13,000.

answer

true

question

The set-aside program designates that a percentage of government contracts must be awarded to qualifying small businesses.

answer

true

question

Isabella owns 100 shares of IBM ________ stock, which means she has voting rights on company decisions at IBM, but only residual claims on the company's assets

answer

common

question

Although the average farm size has increased in recent years the majority of farmers operate as ________ businesses.

answer

small

question

Alexander has just opened a bakery & café in a busy New York City neighborhood. He has received an SBA-guaranteed microloan of $13,000. Alexander can use the microloan for all of the following, EXCEPT:

answer

to pay off outstanding business-related credit card bills

question

Most small businesses turn a profit within the first year

answer

false

question

Owners of small businesses can increase their chances of success if they:

answer

understand their own limitations

question

Assume that Microsoft decides to invest some of its excess cash by acquiring fellow Seattle-based Starbucks Coffee. This would be a ________.

answer

conglomerate merger

question

___________ use their own capital supplemented with government loans to invest in small businesses.

answer

SBICs small business investment companies

question

The Hewlett Packard purchase of Compaq is an example of a conglomerate merger.

answer

false

question

__________ must verify in writing the accuracy of their corporation's financial statements

answer

CEOs and CFOs

question

Twenty-first century innovations developed by small businesses include social networking sites and green energy industries.

answer

true

question

Devon and Keith opened a restaurant as a partnership. Two years later, Keith left the restaurant, and Devon discovered that Keith had charged numerous expenses to their account. These expenses resulted in thousands of dollars' worth of debt for the restaurant. What option does Devon have in this situation?

answer

business creditors will expect full payment from devon

question

According to surveys, the largest lenders to small businesses are ________

answer

commercial banks

question

Lucia is a chief financial officer in a large corporation. Her responsibilities include the full financial authority to make appropriations and authorize expenditures. Lucia is likely to be a member of ________ management.

answer

top

question

Social entrepreneurs recognize a societal problem and use business principles to develop innovative solutions.

answer

true

question

Logan is an entrepreneur who takes personal responsibility for the success or failure of his actions rather than believing in luck or fate. Which characteristic best describes Logan's entrepreneurial philosophy?

answer

internal locus of control

question

corporations have all of the following advantages EXCEPT _______

answer

favorable tax treatment

question

Ben is the owner of a small mushroom farm in Pennsylvania. Ben would like to join with other growers to create an organization that will promote and distribute mushrooms. The form of ownership that would be most suited for the growers is the ________.

answer

cooperative

question

After starting a web design company while still in college, Rodrigo sold the company after graduation. He then opened a computer repair shop; and most recently, he has started a marketing firm that specializes in social media. Rodrigo is an example of a(n):

answer

serial entrepeneur

question

Obtaining financing for an existing business is easier than it is for most start-up companies.

answer

true

question

The ________ industry represents the greatest percentage of minority-owned businesses

answer

service

question

Information technology can help entrepreneurs in all of the following ways EXCEPT:

answer

ensure financial success

question

When the Small Business Administration (SBA) assists a small business in applying for a major loan, it acts as the lender's ________

answer

guaruntor

question

The primary reasons people become entrepreneurs include all of the following reasons EXCEPT

answer

to create employment opportunities for other people

question

The Small Business Administration (SBA) provides all of the following EXCEPT:

answer

business incubators

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