OLS 274 Final - Flashcards with Answers

Q: Under communism, ________.

profits are not acceptable and the right to choose one\'s occupation is widely restricted

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As the number of suppliers of a product increases, the supply curve shifts to the ________ and the price will ________.

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right; fall

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Entrepreneurs have the most economic freedom in which type of economy?

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Capitalism

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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?

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Socialism

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During an economic recession, consumer spending ________ and unemployment ________.

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decreases; increases

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Control over price by individual firms is highest in a(n) ________.

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Pure Monopoly

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Under communism, ________.

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profits are not acceptable and the right to choose one's occupation is widely restricted

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According to a supply curve, ________.

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

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The three types of unemployment are ________.

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frictional, cyclical, and structural

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If the cost of producing a good or service increases, the supply curve will shift to the ________ and the price will ________.

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left; rise

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________ has a blend of both planned and free enterprise system.

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A mixed market economy

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Concerning a balanced budget, all of the following statements are correct EXCEPT:

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Balanced budgets will result in lower interest rates to all private borrowers.

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A country with a balance of payments surplus means ________.

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monetary inflow exceeds monetary outflow

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A Japanese insurance company purchases U.S. government securities. From the perspective of the United States, the balance of trade with Japan will ________ and the balance of payments with Japan will ________.

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not change; improve

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During the past decade, the value of U.S. imports and exports has ________.

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more than doubled

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A large part of the U.S. economy's growth comes from ________.

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the export and import of goods and services

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Online simulation training such as the Ethics Challenge can help to improve ethical ________.

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education

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

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sexual harassment

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All of the following groups are specifically identified by federal equal employment opportunity laws EXCEPT ________.

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obese persons

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Sean avoids using his office computer for personal use, even though his company does not have a specific policy forbidding it. Sean is at the ________ stage of ethical development.

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conventional

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

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a code of conduct

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Brianna focuses on her duty to family and work and bases her actions on the expectations of various groups in her life. At which stage of individual ethics is Brianna?

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conventional

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Development of a corporate culture to support business ethics occurs on each of the following levels EXCEPT ethical ________.

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success

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Which of the following is not a factor in determining an individual's ethical development?

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social audit

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Alejandro is seeking to revitalize his graphic design company with new innovations and has called a brainstorming meeting with his top designers. Alejandro is practicing ________.

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creativity

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All of the following are businesses EXCEPT ________.

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U.S. Postal Service

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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 ________.

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vision

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

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relationship era

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Donovan Corporation's sources of capital can include all of the following EXCEPT ________.

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cash dividends declared by Donovan's board of directors and paid to the stockholders

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In the U.S. economy, ________ are considered the reward for the risk of entering business.

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profits

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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 ________.

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production era

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Outsourcing ________.

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can make a firm more competitive

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Which of the following is NOT a new trend in hiring and the workforce?

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rigid job structures

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Which of the following is considered to be the most fundamental right of the private enterprise system?

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the right to private property

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

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to creat employment opportunities for other people

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Which of the following persons is LEAST likely to become an entrepreneur?

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A calm, low-energy person

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Which of the following statements best describes how entrepreneurs view failure?

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They view failure as a learning experience

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Enrique wants to start a new business, but his bank will not lend him the money he needs. Enrique saw an advertisement sponsored by a business organization that provides financing for promising small companies. The organization sponsoring the advertisement would be considered a(n) ________.

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venture capitalist

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Steve Jobs, the late CEO of Apple, helped make the company the world's largest marketer of MP3 players, smartphones, and tablet computers. Steve Jobs'.... contributed to this achievement.:

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vision

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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) ________.

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angel investor

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Entrepreneurs possess all of the following traits EXCEPT ________.

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low self-confidence

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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 ________.

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classic entrepreneurs

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All of the following are important characteristics of entrepreneurs EXCEPT:

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dependence on others

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An entrepreneur:

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accepts the risk of starting and running a business.

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Saul is the CEO of Summertime, Inc. He uses the resources of the firm to expand and diversify into winter sports areas. Saul would be classified as a(n) ________.

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manager

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Which of the following is a major consideration in selecting a business idea?

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Find something you love to do and are good at doing.

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Entrepreneurs and small-business owners both have all of the following qualities EXCEPT:

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growth of their company

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What makes entrepreneurs unique is their overwhelming desire to ________.

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make their business grow

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Lisa is trying to start a new business. A women's business network puts her in touch with an investor who is willing to invest in her company in exchange for an equity stake. This investor is a(n) ________.

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angel investor

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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?

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internal locus of control

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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?

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An detailed, itemized budget for the entire fiscal year

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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?

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low tolerance for risk

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Which of the following is NOT a reason that women start their own businesses?

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women are guaranteed larger loans from the SBA

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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 _____________.

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horizontal merger

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

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horizontal merger

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

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joint venture

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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.

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Top

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Compared to large businesses, which of the following statements regarding small businesses is CORRECT?

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Small businesses are more likely be eligible for government loans or for government purchasing programs.

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

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vertical merger

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

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horizontal merger

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

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commercial banks

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Alternatives to private ownership include ________.

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public ownership and collective ownership

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Many businesses fail during the early years because of ________.

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inadequate financing

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

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Small

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Innovation is possible in small business because they ________.

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provide fertile ground for new ideas

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Of the following industries, which is most likely to be owned by a small business owner?

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home building company

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

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CEOs and CFOs

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Hewlett Packard (HP) is subdivided by its different lines (such as laptops, desktops, mobile devices, printers, and servers). HP is departmentalized by ________.

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product

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Employees thrive when they are given:

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authority to make decisions

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Leadership is most often associated with the ability to ________.

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inspire others toward high levels of achievement

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Guideposts by which managers define the organization's desired performance are called ________.

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objectives

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Minnesota ; Iowa Railway has plans in place to reroute trains in the event that floods or other natural disasters close some of the railroad's tracks. This is an example of ________ planning.

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contingency

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Generally, which type of manager establishes the company's vision?

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top management

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Based on employee performance appraisals, managers make objective decisions about all of the following EXCEPT ________.

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corporate outsourcing

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Juanita is the captain of her college basketball team. Her long-term goal is to be named to the All American women's basketball team. Juanita is motivated by ________.

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self-actualization needs

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According to Maslow, an individual's first priority is given to which level of need?

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physiological

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The purpose of the EEOC is to ________.

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investigate claims of discrimination

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Helène, an industrial sales representative, bought a cellular phone to use if she ever had car trouble while traveling between appointments. Which level of Maslow's need hierarchy is Helène addressing?

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safety

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Which of the following is NOT a trend in employee benefits?

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Employers are paying a greater percentage of health care costs.

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The suppler for Omega Corporation has offered the company a 5 percent discount if it will order more units less frequently. If Omega accepts the supplier's offer, the cost of carrying inventory will ________ and the cost of running out of inventory will ________.

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rise; fall

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

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production

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________ 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.

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Routing

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Sakura is a production manager and has decided that grouping machinery and equipment according to their functions works best at her company. What layout is her company using?

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process

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What is the task of production and operations management?

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to manage the use of people and machinery in converting materials and resources into finished goods and services

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The ABC Accountants do not standardize their service to customers because each customer has different needs. This is an example of ________ production.

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intermittent

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The want-satisfying power of a good or service is called ________.

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utility

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Banks most likely utilize a ________ layout.

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customer-oriented

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When choosing an appropriate vendor, production managers consider all of the following EXCEPT ________.

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dispatching

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Lauren's team members feel attracted to the team and motivated to remain part of it. Lauren's team can be characterized as ________.

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cohesive

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

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storming stage

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Maurice is a member of a semi-permanent team that performs the day-to-day functions of the organization. Maurice is a member of a(n) ________ team.

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work

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Feedback ________.

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helps determine whether a message was correctly interpreted

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Tom is an operating room nurse and notices the head surgeon is exhausted and disoriented. Tom decides to speak up, even though his actions defy the team ________ that surgeons outrank nurses.

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norm

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________ listening is the basis for effective communication.

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active

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Kara's team is engaged in problem solving and appears focused on accomplishing tasks. Kara's team is likely in which stage?

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performing stage

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Kellie is the leader of a problem-solving team. She is encouraging every member of the team to openly express differences and work through conflicts. Kellie's team is likely in the ________ stage.

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storming

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

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growth stage

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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.

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decline

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Advertising slogans, such as "Just Do It" or "Obey Your Thirst," are ________ that are given legal protection solely to the brand's owner.

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trademarks

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In a process called ________, products pass through a series of stages from their initial appearance to their decline.

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product life cycle

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Raoul's job is to make sure that his company's goods get from the warehouse to retailers in a timely fashion. Raoul's job involves the ________ function.

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distribution

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Ordering merchandise from eBay or Amazon.com is a(n) ________ form of non-store retailing.

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internet retailing

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Charles works for Whirlpool and is producing a new washer/dryer unit. He is collaborating with the marketing staff to arrange for a series of designs, tests, and functioning prototypes. Charles is working in which stage of new-product development?

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product development

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________ utility is created when the business firm converts raw materials into finished goods and services.

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form

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A focus group is a method of collecting ________ data and is a(n) ________.

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primary; survey method

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A convenience store offers ________ utility by being open 24 hours each day.

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time

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The era in marketing history characterized by the notion that the customer is always right is known as the ________ era.

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marketing

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The era in marketing history characterized by the notion that creative advertising would convince consumers to buy a product is known as the ________ era.

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sales

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________ refers to the actions of consumers directly involved in obtaining, consuming, and disposing of products and the decision processes that precede and follow these actions.

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consumer behavior

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________ is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.`

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marketing

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

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

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Companies that provide ________ for NASCAR teams are eager to spend millions in exchange for a direct association with the biggest spectator sport in the United States.

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sponsorships

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A paid, non-personal sales communication usually directed at a large number of potential buyers is ________.

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advertising

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A disadvantage of using ________ as an advertising medium is their short life span.

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newspapers

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The use of literature and unusual visual aids is part of the ________.

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demonstration

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

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should carefully prepare their approach to potential customers

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

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guerrilla marketing

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The process of finalizing a sale is the ________.

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closing

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On the end cap of an aisle at a grocery store, there is a display of breakfast cereals. This is called ________.

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point of purchase advertising

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The natural progression of a business begins with ________.

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financing

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The Ming Company sells $1,000 worth of goods on July 25 on credit. The customer sends the company a check on August 15. The customer receives the goods on September 1. Assuming the company uses accrual accounting, the sale will be recorded in ________.

answer

July

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Companies such as Coca-Cola generate more than half their annual revenues from sales outside the United States, including Europe. If the dollar gets stronger relative to the euro, what will be the financial impact on the company?

answer

overall earnings will decrease

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

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current assets; current liabilites

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All of the following are profitability ratios EXCEPT ________.

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inventory turnover

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Daniel wishes to create a financial blueprint for a future period that reflects such items as expected sales revenues, operating expenses, and cash receipts and disbursements. Daniel wants to create a(n) ________.

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budget

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Which of the following assets would be listed first on the assets side of a balance sheet?

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accounts receivable

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In the typical firm, the ________ is the chief accounting manager.

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controller

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The senior financial manager has the title of ________.

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CFO

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________ 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.

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private equity funds

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The term used to describe the benefits produced by a merger or acquisition is ________.

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synergy

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All of the following actions result in equity capital EXCEPT ________.

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issuing bonds

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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 ________.

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borrowing money from a bank

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Major current assets include all of the following EXCEPT ________.

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stockholders' equity

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A company would most likely finance ________ using short-term sources.

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inventory

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What type of financial institution raises money from investors by selling shares?

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mutual fund

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Securities are also called ________.

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financial instruments

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Which of the following is a depository financial institution?

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credit union

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Which of the following statements concerning the Fed is incorrect?

answer

credit unions and savings banks must belong to the Fed

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

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New York Stock Exchange; NASDAQ stock market

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________ is defined as the use of material nonpublic information about a company to make investment profits.

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insider trading

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An outside supplier used to provide computer and application support for managing an information system is known as ________.

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an application service provider

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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

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All of the following are advantages of VoIP EXCEPT ________.

answer

increased security

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