This you can use it for future classes. As exams or quizzes

Term

Definition

In which economic system(s) does central governm provide basic services? a. Communism and socialism b. Capitalism and socialism c. Communism and capitalism d. Socialism only e. capitalism only

A. Communism and socialism

Term

Definition

Communist societies A. Appear to be efficient and equitable, at least in a. Appear to be efficient and equitable, at least in theory. theory b. Have a high standard of living c. Seldom have consumer shortages d. Have only one class of people e. Do not spend much on defenseTerm Definition

Businesses differ from nonprofit organizations in tha business's focus is on a. price b. goods c. profit d. organization e. plansTerm Definition

C. profit

The functions of organizing, staffing, planning and controlling are most closely associated with a. employees b. customers

C. managers

c. managers d. stockholders e. accountantsTerm Definition

A severe recession may turn into a(n) a. economic expansion b. black market economy c. depression d. economic contraction e. more stable economyTerm Definition

c. depression

In the history of the American economy, the period stage following the Industrial Revolution was known its emphasis on a. service b. technology c. manufacturing d. agriculture e. informationTerm Definition

C. manufacturing

If a very successful professional football team has be ignoring the players' use of illegal muscle-building steroids, then the owners should begin focusing o improving the organization's a. game plan b. productivity c. profitability d. defense e. ethicsTerm Definition

e. ethics

The Sarbanes-Oxley Act was passed to a. punish those who committed accounting fraud in late 1990's

e. help restore confidence in corporate america.

b. improve corporate profits c. help laid off employees get their jobs back d. help investors recoup their losses e. help restore confidence in corporate americaTerm Definition

The best way to judge the ethics of a decision is to a. ask a total stranger for an opinion b. call your lawyer for an up-to-date legal opinion c. look at the situation from a customer's or competitor's viewpoint d. call a reporter from your local newspaper to get t viewpoint e. assume everything will be okay as long as you do get caughtTerm

C. Look at the situation from a customer's or competitor's viewpoint

Definition

A set of formalized rules and standards that describ what a company expects of its employees is called a a. code of ethics b. opportunity c. moral philosophy d. guideline e. lawTerm Definition

a. code of ethics

the social responsibility of a business is important a. owners and investors b. employees c. governments d. competitors e. all of the aboveTerm Definition

e. all of the above

many of the laws regulating safety in the workplace enforced by a. the FTC

D. OSHA

b. The Department of Commerce C. NAFTA d. OSHA e. the ADATerm Definition

Which of the following is not highlighted in John F Kennedy's 1962 consumer bill of rights? a. the right to be heard b. the right to choose c. the right to minimum prices d. the right to safety e. the right to be informedTerm Definition

c. the right to minimum prices

An absolute advantage exists when a country has monopoly on a natural resource true or falseTerm Definition

true

to reduce dollars flowing out of the country, the uni states can limit the number of Japanese cars bein imported by imposing a(n) a. quota b. exchange control c. trade deficit d. embargo e. free trade zoneTerm Definition

a. quota

the translation of product names can be crucial in t success of a foreign marketing effort because of a. political barriers b. cultural barriers c. legal barriers d. export quotas

b. cultural barriers

e. body languageTerm Definition

which of the following is a major business resource t should be viewed as an asset to be developed and distributed to managers? a. data b. information c. information technology d. management information system e. knowledgeTerm Definition

b. information

___ uses the Internet to carry out marketing activit including buying and selling activities conducted onl a. customer relationship management b. e-commerce c. intranets d. extranets e. supply chain managementTerm Definition

b. e-commerce

lack of control is a disadvantage of sole proprietorsh true or false?Term Definition

false

Corporations cannot be sued true or falseTerm Definition

false

corporations distribute profits to their owners in th form of a. tax-free dividends b. interest c. retained earnings d. dividends

d. dividends

e. bribesTerm Definition

when two companies combine to form a new compa it is called a(n) a. merger b. acquisition c. tender offer d. leveraged buyout e. white knightTerm Definition

a. merger

small businesses are the heart of the US economic ad. they offer opportunities and express the freedom social system because people to make their own destinies a. they are owner-operated b. they allow for the development of new and bett products c. there are so few of them d. they offer opportunities and express the freedom people to make their own destinies e. they offer entrepreneurial opportunitiesTerm Definition

Which of the following is not part of the definition o small business a. it employs more than 500 employees b. it employs fewer than 500 employees c. it is independently owned and operated d. it is not dominant in its field e. all of the above are part of the definitionTerm Definition

a. it employs more than 500 employees

which of the following is an advantage of smallbusiness ownership? a. lower cost of formation b. high stress lever c. high failure rate

a. lower cost of formation

d. lack of flexibility e. poor reputationTerm Definition

the lack of funds to operate a business is normally called a. discounting b. creative financing c. financial pessimism d. under capitalization e. over capitalizationTerm Definition

d. under capitalization

many financial institutions decide whether to loan small business money based on its a. reputation b. business plan c. owners d. employees e. goalsTerm Definition

b. business plan

In a franchise business, the follwing generally happe a. the franchiser pays a fee to the franchisee b. the franchisee pays a fee to the franchiser c. both the franchiser and the franchisee pay fees to capital investors d. each pays separate fees to the other e. no one pays any fees to anyoneTerm

b. the franchisee pays a fee to the franchiser

Definition

many experts think that the __ demographic is th market of the future a. echo b. ethnic c. hispanic d. counter-culture

e. boomer

e. boomerTerm Definition

all of the following are typical resources that must acquired by each organization in the pursuit of its objectives except a. people b. raw materials and equipment c. money d. information e. laws and regulationsTerm Definition

e. laws and regulations

if a manger is concerned about doing the work with least cost and waste, then her primary manageria concern is a. effectiveness b. accountability c. delegation d. hiring e. efficiencyTerm Definition

e. efficiency

crisis management plans are the long-range plans developed by top management true or falseTerm Definition

false

the type of planning conducted on a short-term basi implement activities and objectives is called a. strategic b. static c. tactical d. comprehensive e. timely

c. tactical

Term

Definition

when jane pointed out to the supervisor that the number of nails used by the table assemblers had increased by 20 percent from the preceding month, was involved in a. planning b. organizing c. staffing d. controlling e. directingTerm Definition

d. controlling

describe the major functions of management p. o. c. d. s. police often create donut shops

p. planning o. organizing c. controlling d. directing s. staffingDefinition

Term

top management is most involved in a. developing the organizations strategic plans b. developing operational plans for a division c. day-to-day operational decisions d. regularly motivating assembly workers e. controlling the firm's performanceTerm

a. developing the organizations strategic plans

Definition

the specific operations of the organization, plan, division or department would most typicall involv a. top management b. middle management c. first-line management d. the board of directiors e. stockholdersTerm Definition

b. middle management

the development of a performance-appraisal system is primarily the concern of a. financial management b. human resources management d. marketing management e. administrative managementTerm Definition

b. human resources management

when making a decision, selecting the best option is objective procedure true of falseTerm Definition

false

decision making in a medium-sized corporation is important a. at all levels of management b. only to top management. c. primarily to administrative managers d. to finance planners e. to marketersTerm Definition

a. at all levels of management

organizational culture cannot be expressed informa through work habits and stories true or false?Term Definition

false

dress codes, work habits, extracurricular activities a stories are informal expressions of an organization a. grapevine b. lack of organization c. informality d. culture e. formalityTerm Definition

d. culture

organizational structure is defined as. a. the arrangement or relationship of positions within a. the arrangement or relationship of positions within an organization an organization b. a group of people working together to achieve an objective c. the division of labor into small specific tasks d. the grouping of jobs into working units e. the grouping of working units into departments or divisionsTerm Definition

a disadvantage of product departmentalization is th does not focus on the organization's overall objectiv true or false?Term Definition

true

the benefits of division of labor were described in T Wealth of Nations by a. henry ford b. john adams c. adam smith d. cyrus mccormick e. sam waltonTerm Definition

c. adam smith

a company that has departments for marketing, finance, personnel and production is organized by a. product b. function c. territory d. customer e. geographic regionTerm Definition

b. function

general motors is organized into these groups: GM Trucks, Chevrolet, Pontiac, Oldsmobile, Buick, and Cadillac. Its type of departmentalization is

e product

a. functional b. process c. customer d. style e. productTerm Definition

flat organizations have narrow spans of manageme true or falseTerm Definition

false

the basis of all formal organizational structures is t concept of a. free expression b. profit making c. delegation of authority d. customer departmentalization e. regular meetingsTerm Definition

c. delegation of authority

multidivisional structures b. organize departments into larger divisions, ofte a. are temporary based on geography, product, and/or customer b. organize departments into larger divisions, ofte based on geography, product, and/or customer c. bring together specialists from a variety of areas work on a single project d. make slower decisions e. are less innovativeTerm Definition

teams a. have individual and group accountability b. create collective work projects c. have a specific purpose that the team delivers d. have shared leadership roles e. all of the above

e. all of the above

Term

Definition

work groups a. have shared leadership roles b. have a specific purpose that the group itself deliv c. create collective work products d. have individual accountability e. encourage open-ended discussionTerm Definition

d. have individual accountability

if an employee is involved with transforming resour into goods and services, then he is in a. marketing b. financing c. human resources d. operations e. budgetingTerm Definition

d. operations

the transformation process is b. the conversion of human, financial and physica a. the development and administration of activities t resources into goods, services and ideas transform resources into goods, services and idea b. the conversion of human, financial and physica resources into goods, services and ideas c. labor, materials, energy and money d. goods and services e. the development, promotion, pricing and distribu of productsTerm Definition

operations management includes responsibility fo a. customer service b. inputs and outputs c. product development d. pricing e. promotionTerm Definition

b. inputs and outputs

if abc computer company is determining demand for its future products and how much consumers are willing to pay, the company will likely rely on a. the economy b. marketing research c. the competition d. the past e. intuitionTerm Definition

b. marketing research

minimizing inventory by providing an almost continuous flow of items from suppliers to the production facility is referred to as a. just-in-time management b. economic ordering c. material requirements planning d. logistics e. operations managementTerm Definition

a. just-in-time management

a planning system that schedules the precise quant of materials needed for production is called a. just in time management b. material-requirements planning c. economic order quantities d. flexible scheduling e. cycle time managementTerm Definition

b. material requirements planning

quality d. is a critical element of operations managemen a. is a concern only for manufacturing companies b. is a concern only for service providers c. refers to the price charged for a product d. is a critical element of operations managemen e. depends on employee's perceptionsTerm Definition

What is quality control?

quality control refers to the process and organization it uses to maintain its esablishedDefinition

Term

human relations is important in business primaril because a. it can prevent unions b. it affects productivity and products c. employees like it, although management doesn d. the government mandates it e. all of the aboveTerm Definition

b. it affects productivity and goods

good morale is likely to result in a. loyalty b. turnover c. absenteeism d. tardiness e. mistakesTerm Definition

a. loyalty

the hawthorne studies found that money was the primary motivator of employees. true or falseTerm Definition

false

frederick taylor and other early twentieth-century management theorists believed which of the follow would motivate employees to work hard? a. satisfactory pay b. adequate tools and long hours c. satisfactory pay and job security d. nice bosses and long vacations e. all of the aboveTerm Definition

c. satisfactory pay and job security

prior to the hawthorne studies, management theorists believed that the primary motivators of employees were job security and a. recognition b. money c. awards d. praise e. punishmentTerm Definition

b. money

what were the hawthorne stuides

physical conditions in the workplace such as light a noise levels, would stimulate employees to be mo productiveDefinition

Term

herzberg's motivational factors correspond to maslo physiological and security needs. true or false?Term Definition

false

based on maslow's hierarchy, a homeless person w most likely work toward fulfilling which of the follow needs? a. self-actualization b. esteem c. social d. security e. physiologicalTerm Definition

e. physiological

herzberg's two-factor theory proposes that a. the absence of work setting factors may dissatis a. the absence of work setting factors may dissatis workers workers b. factors such as comfortable working conditions w motivate employees to do a better job c. factors such as job security will motivate employe to do a better job

d. higher wages will motivate employees to do a better job e. lower wages will motivate employees to do a better jobTerm Definition

theory z is less formal and more personal than traditional management approaches true of falseTerm Definition

true

the assumption that expenditure of physical and me effor in work is as natural as play or rest is mostly closely associated with a. theory x b. theory y c. theory z d. equity theory e. behavior modificationTerm Definition

b. theory y

theory z includes many elements associated with a. the chinese approach to management b. the american approach to management c. the european approach to management d. the japanese approach to management e. none of the aboveTerm Definition

d. the japanese approach to management

Jane learned that, although she and June were bot hired as part-time salesclerks at the same time an have similar backgrounds, June is paid 1 more per ho Jane decided to stop cleaning dressing rooms on h shift because she thinks this is unfair. This is an exam of which theory? a. theory x b. theory y

d. equity theory

c. theory z d. equity theory e. expectancy theoryTerm Definition

Job rotation attempts to reduce the boredom creat c. giving workers a variety of tasks to do, moving fro by specialization of tasks by one to the other on a regular basis a. laying people off for short periods b. giving people longer breaks c. giving workers a variety of tasks to do, moving fro one to the other on a regular basis d. adding new tasks to a job e. all of the aboveTerm Definition

which of the following adds tasks to a job instead o treating each task as a separate job? a. job rotation b. job enlargement c. job enrichment d. job design e. job reductionTerm Definition

b. job enlargement

which of the following is not a potential problem e. telecommuting may increase job satisfaction an associated with telecommuting? productivity a. telecommuters may be left behind in today's fa pace of change b. telecommuters may create a security risk c. career advancement opportunities may be hinder for telecommuters d. telecommuting may blur the barriers between off and home e. telecommuting may increase job satisfaction an productivityTerm Definition

the planning function of human resources management includes determining the status of current personnel when planning human resource needs for the future true or falseTerm Definition

ture

a human resources manager deciding how many positions an organizations will need is engaging in which of the following activities a. recruiting b. planning c. training d. selling e. compensationgTerm Definition

b. planning

applicants can ask questions about a job, its compensation, working conditions and more, during interview true or false?Term Definition

ture

the manager at a Kmart store is probably paid a. a commission b. time wages c. piece wages d. by units e. a salaryTerm Definition

e. a salary

which of the following makes carrying out norma business operations difficult, if not impossible? a. a strike b. picketing c. a boycott d. the blue flue

a. a strike

e. an injunctionTerm Definition

what are some of the benefits associated with havin culturally diverse work force?

more productive use of human resources reduce conflict among employees more productive working relationships increased employee commitment, innovation, creativity, and serve needs off a diverse customer b

Term

Definition

if an exchange is to occur, each participant must b willing to give up something of value to receive something the other has true or false?Term Definition

true

james johnson has developed a new product, found store willing to sell it and has agreed to help promo the product's sale. he is engaging in a. retailing b. marketing c. researching d. discounting e. exchangingTerm Definition

b. marketing

the exchange process is a. value added to products b. at the heart of all business c. the price of a product d. satisfaction of the sellers needs e. the source of creditTerm Definition

b. at the heart of all business

what is marketing?

activities designed creating

distribution promoting pricing goods, services and ideasTerm Definition

xyz inc. is surveying customers as to what kinds o services they would like the company to add. it is involved in the marketing function of a. buying b. storing c. financing d. marketing research e. risk takingTerm Definition

d. marketing research

trying to determine buyer's needs is easy because marketers fully understand what motivates people buy things true or false?Term Definition

false

to effectively implement the marketing concept, aa. meet its own objectives and satisfy customers ne organization must a. meet its own objectives and satisfy customer nee b. make a large profit c. meet consumer needs and wants d. perform all of the marketing functions e. produce quality productsTerm Definition

during the industrial revolution, new technologie fueled strong ___ for products a. marketing research b. advertising c. marketing concept d. supply

e. demand

e. demandTerm Definition

the first major step of a marketing strategy is to a. determine the price b. select a target market c. develop an appropriate marketing mix d. add on a warranty feature e. put the product on saleTerm Definition

b. select a target market

if a company is focusing on delineating its market a developing the right combination of price, promotio distribution and product,t he company is developin a. market niche b. marketing strategy c. marketing policy d. marketing research experiment e. marketing discountTerm Definition

b. marketing strategy

after analyzing its own resources and unique abilitie company is now trying to determine what group o customers it can satisfy with a good or service. It is the process of choosing a a. production strategy b. target market c. sales plan d. geographical region e. product lineTerm Definition

b. target market

which of the following is used to focus on a specif target markets so that a satisfactory marketing strat can be developed? a. concentration approach b. total-market approach

e. market segmenation

c. customer segmentation d. audience segmentation e. market segmentationTerm Definition

In addition to distribution, the main components of marketing mix are a. product, price profit b. price, publicity, promotion c. product, promotion, price d. positioning, product, price e. promotion, price, positioningTerm Definition

c. product, promotion, price

the aim of ___ is to communicate directly or indirec with individuals, groups and organizations to facilita exchanges. a. promotion b. a marketing strategy c. a marketing plan d. a marketing approach e. a marketing mixTerm Definition

a. promotion

profits are negative in the growth stage true or falseTerm Definition

false

if a nationwide sandwich shop company introduces new sandwich in the midwest to try out its marketi strategy before offering the product across the coun it is using a. idea screening b. commercialization c. concept testing d. menu experimentation

e. test marketing

e. test marketingTerm Definition

a light bulb used to provide light for workers on a assembly line would be classified as what type of product? a. mechanical b. technical c. business d. commercial e. consumerTerm Definition

c. business

products such as furniture, audio equipment, bicyc and clothing are generally classified as a. convenience goods b. specialty goods c. shopping goods d. luxury goods e. capital goodsTerm Definition

c. shopping goods

if a product is experiencing negative profits and th company is spending a great deal of money on advertising to make the consumers aware of the product, the product is most likely in the following l cycle stage: a. growth b. decline c. introduction d. maturity e. intermediateTerm Definition

c. introduction

when a computer company initially charged a low p for a new computer and then raised the price afte gaining a large market share, it was using which pric

e. penetration

strategy a. low ball b. subterranean c. psychological d. skimming e. penetrationTerm Definition

services are usually distributed through a. direct marketing channels b. indirect channels c. a wholesale d. an agent e. a retailer and a wholesalerTerm Definition

a. direct marketing channels

the level of market coverage for Liz Clairborne cloth could be described as a. intensive distribution b. exclusive distribution c. selective distribution d. coordinated distribution e. none of the aboveTerm Definition

c. selective distribution

when ford pays a television network to air its commercial, it is using a. publicity b. advertising c. personal selling d. sales promotion e. packagingTerm Definition

b. advertising

if a manufacturer offers a wholesaler a special incen to carry a new product line, which strategy is bein applied

e. push

a. pull b. advertising c. bribery d. creative financing e. pushTerm Definition

bookkeeping is only one aspect of accounting and involves the recording of routine, day to day busine transactions true or falseTerm Definition

true

if sara sidle is self employed, state-certified account who provides various types of accounting services f different companies and organizations, she is proba a a. private accountant b. certified management accountant c. certified public accountant d. non certified accountant e. forensic accountantTerm Definition

c. certified public accountant

liquidity is judged by how easily an asset can be turn into cash true or falseTerm Definition

true

the financial document that has been likened to a snapshot of how the company's finances are doing that moment is called a(n) a. income statement b. balance sheet c. annual report d. budget

b. balance sheet

e. statement of cash flowTerm Definition

the owners contributions to a company and all earni retained to finance continued growth and produc deveopment are a. owner's equity b. assets c. liabilities d. revenue e. profitsTerm Definition

a. owner's equity

money functions as all of the following except a. a store of value b. a medium of exchange c. a measure of value d. a portable fiat e. none of the aboveTerm Definition

a portable fiat

when used to accumulate wealth, money functions a a. yardstick of value b. store of value c. measure of value d. medium of exchange e. transactionTerm Definition

b. store of value

in certain latin american countries, citizens spend th money as fast as they receive it in order to keep up w or stay ahead of the rapidly rising prices of consum goods. under these conditions, money is said to lac a. portability b. divisibility c. durability d. stability

d. stability

e. difficult to counterfietTerm Definition

another name for a savings account is a(n) a. interest deposit b. space deposit c. demand deposit d. time deposit e. certificate of depositTerm Definition

d. time deposit

to carry out its function of controlling the supply o money, the federal reserve board a. uses financial policy b. uses monetary policy c. prints money d. taxes issues e. destroys old moneyTerm Definition

b. uses monetary policy

the rate the federal reserve system charges banks f borrowing money from it is called the a. prime rate b. medium rate c. mortgage rate d. finance rate e. discount rateTerm Definition

e. discount rate

the major difference between banks and credit unio credit unions are owned and controlled by deposi a. is that a. credit unions are owned and controlled by deposi b. banks distribute their profits to depositors c. credit unions make large loans to corporations d. bank depositors vote for the bank officers e. credit unions have higher default rates than ban

Term

Definition

when the federal reserve buys securities, it a. decreases the money supply b. increased the money supply c. increases the amount of insurance for accounts d. clears up all of the checks in the system immediat e. reduces the percentage of deposits that banks m hold in reserveTerm Definition

a. decreases the money supply

another name for a checking account is a a. demand deposit b. money market account c. time deposit d. mutual fund e. cash depositTerm Definition

a. demand deposit

the federal reserve system was established by congr in 1913 to a. regulate the banking industry b. allow huge swings in the economy c. be dependent on congress politically d. reduce the money supply e. increase the money supplyTerm Definition

a. regulate the banking industry

cash, marketable securities, accounts receivable an inventory are also known as a. current assets b. current liabilities c. long term assets d. long term liabilities e. fixed assetsTerm Definition

a. current assets

the market value of common stock is the price at which it is currently trading true or falseTerm Definition

true

current assets include all of the following except a. accounts receivable b. accounts payable c. marketable securities d. inventory e. cashTerm Definition

b. accounts payable

short term debt obligations that must be repaid wit a year are a. long term assets b. long term liabilities c. current liabilities d. current assets e. fixed liabilitiesTerm Definition

c. current liabilities

a bond a. must be repaid according to the terms set in its a. must be repaid according to the terms set in its indenture indenture b. may be defaulted without penalty c. is the same as a stock d. is a fixed asset e. is a current liabililtyTerm Definition

if a company retains all of its earnings then it will n pay a. dividends b. taxes c. expenses d. bills

a. dividends

e. suppliersTerm Definition

the two biggest stock markets in the united states a a. american stock exchange and new york stock exchange b. chicago stock exchange and NASDAQ c. new york stock exchange and NASDAQ d. southeast regional stock exchange and new yor stock exchange e. tokyo stock exchange and nasdaq

c. new york stock exchange and nasdaq