Complete the mcq:
(Business Organizations)
1 Both socialism and communism are variations of:
Select one:
a. command economies.
b. competitive economies.
c. free-market economies.
d. plutocratic systems.
2 To be effective, empowerment will require lower-level workers to :
Select one:
a. have more training.
b. accept less responsibility and lower wages.
c. receive less training.
d. have written policies regulating each aspect of their work.
3 As a small business owner, Tanika can't afford to provide her employees with the high wages and benefits offered by big corporations. One way to retain her employees and create a high level of motivation would be to:
Select one:
a. threaten to fire her existing employees and hire new workers.
b. adopt a policy of promoting the workers who have been employed the longest.
c. empower her employees to develop their own ideas.
d. hire only family members, since they are more loyal.
4 Anita is employed as plant manager for Mojo Industries, Incorporated. Though she spends some time performing all management functions, she is particularly concerned with tactical planning and controlling. Anita's position would be classified as part of Mojo's:
Select one:
a. top management.
b. lateral management.
c. supervisory management.
d. middle management.
5 Which of the following policies would tend to foster entrepreneurship?
Select one:
a. establishing a currency that is tradable on world markets.
b. establishing more regulations to protect the environment.
c. developing policies to reduce corruption between individuals.
d. allowing public ownership of businesses.
6) All else held equal, socially responsible firms:
Select one:
a. are viewed more favorably by consumers.
b. enjoy significantly higher profits.
c. often experience customer loyalty problems.
d. fail to earn sufficient profits for their owners.
7) After personal savings, the next largest source of capital for entrepreneurs is from:
Select one:
a. large multinational banks.
b. the Small Business Administration.
c. state and local governments.
d. friends and family.
8 Patrick's Products has a manufacturing plant near Chicago. The plant specializes in compact washers and dryers for countries in which consumers have less living space. Patrick's Products participates in the global market through:
Select one:
a. importing.
b. dumping.
c. exporting.
d. balancing trade.
9 Managers who listen to their subordinates and allow them to participate in decision-making are using the ____________ style of leadership.
Select one:
a. autocratic
b. free-rein
c. participative
d. bureaucratic
10 Which of the following statements about partnerships is the most accurate?
Select one:
a. A partnership is simply a corporation with fewer than 100 owners.
b. A major advantage of a partnership is that it offers owners limited liability.
c. A major drawback of a partnership is that it is difficult to terminate.
d. Partnerships are taxed at the lowest corporate tax rate.
11 The legal case against Martha Stewart alleges that she:
Select one:
a. used illegal immigrant labor.
b. failed to establish a code of ethics for her firm.
c. sold illegal drugs to undercover government officials.
d. participated in insider trading.
12 Which of the following is a reason South America is relatively poor and there is less money available for entrepreneurial ventures?
Select one:
a. There is a lack of freedom to start businesses available in the South American economic systems.
b. The currencies of South America are not tradable on the world market.
c. South Americans are not born entrepreneurs.
d. South Americans operate businesses in free markets.
13Which of the following describes an environment in which data is instantly available via the Internet to organizational partners?
Select one:
a. networking
b. real time
c. virtual business
d. e-commerce
14 Daggie's Sandwiches, Inc., sells the rights to use its name and sell its sandwiches in a given market area to aspiring business people who are willing to pay agreed upon fees and meet certain contractual terms. Daggie's:
Select one:
a. is offering investors the opportunity to form limited partnerships.
b. is a franchisor.
c. creates private subsidiary companies.
d. offers a tax-free investment potential.
15 Ramon lives in Mexico City and is a Mexican citizen. He has several friends in the United States who own shares in an S corporation. Ramon would like to invest in this company. Ramon:
Select one:
a. can invest in this company, but must pay both U.S. and Mexican taxes.
b. cannot become a shareholder since he is not a citizen or permanent resident of the U.S.
c. can become a shareholder but cannot become a manager, and his income must be paid in pesos.
d. needs approval from the Mexican government before he can invest.
16 According to the boxed material entitled "Spotlight on Small Business" in Chapter 4, which of the following is true?
Select one:
a. Small businesses are not able to participate in philanthropy.
b. Charities need cash, not equipment.
c. Many entrepreneurs have a hard time determining how to start a charitable-giving program.
d. Nonprofit organizations focus on large contributions with well established reputations.
17 According to the boxed material entitled "Legal Briefcase," if a franchise opportunity sounds too good to be true, you:
Select one:
a. should act fast, because "the early bird catches the worm."
b. should investigate it carefully before making a commitment.
c. are probably being too skeptical, because franchising is the safest way to start a business.
d. should try to become the franchisor rather than the franchisee.
18 ___________ studies the operation of a nation's economy as a whole.
Select one:
a. Microeconomics
b. Socioeconomics
c. Econometrics
d. Macroeconomics
19 Which of the following determines the degree of decentralization a firm might use?
Select one:
a. the degree to which lower level management is empowered to make decisions
b. the chain of command used to follow the flow of authority from top of the hierarchy to the lowest levels
c. the geographical area served by the firm's operations
d. the degree of product standardization desired by the marketplace
20 Fourteen years ago, Murray noticed that a lot of people who bought personal computers really did not know much about how to use them and frequently suffered system crashes and other aggravations. He decided he could earn a nice profit by starting a consulting business to help other people overcome their computer woes. Although the business struggled at first, it has been quite successful for the last five years. Murray has many satisfied customers, and the business has grown to the point he now employs several workers. Murray's experience is an example of:
Select one:
a. socialism at work.
b. the principle of comparative advantage.
c. the invisible hand.
d. the multiplier principle.
21 Continental Foods is looking at a possibility of agreeing to a conglomerate merger. A likely reason Continental may be looking at this type of merger is a desire to:
Select one:
a. expand its market share.
b. develop spin-off companies.
c. diversify its operations.
d. meet the requirements to convert to a limited liability company.
22 Which of the following is a hurdle to be overcome in the global marketplace?
Select one:
a. lack of cultural understanding
b. lack of people with the desire and ability to buy your product
c. lack of global natural resources
d. lack of market opportunities
23 ________ provides information to businesses concerning where people live, what they buy, and how they spend their time.
Select one:
a. Sociography
b. Econometrics
c. Demography
d. Anthropology
24 Monique's Unique Tile Boutique offers decorative tile from around the world. The owner regularly travels overseas to locate the best and most unusual tile that foreign producers have to offer. Monique practices:
Select one:
a. importing.
b. licensing.
c. dumping.
d. exporting.
25 A business incurs a ___________ if its costs and expenses exceed its revenues.
Select one:
a. loss
b. liability
c. debit
d. dividendKaren Jobs is a supervisor who deals directly with a group of production line workers. She spends several hours each week developing specific work assignments and production schedules for the coming week so that the production department can meet its short-term production objectives. This suggests that a significant component of Karen's job involves:
Select one:
a. strategic planning.
b. contingency planning.
c. tactical planning.
d. operational planning.