Question 1
Which of the following has NOT been identified as a basic consumer right?
a. Consumers have a right to safe products.
b. Consumers have a right to collude.
c. Consumers have a right to be informed about a product.
d. Consumers have a right to be heard.
e. Consumers have a right to choose what they buy.
Question 2
__________ occurs when producers, wholesalers, or retailers respond to increased demand with extremely high prices.
a. Price fixing
b. Gain taking
c. Price gouging
d. Recession pricing
e. Inflation
Question 3
The Ronald McDonald House program is a good example of a(n) _____________ stance to social responsibility.
a. accommodative
b. obstructionist
c. proactive
d. defensive
e. societal
Question 4
The Brazilian practice of jeitinho means
a. "to find a way".
b. "to win at all costs".
c. "on my honor".
d. "to dance together".
e. "to fight like a lion".
Question 5
Carbon monoxide emitted by automobiles contributes to
a. land pollution.
b. air pollution.
c. noise pollution.
d. kiting.
e. consumption.
Question 6
Which is the first step in establishing a social responsibility program?
a. Social responsibility must start at the top.
b. A committee of top managers must develop a plan.
c. Governmental initiatives must dictate starting a plan.
d. One executive must be put in charge of the firm's agenda.
e. The organization must conduct occasional social audits.
Question 7
Dangerous chemical and/or radioactive byproducts of manufacturing processes are called green rain.
a. phosphates.
b. exajoules.
c. toxic wastes.
d. spreaders.
Question 8
in the fall of 2001, _________ purchased a 20% stake in ImClone.
a. American Home Products
b. BioMed
c. IBM
d. Schering-Plough
e. Bristol-Myers
Question 9
Firms adopting a(n) ___________ stance to social responsibility do not necessarily or proactively seek avenues for contributing, but participate after solicitation.
a. accommodative
b. obstructionist
c. proactive
d. defensive
e. societal
Question 10
Retailers who charged very high prices during the panic immediately following September 11, 2001 could have been charge with
a. price fixing.
b. price matching.
c. unit pricing.
d. segmentation pricing.
e. price gouging.
Question 11
Best Brews buys coffee beans grown in South American and has them shipped to the U.S. for sale in their high-end coffee shops. In this example, Best Buys is _________ coffee.
a. buying back
b. brokering
c. exporting
d. servicing
Question 12
Which of the following is NOT mentioned as a common legal and political issue in international business?
a.quotas
b. tariffs
c. local content laws
d. business practice laws
e. real property taxes
Question 13
Many countries control bacteria and disease by banning certain agricultural products through
a. tariffs.
b. embargoes.
c. subsidies.
d. local content laws.
e. quotas.
Question 14
The rate at which the currency of one nation can be exchanged for that of another is called a(n)
a. balance of payments.
b. exchange rate.
c. floating interest rate.
d. trade surplus.
e. trade deficit.
Question 15
Which of the following large firms began their international operations as exporters?
a. Walgreens
b. Cisco Systems
c. UPS
d. USPS
e. Coca-Cola
Question 16
Tariffs that are imposed strictly to raise money for the government are referred to as ________ tariffs.
a. revenue
b. quota
c. subsidy
d. protectionist
d. union
Question 17
Using a(n) ________ strategy, the company finds a partner in the country in which it would like to conduct business.
a. branch office
b. replication
c. strategic alliance
d. independent agency
e. direct investment
Question 18
Toyota began selling cars in the United States during the
a. 1930's.
b. 1940's.
c. 1950's.
d. 1960's.
e. 1970's.
Question 19
In 1999, the U.S. charged companies from Japan and Brazil with __________ for selling steel at prices 70% below its normal value.
a. bribery
b. setting up a cartel
c. setting quotas
d. dumping
e. globalization
Question 20
The amount of Canadian softwood timber that can be imported is limited under a(n)
a. tariff.
b. embargo.
c. subsidy.
d. local content law.
e. quota.
Question 21
__________ is a system of collaborative goal settings that extends from the top of an organization to the bottom.
a. Equity theory
b. Two-factor theory
c. Hygiene theory
d. Management by objectives
e. Empowerment
Question 22
Joe Liemandt is the founder of
a. EDS.
b. Trilogy Software.
c BMC Software.
d. Wal-Mart.
e. Taylor Corporation.
Question 23
According to which of the following theories are workers solely motivated by money?
a. behavior theory
b. human relations theory
c. two-factor theory
d. classical theory
e. expectancy theory
Question 24
Participative management and empowerment results in
a. increased job satisfaction.
b. greater commitment by employees to organizational goals.
c. increased benefit costs.
d. both a and b.
e. both b and c.
Question 25
A challenging job and self-fulfillment can meet the ___________ needs level in the hierarchy of needs model.
a. social
b. self-actualization
c. physiological
d. esteem
e. security
Question 26
Which of the following approaches to human relations in the workplace reflects a basic theory of motivation?
a. classical theory
b. scientific management
c. behavior theory
d. contemporary motivational theory
e. all of the above
Question 27
Which of the following is designed to add one or more motivating factors to job activities?
a. process management
b. job redesign
c. job enrichment
d. MBO
e. team management
Question 28
At Trilogy Software, Joe Liemandt emphasizes
a. teamwork and risk-taking.
b. process improvement.
c. job redesign.
d. telecommuting.
e. reducing turnover.
Question 29
At United Systems, managers and employees meet to discuss organizational goals and set individual goals. Employees are evaluated and rewarded based on their achievement of these goals. United Systems uses a __________ system.
a. participative management
b. management by objectives
c. team management
d. job enrichment
e. flextime
Question 30
Job rotation is a form of
a. job enrichment.
b. management by objectives.
c. team management.
d. flextime.
e. participative management.
Question 31
Which of the following is a component of the marketing mix?
a. place
b. pricing
c. pricing
d. product
e. all of the above
Question 32
Xbox was created by __________ and released to the market in November ______.
a. Nintendo, 2001
b. Dell, 2000
c. IBM, 2000
d. Sega, 2001
e. Microsoft, 2001
Question 33
Products purchased for personal use are called
a. intangibles.
b. consumer goods.
c. industrial goods.
d. industrial services.
e. the advertising mix.
Question 34
Which of the following is NOT a method of marketing research?
a. surveys
b. observation
c. focus groups
d. experimentation
e. positioning
Question 35
Hospitals, churches, museums, and charitable organizations are called __________ markets.
a. reseller
b. industrial
c. institutional
d. government
e pricing
Question 36
Raw materials, integrated circuits, and surgical instruments are
a. substitute products.
b. industrial goods.
c. consumer goods.
d. marketing goods.
e. services.
Question 37
Data warehousing is
a. a marketing strategy that emphasizes long lasting relationships with customers.
b. the process of dividing a market into categories of customer types.
c. the study of consumer needs and wants, and the ways in which sellers can best meet them.
d. the process of collecting, storing, and retrieving data in electronic files.
e. the process of fixing, adapting, and communicating the nature of the product itself.
Question 38
Market segmentation is
a. a marketing strategy that emphasizes long lasting relationships with customers.
b. the process of dividing a market into categories of customer types.
c. the study of consumer needs and wants, and the ways in which sellers can best meet them.
d. the process of collecting, storing, and retrieving data in electronic files.
e. the process of fixing, adapting, and communicating the nature of the product itself.
Question 39
Which of the following best describes place utility?
a. Emphasizing lasting relationships with customers and suppliers.
b. Making products available when consumers want them.
c. Transferring legal possession to the consumer.
d. Making products available where consumers can conveniently purchase them.
e. Turning raw materials into finished products.
Question 40
Which of the following is NOT a component of the organizational market?
a. reseller markets
b. industrial markets
c. institutional market
d. government markets
e. retail markets
Question 41
When the quantity demanded exceeds the quantity supplied, a(n) __________ will result.
a. demand deficit
b. stoppage
c. equilibrium point
d. shortage
e. surplus
Question 42
Who is MOST closely associated with the Production Era?
a. Andrew Carnegie
b. Andrew Mellon
c. John D. Rockefeller
d. J.P. Morgan
e. Henry Ford
Question 43
Market forecasts are an example of
a. information resources.
b. physical resources.
c. capital.
d. labor.
e. entrepreneurs.
Question 44
Which of the following most accurately reflects the history of business in the US, from earliest to most recent?
a. Entrepreneurial Era, Industrial Revolution, Global Era, Marketing Era, Internet Era, Production Era.
b. Industrial Revolution, Production Era, Entrepreneurial Era, Marketing Era, Internet Era, Global Era.
c. Production Era, Industrial Revolution, Entrepreneurial Era, Marketing Era, Global Era, Internet Era.
d. Marketing Era, Entrepreneurial Era, Industrial Revolution, Marketing Era, Global Era, Internet Era.
e. Industrial Revolution, Entrepreneurial Era, Production Era, Marketing Era, Global Era, Internet Era.
Question 45
Of the following periods, which came first?
a. Entrepreneurial Era
b. Industrial Revolution
c. Global Era
d. Marketing Era
e. Production Era
Question 46
In the city of Westminster, market analysts have observed that all Christmas trees offered for sale will be purchased at a price of $20.00 and all demand will be satisfied. In this market, $20,00 is the
a. equilibrium price.
b. demand price.
c. supply price.
d. enterprise price.
e. margin price.
Question 47
In socialism, which of the following is most UNLIKELY to be owned by the government?
a. the banking industry
b. the communications industry
c. the transportation industry
d. the restaurant industry
e. the steel industry
Question 48
Which of the following eras was prompted by increased consumer demand after World War II?
a. Global Era
b. Industrial Revolution
c. Entrepreneurial Era
d. Production Era
e. Marketing Era
Question 49
On a graph showing the supply curve and the demand curve, the point at which the supply curve crosses the demand curve is referred to as _______.
a. the junction
b. the crossover
c. the equilibrium price
d. the law of demand
e. the breakeven point
Question 50
"Buyers will purchase (demand) more of a product as its price drops and less of a product as its price increases." This is referred to as
a. the buyers' code of conduct.
b. the eternal purchase guideline.
c. the "asking factor".
d. the law of demand.
e. the greater sucker theory.
Question 51
In a(n) __________ corporation, stock may be traded on the exchanges of several countries.
a. transnational
b. private
c. S-
d. limited liability
e. global
Question 52
Which of the following typically has voting rights, with each share carrying one vote?
a. common stock
b. preferred stock
c. bonds
d. options
e. futures
Question 53
Under a franchise arrangement, the buyer is called the
a. franchisee.
b. franchiser.
c. bank.
d. parent company.
e. wholesaler.
Question 54
Under this arrangement, the SBA works with a corporation founded by local citizens who want to boost the local economy to finance the small business, with the SBA's share not to exceed $500,000 for each small business.
a. guaranteed loans program
b. immediate participation loans program
c. venture capital subsidy program
d. local development companies program
e. long-term progressive loan program
Question 55
MasterCard is an example of a private or ________ corporation.
a. general
b. public
c. closely held
d. sole
e. limited
Question 56
Which of the following are recent trends in small business startups?
a. Entrepreneurs who cross over from big business.
b. Increased opportunities for minorities.
c. Increased opportunities for women.
d. New opportunities in global enterprise.
e. All of the above.
Question 57
Which of the following specializes in financing businesses that are owned and operated by minorities?
a. MESBICs
b. UNESCO
c. UNSCOMs
d. SEC
e. FERAC
Question 58
Jan Pennington is opening a flower shop and has decided to operate as a sole proprietorship. Which of the following is NOT one of the advantages of operating the business as a sole proprietorship?
a. freedom
b. simple to form
c. limited liability
d. low startup costs
e. tax benefits
Question 5
Alan has invested $100,000 in a new business. In the event that the business fails, Alan can lose no more than the $100,000 that he has invested. Alan has most likely invested in a
a. corporation.
b. limited partnership.
c. general partnership.
d. sole proprietorship.
e. either a or b.
Question 60
Which of the following guarantees holders fixed dividends?
a. common stock
b. bonds
c. mortgages
d. preferred stock
e. none of the above
Question 61
Which of the following is a selection technique?
a. application forms
b. interviews
c. aptitude tests
d. polygraph tests
e. all of the above
Question 62
Member of the International Brotherhood of Basketweavers have walked off the job based on the failure of contract negotiations between Collector Baskets, Inc. and the union representing the building maintenance staff. This is an example of a(n) __________ strike.
a. wildcat
b. sympathy
c. wage
d. economic
e. contingent
Question 63
Which of the following describes the skills, education, and experience required by a job?
a. staffing survey
b. advertising budget
c. job specification
d. employee analysis
e. on-the-job training agreement
Question 64
Jane, a supervisor, has offered George, a subordinate, a raise and promotion in exchange for a sexual relationship. This is an example of _________ harassment.
a. quid pro quo
b. hostile work environment
c. affirmative action
d. employment-at-will
e. reverse
Question 65
A standardized form that asks the applicant for information such as background, experience, and education is referred to as a(n)
a. resume.
b. letter of introduction.
c. advertisement.
d. job application.
e. performance recommendation.
Question 66
Employees hired to supplement an organization's permanent work force are called
a. union trustbusters.
b. contingent workers.
c. migratory workers.
d. flextime workers.
e. telecommuters.
Question 67
A ___________ allows wage rates to be renegotiated during the life of a labor contract.
a. cost-of-living adjustment
b. bargaining zone
c. strike
d. bargaining unit
e. wage reopener clause
Question 68
A(n) ____________ is a set of individuals who, by nature of one or more common characteristics, are protected from discrimination on the basis of that characteristic.
a. protected class
b. bargaining unit
c. union
d. worker's consortium
e. affirmative action
Question 69
After negotiations failed, Collector Baskets, Inc. may chose to use a(n) __________ to prevent union employees from coming to work.
a. wildcat strike
b. boycott
c. lockout
d. strikebreaker
e. economic strike
Question 70
Which of the following links raises performance levels in nonsales jobs?
a. bonuses
b. merit salary systems
c. wages
d. cafeteria benefit plans
e. workers' compensation insurance
Question 71
Which of the following is a benefit of treating departments as profit centers?
a. Control is narrowed and made easier.
b. Coordination is narrowed and made easier.
c. Top managers can see how units are performing.
d. A department can be treated as a profit center.
e. All of the above.
Question 72
Which of the following is a disadvantage of specialization?
a. Employees may derive less satisfaction from their jobs.
b. Employees may become bored and careless.
c. Employees may become overpaid.
d. All of the above.
e. Both a and b.
Question 73
When the organization is divided according to production processes, it is using __________ departmentalization.
a. functional
b. process
c. customer
d. geographic
e. finance
Question 74
In early 1999, Ford executives announced changes intended to eliminate corporate bureaucracy, speed decision making, and improve communication and working relationships among people at different levels of the organization. These changes are examples of the ________ function of management.
a. controlling
b. directing
c. organizing
d. planning
e. none of the above
Question 75
Which of the following best describes responsibility?
a. The power to make the decisions necessary to complete a task.
b. The liability of subordinates for accomplishing tasks assigned by managers.
c. The number of people supervised by one manager.
d. The duty to perform an assigned task.
e. The assignment of a task, responsibility, or authority by a manager to a subordinate.
Question 76
Vlasic has separate divisions to transform cucumbers into fresh-packed pickles, pickles cured in brine, and relishes. This is an example of __________ departmentalization.
a. customer
b. functional
c. geographic
d. process
e. product
Question 77
Shell Oil has recently purchased an executive conference center north of Houston as part of its program to become a __________ organization.
a. team
b. virtual
c. learning
d. boundaryless
e. flexible
Question 78
Which of the following begins when a manager assigns a task to a subordinate?
a. delegation
b. responsibility
c. centralization
d. decentralization
e. authority
Question 79
Authority given to a special group of employees that play central roles in the firm's daily operations is called
a. risk aversion.
b. committee and team authority.
c. line authority.
d. matrix organization.
e. international organization.
Question 80
Cypress Semiconductor employs a __________ organizational structure.
a. team
b. virtual
c. learning
d. boundaryless
e. flexible
Question 81
A __________ balance of trade results when a country exports more than it imports.
a. positive
b. beneficial
c. depressed
d. nominal
e. negative
Question 82
How might low inflation affect McDonald's?
a. McDonald's will pay higher prices for supplies and will charge customers more for its products.
b. McDonald's will pay relatively constant prices for supplies and will charge customers more for its products.
c. McDonald's will pay higher prices for supplies, but will be unable to increase the price paid by customers.
d. McDonald's will pay relatively constant prices for supplies, but will be unable to increase the price paid by customers.
e. McDonald's will pay much higher prices for supplies and will charge customers more for its products.
Question 83
Which of the following will influence a neighborhood grocery store?
a. an increase in unemployment in the area
b. pricing policies of competitors
c. other marketing policies of competitors
d. all of the above
e. none of the above
Question 84
____________ is the economic condition characterized by widespread increased prices without increased purchasing power.
a. Unemployment
b. Deflation
c. Expansion
d. Stability
e. Inflation
Question 85
Which of the following best describes real GDP?
a. Total quantity of goods and services produced by an economic system.
b. Total quantity and quality of goods and services that a country's citizens can purchase with the currency used in their economic system.
c. Total value of all goods and services produced within a given period by a national economy, through domestic factors of production measured in current dollars, or with all components valued at current prices.
d. Total value of all goods and services produced within a given period by a national economy through domestic and international factors of production.
e. Total value of all goods and services produced by a national economy within a given period, calculated to account for changes in currency values and price changes.
Question 86
Currently, the U.S. national debt is approximately
a. $590 million.
b. $59 billion.
c. $590 billion.
d. $5.9 trillion.
e. $590 trillion.
Question 87
The principle of _________ states that exchange rates are set so that the prices of similar products in different countries are about the same.
a. purchasing power parity
b. consumer price index
c. gross national product
d. equal prices
e. nominal GDP
Question 88
Which of the following statements about inflation is true?
a. The consumer price index is a good way of measuring inflation.
b. Inflation decreases the purchasing power of consumer dollars.
c. Inflation increases the purchasing power of consumer dollars.
d. Both a and b.
e. None of the above.
Question 89
Taken together, fiscal policy and monetary policy make up ________ policy.
a. economic
b. inflation
c. recession
d. information
e. stabilization
Question 90
In the Fortune list of most admired companies, _________ was ranked first in its industry in 2001 and last in the 2002 list.
a. Enron
b. Wal-Mart
c. Southwest Airlines
d. Merck
e. Canon
Question 91
Coca Cola's decision to increase sales in Europe by building European bottling facilities is an example of a(n)
a. tactical plan.
b. operational plan.
c. strategic tactic.
d. strategic plan.
e. operational tactic.
Question 92
Marjorie Scardino's focus as CEO of Pearson PLC is on maximizing sales.
a. looking for ways to increase efficiency and lower costs.
b. the personal and professional welfare of her employees.
c. reorganizing a large number of services into four core businesses.
d. developing new products.
Question 93
Developed by middle- and lower-level managers, these short-term targets are directed at daily, weekly, or monthly performance.
a. strategic goals
b. tactical plans
c. strategic plans
d. operational plans
e. tactical strategies
Question 94
Titles such as plant manager, operations manager, and division manager designate which of the following levels of management?
a. first-line managers
b. second-line managers
c. middle managers
d. top managers
e. supervisors
Question 95
Comparing actual performance against standards is an example of which of the following processes of management?
a. planning
b. optimizing
c. organizing
d. directing
e. controlling
Question 96
Which of the following managers depend most on conceptual skills?
a. first-line managers
b. top managers
c. middle managers
d. production managers
e. marketing managers
Question 97
Which of the following would be classified as an opportunity for an organization?
a. government regulations
b. competition
c. changing consumer tastes
d. strong reputation with consumers
e. recall of a competitor's product
Question 98
Pearson PLC is a(n)
a. British media company.
b. credit card and financial services company.
c. travel agency.
d. entertainment conglomerate.
e. farming cooperative.
Question 99
The last step in the decision-making process is
a. evaluating the alternatives.
b. implementing the chosen alternative.
c. defining the problem.
d. evaluating the effectiveness of the chosen alternative.
e. gathering facts.
Question 100
The titles supervisor, office manager, and group leader are examples of which of the following levels of management?
a. top management
b. middle management
c. first-line management
d. operations management
e. marketing management