Multiple Choice Questions6. ____ is the primary goal of business. A. Growth B. Profit C. IPO D. Marketing E. Strategy
7. Businesses differ from nonprofit organizations in that a business's focus is on A. price. B. goods. C. profit. D. organization. E. plans.
8. ____ have both tangible and intangible characteristics. A. Products B. Services C. Businesses D. Stakeholders E. Organizations
9. Profit is the reward for business in exchange for the ____ taken in providing products. A. expenses B. time C. energy D. risks E. markets
10. When purchasing, a consumer is actually buying a product's anticipated benefits and A. satisfaction. B. price. C. costs. D. productivity. E. form.
7. The principles and standards that determine acceptable conduct in business are referred to as: A. norms B. strategies C. ethics D. laws E. rules
8. Social ______ relates to a business's impact on society. A. responsibility B. strategy C. ethics D. law E. rule
9. The __ Act criminalized securities fraud and stiffened penalties for corporate fraud. A. EEOC B. Ethical Standards C. Internet Standards D. Sarbanes-Oxley E. SCF
10. What is considered ethical may differ depending on the __ in which a business operates. A. country B. culture C. trade bloc D. hemisphere E. industry
11. Which of the following statements about business ethics isfalse? A. It concerns the impact of a business's activities on society. B. It refers to principles and standards that define acceptable behavior in business organizations. C. It relates to an individual's values and moral standards and the resulting business decisions he or she makes. D. What is ethical is determined by the public, government regulators, interest groups, competitors, and each individual's personal moral values. E. Studying it can help you recognize ethical issues and understand how others make unethical decisions.
12. Studying business ethics will not necessarily A. help you recognize ethical issues. B. help you understand the importance of ethical decisions. C. inform you concerning the impact of the work group on ethical decisions. D. describe the ethical decision-making process. E. tell you what you ought to do.
7. When Solar Tech, Inc., of Taos, New Mexico, sells thin film solar panels to a firm in Tokyo, Japan, Solar Tech A. is importing the panels. B. is exporting the panels. C. has an absolute advantage. D. is increasing the trade deficit. E. is making a big mistake.
8. A favorable balance of trade exists when a country A. imports more than it exports. B. exports more than it imports. C. sends out more cash than it takes in. D. spends more than it saves. E. saves more than it spends.
9. The U.S. has a trade deficit because A. American companies sell more goods to other countries than foreign companies sell here. B. China stopped exporting goods to the United States. C. America imports more products than it exports. D. American consumers stopped buying Chinese goods and services. E. American consumers buy far more domestic goods and services than foreign goods and services.
10. The balance of payments includes all the followingexcept
A. a country's balance of trade. B. foreign investments. C. domestic investments. D. tourist expenditures. E. foreign aid and military expenditures.
11. When Madison flies to Italy from the United States on a British airline, stays in Italian hotels, and buys clothing in Milan to bring home after her trip, she A. decreases the trade deficit. B. is disloyal and unpatriotic. C. contributes to the negative balance of payments. D. buys American-made goods. E. does all of the above.
12. The primary problem with a trade deficit is A. that a country is exporting more than it is importing. B. that more cash is leaving the country than is entering. C. that a country is spending more than saving. D. that a country is saving more than spending. E. export taxes.
9. Sole proprietorships are taxed as A. A partnership B. Individual owner's income is taxed C. Shareholders are taxed D. Corporations E. Depends on the kind of sole proprietorship formed
10. One of the most popular and easiest to establish forms of business in the United States is the A. partnership. B. sole proprietorship. C. corporation. D. joint venture. E. cooperative.
11. About three-quarters of all businesses in the United States are sole proprietorships, and they earn somewhere around 10 percent of total business income. We may conclude that A. the average corporation is small, but earns little income. B. the average corporation hires many people, but makes little income. C. the average sole proprietorship is large, but earns little income. D. there are many sole proprietorships, but their average income is small. E. there are few sole proprietorships, and their average income is small.
12. Which of the following isnot a source of funds for a sole proprietorship? A. Bank loans B. Family members C. Personal funds D. Selling stock or issuing bonds E. Small Business Administration
13. All of the following are advantages of a sole proprietorshipexcept
A. ease of formation. B. secrecy. C. unlimited liability. D. control of the business. E. limited government regulation.
7. ________ has helped small businesses compete with larger businesses. A. Well-managed inventory B. Friendly customer service C. Technology D. Good management E. A diverse workforce
8. Your textbook uses the termsmall business to refer to an owner-managed business that employs not more than A. 100 people. B. 500 people. C. 15,000 people. D. 25 people. E. 1,000 people.
9. Which of the following isnot part of the definition of a 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 definition.
10. The Small Business Administration A. was established by the U.S. Chamber of Commerce to encourage the entrepreneurial spirit. B. is an independent agency of the federal government to provide managerial and financial assistance to small businesses. C. is a subsidiary of the Better Business Bureau. D. is a division of the federal government that is responsible for ensuring that newly formed businesses adhere to the law. E. is a U.S. Congressional agency that fosters the establishment of new businesses.
8. Management is a process A. that is unanimous. B. of dissipating resources. C. of coordinating resources to achieve objectives. D. that works well. E. mainly used in for-profit businesses.
9. Managers need adequate ____________ resources to pay for essential activities. A. Human B. Management C. Financial D. Corporate E. Information
10. All of the following are typical resources that must be acquired by each organization in the pursuit of its objectivesexcept
A. people. B. raw materials and equipment. C. money. D. information. E. laws and regulations.
11. If a manager is concerned about doing the work with the least cost and waste, then her primary managerial concern is A. effectiveness. B. accountability. C. delegation. D. hiring. E. efficiency.
12. All of the following are functions of managementexcept
A. directing. B. staffing. C. promoting. D. organizing. E. controlling.
26. Small businesses commonly employ A. line departmentalization. B. customer departmentalization. C. functional departmentalization. D. product departmentalization. E. geographical departmentalization.
27. All of the following are approaches to departmentalizationexcept
A. function. B. product. C. geographic region. D. customer. E. line.
28. A company that has departments for marketing, finance, personnel, and production is organized by A. product. B. function. C. territory. D. customer. E. geographic region.
29. If the type of departmentalization used by an organization tends to emphasize departmental units rather than the organization as a whole and decision-making is slow, then these would be weaknesses indicative of _______ departmentalization. A. territorial B. functional C. product D. customer E. process
30. _____ departmentalization arranges jobs around the needs of various types of customers. A. Product B. Functional C. Geographical D. Customer E. Matrix
7. If an employee is involved with transforming resources into goods and services, then he is in A. marketing. B. financing. C. human resources. D. operations management. E. budgeting.
8. If an employee is associated with producing goods, services, and ideas that satisfy the needs of customers, then she works most closely with A. financing. B. budgeting. C. production. D. human resources. E. operations.
9. The transformation process is A. the development and administration of activities that transform resources into goods, services, and ideas. B. the conversion of human, financial, and physical resources into goods, services, and ideas. C. labor, materials, energy, and money. D. goods and services. E. the development, promotion, pricing, and distribution of products.
10. The transformation process occurs in A. service companies. B. all organizations, regardless of product. C. manufacturing companies. D. idea consultants. E. government agencies.
11. Operations management includes responsibility for A. customer service. B. inputs and outputs. C. product development. D. pricing. E. promotion.
11. Which of the following groups is most rapidly increasing their presence in the business world? A. Women B. Minorities C. White males D. People under 30