If the employees of San Simeon Company successfully borrowed a large sum of money and purchased the firm from its current owners, we would call this event a
A) leveraged buyout
B) stock grab
C) management merger
D) hostile takeover
A
A few years ago, in order to gain market share, Blackboard, a well-known management system software company used by many colleges and universities, joined forces with WEB CT, another management system software company. Both companies were in the same indu
A
When Betsy Blackwell bought a Mighty Maid franchise, she became a
A) franchisor
B) limited stockholder
C) venture capitalist
D) franchisee
D
One of the key advantages of a franchise is
A) receiving management and marketing expertise from the franchisor
B) fewer restrictions on selling than in other forms of businesses
C) lower start-up costs than all other businesses
D) getting to keep all the
A
In his search for a franchised business that would satisfy his passion for the outdoors and earn him a decent living, Andrew noted that the shared profit criterion required of franchisors had significant variance. Some required franchisees to pay 7% of th
A
Advantages of __________ include reduced start-up fees and no territory restrictions.
A) fast-food franchising
B) online franchising
C) international franchising
D) multiple sector franchising
B
International franchising is
A) a successful growth area for both small and large franchises
B) about the same as domestic franchising in terms of costs
C) becoming increasingly difficult and thus is not growing
D) easy because you do not have to adapt yo
A
In a ___________, members democratically control the business by electing a board of directors that hires professional management to run the business.
A) corporation
B) cooperative
C) franchise
D) master limited partnership
A
When referring to fish, which of the following statements is reasonable?
A) Although risk means taking a chance at losing, your business is likely to always turn a profit.
B) Good business strategy encourages less risk, because the least risky ventures us
C
Profit is best described as
A) The owner's annual salary
B) The sales dollars that a business acquires, over time.
C) Revenue plus expenses, less taxes
D) The funds available for business growth, after expenses and salaries are paid.
D
Which of the following circumstances is most likely to reduce one's standard of living?
A) An increase in the cost of some goods such as escalating gasoline prices
B) A decrease in the cost of some goods such as a decrease in housing prices
C) Stable pric
A
When developing and maintaining good stakeholder relationships, companies find that
A) it's almost always best to continue to keep costs low, even if it means outsourcing most of the production.
B) insourcing is always a good trade-off to outsourcing.
C)
C
Which of the follow is (are) NOT considered a factor of production
A) knowledge
B) land
C) capital
D) taxes
D
Diana's editorial business was not growing and she sought ways to expand her client list. She recognized that technology provided opportunities to bring on new customers, so she instituted a training program for her employees. Which factor of production i
C
To encourage entrepreneurial growth, governments might
A) pass laws that enable businesspeople to write contracts that are enforceable in court.
B) establish a high tax rate to support loans for small businesses.
C) take over ownership of small businesses
A
Juan has many business ideas that could satisfy the unfulfilled needs of people who live in his community. However, there are laws that govern the type of businesses that private citizens can own and business taxes are high because the government subsidiz
C
When corruption is evident in governments, the result is that
A) the news media attempts to keep it quiet in order to minimize bad publicity
B) it's easier to open a store without a permit.
C) minimum wages are lower.
D) factories are more difficult to bu
D
One of the results of the increase in the older population of the United States is
A) a future problem for the Social Security System.
B) fewer opportunities for new businesses as the population declines.
C) a decline in the economy, as this segment of th
A
Among the changes resulting from increased global trade is
A) less needs for efficient distribution systems.
B) less global competition as companies set up manufacturing systems in foreign countries.
C) less need for employees to update skills as workers
D
The impact of war and terrorism on U.S. business is that
A) fewer jobs will be created in the United States.
B) companies have increased organizational costs, including insurance costs.
C) there is less global trade.
D) there are lower organizational cost
B
Since the mid-1980s, the _________________ sector has generated the most increases in employment in the United States.
A) manufacturing
B) agricultural
C) service
D) goods producing
C
The new era of business will
A) probably see a major decline in productivity.
B) Be an information-based global revolution that will impact all sectors of the economy.
C) be dominated by an increase in the manufacturing sector as global markets grow.
D) s
B
Today, high-paying service-sector jobs in the U.S. can be found in ___________________.
A) the automobile industry
B) accounting
C) farming
D) machine tools production
B
Adam Smith believed that one's self-directed gain would eventually create prosperity for many, and called the process the
A) amateur opportunity
B) deliberate intervention
C) opportunistic behavior
D) invisible hand
D
At a young age, Ebony's coaches were confident she had the potential to be a world-class swimmer with a future coaching career. After four years on an athletic scholarship and Olympic experience under her belt, she chose a different path. With her savings
A
Chet Bowes owns his own landscaping business, including all the land on which the company grows its plants, and all the equipment. Chet's son Josh has just graduated from college with an architectural landscaping degree. Chet hopes to retire in a few year
B
Which of the following best describes a capitalistic nation?
A) most or all of the factors of production and distribution are privately owned and operated for a profit
B) the nation-state owns most of the factors of production and distribution, and makes
A
What's going on here? As soon as Dewey Cheatum and Howe Motors increase the prices on their SUVs, then so does their only competitor, You Betcha Motors! Their prices are basically the same for similar vehicles, although their advertising says their produc
C
Jefferey's mom specifically asked for a CIP cast iron pan for her birthday. As Jeffrey scanned the stock in two department stores, he found ten different brands, non of which were CIP. When he found CIP in a kitchen specialty shop, he was challenged to te
D
The concept known as brain drain can be best described as
A) a reduction in productivity due to lack of education and training.
B) the loss of the best and brightest people to other countries.
C) the result of working overtime on a continual basis
D) a la
A
For the last several years, the country of Amerindian has been moving from a communist system to a more mixed economic system. Which of the following most likely would NOT occur in Amerensia?
A) an increase in the level of government involvement in trade
A
In terms of economic systems, the trend has been for countries
A) that are mostly socialist to move toward communist systems
B) the are mostly capitalist to move toward more socialism
C) that are capitalist to move toward communism
D) to remain primarily
B
In order for the value of goods and services to be counted as part of a nation's gross domestic product, the goods and services must be
A) produced by a company that was first established in that particular nation.
B) those that are purchased with disposa
C
Paulina works as a software engineer for her firm. Recently, her company was acquired by another firm that had its own information technology department. Because the new firm no longer had need of her services, Paulina's job was eliminated. What type of u
B
The U.S. unemployment rate is a key economic indicator because most of us need jobs to maintain our standard of living. A criterion used to calculate the unemployment rate is
A) anyone under the age of 60 who does not have a job and lives within the physi
D
At Tori-City Radiation Services, Greg operates a new state-of-the-art MRI scanner that serves approximately 10 patients during his 8-hour shift. Patients are scheduled for various lengths of time, depending on which part(s) of their body requires scanning
D
When President Obama was elected, the U.S. economy had slid into a recession. Consumer spending was low and getting worse. In an effort to stop the decline, President Obama proposed an economic stimulus a package that included government spending on roads
B
The sum of all the federal deficits over time is known as the
A) national debt
B) gross national debt
C) fiscal policy
D) aggregate demand for money
A
All of the following are reasons for countries to participate in foreign trade EXCEPT
A) it is just as easy to start a business overseas as it is in the United States
B) no nation can produce all of the products its people want and need
C) even if a count
A
When the value of exports from a country exceeds the value of imports into that country, there is a(n)
A) trade deficit
B) balance of payments
C) favorable balance of trade
D) unfavorable balance of trade
C
The difference between money coming into a country from exports and money leaving a country due to imports, plus money flows from other factors, is known as the
A) balance of trade
B) balance of payments
C) free trade
D) trade deficit
B
In global trade, the term dumping refers to
A) a situation that exists when a country exports more than it imports
B) the buying of permanent property and businesses in foreign nations
C) the practice of selling products in a foreign country at lower pric
C
As a strategy for reaching global markets, licensing provides the licensor with several advantages. One advantage is
A) licensing helps avoid patent infringement
B) the cost of producing and marketing th product in a foreign market is significantly reduce
B
The placement of Starbucks cafes within Barnes & Noble Bookstores has proven to be a successful strategic alliance because both companies benefit from this arrangement. As a global marketing strategy, an important characteristic of a strategic alliance is
D
Sovereign wealth funds (SWFs) are a growing form of foreign direct investment. The size of these funds and the fact that they are investments from government coffers of other nations might be a cause for concern. More specifically, some fear
A) SWFs that
C
Americans are often accuse of ethnocentricity. This means that
A) Americans feel their culture is superior to others
B) Americans welcome diversity in their workforce
C) U.S. firms are actively seeking international markets
D) U.S. businesses are pursuing
A
The makers of Samsung washers and other electrical appliance manufacturers need to be concern about the kind and availability of electricity in the global marketplace. If there were a compatibility problem, it would be the result of a(n) _________________
C
The laws that specifically prohibits "questionable" or "dubious" payments to foreign officials to secure business contracts is called the
A) North American Free Trade Agreement
B) General Agreement on Tariffs and Trade
C) Securities and Exchange Act
D) Fo
D
Using government regulations to limit the import of goods and services is called
A) mercantilism
B) regulating the balance of trade
C) global marketing
D) trade protectionism
D
The EU is an example of a trading bloc, or a ______________________, which has a common external tariff, no internal tariffs, and the coordination of laws to facilitate trade between member countries.
A) strategic alliance
B) common market
C) joint ventur
B
___________________ is the world's largest exporter.
A) U.S
B) China
C) India
D) Brazil
B
Besides the shift of jobs to foreign countries, outsourcing has other drawbacks, such as
A) questionable safety and quality issues with finished products
B) lack of low-cost technical talent to produce products
C) inadequate supply of labor for the number
A
Which BRIC country has not lived up to expectations due to a slowing economy, political and social problems, and being labeled as the world's most corrupt major economy?
A) Brazil
B) Russia
C) China
D) India
A
Which of these actions is LEAST likely to restore the trust of the American public in the free-market system?
A) passing stricter accounting and financial reporting laws
B) punishing those who have broken the law
C) defining the concept of ethics more nar
C
If your supervisor directed you to enter false information into a sales order book and told you if you refused that you would lose your opportunity for promotion, you would probably consider this situation to be a(n)
A) important act of self-interests
B)
B
According to the text, ethical behavior begins with
A) top corporate leaders
B) government regulations and laws
C) religious and community leaders
D) ourselves
D
Which of the following is NOT included as one of the questions we must ask when faced with an ethical dilemma?
A) is it legal?
B) is it balanced?
C) how will it make me feel about myself?
D) is it acceptable if everyone else Is doing it?
D
The most basic question in an ethics-based management systems is
A)is it legal?
B) who will know?
C) is it balanced?
D) has it been done before?
A
Encouraged by the new Sarbanes-Oxley Act, individuals who report unethical or illegal behavior within an organization are
A) corporate raiders
B) whistleblowers
C) vigilantes
D) compliance police
B
A legal provision known as the _____________ provides a "bounty" provision for whisteblowers whose actions result in a legal conviction. The monetary award may total as high as 30% of the amount collected for violations that exceed $1 million.
A) Sarbanes
D
Proponents of corporate social responsibility strongly believe in benevolence; however, they still want their businesses to be profitable. In the long run, they believe
A) benevolence can lead to a vote of no confidence by company stakeholders
B) CSR can
B
The last recession changed the way many companies offer support to people and communities in need. Many companies
A) increased their financial donations because they understood how badly society needed a helping hand
B) increased financial donations to lo
D
The benefit of using _______________ to communicate a business's CSR efforts to the public is that it allows companies to reach broad and diverse groups directly in a low-cost, efficient way.
A) tv ads
B) government-supported direct mail campaigns
C) empl
D
Besides environmental groups, unions and investors, a relatively new type of watchdog organization that reports on corporate social responsibility efforts is
A) internal search and occupy organizations
B) corporate raider divisions
C) social conscious res
C
Government and business leaders are being held to
A) lower ethical standards than in the past
B) ethical standards in the U.S., but unfortunately foreign leaders are not being subjected to ethical scrutiny
C) higher ethical standards than in the past
D) e
C
With regard to socially responsible behavior, American businesses are
A) demanding socially responsible behavior from international suppliers, particularly in the areas of environmental standards and human rights issues
B) holding international suppliers
A
U.S. companies that operate abroad, particularly those who contract with foreign companies, are now _____________ human rights and environmental standards followed by U.S. law.
A) free from the concern of
B) asking suppliers to lower their standards to be
D
Which of the following statements reflects the difficulty companies face when requiring international suppliers to follow environmental and human rights standards set by U.S. firms?
A) Multinational corporations are committed to operating within the legal
D
Which form of business ownership is the most common in the United States?
A) sole proprietorship
B) master limited partnership
C) S corporation
D) corporations
D
When Gene started his window-washing business, he wanted to keep things simple. He liked the idea of being his own boss and the possibility of leaving the business one day to his son. He chose the type of business that was easy to start, allowed him to ke
D
Partnerships refer to more than one owner. A limited partnership
A) is limited by the number of partners allowed, There can only be a total of 10 partners actively involved in the business
B) is taxed similar to a corporation, whereas a general partnershi
C
When Beck joined his uncle's oil exploration company in east Texas, he was given several hundred shares of stock in the firm, and was officially made a partner. The firm's accountant explained that the company paid taxes the same way as regular partnershi
A
A brother and sister team, Franco and Julietta, took over the family's Italian restaurant business when their father died. Julietta operated one of the three locations, kept the firm's books, and ordered supplies and equipment for all three locations. Fra
D
When Luke, Larry, and Lance lost their jobs during the recent recession, they pooled their resources, borrowed a little more, and bought a couple of houses to renovate. All three were concerned about the risk involved in owning their own business, particu
C
A firm's management purchases all the issued and outstanding stock of the firm and takes the company off the stock market. The management of this company has engaged in
A) a leveraged buyout
B) a conglomerate merger
C) taking the firm private
D) forming a
C
Entrepreneurs emphasize the importance of believing in your own ideas because in the process of developing those ideas you are likely to hear from skeptics. Characteristically, they also know that success of failure is "on them." These attributes are desc
B
Leveling the playing field for home-based businesses, ___________ has (have) made starting a home-based business much more affordable.
A) broadband Internet connections and other technologies
B) cultural acceptance
C) tax laws
D) opportunities to export t
A
Why do incubator facilities continue to remain very popular with start-up businesses?
A) They are essentially loan offices that provide funding
B) They team up with large corporations who are willing to buy out the small businesses
C) They almost always p
D
Why do experts agree that small-business management and large-business management are similar in practice?
A) Large and small businesses still require several employees
B) Small businesses and large corporations raise capital in the same manner, and look
C
A small business
A) must have fewer than 100 employees to be considered small
B) is considered small relative to other businesses in its industry
C) must make less than $10 million per year to be considered small
D) should not have more than three locatio
B
Miriam Njunge wants to start a small business importing some products from her native Kenya. Before she starts, some good advice to Miriam would be
A) talk to others who have been or are in the import business
B) get a loan from a bank right away
C) find
A
While on a trip to South Africa, Elena was impressed with colorful woven outdoor placemats, floor mats, chair cushions, and umbrellas that local artisans were weaving. Upon returning to the U.S., she was confident that U.S. consumers would be as intrigued
A
The primary concerns when first starting your business are
A) marketing and accounting
B) planning and human resources
C) financing and planning
D) financing and marketing
C
What are the primary sources of funding for entrepreneurs?
A) Personal savings and individual investors such as family
B) Finance companies and banks
C) The Small Business Administration
D) Former employers and the State Economic Development Authority
A
Organizations known as _________ are often a source of funding for lower-income communities. These organizations have a significant role in the economic recovery and some start-up businesses have successfully found sources of capital by going through one
A
According to the textbook, one of the drawbacks of using venture capital is
A) venture capital firms cannot give the small business owner any advice
B) they don't know your customers
C) venture capital firms may ask for a high stake in your business
D) th
C
For a market to exist, there must be potential buyers
A) and a product that is safe and inexpensive
B) who have willingness and the resources to buy
C) and retail stores which are willing to carry the product
D) who are looking for reasonable prices and f
B
A small business advantage is
A) the ability to quickly adapt to customer needs
B) friends can barter for goods and services the business needs
C) colleges are more amenable to helping small businesses because they prefer working and writing about them th
A
Small businesses have an advantage over large business in international trade in all these ways EXCEPT
A) they can begin shipping faster
B) their prices are usually lower due to low overhead
C) overseas buyers like dealing with individuals rather than lar
B
While cultural differences and bureaucratic paperwork for foreign governments make the prospect of global trade difficult for small businesses, there is one bright spot on the horizon that has brought global trade closer to home. Small businesses can now
C
Once known as "directing," the _________ role of management means creating a vision for the organization and empowering employees to become self-directed and self-motivated.
A) leading
B) planning
C) organizing
D) controlling
A
Cara started a small business a little less than 10 years ago. The business employed several social workers and nurses that visited and cared for persons who had left hospital care, but were not quite ready to be on their own at home. As the CEO of the fi
B
We believe in creating loyal customers by providing a superior experience at a great value. We are committed to direct relationships, providing the best products and services based on standards-based technology, and outperforming the competition with val
C
A traditional tool that serves as a way of evaluating a company's current business situation is called the SWOT Analysis. This is an acronym for
A) Strategic, Willingness, Oneness, Tactics
B) Say it, Weigh it, Own it, Try it
C) Strategize it, Write it, Ob
D
All managers do planning. Andrea is a general manager for a large toy store. Each day she plans the number of employees she will have in each department, including the number of cashiers. She plans the break schedules and the freight delivery schedules. I
D
The type of planning that involves developing detailed, short-term statements about what is to be done, who is to do it, and how is
A) tactical planning
B) operational planning
C) contingency planning
D) strategic planning
A
Sergey Brin and Larry Page are the founders of Google. Most would agree that they had a superb product, but in order to grow, the company needed more structure. Together, they agreed to hire Eric Schmidt to join the executive team as the executive chairma
B
Because they often picture the organization as a whole and work to incorporate all department into one, seamless organization, top managers utilize ________ skills the most.
A) technical
B) conceptual
C) human relations
D) organizing
B
Boris oversaw the work of six pharmaceutical sales managers int he northeast region of the U.S. Each sales manager managed a team of 8-10 pharmaceutical sales representatives that developed relationships with doctors, clinics, hospital pharmacies, and loc
A
Which of the following is NOT characteristic of a leader?
A) A leader has a vision and rallies others around the vision
B) A leader will establish corporate values
C) A leader will emphasize corporate ethics
D) A leader will always attempt to keep operati
D
Which of the following leadership styles focuses on making decisions without consulting others?
A) authoritarian
B) participative
C) team-based
D) autocratic
D
Jing-Sheng facilitated a hiring committee for his advertising company. Six employees (including two managers0 met together to discuss applicants and select the finalists for a copywriter position in the public relations department. Although eh head of pub
D
Measuring performance relative to planned objectives and standards is part of
A) decision making
B) using technical skills
C) directing
D) controlling
D
Which of the following control standards is stated most effectively?
A) Cut the number of finished product rejects
B) Empower employees to make more decisions next year
C) Praise employees more often this month
D) Increase sales of our top-end product fro
D
While many traditional measures of success revolve around the firm's financial performance, it is also important to gauge the satisfaction of the firm's dealers and end users, otherwise known as the firm's
A) internal customers
B) retail partners
C) parti
A