MGT 100 Exam answer - Full ( FROM BUSINESS ESSENTIALS)

MGT 100 Exam 1 Question: Q11. The global business environment encompasses many international forces that influence the outcomes of companies doing business in foreign countries. Which of the following scenarios would ...

MGT 100 Exam 1 Question: Q11. The global business environment encompasses many international forces that influence the outcomes of companies doing business in foreign countries. Which of the following scenarios would best count as evidence of globalization? Correct Answer: b. A natural disaster disables factories in Country X that produce computer chips for Company Y. Company Y reduces the number of employee shifts and raises the price of its products. Given Answer: c. Farmers in Country X have lost most of their wheat crops due to a drought. The market price for wheat triples and the government pays the farmers for a percentage of the lost wheat. Question: Q14. A city of 150,000 people has a large commercial sector bringing in businesses from the surrounding region. In 2010, there was 2.75 million square feet of commercial space available. Five years later, after a building boom, there was 5.5 million square feet of commercial space available. Which effect will most likely occur? Correct Answer: c. The price of commercial real estate will decrease, absent a dramatic increase in demand. Given Answer: e. The increase in supply will cause a corresponding increase in demand. Question: Q26. The CEO of Perry's Pizzeria, a rapidly growing restaurant chain, is committed to a high level of corporate social responsibility along with continued business success. Which action by the CEO would most enhance the company's reputation for social responsibility? Correct Answer: a. using more nutritious, but more expensive, ingredients Given Answer: e. taking steps that would cause competitors to close their doors MGT 100 Exam 2 Question: Q12. What type of departments is linked to the production and sales of specific products? Correct Answer: c. line departments Given Answer: e. entrepreneurial departments Question: Q15. Which of the following organizational systems is represented by organization chart and the formal assignment of authority? Correct Answer: b. formal organization Given Answer: c. informal organization Question: Q23. Positive reinforcement is used when a company or manager provides a reward when employee exhibit desired behaviors. Correct Answer: a. TrueCurrent 51155455.1 17-Jan-17 18:36 Given Answer: b. False MGT 100 Exam 4 Question: Q10. Greg feels comfortable that no one can open and read his e-mails. What does Greg have installed in his computer? Correct Answer: c. encryption software Given Answer: d. a Trojan horse 1) The customs, values, and demographic characteristics of the society in which an organization functions are the principal elements of the political-legal environment. Answer: FALSE Explanation: These are the main considerations of the sociocultural environment. The political-legal environment reflects the relationship between business and government, usually in the form of government regulation of business. Page Ref: 5 Difficulty: Easy Objective: 1.2 Learning Outcome: Compare and contrast different economic systems Skill: Concept 2) Physical resources include the data and other information used by businesses. Answer: FALSE Explanation: Physical resources are the tangible resources that organizations use to conduct their business such as natural resources, raw materials, offices, storage and production facilities, parts and supplies, computers and peripherals, and a variety of other equipment. Page Ref: 8 Difficulty: Easy Objective: 1.3 Learning Outcome: Identify the different types of technologies used in business and describe their uses Skill: Concept 3) Economic systems differ in how factors of production are used. Answer: TRUE Explanation: Different types of economic systems manage the factors of production differently. In capitalism, for instance, they are managed by private individuals with capital resources, while in a command economy the government manages the factors ofCurrent 51155455.1 17-Jan-17 18:36 production. Page Ref: 9 Difficulty: Easy Objective: 1.3 Learning Outcome: Compare and contrast different economic systems Skill: ConceptCurrent 51155455.1 17-Jan-17 18:36 4) The point at which the supply curve and the demand curve intersect is the market price. Answer: TRUE Explanation: When demand and supply curves are plotted on the same graph, the point at which they intersect is the point at which demand matches supply, which determines the market price. Page Ref: 12 Difficulty: Easy AACSB: Analytic skills Objective: 1.4 Learning Outcome: Discuss strategies for setting and adjusting prices Skill: Concept 5) Aggregate output refers to a company's annual production of goods or services. Answer: FALSE Explanation: Aggregate output is the total quantity of goods and services produced by an economic system during a given period. Page Ref: 17 Difficulty: Moderate Objective: 1.5 Learning Outcome: Explain how economic performance is monitored Skill: Concept 6) The United States government manages the collection and spending of its revenues through monetary policy. Answer: FALSE Explanation: The United States government manages the collection and spending of its revenues through fiscal policy. Page Ref: 23 Difficulty: Moderate Objective: 1.5 Learning Outcome: Compare and contrast different economic systems Skill: Concept 7) The pursuit of profits is how a business differs from organizations such as most universities, hospitals, and government agencies. Answer: TRUE Explanation: The pursuit of profits distinguishes a business from those organizations—such as most universities, hospitals, and government agencies—that run in much the same way but that generally don't seek profits. Page Ref: 4 Difficulty: Easy Objective: 1.1 Learning Outcome: Explain the entrepreneurship process Skill: ConceptCurrent 51155455.1 17-Jan-17 18:36 8) The technological environment includes only electronics and telecommunications used to perform business activities. Answer: FALSE Explanation: Technology includes human knowledge, work methods, physical equipment, electronics and telecommunications, and various processing systems that are used to perform business activities. Page Ref: 6 Difficulty: Moderate AACSB: Analytic skills Objective: 1.2 Learning Outcome: Identify the different types of technologies used in business and describe their uses Skill: Concept 9) One of the four elements that are necessary for private enterprise to be carried out is reasonable prices. Answer: FALSE Explanation: The four elements that must be present in private enterprise are private property rights, freedom of choice, profits, and competition. Page Ref: 14 Difficulty: Moderate Objective: 1.4 Learning Outcome: Discuss strategies for setting and adjusting prices Skill: Concept 10) In typical modern oligopolies, the large capital investment necessary to enter the market discourages new competitors. Answer: TRUE Explanation: A major factor discouraging new competitors in current oligopolistic industries such as automobiles and large commercial aircraft is the huge capital investment that would be needed to start a new company. Page Ref: 15 Difficulty: Moderate Objective: 1.4 Learning Outcome: Compare and contrast different economic systems Skill: Concept 11) Natural monopolies exist partly because duplication of effort and resources would be wasteful in some cases. Answer: TRUE Explanation: Many electric companies, for example, are natural monopolies because they can supply all the power needed in a local area. Page Ref: 16 Difficulty: Moderate Objective: 1.4 Learning Outcome: Compare and contrast different economic systems Skill: ConceptCurrent 51155455.1 17-Jan-17 18:36 12) Economic indicators help to assess the performance of an economy. Answer: TRUE Explanation: Specifically, economic growth is measured via aggregate output, standard of living, gross domestic product, and productivity; stability is reflected through levels of inflation and unemployment. Page Ref: 17 Difficulty: Moderate Objective: 1.5 Learning Outcome: Explain how economic performance is monitored Skill: Concept 13) The primary measure of growth in the business cycle is inflation. Answer: FALSE Explanation: The primary measure of growth in the business cycle is aggregate output. Page Ref: 17 Difficulty: Moderate Objective: 1.5 Learning Outcome: Compare and contrast different economic systems Skill: Concept 14) Gross domestic product (GDP) refers to the total value of goods and services produced by a national economy within a given period regardless of where the factors of production are located. Answer: FALSE Explanation: GDP refers to the total value of all goods and services produced within a given period by a national economy through domestic factors of production. Page Ref: 17 Difficulty: Moderate Objective: 1.5 Learning Outcome: Explain how economic performance is monitored Skill: Concept 15) Inflation results in increased purchasing power for the consumer. Answer: FALSE Explanation: Inflation occurs when the amount of money injected into an economy exceeds the increase in actual output. When this happens, people will have more money to spend, but there will still be the same quantity of products available for them to buy. As they compete to buy available products, prices go up. Page Ref: 22 Difficulty: Moderate Objective: 1.5 Learning Outcome: Explain how economic performance is monitored Skill: ConceptCurrent 51155455.1 17-Jan-17 18:36 16) Tax increases and decreases are a form of fiscal policy. Answer: TRUE Explanation: Tax rates can play an important role in fiscal policies, helping to manage the economy. Page Ref: 23 Difficulty: Moderate Objective: 1.5 Learning Outcome: Compare and contrast different economic systems Skill: Concept 17) The government can influence the availability of capital by working through the Federal Reserve System. Answer: TRUE Explanation: The interest rates set by the Federal Reserve System can influence the ability and willingness of banks throughout the country to lend money. Page Ref: 23 Difficulty: Moderate Objective: 1.5 Learning Outcome: Compare and contrast different economic systems Skill: Application 18) Stabilization policy is made up of both monetary and fiscal policy. Answer: TRUE Explanation: The purpose of monetary and fiscal policy is to smooth out fluctuations in output and unemployment and to stabilize prices. Page Ref: 23 Difficulty: Moderate Objective: 1.5 Learning Outcome: Compare and contrast different economic systems Skill: Concept 19) Product differentiation is common in a market characterized by monopolistic competition. Answer: TRUE Explanation: Product differentiation also gives sellers some control over prices. Page Ref: 15 Difficulty: Easy Objective: 1.4 Learning Outcome: Compare and contrast different economic systems Skill: ConceptCurrent 51155455.1 17-Jan-17 18:36 20) In a natural monopoly, prices tend to be government-regulated. Answer: TRUE Explanation: Natural monopolies occur in industries in which one company can efficiently supply all needed goods or services. Since they have little or no competition, their prices have to be regulated so that consumers do not have to pay overly high prices. Page Ref: 16 Difficulty: Moderate Objective: 1.4 Learning Outcome: Discuss strategies for setting and adjusting prices Skill: Application 21) The main measure of growth in the business cycle is aggregate output. Answer: TRUE Explanation: Aggregate output is the total quantity of goods and services produced by an economic system during a given period. When it increases, the economy is considered to be in a growth cycle. Page Ref: 17 Difficulty: Moderate Objective: 1.5 Learning Outcome: Explain how economic performance is monitored Skill: Concept 22) Deflation, an indication that the economy is contracting, is characterized by price stabilization of goods. Answer: FALSE Explanation: Deflation occurs when there are widespread price cuts. Deflation generally means that the overall economy is shrinking. Page Ref: 22 Difficulty: Easy Objective: 1.5 Learning Outcome: Explain how economic performance is monitored Skill: Concept 23) If productivity increases, prices charged to consumers will tend to increase as well. Answer: FALSE Explanation: If productivity increases, it's likely that prices of products will decrease and the standard of living will increase. Page Ref: 19 Difficulty: Moderate Objective: 1.5 Learning Outcome: Discuss strategies for setting and adjusting prices Skill: ConceptCurrent 51155455.1 17-Jan-17 18:36 24) The consumer price index is expressed as a percentage of prices as compared to a base period. Answer: TRUE Explanation: The current base period used to measure inflation is 1982-1984. Page Ref: 22 Difficulty: Moderate Objective: 1.5 Learning Outcome: Compare and contrast different economic systems Skill: Concept 25) Which environment is NOT an important dimension of a business organization's external environment? A) the political-legal environment B) the sociocultural environment C) the technological environment D) the corporate cultural environment E) the global business environment Answer: D Explanation: D) The external environment consists of everything outside an organization's boundaries that might affect it. The corporate cultural environment is internal to the organization. Page Ref: 6-7 Difficulty: Easy Objective: 1.2 Learning Outcome: Compare and contrast different economic systems Skill: Concept 26) What term denotes a nation's basis for allocating its resources among its citizens? A) capital structure B) economic system C) ownership processes D) distribution network E) national regulations Answer: B Explanation: B) An economic system is a nation's system for allocating its resources among its citizens, both individuals and organizations. Page Ref: 7 Difficulty: Easy Objective: 1.3 Learning Outcome: Compare and contrast different economic systems Skill: ConceptCurrent 51155455.1 17-Jan-17 18:36 27) What is the process for converting government enterprises into individually owned firms known as? A) production allocation B) privatization C) entrepreneurship D) demand assessment E) profit maximization Answer: B Explanation: B) Privatization is the process of converting government enterprises into privately owned companies, which will then have the right to run such a business for profit. Page Ref: 10 Difficulty: Easy Objective: 1.3 Learning Outcome: Compare and contrast different economic systems Skill: Concept 28) What is the point at which the supply curve and the demand curve intersect on a graph? A) equilibrium price B) decision point C) surplus price D) perfect price E) parity point Answer: A Explanation: A) The equilibrium price is determined by the shape of the supply curve and the demand curve when plotted by amount available and price. The equilibrium price is set at the point at which the supply curve and the demand curve intersect. Page Ref: 12 Difficulty: Easy Objective: 1.4 Learning Outcome: Discuss strategies for setting and adjusting prices Skill: ConceptCurrent 51155455.1 17-Jan-17 18:36 29) What is the price at which the quantity of goods demanded and the quantity of goods supplied are equal? A) the going rate B) the margin rate C) the market price D) the optimum price E) the cost price Answer: C Explanation: C) The market price is set by the demand and supply for a given good. It is defined as the price at which the quantity of goods demanded and the quantity of goods supplied are equal. Page Ref: 12 Difficulty: Easy Objective: 1.4 Learning Outcome: Discuss strategies for setting and adjusting prices Skill: Concept 30) What occurs when the quantity demanded exceeds the quantity supplied? A) demand deficit B) surplus C) equilibrium point D) shortage E) supply schedule Answer: D Explanation: D) When demand exceeds supply, there will not be enough goods available to meet the demand for them. This is known as a shortage. Page Ref: 12 Difficulty: Easy Objective: 1.4 Learning Outcome: Compare and contrast different economic systems Skill: ConceptCurrent 51155455.1 17-Jan-17 18:36 31) Which of the following does NOT represent a degree of competition in a private enterprise system? A) oligopoly B) socialism C) monopoly D) perfect competition E) monopolistic competition Answer: B Explanation: B) Competition is the economic condition in which there are certain demands that can be met by more than one business, so businesses in the same industry compete for the same resources or customers. Page Ref: 14 Difficulty: Easy Objective: 1.4 Learning Outcome: Compare and contrast different economic systems Skill: Concept 32) Which of the following exists when an industry or market has only one producer? A) competition B) oligopoly C) monopoly D) communism E) socialism Answer: C Explanation: C) A monopoly is a market or industry in which there is only one producer that supplies a certain product. Monopolies in the United States economy are either discouraged or regulated so that prices are not too high. Page Ref: 16 Difficulty: Easy Objective: 1.4 Learning Outcome: Compare and contrast different economic systems Skill: Concept 33) Which term refers to the pattern of short-term ups and downs in an economy? A) aggregate output B) business cycle C) standard of living D) balance of payments E) demand and supply schedule Answer: B Explanation: B) The business cycle is the short-term pattern of economic expansions and contractions. Page Ref: 17 Difficulty: Easy Objective: 1.5 Learning Outcome: Compare and contrast different economic systems Skill: Concept