BUS 121 Midterm Study Sheet ECPI University

BUS 121 Midterm Study Sheet What occurs when the quantity demanded exceeds the quantity supplied? A) demand deficit B) surplus C) equilibrium point D) shortage E) supply schedule Which of the following does NOT rep ...

BUS 121 Midterm Study Sheet What occurs when the quantity demanded exceeds the quantity supplied? A) demand deficit B) surplus C) equilibrium point D) shortage E) supply schedule 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 Page Ref: 14 Which of the following exists when an industry or market has only one producer? A) competition B) oligopoly C) monopoly D) communism E) socialism 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 Which term refers to the total quantity and quality of goods and services that people living in an economic system can purchase? A) business cycle B) demand and supply schedule C) standard of living D) aggregate output Which term refers to the total value of all goods and services produced within a given period by a national economy? A) standard of living B) aggregate output C) gross domestic product D) gross national produce E) purchasing power parity Which of the following measures indicates the prices of typical products purchased by American consumers living in urban areas? A) GDP per capita B) standard of living C) consumer price index D) purchasing power parity E) Big Mac index What does productivity measure? A) the total value of all goods and services produced by a national economy B) how much a system produces with the resources needed to produce it C) how much output is necessary to produce a certain level of demand D) the standard of living relative to purchasing power parity E) how much gross national product results from inputs of labor What is the economic condition characterized by widespread increased prices without increased purchasing power? A) unemployment B) inflation C) expansion D) deflation E) recession What is the condition in an economic system in which the amount of money available and the number of goods and services produced are growing at about the same rate? A) unemployment B) stability C) deflation D) inflation E) oversupply What are profits? A) total money taken in by a corporation B) increases in income from year to year C) increases in a corporation's stock price D) revenue generated by goods and services E) difference between revenues and expenses How do top managers best demonstrate a commitment to ethical business practices? A) by adopting written codes of ethics B) by reading employees' e-mails C) by decentralized decision-making practices D) by cooperating with other companies E) by monitoring employees' Web searches Which statement about codes of ethics is FALSE? A) Fewer and fewer companies are adopting codes of ethics. B) Codes of ethics are determined by company managers. C) Some ethical responses can be learned through experience. D) Social responsibility involves providing quality products and pricing products fairly. E) Core principles and values should remain a constant characteristic of a company. Which of the following statements is most likely to be included in a company's code of ethics? A) We reward high achievers. B) We strive for domination in the market. C) We achieve our objective by raising capital. D) We believe in our company brand. E) We reward all valuable contributions. What term refers to the way in which a business tries to balance its commitments to groups and individuals in its social environment? A) business ethics B) socialization C) stakeholder consciousness D) social responsibility E) corporatization How often should an organization change its objectives? A) constantly B) infrequently C) every year D) every decade E) never What is the term given to the groups, individuals, and organizations that are directly affected by the practices of an organization? A) primary agents of interest B) social auditors C) senior managers D) organizational stakeholders E) local communities Advertising for which of the following products is most likely to have ethical ramifications? A) swimwear B) sporting equipment C) decaffeinated beverages D) books E) alcohol What must every corporation do in maintaining and reporting its financial status? A) purchase stocks on margin B) use creative accounting practices C) support increased stock prices D) aim to maximize predicted profit margins E) conform to generally accepted accounting principles Which of the following occurs when someone uses confidential information to gain from the purchase or sale of stocks? A) identity theft B) a margin purchase C) insider trading D) collusion E) a guarantee What does the Sarbanes-Oxley Act of 2002 require a chief financial officer to do? A) prevent insider trading B) engage in strategic management C) guarantee the accuracy of financial reporting D) hire a forensic accountant E) oversee the implementation of ethical standards If a firm hides responsibility for wrongdoing, what type of stance are they taking toward social responsibility? A) responsible B) obstructionist C) accommodative D) proactive E) moderate Which entity is defined as independent and has little influence on its market? A) corporation B) joint venture C) small business D) partnership E) government agency Entrepreneurs often have more than one goal for starting a business and becoming self-employed. Which of the following reasons is the LEAST common goal of entrepreneurs? A) to seek independence and be their own boss B) to earn a comfortable living for a period of time C) to grow and expand a current business D) to meet community or social obligations E) to provide for their financial needs What is the name of the document in which an entrepreneur summarizes his or her business strategy for a proposed new venture? A) success chart B) director's guideline C) financial blueprint D) business plan E) balance sheet What is the most significant disadvantage of owning a franchise? A) start-up costs B) operational guidelines C) difficulty obtaining loans D) double taxation E) competition Which of the following is the most significant disadvantage of starting a business from scratch? A) having few employees B) inability to franchise C) having competition D) coming up with new ideas E) the risk of failure What is the most important source of money for new business start-ups? A) banks B) the SBA C) personal resources D) government grants E) venture capital Who constitutes the membership of SCORE? A) retired executives B) venture capitalists C) company officers D) commercial lenders E) successful entrepreneurs Which of the following represents the fastest-growing segment of minority business ownership? A) African Americans B) Asians C) Hispanics D) Pacific Islanders E) Europeans Which of the following types of businesses is most common in the United States? A) sole proprietorships B) general partnerships C) cooperatives D) corporations E) limited partnerships What percent of a business is the least amount that a master partner will retain? A) 10 percent B) 25 percent C) 50 percent D) 75 percent E) 80 percent In which business sector are cooperatives still important? A) manufacturing B) automotive C) public utilities D) agriculture E) health care What are products that are created abroad and then transported and sold domestically? A) dumped goods B) exports C) imports D) buy backs E) domestic goods What are products that are created domestically and transported for sale abroad? A) dumped goods B) exports C) imports D) buy backs E) domestic goods Which country is the world's largest marketplace and most stable economy? A) the United States B) Canada C) Germany D) Japan E) China Which country dominates the Pacific Asia region economically? A) South Korea B) China C) Indonesia D) Japan E) Taiwan Which organization most likely has the greatest impact on Asian countries? A) ASEAN B) UAS C) EU D) NAFTA E) ECOWAS Which of the following is the name for the economic value of all of the products that a country exports minus the economic value of its imports? A) balance of foreign competition B) balance of domestic competition C) balance of trade D) balance of payments E) balance of supply and demand Which of the following refers to the situation when a country's imports exceed its exports? A) balance of payments B) balance of trade C) trade deficit D) trade surplus E) trade advantage Which of the following is the name for the overall flow of money into or out of a country? A) exchange rate B) trade rate C) balance of exchange D) balance of payments E) balance of trade With what type of exchange rate does the value of a country's currency remain constant relative to that of another country? A) floating B) indexed C) fixed D) adjusted E) deflated When the value of one country's currency relative to that of another varies with market conditions, which of the following exists? A) floating exchange rate B) fixed exchange rate C) indexed exchange rate D) flat exchange rate E) balanced exchange rate Which of the following organizations is a firm that makes products in one country and then distributes and sells them in others? A) importer B) exporter C) multinational firm D) international firm E) direct foreign investor Doreen Madison has been tracking product sales for McCoy Industries. She notices that sales of surgical supplies have fallen off in the past six months and she is considering strategies to reverse this trend. This is an example of what function of the management process? A) planning B) organizing C) leading D) controlling E) budgeting CFO and controller are titles associated with what type of manager? A) financial B) information C) human resource D) marketing E) operations What personal activity does management most likely think is a good indicator of whether or not Terrell will be an effective top manager? A) He is part of a theatrical group that gives performances to hundreds of people, showing that he is not afraid to speak in front of a crowd. B) He juggles being a parent, working as a middle manager, and having personal hobbies, showing an ability to do well in all aspects of his life without going overboard in one or neglecting another. C) He has many siblings, showing that he knows how to share space with a large number of people. D) He quickly learns how to play new games by following the rules explained to him. E) He was a member of the debate team in high school and consequently is well-versed in being able to argue both sides of an issue. Starbucks has established itself as the premier marketer of the finest coffee in the world while maintaining its uncompromising principles and continuing to grow. This statement illustrates what aspect of Starbucks' organization? A) its strategy B) its tactic C) its mission D) its diversity E) its profitability What objective might Teach For America have, based on its company mission? A) Teach For America will transition from a nonprofit to a for-profit organization in 2015. B) Teach For America will open a food bank in low-income communities in each of its 39 regional offices. C) Teach For America will increase the number of its alumni in leadership positions within school systems across the United States by 10 percent each year. D) Teach For America will change the corps member service commitment to four years, versus two. E) Teach For America will open ten new regional offices by the year 2020. Carlos wants to complete his M.B.A. in three years. This is an example of what kind of goal? A) long-term B) intermediate C) short-term D) objective E) problematic Increasing sales by 4 percent in the next eight months is an example of what kind of goal? A) tactical B) strategic C) short-term D) intermediate E) long-term The marketing manager wants to increase regional sales by 2 percent each quarter over the next year. This is an example of what kind of goal? A) long-term B) intermediate C) short-term D) strategic E) tactical Which of the following is the best example of unrelated diversification? A) Ford Motor Company merging with General Motors B) Northwest Airlines merging with Procter & Gamble C) McDonald's merging with Burger King D) Tootsie Roll merging with Hershey E) Bath and Body Works merging with The Body Store The first step in the planning process is determining goals. What is the next step? A) developing a strategic mission B) developing a comprehensive strategy C) developing an array of tactics D) developing an operational plan E) developing a functioning budget Which variable of SWOT analysis identifies changing consumer tastes, hostile takeover offers, and new government regulations? A) threats B) opportunities C) strategies D) internal factors E) weaknesses Which of the following clarifies structure and shows employees where they fit into a firm's operations? A) delegation B) departmentalization C) organization charts D) mission statement E) job descriptions What do the solid lines on an organization chart show in reporting relationships within a company? A) mission statement B) chain of command C) job specialization D) grapevine activity E) market share What is the process of designing specific jobs that need to be done and identifying the people who will perform them called? A) departmentalization B) job specialization C) group tasks D) segmentation E) team cohesion Which term covers grouping jobs into logical units? A) specialization B) accountability C) authorization D) departmentalization E) process management What kind of departmentalization happens when an organization is divided into operations related to different products? A) functional departmentalization B) process departmentalization C) customer departmentalization D) geographic departmentalization E) regional departmentalization What is the main organizational characteristic of decentralized firms? A) flat B) tall C) diverse D) multi-layered E) matrix Which feature characterizes the organization of centralized firms? A) flat B) tall C) very large D) responsive to change E) well capitalized What is an employee's duty to perform an assigned task? A) delegation B) authority C) responsibility D) accountability E) specialization What is the power to make the decisions necessary to complete a task called? A) delegation B) specification C) authority D) responsibility E) accountability What is authority that flows up and down the chain of command called? A) staff authority B) departmental authority C) delegated authority D) divisional authority E) line authority What type of departments are linked to the production and sales of specific products? A) staff departments B) matrix departments C) line departments D) organizational departments E) entrepreneurial departments Which of the following is patterned after the successful Japanese concept of quality circles? A) supply chain management B) quality improvement team C) total quality management D) quality ownership E) value-added analysis Which term refers to the flow of information, materials, and services from raw-materials suppliers through stages in the operations process until the product reaches the end customer? A) distribution chain B) supply chain C) service channel D) distribution channel E) performance channel Which of the following is another term for the supply chain? A) the distribution chain B) the distribution network C) the value chain D) the supply network E) the wholesale network Which term refers to the strategy of paying suppliers and distributors to perform certain business processes or to provide needed materials or services? A) outsourcing B) reengineering C) controlling D) scheduling E) warehousing When a company turns out costumes in time for Halloween, it creates which type of utility? A) ownership B) time C) form D) place E) value When a company makes products available where they are convenient for consumers, it creates which type of utility? A) time B) form C) place D) possession E) leisure In a business, whose job is it to draw up plans to transform resources into products and bring together basic resources, such as knowledge, physical materials, equipment, and labor? A) CEO B) operations manager C) quality manager D) floor foreman E) supply manager Which term describes services which cannot be produced ahead of time? A) transformed B) low-contact C) unstorable D) intangible E) consistent Which of the following would be considered a low-contact service? A) surgery B) haircut C) massage D) electric power E) piano lesson The check-processing operations at your bank would be considered to be which type of system? A) high-contact B) low-contact C) conversion D) synthetic E) performance Which of the following would be considered a high-contact system? A) gas company B) electric company C) lawn care company D) barber shop E) postal delivery Which would an employee who is productive but keeps to himself be lacking in? A) organizational citizenship B) workplace aggression C) performance behavior D) personal productivity E) self-esteem Behaviors that detract from, instead of contribute to, organizational performance are known as what? A) inclusive B) disruptive C) counterproductive D) turnover E) associative Which of the following is NOT a central aspect of organizational citizenship? A) reporting structure B) corporate culture C) workgroup attitude D) business field E) team composition When does turnover occur? A) when people quit their jobs B) when managers reprimand staff C) when employers cut down costs D) when employees call in sick E) when benefits are improved Which of the following would have the lowest cost to an organization? A) absenteeism B) workplace violence C) sexual harassment D) theft E) racism Which of these behaviors best indicates good organizational citizenship? A) being willing to help new employees B) asking for a pay raise C) meeting job performance standards D) keeping regular hours E) using office supplies for business use Which of these is one of the "big five" personality traits? A) openness B) logic C) creativity D) organization E) musical talent What is emotionality? A) the ability of a person to get along with others B) the degree to which someone tends to be positive or negative C) the number of things a person tries to accomplish at once D) the relative rigidity of an individual's beliefs E) the likelihood that a person will react aggressively Which of the following might you, as a manager, expect to see in an employee who has a low degree of conscientiousness? A) a tendency to be unprepared at meetings B) an inability to work in a team setting C) a tendency toward mood swings D) a high level of comfort with other people E) an ability to meet deadlines without fail You need to assign a task to one of your employees. The task involves a high level of detail. To whom should you assign the task? A) Amy, who exhibits high agreeableness and low conscientiousness B) David, who exhibits more negative emotionality and low agreeableness C) Sarah, who exhibits high openness and low negative emotionality D) Winston, who exhibits high conscientiousness and low extraversion E) Liza, who exhibits high creativity and low negative emotionality The extent to which people are self-aware is an aspect of which of the following? A) attitude B) emotional intelligence C) negative emotionality D) social skills E) empathy