Business Management
1) A business should be managed ethically to do the right
thing for all stakeholders.
A. True
B. False
2) A business should be managed ethically to reduce employee
turnover.
A. True
B. False
3) “Do what I say, not what I do” can be an
effective code of conduct to instill corporate values.
A. True
B. False
4) Corporate management decisions are influenced by the
desire to keep stockholders happy.
A. True
B. False
5) Accountants do most of the work involved in recording
financial events and transactions, but the actual classifying and interpreting
of this data is left to financial managers.
A. True
B. False
6) The sole purpose of accounting is to help managers
evaluate the financial condition of the firm so that they may make better
decisions.
A. True
B. False
7) Integrated marketing communication combines all the
promotional tools into one comprehensive, unified promotional strategy.
A. True
B. False
8) The purpose of the SEC’s circuit breakers rule is to:
A. D) prevent individuals from profiting from information
not available to the general public.
B. A) prevent market disruption caused by a communication
malfunction.
C. C) allow floor traders to specialize in trading the
securities of specific industries.
D. B) halt trading for a short time following a dramatic
drop in stock prices.
9) An effective channel of distribution does more than
simply ensure that goods are transported efficiently from producer to buyer.
A. True
B. False
10) As a salesperson in the B2B market, Patty regularly
calls on clients to stay informed of their needs or problems. Her objective is
to develop solutions to meet their needs and resolve their problems. The
Internet allows Patty to track products in the supply chain and to learn about
pricing and promotions that would be of interest to her clients. When Patty
works with her existing clients there is no need for the __________ step of the
B2B selling process.
A. close sale
B. prospect and qualify
C. answer objections
D. approach
11) A small business management course at a community
college may offer entrepreneurs an opportunity to:
A. listen to a qualified instructor solve all of the
problems of small business owners.
B. meet with experienced entrepreneurs and learn from their
advice.
C. try out ideas on a computer simulation before risking
real time and money.
12) A group of experienced people from different areas of a
business joined together to develop, produce, and market a new product is known
as a(n):
A. managerial task force.
B. entrepreneurial team.
C. self-directed functional team.
D. joint venture.
13) __________ is a problem solving technique that attempts
to come up with as many solutions as possible in a short time without censoring
the ideas.
A. PMI
B. Brainstorming
C. CAD/CAM
D. Game theory
14) The first step in the rational decision-making model is
to:
A. define the situation.
B. recruit team members to work on the problem.
C. develop alternative responses.
D. gather data.
15) Amanda, a regional manager for Flairol Cosmetics, has
just seen a report showing that sales in her region are lower than anticipated
so far this quarter. Her next task is to determine the reason for the
disappointing results and find a way to get sales up to their desired level.
Amanda’s efforts are part of the ____________ function of management.
A. planning
B. controlling
C. organizing
D. directing
16) ______________ was the dominant strategy for improving
worker productivity during the early 1900s.
A. Job enrichment
B. Management by objective
C. Social Darwinism
D. Scientific management
17) Rewards that come from someone else in recognition of
good work are _________ rewards.
A. secondary
B. conditional
C. extrinsic
D. self-actualized
18) So far, among all minority groups, only Asian-Americans
have realized the need for networking.
A. True
B. False
19) Today’s progressive managers:
A. can rely on a much higher level of worker loyalty to the
organization than in the past.
B. tend to emphasize teamwork and cooperation rather than
discipline and order-giving.
C. face fewer challenges and problems than managers in the
past.
D. usually prefer to use the autocratic style of leadership.
20) Management is more progressive today. There is more
emphasis on:
A. placing greater reliance on the government for financing.
B. working in teams.
C. striving to eliminate the control function of management.
D. individual work that can be successfully measured.
21) Which of the following statements comparing today’s
workers with those from earlier eras is most accurate? Compared to earlier
workers, today’s employees are:
A. more likely to need direct guidance and direction from
their managers.
B. less educated and less self-directed.
C. more willing to leave the firm to seek better
opportunities.
D. more loyal to the firm.
22) As a management consultant, Lamont knows that regardless
of how good a firm’s product might be, the firm has little chance of success
without a(n):
A. warranty.
B. outside consultant.
C. auditor.
D. financial plan.
23) As a finance manager at AllSports Communication, Charlie
worries about the firm’s borrowing and debt repayment requirements for the next
year. He knows the benefit of estimating AllSports’ cash disbursements and
short-term investment expectations. Facing these concerns, a(n) ________ would
provide Charlie with valuable information.
A. line item budget
B. cash budget
C. capital budget
D. operating budget
24) To effectively run a business, it is necessary to:
A. know the differences between accounting and bookkeeping.
B. use a public accounting firm.
C. understand and use accounting information.
D. hire a full-time accountant.
25) You would be most likely to ask for the help of a
forensic accountant if you:
A. wanted to determine the best depreciation and inventory
valuation methods to use to minimize the income taxes paid by your
organization.
B. believed that someone in your organization was employing
unethical or illegal accounting methods.
C. faced severe financial hardship and needed to find the
most effective way to cut costs quickly.
D. wanted to decide which accounting system to adopt for a
new business.
26) Using information not available to the public to
unfairly benefit in the stock market represents:
A. insider trading.
B. an unethical, but a legal activity.
C. blue-sky violations.
D. security fraud.
27) Adam Smith would suggest that the reason that businesses
like Wal-Mart helped the disaster victims of Hurricane Katrina was:
A. it was a way to decrease Wal-Mart’s productivity.
B. it was in Wal-Mart’s best interest to help the victims.
C. the U.S. government paid Wal-Mart to help the victims.
D. it was the ethical thing to do.
28) Which of the following terms describes the set of
values, beliefs, rules, language, and institutions held by a specific group of
people?
A. culture
B. Social myopia
C. ethnocentricity.
D. institutional society.
29) Which of the following statements best describes
McDonald’s current involvement in global markets?
A. McDonald’s focus is on the U.S. market, and it currently
has no plans to participate in global markets.
B. McDonald’s has been successful in Europe, but has failed
to achieve consumer acceptance in other regions of the world.
C. McDonald’s success in the global market has been achieved
by offering the U.S. menu worldwide.
D. McDonald’s global market success reflects their
willingness to adapt their menu to local tastes and culture.
30) Behavior that is in conflict with your values and sense
of right and wrong can damage your self esteem.
A. True
B. False
