Graded Homework

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This exam covers Chapters 1 through 7 and consists of 50 true/false and multiple-choice questions. Each question is worth two (2) points for a total of 100 points. Prior to attempting this exam, you should have completed all assignments and activities through Chapter 7. You have one (1) attempt and 60 minutes to complete it, so once you open it, you must complete it. Make sure you have good Internet connection and use a stable browser, such as Firefox or Chrome.

Read the statements/questions carefully and respond to the best of your knowledge using the information you learned.

1. What type of company has stock that is widely held and available for sale to the general public?
   

   	private corporation
   	public corporation
   	general partnership
   	limited liability corporation
   	professional corporation

2 points

Question 2

1. Each year, between 610,000 and 835,000 new businesses are launched in the United States. Approximately how many businesses fail each year?
   

   	50,000 to 100,000
   	100,000 to 250,000
   	250,000 to 450,000
   	450,000 to 600,000
   	600,000 to 800,000

2 points

Question 3

1. Which of the following types of businesses is MOST common in the United States?
   

   	sole proprietorships
   	general partnerships
   	cooperatives
   	corporations
   	limited partnerships

2 points

Question 4

1. The U.S. Department of Commerce considers a business “small” if it has fewer than how many employees?
   

   	10
   	50
   	100
   	500
   	1,500

2 points

Question 5

1. The Small Business Administration is the government agency charged with owning small businesses.

   True

   False

2 points

Question 6

1. Which of the following legal forms of business is owned and usually operated by a person who is responsible for its debts?
   

   	cartel
   	corporation
   	general partnership
   	sole proprietorship
   	limited partnership

2 points

Question 7

1. Manufacturing is overwhelmingly handled by big business.

   True

   False

2 points

Question 8

1. International firms conduct a good deal of their business abroad and may even maintain overseas manufacturing facilities.

   True

   False

2 points

Question 9

1. U.S. imports of Canadian softwood timber are limited to 14.7 billion board feet per year. What is this practice called?
   

   	tariff
   	embargo
   	subsidy
   	dumping
   	quota

2 points

Question 10

1. Which of the following denotes the practice of protecting domestic business at the expense of free market competition?
   

   	fair trade
   	balanced trade
   	free trade
   	market liberalism
   	protectionism

2 points

Question 11

1. Country Z can produce pig iron more efficiently than any other goods. Which type of advantage in pig iron does Country Z have?
   

   	absolute advantage
   	national competitive advantage
   	comparative advantage
   	monopolistic advantage
   	resource advantage

2 points

Question 12

1. Strategic alliances give firms greater control over foreign activities than do agents and licensees.

   True

   False

2 points

Question 13

1. Derrido is an American firm that has produced several successful animated TV series in the United States. It is considering contracting with one or more international companies as a way to market its products overseas.

   An executive at Derrido suggests that a contractual relationship will provide the company with a fair amount of control over how the foreign partner markets Derrido’s product. Which of the following, if true, would strengthen this case?

   	Contractual relationships typically include limits and stipulations on the foreign partner.
   	Contractual relationships typically limit the responsibility of the originating firm.
   	Contractual relationships can be complicated by international law.
   	Foreign companies often have considerable familiarity with American culture.
   	Foreign companies usually expect to be given latitude with how they market U.S.-made products.

2 points

Question 14

1. The ultimate form of a quota is a tariff.

   True

   False

2 points

Question 15

1. Coordination across functional departments becomes more complicated in smaller firms than in larger firms.

   True

   False

2 points

Question 16

1. To avoid bureaucracy within the organization, most large organizations tend to adopt the same types of departmentalization for all levels.

   True

   False

2 points

Question 17

1. Which of the following clarifies structure and shows employees where they fit into a firm’s operations?
   

   	delegation
   	departmentalization
   	organization charts
   	mission statement
   	job descriptions

2 points

Question 18

1. Accountability refers to the liability of subordinates for accomplishing tasks assigned by managers.

   True

   False

2 points

Question 19

1. Which of the following structures relies on product departmentalization?
   

   	matrix
   	functional
   	divisional
   	international
   	regional

2 points

Question 20

1. Thomas Corp. has three basic departments: children’s books, games, and toys. What type of structure does the company have?
   

   	divisional
   	matrix
   	functional
   	process
   	global

2 points

Question 21

1. In what type of organization do most lower-level decisions need to be approved by upper management before they can be implemented?
   

   	line
   	staff
   	decentralized
   	centralized
   	learning

2 points

Question 22

1. Geographic departmentalization divides firms according to the areas of the country or the world that they serve.

   True

   False

2 points

Question 23

1. Which term refers to the total value of all goods and services produced within a given period by a national economy through domestic factors of production?
   

   	standard of living
   	aggregate output
   	gross domestic product
   	gross national product
   	purchasing power parity

2 points

Question 24

1. How does monopolistic competition differ from perfect competition?
   

   	There are more sellers in a market characterized by monopolistic competition.
   	It is easier for sellers to enter a market or industry characterized by monopolistic competition.
   	In a perfectly competitive market, products are more dissimilar.
   	In a market characterized by monopolistic competition, individual firms have some control over price.
   	In a perfectly competitive market, the size of the firms must be large.

2 points

Question 25

1. Many companies start as nichers to get a foothold against larger competitors and then grow into broader competitors. Enterprise Rent-A-Car began by building a network of neighborhood offices rather than competing with Hertz and Avis in airport locations. Enterprise is now the nation’s largest car rental company.

   Which of the following is BEST supported by the statements above?

   	The best path to long-term growth is to avoid confrontation with larger competitors for as long as possible.
   	It is generally better to confront one established competitor at a time rather than many at once.
   	Even when competing in a niche, a company should act in every respect as if it is targeting every market segment.
   	The car rental industry is the best example for niche companies to consider when evaluating how to grow into prominence.
   	A company’s initial goals do not place limits on its long-term success.

2 points

Question 26

1. AB Distributors is a company that serves as a shipping intermediary for other companies. Its sales revenue has increased from the previous year. Jonathan, a sales manager at AB, says, “Since the company has increased its revenue, it is now more profitable.”

   Which of the following, if true, would MOST weaken Jonathan’s contention?

   	AB Distributor’s clients are happy with the company’s services.
   	Shipping costs for the industry have significantly increased over the last year.
   	AB Distributor’s employees are dissatisfied with the company’s working conditions.
   	The shipping intermediary industry has experienced a slowdown overall.
   	Many of AB Distributor’s employees are new to the business.

2 points

Question 27

1. Economic systems differ in how factors of production are used.

   True

   False

2 points

Question 28

1. Which of the following is characterized by having few sellers, similar prices among sellers, and difficult market entry?
   

   	oligopoly
   	pure competition
   	monopoly
   	monopolistic competition
   	state socialism

2 points

Question 29

1. What are profits?
   

   	total money taken in by a corporation
   	increases in income from year to year
   	increases in a corporation’s stock price
   	revenue generated by goods and services
   	difference between revenues and expenses

2 points

Question 30

1. A software development company is designing an evaluation plan for its software programmers. The company feels that changes are necessary because it lacks the facts it needs to distinguish outstanding software programmers from those that are only average, or worse. Previously, the company paid software programmers a flat salary and based evaluations on supervisors’ opinions. Now, however, the company is considering the following measures for its software programmers:

   Measurement Strategy Alpha: Software programmers will be evaluated based on the total number of lines of code that they produce.

   Measurement Strategy Beta: Software programmers will be evaluated based on their ability to produce computer code that is free of errors.

   Measurement Strategy Gamma: Software programmers will be evaluated based on the market success of the products they produce.

   The choice to use only Measurement Strategy Beta would be vulnerable to criticism because it would give the software programmers an incentive to do what?

   	make overly optimistic commitments to customer-facing employees at the company
   	spend too much time checking their code in order to eliminate any possibility of error
   	develop projects that meet programming requirements, but not market requirements
   	skip the quality assurance checks that reveal the most damaging software errors
   	produce more lines of code than is required to perform a given function

2 points

Question 31

1. Which type of utility is created when a company makes products available where consumers want them?
   

   	time
   	place
   	possession
   	form
   	operations

2 points

Question 32

1. Even excellent firms focus on one competence at a time.

   True

   False

2 points

Question 33

1. Clean Sweep Corporation is a consumer goods company manufacturing home-care cleaning products. Sales of Sparkle, its flagship disinfectant, and some of its other cleaning products, have been sluggish during the last two quarters. Of late, retailers have also shown a lack of confidence in these product lines. The management is looking at different ways to improve the efficiency of its entire supply chain. Some senior executives believe that the company should shift to a just-in-time logistics system. However, this opinion does not have unanimous support.

   Which of the following, if true, would strengthen the argument for the shift to a just-in-time inventory system?

   	Clean Sweep’s storage and handling costs are significant.
   	Clean Sweep’s suppliers have not adopted just-in-time systems.
   	The current system requires higher inventory levels during the summer as compared to the winter.
   	Demand for Sparkle varies depending on the promotional strategies of Clean Sweep’s retail partners.
   	Sparkle comes in many varieties, none of which is more popular than the leading brand.

2 points

Question 34

1. Which of the following is NOT one of the areas of materials management?
   

   	transportation
   	warehousing
   	purchasing
   	supplier selection
   	customer service

2 points

Question 35

1. Which of the following BEST describes supply chain management?
   

   	the principle of improving the supply chain by focusing on the slowest step in the chain
   	a limitation on the number of suppliers allowed to supply a particular company
   	complete movement of raw materials throughout a manufacturing or service facility
   	a cost-reduction program in which wholesalers and retailers are eliminated in an effort to entice consumers to purchase directly from manufacturers
   	the principle of looking at the supply chain as a whole in order to improve the overall flow through the system

2 points

Question 36

1. Which of the following is the ability of a product to satisfy a human want or need?
   

   	utility
   	relative advantage
   	content
   	satisfaction
   	capacity

2 points

Question 37

1. How do top managers BEST demonstrate a commitment to ethical business practices?
   

   	by adopting written codes of ethics
   	by reading employees’ e-mails
   	by decentralized decision-making practices
   	by cooperating with other companies
   	by monitoring employees’ Web searches

2 points

Question 38

1. Jordan is a recent college graduate with a degree in computer programming. He has just begun his first full-time job and is excited to apply the skills that he worked so hard to acquire. Though he excelled as a student, Jordan is anxious about how successful he will be as an employee. When an opportunity unexpectedly presents itself to take credit for a brilliant software program that someone else wrote, Jordan does not resist and claims the program as his own. Which of the following statements must be true about Jordan’s decision?
   

   	It was made with careful thought.
   	It does not reveal anything about his beliefs or character.
   	It raises questions about his personal ethics.
   	It will strengthen his professional skills.
   	It will not benefit him professionally.

2 points

Question 39

1. Which of the following would NOT be included among the primary agents of interest with regard to a company’s ethical behavior?
   

   	stockholders
   	unions
   	bloggers
   	customers
   	competitors

2 points

Question 40

1. Moia is a successful entrepreneur who owns several popular pastry shops. She often imports macadamia nuts from countries with poor economic conditions, which has furthered her desire to help improve the lives of the people living there. How can Moia BEST exhibit corporate social responsibility to the citizens of these nations?
   

   	by including labels on her products indicating where the nuts come from
   	by hiring people who have traveled to these nations
   	by opening pastry shops in these countries that would create jobs for the citizens there
   	by purchasing the nuts more regularly
   	by shipping free pastries to these nations

2 points

Question 41

1. A company that does not act responsibly toward its customers may lose their trust and ultimately their business.

   True

   False

2 points

Question 42

1. A manager who discriminates against African Americans in hiring exhibits both unethical and illegal behavior.

   True

   False

2 points

Question 43

1. Which of the following statements is MOST likely to be included in a company’s code of ethics?
   

   	We reward high achievers.
   	We strive for domination in the market.
   	We achieve our objective by raising capital.
   	We believe in our company brand.
   	We reward all valuable contributions.

2 points

Question 44

1. Which type of manager spends most of their time working with and supervising the employees who report to them?
   

   	first-line managers
   	information managers
   	top managers
   	chief executive officers
   	operations managers

2 points

Question 45

1. Which of the following is NOT a characteristic of a solid contingency plan?
   

   	contact information for an on-site crisis manager
   	information systems backup software
   	an evacuation plan
   	a prioritized list of critical operations
   	a summary of common types of emergencies

2 points

Question 46

1. Information managers are responsible for getting products from producers to consumers.

   True

   False

2 points

Question 47

1. Camille Graham is a manager who works well with people and makes them feel excited about their work. What type of skills is she illustrating?
   

   	human relations skills
   	technical skills
   	accounting skills
   	conceptual skills
   	marketing skills

2 points

Question 48

1. Since the mid-1980s, the Walt Disney Company’s strategic planning group turned the company into a huge and diverse collection of media and entertainment businesses. The sprawling Disney grew to include everything from theme resorts and film studios to media networks to consumer products and a cruise line. The newly transformed company proved hard to manage and performed unevenly. So Disney disbanded the centralized strategic planning unit, decentralizing its functions to Disney division managers. Since then, Disney’s management has helped it perform strongly in a competitive marketplace.

   Suppose that one of Disney’s business units is a chain of sound studios. The studios have low profit potential, and the chain commands a relatively small share of the market. On these grounds, Disney is considering whether to sell the chain. Which of the following, if true, would MOST strongly suggest that Disney should keep the chain instead?

   	The chain has reduced its operating loss in each of the last three years.
   	The chain has penetrated the market in coastal areas but not inland areas.
   	Other Disney companies use the chain’s studios for a wide variety of projects, resulting in significant cost savings for Disney.
   	The chain uses the most up-to-date technology in its sound studios.
   	The chain staffing levels are comparable to those of similar companies in the industry.

2 points

Question 49

1. Which of the following is TRUE about corporate culture?
   

   	It can direct employees’ efforts toward goals.
   	It is usually determined by outside forces.
   	It cannot be changed.
   	It is easy to change.
   	It rarely affects newcomers in an organization.

2 points

Question 50

1. CFO and controller are titles associated with what type of manager?
   

   	financial
   	information
   	human resource
   	marketing
   	operations

2 points