A material-requirements planning system is primarily intended to meet which of the following objectives:

Ensure that materials are available for production

Which of the following is the primary advantage small businesses have over large corporations?

Ability to respond quickly to opportunities

Which of the following statements best describes a drawback of using a joint venture to access global markets?

One of the members of the joint venture can appropriate the others business

Which of the following statements best describes management's role in setting ethical standards?

Setting ethical standards begins with management who can help instill corpo

Which of the following statements best describes one of the main arguments favoring expansion of U.S. businesses into gl

The United States has a comparative advantage to sell those products that i

ISO 9000 is a certification used by many companies for:

International quality management

Which of the following are not one of Henri Fayol's principles of organizational management?

Each workers should report to multiple bosses or managers

Which of the following statements is not true of the Foreign Corrupt Practices Act?

Businesses in all nations are required to comply with the act

In a line-and-staff manufacturing organization structure, which of the following personnel would be considered a staff m

Director of Information Technology

According to the law of demand, assuming other factors are held constant:

as the price of milk decreases, the quantity of milk demanded will increase

Which of the following would likely not be considered an advantage of being an entrepreneur as compared to an employee?

The risk of losing all time and money invested

In order to be called a multinational company, what must be present?

A manufacturing capacity or some other physical presence in two or more dif

One of the key factors that influence facility location are:

proximity to customers, suppliers and skilled labor

Which of the following describes a business cycle?

Periods of increasing and decreasing real GDP.

Which of the following is not one of the four basic rights of citizens under a capitalist economic system?

The right to a safe and healthy environment.

Which of the following statements is true of licensing, franchising, contract manufacturing, and foreign direct investme

All represent strategies that businesses can implement to access global mar

Which of the following are a disadvantage of departmentalization?

Isolation within departments may lead to poor communication

Which of the following is not a reason that entrepreneurs are willing to accept the risks of entrepreneurship?

The opportunity to spend more time with friends and family

What are the two primary concerns of a small business entrepreneur when starting a business?

Planning and financing the business

A hierarchical organization is one that has:

A high number of layers of management

What is the main difference between a matrix-style organization's structure and the use of cross-functional teams?

Under a matrix organizational structure teams only work together on a short

In a free market society, which statement best describes how prices are determined?

The market price is determined by the intersection, or equilibrium, of the

Which of the following statements best describes integrity based ethics codes?

Integrity based ethics codes define the organization's guiding values, crea

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Questions 95

Answers

1
Which of the following is not a type of organizational structure?
Line
Span of control
Matrix-Style
Line-and-Staff
2
Which of the following is a drawback for an entrepreneur setting up a business as a sole proprietorship?
Unlimited liability
Financial accounts are kept private
Limited liability
Profit is shared
3
A material-requirements planning system is primarily intended to meet which of the following objectives:
Maintain the costs associated with the company
Maintain the highest possible material and product levels in store
Ensure that materials are available for production
Maintain the operations department profit margin
4
Which of the following groups are considered to be stakeholders of a business?
Bankers/Creditors
Stockholders/Owners
Employees
All of the above
5
Which of the following is the primary advantage small businesses have over large corporations?
More efficient operations
None of the choices
Ability to respond quickly to opportunities
Access to more capital and lower expenses
6
Which of the following statements best describes a drawback of using a joint venture to access global markets?
One of the members of the joint venture can appropriate the others business
All members of the joint venture can share marketing efforts and management
All members of the venture can share technology and risk
None of the above
7
Which of the following statements best describes management's role in setting ethical standards?
Setting ethical standards begin with the employees who are most likely to i
Ethics are a personal matter and, therefore, management has no role in sett
None of the above
Setting ethical standards begins with management who can help instill corpo
8
Which of the following statements best describes one of the main arguments favoring expansion of U.S. businesses into gl
It is easier to conduct business in foreign countries as compared to the U.
Employees in foreign countries are more productive than U.S. employees.
The United States has a comparative advantage to sell those products that i
None of the above
9
All members of a nation or society benefit equally from policies that promote free trade?
False
True
10
ISO 9000 is a certification used by many companies for:
International environmental management
International cost management
International quality management
International ethics management
11
Mass produced products are:
Cheap
Semi-custom
Standardized
Unique
12
Which of the following are not one of Henri Fayol's principles of organizational management?
All workers should know who they report to
Functions should be divided into areas of specialization
There should be clear communication channels between workers and managers
Each workers should report to multiple bosses or managers
13
Which of the following statements is not true of the Foreign Corrupt Practices Act?
It can potentially put U.S. businesses at competitive disadvantage to thei
Businesses in all nations are required to comply with the act
It prohibits U.S. companies from bribing foreign officials to secure busine
None of the above
14
In a line-and-staff organizational structure, staff personnel have the formal authority to make policy decisions.
False
True
15
Which of the following would be considered macroeconomic indicators of the health of a nation’s economy?
Inflation
All of the above
Unemployment rates
Gross domestic product (GDP)
16
In a line-and-staff manufacturing organization structure, which of the following personnel would be considered a staff m
Distribution worker
Director of Information Technology
Plant manager
Assembly worker
17
According to the law of demand, assuming other factors are held constant:
as the demand for milk decreases the price of milk will remain unchanged.
as the price of milk increases, the quantity of milk demanded will increase
as the price of milk decreases, the quantity of milk demanded will increase
as the demand for milk increases, the price of milk will remain unchanged.
18
Fiscal policy is the management of the money supply and interest rates by the Federal Reserve Bank.
False
True
19
The value of one nation's currency in comparison to another nation's currency does not fluctuate over time.
False
True
20
Which of the following statements are true of organizational leaders?
They must promote an ethical culture throughout the organization
All of the choices
They must communicate the organizational vision and rally others around tha
They must be willing to embrace change.
21
Ethnocentricity involves an attitude that all cultures are created equal.
False
True
22
Which of the following would likely not be considered an advantage of being an entrepreneur as compared to an employee?
None of the above
The risk of losing all time and money invested
The ability to create significant wealth
Freedom, control, and independence to make your own decisions
23
Ethics is only concerned with those behaviors that are legal in a society?
True
False
24
The most important step in starting a business is preparation.
False
True
25
Max Weber expanded on Henri Fayol's principles of organization by emphasizing:
None of the choices
Informal rules and guidelines
The empowerment of employees to make their own decisions
A flat organizational structure
26
Successful entrepreneurs tend to have all the following characteristics EXCEPT:
Energetic
Hesitant
Goal oriented
Creative
27
In order to be called a multinational company, what must be present?
None of the above
A centralized management structure in the home country.
Products or services that are sold in two or more different countries.
A manufacturing capacity or some other physical presence in two or more dif
28
A partnership ____________
Requires at least two owners
Is the most common form of business ownership in the U.S.
Is funded through the sale of stock
Limits the liability of the owners to the amount of money invested
29
One of the key factors that influence facility location are:
what are the products that will be available
if there is space available to expand the facility in the future
proximity to customers, suppliers and skilled labor
what the building design will look like
30
If a single entrepreneur has the funds necessary to operate their business without assistance from others and wants a bu
Limited liability company
Sole proprietorship
Limited partnership
Corporation
31
Which of the following economists is considered to be the father of modern economics?
Milton Friedman
Adam Smith
Thomas Malthus
None of the above
32
Approximately what percentage of new jobs created each year are generated by small businesses?
Between 60 to 80
Less than 40
Between 40 to 60
Between 80 to 100
33
Which of the following describes a business cycle?
Inflationary pressures.
Regular growth rate of consumer spending.
Irregular division of labor
Periods of increasing and decreasing real GDP.
34
Which of the following leadership styles would be most effective in emergency situations?
Democratic leadership
Free-rein leadership
Participative leadership
Autocratic leadership
35
Which of the following is not one of the four basic rights of citizens under a capitalist economic system?
The right to a safe and healthy environment.
The right to own private property.
The right to freedom of choice.
The right to own a business and keep all that business's profits.
36
Which of the following forms of planning would include the setting of broad, long-range goals by top managers?
Contingency Planning
Strategic Planning
Tactical Planning
Operational Planning
37
Which of the following statements is true of licensing, franchising, contract manufacturing, and foreign direct investme
All strategies involve the same level of commitment, control, risk, and pro
All involve exporting a product made in the U.S.
All of the above.
All represent strategies that businesses can implement to access global mar
38
The outcome of a service industry operation is generally a customer ________.
activity
reward
tangible good
experience
39
Which of the following functions of management would staffing an organization fall under?
Planning
Organizing
Controlling
Leading
40
Which of the following is an advantage of an organizational structure with centralized authority?
Higher employee morale
Less empowerment of employees
Faster decision making
More efficient operations
41
Which of the following are a disadvantage of departmentalization?
Employees can develop in depth skills in one specific area
None of the choices
Top management can easily direct and control various departments' activitie
Isolation within departments may lead to poor communication
42
Which of the following is not a reason that entrepreneurs are willing to accept the risks of entrepreneurship?
None of the choices
The ability to work independently and be responsible for one’s own destiny
The opportunity to spend more time with friends and family
The opportunity to generate profits and wealth for oneself and their family
43
To identify areas for improvement, companies use a technique called ________, which monitors quality by testing samples
SWOT analysis
PESTEL analysis
best out of three practice
statistical process control
44
_{An airplane manufacturer assembles a plane in one location and the workers and equipment go to the airplane when they ne}
cellular layout
fixed-position layout
product layout
process layout
45
What are the two primary concerns of a small business entrepreneur when starting a business?
Managing employees and keeping accurate records
Marketing the business to customers and managing employees
Planning and marketing the business to customers
Planning and financing the business
46
A hierarchical organization is one that has:
Few managers
A large number of employees
Few layers of management
A high number of layers of management
47
An increased standard of living among members of society as a result of entrepreneurial activity always results in a cor
True
False
48
What is the main difference between a matrix-style organization's structure and the use of cross-functional teams?
None of the choices
Cross-functional teams can produce creative solutions to product developmen
Under a matrix organizational structure teams only work together on a short
Cross-functional teams encourage interorganizational cooperation and teamwo
49
In a free market society, which statement best describes how prices are determined?
The market price is determined by the producers of the product or service i
The market price is determined by the government to ensure all citizens hav
The market price is determined by the intersection, or equilibrium, of the
None of the above
50
Which of the following statements best describes integrity based ethics codes?
Integrity based ethics codes emphasize maintaining control and penalizing
The only goal of integrity based ethics codes is adherence to laws and regu
None of the above
Integrity based ethics codes define the organization's guiding values, crea
51
Which of the following nations is the largest exporting nation in the world?
China
Germany
Canada
United States
52
Which of the following is an advantage of a corporation as compared to other types of business entities?
None the choices
It provides the ability to raise large amounts of cash or capital by issuin
The profits of the corporation are subject to double taxation
It is relatively easy and cost effective to establish and maintain
53
Which of the following is an advantage of a broad span of control within an organization?
Faster decision making
More opportunities for advancement for employees
Closer supervision of employees
All of the choices
54
If an entrepreneur’s primary concern is avoiding double taxation of profits, which form of business entity would not be
Corporation
Sole proprietorship
General partnership
All of the choices
55
________ is an inventory strategy that companies employ to increase efficiency and decrease waste by receiving goods onl
Economic order quantity (EOQ)
Material-requirements planning (MRP)
Just-in-time (JIT) inventory control
Product layout
56
Which of the following are ways that governments can encourage entrepreneurship?
Create enterprise zones with lower taxes and government support
All of the choices
Implement policies that draw more entrepreneurial immigrants
Establish incubator that offer affordable office space and other essential
57
Which of the following statements would not be considered a benefit of a socialist economic system?
It maximizes the incentives for entrepreneurs to innovate and create wealth
It promotes equality and equity among its citizens.
All of the above.
Provides citizens with generous government programs.
58
Which of the following is not a step that U.S. businesses can implement to improve business ethics?
Communicate the ethics program to outsiders.
Provide training to mangers and others to consider the ethical implications
Require that top management adopt and support an explicit corporate code o
Develop, and require adherence to, aggressive financial goals and targets.
59
Which of the following is an economic and political system in which the government makes almost all economic decisions a
Socialism
Capitalism
Communism
None of the above
60
Which of the following is the least important skill for top managers to possess?
Planning Skills
Technical Skills
Conceptual Skills
Communication Skills
61
Profit is defined as the gross amount of money a business takes in during a given period by selling goods and services.
True
False
62
Which of the following is not one of the three levels of management in a corporate hierarchy?
Supervisory management
Middle management
Vendor management
Top management
63
The preparation of a SWOT analysis would be part of which of the four management functions?
Planning
Leading
Financing
Organizing
64
An automobile manufacturer combining with a tire manufacturer is an example of which of the following types of transacti
Vertical merger
None do the choices
Horizontal merger
Efficient reorganization
65
Microeconomics is a subset of the study of economics that focuses on the operation of a nation’s economy as a whole.
True
False
66
Which of the following is the most common source of funding or financing for a small business?
Venture capitalists
Angel investors
Bank loans
Personal savings
67
Which of the following statements is a disadvantage of a general partnership ?
Profits must be divided, which can cause conflict if the division is seen a
They are easier to terminate than a sole proprietorship
They can allow for shared management and provide access to a wider range of
They can limit the personal liability of the owners
68
A trade surplus represents an unfavorable balance of trade with other nations and occurs when the value of a country's
False
True
69
Which of the following leadership styles typically leads to the highest level of job satisfaction among employees?
None of the choices
Participative leadership
Autocratic leadership
Free-rein leadership
70
Which of the following forms of business entity are not taxed separately from it’s owners?
Limited liability partnership
All of the choices
General partnership
Sole proprietorship
71
The task of creating budgets and comparing them against actual results would fall under which of the following managemen
Organizing
Leading
Controlling
Planning
72
The European Union is an example of which of the following?
A multinational corporation
A common market, or trading bloc
None of the above
A sovereign nation
73
According to Coca Cola, they strive to "refresh the world in mind, body, and spirit, to inspire moments of optimism and
A company's mission statement
A company's goals
A company's objectivess
None of the choices
74
A multinational company updates it marketing brochures to be printed in the multiple languages that are spoken within th
Economic
None of the above
Sociocultural
Regulatory
75
If an entrepreneur’s primary concern is limiting personal liability, which form of business entity would be most appropr
General Partnership
Sole proprietorship
None of the choices
Corporation
76
Which of the following forms of business would be the easiest to terminate?
General Partnership
Corporation
S Corporation
Sole proprietorship
77
The job of operations management consists of all of the activities involved in:
Coordinating efforts, tasks, and resources
Creating efficient sales pipelines
Marketing to end customers
Creating deal structures for customers to buy your product
78
Which of the following is not a common reason for small business failures?
Going into business with little or no experience
Starting with too little capital
Underestimating how much time it will take to build a market
Keeping and maintaining complete and accurate books and records
79
Which of the following stakeholders is corporate social responsibility concerned with?
All of the above
Customers
Employees
Investors
80
Which of the following is the most restrictive form of trade protectionism?
Import quotas
Embargoes
None of the above
Tariffs
81
Effectively managing an organization takes the same set of skills that effectively leading an organization does.
True
False
82
The process of staffing an organization is only concerned with hiring employees.
True
False
83
Swisher cigar factory makes little cigars and big cigars on the same machine. This is an example of using:
Computer-aided design (CAD)
Flexible Manufacturing System (FMS)
Computer-aided manufacturing (CAM)
Computer-integrated manufacturing (CIM)
84
Often stakeholders of a business have competing concerns and priorities regarding the operations and activities of a bus
False
True
85
A company that assigns responsibility and authority to production, marketing, finance, human resources, and accounting
Customer group
Function
Product
Geographic location
86
Which of the following questions should you ask yourself when faced with an ethical dilemma?
Is my proposed solution legal?
Is my proposed solution balanced and am I acting fairly?
How will my proposed solution make me feel about myself?
All of the above
87
The flatter the organization, the broader the span of control.
True
False
88
Which of the following is an advantage of starting a franchise instead of another business venture?
Franchises are more profitable than original business concepts
Franchises have a higher failure rate than other business ventures
Franchises allow their owners to have total control of the decisions impact
Franchises give their owners access to an established business concept and
89
A PERT chart identifies the ________, which is the sequence of activities that will entail the greatest amount of time.
price of goods
critical path
lag time
outcome of the process
90
Which of the following strategies for reaching global markets is generally going to involve the greatest amount of risk
Contract manufacturing
Foreign direct investment
Licensing
Franchising
91
Which of the following is not one of the four functions of the management process?
Financing
Organizing
Leading
Planning
92
Which of the following factors of production is most important to wealth creation?
Machinery
Entrepreneurship and the use of knowledge
Labor
Land
93
Which of the following economic and governmental policies would promote business formation and economic growth?
Minimize spending and keep taxes and regulations to a minimum.
Restrict the ownership of businesses to certain individuals or institutions
Reduce access to education and training
Increase interest rates
94
According to the law of supply, assuming other factors are held constant:
as the supply for milk increases, the price of milk will also increase.
as the demand for milk decreases, the price of milk will also decrease.
as the price of milk decreases, the quantity of milk supplied will decrease
as the price of milk increases, the quantity of milk supplied will decrease
95
Which of the following parties are most likely to benefit from a weaker, or lower, value of the U.S. dollar?
U.S. export businesses
U.S. import businesses
None of the above
A family taking a foreign vacation

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