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

ISO 9000 is a certification used by many companies for:

International quality management

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

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

Planning and financing the business

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

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.

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

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

as the price of milk decreases, the quantity of milk supplied will decrease

The job of operations management consists of all of the activities involved in:

Coordinating efforts, tasks, and resources

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 factors of production is most important to wealth creation?

Entrepreneurship and the use of knowledge

Which of the following is an advantage of starting a franchise instead of another business venture?

Franchises give their owners access to an established business concept and

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

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

Director of Information Technology

Which of the following is an advantage of a corporation as compared to other types of business entities?

It provides the ability to raise large amounts of cash or capital by issuin

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

Swisher cigar factory makes little cigars and big cigars on the same machine. This is an example of using:

Flexible Manufacturing System (FMS)

A hierarchical organization is one that has:

A high number of layers of management

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

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

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

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Questions 95

Answers

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

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