intro to business midterm

Fiscal policy is concerned with

taxation and spending

The fifth factor of production identified by many managers and academicians is

: knowledge

The implementation of a contractionary policy by the Federal Reserve would result in

: lower inflation

_____ inflation is inflation that occurs when the demand for goods and services is greater than the supply.

Demand-pull

The Federal Reserve System can do all of the following EXCEPT

lower taxes

A "mixed economy" is an economic system that:

combines private and government ownership of the factors of production

One of the reasons for the growing inflation rate in Argentina is the increase in production costs of goods and services resulting from a decline in the labor force. This would be an example of a _____ inflation.

cost-push

The purchase of savings bonds by individuals allows the U.S. government to:

make sure that the burden of the national debt is spread more equitably

When the Federal Reserve implements a(n) ______, it increases the growth of the money supply.

expansionary policy

Structural unemployment is unemployment that results from:

the changing structure of an industry

When the economy is in a recession, many companies must lay off workers, which causes _____ unemployment.

cyclical

_____ are organizations formed by individuals or businesses with similar interests to achieve greater economies of scale and economic power through collective ownership

Cooperatives

Pete Yankin and Ken Lowery established a company that markets hunting expeditions. They share responsibilities and will share any profit equally. This is an example of a(n):

partnership

Which of the following is a disadvantage of sole proprietor ownership

unlimited liability

Partnership agreements generally specify all of following EXCEPT:

methods of taxation of each partner

The women share the responsibilities of running the business (called Bread & Butter) as well as its profits equally. Bread & Butter would be an example of a(n):

general partnership

Jayson Tully is contemplating the purchase of a Popeye's Chicken franchise. Which of the following is actually an advantage

assistance in building plans

Which of the following statements about limited liability companies (LLCs) is true

LLCs are not corporations.

 

LLCs are like S corporations in that they appeal to small businesses.

 

LLCs offer their owners the option of being taxed as either a partnership or a corporation.

 

LLCs are legal in all states in the U.S.

 

All of the above statements about LLCs are true.

The form of business ownership that has the most difficulty in raising capital is the:

sole proprietorship

Ease of formation, flexibility, and diversity of management are advantages of the _____ form of business ownership.

partnership

U.S. Lumber Company's purchase of EnviroPlastics, a manufacturer of plastic cutlery, is an example of a _____ merger.

conglomerate

Rebecca Siddoway own and operate Country Candies. Siddoway specializes in making rich, creamy toffees that she packages in attractive gift boxes and sells through the mail. What would her first step be if she decides to incorporate her business to make it easier to find investors?

 

to write the articles of incorporation

Aaron Medford has invested $600 in corporate stock. If the company goes bankrupt, the most Medford could lose would be:

$600

North American Van Lines and Allied Van Lines combined in a _____ merger that will create the world's largest moving company.

horizontal

The C Corporation is another term for:

the conventional form of corporation

Suzanne Pogell started an all-woman sailing school as a sole proprietorship. When she dies, the:

Business dies with her

A firm's stockholders have the right to do all of the following EXCEPT:

get discounts on the company's product or service

Which of the following statements about cooperatives is true

Which of the following statements about cooperatives is true?

A group of cotton growers pooled their resources to build a cotton gin and storage area. This collective ownership organization is a:

cooperative

The purchaser of a franchise is called the:

franchisee

Before selling stock to the public, a corporation must register with the:

Securities and Exchange Commission

The first step to incorporating a company is to:

select the company's name

An S corporation is generally set up to:

reduce tax burdens

The fact that a corporation has limited liability means:

owners' liabilities are limited to the amount invested

Double taxation in a corporation means:

earnings of the corporation and dividends of the shareholders both are taxed

Michael Bronner made a killing in the direct marketing business as the cofounder and CEO of Bronner Slosberg Humphrey, a wildly successful direct-marketing firm. His newest venture, Upromise Inc., enlists some of America's largest corporations to help families pay for college and is extremely successful. The 40-year-old Bronner will more than likely start at least one more new company before he retires because Bonner is a(n):

multipreneur

Andy Yocom was looking to start a small business so he could be his own boss. While golfing one day, he saw prime advertising space on the flags on the course. He has decided to call his new venture Invision Golf Group Inc. What should he include in his business plan?

management plan

 

the elements of the company that make it unique

 

an analysis of the market in which the company will operate

 

a financial plan

 

all of the above

All of the following are characteristics of an entrepreneurial personality EXCEPT:

All of the following are characteristics of an entrepreneurial personality EXCEPT:

Venture capital:

 

is financing obtained from investment firms that specialize in financing small, high-growth companies

Jeff Arnold and Reggie Bradford created WebMD, an Internet provider of health care information. Early in the development of this high-growth company, Arnold and Bradford attracted a group of investors who provided them with money needed to acquire other Internet companies with similar missions. The investment group is called:

 

angel investors

The person who takes the risk of starting and managing a business to make a profit is called a(n):

entrepreneur

_____ are individual investors or groups of experienced investors who provide funding for start-up businesses.

angel investors

Andy Yocom saw prime advertising space on the flags on the golf course. He reasoned that any marketing messages would get prominent attention if they were placed on the flags since golfers focus on them when they take their shots. As a result Yocom used his own initiative and money to start Invision Golf Group Inc. Yocom is an example of a(n):

entrepreneur

Hannah Li wants to quit her job as a legal secretary and start her own small business. She knows that she will be successful if she can find the right idea. Where can Li look for ideas for her new business?

Problems she noticed in her old job

 

Her interest in the history of Asian art

 

Suggestions from her family

 

Other businesses in other regions of the country

 

All of the above

_____ is at the core of most business failures.

 

Inadequate planning

The first step in starting your own business is:

a self assesment

Michael Bronner made a fortune in the direct marketing business as the cofounder and CEO of Bronner Slosberg Humphrey, a wildly successful direct-marketing firm. His newest venture, Upromise Inc., enlists some of America's largest corporations to help families pay for college and is extremely successful. Entrepreneur Bonner would more than likely have which of the following characteristics?

ambitious

Independent

Self-confident

Visionary

All of the above

In buying an existing business, the prospective buyer should ask questions about the operation of the business. Which of the following would be an inappropriate question to ask?

 

What are you going to do with the down payment?

When he read Chicken Soup From the Soul, Joe Farmer was struck by how many of the stories mentioned the scent of the islands. So Farmer created bottles filled with Hawaiian air and some scented essence beads. When customers shake the bottles up and open the lids, they're transported back to paradise. While many marketing experts did not think that consumers would buy bottles of air, Farmer has earned more than half a million dollars of sale during his first year of operation. Farmer was an example of a _____ entrepreneur.

classic

A business plan:

 

is accurately described by all of the above

Navim Jain sold stock to investors in order to finance Sparkart, LLC, a company that markets software to track how many times music is played and shared among peers. Jain used _____ financing.

equity

Which of the following elements does NOT typically appear in a well-prepared business plan?

 

names of all employees

Businesses close down for many reasons. Which of the following is NOT a typical reason for a business failure?

 

Expenses were lower than the owner expected.

When Allison Logue found out her children were allergic to corn, she started looking for sweets and starches that were corn-free and was dismayed to find very few such products on the market. As a result, she has started her own small business to produce and market corn-free desserts. It is a small market, and Logue plans to keep her business small. Logue is an example of a(n):

 

micropreneur

The two forms of business financing are _____ (borrowed funds) and _____ (ownership funds).

 

debt; equity

Which of the following is a characteristic of the entrepreneurial personality?

Ambitious

_____ financing is a form of business financing consisting of borrowed funds that must be repaid with interest over a stated time period.

Debt

Jon P. Farmer is the founder of Kolopua Hawaii LLC, a company that markets Pure Hawaiian Air. Bottles of Pure Hawaiian Air contain air that smells like the floral bouquet that greets tourists as they get off the plane in Hawaii. Retailing for about $5 apiece, the bottles are sold at gift shops in Hawaii, as well as to travel agents nationwide who give them to clients. As a(n) _____, Farmer's annual income exceeds $100,000 annually.

 

entrepreneur

The difference between small business owners and entrepreneurs is that small business owners:

 

accept the status quo and take a short-term view of the future

Jeff Arnold and Reggie Bradford created WebMD, an Internet provider of health care information. During the development of this high-growth company, Arnold and Bradford attracted a group of investors who purchased stock in their company and provided them with ______ financing.

equity

Plant manager Peter Kwillen receives the master budget from divisional headquarters and breaks it down for the three shift managers. He coordinates with other plant managers and manages lower-level managers. Kwillen is a(n) _____ manager.

middle

Victorinox is the name of the company that manufactures Swiss army knives. As a result of new regulations governing what passengers could carry with them on airplane trips, the company has lost 30 percent of its business. In other companies, this might have led to business failure, but because Victorinox had _____ plans, it was able to continue to operate profitably.

 

contingency

Leadership is:

 

guiding others to achieve specific goals

Reader's Digest Association, Inc., has published Reader's Digest magazine for over 80 years, and many believe the publication is dated and can no longer attract many readers. They believe _____ plans are needed to revamp the magazine's content, editorial staff, and readership.

strategic

The _____ of the Booth Western Art Museum reads, "The Booth Western Art Museum will educate, entertain, and inspire a diverse audience by creating a place where people feel welcome, find meaning and value, and delight in exploring the uniqueness of Western American art and culture."

 

mission statement

Manila Water, the provider of the water and sewerage services in the capital of the Philippines has purchased the government owned water and sewerage system for the entire country. It promises to make the nation's water and sewerage system run as efficiently and profitably as the one it operates in Manila. To achieve this goal, Manila Water's top management will first need to engage in _____ planning to determine what resources are needed to achieve this goal.

strategic

After the World Cup soccer games, Puma, the German sporting goods manufacturer, increased its end-of-year sales target by $641 million. Puma developed _____ plans with a goal that extra sales would come from new product categories the company was introducing, sale of soccer equipment, and consolidation of several subsidiaries.

tactical

Dean Jager is the supervisor of the volunteer staff at the Booth Western Art Museum. He makes the work assignments, determines work schedules, and makes sure the museum uses all its volunteer staff efficiently. Jager is involved in _____ planning.

operational

_____ is the process of arranging the structures and relationships of human and material resources to carry out an organization's plans.

Organizing

The relatively consistent pattern of behavior that characterizes a leader is called his or her _____ style.

leadership

_____ is the process of guiding and motivating others toward the achievement of organizational goals.

Leadership

Manila Water, the provider of the water and sewerage services in the capital of the Philippines has purchased the government owned water and sewerage system for the entire country. In terms of the managerial hierarchy, its president Antonino Aquino is in _____ management.

top

Spring Airlines is a start-up business in China. It uses the management function of ____ to arrange that the three airplanes it operates are where they are supposed to be when they are supposed to be and have the appropriate number of operating personnel.

organizing

_____ managers are the managers concerned with implementing the plans and policies of top managers and supervising lower-level managers.

Middle

When your boss gives you a raise, he or she is using _____ power.

reward

_____ planning is the creation of long-range, comprehensive objectives and the development of long-term courses of action.

Strategic

Among managers there are three distinctive leadership styles. They are:

 

autocratic, participative, and free-rein

Top management usually performs all of the following tasks EXCEPT:

 

direct workers on the assembly line

An organization's _____ is its general purpose or reason for existence.

mission

According to the _____ of the New Mexico Nurses Association, the organization "is committed to advocating for all licensed nurses, promoting lifelong learning, and improving health care for all people."

 

mission statement

_____ planning is short-range, detailed planning that is based on long-range planning. It typically has a time frame that is less than one year long.

 

Tactical

Hassan Nasrallah, the leader of Hizbullah: grew up very poor but very smart, and although he wears the robes of a minor Shiite cleric, he is a world-class politician. He has been called the most charismatic figure in the Muslim world. Nasrallah exerts _____ power over his followers.

referent

Dean Jager is in charge of the volunteer staff at the Booth Western Art Museum. He makes the work assignments, determines work schedules, and makes sure the museum uses all of its volunteer staff efficiently. Jager is a _____ manager.

supervisory

Dewayne Gibbons of Burger King decided to introduce a new sliced chicken sandwich without consulting any of his subordinates or the franchise. Managers who use this style of decision making exhibit the _____ style of leadership.

autocratic

Manila Water, the provider of the water and sewerage services in the capital of the Philippines has purchased the government owned water and sewerage system for the entire country. It promises to make the nation's water and sewerage system run as efficiently and profitably as the one it operates in Manila. Its primary challenge will be to convince the 2,000 employees it inherited from the government-owned facility to work more efficiently. Manila Water sought to boost employee morale by linking pay to performance. In other words, management has used its _____ power to improve employee productivity.

reward

A _____ union is a branch union that represents a specified area or even a specific plant.

local

Human resource management is the process of _____ people in order to achieve organizational goals.

hiring

developing

motivating

evaluating

doing all of the above

One of the documents that help human resource planners find the right person for a specific job is a list of tasks and responsibilities required of the job. This document is known as a:

 

job description

Since Cate Langton was hired in the marketing department of a consumer products manufacturer, she has worked in its public relations department, she has worked in its advertising department, and she has worked to help design collateral sales material and point-of-purchase displays. Next week she will go out on the road as a salesperson. What method of training is Langton's employer using?

 

job rotation

_____ refers to the core values and beliefs that support the mission and the business model of the firm and guide employee behavior.

 

Corporate culture

_____ is the process of hiring, developing, motivating, and evaluating people in order to achieve organizational goals.

 

Human resource management

Jon Schwartz is an electrical engineer. He works as a temporary worker for a contracting company that builds germ-free rooms for university researchers. While he likes the extra income, he would much rather stay home and work on the novel he is writing. His wife earns a six-figure income so money is not an issue. Schwartz is an example of a(n):

 

contingent worker

Human resource _____ is the creation of a strategy for meeting future human resource needs.

planning

_____ involves presenting an accurate and positive image of the firm to those it is recruiting for jobs.

 

Recruitment branding

The _____, created by the 1964 Civil Rights Act, investigates and resolves charges of discrimination.

 

Equal Employment Opportunity Commission

In a(n) ______ shop, the worker does not have to join the union but must pay dues to cover union expenses.

agency

Wolfgang Reithofer, a human resource manager at an Austrian brick making company, gathers information about various jobs within the company and specifies the skills and knowledge needed to do each job well. Reithofer is responsible for:

 

job analyses

A _____ strategy is a union strategy of conducting a strike at a critical plant that supplies parts to other plants.

 

selective strike

A _____ is a study of the tasks required to do a particular job well.

 

job analysis

_____ is the attempt to find and attract qualified job applicants in the external labor market.

Recruitment