Foundations of Business Final Exam

Your text describes several types of teams. Based on these definitions, what type of team best fits Virginia Tech Hokies football?

Manager-led

The emergence of which type of team has been facilitated by the development of technologies such as videoconferencing?

Virtual

Tom strongly disagrees with the decision his team is making, but he never expresses his concerns. Tom has fallen into what dysfunctional team tendency?

Groupthink

Lauren is a strong listener, provides useful feedback, and able to resolve conflict. Which essential skill area does she bring to her team?

Interpersonal

Consider the rate of adoption of all-electric cars. When government offers a tax rebate for purchasing one, what macro-environmental force comes into play?

Political

The U.S. is often considered to have the best financial system in the World, giving the country an advantage in which factor of production?

Capital

Birth rates in developed countries have slowed while populations of developing nations are expanding. Of which type of macro-force is this trend an example?

Demographics

In China, the state owns many businesses and keeps their profits. In the U.S., government generally does not own businesses and owners keep most profits. This key concept of capitalism is called ________.

Private Property Rights

Imagine that a government imposed a price ceiling on corn in order to protect consumers. The likely result would be a(n) _______ of corn.

Shortage

In the oil industry, there are relatively few sellers, such as ExxonMobil, Shell, and BP, with each supplying a large portion of the oil sold. Which type of competition does this describe?

Oligopoly

What is the most widely publicized measure of inflation in the U.S.?

CPI (Consumer Price Index)

In the fourth quarter of 2010, the Federal Reserve announced plans to buy $600 billion in long-term Treasuries to inject funds into the U.S. economy. This program was an example of ______ policy.

Monetary

Paige works in purchasing at Google and has received a request to buy furniture for a new building. Her father owns one of the companies bidding on this order. In this situation, Paige has a(n) _________.

Conflict of Interest

Steven was aware that his boss was spending company money on renovating her beach house and reported it to the company president. In this case, Steven acted as a(n) ________?

Whistleblower

Many companies match employee gifts towards higher education. What form of Corporate Social Responsibility is described here?

Philanthropy

Quick Restaurants NV is a hamburger chain headquartered in Belgium. If they decided to expand into the American market by building their own outlets, what global entry strategy would they be following?

Foreign Direct Investment

In 2011, the country of India imported a higher value of goods and services than it exported. In 2011, India ran a trade ________.

Deficit

Say XYZ Tire Co. allowed an unrelated company in Mali to manufacture and sell XYZ tires under an agreement that paid XYZ a royalty. Which form of doing business in global markets is described here?

Licensing

On June 14, 2016, one Euro was worth $1.125. What term is used to describe this conversion?

Exchange Rate

Bill Clinton once convinced the government of Haiti to stop taxing imports of American rice. By what term are such taxes known?

Tariff

Lea mentioned to her father that her employer had just lost a major customer. Her father sold his shares in the company before the news became public. This situation is an example of ___________.

Insider Trading

What entity helps to resolve trade disputes among its 150 member countries, but has no legal power to force countries to take action?

World Trade Organization

Caroline, Jon, and Taylor start a business in which Caroline run the business and is responsible for its obligations. Jon and Taylor invest in the business but take no active role and cannot lose more than theamounts they invested. What form of business did they select?

Limited Partnership

In 2015, Kraft Foods merged with Heinz. Reasons given for the merger included distribution and overhead cost cuts made possible by this combination. These benefits are known as _______.

Synergies

A business that is owned and controlled by those who use the services of the business is known as a(n) __________.

Cooperative

One key value often created by entrepreneurs is the process of creating new products or services, developing new technology, and opening new markets, collectively known as the process of _________.

innovation

Fred went into business by buying the right to use the brand name and format of Jimmy John's. He will also pay a royalty to Jimmy John's on each sale that he makes. Which ownership option did Fred choose?

Franchising

Emily's small business was running out of money, but she got help from an agency of the government that guaranteed a loan for her. The agency was most likely the ____________.

Small Business Administration

In reviewing an overspent account at month end, Sara determines that a manager approved spending beyond his authorized level. In which of the four functions of management did Sara engage?

Controlling

Austin recently led his company through part of the planning process that identified the value it creates and established goals for the next several years. What part of the planning process did Austin lead?

Strategic

A SWOT analysis of Virginia Tech might identify topics like its rural location, highly-respected dining halls, and need to improve diversity. What does the letter "O" stand for in such an analysis?

Oppurtunities

Steven is a first-time manager who wants to be sure everyone on his team is doing their jobs well, so he tends to tell people what to do and check back to make sure it's getting done. His style is ___________.

Autocratic

Sandra directs the MBA program at an Ivy League school. She often consults rankings published by magazines to determine how her school stacks up against the competition. This practice is called

Benchmarking

Leah wants to become a CEO. She knows she will need to develop the ability to reason abstractly and "think outside the box". Which skill area does she need to develop?

Conceptual (creative thinking)

In deciding on an organizational structure for her new company, Courtney decides to cluster related tasks. What organizational approach is she using?

Specialization

Kelly has just been promoted to general manager of the Buick division of General Motors. Other divisions are GMC, Chevy, and Cadillac. Based on this information, GM uses what form of divisional structure?

Product

Jon is excited to start his new job right out of college until he sees the organizational chart with his name at the very bottom of the structure. That means Jon is also at the bottom of what else?

Chain of command

On her interview, Liz asks to see an org chart and notices that she would be reporting to Rob, a product line boss, and Janelle, the VP of Finance. If she takes the job, Liz will be working in what type of organization?

Matrix

Material requirements planning (MRP) uses sales forecasts and ordering lead times to calculate the quantity of each part needed and when they should be ordered or made. MRP supports which of the three main responsibilities of operations management?

Production Control (production planning, planning, scheduling)

Sam makes high-end, custom bicycle frames for pro riders. His business uses what production process?

Make to order

For around $220, you can buy the Oakley Jawbreaker. You can choose the color frame, lens, jaw, etc., all of which are produced in quantity and assembled to your design. What production method is described?

Mass customization

Because of fluctuating demand, what aspect of operations management in service industries is even more crucial than it is in manufacturing businesses?

Scheduling (customer service; production control)

Emily has a stable job with a good salary and is active socially and in her community, yet she still feels the need for recognition. In Maslow's model, what level of need does Emily now want to fulfill?

Esteem

Nathan's job provides good pay and security. He likes his boss, and the office is nice. Because his potential for advancement is poor, Nathan is unhappy. Under Two-Factor Theory, he has satisfied only _________.

Hygiene Factors

Jen and Doug start are trainees at the same company, do similar work, and have the same performance rating. When Jen is promoted first, Doug is angry - he considers it unfair. What theory of motivation explains his reaction?

Equity Theory

Charles got a big check last year when his employer made a lot of money, but since it lost money this year, there was no check. Charles' company uses what form of incentive program?

Profit Sharing

Five years ago, a share in Google cost about $308 but today is valued at $694. Some Google employees can now cash in certain rights they were given and pocket $386 a share. What are these rights called?

Stock Options

Lynn finds Miles to be unethical. When given the opportunity to offer input on Miles's review, Lynn mentions her concern to Miles' manager. From this description, the company must use what aspect of the performance appraisal process?

360 Degree Review

Gina sells prescription medicines to hospitals. In addition to her base salary, Gina receives 5% of the value of each order she gets. The 5%additional pay is called ________.

Commission

Larry's job is to identify candidates to work at his company. He visits college campus for interviews and information sessions and places ads designed to attract applicants. What HR function does he perform?

Recruiting

Imagine that Delta and its pilots are in negotiations on a new labor contract under which the pilots will work for the next three years. By what term is this negotiating process known?

Collective Bargaining

Verizon and the Communications Workers of America union recently resolved issues that had led the CWA to strike. If the two sides had agreed to use a 3rd party whose recommendations did not have to be accepted by either, what would this arrangement have been called?

Mediation

In the "Guess Who" face game research done byHarvard, most people were unwilling to discuss race. The point of the experiment was to understand ___________ in the workplace.

Transparency (Diversity;Communication;Discrimination)

Adam from HR, Taylor from accounting, and Christina from sales are all assigned to work together on a project. They will also continue on their regular jobs. Such an arrangement is called a(n) _____________.

Cross Functional Team

Apple uses the Taiwanese company Foxconn to assemble iPads and iPhones in China. If Apple had instead built its own factories and hired its own workers, what global strategy would it have been using?

Foreign Direct Investment

Nina and her partners just started a company. Although brand-new, they decide to register as a corporation to reduce their exposure in case they are sued. What is it that Nina is trying to limit?

Liability

Say you decided to start a business, and since you are a hairstylist, you want to invest in a Supercuts franchise. You discover that you will have to pay Supercuts a ___________, which is a percentage of each sale.

Royalty