Principles 2010

Torts relating to misrepresented facts about a business's goods or services may be subject to a lawsuit on the basis of

fraud

Which of the following is an example of a voluntary debtor-creditor relationship:

Obtaining a loan from a bank

Which of the following is a function of administrative law:

Control of conduct

Because David did not find the department's policy about working overtime in the company's employee
handbook, he should

Ask the department manager about the policy

During a meeting, Kevin provided an idea for cutting departmental costs by 20 percent. Which action
would indicate that Kevin's supervisor liked his idea:

Nodding

Which of the following is a relevant question for a job applicant to ask during an employment interview:

What type of training do you provide for this position?

If a message recipient is frowning and has clenched fists, the emotional response that is s/he most likely
displaying is

Anger

Which of the following is a legitimate response for an employee to provide to a customer regarding an
inquiry about product pricing:

If you can wait a moment, I'll check for the price in the computer.

What is an important consideration when giving employees verbal directions for completing a task?

Employees process information differently

In a weekly staff meeting, Morgan presents a set of new procedures that she believes will improve the
department's productivity levels. Jacob disagrees with Morgan's approach and provides alternative for
improvement. Although Morgan agrees with a couple of Jacob's points, she still thinks her plan will be
better for the company in the long run. How can Morgan effectively defend her idea for improvement?

Present supporting research for her suggestions in an unbiased way.

An employee is preparing a formal report and must present important facts in the sequence in which they
occurred. The employee should prepare the report by presenting the information in ___________ order.

Chronological

Which of the following is a graphic aid that uses text to depict a sequence of events or the order of a
process:

Flowchart

Before sending a professional e-mail message to a business associate, a businessperson should

Proofread the message for spelling and grammatical errors

Kevin developed a letter stating that his company will be offering discounts on certain products for a
limited time. Kevin's letter is an example of a(n)

Informative message

Because Caroline does not have enough time to read an entire 400-page business report, what section
of the report should she review to obtain an overview of the most important content?

Executive summary

XRT Corporation's human-resources manager sends a memo to all employees that describes some
general changes that will affect their healthcare insurance next year. This is an example of ___________
communication.

Formal, downward. Downward communication occurs when management sends messages to lower-level employees. Formal communication involves following a specific protocol or systematic process when transmitting messages.

Business people who fail to adapt their communication styles to appeal to their international clients are
more likely to

Offend the clients

Which of the following is a policy that the WNJ Company might implement to reinforce its image as an
efficient and responsive business:

Require employees to respond to customer inquiries within 24 hours. A business's employees can have a dramatic impact on the ways in which customers view the business. If one customer has a poor experience with one employee, that customer often develops a poor attitude about the entire business.

Because Olivia is very happy with the quality of goods and services that she receives from the XOP
Company, she provides the business with several referrals. This is an example of

Customer advocacy

Kemper Corporation continuously updates the firewalls on its web site to protect its customers' personal
information from theft. Kemper's action helps build trust with its customers in relation to

Online security

An important aspect of using technology in customer relationship management involves

Updating customer information in the computer database

Which of the following are capital goods:

Buildings, roads, and equipment. Capital goods are manufactured or constructed items that are used to produce goods and services and are provided by people.

A problem on a drilling platform in the Gulf of Mexico has affected the amount of oil that is extracted and
refined in the region. Because it is the summer travel season, the demand for gasoline is increasing;
however, there is less gasoline available, and the prices for gasoline spike. What economic condition
does this situation best describe?

Scarcity

Although the Calvert Automobile Company produces 1,500 Model ZX sports cars annually, over 500,000
people want to purchase the car each year. The 1,500 individuals who are willing and able to pay the
high price to obtain the cars have...

Buying power

One reason that businesses use a matrix organizational design is to

Share human resources

Which of the following factors have provided businesses with more opportunities to buy and sell products at the international level:

Free-trade agreements

Which phase of the business cycle would most likely have an unfavorable effect on the business
environment:

Contraction

The government owns and operates most of the means of production and distribution in a country. The
government establishes production quotas for businesses, sets products' prices, and tells workers what their wages will be. This is an example of a(n) __________ economic system.

Command

What are consumers doing when they purchase goods and services in a market economy?

Casting economic votes

Every pay period, Sarah's employer withholds a certain percentage of her earnings, which her employer
forwards to various government agencies. What type of tax is Sarah's employer withholding?

Income

Which of the following workers is most likely to be a member of a craft/trade union:

A machinist who works for a large manufacturer that produces parts for farm equipment.

Which of the following situations is most likely to happen during a period of economic expansion:

Consumer spending increases. Business cycles, which are the periods of expansion and contraction in economic activities, affect businesses, consumers, and the government. During a period of expansion, unemployment levels drop because businesses are expanding and need workers to perform jobs to
support production increases.

The gross domestic product (GDP) is most likely to decrease when the

Government significantly decreases its spending on domestic goods and services.

When minimally skilled workers lose their jobs due to technological advancements that require
specialized skills, what type of unemployment exists?

Structural

When Eddie became upset with a coworker during a business meeting, he threw his file down on the
table, left the conference room, and slammed the door behind him. What was Eddie demonstrating?

Low-self management skills

What tool is often helpful to individuals who want to increase their levels of self-esteem?

Visualization boards

Which of the following is an example of discrimination in the workplace:

Being denied a promotion on the basis of age.

As Ben assesses his personal strengths and weaknesses, what can he do to keep from focusing too
much on his weaknesses?

Identify one strength for every weakness.

What personal attribute involves feeling comfortable with your opinions and decisions, even when others
criticize you for them?

Self-confidence

When Claire tells her supervisor that she made a mistake on the report that she recently submitted, she
is demonstrating

Honesty

Which of the following is an example of a person demonstrating self-control:

Bill managed to keep his temper in check when Ali made comments that he didn't like. Self-control is the restraint of your feelings, words, and actions.

What is an important thing to remember about change?

It often takes time to feel comfortable with the change. Everyone experiences change—it's unavoidable. To adapt to the change, it is important to remember that it often takes time to feel comfortable with the change, which depends on the person and the situation.

Which of the following are secondary dimensions of diversity:

Income, family status, and education level

While making a presentation to a customer, Kip used complex terms that the customer didn't understand.
In this situation, effective communication was hindered due to

The use of jargon

Janelle and Kirk are members of a work team and disagree about how to proceed with a new project.
What type of conflict are Janelle and Kirk experiencing?

Functional

What leadership quality involves demonstrating competence and reliability?

Credibility

When Trish learned that her company was switching to a new computer-software program, she accepted
the change and worked overtime to become familiar with the new program. Trish exhibited __________
behavior.

Adaptable

Which of the following is an example of organizational vision:

Jiffy Parcel Service strives to provide the quickest, most reliable delivery service in the country.

Nancy said, "That was a good try, Stanley. Next time you might want to take the opposite approach. You
might find that it works better for you in these types of situations." This is an example of a coach
providing

Feedback for improvement

Which of the following is an example of processing a transaction with a debit card:

When Naomi purchased office supplies, she presented the cashier with a card that automatically withdrew funds from her business's checking account

What form of currency is issued by the federal government?

Paper money

After Mrs. Green provided the cashier with $2.50 in cash and coins, she left the grocery store with a
gallon of milk. In this situation, money is being used as a

Medium of exchange

Emily has eight percent of her weekly paycheck placed in an employer-sponsored fund that she can
access later in her life, when she is no longer working. Emily is planning for her

Retirement

When Jeremy develops his personal budget, he should categorize the money that he spends on food,
clothing, and entertainment as

Variable expenses

On a pay stub, the total amount of money that a worker has earned for the pay period before deductions
is listed as

Gross pay

The following is written on the back of a check: "For deposit only; Maria Evans; Account #285655." This
is an example of a(n) __________ endorsement.

Restrictive

Melissa writes checks to pay for her rent, utilities, and groceries; and she keeps a record of all these
transactions in her check register. Keeping an accurate check register helps Melissa

Track the amount of money she has spent

When Armand is comparing his checkbook balance with his bank statement, he must make sure that he
has subtracted the ____________ from his checkbook.

Transaction fees

When preparing a personal income tax form, parents report some of their childcare expenses to receive

Tax deductions

Patrick wants to keep a certain amount of his money in a safe place in which he can earn interest on his
savings, and also be able to withdraw his funds without experiencing sizable financial penalties. In what
type of financial institution should Patrick consider placing his money?

A retail bank

What is the advantage of using generally accepted accounting principles?

Presents financial information in a standard format

Accounting computer software programs increase the efficiency of accounting activities because they are
used to

Create invoices and record customer payments

Which of the following are examples of cash outflows:

Rent, utilities, and supplies. Cash outflows refer to the monies that go out of the business—the
business's expenses.

Which of the following is an example of an ethical dilemma that human resources managers may
encounter:

Hiring a friend or family member

Customers are more likely to spend a lot of time evaluating several options before buying a product when

The product is expensive

The effective use of touch points can help a business to

Strengthen its brand value

Which of the following sources is most likely to contain timely information:

A technical-trends report that was written on February 5, 2010. An important factor to consider when evaluating information is its timelines

Natalie is a research associate for a marketing-research firm who spends a lot of her time on the Internet
to obtain various types of business information. Natalie can save time and easily return to web sites that
she frequently visits by using the __________ tool on her Internet browser.

Bookmarking

Which of the following is the primary computer-system tool used to input data

Keyboard

To use various software programs, a computer must have a(n)

Operating system

What is one benefit that the Internet provides consumers?

Makes it easier to comparison shop

If Joe wants to respond to an e-mail message that he received from Natalie, he should first click on the
___________ key.

Reply

Which of the following is an example of a "stop" word that a search engine is most likely to ignore when
retrieving query results:

The. Words such as "a," "for," and "the" are stop words, which are commonly used words that do not always add meaning to the primary search terms.

While typing a document using word-processing software, Janice decided that she wanted to move a
paragraph from the first page to the second page of her business report. What actions should Janice use
to efficiently move the text?

Cut and paste

When using presentation software, computer users can add visual and sound effects between slides that
allow for an interesting ...

Transition

The primary purpose of collaborative software applications in the business environment is to

Share information

When developing a web page, it is best to

Use short blocks of text

Warehousing and shipping methods are operations considerations related to

Logistics

Production shortcuts that lower the durability of goods are unethical practices relating to

Product quality

Why is it important for businesses to follow local health ordinances?

To reduce the risk of widespread illness

What can managers do to ensure that their employees are following the business's safety procedures in
the workplace?

Conduct safety inspections

While Ken was heating up his lunch in the company's kitchen microwave oven, his food caught on fire.
What is the most appropriate action for Ken to take?

Use the kitchen fire extinguisher to put out the fire

What is the advantage to a business that installs external surveillance cameras in prominent locations
around its property?

Discourages attempted burglaries

In which of the following situations is a business most likely to experience a security breach:

The last employee to leave a business facility after business hours fails to set the security alarm

What type of computer program helps protect digital business information from the negative effects of
malware?

Firewalls

What project-management activity involves determining when project tasks should be performed?

Scheduling

Office supplies, computers, steel, and signage are examples of __________ resources that might be
needed for projects.

Tangible

What is likely to happen if a business fails to monitor its inventory of office supplies?

Employee productivity decreases

Which of the following is an important question that a business should ask when selecting a vendor:

Does the vendor have the resources to consistently meet our business's needs?

Arm and Hammer baking soda, which was originally developed as a cooking ingredient, is now being
sold as an effective refrigerator deodorizer. This is an example of ____________ innovation.

Positioning

Before you analyze the available information to solve a problem, it is important to

Identify and check your assumptions

Even when times are tough for Caitlin's business venture, she tends to remain positive—she looks at the
glass as half full rather than half empty. What characteristic of entrepreneurship is Caitlin exhibiting?

Optimism

Colin is an experienced computer programmer who has contacted an organization to help him find a new
job in another city. After the organization helps Colin obtain a job, Colin's new employer will pay a fee to
the organization. What type of organization is helping Colin find a job?

Private employment agency

Which of the following statements is true about completing job applications:

Write clearly using a black or blue pen to present a professional appearance

To present a positive impression during a job interview, the applicant should

Exhibit enthusiasm

A primary purpose of sending a follow-up letter to the interviewer after a job interview is to

Reinforce your qualifications and interest in the position

What type of words should Rebecca use to describe her skills and accomplishments when writing her
résumé?

Action

Sally is interested in working with animals. In her free time, Sally goes to the local animal shelter to help
feed, walk, and care for the stray dogs and cats. Sally is gaining experience in her field of interest by

Doing volunteer work

Seminars and workshops that are sponsored by trade associations are ways to obtain job training for
people who

Work in a specific industry

When managers have the ability to understand how all of the functions of the company are interrelated,
they possess

Conceptual skills