BMA Test Questions Flashcards
Which of the following is a true statement about secondary dimensions of diversity:
A. They are mental aptitudes
B. They are physical traits.
C. They are determined by a person’s subculture.
D. They can change over time.
They can change over time. Secondary dimensions of diversity are differences that may change at
various points throughout one’s lifetime and include characteristics such as language, religion, income,
geographic location, family status, work experience, communication style, and education level. Physical
traits and mental aptitudes are primary dimensions of diversity, which are inborn differences that cannot
be changed. These differences include gender, age, race/ethnicity, etc. Subculture is a secondary group
within a dominant culture. For example, suppose that a U.S. citizen has parents of Chinese decent; the
Western culture is most likely the person’s dominant culture, while his/her Chinese heritage represents a
subculture. A person’s subculture may influence some of a person’s secondary dimensions of diversity,
but it does not determine these dimensions.
Which of the following are examples of capital goods:
A. Trucks, drum scanners, and minerals
B. Bull dozers, photocopiers, and roads
C. Tractors, laborers, and cranes
D. Refineries, iron ore, and computers
B, Bull dozers, photocopiers, and roads.
Capital goods are manufactured or constructed items that are used
to produce goods and services.
Bull dozers, photocopiers, roads, trucks, drum scanners, tractors, cranes, refineries, and computers are types of capital goods.
Laborers are human resources.
Minerals and iron ore are natural resources.
Today, customer relationship management is considered an important tool in
A. commercial investing.
B. business decision-making.
C. hiring new employees.
D. establishing connections with vendors.
B, Business decision-making.
In the past, customer relationship management (CRM) was used mainly as a way to track and organize information about customers so a business could identify its most valuable
clients and tailor its marketing strategies to generate more revenue.
Today, its uses have expanded, and it
is also considered an important tool in business decision-making.
CRM is not typically considered a tool for
use in commercial investing, hiring new employees, or establishing connections with vendors. These are
not customer-focused activities. NOT CONNECTIONS WITH VENDORS
A company is facing negative returns. Which stage of production is the company in? What are the other stages of production?
A. Second
B. Third
C. Fourth
D. First
B, Third.
During the third stage of production, the company sees negative returns. Adding more variable inputs becomes counterproductive; an additional source of labor will lessen overall production.
The first stage of production produces increasing returns. In this period, each additional variable input will produce more products.
The second stage of production produces diminishing
returns. Each additional variable input will still produce additional units but at a decreasing rate.
There is no fourth stage of production.
What is a work breakdown structure?
WHAT: Work breakdown structure (WBS) is the process of dividing project tasks into meaningful components to complete the project.
Which of the following is the sequential order of a project’s work breakdown structure?
A. Subtask, task, and work assignment
B. Work assignment, task, and subtask
C. Task, subtask, and work assignment
D. Work assignment, subtask, and task
B, Work assignment, task, and subtask.
When dividing the work, the project manager first divides the entire project into work assignments. Then, each work assignment is broken down by the tasks that the assignment requires for completion. In some situations, each task has subtasks that need to be completed before moving on to
the next task.
Why do people use work breakdown structure dictionaries?
WHY? Dividing the entire project into smaller
components helps the project manager effectively schedule, assign, and monitor complex project
activities.
Phoebe is the manager of a small company. One of her employees has been showing up late and missing work frequently. What channel of communication should Phoebe use to discuss this issue with him? What should she NOT use?
A. A company-wide memo
B. An email message
C. Face-to-face conversation
D. A video conference
C, Face-to-face conversation.
When discussing sensitive issues, face-to-face communication is the best strategy because it is the richest form of communication and has the least risk of misinterpretation.
If Phoebe were to write an email, her employee may not understand her tone or meaning.
A company-wide memo is inappropriate because this is an issue that should be only between Phoebe and the employee in question.
Finally, video conferences are generally used when people are not in the same location and do
not offer any benefits that a face-to-face conversation does not provide.
One reason that businesses use a matrix organizational design is to
A. share human resources.
B. improve employee productivity.
C. segment areas of expertise.
D. standardize business task
A, Share human resources
The matrix organizational structure involves integrated departmental functions with product or project orientation.
For example, a technology specialist, a marketing researcher, a financial advisor, and a manufacturing line supervisor are members of different departments but often work together to develop a product or improve a process.
The advantage to businesses of using this organizational structure is that the business is applying its resources efficiently because a representative from each of the major departments provides a unique set of skills and knowledge to achieve the
business’s goals. Often, workers have two or more supervisors in the matrix organizational design. The matrix organizational design may improve the business’s overall efficiency, but it does not always improve an individual’s productivity.
Departmental organizational design segments employees by their areas of expertise (e.g., accounting, sales, and production).
Policies and procedures are developed to standardize various business activities and tasks in all types of organizational designs
One reason that businesses use a matrix organizational design is to
A. share human resources.
B. improve employee productivity.
C. segment areas of expertise.
D. standardize business task
A, Share human resources
The matrix organizational structure involves integrated departmental functions with product or project orientation.
For example, a technology specialist, a marketing researcher, a financial advisor, and a manufacturing line supervisor are members of different departments but often work together to develop a product or improve a process.
The advantage to businesses of using this organizational structure is that the business is applying its resources efficiently because a representative from each of the major departments provides a unique set of skills and knowledge to achieve the
business’s goals. Often, workers have two or more supervisors in the matrix organizational design. The matrix organizational design may improve the business’s overall efficiency, but it does not always improve an individual’s productivity.
Departmental organizational design segments employees by their areas of expertise (e.g., accounting, sales, and production).
Policies and procedures are developed to standardize various business activities and tasks in all types of organizational designs
Which of the following factors has the greatest effect on a consumer’s buying behavior:
A. Cultural influences
B. Situational influences
C. Individual influences
D. Social influences
A, Cultural influences.
Cultural influences have the strongest effect on a consumer’s buying behavior, even stronger than social influences, individual influences, and situational influences
A primary activity in managerial control is
A. evaluating.
B. delegating.
C. coaching.
D. forecasting.
A, Evaluating.
Control is the management function that monitors the work effort. To determine if employees or processes are working effectively and efficiently, managers compare the business’s standards or goals with the actual output or desired result to evaluate performance.
Delegating is an organizing task that involves assigning authority or responsibility to another person.
Coaching is a directing activity and is an on-the-job instructional method in which a manager or supervisor is assigned a “coach” to set goals, give assistance in reaching goals, and give ongoing performance feedback.
Forecasting is a planning activity that involves making estimates or predictions about something—sales, income, expenses, etc.
Explain the concept of Gross Domestic Product
GDP is the market value of all finished goods/services produces within a country’s border in a specific time period. Functions as a scorecard of a country’s economic health. Estimates size of economy.
Determine economic utilities created by business activities. Explain each type.
FORM UTILITY: How much value a consumer receives from a product/service in a way THEY ACTUALLY NEED
TIME UTILITY: Company provides goods/services when consumers need them, timely response to customer needs
PLACE: Making goods/services available in easily accessible locations
POSSESSION: Consumers should be able to use a good/service as soon as they’re able to purchase it. Ease of ownership.
Which of the following is an example of a government regulation that affects a business’s working conditions? What are the others for?
A. Zoning laws
B. Food inspection
C. Minimum wage
D. Price supports
C, Minimum wage.
Government regulation of business includes regulating working conditions provided by businesses. One such regulation involves minimum-wage laws that specify the lowest hourly wage that businesses can pay workers.
Zoning laws are intended to protect business property.
The inspection of food is intended to protect consumers.
Government price supports maintain the price of a good or service to enable the producers to earn a profit.
Which of the following is a characteristic common to all integrated software packages? Give an example of an integrated software:
A. Performs interrelated functions
B. Calculates break-even points
C. Requires minimal training
D. Includes forecasting tools
A, Performs interrelated functions.
Integrated software applications consist of two or more related computer programs that work together to record information or perform specific business tasks or functions. For example, Microsoft Office combines a variety of programs that perform word-processing, spreadsheet, slideshow presentation, desktop publishing, and database functions. Some integrated software packages are customized to perform interrelated activities for a specific industry, such as travel and hospitality. Not all integrated software packages calculate break-even points or include forecasting tools. Because integrated software options vary, the level of training that users need also varies.
Which component of project-management software helps project managers determine the length of time that a series of interdependent tasks will take to complete under various circumstances? Explain the others.
A. Demonstration
B. Critical path
C. Presentation
D. Linear
B, Critical path.
Many project-management software packages incorporate the critical path methodology into their programs. The critical path methodology uses algorithms to determine timelines, develops schedules for complex project activities, and proposes scheduling contingency plans, which reduce
project delays.
Presentation software creates computer-generated visual aids that support oral
presentations.
Demonstration and linear are not components of project management software.
Which component of project-management software helps project managers determine the length of time that a series of interdependent tasks will take to complete under various circumstances? Explain the others.
A. Demonstration
B. Critical path
C. Presentation
D. Linear
B, Critical path.
Many project-management software packages incorporate the critical path methodology into their programs. The critical path methodology uses algorithms to determine timelines, develops schedules for complex project activities, and proposes scheduling contingency plans, which reduce
project delays.
Presentation software creates computer-generated visual aids that support oral
presentations.
Demonstration and linear are not components of project management software.
Maxton Mart is being pressured by its vendors to pay for inventory it purchased more than 30 days ago. However, Maxton Mart has not received its accounts receivable from customers. What business record has Maxton Mart failed to monitor successfully?
A. Balance sheet
B. Income statement
C. Cash flow
D. Open to buy
C, Cash flow.
By monitoring its cash flow statement, Maxton Mart knows when it is running short on cash and can take needed steps to alleviate upcoming cash shortages. If necessary, Maxton Mart should be prepared to take out a short-term loan to cover inventory costs.
The income statement provides a picture of a business’s profit or loss conditions.
The balance sheet shows a snapshot of the business’s assets, liabilities, and owner’s equity.
Open-to-buy documents indicate how much money the business has to invest in additional inventory.
- Which of the following is the sequential order of a project’s work breakdown structure? What is the purpose of a work breakdown structure?
A. Subtask, task, and work assignment
B. Work assignment, task, and subtask
C. Task, subtask, and work assignment
D. Work assignment, subtask, and task
B, Work assignment, task, and subtask.
Work breakdown structure (WBS) is the process of dividing project tasks into meaningful components to complete the project. Dividing the entire project into smaller components helps the project manager effectively schedule, assign, and monitor complex project activities.
When dividing the work, the project manager first divides the entire project into work assignments. Then, each work assignment is broken down by the tasks that the assignment requires for completion. In some situations, each task has subtasks that need to be completed before moving on to the next task.
Which of the following is an item that is subject to an excise tax? What is an excise tax?
A. Prescription medication
B. Carton of eggs
C. Ski boat
D. Business computer
C, Ski boat.
An excise tax is a special government tax on certain nonessential and luxury items (e.g., ski boat) that is included in the price that consumers pay. Eggs, medication, and business computers are not luxury items that are subject to an excise tax.
What are the three main purposes of oral presentations?
A. To inform, inspire, and entertain
B. To inform, persuade, and entertain
C. To inform, persuade, and instruct
D. To interview, debate, and entertain
B, To inform, persuade, and entertain.
The three main purposes of oral presentations are to inform, persuade, and entertain.
Interviews and debates are types of presentations, not purposes.
An entertaining or persuasive presentation might inspire, but inspiring people is not one of the main purposes of oral presentations.
An instructive presentation is an informational presentation.
Why does a business keep stock on hand for resale?
A. So it can buy raw materials
B. So it can produce manufactured goods
C. To use it in business operations
D. To sell it to end users
D, To sell it to end users.
Businesses keep different types of inventory on hand for different reasons. If the business sells the goods that it buys to end users, it is resale stock.
For example, an appliance-store chain (retailer) buys stoves, refrigerators, and dishwashers from manufacturers, and sells the items to consumers. Items such as parts (e.g., nails) and raw materials (e.g., wood) are used to produce
manufactured goods. Businesses also maintain an inventory of supplies (office, cleaning) for employees to use to complete their work.
What can a business do if it is exposed to risks that commercial insurance companies do not cover?
A. Establish a risk-management committee
B. Acquire a professional association
C. Create a trade union
D. Form a captive insurance company
D, Form a captive insurance company.
Organizations (i.e., corporations, industry/professional/trade associations) often form their own insurance companies—called captive insurance companies-when they carry risks that commercial insurance companies will not cover. The organizations that form the captive insurance companies control insurance activities including the underwriting processes, premium rates, and claims-processing policies.
Acquiring a professional association, establishing a risk management committee, and creating a trade union are not ways in which a business TRANSFERS risk.
Which of the following is an example of employee pilferage:
A. Hacking into a competitor’s computer network to obtain trade secrets
B. Changing the amount specified on a check you prepare for the company with authorization
C. Installing personally owned software on your workplace computer
D. Padding an expense account
D, Padding an expense account.
Employee pilferage involves the taking of small amounts or small articles without the consent of the company. That is what occurs when an employee pads his/her expense account.
Having authorization to change the amount specified on a check is not pilferage.
Installing personally owned software on your computer may violate company policies; however, it does not represent employee pilferage.
Hacking into a competitor’s computer network to obtain trade secrets is a computer crime, rather than pilferage.
What source of credit offers its members small loans, installment credit, and low interest rates? Explain the other organizations.
A. Commercial banks
B. Sales finance companies
C. Credit unions
D. Savings and loan associations
C, Credit unions.
A credit union is a financial cooperative set up to provide savings and credit services to its members. These services include small loans, installment credit, and low interest rates.
Commercial banks offer many financial services including checking and savings accounts, secured and unsecured loans, installment credit, and bank credit cards. They offer small and large loans, and their interest rates vary.
A sales finance company is a business that purchases borrowers’ contracts from sellers. Their interest rates are higher than the rates offered by credit unions.
A savings and loan association is a financial institution that offers savings accounts and makes loans to borrowers. Most of their loans are for large-ticket items such as real estate. FOCUSED ON MORTGAGES
Alexis and her team are working on a new project proposal to show their boss. She knows that doing the project their way will be costly and time-consuming, but she also knows that the results will be great. She and her team decide to first present the benefits of the project and then draw the conclusion that investing company time and money would be a good idea. Alexis hopes to convince her boss using what?
A. inductive organization.
B. deductive organization.
C. chronological order.
D. geographical order.
A, Inductive organization.
Inductive organization starts with examples, facts, or reasons and saves conclusions for last. When you need to persuade someone of something, inductive organization can be especially helpful. This is the case for Alexis and her team. She knows that her boss won’t necessarily want to spend a lot of time and money on the project, so she starts by listing the benefits. If she started out with the costs, her boss would likely be scared off before she even had the chance to convince him.
FACTS –> CONCLUSION
Deductive organization is the opposite of inductive organization. It starts with the conclusion, and then moves to examples, facts, and reasons. This method of organization is best when delivering routine information or business writing.
CONCLUSION –> FACTS
Chronological order presents information in time sequence. This is useful when describing history or sales figures.
Geographical order involves organizing your information around location. This method of organization isn’t used that often, since there aren’t many topics that are easily organized by location.
Determining a project’s feasibility, developing a statement of work (SoW), creating SMART objectives, and developing a project charter occur during the __________ stage of project management. Describe all the stages of project management.
A. initiation
B. planning
C. execution
D. closure
A, Initiation.
The project life cycle consists of four stages: initiation, planning, execution, and closure. The initiation stage involves determining a project’s feasibility, developing a statement of work (SoW), creating SMART objectives, and developing a project charter.
The planning stage involves in-depth project planning to ensure that the project’s scope is clearly defined. This entails developing a Work Breakdown Structure, identifying needed human and nonhuman resources, developing a project schedule, and preparing a project plan.
The execution, or implementation, stage requires the project manager to monitor and control project activities by maintaining ongoing communication with all project participants, updating and modifying the project plan, monitoring risks, controlling project quality, gaining change approvals, and maintaining project records.
The closure stage entails writing final project reports and preparing a lessons learned document.
The Colbert Company ships 19 cases of model number 328 bolts to SOA Manufacturing Company every other week. This is an example of a(n) __________ purchase order. Describe all the other order types.`
A. seasonal
B. advance
C. standing
D. open
C, Standing.
Standing orders involve sending products at set intervals. This type of purchase order is ideal for businesses that need the same amount of an item on a regular basis. In the example, SOA Manufacturing may need the bolts to produce its products. Because SOA knows that it generates a set amount of outputs in a certain amount of time, it advises its vendor (Colbert Company) to ship a certain
amount of bolts at intervals—every other week. WEEKLY/MONTHLY ETC STAPLES
An advance order is a regular order that is placed now with delivery requested at a future time (e.g., weeks, months). IN ADVANCE
A seasonal order is an order that is placed for seasonal merchandise, such as snow shovels or beach umbrellas. SEASONAL
An open order is an order for staple goods that is placed with one of several available vendors who can meet the business’s immediate requirements (e.g., time, price, quantity). An open order is a type of purchase order in which buyers place the order with the supplier that can best meet the needs or criteria (e.g., price) for a particular item. BEST MATCH FOR STAPLE GOODS
The laddering technique is used to capture and change categories of
A. horizontal communication.
B. hierarchical information.
C. meaningless data.
D. redundant knowledge.
B, Hierarchical information.
A hierarchy arrangement sets information in a certain order, rank, or level. The laddering technique is a tool that helps an organization to capture information and categorize it into a meaningful and useful order. The business can obtain information by collecting tacit knowledge from internal and external sources. The laddering technique, which can be implemented manually or with a computer program, can help a business organize the steps necessary to complete a certain activity or process. By doing so, the business might discover ways in which it can change the ordering system to increase efficiency, such as eliminating an unnecessary task or a task that is being performed twice. KEEPS ASKING WHY WHY WHY FOR WHY COMS MAKES PURCHASE (USUALLY) EXCEPT IN THIS TEST? IDEK LMAO)
Horizontal communication occurs among individuals at the same level, such as coworkers
If the cash from operating activities is consistently greater than the company’s net income, the company’s net earnings are of a(n) __________ quality.
A. high
B. low
C. moderate
D. excessive
A, High.
The cash from operating activities is compared to the company’s net income. If the cash from operating activities is consistently greater than the net income, the company’s net income or earnings are said to be of a high quality
Which of the following are elements that appear in the heading of a memorandum:
A. To, title, from, and date
B. To, from, date, and subject
C. Date, title, to, and company
D. Company, to, subject, and date
B, To, from, date, and subject.
When writing a memorandum, businesspeople place a heading at the top of
the page to indicate who the letter is to, who the letter is from, what the message is about, and the date the message was written.
The company’s name and the employee’s title do not always appear in the heading.
The capability of combining graphics, text, animation, and sound is a unique characteristic of __________ software programs. What are the other types?
A. communication
B. presentation
C. numeric
D. electronic
B, Presentation.
Presentation software programs give the user the capability of presenting information by combining graphics, text, animation, photographs, and sound. Presentation software can be used to create slide programs, overhead transparencies, multimedia presentations, etc. This software enables users to develop visual presentations that are lively, colorful, and appealing to viewers.
Communication software programs establish connections between computers.
Numeric and electronic are not types of software programs, although some programs analyze numerical data.
Jamal wants to purchase software for his small business that allows him to create text documents,, prepare presentations, maintain a customer database, and develop numerical charts. What type of software would best meet Jamal’s needs? Explain the others
A. Word processing
B. Integrated
C. Spreadsheet
D. Trajectory
B, Integrated.
Integrated software applications consist of two or more related computer programs that work together to record information or perform specific business tasks or functions. An example of integrated software is Microsoft Office—it consists of several related programs, such as word processing (Word), spreadsheet (Excel), presentation (PowerPoint), and database (Access).
Trajectory software is used to measure velocity, wind drift, momentum, etc.
Company executives decided to add a new product line to the company’s mix. The company would benefit from
A. adjusting its budget.
B. hiring new employees.
C. change management.
D. ethics training.
C, Change management.
Change management is a structured process used to ensure that changes are successfully made and have lasting impact. Change management would be beneficial to a company that is adding a new product line.
There is no indication that the company needs to hire new employees, adjust its budget, or undergo ethics training
- Social media policies are especially important in today’s modern world because
A. the Internet can only harm a company’s reputation.
B. employees can’t be trusted with technology.
C. negative comments can spread quickly online.
D. companies rely on social media to communicate.
C, Negative comments can spread quickly online.
Social media policies are especially important in today’s ultra-connected world. One negative comment about a company on social media can spread like
wildfire—harming the reputation of both the person who posted it and the company.
It is not true that employees can’t be trusted with technology—many companies rely on employees’ use of technology to complete their work effectively and efficiently.
While it is true that the Internet can potentially harm a company’s reputation, it can also be a useful tool for improving a company’s reputation and for spreading awareness of the company’s products or services.
Companies do not generally rely solely on social media to communicate.
Your boss tells employees not to use their phones in front of customers, but s/he is constantly texting and checking social media. Your boss is ineffective at modeling ethical behavior because s/he isn’t
A. providing feedback.
B. being consistent.
C. making ethics relevant to employees.
D. communicating clearly and openly.
B, Being consistent.
Inconsistency is one of the biggest reasons that people struggle to effectively model ethical behavior. It is important to make sure that your actions and words are consistent and align with your moral principles. If your boss has a rule, yet s/he doesn’t follow it, you won’t be likely to look to him/her as an ethical role model.
There is no indication that your boss is not providing feedback, making
ethics relevant to employees, or communicating clearly and openly.
An organization-wide system that businesses use to ensure that products meet quality standards is known as quality _____. What are the other aspects of quality management?
A. management.
B. control.
C. assurance.
D. improvement.
C, Assurance.
Quality management is the ongoing process of planning, implementing, and integrating quality into every aspect of an organization.
There are three main aspects of quality management—quality control, quality assurance, and quality improvement.
Quality control is a process that measures products against predetermined standards after the products have already been created. CONTROL THE WRONG PRODCUTS CREATED
Quality improvement involves an organization’s willingness to change and adapt for the purpose of maintaining quality.
Finally, quality assurance is an organization-wide system that businesses use to ensure that products meet quality standards. ASSURANCE IN EVERY ASPECT OF THE COMPANY
If a business wants to send a mailing to customers in specific geographic regions, it should set the database query to sort its customer information by
A. name.
B. sales volume.
C. state.
D. street number
C, State.
A database software program allows a business to sort customer information by various criteria— customer name, sales volume, customer type, zip code, etc. Queries are database fields that the business uses to sort the data. The type of data that the business wants to retrieve or analyze determines the database query (sorting mechanism) that the business uses.
To obtain a list of customers in specific geographic regions, the business should sort by state. Depending on the business’s needs, it may also use zip code, city name, or country to sort by geographic location.
Sales volume, customer name, and street numbers are not queries that will sort customer information by geographic location. BC what will 22344 do without rest???
- Which of the following steps in the civil litigation process typically comes first? What is the civil litigation process?
A. Pleadings
B. Discovery
C. Trial
D. Appeal
A, Pleadings.
Civil lawsuits occur because of disputes among people, businesses, or other entities. The first step of the litigation process is called pleadings. During this phase, each party in a lawsuit submits an official document detailing its side of the dispute.
After pleadings, the discovery process takes place. During the discovery process, each side gathers relevant information about the case to help bolster its argument.
After discovery, a trial occurs in which each party presents evidence in support of its claims to a judge and/or jury.
An appeal may be filed after a trial is completed. An appeal is a request for a higher court to review the case in hopes of achieving an alternative outcome. APPEAL TO A HIGHER COURT
