Final Exam

Question 1

For employees who like their current work, moving into management means that they can no longer do that work.

Answer 1

True

Question 2

There are a number of activities that must be performed by all managers no matter what the type or size of the company.

Answer 2

True

Question 3

Among the major activities in the human resources department of most companies are improving health and safety of employees and managing the compensation and benefits programs.

Answer 3

True

Question 4

Human resources management is all activities involved with acquiring, developing, and compensating the people who do the company’s work.

Answer 4

True

Question 5

The primary difference between wages and salaries is the kinds of benefits associated with them.

Answer 5

False

Question 6

Compensation includes not only salary or wages but other benefits received in exchange for labor.

Answer 6

True

Question 7

Organizational development is a program that matches the long-term career planning of employees with the employment needs of the business

Answer 7

False

Question 8

Cutting the number of employees and reducing other costs is a process known as downsizing.

Answer 8

True

Question 9

Price is so important to customers that they will accept lower quality in order to save money

Answer 9

False

Question 10

All the purchases made by wholesalers and retailers are sold to their customers.

Answer 10

False

Question 11

Spending large amounts of money on new product research leads to successful new products

Answer 11

False

Question 12

Businesses are constantly trying to find better ways to please customers.

Answer 12

True

Question 13

Marketing is defined as the transportation of products from producer to consumer.

Answer 13

False

Question 14

Marketing activities, when performed well, help to match production and consumption.

Answer 14

True

Question 15

Business people and consumers have identical perceptions of a product.

Answer 15

False

Question 16

Products never include services.

Answer 16

False

Question 17

Under a debit card system, computers transfer the amount of the purchase electronically from the customer’s bank account to the retailer’s bank account.

Answer 17

True

Question 18

Installment credit customers are usually required to pay an interest charge for the privilege of making monthly payments that may run for several years or more.

Answer 18

True

Question 19

Systems for keeping accounting records can require no equipment or be highly computerized.

Answer 19

True

Question 20

A very small business could determine how profitable it is by using a business checking account to track all income deposited and by writing check for all payments.

Answer 20

True

Question 21

Money that owners borrow for their business using their own homes as security for the loan is owner capital.

Answer 21

True

Question 22

A partner’s personal contribution in a business is equity capital.

Answer 22

True

Question 23

The distinction between banks and nonbanks is fading fast.

Answer 23

True

Question 24

A bank accepts demand deposits but does not make commercial loans.

Answer 24

False

Question 25

A meter is a measure of weight

Answer 25

False

Question 26

A correlation is the relationship between tow events in which the second event is a consequence of the first.

Answer 26

False

Question 27

Prices are usually higher where a monopoly exists than where competition exists.

Answer 27

True

Question 28

A monopoly exists as long as there are at least two producers.

Answer 28

False

Question 29

A system that provides the ability to analyze “what if” scenarios is an executive information system.

Answer 29

False

Question 30

A computer system that processes data into meaningful information is called a database.

Answer 30

False

Question 31

Feedback from the receiver indicates that the sender made a communication error.

Answer 31

False

Question 32

For communication to occur, information must be put into words.

Answer 32

False

Question 33

A measure of a nation’s wealth is its GDP.

Answer 33

True

Question 34

A franchise is one method of starting a business if a person has limited business experience.

Answer 34

True

Question 35

A business changing from coal to natural gas violates environmental goals but meets conservation goals

Answer 35

False

Question 36

A business advances its own interest when it becomes involved socially.

Answer 36

True

Question 37

Economic utility is one of the four types of utility that satisfy wants.

Answer 37

False

Question 38

Form utility usually applies only to services and not to goods

Answer 38

False

Question 39

Goods and services that are sold to other countries are called exports

Answer 39

True

Question 40

Foreign investment occurs when firms of one country build new plants in another country.

Answer 40

True

Question 41

A business with a balance sheet showing assets valued at $100,000 and capital valued at $100,000 is in a weak financial position

Answer 41

False

Question 42

A business plan helps entrepreneurs see the risks and responsibilities involved in starting a business

Answer 42

True

Question 43

To implement successfully, managers must complete activities designed to channel employee efforts in the right direction to achieve the goals

Answer 43

True

Question 44

Implementing involves carrying out plans and helping employees to work effectively.

Answer 44

True

Question 45

The top managers in a business are involved in planning, but first-level managers such as supervisors are not.

Answer 45

False

Question 46

In order to be effective, a business plan should always be in writing

Answer 46

True

Question 47

Leaders can be effective without good human relations skills.

Answer 47

False

Question 48

Managers who are able to earn the respect and cooperation of employees are known as leaders

Answer 48

True

Question 49

The most important resources available to managers is the company’s employees

Answer 49

True

Question 50

Management scientists have studies successful managers to determine what makes them different from those who were not successful.

Answer 50

True