Midterm Review Flashcards
Why do top-level managers usually receive high salaries?
They are required to attend a great many meetings.
Their decisions affect the entire company.
Their responsibilities involve hands-on supervision.
They have more experience than others in the company.
Their decisions affect the entire company.
What must managers be able to do if they want employees to understand the business’s goals and be productive?
Obtain feedback.
Communicate clearly.
Listen carefully.
Ask questions.
Communicate clearly.
Why should managers know how to do the work of the workers they supervise?
To have realistic expectations for workers
To create a team spirit among employees
To establish a chain of command
To coordinate employees’ efforts
To have realistic expectations for workers
Why do all businesses need financial resources?
To pay operating expenses
To manage investment accounts
To negotiate bank loans
To develop cash budgets
To pay operating expenses
Who is normally responsible for purchasing the proper material resources for workers to use in doing their jobs?
First-line workers
Top-level managers
Supervisory managers
Middle managers
Middle managers
A manager studies the business’s previous sales statistics as well as the sales forecast before making purchasing decisions. What type of resource is the manager using?
Information
Financial
Human
Material
Information
A business owner who is acquiring a partner in order to obtain additional operating funds is performing which business activity?
Financial analysis
Debt financing
Franchising
Accounting
Financial analysis
Which of the following is a true statement regarding information management?
It’s easy for all employees to understand.
There is no right way to do it.
It rarely changes.
A business will avoid being audited if it manages information.
There is no right way to do it.
Which of the following is a trend in information management?
Increased use of outsourcing
Less incoming information
Decreased competition
Fewer electronic documents
Increased use of outsourcing
When employees are working faster or better, what are they are increasing?
value
wages
efficiency
benefits
efficiency
What risk does a hurricane create when it destroys a business?
hazard
operational
strategic
financial
hazard
What are the automobile industry, the pharmaceutical industry, and the oil industry considered?
perfect competition
oligopolies
market structures
monopolistic competition
oligopolies
What occurs when the gap between unlimited wants and limited resources exist?
resources
economics
wants
scarcity
scarcity
What is offering high quality, large assortments, and free shipping part of?
price fixing
nonprice competition
price competition
rebates
nonprice competition
When a business keeps a risk because management is unaware of it, this is what action?
transferring
preventing or controlling
retaining
avoiding
retaining
What is the heart of economics?
resources
trade-offs
wants
decision making
decision making
What are the general classifications of business risks?
production, hazard, operational, and strategic
strategic, production, competitive, and hazard
hazard, operational, strategic, and financial
competitive, strategic, financial, and operational
hazard, operational, strategic, and financial
What is the amount of money paid for raw materials and products sold?
net profit
operating expense
cost of goods
gross profit
cost of goods
What is the basic role of the United States government?
limit business startups
increase production
maintain control of prices
protect U.S. citizens
protect U.S. citizens
In economics, capital goods include which of the following?
buildings and equipment
labor and management
trees and water
mental and physical work
buildings and equipment
What motivates businesses to produce efficiently and sell effectively?
The hope of making a profit
The chance to start a trend
The need for recognition
The desire to spend money
The hope of making a profit
Which of the following represents a primary business activity?
Marketing
Scheduling
Designing
Supervising
Marketing
Which of the following statements about perfect competition is correct?
There is a limited supply of goods and services.
Products vary from seller to seller.
Businesses have a good deal of control over the market.
It is used as a benchmark to compare real market structures against.
It is used as a benchmark to compare real market structures against.
What are the three basic economic questions?
When will products be produced, how will products be produced, and how will products be allocated
Where will products be produced, when will products be produced, and what products will be produced
When will products be produced, what products will be produced, and how will products be allocated
What products will be produced, how will products be produced, and how will products be allocated
What products will be produced, how will products be produced, and how will products be allocated
In business terms, what is profit?
A monetary reward
A risky venture
A holiday bonus
A good investment
A monetary reward
Who answers the basic economic questions in a private enterprise economic system?
Influential citizens
Government agencies
Businesses and individuals
Entrepreneurs and producers
Businesses and individuals
Which one of the following groups of words best describes wants?
Unlimited, unchanging, and compensating
Unlimited, changing, and competing
Limited, unchanging, and competing
Limited, changing, and compensating
Unlimited, changing, and competing
Every business must accomplish which of the following?
Obtain venture capital
Produce or provide goods/services
Issue corporate bonds
Trade or sell business assets/property
Produce or provide goods/services
What type of market structure is most commonly found in a private enterprise economy?
Oligopoly
Monopolistic competition
Perfect competition
Regulated monopoly
Monopolistic competition
Which of the factors that affect profit are usually able to be controlled?
Expenses and billing
Income and expenses
Pricing and billing
expenses and pricing
expenses and pricing
Malinda owns a home, and instead of living in it, she decides to rent it out to make more money. Which economic freedom does this illustrate?
Freedom to control all the money you earn
Freedom to choose which laws to obey
Freedom to own, use, buy, and sell private property
Freedom to compete for jobs
Freedom to own, use, buy, and sell private property
Why are resources considered limited?
Everyone has them, and they change.
Entrepreneurs do not invest enough of them.
There are so many that people must decide which ones to choose at any one time.
There are not enough available for everyone to have as much of them as desired.
There are not enough available for everyone to have as much of them as desired.
Into what two categories can wants be divided?
unlimited and limited
Unlimited and non-economic
Economic and non-economic
Unlimited and economics
Economic and non-economic
Which of the following is the best reason for studying economics?
To find the best use for resources and supplies
To prepare for effective decision making and responsible citizenship
To determine which occupations interest you
To learn how to invest money and express social responsibility
To prepare for effective decision making and responsible citizenship
Whitley’s ethical beliefs are the same whether she’s at work, at school, or hanging out with her friends. What is Whitley following?
popular beliefs
ethical principles
situational beliefs
ethical consequences
ethical principles
After Paul gets away with cheating on his Spanish homework, his friends start cheating on their homework, too. This is an example of which consequence of unethical behavior?
Legal problems
Lost trust
A bad example
A poor reputation
A bad example
When Layla is caught stealing from a department store, the court orders her to do community service. Which consequence of unethical behavior is Layla facing?
Legal problems
Lost trust
A poor reputation
A bad example
Legal problems
When Tori considers taking something that doesn’t belong to her, which ethical principle could help her recognize that she’s facing an ethical dilemma?
Respect
Transparency
Trust
Accountability
Transparency
If you’re considering doing something illegal to get ahead at work, which ethical principle could help you determine that you’re facing an ethical dilemma?
Trust
Accountability
Rule of law
Viability
Rule of law
“Who’s involved?” and “Which ethical principles are being violated?” are questions you should ask during which step of the ethical dilemma response process?
Make and implement your decision.
Get the facts.
Consider all your potential actions.
Check your gut feeling.
Get the facts.
Deciding who should take action is part of which step of the ethical dilemma response process?
Identify the dilemma.
Reflect on the outcome.
Figure out who’s affected.
Make and implement your decision.
Figure out who’s affected.
Responsibility is a key part of which ethical principle?
Transparency
Accountability
Rule of law
Fairness
Accountability
When DeShawn’s teacher compliments his work on his group project, he’s sure to give credit to the other group members who helped. What is DeShawn showing?
rule of law
transparency
trust
viability
transparency
Which of the following is a true statement about business activities?
Business activities are independent of each other.
No one business activity affects all the others.
The way in which business activities are interrelated depends upon the business.
The relationship between business activities is the same in all businesses.
The way in which business activities are interrelated depends upon the business.
Which of the following business activities has the most long-term impact on production?
Information management
Accounting
Marketing
Financial analysis
Marketing
Which of the following is an on-boarding activity?
Compliance
Grievances
Orientation
Exit interviews
Orientation
Which of the following is a purpose of an exit interview?
To gauge employee attitudes about social issues
To negotiate compensation and benefits
To gain constructive suggestions for improvement
To gather further insight into the competition
To gain constructive suggestions for improvement
Which of the following is a true statement regarding positive customer relations?
They happen naturally.
They completely depend on technology.
They require planning and work.
Only big companies can afford them.
They require planning and work.
Which of the following would not help salespeople create positive customer/client relations?
Showing enthusiasm
Offering services
Providing information
Ignoring objections
Ignoring objections
