Business 001 - Introduction to Business » Fall 2020 » Midterm I
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Question #1
An entrepreneur:
A.
is a middle manager
B.
does not tolerate ambiguity
C.
avoids risk at all cost
D.
is a risk taker in the private enterprise system
Question #2
Entrepreneurs enjoy guaranteed job security because no one can fire them
A.
FALSE
B.
TRUE
Question #3
The financial resources needed to operate a business may also be known as capital.
A.
TRUE
B.
FALSE
Question #4
Buying a franchise offers a less risky way to begin a business than starting an entirely new firm.
A.
FALSE
B.
TRUE
Question #5
There is very little the government can do to encourage entrepreneurship.
A.
TRUE
B.
FALSE
Question #6
Which of the following statements is true of management?
A.
Management principles do not apply to not-for-profit organizations.
B.
Management is solely the process of reporting organizational successes and failures to investors and others.
C.
Management is the process of achieving organizational objectives through people and other resources.
D.
Management happens only at the top management levels.
Question #7
Which of the following is a characteristic of strategic planning?
A.
It involves implementing the activities specified by operational plans.
B.
It allows an organization to resume operations as quickly and as smoothly as possible after a crisis while openly communicating with the public.
C.
It is the process of determining the primary objectives of an organization and then acting and allocating resources to achieve those objectives.
D.
It crates the detailed standards that guide implementation of tactical plans.
Question #8
Which of the following planning activities involves business continuation and public communication?
A.
Operational planning
B.
Strategic planning
C.
Tactical planning
D.
Contingency planning
Question #9
A CEO is developing a written explanation of her organization's business intentions and aims. She is in the process of developing a(n):
A.
mission statement.
B.
operational plan.
C.
contingency plan.
D.
benchmarking process.
Question #10
A frequently used tool that helps assess a firm's current position in the marketplace is called a(n):
A.
GANTT chart.
B.
organizational chart.
C.
benchmark analysis.
D.
SWOT analysis.
Question #11
Programmed decisions include simple things that occur regularly, such as reordering office supplies.
A.
TRUE
B.
FALSE
Question #12
A manager must demonstrate leadership, which is the ability to direct or inspire people to attain certain goals.
A.
TRUE
B.
FALSE
Question #13
Autocratic leaders make decisions after consulting their employees.
A.
FALSE
B.
TRUE
Question #14
A market economy relies on centralized government to control all or most of the factors of production.
A.
TRUE
B.
FALSE
Question #15
Which of the following management functions is most likely to be responsible for planning for staffing needs, recruiting and hiring workers, determining compensation and benefits, and overseeing employee separation?
A.
Human asset accounting
B.
Human resource management
C.
Research and Development (R&D)
D.
Change management
Question #16
The total volume of the world trade is immense -- more than:
A.
$19.3 trillion in merchandise is traded each year.
B.
$10.3 trillion in merchandise is traded each year.
C.
$18.3 billion in merchandise is traded each year.
D.
$19.3 million in merchandise is traded each year.
Question #17
In a partially planned system such as ___________________________, the government owns and operates selected major industries.
A.
communism
B.
socialism
C.
fascism
D.
capitalism
Question #18
When the quantity demanded is greater than the quantity supplied a surplus may occur.
A.
FALSE
B.
TRUE
Question #19
Which of the following industries is a good example of perfect competition:
A.
Airline industry
B.
Automobile industries
C.
Steel industries
D.
U.S. agriculture
Question #20
Also known as the "Big Mac" test, _________________________________ gives us an idea of what people can actually buy with the financial resources allocated to them by their respective economic systems.
A.
Aggregate Output
B.
GDP
C.
Balance of Trade
D.
Purchasing Power Parity
Question #21
Collusion may be defined as using confidential information to gain from the purchase or sale of stocks.
A.
TRUE
B.
FALSE
Question #22
If a firm is taking the highest degree of social responsibility, it is taking a ___________________________ stance.
A.
obstructionist
B.
accommodative
C.
defensive
D.
proactive
Question #23
If one partner dies or leaves, the original partnership remains intact. Like corporations, partnerships have continuity.
A.
FALSE
B.
TRUE
Question #24
In which stage of the product life cycle do competitors enter the field with the same or similar products?
A.
Decline stage
B.
Maturity stage
C.
Introductory stage
D.
Growth stage
Question #25
The _______________________ was created to promote trade through financial cooperation and in the process eliminate barriers.
A.
Global Assistance Fund
B.
International Monetary Fund
C.
International Bank
D.
World Bank
Question #26
The right to ____________________ is the most basic freedom under the private entererprise system.
A.
private property
B.
freedom of choice
C.
competition
D.
profits
Question #27
The foundation of an ethical environment is ethical awareness, and a Code of Conduct provides a good step in this direction.
A.
FALSE
B.
TRUE
Question #28
Core inflation rate is the inflation rate of an economy after _______________ and _______________prices are removed.
A.
transportation; housing
B.
health care; education
C.
entertainment; clothing
D.
energy; food
Question #29
Boeing sells jetliners in Asia. The jets would be considered a(n) ____________________ in the United States.
A.
export
B.
resource
C.
exchange
D.
import
Question #30
Taxes, surcharges or duties on foreign products are referred to as:
A.
quotas
B.
seeding
C.
tariffs
D.
dumping
Question #31
Which of the following shapes a company's business ethics?
A.
The company's ethical climate
B.
The company's code of ethics
C.
All of these
D.
The company's upper management
Question #32
Macroeconomics is the study of small economic units such as households and individual businesses.
A.
TRUE
B.
FALSE
Question #33
Which of the following imposes a total ban on importing a specified product?
A.
exchange control
B.
quota
C.
tariff
D.
embargo
Question #34
____________________________typically slope downward, meaning that lower prices for a good or service attract larger purchases.
A.
Production possibility curves
B.
Supply curves
C.
Demand curves
D.
Normal distribution curves
Question #35
What is business?
A.
Business consists of all profit-seeking activities that provide goods and services to an economic system.
B.
Business is defined as activities that produce the most good for society.
C.
The term business only describes firms that are profitable and excludes government or private organizations
D.
Business consists of marketing products that people want.
Question #36
A.
developing a quality workforce.
B.
dealing with public health issues.
C.
protecting the environment.
D.
all of these.
Question #37
_____________________ is described as an economic situation characterized by soaring prices.
A.
Trade surplus
B.
Budget surplus
C.
Stock liquidation
D.
Hyperinflation
Question #38
Which of the following traits are needed by today's business managers?
A.
Visionary skills
B.
Ability to lead change
C.
Creativity and critical thinking
D.
All of these
Question #39
Why are the four factors of production important?
A.
Firms need to understand how to reduce the cost of production if they are going to be successful.
B.
Managing only human resources is enough for the successful operation of a business.
C.
Natural resources will always be the least important factor of production.
D.
The factors of production are regulated by the government.
Question #40
Which of the following is true of inflation?
A.
Inflation is good news for people who live on fixed incomes.
B.
While deflation weakens the economy, inflation strengthens the economy.
C.
When inflation is high, businesses should invest in research and development.
D.
Inflation devalues money.
Question #41
The _____________________. signed after WWII, substantially reduced worldwide tariffs and other trade barriers.
A.
General Agreement on Tariffs and Trade (GATT)
B.
World Trade Organization (WTO)
C.
World Bank
D.
International Monetary Fund (IMF)
Question #42
A country has a(n)__________________________in making a product for which it can maintain a monopoly or that it can produce at a lower cost than any competitor.
A.
comparative advantage
B.
trade deficit
C.
absolute advantage
D.
trade surplus
Question #43
Why is fair competition important in the private enterprise system?
A.
Fair competition allows firms to compete, knowing they won't be subjected to excessively aggressive practices that are designed to eliminate them.
B.
Fair competition requires firms to inform their competitors when prices will be reduced.
C.
Fair competition supports the goal of private property ownership.
D.
Fair competition allows employees to choose their own employment.
Question #44
During which era was consumer orientation developed?
A.
Relative era
B.
Marketing era
C.
Colonial era
D.
Production era
Question #45
A.
legislation
B.
customer complaints
C.
individual employees
D.
policies
Question #46
A planned economy relies on central government to control most factors of production.
A.
TRUE
B.
FALSE
Question #47
A market economy does not allow individual producers to control production.
A.
FALSE
B.
TRUE
Question #48
Demand is the willingness and ability of buyers to purchase a product, a good, or a service, and supply is the willingness and ability of producers to offer a good or service for sale.
A.
FALSE
B.
TRUE
Question #49
Gross national product (GDP) can be defined as the total value of all goods and services produced within a given period by a national economy.
A.
TRUE
B.
FALSE
Question #50
Small businesses are an important source of new jobs.
A.
TRUE
B.
FALSE
Question #51
In construction, small businesses usually can't compete because of the expense of specialized equipment needed to handle local jobs.
A.
TRUE
B.
FALSE
Question #52
All of the following may be considered advantages of sole proprietorships, except:
A.
Taxes paid on personal tax return
B.
Little or no recording by the State
C.
Ease of setup
D.
Double taxation
Question #53
A corporation may be defined as an artificial being, invisible, intangible, and existing only in the contemplation of the law
A.
FALSE
B.
TRUE
Question #54
All of the following may be considered advantages of corporations, except:
A.
liability is limited to corporate assets only
B.
it is considered a separate legal entity
C.
there is ease of transfer
D.
all of the above may be considered advantages of corporations
Question #55
A sole proprietor has unlimited liability which means he or she is not personally liable for all debts incurred by the business.
A.
TRUE
B.
FALSE
Question #56
The person who is considered the father of modern capitalism and wrote, "The Wealth of Nations" is:
A.
Adam Smith
B.
Machiavelli
C.
Karl Marx
D.
John Adams
Question #57
The natural tendency for all thing to go toward disorganization is know as:
A.
gravity
B.
fusion
C.
entropy
D.
dynamics
Question #58
_________________________ is the difference between a business’s revenues and its expenses.
A.
Depreciation
B.
Marketing
C.
Profit
D.
Cost of goods sold
Question #59
A _______________________ market economy has characteristics of both planned and market economies.
A.
communist
B.
public
C.
mixed
D.
private
Question #60
The price set by the intersection of the supply and demand curve is the _________________ price.
A.
surplus
B.
equilibrium
C.
discount
D.
credit
Question #61
A prolonged and deep recession is also known as a depression.
A.
TRUE
B.
FALSE
Question #62
A.
David Ricardo
B.
Adam Smith
C.
Justin Turner
D.
Milton Friedman
Question #63
In a general partnership, all of the partners have the ability to actively manage or control the business, and they don't have any limit on their personal responsibility for the debts or negligence of the business. In a limited partnership, a partner does not have the authority to run the business and the most a limited partner can lose is their investment in the business.
A.
TRUE
B.
FALSE
Question #64
The shift toward a more integrated and interdependent world economy describes:
A.
Marxism
B.
globalization
C.
protectionism
D.
isolationism
Question #65
The __________________________________ plans and executes sales and marketing plans, monitors all sales activity, and is responsible for the company’s growth.
A.
chief sales officer
B.
chief executive officer
C.
chief operations officer
D.
chief financial officer
Question #66
A __________________ manager makes decisions on his/her own without consulting employees. They are “boss centered.”
A.
democratic
B.
autocratic
C.
charismatic
D.
laissez-fair
Question #67
The managerial function of guiding and motivating employees, for example training, scheduling, delegating, and monitoring may be termed:
A.
organizing
B.
planning
C.
directing
D.
staffing
Question #68
When shares of a corporation are publicly issued, the firm becomes publicly held or a public corporation.
A.
TRUE
B.
FALSE
Question #69
Endowments refer to the extent to which a country is gifted with such resources as land, labor, and capital.
A.
TRUE
B.
FALSE
Question #70
Employees in a business often take their cues concerning ethical decisions from upper management.
A.
FALSE
B.
TRUE
Question #71
Let's say I'm from the United States and I'm visiting China. The exchange rate is 1 Chinese Yuan = 0.14 US dollars. If I want to buy a shirt that costs 1000 Chinese yuan. How many US dollars will I have to exchange?
A.
$14,454.00
B.
$1,445.54
C.
$14.45
D.
$144.54
Question #72
A __________________________ occurs when two firms combine to form a new company.
A.
divestiture
B.
acquisition
C.
strategic alliance
D.
merger
Question #73
__________________________ is a system in which the government owns and operates all factors of production.
A.
Capitalism
B.
Socialism
C.
Federalism
D.
Communism
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