Communications
Which of the following adds meaning to the words a speaker uses:
A. Tone of Voice
B. Tempo
C. Accuracy
D. Economy of speech
A. People can change the meaning of their words by changing their tone of voice. For example, the same words can be a request or a command depending upon the tone used to deliver them.
What is often the role of management in the achievement of quality in a business?
A. To assign blame
B. To lead the effort
C. To judge the staff
D. To eliminate conflict
B. To lead the effort. Management sets the tone for quality in a business and leads the effort. If managers do their best to achieve quality and set an example for employees, the employees usually follow. Managers lead by setting clear goals, by making sure employees understand the goals, by giving employees the information and tools they need, and by being supportive.
Why do some businesses sponsor local events?
A. To obtain publicity
B. To create news
C. To generate revenue
D. To sell products
A. To obtain publicity. By sponsoring an event, businesses are using the event as a communications channel to provide information to others. The goal of sponsoring an event is to obtain publicity which is any nonpersonal presentation of ideas, goods, or services that is not paid for by the company or individual that benefits from or is harmed by it. In many cases, the media report the event and include information about the sponsors. As a result, the businesses obtain publicity
What effect do some environmental laws have on businesses?
A. Limit equipment purchases
B. Require more employees
C. Control exterior landscapes
D. Increase operating costs
D. Environmental laws are intended to conserve and protect the natural environment. Many of these laws have an impact on the way businesses operate by requiring them to decrease pollution or control waste. As a result, businesses often need to spend money to comply with the rules and regulations, which leads to an increase in operating costs. For example, a business might need to purchase pollution-control devices.
In order to be understood on the telephone, a business's employees should always
A. speak rapidly.
B. speak from notes.
C. enunciate clearly.
D. use filler words
C. Enunciate clearly. Enunciating clearly involves speaking clearly and distinctly, which makes the message easy for the listener to follow.
Which of the following should you do when preparing your letter of application:
A. Proofread quickly so you can send the letter sooner.
B. Write a letter that is at least one page long.
C. Repeat everything that is on your résumé.
D. Mention any mutual contacts you have.
D. Mention any mutual contacts you have. If you can, you should name someone you and the reader of your application letter both know. Of course, this isn't always possible, but it's a great way to get attention.
The entrepreneurs best equipped to work long hours and overcome obstacles are ones who possess:
A. financial knowledge.
B. passion for their work.
C. technological skills.
D. confidence.
B. Passion for their work. Entrepreneurs who are passionate about their work find it easier to work the long hours required. They are also more likely to overcome obstacles out of a desire to continue doing what they love.
Jamie is constantly running from obligation to obligation, without a second of free time, and feels like he is behind on all of his work. Jamie is most likely to be
A. a procrastinator.
B. a perfectionist.
C. bad at time management.
D. overcommitted.
D. Overcommitted. Being overcommitted means committing to more than what is possible, necessary, or desirable. People who are overcommitted, like Jamie, have countless obligations, events, and tasks each day.
If a business reduces the price of an item from $3.75 to $3.00, demand for that item will usually
A. Stay the same
B. Increase
C. Decrease
D. Fluctuate
B. Increase. Demand is the amount of an item customers can and will purchase. When price decreases, the demand for a product usually increases.
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. The three main purposes of oral presentations are to inform, persuade, and entertain. Interviews and debates are types of presentations, not purposes.
What is an advantage of verbal communication?
A. You use passive listening skills to understand the message.
B. Tone of voice can be used to express emotions and thoughts.
C. It focuses attention on facial expressions rather than words to express enthusiasm.
D. People must see you to understand the intent of your message.
B. Tone of voice can be used to express emotions and thoughts. This means that people can show their interest and enthusiasm by what they say and by the way they say it. Although body language conveys intent, people can communicate how they feel through their choice of words. The words that people use often express their interest and enthusiasm.
An example of an internal change that could affect a business's sales forecast is a change in the...
A. length of a national recession.
B. number of competitors in the market.
C. size of the sales force.
D. levels of consumer spending.
C. Size of the sales force. An internal change is one that occurs within the business and is under the business's control. Increasing or decreasing the number of people on the sales force is an internal change that will affect the sales forecast.
Why do businesses want to meet quality standards?
A. To determine how much work must be done
B. To reduce costs
C. To decrease profit
D. To examine how long it takes to get a job done
B. To reduce costs. Businesses want to meet quality standards to reduce costs. Managers have recognized that if employees do their jobs right the first time, they can minimize costs. Time isn't wasted redoing work, and fewer products end up as scrap.
Pedro received a check in the amount of $432.87 from the Tabor Corporation, a company in which he is a stockholder. This source of income is referred to as...
A. Inheritance
B. Wages
C. Interest
D. Dividends
D. Dividends. Individuals and businesses acquire income in many ways. Dividends are earnings that are paid to investors or stockholders for their investments. When Pedro purchased shares of Tabor stock, he became an owner of the company. As an owner of the company, Pedro has the opportunity to earn a percentage of the company's profits, which are paid to him in the form of dividends.
When companies work with their vendors to develop mutually beneficial business arrangements, they are more likely to:
A. double their profit margins.
B. maintain long-term relationships.
C. experience vertical conflict.
D. experience horizontal conflict.
B. To establish favorable relationships with vendors, both the company and its vendors must receive something they want. Companies must be willing to work with vendors to achieve mutual goals.
Lucia, a business owner, just hired a new employee. What is one thing she should be sure to do on the employee's first day?
A. Provide the new employee with all the details of every project s/he will be working on.
B. Start the new employee on work right away so that s/he becomes accustomed to his/her job duties.
C. Assign the new employee a mentor who can answer any questions s/he may have.
D. Let the employee work on trivial tasks for a few days so that s/he can ease into working.
C. Assign the new employee a mentor who can answer any questions s/he may have. One simple way to make an employee feel comfortable is to assign a mentor. The mentor doesn't need to be the employee's direct supervisor—it just needs to be someone who can show the new employee the ropes. It will help the new employee to have one ready-made friend who can show her/him around.
Which of the following is a true statement about how technology affects the external business environment:
A. Technology is the main way to compete with other businesses.
B. Not all businesses are affected by technology.
C. Businesses must look for updated technology all the time.
D. Certain target markets do not use technological products.
C. Businesses must look for updated technology all the time. Because new technology is being introduced all the time, businesses must constantly be on the lookout for updated technological tools that will help them to be more efficient. All businesses are affected by technology in one way or another
Corsica Steel Mill has developed a new process to reduce the time it takes to complete a phase of production. To legally protect this new process from unauthorized use, the company should obtain a:
A. trade name.
B. copyright.
C. trademark.
D. patent.
D. Patent. A patent is legal protection for a product or process, such as a production process. The patent is granted to the inventor or owner for a specific number of years and is a legal means of preventing the product from being recreated and distributed by unauthorized entities.
Fiona made a $500 donation to a local homeless shelter last year. When she prepares her personal income tax form, she can claim the donation as part of her
A. Living Expenses
B. Public Property
C. Tax Deductions
D. Discretionary Income
C. Tax deductions. Tax deductions are expenses that can be subtracted from gross income. For example, charitable donations can be claimed as tax deductions on an individual's personal tax return. Charitable donations are not claimed on tax returns as public property, living expenses, or discretionary income.
Justine's rich uncle wants to give her $5,000 toward the purchase of a car. But since Justine doesn't plan to buy the car for at least another year, her uncle told her that she can have the money now, or he can wait and give her the money when she actually buys the car. Justine chooses to take the money now and deposit it in her savings account. After all, her deposit will yield 6% interest compounded annually. A year from now, her $5,000 will be worth $5,300. What financial concept does this scenario illustrate?
A. Time-value of money
B. Dividend reinvestment plan
C. Capital budgeting
D. Accrual accounting
A. Time-value of money. Due to the time-value of money, any certain amount of money (such as Justine's $5,000) is worth more now than later as a result of its earning potential.
Jayson just learned his company wants to hire a new public relations assistant. He posts the job position information on his personal social media accounts and gives contact information for the manager that will be conducting interviews. Why is this inappropriate use of social media?
A. It could give Jayson's friends an unfair advantage over other job candidates.
B. It is unprofessional to post company employment information on a personal site.
C. Jayson is using inside knowledge to appear more important on his social sites.
D. Jayson is using his company's image to increase his number of social contacts.
B. It is unprofessional to post company employment information on a personal site. Jayson's placement of a job opening on his personal sites is unprofessional and gives the company little control over the presentation or distribution of the information.
If an entrepreneur obtains a commercial bank loan to finance a new venture, s/he is often required to
A. provide collateral.
B. close savings accounts.
C. relinquish contracts.
D. charge the prime-interest rate.
A. Provide collateral. There are many ways for entrepreneurs to obtain financing for new business ventures. One way is to obtain a loan from a commercial bank. The loan process generally involves completing a loan application and submitting a business plan to the financial institution. In most situations, a bank will require the loan applicant to put up collateral in order to obtain the loan. Collateral is anything of value (e.g., car, home) belonging to the borrower that is pledged to the lender to guarantee that the loan will be repaid.
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 tasks
A. Share human resources. The matrix organizational structure involves integrated departmental functions with product or project orientation. 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.
Which of the following is essential to the identification of trends in financial data for a horizontal analysis:
A. Data in a Statement of Cash Flows
B. Data from the most recent financial report
C. Data in financial reports from multiple time periods
D. Data from a zero-based budget
C. Data in financial reports from multiple time periods. Trends indicate the direction that something is headed. They depict patterns. Horizontal analysis requires the comparison of data over a period of time. You cannot look at a single financial report and spot trends for a horizontal analysis.
Which of the following illustrates the impact of a country's history on world trade:
A. Countries with widely different religious beliefs have difficulty establishing trust.
B. Countries that have engaged in war conflicts have difficulty establishing trust.
C. Countries speaking different languages have difficulty understanding each other.
D. Countries that are adjacent to each other have more opportunities for conflict.
B. Countries that have engaged in war conflicts have difficulty establishing trust. When countries have a history of war, it can be difficult for them to establish trust with other countries to make trade possible.