Business Structures
100 Points: Which business type reduces stockholder risk? (Question #2)
A) Franchise
B) Sole Proprietorship
C) Corporation
D) Partnership
Answer: C - Corporation. (Limits stockholders' losses to their investment.)
Which of the following would probably use a longer channel of distribution than the others? (Question #3)
A) A bag of oranges
B) A printing press
C) An airplane
D) A bottle of shampoo
Answer: D - A bottle of shampoo. (Non-perishable and low-cost products often use longer channels.)
The human resources manager sends an email to all employees stating that they will need to park on the street on Tuesday because the maintenance department will be repairing the company's parking lot. This is an example of a(n): (Question #11)
A) Informational message
B) Projection report
C) Business proposal
D) Formal inquiry
Answer: A - Informational message. (Provides employees with necessary updates.)
Business ethics involve considering issues about what is: (Question #19)
A) Legal and illegal
B) Right and wrong
C) Safe and unsafe
D) Positive and negative
Answer: B - Right and wrong. (Focuses on moral business practices.)
A depression is characterized by which of the following: (Question #21)
A) Fewer bankruptcies
B) Increased consumer spending
C) Rapidly rising GDP
D) High unemployment
Answer: D - High unemployment. (A depression involves a prolonged economic downturn.)
Businesses that carry a considerable assortment of goods but only one or a few related product lines are __________ businesses. (Question #17)
A) Specialty
B) Discount
C) Service
D) Limited-line
Answer: D - Limited-line. (These businesses focus on specific product lines but offer a variety within them.)
What is an example of integrated data between channel members? (Question #4)
A) Functions of the finance department
B) Horizontal channel integration
C) Electronic billing and bar-code technology
D) Vertical channel integration
Answer: C - Electronic billing and bar-code technology. (These tools allow seamless data integration.)
It is most appropriate for businesspeople to use complex, technical jargon when they are: (Question #10)
A) Speaking with coworkers
B) Greeting new customers
C) Introducing a friend to a business associate
D) Informally conversing with an acquaintance
Answer: A - Speaking with coworkers. (Jargon is suitable within professional circles.)
Legal protection of an invention or a process granted by the government to its owners for a certain number of years is a: (Question #20)
A) License
B) Copyright
C) Patent
D) Trademark
Answer: C - Patent. (Provides exclusive rights to an invention.)
Interest rates rising and falling by a wide range on a regular basis often are an indication of: (Question #22)
A) Price equilibrium
B) Seasonal unemployment
C) Flexible capital
D) Economic instability
Answer: D - Economic instability. (Fluctuating interest rates reflect economic uncertainty.)
A project is officially authorized to begin by the: (Question #67)
A) Project charter
B) Registration documents
C) Initiation papers
D) Statement of work
Answer: A - Project charter. (The project charter formally authorizes the project to start.)
What marketing function helps businesses answer questions like, “Who are our customers?” and “Where are they located?” (Question #53)
A) Pricing
B) Product/Service management
C) Marketing-information management
D) Promotion
Answer: C - Marketing-information management. (Gathers data to inform marketing decisions.)
When Amber walked by Ryan's desk, she noticed that Ryan was raking his left hand through his hair, that his face was red, and that he kept hitting the enter button on his keyboard with his right hand, while frowning at his computer screen. Based on his nonverbal cues, Amber would probably assume that Ryan was: (Question #8)
A) Patient
B) Frustrated
C) Bored
D) Enthusiastic
Answer: B - Frustrated. (His actions indicate stress and frustration.)
George thinks his culture is superior to all other cultures. This is known as: (Question #23)
A) Collectivism
B) Ethnocentrism
C) Stereotyping
D) Individualism
Answer: B - Ethnocentrism. (It reflects a belief that one’s own culture is superior.)
Each pay period, Kendra has her employer automatically deposit her paycheck into her checking account so the funds are available for use when she needs them. In this situation, money is functioning as a(n): (Question #36)
A) Form of cash
B) Unit of measure
C) Medium of exchange
D) Store of value
Answer: D - Store of value. (Money retains its value for future purchasing power.)
The purpose of a company's operations function is to manage its: (Question #64)
A) Day-to-day activities
B) Long-term goals
C) Communications
D) Employees
Answer: A - Day-to-day activities. (Operations oversee the company’s daily operations.)
Which of the following describes an ethical privacy policy? (Question #45)
A) It includes automatically sending email promotions to customers.
B) It puts the interests of the company over those of the customer.
C) It includes a system to protect customers in the event of a data breach.
D) It tries to hide information about data collection processes.
Answer: C - It includes a system to protect customers in the event of a data breach. (Focuses on customer data security.)
A memorandum is typically used for communication that takes place: (Question #12)
A) Within a business
B) Among competitors
C) Infrequently
D) Between friends
Answer: A - Within a business. (Memos are common in internal communication.)
Adhering to an established set of personal ethics is referred to as: (Question #26)
A) Deceit
B) Integrity
C) Honesty
D) Truth
Answer: B - Integrity. (Integrity involves consistent adherence to moral principles.)
The following is written on the back of a check: "For deposit only; Maria Evans; Account #285655." This is an example of a(n) __________ endorsement. (Question #40)
A) Restrictive
B) General
C) Open
D) Congruent
Answer: A - Restrictive. (Limits how the check can be processed, allowing only deposit.)
A producer can minimize channel conflict among its distributors and retailers by: (Question #6)
A) Selling its items directly to end users
B) Offering different products through each channel
C) Establishing slotting fees for certain channels
D) Requesting that channel members carry only its brand
Answer: B - Offering different products through each channel. (Reduces direct competition between channels.)
The data needed for sales volume analyses and market share analyses come from: (Question #49)
A) Sales invoices
B) Expense reports
C) Company sales reports
D) Customer records
Answer: C - Company sales reports. (Provide key data for performance analysis.)
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? (Question #13)
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.
Answer: B - It is unprofessional to post company employment information on a personal site. (Reduces company control over hiring.)
Ethical dilemmas should be thought of as: (Question #27)
A) Challenges
B) Opportunities
C) Easily avoidable
D) Emergencies
Answer: B - Opportunities. (Ethical dilemmas provide a chance to demonstrate moral behavior.)
What is the most likely action the government takes when a person misses the deadline for filing income taxes? (Question #41)
A) Allowance
B) Refund
C) Extension
D) Penalty
Answer: D - Penalty. (Missing the deadline results in fines or fees.)