Hospitality
Due to a slump in sales, the RLT Company has decided to lay off 45 workers. Walter, an RLT manager, must choose three employees from within his department to let go. Although it would be easy to allow his emotions to influence his actions, Walter must base his decision regarding the layoffs strictly on facts and data. Walter must be able to defend his decision
A. subjectively.
B. objectively.
C. quarterly.
D. inductively.
B
Objectively. Rather than allowing his feelings (positive or negative) for his employees to influence his choice of workers to lay off, Walter must base his decision strictly on facts and accurate data. In other words, Walter must be able to justify and defend his decision, if necessary. Whenever a person uses facts rather than emotions to defend her/his decision or idea, that person is defending his/her decision or idea objectively. Because Walter can defend his ideas objectively, no one can accuse him or his company of playing favorites or choosing to keep a particular worker simply because Walter likes that employee, or because the worker's family has no other income. Subjective ideas are based on emotion, not on fact. There is no indication that Walter will be defending his decision inductively or on a quarterly basis.
What type of law focuses on issues regarding the promises that businesses make with their customers, vendors, and other business partners?
A. Patent
B. Constitutional
C. Probate
D. Contract
D
Contract. Contract law is an area of law that governs oral and written agreements—promises—that involve the exchange of goods, services, money, and/or property. Constitutional law is a body of law that addresses issues related to the Constitution and Constitutional rights. Probate is the legal process of validating a will and distributing assets to beneficiaries. A patent protects an owner's invention from use and distribution by unauthorized individuals.
Who is legally responsible for repaying a bank loan if the loan borrower fails to make payments as indicated in the loan contract?
A. Treasury Department
B. Credit union
C. Cosigner
D. Debt collectors
C
Cosigner. When a borrower agrees to a loan, s/he is making a contractual agreement to pay back the
loan in a certain manner within a specific period of time. When the borrower does not have the collateral
or credit history to obtain the loan, the lender often requests that another person cosign for the loan. A
cosigner is responsible for paying back the loan if the borrower does not. The credit union, Treasury
Department, and debt collectors are not responsible for repaying a loan unless they agree to be
cosigners on loan contracts.
A business might conduct a compliance audit to
A. manipulate financial data to indicate profitability.
B. ensure that it is following government regulations.
C. develop efficient production processes.
D. evaluate its vendors' performance.
B
Ensure that it is following government regulations. Government regulations affect the way that businesses record and report financial data. To ensure that the business is following all of the regulations, it should conduct a compliance audit. Because a comprehensive compliance audit can detect discrepancies, it can help a business determine what it needs to do to correct a problem, so it can comply with regulations. It is unethical and often illegal to manipulate financial data in ways that aim to mislead the audience. Developing efficient production processes and evaluating vendors' performance are not reasons for conducting a compliance audit.
What requirement of a legally enforceable contract requires that both of the parties who are entering into the contract are sane, sober, and of legal age?
A. Genuineness of assent
B. Consideration
C. Capacity
D. Legality of purpose
C
Capacity. Certain conditions must be met for a contract to be legally enforceable. Capacity involves having the mental and cognitive ability to make and understand the agreement and the consequences of their actions. If one party is a child or is found to be mentally challenged or impaired, the contract is invalid and unenforceable. Consideration means that the agreement must include something of value that both parties bargain for. Genuineness of assent means that all parties know what they are agreeing to. Legality of purpose means that the agreement must not violate any laws.
What aspect of distribution is of major importance to businesses?
A. Inventory control
B. Volume discount
C. Buying process
D. Vendor selection
A
Inventory control. Inventory control is a distribution activity that involves keeping track of how much stock is on hand, how much has been sold or used, and how much is on order. Inventory control is so important that it has been called the watchdog of the distribution system. A volume discount is a discount which is based on the quantity of a purchase. The buying process is a series of sequential steps taken by industrial or retail buying personnel to purchase goods and services. Vendor selection is the process of identifying dependable and responsible suppliers of goods and services.
When a manufacturer asks a business to collect information from customers concerning how to improve a product, which type of utility is most likely to be affected?
A. Possession
B. Place
C. Time
D. Form
D
Form. Form utility is the usefulness created by changing the shape of a good to make it more useful to customers. Manufacturers can create form utility by changing their products according to the marketresearch information from customers. Place utility is usefulness created by making sure that goods and services are available at a place where they are needed or wanted by customers. Time utility is usefulness created when products are made available at the time they are needed or wanted by customers. Possession utility is usefulness created when ownership of a product is transferred from seller to user.
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. public property.
B. tax deductions.
C. living expenses.
D. discretionary income.
B
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. The tax filer may need to provide a receipt for donations that exceed a certain amount of money. Other examples of tax deductible expenses include college tuition, home-mortgage interest, and child care. Charitable donations are not claimed on tax returns as public property, living expenses, or discretionary income.
Which of the following is an example of unethical behavior in the workplace that involves confidential information:
A. An employee tells a coworker how much the sales manager earned in bonuses last year.
B. An accounts-receivable employee provides his/her manager with an aging-accounts report.
C. A manager advises a subordinate that s/he is being laid off due to the company's financial problems.
D. A manager tells her staff that she will be on maternity leave from April through June.
A
An employee tells a coworker how much the sales manager earned in bonuses last year. It is unethical for employees to discuss their own or anyone else's salaries with coworkers. Employees might become upset if they find out that other employees make a lot more money than they do. Discussing salaries can result in bad feelings, resentment, low morale, and reduced productivity. Providing an aging-accounts report and advising staff about an extended leave of absence are not unethical behaviors in relation to confidential information. While it is difficult to lay off staff during difficult financial times, it is often done, and it is not an unethical activity that relates to confidential information.
Which of the following categories of information are found on a balance sheet:
A. Income, expenditures, profit
B. Assets, liabilities, owner's equity
C. Assets, liabilities, margin
D. Revenues, expenses, profit
B
Assets, liabilities, owner's equity. A balance sheet is a financial statement that captures the financial condition of the business at that particular moment. The statement first lists assets, anything of value that a business owns; then liabilities, or debts, that the business owes; and finally owner's equity, or the amount the owner has invested in the business, plus or minus profits and losses. Revenues, or income; expenses, or expenditures; and profit are components of an income statement, or profit-and-loss statement. Margin is a term that describes the difference between net sales and cost of goods sold.
Jia just bought a new home. She makes a monthly payment that will help her protect her home if it is damaged by a natural disaster or otherwise harmed. Jia is making a(n) _________ payment.
A. retirement
B. insurance
C. will
D. college
B
Insurance. Insurance provides people or businesses with a guarantee that they will be reimbursed for loss or damage. Jia's monthly insurance payment means that she will be reimbursed if her home is damaged. This is not a payment towards retirement or college. People do not make payments toward wills.
John recently expanded his business into another country to reach more of his target market. He was initially thrilled with his company's profits following the expansion—until he converted the money back to his domestic currency. At that point, he realized that the company made much less than he originally thought. What risk involved with international business did John experience?
A. Political unrest in foreign countries
B. International trade agreement changes
C. Foreign exchange rate fluctuations
D. The cost of international unionized labor
C
Foreign exchange rate fluctuations. Foreign exchange rate risk occurs when the value of an investment fluctuates due to changes in a currency's exchange rate. When a domestic currency appreciates against a foreign currency, profits earned in the foreign country will decrease after being exchanged back to the domestic currency. John's profits were greater in the foreign currency than in domestic currency because of fluctuations in the exchange rate between the two currencies. International trade agreements, political unrest, and the cost of international unionized labor are all factors that business owners should consider before engaging in international business, but John did not experience them in this situation.
Sophia gathered members of the department together to discuss the ways in which they perform their work and what they do to overcome pitfalls and challenges while performing their day-to-day tasks. While the members of the group shared their experiences and ideas, Sophia took notes and asked follow-up questions. What technique is Sophia using to capture tacit knowledge?
A. Channeling discussion
B. Parliamentary procedure
C. Repetitious feedback
D. Critical interaction
A
Channeling discussion. Tacit knowledge is knowledge consisting of personal opinions, experiences, expertise, or understanding that is not easily articulated, stored, or quantified. Employees' tacit knowledge is important to a business because this type of knowledge is often instrumental in helping the business succeed and achieve its organizational goals. Businesses use different techniques to capture their employees' tacit knowledge. A channel discussion involves gathering a group of people together to talk about the ways in which they perform their work, the challenges that they encounter, and the actions they take to overcome their challenges. By sharing this type of information, other group members may learn new techniques to use to perform their jobs. When an individual (Sophia) takes notes, the information can be synthesized, evaluated, and used to implement positive changes throughout the entire organization. Parliamentary procedure is the standard set of rules used to officiate and document a formal meeting. Repetitious feedback and critical interaction are not techniques used to capture tacit knowledge.
How does analysis of standard costs differ from analysis of a budget?
A. A budget analysis shows forecasted amounts, while standard cost analysis shows actual costs.
B. A budget analysis provides an overview, while standard cost analysis shows the details of variances.
C. A budget analysis deals with quality and quantity considerations, while standard cost analysis deals with quantity considerations.
D. A budget analysis is conducted by all staff involved in setting the budget, while standard cost analysis is conducted by a departmental manager.
B
A budget analysis provides an overview, while standard cost analysis shows the details of variances. When employees analyze a budget, they can determine overall variances in their projections; however, they cannot determine the causes (or the details) of the variances in projections. That information is provided by analyzing standard costs to determine whether too much money was paid for materials, too much time was spent on labor, materials were wasted, or the amount of inputs required differed from projections. This helps businesses pinpoint problems. Both budgets and standard costs deal with projected or forecasted amounts, quality and quantity considerations, and all staff involved in setting the projections.
Which of the following is essential to all marketing research:
A. Frequency
B. Primary data
C. Accuracy
D. Secondary data
C
Accuracy. Accuracy is absolutely essential in gathering, recording, and analyzing marketing-research data if the data are to be of value to the business. Inaccurate data can cause the business to make incorrect or unwise decisions. The frequency with which research is conducted would depend upon the needs of the business. Primary data are facts collected specifically for the problem or project at hand. Secondary data are facts that have been collected for purposes other than the project at hand. A marketing-research project may require either or both kinds of data.
In relation to product grades and standards, why is international standardization needed?
A. To protect patents, copyrights, and trademarks
B. To prevent market expansion
C. To prevent technical barriers to trade
D. To protect developing countries from competition
C
To prevent technical barriers to trade. By establishing worldwide industry standards, technical barriers to trade are minimized because products meet the same standards. This encourages competition between countries and increases markets. Standards also economically assist developing countries by improving productivity, market competitiveness, and export capability. International standards do not affect patents, copyrights, or trademarks.
Which of the following types of software programs would an employee use to prepare a form letter informing the company's clients of a change in product pricing:
A. Database
B. Spreadsheet
C. Presentation
D. Word processing
D
Word processing. Word-processing software programs are used to create documents that are primarily text but may contain some graphics. Database and spreadsheet programs are used to organize and analyze different types of data. Presentation software programs are used to develop visual presentations.
Department manager, small business manager, and regional manager are __________ positions.
A. supply chain management
B. business analytics
C. operations management
D. general management
D
General management. Department manager, small business manager, and regional manager are general management positions. They are not supply chain management, business analytics, or operations management positions. General management professionals are responsible for planning, organizing, directing, and evaluating all or part of a business organization through the allocation and use of financial, human, and material resources.
When developing a web page, it is best to
A. use short blocks of text.
B. incorporate a variety of fonts.
C. leave space for banner ads.
D. avoid the use of graphics.
A
Use short blocks of text. Since web surfers want information quickly, they tend to scan over the web page rather than reading the text in detail. Therefore, short blocks of text are often most effective in grabbing the reader's attention. In some situations, such as presenting a product's features, the text may be presented in a bullet-point format. Using too many fonts may make the text difficult to read. Applicable graphics should be included on the web page to add interest. Not all web pages include advertising, so leaving space for banner ads is not always necessary.
When bottlenecks in business processes develop that cause a company to miss deadlines and waste resources, an effective manager would most likely choose to
A. invest in quality control.
B. redesign the business processes.
C. implement an employee incentive program.
D. speed up production.
B
Redesign the business processes. When bottlenecks in business processes develop, an effective
manager would most likely redesign the business processes to eliminate the bottlenecks. Investing in
quality control, implementing an employee incentive program, and/or speeding up production would not
eliminate the bottlenecks.
Which of the following is one of the major responsibilities for top-level managers:
A. Short-range planning
B. Strategic planning
C. Tactical planning
D. Day-to-day planning
B
Strategic planning. Strategic planning is long-range planning (three to five years) for the company as a whole. Strategic planning is one of the major responsibilities for top-level managers. Tactical planning is short-range planning (one year) and is usually the responsibility of middle management. Day-to-day planning is the responsibility of first-line, or supervisory, management.
Which of the following would help a job applicant to fill out job application forms easily:
A. Having a personal data sheet
B. Having computer experience
C. Keeping a file of job leads
D. Knowing someone at the business
A
Having a personal data sheet. A personal data sheet is a list of information such as the applicant's Social Security number; the names, addresses, and telephone numbers of references; dates of previous employment; grade-point average; and any other data that might be asked for on a job application. Job applicants who prepare and use a personal data sheet can fill out job applications quickly, easily, and accurately because they have all the data they need on the sheet. Job applications are generally filled out by hand, not by computer. Keeping a file of job leads helps the applicant to organize his/her search for a job. Knowing someone at the business would not necessarily help a job applicant to complete a job application.
Bobbi is searching the Internet for information about business licenses. Unfortunately, many of the search results are useless to her because they focus on drivers' licenses. What search terms should Bobbi use to find information specifically about business licenses?
A. "business license" driver
B. +business +license
C. +business +license -driver
D. BUSINESS LICENSE
C
+business +license -driver. By placing a "+" before a word, you can tell most search engines to look for websites containing that word. Likewise, by placing a "-" before a word, you are telling the search engine to disregard all websites that contain that word. So, by entering "+business +license -driver," Bobbi is telling her search engine to look for websites that contain the words "business" and "license" but don't contain the word "driver." That way, Bobbi won't have to weed through search results focusing on drivers' licenses before finding quality information about business licenses. "+business +license" would tell the search engine to look for websites containing "business" and "license," but websites about drivers' licenses could potentially appear in the search results. The search phrase "'business license' driver" would command the search engine to look for websites that contain the exact phrase "business license" as well as the word "driver." Search engines are not typically case-sensitive, so capitalizing the words "BUSINESS LICENSE" would not have an impact on search results.
Using appropriate software to protect confidential data that are stored on a company's computer systems is an important part of managing
A. natural disasters.
B. security risks.
C. physical safety risks.
D. environmental hazards.
B
Security risks. Risk management is a business activity that involves planning, controlling, preventing, and establishing procedures to limit business losses. Businesses use technology to minimize security risks. One way that businesses control security risks is by installing firewalls on computer networks to prevent computer hackers from obtaining confidential financial data (e.g., customers' credit card numbers). Natural disasters include occurrences such as hurricanes, tornadoes, and floods. Physical safety risks involve threats to a person's well-being and may include environmental hazards such as air pollution and water toxins.
Businesses often use direct advertising strategies because
A. the promotional message reaches a larger group of people.
B. they can select and reach qualified prospects.
C. direct advertising is less expensive than other forms of promotion.
D. it reduces the need to include other elements in the promotional mix.
B
They can select and reach qualified prospects. By possessing the means to qualify potential customers, businesses can reduce waste in terms of sending promotional messages to uninterested parties. As a result, the businesses can focus their efforts on developing a customer base that is most likely to buy. Direct advertising is not necessarily less expensive than other forms of promotion. Direct advertising messages generally reach a select target audience that varies in size. Promotional mix refers to the combination of communication channels that a business uses to send its messages to consumers. Use of direct advertising strategies does not necessarily mean businesses do not need to use other promotional methods to reach customers.