Finance
What are dividends?
A. Payments a corporation distributes to its shareholders
B. Loans a corporation receives from banks
C. Taxes customers pay on purchases
D. Expenses incurred to manufacture products
D. The cost of producing a product
Answer: A — Payments a corporation distributes to its shareholders.
A manager discovers discrepancies between the inventory records and the actual number of products in stock. What should the manager do first?
A. Investigate the differences and verify the records
B. Immediately increase product prices
C. Ignore the records and continue operating
D. Replace the entire inventory system without investigation
A. Investigate the differences and verify the records
What is a stereotype in the workplace?
A. An objective evaluation of an employee's performance
B. A formal description of a job's responsibilities
C. A legally required employee training program
D. A generalized assumption about a person based on their group
D. A generalized assumption about a person based on their group
What is qualitative market research primarily concerned with?
A. Calculating the percentage increase in sales
B. Measuring total market share numerically
C. Understanding customers' opinions, motivations, and experiences
D. Calculating a company's annual profit
Answer - C. Understanding customers' opinions, motivations, and experiences
What is a proprietor?
A. A person who purchases shares in every corporation
B. A person who owns a business, especially a sole proprietorship
C. A government employee who regulates all businesses
D. A customer who buys goods for personal use
Answer: B — A person who owns a business, especially a sole proprietorship.
What does disposable income refer to?
A. A business's total sales revenue
B. Income remaining after personal income taxes are paid
C. Money a company spends on equipment
D. The total value of a person's investments
B. Income remaining after personal income taxes are paid
What does ambiguity mean in workplace communication?
A. Information that is supported by several sources
B. A message that has only one clear interpretation
C. Information that can be interpreted in more than one way
D. A report containing only numerical data
C. Information that can be interpreted in more than one way
A manager threatens to fire an employee unless the employee performs an action the manager has no legitimate authority to demand. Which concept most closely describes using threats to pressure someone into acting?
A. Coercion
B. Delegation
C. Mediation
D. Recognition
A. Coercion
A company surveys 1,000 customers and analyzes numerical ratings to determine satisfaction levels. What type of research is this?
A. Exploratory research
B. Qualitative research
C. Causal research
D. Quantitative research
D. Quantitative research
What is obsolescence?
A. An increase in product demand
B. A reduction in production costs
C. A product or technology becoming outdated or no longer useful
D. A business expanding into a new market
Answer: C — A product or technology becoming outdated or no longer useful.
A business sells a product for $50. The variable cost per unit is $30, and fixed costs are $1,000. How many units must it sell to break even?
A. 20 units
B. 33 units
C. 50 units
D. 100 units
Answer: C — 50 units.
Explanation: Break-even units = Fixed costs ÷ (Selling price − Variable cost) = $1,000 ÷ $20 = 50.
A manager receives two reports that provide conflicting figures for the same department's expenses. What should the manager investigate?
A. Product positioning
B. Inconsistencies between the reports
C. Employee disposable income
D. Market monopolization
B. Inconsistencies between the reports
An employer makes hiring decisions based on assumptions about an applicant's age rather than evaluating their qualifications. What is the primary issue?
A. Effective workforce planning
B. Objective performance assessment
C. Stereotyping and potentially discriminatory hiring
D. Comprehensive recruitment
C. Stereotyping and potentially discriminatory hiring
A company interviews a small group of customers to investigate why sales have declined before designing a larger survey. What type of research is it conducting?
A. Exploratory research
B. Causal research
C. Stratified sampling
D. Quantitative forecasting
A. Exploratory research
A startup sends promotional messages to potential customers to encourage them to purchase its product. What is this activity called?
A. Depreciation
B. Delegation
C. Diversification
D. Soliciting
Answer: D — Soliciting.
A government uses a GDP deflator to measure changes in the overall price level of domestically produced final goods and services. What does an increasing GDP deflator generally indicate?
A. The economy is producing fewer goods in every industry
B. Unemployment has necessarily decreased
C. The overall price level of domestically produced final goods and services is rising
D. Every household's disposable income is increasing
C. The overall price level of domestically produced final goods and services is rising
A manager needs feedback from employees across five departments. To ensure each department is represented in the sample, the manager divides employees into departmental groups and samples from each group. What sampling method is being used?
A. Convenience sampling
B. Simple random sampling without grouping
C. Systematic sampling only
D. Stratified sampling
D. Stratified sampling
An organization must follow workplace safety requirements, employment standards, and applicable human rights legislation. What is this obligation generally called?
A. Market positioning
B. Compliance
C. Product obsolescence
D. Price optimization
B. Compliance
A company changes its brand image to appeal to a different customer segment while keeping its core product largely unchanged. What marketing strategy is this?
A. Market penetration
B. Repositioning
C. Product diversification
D. Market skimming
B. Repositioning
A company advertises a product as having features that it does not actually possess. Which business practice does this represent?
A. Deceptive marketing
B. Ethical positioning
C. Exploratory research
D. Comprehensive quality control
A. Deceptive marketing
A company reports $500,000 in revenue, $300,000 in operating expenses (including its cost of goods sold), and $50,000 in dividends paid to shareholders. What is its profit before taxes, assuming there are no other expenses or income items?
A. $150,000
B. $200,000
C. $250,000
D. $450,000
Answer: B — $200,000.
A company introduces a comprehensive performance review system that evaluates productivity, teamwork, communication, and goal achievement. What does comprehensive mean in this context?
A. Covering a broad range of relevant factors
B. Focusing on a single performance measure
C. Reviewing employees only when problems occur
D. Collecting feedback without evaluating it
A. Covering a broad range of relevant factors
A manager is responsible for ensuring that employees receive required safety training, that employment records are properly maintained, and that applicable employment laws are followed. These responsibilities are examples of what?
A. Optional promotional activities
B. Informal market research
C. Shareholder dividend policies
D. Institutional obligations
Answer: D — Institutional obligations.
A company tests whether changing its advertisement causes an increase in purchases by comparing results between groups exposed to different versions of the advertisement. Which research approach is most appropriate?
A. Qualitative research
B. Exploratory research
C. Causal research
D. Stratified sampling alone
C. Causal research
A startup is deciding whether to enter a market dominated by three major firms. These firms have significant influence over market conditions, and barriers make it difficult for new competitors to enter. Which market structure is most likely present?
A. Perfect competition
B. Oligopoly
C. Monopolistic competition
D. Pure monopoly
B. Oligopoly