Business Management + Admin
When Arlo travels out of the country, he picks up some souvenirs. When he tries to bring them back home with him, he discovers that he has to pay a tax on them. Arlo must pay the
A. travel tax.
B. souvenir tax.
C. customs duty.
D. travel duty.
C
Customs duty. Goods that are brought across international borders are often subject to a tax called a customs duty. This is meant to control the flow of goods. It is not called a travel tax, a travel duty, or a souvenir tax.
If a company is managing its information effectively, the data should be accurate and
A. anonymous.
B. relevant.
C. positive.
D. encrypted.
B
Relevant. To make business decisions, companies access, store, maintain, and evaluate a variety of information (e.g., facts, data). To make appropriate decisions, companies need to make sure the information they are basing their decisions upon is accurate and relevant. For example, information from an employee's performance review will not help the business determine how to price its products. Information from an anonymous source may be incorrect and could lead to poor decisions and undesirable outcomes. Encryption is the process of transforming information into a secret code so only the recipient can read it. Not all information needs to be encrypted. While positive information about the company is nice, it is more important that the information is honest, accurate, and relevant.
Making a decision when facing an ethical dilemma will most likely make you
A. unhappy.
B. less content.
C. anxious.
D. more satisfied.
D
More satisfied. Making a decision when facing an ethical dilemma—even if it’s tough—will make you happier, more satisfied, and less conflicted. Even if your ultimate decision when facing an ethical dilemma is to do nothing, it’s still important to make the decision instead of allowing the ethical dilemma to control your life. Making a decision is not likely to make you feel unhappy, anxious, or less content.
A manager watches an employee perform a work activity and writes notes that describe the process. This is an example of capturing knowledge by
A. rationalization.
B. interrogation.
C. observation.
D. imitation.
C
Observation. Observation involves obtaining information by watching others perform a task or activity. A business can obtain knowledge about work-task processes by observing employees performing their jobs. The manager is not rationalizing or imitating the employee's behavior. There is not sufficient information provided to determine if the manager is asking questions or interrogating the employee.
Determine the type of project-closing report that would most likely contain the following statement: "In review, group members agreed that additional training before the project began and ongoing technical support during the course of the project would have increased overall efficiency."
A. Executive summary
B. Lessons learned document
C. Stakeholder's expense audit
D. Termination checklist
B
Lessons learned document. Developed during the closing phase of the project, the lessons learned document summarizes the project's successes and failures. The document also includes suggestions for improvement for similar projects in the future, such as the need for additional training and ongoing technical support. An executive summary is an overview of a report or plan. A termination checklist is a list of tasks that need to be done during the closing phase of a project. An expense audit involves reviewing and evaluating various project expenses.
When an individual invests in a mutual fund, they are
A. taking on a high level of investing risk.
B. pooling their money with other investors.
C. selecting their own investment options.
D. purchasing corporate and government bonds.
B
Pooling their money with other investors. A mutual fund is a collection of stocks and bonds. When you buy a mutual fund, you are pooling your money with other investors, allowing you to pay for a professional manager to select investments for the group. Therefore, when an individual invests in a mutual fund, they are not selecting their own investment options, nor are they solely purchasing corporate and government bonds. Investing in a mutual fund is a relatively low-risk way to invest because a professional financial manager selects appropriate securities for you.
Coral and Aaliyah are finishing a school project together. When Coral asks Aaliyah what she thinks about her half of the project, Aaliyah tells her, "That looks good, but let me show you what else you could have done." Aaliyah's comments are an example of
A. constructive criticism.
B. internal feedback.
C. negative feedback.
D. self-control.
A
Constructive criticism. Constructive criticism is evaluative information designed to help someone improve. Negative feedback is feedback involving criticism, a negative judgment about you or your behavior; it tends to make you want to change or modify your words or actions. Internal feedback is feedback that comes from within yourself. Self-control is the restraint of your feelings, words, and actions.
Which of the following is a characteristic of an income statement:
A. Shows the owner's financial position
B. Summarizes expenses and revenue from sales
C. Is the same as a balance sheet
D. Lists assets and liabilities
B
Summarizes expenses and revenue from sales. An income statement is a business's financial picture that lists all revenue and expenses for a certain time period. An income statement is not the same as a balance sheet. Characteristics of a balance sheet include listing assets and liabilities and showing the owner's financial position.
At the beginning of a research report, the writer should include the
A. appendices.
B. purpose of the study.
C. bibliography.
D. solution to the problem.
B
Purpose of the study. A research report is a written document that summarizes an investigation related to a particular issue or problem. A research report contains many elements. The purpose of the study states why the topic at hand is being investigated. The purpose of the study should be described in the report's introduction, which is at the beginning of the report. Stating the purpose of the study is important because it lets readers know what they are reading and why. Proposed solutions to a problem (recommendations) are addressed near the end of the document after the research has been presented. The appendices are segments that include supporting information, and are added to the end of a document. The bibliography contains the list of resources from which the writer obtained information for the report. The bibliography is generally placed at the end of the research report—after the recommendations section and before the appendices.
What occurs during the first stage of the change management life cycle?
A. Organizations identify and communicate the need for change to employees.
B. Organizations carry out a strategic plan for implementing desired change.
C. Organizations agree on a strategic plan for implementing the desired change.
D. Organizations engage in dialogue to determine how to best implement change.
A
Organizations identify and communicate the need for change to employees. The first stage of the change management life cycle involves realizing the need for change and explaining this to employees in an understandable manner. Engaging in dialogue to determine how to best implement change, agreeing on a strategic plan for implementing the desired change, and carrying out a strategic plan for implementing desired change are all actions taken in subsequent stages of the change management life cycle.
Wesley is thinking about getting a new phone, so he logged on to a well-known website to read others' opinions and experiences with different types of phones that are currently on the market. Wesley is reading online product reviews to
A. make an informed buying decision.
B. reaffirm his recent purchasing selection.
C. compare the prices of phones from various online stores.
D. determine which company has the best phone plan.
A
Make an informed buying decision. The internet has revolutionized the ways in which business is conducted. The internet provides customers with the ability to obtain product information in a variety of ways—from business websites, blogs, newsfeeds, and consumer information websites. In the example, Wesley is doing research to find out how other users like different phones before he makes a decision about the one that he wants to buy. Wesley will likely visit various phone retailers to get product specifications and pricing before making his decision. Although phone plans are often a factor when making a phone purchasing decision, there is not enough information provided to determine whether phone plans will affect Wesley's buying decision. Wesley hasn't purchased his phone yet, so he can't reaffirm his recent purchase.
Businesses often measure the efficiency of current production methods to find out if
A. loading docks are organized.
B. improvements are needed.
C. work areas are kept clean.
D. salaries should be adjusted.
B
Improvements are needed. Productivity cannot be improved unless it has been measured. Businesses often measure the efficiency of current production methods to determine whether improvements are needed and how to make those improvements. Businesses do not measure productivity to find out if salaries should be adjusted. Making sure work areas are clean and loading docks are organized could be improvements that are needed.
Delia is a third-party logistics professional who has been contracted to revamp the product return system for a local distributor. To achieve this, Delia should develop a(n) __________ plan for the distributor.
A. market segmentation
B. reverse logistics
C. data mining
D. order fulfilment
B
Reverse logistics. Reverse logistics refers to the backward movement of products through the supply chain, from customers to distributors, manufacturers, or suppliers. By developing a reverse logistics plan, Delia can help her client create a better system of product returns. Order fulfillment is the complete act of receiving, processing, and shipping a customer’s order, and is not directly connected to returning products. Market segmentation is the division of a total market into smaller, more specific groups. Data mining is the process of searching, collecting, and analyzing large amounts of data to extract actionable information.
Sonya wants to show her project team members the logical relationships among activities in their project. What format should she use to present this information?
A. Milestone and deliverable chart
B. Project schedule network diagram
C. Project calendar
D. Bar chart
B
Project schedule network diagram. A project schedule network diagram shows activities and relationships. It is the best method for demonstrating the relationships among activities in a project. A bar chart is a depiction of activities, dates, and durations using vertical and horizontal axes. It does not necessarily show the logical relationships among the activities. A milestone chart is similar to a bar chart, but only shows the start or completion of major deliverables. Again, it does not show the relationships among activities. A project calendar is a tool that identifies working days and shifts that are available for scheduled activities. It is not the best option for showing the relationships among project activities.
Which of the following is an example of a reorder:
A. Mr. and Mrs. Travis ordered a dining table and chairs in a wood finish that the furniture store doesn't normally carry.
B. The Powell Company did not order enough paper towels for the month, so it ordered an additional four cases.
C. Sims Steakhouse received six out of eight cases of glassware on Monday because the vendor ran out of stock.
D. Henry's Hardware Store ordered 35 model-N1 hammers and 2 cases of ¼” stainless steel bolts from Franklin Tool Manufacturers.
B
The Powell Company did not order enough paper towels for the month, so it ordered an additional four cases. A reorder involves ordering items that the company has previously ordered. The Powell Company placed a reorder because it submitted a second order for the same product (paper towels) to its vendor. A backorder occurs when a vendor ships part of an order on time and the rest of the order later when the stock is available. Mr. and Mrs. Travis placed a special order, which is a request for a custom item that a vendor does not normally carry in stock. Henry's Hardware Store placed a regular order, which involves providing the vendor with the specifications of items that the business wants to order.
Before entering a negotiation, which of the following questions should a person ask themselves when analyzing their opponent:
A. What are my needs and wants?
B. Do we share any common ground?
C. What can I learn from the other person's body language?
D. When should I focus on the other person's position?
B
Do we share any common ground? As you prepare for a negotiation, you should analyze the other side by asking and answering several questions. You should determine the other person's position and interests, and then ask yourself if you share any common ground. While you should analyze your opponent's body language, this is done when the negotiation is actually underway, not beforehand. Successful negotiations focus on interests rather than positions. You should consider your needs and wants during the first step of the preparation process, which involves determining your minimal and optimal expectations
Emilio is presenting at a sales meeting and wants to show how much of the year's total revenue came from each region. What kind of graphic aid should Emilio use?
A. Flowchart
B. Bar graph
C. Line graph
D. Pie chart
D
Pie chart. A pie chart is a type of visual aid that demonstrates the proportion of parts to the whole. In this case, each segment of the pie chart would represent one of the sales regions and show how much of the total revenue came from each one. A bar graph is better suited for showing changes in magnitude over time. A line graph shows changes in direction over time. A flowchart demonstrates a schematic process.
A nonprofit organization made plans to build a new office building using funds from grants and loans. However, when an issue with the grant money arose, the organization was forced to rethink its carefully laid plans and go in a different direction. What characteristic of effective plans does this example demonstrate?
A. Feasibility
B. Flexibility
C. Simplicity
D. Goal-alignment
B
Flexibility. Effective plans are flexible so that changes can be made relatively easily and quickly. The business world is constantly changing—plans must be able to be adjusted accordingly. Effective plans are also relatively straightforward or simple, so that all team members are able to understand them. Finally, plans should be realistic and aligned with the organization's ultimate goals. This example demonstrates the importance of flexibility in planning, not simplicity, feasibility, or goal-alignment.
A company that makes power tools expects the price of steel to rise steadily over the next several months. What should the company do?
A. Pay attention to cyclical demand.
B. Avoid inventory carrying costs.
C. Buy steel in bulk and hold raw materials.
D. Purchase steel from a foreign vendor.
C
Buy steel in bulk and hold raw materials. One of the benefits of holding raw materials inventory is to get the best price for raw materials. If a rise in prices is expected, a company should purchase the raw materials in bulk to save money. While avoiding inventory carrying costs is a good strategy, it might not be worth it if the price of the raw materials is continuing to rise. Cyclical demand is not necessarily related to this issue. Finally, purchasing steel from a foreign vendor will not necessarily help with the rising price of steel.
Supply chain network design improves service and reduces cost by aligning purchasing, production, warehousing, inventory, and
A. marketing.
B. transportation.
C. promotion.
D. the sales force.
B
Transportation. Supply chain network design aligns purchasing, production, warehousing, inventory, and transportation. Supply chain network design does not incorporate marketing, promotion, or the sales force.
One of the roles of ethics in information management involves an individual's right to
A. equity.
B. safety.
C. privacy.
D. dignity.
C
Privacy. Information management is the process of accessing, processing, maintaining, evaluating, and disseminating knowledge, facts, or data for the purpose of assisting business decision-making. Some of this information may be personal data that businesses obtain about their employees, customers, suppliers, etc. Individuals have the right to expect that the privacy of their personal information will be maintained. Businesses that are ethical do everything they can to protect private information and make sure it is not misused or made available to unauthorized users. Safety is freedom from danger or risk. Dignity is a high degree of calmness and self-possession. Equity is fairness.
Which type of accountant creates budgets and provides internal information to organizations?
A. Public
B. Mediation
C. Managerial
D. Financial
C
Managerial. Managerial accountants provide internal information to organizations. Managerial accountants contribute to an organization's day-to-day operations, financial decision-making, and business planning. They also forecast sales, create budgets, and allocate costs. Public accountants prepare, analyze, and verify financial data for a variety of clients, including the government, corporations, and individuals. Financial accountants provide information to those outside of the organization. Mediation accountant is a fictitious term.
Six Sigma, SQC, and ISO 9000 are all examples of
A. workplace behavior policies.
B. decision support systems.
C. performance appraisal methods.
D. quality management frameworks.
D
Quality management frameworks. To improve quality, managers can use quality management frameworks such as Six Sigma, statistical quality control (SQC), and ISO 9000. Each framework has its own processes and best practices to help companies improve quality. Decision support systems help support the decision-making process through location and presentation of information. Performance appraisal is an evaluation of employee achievement and work. Workplace behavior refers to how people conduct themselves when in places or situations related to their employment. Six Sigma, SQC, and ISO 9000 are not related to decision support systems, performance appraisal, or workplace behavior.
In the business world, quality often refers to excellence, value, and
A. quantity.
B. empathy.
C. conformance.
D. technology.
C
Conformance. In the business world, quality often refers to excellence, value, satisfaction, and conformance. Conforming to predetermined specifications is an aspect of quality that has plenty of examples in the manufacturing industry. Let’s say a manufacturer is producing glass bottles. Each bottle should be a certain size and shape and should have no rough edges. If a bottle does not meet these specifications, it isn’t a quality product. Businesses strive to keep these variations or defects to a minimum, keeping the overall quality of their production output as high as possible. Quality does not typically refer to empathy, technology, or quantity.
Before knowledge can be reused or shared, it must be
A. embedded.
B. recognized.
C. manipulated.
D. analyzed.
B
Recognized. The first phase of the knowledge management process is discovery and detection, during which knowledge is recognized and categorized. Knowledge must be recognized before it can be embedded, analyzed, or manipulated.