1. Which event triggered the recent recession that began in 2008?

A Renters were unable to find available housing.

B Consumers were unwilling to purchase electronic equipment.

C Businesses were unable to make loan payments.

D Homeowners were unable to make mortgage payments.

2. Of the approaches to pursuing international markets, developing a ________ involves the greatest commitment and risk.

A foreign subsidiary

B franchise

C strategic alliance

D joint venture

3. Which of the following defines a problem in the decision-making process?

A something that causes irritation

B a discrepancy between the ideal and the practical

C something that calls for attention

D a discrepancy between what exists and what the decision maker desires to exist

4. One advantage of group decision making is that it usually provides ________ than individual decision making.

A more ethical decisions

B faster decisions

C less confusion

D more information

5. A company with a differentiation strategy focuses on making its products or services ________.

A affordable

B similar to its competitors

C unique and special

D familiar

6. Franchising is used widely by ________.

A restaurant chains

B accounting firms

C universities

D electric power companies

7. The argument against social responsibility that states that pursuing goals other than making profits diverts a company away from its primary goal of making profits is known as ________.

A possession of resources

B dilution of purpose

C lack of skills

D too much power

8. Which of the following is a basic definition of ethics?

A principles that define right and wrong

B principles that define standards of decency

C laws that define legal and illegal

D rules that define good and evil

9. Which of the following is a drawback to seeking diverse views in decision making?

A more time consuming

B less time consuming

C less reliable decision

D easier decision-making process

10. A banker opts for short-term gain despite indications that his decision might not pay off in the long run. Which error or bias is the banker guilty of?

A immediate gratification

B representation

C selective perception bias

D overconfidence

11. The primary job of a manager is to ________.

A tackle tasks that are too difficult for nonmanagerial employees

B make decisions that help an organization grow

C coordinate between organization leaders and ordinary employees

D direct and oversee the work of others

12. Companies that are well managed can prosper during difficult economic times by depending on ________.

A a loyal customer base

B government bailouts

C filing for bankruptcy

D raising prices

13. ________ are important because they provide the standards against which all organizational accomplishments are measured

A Goals

B Models

C Rules

D Guidelines

14. Which kind of culture most affects the way managers plan?

A A weak organizational culture gives managers the freedom to make their own decisions.

B A strong organizational culture gives managers the freedom to make their own decisions independent of organizational values.

C A weak organizational culture helps guide the way managers plan.

D A strong organizational culture helps guide the way managers plan.

15. ________ can cause people in a group to fail to express their true opinions.

A Group imbalance

B Ambiguous responsibility

C Pressure to conform

D Years of experience

16. Another term for efficiency is ________.

A making sure things get done

B doing things at the right time

C doing the right things

D doing things right

17. A mission statement includes identification of an organization's ________.

A assets and resources

B purpose and basic philosophy

C strengths and weaknesses

D resources and strengths

18. SWOT analysis identifies and analyzes an organization's ________.

A strategy for competing in the market

B strengths, weaknesses, opportunities, and threats

C long-term goals

D human resource assets

19. A company whose goal is to retain its ideal size and market share is employing which kind of strategy?

A growth

B renewal

C stability

D noncorporate

20. Planning gives organizations direction that primarily helps them ________.

A improve morale of all employees

B improve their image in the business community

C improve morale of middle managers

D improve teamwork and coordinate activities

21. The first step in the six-step strategic management process is to ________.

A analyze the organization's strengths and weaknesses

B identify the organization's mission

C analyze the opportunities the organization has

D identify strategies to reach the organization's goals

22. A manager is determining what kind of new computers she should purchase for her department. She has made a list of five different computer models for consideration. Which stage of the decision-making process is this?

A selection of an alternative

B identification of decision criteria

C analysis of alternatives

D development of alternatives

23. Managers hire contingent workers because they are ________ than permanent workers.

A less costly

B more productive

C more flexible

D more loyal

24. Competitive advantages for a high-prestige, premium coffee franchise like Starbucks are likely to include all of the following EXCEPT ________.

A well-trained employees

B lowest prices

C high quality

D pleasant venues

25. Which of the following is a key difference between managerial and nonmanagerial employees?

A Nonmanagerial employees have less formal education.

B Managerial employees receive higher pay compensation.

C Nonmanagerial employees do not oversee the work of others.

D Managerial employees work longer hours