MULTIPLE CHOICE
1) According to a supply curve, ________.
a. as prices rise, quantity of a product supplied falls
b. as prices fall, quantity of a product supplied increases
c. as prices rise, consumers will buy in larger quantities
d. as prices rise, the quantity of a product that is supplied also rises
2) If buyers' incomes decrease, the demand curve will shift to the ________ and the price will ________.
a. right; fall
b. left; fall
c. right; rise
d. left; rise
3) The curve that shows the relationship between different prices and the quantity requested at each price is the ________ curve.
a. Equilibrium
b. Supply
c. Buying
d. Demand
4) Consumers can choose from hundreds of different kinds and producers of cheese, each with a slightly different flavor and texture. This type of market structure is known as ________.
a. pure competition
b. monopolistic competition
c. a monopoly
d. an oligopoly
5) RSX Plastic is an Asian company that manufactures commercial plastic products. The company plans to open a production facility in the United States. In order to enter the U.S. market, the company is required to set up a plastic recycling plant that attracts huge fixed costs. This requirement is an example of a(n) ________ for the company.
a. opportunity
b. weakness
c. strength
d. threat
6) During an economic recovery, consumer spending ________ and unemployment ________.
a. increases; increases
b. increases; decreases
c. decreases; increases
d. decreases; decreases
7) Which of the following functions is typically performed by top managers?
a. establishing the structure for the organization
b. supervising lower-level managers
c. translating strategic goals into actions
d. putting the systems and resources in place
8) Technology has ________ ethical issues.
a. expanded the range of
b. reduced the range of
c. made little difference on the range of
d. eliminated most
9) Mica learns that her company is secretly dumping untreated waste into the city sewer systems, and she informs the local EPA office. All of the following describe Mica's ethical situation EXCEPT:
a. She is acting as a whistle-blower.
b. She has a conflict of interest.
c. She is showing integrity.
d. She is showing loyalty.
10) When Target stores donate 5 percent of its federally taxable income to nonprofit groups, the company is highlighting its ________.
a. social audit
b. code of conduct
c. business ethics
d. social responsibility
11) Mike was a foreman at Hi-Way Construction and discovered his company was deliberately using faulty materials for a project. Although Mike was worried about his family's financial security if he lost his job, he went to authorities and informed them of the potentially dangerous construction. Mike's action is called ________.
a. ethical compliance
b. Good intentions
c. whistle-blowing
d. ethical allegations
12) An absolute advantage occurs when a country can maintain ________.
a. a monopoly by outlawing foreign imports
b. a monopoly by levying high taxes on imports
c. a monopoly by being the lowest-cost producer
d. its advantage by producing a product more efficiently
13) A comparative advantage in a good or service means that ________.
a. compared to another country, a nation can produce it more cheaply
b. the nation with the comparative advantage has a monopoly on the good or service
c. a nation must be the absolute best at producing something
d. compared to another good or service, a nation will produce the one that it produces most efficiently
14) A trade deficit occurs when ________.
a. imports exceed exports
b. foreign-aid payments exceed exports
c. imports are sold at low profits
d. there is a net flow of money into a country
15) Andy works as a junior accountant in a firm. He has a nice house, a good insurance plan, a secure job, an affectionate family, and a close circle of friends. However, he is always sidelined at work, and his contributions and initiatives go unrecognized. His suggestions to improve the work environment are also overlooked. He feels that his superiors at his firm do not respect him. He begins to feel unsatisfied and his productivity reduces. Andy's manager uses Maslow's hierarchy, and identifies that Andy is on ________ needs level.
a. social
b. safety
c. esteem
d. self-actualization
16) Which of the following is the first step in the decision for a business to expand globally?
a. Determining which foreign markets to enter
b. Determining how much it will cost to enter a new market
c. Deciding how to organize the overseas operations
d. Applying for special export credits
17) All of the following are social and cultural barriers EXCEPT ________.
a. language
b. gift-giving traditions
c. religious attitudes
d. currency shifts
18) Which of the following would result from devaluation of the U.S. dollar?
a. U.S. goods would sell for less abroad.
b. The cost of foreign vacations for U.S. citizens would be reduced.
c. Foreign firms would have to pay more to purchase U.S. assets.
d. Foreign goods would be less expensive for American consumers.
19) Of the following industries, which is most likely to be owned by a small business owner?
a. nursing homes
b. paper mills
c. home building
d. railroad car makers
20) Carrey works as a bank teller who handles deposits and disbursement. In an attempt to improve her motivation, Carrie's manager asks her to distribute traveler's checks and sell certificates of deposit as well. Though the additional tasks are not more challenging than what Carrey has been doing, they give her more to do. This is an example of ________.
a. job rotation
b. cross-training
c. job enlargement
d. benchmarking
21) Megan is an HR representative at Canales Investment firm. The firm needs to recruit new sales representatives, as the firm plans to expand its business. Megan is asked to review the job responsibilities of the current sales representatives, and makes a list of the key tasks and responsibilities associated with the position. She is also asked to create an optimal employee profile to fill the sales representative position. The task assigned to Megan can be classified under which of the following processes?
a. job analysis
b. job enrichment
c. job enlargement
d. job rotation
22) Which of the following statements best describes how entrepreneurs view failure?
a. They view failure as a learning experience.
b. They don't worry about failing because something better always comes along.
c. They enjoy risk and gambling.
d. They worry that if they fail they'll never get another opportunity
23) Sole proprietorships have all of the following advantages EXCEPT ________.
a. ease of formation
b. unlimited life
c. ease of liquidation
d. profits subject only to a single tax
24) Creative Solutions, a Chicago based advertising agency, allows its team of copywriters to control the pace of work and determination of work assignments. The team is comprised only of copywriters, and team members have the freedom to make their own decisions. The firm has a strong policy against work-from-home. This is an example of which of the following forms of teams?
a. cross-functional team
b. virtual team
c. manger-led team
d. self-managed team
25) Which of the following is an advantage of buying into a franchise system?
a. It comes with an established business system.
b. It comes with a workforce.
c. It already has a customer base with ongoing sales.
d. It allows the owner to have a very high level of freedom.
e. It requires the owner to establish brand recognition from scratch.
TRUE OR FALSE
26) All companies consistently set and meet high ethical standards.
27) Some people engage in activities that are contrary to their personal and moral values because they feel pressured on their jobs.
28) In a partnership, each partner is liable for the business-related debts of the other partners.
FILL-IN-THE-BLANK
29) A ___________________ is exempt from paying income taxes and is not formed for financial gain.
30) A ________________summarizes a proposed business venture, communicates the company's goals, highlights how management intends to achieve those goals, and shows how customers will benefit from the company's goods or services.