Question 1. _____ refer to a resource or capability a company must have before it can start competing in a given market.

Assets

Economies of scale

Barriers to entry

Technological requirements

Fixed costs

Question 2. The _____ function of an organization coordinates the incoming flow of materials and the outgoing flow of finished products.

finance

logistics

human resource

purchasing

sales

Question 3. Which of the following positions would be responsible for establishing the long-term financial goals of the company, investing its funds and raising capital for the business?

Cash manager

Internal auditor

Chief information officer

Forensic accountant

Treasurer

Question 4. When the number of competitors in a market is quite small, a situation known as _____ is created.

monopoly

monopsony

oligopoly

monopolistic competition

pure competition

Question 5. _____ is a steady rise in the average prices of goods and services throughout the economy.

Recession

Depression

Deflation

Inflation

Arbitration

Question 6. ________ taxes, levied on the earnings of individuals and businesses, are the government's largest single source of revenue.

Income

Property

Sales

Excise

Payroll

Question 7. _____ intelligence involves reasoning, problem solving, memorization, and other rational skills.

Cognitive

Emotional

Social

Collaborative

Networking

Question 8. The overall plan might be supported at the next level down by such plans as a research and development plan, a manufacturing plan, and a marketing plan. Such functional plans are called _____ plans.

appraisal

strategic

contingency

tactical

corporate

Question 9. _____ is the management function of keeping a company's activities on track toward previously established goals.

Organizing

Leading

Planning

Motivating

Controlling

Question 10. An embargo is a _____.

quantity restriction on the import of particular goods or services

surcharge imposed on the import of certain products

subsidy offered to products exported from a country

complete ban on the import or export of certain products

form of financial assistance extended to domestic producers

Question 11. The _____ was established to foster international financial cooperation and its primary functions include providing short-term loans to countries that are unable to meet their financial obligations and working to alleviate poverty in developing economies.

World Trade Organization

World Commerce Center

European Union

North American Free Treaty

International Monetary Fund

Question 12. _____ refers to buying goods or services from a supplier in another country.

Franchising

Importing

Licensing

Partnering

Intermediating

Question 13. _____ refers to the degree to which information flows freely within an organization, among managers and employees, and outward to stakeholders.

Philanthropy

Materialism

Whistle-blowing

Transparency

Utilitarianism

Question 14. Which of the following is an example of whistle-blowing?

An employee discloses confidential information about the company to a rival firm for personal gain.

An employee suggests some process changes to his manager that he claims will increase the productivity of the team.

An employee avoids taking ownership of his mistakes by blaming it on his coworkers.

An employee informs the manager that some of his team members are misusing confidential customer details from the company database.

An employee who is unsatisfied with his performance appraisal requests his manager for a re-evaluation of his performance.

Question 15. Which of the following statements is true regarding ethical decision making?

When an employee is unable to make a decision because more than one side of an issue can be supported with valid arguments, it is called an ethical lapse.

The disclosure of information by a company insider that exposes unethical behavior by others within the organization is called an ethical lapse.

Stakeholders' needs often conflict, requiring managers to make tough decisions about resource allocation.

Making objective decisions will lead to ethical lapses.

When the question of what is right and what is wrong is clear, ethical decisions are easy