(TCO 3) One disadvantage of free trade is _____.
domestic companies can lose their comparative advantage
uninterrupted flow of capital provides for lower interest rates
workers will be given across-the-board pay increases
a company's productivity grows when it has an absolute advantage
domestic workers can be trained for additional jobs


Question 8.8. (TCO 3) What is not a disadvantage of a corporation? (Points : 5)
Initial cost
Extensive paperwork
Ability to raise money for investment
Possible conflict with stakeholders and board of directors


Question 9.9. (TCO 2) There have been reports of cell phone service sales representatives who actually lie to get customers to extend their contracts, or even extend their contracts without the customers' knowledge. Some phone reps intentionally hang up on callers to prevent them from canceling their contracts. Why do these sales reps sometimes resort to overly aggressive tactics? (Points : 5)
Excellently designed incentive programs reward them tax free.
Salaries can be reduced by half in such instances.
Their managers say, "Deceive the customers."
Overly ambitious goals and incentives create an environment in which people can learn and grow.
Overly ambitious goals and incentives create an environment in which unethical actions are tolerated.


Question 10.10. (TCO 3) Entrepreneurship has become the new way of doing business in our world. With economies in decline and organizations downsizing and the lack of opportunities that satisfy, entrepreneurship has been born. Entrepreneurship involves (Points : 5)
bringing in compelling ideas.
helping small businesses achieve more.
providing the platform for launching companies that grow to be quite large.
All of the above


Question 11.11. (TCO 4) Small business owners usually invest little money into new marketing strategies because (Points : 5)
marketing is not important.
consumers are not interested in marketing ads.
marketing is expensive.
many small business owners invest money into other areas of the business.


Question 12.12. (TCO 4) Why do many small business owners invest little money into new marketing strategies? (Points : 5)
Marketing is not important.
Marketing is a waste of time.
Marketing is expensive.
Marketing does not influence consumer spending.


Question 13.13. (TCO 4) The marketing mix refers to (Points : 5)
product, distribution, coupons, and place.
product, demographics, price, and distribution.
product, price, place, and promotion.
price, product, elasticity, and promotion.


Question 14.14. (TCO 5) Managers of employees from different cultural and geographic backgrounds have unique opportunities to reach out to new markets and understand ways to extend their products to new markets. A better understanding of other cultures' customs and concerns helps managers' to increase customer satisfaction and customer loyalty. Part of cultural competency is not only understanding different languages, but also understanding: (Points : 5)
Similar food selections
Looking others in the eye when speaking to them
How much money people make
How tall people are when compared to others
How people wish to be addressed


Question 15.15. (TCO 6) Some of the characteristics of lean systems include which of the following? (Points : 5)
They take twice the human effort.
They have the same defects in the finished product.
They require half of the engineering effort.
They use half the floor space for the same output.
They carry 50% more inventory.


Question 16.16. (TCO 7) Financial accounting includes which one of the following? (Points : 5)
The preparation and distribution of an a periodic report
A summarization of the costs of production
The preparation of departmental budgets
Compliance with the Financial Accounting Standards Board (FASB) guidelines
Reviewing and evaluating the information used to prepare a company's financial statements


Question 17.17. (TCO 7) What are the three interrelated reports required by law for all publically traded companies that act as vital management tools for all companies, big and small? (Points : 5)
Ledger, operating budget, balance sheet
Journal, adjusted trial balance, income statement
Balance sheet, income statement, statement of cash flows
Expense report, balance sheet, capital budget