BAM 105 challenge examination

BAM 105 challenge examination

1. The price at which the quantity of goods demanded and the quantity of goods supplied are equal is referred to as ________ price.
a. the equilibrium b. consumer equality c. the deal-maker d. the fixed point
2. A(n) ________ occurs when the quantity supplied exceeds the quantity demanded.
a. overage b. shortage c. demand deficit d. surplus
3. “Buyers will purchase more of a product as its price drops and less of a product as its price increases.” The situation being described is referred to as ________.
a. the law of supply b. purchase dissonance c. the law of demand d. buyer’s remorse
4. Which of the following is NOT one of the elements required in private enterprise?
a. freedom of choice b. private property rights c. stability of cash flow d. profits
5. U.S. agriculture is a good example of ________.
a. perfect competition b. monopolistic competition c. a monopoly d. an oligopoly
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BAM 105 Introduction to Business
6. Which of the following best defines the term aggregate output?
a. the total quantity and quality of goods and services that country’s citizens can purchase with the currency used in their economic system b. the pattern of short-term ups and downs in an economy c. the total quantity of goods and services produced by an economic system during a given period d. the conditions of the economic system in which an organization operates
7. ________ refers to ethical or unethical behaviors by employees in the context of their jobs.
a. Social ethics b. Collusion c. Business ethics d. Social responsibility
8. An employee who discovers and tries to put an end to a company’s unethical, illegal or socially irresponsible actions by publicizing them is called ________.
a. an investor b. an outside contractor c. a whistle-blower d. top management
9. The ethical norm of ________ considers if the decision is fair.
a. utility b. justice c. rights d. caring
10. Which of the following groups is NOT considered an organizational stakeholder?
a. investors b. competitors c. employees d. customers
11. According to analysts, who must take chief responsibility for educating employees about ethics?
a. parents b. religious organizations c. employers d. business schools
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BAM 105 Introduction to Business
12. The current whistle-blower law stems from which of the following pieces of legislation?
a. The False Claims Act of 1863 b. The Clayton Act of 1914 c. The Sherman Act of 1890 d. The Webb-Pomerene Act of 1918
13. A locally owned and operated restaurant is typically a(n) ________.
a. small business b. monopoly c. corporation d. oligopoly
14. ________ is the process of seeking business opportunities under conditions of risk.
a. Wholesaling b. Entrepreneurship c. Goal setting d. Leverage
15. A major drawback of sole proprietorships is ________.
a. limited liability b. low startup costs c. unlimited liability d. flexibility
16. Both sole proprietorship and partnerships lack ________.
a. profits b. trust c. clarification d. continuity
17. A(n) ________ is organized to operate like a corporation but is taxed like a partnership.
a. S-corporation b. professional corporation c. public corporation d. private corporation
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BAM 105 Introduction to Business
18. Kent Kauffman and Patrick McCormick have decided to start a landscaping business. One of the first things that they do is sign the ________, which describes the investments and responsibilities of the partners and makes provisions for the allocations of profits and dissolution of the business.
a. articles of incorporation b. corporate charter c. partnership charter d. partnership agreement
19. A company sending some of its own managers overseas to conduct business in a local office is practicing the international organization strategy of ________.
a. branch offices b. joint venture arrangements c. strategic alliances d. direct investment
20. A subsidy is a ________.
a. tax b. global competitor c. product d. payment
21. Under ________, Canada, the United States and Mexico will gradually eliminate tariffs and all other trade barriers.
a. NAFTA b. the Pan-American Agreement c. the EURO Agreement d. CMA
22. Which of the following exists when a country can produce something more cheaply and/or of higher quality than any other country can?
a. national competitive advantage b. balance of payments c. absolute advantage d. comparative advantage
23. Which global arrangement most closely represents a partnership?
a. exporting b. enterprise resource planning (ERP) c. licensing arrangement d. strategic alliance
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BAM 105 Introduction to Business
24. The Oil Producing and Exporting Countries (OPEC) is an example of a ________.
a. subsidy b. foreign direct investment c. cartel d. quota
25. Which of the following refers to a person’s ability to think in the abstract, to diagnose and analyze different situations and to see beyond the present situation?
a. production skills b. human relations skills c. decision-making skills d. conceptual skills
26. The purpose of ________ strategy is to determine what business or businesses a company will own and operate.
a. functional b. corporate c. business d. mission
27. Corporate culture ________.
a. is difficult to change b. can direct employees’ efforts toward goals c. is usually determined by outside forces d. very seldom changes
28. Titles such as plant manager, operations manager and division manager designate which of the following levels of management?
a. first-line managers b. supervisors c. top managers d. middle managers
29. Which of the following managers depend most on conceptual skills?
a. top managers b. first-line managers c. marketing managers d. middle managers
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BAM 105 Introduction to Business
30. CFO and controller are titles associated with ________ managers.
a. information b. human resource c. marketing d. financial
31. When each department targets a specific customer category, departmentalization occurs along ________ lines.
a. functional b. customer c. process d. product
32. Decentralization is typical in companies that ________.
a. are smaller in size b. focus tightly on maintaining standardization c. face stable, predictable environments d. face complex and dynamic environments
33. All of the following are advantages of job specialization EXCEPT specialized jobs _________.
a. can be learned more quickly b. are more interesting c. can be performed more efficiently d. can be filled more quickly
34. Which of the following is NOT one of the four basic forms of organizational structure mentioned in the text?
a. matrix b. divisional c. functional d. production
35. American Wood Products has three divisions. The Lumberjack division is involved in harvesting trees and transporting them to lumber mills. The Milling division transforms cut timber into dimensional lumber for building. The Paper Products division makes paper and cardboard from the remnants of the milling process. This is an example of ________.
a. functional departmentalization b. process departmentalization c. customer departmentalization d. geographic departmentalization
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BAM 105 Introduction to Business
36. According to the text, Martha Stewart Living Omnimedia uses a(n) ________ structure to manage its lifestyle business.
a. operational b. departmental c. divisional d. matrix
37. ________ refers to the sameness of product quality from unit to unit.
a. Performance b. Quality control c. Reliability d. Consistency
38. ________ includes all activities involved in getting quality products into the marketplace.
a. Total quality management b. Quality reliability c. Performance quality d. Quality control
39. _____________ is the evaluation of all work activities, materials flows and paperwork to determine the value that they add for customers.
a. Quality management b. Value-added analysis c. Groupware d. Benchmarking
40. ________ operations produce standardized products for mass consumption.
a. Make-to-order b. Make-to-stock c. Low-contact d. High-contact
41. A ________ is an activity that is performed regularly when conducting business.
a. technique b. process c. request d. function
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BAM 105 Introduction to Business
42. When Ford assembles parts into a Ford Explorer, it creates ________ utility.
a. time b. place c. form d. possession
43. A good person-job fit is a situation in which ________.
a. the employee’s contributions slightly exceed the company’s inducements b. the employee’s contributions and the company’s inducements balance c. the company’s inducements slightly exceed the employee’s contributions d. the person hired for the job is qualified for it
44. When two people work part-time to share a single full-time job, it is referred to as ________.
a. MBO b. flextime c. job redesign d. work sharing
45. ________ reflects a person’s comfort level with relationships.
a. openness b. extraversion c. conscientiousness d. agreeableness
46. According to Herzberg, recognition for a job well done is a ________.
a. scientific factor b. motivation factor c. hygiene factor d. dissatisfier
47. When a company pays rewards for desired behaviors in employees, it is using ________.
a. piecemeal b. equity theory c. positive reinforcement d. punishment
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BAM 105 Introduction to Business
48. In equity theory, the social comparison made by an employee relative to the treatment by the organization to others is similar to ________.
a. the psychological contract b. job sharing c. the Hawthorne effect d. expectancy theory
49. According to Kotter, when creating an agenda, managers focus on ________.
a. organizing and staffing b. controlling and problem solving c. planning and budgeting d. establishing direction
50. Transactional leadership is essentially the same as ________.
a. controlling b. planning c. management d. organizing
51. To be an effective strategic leader, a manager needs to have an understanding of the organization’s ________.
a. strengths and weaknesses b. culture c. history d. All of the above.
52. Managers at Adidas had a “hunch” that their sponsorship deal with the Yankees would be a good one. Their feelings were based on ________.
a. escalation of commitment b. risk propensity c. intuition d. perception
53. The ________ approach to leadership assumes that appropriate leader behavior varies from one situation to another.
a. motivation b. trait c. charismatic d. situational
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BAM 105 Introduction to Business
54. Males tend to be more ________ than females in making decisions.
a. democratic b. charismatic c. autocratic d. free-rein
55. Which of the following types of compensation are paid for time worked?
a. wages b. salary c. benefits d. gain sharing
56. Insurance for compensating workers injured on the job is called ________.
a. a cafeteria plan b. a profit-sharing plan c. disability insurance d. workers’ compensation insurance
57. ________ represent attempts to recruit, hire and develop members of relevant protected classes.
a. Comparable worth programs b. “Glass ceiling” programs c. Benefit plans d. Affirmative action plans
58. A ________ allows wage rates to be renegotiated during the life of a labor contract.
a. wage reopener clause b. bargaining unit c. cost-of-living adjustment d. strike
59. Cindy has identified the credentials, skills and abilities necessary for a database administrator in her organization. She will record this information in a(n) ________.
a. advertising budget b. staffing survey c. employee analysis d. job specification
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BAM 105 Introduction to Business
60. Bill is able to quit his job at the pickle factory at anytime and without notice under the legal concept of ________.
a. mutual consent b. quid pro quo c. employment-at-will d. joint agreement
61. Groups of people with similar wants and needs are ________.
a. price points b. distribution points c. target markets d. target points
62. ________ are the qualities, tangible and intangible, that a company builds into its products.
a. Features b. Safety devices c. Requirements d. Benefits
63. A promotional tactic for brand exposure in which characters in television, film, music, magazines or video games use a real product with a brand visible to viewers is called _________.
a. branding b. loyalty c. brand awareness d. product placement
64. Selling the rights to place a brand name on products such as t-shirts is referred to as ________ brands.
a. international b. national c. licensed d. private
65. The satellite dish and home television shopping provide examples of changes to which of the following external environmental factors that affect marketing?
a. political b. legal c. economic d. technological
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BAM 105 Introduction to Business
66. Providing volunteer participants with new products to try and then asking them to share the information with their friends, family, co-workers and others in their social network is called ________ marketing.
a. buzz b. viral c. share d. placement
67. Once called “middlemen,” they are now known in marketing circles as ________.
a. the marketing network b. distributors c. intermediaries d. circulation managers
68. Companies that price their product low enough to attract a large number of buyers are likely pursuing a goal of ________.
a. market stability b. maximization of profits c. high market share d. price stability
69. The amount added to a product’s cost to meet profit targets is usually expressed as a percentage of ________.
a. total costs b. sales price c. wholesale price d. selling costs
70. The value of agents and brokers lies in their knowledge of markets and their merchandising expertise. Which of the following do they also do?
a. remove open, torn or dirty packages, arrange products neatly and generally keep goods attractively displayed for retail stores. b. provide shelf and display merchandising and advertising layout for retail stores c. show sale items to potential buyers d. All of the above.
71. Which of the following is the first stage in the buyer decision process?
a. Buyers decide on specific products. b. Buyers recognize the need to make a purchase. c. Buyers want to learn more about available products. d. Buyers evaluate products after purchase.
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BAM 105 Introduction to Business
72. Pricing above the market plays on the common assumption that ________.
a. although consumer will not admit it, they like to pay higher prices b. higher price means higher quality c. a desperate business in danger of failing must get the most for each item it sells d. higher prices are much more popular now
73. ________ allow outsiders limited access to a firm’s internal information systems.
a. Firewalls b. Extranets c. Directories d. Intranets
74. A(n) ________ is a system for transmitting and transforming data into information that can be used in decision-making.
a. transformation system b. information system c. computer d. management system
75. The application of electronic technologies for searching, sifting and reorganizing pools of data to uncover useful information is referred to as data ________.
a. warehousing b. mining c. access d. tapping
76. Computers are connected by numerous applications utilizing different communications protocols. Which of these is NOT an Internet protocol?
a. hypertext transfer protocol (HTTP) b. simple message transfer protocol (SMTP) c. document processing protocol (DPP) d. post office protocol (POP)
77. ________ is capable of gathering e-mail addresses, credit card numbers and passwords.
a. Spyware b. Spam c. A firewall d. Groupware
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BAM 105 Introduction to Business
78. Which statement is true regarding firewalls?
a. They keep companies safe from hackers. b. They serve as a “traffic switch,” telling a message where to go. c. They are located within individual monitors. d. They do none of the above.
79. ________ offer accounting services to the public and are licensed at the state level.
a. Controllers b. Certified Public Accountants c. Certified Management Accountants d. Bookkeepers
80. ________ are costs, other than the cost of goods sold, incurred in producing a good or service.
a. Depreciation b. Operating expenses c. Inventory expenses d. Operating incomes
81. A ________ ratio measures a firm’s potential earnings.
a. financial b. solvency c. profitability d. managerial
82. Cash transactions involved in buying and selling goods and services would be classified as cash flows from ________ on the statement of cash flows.
a. investing b. operations c. planning d. budgeting
83. Which of the following is the most commonly used liquidity ratio?
a. return on equity b. quick ratio c. return on sales d. current ratio
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BAM 105 Introduction to Business
84. ________ is the ability of a firm to finance an investment through borrowed funds.
a. Leverage b. Profitability c. Liquidity d. Solvency
85. At ________, deposits are only accepted from members who meet specific qualifications, usually working for a specific employer.
a. mutual savings banks b. commercial banks c. savings and loan associations d. credit unions
86. The ________ is a United Nations agency consisting of about 150 nations that have combined resources to promote stable exchange rates, provide temporary short-term loans and serve other purposes.
a. International Monetary Fund b. European Union c. Federal Reserve d. World Bank
87. Which of the following is NOT a function of money?
a. status symbol b. store of value c. medium of exchange d. measure of worth
88. Which of the following is NOT part of the M-2 money supply?
a. M-1 b. government bonds c. time deposits d. money market mutual funds
89. How many Federal Reserve Banks are there currently in the United States?
a. 15 b. 6 c. 10 d. 12
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BAM 105 Introduction to Business
90. T-notes are treasury securities that mature to face value within __________.
a. 30 years b. a few weeks to a year c. 2 and 10 years d. None of the above.
91. Blink credit card technology is familiar in what form?
a. buying discount bonds that do not pay interest periodically but are sold at a discount and pay out the face value on maturity b. using a computer to make automatic payments c. familiar to any form that uses a magnetic strip or swipe method d. toll roads with electronic passes that allow drivers to avoid waiting in line to pay
92. ________ is often used for economic planning by businesses and government agencies.
a. M-2 b. M-1 c. Currency d. A demand deposit
93. A stock’s ________ can be calculated by dividing total shareholders’ equity by the total number of shares of stock issued.
a. book value b. market value c. par value d. All of the above.
94. New stocks and bonds are sold in the ________ market.
a. primary b. tertiary c. private placement d. secondary
95. A(n) ________ is an organization of individuals coordinated to provide an institutional setting in which stock can be bought and sold.
a. stock exchange b. brokerage c. over-the-counter market d. server
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BAM 105 Introduction to Business
96. ________ investors will opt for no-risk U.S. Treasury Bills or intermediate-term, high-grade corporate bonds that rate low in terms of risk on future investments.
a. Professional b. Aggressive c. Amateur d. Conservative
97. A ________ is a formal pledge (an IOU) obligating the issuer to pay interest periodically and repay the principal at maturity (a preset future date) to the lender.
a. mutual fund b. bond indenture c. commercial bank loan d. corporate bond
98. A company is ripe for raiding when ________.
a. insider trading has taken place b. private owners lose some control of the company when shares are sold to the public c. its stock prices are at an all time high d. its stock price falls so shares can be cheaply bought
99. A ________ is a division of stock that gives stockholders a greater number of shares but does not change each individual’s proportionate share of ownership.
a. stock split b. stock warrant c. stock dividend d. stock yield
100. “I am a chemist with the nation’s largest chemical company. We have secretly developed a cure for three of the world’s most serious epidemics. Before this news breaks out, I’m going to buy as many shares of stock in my company as I can get my hands on. Then I’ll sit back and watch the stock price head for the sky.” The person making this statement is about to engage in ________.
a. insider trading b. blue-sky trading c. selling shares of stock d. open-market operations