Quiz # 2 - Bus Administration: Introduction | BUS, Quizzes of Introduction to Business Management

Download Quiz # 2 - Bus Administration: Introduction | BUS and more Quizzes Introduction to Business Management in PDF only on Docsity! Quizzes 1) 1. The markets for detergent, beer, and cigarettes all are dominated sellers who differentiate their products. These markets are best described as: A. monopolistic competition. B. perfect competition. C. an oligopoly. D. a legal monopoly. E. a natural monopoly. Response: C Answer: A Points: 0 / 1 2. Which of the following is NOT a feature of the U.S. "Free Enterprise" system? A. Competition B. Guaranteed income C. Private ownership of property D. Limited role of government E. Profit motive Response: B Answer: B Points: 1 / 1 3. By definition, nations engage in international trade because every country has a(n) _________ advantage in some product or service. A. comparative B. absolute C. relative D. superior E. inferior Response: A Answer: A Points: 1 / 1 4. The use of money for labor and capital in exchange for goods and services is referred to as: A. inflation problem. B. depression cycle. C. recession period. D. circular flow of resources. E. business cycle. Response: E Answer: D Points: 0 / 1 5. In a capitalist economy, the question of what to produce is answered by _________, and the question of how to produce is answered by _________. A. consumers; producers B. consumers; government C. producers; government D. consumers; consumers E. producers; producers Response: A Answer: A Points: 1 / 1 6. The market price of peaches is currently falling. In a free-market economy, the most likely explanation of this price change is that: A. the government has decided to set a lower price because sellers have been price gouging. B. there is a surplus in the market for peaches. C. the supply of money has increased. D. the equilibrium price is higher than the market price. E. there is a shortage of peaches in the market. Response: B Answer: B Points: 1 / 1 7. _______________ is a necessary and extremely important by-product of the U.S. "Free Enterprise" system. A. Monopoly B. Competition C. Communism D. Socialism E. Poverty Response: B Answer: B Points: 1 / 1 8. An economic system in which individuals and businesses make the decisions about what to produce and what to buy, and the market determines how much is sold and at what prices is called a _________ economy. A. product B. producer's C. command D. market E. planned Response: D Answer: D Points: 1 / 1 9. "Monopolistic competition" differs from pure competition because it can be characterized by A. many buyers and few sellers. B. few buyers and many sellers. C. product differentiation. D. a few companies that control the market. E. few buyers and few sellers. Response: D Answer: C Points: 0 / 1 10. Because it controls the world's diamond deposits, the DeBeers Consolidated Mines, Ltd. has a(n) A. comparative advantage. B. advantage based on efficient production. C. absolute advantage. D. trade deficit. E. trade surplus. Response: C Answer: C 2) Answer: C 3) 1. All business forms require A. a formal, written agreement. B. a charter and registartion with the secretary of state. C. filing tax returns with the IRS. D. filing with the SEC. E. all of the above. Response: C Answer: C Points: 1 / 1 2. Which of the following is necessary for starting a sole proprietorship? A. Articles of proprietorship B. A contract C. No specific legal documents required D. A written agreement E. An application to the secretary of state Response: C Answer: C Points: 1 / 1 3. With regard to taxation of partnerships, which of the following statements is correct? A. Partnership income is exempt from taxes. B. The partnership is taxed as a separate entity. C. Each partner is taxed on his / her share of the partnerships profits. D. Profits are taxed twice. E. Taxes are paid on a partnership's profits, after which each partner pays taxes on his or her share of the profits. Response: C Answer: C Points: 1 / 1 4. By law, the minimum capital requirements for beginning a sole proprietorship are A. established by the laws of each state. B. nonexistant generally. C. at least $1,000. D. at least $5,000. E. at least $10,000. Response: B Answer: B Points: 1 / 1 5. Which business forms incur "unlimited personal liability" for all owners and are viewed as an "extension" of the owner(s)? A. C-Corporations and S-Corporations B. Limited Partnerships and Limited Liability Partnerships C. Sole Proprietorships and General Partnerships D. Sole Proprietorships and LLC's E. All Forms of Partnerships (General, Limited, and LLP's) Response: C Answer: C Points: 1 / 1 6. The simplest form of business owned and operated by more than one person is called a A. C-corporation. B. limited liability company. C. general partnership. D. S-corporation. E. sole proprietorship. Response: C Answer: C Points: 1 / 1 7. The partner who can lose only what he or she has invested in a business is the A. employee. B. manager. C. sole proprietor. D. limited partner. E. general partner. Response: D Answer: D Points: 1 / 1 8. A voluntary association of two or more people acting as co-owners of a business is known as a A. sole proprietorship. B. partnership. C. corporation. D. syndicate. E. conglomerate. Response: B Answer: B Points: 1 / 1 9. Which of the following is the most popular form of business based on the number of businesses in the U.S. ? A. Corporation B. General partnership C. Sole proprietorship D. Not-for-profit corporation E. Co-operative Response: C Answer: C Points: 1 / 1 10. Unless specified in the charter, a sole proprietorship has a A. perpetual life. B. life of 50 years. C. life of 17 years, which is renewable. D. legally recognized life, which varies from state to state. E. legal life limited to the life of its owner Response: E Answer: E 4) 1. The largest forms of business ownership in the U.S. as measured by revenue dollars are: A. Sole proprietorships B. Partnerships C. For-Profit Corporations D. Limited Liability Companies E. Co-operatives Response: C Answer: C Points: 1 / 1 2. In all states except the one in which it is incorporated, a business is known as a(n)______________ corporation. A. domestic B. S- C. resident D. foreign E. public Response: D Answer: D Points: 1 / 1 3. A __________ is an "artificial being" created by state law with most of the rights of a person. A. Sole Proprietorship B. General Partnership C. Limited Partnership D. Corporation E. All of the above Response: D Answer: D Points: 1 / 1 4. A publically traded 'open' corporation A. must be chartered in its state of incorporation. B. pays its own income taxes on profits. C. files annual and quarterly reports as required by the SEC. D. may pay dividends to shareholders. E. All of the above. Response: C Answer: E Points: 0 / 1 5. Unless specified in the charter, a corporation has a A. perpetual life. B. life of 50 years. C. life of 17 years, which is renewable. D. legally recognized life, which varies from state to state. E. legal life of one decade. Response: A Answer: A Points: 1 / 1 6. Which of the following business forms are created under state law and require registration with the Secretary of State? A. Corporations B. Limited Liability Companies C. Limited Partnerships D. Limited Liability Partnerships E. All of the above Response: E Answer: E Points: 1 / 1 7. Articles of organization are filed with the Secretary of State to form a(n) A. C-corporation. B. S-corporation. Response: D Answer: D Points: 1 / 1 7. Which of the following is NOT a characteristic of entrepreneurship: A. Creativity and innovation B. Risk taking C. Vision and self confidence D. Optimism and high energy level E. Success and financial certainty Response: E Answer: E Points: 1 / 1 8. Diane Cuvelier and Betty LaPlante, the founders of Doughmakers, Inc., are creative, free-spirited individuals who decided that being a corporate underling was not what they wanted from a career. They had an innovative idea for a product and desired to create their own business based on this idea. All of the following are factors that could have led them to go into business except A. the willingness to find and accept a challenge. B. the low risk and high rewards inherent in entrepreneurship. C. entrepreneurial spirit. D. the independence. E. the desire to determine their own destiny. Response: B Answer: B Points: 1 / 1 9. The fact that insulin and xerography both originated with small companies and individual investors in the U.S. is testimony to the power of small businesses as providers of: A. competition. B. quality products. C. employment. D. capital. E. technical innovation. Response: E Answer: E Points: 1 / 1 10. You have decided to open a full-service fast food restaurant and have engaged in a contract with Steak & Shake. You and the company have drawn up an agreement that allows you to use the company's name and its proven method of doing business, to receive training, and to use its advertising materials. In this agreement, Steak & Shake is the _________ and you are the _________. A. corporation; manager B. partnership; partner C. employer; employee D. franchisor; franchisee E. licensor; licensee Response: D Answer: D Points: 1 / 1 6) 1. Last year, Apple Computer realized that the firm's sales revenues could drop if a competitor introduced a new group of products. Therefore, management for Apple Computer developed a(n) ______________ that outlined alternative courses of action that it could take. A. strategy B. operational plan C. management objective D. contingency plan E. mission Response: D Answer: D Points: 1 / 1 2. Distributing responsibility and authority within the organization is called A. the chain of command. B. the span of management. C. departmentalization. D. delegation. E. the degree of specialization. Response: D Answer: D Points: 1 / 1 3. The process of evaluating and regulating ongoing activities to ensure that goals are achieved is known as A. planning. B. controlling. C. motivating. D. organizing. E. leading. Response: B Answer: B Points: 1 / 1 4. The process of creating an organization's structure is called ______________. A. planning B. directing C. organizing D. controlling E. delegating Response: A Answer: C Points: 0 / 1 5. A manager with many subordinates is said to have a A. wide span of control. B. tall organizational structure. C. narrow span of control. D. managerial hierarchy. E. matrix structure. Response: A Answer: A Points: 1 / 1 6. The basis on which jobs are grouped in order to accomplish organizational goals is called ________________. A. departmentalization B. centralization C. coordination D. delegation E. decentralization Response: A Answer: A Points: 1 / 1 7. When authority is spread to lower-level management, a business is said to be A. progressive. B. centralized. C. upwardly mobile. D. decentralized. E. tall. Response: D Answer: D Points: 1 / 1 8. _______________ is the process of monitoring, comparing, and correcting. A. Planning B. Leading C. Organizing D. Controlling E. Directing Response: D Answer: D Points: 1 / 1 9. Two or more people working together in a predetermined way to achieve common goals is known as a(n) A. chain of command. B. organization. C. functional arrangement. D. structure. E. bureaucracy. Response: C Answer: B Points: 0 / 1 10. Leadership could best be defined as: A. the ability to influence others by having followers. B. coordinating people to achieve the goals of the company. C. characterized by legitimate power. D. synonymous with management. E. the ability to coerce employees into changing their behavior. Response: B Answer: A Points: 0 / 1 Bonus Question (Worth 1 Additional Point) Response: _ 11. In which of the following processes are standards created? A. Directing B. Organizing C. Planning D. Controlling E. Goal Setting Response: C Answer: D 7) 1. Group conflict and dissent: A. should be encouraged as it can lead to more 'optimal' solutions. E. the U.S. government cannot prosecute American companies for unethical or illegal acts on foreign soil. Response: C Answer: C Points: 1 / 1 2. Which of the following is an argument for increased social responsibilities? A. Individual businesses should not be expected to solve society's problems. B. Because business is part of our society, it cannot ignore social issues. C. Management must be concerned with providing a return on owners' investments. D. Social issues are the responsibility of government officials. E. Corporate time and money should be used to maximize profits. Response: B Answer: B Points: 1 / 1 3. Boilermaker Corporation has recently instituted a new corporate ethics code. Jeanette Boiler, president of the company, knows that ethical behavior and choices made in the business are based on: A. her employees standards and values. B. social peer factors and influences. C. the company's code of ethics. D. strict enforcement of legal and company code of ethics. E. all of these affect the ethical behavior in business. Response: E Answer: E Points: 1 / 1 4. Once managers have generated a set of different alternative courses of action, they must evaluate the advantages and disadvantages of each. Which of the following represent the key criteria managers should consider when evaluating alternative courses of action? A. legal, ethical, profitable, practical B. ethical, economically feasible, socially acceptable, practical C. legal, ethical, economically feasible, sensible D. legal, ethical, economically feasible, practical E. individual, social, moral, opportunity Response: D Answer: D Points: 1 / 1 5. Marsh Supermarkets' company philosophy and mission statement includes community involvement in the support of education, the arts, local charities, and local sports teams. This 'community involvement' best fits: A. the right to service under the consumer bill of rights. B. the socio-economic model of social responsibility. C. a high level of business ethical behavior. D. the sign of a 'communal corporate culture'. E. the economic model of the social responsibility pyramid. Response: B Answer: B Points: 1 / 1 6. Title VII of the Civil Rights Act of 1964 addresses the issue of workplace discrimination based on all of the following EXCEPT: A. color. B. religion. C. age. D. sex. E. race. Response: C Answer: C Points: 1 / 1 7. MasterCard sends a customer a memo that discloses the true cost of borrowing with each billing statement. It does this because it realizes that the customer has the right to A. safety. B. be heard. C. obtain credit. D. choose. E. be informed. Response: E Answer: E Points: 1 / 1 8. Petula Petite has been employed by Barb's Boutique as an 'At-Will' Employee. This means that: A. Petula must give Barb's Boutique at least two weeks notice when she quits. B. Barb's Boutique must have good reason for firing Petula. C. Petula's employment is covered by a union contract. D. Barb's Boutique must give Petula at least two weeks notice before she can be fired. E. none of these ansers are correct. Response: E Answer: E Points: 1 / 1 9. A large manufacturing company has found that younger employess tend to have fewer medical problems than workers over 40. Therefore, management decided to hire only workers under 40 to reduce company health insurance costs. This is illegal under the: A. Title VII of the Civil Rights Act of 1964. B. ADEA. C. Equal Pay Act. D. ERISA. E. OSHA. Response: B Answer: B Points: 1 / 1 10. _____________ refers to the standards of moral behavior in the choices that individuals make. A. Legality B. Loyalty C. Integrity D. Ethics E. Codes Response: D Answer: D