PF Intro to Business Combined Exams Study Guide

Question 1

The idea that countries should produce and sell goods that they produce most effectively and efficiently, and buy goods that other countries produce most effectively and efficiently, is known as

Answer 1

A. comparative advantage theory.
B. absolute advantage theory.
C. free trade.
D. efficiency balanced trade.

Question 2

Consider two used-car dealers: Bob’s Better Wheels and Dewey, Cheatum, and Howe Motors. Their prices are basically the same for similar vehicles even as their advertising screams that their products are different. Which kind of competition is going on here?

Answer 2

Monopolistic competition

Question 3

The _______, created in 1995, is assigned the task of mediating international trade disputes.

Answer 3

WTO

Question 4

In global trade, when the difference between money coming into a country from exports and money leaving a country due to imports or money flows from other factors is known as the

Answer 4

balance of payments

Question 5

The EU is an example of a trading bloc, or _______, that has a common external tariff and no internal tariffs, and that coordinates laws to facilitate trade between member countries.

Answer 5

common market

Question 6

Often, the _______ the risk, the _______ the rewards.

Answer 6

higher; higher

Question 7

Typically, the quantity of products people are willing to buy will _______ when prices _______.

Answer 7

decrease; increase

Question 8

In general, a person who owns and operates his or her own business can be thought of as a/an

Answer 8

entrepreneur.

Question 9

Which statement best characterizes Adam Smith’s concept of the “invisible hand”?

Answer 9

The quest for personal gain works for the common good.

Question 10

Uniform product codes are also known as

Answer 10

bar codes.

Question 11

Calendula, Inc. sells its herbal teas at a lower price in foreign countries than those charged to consumers in Calendula’s home nation. In global trade, this is known as

Answer 11

dumping

Question 12

_______ is the study of how to increase resources and create conditions that will make better use of resources.

Answer 12

Resource development

Question 13

Americans are often accused of being ethnocentric. This means that

Answer 13

Americans feel their culture is superior to other cultures.

Question 14

Which of the following about a capitalist system is correct?

Answer 14

It relies on honesty, integrity, and high ethical standards.

Question 15

In a _______, consumers ultimately decide what should be produced.

Answer 15

free market system

Question 16

The _______ denotes a common pattern wherein there’s a period of rapid growth in the economy when supply and demand stimulate each other, alternating with a period of decline accompanied by diminishing demand and supply.

Answer 16

business cycle

Question 17

The number of businesses owned by immigrants, minority groups, and women has _______ in recent years.

Answer 17

increased

Question 18

The trend toward two-family income has led to

Answer 18

flexible work schedules, pregnancy benefits, and elder-care programs.

Question 19

The five factors of production include land, _______, capital, entrepreneurship, and _______.

Answer 19

labor; knowledge

Question 20

To help employees become more effectively productive, companies may form cross-_______ teams that draw on people from different departments to work on a special project.

Answer 20

functional

Question 21

Fair pay, respect for persons, and faithfully kept promises are characteristics of social responsibility to

Answer 21

employees.

Question 22

In any company, _______ must guide and inspire the implementation and enforcement of an ethics code.

Answer 22

managerial leadership

Question 23

Which of the following statements about the Revised Uniform Partnership Act is correct?

Answer 23

It’s a default agreement for establishing such things as how partners will divide profit.

Question 24

Without doubt, the biggest disadvantage to franchising is

Answer 24

the startup cost.

Question 25

In the world of business, a _______ is made up of a group of people or organizations who have unsatisfied wants and needs and the resources to fulfill those wants and needs.

Answer 25

market

Question 26

The employees of Abs "R" Us, which includes 12 fitness parlors in and around the metro area, feel they can improve the performance of the company. They decide to pool their resources to purchase the company. This would be called a _______ buyout.

Answer 26

management

Question 27

Some equivalent of the Golden Rule, which says we should treat others the way we wish to be treated, is found

Answer 27

in all major religious and philosophical systems.

Question 28

As derived from the Markkula Center for Applied Ethics, which of the following should be one of eight guiding principles?

Answer 28

Preventing harm to others and to the world around us

Question 29

It looks a lot like a corporation and can sell stock, but it's taxed like a partnership. This would be a/an

Answer 29

master limited partnership.

Question 30

The major disadvantage of a sole proprietorship is

Answer 30

unlimited liability.

Question 31

A/An _______-based ethics code emphasizes preventing unlawful behavior through controlling behavior and punishing wrongdoers.

Answer 31

compliance

Question 32

Xerox has a program called Social _______ Leave that allows employees to take leave for up to a year, at full pay and benefits, to work for a nonprofit organization.

Answer 32

Service

Question 33

Respecting corporate social responsibility, Ronald McDonald Houses provides an example of corporate

Answer 33

philanthropy.

Question 34

You learn that your friend has cheated on a final exam. If you decide to follow your text's five-step process for making ethical decisions in your personal life, your first

Answer 34

recognizing that an ethical issue exists.

Question 35

A social _______ is a systematic evaluation of a company's progress in implementing socially responsible programs.

Answer 35

audit

Question 36

According to your text, our main sources of ethical standards are religion and

Answer 36

culture.

Question 37

The idea of providing the greatest good for the greatest number would best apply to the _______ approach to establishing ethical standards.

Answer 37

utilitarian

Question 38

You're in search of a type of company organization that provides limited liability, management flexibility, a choice of taxation schemes, and freedom from the hassles of selling stock or holding annual meetings. You would almost certainly choose to organize as a/an

Answer 38

LLC company.

Question 39

True or False about the Sarbanes-Oxley Act? | It offers some protection to whistleblowers.

Answer 39

True

Question 40

According to the _______ approach as a basis for ethical standards, you'll make an ethical decision based on respecting and protecting the moral rights of those who will be affected by your decision.

Answer 40

rights

Question 41

Which of the following statements about Maslow's needs hierarchy is correct? A. Self-actualization is a growth need B. Social needs are considered more C. Esteem needs must be satisfied before one strives to fulfill social needs D. Safety needs are more basic than physiological needs

Answer 41

A

Question 42

Based on a ______ statement, a company sets long-term ______ mutually agreed on by workers and management and, from these, sets specific short-term _____

Answer 42

mission; goal; objectives

Question 43

Under a flextime plan, _____ time is a period of the workday during which employees are expected to be present and busy in the workplace

Answer 43

core

Question 44

When you find your work personally satisfying - what is this known as

Answer 44

intrinsic reward

Question 45

Manager Joe presents problems to his work group and gets suggestions before making a decision. Joe's management style is

Answer 45

participative/democratic

Question 46

In a three-year study of bricklaying, Frank and Lillian Gilbreth developed a principle of motion _____ by which every job could be broken down into elementary motions called therbligs

Answer 46

economy

Question 47

When hired by Imp, Inc, Jake immediately began his job as an inventory clear. He was learning by doing in an approach to employee training called

Answer 47

on-the-job-training

Question 48

In an organization hierarchy, which position is most likely to come under the category of first-line management

Answer 48

factory foreman

Question 49

Among pay systems, the term variable pay usually applies to people who are paid

Answer 49

based on a percentage of their sales

Question 50

In a line-and-staff pattern of organization, which position is most likely to serve a staff function?

Answer 50

A. shift supervisor B. plant manager C. chief financial officer D. director of marketing research

Question 51

While ___ leaders plan activities and timelines and keep the group on task, ___ leaders h help diffuse conflicts and encourage cooperative effort.

Answer 51

task; social

Question 52

The concept of reasonable accommodation is directly associated with

Answer 52

the Americans and Disabilities Act of 1990

Question 53

The researchers conducting the Hawthorne plant studies found that

Answer 53

the workers in the test room saw themselves as a social group

Question 54

According to Herberg's research to his two-factor theory, the highest ranked motivating factor turned out to be

Answer 54

sense of achievement

Question 55

The American Federation of Labor was formed under the leadership of

Answer 55

Samuel Gompers

Question 56

On an organizational chart, span of control refers to the

Answer 56

number of subordinates a manager supervises

Question 57

The idea that people working at a similar jobs requiring the same levels of education, skills or training should receive equal pay is called _____ worth.

Answer 57

comparable

Question 58

True or False about Theory Y - most people like work and find it as natural as play or rest?

Answer 58

True

Question 59

If you carry out a SWOT analysis - you know that the O stands for

Answer 59

opportunities

Question 60

What is SWOT

Answer 60

strengths, weaknesses, opportunities, threats

Question 61

Within an organization, the first step in human resource planning is

Answer 61

preparing an employee inventory

Question 62

Today, government and corporate security officials are most worried about

Answer 62

cyber terrorism

Question 63

A ____ is a private data network that creates secure connections or 'tunnels over regular internet lines

Answer 63

virtual private network (VPN)

Question 64

For a newly developed product - Product X - Lo-Cal, managers calculate the item's production cost plus an acceptable profit margin to set the prices. By contrast, one of their competitors Hi-Cal chooses a target costing approach. If Lo-Cal's item price is based on cost, what is the basis for Hi-Cal's pricing approach?

Answer 64

demand

Question 65

Illustrating examples of ____ competition, Borders Books and Toys R Us are thought of as category killers

Answer 65

selection

Question 66

If your marketing emphasis is on retaining customers over time by offering ever new products and services that exactly meet customer requirements, you're engaged in ____ marketing

Answer 66

relationship

Question 67

The 4Ps of marketing are

Answer 67

product, price, place and promotion

Question 68

Vending is a form of ___ that succeeds by offering convenient locations, like airports, office buildings and service stations

Answer 68

retailing

Question 69

Lorne & Greene has come up with a new product for its line of decorative flower pots, Lorne & Greene managers decide to use a break-even analysis to estimate how many of these new pots must be sold per month to make the company profitable. Using the break-even point (BEP) equation, they come up with a figure that's a sum of rent, electricity, phone, and website hosting costs. This figure is a money amount called ____ in the BEP equation

Answer 69

total fixed cost

Question 70

Wi-Fi stands for

Answer 70

wireless fidelity

Question 71

The process of moving goods and materials from one place to another is called _____ chain management

Answer 71

supply

Question 72

Prospecting and qualifying make up the first step in the ____ process

Answer 72

selling

Question 73

Promotional strategies for B2B are most likely to include

Answer 73

portfolios for salespeople and trade shows

Question 74

Among pricing strategy objectives, loss leaders are generally associated with

Answer 74

building traffic

Question 75

To affect market ___, a company's framework could be geographic, demographic, psychographic or benefit-based

Answer 75

segmentation

Question 76

When a firm is working out its advertising budget, chances are good that the amount allocated to ____ will be the largest

Answer 76

television

Question 77

PDQ company's management decides to place its products in as many retail stores as possible. This is an example of _____ distribution

Answer 77

intensive

Question 78

Among limited-function merchant wholesales, _____ keep title to the goods-displays delivered to retailers

Answer 78

rack jobbers

Question 79

The term that refers to doing any kind of business online is

Answer 79

e-business

Question 80

The XYZ company has come out with a new product - the Bee-Z2. It's so novel that the competition will be nil, at least for a while. Therefore, XYZ management prices the Bee-Z2 high to gather profits while the sun shines. XYZ has adopted a ____ strategy.

Answer 80

skimming price

Question 81

Which project would be best suited to a spreadsheet program

Answer 81

recording sales figures from several different stores and calculating profits

Question 82

The first public offering of a corporation's stock is called a/an _______, and it's handled by the _______ market.

Answer 82

IPO; primary

Question 83

An index fund is a mutual fund that

Answer 83

invests in stocks that follow Moody's or other rating indexes.

Question 84

The major completely electronic securities exchange in the United States is the

Answer 84

NASDAQ.

Question 85

A specialized accounting book in which information is posted into specific categories so managers can find information about one account in the same place is called a

Answer 85

ledger.

Question 86

In referring to the money supply, which of the following can be accessed quickly and easily and includes coins and paper money as well as checks?

Answer 86

M-1

Question 87

The primary function of the Fed's Board of Directors is to

Answer 87

set monetary policy

Question 88

The first step in the accounting cycle is

Answer 88

analyzing and categorizing documents

Question 89

The primary purpose of accounting is to

Answer 89

help managers and other stakeholders make informed decision

Question 90

Carmen Santiago works for a number of businesses as a "consultant." She has helped design accounting systems, provided accounting services, and analyzed the financial strength of her clients' businesses. Carmen is working as a

Answer 90

public accountant

Question 91

The first step in taking control of your finances is

Answer 91

taking an inventory of your assets.

Question 92

Regarding bonds, which statement is most accurate?

Answer 92

Bond holdings are nearly always converted to common stock.

Question 93

When planning for your future, an investment in a college education will, above all,

Answer 93

improve your earning potential

Question 94

When a European coffee maker becomes less expensive to buy in the United States, you could probably say that we're experiencing a _______ dollar.

Answer 94

rising

Question 95

The _______ reports a firm's financial condition on a specific date.

Answer 95

balance sheet

Question 96

With respect to the Federal Reserve, the discount rate is the

Answer 96

interest rate charged for loans to member banks

Question 97

When the Fed increases the reserve requirements - which is true A. Banks have less money to lend. B. Interest rates go down. C. Inflation tends to go up. D. Banks have more money to lend.

Answer 97

A

Question 98

Earnings per share, return on sales, and return on equity are all _______ ratio

Answer 98

profitability

Question 99

The _______ Act legislated new government reporting standards for publicly traded companies.

Answer 99

Sarbanes-Oxley

Question 100

Which of the following statements about the money invested in a traditional IRA account is correct?

Answer 100

It isn't taxed until it's withdrawn.

Question 101

Gross profit (gross margin) is equal to A. cost of goods sold minus operating expenses. B. revenue minus cost of goods sold. C. gross sales minus net sales. D. operating expenses minus taxes.

Answer 101

look it up