Final Exam

1) John writes a memo to his employees. Putting his thoughts onto paper is an example of

A. communicating

B. messaging

C. encoding

D. cryptography2) Chantel received an invitation to a web meeting that will take place at 3:00 p.m. She accepted the invitation. This is an example of

A. formal channels of communication

B. spontaneous communication

C. feedback as a function of communication

D. informal channels of communication3) You are doing research on political issues and find that you are on a conservative leaning site. What type of source credibility issue is this?

A. Credentials

B. Impartiality

C. Currency

D. Style4) When reviewing an educational math website, you find the author’s background is in English. What type of source credibility issue is this?

A. Credentials

B. Impartiality

C. Currency

D. Style5) A famous ice cream manufacturer sent workers to a nearby grocery store to offer shoppers a sample of its new flavor. The workers provided samples to 300 shoppers and noted that 80% of the sample population stated they liked the flavor. Based on this scenario, which of the following is an example of an inference?

A. Workers provided samples to 300 shoppers.

B. 20 percent of the sample population did not like the new flavor or were indifferent.

C. The ice cream manufacturer began producing the new ice cream flavor and offered it in stores.

D. The workers were offering samples to see if the general public liked the new flavor.

Workers providing samples to 300 shoppers is another form of surveying a population to determine a finding. The statement “20% of the sample population did not like the new flavor or were indifferent” is considered an implication. A person can imply obvious conclusions that are not stated. The statement “The workers were offering samples to see if the general public liked the new flavor” is an example of an intention. Intention suggests how the study will be developed and conducted.6) Persuading or convincing others to accept your argument means the reasoning must be logical. Which of the following is an example of logical flaws or fallacies?

A. Opposing views are considered

B. Hasty Generalization

C. Argument presents alternative explanations

D. Reasoning from specific evidence7) What is the best way for the CEO to deal with managers in key positions who continue to resist a major change?

A. Minimize their interactions with fellow employees and work around them

B. Replace them with people who will support the change

C. Give them space and hope they will come to see why the change was necessary

D. Keep increasing the pressure on them to support the changeMinimizing their interactions with fellow employees and segregating them from the work environment can prove to be costly if the employee realizes this and counteracts your decision with legal action or sabotage. Giving an employee space and more time to come around on a change typically will not work and the resistance to the change begins to grow as the dissatisfied employee converses with fellow coworkers. Increasing the pressure for the employee to support the change will typically drive the worker further from acceptance, which can further derail the implementation of the major change.

8) Finding a win-win solution that allows parties who are involved to have their goals achieved is an example of

A. accommodation

B. collaboration

C. team building

D. compromising

Accommodation would assume that one party would have to surrender some key component of their objectives or goals for the other party to succeed. Team building consists of activities designed to improve team performance within an organization. Compromising would assume that each party involved in seeking a solution would have to surrender a component of their objectives or goals for both parties to succeed.9) What is emphasized more in ethical leadership theories than in transformational leadership?

A. Leader values

B. Leader behaviors

C. Leader skills

D. Leader traits10) Ethical behavior and integrity for a leader is most likely to result in

A. higher unit performance

B. higher performance ratings for the leader by bosses

C. higher subordinate satisfaction and trust

D. less stress for the leader

11) A common characteristic of most entrepreneurs is that they

A. accept the risks involved in starting and managing a business

B. have a high level of scientific and technical expertise

C. possess a great deal of personal wealth

D. have experience in running large, complex organizations12) In order to make an intelligent investment decision, entrepreneurs

A. higher unit performanceshould

A. limit their options to those business investments that are backed by the U.S. government

B. invest in businesses that have generated a stable rate of profit for at least the past ten years

C. invest only in business opportunities where it is possible to take an active role in management

D. compare the risks of potential investments to their expected profits and find the right balance between profit and risk

13) The customers, employees, stockholders, suppliers, creditors, and others who stand to gain or lose by the policies and activities of a business represent the firm's

A. market makers

B. economic environment

C. stakeholders

D. social mentors14) When a firm makes use of the SWOT analysis, one of its objectives is to

A. identify the best employees to fill each position within the organization

B. set specific short-term performance standards for each department

C. evaluate the desirability of issuing stocks or bonds in the current financial climate

D. identify the things it does well as an organization and the things it needs to improve

15) The process of rating an organization's practices, processes, and products against the best of the world is known as

A. webworking

B. outsourcing


C. benchmarking

D. core competencies16) Companies benefit today by inter-firm cooperation. One of the ways they cooperate is through networking. Another way is by seeking technological knowledge and learning new processes from other firms that usually fall outside of their respective industries. We call this

A. competency capturing

B. technology swapping

C. benchmarking

D. broadening the knowledge base

Technology swapping is defined as a process of exchanging one technological item for another. Broadening the knowledge base refers to cross-training employees within an organization to strengthen the bottom line and customer service.

17) An important difference between accounting and other business functions, such as marketing and management, is that

A. accounting functions must be performed by an "outsider" (rather than by an employee of the business) in order to avoid conflicts of interest

B. accounting offers us insight into whether the business is financially sound

C. accounting involves mainly clerical activities and thus requires very little analysis

D. accounting deals exclusively with numbers18) Although accounting has several specific uses, the overall purpose of accounting can be summarized as

A. to provide financial information that is useful to decision makers

B. to meet the legal requirements of the Financial Accounting Standards Board (FASB)


C. to allow the government to track business activity levels

D. to compute the profit or loss and declared dividend of a business firm

19) An important advantage that knowledge technology has over older versions of business technology is that it

A. is much cheaper to incorporate into most business operations

B. delivers timely information directly to the people who need it

C. allows businesses to locate anywhere and still reach their customers

D. eliminates the need for business to store information electronically

20) First Engineering, a large U.S. based mechanical engineering firm, is considering entering the global market. Upon careful analysis of the global market, they will find that global trade

A. opportunities are diminishing

B. is dominated by emerging, developing countries

C. is likely to be severely restricted in the future by nontariff trade barriers

D. is big business today and is expected to be more important in the future

21) The process of setting up individual functional units of the business to do specialized tasks is called

A. departmentalization

B. division of labor

C. job specialization

D. delegation of authority22) The proven success of job specialization lies in the fact that

A. it leads to groupthink

B. it avoids the pitfalls of division of labor, where workers become

A. higher unit performanceremoved from thinking conceptually about the business

C. it is a detractor to others who are thinking about entering your industry because it successfully creates barriers to entry

D. it adds efficiency to the business's operation by identifying tasks that some do better than others

23) Economics is the study of how a society

A. invests wisely in the stock market

B. employs resources to produce goods and services and distribute them among competing groups and individuals

C. employs statistical techniques to make predictions about the evolution of society over the long run

D. governs itself for the good of its citizens24) How is it that people working in their own self-interest produce goods, services, and wealth for others?

A. By taking advantage of a vast supply of labor, people working in their own self-interest could hire others at very low wages.

B. In order to earn money and produce goods that improve lives, self-directed gain would provide jobs, and subsequently wages for others.

C. The government pays entrepreneurs in the United States to produce goods, services, and wealth for others.

D. Entrepreneurs tend to include themselves in a group of people who need charitable support. A portion of the entrepreneur's profit (as required by law) goes to the charity of one's choice to support the less fortunate.

By taking advantage of a vast supply of labor, people working in their own self-interest could hire others at very low wages and would not be creating wealth for others. The government does not pay entrepreneurs in the United States to produce goods, services, and wealth for others. In fact, many entrepreneurs must raise funds to start a venture and are taxed by the government as a commercial organization. Entrepreneurs are not required to give portions of their earnings to a charity of one's choice to support the less fortunate.

25) The ultimate resource of a firm is its


A. business plan

. marketing mix B

C. capital budget

D. employeesAlthough a business plan is an essential component of a successful firm, it is not considered a firm’s most important asset. A firm’s marketing mix is information that is collected and is not a significant component that is not irreplaceable. A firm’s capital budget will adjust throughout the firm’s lifecycle and is not considered an indispensible resource to a firm.

26) Today, human resource management has become so important that in many firms it has become

A. a function performed by managers in all areas of the organization

B. the main responsibility of the firm's legal staff

C. a function handled only by specialists in the human resource department

D. function handled only by the firm's top management

27) Which of the following is included in performing a business analysis?

A. Hiring new employees

B. Entering global markets

C. Conducting a SWOT analysis

D. Networking28) When the competition is intense and the environment is changing rapidly, it is especially important to

A. maintain a high level of external monitoring

B. have detailed plans and operating procedures

C. increase the power of the chief executive


D. strengthen the organization culture29) Which of the following would be a concern addressed in a strategic plan?

A. Which specific jobs should be assigned to each employee?

B. How much output should be produced this week in a given production facility?

C. Which computer software package should the firm’s human resources office use to manage the payroll?

D. Should the firm make a long-term commitment to expand into new markets?

The assignment of specific jobs to employees is a tactical operation that would not be included in a broader, more holistic plan that is typically characteristic of a strategic plan. The amount of output production at a given facility is an operational concern to the firm that would be part of a tactical plan or part of an operational evaluation plan that the firm maintains. Selecting a computer software package for the firm’s HR department to manage payroll is a decision that is not incorporated into a firm’s strategic plan, which typically includes the firm’s or department’s overall direction with specific objectives and goals to achieve.

30) Tactical planning is concerned with

A. determining the best way to cope with an emergency situation

B. devising temporary courses of action to be used if the primary plans do not achieve the desired results

C. developing detailed strategies about what is to be done, who is to do it, and how it is to be done

D. setting long run goals that will govern the general course of the organization for years

Determining the best way to cope with an emergency situation is considered emergency planning. Devising temporary courses of action to be used if the primary plans do not achieve the desired results is referred to as contingency planning. Setting long-term goals that govern the general course of the organization for years is referred to as strategic planning.

1. A business should be managed ethically to do the right thing for all stakeholdersA. TrueB. False

2. "Do what I say, not what I do" can be an effective code of conduct to instill corporate valuesA. TrueB. False

3. A business should be managed ethically to reduce employee turnoverA. TrueB. False

4. Accountants do most of the work involved in recording financial events and transactions, but the actual classifying and interpreting of this data is left to financial managersA. TrueB. False

5. Corporate management decisions are influenced by the desire to keep stockholders happyA. TrueB. False

6. Investors trading onlineA. do their own research and make their own investment decisionsB. buy and sell securities without using a brokerage firmC. generally avoided the market downturn of the early 2000sD. receive more advice than offered by traditional stockbrokers

7. The purpose of the SEC's circuit breakers rule is toA. prevent market disruption caused by a communication malfunctionB. prevent individuals from profiting from information not available to the generalC. halt trading for a short time following a dramatic drop in stock pricesD. allow floor traders to specialize in trading the securities of specific industries

8. As a salesperson in the B2B market, Patty regularly calls on clients to stay informed of their needs or problems. Her objective is to develop solutions to meet their needs and resolve their problems. The Internet allows Patty to track products in the supply chain and to learn about pricing and promotions that would be of interest to her clients. When Patty works with her existing clients there is no need for the __________ step of the B2B selling processA. answer objectionsB. approachC. close saleD. prospect and qualify

9. Integrated marketing communication combines all the promotional tools into one comprehensive, unified promotional strategyA. TrueB. False

10. Bonnie faces the challenge of developing the promotion mix for a new business. Given the uniqueness of the new products and a very limited budget, Bonnie confronts a creditability problem. She realizes that the promotional messages of an unknown firm may be met with skepticism. Bonnie should considerA. emphasizing personal selling rather than public relationsB. changing jobs because this situation is hopelessC. the extensive use of persuasive advertisingD. publicity to help create a positive image for her firm and its products

11. Creating a unified positive image of a company in the public’s mind is the end result of effective integrated marketing communicationA. TrueB. False

12. Amanda, a regional manager for Flairol Cosmetics, has just seen a report showing that sales in her region are lower than anticipated so far this quarter. Her next task is to determine the reason for the disappointing results and find a way to get sales up to their desired level. Amanda's efforts are part of the ____________ function of managementA. organizingB. planning

C. directingD. controlling

13. A small business management course at a community college may offer entrepreneurs an opportunity toA. meet with experienced entrepreneurs and learn from their adviceB. listen to a qualified instructor solve all of the problems of small business ownersC. try out ideas on a computer simulation before risking real time and money

14. Which of the following techniques would a team of workers be most likely to use if they wanted to evaluate several possible solutions to a specific problem their company needs to solve?A. PMIB. MBOC. regression analysisD. PERT

15. Today’s public relations departmentsA. focus more on advertising and less on publicityB. are more actively listening to customers and helping to solve their problemsC. are downsizing as firms emphasize personal selling to promote their productsD. avoid relationships with the media and government officials

16. Sharon needed to solve a problem quickly, so she called together all the workers in her department and asked them to list as many possible solutions as they could come up with in a short period of time. During the process she encouraged responses and avoided censoring what her workers said. Sharon seems to be using a problem solving technique known as brainstorming.A. TrueB. False

17. Maureen's supervisor was so impressed by her work that he named her the employee of the month. This praise from her supervisor is an example of a(n) _________ rewardA. secondary

B. extraneousC. intrinsicD. extrinsic

18. A recent customer survey has convinced top managers at Akwip Corporation that their firm is doing a poor job of responding quickly to the needs of customers. The managers are very concerned about this problem. Empowerment might be an approach that would help Akwip improve its responsivenessA. TrueB. False

19. ______________ was the dominant strategy for improving worker productivity during the early 1900s.A. Social DarwinismB. Job enrichmentC. Scientific management D. Management by objective

20. So far, among all minority groups, only Asian-Americans have realized the need for networkingA. TrueB. False

21. One of the difficulties facing today’s managers is to:A. earn the trust of their employeesB. cope with the sudden and unexpected slowdown in the pace of innovation and changeC. find ways to encourage conformity instead of diversityD. deal with a workforce that is less educated and less self-directed than in the past

22. Which of the following statements comparing today’s workers with those from earlier eras is most accurate? Compared to earlier workers, today’s employees areA. more willing to leave the firm to seek better opportunitiesB. more likely to need direct guidance and direction from their managersC. less educated and less self-directedD. more loyal to the firm

23. To effectively run a business, it is necessary to:A. understand and use accounting informationB. hire a full-time accountantC. use a public accounting firmD. know the differences between accounting and bookkeeping

24. A basic idea of ___________ was to conduct time-motion studies to find the best way to perform each task, then teach people to use these methodsA. management by designB. Theory Z managementC. scientific managementD. expectancy theory

25. You would be most likely to ask for the help of a forensic accountant if youA. faced severe financial hardship and needed to find the most effective way to cut costs quicklyB. wanted to decide which accounting system to adopt for a new businessC. believed that someone in your organization was employing unethical or illegal accounting methodsD. wanted to determine the best depreciation and inventory valuation methods to use to minimize the income taxes paid by your organization

26. Management is more progressive today. There is more emphasis on:A. individual work that can be successfully measuredB. working in teamsC. striving to eliminate the control function of managementD. placing greater reliance on the government for financing

27. __________ is the study of how to employ resources to produce goods and services and distribute them among competing groups and individuals.A. MarketingB. SocialismC. CapitalismD. Economics

28. As a management consultant, Lamont knows that regardless of how good a firm’s product might be, the firm has little chance of success without a(n):A. financial planB. outside consultantC. auditorD. warranty

29. Adam Smith would suggest that the reason that businesses like Wal-Mart helped the disaster victims of Hurricane Katrina wasA. the U.S. government paid Wal-Mart to help the victimsB. it was the ethical thing to doC. it was in Wal-Mart’s best interest to help the victims D. it was a way to decrease Wal-Mart’s productivity

30. The revolution in management that is currently underway suggests that the most effective managers of the future willA. be very strict in their treatment of workersB. emphasize individual initiative rather than teamworkC. specialize in performing one of the four management functionsD. be team players and do more expansion overseas

31. The purpose of the Center for Community and Corporate Ethics (CCCE) is toA. supervise Wal-Mart advertising such that it follows the truth-in-advertising lawsB. organizes and build a nationwide grassroots campaign to battle Wal- Mart’s efforts at expansion and force the company to offer health care benefits to all its employeesC. stops the United Food and Commercial Workers Union from its attempts to unionize Wal-Mart.D. monitor pricing at all Wal-Marts in the U.S.

32. Which of the following statements best describes McDonald's current involvement in global markets?A. McDonald's global market success reflects their willingness to adapt their menu to local tastes and cultureB. McDonald's focus is on the U.S. market, and it currently has no plans to participate in global markets

C. McDonald's success in the global market has been achieved by offering the U.S. menu worldwideD. McDonald's has been successful in Europe, but has failed to achieve consumer acceptance in other regions of the world

33. As a finance manager at AllSports Communication, Charlie worries about the firm's borrowing and debt repayment requirements for the next year. He knows the benefit of estimating AllSports’ cash disbursements and short-term investment expectations. Facing these concerns, a(n) ________ would provide Charlie with valuable informationA. operating budgetB. cash budgetC. line item budgetD. capital budget

34. Behavior that is in conflict with your values and sense of right and wrong can damage your self esteemA. TrueB. False

35. Which of the following terms describes the set of values, beliefs, rules, language, and institutions held by a specific group of peopleA. institutional societyB. ethnocentricityC. culture D. Social myopia

36. Using information not available to the public to unfairly benefit in the stock market representsA. security fraudB. an unethical, but a legal activityC. insider tradingD. blue-sky violations

37. When touring overseas, U.S. rock groups experience different culturesA. transportation systemsB. exchange ratesC. electrical systems

D. attitudes

Submission Instructions

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Here is some additional information on items you missed:Topic:

Topic: Develop effective arguments. Question: A famous ice cream manufacturer sent workers to a nearby grocery store to offer shoppers a sample of its new flavor. The workers provided samples to 300 shoppers and noted that 80% of the sample population stated they liked the flavor. Based on this scenario, which of the following is an example of an inference? Answer Rationale: Workers providing samples to 300 shoppers is another form of surveying a population to determine a finding. The statement “20% of the sample population did not like the new flavor or were indifferent” is considered an implication. A person can imply obvious conclusions that are not stated. The statement “The workers were offering samples to see if the general public liked the new flavor” is an example of an intention. Intention suggests how the study will be developed and conducted.Topic:

Topic: Evaluate alignment of personal values and organizational values. Question: What is the best way for the CEO to deal with managers in key positions who continue to resist a major change? Answer Rationale: Minimizing their interactions with fellow employees and segregating them from the work environment can prove to be costly if the employee realizes this and counteracts your decision with legal action or sabotage. Giving an employee space and more time to come around on a change typically will not work and the resistance to the change begins to grow as the dissatisfied employee converses with fellow coworkers. Increasing the pressure for the employee to support the change will typically drive the worker further from acceptance, which can further derail the implementation of the major change.Topic:

Topic: Determine strategies to promote collaboration. Question: Finding a win-win solution that allows parties who are involved to have their goals achieved is an example of Answer Rationale: Accommodation would assume that one party would have to surrender some key component of their objectives or goals for the other party to succeed. Team building consists of activities designed to improve team performance within an organization. Compromising would assume that each party involved in seeking a solution would have to surrender a component of their objectives or goals for both parties to succeed.Topic:

Topic: Conduct benchmark analyses. Question: Companies benefit today by inter-firm

cooperation. One of the ways they cooperate is through networking. Another way is by seeking technological knowledge and learning new processes from other firms that usually fall outside of their respective industries. We call this Answer Rationale: Technology swapping is defined as a process of exchanging one technological item for another. Broadening the knowledge base refers to cross-training employees within an organization to strengthen the bottom line and customer service.Topic:

Topic: Determine the impact of economics on business. Question: How is it that people working in their own self-interest produce goods, services, and wealth for others? Answer Rationale: By taking advantage of a vast supply of labor, people working in their own self-interest could hire others at very low wages and would not be creating wealth for others. The government does not pay entrepreneurs in the United States to produce goods, services, and wealth for others. In fact, many entrepreneurs must raise funds to start a venture and are taxed by the government as a commercial organization. Entrepreneurs are not required to give portions of their earnings to a charity of one's choice to support the less fortunate.Topic:

Topic: Describe the role of human resource management in achieving business goals. Question: The ultimate resource of a firm is its Answer Rationale: Although a business plan is an essential component of a successful firm, it is not considered a firm’s most important asset. A firm’s marketing mix is information that is collected and is not a significant component that is not irreplaceable. A firm’s capital budget will adjust throughout the firm’s lifecycle and is not considered an indispensible resource to a firm.Topic:

Topic: Describe the role of human resource management in achieving business goals. Question: Today, human resource management has become so important that in many firms it has become Answer Rationale: Human resource management is an organizational function that transcends all individual departments of a company. Human resource management is performed by managers in all areas of an organization because employees within each department are affected by various HR policies and processes.Topic:

Topic: Differentiate between strategy and tactics. Question: Which of the following would be a concern addressed in a strategic plan? Answer Rationale: The assignment of specific jobs to employees is a tactical operation that would not be included in a broader, more holistic plan that is typically characteristic of a strategic plan. The amount of output production at a given facility is an operational concern to the firm that would be part of a tactical plan or part of an operational evaluation plan that the firm maintains. Selecting a computer software package for the firm’s HR department to manage payroll is a decision that is not incorporated into a firm’s strategic plan, which typically includes the firm’s or department’s overall direction with specific objectives and goals to achieve.Topic:

Topic: Differentiate between strategy and tactics. Question: Tactical planning is concerned with Answer Rationale: Determining the best way to cope with an emergency situation is considered emergency planning. Devising temporary courses of action to be used if the primary plans do not achieve the desired results is referred to as contingency planning. Setting long-term goals that govern the general course of the organization for years is referred to as strategic planning.