Midterm I

A  Capitalism

B  Socialism

C  Communism

D  Federalism

A  merger

B  divestiture

C  acquisition

D  strategic alliance

A  $144.54

B  $1,445.54

C  $14.45

D  $14,454.00

A  TRUE

B  FALSE

A  TRUE

B  FALSE

A  FALSE

B  TRUE

A  directing

B  planning

C  staffing

D  organizing

A  laissez-fair

B  charismatic

C  autocratic

D  democratic

A  chief operations officer

B  chief sales officer

C  chief financial officer

D  chief executive officer

A  globalization

B  Marxism

C  protectionism

D  isolationism

A  FALSE

B  TRUE

A  Justin Turner

B  Milton Friedman

C  Adam Smith

D  David Ricardo

A  TRUE

B  FALSE

A  surplus

B  equilibrium

C  discount

D  credit

A  private

B  public

C  communist

D  mixed

A  Cost of goods sold

B  Profit

C  Depreciation

D  Marketing

A  gravity

B  fusion

C  dynamics

D  entropy

A  Machiavelli

B  John Adams

C  Adam Smith

D  Karl Marx

A  TRUE

B  FALSE

A  it is considered a separate legal entity

B  there is ease of transfer

C  liability is limited to corporate assets only

D  all of the above may be considered advantages of corporations

A  FALSE

B  TRUE

A  Ease of setup

B  Taxes paid on personal tax return

C  Little or no recording by the State

D  Double taxation

A  FALSE

B  TRUE

A  FALSE

B  TRUE

A  TRUE

B  FALSE

A  FALSE

B  TRUE

A  TRUE

B  FALSE

A  TRUE

B  FALSE

A  legislation

B  customer complaints

C  individual employees

D  policies

A  Relative era

B  Production era

C  Colonial era

D  Marketing era

A  Fair competition allows firms to compete, knowing they won’t be subjected to excessively aggressive practices that are designed to eliminate them.

B  Fair competition requires firms to inform their competitors when prices will be reduced.

C  Fair competition supports the goal of private property ownership.

D  Fair competition allows employees to choose their own employment.

A  trade deficit

B  trade surplus

C  comparative advantage

D  absolute advantage

A  World Trade Organization (WTO)

B  International Monetary Fund (IMF)

C  World Bank

D  General Agreement on Tariffs and Trade (GATT)

A  Inflation is good news for people who live on fixed incomes.

B  While deflation weakens the economy, inflation strengthens the economy.

C  Inflation devalues money.

D  When inflation is high, businesses should invest in research and development.

A  The factors of production are regulated by the government.

B  Natural resources will always be the least important factor of production.

C  Managing only human resources is enough for the successful operation of a business.

D  Firms need to understand how to reduce the cost of production if they are going to be successful.

A  Creativity and critical thinking

B  Ability to lead change

C  All of these

D  Visionary skills

A  Trade surplus

B  Budget surplus

C  Stock liquidation

D  Hyperinflation

A  all of these.

B  protecting the environment.

C  developing a quality workforce.

D  dealing with public health issues.

A  Business is defined as activities that produce the most good for society.

B  Business consists of all profit-seeking activities that provide goods and services to an economic system.

C  Business consists of marketing products that people want.

D  The term business only describes firms that are profitable and excludes government or private organizations

A  Supply curves

B  Normal distribution curves

C  Demand curves

D  Production possibility curves

A  quota

B  tariff

C  exchange control

D  embargo

A  TRUE

B  FALSE

A  The company’s ethical climate

B  The company’s upper management

C  All of these

D  The company’s code of ethics

A  quotas

B  seeding

C  dumping

D  tariffs

A  export

B  exchange

C  resource

D  import

A  entertainment; clothing

B  energy; food

C  health care; education

D  transportation; housing

A  TRUE

B  FALSE

A  profits

B  competition

C  freedom of choice

D  private property

A  World Bank

B  International Bank

C  International Monetary Fund

D  Global Assistance Fund

A  Decline stage

B  Introductory stage

C  Maturity stage

D  Growth stage

A  FALSE

B  TRUE

A  obstructionist

B  accommodative

C  proactive

D  defensive

A  FALSE

B  TRUE

A  Purchasing Power Parity

B  Aggregate Output

C  GDP

D  Balance of Trade

A  Steel industries

B  Airline industry

C  U.S. agriculture

D  Automobile industries

A  TRUE

B  FALSE

A  socialism

B  capitalism

C  communism

D  fascism

A  $19.3 million in merchandise is traded each year.

B  $18.3 billion in merchandise is traded each year.

C  $10.3 trillion in merchandise is traded each year.

D  $19.3 trillion in merchandise is traded each year.

A  Human asset accounting

B  Change management

C  Human resource management

D  Research and Development (R&D)

A  FALSE

B  TRUE

A  TRUE

B  FALSE

A  TRUE

B  FALSE

A  TRUE

B  FALSE

A  benchmark analysis.

B  GANTT chart.

C  SWOT analysis.

D  organizational chart.

A  contingency plan.

B  benchmarking process.

C  operational plan.

D  mission statement.

A  Strategic planning

B  Tactical planning

C  Contingency planning

D  Operational planning

A  It crates the detailed standards that guide implementation of tactical plans.

B  It involves implementing the activities specified by operational plans.

C  It allows an organization to resume operations as quickly and as smoothly as possible after a crisis while openly communicating with the public.

D  It is the process of determining the primary objectives of an organization and then acting and allocating resources to achieve those objectives.

A  Management happens only at the top management levels.

B  Management principles do not apply to not-for-profit organizations.

C  Management is the process of achieving organizational objectives through people and other resources.

D  Management is solely the process of reporting organizational successes and failures to investors and others.

A  TRUE

B  FALSE

A  TRUE

B  FALSE

A  TRUE

B  FALSE

A  TRUE

B  FALSE

A  is a risk taker in the private enterprise system

B  does not tolerate ambiguity

C  is a middle manager

D  avoids risk at all cost