Midterm I

A  Socialism

B  Communism

C  Federalism

D  Capitalism

A  strategic alliance

B  divestiture

C  acquisition

D  merger

A  $1,445.54

B  $14.45

C  $14,454.00

D  $144.54

A  FALSE

B  TRUE

A  FALSE

B  TRUE

A  FALSE

B  TRUE

A  organizing

B  planning

C  directing

D  staffing

A  autocratic

B  democratic

C  charismatic

D  laissez-fair

A  chief operations officer

B  chief sales officer

C  chief financial officer

D  chief executive officer

A  isolationism

B  Marxism

C  globalization

D  protectionism

A  FALSE

B  TRUE

A  Milton Friedman

B  David Ricardo

C  Adam Smith

D  Justin Turner

A  TRUE

B  FALSE

A  discount

B  surplus

C  credit

D  equilibrium

A  private

B  public

C  mixed

D  communist

A  Cost of goods sold

B  Marketing

C  Depreciation

D  Profit

A  fusion

B  entropy

C  dynamics

D  gravity

A  Karl Marx

B  John Adams

C  Machiavelli

D  Adam Smith

A  FALSE

B  TRUE

A  it is considered a separate legal entity

B  liability is limited to corporate assets only

C  there is ease of transfer

D  all of the above may be considered advantages of corporations

A  TRUE

B  FALSE

A  Ease of setup

B  Little or no recording by the State

C  Double taxation

D  Taxes paid on personal tax return

A  TRUE

B  FALSE

A  TRUE

B  FALSE

A  TRUE

B  FALSE

A  FALSE

B  TRUE

A  TRUE

B  FALSE

A  FALSE

B  TRUE

A  customer complaints

B  individual employees

C  policies

D  legislation

A  Colonial era

B  Production era

C  Marketing era

D  Relative 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  absolute advantage

B  trade surplus

C  trade deficit

D  comparative advantage

A  International Monetary Fund (IMF)

B  World Bank

C  General Agreement on Tariffs and Trade (GATT)

D  World Trade Organization (WTO)

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

B  Inflation devalues money.

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

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  Visionary skills

C  Ability to lead change

D  All of these

A  Stock liquidation

B  Budget surplus

C  Hyperinflation

D  Trade surplus

A  dealing with public health issues.

B  all of these.

C  developing a quality workforce.

D  protecting the environment.

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

B  Business consists of marketing products that people want.

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

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

A  Demand curves

B  Production possibility curves

C  Normal distribution curves

D  Supply curves

A  exchange control

B  embargo

C  tariff

D  quota

A  FALSE

B  TRUE

A  The company’s code of ethics

B  The company’s ethical climate

C  The company’s upper management

D  All of these

A  tariffs

B  seeding

C  quotas

D  dumping

A  import

B  exchange

C  export

D  resource

A  entertainment; clothing

B  health care; education

C  energy; food

D  transportation; housing

A  TRUE

B  FALSE

A  private property

B  competition

C  freedom of choice

D  profits

A  Global Assistance Fund

B  International Bank

C  World Bank

D  International Monetary Fund

A  Maturity stage

B  Decline stage

C  Growth stage

D  Introductory stage

A  TRUE

B  FALSE

A  accommodative

B  proactive

C  obstructionist

D  defensive

A  FALSE

B  TRUE

A  Aggregate Output

B  GDP

C  Purchasing Power Parity

D  Balance of Trade

A  Steel industries

B  Automobile industries

C  U.S. agriculture

D  Airline industry

A  FALSE

B  TRUE

A  socialism

B  capitalism

C  communism

D  fascism

A  $10.3 trillion in merchandise is traded each year.

B  $19.3 trillion in merchandise is traded each year.

C  $18.3 billion in merchandise is traded each year.

D  $19.3 million in merchandise is traded each year.

A  Change management

B  Research and Development (R&D)

C  Human asset accounting

D  Human resource management

A  FALSE

B  TRUE

A  TRUE

B  FALSE

A  TRUE

B  FALSE

A  TRUE

B  FALSE

A  GANTT chart.

B  SWOT analysis.

C  benchmark analysis.

D  organizational chart.

A  operational plan.

B  contingency plan.

C  benchmarking process.

D  mission statement.

A  Tactical planning

B  Operational planning

C  Contingency planning

D  Strategic planning

A  It involves implementing the activities specified by operational plans.

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

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

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  FALSE

B  TRUE

A  FALSE

B  TRUE

A  TRUE

B  FALSE

A  FALSE

B  TRUE

A  is a risk taker in the private enterprise system

B  avoids risk at all cost

C  does not tolerate ambiguity

D  is a middle manager