Midterm I

A  Federalism

B  Socialism

C  Capitalism

D  Communism

A  acquisition

B  divestiture

C  merger

D  strategic alliance

A  $144.54

B  $14,454.00

C  $1,445.54

D  $14.45

A  FALSE

B  TRUE

A  FALSE

B  TRUE

A  TRUE

B  FALSE

A  staffing

B  directing

C  planning

D  organizing

A  autocratic

B  charismatic

C  democratic

D  laissez-fair

A  chief executive officer

B  chief operations officer

C  chief sales officer

D  chief financial officer

A  globalization

B  Marxism

C  protectionism

D  isolationism

A  FALSE

B  TRUE

A  David Ricardo

B  Adam Smith

C  Justin Turner

D  Milton Friedman

A  TRUE

B  FALSE

A  credit

B  equilibrium

C  discount

D  surplus

A  communist

B  private

C  mixed

D  public

A  Depreciation

B  Profit

C  Cost of goods sold

D  Marketing

A  gravity

B  entropy

C  fusion

D  dynamics

A  Machiavelli

B  Karl Marx

C  Adam Smith

D  John Adams

A  TRUE

B  FALSE

A  liability is limited to corporate assets only

B  it is considered a separate legal entity

C  there is ease of transfer

D  all of the above may be considered advantages of corporations

A  FALSE

B  TRUE

A  Ease of setup

B  Little or no recording by the State

C  Taxes paid on personal tax return

D  Double taxation

A  TRUE

B  FALSE

A  FALSE

B  TRUE

A  FALSE

B  TRUE

A  TRUE

B  FALSE

A  TRUE

B  FALSE

A  FALSE

B  TRUE

A  customer complaints

B  individual employees

C  legislation

D  policies

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 allows employees to choose their own employment.

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

D  Fair competition supports the goal of private property ownership.

A  absolute advantage

B  comparative advantage

C  trade surplus

D  trade deficit

A  General Agreement on Tariffs and Trade (GATT)

B  World Bank

C  World Trade Organization (WTO)

D  International Monetary Fund (IMF)

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

B  Inflation devalues money.

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

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

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

A  All of these

B  Creativity and critical thinking

C  Ability to lead change

D  Visionary skills

A  Stock liquidation

B  Trade surplus

C  Budget surplus

D  Hyperinflation

A  developing a quality workforce.

B  protecting the environment.

C  dealing with public health issues.

D  all of these.

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  Demand curves

C  Normal distribution curves

D  Production possibility curves

A  quota

B  embargo

C  exchange control

D  tariff

A  TRUE

B  FALSE

A  All of these

B  The company’s upper management

C  The company’s code of ethics

D  The company’s ethical climate

A  tariffs

B  dumping

C  seeding

D  quotas

A  exchange

B  import

C  resource

D  export

A  energy; food

B  transportation; housing

C  entertainment; clothing

D  health care; education

A  TRUE

B  FALSE

A  private property

B  competition

C  profits

D  freedom of choice

A  Global Assistance Fund

B  International Monetary Fund

C  World Bank

D  International Bank

A  Growth stage

B  Maturity stage

C  Introductory stage

D  Decline stage

A  TRUE

B  FALSE

A  defensive

B  obstructionist

C  accommodative

D  proactive

A  TRUE

B  FALSE

A  GDP

B  Balance of Trade

C  Purchasing Power Parity

D  Aggregate Output

A  Airline industry

B  U.S. agriculture

C  Steel industries

D  Automobile industries

A  TRUE

B  FALSE

A  communism

B  capitalism

C  fascism

D  socialism

A  $10.3 trillion in merchandise is traded each year.

B  $19.3 million in merchandise is traded each year.

C  $18.3 billion in merchandise is traded each year.

D  $19.3 trillion in merchandise is traded each year.

A  Research and Development (R&D)

B  Human resource management

C  Human asset accounting

D  Change management

A  FALSE

B  TRUE

A  TRUE

B  FALSE

A  TRUE

B  FALSE

A  TRUE

B  FALSE

A  organizational chart.

B  GANTT chart.

C  benchmark analysis.

D  SWOT analysis.

A  contingency plan.

B  benchmarking process.

C  operational plan.

D  mission statement.

A  Operational planning

B  Tactical planning

C  Contingency planning

D  Strategic planning

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

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 involves implementing the activities specified by operational plans.

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

B  Management happens only at the top management levels.

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

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  FALSE

B  TRUE

A  FALSE

B  TRUE

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