Midterm I

A  Socialism

B  Communism

C  Federalism

D  Capitalism

A  strategic alliance

B  acquisition

C  merger

D  divestiture

A  $1,445.54

B  $144.54

C  $14,454.00

D  $14.45

A  FALSE

B  TRUE

A  TRUE

B  FALSE

A  TRUE

B  FALSE

A  staffing

B  planning

C  organizing

D  directing

A  laissez-fair

B  charismatic

C  autocratic

D  democratic

A  chief executive officer

B  chief financial officer

C  chief operations officer

D  chief sales officer

A  globalization

B  protectionism

C  Marxism

D  isolationism

A  TRUE

B  FALSE

A  Adam Smith

B  Milton Friedman

C  David Ricardo

D  Justin Turner

A  FALSE

B  TRUE

A  surplus

B  credit

C  discount

D  equilibrium

A  mixed

B  public

C  private

D  communist

A  Depreciation

B  Profit

C  Marketing

D  Cost of goods sold

A  fusion

B  dynamics

C  gravity

D  entropy

A  Machiavelli

B  Adam Smith

C  John Adams

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  Taxes paid on personal tax return

B  Double taxation

C  Ease of setup

D  Little or no recording by the State

A  TRUE

B  FALSE

A  TRUE

B  FALSE

A  TRUE

B  FALSE

A  FALSE

B  TRUE

A  FALSE

B  TRUE

A  FALSE

B  TRUE

A  legislation

B  customer complaints

C  policies

D  individual employees

A  Production era

B  Marketing era

C  Colonial era

D  Relative era

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

B  Fair competition supports the goal of private property ownership.

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

D  Fair competition allows employees to choose their own employment.

A  trade deficit

B  trade surplus

C  absolute advantage

D  comparative advantage

A  International Monetary Fund (IMF)

B  World Bank

C  World Trade Organization (WTO)

D  General Agreement on Tariffs and Trade (GATT)

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

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  The factors of production are regulated by the government.

A  Creativity and critical thinking

B  Visionary skills

C  All of these

D  Ability to lead change

A  Budget surplus

B  Trade surplus

C  Hyperinflation

D  Stock liquidation

A  developing a quality workforce.

B  dealing with public health issues.

C  protecting the environment.

D  all of these.

A  Business consists of marketing products that people want.

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

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

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

A  Demand curves

B  Supply curves

C  Production possibility curves

D  Normal distribution curves

A  tariff

B  embargo

C  quota

D  exchange control

A  FALSE

B  TRUE

A  All of these

B  The company’s ethical climate

C  The company’s upper management

D  The company’s code of ethics

A  tariffs

B  dumping

C  seeding

D  quotas

A  exchange

B  export

C  resource

D  import

A  health care; education

B  entertainment; clothing

C  energy; food

D  transportation; housing

A  TRUE

B  FALSE

A  competition

B  profits

C  freedom of choice

D  private property

A  International Monetary Fund

B  International Bank

C  Global Assistance Fund

D  World Bank

A  Maturity stage

B  Introductory stage

C  Growth stage

D  Decline stage

A  TRUE

B  FALSE

A  defensive

B  obstructionist

C  proactive

D  accommodative

A  TRUE

B  FALSE

A  GDP

B  Balance of Trade

C  Aggregate Output

D  Purchasing Power Parity

A  Automobile industries

B  Airline industry

C  Steel industries

D  U.S. agriculture

A  TRUE

B  FALSE

A  fascism

B  socialism

C  communism

D  capitalism

A  $18.3 billion in merchandise is traded each year.

B  $10.3 trillion in merchandise is traded each year.

C  $19.3 trillion 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 resource management

D  Human asset accounting

A  TRUE

B  FALSE

A  FALSE

B  TRUE

A  FALSE

B  TRUE

A  FALSE

B  TRUE

A  benchmark analysis.

B  SWOT analysis.

C  organizational chart.

D  GANTT chart.

A  operational plan.

B  benchmarking process.

C  contingency plan.

D  mission statement.

A  Contingency planning

B  Tactical planning

C  Strategic planning

D  Operational planning

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

B  It involves implementing the activities specified by operational plans.

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

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

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

A  TRUE

B  FALSE

A  FALSE

B  TRUE

A  TRUE

B  FALSE

A  FALSE

B  TRUE

A  is a risk taker in the private enterprise system

B  is a middle manager

C  does not tolerate ambiguity

D  avoids risk at all cost