Midterm I

A  Capitalism

B  Federalism

C  Socialism

D  Communism

A  divestiture

B  strategic alliance

C  acquisition

D  merger

A  $1,445.54

B  $14.45

C  $14,454.00

D  $144.54

A  FALSE

B  TRUE

A  TRUE

B  FALSE

A  TRUE

B  FALSE

A  planning

B  staffing

C  directing

D  organizing

A  autocratic

B  laissez-fair

C  democratic

D  charismatic

A  chief sales officer

B  chief executive officer

C  chief financial officer

D  chief operations officer

A  Marxism

B  protectionism

C  isolationism

D  globalization

A  TRUE

B  FALSE

A  Milton Friedman

B  David Ricardo

C  Justin Turner

D  Adam Smith

A  TRUE

B  FALSE

A  credit

B  discount

C  equilibrium

D  surplus

A  mixed

B  private

C  public

D  communist

A  Depreciation

B  Cost of goods sold

C  Marketing

D  Profit

A  gravity

B  fusion

C  entropy

D  dynamics

A  John Adams

B  Machiavelli

C  Karl Marx

D  Adam Smith

A  FALSE

B  TRUE

A  liability is limited to corporate assets only

B  there is ease of transfer

C  it is considered a separate legal entity

D  all of the above may be considered advantages of corporations

A  FALSE

B  TRUE

A  Taxes paid on personal tax return

B  Little or no recording by the State

C  Double taxation

D  Ease of setup

A  TRUE

B  FALSE

A  TRUE

B  FALSE

A  FALSE

B  TRUE

A  FALSE

B  TRUE

A  FALSE

B  TRUE

A  FALSE

B  TRUE

A  legislation

B  policies

C  customer complaints

D  individual employees

A  Production era

B  Marketing era

C  Colonial 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 allows employees to choose their own employment.

D  Fair competition supports the goal of private property ownership.

A  absolute advantage

B  trade deficit

C  comparative advantage

D  trade surplus

A  World Trade Organization (WTO)

B  General Agreement on Tariffs and Trade (GATT)

C  World Bank

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

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

C  The factors of production are regulated by the government.

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

A  Creativity and critical thinking

B  All of these

C  Visionary skills

D  Ability to lead change

A  Stock liquidation

B  Trade surplus

C  Budget surplus

D  Hyperinflation

A  dealing with public health issues.

B  all of these.

C  protecting the environment.

D  developing a quality workforce.

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

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

C  Business consists of marketing products that people want.

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  quota

C  exchange control

D  embargo

A  FALSE

B  TRUE

A  The company’s ethical climate

B  The company’s upper management

C  All of these

D  The company’s code of ethics

A  tariffs

B  quotas

C  seeding

D  dumping

A  exchange

B  export

C  resource

D  import

A  health care; education

B  energy; food

C  entertainment; clothing

D  transportation; housing

A  FALSE

B  TRUE

A  private property

B  profits

C  freedom of choice

D  competition

A  International Monetary Fund

B  International Bank

C  Global Assistance Fund

D  World Bank

A  Decline stage

B  Introductory stage

C  Maturity stage

D  Growth stage

A  TRUE

B  FALSE

A  proactive

B  accommodative

C  defensive

D  obstructionist

A  TRUE

B  FALSE

A  GDP

B  Aggregate Output

C  Purchasing Power Parity

D  Balance of Trade

A  Steel industries

B  Airline industry

C  Automobile industries

D  U.S. agriculture

A  FALSE

B  TRUE

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 million in merchandise is traded each year.

D  $19.3 trillion in merchandise is traded each year.

A  Change management

B  Research and Development (R&D)

C  Human asset accounting

D  Human resource management

A  TRUE

B  FALSE

A  TRUE

B  FALSE

A  FALSE

B  TRUE

A  TRUE

B  FALSE

A  SWOT analysis.

B  GANTT chart.

C  organizational chart.

D  benchmark analysis.

A  operational plan.

B  mission statement.

C  contingency plan.

D  benchmarking process.

A  Operational planning

B  Contingency planning

C  Strategic planning

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

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

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  FALSE

B  TRUE

A  FALSE

B  TRUE

A  is a middle manager

B  avoids risk at all cost

C  does not tolerate ambiguity

D  is a risk taker in the private enterprise system