Midterm I

A  Capitalism

B  Socialism

C  Communism

D  Federalism

A  acquisition

B  merger

C  divestiture

D  strategic alliance

A  $1,445.54

B  $14,454.00

C  $14.45

D  $144.54

A  TRUE

B  FALSE

A  FALSE

B  TRUE

A  TRUE

B  FALSE

A  planning

B  staffing

C  directing

D  organizing

A  charismatic

B  laissez-fair

C  autocratic

D  democratic

A  chief operations officer

B  chief sales officer

C  chief executive officer

D  chief financial officer

A  protectionism

B  Marxism

C  globalization

D  isolationism

A  FALSE

B  TRUE

A  Milton Friedman

B  David Ricardo

C  Justin Turner

D  Adam Smith

A  TRUE

B  FALSE

A  discount

B  credit

C  equilibrium

D  surplus

A  mixed

B  communist

C  private

D  public

A  Depreciation

B  Profit

C  Cost of goods sold

D  Marketing

A  entropy

B  dynamics

C  fusion

D  gravity

A  John Adams

B  Machiavelli

C  Karl Marx

D  Adam Smith

A  TRUE

B  FALSE

A  there is ease of transfer

B  liability is limited to corporate assets only

C  it is considered a separate legal entity

D  all of the above may be considered advantages of corporations

A  TRUE

B  FALSE

A  Double taxation

B  Little or no recording by the State

C  Ease of setup

D  Taxes paid on personal tax return

A  TRUE

B  FALSE

A  FALSE

B  TRUE

A  FALSE

B  TRUE

A  FALSE

B  TRUE

A  TRUE

B  FALSE

A  FALSE

B  TRUE

A  individual employees

B  customer complaints

C  legislation

D  policies

A  Colonial era

B  Production era

C  Marketing era

D  Relative era

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

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

C  Fair competition allows employees to choose their own employment.

D  Fair competition supports the goal of private property ownership.

A  comparative advantage

B  trade surplus

C  absolute advantage

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

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

C  Inflation devalues money.

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

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

B  The factors of production are regulated by the government.

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  All of these

C  Visionary skills

D  Ability to lead change

A  Hyperinflation

B  Trade surplus

C  Stock liquidation

D  Budget surplus

A  developing a quality workforce.

B  all of these.

C  dealing with public health issues.

D  protecting the environment.

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

B  Business consists of marketing products that people want.

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

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

A  Demand curves

B  Normal distribution curves

C  Supply curves

D  Production possibility curves

A  exchange control

B  tariff

C  embargo

D  quota

A  TRUE

B  FALSE

A  All of these

B  The company’s ethical climate

C  The company’s upper management

D  The company’s code of ethics

A  quotas

B  dumping

C  seeding

D  tariffs

A  export

B  exchange

C  import

D  resource

A  entertainment; clothing

B  health care; education

C  transportation; housing

D  energy; food

A  FALSE

B  TRUE

A  freedom of choice

B  competition

C  profits

D  private property

A  International Monetary Fund

B  International Bank

C  Global Assistance Fund

D  World Bank

A  Introductory stage

B  Maturity stage

C  Growth stage

D  Decline stage

A  TRUE

B  FALSE

A  obstructionist

B  accommodative

C  defensive

D  proactive

A  TRUE

B  FALSE

A  Aggregate Output

B  Purchasing Power Parity

C  GDP

D  Balance of Trade

A  U.S. agriculture

B  Steel industries

C  Automobile industries

D  Airline industry

A  FALSE

B  TRUE

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  Human resource management

B  Research and Development (R&D)

C  Change management

D  Human asset accounting

A  TRUE

B  FALSE

A  FALSE

B  TRUE

A  TRUE

B  FALSE

A  FALSE

B  TRUE

A  GANTT chart.

B  SWOT analysis.

C  benchmark analysis.

D  organizational chart.

A  operational plan.

B  contingency plan.

C  mission statement.

D  benchmarking process.

A  Strategic planning

B  Operational planning

C  Tactical planning

D  Contingency 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 involves implementing the activities specified by operational plans.

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

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

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

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

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

D  Management happens only at the top management levels.

A  TRUE

B  FALSE

A  TRUE

B  FALSE

A  TRUE

B  FALSE

A  FALSE

B  TRUE

A  does not tolerate ambiguity

B  avoids risk at all cost

C  is a risk taker in the private enterprise system

D  is a middle manager