Midterm I

A  Communism

B  Capitalism

C  Federalism

D  Socialism

A  merger

B  acquisition

C  strategic alliance

D  divestiture

A  $1,445.54

B  $14,454.00

C  $144.54

D  $14.45

A  TRUE

B  FALSE

A  FALSE

B  TRUE

A  FALSE

B  TRUE

A  staffing

B  planning

C  directing

D  organizing

A  democratic

B  autocratic

C  laissez-fair

D  charismatic

A  chief financial officer

B  chief sales officer

C  chief executive officer

D  chief operations officer

A  globalization

B  protectionism

C  isolationism

D  Marxism

A  FALSE

B  TRUE

A  Milton Friedman

B  Adam Smith

C  David Ricardo

D  Justin Turner

A  FALSE

B  TRUE

A  credit

B  equilibrium

C  discount

D  surplus

A  mixed

B  public

C  private

D  communist

A  Cost of goods sold

B  Marketing

C  Depreciation

D  Profit

A  dynamics

B  gravity

C  entropy

D  fusion

A  Karl Marx

B  Machiavelli

C  Adam Smith

D  John Adams

A  TRUE

B  FALSE

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  FALSE

B  TRUE

A  Taxes paid on personal tax return

B  Double taxation

C  Little or no recording by the State

D  Ease of setup

A  FALSE

B  TRUE

A  FALSE

B  TRUE

A  FALSE

B  TRUE

A  FALSE

B  TRUE

A  TRUE

B  FALSE

A  FALSE

B  TRUE

A  individual employees

B  policies

C  customer complaints

D  legislation

A  Relative era

B  Marketing era

C  Colonial era

D  Production era

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

B  Fair competition allows employees to choose their own employment.

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 supports the goal of private property ownership.

A  trade deficit

B  trade surplus

C  comparative advantage

D  absolute advantage

A  General Agreement on Tariffs and Trade (GATT)

B  World Bank

C  International Monetary Fund (IMF)

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  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  Visionary skills

C  Creativity and critical thinking

D  Ability to lead change

A  Hyperinflation

B  Stock liquidation

C  Budget surplus

D  Trade surplus

A  dealing with public health issues.

B  developing a quality workforce.

C  all of these.

D  protecting the environment.

A  Business consists of marketing products that people want.

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

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  Supply curves

B  Demand curves

C  Production possibility curves

D  Normal distribution curves

A  tariff

B  embargo

C  quota

D  exchange control

A  FALSE

B  TRUE

A  The company’s code of ethics

B  The company’s upper management

C  All of these

D  The company’s ethical climate

A  seeding

B  quotas

C  dumping

D  tariffs

A  import

B  export

C  resource

D  exchange

A  transportation; housing

B  energy; food

C  health care; education

D  entertainment; clothing

A  TRUE

B  FALSE

A  freedom of choice

B  profits

C  competition

D  private property

A  World Bank

B  International Bank

C  International Monetary Fund

D  Global Assistance Fund

A  Maturity stage

B  Introductory stage

C  Growth stage

D  Decline stage

A  TRUE

B  FALSE

A  obstructionist

B  accommodative

C  proactive

D  defensive

A  TRUE

B  FALSE

A  Balance of Trade

B  Purchasing Power Parity

C  Aggregate Output

D  GDP

A  Airline industry

B  Steel industries

C  Automobile industries

D  U.S. agriculture

A  FALSE

B  TRUE

A  socialism

B  capitalism

C  communism

D  fascism

A  $19.3 million 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  $10.3 trillion in merchandise is traded each year.

A  Human asset accounting

B  Change management

C  Human resource management

D  Research and Development (R&D)

A  TRUE

B  FALSE

A  TRUE

B  FALSE

A  TRUE

B  FALSE

A  FALSE

B  TRUE

A  SWOT analysis.

B  organizational chart.

C  benchmark analysis.

D  GANTT chart.

A  mission statement.

B  operational plan.

C  contingency plan.

D  benchmarking process.

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

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

C  Management happens only at the top management levels.

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