BUS 101

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279 terms · SCC

In order to level the playing field in trade between the U.S. and China, U.S. policymakers have called upon China's government to allow the Yuan (China's currency) to float freely, as other world currencies. Through government regulation, China maintains an undervalued currency, which results in:
Choose one answer.

a. More buying power for Chinese consumers who want to purchase U.S. goods and goods from other countries.

b. Maintaining robust Chinese exports and a favorable balance of trade for China.

c. Developing better relations with industrialized countries who want to increase the value of their exports.

d. Stability and strength of the Chinese Yuan against the U.S. dollar and the euro.

b. Maintaining robust Chinese exports and a favorable balance of trade for China.

A fast-growing form of foreign direct investment is sovereign wealth funds (SWFs). Why do these investments by governments with surplus cash flows worry trade experts?
Choose one answer.

a. SWFs invest in high risk start-ups with no proven history of producing goods and services that developing or developed countries need. They may likely undermine the years of development of growing economies.

b. SWFs have a greater risk of going bankrupt than other investments because governments are not good at running businesses.

c. Some fear that governments investing their SWFs in large firms may gain control of natural resources, sensitive technologies, and the decision making of management.

d. Some trading experts believe that SWFs are supported by terrorist organizations, and their strategy is an indirect way to undermine the creation of U.S. jobs.

c. Some fear that governments investing their SWFs in large firms may gain control of natural resources, sensitive technologies, and the decision making of management.

Denmark requires foreign companies that sell butter in Denmark to sell it in cubes, not tubs. This type of requirement is known as a:
Choose one answer.

a. protective tariff.

b. revenue tariff.

c. quota.

d. nontariff barrier.

d. nontariff barrier

Mini-Case<br/><br/>Since he was five years old, Rhett Tenna struggled with poor eyesight. He suffered through all the names that went along with wearing eyeglasses for most of his young life. Rhett eventually switched from traditional eyeglasses to contact lens, but he always wondered why glasses were considered to be "ugly" and not fashionable. After graduation from college, Rhett set out on a lifelong goal: to make eye wear synonymous with high fashion. He opened a specialty store called "The Eyes Have It." His marketing plan was to remove the social stigma of wearing glasses, and replace it with a sense of flair and high fashion. From the day he opened his first store, Rhett's plan met with resounding success. Today, "The Eyes Have It" has grown from that single outlet to a medium-sized company with dozens of stores located in six states, and a manufacturing plant that turns out designer frames.<br/>A recent internal audit, however, suggested a problem that Rhett had not anticipated. The study indicated that the U.S. market is just about saturated and growth of "The Eyes Have It" stores will be very limited. The audit concerned Rhett until he recognized an untapped market existed overseas. If people all over the world have the same problem, the global market opportunities are fantastic! All in favor of going global say: "The Eyes Have It"!<br/>&#160;<br/>The company was informed by the Japanese Ministry of Trade that they could only export 1.5 million pairs of eyeglasses to the Japanese market during a given year. The Japanese have imposed a(n):
Choose one answer.

a. revenue tariff.

b. embargo.

c. import quota.

d. limit order.

c. import quota.

The value of goods imported into France exceeds the value of French exports. This indicates that France:
Choose one answer.

a. Has an exchange rate decrease.

b. Utilizes high tariffs.

c. Has a budget deficit.

d. Has a trade deficit.

d. Has a trade deficit.

U.S. firms that produce sophisticated military hardware are prohibited from exporting that equipment to "unfriendly" governments, such as Iran. This complete ban on exporting sensitive technology to specific countries is an example of a(n):
Choose one answer.

a. import quota.

b. boycott.

c. tariff.

d. embargo.

d. embargo.

The three countries participating in NAFTA are:
Choose one answer.

a. Canada, Panama, and the United States.

b. Mexico, Panama, and the United States.

c. Canada, Nicaragua, and Mexico.

d. Canada, Mexico, and the United States.

d. Canada, Mexico, and the United States.

Which of the following is an advantage of offshore outsourcing?
Choose one answer.

a. Companies can create efficiencies by hiring low-wage employees.

b. Wages increase in the home country.

c. Product quality improves permitting firms to charge more for their products.

d. Communication between the company and its customers improves.

a. Companies can create efficiencies by hiring low-wage employees.

A sociological challenge that must be overcome in order to be successful in the global market is:
Choose one answer.

a. A lack of cultural understanding.

b. An overly anxious desire to please at all cost.

c. Inequality of global natural resources.

d. Wealth management.

a. A lack of cultural understanding.

Nike _________________ its products in foreign countries, where labor is cheap and production sites are owned by other companies. This strategy allows Nike to experiment in new markets without incurring large start-up costs involved with building their own production facilities.
Choose one answer.

a. contract franchises

b. pays governments to market

c. globally licenses

d. contract manufactures

d. contract manufactures

Reviewing the recent experience of the United States in global markets reveals that the U.S has:
Choose one answer.

a. a merchandise trade surplus with the rest of the world.

b. a large trade deficit with China.

c. avoided becoming a debtor nation.

d. attracted very little foreign direct investment.

b. a large trade deficit with China.

_____________ is buying products from another country.
Choose one answer.

a. Importing

b. Outsourcing

c. Retailing

a. Importing

Rosa's aunt was taking a cruise to Brazil. She suggested to Rosa that she would be glad to buy her some jewelry while in port in Rio de Janeiro because the exchange rate would be to her benefit. This means:
Choose one answer.

a. The currency in Rosa's home country is weak against the Brazilian currency.

b. The currency in Rosa's home country will be almost equal to the Brazilian currency; otherwise it would not be a good exchange.

c. The currency in Rosa's home country is devalued.

d. The currency in Rosa's home country has strength against the Brazilian currency.

d. The currency in Rosa's home country has strength against the Brazilian currency.

As students think about a career in the business world today, which of the following is a good strategic suggestion?
Choose one answer.

a. Studying a foreign language.

b. Securing a job with a large multinational corporation.

c. Stay away from franchising due to the saturation of this form of business globally.

d. Avoid spending a lot of time studying fluctuations in currencies because a global currency is eminent.

a. Studying a foreign language.

__________ occurs when a country has a monopoly on producing a product or is able to produce it at a cost well below that of all other countries.
Choose one answer.

a. Comparative advantage

b. Absolute advantage

c. Complete advantage

d. Dumping advantage

b. Absolute advantage

_______ tariffs are designed to raise money for the government.
Choose one answer.

a. Regulatory

b. Revenue

c. Price

d. Profit

b. Revenue

A benefit of contracting with export trading companies is:
Choose one answer.

a. They are the experts in establishing trading partners abroad, and negotiating all the details in retaining customers.

b. They are experts in staying out of the financial transactions of establishing new markets.

c. They will always assume the risk if your product does not sell to the foreign customer.

d. They keep you legal because they serve as the franchisor and make certain that your products meet ISO requirements.

a. They are the experts in establishing trading partners abroad, and negotiating all the details in retaining customers.

One of the purposes of Export Assistance Centers is to:
Choose one answer.

a. help multinational corporations reach agreements with foreign governments.

b. provide subsidies to domestic firms hurt by dumping by foreign firms.

c. provide trade-finance support for small and medium-sized firms involved in direct exporting.

d. encourage domestic firms to become more competitive by forming keiretsu-like organizations, much like those found in Japan.

c. provide trade-finance support for small and medium-sized firms involved in direct exporting.

One objective of NAFTA is:
Choose one answer.

a. increase trade barriers between the countries involved.

b. decrease investment opportunities in the countries involved.

c. promote conditions of fair competition for the three trading partners.

d. improve working conditions in Central America.

c. promote conditions of fair competition for the three trading partners.

Under a system of floating exchange rates, changes in the value of the U.S. dollar relative to other currencies are the result of:
Choose one answer.

a. negotiated rate adjustments between the U.S. government and the World Trade Organization.

b. decisions made by the Federal Reserve Board of Governors in order to implement monetary policy.

c. fluctuations in the world price of gold.

d. changes in the supply of and/or demand for dollars in the global currency market.

d. changes in the supply of and/or demand for dollars in the global currency market.

In an effort to promote the importance of a valuable education, the faculty and staff at the local community college are trained to ask each student about their career preferences, rather than suggest courses that may not benefit the student's future goals. Although it would be tempting to suggest courses just to increase the College's enrollment, employees know that it is more important to serve each student well, even if it means suggesting courses and/or degrees offered at other institutions. This approach is consistent with:
Choose one answer.

a. an integrity-based ethics code.

b. a compliance-based ethics code.

c. a response to a government mandate.

d. a personal responsibility commitment.

a. an integrity-based ethics code.

Which of the following terms describes someone who reports illegal or unethical behavior?
Choose one answer.

a. whistleblower

b. horn blower

c. watch tower sentinel

d. integrity watchdog

a. whistleblower

Compliance based ethics codes typically:
Choose one answer.

a. rely on laws and regulations outside the firm for guidance.

b. have a strong affinity for shared accountability among employees.

c. promote a "do-it-right" climate.

d. enable responsible employee conduct.

a. rely on laws and regulations outside the firm for guidance.

Which of the following indicates that U.S. businesses are demanding socially responsible behavior from their international suppliers?

a. The establishment of the Equal Opportunity Employment Commission

b. The decision of Wal-Mart to open stores globally

c. The decision of Phillips-Van Heusen to cancel orders from suppliers that violate its ethics code

d. The creation of the North American Free Trade Zone (NAFTA) between the U.S., Canada, and Mexico

c. The decision of Phillips-Van Heusen to cancel orders from suppliers that violate its ethics code

Corporate ________ covers issues such as setting minority hiring practices, manufacturing safe products, and minimizing pollution.

a. responsibility

b. philanthropy

c. diversity

d. structure and strategy

a. responsibility

The boxed material entitled "Reaching Beyond Our Borders" that told the story about Joe, the Motorola engineer, suggests that U.S. firms operating overseas are:

a. Not as flexible on social issues as local employees would like them to be.

b. Exploiting employees by working them long hours at low pay.

c. Complying with the ethical standards of the people they employ, in the countries in which they are operating.

d. Responding to their stockholders desire for profits.

c. Complying with the ethical standards of the people they employ, in the countries in which they are operating.

A(n) _______ -based ethics code defines corporate values; creates a supportive environment, and, stresses shared accountability among employees.
.

a. social

b. corporate responsibility

c. compliance

d. integrity

d. integrity

Ethical dilemmas in business:
.

a. force us to make poor choices.

b. always end up bringing out the best in us.

c. often force us to choose between equally unsatisfactory alternatives.

d. define us as being moral absolutists or moral situationalists.

c. often force us to choose between equally unsatisfactory alternatives.

Several outside groups regularly monitor the activities of Metro Chemical Corporation. These groups are interested in the firm's involvement and enforcement of their ethical and social responsibility policies. Who of the following is the <u>least likely</u> to be among the "watchdog" groups?
.

a. The financial officer of a church with funds invested in the chemical company.

b. Overseers from the World Trade Organization (WTO).

c. A student in environmental engineering attending a local college.

d. The president of the union representing the workers at the chemical company.

b. Overseers from the World Trade Organization (WTO).

Which of the following would be a unique focus of an integrity-based ethics code?
.

a. Increased control over employee actions.

b. Shared accountability among employees.

c. Increased penalties for code violators.

d. Improved awareness of the relevant laws.

b. Shared accountability among employees.

Which of the following industries has been deregulated?
.

a. Chemicals

b. Agriculture

c. Airlines

d. Steel

c. Airlines

Mini-Case<br/><br/>Brian and Sondra have just opened a new Cajun restaurant on the edge of town, Cajun Cookin' Inc. They own the land and building and have a brand-new kitchen as well as a lovely seating area, filled with mementos from the South. They have a liquor license and make wonderful Southern drinks. They are quite pleased that members of the community are helping their business grow by coming in for a meal or a drink after work. They are good businesspeople who pay their bills on time and as a result have great relationships with the vendors that supply them food.<br/>&#160;<br/>One day as Brian was speaking with one of his customers a shriek went up from the other side of the restaurant. When he rushed over, he found that one of his customers had spilled hot tea on her arm. If this customer was so inclined, she could __________ and the court would likely find in her favor.
.

a. sue Brian for breach of contract

b. sue the restaurant for negligence

c. sue the restaurant under statutory law

d. She can do nothing about this except not go to the restaurant ever again.

b. sue the restaurant for negligence

A government policy aimed at reducing the purchase of a specific good through increased taxes has been most often applied to:
.

a. beer.

b. sports cars.

c. white bread.

d. diet soft drinks.

a. beer.

Allison is concerned that she is not getting full disclosure of information from a mortgage broker who is hoping to refinance the mortgage on her house. Having recently studied business law, you suggest to Allison that she contact the ________________________ that was formed after the Dodd-Frank Wallstreet Reform and Consumer Protection Act became law.
.

a. Federal Trade Commission (FTC)

b. Consumer Financial Protection Bureau (CFPB)

c. Due Diligence Agency (DDA)

d. Financial Fairness Consortium (FFC)

b. Consumer Financial Protection Bureau (CFPB)

The number of personal bankruptcies has:
.

a. significantly decreased as a result of the Bankruptcy Reform Act.

b. increased.

c. nearly reached the level of business bankruptcies.

d. remained unchanged.

b. increased.

Your 15-year-old brother comes home with the great news that he has decided to buy his first car and has just agreed to give $10,000 to a complete stranger. He signed the contract and just needs to pay the stranger and pick up the car. Your dad is upset and calls the stranger to tell him your brother will not be buying the car. The stranger can:
.

a. sue your brother for breach of contract.

b. sue your dad for breach of contract.

c. sue your brother for specific performance.

d. do nothing.

d. do nothing.

Some economists advocate a ____________ on the consumption of such products as gasoline, liquor, cigarettes, and even soda pop, in the hope that consumers will think about how their purchases are having negative impacts on themselves and their environment.
.

a. progressive tax

b. sin tax

c. flat tax

d. tax credit

b. sin tax

A(n) __________ occurs when one party fails to follow the terms of a contract.
.

a. breach of contract

b. discharge of obligation

c. obligation failure of enforcement

d. infringement of contract

a. breach of contract

You and your boss agree to terminate your employment contract because you want to devote more time to school. This breach of contract would likely be resolved by:
.

a. a specific performance requirement.

b. the payment of damages.

c. a judge.

d. a discharge of obligation.

d. a discharge of obligation.

The body of law created by court decisions rendered by judges is called __________ law.
.

a. precedent

b. statutory

c. common

d. tort

c. common

Naomi is planning to invest in a new online franchise - the Novel Artist, Inc. The franchisor provides proprietary software and training for designing invitations and cards for special occasions such as weddings, graduations, and birth announcements. The franchisee is obligated to pay a monthly fee to the franchisor. Naomi will use the software to create her own special designs that she will ultimately feature on her website. She also has chat availability so she can accommodate customers with special requests. Order turn-around time must be fast. She can only take on as many clients as she can make good on delivery. An advantage of Naomi's online franchise is:
.

a. She has a limited territory.

b. She has a narrow product offering.

c. She does not need name recognition or marketing assistance.

d. She has an unlimited territory.

d. She has an unlimited territory.

In the Legal Briefcase box, "Virtual Companies,"
.

a. The box discusses the Vermont Teddy Bear Company and the difficulty the company experienced when transitioning from an S-Corporation to a C-Corporation.

b. The box talks about a newly created LLC in Vermont called the Virtual Company, where all official filing is electronic, and members contribute their skills through electronic communication.

c. The box discusses how the state of Vermont wants to attract business, yet refuses to permit the electronic submission of filing for any form of business ownership.

d. The box talks about the Vermont maple syrup industry and how due to the fact that it is a seasonal business, it cannot exist virtually. The labor intensive business requires the expertise of experienced tree tappers.

b. The box talks about a newly created LLC in Vermont called the Virtual Company, where all official filing is electronic, and members contribute their skills through electronic communication.

Marco is a franchisee with Daggies, a chain of sandwich shops. His business was doing well until several Daggies franchisees got in trouble and were forced to close their shops. Soon afterward, Marco's business deteriorated and he too was forced to close. This is an example of:
.

a. An economic shakeout at work.

b. The coattail effect.

c. The law of diminishing returns.

d. Management by exception.

b. The coattail effect.

In the Thinking Green box titled, "Play Ball but Play Green", The Washington Nationals baseball team is featured as a franchised business that demonstrates environmental stewardship by:
.

a. Replacing all sod in the stadium with astro-turf to conserve water.

b. Building a LEED certified building and initiating recycling programs.

c. Joining several other baseball franchises and only washing uniforms in phosphate-free detergents because the run-off eventually ends up in our drinking water supply.

d. Painting the steel beams and seats in the stadium "green" and continuously flashing the words "green" on the display monitors to remind everyone to use the waste cans and to clean around their seats before departing the stadium.

b. Building a LEED certified building and initiating recycling programs.

A(n) _________ occurs when one company buys the property and obligations of another company.
.

a. cooperative

b. hostile takeover

c. leveraged buyout

d. acquisition

d. acquisition

Compared to partnerships and sole proprietorships, a major <u>advantage</u> of the C (conventional) corporation as a form of business ownership is that it:
.

a. Has the ability to raise more money.

b. Is easier and less expensive to form.

c. Qualifies for simplified tax treatment.

d. Creates unlimited liability for its owners.

a. Has the ability to raise more money.

Mel, Tim, and Bill agreed to partner in a small rehab business. Initially, they were enthusiastic contributors until their first project took more work than Mel initially estimated; Tim wanted morning meetings and long lunch hours; and, Bill decided to go on vacation even though the project was not complete and ready to sell. As the Spotlight on Small Business box, titled, "The Ties That Bind" indicates,
.

a. It's smart to begin the partnership with honest communication of what each partner expects to give and get from the partnership.

b. Organize the business as a limited liability company to reduce the financial risks that put pressure on members of the partnership.

c. Designate one of the partners as the primary partner with final authority to call all the shots.

d. Enter into partnerships with people who have similar educational and cultural backgrounds and similar personalities.

a. It's smart to begin the partnership with honest communication of what each partner expects to give and get from the partnership.

Several years ago, Regis Corporation, a very large hair styling salon company purchased 60 "Your Father's Mustache" salons. Although this was initially an acquisition, the merging of these two businesses was a(n) ___________. Regis went on to purchase several hair care product companies. Joining forces with hair care product companies would represent a ____________.
.

a. conglomerate merger; horizontal merger

b. vertical merger; horizontal merger

c. horizontal merger; vertical merger

d. conglomerate merger; conglomerate merger

c. horizontal merger; vertical merger

When a sole proprietor dies:
.

a. The sole proprietor's heirs have the option of taking over the business.

b. The business is sold to a larger corporation.

c. The company continues to function as it always has.

d. The company always closes down.

a. The sole proprietor's heirs have the option of taking over the business.

_____________ are companies that are similar to S Corporations but are not restricted with similar eligibility requirements.
.

a. Regulated equity companies

b. Corporate cooperatives

c. Limited liability companies

d. Private drawing companies

c. Limited liability companies

A firm or individual providing financial capital to small businesses in exchange for an ownership stake in the company is called a:
.

a. corporate raider.

b. takeover specialist.

c. financial capitalist.

d. venture capitalist.

d. venture capitalist.

Located on Monsanto's world headquarters campus, the Nidus Center is a unique ___________ facility. The tenants are biotechnology companies who are at various stages of product development. The agricultural giant, Monsanto, the Danforth Foundation, Washington University St. Louis, St. Louis University, and several venture capital firms contribute seed money for these small start-up ventures that receive approval to further develop their ideas at the Nidus Center.
.

a. incubator

b. Intrapreneurial

c. enterprise zone

d. micropreneurial

a. incubator

As a result of corporate downsizing, Alex lost his job as an information systems manager for a large telecommunications company. A bonafide computer geek in his own right, Alex knew that several of his past company contacts often outsourced their computer problems. He decided it was a good time to test the waters and see if he could secure enough computer clients to be in business for himself. His success demonstrated that:
.

a. starting your own business can quickly provide security and profits.

b. people always tend to hire people they know from past associations.

c. the service sector is not an area of significant growth.

d. successful big businesses often create profitable opportunities for small businesses.

d. successful big businesses often create profitable opportunities for small businesses.

The U.S. government's Immigration Act of 1990:
.

a. encouraged entrepreneurs to come to the U.S. through "investor visas".

b. established a government program to teach American workers displaced by immigration how to start their own businesses.

c. established guidelines to help entrepreneurs recruit legal aliens as a source of low cost labor.

d. proposed an exchange program for American and European entrepreneurs to temporarily live internationally in order to open up foreign branches for their businesses.

a. encouraged entrepreneurs to come to the U.S. through "investor visas".

A successful web-based strategy that helps a business spread the word about its web site and products is called _____________.
.

a. wildfire marketing

b. "its all about the buzz"

c. social marketing

d. affiliate marketing

d. affiliate marketing

One of the challenges of running a home-based business is:
.

a. an increase in business risk.

b. managing the extra time on your hands.

c. keeping work and family tasks separate.

d. burdensome tax laws.

c. keeping work and family tasks separate.

Peppy knows a lot about marketing, but not much about the legal or financial aspects of starting a new business. He wants to consult with a lawyer and accountant, but his budget is tight with all of the expenses involved in getting Peppy's Pizzazzeria up and running. Peppy should:
.

a. delay talking with a lawyer and accountant until the business has established a positive cash flow for at least one year.

b. trust his basic instincts and try to put it together without the advice of lawyers and accountants.

c. consult with a lawyer and accountant even though the budget is tight.

d. immediately hire full time lawyers and accountants for his staff.

c. consult with a lawyer and accountant even though the budget is tight.

According to SBA guidelines, a manufacturing firm with 1,000 employees:
.

a. would be classified as a large firm in the industrial sector.

b. may be classified as a small business depending upon the size of other firms in the industry.

c. is too small to achieve the efficiencies of large scale production.

d. is classified as an S corporation.

b. may be classified as a small business depending upon the size of other firms in the industry.

Small businesses are important to the U.S. economy because:
.

a. they fill-in the gaps when large businesses want to let workers go on vacation; or when large businesses want to temporarily cease production

b. banks and other financial services companies would not have borrowing customers, because small businesses borrow more than large businesses

c. they pay most of the tax revenue collected by the U.S. government

d. they create over 60% of new jobs each year and generate over 50% of the U.S. GDP

d. they create over 60% of new jobs each year and generate over 50% of the U.S. GDP

Successful entrepreneurs are self-nurturing. This means they:
.

a. look to others for strength and encouragement.

b. self-finance their business with no assistance from others.

c. perform all business operations by themselves.

d. believe in themselves and their ideas.

d. believe in themselves and their ideas.

How are managers today different from managers in the past?
.

a. Managers today are more likely to reprimand workers

b. Managers in the past would use praise and gentle suggestions

c. Managers in the past were less loyal to their employer

d. Managers today emphasize teamwork

d. Managers today emphasize teamwork

The revolution in management that is currently underway suggests that the most effective managers of the future will:
.

a. be very strict in their treatment of workers.

b. emphasize individual initiative rather than teamwork.

c. specialize in performing one of the four management functions.

d. emphasize team work.

d. emphasize team work.

__________ planning determines the major goals of an organization and lays the foundation for obtaining and using resources to achieve those goals.
.

a. Strategic

b. Contingency

c. Central

d. Tactical

a. Strategic

One difference between managers and leaders is that:
.

a. managers are found in businesses while leaders operate in nonprofit organizations.

b. mangers work to achieve stability while leaders embrace change.

c. managers use an autocratic approach while leaders embrace a democratic style.

d. all employees can manage, but only top managers can lead.

b. mangers work to achieve stability while leaders embrace change.

Which of the following is involved in setting work standards and schedules needed to implement the firm's tactical objectives?
.

a. Mission statement

b. Tactical planning

c. Operational planning

d. Contingency planning

c. Operational planning

A(n) __________ is used by an organization to show who is accountable for the completion of specific work and who reports to whom.
.

a. balance sheet

b. Venn diagram

c. stakeholder outline

d. organization chart

d. organization chart

___________ skills involve a manager's ability to picture the organization as a whole and the relationship among its various parts.
.

a. Creative

b. Technical

c. Conceptual

d. Autonomic

c. Conceptual

When we think of successful music entertainment groups of the past sixty years, the Beatles&#153; almost always appear in the top 5! In the early days, the entertainment group's life cycle could have ended as so many other rock groups do - here today, gone tomorrow. The four musicians were definitely creative and passionate about their craft and genre of music. As the informal leader of the group, John Lennon _____________ the others to make important compositional contributions. All four members had the opportunity to create musical compositions and receive copyright credit for their contributions.
.

a. transformed

b. enabled

c. empowered

d. commanded

c. empowered

Jamal is part of a management group that is examining whether his company, State Engineering, should offer some important new services that would broaden its business by appealing to a different group of potential clients. Jamal's group is involved with:
.

a. contingency planning.

b. operational planning.

c. strategic planning.

d. tactical planning.

c. strategic planning.

By completing the courses needed to obtain a college major in accounting, marketing, or some other field, a student can go a long way toward acquiring the _________ skills managers need to rise through the ranks of their area of specialization.
.

a. autocratic

b. technical

c. human relations

d. secondary

b. technical

Mini-Case<br/><br/>Angelica Canizales is the CEO of Mucho Dinero Enterprises. Sales have declined for four consecutive years and the firm's accountants have reported net losses in each of the last two years. Employees appear demoralized and frustrated. Recently, Angelica met with managers from marketing, production, and finance to listen to their views regarding the company's problems. The managers unanimously agreed that the main problem was a lack of communication between the several functional areas of the business. Each manager felt that the firm could increase quality and customer satisfaction with better interdepartmental communication. Angelica also met with marketing and production employees to get their respective opinions on the problems of the firm. One employee from the production department observed that, "We have so many layers of management that it takes forever to make decisions." An employee from marketing complained that, "This place is so bogged down with rules and regulations that there is no opportunity to be creative." Several employees shared their opinions regarding their bosses. Specifically, one employee expressed "My boss never pays attention to my ideas. He just issues orders and expects me to obey them." Angelica decided, after listening to many comments from employees, suppliers, and customers, that the only way to end Mucho Dinero's slide was to completely rethink the firm's structure and to make radical changes in its organization. She presented her ideas to the board of directors, promising to voluntarily resign if her efforts to reorganize did not return the firm to profitability.<br/>&#160;<br/>Angelica's decision to completely redesign Mucho Dinero's organization indicates that she believes the best approach to her firm's problems is:
.

a. competitive benchmarking.

b. flexible departmentalization.

c. restructuring.

d. organizational therapy.

c. restructuring.

Multinational pharmaceutical companies who during the past 20 years preferred to contract with companies in India and other places with cheap labor are turning back to the U.S. to produce their products. The recent popularity of _______________ is due to compliance issues and legal issues, as well as the quality of output.
.

a. market transition

b. market transformation

c. outsourcing

d. insourcing

d. insourcing

In recent years, large organizations have tried to improve their efficiency in communication and decision making by:
.

a. creating specific rules for everyone to follow.

b. eliminating several layers of management.

c. restructuring into a bureaucratic organization.

d. reducing the span of control for managers.

b. eliminating several layers of management.

During the past six years, the marketing department manager at Creative Concepts International made a strong push to hire mover/shaker professionals that had superior performance records prior to joining this company. It didn't take long for these enthusiastic marketers to recognize the many talents within their department. They marveled at how much they were like each other and how they seemed to agree with each other's work styles and ideas. After a while, it became difficult for others in the organization to present to this group. If the idea did not originate within the marketing department, marketers did not give it much credence. Management counselors would describe this phenomenon as _____.
.

a. departmentalization clique

b. inter-office competition

c. forward thinking friction

d. groupthink

d. groupthink

In open organizations the informal organization can be:
.

a. a hindrance to effective management.

b. an asset that promotes harmony among workers.

c. a roadblock to the corporate culture.

d. part of the formal organization.

d. part of the formal organization.

Carlos is the person to see in the welding department if you are a new employee. While he is not a manager, he is the person that most of the others in the department look to for advice and assistance. Carlos is an important member of the firm's:
.

a. supervisory management.

b. participatory control.

c. informal organization.

d. closet cabinet.

c. informal organization.

Heather works as a sales representative for the Westerly Company. She really enjoys working for Westerly, because the company treats her and other sales representatives as highly valued employees. Sales reps at Westerly are given freedom and flexibility in their relationships with customers. While there are only a few layers of management at Westerly, Heather has found that these managers try their best to support and assist her efforts. Based on Heather's experience, it appears that Westerly is a(n):
.

a. bureaucratic organization.

b. inverted organization.

c. tall organization.

d. casual organization.

b. inverted organization.

Max Weber favored which of the following?
.

a. Inverted organizations

b. Worker participation in decision making

c. Staffing and promotions based on qualifications

d. Flat organizations

c. Staffing and promotions based on qualifications

Which of the following is an advantage of a line organization in a large business?
.

a. It does not require specialists to advise people along the line

b. Responsibility and authority are clearly defined

c. Each worker has several supervisors

d. It is very flexible

b. Responsibility and authority are clearly defined

Which of the following is considered to be an advantage of functional departmentalization?
.

a. Employees begin to identify with their department and its goals rather than with the goals of the entire organization

b. People in the same department tend to think very differently

c. Departments are isolated from one another

d. Employee skills can be developed in depth

d. Employee skills can be developed in depth

Production management is the traditional term used to describe all the activities managers do to help their firms create:
.

a. resources.

b. goods.

c. services.

d. equities.

b. goods.

Experts in operations management for service industry type businesses stress:
.

a. using records from accounting to determine what business to go after.

b. relying on one's individual operation as opposed to developing partnerships.

c. training employees on quality management.

d. training employees to always adhere to only one way of doing things.

c. training employees on quality management.

Contemporary operations management planning is an <i>interfirm</i> process. This means:
.

a. the process must integrate all of the functional units of a firm's operation, including production, marketing, finance, and logistics.

b. the process is a confidential plan that is not shared with suppliers or customers. It stays within the firm.

c. it is a process where several firms work closely together to produce goods and services, and anticipate a changing environment.

d. it is a process that seeks stability by adhering to top down management.

c. it is a process where several firms work closely together to produce goods and services, and anticipate a changing environment.

SitRite Furniture Company uses labor and machinery to transform wood, plastic, metal and cloth into comfortable chairs, sofas, and love seats. This process creates:
.

a. form utility.

b. place utility.

c. use facility.

d. intangible productivity.

a. form utility.

For most service businesses the quality standard has become:
.

a. providing prompt and predictable service.

b. providing a competitive level of service at the lowest cost.

c. delighting customers by anticipating their needs.

d. less important than it is for manufacturing businesses.

b. providing a competitive level of service at the lowest cost.

Initially, ATM's (automated teller machines) were introduced so that customers could make withdrawals from their bank accounts, day or night. As the technology improved, the machines offered a variety of services including the acceptance of deposits, the ability to get credit card advances, check your bank account balances, and even purchase prepaid cell phone credit. ATMs now offer:
.

a. flexible manufacturing for its customers.

b. lean services because it only needs to keep a certain amount of cash in each machine.

c. technology similar to CAD.

d. faster service and mass customization.

d. faster service and mass customization.

Operations management in the service sector is focused on creating:
.

a. good experiences for those who use the service.

b. jobs for the local community.

c. additional customer expectations.

d. inexpensive ways to get things done.

a. good experiences for those who use the service.

____________ examines statistical samples of product components at each stage of the production process and plots the results on a graph in order to spot and any variances from desired quality levels.
.

a. CAD/CAM

b. Econometrics

c. Analysis of variance

d. Statistical process control

d. Statistical process control

A PERT network consists of activities linked by arrows. Suppose two of the activities on the network are labeled "A" and "B". An arrow from "A" to "B" indicates that:
.

a. the same resources used to complete "A" are also used to complete "B".

b. "A" and "B" can be completed at the same time.

c. "A" takes longer to complete than "B".

d. "A" must be completed before "B" can begin.

d. "A" must be completed before "B" can begin.

A firm that is certified as meeting both ISO 9000 and ISO 14000 standards has demonstrated:
.

a. world-class management of both quality and environmental standards.

b. sound financial and marketing practices.

c. ethical treatment of both customers and employees.

d. that its recruitment and training programs for employees protect and promote basic human rights.

a. world-class management of both quality and environmental standards.

__________ involves computers directly in the production process.
.

a. CAD

b. CAM

c. AMDA

d. AMCAP

b. CAM

In ___________, materials are physically or chemically changed to produce a product.
.

a. process manufacturing

b. assembly processes

c. utilitarian production

d. diffusive manufacturing

a. process manufacturing

Efforts to redesign and rebuild America's manufacturing base are likely to:
.
a. fade in importance as foreign manufacturers continue to gain control of important markets.

b. continue to be an important issue in the near future.

c. focus on government efforts to foster performance in a few key industries.

d. give way to an intense effort to convert the U.S. to an entirely service-based economy.

b. continue to be an important issue in the near future.

The Ritz-Carlton hotel offers restaurants with the finest service, elevators that run smoothly, and a front desk that processes people quickly. Many times fresh-cut flowers are in the lobbies and dishes of fruit are in each room. __________ is responsible for implementing these customer benefits.
.

a. Human resources management

b. The management staff

c. Operations management

d. Production management

c. Operations management

Most new manufacturing facilities use:
.

a. continuous processes.

b. intermittent processes.

c. traditional processes.

d. synthetic processes.

b. intermittent processes.

Which of the following statements best reflects the approach state and local governments take to influence the location decisions of businesses? State and local governments:
.

a. often engage in fierce competition to attract businesses, including the offer of tax breaks, zoning changes, and financial aid

b. try to avoid competition with other areas, because such competition usually backfires and creates ill-will

c. no longer pursue new businesses, because they have found that attempts to attract businesses are usually too expensive to justify the results

d. work primarily through the federal government and the Small Business Administration to obtain financial assistance for firms seeking to locate in their area

a. often engage in fierce competition to attract businesses, including the offer of tax breaks, zoning changes, and financial aid

Cooltreet, Inc., combines sugar, cream, eggs, and flavorings, then churns and cools the resulting mixture to a very low temperature until it freezes, creating ice cream. The method Cooltreet uses is an example of:
.

a. an analytic production system.

b. a process manufacturing.

c. an assembly process.

d. a symbiotic process.

b. a process manufacturing.

___________ utility is the value added by the creation of finished goods and services using raw materials, components, and other inputs.
.

a. Manufacturing

b. Marginal

c. Consumption

d. Form

d. Form

Courtney was planning a new product launch. She knew that the art department was ready to work on the promotional pieces now, but they couldn't start until the strategy group established the price point and the purchasing group obtained the paper needed to make the promotional piece. Establishing price points would take about a week and was dependent on manufacturing getting the costs to the strategy group. This was expected a week from today. The purchasing group indicated the paper could be obtained locally the same day it was requested. Assuming things go as planned and based on this information, when will the art department be able to begin work on the promotional pieces?
.

a. Immediately

b. 1 week

c. 2 weeks

d. 1 month

c. 2 weeks

Operations management is a specialized area in management that converts resources into:
.

a. services, rather than goods.

b. goods, rather than services.

c. both goods and services.

d. financial data.

c. both goods and services.

___________ is the characteristic of work concerned with the degree of freedom, independence and discretion an employee has in scheduling work and determining procedures.
.

a. Autonomy

b. Interdependence

c. Feedback

d. Task significance

a. Autonomy

Matt works for a sports marketing firm. He feels that he has been treated unfairly by the organization. He helped three other employees organize a series of successful street hockey tournaments in different regions of the country. While the other employees were given a bonus and corporate recognition, his efforts were ignored. According to equity theory, Matt is likely to respond by:
.

a. ignoring the perceived inequity.

b. reaching the conclusion that his treatment is not related to the treatment of others.

c. reducing his efforts on future projects.

d. threatening the boss.

c. reducing his efforts on future projects.

_________ is the term William Ouchi used to refer to the management approach typically used by firms in the United States.
.

a. Type A

b. Type Z

c. Theory Q

d. Theory J

a. Type A

Maslow placed _________ needs at the highest level of his hierarchy.
.

a. self-actualization

b. esteem

c. deferred

d. social

a. self-actualization

Which of the following is <u>not</u> considered one of Herzberg's strategies for creating enthusiasm at work?
.

a. Focus on making the job interesting

b. Similar pay and benefits for a similar job

c. Company and management support in achieving employee objectives

d. Provide opportunities for advancement and added responsibility

b. Similar pay and benefits for a similar job

A strength of Generation X managers is likely to be their:
.

a. loyalty to the firm.

b. individualistic approach to problem solving.

c. ability to provide feedback to employees.

d. willingness to sacrifice other aspects of their lives to achieve success in the workplace.

c. ability to provide feedback to employees.

Herzberg's research indicated that employees are motivated by job content. Contemporary managers focus on _____________ by increasing the significance of the job, and even providing the employee with important feedback.
.

a. rotating the job

b. enriching the job

c. simplifying the job

d. reducing the responsibilities in the job

b. enriching the job

Douglas McGregor described two very different sets of managerial attitudes about employees, which he called:
.

a. the positive view and the negative view.

b. the macro perspective and the micro perspective.

c. Theory X and Theory Y.

d. individualism and collectivism.

c. Theory X and Theory Y.

According to Herzberg, a sense of achievement, earned recognition, and interest in the work itself were all:
.

a. important motivators.

b. hygiene factors.

c. ways for employees to meet their social needs.

d. consistent with his Theory X approach to motivation.

a. important motivators.

__________ is the degree to which a job requires doing a task with a visible outcome from beginning to end.
.

a. Task significance

b. Autonomous responsibility

c. Job specification

d. Task identity

d. Task identity

Probably the most controversial program enforced by the Equal Employment Opportunity Commission concerns:
.

a. mandatory retirement.

b. affirmative action.

c. equal pay reporting.

d. green card requirements for illegal aliens.

b. affirmative action.

Mario's business was growing at a steady rate, but he knew he could do better! In order to capture more business, he would have to hire a few more sales professionals to sell into new markets. As he pondered his staffing needs, his sister who worked in HR informed him that he needed to do a <i>job analysis</i> before hiring. Which of the following would be a logical part of a job analysis for a sales position?
.

a. Asking the current sales reps to create a log of their daily and weekly activities

b. Asking the HR specialist to create an online application for the position(s)

c. Training new recruits

d. Determining how many sales reps other companies typically have on staff

a. Asking the current sales reps to create a log of their daily and weekly activities

Which of the following statements about home-based work and telecommuting is most accurate?
.

a. Although home-based work may become very popular in the future, only a small percentage of workers currently work at home on a regular basis.

b. Telecommuting offers big advantages for many workers, but is likely to increase costs for employers significantly.

c. Home-based work tends to increase the productivity of almost all workers, since people tend to be more productive when they are comfortable and can work flexible hours.

d. Home-based work allows workers to choose their own hours and interrupt work for child care and other tasks, but this freedom and flexibility can create problems for some workers.

d. Home-based work allows workers to choose their own hours and interrupt work for child care and other tasks, but this freedom and flexibility can create problems for some workers.

The Creative Director at Image First Promotion Company got word yesterday that the firm lost the Hottie Potatee account. As its second best customer, the Director must quickly perform damage control and unfortunately dismiss two creative writers and one web development content provider. As he prepares to call each of them to his office and perform the dismissals, he decides to make one final call to the company HR manager to make certain that he is doing and saying the right things. The HR manager will <u>disagree</u> with which of the following statements?
.

a. He will offer each employee a three-month severance package, as long as they agree to sign a non-compete agreement for that time period.

b. He will be consistent in his remarks to the three employees.

c. He will create a story that their jobs are being eliminated due to new technology since revealing that the firm lost a major account could tarnish the image of the firm.

d. Assure each employee that they can count on him for future job references and that he will be honest with anyone inquiring as to why they were dismissed.

c. He will create a story that their jobs are being eliminated due to new technology since revealing that the firm lost a major account could tarnish the image of the firm.

One of the most important responsibilities for professionals in the human resources field is:
.

a. understanding the ethical perspective of each employee.

b. filing employee medical claims.

c. to always "right past wrongs."

d. staying current with employment-related legislation.

d. staying current with employment-related legislation.

Which of the following workers would be the best example of a contingent worker?
.

a. an assembly line worker who belongs to a union and has 17 years of seniority

b. an accountant hired to help during the busy tax season

c. an elementary school teacher who just received tenure

d. an electrical engineer who frequently travels out of the country to the various manufacturing facilities owned and operated by his firm

b. an accountant hired to help during the busy tax season

A firm would implement a policy of holding exit interviews if it wanted to:
.

a. find out why so many of its good employees were quitting.

b. implement a golden handshake policy.

c. allow immediate supervisors one more chance to convince retiring workers to stay on the job.

d. make sure workers who agreed to telecommute understood their new responsibilities.

a. find out why so many of its good employees were quitting.

Corporate managers who supervise, coach, and guide lower-level employees and serve as their organizational sponsors are called:
.

a. networkers.

b. role models.

c. mentors.

d. corporate guides.

c. mentors.

As an important step in the human resource selection process, which of the following will expedite the process of conducting background investigations and promises to get suitable results?
.

a. Hiring services such as LexisNexis to conduct criminal checks and driving records.

b. Dedicating one human resource expert to making personal calls and doing all the background checks.

c. Minimalizing the types of questions the company asks at this juncture.

d. If there is a need to skip one of the selection process steps, most companies have found that this one can be eliminated.

a. Hiring services such as LexisNexis to conduct criminal checks and driving records.

Which of the following is a challenge that is facing the human resource managers of today?
.

a. too many unemployed scientists and computer engineers

b. an increasing number of Gen Yers in the workforce

c. a shift in employee attitudes toward work

d. an increased demand for uniformity in benefits offered to employees

c. a shift in employee attitudes toward work

Almost overnight, several police persons, all members of the police force of the growing suburb of Mayberry called in sick. As the dispatcher took those calls - one right after the other, she speculated that there could be more to this story than she was hearing. In fact, she thought it might be related to the emotional banter she heard the night before in the locker room as several members of the force were leaving their shifts. The group was not happy with the recent changes in scheduling, the excessive over-time hours, and, management's reluctance to begin negotiations on a new benefits package. She heard one person saying, "It's time for a mental health day!" Although it is illegal for police to strike, they may be claiming to have _______.
.

a. Saturday nite fever

b. the blue flu

c. a lockout

d. a shutterbug

b. the blue flu

A labor dispute between the AFL-CIO and Gainesville Brewery is into its eighth month. The AFL-CIO has called on its membership and the general public to refuse to purchase Gainesville products. The AFL-CIO is calling for a:
.

a. general boycott.

b. secondary boycott.

c. primary boycott.

d. public boycott.

c. primary boycott.

The leadership of _____________ was instrumental in bringing about the merger between the American Federation of Labor and the Congress of Industrial Organizations in 1955.
.

a. George Meany

b. Terence K. Powderly

c. Ronald Reagan

d. Samuel Gompers

d. Samuel Gompers

A key difference between a mediator and an arbitrator is that:
.

a. a mediator is appointed by labor and management, while an arbitrator is appointed by the federal government under terms set forth in the Taft-Hartley Act.

b. a mediator is an unpaid volunteer, while an arbitrator is a paid professional.

c. an arbitrator can settle a labor-management dispute by rendering a binding decision, while a mediator can only make suggestions and encourage the two sides in a dispute to continue negotiating.

d. a mediator is a lawyer who represents either labor or management in a labor dispute, while an arbitrator is an impartial advisor who listens to both sides of the dispute and offers suggestions that help the two parties reach a mutually acceptable agreement.

c. an arbitrator can settle a labor-management dispute by rendering a binding decision, while a mediator can only make suggestions and encourage the two sides in a dispute to continue negotiating.

Closed shops were declared illegal by the:
.

a. Taft-Hartley Act.

b. Norris-LaGuardia Act.

c. National Labor Relations Board in 1929.

d. U.S. Supreme Court in 1946.

a. Taft-Hartley Act.

In a(n) _______, all of the members are skilled specialists in a particular trade.
.

a. ESOP

b. craft union

c. industrial union

d. trade federation

b. craft union

If management and union officials cannot resolve a grievance, a(n) _________ is asked to listen to the arguments of each side and to make a decision that both sides will have to comply with.
.

a. confirmer

b. counselor

c. arbitrator

d. mediator

c. arbitrator

The justification for dues or fees paid by nonunion members to the union in a(n) _________ shop is that the union represents all workers in collective bargaining, not just those who belong to the union.
.

a. closed

b. agency

c. fee simple

d. union

b. agency

During the first decade of the 21<sup>st</sup> century, the AFL-CIO saw its membership significantly decline when ___________________________________.
.

a. Seven of its member unions split to form a new union, the CtW [Change to Win].

b. Its large representation decided to merge with the manufacturers and craft unions.

c. Members looking for a better bargain with respect to membership dues elected to form independent unions.

d. The stronger member unions refused to acknowledge international member groups, and essentially voted them out of the union.

a. Seven of its member unions split to form a new union, the CtW [Change to Win].

Under a(n) ___________ shop agreement, workers must belong to the union before they are hired.
.

a. open

b. union

c. agency

d. closed

d. closed

The __________ was set up as a federation of many separate craft unions.
.

a. Knights of Labor

b. Committee of Industrial Organizations

c. League of Unions

d. American Federation of Labor (AFL)

d. American Federation of Labor (AFL)

The first federal minimum wage was established by the:
.

a. Fair Labor Standards Act.

b. Wagner Act.

c. Minimum Compensation Act.

d. Pay Equity Act.

a. Fair Labor Standards Act.

The Industrial Revolution was characterized by a(n):
.

a. increased emphasis on production, resulting in longer hours and less job security for most workers.

b. migration of manufacturing jobs from the Midwest and Northeast to the South as firms began locating in areas where labor costs were lower.

c. rapid improvement in the wages and working conditions of most workers, resulting in a decline in the need for labor unions.

d. movement away from scientific management, and a greater acceptance of the ideas of Herzberg and Maslow.

a. increased emphasis on production, resulting in longer hours and less job security for most workers.

Drug problems among workers is costing the U.S. economy upwards of ______ in lost work, health care costs, and even crime and accidents.
.

a. $100 million

b. $50 billion

c. $414 billion

d. $50 thousand

c. $414 billion

One strategy unions must adapt in order to grow in the future is to:
.

a. find ways to appeal to white-collar, female, and foreign-born workers.

b. find ways to prevent foreign companies from entering the U.S. market.

c. go back to the old methods of aggressive tactics and confrontation that were used successfully in the past.

d. emphasize recruiting efforts in the manufacturing sector of the economy.

a. find ways to appeal to white-collar, female, and foreign-born workers.

The _________ Act established the National Labor Relations Board.
.

a. Wagner

b. Taft-Hartley

c. Norris-LaGuardia

d. Fair Labor Standards

a. Wagner

Bob believes that management is treating him unfairly because of his efforts to organize a vote for union representation. Which organization should Bob contact to report his concerns?
.

a. Federal Board of Labor Rights

b. National Labor Relations Board

c. Federal Trade Commission

d. Federal Commission on Unfair Labor Practices

b. National Labor Relations Board

Mini-Case<br/><br/>The workers at Endrun Corporation are not affiliated with a union. Until recently, the workers felt they were well paid and treated fairly by the company, so they had little interest in seeking union representation. However, worker morale at Endrun has declined steadily since the board of directors fired the old CEO last year and replaced him with Ty Runt, a no-nonsense, autocratic manager with a reputation for cutting costs. As soon as he took over, Ty fired other members of the old top management team and replaced them with people who shared his views. Together, the new management team made a series of moves that did not sit well with Endrun's workers. First, they announced changes in work procedures designed to speed up the production line. Many workers complained that the new methods cut corners and were unsafe, but management refused to listen. A few months after changing work methods, the company told workers that it was reducing their health benefits. This led to even greater worker unrest. Finally, just a few weeks ago, workers received word that the wages of all production line employees would be cut by 6 percent. Many employees felt this was the last straw, especially since the company's board of directors recently approved big salary increases and more lucrative stock option plans for Ty and his management team. A spokesperson for the board explained that the raises were justified because of the management team's "outstanding efforts to reduce costs, increase productivity, and improve the company's profits."<br/><br/>Several disgruntled employees, led by Ima Striker and Boyd Cotter, now believe it is time to obtain union representation. Top managers at the company have hinted that workers who actively participate in the union campaign may be among the first workers laid off if the company decides to downsize. Ima and Boyd are not intimidated by these management threats. "I wish we didn't have to do this," Ima recently told many of her fellow workers at the plant. "But someone has to stop Ty Runt and his team from ruining our jobs."<br/>&#160;<br/>After gaining union representation, any workers with complaints regarding promotions, layoffs, and job assignments will file a(n) ________ with their shop steward.
.

a. grievance

b. arbitration request

c. injunction

d. yellow-dog contract

a. grievance

The steps Ima, Boyd and their fellow workers must take to get the union legally recognized as the authorized bargaining agent are parts of the __________ process.
.

a. accreditation

b. arbitration

c. certification

d. collective bargaining

c. certification

The Taft-Hartley Act:
.

a. established the first minimum wage.

b. allowed individual states to pass right-to-work laws prohibiting compulsory union membership.

c. required management to bargain in good faith with union representatives.

d. set up the process by which unions could be recognized as the exclusive bargaining agents for a group of workers.

b. allowed individual states to pass right-to-work laws prohibiting compulsory union membership.

The significant increase in consumer demand following World War II marked the beginning of the:
.

a. production era.

b. selling era.

c. marketing concept era.

d. customer relationship era.

c. marketing concept era.

Understanding consumers in marketing is considered so important that a whole area of marketing called _____________________ emerged.
.

a. customer programming

b. consumer behavior

c. individual benchmarking

d. customers competency

b. consumer behavior

A consumer's decision-making process is influenced by his/her _________, consisting of those people who help shape the consumer's beliefs, attitudes, values or behavior.
.

a. reference group

b. focus group

c. target audience

d. social class

a. reference group

Which of the following describes individuals that want goods and services for personal consumption and have the resources to buy them?
.

a. secondary market

b. business-to-business market

c. market segmentation

d. consumer market

d. consumer market

A comparison of the marketing concept and customer relationship management indicates that customer relationship management:
.

a. and the marketing concept are in fact identical.

b. attempts to improve profits by keeping quality high, while the marketing concept attempts to improve profits by a careful design of the promotional mix.

c. turns the marketing concept upside down. The marketing concept emphasized that marketing was the most important function performed by a firm, but customer relationship management views management to be the most important function.

d. extends the marketing concept by calling for the firm to learn more about its customers so that it not only satisfies them, but exceeds their expectations over time.

d. extends the marketing concept by calling for the firm to learn more about its customers so that it not only satisfies them, but exceeds their expectations over time.

People with unsatisfied wants and needs who have both the ability and the willingness to buy are:
.

a. a market.

b. stockholders.

c. a profit center.

d. a marketing mix.

a. a market.

A ________ marketing strategy develops products and promotions designed to please large groups of people.
.

a. volume

b. mass

c. relationship

d. value

b. mass

____________ is the process of identifying factors that can affect marketing success.
.

a. Environmental scanning

b. Target marketing

c. Niche marketing

d. Segmentation analysis

a. Environmental scanning

Firms that adopt a relationship marketing strategy attempt to:
.

a. develop products that meet the specific requirements of individual customers.

b. maximize their market share by designing products that appeal to large numbers of customers.

c. develop their promotional efforts utilizing mass media such as television, newspapers and radio in order to relate to a large audience.

d. maximize market share by controlling production costs and maintaining low prices.

a. develop products that meet the specific requirements of individual customers.

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