business final

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Which statement is most accurate about the impact of business on society?

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Which statement is most accurate about the impact of business on society?

Businesses can have a positive impact on both standard of living and quality of life.

Eve and 3 of her friends enjoy perfumes. Eve made scented candles as gifts for her friends. Her friends encouraged Eve to create more and sell them online. Eve has been filling orders and turning a profit, Eve is proof that:

When you successfully fill a market need, you can make money.

Noliva is a small and poor nation, but its current president has a genuine desire to create more wealth for Noliva citizens. The president has recieved many recommendations from his advisors, which is most likely to create the most wealth for N?

Establish a business environment that promotes and rewards entrepreneurship.

Nick is a recent finance graduate who has two passions: music and finance. Upon graduation, he was offered an opportunity to join a struggling rock band with a lot of potential, or a job at a large well-established financial services company. By joining the band, he will forgo which of the following?

Added benefits such as health insurance provided to employees of large corporations.

Adam Ripley sells custom bicycles. Adam buys several bike parts including wheels and tires from the Good Treads Company. Although several government—supported regulations help Adam in his business, regulations that make it easy for Adam's business to enjoy good vendor relationships are:

Laws that support enforceable contracts between firms.

Marla Staples is concerned with identity theft. One of the ways that she can protect her

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information from leaking—out to the wrong hands is:

Install antivirus software, firewalls, and anti-spyware software on her computer.

Which of the following statements best describes how firms must treat their front-line workers in order to remain competitive? Front-line workers must be:

Empowered with the authority to respond quickly to the unmet needs of customers

St. Claire Hospital is considering a program that would allow some of its workers to use

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flextime. One group of workers who would probably benefit from flextime is:

Single-parent families.

Laura and Tim McNash recently moved to North Carolina on a three-acre home site. They purposefully purchased their home within biking distance to the university where they are both employed, and their bikes each have room for two cloth bags for groceries if they need to purchase food on the way home, although they plan to grow much of their own. Laura and Tim are examples of a growing number of young people who:

Want to change their lifestyle to be more in tune to saving energy.

Jenna Leigh is an information savvy, 20-something person who is trying to select between two marketing job offers. She can either join a company that makes small hammers and screwdrivers for the do-it-yourself hardware store business, or she can join a company developing the fourth generation cell phone service. She is quite impressed that the hardware business is growing quite nicely in China, Mexico, and India where people are starting to expand their living spaces. She is also aware of:

An information—based global revolution that might make her career at a telecommunications company more lucrative in the long run.

Which of the following statements would a follower of Adam Smith be most likely to make?

lf people are given the freedom to follow their own interests, theoretically their efforts will lead to economic growth that benefits society as a whole.

For many years, Congressman Ricardo Perez has called for more government regulation of business. "After all," the Congressman said recently, "businesspeople are out to make a profit, not to create jobs or serve their customers. The government must pass more laws to require businesses to take the interests of consumers and workers into account." From these comments, it is clear that Congressman Perez:

Does not accept the "invisible hand" idea brought forth by Adam Smith.

Patrick lives in a nation whose government embraces capitalism. He owns his own home and car, as well as his own business and building. Patrick maintains ownership due to:

The right to own private property.

The market price of apples is currently rising. In a free—market economy, the most likely explanation of this price change is that:

There is a shortage in the market for apples.

Jorge Martinez is a well—educated entrepreneur who operated a small business in his home country of Florentina. At the encouragement of his American relatives, Jorge recently immigrated to the United States and applied for U.S. citizenship. "ln Florentina, tax rates were very high," Jorge complained. "The government used the taxes I paid to finance all sorts of social programs to help the less fortunate. While this is a noble goal, it has really undermined the profit incentive of individuals such as me. I really feel that these high taxes have stifled economic growth." Jorge's comments illustrate the reason many socialist countries are experiencing a(n):

Brain drain.

The prime minister of the nation of Urbania has called for Urbania's legislature to enact new

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legislation designed to shift his country away from socialism toward a more capitalistic system. The Prime Minister acknowledges that such a radical change will entail some hardships, and that some citizens will be unhappy with the changes. The most likely source of dissatisfaction with a move toward capitalism is:

A trend toward unequal distribution of wealth.

Several years ago, the nation of Florentina had a government-owned telecommunication system that lagged far behind other nations. In several of its rural areas, there was only one phone for an entire village of people. Government taxes collected for the purpose of maintaining the telephone system were very meager, so the notion of expanding service was almost impossible. The government of Florentina decided to sell the phone company to a private firm. The private firm expanded rapidly. It reported that even poor consumers were willing to pay for a private phone line. This government decision and subsequent sale was:

A move toward capitalism.

John complained to his buddy, Frank that prices have increased a lot over the past year. Frank disagreed, saying that the prices of some goods have gone up a bit, but other prices have declined, noting that you can get some good buys on houses right now. Frank feels that the average price of consumer goods hasn't changed. Frank and John can refer to the to learn how government economists currently view the price situation.

CPI

Chase is a recent college graduate with a new job as an engineering trainee for a large defense company. Now that he is making good wages, he hopes to start saving for his first house and also contribute toward the company retirement plan. As he looks over his monthly bills, Chase is concerned about ever getting ahead of the game. His food bill, car payment, and mounting payments keep him in the "just making ends meet" category. As his mind wonders back to the good ol' college days, he reflects on a time when gas and food seemed a lot more reasonable. Chase is experiencing the effects of:

Inflation

Lance owns Lance Lawns Irrigation Systems, LLC, a company that installs and maintains underground lawn irrigation systems. Business is down due to new housing starts being negatively impacted by a deep recession. To make things worse, his bank called yesterday to inform him that his credit limit (interest fee of 12.5%) will be cut from $30,000 per year to $15,000 per year, unless he is willing to pay a higher interest rate of 20%. As Lance drives to the first job this morning, he knows that his last task of the day will be to reduce the hours for his two employees. He can't afford to work employees eight hours per day, with only a $15,000 line of credit. Which of the following strategies will help Lance's situation?

Fed decreases interest rates

Many of the toy products sold in the United States are imported from Taiwan because the Taiwanese can produce these products more efficiently than U.S. companies. This is an example of:

Comparative advantage.

An American firm recently criticized a Chinese steel producer for charging a lower price for its steel in the United States than it charges in China. If proven to be true, the Chinese firm has engaged in:

dumping

The nation of Redland reported that its imports for the previous year were $4 billion greater than its exports. During the same period, Redland reported a favorable balance of payments. This information suggests:

money inflows from tourism, foreign aid, foreign investment and other sources more than offset Redland's trade deficit.

Pepsi Cola entered into a long—term contract with a South African beverage company. The contract calls for the South African firm to produce and market Pepsi Cola in South Africa. Pepsi will receive royalties on each case of beverage sold. This is an example of:

Licensing

Adam's Apple Corporation ships all of the apples from its orchards in Washington to a single buyer in Japan. The firms' entire profits are derived from this international transaction. Adam's Apple Corporation:

Is not a multinational corporation.

Workers in the nation of Argenia prefer managers that forcefully tell employees what to do and how to do it. Conversely, employees in the U.S. prefer to participate in decision making in the workplace. This difference between Argenia workers and U.S. workers represents a management challenge for firms trading in the global market.

sociocultural

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

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

Responding to pressure from political lobbyists representing the U.S. steel industry, the U.S. government levies a tax on steel products imported from Europe. This is an example of a(n):

protective tariff.

A major concern voiced by U.S. critics of the North American Free Trade Agreement ~ (NAFTA) is that it would result in:

loss of jobs in the U.S. economy.

Jill works as a flight attendant for an international airline. While in China, it is convenient for Jill to find look-a-likes in famous brands of watches, purses, clothing, and golf clubs. ln fact, she does her Christmas shopping there and even buys good quality items for auctioning at her son's preschool events back in the U.S. Jill's actions:

Demonstrate a continual problem with product piracy in China.

When WorldCom used intentional accounting irregularities to make the company look more profitable than it actually was, it:

Engaged in illegal behavior.

After a few years of being in business, employees who worked for a startup software company noticed that the owner overlooked certain questionable actions of high billing associates, versus other employees who worked hard but only brought in an average number of new clients each month. With respect to what you learned in this chapter about the ethical behavior of many Americans, which of the following statements applies here?

As is often the case today, some leaders will look at each situation individually when making value judgments.

A friend offers to share with you a term paper previously prepared for her Introduction to Business class last semester. When you tell her that it wouldn't be fair, she reminds you of your habit of reading an entire Harry Potter book at the local bookstore without paying for the book. Which ethics—based question would be most helpful in evaluating these situations?

Is it balanced?

34.Which of the following would most likely involve ethical concerns?

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A. Overstating an expense report.

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35. 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

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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:

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A. An integrity-based ethics code.

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36. John was recently hired by Backstreet Books, an eclectic bookstore in a large college town. At the beginning of the first day on the job, his store manager handed him a small booklet consisting of company rules. He was asked to read it and sign and submit the last page, before starting work. Among other things, the rules explicitly discussed reprimands for grievous behavior and dismissal if the firm could prove that the employee was stealing product from the store. This booklet represented the of the store.

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B. compliance-based ethics

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37. Before it was publicly known that IBM was going to take over Lotus Development, an IBM secretary told her husband, who told two co—workers, who told friends, relatives, business associates, and even a pizza delivery man. A total of 25 people received the information and traded on this tip to make a profit. These people were:

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B. Insider trading.

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38. Last year the Bank of Plenty, Inc. made an all out effort to go paperless. The bank's public relations arm promoted the strategy both internally and extemally. Customers were strongly encouraged to utilize the bank's online banking for all their banking needs. Customers could sign up for local workshops where employees were dedicated to showing them how to navigate the bank's new website and find the information they required. The bank's initiative demonstrates:

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C. An area where the firm can contribute to the green effort, as well as cut costs.

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39. J. D. started working for an export trading company right out of college. His job took him to Asia on several occasions, where he interacted with manufacturers and got to practice his limited Chinese. He was amazed to see the difference in working conditions in the developing nations where he visited, compared to similar operations in the U.S. The expectations of workers were not the same. J.D.'s experience is an example of:

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B. Social responsibility differences between similar firms, but in different countries.

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40. A few years ago, several U.S. retailers were sued in Los Angeles courts for human rights abuses associated with contract manufacturers located in the Marianas Islands, a territory of the U.S. government. The accusers wanted the retailers to stop outsourcing the manufacturing of soft goods to manufacturers on the islands that practiced inhumane labor standards. The activists who brought suit against the U.S. firms:

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A. claimed that the retailers were breaking the law.

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41. Cali owns Dog Trotters, a dog walking business that she started to earn money after school and supplement her allowance. She planned to keep all the profits, and kept things simple, by putting a flier on the bulletin board at the local grocery store announcing that she was available to provide this service. Cali's business is a:

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A. Sole proprietorship.

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42. Kristen and her brothers and sisters decided to form a partnership that specializes in home design of all types. One of their goals is to maintain the loving relationship they currently enjoy so they are following the Model Business Corporation Act recommendations as they write the partnership agreement. Which of the following is an accurate recommendation of the Act?

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C. There should be discussion and well understood ways that the partners will handle disagreements.

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43. Zach and Mac own an auto repair business which they operate as co-owners. Both take an active role in the management of the business, and each accepts unlimited liability. Zach and Mac operate as a:

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B. general partnership

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44. Dane is a stockholder in SmallWorld, Inc., a C-corporation that manufactures amusement park rides. The company recently lost a major court decision and will probably be forced into bankruptcy. In fact, the damages awarded are so great that, even if all company assets are sold and the proceeds are used to pay its debts, SmallWorld is likely to still owe money to its creditors. lf SmallWorld go bankrupt, Dane and the other stockholders will:

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B. Lose their investment but nothing else.

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45. A few years back, your three U.S. born friends that live in the State of Wyoming inherited a dude ranch that they plan to tum into a retirement haven for race horses. Peaceful Pastures wants to open its doors by spring, 2010. After attending several small business seminars, the three friends are certain they need limited liability. The high-risk, labor-intensive business will require a sizable investment including an air-conditioned van, several fenced-in pastures and loads of animal feed. You recently heard that one form of business ownership requires owners to pay self-employment taxes on the entire amount of earnings. You are fairly certain this is one tax loophole your friends would like to avoid. You recommend:

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D. S-Corporation

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46. Continental Foods is considering a conglomerate merger with a company that makes storage solutions. A likely reason is:

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C. Diversification.

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47. Several years ago. Regis Corporation, a very large hair styling salon company purchased "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 _______.

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C.horizontal merger; vertical merger

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48. 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:

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B.The coattail effect.

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49. Jenna plans to invest in a cleaning service franchise called "Spare Time". At her first interview with the franchisor's selling agent, she leamed that the parent company expects royalties of 5%. These are:

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D. A share of the profits or a percentage share of revenues (net sales).

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50. Which of the following people would be most interested in participating in a business organized as a cooperative?

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A. Joe is intrigued by the idea of combining his time and resources with many other people to operate a business providing a good or service that they all will use.

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5l. Erin developed a new type of exercise equipment she calls the Tush N' Tone. After unsuccessfully searching for potential investors, she arranged a personal loan and borrowed additional money from her parents. Her willingness to continue believing in her idea and remain enthusiastic shows that Erin is:

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A. characteristically self—nurturing.

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52. Anna recently left a large insurance firm and opened a home-based business preparing medical transcriptions for doctors. Based on recent statistics, she can expect:

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B. the emergence of affordable technology will make it less challenging for her to compete with larger firms offering the same service.

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53. Pete inherited a thriving dry cleaning business from his father and mother. He continued the tradition of offering quality service to the customers he served. As the surrounding towns expanded, several people suggested that Pete expand the business to offer service in new locations. He chose to maintain only one operation, so as not to lose control and to keep his work life and home life balanced. Pete is a good example of a(n):

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C. Micropreneur

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54. 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:

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D. Successful big businesses often create profitable opportunities for small businesses.

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55. When Krystal Ginger graduates from culinary school she dreams of opening her own Asian fusion restaurant. Her other passion is skiing in Colorado, where she schedules four or five trips each year. As her small business advisor, you believe it necessary to provide her with information that will help her make good business decisions. Which of the following would be helpful for Krystal to know?

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A. Restaurants are relatively easy businesses to start, but are labor intensive and also have the greatest failure rate.

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56. Carrie, a student at Metropolitan Community College, dreams of starting her own business. In an effort to learn as much as she can about small business management, she talked to four friends who each offered their advice. Which of these suggestions is likely to help Carrie the most?

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B. Take courses related to small business management and look for a job with a successful businessperson, preferably in your field of interest.

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57. As a young boy, Drew remembers his grandfather telling him, "Son, if you can find something you like to do, and somebody is-willing to pay you to do it, well, that's the secret to a great life." The way Drew saw it, this was his big break. For the past five years, he split his time between school and working for a local tree farm/nursery business. The owner recently announced he was ready to retire. As Drew began creating a business plan, he contemplated what the business might be worth. How much will he need to buy this business? For starters, Drew

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B. should speak with the current owner and determine the total value of assets (what the business owns), its earning potential, and its unique advantage.

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58. Justin's favorite part of Introduction to Business class was marketing. As he brainstorms about starting a car detailing business, he recalls that it is important to:

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D. analyze the market before making the service available.

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59. Bing came to the U.S. ona swimming scholarship. After a few months of frustration with trying to find swim goggles like he used in his native country, he started a web site that offere specialty goggles for swimming, skiing, and snowboarding. Before launching the web site and filling orders, Bing spent a few months going to swim meets and gathering preferences about goggles from other swimmers. Bing's actions:

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D. demonstrated his need to better understand the market.

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60. As a small business owner, Tanika can't afford to provide her employees with the high wages and benefits offered by big corporations. One way to retain her employees and create a high level of motivation would be to:

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C. empower her employees to develop their own ideas. ·

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60. Jake wants to sell his workout DVDs in European, Asian, and Latin American countries. ___________

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will help him reach vendors abroad, without the expense of traveling to meet them face-to-face.

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A. A web site and other technological advances

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62. Antoine is considering marketing his bicycles in Brazil. If he enters the Brazilian market, he is likely to learn that _____________.

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B. Social responsibility differences between similar firms, but in different countries.

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

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D. Managers today emphasize teamwork

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64. Which of the following statements has resulted in changes in the role of management?

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B. The marketplace is becoming global, which increases both competition and opportunities for

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cooperation and integration.

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65. As a manager, two of Sylvia's strengths are her ability to communicate goals clearly, and her ability to guide, coach, and motivate workers. Based on these strengths, _________ is a management function that Sylvia is likely to be good at performing.

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C. Leading

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66. Amanda, a regional manager for Flairol Cosmetics, has just seen a report showing that sales in her region are trending lower than anticipated for the third quarter. Her next task is to determine the reason for the disappointing results and find a way to get sales up to their desired level. Amanda's efforts are part of the function of management.

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A. Controlling

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Jenna Raiter, the president and CEO of AutoMotion Auto Service Centers, has asked several managers and employees to help establish a statement to outline the fundamental purposes of their company. The result of this effort is likely to be a document known as a(n): ·

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B. Mission statement.

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Monica was hired by the Misty Mount Corporation to take over as the new chief executive officer. Her initial impression is that the company is in disarray, primarily because the employees do not have a sense of purpose or a common set of values. Monica's observations suggest that she needs to provide a(n) ______ for Misty Mount.

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A. Vision

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Flavio, CEO of Fabulous Frozen Custard believes that alternate plans are almost as important as the primary operational plans because extemal circumstances such as the weather, competitor moves, and even economic conditions make it important to have a Plan B. Flavio endorses:

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D. Contingency planning.

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Which of the following persons is most likely to be involved in strategic planning?

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A. Chief executive officer

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Ricardo works as a department head at Bames Hospital. His job requires Ricardo to spend most of his time training and coaching employees to perform their jobs more effectively and teaching other managers to be better leaders. Ricardo's job requires him to make full use of his:

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D. Human relations skills.

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Rob intends to major in accounting because he is confident that an ability to read and interpret financial and accounting data is the way to get to the top in business. Rob seems to be concerned with developing his:

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A. Technical skills.

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The CEO of peripheral company QuickDrive uses a leadership style that encourages employees to discuss management issues with the CEO and to work together to resolve those issues in a democratic manner. Which of the following statements would the CEO of QuickDrive most likely make?

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C. The key to keeping talented employees loyal to QuickDrive is to use a participative management style and treat them with respect, value their ideas, give them the resources they need, and expect great things from them.

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At Lifeline Pharmaceuticals, highly regarded research personnel rely on top management to provide strategic direction. Beyond that, researchers work on their own to develop new drugs to satisfy customer needs and company profit objectives. Middle management at Lifeline practice _________.

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A. Free—rein leadership

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Two years ago, Travis started his own restaurant supply company, serving the greater Chicago area. Until recently, he has never concemed himself with establishing a formal control system. Now, with a recession looming, he is experiencing cost conscious restaurant owners. He has decided that a formal control system is needed. The first step Travis should take is:

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C. Devise a set of clear performance standards.

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Harper is a sales rep for an eyeglass company. The company is always on the cutting edge of trendy designs. In her job, she frequently relies on the marketing department to provide her with information and materials. When using customer satisfaction to judge the success of their company, Harper's managers should:

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B. take Harper's satisfaction into account, because customers can be internal as well as external.

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As Bret prepares to open his new business, he has identified the tasks that need to be accomplished and has assigned employees to each task. This illustrates a:

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B. Division of labor.

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As your good friend ponders putting some structure to his/her graphic design business idea, which of the following do you ng advise him/her to do?

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A. Prepare the non-changeable marketing plan for the next three years, including marketing analysis and marketing strategy.

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While adding structure to his graphic design business, including the allocation of resources for getting the job done, Jack knew that he would need to initially allocate a considerable amount of funds for the sales team to have face to face meetings with other businesses who needed website design and promotional materials, Since overall funds were limited, he worried about his employees using these funds for the stated purpose and in a manner that he would use them. As his business advisor, you explain:

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D. creating a corporate culture that emphasizes your values goes hand in hand with structuring your organization.

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At Green Acres Fencing Company, eight employees each perform various aspects of the company's- work. One person does sales, four perform installation; one purchases materials; one does billing; one performs after-sales inspections. This type of organization reflects Fayol's principle of:

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A. Division of labor.

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John recently accepted a job in the marketing department with the Burbank Bagel Boys. After just a few days on the job, John learned that the company has many layers of management, and seems to have a rule to cover almost every situation. These conditions suggest that Burbank Bagel Boys is a(n):

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D. Bureaucratic organization.

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Which of the following statements would best summarize Max Weber's views on the role of workers in an organization?

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C. Workers should simply follow well-defined procedures.

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HipHop Music Company assigns workers to departments based on similar skills. Currently, the company has a marketing department, a production department, a finance department, and a human resources department. This suggests that HipHop departmentalizes by:

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B. Function.

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During the past six years, the marketing department manager at Creative Concepts Intemational made a strong push to hire mover/shakerprofessionals 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 :

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D. Groupthink

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Which of the following would be the least likely to serve on a cross-functional team for the Discovery Corporation?

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C. A production manager for one of Discovery's main competitors

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Chang is a project manager at Paradox Industries. He is able to borrow specialists from the organization on a regular basis to assist in major projects. After the project ends, the specialists return to their functional units to await new assignments. Paradox Industries

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D. matrix organization model

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Independence Electronics prides itself as a world-class producer of components used in CD and DVD players. The outstanding performance of the production department indicates that this activity is one of the firm's:

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B. core competencies

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When Eric Schmidt became the CEO of Google, he reported that the company in the hands of founders Larry Page and Sergey Brinn was running well, it just needed a little structure. CEO Schmidt helped develop:

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