BAM105 all units exams

| June 1, 2016

Question
1. The political-legal environment reflects the relationship between the business and ___________.
a. labor unions
b. government
c. foreign trade
d. industry
2. Tangible goods that organizations use in conducting their businesses are referred to as
_____________.
a. the money supply
b. information resources
c. capital
d. physical resources
3. A ____________ economy has characteristics of both planned and market economies.
a. hybrid
b. mixed market
c. capitalist
d. privatized
4. A(n) ____________ occurs when the quantity supplied exceeds the quantity demanded.
a. demand deficit
b. overage
c. surplus
d. shortage
5. _____________ occurs when two or more businesses vie for the same resources or customers.
a. Competition
b. Socialism
c. Differentiation
d. Conflict
6. _____________ exists when an industry has only a handful of sellers, most of which are large.
a. Monopolistic competition
b. Perfect competition
c. An oligopoly
d. A monopoly

Unit 1 Examination
40
BAM 105 Introduction to Business
7. Which of the following is NOT a factor of production?
a. labor
b. entrepreneurs
c. capital
d. government
8. In the market for breakfast cereals, only a few large producers dominate the market. This
situation best describes which of the following?
a. monopolistic competition
b. monopoly
c. pure competition
d. oligopoly
9. Which of the following is an example of a natural monopoly?
a. automobiles
b. motion pictures
c. electric companies
d. sporting goods
10. Economists refer to the pattern of short-term expansions and contractions in the economy as
the _____________.
a. business cycle
b. consumer price index
c. standard of living
d. aggregate output
11. ____________ refers to ethical or unethical behaviors by employees in the context of their jobs.
a. Business ethics
b. Social responsibility
c. Social ethics
d. Collusion
12.
Bob
Crawford
sold
shares
in
XYZ
Company
after
finding
out
from
XYZ’s
CEO
that
XYZ’s
stock
was about to drop in price. Bob engaged in _____________.
a. an accommodative stance to social responsibility
b. insider trading
c. whistle-blowing
d. misrepresentation of finances

Unit 1 Examination
41
BAM 105 Introduction to Business
13. A(n) _____________ stance to social responsibility involves doing as little as possible and may
involve attempts to deny or cover up violations.
a. proactive
b. defensive
c. accommodative
d. obstructionist
14. The systematic analysis of an organization’s success in using funds earmarked for its social
responsibility goals is called a _____________.
a. community activist approach
b. social audit
c. government initiative
d. governmental mandate
15. The ethical norm of _____________ considers if the decision is fair.
a. rights
b. justice
c. utility
d. caring
16. What is the most important source of money for new-business start-ups?
a. grants
b. personal resources
c. the SBA
d. banks
17. _____________ are groups of small investors seeking to make profits on companies with rapid
growth potential.
a. Venture capital companies
b. Business incubators
c. Investment clubs
d. Financial partnerships
18. Officers are _____________.
a. non-voting stockholders
b. members of the board
c. participate in day-to-day management
d. None of the above.

Unit 1 Examination
42
BAM 105 Introduction to Business
19. More than any other industry group, _____________ lends itself to big business.
a. wholesaling
b. retailing
c. manufacturing
d. agriculture
20. A sole proprietorship depends primarily on the resources of _____________.
a. the corporation
b. capital markets
c. a single individual
d. foreign investors
21. Developing countries are also called _____________.
a. viral marketers
b. geographic clusters
c. low-income countries
d. low middle-income countries
22. Which country dominates the Pacific Asia region economically?
a. Taiwan
b. Japan
c. China
d. South Korea
23. With a(n) _____________ exchange rate, the value of a country’s currency remains constant
relative to that of another country.
a. fixed
b. floating
c. adjusted
d. indexed
24. Ford purchased Volvo. What does this illustrate?
a. foreign direct investment
b. strategic alliance
c. social responsibility
d. licensing arrangement

Unit 1 Examination
43
BAM 105 Introduction to Business
25. Selling a product abroad for less than the cost of production is called ______________.
a. setting up a business office
b. dumping
c. direct foreign investment
d. imposing tariffs

1. A _____________ is a broad set of organizational plans for implementing the decisions made for
achieving organizational goals.
a. strategy
b. mission
c. formula
d. function
2. _____________ are performance targets, the means by which organizations and their managers
measure success or failure at every level.
a. Tactics
b. Mission statements
c. Strategies
d. Goals
3. Goals that generally extend beyond five years or more are referred to as _____________.
a. long-term goals
b. strategies
c. short-term goals
d. intermediate goals
4. When Kodak adopts a goal of increasing its share of the 35mm film market by 10 percent
during the next eight years, it is called a(n) _____________ goal.
a. intermediate
b. tactical
c. long-term
d. short-term
5. E-partnering involves _____________.
a. hooking up to another company’s inventory records
b. sharing a Web server with another company
c. buying shares of small companies that are similar to the “purchasing” firm
d. buying shares of small companies that can provide technology that the “purchasing”
company does not have

Unit 2 Examination
85
BAM 105 Introduction to Business
6. Scanning the environment for threats and opportunities is referred to as _____________.
a. environmental analysis
b. organizational analysis
c. devising strategy
d. developing implementation tactics
7. The purpose of _____________ analysis is to better understand a company’s internal strengths
and weaknesses.
a. product
b. environmental
c. organizational
d. human resource
8. Which of the following is NOT a level of plans?
a. organizational plans
b. strategic plans
c. tactical plans
d. operational plans
9. Contingency planning is planning for _____________.
a. disasters
b. change
c. environmental analysis
d. organizational analysis
10. Hewlett Packard’s decision to move towards a more centralized structure is an example of
_____________.
a. organizing
b. controlling
c. planning
d. leading
11. When each department targets a specific customer category, departmentalization occurs along
_____________ lines.
a. functional
b. product
c. customer
d. process

Unit 2 Examination
86
BAM 105 Introduction to Business
12. Authority that flows up and down the chain of command is called _____________ authority.
a. line
b. delegated
c. departmental
d. staff
13. Chief among the factors playing a part in determining an organization’s structure are
_____________.
a. mission and strategy
b. competition and technology
c. location and life-cycle stage
d. profitability and leverage
14. Which of the following structures rely on product departmentalization?
a. functional
b. matrix
c. international
d. divisional
15. The term _____________ refers to all the activities involved in making products, goods and
services for customers.
a. scheduling
b. planning
c. processes
d. operations
16. In a _____________ system, the customer is part of the system during service delivery.
a. quality
b. high-contact
c. low-contact
d. customer
17. Machine, woodworking and dry cleaning shops typically use _____________ layouts.
a. hybrid
b. product
c. custom-products
d. same-steps

Unit 2 Examination
87
BAM 105 Introduction to Business
18. Which of the following best describes total quality management (TQM)?
a. the consistency of a product’s quality from unit to unit
b. the performance features offered by a product
c. the principle that quality belongs to everyone on the job
d. all activities involved in getting high-quality products into the marketplace
19. Which of the following best describes business process reengineering?
a. a program certifying that a factory, laboratory or office has developed pollution-control
standards
b. the principle of looking at the supply chain as a whole in order to improve the overall
flow through the system
c. a program certifying that a factory, laboratory or office has met the quality management
standards of the International Organization for Standardization
d. the redesigning of business processes to improve performance, quality and productivity
20. _____________ are the total set of work-related behaviors that the organization expects
employees to display.
a. Counterproductive behaviors
b. Organizational citizenship
c. Employees behaviors
d. Performance behaviors
21. Employees are given a voice in how they do their jobs and how the company is managed in
_____________.
a. job design
b. participative management and empowerment
c. a piecework system
d. job enrichment
22. Job rotation is a type of _____________ program.
a. MBO
b. job enrichment
c. goal-setting
d. job redesign

Unit 2 Examination
88
BAM 105 Introduction to Business
23. Which of the following restructures work to achieve a more satisfactory fit between workers and
their jobs?
a. participative management
b. job redesign
c. team management
d. MBO
24. The Principles of Scientific Management was written by _____________.
a. Frederick Herzberg
b. Frederick Taylor
c. Douglas McGregor
d. Abraham Maslow
25. Stability and a pension plan can meet the _____________ needs level in the hierarchy of needs
model.
a. self-actualization
b. security
c. social
d. physiological

1. According to Kotter, when executing plans, managers focus on _____________.
a. organizing and staffing
b. aligning people
c. controlling and problem solving
d. motivating and inspiring
2. According to Kotter, when executing plans, leaders focus on _____________.
a. controlling and problem solving
b. organizing and staffing
c. motivating and inspiring
d. aligning people
3. What were the earliest approaches to leadership?
a. behavioral approaches
b. situational approaches
c. rational approaches
d. trait approaches
4. Early studies of the trait approach to leadership were _____________.
a. inconsistent
b. consistent
c. a major breakthrough
d. based on only two people
5. Task-focused leader behavior occurs when a leader focuses on _____________.
a. satisfaction
b. motivation
c. how tasks should be performed
d. which tasks should be performed
6. Employee-focused leader behavior occurs when a leader focuses on _____________.
a. the well-being of his or her employees
b. how tasks should be performed
c. both satisfaction and the well-being of his or her employees
d. satisfaction

Unit 3 Examination
131
BAM 105 Introduction to Business
7. Bob, Joe and Larry all agree that they will perform their jobs well, regardless of who will be
assigned to supervise their department. What does this illustrate?
a. presence of a leadership substitute
b. risk propensity
c. presence of a leadership neutralizer
d. intuition
8. In referring to cross-cultural leadership, culture refers to _____________.
a. neither international differences nor diversity-based differences within one culture
b. international differences
c. diversity-based differences within one culture
d. international differences and diversity-based differences within one culture
9. _____________ leadership is one approach to leadership as seen through the eyes of followers.
a. Transactional
b. Transformational
c. Situational
d. Motivational
10.
Young
Choi
joined
GDB
Technologies
in
an
attempt
to
revitalize
the
company
and
give
it
new
direction.
Young
Choi
engaged
in
_____________
leadership.
a. charismatic
b. cross-cultural
c. transformational
d. transactional
11. What is collectivism?
a. a greater focus on gender than on culture
b. a greater focus on ethics than on leadership
c. a greater focus on the individual than on the group
d. a greater focus on the group than on the individual
12. A _____________ is an informal alliance of individuals or groups formed to achieve a common
goal.
a. cohort
b. coalition
c. cartel
d. compound

Unit 3 Examination
132
BAM 105 Introduction to Business
13. _____________ is an innate belief about something, often without conscious consideration.
a. Risk propensity
b. Arbitrage
c. Decision making
d. Intuition
14. _____________ refers to the set of organizational activities directed at attracting,
developing and maintaining an effective workforce.
a. Human resource management
b. Production management
c. Development of a mission statement
d. Operations management
15. HR managers use _____________, which list each important managerial position, who occupies
it, how long that person will likely stay in the job and who is qualified as a replacement.
a. job analyses
b. managerial grids
c. job specifications
d. replacement charts
16. Attracting applicants from outside the organization is called _____________.
a. external recruiting
b. job posting
c. homogenizing the workforce
d. internal recruiting
17. Some incentive programs apply to all employees in a firm. Paying workers to learn new skills
and to become proficient at different jobs is part of which of the following plans?
a. pay-for-knowledge plan
b. profit-sharing plan
c. gainsharing plan
d. None of the above.
18. A group of individuals working together to achieve shared job-related goals such as higher pay,
shorter working hours, greater benefits or better working conditions is a(n) _____________.
a. labor union
b. company hierarchy
c. external organization
d. management organization

Unit 3 Examination
133
BAM 105 Introduction to Business
19. Products used by companies to produce other products are referred to as _____________.
a. substitute products
b. consumer goods
c. industrial goods
d. consumer staples
20. _____________ goods are inexpensive products that are purchased often and with little
expenditure of time and effort.
a. Shopping
b. Specialty
c. Convenience
d. Novelty
21. When a wholesaler or retailer develops a brand name and has the manufacturer place that
name on the product, that product name is a _____________ brand.
a. licensed
b. private
c. manufacturer
d. national
22. Introducing a line of golf gear designed specifically for women is a response to a trend in the
______________ environment.
a. economic
b. political-legal
c. sociocultural
d. competitive
23. Which term defines groups of people or organizations with similar wants and needs and who
can be expected to show interest in the same products?
a. distribution
b. target markets
c. pricing
d. product differentiation
24. The _____________ is the combination of distribution channels that a firm selects to get a
product to end users.
a. transportation strategy
b. channel plan
c. merchandising system
d. distribution mix

Unit 3 Examination
134
BAM 105 Introduction to Business
25. In a(n) _____________ the customers view display samples, place orders and wait briefly while
clerks retrieve orders from attached warehouses.
a. discount house
b. factory outlet
c. off-price store
d. catalog showroom

Unit 4 Examination
175
BAM 105 Introduction to Business
Multiple Choice Questions
(Enter your answers on the enclosed answer sheet)
1. _____________ is a basic communications protocol used to send e-mail.
a. Internet Service Network
b. Simple message transfer protocol
c. Arpanet
d. Federal Information Exchange
2. _____________ allow outsiders limited access to a firm’s internal information systems.
a. Intranets
b. Extranets
c. Directories
d. Firewalls
3. In client-server networks, the client is usually the _____________.
a. computer through which users make requests for information
b. customer
c. supplier
d. computer through which users supply answers for requests for information
4. A firewall provides _____________.
a. privacy protection
b. the connection of stations in a LAN
c. protection from electrical surges
d. Internet access
5. _____________ is software that connects members of a group for shared e-mail distribution,
electronic meetings, appointments and group writing.
a. Electronic conferencing
b. The Internet
c. A data network
d. Groupware
6. The term
data
refers to _____________.
a. names and numbers from a large phonebook
b. raw facts and figures
c. conclusions made from information
d. the useful interpretation of facts and figures

Unit 4 Examination
176
BAM 105 Introduction to Business
7. _____________ is the meaningful, useful interpretation of data.
a. Datamation
b. Megadata
c. Information
d. Accounting
8. A(n) _____________manager is in charge of operating systems for gathering, organizing and
distributing information.
a. production
b. HR
c. operations
d. information systems
9. Once inside a computer network, hackers are able to commit _____________, the unauthorized
stealing of personal information.
a. identity theft
b. leverage
c. espionage
d. denial of service
10. Customers can order a personal computer from the Dell site with exactly the features they
desire through _____________.
a. mass-customization
b. process management
c. mass production
d. unit production
11. What is the major limitation of Wi-Fi?
a. high cost
b. productivity
c. short range of distance
d. privacy concerns
12. Land, building and equipment are _____________.
a. depleted assets
b. assets
c. liquid assets
d. current assets

Unit 4 Examination
177
BAM 105 Introduction to Business
13. _____________ represent the total cost of obtaining materials for making the products sold by
a firm during the year.
a. Net profits
b. Revenues
c. Cost of goods sold
d. Operating expenses
14. _____________ expenses result from activities related to selling goods or services.
a. Gross
b. Sales and marketing
c. Income
d. Revenue
15. The _____________ is the financial statement describing a firm’s yearly cash receipts and cash
payments.
a. statement of retained earnings
b. cash flow statement
c. balance sheet
d. income statement
16. Howard Industries is having a CPA firm review its financial records to confirm their
conformance with generally accepted accounting principles. Howard Industries is in the
process of a(n) _____________.
a. company-wide analysis
b. portfolio analysis
c. audit
d. preliminary examination
17. A _____________ is a promise by a bank to pay a foreign firm a certain amount of money if
specific conditions are met.
a. letter of credit
b. banker’s acceptance
c. currency exchange
d. financial advisement
18. About how many ATMs are located in U.S. bank buildings and other locations?
a. 20,000
b. 360,000
c. 120,000
d. 550,000

Unit 4 Examination
178
BAM 105 Introduction to Business
19. Because the U.S. dollar varies only slightly in its ability to purchase goods, it is considered
_____________.
a. divisible
b. stable
c. portable
d. durable
20. Money lets you measure the relative values of goods and services. In so doing, money is
performing which of the following functions?
a. determination factor
b. store of value
c. measure of worth
d. monetary flagging
21. Which of the following statements is NOT true about dividend payments?
a. During bad years, companies are still required to pay dividends.
b. Many fast-growing companies use cash earnings for expanding the company so that
future earnings can grow even faster.
c. Many companies distribute between 30 and 70 percent of their profits to shareholders.
d. Some firms, especially fast-growing companies, do not pay dividends.
22. A(n) _____________ fund nearly matches the performance of a particular market.
a. index
b. balanced
c. aggressive
d. market
23. A(n) _____________ is a summary of price trends in a specific industry and/or the stock market
as a whole.
a. average index
b. market index
c. investment index
d. market indicator
24. What is the formula for measuring a firm’s working capital?
a. current assets = working capital – current liabilities
b. current liabilities = current assets – working capital
c. working capital = current assets – current liabilities
d. None of the above.

Unit 4 Examination
179
BAM 105 Introduction to Business
25. A _____________ is a formal pledge (an IOU) obligating the issuer to pay interest periodically
and repay the principal at maturity (a preset future date) to the lender.
a. bond indenture
b. commercial bank loan
c. mutual fund
d. corporate bond

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