CCU BAM105 FOR BUSINESS ESSENTIALS EXAM

| June 6, 2016

Question
1. The price at which the quantity of goods demanded and the quantity of goods supplied are

equal is referred to as price.

a. the equilibrium

b. consumer equality

c. the deal-maker

d. the fixed point

2. A (n) occurs when the quantity supplied exceeds the quantity demanded .

a. overage

b. shortage

c. demand deficit

d. surplus

3. “Buyers will purchase more of a product as its price drops and less of a product as its price

increases.” The situation being described is referred to as .

a. the law of supply

b. purchase dissonance

c. the law of demand

d. buyer’ s remorse

4. Which of the following is NOT one of the elements required in private enterprise?

a. freedom of choice

b. private property rights

c. stability of cash flow

d. profits

5. U.S. agriculture is a good example of .

a. perfect competition

b. monopolistic competition

c. a monopoly

d. an oligopoly

6. Which of the following best defines the term aggregate output?

a. the total quantity and quality of goods and services that country’ s citizens can purchase

with the currency used in their economic system

b. the pattern of short-term ups and downs in an economy

c. the total quantity of goods and services produced by an economic system during a

given period

d. the conditions of the economic system in which an organization operates

7. refers to ethical or unethical behaviors by employees in the context of their jobs.

a. Social ethics

b. Collusion

c. Business ethics

d. Social responsibility

8. An employee who discovers and tries to put an end to a company’ s unethical, illegal or socially

irresponsible actions by publicizing the m is called .

a. an investor

b. an outside contractor

c. a whistle-blower

d. top management

9. The ethical norm of considers if the decision is fair .

a. utility

b. justice

c. rights

d. caring

10. Which of the following groups is NOT considered an organizational stakeholder?

a. investors

b.competitors

c. employees

d. customers

11. According to analysts, who must take chief responsibility for educating employees about

ethics?

a. parents

b. religious organizations

c. employers

d. business school

12. The current whistle-blower law stems from which of the following pieces of legislation?

a. The False Claims Act of

1863

b. The Clayton Act of 1914

c. The Sherman Act of 1890

d. The Webb-Pomerene Act of 1918

13. A locally owned and operated restaurant is typically a(n) .

a. small business

b. monopoly

c. corporation

d. oligopoly

14. is the process of seeking business opportunities under conditions of risk.

a. Wholesaling

b. Entrepreneurship

c. Goal setting

d. Leverage

15. A major drawback of sole proprietorships is .

a. limited liability

b. low startup costs

c.unlimited liability

d. flexibility

16. Both sole proprietorship and partnerships lack .

a. profits

b. trust

c. clarification

d. continuity

17. A(n) is organized to operate like a corporation but is taxed like a partnership.

a. S-corporation

b. professional corporation

c. public corporation

d. private corporation

18. Kent Kauffman and Patrick McCormick have decided to start a landscaping business. One of

the first things that they do is sign the , which describes the investments and

responsibilities of the partners and makes provisions for the allocations of profits and

dissolution of the business.

a. articles of incorporation

b. corporate charter

c. partnership charter

d. partnership agreement

19. A company sending some of its own managers overseas to conduct business in a local office is

practicing the international organization strategy of .

a. branch offices

b. joint venture arrangements

c. strategic alliances

d. direct investment

20. A subsidy is a .

a. tax

b. global competitor

c. product

d. payment

21. Under , Canada, the United States and Mexico will gradually eliminate tariffs and all

other trade barriers.

a. NAFTA

b. the Pan-American Agreement

c. the EURO Agreement

d. CMA

22. Which of the following exists when a country can produce something more cheaply and/or of

higher quality than any other country can?

a. national competitive advantage

b. balance of payments

c. absolute advantage

d. comparative advantage

23. Which global arrangement most closely represents a partnership?

a. exporting

b. enterprise resource planning (ERP)

c. licensing arrangement

d. strategic alliance

24. The Oil Producing and Exporting Countries (OPEC) is an example of a .

a. subsidy

b. foreign direct investment

c. cartel

d. quota

25. Which of the following refers to a person’ s ability to think in the abstract, to diagnose and

analyze different situations and to see beyond the present situation?

a. production skills

b. human relations skills

c. decision-making skills

d. conceptual skills

26. The purpose of strategy is to determine what business or businesses a company will

own and operate.

a. functional

b. corporate

c. business

d. mission

27. Corporate culture .

a. is difficult to change

b. can direct employees’ efforts toward

goals

c. is usually determined by outside forces

d. very seldom changes

28. T itles such as plant manager, operations manager and division manager designate which of

the following levels of management?

a. first-line managers

b. supervisors

c. top managers

d. middle managers

29. Which of the following managers depend most on conceptual skills?

a. top managers

b. first-line managers

c. marketing managers

d. middle managers

30. CFO and controller are titles associated with managers.

a. information

b. human resource

c. marketing

d. financial

31. When each department targets a specific customer category , departmentalization occurs along

lines.

a. functional

b. customer

c. process

d. product

32. Decentralization is typical in companies that .

a. are smaller in size

b. focus tightly on maintaining standardization

c. face stable, predictable environments

d. face complex and dynamic environments

33. All of the following are advantages of job specialization EXCEPT specialized jobs .

a. can be learned more quickly

b. are more interesting

c. can be performed more efficiently

d. can be filled more quickly

34. Which of the following is NOT one of the four basic forms of organizational structure

mentioned in the text?

a. matrix

b. divisional

c. functional

d.production

35. American Wood Products has three divisions. The Lumberjack division is involved in

harvesting trees and transporting them to lumber mills. The Milling division transforms cut

timber into dimensional lumber for building. The Paper Products division makes papers and

cardboard from the remnants of the milling process. This is an example of .

a. functional departmentalization

b. process departmentalization

c. customer departmentalization

d. geographic departmentalization

36. According to the text, Martha Stewart Living Omni media u s e s a(n) structure to

manage its lifestyle business.

a. operational

b. departmental

c. divisional

d matrix

37. refers to the sameness of product quality from unit to unit.

a. Performance

b. Quality control

c. Reliability

d. Consistency

38. includes all activities involved in getting quality products into the marketplace.

a. T otal quality management

b. Quality reliability

c. Performance quality

d. Quality control

39. is the evaluation of all work activities, materials flows and paperwork to

determine the value that they add for customers.

a. Quality management

b.Value-added analysis

c. Groupware

d. Benchmarking

40. Operations produce standardized products for mass consumption.

a. Make-to -order

b.Make-to-stock

c. Low-contact

d. High-contact

41. A is an activity that is performed regularly when conducting business.

a. technique

b. process

c. request

d. function

42. When Ford assembles parts into a Ford Explorer , it creates utility .

a. time

b. place

c. form

d. possession

43. A good person-job fit is a situation in which .

a. the employee’ s contributions slightly exceed the company’ s inducements

b. the employee’ s contributions and the company’ s inducements

balance

c. the company’ s inducements slightly exceed the employee’ s contributions

d. the person hired for the job is qualified for it

44. When two people work part-time to share a single full-time job, it is referred to as .

a. MBO

b. flextime

c. job redesign

d.work sharing

45. reflects a person’ s comfort level with relationships.

a. openness

b. extraversion

c. conscientiousness

d. agreeableness

46. According to Herzberg, recognition fo r a job well done is a .

a. scientific factor

b motivation factor

c. hygiene factor

d. dissatisfier

47. When a company pays rewards for desired behaviors in employees, it is using .

a. piecemeal

b. equity theory

c.positive reinforcement

d. punishment

48. In equity theory , the social comparison made by an employee relative to the treatment by the

organization to others is similar to .

a the psychological contract

b. job sharing

c. the Hawthorne effect

d. expectancy theory

49. According to Kotter , when creating an agenda, managers focus on .

a. organizing and staffing

b. controlling and problem solving

c. planning and budgeting

d. establishing direction

50. T ransactional leadership is essentially the same as .

a. controlling

b. planning

c.management

d. organizing

51. T o be an effective strategic leader , a manager needs to have an understanding of the

organization’ s .

a. strengths and weaknesses

b. culture

c. history

d. All of the above.

52. Managers at Adidas had a “hunch” that their sponsorship deal with the Yankees would be a

good one. Their feelings were based on .

a. escalation of commitment

b. risk propensity

c. intuition

d. perception

53. The approach to leadership assumes that appropriate leader behavior varies from

one situation to another .

a. motivation

b. trait

c. charismatic

d. situational

54. Males tend to be more than females in making decisions.

a. democratic

b. charismatic

c. autocratic

d. free-rein

55. Which of the following types of compensation are paid for time worked?

a. wages

b. salary

c. benefits

d. gain sharing

56. Insurance for compensating workers injured on the job is called .

a. a cafeteria plan

b. a profit-sharing plan

c. disability insurance

d. workers’ compensation

insurance

57. represent attempts to recruit, hire and develop members of relevant protected

classes.

a. Comparable worth programs

b. “Glass ceiling” programs

c. Benefit plans

d.Affirmative action plans

58. A allows wage rates to be renegotiated during the life of a labor contract.

a. wage reopener clause

b. bargaining unit

c. cost-of-living adjustment

d. strike

59. Cindy has identified the credentials, skills and abilities necessary for a database administrator

in her organization. She will record this information in a(n) .

a. advertising budget

b. staffing survey

c. employee analysis

d. job specification

60. Bill is able to quit his job at the pickle factory at anytime and without notice under the legal

concept of .

a. mutual consent

b. quid pro quo

c employment-at-will

d. joint agreement

61. Groups of people with similar wants and needs are .

a. price points

b. distribution points

c. target markets

d. target points

62. are the qualities, tangible and intangible, that a company builds into its products.

a. Features

b. Safety devices

c. Requirements

d. Benefits

63. A promotional tactic for brand exposure in which characters in television, film, music,

magazines or video games use a real product with a brand visible to viewers is called

.

a. branding

b. loyalty

c. brand awareness

d product placement

64. Selling the rights to place a brand name on products such as t-shirts is referred to as

brands.

a. international

b. national

c. licensed

d. private

65. The satellite dish and home television shopping provide examples of changes to which of the

following external environmental factors that affect marketing?

a. political

b. legal

c. economic

d technological

66. Providing volunteer participants with new products to try and then asking them to share the

information with their friends, family , co-workers and others in their social network is called

marketing.

a. buzz

b. viral

c. share

d. placement

67. Once called “middlemen,” they are now known in marketing circles as .

a. the marketing network

b. distributors

c intermediaries

d. circulation managers

68. Companies that price their product low enough to attract a large number of buyers are likely

pursuing a goal of .

a. market stability

b. maximization of profits

c. high market share

d. price stability

69. The amount added to a product’ s cost to meet profit targets is usually expressed as a

percentage of .

a. total costs

b. sales price

c. wholesale price

d. selling costs

70. The value of agents and brokers lies in their knowledge of markets and their merchandising

expertise. Which of the following do they also do?

a. remove open, torn or dirty packages, arrange products neatly and generally keep goods

attractively displayed for retail stores.

b. provide shelf and display merchandising and advertising layout for retail stores

c. show sale items to potential buyers

d. All of the above.

71. Which of the following is the first stage in the buyer decision process?

a. Buyers decide on specific products.

b Buyers recognize the need to make a

purchase

c. Buyers want to learn more about available products.

d. Buyers evaluate products after purchase.

72. Pricing above the market plays on the common assumption that .

a. although consumer will not admit it, they like to pay higher prices

b. higher price means higher quality

c. a desperate business in danger of failing must get the most for each item it sells

d. higher prices are much more popular now

73. allow outsiders limited access to a firm’ s internal information systems.

a. Firewalls

b. Extranets

c. Directories

d. Intranets

74. A(n) is a system for transmitting and transforming data into information that can be

used in decision-making.

a. transformation system

b. information system

c. computer

d. management system

75. The application of electronic technologies for searching, sifting and reorganizing pools of data

to uncover useful information is referred to as data .

a warehousing

b. mining

c. access

d. tapping

76. Computers are connected by numerous applications utilizing different communications

protocols. Which of these is NOT an Internet protocol?

a. hypertext transfer protocol (HTTP)

b. simple message transfer protocol (SMTP)

c. document processing protocol (DPP)

d. post office protocol (POP)

77. is capable of gathering e -mail addresses, credit card numbers and passwords.

a. Spyware

b. Spam

c. A firewall

d. Groupware

78. Which statement is true regarding firewalls?

a. They keep companies safe from hackers.

b. They serve as a “traffic switch,” telling a message where to go.

c. They are located within individual monitors.

d. They do none of the above.

79. offer accounting services to the public and are licensed at the state level.

a. Controllers

b. Certified Public Accountants

c. Certified Management Accountants

d. Bookkeepers

80. are costs, other than the cost of goods sold, incurred in producing a good or service.

a. Depreciation

b Operating expenses

c. Inventory expenses

d. Operating incomes

81. A ratio measures a firm’ s potential earnings.

a. financial

b. solvency

c profitability

d. managerial

82. Cash transactions involved in buying and selling goods and services would be classified as

cash flows from on the statement of cash flows.

a. investing

b operations

c. planning

d. budgeting

83. Which of the following is the most commonly used liquidity ratio?

a. return on equity

b. quick ratio

c. return on sales

d. current ratio

84. is the ability of a firm to finance an investment through borrowed funds.

a. Leverage

b. Profitability

c. Liquidity

d. Solvency

85. At , deposits are only accepted from members who meet specific qualifications,

usually working for a specific employer .

a. mutual savings banks

b. commercial banks

c. savings and loan associations

d. credit unions

86. The is a United Nations agency consisting of about 150 nations that have combined

resources to promote stable exchange rates, provide temporary short-term loans and serve

other purposes.

a International Monetary

Fund

b. European Union

c. Federal Reserve

d. World Bank

87. Which of the following is NOT a function of money?

a. status

symbol

b. store of value

c. medium of exchange

d. measure of worth

88. Which of the following is NOT part of the M-2 money supply?

a. M-1

b. government

bonds

c. time deposits

d. money market mutual funds

89. How many Federal Reserve Banks are there currently in the United States?

a. 15

b. 6

c. 10

d. 12

90. T -notes are treasury securities that mature to face value within .

a. 30 years

b. a few weeks to a year

c. 2 and 10 years

d. None of the above.

91. Blink credit card technology is familiar in what form?

a. buying discount bonds that do not pay interest periodically but are sold at a discount

and pay out the face value on maturity

b. using a computer to make automatic payments

c. familiar to any form that uses a magnetic strip or swipe method

d. toll roads with electronic passes that allow drivers to avoid waiting in line to pay

92. is often used for economic planning by businesses and government agencies.

a. M-2

b. M-1

c. Currency

d. A demand deposit

93. A stock’ s can be calculated by dividing total shareholders’ equity by the total

number of shares of stock issued.

a. book value

b. market value

c. par value

d. All of the above.

94. New stocks and bonds are sold in the market.

a. primary

b. tertiary

c. private placement

d. secondary

95. A (n) is an organization of individuals coordinat ed to provide an institutional setting

in which stock can be bought and sold.

a. stock exchange

b. brokerage

c. over-the-counter market

d. server

96. Investors will opt for no-risk U.S. T reasury Bills or intermediate-term, high-grade

corporate bonds that rate low in terms of risk on future investments .

a. Professional

b. Aggressive

c. Amateur

d. Conservative

97. 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. mutual fund

b. bond indenture

c. commercial bank loan

d. corporate bond

98. A company is ripe for raiding when .

a. insider trading has taken place

b. private owners lose some control of the company when shares are sold to the public

c. its stock prices are at an all time high

d. its stock price falls so shares can be cheaply bought

99. A is a division of stock that gives stockholders a greater number of shares but does

not change each individual’ s proportionate share of ownership.

a. stock split

b. stock warrant

c. stock dividend

d. stock yield

100. “I am a chemist with the nation’ s largest chemical company . We have secretly developed a

cure for three of the world’ s most serious epidemics. Before this news breaks out, I’m going

to buy as many shares of stock in my company as I can get my hands on. Then I’ll sit back

and watch the stock price head for the sky .” The person making this statement is about to

engage in .

a. insider trading

b. blue-sky trading

c. selling shares of stock

d. open-market operations

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