1) John writes a memo to his employees. Putting his thoughtsonto paper is an example of

A. communicating

B. messaging

C. encoding

D. cryptography

2) Chantel received an invitation to a web meeting that will takeplace at 3:00 p.m. She accepted the invitation. This is an exampleof

A. formal channels of communication

B. spontaneous communication

C. feedback as a function of communication

D. informal channels of communication

3) You are doing research on political issues and find that you areon a conservative leaning site. What type of source credibilityissue is this?

A. Credentials

B. Impartiality

C. Currency

D. Style

4) When reviewing an educational math website, you find theauthor’s background is in English. What type of source credibilityissue is this?

A. Credentials

B. Impartiality

C. Currency

D. Style

5) A famous ice cream manufacturer sent workers to a nearby grocerystore to offer shoppers a sample of its new flavor. The workersprovided samples to 300 shoppers and noted that 80% of the samplepopulation stated they liked the flavor. Based on this scenario,which of the following is an example of an inference?

A. Workers provided samples to 300 shoppers.

B. 20 percent of the sample population did not like the new flavoror were indifferent.

C. The ice cream manufacturer began producing the new ice creamflavor and offered it in stores.
D. The workers were offering samples to see if the general publicliked the new flavor.

6) Persuading or convincing others to accept your argument meansthe reasoning must be logical. Which of the following is an exampleof logical flaws or fallacies?

A. Opposing views are considered

B. Hasty Generalization

C. Argument presents alternative explanations

D. Reasoning from specific evidence

7) What is the best way for the CEO to deal with managers in keypositions who continue to resist a major change?

A. Minimize their interactions with fellow employees and workaround them

B. Replace them with people who will support the change

C. Give them space and hope they will come to see why the changewas necessary

D. Keep increasing the pressure on them to support the change

8) Finding a win-win solution that allows parties who are involvedto have their goals achieved is an example of

A. accommodation

B. collaboration

C. team building

D. compromising

9) What is emphasized more in ethical leadership theories than intransformational leadership?

A. Leader values

B. Leader behaviors

C. Leader skills

D. Leader traits

10) Ethical behavior and integrity for a leader is most likely toresult in

A. higher unit performance

B. higher performance ratings for the leader by bosses

C. higher subordinate satisfaction and trust

D. less stress for the leader

11) A common characteristic of most entrepreneurs is that they

A. accept the risks involved in starting and managing abusiness

B. have a high level of scientific and technical expertise

C. possess a great deal of personal wealth

D. have experience in running large, complex organizations

12) In order to make an intelligent investment decision,entrepreneurs should

A. limit their options to those business investments that arebacked by the U.S. government

B. invest in businesses that have generated a stable rate of profitfor at least the past ten years
C. invest only in business opportunities where it is possible totake an active role in management
D. compare the risks of potential investments to their expectedprofits and find the right balance between profit and risk

13) The customers, employees, stockholders, suppliers, creditors,and others who stand to gain or lose by the policies and activitiesof a business represent the firm’s

A. market makers

B. economic environment

C. stakeholders

D. social mentors

14) When a firm makes use of the SWOT analysis, one of itsobjectives is to

A. identify the best employees to fill each position within theorganization

B. set specific short-term performance standards for eachdepartment

C. evaluate the desirability of issuing stocks or bonds in thecurrent financial climate

D. identify the things it does well as an organization and thethings it needs to improve

15) The process of rating an organization’s practices, processes,and products against the best of the world is known as

A. webworking

B. outsourcing

C. benchmarking

D. core competencies

16) Companies benefit today by inter-firm cooperation. One of theways they cooperate is through networking. Another way is byseeking technological knowledge and learning new processes fromother firms that usually fall outside of their respectiveindustries. We call this

A. competency capturing

B. technology swapping

C. benchmarking

D. broadening the knowledge base

17) An important difference between accounting and other businessfunctions, such as marketing and management, is that

A. accounting functions must be performed by an “outsider” (ratherthan by an employee of the business) in order to avoid conflicts ofinterest
B. accounting offers us insight into whether the business isfinancially sound

C. accounting involves mainly clerical activities and thus requiresvery little analysis

D. accounting deals exclusively with numbers

18) Although accounting has several specific uses, the overallpurpose of accounting can be summarized as

A. to provide financial information that is useful to decisionmakers

B. to meet the legal requirements of the Financial AccountingStandards Board (FASB)

C. to allow the government to track business activity levels

D. to compute the profit or loss and declared dividend of abusiness firm

19) An important advantage that knowledge technology has over olderversions of business technology is that it

A. is much cheaper to incorporate into most business operations

B. delivers timely information directly to the people who needit

C. allows businesses to locate anywhere and still reach theircustomers

D. eliminates the need for business to store informationelectronically

20) First Engineering, a large U.S. based mechanical engineeringfirm, is considering entering the global market. Upon carefulanalysis of the global market, they will find that global trade

A. opportunities are diminishing

B. is dominated by emerging, developing countries

C. is likely to be severely restricted in the future by nontarifftrade barriers

D. is big business today and is expected to be more important inthe future

21) The process of setting up individual functional units of thebusiness to do specialized tasks is called

A. departmentalization

B. division of labor

C. job specialization

D. delegation of authority

22) The proven success of job specialization lies in the factthat

A. it leads to groupthink

B. it avoids the pitfalls of division of labor, where workersbecome removed from thinking conceptually about the business
C. it is a detractor to others who are thinking about entering yourindustry because it successfully creates barriers to entry
D. it adds efficiency to the business’s operation by identifyingtasks that some do better than others

23) Economics is the study of how a society

A. invests wisely in the stock market

B. employs resources to produce goods and services and distributethem among competing groups and individuals
C. employs statistical techniques to make predictions about theevolution of society over the long run
D. governs itself for the good of its citizens

24) How is it that people working in their own self-interestproduce goods, services, and wealth for others?

A. By taking advantage of a vast supply of labor, people working intheir own self-interest could hire others at very low wages.
B. In order to earn money and produce goods that improve lives,self-directed gain would provide jobs, and subsequently wages forothers.
C. The government pays entrepreneurs in the United States toproduce goods, services, and wealth for others.
D. Entrepreneurs tend to include themselves in a group of peoplewho need charitable support. A portion of the entrepreneur’s profit(as required by law) goes to the charity of one’s choice to supportthe less fortunate.

25) The ultimate resource of a firm is its

A. business plan

B. marketing mix

C. capital budget

D. employees

26) Today, human resource management has become so important thatin many firms it has become

A. a function performed by managers in all areas of theorganization

B. the main responsibility of the firm’s legal staff

C. a function handled only by specialists in the human resourcedepartment

D. function handled only by the firm’s top management

27) Which of the following is included in performing a businessanalysis?

A. Hiring new employees

B. Entering global markets

C. Conducting a SWOT analysis

D. Networking

28) When the competition is intense and the environment is changingrapidly, it is especially important to

A. maintain a high level of external monitoring

B. have detailed plans and operating procedures

C. increase the power of the chief executive

D. strengthen the organization culture

29) Which of the following would be a concern addressed in astrategic plan?

A. Which specific jobs should be assigned to each employee?

B. How much output should be produced this week in a givenproduction facility?

C. Which computer software package should the firm’s humanresources office use to manage the payroll?
D. Should the firm make a long-term commitment to expand into newmarkets?

30) Tactical planning is concerned with

A. determining the best way to cope with an emergency situation

B. devising temporary courses of action to be used if the primaryplans do not achieve the desired results
C. developing detailed strategies about what is to be done, who isto do it, and how it is to be done
D. setting long run goals that will govern the general course ofthe organization for years