You are doing research on political issues and find that


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

A. communicating
B. messaging
C. encoding
D. cryptography

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

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 are on a conservative leaning site. What type of source credibility issue is this?

A. Credentials
B. Impartiality
C. Currency
D. Style

4) When reviewing an educational math website, you find the author's background is in English. What type of source credibility issue is this?

A. Credentials
B. Impartiality
C. Currency
D. Style

5) A famous ice cream manufacturer sent workers to a nearby grocery store to offer shoppers a sample of its new flavor. The workers provided samples to 300 shoppers and noted that 80% of the sample population 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 flavor or were indifferent.
C. The ice cream manufacturer began producing the new ice cream flavor and offered it in stores.
D. The workers were offering samples to see if the general public liked the new flavor.

6) Persuading or convincing others to accept your argument means the reasoning must be logical. Which of the following is an example of 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 key positions who continue to resist a major change?

A. Minimize their interactions with fellow employees and work around them
B. Replace them with people who will support the change
C. Give them space and hope they will come to see why the change was necessary
D. Keep increasing the pressure on them to support the change

8) Finding a win-win solution that allows parties who are involved to 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 in transformational leadership?

A. Leader values
B. Leader behaviors
C. Leader skills
D. Leader traits

10) Ethical behavior and integrity for a leader is most likely to result 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 a business
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 are backed by the U.S. government
B. invest in businesses that have generated a stable rate of profit for at least the past ten years
C. invest only in business opportunities where it is possible to take an active role in management
D. compare the risks of potential investments to their expected profits 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 activities of 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 its objectives is to

A. identify the best employees to fill each position within the organization
B. set specific short-term performance standards for each department
C. evaluate the desirability of issuing stocks or bonds in the current financial climate
D. identify the things it does well as an organization and the things 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 the ways they cooperate is through networking. Another way is by seeking technological knowledge and learning new processes from other firms that usually fall outside of their respective industries. We call this

A. competency capturing
B. technology swapping
C. benchmarking
D. broadening the knowledge base

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

A. accounting functions must be performed by an "outsider" (rather than by an employee of the business) in order to avoid conflicts of interest
B. accounting offers us insight into whether the business is financially sound
C. accounting involves mainly clerical activities and thus requires very little analysis
D. accounting deals exclusively with numbers

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

A. to provide financial information that is useful to decision makers
B. to meet the legal requirements of the Financial Accounting Standards Board (FASB)
C. to allow the government to track business activity levels
D. to compute the profit or loss and declared dividend of a business firm

19) An important advantage that knowledge technology has over older versions 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 need it
C. allows businesses to locate anywhere and still reach their customers
D. eliminates the need for business to store information electronically

20) First Engineering, a large U.S. based mechanical engineering firm, is considering entering the global market. Upon careful analysis 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 nontariff trade barriers
D. is big business today and is expected to be more important in the future

21) The process of setting up individual functional units of the business 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 fact that

A. it leads to groupthink
B. it avoids the pitfalls of division of labor, where workers become removed from thinking conceptually about the business
C. it is a detractor to others who are thinking about entering your industry because it successfully creates barriers to entry
D. it adds efficiency to the business's operation by identifying tasks 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 distribute them among competing groups and individuals
C. employs statistical techniques to make predictions about the evolution 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-interest produce goods, services, and wealth for others?

A. By taking advantage of a vast supply of labor, people working in their 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 for others.
C. The government pays entrepreneurs in the United States to produce goods, services, and wealth for others.
D. Entrepreneurs tend to include themselves in a group of people who need charitable support. A portion of the entrepreneur's profit (as required by law) goes to the charity of one's choice to support the 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 that in many firms it has become

A. a function performed by managers in all areas of the organization
B. the main responsibility of the firm's legal staff
C. a function handled only by specialists in the human resource department
D. function handled only by the firm's top management

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

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 changing rapidly, 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 a strategic plan?

A. Which specific jobs should be assigned to each employee?
B. How much output should be produced this week in a given production facility?
C. Which computer software package should the firm's human resources office use to manage the payroll?
D. Should the firm make a long-term commitment to expand into new markets?

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 primary plans do not achieve the desired results
C. developing detailed strategies about what is to be done, who is to do it, and how it is to be done
D. setting long run goals that will govern the general course of the organization for years

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