BA 151 Practice Quiz

Products
_____ are best described as goods or services with both tangible and intangible characteristics that provide satisfaction and benefits.
A
The focus of all marketing activities is to:
A: satisfy customer needs.
B: ensure operating efficiency.
C: facilitate manufacturing.
D: enable healthy competition.
E: manage the tasks involved in staffing
C
Which of the following statements is true of nonprofit organizations?
A: They are firms that do not provide goods or services.
B: They are startup companies that have not yet generated any profits.
C: They engage in management activities to help reach their goals.
D: They do not engage in fundraising as their aim is not to generate profits.
E: They do not have a management structure like that of for-profit organizations.
E
Which of the following statements is true of the people and activities involved in business?
A: The president of a company, who is not the owner, has to put up resources—money or credit—to start a business.
B: People and forces beyond an organization’s control do not have an impact on the daily operations of businesses.
C: A nonprofit organization does not use promotional strategies as it is not concerned with profits.
D: Employees have the most to lose if a business fails to make a profit.
E: Managers control the tasks required to carry out the work of a company or nonprofit organization.
A
In the context of business, which of the following statements is true of resources?
A: Being socially responsible is considered a resource for a firm.
B: Good reputation for quality services does not constitute a resource.
C: Human resources refer to the products that are made by people.
D: The funds used to acquire land can be classified as natural resources.
E: Intangible resources are those that do not provide a competitive advantage.
D
The Wok has been consistently ranked as the most popular fast food restaurant in the city, thanks to the excellent culinary skills of its well-trained staff and its remarkable customer service. The competitive advantage of The Wok is due to its _____ resources.
A: Natural
B. Market
C: Capital
D: Human
E: Financial
E
A firm’s good reputation for quality customer service is categorized as its _____.
A: capital resources
B: human resources
C: financial resources
D: natural resources
E: intangible resources
C
Which of the following statements is true of communist economies?
A- In practice, they have a high standard of living.
B- In practice, they seldom face shortages in consumer goods.
C- On paper, they appear to be efficient and equitable.
D- In theory, they produce a huge gap between rich and poor.
E- In practice, they regulate prices of goods based on supply and demand.
C
Which of the following statements is true of socialism?
A- There is only private ownership of business.
B- There is only government ownership of all factors of production.
C- The government owns and operates basic industries.
D- The government disregards basic individual freedoms.
E- The citizens cannot own or operate businesses.
D
Identify a true statement about communism.
A- Communism limits central government planning.
B- Communism disregards Karl Marx’s ideal.
C- Communism guarantees high standards of living.
D- Communism is declining and its future as an economic system is uncertain.
E- Communism allows consumers to have a wide choice of goods and services.
D
Which of the following social responsibility issues is associated with unsatisfied product users writing emails to companies, lobbying government agencies, making public service announcements, and boycotting reckless companies?
A- Relations with owners
B- Relations with competitors
C- Supplier relations
D- Consumer relations
E- Employee relations
B
In the United States, if a salesperson brought a fancy gift to a potential client on their first meeting, it might be considered as:
A: appropriate.
B: a bribe.
C: expected.
D: an embargo.
E: a social responsibility.
C
Which of the following statements is true of business ethics?
A: All business actions deemed unethical by society are necessarily illegal.
B: Business ethics and personal ethics are synonymous.
C: The acceptability of behavior in business is determined by not only an organization but also its stakeholders.
D: Business ethics is independent of an organizational culture.
E: Profit in business is the only glue that holds relationships together.
D
An organization that contributes to the community it operates in and toward the quality of life is fulfilling its:
A- economic responsibility.
B- legal responsibility.
C- ethical responsibility.
D- voluntary responsibility.
E- political responsibility.
A
One of the principal causes of unethical behavior in organizations is:
A- overly aggressive business objectives.
B- environmental marketing.
C- a high rate of employee turnover.
D- globalization and technological advancement.
E- the presence of a code of ethics.
D
Which of the following is highlighted in John F. Kennedy’s 1962 Consumer Bill Of Rights?
A- The right to own property
B- The right to sell assets
C- The right to minimum prices
D- The right to safety
E- The right to vote
B
According to the pyramid of social responsibility, which of the following forms the economic foundation of a business?
A- Being a good corporate citizen
B- Earning profits
C- Doing what is right
D- Obeying the law
E- Saving the environment
A
Which of the following is true of the four dimensions of social responsibility?
A- Legal and economic concerns have long been acknowledged in business, but voluntary and ethical issues are more recent concerns.
B- Organizations can fulfill their legal responsibilities only after they have fulfilled their voluntary responsibilities.
C- Political responsibilities of a firm are additional activities that may not be required but which promote human welfare or goodwill.
D- Complying with the law is the final step in the pyramid of social responsibility.
E- Being profitable is not a social responsibility of businesses.
D
A(n) _____ is a type of import tax that is based on the value of an item brought into a country.
A- capital gain
B- embargo
C- stipend
D- ad valorem tariff
C- quota
B
What would happen if the United States government had to devalue the dollar?
A- It would make trips to the United States more expensive for foreign tourists.
B- It would lower the cost of American goods abroad.
C- It would discourage the sale of domestic goods.
D- It would reduce the cost of purchasing goods from abroad.
E- It would make trips to other countries less expensive for American tourists.
D
The Organization of Petroleum Exporting Countries (OPEC) consists of 12 member countries across three continents. It aims to increase the price of petroleum throughout the world and to maintain high prices. This organization is an example of a _____.
A- customs union
B- trade bloc
C- franchise
D- cartel
E- conglomerate
B
Which of the following techniques does a firm use to fend off a hostile takeover attempt if the firm’s management requires a large majority of stockholders to approve the takeover?
A- A poison pill
B- A shark repellent
C- A white knight
D- A class action
E- A leveraged buyout
D
_____ are especially popular in situations that call for large investments and can even take place between businesses and governments.
A- Sole proprietorships
B- Cooperatives
C- General partnerships
D- Joint ventures
E- Private corporations
A
When a firm allows stockholders to buy more shares of stock at prices lower than the current market value, the firm is using a _____.
A- poison pill
B- shark repellent
C- white knight
D- tender offer
E- leveraged buyout
D
Public corporations must file reports related to stocks and bonds with the:
A- Financial Accounting Standards Board.
B- Federal Trade Commission.
C- National Advisory Committee on Accounting Standards.
D- Securities and Exchange Commission.
E- Warren Commission.
E
The difference between a horizontal merger and a vertical merger is that:

A- companies operating at different but related levels of an industry merge in a horizontal merger, whereas firms that make and sell similar products to the same customers merge in a vertical merger.

B- two firms in unrelated industries merge in a horizontal merger, whereas firms that make and sell similar products to the same customers merge in a vertical merger.

C- companies operating at different but related levels of an industry merge in a horizontal merger, whereas two firms in unrelated industries merge in a vertical merger.

D- one corporation merges with one of its customers or suppliers in a horizontal merger, whereas a firm merges with its direct competitor in a vertical merger.

E- firms that make and sell similar products to the same customers merge in a horizontal merger, whereas companies operating at different but related levels of an industry merge in a vertical merger.

D
_____ are a form of business organization that are expected to operate without profit or to create only enough profit to maintain an organization.
A- Sole proprietorships
B- Joint ventures
C- Corporations
D- Cooperatives
E- General partnerships
E
Which of the following strategies used by businesses to grow reduces the number of corporations competing in an industry and needs to be reviewed carefully by federal regulators?
A- A vertical integration
B- An equity carve-out
C- A conglomerate diversification
D- A divestment
E- A horizontal merger
D
Which of the following statements is true about high-technology businesses?
A- Unlike retailing, high technology as an industry is not suitable for small businesses and entrepreneurs.
B- Small businesses do not provide any employment opportunities to high-tech workers.
C- High-technology businesses have low initial startup costs.
D- High-technology businesses require greater capital than other small businesses.
E- Small-business owners in the high-technology industry find it impossible to focus on specific groups of consumers.
C
Which of the following is a source of debt financing?
A- Reinvesting a small portion of profits back into a business
B- Using personal assets like savings in a bank to start a business
C- Obtaining a mortgage by providing some personal property as collateral
D- Selling stocks of a company to friends and relatives
E- Selling ownership interest or stock to people interested in funding a business idea
B
To avoid the difficulties involved in starting a business from scratch, Sana decides to obtain the rights to operate an outlet of a popular spa and salon chain. This business arrangement requires Sana to pay an annual fee to the owner of the chain. In this scenario, Sana is a(n) _____.
A- trade creditor
B- franchisee
C- category captain
D- intrapreneur
E- venture capitalist
E
Justin and Laura have a business idea that they plan to commercialize. They have approached an independent investor to raise funds for their business. If they can impress the investor with their business idea, the investor will agree to provide the necessary amount of money in return for some ownership share in the company. The independent investor that Justin and Laura are banking on is referred to as a _____.
A- debt financier
B- contract manufacturer
C- category captain
D- trade creditor
E- venture capitalist