Business Concepts
Test Preparation
Course Introduction
This course provides a comprehensive introduction to fundamental business concepts essential for understanding the modern commercial environment. Topics covered include the principles of management, marketing, finance, accounting, entrepreneurship, and economics. Students will explore how businesses are structured and operated, analyze the various internal and external factors that influence decision-making, and examine the ethical and social responsibilities of organizations. Through case studies and practical examples, students will gain insights into real-world business scenarios, equipping them with a solid foundation for further study or entry into the business world.
Recommended Textbook
Business Essentials 9th Edition by Ronald J. Ebert
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16 Chapters
2037 Verified Questions
2037 Flashcards
Source URL: https://quizplus.com/study-set/1392
Page 2
Chapter 1: The Us Business Environment
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132 Verified Questions
132 Flashcards
Source URL: https://quizplus.com/quiz/27725
Sample Questions
Q1) A nation's economic system is its system for allocating its resources among its citizens, both individuals and organizations. Explain how the three economic systems allocate their resources.
Answer: A nation's resources, often referred to as the factors of production, include labor, capital, entrepreneurs, physical resources, and information resources. An economic system is defined by how it manages and allocates these factors of production. In a planned economy, for example, the factors of production are government owned and controlled. In a market economy, such as that of the United States, individual producers and consumers control production and allocation by creating combinations of supply and demand. In a mixed market economy, which features characteristics of both a planned and a market economy, there is some government control of some factors of production, often through the nation's major industries, such as transportation, communication, and information, alongside some private ownership.
Explanation:
Q2) Economic systems differ in how factors of production are used.
A)True
B)False
Answer: True
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Page 3
Chapter 2: Business Ethics and Social Responsibility
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135 Verified Questions
135 Flashcards
Source URL: https://quizplus.com/quiz/27726
Sample Questions
Q1) What must every corporation do in maintaining and reporting its financial status?
A) purchase stocks on margin
B) use creative accounting practices
C) support increased stock prices
D) aim to maximize predicted profit margins
E) conform to generally accepted accounting principles
Answer: E
Q2) Tiffany's Taffy Shop is known for its commitment to corporate social responsibility. However, the owner, Mrs. Wu, has learned that an employee has been unknowingly ordering candy wrappers that are harmful to the environment. How could Mrs. Wu best recover from this ethical lapse?
A) by firing the employee immediately
B) by seeking ways to remedy any harm that may have been caused
C) by considering ethics training for all employees
D) by ordering candy wrappers that are less expensive
E) by decreasing the amount of taffy sold
Answer: B
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Chapter 3: Entrepreneurship, New Ventures, and Business Ownership
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145 Verified Questions
145 Flashcards
Source URL: https://quizplus.com/quiz/27727
Sample Questions
Q1) Which of the following factors most contributes to small business failure?
A) managerial incompetence or inexperience
B) bad product design
C) legal problems
D) time spent raising capital
E) personnel issues
Answer: A
Q2) When can a sole proprietorship legally be dissolved?
A) sales exceed $1 million
B) the partners reorganize the firm's structure
C) earnings are less than $500,000
D) the owner donates profits
E) the owner dies
Answer: E
Q3) The number of minority-owned businesses has decreased in recent years.
A)True
B)False
Answer: False
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Chapter 4: The Global Context of Business
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128 Verified Questions
128 Flashcards
Source URL: https://quizplus.com/quiz/27728
Sample Questions
Q1) Revenue tariffs are primarily designed to discourage the importation of foreign products.
A)True
B)False
Q2) Which of the following types of tariff is meant to discourage the import of particular products?
A) revenue tariff
B) quota tariff
C) labor tariff
D) subsidy tariff
E) protectionist tariff
Q3) What are the advantages and disadvantages of globalization?
Q4) Which of the following is illegal in the United States?
A) dumping but not cartels
B) cartels but not dumping
C) only certain kinds of dumping and cartels
D) neither dumping nor cartels
E) both dumping and cartels
Q5) Other than a quota, embargo, or tariff, what legal barriers might the United States use to discourage the importation of cell phones?
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Chapter 5: Business Management
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125 Verified Questions
125 Flashcards
Source URL: https://quizplus.com/quiz/27729
Sample Questions
Q1) Why should Donna undertake an organizational analysis?
Q2) Which of the following, if True, would support the conclusion that Domino Grace rewards employees based on the process that led to results and not simply the results themselves?
A) When initiatives achieve especially strong results, employees often receive supplementary bonuses in excess of what is called for in their bonus plan.
B) Employees are not punished when initiatives fail due to changes in external environment that could not have been predicted.
C) Employees are often rewarded for successful initiatives even when the employees' efforts did not contribute to the success of the initiative.
D) Employees are rewarded for positive outcomes but not punished for negative ones.
E) Employees are punished for negative outcomes but not rewarded for positive ones.
Q3) Discuss the four main purposes of organizational goal setting.
Q4) What are the purposes of having a strong corporate culture?
Q5) Describe Best Buy's "centricity" initiative.
Q6) What is a mission statement?
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Chapter 6: Organizing the Business
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146 Verified Questions
146 Flashcards
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Sample Questions
Q1) The chain of command is depicted by solid lines on an organization chart. A)True
B)False
Q2) Describe a learning organization.
Q3) What authority is based on special expertise and usually involves counseling and advising?
A) line authority
B) matrix authority
C) delegated authority
D) staff authority
E) divisional authority
Q4) Organization charts are graphical representations of employee salary information. A)True
B)False
Q5) How might a divisional structure benefit Ace Products?
Q6) Why are centralization and decentralization, delegation, and authority the key ingredients in establishing the decision-making hierarchy?
Q7) What does a divisional structure rely on and why does it rely on this feature?
Q8) What are three factors that may impact span of control at Ace Products?
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Chapter 7: Operations Management and Quality
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148 Verified Questions
148 Flashcards
Source URL: https://quizplus.com/quiz/27731
Sample Questions
Q1) Which of the following best describes total quality management?
A) the principle that quality belongs to each person who creates it while performing a job
B) the consistency of a product's quality from unit to unit
C) the sum of all activities involved in getting high-quality products into the marketplace
D) the process by which a company analyzes a competitor's products to identify desirable improvements
E) a certification program attesting that an operations process has met rigorous requirements
Q2) Operations capability is a special ability that production does especially well to outperform the competition.
A)True
B)False
Q3) Value-added analysis might focus on both the elimination of waste and cost minimization.
A)True
B)False
Q4) What is quality ownership?
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Chapter 8: Employee Behavior and Motivation
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105 Verified Questions
105 Flashcards
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Sample Questions
Q1) Which of the following helps explain why some people do not work as hard as they can when their salaries are based purely on seniority?
A) two-factor theory
B) Maslow's hierarchy of human needs
C) scientific management
D) expectancy theory
E) Theory X and Theory Y
Q2) How can teams lead to higher levels of employee motivation and satisfaction in smaller firms?
Q3) Under what conditions might the use of work teams be inappropriate?
Q4) Job rotation is a form of job enrichment.
A)True
B)False
Q5) When people feel they are being inequitably treated, they are likely to ask for raises, increase their efforts, and work longer hours.
A)True
B)False
Q6) Why is workplace violence increasing?
Q7) Contrast Theory X and Theory Y.
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Chapter 9: Leadership and Decision Making
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129 Verified Questions
129 Flashcards
Source URL: https://quizplus.com/quiz/27733
Sample Questions
Q1) Based on the descriptions above, Tim Raitt and J. C. Kahn-Tinn would most likely disagree about the answer to which of the following questions?
A) Is effective leadership essential for strong business performance?
B) Are there any characteristics that many effective leaders have in common?
C) Could having a personality type be an advantage in one leadership context and a disadvantage in another?
D) What is the most appropriate definition of "effective leadership"?
E) What percentage of leaders are effective leaders?
Q2) Leadership neutralizers tend to outweigh a leader's ability to affect a subordinate's performance.
A)True
B)False
Q3) What is the difference between leadership and management within an organization?
Q4) How can norms and cohesiveness in a work group neutralize leadership?
Q5) What are three common constraints limiting the development of alternatives in the rational decision-making process?
Q6) What variables in the scenario indicate that a situational approach to leadership may be advisable?
Page 11
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Chapter 10: Human Resource Management and Labor Relations
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120 Verified Questions
120 Flashcards
Source URL: https://quizplus.com/quiz/27734
Sample Questions
Q1) Which of the following, if True, would MOST strongly support changing who is responsible for performance appraisals at Foothill?
A) The supervisors carrying out appraisals were all assigned to Foothill's central location, even though most of the employees they evaluated were at branches.
B) The web-based performance appraisal software already used by Cashcorp allows employees to do self-evaluations.
C) Cashcorp has a more detailed and clearer set of corporate objectives than Foothill used in appraisals.
D) Industry-wide research shows that peer appraisal has a more direct impact on employees than supervisor appraisal.
E) A regional news report claimed that Cashcorp was prepared to trim the Foothill workforce by up to 30 percent.
Q2) Employers can legally require a medical examination as a condition for making an offer of employment.
A)True
B)False
Q3) How do organizations develop workers' skills?
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Page 12
Chapter 11: Marketing Processes and Consumer Behavior
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130 Verified Questions
130 Flashcards
Source URL: https://quizplus.com/quiz/27735
Sample Questions
Q1) Identify the ways that small businesses can benefit from an understanding of the marketing mix.
Q2) Why is the role of the marketing manager and the culmination of the marketing plan critical for the company?
Q3) In his first staff meeting, a heated discussion erupts over the need to develop new products. The product manager explains that they have had a loyal following of consumers and do not need to develop new products. Others disagree. How should Martin respond?
Q4) Explain the elements that comprise the marketing environment.
Q5) Martin has begun to look at product differentiation strategies for Panther Shoes. Explain product differentiation.
Q6) Which of the following occurs between similar products and is based on buyers' perceptions of the benefits of products offered by particular companies?
A) international competition
B) substitute competition
C) brand competition
D) benefit competition
E) placement competition
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Chapter 12: Pricing, Distributing, and Promoting Products
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129 Verified Questions
129 Flashcards
Source URL: https://quizplus.com/quiz/27736
Sample Questions
Q1) Explain direct-response retailing.
Q2) Explain how trade shows work.
Q3) Which of the following pricing strategies best describes price lining?
A) setting an initial low price to establish a new product in the market
B) setting an initial high price to cover new product costs and generate a profit
C) setting individually negotiated prices for certain categories of products
D) setting a limited number of prices for certain categories of products
E) setting individually negotiated prices for all categories of products
Q4) An online comic book store is an example of which type of intermediary?
A) marketer
B) sales agent
C) broker
D) wholesaler
E) retailer
Q5) Differentiate between fixed costs and variable costs.
Q6) One drawback of nondirect distribution is higher prices.
A)True
B)False
Q7) List one advantage of using trucks for transportation and one disadvantage.
14
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Chapter 13: Information Technology for Business
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125 Verified Questions
125 Flashcards
Source URL: https://quizplus.com/quiz/27737
Sample Questions
Q1) One pitfall with VSAT satellite communications is that they tend to lack privacy.
A)True
B)False
Q2) What is the major limitation of Wi-Fi?
A) high cost
B) privacy concerns
C) productivity
D) short range of distance
E) installation challenges
Q3) Sally wants to determine any changes in the plant's performance based on an estimated 20 percent increase in sales. What device will Sally most likely use?
A) decision support system (DSS)
B) groupware application
C) spyware application
D) CAD system
E) enterprise resource planning (ERP)
Q4) What is the purpose of a knowledge information system?
Q5) Discuss the impacts information technology has had on the business world.
Q6) What is the difference between data and information?
Page 15
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Chapter 14: The Role of Accountants and Accounting Information
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117 Verified Questions
117 Flashcards
Source URL: https://quizplus.com/quiz/27738
Sample Questions
Q1) Due to investor disgruntlement, Howard Industries needs to provide a complete review of its financial records in order to confirm that they have been conforming with generally accepted accounting principles. Which of the following processes does Howard Industries need to start?
A) company-wide analysis
B) company-wide audit
C) portfolio analysis
D) preliminary investigation
E) fraud investigation
Q2) If a company's assets exceed its liabilities, owners' equity is negative.
A)True
B)False
Q3) Which are the two major fields of accounting?
A) managerial and forensic
B) financial and managerial
C) bookkeeping and advisory
D) corporate and individual
E) public and private
Q4) What is a leveraged buyout?
Q5) What is the accounting equation?
Page 16
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Chapter 15: Money and Banking
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119 Verified Questions
119 Flashcards
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Sample Questions
Q1) During these same hearings, several executives from the bailed-out banks testified that such financial perks as these bonuses were necessary to get the economy rolling again. What arguments might they have used?
Q2) The Norton County Bank performs such tasks as making monthly bill payments, managing investment portfolios, and managing the estates of deceased persons. What are such services called?
A) special banker's services
B) financial advice services
C) public services
D) trust services
E) amalgamation services
Q3) In which of the following financial institutions would all of the people who allow it to hold their funds be able to participate in major decision-making?
A) commercial bank
B) savings and loan association
C) savings institutions
D) credit union
E) pension fund
Q4) What is a debit card?
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Chapter 16: Managing Finances
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104 Verified Questions
104 Flashcards
Source URL: https://quizplus.com/quiz/27740
Sample Questions
Q1) Municipal bonds may be issued by federal, state, or local governments.
A)True
B)False
Q2) When an investment bank engages in underwriting, that investment bank is taking on risk in the process of launching new securities.
A)True
B)False
Q3) An investment bank is a financial institution that specializes in issuing and reselling new securities.
A)True
B)False
Q4) An investment bank operates in the secondary securities market.
A)True
B)False
Q5) What are low grade bonds usually called?
A) bankruptcy
B) default bonds
C) junk bonds
D) corporate bonds
E) grade B bonds
Page 18
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