Business Foundations
Exam Solutions
Course Introduction
Business Foundations introduces students to the essential concepts and practices that underpin the modern business environment. Covering topics such as management, marketing, finance, operations, and organizational behavior, the course provides a holistic understanding of how businesses operate and succeed in a competitive marketplace. Students will explore foundational business theories, develop problem-solving skills through real-world case studies, and gain insights into ethical decision-making and the impact of globalization. This course serves as the cornerstone for further study in business disciplines and equips learners with the knowledge to make informed business decisions.
Recommended Textbook
Foundations of Business 6th Edition by
William M. Pride
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20 Chapters
3720 Verified Questions
3720 Flashcards
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Page 2
Chapter 1: Exploring the World of Business and Economics
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251 Verified Questions
251 Flashcards
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Sample Questions
Q1) The U.S.business system is commonly referred to as a mixed economy.
A)True
B)False
Answer: True
Q2) During the peak or prosperity stage of a nation's business cycle,businesses are reluctant to offer new products and services.
A)True
B)False
Answer: False
Q3) The Miller family owns and operates an interior decorating business.Henry installs hardwood floors and chair rails;Chloe reupholsters furniture and takes care of the finances;Charles designs and makes draperies and pillows;and Mary coordinates the overall color,look,and design.The process the Miller family uses to run its business is A) specialization.
B) division of service.
C) the factory system.
D) the domestic system.
E) the barter system.
Answer: A
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Page 3
Chapter 2: Ethics and Social Responsibility in Business
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282 Flashcards
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Sample Questions
Q1) What are the three sets of factors that influence the standards of behavior in an organization?
A) Organizational norms,circumstances,morals
B) Peer pressure,attitudes,social factors
C) Historical factors,management attitudes,opportunity
D) Opportunity,individual factors,social factors
E) Financial factors,opportunity,morals
Answer: D
Q2) False and misleading advertising is illegal and unethical.
A)True
B)False
Answer: True
Q3) A social audit is a
A) review of the costs of operating a social program.
B) report of what a business has done and is doing about social issues.
C) review of a tax statement by the Internal Revenue Service.
D) review of management's social activity for the year.
E) report filed by social sector accountants.
Answer: B
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Page 4
Chapter 3: Global Business
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257 Flashcards
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Sample Questions
Q1) The Organization of Petroleum Exporting Countries (OPEC)
A) was founded in 1975.
B) was conceived as a collective-bargaining unit.
C) was organized in response to the formation of the European Community.
D) was effective in increasing the supply of oil.
E) has as its objective completely free trade among its members.
Answer: B
Q2) The World Trade Organization was created by the A) Kennedy Round.
B) United Nations.
C) League of Nations.
D) Tokyo Round.
E) Uruguay Round.
Answer: E
Q3) If a country imports more than it exports,its balance of trade is said to be favorable.
A)True
B)False
Answer: False
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Chapter 4: Choosing a Form of Business Ownership
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221 Verified Questions
221 Flashcards
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Sample Questions
Q1) Which of the following statements is true?
A) Economists and financial analysts agree that mergers are good for the economy.
B) Takeovers always increase a firm's productivity.
C) Mergers in the first part of the twenty-first century will see an increase in debt financing.
D) Mergers in the first part of the twenty-first century will be driven by cash-rich companies looking to acquire businesses that will enhance their position in the marketplace.
E) There will be fewer mergers that involve investors from other countries.
Q2) Boeing is incorporated in Seattle,Washington.It has a large facility in Huntsville,Alabama,and is considered a(n)____ because it conducts business within Alabama.
A) outsider
B) domestic corporation
C) foreign corporation
D) tax write-off
E) alien corporation
Q3) Why is a sole proprietorship the most flexible type of business?
Q4) Why is the concept of unlimited liability a concern for the sole proprietor?
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Chapter 5: Small Business,Entrepreneurship,and Franchises
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219 Verified Questions
219 Flashcards
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Sample Questions
Q1) Service industries make up more than 48 percent of all small businesses.
A)True
B)False
Q2) Because of small-business competition,large companies must become more efficient and responsive to consumers' needs.
A)True
B)False
Q3) Production industries make up approximately what percentage of all small businesses?
A) 5
B) 10
C) 19
D) 31
E) 41
Q4) All of the following are franchise establishments except
A) McDonald's.
B) Walmart.
C) Holiday Inn.
D) Avis.
E) Dairy Queen.
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Chapter 6: Understanding the Management Process
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206 Flashcards
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Sample Questions
Q1) Foreign competition,poor financial performance,and more demanding customers have encouraged businesses to place more emphasis on quality.
A)True
B)False
Q2) Jessica is responsible for two departments that continually set conflicting goals.Jessica must get involved in ____ to achieve some sort of balance between those goals.
A) optimization
B) maximization
C) planning
D) controlling
E) organizing
Q3) Belinda is in charge of both accounting and investments and all of the employees involved with these functions at her firm.Belinda is a(n)____ manager.
A) executive
B) financial
C) first-line
D) middle
E) operations
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Page 8
Chapter 7: Creating a Flexible Organization
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198 Verified Questions
198 Flashcards
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Sample Questions
Q1) The number of layers,or levels,in a firm is referred to as the firm's
A) organizational structure.
B) managerial hierarchy.
C) cluster structure.
D) organizational height.
E) bureaucratic structure.
Q2) What are the advantages and disadvantages of a matrix structure?
Q3) The president of Digital Equipment Corporation discovered that his company was having a problem with counterproductive product groups who were working selfishly rather than cooperating with one another.To solve the problem,he combined the company's twelve U.S.product groups into three regional management centers.This solution is referred to as departmentalization by
A) location.
B) function.
C) product.
D) customer.
E) objective.
Q4) Managers within a line structure are typically known as staff managers.
A)True
B)False
Page 9
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Chapter 8: Producing Quality Goods and Services
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221 Flashcards
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Sample Questions
Q1) The cost of running out of inventory is referred to as a holding cost.
A)True
B)False
Q2) A doctor's office allows thirty minutes for each appointment.After taking a one-hour lunch break,the doctor's office has a(n)____ of sixteen patients a day if it is open from 8:00 a.m.to 5:00 p.m.
A) operating maximum
B) service line
C) capacity
D) labor availability
E)service plan
Q3) In a service industry such as a package carrier,the ____ of the conversion process is usually small or none at all.
A) focus
B) magnitude
C) width of processes
D) utility
E) result
Q4) Compare and contrast the ideas of labor-intensive and capital-intensive technology.
Page 10
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Chapter 9: Attracting and Retaining the Best Employees
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227 Flashcards
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Sample
Questions
Q1) Breakfast cereal maker General Mills periodically gives lump-sum payments to employees.The amount depends on job performance,with more productive employees receiving a larger sum than less productive employees.This motivational tool is A) a violation of the concept of comparable worth.
B) illegal under the Equal Pay Act.
C) profit-sharing.
D) acceptable under the employment-at-will clause of the Equal Pay Act.
E) an incentive payment.
Q2) A list of skills,abilities,education,and experience required for a position is called a job analysis.
A)True
B)False
Q3) A firm that properly manages cultural diversity can develop cost advantages over firms that do not manage diversity well.
A)True
B)False
Q4) Today,most companies do not require employment applications.
A)True
B)False
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Chapter 10: Motivating and Satisfying Employees
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212 Flashcards
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Sample Questions
Q1) Which of the following is not a level in Maslow's hierarchy of needs?
A) Self-actualization
B) Safety
C) Psychological
D) Social
E) Esteem
Q2) The employee motivation technique that permits employees to work from home all or a portion of the work week is known as
A) telecommuting.
B) job-sharing.
C) part-time work.
D) behavior modification.
Q3) The Human Side of Enterprise was a management book written by Frederick W.Taylor.
A)True
B)False
Q4) What are the benefits and the problems associated with telecommuting?
Q5) Theory Y is a set of assumptions that is consistent with scientific management.
A)True
B)False
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Chapter 11: Building Customer Relationships Through Effective Marketing
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217 Verified Questions
217 Flashcards
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Sample Questions
Q1) Turner Broadcasting Systems uses internal Web pages that all employees can access in order to share information and improve communication.This is a(n)
A) LAN.
B) Internet.
C) intranet.
D) MIS.
E) database.
Q2) Buying behavior may be defined as the decisions and actions of people involved in buying and using products.
A)True
B)False
Q3) If you have always been committed and loyal to Hewlett-Packard technology products,your customer lifetime value to Hewlett-Packard would likely be quite high.
A)True
B)False
Q4) Time,place,and possession utility have no real value in terms of money.
A)True
B)False
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Chapter 12: Creating and Pricing Products That Satisfy Customers
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281 Verified Questions
281 Flashcards
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Sample Questions
Q1) In which order do the stages of the product life-cycle occur?
A) Growth,introduction,maturity,decline
B) Introduction,maturity,slowdown,decline
C) Innovation,distribution,maturity,decline
D) Introduction,growth,maturity,decline
E) Introduction,growth,slowdown,decline
Q2) All of the following are characteristics of the introduction stage of the product life-cycle except
A) usually,a low profit or even a loss.
B) the appearance on the market of refinements or extensions of the original product.
C) relatively few competitors.
D) often,high price.
E) low consumer awareness and acceptance of the product.
Q3) Give the characteristics of shopping products,specialty products,and convenience products.Illustrate those characteristics with examples of products that fit the categories.
Q4) Would a new car equipped with a bumper jack,jack handle,spare tire,and warranty be the same product as the same car without these features? Explain.
Page 14
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Chapter 13: Distributing and Promoting Products
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252 Flashcards
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Sample Questions
Q1) All of the following are services provided by wholesalers to retailers except
A) buying in large quantities and selling in smaller quantities
B) promoting the product
C) supplying marketing information
D) manufacturing a wide selection of product
E) helping finance purchases
Q2) Refer to P&T Inc.During which step of the personal selling process should an P&T salesperson ask the prospect to buy the product?
A) Closing the sale
B) Prospecting
C) Answering objections
D) Approaching the prospect
E) Making the advertisement
Q3) A transportation firm that is available for hire by one or several shippers is a private carrier.
A)True
B)False
Q4) What are the four primary elements in an organization's promotion mix? Briefly describe each of the elements.
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Chapter 14: Exploring Social Media and E-Business
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154 Verified Questions
154 Flashcards
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Sample Questions
Q1) Which of the following companies was one of the early adopters of consumer ratings?
A) Facebook
B) Yelp
C) MySpace
D) Amazon
E) SocialLiving
Q2) Current estimates suggest that about ____ people in the world use the Web.
A) 200 million
B) 400 million
C) 800 million
D) 1.1 billion
E) 2.4 billion
Q3) Describe some of the ways that a business may choose to interact with other businesses or existing or potential consumers through social media.
Q4) Crowdsourcing involves outsourcing tasks to another business--most often a business overseas.
A)True
B)False
Q5) Describe how a blog could be beneficial for a company.
Page 16
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Chapter 15: Using Management and Accounting Information
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Sample Questions
Q1) Managerial accounting generates financial statements and reports for interested people outside an organization.
A)True
B)False
Q2) Because of the Sarbanes-Oxley Act,accountants must maintain financial documents and audit work for
A) six months.
B) one year.
C) three years.
D) five years.
E) ten years.
Q3) Cindy provides piano lessons to students in her home four days a week.The money she earns from providing these services would be called ____ on an income statement.
A) expenses
B) cash
C) revenues
D) retained earnings
E) equity
Q4) Explain why a firm's financial statements should be audited.
Page 17
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Chapter 16: Mastering Financial Management
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Sample Questions
Q1) JBP Incorporated's ____ has determined that the company should retain earnings for the year.This has been approved by the board of directors.
A) corporate management
B) common stockholders
C) preferred stockholders
D) corporate creditors
Q2) The quality of a firm's accounts receivables is the credit standing of the firm's customers,coupled with the customers' ability to repay their credit obligations.
A)True
B)False
Q3) A tool that managers use to estimate major expenditures for assets,expansion of facilities,and mergers and acquisitions is called a(n)
A) capital budget.
B) cash budget.
C) revenue forecast.
D) zero budget.
E) equity budget.
Q4) What is a trustee and why type of financing is a trustee associated with?
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Page 18
Chapter 17: Understanding Personal Finances and Investments
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Sample Questions
Q1) Which of the following is not a suggested tip for making investment decisions?
A) Do your homework about potential investments.
B) Keep copies of materials used to make investment decisions.
C) Monitor the value of your investments.
D) Keep accurate records.
E) Choose the least expensive online broker for stock purchases.
Q2) In order to reach goals of high dollar returns on your investments,what must you generally give up?
A) Risk
B) Safety
C) Stocks
D) Money
E) Return
Q3) How much money do most investment counselors recommend that an individual save for an emergency fund?
A) One month's living expenses
B) One month's gross salary
C) Two times the take-home salary
D) Three months' living expenses
E) Nine months' living expenses
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Chapter 18: Enhancing Union-Management Relations
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Sample Questions
Q1) What was the basis for the disputes between the AFL when they began to argue with the CIO in the mid-1900s?
A) The relative size and power of each of the unions
B) Which union represented unskilled workers and which represented skilled workers
C) One union should cease to exist because they were redundant
D) Which union had the right to represent particular groups of employees
E) Which union was more effective at winning benefits for its employees through the use of strikes
Q2) If the AFL-CIO were to set up a long-range strategic partnership with a company,which of the following could be included in the agreement?
A) Less employee involvement
B) Decreased worker accountability
C) Decreased worker responsibility and thus less stress
D) Increased costs
E) Increased worker participation in decision making
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Chapter 19: Risk Management and Insurance
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Sample Questions
Q1) What type of risk is uninsurable?
A) Speculative
B) Avoidable
C) Pure
D) Financial
Q2) Which of the following businesses is most likely to purchase a fidelity bond?
A) A law office that only receives payments by credit card
B) A doctor's office that only receives payments through insurance companies
C) A bank that receives cash and checks
D) A seller at farmer's markets who operates his or her business alone
Q3) Which of the following is not a type of insurance that is available through either federal or state governments?
A) Disability
B) Retirement
C) Liability
D) Medicare
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Chapter 20: Business Law regulation and Taxation
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Sample Questions
Q1) If Susana Lopez,a board member for 2M,Inc.,was invited to serve on the board of directors for May and Man,Corp.,a competitor,which of the following laws would dictate that she must refuse the invitation?
A) Sherman Act
B) Clayton Act
C) The Federal Trade Commission Act
D) Celler-Kefauver Act
Q2) Which of the following is not an example of real property?
A) Mobile home attached to a foundation
B) Storage shed not attached to the land
C) Factory
D) Garage
Q3) Which of the following is not true about bankruptcy?
A) It is more difficult to file a Chapter 7 bankruptcy now than it was many years ago.
B) To file for involuntary bankruptcy,creditors must prove that the individual has unsecured debt in excess of just over $15,000 and cannot pay its debts as they come due.
C) Bankruptcy can only be voluntary.
D) Today most bankruptcies are voluntary.
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Page 22