Business Fundamentals
Test Bank
Course Introduction
Business Fundamentals introduces students to the essential principles and practices that underpin the operation and management of modern organizations. Covering key topics such as organizational structure, marketing, finance, operations, and human resources, this course provides a broad overview of the functional areas within a business. Students will explore the external and internal environments that influence business decisions, develop critical thinking and problem-solving skills, and gain an understanding of ethical and global issues affecting business today. Through practical examples and case studies, the course prepares learners for advanced business studies and equips them with foundational knowledge necessary for success in various professional contexts.
Recommended Textbook
Business Essentials 9th Edition by Ronald J. Ebert
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2037 Verified Questions
2037 Flashcards
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Page 2
Chapter 1: The Us Business Environment
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132 Verified Questions
132 Flashcards
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Sample Questions
Q1) Which of the following, if True, would weaken the argument for a price increase?
A) The input costs of raw materials are expected to increase further in the coming months.
B) Customers are loyal to the brand mainly because they believe in the quality of ingredients used.
C) Anon's competitors have announced an increase in prices.
D) One of Anon's major competitors has just declared bankruptcy.
E) Market research done by the company reveals that demand for Widgets is readily affected by the price.
Answer: E
Q2) The pursuit of profits is how a business differs from organizations such as most universities, hospitals, and government agencies.
A)True
B)False
Answer: True
Q3) What is meant by the term capital?
Answer: Capital is the financial resources needed to start a business.
Explanation:Capital is needed for a business to obtain labor and other resources.
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3
Chapter 2: Business Ethics and Social Responsibility
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135 Verified Questions
135 Flashcards
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Sample Questions
Q1) Business ethics refers to ethical or unethical behaviors by employees in the context of their personal lives.
A)True
B)False
Answer: False
Q2) If MKD were to adopt a written code of ethics, what would it include generally?
Answer: All codes of ethics announce their intent to do business in an ethical manner.
Explanation:
Q3) There is general consensus within the United States that social responsibility must take precedence over profits.
A)True
B)False
Answer: False
Q4) If MKD adopts a defensive stance, how will the company respond to this situation?
Answer: MKD will file the necessary reports and perform any cleanup that is legally required. However, they will not exceed the actions required by law.
Explanation:
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Chapter 3: Entrepreneurship, New Ventures, and Business Ownership
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145 Verified Questions
145 Flashcards
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Sample Questions
Q1) Who constitutes the membership of SCORE?
A) retired executives
B) venture capitalists
C) company officers
D) commercial lenders
E) successful entrepreneurs
Answer: A
Q2) What does a start-up company need in order to estimate the required size of a plant, store, or office, to decide how much inventory to carry, and to determine how many employees to hire?
A) sales forecast
B) tax estimate
C) business objective
D) stock options
E) funding source
Answer: A
Q3) The number of minority-owned businesses has decreased in recent years.
A)True
B)False
Answer: False
Page 5
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Chapter 4: The Global Context of Business
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128 Verified Questions
128 Flashcards
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Sample Questions
Q1) A subsidy is a tax designed to help companies who import products.
A)True
B)False
Q2) Derrido's marketing director thinks that the company should craft a contractual agreement as an initial entry strategy, because the company might want to choose a more advanced entry strategy later. Which of the following, if True, would strengthen this position?
A) Foreign partners usually want to enter into contractual agreements with American companies for a long-term period.
B) A contractual agreement should spell out as many expectations of the foreign partner as possible.
C) Contractual agreements should be entered into only if the foreign partner is extremely reliable.
D) Contractual agreements require approval by legal specialists from all countries involved.
E) Contractual agreements allow a company to provide for open, flexible terms of operation.
Q3) Under what circumstances would telephone technology be considered a comparative advantage in Finland?
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Page 6
Chapter 5: Business Management
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125 Verified Questions
125 Flashcards
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Sample Questions
Q1) The marketing manager wants to increase regional sales by 2 percent each quarter over the next year. This is an example of what kind of goal?
A) long-term
B) intermediate
C) short-term
D) strategic
E) tactical
Q2) Marty uses computer forecasts to determine possible outcomes of an intended change in his division. What element of management is Marty utilizing?
A) strategy formulation
B) goal setting
C) crisis management
D) contingency planning
E) related diversification
Q3) How might a mission statement help Donna with her new business?
Q4) How will the types of goals that Donna will most likely make help her in growing her business?
Q5) Define the term management.
Q6) What are the basic steps in decision making?
Page 7
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Chapter 6: Organizing the Business
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Sample Questions
Q1) Discuss the difference between delegation and accountability.
Q2) Which of the following questions would most likely lead to a conflict between Design department members and Production department members?
A) Should Appleson invest in a new project that requires heavy initial investment but is expected to lead to a large stream of revenue in the long run?
B) Should a project be launched later than planned in order to make changes that will make it more attractive to customers?
C) Should product management focus on the needs that customers have already expressed or should it try to anticipate unexpressed needs?
D) Is the team project process at Appleson more effective than it would be if it followed a more traditional organizational structure?
E) When projects do not meet expectations, is the failure likely to be caused by faulty product design or inadequate market development?
Q3) A team organization typically does not utilize functional hierarchy.
A)True
B)False
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Chapter 7: Operations Management and Quality
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148 Verified Questions
148 Flashcards
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Sample Questions
Q1) Which of the following refers to the receiving, storing, handling, and counting of all raw materials, partly finished goods, and finished goods?
A) materials handling
B) inventory control
C) quality control
D) wholesaling
E) distribution control
Q2) Suppose that economists are forecasting a short economic recession followed by strong economic growth. How might a large manufacturing company adjust its capacity planning to respond to this forecast?
Q3) What is an operations capability?
Q4) When a company turns out ornaments in time for Christmas, it creates time utility. A)True
B)False
Q5) Explain competitive product analysis.
Q6) If a JIT production system is implemented at Sky Scooters, how might the firm's supply chain strategy be affected?
Q7) How are General Motors and Chrysler responding to current economic conditions?
Page 9
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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) 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
Q2) Behaviors that detract from, instead of contribute to, organizational performance are known as what?
A) inclusive
B) disruptive
C) counterproductive
D) turnover
E) associative
Q3) Positive reinforcement is used when a company or manager provides a reward when employees exhibit desired behaviors.
A)True
B)False
Q4) Why is workplace violence increasing?
Q5) With job sharing, companies often experience increased turnover.
A)True
B)False
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Chapter 9: Leadership and Decision Making
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129 Verified Questions
129 Flashcards
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Sample Questions
Q1) The situational approach to leadership was first proposed as a continuum of leadership behavior. Explain the two extreme ranges of the continuum.
Q2) Which of the following reflects the extent to which a leader is willing to gamble when making a decision?
A) escalation of commitment
B) overconfidence
C) caution
D) intuition
E) risk propensity
Q3) The ethical behaviors of top management are less of a concern today compared to the past.
A)True
B)False
Q4) Whereas managers focus on plans, results, and goals, what do leaders focus on?
A) productivity
B) profitability
C) people
D) sales
E) organization
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Chapter 10: Human Resource Management and Labor Relations
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120 Flashcards
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Sample Questions
Q1) Plants Galore is a business selling a range of indoor plants. In the past there has been a problem with plants being stolen by staff. Which of the following represents the biggest limitation in reference checks as a reliable way of assessing the value of prospective employees?
A) Reference checks are illegal in a number of states.
B) Reference checks obtained from previous employers are out of date.
C) Some previous employers may no longer be in business.
D) Some reference checks can be time consuming.
E) Reference checks tend to only tap positive recommendations.
Q2) Gretta is observing and interviewing several database administrators to determine the duties and responsibilities associated with their job as well as the knowledge, skills, and abilities that someone must have to perform the job. Which HR function is Gretta performing?
A) staffing
B) promotion
C) job analysis
D) training
E) retention
Q3) What is an impasse in labor relations?
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Q4) Describe the current trends in labor-management relations in the United States.
Chapter 11: Marketing Processes and Consumer Behavior
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130 Flashcards
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Sample Questions
Q1) Quinn Clothes is a successful business selling fashionable and athletic swimwear. The marketing staff has said that the company's plan to develop and market waterproof perfumes might be hindered by a lack of experience in the perfume field. Which of the following is the BEST response to that weakness?
A) Hire a chemist to develop the fragrances.
B) Seek product ideas from existing staff.
C) Employ new graphic designers to develop a new logo.
D) Ensure that the perfume can be sold in the same retail stores as the swimwear.
E) Rethink the company's promotional approach to selling products.
Q2) What is the term for the process of creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders?
A) financial planning
B) controlling
C) operations management
D) marketing
E) demographic profiling
Q3) How might economic environmental factors affect business for Panther Shoes?
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Chapter 12: Pricing, Distributing, and Promoting Products
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Sample Questions
Q1) Explain the difference between an electronic storefront and a cybermall.
Q2) Farrah explains why Superior Stereo Systems might not want to set prices for the Superior V at a level which maximizes profits. What do you expect that Farrah will tell Bill?
Q3) Which of the following terms refers to the monetary amount added to a product's cost to the seller in order to sell it at a target profit?
A) profit margin
B) breakeven cost
C) revenue
D) revenue margin
E) markup
Q4) Within which of the following storage facilities would one expect to see the widest variety of products stored?
A) private warehouse
B) public warehouse
C) food storage facility
D) department store distribution center
E) specialty store stockroom
Q5) What limits the economical use of railroads for transportation?
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Chapter 13: Information Technology for Business
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Sample Questions
Q1) A small parochial school uses handwritten timecards and attendance sheets to calculate biweekly payroll and vacation time. Which statement, if True, would BEST support the idea by managers to convert to computer software to maintain employee records?
A) The school has multiple types of employees, with different work schedules and different contracts, whose hours are calculated by hand.
B) Part-time staffing has been allocated for payroll and human resource function.
C) Employees often submit their timecards incorrectly.
D) Employees often forget to submit their vacation request forms.
E) The existing management is eager to switch to the new system for human resources.
Q2) Computer-aided design (CAD) can increase the productivity of knowledge workers. A)True
B)False
Q3) Bill has considered implementing a computer-aided design (CAD) system at Worldwide. How could Worldwide benefit from such a system?
Q4) Explain the danger of a computer virus.
Q5) Identify the threats and risks information technology poses on businesses.
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Page 15
Chapter 14: The Role of Accountants and Accounting Information
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117 Flashcards
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Sample Questions
Q1) The primary goal for the standard practices and principles in accountant reporting is to ensure external users that the information is accurate and has meaning.
A)True
B)False
Q2) An audit examines whether a firm's financial statement conforms to generally accepted accounting principles.
A)True
B)False
Q3) Which of the following, if True, would support the position that Julie should consider a specialty field in accounting?
A) Julie wants to eventually pursue an MBA degree.
B) Colleges have different policies on whether specialty accounting courses are required.
C) Julie is interested in financial crimes.
D) Julie is interested in helping a nonprofit organization.
E) Julie wants to work directly for a private company.
Q4) Rolanda suggests that Mary Ann may benefit from the services of a noncertified public accountant. What types of services could be provided?
Page 16
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Chapter 15: Money and Banking
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Sample Questions
Q1) Which of the three functions of money does a time deposit account most exemplify?
Q2) What are the components of the M-2 money supply?
Q3) In mutual savings banks, all depositors are considered owners of the bank.
A)True
B)False
Q4) Explain the need for requiring banks to be able to lend out only 90 percent of its deposit funds.
Q5) Which of the following financial institutions was taken over by the Federal House Finance Agency in 2008 as a part of the Emergency Economic Recovery Act?
A) Lehman Brothers Holdings
B) Bear Stearns Companies
C) Federal Home Loan Mortgage Corporation
D) Federal Home Loan Banks System
E) Federal Agricultural Mortgage Corporation
Q6) The Federal Reserve System has been instrumental in providing interbank clearing of electronic payments for the nation's financial institutions.
A)True
B)False
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Chapter 16: Managing Finances
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Sample Questions
Q1) Jessica Jenkins, a 30-year-old history teacher, planned to invest $10,000 in an equity mutual fund. She wanted a fund with maximum geographical diversification. Jessica was seeking high capital gains from her investment and was comfortable with a fair amount of risk. Which one of the following types of mutual fund would Jessica most likely choose?
A) large-cap technology fund
B) global large-cap value fund
C) global small-cap growth fund
D) Asian large-cap growth fund
E) foreign medium-cap growth fund
Q2) The NASDAQ is the largest exchange.
A)True
B)False
Q3) Lito is working with a discount broker. Which service would Lito NOT be likely to receive?
A) stock research
B) industry analysis
C) face-to-face consultations
D) screening for specific types of stocks
E) quality suggestions for investments
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