Business Fundamentals
Test Preparation
Course Introduction
Business Fundamentals introduces students to the essential principles and practices that form the foundation of the business world. The course covers key topics such as organizational structure, management, marketing, finance, operations, and business ethics. Through case studies, real-world examples, and interactive activities, students develop a broad understanding of how businesses function, make decisions, and address challenges in dynamic economic environments. By the end of the course, students gain the foundational knowledge and critical thinking skills necessary to navigate complex business situations and pursue further studies in specialized business disciplines.
Recommended Textbook
Business A Changing World 9th Edition by
O. C. Ferrell
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16 Chapters
1518 Verified Questions
1518 Flashcards
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Page 2
Chapter 1: The Dynamics of Business and Economics
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95 Verified Questions
95 Flashcards
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Sample Questions
Q1) When a business fails or does not make a profit,_______ have the most to lose.
A) customers
B) workers
C) managers
D) owners
E) consumers
Answer: D
Q2) Most socialist nations are democratic.
A)True
B)False
Answer: True
Q3) Nonprofit organizations such as Habitat for Humanity do not engage in management,marketing,or finance activities.
A)True
B)False
Answer: False
Q4) In a free-market system,the government regulates business.
A)True
B)False
Answer: False
Page 3
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Chapter 2: Business Ethics and Social Responsibility
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94 Verified Questions
94 Flashcards
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Sample Questions
Q1) There are four dimensions of social responsibility: economic,legal,ethical,and voluntary.
A)True
B)False
Answer: True
Q2) Establishing and enforcing ethical standards and policies within business can help reduce unethical behavior by prescribing which activities are acceptable and which are not and by removing the opportunity to act unethically.
A)True
B)False
Answer: True
Q3) The warning on cigarette packages about the health implications of smoking is an example of which of the following ethical issues?
A) Conflict of interest
B) Fairness and honesty
C) Communications
D) Relationships within a business
E) Environmental issues
Answer: C
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Page 4
Chapter 3: Business in a Borderless World
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95 Verified Questions
95 Flashcards
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Sample Questions
Q1) Companies should conduct environmental analyses before beginning to do business internationally in order to evaluate potential for problems associated with different markets and to develop a _______ for those markets.
A) SWOT matrix
B) plan
C) strategy
D) market
E) product Answer: C
Q2) A strategic alliance is a partnership formed to create competitive advantage on a worldwide basis.
A)True
B)False Answer: True
Q3) Political considerations change slowly,while laws change rapidly.
A)True
B)False
Answer: False
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Page 5
Chapter 4: Options for Organizing Business
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95 Flashcards
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Sample Questions
Q1) When a group of investors borrows money to buy a company or division,using the company's assets to guarantee the loan,it is called a(n)
A) acquisition.
B) merger.
C) leveraged buyout.
D) tender offer.
E) poison pill.
Q2) Sole proprietorships have the least degree of secrecy.
A)True
B)False
Q3) How do preferred stockholders differ from the common stockholders of a corporation?
Q4) One of the most popular and easiest to establish forms of business in the United States is the
A) partnership.
B) sole proprietorship.
C) corporation.
D) joint venture.
E) cooperative.
Q5) What are sole proprietorships? Provide an example.
Page 6
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Chapter 5: Small Business, entrepreneurship, and Franchising
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95 Flashcards
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Sample Questions
Q1) The money used to start a business and keep it running is also called A) capital.
B) trade.
C) currency.
D) leverage.
E) stock.
Q2) The Small Business Administration
A) was established by the U.S.Chamber of Commerce to encourage the entrepreneurial spirit.
B) is an independent agency of the federal government to provide managerial and financial assistance to small businesses.
C) is a subsidiary of the Better Business Bureau.
D) is a division of the federal government that is responsible for ensuring that newly formed businesses adhere to the law.
E) is a U.S.Congressional agency that fosters the establishment of new businesses.
Q3) The future for small business looks bleak.
A)True
B)False
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Chapter 6: The Nature of Management
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95 Flashcards
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Sample Questions
Q1) _____ make decisions about the use of an organization's resources and are concerned with planning,organizing,leading,and controlling the organization's activities.
A) Managers
B) Shareholders
C) Employees
D) Consumers
E) Suppliers
Q2) Management is a process designed to achieve an organization's objectives by using its resources ____________ (accomplishing the objectives with a minimum of resources)and _________________ (having the intended result).
A) effectively;efficiently
B) efficiently;effectively
C) quickly;competently
D) competently;quickly
E) thoroughly;completely
Q3) The first step in good managerial decision making is developing options.
A)True
B)False
Q4) Describe the major functions of management.
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Chapter 7: Organization, teamwork, and Communication
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Sample Questions
Q1) Product departmentalization allows the coordination of all activities related to a product or product group and simplifies decision-making.
A)True
B)False
Q2) What are the different means of organizational departmentalization? Be sure to give an illustrative example of each.
Q3) Which of the following organizational forms is also called a project management structure?
A) Bureaucratic structure
B) Line structure
C) Multidivisional structure
D) Matrix structure
E) Line-and-staff structure
Q4) All of the following are approaches to departmentalization except A) function.
B) product.
C) geographic region.
D) customer.
E) line.
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Chapter 8: Managing Service and Manufacturing Operations
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95 Verified Questions
95 Flashcards
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Sample Questions
Q1) A metal fabrication plant with a cutting department,a drilling department,and a polishing department would likely use which of the following layouts?
A) Fixed position
B) Horizontal position
C) Process
D) Geographical
E) Customer based
Q2) What is quality control?
Q3) An organization that creates many products with similar characteristics,such as automobiles,television sets,or vacuum cleaners,would most likely be which of the following types of organizations?
A) Continuous manufacturing
B) Intermittent manufacturing
C) Project manufacturing
D) Assembly line
E) Fixed-position
Q4) What is the economic order quantity model?
Q5) What is sustainability and how does it pertain to manufacturing?
Q6) What is total quality management?
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Chapter 9: Motivating the Workforce
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95 Flashcards
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Sample Questions
Q1) Which of the following adds tasks to a job instead of treating each task as a separate job?
A) Job rotation
B) Job enlargement
C) Job enrichment
D) Job design
E) Job reduction
Q2) Human relations is not concerned with what motivates employees on the job.
A)True
B)False
Q3) TNT Incorporated recently implemented a participative management program in which it gave teams of workers more control and authority over their jobs.It is using which of the following job designs?
A) Job rotation
B) Job enlargement
C) Job enrichment
D) Flexible scheduling strategies
E) Job specialization
Q4) What is Theory Z? How does it differ from Theory X?
Q5) What were the Hawthorne Studies?
11
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Chapter 10: Managing Human Resources
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Sample Questions
Q1) Workers seeking to improve pay and working conditions may join together to form a labor
A) group.
B) cooperative.
C) committee.
D) union.
E) force.
Q2) A lockout is a court order that keeps employees from striking.
A)True
B)False
Q3) Wages are based on the number of hours an employee works or the output achieved.
A)True
B)False
Q4) What can Medallion do to make the team approach work more smoothly? What role do you think diversity training should play?
Q5) Training involves teaching managers and professionals how to perform their jobs. A)True B)False
Q6) What is human resources management?
Q7) Discuss tactics labor and management may use to gain their objectives.
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Chapter 11: Customer-Driven Marketing
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95 Verified Questions
95 Flashcards
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Sample Questions
Q1) How can new Internet technologies such as on online social networking be used in marketing research?
Q2) If a company develops an advertising campaign that targets a segment of consumers with a certain income and education,the company is using the following segmentation variable:
A) behavioristic.
B) demographic.
C) psychographic.
D) geographic.
E) topographic.
Q3) To implement the marketing concept,a company must do all of the following except. A) have good information about what consumers want.
B) adopt a consumer orientation.
C) coordinate its efforts throughout the entire organization.
D) adopt a sales orientation.
E) achieve its own goals.
Q4) The forces in the marketing environment are totally uncontrollable.
A)True
B)False
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Chapter 12: Dimensions of Marketing Strategy
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94 Flashcards
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Sample Questions
Q1) Which of the following modes of transportation is the least expensive for many products?
A) Railroad
B) Trucking
C) Air transport
D) Shipping
E) Pipelines
Q2) What are objectives behind pricing,and what different considerations go into determining the price of a product?
Q3) The best products in the world will not be successful unless companies make them available where and when consumers want to buy them.
A)True
B)False
Q4) Which of the following is the most flexible variable in the marketing mix?
A) Product
B) Production
C) Place
D) Promotion
E) Price
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Chapter 13: Digital Marketing and Social Networking
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Sample Questions
Q1) ___________ occurs when criminals obtain personal information that allows them to impersonate someone else in order to use the person's credit to obtain financial accounts and make purchases.
A) Privacy violations
B) Identity theft
C) Bank fraud
D) Intellectual property theft
E) Online fraud
Q2) The correct blend of traditional and new digital media marketing will vary depending on the business,its size,and its target market.
A)True
B)False
Q3) Consumers' tendency to trust other consumers over corporations is one factor behind the rise in consumer-generated information.
A)True
B)False
Q4) Discuss how digital marketing has altered the marketing mix.Be sure to outline what elements of the marketing mix have stayed the same.
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Chapter 14: Accounting and Financial Statements
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Sample Questions
Q1) The ratio that reflects a company's liquidity after excluding inventory is which type of ratio?
A) Past
B) Current
C) Future
D) Slow
E) Quick
Q2) In double-entry bookkeeping,after gathering together and analyzing source documents and recording each financial transaction in a journal,a financial manager,bookkeeper,or accountant next
A) closes out the books.
B) posts transactions in a journal.
C) posts transactions in a ledger.
D) prepares a trial balance.
E) balances the accounting equation.
Q3) Liquidity ratios show how fast a company can turn current assets into cash to pay off short-term debt.
A)True
B)False
Q4) How do managers and owners use financial statements?
Page 16
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Chapter 15: Money and the Financial System
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Sample Questions
Q1) What are the different types of checking accounts outlined in your text?
Q2) Investment bankers offer short-term loans at substantially higher interest rates than banks.
A)True
B)False
Q3) When inflation is very high,money is no longer a ______ means of exchange.
A) stable
B) portable
C) durable
D) divisible
E) difficult to counterfeit
Q4) During the financial crisis,many large banks saw their capital base grow.
A)True
B)False
Q5) Which single financial institution is likely to be best able to meet Hill's small company's needs now? Why?
Q6) Credit cards have become quite popular as a substitute for money.Why?
Q7) The Federal Reserve provides national check processing. A)True B)False
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Chapter 16: Financial Management and Securities Markets
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Sample Questions
Q1) Why is financing more difficult for fixed assets than for current ones?
Q2) Interest is a percentage of the principal that the bank charges for use of its money. A)True
B)False
Q3) Are banks the only sources of short-term funds for businesses?
Q4) Retained earnings may be used to finance long-term assets. A)True
B)False
Q5) If a boat manufacturer orders 50 units of fiberglass material and secures trade credit,promising to pay the supplier at a later date,the manufacturer will record the amount to be paid as a(n)
A) account receivable.
B) current asset.
C) long-term liability.
D) account payable.
E) equity account.
Q6) Why would a firm want to invest its idle cash?
Q7) Other than bank loans and short-term loans,discuss how firms raise long-term capital using liabilities.
Page 18
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