Foundations of Business Test Preparation
Course Introduction
Foundations of Business offers an introduction to the core concepts and principles that form the basis of the business world. The course covers essential topics such as management, marketing, finance, operations, and entrepreneurship, providing students with a well-rounded understanding of how organizations operate in both local and global environments. Through real-world case studies and practical examples, students gain insights into ethical decision-making, business strategy, and the importance of innovation. This foundational course equips learners with the knowledge and skills required to succeed in advanced business studies and thrive in diverse professional settings.
Recommended Textbook
Business in Action 7th Edition by Courtland L. Bovee
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20 Chapters
2000 Verified Questions
2000 Flashcards
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Chapter 1: Developing a Business Mindset
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100 Verified Questions
100 Flashcards
Source URL: https://quizplus.com/quiz/41393
Sample Questions
Q1) Compare and contrast the social environment and the economic environment of a business.
Answer: Social environment refers to the trends and forces in society at large.For instance,all companies are affected by population trends that change the composition of consumer markets and the workforce. The economic environment of a business consists of the conditions and forces that (a)affect the cost and availability of goods,services,and labor and (b)thereby shape the behavior of buyers and sellers.For example,a growing economy can help companies by increasing demand and supporting higher prices for their products,but it can also raise the costs of labor and the materials the companies need to do business.
Q2) A company has competitive advantage when its products are more appealing to its chosen customers.
A)True
B)False
Answer: True
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Chapter 2: Understanding Basic Economics
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100 Verified Questions
100 Flashcards
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Sample Questions
Q1) ________ taxes,levied on retail purchases made by customers,are collected by retail businesses at the time of the sale and then forwarded to state governments.
A) Income
B) Property
C) Sales
D) Excise
E) Payroll
Answer: C
Q2) Capital includes land and minerals that a business needs in order to produce goods and services.
A)True
B)False
Answer: False
Q3) Monetary policy involves changes in the government's revenues and expenditures to stimulate a slow economy or dampen a growing economy that is in danger of overheating and causing inflation.
A)True
B)False
Answer: False
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Page 4
Chapter 3: The Global Marketplace
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100 Flashcards
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Sample Questions
Q1) Foreign direct investment (FDI)________.
A) usually does not receive support from domestic governments
B) carries much lesser political risk
C) typically gives companies greater control
D) carries much lesser economic risk
E) is less complex than any other form of global entry
Answer: C
Q2) An embargo is a complete ban on the import or export of certain products or even all trade between certain countries.
A)True
B)False
Answer: True
Q3) Comparative advantage theory states that countries should produce and sell to other countries those things it can produce most efficiently.
A)True
B)False
Answer: True
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Chapter 4: Business Ethics and Corporate Social Responsibility
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100 Flashcards
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Sample Questions
Q1) Compare and contrast the minimalist and the purely cynical perspective on corporate social responsibility.
Q2) Toy Land,Inc.was criticized for selling toys that had lead paint and were proven to be harmful for children.The company recalled several batches of toys.It responded to these accusations by changing its logo to include a recycle theme,using advertisements that promoted waste management and recycling,and providing Toy Land,Inc.branded reusable shopping bags at their store.However,the firm did not undertake any specific measures to avoid using toxic materials in its products.This is an example of ________.
A) proactive CSR
B) cynical CSR
C) minimalistic CSR
D) primary CSR
E) philanthropic CSR
Q3) What is defensive CSR? How is it different from proactive CSR?
Q4) Compare and contrast philanthropy and strategic CSR.
Q5) Whistle-blowing is illegal.
A)True
B)False
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Q6) Compare and contrast the various approaches used to resolve ethical dilemmas.
Chapter 5: Forms of Ownership
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Sample Questions
Q1) A partnership is a company that is owned by two or more people but is not a corporation.
A)True
B)False
Q2) A public corporation refers to a corporation ________.
A) that is allowed to sell stock only to a limited number of investors
B) whose stock is sold to general people
C) that is owned solely by the federal government
D) that is owned solely by state/federal government
E) whose stock is not traded in stock exchanges or other markets
Q3) Corporate officers are the ________.
A) people who elect directors of a company
B) official representatives of shareholders
C) top executives who run a corporation
D) middle level managers of a corporation
E) lower level employees of an organization
Q4) Government agencies require publicly traded companies to publish extensive and detailed financial reports.
A)True
B)False
Page 7
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Chapter 6: Entrepreneurship and Small Business Ownership
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Sample Questions
Q1) Which of the following statements is TRUE about the Service Corps of Retired Executives (SCORE)?
A) It is a resource partner of the SBA.
B) It works on a contractual basis with large businesses.
C) It offers advice and one-to-one counseling to entrepreneurs, in return for company shares.
D) It offers resources and programs to minority-owned businesses.
E) It hires retired executives to work as consultants for a nominal fee.
Q2) Intrapreneurship refers to ________.
A) entrepreneurial efforts within a larger organization
B) starting a business by buying into a franchise system
C) starting a business by buying an existing independent business
D) individuals who are responsible for strategic corporate social responsibility activities within an organization
E) the processes, customs, policies, laws, and institutions, which have an effect on the way a company is controlled
Q3) Discuss banks and microlenders as sources of private financing.How does it differ from seeking funds by going public?
Q4) Compare and contrast lifestyle businesses with high-growth ventures.
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Chapter 7: Management Roles, Functions, and Skills
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Sample Questions
Q1) An economic slowdown is viewed as a weakness in the SWOT analysis of a firm.
A)True
B)False
Q2) Compare and contrast an organization's strengths with opportunities.
Q3) Leading is the process of influencing and motivating people to work willingly and effectively toward common goals.
A)True
B)False
Q4) Which of the following is an example of an administrative skill that managers possess?
A) ability to make correct hiring decisions
B) being skillful in information gathering
C) being skillful in operating machines
D) ability to understand others' feeling
E) having a sense of empathy with subordinates
Q5) Compare and contrast the roles of top managers and middle managers.
Q6) A value statement does not establish expectations for an organization's employees.
A)True
B)False
Page 9
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Chapter 8: Organization and Teamwork
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Sample Questions
Q1) Which of the following does an organization chart do?
A) depicts the attrition rate in the organization
B) depicts the costs incurred by the organization
C) shows lines of authority in the organization
D) shows the performance of the organization
E) shows the growth curve of employees
Q2) Which of the following is a defining characteristic of the storming stage of Bruce Tuckman's model of team development?
A) It is a period of orientation and ice-breaking.
B) It is the stage in which issues are wrapped up, and the team is dissolved.
C) It is the stage in which conflicts arise as members jockey for position or form coalitions to promote their own perceptions of the team's mission.
D) It is the stage in which members come to understand and accept one another, choose their leader, and agree on member roles.
E) It is the stage when team members become acquainted with each other's task orientation.
Q3) Compare and contrast functional structure with divisional structure.
Q4) Compare and contrast matrix structure with network structure.
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Page 10
Chapter 9: Production Systems
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100 Flashcards
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Sample Questions
Q1) ________ refers to the efficiency with which an organization can convert inputs to outputs.
A) Productivity
B) Sustainability
C) Security
D) Capacity
E) System value
Q2) Inventory control refers to determining how much of what to have on hand at any given time.
A)True
B)False
Q3) ________ refers to contracting out certain business functions or operations to other companies.
A) Outsourcing
B) Scaling
C) Rescaling
D) Customization
E) External valuation
Q4) Describe lean systems and just-in-time (JIT)inventory systems.
Q5) Compare and contrast quality control and quality assurance.
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Chapter 10: Employee Motivation
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100 Flashcards
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Sample Questions
Q1) ________ refers to a model suggesting that five core job dimensions influence three critical psychological states that determine motivation,performance,and other outcomes.
A) Job characteristics model
B) Management by objectives
C) Goal-setting theory
D) Theory X
E) Theory Y
Q2) ________ suggests that employee satisfaction depends on the perceived ratio of inputs to outputs.
A) Maslow's hierarchy
B) Herzberg's two-factor theory
C) David McClelland's three needs theory
D) Expectancy theory
E) Equity theory
Q3) At the top of Maslow's hierarchy is self-actualization need.
A)True
B)False
Q4) What is the difference between negative reinforcement and punishment?
Q5) Compare and contrast scientific management with Hawthorne effect.
Page 12
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Chapter 11: Human Resources Management
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100 Flashcards
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Sample Questions
Q1) Roughly,10 percent of U.S.workers can be categorized as contingent employees.
A)True
B)False
Q2) Compare and contrast wage and salary?
Q3) ________ refers to a statement of the tasks involved in a given job and the conditions under which the holder of a job will work.
A) Job specification
B) Job description
C) Succession planning
D) Job analysis
E) Job enrichment
Q4) Creation of a sexist environment in which employees are made to feel uncomfortable by lewd jokes,remarks,or gestures is a form of sexual harassment.
A)True
B)False
Q5) Compare and contrast commissions with bonus.
Q6) What are diversity initiatives?
Q7) Compare and contrast job description with job specification.
Q8) Discuss some of the contemporary staffing challenges.
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Chapter 12: Labor Relations
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Sample Questions
Q1) Progressive discipline usually starts with a written warning or a suspension without pay.
A)True
B)False
Q2) ________ is a union weapon where union members and sympathizers refuse to buy or handle the product of a target company.
A) Injunction
B) Lockout
C) Strike
D) Boycott
E) Arbitration
Q3) Which of the following is a key difference between mediation and arbitration?
A) Mediation involves a third party, whereas arbitration is performed without third parties.
B) Arbitrators give suggestions, whereas mediators give directives.
C) Mediation is compulsory, whereas arbitration is voluntary in nature.
D) Arbitration provides a legally binding settlement, whereas mediation is not binding.
E) Mediation has a win-lose orientation, whereas arbitration has a win-win orientation.
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Chapter 13: The Art and Science of Marketing
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100 Flashcards
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Sample Questions
Q1) When a supermarket provides fresh,ready-to-eat dishes as an alternative to buying all of the ingredients needed to make dinner,it is creating place utility.
A)True
B)False
Q2) A developing country markets itself as a good destination of foreign investment.This would be an example of place marketing.
A)True
B)False
Q3) Selling existing products to new markets is called ________.
A) market development
B) product development
C) market segmentation
D) market penetration
E) vertical integration
Q4) Compare and contrast product development with market development.Explain using an example.
Q5) Compare and contrast the influence of customer relationship management (CRM)systems on the marketing process with that of social commerce.
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Chapter 14: Product and Pricing Strategies
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100 Flashcards
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Sample Questions
Q1) Participative pricing allows customers to pay the amount they think a product is worth.
A)True
B)False
Q2) Choose a product that has been widely regarded as successful.Construct a product life cycle model for the product that you have selected.
Q3) In ________,the seller doesn't set a firm price.Instead,buyers competitively propose the prices that they are willing to pay.
A) cost-based pricing
B) value-based pricing
C) optimal pricing
D) auction pricing
E) freemium pricing
Q4) Break-even analysis is a method of ________.
A) calculating the minimum sales needed to cover all costs
B) classifying the variable costs incurred by a firm
C) classifying the fixed costs incurred by a firm
D) balancing the costs and risks of a business
E) estimating the fixed costs required to minimize the operational costs
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Chapter 15: Distribution and Marketing Logistics
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Sample Questions
Q1) PetCare is a retail store based in New York that offers only pet supplies and pet accessories.The shop stocks a limited number of product lines such as dog and cat products (canned and dry food,and hard goods),and bird,fish and small animal products (fish tanks,stands,aquarium decorations,cages,bowls,perches,etc.).The shop stocks several brands of varying prices rages within these product lines.PetCare can be classified as a(n)________.
A) department store
B) manufacturers' representative
C) supermarket
D) specialty store
E) convenience store
Q2) ________ combine different types of retailers or different retail companies in the same facility.
A) Pop-up stores
B) Interactive kiosks
C) Off-price stores
D) Factory outlets
E) Hybrid stores
Q3) Compare and contrast full-service merchant wholesalers with limited-service merchant wholesalers.
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Chapter 16: Customer Communication
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Sample Questions
Q1) Comparative advertising is useful whenever a company believes it has some specific product strengths that are important to customers.
A)True
B)False
Q2) Marketers are using ________ as a new way of integrating advertising with content,such as web links embedded in commercials on TV shows that viewers watch on Hulu or Netflix.
A) social intuition
B) strategic remarketing
C) hybrid media
D) stealth marketing
E) the power of suggestion
Q3) Advertising or display materials set up at retail locations to promote products to potential customers as they are making their purchase decisions are called ________.
A) rebates
B) trade allowances
C) point-of-purchase displays
D) specialty advertising
E) coupons
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Page 18
Chapter 17: Financial Information and Accounting Concepts
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Sample Questions
Q1) Charles Associates is an accounting firm that provides accounting services to many companies across the United States.The company follows an accounting system where it records revenue only when the money is actually received.Identify the accounting system that this company is using.
A) depreciation
B) deferral basis
C) accrual basis
D) profit basis
E) cash basis
Q2) Accrued expenses are expenses that ________.
A) are likely to be incurred at a future time in a different financial year
B) have been incurred but for which bills have not yet been received
C) are long-term liabilities that have been incurred in a financial year
D) have been incurred and for which the bills have been received
E) are likely to be incurred at a future time in the same financial year
Q3) Compare and contrast management accounting with financial accounting.
Q4) What is a balance sheet? Why is it called a balance sheet?
Q5) Accounts payable is an example of a long-term liability.
A)True
B)False
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Chapter 18: Financial Management
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Sample Questions
Q1) Short-term financing is used to cover ________ of a business.
A) current expenses
B) start-up costs
C) launch costs
D) fixed costs
E) capital expenses
Q2) ________ can be exchanged at the investor's option for a certain number of shares of the corporation's common stock.
A) Collateralized bonds
B) Protected bonds
C) Bills of exchange
D) Debentures
E) Convertible bonds
Q3) Accounts receivable refers to ________.
A) the total of owner's funds invested in a business
B) the total annual revenue of a company
C) amounts that a firm owes to other parties
D) the money owed to a firm by its customers
E) the total interest payments made by the firm
Q4) Explain the concept of risk/return trade-off.
Page 20
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Chapter 19: Financial Markets and Investment Strategies
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Sample Questions
Q1) The amount of money that the bond buyer is lending to the bond issuer is known as the ________.
A) par value
B) yield
C) dividend
D) coupon rate
E) intrinsic value
Q2) ________ stocks tend to fare better when the economy is doing worse and vice versa.
A) Blue chip
B) Income
C) Penny
D) Cyclical
E) Defensive
Q3) A stop order is an order to sell a stock when its price falls to a particular point.
A)True
B)False
Q4) Compare and contrast blue chip,income,growth and cyclical stocks.
Q5) What are derivatives?
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Chapter 20: The Money Supply and Banking Systems
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Sample Questions
Q1) In a ________,borrowers stop making payments on a loan.
A) liquidity crisis
B) bubble
C) foreclosure
D) default
E) market squeeze
Q2) ________ are non-bank companies that use their own funds to offer mortgages.
A) Mortgage agencies
B) Mortgage brokers
C) Credit unions
D) Loan associations
E) Independent mortgage companies
Q3) Both Fannie Mae and Freddie Mac are agencies of the FDIC.
A)True
B)False
Q4) The Dodd-Frank Act aims to reform the banking industry.
A)True
B)False
Q5) Compare and contrast commercial banks and investment banks.
Q6) Compare and contrast federal funds rate and discount rate.
Page 22
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