Fundamentals of Business Exam Solutions
Course Introduction
Fundamentals of Business provides an introduction to the key concepts and practices that govern the modern business environment. The course explores the foundational principles of business organization, management, marketing, finance, and operations.
Students learn about the role of entrepreneurship, the impact of globalization, business ethics, and the tools used to analyze and make strategic business decisions. Through case studies, discussions, and practical examples, this course equips students with the essential knowledge and skills to understand how businesses function and succeed in competitive markets.
Recommended Textbook
Business Essentials 9th Edition by Ronald J. Ebert
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16 Chapters
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
Source URL: https://quizplus.com/quiz/27725
Sample Questions
Q1) What is the economic condition characterized by widespread increased prices without increased purchasing power?
A) unemployment
B) inflation
C) expansion
D) deflation
E) recession
Answer: B
Q2) Which of the following best describes purchasing power parity?
A) total quantity of goods and services produced by an economic system
B) total quantity of goods and services that can be purchased with one paycheck
C) total quantity of goods and services that could have been purchased if one's pay rose in the same proportion as inflation
D) the principle that exchange rates are set so that prices of similar products in different countries are about the same
E) the principle that a market economy determines supply and demand for consumer products
Answer: D
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Chapter 2: Business Ethics and Social Responsibility
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135 Verified Questions
135 Flashcards
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Sample Questions
Q1) Which of the following should be the first step in assessing ethical behavior in a certain situation?
A) Seek the advice of managers.
B) Make a judgment based on the outcome of the activity.
C) Consider appropriate moral values.
D) Collect facts related to the situation.
E) Gather a range of opinions on the effectiveness of the policy.
Answer: D
Q2) What is the most effective step that a company can take to promote ethical behavior?
A) conduct frequent comprehensive audits of all financial information
B) have employees sign a code of conduct upon hiring
C) demonstrate top management support of ethical standards
D) publicize efforts to become more ethical
E) survey employees on their personal ethical codes
Answer: C
Q3) The Consumer Bill of Rights is backed by numerous federal and state laws.
A)True
B)False
Answer: True
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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) What are the advantages and disadvantages for a franchisee?
Answer: The advantages of franchising include access to managerial and financial help, the benefits of the selling corporation's expertise and experience, and reduced chances of failure. The disadvantages of franchising include significant start-up costs and continued obligations to contribute a percentage of sales to parent corporations.
Explanation:Advantages include access to managerial and financial help, and the benefits of the selling corporation's expertise and experience, which can support increased chances of success. The disadvantages include significant start-up costs and ongoing commitments to contribute a percentage of sales to parent corporations.
Q2) Which of the following, if True about the owners' plan for the new business, would weaken the case that it should be registered as an LLC?
A) They want the company to maintain its current membership.
B) They do not want to be liable for the company's debts.
C) They want the company's funding to come from shareholders.
D) They want to set the management details in advance.
E) They want the company to be registered both federally and with the state.
Answer: C
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Page 5
Chapter 4: The Global Context of Business
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128 Verified Questions
128 Flashcards
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Sample Questions
Q1) Globalization refers to the process by which countries around the world are becoming more self-sufficient.
A)True
B)False
Q2) Citronel's CEO thinks that a market segment already exists worldwide that will be receptive to Citronel's product line. Which of the following, if True, would strengthen the CEO's position?
A) People in different parts of the world tend to embrace their own clothing fashions.
B) Consumers in different parts of the world have varied spending power.
C) Clothing fashions that originate in France tend to appeal to different places in the world.
D) Citronel has accumulated extensive market data on French consumers.
E) Citronel has been in business for only a few years.
Q3) Which organization most likely has the greatest impact on Asian countries?
A) ASEAN
B) UAS
C) EU
D) NAFTA
E) ECOWAS
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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) What are the basic steps in decision making?
Q2) A strong corporate culture directs employees' efforts and helps everyone work toward the same goals.
A)True
B)False
Q3) What type of skills requires defining problems and selecting the best course of action to take?
A) human relations skills
B) production skills
C) conceptual skills
D) decision-making skills
E) technical skills
Q4) Which kind of strategy takes place at the level of the product line and focuses on a firm's competitive position?
A) functional
B) business
C) local
D) fundamental
E) environmental
Q5) Differentiate between strategic, tactical, and operational plans.
Page 7
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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) What is the informal organization and how does it relate to the formal structure?
Q2) What is delegation? Identify four reasons that managers have trouble delegating.
Q3) What structure does an organization with little or no formal structure and with only a handful of permanent employees use?
A) team structure
B) virtual structure
C) learning structure
D) flexible structure
E) balanced structure
Q4) After an organizational structure has been created, it is set in stone.
A)True
B)False
Q5) Organization charts are graphical representations of employee salary information.
A)True
B)False
Q6) List and describe three advantages of a divisional structure.
Q7) Describe the informal organization and the position of intrapreneuring within this structure.
Page 8
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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) What term describes a special ability that production does especially well to outperform the competition?
A) supply chain management
B) total quality management
C) process engineering
D) operations capability
E) value-added analysis
Q2) Describe three ways that McDonald's restaurants create time utility for customers.
Q3) What is the name for a production system in which all the needed materials and parts arrive at the precise moment they are required for each production stage?
A) quality control system
B) process control system
C) just-in-time production
D) standardized production
E) custom-products production
Q4) If a JIT production system is implemented at Sky Scooters, how might the firm's supply chain strategy be affected?
Q5) Explain how JIT production and lean manufacturing are related.
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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) The incentive plan is based on which assumption?
A) In comparison to other Macmoo employees, Macmoo salespeople are less interested in the overall success of the company.
B) Macmoo salespeople believe that they can have a significant effect on the overall performance of the company.
C) In the past, Macmoo salespeople have not consistently acted in the best interests of the company.
D) The only effective way to motivate employees is through financial incentives.
E) Macmoo employees are similar to other salespeople in the industry.
Q2) How can managers minimize the chance of workplace violence?
Q3) Which of the following is the set of expectations held by employees and the organization regarding what the employee will contribute and what he or she will receive?
A) psychological contract
B) nondisclosure agreement
C) job satisfaction
D) mutual commitment
E) self expression
Q4) 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
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Sample Questions
Q1) Virtual management refers to the role of leaders in a team environment.
A)True
B)False
Q2) If the typical aspects about gender differences in leadership are observable at Calder Enterprises, how will Mary's leadership style be possibly different than that of her male predecessor?
Q3) Steven learned that the cohesiveness among his employees was so strong that there was nothing he could do to change things. Which of the following best describes this cohesiveness?
A) leadership neutralizer
B) leadership substitute
C) leadership mandate
D) leadership amplifier
E) leadership incentive
Q4) What variables in the scenario indicate that a situational approach to leadership may be advisable?
Q5) All managers are leaders but not all leaders are managers.
A)True
B)False
Q6) Mary realizes she will have to play the role of "mentor." What does this mean?
Page 11
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Chapter 10: Human Resource Management and Labor Relations
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120 Verified Questions
120 Flashcards
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Sample Questions
Q1) What challenges faced Entergy after Hurricane Katrina? How did the CEO motivate employees to respond?
Q2) What is the total package that a firm offers employees in return for their labor?
A) wage
B) salary
C) benefits package
D) compensation system
E) retention plan
Q3) Distinguish between internal and external recruiting.
Q4) Which of the following constitutes an illegal hiring practice?
A) asking someone about their availability because the position requires a 50-hour work week
B) establishing a diversity committee to help diverse employees connect with each other
C) asking a candidate whether or not he attends church, because it is important that candidates are available to work on Saturdays and Sundays
D) keeping track of how many males and females are in the organization
E) requiring an applicant to specify gender on an application
Page 12
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Chapter 11: Marketing Processes and Consumer Behavior
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130 Verified Questions
130 Flashcards
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Sample Questions
Q1) A firm makes bookcases, bicycles, soft drinks, armored cars, and novelty dishes. What do these items make up?
A) product line
B) product variety
C) product assortment
D) product mix
E) product inventory
Q2) The director of marketing argues that Dinasonic should alter its marketing strategy in different countries by adapting its methods of advertising. Which of the following, if True, would support this position?
A) Dinasonic has won awards for its advertising campaigns.
B) Consumers in most countries are attracted to American consumer goods.
C) Laws regulating advertising vary between different countries.
D) Dinasonic has several sales managers experienced in international sales.
E) The company is planning to subcontract some of its international sales operations.
Q3) Why is it important for a company to develop new products?
Q4) Identify the ways that small businesses can benefit from an understanding of the marketing mix.
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13
Chapter 12: Pricing, Distributing, and Promoting Products
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129 Verified Questions
129 Flashcards
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Sample Questions
Q1) One drawback of nondirect distribution is higher prices.
A)True
B)False
Q2) Explain the primary difference between a wholesaler and a sales agent.
Q3) Marshall is a route salesperson for a beverage company. Which of the following would most likely occupy his work time?
A) trade show demonstrations
B) sales promotions
C) missionary selling
D) direct mail advertising
E) order processing
Q4) The sales price of a product is given as the product's cost to the seller plus which of the following quantities?
A) breakeven price
B) revenue price
C) variable price
D) fixed price
E) markup price
Q5) Differentiate between fixed costs and variable costs.
Q6) Explain the difference between an electronic storefront and a cybermall.
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Chapter 13: Information Technology for Business
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125 Verified Questions
125 Flashcards
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Sample Questions
Q1) Explain how a firewall keeps computers safe from hackers.
Q2) Bill needs to explain the difference between data and information. What are the key points that Bill should make?
Q3) Trojan horses are malicious programs that replicate themselves like viruses.
A)True
B)False
Q4) Bill has to explain the difference between worms and Trojan horses. What should he say?
Q5) Which system supports an organization's managers by providing daily reports, schedules, plans, and budgets?
A) management application
B) management operations
C) management information
D) management expert
E) management enterprise
Q6) In a client-server network, the client is typically a customer or supplier.
A)True
B)False
Q7) What is a decision support system?
Page 15
Q8) Discuss the impacts information technology has had on the business world.
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Chapter 14: The Role of Accountants and Accounting Information
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117 Verified Questions
117 Flashcards
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Sample Questions
Q1) Which of the following terms refers to any economic resource that is expected to benefit a firm or individual who owns it?
A) asset
B) liability
C) equity
D) account
E) deposit
Q2) Which of the following refers to the financial statement detailing a firm's assets, liabilities, and owners' equity?
A) income statement
B) statement of cash flows
C) balance sheet
D) expense report
E) annual budget
Q3) A firm's financial accounting system is only concerned with external users of information.
A)True
B)False
Q4) What is the accounting equation?
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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) Which of the following terms refers to the percentage of its deposits a bank must hold, in cash or on deposit, with a Federal Reserve bank?
A) discount rate
B) key rate
C) prime rate
D) federal insurance premium
E) reserve requirement
Q2) At any given time, there may be up to 15 different discount rates set by the Federal Reserve System for loaning money to commercial banks.
A)True
B)False
Q3) Which of the following best describes what is called the "open-market operations" of the Federal Reserve System?
A) the development of new financial opportunities for banks
B) the minting of new money to disperse into the money market
C) the control of interest rates among banks
D) the maintenance of a well-functioning lending system among banks
E) the buying and selling of securities
Q4) What is the difference between a credit card and a debit card?
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Chapter 16: Managing Finances
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104 Verified Questions
104 Flashcards
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Sample Questions
Q1) Which of the following allows after-hours trading and protects traders' anonymity?
A) National Association of Securities Dealers Automated Quotation (NASDAQ)
B) New York Stock Exchange (NYSE)
C) Electronic Communication Networks (ECNs)
D) Standard & Poor's 500
E) mutual funds
Q2) The profit realized when the market value of an investment increases is known as which of the following?
A) capital gains
B) asset allocation
C) diversification
D) price appreciation
E) profiteering
Q3) The investment industry categorizes firms according to size of capitalization.
A)True
B)False
Q4) Differentiate between market value and book value.
Q5) Explain what exchange-traded funds are and how they are tracked.
Q6) What is an angel investor?
Page 18
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