Fundamentals of Business Mock Exam
Course Introduction
Fundamentals of Business introduces students to the core concepts and practices that underpin the modern business environment. The course covers essential topics such as management principles, organizational structures, marketing strategies, finance, accounting basics, operations, and the ethical and legal considerations in business. Students will explore how businesses are structured and operated, the role of entrepreneurship, and the various external forces that influence business decisions. Through case studies, discussions, and real-world examples, this course equips learners with the foundational knowledge necessary to understand and engage with todays dynamic business world.
Recommended Textbook Essentials of Contemporary Business 1st Edition by Louis E. Boone
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17 Chapters
2453 Verified Questions
2453 Flashcards
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Chapter 1: The Changing Face of Business
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154 Verified Questions
154 Flashcards
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Sample Questions
Q1) Alejandro is seeking to revitalize his graphic design company with new innovations and has called a brainstorming meeting with his top designers.Alejandro is practicing
A)vision
B)productivity
C)critical thinking
D)creativity
Answer: D
Q2) What are some examples of external and internal forces that would require a manager to lead organizational change?
Answer: External forces might include feedback from customers,developments in the international marketplace,economic trends,and new technologies.Internal factors might arise from new company goals,emerging employee needs,labor union demands,or production problems.
Q3) The relationship era is also the age of connections between:
A)businesses and customers
B)employees and employers
C)separate companies
D)all of the above
Answer: D
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Chapter 2: Business Ethics and Social Responsibility
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172 Verified Questions
172 Flashcards
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Sample Questions
Q1) There are more male victims of sexual harassment than females.
A)True
B)False
Answer: False
Q2) The Sarbanes-Oxley Act aims to punish corporate fraud and corruption.
A)True
B)False
Answer: True
Q3) Sean avoids using his office computer for personal use,even though his company does not have a specific policy forbidding it.Sean is at the ________ stage of ethical development.
A)Pre-conventional
B)concentrations
C)post-conventional
D)conventional
Answer: D
Q4) Whistle-blowing can be effective with the cooperation of higher level managers.
A)True
B)False
Answer: True
Page 4
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Chapter 3: Economic Challenges Facing Contemporary Business
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184 Verified Questions
184 Flashcards
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Sample Questions
Q1) Deflation can hurt industries like housing and auto manufacturing.
A)True
B)False
Answer: True
Q2) Barriers to entry into an industry are highest in ________.
A)pure competition
B)pure oligopoly
C)an oligopoly
D)monopolistic competition
Answer: C
Q3) Define pure competition.
Answer: Pure competition is a market structure,like that of small-scale agriculture or fishing,in which large numbers of buyers and sellers exchange homogeneous products and no single participant has a significant influence on price.Instead,prices are set by the market as the forces of supply and demand interact.Firms can easily enter or leave a purely competitive market because no single company dominates.Also,in pure competition,buyers see little ference between the goods and services offered by competitors.
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Chapter 4: Competing in World Markets
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147 Verified Questions
147 Flashcards
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Sample Questions
Q1) If the price of an imported product sells for more in the United States than it does in the producing country,the producing country could be accused of dumping.
A)True
B)False
Q2) A trade deficit occurs when ________.
A)imports are sold at low profits
B)foreign-aid payments exceed exports
C)imports exceed exports
D)there is a net flow of money into a country
Q3) An import quota is an example of a cultural barrier to global business.
A)True
B)False
Q4) If a nation has an unfavorable balance of trade,it also has an unfavorable balance of payments.
A)True
B)False
Q5) Explain the concept of floating exchange rates.Identify factors that influence foreign exchange rates.
Q6) Describe the role of the European Union (EU).
Page 6
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Chapter 5: Small Business and Forms of Business
Ownership
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145 Verified Questions
145 Flashcards
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Sample Questions
Q1) Although the average farm size has increased in recent years the majority of farmers operate as ________ businesses.
A)government owned
B)Large
C)partnerships
D)Small
Q2) Which type of business is least likely to be bought by large companies?
A)businesses that sell personalized services
B)businesses with high overhead costs
C)businesses that are located outside of the United States
D)businesses that were founded by college students
Q3) Not-for-profit corporations do not issue stock certificates and are exempt from paying income taxes.
A)True
B)False
Q4) The average amount rewarded to owners of small businesses through Small Business Administration (SBA)microloans is $13,000.
A)True
B)False
7
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Chapter 6: Starting Your Own Business
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108 Verified Questions
108 Flashcards
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Sample Questions
Q1) People should not attempt to convert their hobbies into a business,since starting a business is a serious venture.
A)True
B)False
Q2) What is intrapreneurship,and why is it important today?
Q3) Katherine is a successful entrepreneur.She stays close to her customers and is constantly looking for effective strategies.She is also willing to make adjustments when necessary.Katherine is demonstrating ________.
A)internal locus of control
B)creativity
C)Vision
D)tolerance for ambiguity
Q4) Describe the importance of developing a business plan.
Q5) Entrepreneurs possess all of the following traits EXCEPT ________.
A)tolerance for ambiguity
B)creativity
C)low self-confidence
D)Vision
Q6) Distinguish between venture capitalists and angel investors.
Page 8
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Chapter 7: Management, Leadership, and the Internal Organization
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191 Verified Questions
191 Flashcards
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Sample Questions
Q1) Tactical planning is primarily the responsibility of ________.
A)middle managers
B)supervisory managers
C)top managers
D)the CEO
Q2) Jordan believes that close supervision of employees stifles creativity,so he allows his employees to make most of their own decisions.Jordan is an example of a free-rein leader.
A)True
B)False
Q3) Corporate culture is reinforced by all of the following factors EXCEPT ________.
A)symbols
B)finances
C)rituals
D)stories
Q4) Contingency planning generally falls under the responsibility of middle management.
A)True
B)False
Q5) Define centralization and decentralization.Provide an example.
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Chapter 8: Human Resource Management: From
Recruitment to Labor Relations
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138 Verified Questions
138 Flashcards
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Sample Questions
Q1) The Civil Rights Act of 1991 expanded the rights of discrimination victims to include damages for emotional distress.
A)True
B)False
Q2) Which type of union represents union members in a specific area,such as a single community?
A)Local union
B)National union
C)International union
D)Community union
Q3) Describe the core responsibilities of human resource management.
Q4) Sven believes in giving his employees challenging assignments so they can realize their own potential.Sven is attempting to satisfy his employee's self-actualization needs.
A)True
B)False
Q5) Downsizing streamlines the organizational structure.
A)True
B)False
Q6) On what factors do firms based their compensation policies?
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Chapter 9: Top Performance Through Empowerment,
Teamwork, and Communication
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134 Verified Questions
134 Flashcards
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Sample Questions
Q1) Two people are having a conversation and are standing about six feet apart.What zone are they in?
A)public zone
B)social zone
C)personal zone
D)intimate zone
Q2) All teams should include people with similar skills who are committed to a common purpose.
A)True
B)False
Q3) All teams naturally complete the five stages of development.
A)True
B)False
Q4) Customer orders are considered to be an internal communication.
A)True
B)False
Q5) Flexibility is the primary advantage of virtual teams.
A)True
B)False
Q6) What are the advantages and drawbacks of virtual teams? Page 11
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Chapter 10: Production and Operations Management
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149 Verified Questions
149 Flashcards
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Sample Questions
Q1) Tidewater Company uses 100,000 pounds of fresh flowers each year.Because of rising energy costs,it has become more expensive for Tidewater to store flowers.All other factors being equal,Tidewater should ________ its inventory of fresh flowers,which would ________ the risk of running out of inventory.
A)reduce;have no effect on B)increase;have no effect on C)reduce;increase D)increase;increase
Q2) Which of the following would probably be the most important consideration in determining where to locate Hefferin Paper mill Company?
A)labor supply
B)location of customers
C)physical characteristics
D)proximity to raw materials
Q3) Describe a flexible manufacturing system.
Q4) Describe quality control and provide an example.
Q5) Corn processing is an example of analytic production.
A)True
B)False
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Chapter 11: Customer-Driven Marketing
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132 Verified Questions
132 Flashcards
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Sample Questions
Q1) ________ utility is created when the business firm converts raw materials into finished goods and services.
A)Form
B)Ownership
C)Exchange
D)Place
Q2) All of the following are methods of segmenting the business market EXCEPT ________.
A)psychographics
B)demographics
C)geographic
D)end-use
Q3) ________ refers to the actions of consumers directly involved in obtaining,consuming,and disposing of products and the decision processes that precede and follow these actions.
A)Buyer behavior
B)Consumer behavior
C)Marketing management
D)The marketing mix
Q4) Describe the sources of marketing research data.
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Chapter 12: Product and Distribution Strategies
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167 Verified Questions
167 Flashcards
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Sample Questions
Q1) Stores like Costco,which sell to members only,are an example of a ________.
A)warehouse club
B)discount store
C)supercenter
D)factory outlet
Q2) Raoul's job is to make sure that his company's goods get from the warehouse to retailers in a timely fashion.Raoul's job involves the ________ function.
A)distribution
B)production
C)finance
D)management
Q3) A manufacturer of a new moisturizing shampoo offers free samples to all potential consumers.The product is generally in the introductory stage.
A)True
B)False
Q4) Physical distribution is a major focus for logistics management.
A)True
B)False
Q5) Describe the benefits of having intermediaries and provide an example.
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Chapter 13: Promotion and Pricing Strategies
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138 Verified Questions
138 Flashcards
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Sample Questions
Q1) Explain the differences between public relations and publicity.
Q2) A major portion of U.S.advertising is image-oriented.
A)True
B)False
Q3) In the movie,The Social Network,the actor portraying Mark Zuckerberg is featured wearing products by Gap and the North Face.This form of promotion is known as
A)trade promotion
B)institutional advertising
C)creative selling
D)product placement
Q4) To gain a competitive advantage,marketers that utilize integrated marketing communications should narrow their focus on promotional strategies.
A)True
B)False
Q5) A skimming pricing strategy involves setting the price of a product relatively high and then gradually lowering it.
A)True
B)False
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Chapter 14: Using Technology to Manage Information
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112 Verified Questions
112 Flashcards
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Sample Questions
Q1) The heart of a management information system is the software.
A)True
B)False
Q2) An expert system is a computer program that imitates human thinking.
A)True
B)False
Q3) A program that performs specific tasks that the user wants to carry out is called
A)software
B)the operating system
C)a management information system
D)application software
Q4) Virtual private networks are more expensive to install than wide area networks.
A)True
B)False
Q5) An intranet links a company to its suppliers and customers.
A)True
B)False
Q6) Describe at least two ways that common e-crimes occur:
Q7) Identify four significant trends regarding information systems.
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Chapter 15: Understanding Accounting and Financial Statements
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134 Verified Questions
134 Flashcards
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Sample Questions
Q1) The ________ was created by the Sarbanes-Oxley Act of 2002.
A)Securities & Exchange Commission
B)Public Accounting Oversight Board
C)GAAP
D)FASB
Q2) Explain the purpose of the Sarbanes-Oxley Act.
Q3) The budget establishes the standards with which actual performance may be compared.
A)True
B)False
Q4) A firm has total assets of $50 million and owner's equity of $40 million.What is the firm's debt ratio?
A)70 percent
B)50 percent
C)30 percent
D)20 percent
Q5) A public accounting firm is prohibited from providing both consulting services and audit services to the same firm.
A)True
B)False
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Chapter 16: The Financial System
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158 Verified Questions
158 Flashcards
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Sample
Questions
Q1) Nina's financial institution has an office next to where she works.Everyone who uses the financial institution's services either works for Nina's employer or is related to someone who does.Nina's financial institution is a ________.
A)state chartered bank
B)savings bank
C)commercial bank
D)credit union
Q2) As market interest rates rise,bond prices fall.
A)True
B)False
Q3) The market value of a stock is the price at which the stock is currently selling.
A)True
B)False
Q4) An owner of which form of stock would receive dividend payments first?
A)convertible securities
B)common stock
C)preferred stock
D)standard stock
Q5) Describe how the financial system operates.
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Chapter 17: Financial Management
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90 Verified Questions
90 Flashcards
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Sample Questions
Q1) Grace is the financial manager for Empire State Fabrication and has decided to raise additional funds for the company by raising equity capital.She might do so by
A)selling a bond
B)persuading existing owners to contribute additional funds
C)selling marketable securities
D)establishing a line of credit with a local bank
Q2) Trade credit is relatively easy to obtain and costs nothing unless a supplier offers a cash discount.
A)True
B)False
Q3) Which of the following assets would a firm most likely finance using long-term sources?
A)inventory
B)accounts receivable
C)marketable securities
D)another company
Q4) Interest rates on short-term sources of funds move up and down frequently. A)True
B)False
Page 20
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