Introduction to Business Practice Exam
Course Introduction
Introduction to Business provides an overview of the fundamental concepts and practices that define the world of commerce. Through this course, students explore various facets of business, including management, marketing, finance, operations, entrepreneurship, and the role of ethics and social responsibility. Students will gain insights into how businesses are structured and operated, the economic and legal environment affecting organizations, and current trends influencing global and local markets. The course is designed to equip students with foundational knowledge and critical thinking skills, preparing them for more advanced studies in business or entry-level roles in the professional world.
Recommended Textbook
Business Essentials 10th Edition by Ronald
J. Ebert
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17 Chapters
2016 Verified Questions
2016 Flashcards
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Page 2
Chapter 1: The USBusiness Environment
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125 Verified Questions
125 Flashcards
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Sample Questions
Q1) What term denotes a nation's basis for allocating its resources among its citizens?
A) capital structure
B) economic system
C) ownership processes
D) distribution network
E) national regulations
Answer: B
Q2) Assuming other factors remain constant,Anon would have the most power to raise prices if Widgets were which of the following?
A) life-saving drugs
B) automobiles
C) beverages
D) toys
E) jewelry
Answer: A
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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Chapter 2: Understanding Business Ethics and Social Responsibility
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131 Verified Questions
131 Flashcards
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Sample Questions
Q1) What is insider trading? Why would an investor engage in it?
Answer: Insider trading is using confidential information to gain from the purchase or sale of stocks.Confidential information is information that is not available to the general public but that is available to a few people because of their position within a company.Investors with inside information,for example,may sell a stock at a high price just before a piece of negative information becomes public and the price plummets,thus preventing a big loss.Similarly,an investor with inside information may buy stock at a low price,just before a piece of favorable information becomes public and the price of the stock increases.
Explanation:Insider trading can help the investor circumvent stock losses by using privileged information to sell stocks with an unfair advantage.
Q2) The best stance toward social responsibility a company can take is a proactive one.
A)True
B)False
Answer: True
Q3) 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.
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Page 4
Chapter 3: Entrepreneurship, New Ventures, and Business Ownership
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Sample Questions
Q1) Discuss the advantages and disadvantages of partnerships.
Answer: Advantages of partnerships include their ability to grow with the addition of new talent and money,ease of organization,and independent legal status.Disadvantages are unlimited liability,potential lack of continuity,difficulty of transferring ownership,and little or no guidance for resolving internal conflicts.
Explanation:Advantages of partnerships include their ability to grow with the addition of new talent and money, ease of organization, and independent legal status. Disadvantages include unlimited liability, potential lack of continuity, difficulty of transferring ownership, and little or no guidance for resolving internal conflicts.
Q2) Low start-up costs and tax benefits are advantages of sole proprietorships.
A)True
B)False
Answer: True
Q3) Which form of business ownership would you recommend for the Miller brothers? Why?
Answer: Answers will vary and should be based on the advantages and disadvantages identified in answers to previous questions related to the Miller brothers' scenario.
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Page 5
Chapter 4: Understanding the Global Context of Business
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120 Verified Questions
120 Flashcards
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Sample Questions
Q1) Ford,an American car company,purchased Volvo,which is based in Sweden.What is this an example of?
A) a multinational firm
B) an independent agency
C) a licensing arrangement
D) a foreign direct investment
E) a strategic alliance
Q2) What is the difference between balance of trade and balance of payments?
Q3) Explain a floating exchange rate.
Q4) Which of the following countries is the world's third largest economy,behind that of the United States and European Union?
A) China
B) India
C) Brazil
D) Japan
E) Russia
Q5) The ultimate form of a quota is a tariff.
A)True
B)False
Q6) What are the three goals of the World Trade Organization (WTO)?
Page 6
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Chapter 5: Managing the Business
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Sample Questions
Q1) What type of skills are needed to understand and work well with people in the workplace?
A) human relations skills
B) technical skills
C) conceptual skills
D) motor skills
E) decision-making skills
Q2) According to the CEOs of several companies that have undergone radical change in the last decade,what does NOT happen within such organizations?
A) At the highest level, analysis of the company's environment highlights extensive change as the most effective response to its problems.
B) Lower-level employees develop informal groups to plan for change.
C) The firm sets up new systems for appraising and compensating employees who enforce the firm's new values.
D) Top management begins to formulate a vision of a new company.
E) Change is characterized by much conflict and resistance.
Q3) SWOT analysis is usually conducted before strategic goals have been established.
A)True
B)False
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Page 7
Chapter 6: Organizing the Business
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Sample Questions
Q1) In a centralized structure,most decision-making authority is delegated to levels of management at various points below the top.
A)True
B)False
Q2) What is an employee's duty to perform an assigned task?
A) delegation
B) authority
C) responsibility
D) accountability
E) specialization
Q3) Which of the following is an advantage of job specialization?
A) Workers can develop expertise in their jobs.
B) Workers will not need to be trained.
C) Jobs become more interesting.
D) Workers derive more satisfaction from their jobs.
E) Jobs do not need to be redefined.
Q4) How do the job duties of line employees and staff employees differ?
Q5) The informal organization is not as powerful as the formal structure.
A)True
B)False
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Chapter 7: Operations Management and Quality for Producing Goods and Services
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142 Flashcards
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Sample Questions
Q1) Which of the following,if true,would strengthen the argument for the shift to a just-in-time inventory system?
A) Clean Sweep's storage and handling costs are significant.
B) Clean Sweep's suppliers have not adopted just-in-time systems.
C) The current system requires higher inventory levels during the summer as compared to the winter.
D) Demand for Sparkle varies depending on the promotional strategies of Clean Sweep's retail partners.
E) Sparkle comes in many varieties, none of which is more popular than the leading brand.
Q2) For manufacturing firms,typical materials costs make up 50 to 75 percent of total product costs.
A)True
B)False
Q3) Staff schedules identify which products will be produced and when.
A)True
B)False
Q4) How have General Motors and Chrysler implemented leaner operations?
Q5) Define the term production or operations.
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Chapter 8: Employee Behavior and Motivation
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Sample Questions
Q1) Which of the following,if true,would BEST show that a manager's strategy for motivating his team is consistent with "Theory Y" about employee motivation?
A) The employees would need to see incentives as worth having for their own sake.
B) The employees would need to see their work as contributing to a success that they share in.
C) The manager wants his team to feel rewarded by doing their job well.
D) The manager thinks that his team will not do their work well without added incentives.
E) The manager thinks that incentives are needed in order to boost morale.
Q2) With job sharing,companies often experience increased turnover.
A)True
B)False
Q3) Under what conditions might the use of work teams be inappropriate?
Q4) How can teams lead to higher levels of employee motivation and satisfaction in smaller firms?
Q5) How can managers minimize the chance of workplace violence?
Q6) Discuss management by objectives (MBO).
Q7) According to the two-factor theory,how should managers enhance motivation?
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Chapter 9: Leadership and Decision Making
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Sample Questions
Q1) Which of the following statements BEST describes the assumptions made by researchers of the behavioral approach to leadership?
A) Behaviors of effective leaders differ in various situations.
B) Behaviors of effective leaders are the same in all situations.
C) Behaviors of effective leaders reflect the proper traits for effective leadership.
D) Behaviors of effective leaders differ as reflected by different traits for effective leadership.
E) Behaviors of effective leaders reflect the proper disposition for effective leadership.
Q2) Leaders at the now defunct energy company Enron were recognized as having demonstrated exemplarily high ethical leadership.
A)True
B)False
Q3) A teacher who takes the initiative to create and organize an after-school tutoring program for the students is an example of a manager who is not a leader.
A)True
B)False
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Chapter 10: Human Resource Management and Labor Relations
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Sample Questions
Q1) In setting wage and salary levels,a firm may start by looking at competitors' levels.
A)True
B)False
Q2) Which of the following,if true,would support the HR Director's position that the firm's workforce is at risk of becoming disengaged?
A) National polls show that less than a third of all employees are fully engaged in their work.
B) The firm's stated vision holds that each and every employee must be committed to the company's goals.
C) There are few job openings in Crescendo for which Crescendo employees can apply.
D) Crescendo offers only voluntary training programs to prepare workers for job advancement.
E) Appraisal reviews of employees are held only once a year.
Q3) When selecting someone to hire,the first step in selection is usually asking the candidate to take a test.
A)True
B)False
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Page 12
Chapter 11: Marketing Processes and Consumer Behavior
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Sample Questions
Q1) Which of the following identifies products that are dissimilar from those of competitors,but can fulfill the same need?
A) brand competition
B) international competition
C) the marketing mix
D) product shift
E) substitute products
Q2) Identify the ways that small businesses can benefit from an understanding of the marketing mix.
Q3) 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.
Q4) Why is product placement important?
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Chapter 12: Developing and Pricing Products
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Sample Questions
Q1) Price skimming occurs when a company sets an initially low price to establish a new product in the market.
A)True
B)False
Q2) Where do organizations get new product ideas?
Q3) Which of the following strategies is involved with penetration pricing?
A) setting an initial low price to establish a new product in the market
B) setting an initial low price to cover new product costs and still generate a profit
C) setting a limited number of prices for certain categories or products
D) setting an initial high price to establish a new product in the market
E) setting an initial high price to cover new product costs and still generate a profit
Q4) From the choices below,pick the BEST definition of the term fixed costs.
A) costs that are needed to acquire a fixed market share
B) costs that are needed to acquire fixed profits
C) costs that are unaffected by the number of goods sold by the firm
D) costs that remain the same from year to year
E) costs that remain the same across all products
Q5) What are three functions of packaging?
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Chapter 13: Distributing and Promoting Products
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100 Flashcards
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Sample Questions
Q1) Most business products are distributed through direct channels.
A)True
B)False
Q2) List and describe the three personal selling tasks.
Q3) Which of the following is the slowest and the cheapest mode of transportation?
A) railroads
B) planes
C) pipelines
D) water carriers
E) trucks
Q4) A review of the Superior VI that is very negative regarding the quality of the new speaker system has been published in an influential magazine.How can Superior counter this negativity?
Q5) Which of the following describes two of the primary objectives of promotion?
A) positioning and communicating information
B) positioning and developing new uses for products
C) developing new uses for products and communicating information
D) adding value to a product and eliminating competition
E) controlling sales volume and eliminating competition
Q6) Summarize the steps in the personal selling process for creative selling.
Page 15
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Chapter 14: Information Technology (IT)for Business
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122 Verified Questions
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Sample Questions
Q1) How can Worldwide benefit from enterprise resource planning (ERP)?
Q2) A CAD system could help a sales manager learn what sales levels will likely result from various levels of advertising expenditures.
A)True
B)False
Q3) Sally wants to determine any changes in the plant's performance based on an estimated 20 percent increase in sales.What technology will Sally most likely use?
A) decision support system (DSS)
B) groupware application
C) spyware application
D) CAD system
E) enterprise resource planning (ERP)
Q4) Where is a firewall located?
Q5) How has information technology affected organizational structure in terms of the number of employees and the organizational structure?
Q6) What is a decision support system?
Q7) Explain the principle of mass-customization.
Q8) Differentiate between dataconferencing and videoconferencing.
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Chapter 15: The Role of Accountants and Accounting Information
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Sample Questions
Q1) Which of the following BEST illustrates cash flow from operations?
A) the revenue from selling bread at a local bakery
B) the revenue from selling stocks by an insurance company
C) the revenue from new investors in a software start-up
D) the revenue from selling obsolescent trucks by a delivery company
E) the revenue from issuing stock by a financial management firm
Q2) What are the six ethics-related areas enforced by the American Institute of Certified Public Accountants?
Q3) Which of the following questions would a balance sheet NOT be able to help answer about the current state of Streeter & Sons?
A) Is it a good time for the business to grow?
B) Can the company survive a season of low revenues?
C) Does the company have too many employees?
D) Can the company take on more debt?
E) What is the value of the company's assets?
Q4) Ethical behavior requires that a CPA give precedence to public trust in the profession over the directions of her or his employer.
A)True
B)False
Page 17
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Chapter 16: Understanding Money and the Role of Banking
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Sample Questions
Q1) Which of the following laws has had significant effects in maintaining bank identity records?
A) the Check Clearing for the 21st Century Act
B) the USA Patriot Act
C) the Bank Secrecy Act
D) the Federal Reserve Act
E) the Emergency Economic Stabilization Act
Q2) The International Monetary Fund seeks to promote stable exchange rates.
A)True
B)False
Q3) 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
Q4) In mutual savings banks,all depositors are considered owners of the bank.
A)True
B)False
Q5) Which of the three functions of money does a time deposit account MOST exemplify?
Page 18
Q6) What are the components of the M-1 money supply?
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Chapter 17: Managing Business Finances
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Sample Questions
Q1) Which of the following statements is true about common stocks as investments?
A) Stocks are among the riskiest of all investments.
B) Stocks are most suitable for investors who seek security.
C) Stocks will never become worth less than their purchase price.
D) Stock prices reflect only government action.
E) Stock prices are easily manipulated.
Q2) Don Dillon is a 24-year-old graphic designer.He eventually wants to get married,raise a family,and buy a house.He knows that he has to start putting money away so that his goals can someday become a reality.He has heard that investing is risky because you can lose money as well as make money.So Don decides to play it safe and deposit money in a bank on a regular basis.Why might this not be his best strategy?
A) Stock investments will always result in high returns.
B) It pays to take chances with your money.
C) You can actually lose money with bank savings due to inflation and taxes.
D) People usually benefit from risky investments.
E) Most savings accounts are insured by the FDIC.
Q3) Explain what exchange-traded funds are and how they are tracked.
Q4) More Americans are investing in the stock market through online trading.Explain the value of online trading.
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