1-Top-level managers must demonstrate excellent skills because they must formulate a vision, interpretmarketplace trends, and plan for the future.

a. technical b. human

c. conceptual d. forecasting

2-planning normally is performed by middle managers and typically has a one-year time frame.

a. Strategic b. Tactical c. Operational d. Contingency

3-planning done by top-level managers involves establishing a vision for the company, defining long-term objectives and priorities, determining broad action steps, and allocating resources. a. Strategic

b. Operational c. Tactical d. Contingency

4-The defines the organizations purpose, values, and core goals, providing the framework for all other plans.

a. mission b. position statement c. code of conduct d. tactical plan

Which of the following statements is true of SWOT analysis?

Opportunities and threats include factors that are exclusively in the company's control.

Strengths and weaknesses include factors that would either build up or drag down the firm's performance.

Opportunities and threats are internal to an organization.

Strengths and weaknesses are external to an organization.

6. In an organizational chart that is "flat" managers typically have a very small span of control. a. True b. False

7. A(n) is the visual representation of the companys formal structure.

a. Gantt chart

b. operational chart c. organization chart d. interaction matrix

8. leaders hoard decision-making power for themselves and typically issue orders without consulting their followers. a. Democratic b. Free-rein

c. Autocratic d. Theory Y

9. The consumer decision-making process involves need recognition, followed by: a. information search, alternative evaluation, purchase decision, and post-purchase behavior.

b. information search, information learning, purchase evaluation, and post-purchase behavior.

c. product search, benefit analysis, price analysis, and value analysis. d. cognitive dissonance, alternative evaluation, and post-purchase learning.

10. Analysis of market share is a key to understanding the firms: a. social and cultural environment. b. technological environment. c. demographic strengths.

d. competitive environment.

11. Donna has recently started a unique music store that not only sells musical instruments and music CDs from all over the world, but also features regular performances by renowned artists. The store also has a karaoke section wherecustomers can try their hand at singing. Which of the following promotion tools does Donna have direct control over?

a. A consumer's review of the store on her personal blog b. Donna's customers informing their relatives and friends about the store

c. An ad campaign managed by an advertising agency hired by the store

d. Word-of-mouth publicity through customers who visit the stores

12. Marketers can directly control most of the promotional tools they use. The tool that they are least likely to have control over is: a. messages delivered by salespeople to the consumers. b. publicity.

c. personal selling. d. advertising messages and their placement in the media.

13. A defines the jobholders responsibilities. a. job specification b. job forecast c. job description

d. job design

14. Many have no expectation that employers will be loyal to them, and they do not feel that they owe theircompanies strong loyalty in return. a. older workers b. women

c. younger workers d. workers with disabilities

15. A major challenge human resource managers face with their Millennial generation employees is that:

a. many of these workers lack education and experience, leading to high training costs at a time when most American firms are under pressure to keep labor costs as low as possible.

b.theyhavehighloyaltytotheiremployer,resultinginhighlabor turnover.

c. workers in this generation are more likely than other workers to demand flexible work schedules so that theycan enjoy a better work-leisure balance.

d. this very large group is nearing retirement, raising the possibility that firms will lose many of their most talented and experienced employees.

16. Southwest Airlines' executive chairman states, "We value our employees first." Which of the following statements best explains this statement?

a.Southwest Airlines has only had to lay-off 5 percent of its workforce during the Great

Recession, in part due to its emphasis on employees.

b.The activity of HR is important in an organization but all profit-making activities should be prioritized before employee satisfaction and employee retirement.

c.A companys people are its lifeblood. They are the face and hands of the enterprise. To that end, Southwest Airlines values its employees as its most valuable asset.

d.Southwest Airlines exclusively focuses on attaining the profit maximization goal as a way to retainemployees.

17. Companies that get the most from their people often consider investment.

a. top management b. trade unions c. crowdsourcing efforts

d. human resources

18. The Yearly Companys balance sheet showed $18,000,000 in Retained Earning and $5,000,000 in Net Income. The company has issued 2,000,000 shares of common stock. The EPS amount is:

a. $9.00 c. $6.50 b. $2.50 d. $11.50 e. none of these

19. A balance sheet identifies cash flows from three types of activities: production, sales, and promotional activities. a. True b. False

20. Stockholders would most likely use accounting information provided by their firm to: a. make capital budgeting decisions. b. gauge whether the firm is generating a satisfactory return on stockholders' investment. c. determine whether the firm can repay them for the orders it places. d. obtain information needed to fill out their individual tax returns. e. none of the above

21. As a , you work within an organization, prepare reports, and analyze financial information such as budgets and cost management for internal use only. a. public accountant b. government accountant

c. management accountant d. forensic accountant

22. Cressey identifies three types of "offenders". These include all of the following EXCEPT: a. Absconders b. Independent businessmen c. Long-term violators

d. Stakeholders

23. In a white collar crime situation, ___________ is created by strong internal controls, good management oversight, and/or through use of one's position and authority.

a. pressure b. oversight c. opportunity d. rationalization e. none of the above

24. Rationalization of a white collar crime by the perpetuator includes which of these: a. They owe me

b. Borrowing c. Nobody will get hurt d. I deserve more e. All of the above

25. Business owners should have video cameras in the workplace even though the video cameras may not be functional because it is the mere perception that the security is in place that will work as a deterrent.

a. True b. False

26. A message from Chairman Phil Knight to all Nike employees: At Nike, we are on the offense, always. We play hard, we play to win, but we play by the rules of the game. The rules of the game are posted on the

companys Web site in a document entitled Inside the Lines, which is actually Nike's___________.

A.List of Achievements

B.Code of Ethics

C.Corporate lessons

D.Rationalization of corporate behavior

27. Unity of command is best displayed in and defined as:

A,a marketing plan; the single employee responsible for the job

B,an employee handbook; the boss who reports to the President of the company

C.an organizational chart; one employee reporting to only one boss

D.a divisional organizational structure; one boss who report to two Vice Presidents

28. Depository institutions include all of the following except: a. Credit unions

b. Commercial banks c. Investment Banks d. Savings & Loan Associations e. all of the above are depository institutions

29. ________ is the practice of ending prices in numbers below even dollars and cents in order to create a perception of greater value.

a. Skimming approach to pricing

b. Cost-plus pricing c. Prestige pricing d. none of these

30. ________ is where new securities are offered to any investors who are willing and able to purchase them. And, the issuing company had the securities sale authorized by ________

a. The Secondary market; the IRS b. The NASDAQ system; the federal ethics committee c. The Primary market; the SEC d. The Chicago Board of Trade; the New York Stock Exchange

31. Financial capital represents funds a firm uses to acquire assets and finance its operations. All of the following represent forms of financial capital except:

a. newly issued common stock b. new Bond issues c. long term loans d. reinvested earnings (Retained Earnings) e. intellectual property

32. A manager who exhibits more of a Laissez-Faire type of leadership is a manager who would be best utilized in the following work environment:

a. the local hospital b. the NASA research lab c. the U.S. Post Office d. the U.S. Military e. the check-out lane a Kroger

33. John is the senior vice president of his company. He learned at a senior staff meeting that the companys research staff has made an amazing discovery that is almost certain to result in several profitable new patents. He is confident that once this information becomes public knowledge, the price of his companys stock will soar. He calls his broker and places an immediate order to buy 5,000 additional shares of stock in the company. Johns actions are:

a. perfectly legal, because he didnt obtain the information illegally. b. an example of illegal insider trading. c. an example of trading on the margin, which is legal. d. an example of preemptive buying, which is technically legal but considered highly unethical by

many securities dealers.

34. Sally owns a bond with a maturity value of $1,000 and a coupon rate of 15 percent. She will receive in annual interest until the bond reaches maturity, or he sells the bond to someone else.

a. $7.50

b. $50

c. $150

d. $1500

e. none of the above

35. Individual investors are not permitted to directly trade stocks on the NYSE or NASDAQ. Therefore, individuals must seek the help of a(n) .

a. underwriter. b. banker c. investment banker d. broker

36. The objective of the long position in stock investment strategy is to:

a. predict changes in stock prices in order to earn a positive profit by buying high and selling low.

b. getting completely out of the stock market when stock prices begin to rise. c. identify new companies with potential and buy their stock before the stick price begins to rise

d. hold a diversified portfolio of stocks for a long period of time in order to take advantage of the

downward trend in the stock market.

37.Jasmine is an investment broker for a large firm. Understanding overall market conditions helps her advise her clients who invest in stocks. Which of the following are indices that are commonly used to describe the price movement of securities in the U.S. market?

A.Fortune 500 and the Turbo 900

B.The Nikkei 225 Index and the Boston Big Index

C.The FTSE 100 and the SSE Composite

D.The DJIA and the S&P 500

38. White collar crime is a victimless crime. a. True b. False

39. The price-to-earnings ratio:

A.develops an investors knowledge of the price of various stocks in a single industry

B.is of little value to investors these days due to the fact that market values far exceed earnings

values.

C.is important to investors because a higher P/E ratio means lesser growth in earnings over

time.

D.is important to investors because a higher P/E ratio means greater growth in earnings over time.

40. The corporations that issue stocks and bonds do not receive any funds from sales on the secondary market.

a. True b. False