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MGT 101 Final Exam With Actual Questions And Verified
Detailed Answers 2024 - 2025
_______ is the major objective of business. - Answer Profit
All of the groups that have a stake in the organization's success and performance are referred to as the organization's ____. - Answer Stakeholders
Advertising, personal selling, coupons and sweepstakes are forms of the ______ part of marketing activities. - Answer Promotion
______ encompasses all activities related to acquiring and managing funds and using them efficiently. - Answer Finance
_____ is the amount of products and services that consumers are willing to buy in different prices within a specific time period - Answer Demand
Economic growth or boom occurs in: - Answer an expanding economy where people have more money to spend.
. Which of the following is an intangible product? - Answer A music concert
_____ is the study of how resources are distributed for the production of goods and services within a social system. - Answer Economics
A firm's _____ resources are also known as labor. - Answer human
Financial resources are also known as - Answer capital
The principles and standards that determine acceptable conduct in business organizations are referred to as: - Answer business ethics
. The term social _____ refers to a business's obligation to maximize its positive impact and minimize its negative impact on society. - Answer responsibility
Which of the following statements is FALSE about ethics? - Answer Ethical issues are limited to for profit organizations.
A set of formalized rules and standards that describes what a company expects of its employees is called a(n) ____. - Answer code of ethics
A large number of _____ cases result in retaliation against the employee, even though the government has tried to take steps to protect workers and to encourage reporting of misconduct. - Answer whistleblowing
Obeying the law is a business's ____. - Answer legal responsiblity
_____ is the extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their stakeholders. - Answer corporate citizenship
Which of the following is an advantage of using an export agent? Answer The firm needn't deal with the red tape of international business.
Lever Brothers changed the formula of its bar soap to match different countries' water conditions and washing habits. This is an example of: Answer Multinational strategies
Which of the following would likely cause a country to have a trade deficit? - Answer If a country reduces its tariffs on imports
Which of the following is something that might not raise revenue for the U.S. government, but could effectively limit the quantity of an specific good imported from Japan? - Answer Quota
Which of the following forms of business ownership provides limited liability, but is taxed like a partnership? - Answer A limited liability company
Which of the following statements is true of joint ventures? - Answer It is popular in situations that call for large investments.
Which of the following forms of business organizations below places limitations on the number and type of shareholders and is rather cumbersome to form and operate? - Answer An S-corp
_______ refers to the process of creating and managing an organization for the purpose of achieving a desired objective. - Answer entrepreneurship
A _____ is best described as any independently owned and operated business which is not dominant in its competitive area and does not employ more than 500 people. - Answer small business
A small business is any independently owned business which employs not more than _____ people. - Answer 500
The Small Business Administration (SBA) is a(n): - Answer independent agency of the federal government that provides managerial and financial assistance to small businesses.
One of the major reasons people want to own and operate their own business is to: - Answer Be their own boss
_____ is best described as the lack of funds to operate a business normally. - Answer undercapitalization
Arnold approached a bank for a loan to establish a business, which he would set up later
that year. He explained his idea of the business and its capital requirements to the bank manager. The manager listened to the plan and asked Arnold to provide a formal document that included justification of the business, how it would fulfill the business goals set forth, analysis of the competition, estimates of income and expenses among other information. What type of document will the bank likely request from Arnold in this situation? Answer A business plan
Those individuals or organizations that agree to provide some funds for a new business, usually in exchange for ownership interest or stock, are called ____. - Answer venture capitalists
Andrew was a druggist and found that he needed to have, on hand, extra supplies of a particular medicine to combat an outbreak of a specific infection in the city. He did not have sufficient capital to buy the extra stock, so he went to his bank and asked for access to an amount of money, pre-determined for him. Which of the following sources of funds does this scenario best describe? - Line of credit
License to sell another's products or to use another's name in business, or both called a ____. - Answer franchise
Because Eva Carl has chosen to invest her savings in buying the rights to own and operate a McDonald's fast-food restaurant instead of opening her own restaurant, she is most likely a(n) ____. - Answer franchisee
Nathan opened the first outlet of Dynamix Gym in New York City in 1995. With time, as the business prospered and Nathan became owner of a chain of gym operating in New York state, he didn't wanted to take the associated risk and responsibilities of expanding the business outside New York State. He, therefore, wanted to franchise license to own and operate gyms in the name of Dynamix Gym to independent owners. In return, he charged them an initial fee and a small share in the monthly profits. In this case, Nathan is a(n) __. - Answer fractiser
Norton is a human resource manager at a large multinational company. His company, due to a severe decline in revenue, was working out strategies in order to align the situation. In a meeting with the top managers, the CEO told them that 20 percent of the employees had to be removed. This would help the company bring down costs and carry on with current projects. Which of the following strategies does this MNC plan on using
Decisions to add new products, acquire companies, and move into foreign markets would normally be made by top management within an organization.
Which of the following statements regarding organizational structure is correct? It is the arrangement or relationship of positions within an organization.
Which of the following is true of an organization chart regarding organizational structure? - Answer It shows the organization's chain of command.
_____ means dividing jobs into groups usually called units, groups or divisions. - Answer departmentalization
A firm that has departments for marketing, finance, personnel, and production is organized on the basis of - Answer function
An airlines company having different departments for frequent travelers and occasional travelers illustrates _____ departmentalization. - Answer customer
_____ is the principle that employees who accept an assignment and the authority to carry it out are answerable to a superior for the outcome. - Answer accountability
When an organization has a structure in which decision-making authority is delegated as far down the chain of command as possible, it is said to be exercising: - Answer decentralization
An organizational form that is based on direct lines of authority from the top executive to the lowest level of employees is called: - Answer line structure
Which of the following is an informal communication channel? - Answer the grapevine
If an employee is involved with transforming resources into goods and services, then he is in: - Answer operations management
From the operations point of view, food sold at a restaurant and services provided by a plumbing company are: - Answer outputs
As a manufacturing process, the term standardization means: - Answer making identical, interchangeable components or complete products.
A firm that produces very large products, such as houses or bridges, would have to have all resources brought to a central position during the production process. A facility layout that reflects this is called: - Answer fixed position layout
An organization that produces a great number of products with similar characteristics, such as automobiles, television sets, or vacuum cleaners would most likely fall under what type of organization? - Answer continuous manufacturing organization
All activities involved in obtaining and managing raw materials and component parts, managing finished products, packaging them, and getting them to customers are part of: - Answer supply chain management
A(n) _____ is the personal satisfaction and enjoyment that a person feels from attaining a goal. - Answer intrinsic reward
Job rotation tries to alleviate the monotony caused by the division of labour by: - Answer providing laborers with a range of activities to perform on a routine basis.
______ refers to the addition of motivational factors, like opportunity for attainment, recognition, responsibility, and growth, in a job. - Answer job enrichment
A work program that allows employees to choose their starting and ending hour as long as they are at work during a specified core period is called: - Answer flextime
_____ refers to the decision processes and actions of consumers who buy and use products. - Answer buying behavior
Ryan has made 1000 jars of pickled oranges from the oranges in his orchard. Devoting his energies to advertising and publicity, he is trying to encourage people to become aware of and buy his product. Ryan's promotional efforts are primarily engaging in the marketing function of __. - Answer selling
Which of the following is NOT true of the marketing concept philosophy? - Answer A firm should develop its product, service, or idea first and then determine what consumers want.
If a company creates an advertising campaign only for a group of consumers based on their income and education, which of the following is the segmentation variable being utilized by the company? - Answer demographic
The pricing policy that allows a company to capture badly needed revenue to offset research and development costs is known as: - Price skimming
The integration of promotion mix elements with coordination of promotion as one single effort is referred to as _____. - Integrated marketing communications
Every time Viera, an automobile company, pays a television network for running its commercial, it is using: - Advertising
If a national sandwich chain introduces a new sandwich in the Midwest to test its marketing strategy prior to rolling out the product nationally, it is in the _____ stage of the product development process. - Answer test marketing
7-UP, Cherry 7-UP Antioxidant, and Diet 7-UP are products in Dr. Pepper Snapple Group's: - Answer 7-up product line
Diet Coke is a: - Answer brand name
Which of the following is true when a firm sets a relatively low price for a new product as a means of discouraging competition from market entry? Answer penetration pricing
Which of the following statements is correct about blogs? Answer They give users the power to even post false or negative information
Which of the following is true about viral marketing? -Answer It occurs when a message gets forwarded from person to person to person.
Which of the following scenarios make a reference to E-business? -Answer Alexis buys a tablet via an online retail store.
A _____ is a web-based meeting place for friends, family, coworkers, and peers that allows users to create a profile and connect with other users for a wide ranging set of purposes. - Answer Social Network
_____ are websites that allow users to add to or edit the content of posted articles. - Answer Wikies
Accounting refers to a process of: - Answer recording, measuring, and interpreting financial data.
CPA - Answer Certified Public Accountant
The term owners' equity means: - Answer All the money that the firm has that does not need to be paid back
The term net income is - Answer earnings after all taxes and other expenses are paid.
pay interest on the amount that is not paid.
The Federal Reserve Board was established by Congress in 1913 to: - Answer manage and control the banking system.
Commercial banks: - Answer need checking and savings accounts to provide them with funds.
Which of the following is a reason why companies use a lockbox? - Answer To accelerate cash collection from customers
_____ are marketable securities that are short-term debt obligations sold by the U.S. government to raise money.
A. Commercial certificates of deposits - Answer T-Bills
Long-term liabilities are: - Answer debts that will be repaid over a number of years.
Which of the following statements is true of floating-rate bonds? - Answer They do not have fixed interest payments.
Which of the following type of bonds offer relatively high rates of interest because they have higher inherent risks? - Answer junk bonds
Practice Matching In February, a boat manufacturer buys 50 units of fiberglass material on credit, promising to pay at a later date. The boat manufacturer will record the amount they will pay as a(n): - Answer accounts payable
_____ refers to a written promise from one company to another to pay some amount of money. - Answer commercial paper
