13 Jan High/low pricing

Quiz 1

Quiz 1

Question 1

Munn, Inc. is a company that sells night vision equipment to the public. When it first launched its website, some of the equipment was incorrectly offered for sale at the company’s wholesale price. The company received one hundred orders for the mispriced items before the mistake was corrected and the price changed. If Munn, Inc. follows good business and ethical practices, it will:

A)

Charge the one hundred customers the posted wholesale price of the equipment

B)

Delete the one hundred customers’ orders, hoping they will reorder at the correct price

C)

Charge the one hundred customers the correct retail price of equipment

Question 2

Which of the following is/are an example(s) of a service?

A)

A flight from Los Angeles to Dallas

B)

A couch or sofa

C)

A computer

Question 3

Which of the following is/are internal stakeholders in a business?

A)

Competitors

B)

Industry associations

C)

Managers

Question 4

A business cycle reflects changes in economic activity, particularly real GDP. The phases of a business cycle, in order, are:

A)

Expansion, peak, contraction and trough

B)

Expansion, trough, contraction and peak

C)

Contraction, recession, expansion and boom

Question 5

The field of economics that focuses on the actions of individual agents within the economy, like households, workers, and businesses is:

A)

Global economics

B)

Microeconomics

C)

Macroeconomics

Question 6

Pertaining to international trade, the acronym WTO stands for:

A)

World Trade Organization

B)

World Transaction Operations

C)

Working Trade Organization

Question 7

When the Japanese yen goes up relative to the U.S. dollar:

A)

U.S. citizens will receive more Japanese yen for each dollar they exchange

B)

Japanese goods will be more expensive for U.S. citizens

C)

Japanese goods will be cheaper for U.S. citizens

Question 8

________ follow(s) the dictates of laws, which are written down and interpreted by the courts.

A)

Legal behavior

B)

Morals

C)

Ethics

Question 9

Statistics that indicate change in the status of the economy a few months in the past are called ________ economic indicators.

In

A)

Prognosticating

B)

Leading

C)

Lagging

Question 10

Pertaining to international trade, the acronym GATT stands for:

A)

Global Agency of Textile Trade

B)

Georgia Affiliation of Timed Transit

C)

General Agreement on Tariffs and Trade

Question 11

In 2015, the fictional country Moonbeam Island had $1.8 billion in imports and $1.2 billion in exports. Its balance of trade is:

A)

$600 million surplus

B)

$600 million deficit

C)

$3 billion surplus

Question 12

Both capital and natural resources can be used to produce other goods and services, but only capital resources:

A)

Require bank financing

B)

Have been produced

C)

Grow naturally

Question 13

A person who seeks to earn profits by finding new ways to organize factors of production is a(n):

A)

Employee

B)

Manager

C)

Entrepreneur

Question 14

Shopping online you find a new pair of running shoes that is a brand you have purchased before. They are offered for 1,500 Thai baht. You check the exchange rate and find that the current exchange rate for the baht is $.03 bahts per dollar. What is the price for the shoes in U.S. dollars?

A)

$4.50

B)

$45.00

C)

$450.00

Question 15

If the Consumer Price Index was 120 at the end of last year and is 125 at the end of this year, the country is experiencing which of the following?

A)

Inflation

B)

Stagnation

C)

Deflation

Question 16

A hotel provides both goods and services. Which of the following is an example of a good provided by a hotel?

A)

Offering a bathrobe that you can purchase to take home with you

B)

Offering rooms for rent

In

C)

Providing clean linens during your stay

Question 17

If Guatemala is seeking funding to invest in expanding production and exports that will grow its economy then it would turn to:

In

A)

the World Trade Organization.

B)

the International Monetary Fund.

C)

the World Bank.

Question 18

When it was formed the World Trade organization absorbed:

A)

the IMF

B)

the World Bank

C)

all of GATT’s agreements

Question 19

A ________ is a formalized guide that describes the principles and guidelines that all members must follow in the course of job-related activities.

A)

Business plan

B)

Code of conduct

C)

Balance sheet

Question 20

Which function is responsible for creating financial reports that can be used to evaluate the financial performance of the business?

In

A)

Finance

B)

Management

C)

Accounting

Question 21

If a drop in the price of taxicab fares shifts the demand curve of private limousine rentals leftward, what does this signify?

A)

Taxicab rides and limousine rentals are inferior goods

B)

Taxicab rides and limousine rentals are substitutes

C)

Taxicab rides and limousine rentals are normal goods

Question 22

The market value of all goods and services produced by the economy in a given year is known as:

A)

Rate of Inflation

B)

Gross Domestic Product (GDP)

C)

Consumer Price Index (CPI)

Question 23

________ is the system of shared beliefs, values, customs, and behaviors that govern the interactions of members of a society.

A)

Culture

B)

Organization

C)

Humanity

Question 24

All economies in the world share three primary goals, which are:

A)

Growth, high employment, and price stability

B)

Productivity, high employment and price stability

C)

Growth, happiness and price stability

Quiz 2

Question 1

The business plan market analysis section should indicate that the business owner has knowledge of the market, has conducted research into the market and has ________?

A)

mapped out the company’s organizational structure

B)

narrowed the target market to a reasonable size

C)

estimated future funding requirements

Question 2

Individuals are motivated by a sense of fairness in their interactions, and our sense of fairness is a result of the social comparisons we make. This is the ________.

A)

acquired-needs theory

B)

equity theory

C)

two-factor theory

Question 3

Managers who adopt a ________ style communicate with subordinates about what is expected of them and what happens if they meet these objectives. Their attention tends to focus on identifying problems and disciplining employees for poor performance.

A)

laissez-faire

B)

transformational

C)

transactional

Question 4

Which of the following definitions best describes a team (or work team)?

A)

a group of people with complementary skills who work together to achieve a specific goal

B)

a group of people performing the same job functions and working in the same office space

C)

a group of people who go about their jobs independently and meet primarily to share information

Question 5

A company’s mission statement should have what effect on its employees?

A)

it should prompt employees to get additional training in order to stay at the workplace

B)

it should instill fear and uncertainty

C)

it should inspire employees and resonate with their inner motivations.

Question 6

When one company purchases and absorbs another company it is called a(n):

A)

franchise

B)

merger

C)

acquisition

Question 7

In email messages, using all capital letters denotes:

A)

nothing out of the ordinary

B)

you are shouting or angry

C)

you are excited or happy

Question 8

Conceptual skills are most essential for:

A)

top-level managers

B)

lower-level managers and employees

C)

mid-level managers

Question 9

In the United States, the________ is the right of an employer to fire an employee or an employee to leave an organization at any time, without any specific cause. This principle gives both the employee and employer freedom to terminate the relationship at any time.

A)

mandatory employment principle (MEP)

B)

right-to-work provision (RTW)

C)

employment-at-will principle (EAW)

Question 10

In his managerial role, Carlos starts every project with a session focused on goal-setting and dialogue among team members about the best approach for achieving these goals. This activity is part of which primary function of management?

A)

directing

B)

planning

C)

controlling

Question 11

An approach of open communication and collaborative decision making suggests which type of leadership?

A)

democratic leadership

B)

autocratic leadership

C)

laissez-faire leadership

Question 12

Joseph oversees the work of three team leaders at a software company. He reports to the vice president of operations. Based on this information, at which management level does Joseph work?

A)

first-line management

B)

top management

C)

middle management

Question 13

Which government entity insures loans for small businesses?

A)

the IRS

B)

the SBA (Small Business Administration)

C)

the Federal Reserve

Question 14

The first step in appraising employees’ performance is to:

A)

share performance appraisal results with the employee

B)

complete a written evaluation rating employee performance according to the predetermined criteria

C)

set goals, performance expectations and specify the criteria used to measure performance

Question 15

Allocating resources including people, equipment and money to carry out the company’s plans is the ________ function of management.

A)

planning

B)

controlling

C)

organizing

Question 16

Marc leads a unit focused on business-to-business sales of the specialty office furniture his company manufactures. His division includes teams that perform sales and marketing, accounting, product development and installation. Another company unit focuses on selling to retailers, designers and households. How does Marc’s employer structure this organization?

A)

customer division structure

In

B)

functional organization

C)

process division structure

Question 17

________ is the process of identifying suitable candidates and encouraging them to apply for job openings in the organization.

A)

firing

B)

training

C)

recruiting

Question 18

When a corporation makes payments to its shareholders these are called:

A)

stock benefits

B)

stock buy-back

C)

dividends

Question 19

________ is the tendency to conform to group pressure in making decisions, while failing to think critically or to consider outside influences.

A)

group dynamic

B)

groupthink

C)

group cohesiveness

Question 20

Attracting talented employees, developing existing employees, retaining good employees, and managing these tasks is a matter of ________: the process of developing a plan to satisfy an organization’s human resources (HR) needs.

A)

strategic human resource planning

B)

strategic employee planning

C)

critical human resource planning

Question 21

What is the purpose of a mission statement?

A)

it explains how the company was created

B)

it describes the purpose of the organization

C)

it defines who will do what in the company

Question 22

The ability to reason abstractly and analyze complex situations is known as:

A)

organizational skills

B)

technical skills

C)

conceptual skills

Question 23

Lois works at ActiveTech’s headquarters where she leads a team of eight people. The team is focused on providing technical support and customer service for ActiveTech’s new line of wearable computing gear for runners. It is Lois’s sole responsibility to set team goals, assign tasks and monitor the performance of team members. Lois reports to her manager on team progress, outcomes and performance metrics. Lois’s team structure is:

A)

a virtual team

B)

a self-managing team

C)

a manager-led team

Question 24

By asking individuals what satisfies them on the job and what dissatisfies them, Frederick Herzberg came to the conclusion that:

A)

aspects of the social environment that satisfy and dissatisfy employees are very similar

B)

the same work environment satisfies some employees while dissatisfying others

C)

aspects of the work environment that satisfy employees are very different from aspects that dissatisfy them

Quiz 3

Question 1

An airplane manufacture assembles a plane in one location and the workers and equipment go to the airplane when they need to work on it. This is an example of a ________.

A)

Fixed-position layout

B)

Product layout

C)

Cellular layout

Question 2

The purpose of this legislation is to reduce unethical corporate behavior, protect investors from the possibility of fraudulent accounting activities by corporations, and decrease the likelihood of future corporate scandals. It is the:

A)

Securities and Exchange Commission (SEC).

B)

Sarbanes-Oxley Act (SOX).

C)

Generally Accepted Accounting Principles (GAAP).

Question 3

In conducting financial analysis of the company, external parties often use:

A)

Specialized internal reports

B)

Financial statements

C)

Better Business Bureau Rating

Question 4

After planning the production process at a manufacturing plant, the next step is to determine the:

A)

Technological infrastructure

B)

Plant layout

C)

Labor requirements

Question 5

What is the primary purpose of product placement?

A)

To increase consumer awareness of products

B)

To get products to the customer

C)

To assemble inputs that go into the production process

Question 6

When an individual impersonates another user or site to act in a malicious way, it is called:

A)

A Trojan horse

B)

Spoofing

C)

A worm

Question 7

A firm’s strategic plan and its marketing plan both start with ____.

A)

Focus on customers

B)

Social responsibility

C)

Sales projections

Question 8

A ________ chart is useful when the production process is fairly simple and the activities aren’t interrelated.

A)

Gantt

B)

PIE

C)

PERT

Question 9

A secure computer network that links computers that operate in offices in different states or regions is a:

A)

Local area network

B)

Wide area network

C)

Database

Question 10

Elaine has just opened a new business near campus that is a combination of a laundromat, a nail salon, and a tanning studio. There is an accounting firm located just down the street and Elaine is paying them to do all of her accounting. At the end of the first quarter (three months of business), Elaine has several questions about how things are going. If she wants to understand how much total cash has come into the business this quarter, then she should look at the ________ that her accountant has prepared.

A)

The Statement of Cash Flows

B)

The Statement of Owner’s Equity

C)

The Income Statement

Question 11

What is the basic structure of the Federal Reserve System?

A)

There are 12 district banks, a Board of Governors and a Federal Open Market Committee.

B)

The combination of all private banks in the U.S. excluding Savings and Loans banks.

C)

There is one major bank located in Washington D.C. with branch banks located in several major cities.

Question 12

Over a given period under normal working conditions, the maximum quantity of goods that a manufacturing facility can produce is called its:

A)

Warranty

B)

Capacity

C)

Durability

Question 13

The software used to design models of potential products is called ________.

A)

Computer-aided manufacturing (CAM)

B)

Computer-aided design (CAD)

C)

Computer-created design (CCD)

Question 14

Using outside vendors to manufacture entire products, components or provide services is called ________.

A)

Resource alignment

B)

Manufacturing strategy

C)

Outsourcing

Question 15

When Apple introduced the first iPhone, it was priced substantially higher than other mobile phones at the time. But because it was also the latest technology, Apple was confident it would sell well. This is an example of:

A)

Skimming

B)

Penetration pricing

C)

Odd-Even pricing

Question 16

A creditor, such as a bank, would review a company’s cash and other assets that can easily be converted into cash to determine its:

A)

Liquidity

B)

Break-even point

C)

Owner’s equity

Question 17

What is the important first step in any marketing research project?

A)

Development of an approach to the problem

B)

Research design formulation

C)

Problem definition

Question 18

68. Elaine has just opened a new business near campus that is a combination of a laundromat, a nail salon, and a tanning studio. There is an accounting firm located just down the street and Elaine is paying them to do all of her accounting. At the end of the first quarter (three months of business), Elaine has several questions about how things are going. If she wants to understand how much money she has put into the business so far, then she should look at the ________ that her accountant has prepared.

A)

The Statement of Owner’s Equity

B)

The Statement of Cash Flows

C)

The Balance Sheet

Question 19

“Higher price equates to higher quality,” is an example of a ________ pricing strategy in action.

A)

Prestige

B)

High/low

C)

Skimming

Question 20

Accounting has collected data on the length of time it takes Wanda’s Widgets to pay its bill every month while sales has collected data about which model of widgets they purchased last quarter. Shipping has been tracking the number of orders that Wanda’s has returned over the last year. Belinda, the sales manager is going to make a personal visit to Wanda’s Widgets and needs information to inform her conversation with the owners. When she makes her request, the information manager will use the ________ to obtain the data to analyze.

A)

Enterprise resource planning system

B)

Data mine

C)

Data warehouse

Question 21

Elaine has just opened a new business near campus that is a combination of a laundromat, a nail salon, and a tanning studio. At the end of the first quarter (three months of business), Elaine wants to see if she has made a profit so she makes an appointment to meet with her accountant. When she gets to the appointment, her accountant will review which of the following financial statements with Elaine?

A)

Statement of Owner’s Equity

B)

Balance Sheet

C)

Income Statement

Question 22

To calculate the net income from business operations a manager would apply which of the following equations?

A)

Net income = liabilities + equity

B)

Net income = total revenue – total expenses

C)

Net income = debts – credits

Question 23

Every week, the grocery store chain Great Seals advertises weekly specials and coupons, hoping to attract customers with great sale prices. This is an example of:

A)

High/low pricing

B)

Prestige pricing

C)

Everyday low pricing

Question 24

Which of the four Ps is defined as creating goods and services to offer customers?

A)

Place

B)

Promotion

C)

Product