1.) Since the mid-1980s, the __________ sector has generated the most amount of increases in employment in the United States. A._ manufacturing B) agricultural C) service D) goods producing 2) When referring to risk, which of the following statements is reasonable? A) Although risk means taking a chance at losing, the less risk you take, the more you are likely to profit. B) Good business strategy encourages less risk, because the least risky ventures usually make more profit. C) Sizeable risks can lead to substantial profits, if the business takes calculated risks and captures good opportunities. D) Although risk means taking a chance, a start-up will usually manage to get off the ground faster if the stakes are high. 3) Darnell lives in an area where labor is plentiful and locations for start-ups are relatively cheap. He is also confident that he can find start-up funds for a graphic arts business. As he evaluates the opportunity for his proposed venture, which of the following factors of production should he focus on? A) Capital and land B) Labor and knowledge C) Entrepreneurship and capital D) Entrepreneurship and knowledge 4) Lance and Laurie live on three acres of land in North Carolina, with two llamas, five goats, six chickens, and two dogs. The goats provide milk, cheese, yogurt, and even fiber that is woven into yarn; the chickens provide free-range eggs; and the llamas serve as protection for the other animals. Although Lance and Laurie have other professional jobs, their home lifestyle represents _______. A) a growing trend in the social environment to have more control of the food they eat and where it comes From B) a need to challenge the competitive environments of big businesses that sell the same products C) a desire to pay less sales tax on foods and other staple products at the larger stores D) an aversion to technological advancement leading to a slower and less productive life 5) Since the mid-1980s, the __________ sector has generated the MOST  amount of increases in employment in the United States. A) Manufacturing B) Agricultural C) service D) goods producing 6) During the 2010 Gulf Oil Spill, former BP CEO, Tony Hayward, was quoted as saying: "I want my life back!" Although heapologized for this remark in a later statement, the original message remained in the thoughts of many, particularlyunder the circumstances that 11 persons lost their lives; several communities experienced extreme devastation; many fishing industry businesses lost their livelihood; and dead sea life washed up on the shores of several southern states and Mexico. In terms of corporate social responsibility, which of the following statements would you like to share with Tony Hayward? A) We should repeat well-known economist Milton Friedman's statement that the only social responsibility of business is to make money for stockholders. B) The company's CSR (corporate social responsibility) approach lacked whistleblowers that would e.

1. 1.) Since the mid-1980s, the __________ sector has generated
the most amount of increases in employment in the United
States.
A._ manufacturing
B) agricultural
C) service
D) goods producing
2) When referring to risk, which of the following statements is
reasonable?
A) Although risk means taking a chance at losing, the less risk
you take, the more you are likely to profit.
B) Good business strategy encourages less risk, because the
least risky ventures usually make more profit.
C) Sizeable risks can lead to substantial profits, if the business
takes calculated risks and captures good
opportunities.
D) Although risk means taking a chance, a start-up will usually
manage to get off the ground faster if the
stakes are high.
3) Darnell lives in an area where labor is plentiful and locations
for start-ups are relatively cheap. He is also confident that
he can find start-up funds for a graphic arts business. As he
evaluates the opportunity for his proposed venture, which
of the following factors of production should he focus on?
A) Capital and land
B) Labor and knowledge
C) Entrepreneurship and capital
D) Entrepreneurship and knowledge

2. 4) Lance and Laurie live on three acres of land in North
Carolina, with two llamas, five goats, six chickens, and two
dogs. The goats provide milk, cheese, yogurt, and even fiber
that is woven into yarn; the chickens provide free-range
eggs; and the llamas serve as protection for the other animals.
Although Lance and Laurie have other professional jobs,
their home lifestyle represents _______.
A) a growing trend in the social environment to have more
control of the food they eat and where it comes From
B) a need to challenge the competitive environments of big
businesses that sell the same products
C) a desire to pay less sales tax on foods and other staple
products at the larger stores
D) an aversion to technological advancement leading to a
slower and less productive life
5) Since the mid-1980s, the __________ sector has generated
the MOST amount of increases in employment in the United
States.
A) Manufacturing
B) Agricultural
C) service
D) goods producing

3. 6) During the 2010 Gulf Oil Spill, former BP CEO, Tony
Hayward, was quoted as saying: "I want my life back!"
Although heapologized for this remark in a later statement, the
original message remained in the thoughts of many,
particularlyunder the circumstances that 11 persons lost their
lives; several communities experienced extreme devastation;
many fishing industry businesses lost their livelihood; and dead
sea life washed up on the shores of several southern states
and Mexico. In terms of corporate social responsibility, which
of the following statements would you like to share with
Tony Hayward?
A) We should repeat well-known economist Milton Friedman's
statement that the only social responsibility of business is to
make money for stockholders.
B) The company's CSR (corporate social responsibility)
approach lacked whistleblowers that would expose exactly who
was responsible for the crisis, most likely, the company that
made the oil rig.
C) Ethical standards begin with a company's management and
the messages they send. CSR takes into account investors,
employees, and society and the environment.
D) The best CSR approach to deter bad publicity would be to
quickly list all the good things this company has
done for society over the past five years.
7) Today, human resource management has become so important
that in many firms it has become:
A) a function performed by managers in all areas of the
organization.
B) the sole responsibility of the firm's legal staff.
C) a function handled only by specialists in the human resource
department.

4. D) a function handled only by the firm's top management.
8) If you aspire to become a sous chef (the second in command
in a large restaurant kitchen), you will pursue several types of
training and development. Your __________ will include
learning how to perform as a line chef, as you work your way
through pastry, grill, pantry, and sauté. The only way you will
learn the variations in the line jobs is to experience them! As
a(n) ________, you will work alongside another sous chef for a
few years in order to learn how to
juggle all the middle management type of activities expected of
this professional. Your ____________ training will be
extensive, as you go to Culinary School, attend a community
college, and/or take management classes to help you learn
to minimize conflict in the kitchen as well as improve the
productivity of those you manage.
A) apprenticeship; journeyman; online
B) apprenticeship; simulator; off-the-job
C) job rotation; apprentice; off-the-job
D) on-the-job training; journeyman; vestibule
9) The union movement in the United States was an outgrowth
of the economic transition caused by the:
A) Revolutionary War.
B) Great Depression.
C) Industrial Revolution.
D) passage of antitrust legislation by the federal government.
10) The Industrial Revolution was characterized by a(n):
A) increased emphasis on production, resulting in longer hours
and less job security for most workers.
B) migration of manufacturing jobs from the Midwest and
Northeast to the South as firms began locating in areas where
labor costs were lower.

5. C) rapid improvement in the wages and working conditions of
most workers, resulting in a decline in the need
for labor unions.
D) movement away from scientific management, and a greater
acceptance of the ideas of Herzberg and Maslow.
11) _____________ is the process by which representatives of a
union meet with representatives of management to negotiate a
contract for workers.
A) Mediation
B) Arbitration
C) Mutual Conciliation
D) Collective bargaining
12) The first federal minimum wage was established by the:
A) Fair Labor Standards Act.
B) Wagner Act.
C) Minimum Compensation Act.
D) Pay Equity Act.
13) The ability of unions to achieve key goals in the future will
depend on their ability to:
A) reestablish their base of strength in the manufacturing
sector.
B) ind ways to cooperate with management in training workers
and redesigning jobs.
C) repeal the Wagner Act and the Norris-LaGuardia Act in order
to eliminate restrictions on union tactics.
D) return to the confrontational tactics used successfully in the
1930s when unions grew rapidly.
14) _________ sexual harassment refers to situations in which
an employee's submission to unwanted conduct is made
either explicitly or implicitly a term or condition of employment
or is used to influence employment decisions affecting the

6. worker's job status.
A) Quid pro quo
B) Post hoc
C) Ceteris paribus
D) Reflexive
15) ________ is the activity, set of institutions, and processes
for creating, communicating, delivering, and exchanging
offerings that have value for customers, clients, partners, and
society at large.
A) Selling
B) Advertising
C) Marketing
D) Mixing markets
16) A firm's marketing mix refers to the combination of:
A) goods the firm offers to different market segments.
B) advertising media the firm utilizes to promote its products.
C) strategies regarding product, price, place, and promotion.
D) people directly involved in making marketing decisions.
17) After years of using a mass marketing strategy, Digital Print
Shops has responded to new competition from national
chain stores by focusing on small market segments that have
been ignored by their larger competitors. Digital believes
that by offering these market segments personalized customer
services it can attract a loyal group of customers willing
to pay premium prices. Digital's strategy to improve profits is
known as:
A) environmental scanning.
B) niche marketing.
C) micro-marketing.
D) respondent change.
18) Hideki has just been transferred from a position in his firm
where he dealt with the consumer market to a new job

7. dealing with buyers in the B2B market. Which of the following
correctly identifies a key difference Hideki is likely to
observe between consumer markets and business-to-business
markets?
A) Businesses focus on developing wants and needs in
consumer markets, while firms work to satisfy the existing
needs of the B2B market.
B) Relationship marketing tends to be much more important in
consumer markets than in the businessto-business
markets.
C) Buyers in the business-to-business markets tend to be more
rational than buyers in consumer markets.
D) Business-to-business markets make greater use of marketing
intermediaries such as wholesalers and
retailers than do consumer markets.
19) The combination of all the factors that consumers evaluate
when deciding whether or not to buy a good or service is
called a:
A) total product offer.
B) product mix.
C) product differentiation.
D) product package.
20) Comet Computer Company is creating a new splash with
psychedelic laptop cover designs scheduled for release next
year. The computers do not reveal any other feature differences
from what Comet currently offers. This effort is an
example of using __________________ to differentiate a
product as new.
A) packaging
B) incremental coloring
C) incremental channeling
D) brand extension
21) Kathy works as a manager at Fantastic Fabricators. The

8. innovative staff at the company is regularly encouraged to
suggest ideas for new products. Since Cathy works in product
screening, she:
A) gives the final approval for the commercialization of new
products.
B) reduces the number of new products being worked on at any
one time.
C) market tests the product ideas that originate with the staff.
D) develops the concept testing to establish the personnel
required for each new project.
22) According to the product life cycle model, sales are
expected to peak in the _________ stage
.
A) introduction
B) maturity
C) growth
D) commercialization
23) Mark A. Teer believes he has found a surefire way to save
money. He advises his friends, "Buy direct from the
manufacturer. Any time intermediaries get involved, you'll pay
a higher price. After all, every intermediary involved in the
marketing process must charge enough to earn a profit." Mark's
advice:
A) is entirely correct. Intermediaries must charge a high enough
price for the activities they perform to earn a profit, so using
intermediaries must result in a higher price.
B) is impractical, because in most markets the distribution
process is so complex that it is impossible to determine who the
actual producer really is.
C) is not valid in many cases. Intermediaries do add costs to
products, but they also create value by
performing marketing functions efficiently. In many cases the
value they create more than offset the costs
they add.

9. D) is never true. Markets that make use of intermediaries can
always provide goods at lower cost than those
that rely on direct distribution.
24) Discount stores, supermarkets, and department stores are all
common types of:
A) multilevel marketers.
B) full-service wholesalers.
C) retail stores.
D) category killers.
25) Logistics is concerned:
A) with flows of materials, finished products, and information.
B) only with the flow of information, not the flow of materials
and products.
C) with the flow of materials to the manufacturer and with the
flow of finished products to the consumer, but not with the flow
of information.
D) only with the flow of finished goods from the producer to
the final consumer.
26) The traditional promotion mix for a firm consists of the
:
A) strategic mix of price, product, place and advertising.
B) Various types of advertising media the firm selects to reach
each specific target market.
C) marketing intermediaries employed by the firm to create a
supply value chain.
D) advertising, personal selling, public relations, and sales
promotion used to reach a target market.
27) A review of the personal selling process indicates that
selling is:
A) a matter of establishing relationships.
B) getting a name on a sales contract.
C) about 90 percent luck and 10 percent skill.

10. D) giving way to computers in responding to consumer needs.
28) The activity that evaluates public attitudes, changes policies
and procedures in response to the public's requests, and
executes a program of action and information to earn public
understanding and acceptance is called:
A) public research.
B) public relations.
C) public communication.
D) public advocacy.
29) Although accounting has several specific uses, the overall
purpose of accounting can be summarized as:
A) To provide financial information that is useful to decision
makers.
B) To meet the legal requirements of the Financial Accounting
Standards Board (FASB).
C) To allow the government to track business activity levels.
D) To compute the profit or loss and declared dividend of a
business firm.
30) The area of accounting that provides managers inside the
organization with information they need to make decisions is
called:
A) Tax accounting.
B) Managerial accounting.
C) Informational accounting.
D) Financial accounting.
31) The three important financial statements prepared by
accountants are:
A) Ledger, journal, and trial balance.
B) Cash budget, capital budget, and master budget.
C) Revenue summary, expense summary, and consolidation
statement.
D) Balance sheet, income statement, and statement of cash

11. flows.
32) ________ examine the data prepared by ________ and then
make recommendations to top management regarding
strategies for improving the firm.
A) Accountants; financial managers
B) Accountants; bankers
C) Financial managers; accountants
D) Financial managers; bankers
33) Which of the following shows a firm's spending plans on
fixed assets such as large equipment?
A) Capital budget
B) Operating budget
C) Cash budget
D) Surplus budget
34) Which of the following represents a capital expenditure?
A) issuing paychecks to workers
B) paying for advertising on a local radio station
C) purchasing raw materials to be used in the production of a
firm's product
D) purchasing a building to be used for office space
35) ________ is a form of short-term financing. Businesses buy
merchandise from their suppliers, but are not required to
pay for their purchases until some future date.
A) Secured credit
B) Trade credit
C) Revolving credit
D) Factoring
36) Which of these is a common source of long-term financing
for a corporation?

12. A) a revolving credit agreement
B) commercial paper
C) a bond issue
D) trade credit
37) Corporations benefit from securities markets primarily by:
A) creating an efficient mechanism to invest in stocks and
bonds.
B) obtaining the capital they need to finance their operations.
C) securing memberships on various stock exchanges.
D) participating in the mutual funds of investment bankers.
38) Using information not available to the public to unfairly
benefit in the stock market represents:
A) security fraud.
B) an unethical, but a legal activity.
C) blue-sky violations.
D) insider trading.
39) ___________ are the firm's after tax profits that are
distributed to stockholders.
A) Equity capital
B) Interest payments
C) Dividends
D) Retained earnings
40) Which of the following represents a disadvantage of issuing
bonds?
A) Bonds are permanent debt on the firm's balance sheet.
B) Dividends are legally required.
C) Bonds increase the firm's debt.
D) Bondholders receive voting rights.
41) Diversification means:
A) Allocating all your investment funds into one type of
investment.

13. B) buying investments on margin.
C) being knowledgeable about the various types of investment
opportunities.
D) allocating your investment funds to several types of
investments.
42) The term ________ refers to investors who anticipate
increases in stock prices.
A) bears
B) bulls
C) dogs
D) lions
43 ) Which of the following offers low risk, guaranteed income,
backed by the full faith and credit of the federal government?
A)Municipal bonds
B) U.S. government preferred stocks
C) Common stock in the U.S. postal service
D) U.S. government bonds
44) Which of the following describes a benefit enjoyed by
investors in mutual funds?
A) Guaranteed dividend payments are received annually.
B) Investment risk is eliminated.
C) Investors buy an ownership interest in many different
companies.
D) Investors exercise managerial authority in many different
companies.
45) Buying several different investment alternatives to spread
the risk helps an investor achieve:
A) lower rates of return.
B) lower commission fees.
C) isolation.
D) diversification.

14. 46) Which of the following is not a favorable characteristic of
money?
Barterability
Divisibility
Portability
Durability
47) __________ represents the most commonly used definition
of the money supply.
A) M-1
B) M-2
C) M-3
D) L
48) The Fed Chairman is in control of:
A) the world's money supply.
B) the U.S. money supply.
C) fiscal policy.
D) the IMF.
49)__________ are nonprofit, member-owned financial
cooperatives that offer a full variety of banking services such as
accepting deposits and making loans.
A) Mutual thrift associations
B) Credit unions
C) Commercial banks
D) Mutual fund companies
50) The purpose of creating the FDIC was to:
A) restore confidence in banking institutions.
B) serve as clearinghouses for transactions involving
commercial banks and savings and loans.
C) provide federally guaranteed insurance to small businesses at
low cost.
D) help the Federal Reserve enforce reserve requirements.