The document consists of a quiz covering various topics in business organizations, including questions on management styles, economic theories, entrepreneurship, and case studies like those involving GM. It tests knowledge on business dynamics such as employee empowerment, franchising, and the impacts of corporate responsibility. Additionally, it references specific real-world cases to illustrate concepts, notably GM's performance and challenges in the auto industry, including recalls and sales figures.

1. Bus101 quiz (Business Organizations)
The due time is in 1hrs
1/ Both socialism and communism are variations of:
Select one:
a. command economies.
b. competitive economies.
c. free-market economies.
d. plutocratic systems.
2 / To be effective, empowerment will require lower-level
workers to :
Select one:
a. have more training.
b. accept less responsibility and lower wages.
c. receive less training.
d. have written policies regulating each aspect of their work.
3)
As a small business owner, Tanika can't afford to provide her
employees with the high wages and benefits offered by big
corporations. One way to retain her employees and create a high
level of motivation would be to:
Select one:
a. threaten to fire her existing employees and hire new workers.
b. adopt a policy of promoting the workers who have been
employed the longest.
c. empower her employees to develop their own ideas.
d. hire only family members, since they are more loyal.
4/
Anita is employed as plant manager for Mojo Industries,
Incorporated. Though she spends some time performing all
management functions, she is particularly concerned with
tactical planning and controlling. Anita's position would be
classified as part of Mojo's:
Select one:

2. a. top management.
b. lateral management.
c. supervisory management.
d. middle management.
5/
Which of the following policies would tend to foster
entrepreneurship?
Select one:
a. establishing a currency that is tradable on world markets.
b. establishing more regulations to protect the environment.
c. developing policies to reduce corruption between individuals.
d. allowing public ownership of businesses.
6)
All else held equal, socially responsible firms:
Select one:
a. are viewed more favorably by consumers.
b. enjoy significantly higher profits.
c. often experience customer loyalty problems.
d. fail to earn sufficient profits for their owners.
7) After personal savings, the next largest source of capital for
entrepreneurs is from:
Select one:
a. large multinational banks.
b. the Small Business Administration.
c. state and local governments.
d. friends and family.
8/
Patrick's Products has a manufacturing plant near Chicago. The
plant specializes in compact washers and dryers for countries in
which consumers have less living space. Patrick's Products
participates in the global market through:
Select one:
a. importing.
b. dumping.
c. exporting.

3. d. balancing trade.
9/
Managers who listen to their subordinates and allow them to
participate in decision-making are using the ____________
style of leadership.
Select one:
a. autocratic
b. free-rein
c. participative
d. bureaucratic
10/
Which of the following statements about partnerships is the
most accurate?
Select one:
a. A partnership is simply a corporation with fewer than 100
owners.
b. A major advantage of a partnership is that it offers owners
limited liability.
c. A major drawback of a partnership is that it is difficult to
terminate.
d. Partnerships are taxed at the lowest corporate tax rate.
11/ The legal case against Martha Stewart alleges that she:
Select one:
a. used illegal immigrant labor.
b. failed to establish a code of ethics for her firm.
c. sold illegal drugs to undercover government officials.
d. participated in insider trading.
12/ Which of the following is a reason South America is
relatively poor and there is less money available for
entrepreneurial ventures?
Select one:
a. There is a lack of freedom to start businesses available in the
South American economic systems.
b. The currencies of South America are not tradable on the
world market.
c. South Americans are not born entrepreneurs.

4. d. South Americans operate businesses in free markets.
13/Which of the following describes an environment in which
data is instantly available via the Internet to organizational
partners?
Select one:
a. networking
b. real time
c. virtual business
d. e-commerce
14/ Daggie's Sandwiches, Inc., sells the rights to use its name
and sell its sandwiches in a given market area to aspiring
business people who are willing to pay agreed upon fees and
meet certain contractual terms. Daggie's:
Select one:
a. is offering investors the opportunity to form limited
partnerships.
b. is a franchisor.
c. creates private subsidiary companies.
d. offers a tax-free investment potential.
15/ Ramon lives in Mexico City and is a Mexican citizen. He
has several friends in the United States who own shares in an S
corporation. Ramon would like to invest in this company.
Ramon:
Select one:
a. can invest in this company, but must pay both U.S. and
Mexican taxes.
b. cannot become a shareholder since he is not a citizen or
permanent resident of the U.S.
c. can become a shareholder but cannot become a manager, and
his income must be paid in pesos.
d. needs approval from the Mexican government before he can
invest.
16/ According to the boxed material entitled "Spotlight on
Small Business" in Chapter 4, which of the following is true?
Select one:
a. Small businesses are not able to participate in philanthropy.

5. b. Charities need cash, not equipment.
c. Many entrepreneurs have a hard time determining how to
start a charitable-giving program.
d. Nonprofit organizations focus on large contributions with
well established reputations.
17/ According to the boxed material entitled "Legal Briefcase,"
if a franchise opportunity sounds too good to be true, you:
Select one:
a. should act fast, because "the early bird catches the worm."
b. should investigate it carefully before making a commitment.
c. are probably being too skeptical, because franchising is the
safest way to start a business.
d. should try to become the franchisor rather than the
franchisee.
18/ ___________ studies the operation of a nation's economy as
a whole.
Select one:
a. Microeconomics
b. Socioeconomics
c. Econometrics
d. Macroeconomics
19/ Which of the following determines the degree of
decentralization a firm might use?
Select one:
a. the degree to which lower level management is empowered to
make decisions
b. the chain of command used to follow the flow of authority
from top of the hierarchy to the lowest levels
c. the geographical area served by the firm's operations
d. the degree of product standardization desired by the
marketplace
20/ Fourteen years ago, Murray noticed that a lot of people who
bought personal computers really did not know much about how
to use them and frequently suffered system crashes and other
aggravations. He decided he could earn a nice profit by starting
a consulting business to help other people overcome their

6. computer woes. Although the business struggled at first, it has
been quite successful for the last five years. Murray has many
satisfied customers, and the business has grown to the point he
now employs several workers. Murray's experience is an
example of:
Select one:
a. socialism at work.
b. the principle of comparative advantage.
c. the invisible hand.
d. the multiplier principle.
21/ Continental Foods is looking at a possibility of agreeing to
a conglomerate merger. A likely reason Continental may be
looking at this type of merger is a desire to:
Select one:
a. expand its market share.
b. develop spin-off companies.
c. diversify its operations.
d. meet the requirements to convert to a limited liability
company.
22/ Which of the following is a hurdle to be overcome in the
global marketplace?
Select one:
a. lack of cultural understanding
b. lack of people with the desire and ability to buy your product
c. lack of global natural resources
d. lack of market opportunities
23/ ________ provides information to businesses concerning
where people live, what they buy, and how they spend their
time.
Select one:
a. Sociography
b. Econometrics
c. Demography
d. Anthropology
24/ Monique's Unique Tile Boutique offers decorative tile from
around the world. The owner regularly travels overseas to locate

7. the best and most unusual tile that foreign producers have to
offer. Monique practices:
Select one:
a. importing.
b. licensing.
c. dumping.
d. exporting.
25/ A business incurs a ___________ if its costs and expenses
exceed its revenues.
Select one:
a. loss
b. liability
c. debit
d. dividendKaren Jobs is a supervisor who deals directly with a
group of production line workers. She spends several hours each
week developing specific work assignments and production
schedules for the coming week so that the production
department can meet its short-term production objectives. This
suggests that a significant component of Karen's job involves:
Select one:
a. strategic planning.
b. contingency planning.
c. tactical planning.
d. operational planning.
26/
1
GM and the U.S. auto industry’s performance
GM and the U.S. auto industry’s performance
NAME
COURSE

8. INSTRUCTOR
DATE
It seems since GM’s bailout, their track record has been
anything short than un-trustworthy. After some careful
researching, I have discovered what seems to be an all-time
high recall record for this company. In this paper I will discuss
the issues that they’ve had, and what was done in reference to
these dilemmas.
Granted, in the positive aspect of things, GM has made
exceptional sales with their latest vehicles. GM is expected to
challenge the status quo in the emerging mid-size class truck
market with its 2014 Canyon (247 wallstreet, 2014). Although
the sales of their latest vehicles have been on a steady incline,
it’s nothing compared to Toyota’s Camry’s, as 247 wallstreet
(2014) states: “Which remains America’s best-selling car, says
it produced a record 1.86 million vehicles in North America last
year – a five percent increase from 2012”.
Now let’s focus on some of the downfalls GM has had
recently. In the end of 2013 (between Jan. 29 and Oct. 28),
Silverado and Sierra trucks that were built seemed to have a
glitch of their electrical system. This glitch was triggered by the
use of the steering wheel controls. The effect of this scenario
was the fact that the person driving the vehicle would/could
lose any of the external device data (music, mp3s, etc) that was
being played via the USB port. Although this seems
insignificant, “General Motors is seeking federal regulators'
permission to not recall more than 200,000 new Chevrolet
Silverado and GMC Sierra pickups because of an electronic
defect that can be triggered by using the steering wheel
controls” (Automotive News, 2014). GM has decided to fight
this by saying it only happens if the driver uses the steering
wheel in a specific way.
In other news, GM also had to recall more than 588,000
vehicles due to ignition switches that would shut off by
themselves and cause crashes. This issue has been linked to 31

9. crashes and 13 front-seat deaths (Autonews, 2014). Once the
engine cuts out in a situation like this, the front air bags will
not deploy. After the recall, GM stated that they would replace
the faulty switches for their customers.
In conclusion, although GM has had its ups and downs
since their major bail-out, their sales seem to be having a steady
incline. With any recalls or issues with their vehicles, they are
quick to respond and attempt correcting the problem in a timely
manner. On a personal level, I feel that their sales will continue
to do okay as long as they don’t continue to produce vehicles
that are unsafe for the public.
References
Automotive News. (2014). GM expands ignition switch recall
by more than 588,000 vehicles.
Retrieved from: http://www.autonews.com
Automotive News. (2014). GM tells NHTSA Silverado, Sierra
glitch 'inconsequential'. Retrieved
from: http://www.autonews.com
McIntyre, Douglas. (2014). 2014 U.S. Car Industry Forecast.
Retrieved from:
http://247wallst.com