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(TCO 1) People who stand to gain or lose by the policies and activities of a business and whose concerns the

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(TCO 1) People who stand to gain or lose by the policies and activities of a business and whose concerns the

(TCO 1) People who stand to gain or lose by the policies and activities of a business and whose concerns the

business needs to address include which of the following? (Points : 5)


       Government employees

       Surrounding/competing businesses

       Foreign business leaders

       Domestic business leaders

Question 3.

3. (TCO 1) As a pharmacist in your community, you are concerned with the level of service provided to those in need at odd hours and after hours and in the neighborhoods where such extended service is needed. Your concerns are centered on which of the following? (Points : 5)

       Making products and counseling available when consumers need them

       Changing the buying behaviors of consumers

       Understanding the risks of some of the products offered for sale

       Doing whatever is necessary to provide credit through debit cards and credit cards

       Providing open and free-flowing communication to the consumers

Question 4.

4. (TCO 3) Which of the following is true about a small business? (Points : 5)

       A small business is one that employs between 500 to 1000 employees.

       A small business is usually funded by personal lines of credit and not through bank loans and microlenders.

       A small business is one that is not dominant in its field.

       A small firm usually curtails the freedom to innovate.

       A small firm avoids risks that larger firms are willing to take.

Question 5.

5. (TCO 1) Performing a SWOT analysis is part of the _____. (Points : 5)

       planning function

       organizing function

       leading function

       controlling function

Question 6.

6. (TCO 2) These are government policies aimed at shielding a country’s industries from foreign competition. (Points : 5)


       Free-market capitalism


       Import quotas

Question 7.

7. (TCO 3) One disadvantage of free trade is _____. (Points : 5)

       domestic companies can lose their comparative advantage

       uninterrupted flow of capital provides for lower interest rates

       workers will be given across-the-board pay increases

       a company’s productivity grows when it has an absolute advantage

       domestic workers can be trained for additional jobs

Question 8.

8. (TCO 3) Advantages of a Limited Liability Corporation (LLC) include all of the following EXCEPT (Points : 5)

       unrestricted member participation in management.

       pass-through taxation benefits of a partnership.

       advantages of limited liability.

       limited number of shareholders.

Question 9.

9. (TCO 2) What does the term CSR stand for in a corporate setting? (Points : 5)

       Corporate Social Reasoning

       Corporate Social Responsibility

       Corporate Social Reporting

       None of the Above

Question 10.

10. (TCO 3) Starting your own business (Points : 5)

       is an alternative to unemployment.

       is not risky.

       allows others to control your future.

       is not difficult and does not require sacrifice.

Question 11.

11. (TCO 4) Consumers have needs for living and wants, which are desires and to know them helps businesses to meet market demands. From the following list, identify which combination is just needs, or just wants. (Points : 5)

       Food and Big Mac

       Motorcycle and car

       Shelter and condo

       Water and Coca-Cola

Question 12.

12. (TCO 4) The rapid spread of brand communities has been one of the major impacts of social media. The Harley Davidson Owners Group is one example of an informal network of people with similar interests who use social media to bond and share information. Why are these brand communities effective? (Points : 5)

       The cost of consumer-oriented publications is too expensive.

       Consumers now trust their peers more than any source for product information.

       Consumers no longer trust salespeople.

       State and local consumer protection agencies no longer review products.

Question 13.

13. (TCO 4) Successfully distributing goods to customers involves low cost and customer satisfaction. Several steps must take place in order to reach this goal. Which step need NOT be considered in the physical distribution of goods? (Points : 5)

       Order processing

       Market segmentation

       Inventory control


Question 14.

14. (TCO 5) Which one of these listed below is NOT a classical motivation theory? (Points : 5)

       Maslow’s Hierarchy of Needs

       Herzberg’s Theories of Motivation

       Theory X and Theory Y

       Gibson’s Motivational Theories on Employees

Question 15.

15. (TCO 6) Production and operations management is best described by which of the following? (Points : 5)

       Overseeing all of the activities involved in producing goods and services

       Designing machines to do multiple tasks

       Tailoring products to meet the needs of a large number of customers

       Using technology and robotic units to assist with plant operations

       Short production runs and the machines being adjusted frequently

Question 16.

16. (TCO 7) An accounting system includes which one of the following? (Points : 5)

       Tax return information

       Regulatory information

       Summarization of accounts information

       Personnel information

       Eleemosynary information

Question 17.

17. (TCO 7) Imagine that you have just earned your business degree and have been hired as a hospital administrator at a small hospital that, like many others, is experiencing financial problems. A suggestion that you would make to help improve the financial position of the hospital and correct the financial problems is to (Points : 5)

       improve the efficiency of the hospital’s cash management system.

       use a carefully planned lawn care service.

       continue the hospital’s large stockpile of drugs.

       cease using a just-in-time inventory system.

       use a carelessly planned inventory control system.

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