Chapter l Forms of Business Organization Multiple Choice
1．All of the following are considered disadvantages of sole proprietorships except：
a) the owner has unlimited liability b) limited skills c) simple to establish d) limited funds
2．In (an)_________partnership, all of the partners have unlimited liability， a) unlimited b) unrestricted c) general d) nominal 3．A_________ is a business that has one owner．
a) sole proprietorship b) partnership c) corporation d) limited partnership
4．Which of the following is the advantage of a sole proprietorship? a) unlimited liability b) complete control c) limited skills d) limited funds
5．The board of directors of a corporation is elected by its
a) workers b) labor union c) stockholders d) creditors 6 Jim has an idea for a new business．He wants to get started as soon as possible with a minimum amount of expense．He also wants to be his own boss，and wants to keep all of the profits he expects to earn for himself. These goals suggest that Jim would favor setting up his firm as a：__. a) public corporation b) sole proprietorship c) limited liability company d) general partnership
7．The responsibility of appointing the president and other key officers of a corporation belongs to the corporation?s:
a) employees b) labor union c) board of directors d) creditors 8 Stockholders of a corporation pay personal income taxes on the _____ they receive when the corporation distributes some of its eanings.
a) interest b) dividends c) revenue d) retained eamings
9. A major advantage of franchise arrangements is that they：
a) are very inexpensive to set up b) a11ow thefranchisee to keep all of the profit
c) give the franchisee total control over how the business is run d) offer the franchisee a proven management style Fill in Blanks：
1．The advantages of sole propnetorships are many fold．They are_______________________, _________________ easy to keep operational and financial secrecy, _________ and exclusive use of profits. 2．Besides advantages，sole proprietorships have some disadvantages，such as_________________, limited access to capital, _________________ and unshared loss．
3．People who take part in the management of thefirm and therefore take unlimited 1iability are regarded as_______________________.
4．The major disadvantages of a partnership are unlimited
liability__________________________________________.
，_________________ and
5．A________________ is treated like a private person under the law．It can receive，own and transfer property，enter into contracts．sue and be sued．A corporation is a______________.
6．_____________ are owners of the business,because they hold shares which represent the ownership of the company.
7．Each corporation must pay a fee to get a license which is also called_____________________.
8．People tend to set up a corporation because it is easy to_________, has______ liability, seperated ownership and management and so on． 9．Franchising
is
a
licensing
agreement
by
which
a
business_________allows___________to sell and use its product, service or method in retum for a royalty from the latter．
10．Proven management style and name recognition are advantages of a special form of a business called______． True/False
1．An advantage of a parttnership over a sole proprietorship is that more than one owner can contribute funds to the firm．
2．A sole proprietorship is the form of business ownership best suited to raising large amounts of funds．
3．When stockholders of a corporation sell their stocks for more than they
paid for the stocks，the difference is the stockholders’dividend． 4．Sharing profits and less contro1of the business ownership are two common disadvantages of franchising．
5．When entrepreneurs establish a business，they must first decide on the form of business ownership．
6．People become owners of a corporation by purchasing its stock． 7．Owners of a corporation can earn a return on their investment either by receiving dividends or by selling the stock． Chapter 2 Marketing Multiple Choices：
1．——is one of the functions of marketing．
A Marketing research B Sole proprietorship C Compact replica D Chronic shortage
2. The following are considered to be the functions of marketing except： A．essence of marketing B．storage C．acquiring D. transportation
3. The marketing mix contains the following except：
A．channels ofdistribution B．promotion C．place D．utility 4. The 4Ps stands for：
A．Product，Price，Psychographic，Place B． Product—use variables，Price．Promotion．Place
C．Product , Price，Promotion，Place D．Product，Problem of
Continuity，Promotion，Place
5. When identifying market segments，marketers 1ook at some variables，the most common being:
A. geographic Variables，demographic Variables，psychographic Variables．pricing Variables
B．geographic Variables，demographic Variables．psychographic Variables．Product-use Variables．
C. risk taking Variables．geographic Variables，product—use variables．grading Variables
D．distributing Variables，placing Variables．demographic Variables．psychographic Variables
6. The process of accumulating and analyzing market data in order to make better decisions is called：
A．market segmentation B．target marketing C．marketing mix strategies D．marketing—research
7. A group of individuals with similar traits will may purchase particular products is a：
A．common market segments B. product market C. target market D．consumer market mix Fill in Blanks：
1. ______________ represents a group of people who have similar needs and wants and are believed to have interest in the same products．
2. ____________ means collecting and analyzing data to identify a market and to answer questions of the number and the location of potential customers and so on·
3．Dividing a market into segments according to customers’needs，wants and interest is called__________. 4．Markets
may
be
segmented
based
on______________,
_________________, _______________，and ___________ variables． 5. The marketers must develop a comprehensive plan covering the following major areas such as__________, price, _______ and channels of distribution，four of which are usually called the marketing mix． 6. Marketing functions can be grouped into_____ functions (buying and selling), _____________functions (transportation and storage)，and facilitation functions(standardization and financing) True/False
1．In order to make more profits，marketers should try to zero in on al l the segments of market to satisfy al l the needs and wants of a11 people． 2．The Chinese managers realized that the key to a lasting success，in a market economy，lies in either production or selling．
3．The concept of finding the needs of the consumers and satisfying them is the essence of marketing．
4．In practice，marketing functions can be grouped into exchange functions like buying and selling.
5. Marketing functions can be grouped into distribution functions like standardization，financing and risk taking. Chapter 3 Product and Pricing Multiple Choice
1．Products that are widely available to consumers，purchased frequently，and easily accessible are：
a) shopping products．b) specialty products．c) convenience products．d) commodity products．
2．All of the following are phases in the product 1ife cycle except： a) promotion b) introduction． c) decline d) maturity． 3．When consumers compare the quality，and prices of competing goods before making the purchase decision，the goods are considered to be： a) shopping products b)specialty products c)convenience products d)product 1ine commodities．
4. The phase in the product life cycle in which sales are at their highest level is the：
a) maturity phase． b ) introduction phase． c) growth phase． d) decline phase．
5．Milk，newspapers．soda．and chewing gum are examples
a) shopping products．b)specialty products．c) convenience products． d)commodity products．
6．Sales of the product of_______ during the growth phase of the product
life cycle．
a)decrease rapidly b)remain unchanged c) increase rapidly d) decrease slowly
7．In satisfying the consumer, the ultimate goal is to develop a product that is
a) higher priced b) copyrighted c) patented d) superior to others．
8．Which of the following are goods that consumers would make an extra effort to purchase?
a) shopping products b)specialty products c) convenience products d) product mix commodities
9．Which of the following is most likely to be a convenience good? a)a Mercedes sports utility vehicle b)a new Haire washing machine
c)a gallon of milk d)a pair of Nike basketball shoes 10．The first step in creating a new product is to develop a(n)
a) production plan b) market test c) idea d)screening
l1．Which of the following describes a pricing strategy where firms charge a high initial price assuming there is no competitive product in the market a) price skimming b) penetration pricing c)loss—leader pricing d)odd pricing
12. In setting objectives of pricing，firms should have adopt an optimized approach．The pricing objectives should be except——．
a)profit-oriented b)sales-oriented c) follow-the-leader d) product-oriented Fill in blanks：
1. Products generally fall into two categories：_____________________ and _________________.
2. Consumer products can be classified into some subcategories．They are_____________, ______________ and ______________.
3. New product development involves the following stages：___________,screenmg,__________ testing and______________. 4.________ is a strategy that a new product is priced low to attract customers and penetrate the market quickly．
5. Odd pricing strategy is also called___________,which makes prices appear more acceptable to customers．
6. In order to attract customers，a store can offer a few items which are priced at or under cost．Such a strategy is called____________.
7. ____________ can simplify buyers’purchase decisions and speed up stock turnover．In this way, stores usually group their goods into classes and reduce the number of prices．
8. ______________are items that are used by companies for production purposes or further assmbly．
9. ____________ is a tool used to make decisions whether or not to launch a new product．
10. Products like milk newspapers，soda and chewing gum which can be bought conveniently are called______________.
11. In the phase of ________________during a product life cycle，sales volume is a peak and begins to decline．
12. __________ are considered by specific consumers to be special，meaning consumers would make an effort to purchase them．
13. ProductS such as plastic and steel are examples of proucts for___________markets．
14. The_________is the typical set of phases that products experience over their life． True/False
1. Firms regularly consider the prices of competitiors when determining the prices of their own products.
2. A Roles watch and a Jaguar automobole are considered specialty products.
3. Cameras, clothes, and hosehold items are examples of products that exist in industrial market.
4. Firms that spend money on research and development expect the benefits received to exceed the expenses incurred.
5. Managers typically attempt to set a price that will maximize a firm?s
value.
exoenses lncurrea．
Chapter 4 Channels of Distribution Multiple Choice：
1．The _________ is the path a product takes from the producer the customer.
a) marketing mix b) retail corridor c)distribution channel d)chain of distribution；tt,tches buyers and sellers without becoming an 2. A(n) _____________is a marketing intermediary that matches buyers and sellers without becoming an owner of the goods involved·
a). retailer b). wholesaler c).agent d). exchange router
3.____________are marketing intermediaries that distribute the products directly to customers?
a) retailer b) wholesalers． c) rack jobbers· d) privateers 4. A decision that determines the manner by which a firm?s products are made accessible to its customers is called a(n)：
a). promotional decision·b)advertising decision· c)distribution decision· d)exchange decisionn·
5．When manufacturers deals directly with their customers without using marketing intermediaries, they are a
a)direct channel· b)one-level channel c)two-level channel d)three-level channel
6．An advantage of a direct channel is that the producer can：
a) eliminate some employees. b) avoid making sales on credit
c) focus mainly on production, without having to worry about product promotion
d) have full control over the price of its products. 7．Mail-order clothing firm is an example of
a)direct channel b)one-level channel c)two-level channel d)three-level channel
8. Wholesalers use their sales expertise when selling products to
a)producers b)retailers c)employees d)managers 9．A one-level channel of distribution involves the use of one a)distribution center b) marketing intermediary c) warehouse． d) mode of transportation．
10. ________________ are a popular mode of transportation for goods because they can reach a variety of locations quickly and can make several stops in a local area·
a) Trucks b) Railroad carriers c) Airlines d) Pipeline
l 1．A__________ is an intermediary that purchases products from a
manufacturer and sells them to a retailer.
a) retailer b) manufacturer?s agent c) chain distributor d) wholesaler
12．The optimal channel of distribution is dependent on：
a)the recent performance of the firm b)product characteristics c)advertising d)promotion
l 3．The modes of transportation can include the following except： a)rail b)pipeline c)water d)retailer Fill in Blanks：
1. A payment is made to someone for providing a service or goods．Such a payment is called____________ which is usually a percentage of the total value of the service or goods·
2.The movement of goods to the places where they can be sold is cal led______________.
3.__________________ are routes through which goods are moved from producers to end-users．
4. ____________ purchase goods and then sell them to buyers for resale. 5. ____________ are those who sell merchandise directly to the ultimate consumer．
6. A _______________ or a(n) is a person or an organization that buys goods from the producer and sells them to the customer for a profit． 7.The value of middleman can be time utility, ___________, ownership
utility,_____________________, and _____________________. 8.
Modes
of
transportation
can
include____________,
truck,
______________water and__________
9．Once goods are produced，most of them do not go to the end users directly．Rather they are distributed to the buyers through various channels such as______________ and _______________.
10. Marketing intermediaries, called_______________, match buyers and sellers of products without becoming the owner．
11．Some products have__________________ channels, where two middlemen participate. True/False
1．Railroads are often cheaper than trucks for transporting goods over long distances．
2．Wholesalers may maintain sufficient inventory so that retailers can order small amounts on a frequent basis．
3．The first step in developing a system for distributing products is the selection of the proper form of transportation．
4．When manufacturers sell to customers without using marketing intermediaries，they are using a one-level channel of distribution． 5．One thing that distinguishes agents as they match buyers and sellers of products，is that agents become owners of the products．
6．When the wholesaler purchases the products from the manufacturer and
sells them to retailers on credit, the retailer normally bears the credit risk． Chapter 5 Promotion Multiple Choice
1．Which of the following terms describes the combination of promotion methods that a firm uses to increase the acceptance of its products? a) public relations b) advertising media c) promotional life cycle d) promotion mix
2．All of the following are methods of promotion except：
a) personal selling．b) sales promotion．c) marketing．d) public relations．
3. Effective promotion should：
a ) decrease the need for advertising and personal salespeople． b) increase demand for the product and the value of the firm． c) increase sales volume and decrease production costs，．
d) maximize the number of employees involved in the marketing effort．
4. Which of the following methods of advertising sends catalogs to the homes of potential consumers?
a) telemarketing b) computer online services c) specialty ads d) direct mail
5．To close a sale while the product?s advantages are still in the minds of potential customers, salespeople may offer：
a) incentives to purchase．b) advertising literature． c) publicity on the product． d) personal advice．
6．A11 of the following are steps involved in personal selling except： a) identify the target market． b) contact potential customers．
c) conduct production quality control d) answer customer questions． 7. To create or maintain a favorable public image, firms will use:： a) personal salespeople． b) public legal services． c) public relations． d) industry standards． 8．The promotion mix for a firm includes the following except for
a) target marketing b) personal selling c) sales promotion d) public relations
9 Which of the following describes a non-personal sales presentation intended to influence a large number of consumers?
a) publicity b)production c) public relations d) advertising
l 0. Al l of the following are advertising media except：
a) newspapers． b) magazines． c) radio． d) telemarketing．
1 1．All of the following are means of advertising except：
a) telemarketing．b) government publications．c) Internet． d) outdoor ads
l 2．A technique that uses a personal presentation to influence a consumer’s demand for a product is：
a)target market identification． b)personal selling． c) personal website promotion． d)personal display promotion． 13. When a salesperson demonstrates the use of products and tell buyers about the advantages，the salesperson is：
a) making a sales present b) answering questions． c) identifying the target market． d) closing the sale．
1 4．When Seabee Boat company gives a free fishing rod to any buyer purchasing a new boat, the company is offering a(n)：
a) sample． b) promotion． c) premium d) loss leader l 5．A brief written announcement about a firm provided by that firm to the media is called a(n)：
a) advertisement． b) sales promotion． c) special event marketing．d) new release． True／False
1. Public relations are the actions taken by a firm with the goal of creating a favorable public image．
2. Advertising a restaurant on the side of a bus is an example of transportation ads．
3. If a firm?s product is properly produced，priced，and distributed，it does
not need to be promoted·
4. If a firm's target market is made of a wide variety of customers throughout a specific region，it would likely use advertising to promote its product．
5. The most effective type of advertising is newspaper advertising． Fill in Blanks
1．The combination of the promotional tools is called the_______________ 2．There are two types of advertising：____________ advertising and _______advertising．The former focuses on individual products while the latter is used to create a positive image for an organization.
3. ___________ provides the most direct way for firms to help prospective customers satisfy their needs and wants through face-to-face communication with the firms? sales representatives.
4. ____________is the first step involved in personal selling in order to find out prospective customers who are mostly to buy the promoted products or service．
5. Do further research to determine which prospects have the authority and the financial capacity to buy is a step taken in personal selling, which is called ___________.
6. The combination of the promotional tools is called the promotion mix which includes___________, sales promotion．public relations，publicity．and word of mouth.
7. Personal selling provides face-to-face communication with prospective customers．The selling process can be broken into 7 steps such as _________, quality, approach, make presentation，handle objections, ____________ and follow up．
8. _____________ is a personal sales presentation used to influence one or more consumers·
9. ______________ is a form of advertising that provides visual effects and can be used to promote products nation wide．
10. Firms usually create or maintain their positive public images by the tool called_____________. Chapter 6 Management Multiple Choice
1．All ofthe following are managerial functions except： a) planning b) organizing c) controlling d)· financing． 2. The function of management that represents the preparation of the firm for future business conditions is：
a)organizing． b)leading． c) controlling． d)planning． 3. Jim has just been promoted to a management position for the First National Bank. His boss has asked him to focus on identifying problems in the operations of the bank and to take steps to correct them. Jim?s activities illustrate the _________of management.
a) planning b) organizing c) learning d) controlling
4．Which of the following management functions involves the monitoring and evaluation of the activities of employees?
a) planning b) organizing c) learning d) controlling 5．Which of the following is not one of the managerial skills?
a) technical skills b) mission skills c) conceptual skills d)human skills 6．Managers utilize——to understand the relationships between the various tasks of a firm.
a) conceptual skills b) technical skills c) communication skills d) interpersonal skills 。
7. ___________ skills are used more frequently by first-line managers than by top-level managers.
a) Decision-making b) Conceptual c) Interpersonal d)Technical ~ate with customers and employees?
8. Which of the following refers to the managerial skills required to communicate with customers and employees?
a) conceptual skills d) human skills c) technical skills d) decision-making skills
9. Managers need _________ skills to understand the types of tasks that they manage·
a) conceptual skills b) interpersonal skills c) decision-making skills d) technical skills
10．The___of a firm identifies responsibilities for each position and the
relationships among positions within the firm．
a) mission statement b) tactical plan c) contingency plan d) organizational structure
11．The number of subordinates(employees)managed by each manager represents the：
a) span of control b) degree of specialization． c) division of labor d) uniq of command．
12．An organizational structure that includes line positions and staff positions and assigns authority from high level management down to subordinates is referred to as a(n):
a) line organization． b) line-and-staff organization． c) matrix organization． d) intrapreneurial organization． 13．The_____is an informal communications network within an organization that develops as the result of employee interaction over time． a) grapevine b) organizational matrix c) employee-centered networkd) organizational hierarchy
14．The Tippist Company is a small firrn that produces only a few products．It has departmentalized its structure by organizing workers according to the tasks they peform and the responsibilities they have. For example，a11 employees involved in marketing are included in the same department. This strategy is an example of departmentalizing by： a) function． b) product c) customer d) process
15．A tall organizational structure reflects：
a) many layers b) one owner c) one manager d) numerous stockholders
16．A company has many sources of managers，such as the following except：
a) job specialization ) within the company c) colleges and universities d) other organizations
17．A company can be departmentalized by：
a) linle and staff authority b) authority and responsibility
c) function, product, location and customer d)minimum hierarehical leveIs
l8. SWOT analysis involves the process to examine the firm’s mission in order to establ ish strategic goals as well as scan the environinent for opportunities and threats．So S WOT stands for： a) strategicgoals，work,organization,threats b)strengthS，weaknesses，organization, technique c)strengths weaknesses,opportunities，threats
d)strategic goals, work,opportunities，threats
19. Organizations with many levels are usually called____, while organizatioas with just a few levels are often referredto as ______．
a)hierarchical levels, span levels
b)tall organizations，fIat organizations c) functionaI organizations, short organizations d)organizational structure，hierarchical levels
20．There are four types of planning, which can bereferred to as the following except：
a) strategic planning b)contingency planning c)operational planning d)controlling planning True/False
1．The controlling function represents the organization of employee and other resources in a manner that is consistent with the firm?sgoals． 2. An organizational structure indicated how all l the job responsibilities fit together．
3. Conceptual skillS are only needed by the assembly-line employees, who are directly involved in the production of employees．
4．Plannling invoIves deciding what tasks are to be done．how the tasks are to be grouped, who is to do which task, who reports to who and so on． 5. Controlling is the function or process in which the management gathers information, compares actual performance with expected results，and takes necessary measures to correct significant deviations． Fill in Blanks：
1．All managers should possess at least three types of skil1s．They are________, _________ and________________．
2. ___________ is one in which all authority flows in a direct chain of command from the top of the organization to the bottom．
3. In a___________，authority still flows a1ong a direct chain of command through line departments and everyone still reports to only one boss, but the line managers can now focus on regular responsibilities and rely on staff departments for professional advice on specialized matters． 4．___________means the number of subordinates a manager supervises．If a manager supervises only two or three people，it is called_________.On the other hand，if a manager handles too many subordinates，it is called_____________.
5. __________ represents the interaction among various parts of the firm to focus on specific projects．
6. In order to achieve the goals of a business organization，the management has to play four basic functions．They are________________,organizing, __________ and controlling．
7．Positions that are established to make decisions to achieve specific business goals are__________positions；positions that are established to support and give advice on the decisions made to achie?ve specific business goals are ___________ positions．
8. Departmentalization means assigning tasks and responsibilities to different departments by____________ by location，by ___________-and by customer．
Chapter 7 Human Resource Management
1.___________ is the act of planning to satisfy a firm's need for employees．
a) Collective bargaining b) Human resource planning c) Job analysis d) Empowerment
2. The purpose of _________ is to determine the tasks and the necessary credentials for a particular position．
a) job analysis b) job descriptions c) job evaluations d) job specifications，
3．The information obtained from a job analysis allows the supervisor of the position to develop：
a) performance appraisals． b) labor contracts． c)job specificatiom and job descriptions． d)quality control standards．
4．The credentials necessary to qualify for a job position are stated in a: a) job description． b) resume c) job specification．d) job analysis
5．The tasks and responsibilities of the job position are stated in a： a) job analysis． b) job classification．c) job evaluation． d) job description．
6．An effort to fill open positions with persons who are already employed by the firm is called：
a) outplacement b) internal recruiting c) job enrichment d) intrapreneurship．
7．An effort to fill positions with applicants outside the firm is called： a) alternative recruiting b) external recruiting
c) internal recruiting d) opportunistic recruiting
8．The firm's______ is the total monetary payments and benefits it offers to employees．
a) performance incentive b) compensation package c) salary d)annual premium
9．All of the following are common types of employee compensation except：
a) profit sharing． b) bonuses． c) dues． d) commissions．
1O．A(n)____ can help identify an employee’s strengths and weaknesses and may influence the
employee’s chances of being promoted within the firm．
a) job analysis b) job description c) job specification d) perfonnance evaluation
11．P1anning for human resources should involve __． a)job analysis，job description，forecasting b)job analysis，job specification，recruiting
c)human resources planning，job analysis，forecasting
d)job analysis，forecasting of the need for human resources and recruiting
12.Job analysis is used to detemine the number and qualification of employees for a particular position．
a)job description．job specification b)job satisfaction，job instruction
c)job position，job insurance d)job objective，job chance
13．Recruiting includes hiring from outside or within．In other words，hiring from outside can be called____and hiring from within can be called____．
a) educational institutions，employment agencies b) job advertisement，business rivals c) closed promotion system，open promotion d) extemal reeruiting．Internal recruitin2
14. The selection process of the recruiting firm can invo1ve the following steps except：
a) reading job applications and resumes b) holding screening Interviews
c) providing personal references d) holding a formal interview
15. When the employees are hired，it is important to train and develop them
until they are qualified for the iobs．The methods can include the fo1lowing except：
a) orientation b) on-the-job method c) off-the-job method d) performance appraisal
1 6．Skills that are used to train the employees include all of the following except：
a) human relation skills b) technical skills c) customer service skills d) managerial skills
17. Performance appraisal involves infomal appraisal and formal written appraisal．The formal writtten appraisal includes all of the following except：
a) rating scale b) employee comparison c) formal review d) critical-event essay
18. Performance appraisal not only supply information for decision-making on issues like rewards, salary or wage raies, promotion, but also_____ and _________.
a) demotion，dismissal b) benefits，time wage c) bonus scheme，incentive programs d) paid vision care True Or False：
1. The job specification states the tasks and responsibilities of the job． ．
2. A job analysis enables the supervisor of a posinon to develop both a job
description and a iob specification
3．One task of human resource planning is recruiting．
4. When forecasting employee needs，employee retirement can be forecasted with some degree of accuracy．
5. Wages and salaries are the monetary form of compensation given to afirm?s employees for their contributions．
6. Whell a firm sets its wage and salary schedules, wage and salary should not be competitive in the industry so as to keep employees from quitting and working forrivals．
7. Incentive programs of all sorts have been adopted to link normal performance with additional income or rewards．
8. Like wages，salaries and incentive programs, fringe benefits are directly related with work performed．
9．Cafeteria benefits is a flexible arrangement in which each employee is allocated a certain sum to cover benefits of hiS or her own choice． 10. Closed promotion system refers to the system in which the managers are kept out and the hiring decisions are made solely by the employees. Fill in Blanks：
l. External recruiting means recruiting from outside, which refers to __________, employment agencies, __________ and business rivals.
2. Internal recruiting in a company often adopts_____________ and
____________ to choose proper employees for particular job positions． 3．A____________ plan can stipulate the reduction of the firm's overhead costs and the gain resulting from it will be shared as bonus by all employees．
4．A_____________ will give all employees a bonus if the firm?s profits exceed a present amount
5．___________ involves planning for human resources, training, and developing employees and compensating employees.
6．A effort to fill positions with applicants outside the firm is called ________ recruiting while an effort to fill positions with applicants inside the firm is called ___________ recruiting.
7．____________ is the act of planning t0 satisfy a firm's needs for employees．
8．A ____________ can help identify an employee’s strengths and weaknesses and way influence the employee's chances of being promoted within the firm．
Chapter 8 Motivating Employees Multiple Choice
l. Basic survival needs，such as food and shelter，are examples of all individuals：
a) self-esteem needs． b) physiological needs．
c) self-actualization needs． d) safety needs．
2．Accorrding to the Herzberg study，managers can motivate employees to be more productive by：
a) increasing their responsibilities． b) increasing their salaries．
c) providing a safe work environment． d) creating job security．
3·Douglas McGregor stated that Theory X managers assume： a) work is as natural as play．
b) employees desire to take on increased responsibilities． c) employees want safe working conditions． d) employees dislike work
4．Supervisors who believe in Theory Y would：
a) use negative reinforcement to motivate employees． b) Increase the use of centralized management． c) delegate more authority to employees．
d) develop exact procedures for each work assignment． 5. The management style that empowers employees to be involved in the decisions made by their supervisors a) management by objectives． b) participative management．
c) Theory Z management． d) Theory X management．
6·A form of mamagement that allows employees to set their own goals and determine the manner in which they achieve those goals is：
a) the equity theory of motivation． b) management by objectives．
c) Theory X d) Theory Z 7·In the late l950s，a study by Frederick Herzberg surveyed two hundred accountants and engineers about：
a) job satisfaction b) downsizing c)Theory X mamagement d) Expcctancy theory
8·According to Maslow，once an individual has reached his／her full potential，__ is achieved.
a) selfesteem b) social fulfillment c) self-actualization d) job security
9·According to Maslow's hierarchy of needs theory, once physiological needs are satisfied, an employee’s next needs wouId be for job security and proper working conditions．This second level of needs is referred to as： a) physiologicaI needs． b) social needs． c) safety needs． d) self-esteem needs．
10.According to a study by Frederick Herberg，employees become dissatisfied when___ are perceived as inadequate：
a) the firm?s earnings b) hygiene factors c) their expectationsd) motivational factors
11．The management style that delegates the most authority to the subordinates is the： a)free-rein
style．b)
democratic
style．c)authoritative
style．d)participative style．
1 2．The management style where the leaders accept some input from subordinates，but still use their authority to make decesion is： a) participative． B)free-rein． C) \．” D) authoritative．
13. By ___employees to properly peform the tasks they are assigned，management can maximize the firm’s value．
a) threatening b) manipulating c) motivating d) harassing
l 4·According to Maslow’s hierarchy of needs, people who desire to be part of a group are trying to satisfy their：
a) safety needs b) physiological needs．c) self-esteem needs．d) social needs．
1 5·A program designed to give employees more responsibility by expanding the jobs assigned to each employee is called：。
a) job rotation．b) performance evaluation．c) job sharing．d) job enlargement．
1 6·A method of increasing job satisfaction by allowing two or more employees to share the schedule and responsibilities of one job position within a firm is：
a) job rotation． b) job sharing． c) job enrichment． d) job enlargement．
1 7．Chinesc have long regarded all the following items as important factors for success except：
a) appropriate timing b) efficiency c) favorable locality d) human unity 18．Frederick Herzberg and his associates put forward a theory called the two-factor theory which refer to
a) hygienic and motivating factors b)self-actualization c) physiological factors d)social factors
l 9．Hygienic factors refer to all the following factors except：
a) money b) security c) working conditions d) responsibilities
20．Motivating factors refer to all the following factors except：
a) recognition b) achievement c. promotion d. supervision True or False
1．According to Frederick Herzberg, better-than-adequate work conditions and salary always lead to a high degree of job satisfaction．
2．The free-rein leadership style is more appropriate than the autocratic
style if employees are highly independent，creative and motivated． 3．When employees have little or no input in decision making，managers use an Autocratic leadership style．
4．Theory X managers believe that people accept and seek responsibility and that work is as natural as play or rest to average people.
5．Theory Y managers believe that people are born lazy and irresponsible．and managers should use close control pressure and even threats to make them work properly．
6．Theory Z incorporates many features of the Japaneese approach but is consistent with American values in other aspects．
7．Behavior that is rewarded tends to be terminated while behavior that is punished tends to be repeated．
8．In order to motivate employees，more flexibility in work schedules are provided in some companies．Such programs are job rotation，job enlargement．job enrichment and job redesign．
9．Various techniques have been invented to make the jobs more satisfying and motivating．The most popular of such techniques are job rotation，job enlargement, job enrichment and job redesign．
10．Boss-centered type of leadership is more likely to succeed when the job is complicated, the subordinates are new and inexperienced and the time is limited．
Chapter 9 Organization Culture
Chapter 10 Business Law Multiple Choice：
1．According to its attributes，property can be classified into three types．They are the following except for：
a ) tangible real property b) tangible personal property c) intangible personal property d) inventory
2．The following are regarded as intellectual properties protected by laws except for：
a) trademark b) copyright c)patent d) stock
3．——is developed to keep the order of a society and protect the interests of its members．
a) contract b) management c) insurance d) law 4．According to their origins，law can be classified into three types．They are——．
a) contract law, common law and regulatory 1aw b) common law, statutory law and regulatory law c) tort law, contract law and common law d) tort law, property law and statutory law
5．Law made by judges is called——and often referred to as unwritten law．
a) regulatory law b) common law c) statutory law d) all
of the above
6．Law established by legislative bodies is _ and often referred to as written law．
a) regulatory law b) common law c) statutory law d) all of the above
7．Law created by decree of government agencies is——and also called administrative law．
a) regulatory law b) common law c) statutory law d) all of the above
8．Lawful purpose，competency of parties，voluntary agreement，consideration and proper form are five elements that must be contained in ________.
a) a contract b) a warranty c) a title to a property d)an endorsement
9. _________ means that the parties to the contract must exchange items of value．
a) lawful purpose b)consideration c)voluntary agreement d)competency of parties
10．A surgeon who forgot to take out a surgical forceps from a patient's belly after a stomach operation is said to have committed a
a) intentional tort b )negligence tort c) liability tort d) product tort
11．A seed company sold farmers corn seeds which the company knew were of low quality and caused losses to the farmers，the farmers could sue the company for—
a) intentional tort b ) negligence tort c) liability tort d) product tort
12.Beel bottle when exposed to direct heat may explode and cause injuries to people around it．The injured can sue the beer company for——and demand compensation．
a) intentional tort b )negligence tort c) liability tort d) product liability tort
13. ——spells out the features of a product in writing．
a) express warranty b) implied warranty c) merchantability d) property
14．A clock must tell time and a car must drive are typical examples of——．
a) express warranty b) implied warranty c)property d) patent
1 5．Endorsements are usually made in four forms——． a)blank，restrictive，special and qualified． b)lawful，competent, voluntary and proper c)blank，restrictive, lawful and competent d)special，qualified，voluntary and proper
16．——stipulates the powers and duties of an agent as well as the responsibilities of a principal．
a) Agency law b) Power of attorney c)Terms of reference d) Equitable compensation
1 7．In order to relieve the bankrupt businesses from further debt burden and help them begin anew,——have been developed．
a) agency laws b) property law c) bankruptcy 1aws d) contract laws
l 8．When a business goes bankrupt，a trustee can be elected to liquidate and distribute the——to the creditors.
a) dividends b) commissions c) debts d) proceeds
19．If creditors can only co1lect a portion of the debt，they tend to work out a(n)——in which an extension of payment terms are offered． a) composition agreement b) petition agreement
c) extension agreement d) voluntary agreement Fill in Blanks
1．According to their origins，law can be classified into three types；_____________, _____________ and _____________
2．Regulatory laws are created by decree of government agencies and therefore also called_______．
3. ______________ means that the purpose of the contract must be lawful．
4．Parties to a contract must be legally competent and can be held fully liable for their conduct．This is one of the _____________element contained in a contract called________．
5. ____________ is a name，word or a symbol that has been registered by the owner for identifying its product．
6. _______________ is an exclusive right granted by the government to allow the inventor to make，use or sell his invention．
7．One way to restrict further negotiation is to endorse an instrument specially for a specific individual，which is called _____________. 8．____________ is used to protect the endorser's right if the maker of the instrument fails to pay by writing “without recourse” above the signature． 9．Firms authorize people to act on their behalf．The firms are called______________ and the authorized people are known as____________．
10．According to the bankruptcy laws，if the debtor files a petition for bankruptcy first, the process is called__________；if the creditors file a petition for bankruptcy first, the process is called___________
11．A contract is a legally enforceable agreement between two or more parties and must contain the following five elements．They are____________, competency of parties，____________, consideration and proper form． True／False
1．Blank endorsements are frequently used to limit further negotiation． 2．Under a system of common law, though the judges make court decisions by judging the individual cases，they do not review previous decisions on legal cases of a similar nature．
3．If a conflict occurs between common 1aw and statutory law, the former takes precedence·
4．Laws established by legislative bodies or created by other legislative bodies under respective jurisdictions must al1 conform to the Constitution，because the Constitution is the supreme law．
5．To be legally enforceable，a contract must also be based on involuntary agreement.
6．It is wise to have a11 important contracts in the proper writing form，for it wi11 be much easier to prove breach of contract．
7. Contracts can be regarded legally enforceable without lawful purpose． 8．Tangible real property is any moveable item that can be owned，bought，so1d or leased．
9．If you purchase FOB shipping point title will not pass to you when the goods are delivered to the point of shipment.
10. A negotiable instrument must be payable to the drawer who is the instrument holder.
11. A negotiable instrument must be in writing form and signed by the maker.
12. If you lose an instrument with a blank endorsement, anyone who finds it can cash it.
13. Restrictive endorsements are frequently used to limit further negotiation.
14. Principals are not responsible for the actions of their agents if they act within their terms of reference.
15. The creditors can work out a composition agreement, in which every creditor will not agree on a cut-down on the debt owed to them. Chapter 11 Risk Management and Insurance Multiple Choice 1．
Firms that rely on a single product to generate most of their revenue
are susceptible to abrupt shifts in their performance and therefore have a high degree of：
a) business risk b) cash flow c) business certainty d) business diversity
2．Creditors are more wi1ling to provide financing for 1ow-risk ventures，since there is less chance of___.
a) default on a 1oan． b) revenue in the future c) uncertain economic conditions d) business success 3．Common ways to protect against risk are to eliminate the risk，assume the risk or：
a) absorb the risk． b) shift the risk． c) ignore the risk． d)
centralize the risk．
4. Purchasing insurance enables firms to：
a) assume risk． b) eliminate risk．c) shift risk d) absorb risk 5. ____________ insurance provides life insurance coverage for the policyholder for a limited time period and does not build up a cash value． a) Term life b) Limited life c) pure coverage d) periodic life
6． The risk of relying on a single key employee can be reduced by： a) purchasing key person insurance． b) narrowing the job description．
c) task specialization． d) automating tasks． 7．A(n)__________covers against losses due to dishonesty by employees． a) business interruption insurance policy b)fidelity bond c) surety bond d)indenture agreement 8．What type of insurance covers losses due to a contract not being fulfilled?
a) Umbrella liabi1ity insurance b) Surety bond c) Business interruption insurance d) Marine insurance
9. When a firm?s products or services are very sensitive to the national economy, the firm is said to have a
a) composition b) high degree of business risk c) risk assurance d) business insurance
l 0．Risk management involves identifying a firm?s exposure to risk and a) risk-sharing mechanism b) insurable interest c) protecting against the exposure to the risk d) life insurance l 1．In order to manage risks，a business can ___besides shifting the risk by buying insurance．
a) avoid the risk b) control the risk c) assume the risk d)a11 of the above
12．A——is a pool of money paid by the people who decide to use the risk-sharing mechanism called insurance．
a) proximate cause b) hedging c) premium d) insurance policy
13. A formal agreement to pay the policyholder a specified amount in the event of 1osses is called:
a) premium b) insurance policy c) contribution d) compensation 1 14. There are some basic insurance principles that we should observe．They are——except：
a) insurable interest b) compensation c) utmost good faith d) indemnity Fill in the Blanks：
1．In order to protect themselves from damage or loss of their own property firms may purchase____________. 2．Property
insurance may include______________, marine
insurance．aviation insurance and____________.
3. _______________ covers losses resulting from damage to other people or other people’s property.
4．The insurance that can cover the risks resulting from both accidents and illness and can take care of surgical and hospital expenses is ______________
4. There are four types of life insurance．They are__________，whole life insurance，limited payment life insurance and __________________. 5. Business can purchase life insurance plans such as group life insurance, __________, credit life insurance and _____________.
7．One of the principles of insurance is __________ which enables the insurance company to provide the insurance against the risk that really occurs and the insured suffers a loss from the risk.
8. ____________provides insurance for a policyholder only over a specified term and does not build a cash value for policyholders． 9. The firm can choose several ways to control the risk it faces. It can avoid the risk, ______________ the risk, assume the risk and ______________ the risk.
10．There are certain basic principles about insurance that we should understand．These principles are: ______________,utmost good faith，indemnity, contribution，subrogation, and_______________.
11. Generally there are four types of insurance such as__________
insurance, liability insurance, health insurance and ___________ insurance. True/False
1. Risk management involves identifying a firm?s exposure to risk and protecting against that exposure．
2. Firms can use risk management to stabilize their performance． 3. The only sensible approach to managing business-risks is to shift the risk.
4．Limited payment life insurance is similar to whole life insurance except that the insured pays premium for only a limited number of years． 5．Jack has bought property insurance．His 2-year old bike is stolen．He can claim on his loss by getting compensation from the insurance company to buy a brand-new bike．
6．Mr. Smith buys an insurance for his flight from Toronto to London and，during the flight, breaks his neck due to air turbulence．He can claim compensation because the flight is the proximate cause．
7．Personal liability coverage would protect a surgeon should he cut off the left leg of a patient rather than the right which suffers from bone cancer. 8．Term life insurance provides coverage for whole life． 9．Endowment life insurance can only offer protection for the insured． 10．A group life insurance policy covers all individuals in a business firm and most of the premium is paid by the employees． Chapter l 2 International Business
Multiple Choice．
1．Two common trade barriers imposed by governments are： a) interest rate restrictions and bond indentures. b) open market operations and factoring· c) capital budget requirements and margin calls. d)tariffs and quotas.
2．A(n)——is a tax a government imposes on imported goods· a) tariff b )quota c) excise tax d)exchange rate 3．A___________ is a limit on the amount of a good that can be imported into a country．
a) tariff b) fixed exchange rate c)reserve requirement d) quota
4 Modulo system is a US firm that produces high-quality electronics components. When Modulo sells its products to purchasers who live in foreign countries, it is engaging in
a)importing． b)exporting． c)counter trade． d)direct foreign investment．
5.__________ is the purchase of foreign products or services
a) importing． b) Exporting． c) Counter trade． d) Direct foreign investment
6．When a bank quotes an exchange rate for immediate delivery to a firm，it is quoting the：
a) futures contract． b) forward contract．c) balance of payments d) spot rate．
7．Many U．S. firms have capitalized on opportunities in foreign countries by engaging in：
a) politics b) international business c)religious practices d)cultural diversity
8．All of the following are types of international business activities except： a) restructuring． b) importing． c) 1icensing agreement． d) direct foreign investment
9．In international business，an agreement between two firms about a specific project is a：
a) sole proprietorship b) joint venture c) cartel d) tariff
l0．An agreement in which a firm allows a foreign company to produce its products according to specific instructions is a(n)：
a) tariff b) export c) licensing agreement d) import 11．——exists when a country can make something better or more cheaply than anyone else．
a) A comparative advantage b) An absolute advantage c) A qualified advantage d) A specific advantage 12．If a country can make something better or more cheaply than other countries can make, it has
a) a comparative advantage b) an absolute advantage c) a qualified advantage d) a specific advantage 13．——is the price or exchange rate at which one is willing o buy or sell a currency．
a) A quota b) A tariff c) A quotation d) A non-barrierr tariff
1 4．If home currency is used to express the unit price of a foreign currency, we call it
a) a direct quotation b) an indirect quotation c) an exchange rate d) a foreign exchange 1 5．According to their purposes，tariffs fall intotwo types：
a) specific tariffs and compound tariffs b) revenue tariffls and protective tarifrs
c) ad valorem tariffs and specific tariffs d) revenue tariffs and ad valorem
l 6. In addition to regular importt tariffs，imports might have to pay__________．
a) revenue tariffs b) import surtax c) protective tariffs d) alternative tariffs
17．Import surtax is an additional tax for specific purposes．It has following major forms except：
a) countervailing duty b) anti-dumping duty c) variable levy
d) barrier
18．Import surtax can be collected in four ways such as specinc duties and the following except：
a) anti-dumping duties b) ad valorem duties c) compound duties d ) alternative duties
l 9．Exporting countries sometimes have to stipulate quotas for products they can export during a certain period of time as the importing countries requested．Such quotas are called——．
a) tariff quotas b) requested quotas c)voluntary export quotas d)foreign quotas
20．Besides tariffs，other measures such as quotas are also used to control imports．As such measures collect no tariff they are commonly referred to as——．
a) non-tariff barriers b) tariff barriers c) barriers d) without tarriffs
Fill in Blanks：
1．_________exists when a country can make something better or more cheaply than anyone else．
2．______________ is an agreement that the exporting company gives the foreigner a license to produce or market the former?s products in the latter?s country．
3．In international business，currencies of foreign countries are called