a. Why is planning sometimes referred to as the “first” management function? b. What is a plan? Differentiate between the major types of plans. c. What kind of motivations do different employees have? d. What are the three steps of controlling?
> Circle the letter before the most accurate answer. 35. A group of people who have been singled out for unfavorable treatment on the basis of race, religion, politics, or national origin is called a. an affirmative action group. b. the hard-core unemploye
> Circle the letter before the most accurate answer. 6. Which of the following is not one of the four resources used by business today? a. Material b. Informational c. Governmental d. Financial e. Human 7. Today, the U.S. economy is often characterized as
> Select the correct answer. 1. T F Reducing production costs by selecting suppliers that offer higher-quality raw materials and components at reasonable prices is one way U.S. firms are trying to become more competitive in the global marketplace. 2.
> 1. What are some of the barriers Alibaba is facing as it expands globally? 2. Why would the sale of counterfeit products through its sites be damaging to Alibaba?
> Select the correct answer. 1. T F The step that distributes responsibility and authority within an organization is called delegation. 2. T F Job specialization is the systematic shifting of employees from one job to another. 3. T F The obligation of
> Select the correct answer. 1. T F Of the four main resources available to management, perhaps the most important is the organization's financial resources. 2. T F Strategic planning is the process of establishing an organization's major goals and ob
> Select the correct answer. 1. T F A small business is one that is dependent, is operated as a not-for-profit organization, and is not dominant in its field. 2. T F The primary reason for small-business failure is mismanagement resulting from lack of
> Select the correct answer. 1. T F Today, there are more corporations than there are sole proprietorships and partnerships in the United States. 2. T F For a sole proprietorship and partnership, unlimited liability is a legal concept that holds a bus
> a. How does an increase in productivity affect business? b. Define gross domestic product. Why is this economic measure significant? c. How does inflation affect the prices you pay for goods and services? d. How is the producer price index related to the
> a. What are the four basic economic questions? How are they answered in a capitalist economy? b. Describe the four basic assumptions required for a laissez-faire capitalist economy. c. Why is the American economy called a mixed economy? d. How does capit
> What are some of the issues businesses must consider with regard to public health?
> Select the correct answer. 1. T F The ability to produce a specific product more efficiently than any other nation is called comparative advantage. 2. T F International business consists of all business activities that involve exchanges across natio
> a. What is meant by business ethics? b. What are the different types of ethical concerns that may arise in the business world? c. Explain and give an example of how advertising can present ethical questions.
> a. What steps must a business take to implement a program of social responsibility? b. What is the social audit? Who should prepare a social audit for the firm?
> a. Outline the historical evolution of business social responsibility. b. What are the six important business-related federal laws passed between 1887 and 1914? c. Explain the two views on the social responsibility of business. d. What are the arguments
> a. How can the government encourage the ethical behavior of organizations? b. What is trade associations’ role in encouraging ethics? c. What is whistle-blowing? Who protects the whistle-blowers? d. What is social responsibility? How can business be soci
> a. Two methods of engaging in international business may be categorized as either direct or indirect. How would you classify each of the methods described in this chapter? Why? b. What is a letter of credit? A bill of lading? A draft? c. In what ways is
> a. Describe several individual factors that influence the level of ethical behavior in an organization. b. Explain several social factors that affect ethics in an organization. c. How does opportunity influence the level of ethical behavior in the workpl
> a. How does your standard of living affect the products or services you buy? b. What is the difference between the domestic system and the factory system? c. Choose one of the environments that affect business and explain how it affects a small electroni
> a. What are the major environmental issues facing society today? b. What is businesses’ response to environmental concerns?
> a. Is competition good for business? Is it good for consumers? b. Compare the four forms of competition. c. What is the relationship between supply and demand? d. Explain how the equilibrium, or market, price of a product is determined.
> a. Describe the four resources that must be combined to organize and operate a business. b. What is the difference between a manufacturing business, a service business, and a marketing intermediary? c. Explain the relationship among profit, business risk
> Select the correct answer. 20. T F Social responsibility is the recognition that business activities have an impact on society and the consideration of that impact in business decisions. 21. T F The economic model of social responsibility places emp
> a. What are the four phases in the typical business cycle? b. At the time you are studying the material in this chapter, which phase of the business cycle do you think the U.S. economy is in? Justify your answer. c. How can the Federal Reserve and govern
> a. Why do firms engage in international trade? b. What is the difference between an absolute advantage and a comparative advantage? c. What is the difference between balance of trade and balance of payments?
> a. What is an affirmative action program? What is its purpose? b. Why did Congress create (and later strengthen) the Equal Employment Opportunity Commission? c. How can businesses reduce sexual harassment and abusive behavior at the workplace?
> a. What are the key skills that successful managers should have? b. For each skill, provide two reasons why a successful manager should have that skill.
> a. In your own words, define a joint venture and a syndicate. b. In what ways are joint ventures and syndicates alike? In what ways do they differ?
> a. How does a sole proprietorship differ from a partnership? b. Explain the difference between a general partner and a limited partner. c. Describe the issues that should be included in a partnership agreement.
> a. What happens when a firm makes a decision to grow from within? b. What is a hostile takeover? How is it related to a tender offer and a proxy fight? c. Explain the three types of mergers. d. Describe the current merger trends and how they affect the b
> a. Define and describe the major objectives of the World Trade Organization (WTO) and the international economic communities. b. What is the North American Free Trade Agreement (NAFTA)? What is its importance for the United States, Canada, and Mexico? c.
> a. What information would you need to determine whether a particular business is small according to SBA guidelines? b. Which two areas of business generally attract the smallest businesses? Why are these areas attractive to small business? c. Distinguish
> a. What does the franchisor receive in a franchising agreement? What does the franchisee receive? What does each provide? b. Cite one major benefit of franchising for the franchisor. Cite one major benefit of franchising for the franchisee. c. How does t
> Select the correct answer. 1. T F Free enterprise is a system of business in which individuals decide what to produce and how to produce it. 2. T F Less than 65 percent of small businesses fail within the first ten years. 3. T F Business is the orga
> a. According to the IMF, what are the economic growth projections for 2017 and 2018? b. What is the importance of exports to the U.S. economy? c. Which nations are the principal trading partners of the United States? What are the major U.S. imports and e
> a. What kinds of factors encourage certain people to start new businesses? b. What are the major causes of small-business failure? Do these causes also apply to larger businesses?
> a. Explain the relationships among a franchise, the franchisor, and the franchisee. b. Describe the three general categories of franchising arrangements.
> a. Briefly describe four contributions of small business to the American economy. b. Give examples of how small businesses fill needs of society and other businesses.
> a. Identify five ways in which the SBA provides management assistance to small businesses. b. Identify two ways in which the SBA provides financial assistance to small businesses. c. Why does the SBA concentrate on providing management and financial assi
> a. What are the major advantages and disadvantages of smallness in business? b. What are the major components of a business plan? Why should an individual develop a business plan?
> a. List and briefly describe the principal restrictions that may be applied to a nation’s imports. b. What reasons are generally given for imposing trade restrictions? c. What are the general effects of import restrictions on trade?
> a. What is a sole proprietorship? b. What are the advantages of a sole proprietorship? c. What are the disadvantages of a sole proprietorship?
> a. What are the advantages of a corporation? b. What are the disadvantages of a corporation?
> a. Explain the difference between an open corporation and a closed corporation. b. How is a domestic corporation different from a foreign corporation and an alien corporation? c. Outline the incorporation process, and describe the basic corporate structu
> Circle the letter before the most accurate answer. 6. The selling and shipping of raw materials or products to other nations is called a. importing. b. exporting. c. balance of trade. d. balance of payments. e. dumping. 7. A type of trade restriction tha
> a. What is the Export-Import Bank of the United States? How does it assist U.S. exporters? b. What is a multilateral development bank (MDB)? Who supports these banks? c. What is the International Monetary Fund? What types of loans does the IMF provide?
> a. Explain the difference between an S corporation and a limited-liability company. b. How does a regular (C) corporation differ from a not-for-profit corporation?
> a. What reasons would you give if you were advising someone to study business? b. What factors affect a person’s choice of careers? c. Once you have a job, what steps can you take to be successful?
> a. What is management? b. What are the four kinds of resources?
> a. Describe the three levels of management. b. Identify the various areas of management specialization, and describe the responsibilities of each.
> a. Describe the major leadership styles. b. Which one is best?
> a. Describe the major steps in the managerial decision-making process. b. Why does a manager need to evaluate the solution and look for problems after a solution has been implemented?
> a. Why does top management need to be strongly committed to TQM programs? b. Describe the major components of a TQM program.
> a. How do large and small organizations use organization charts differently? b. Identify the major considerations when organizing a business.
> Circle the letter before the most accurate answer. 25. One factor that influences ethical decision making because of the amount of freedom given to employees is the __________ factor. a. business b. consumer c. marketing d. opportunity e. internal 26. A
> a. What are the positive and negative effects of specialization? b. What are three ways to reduce the negative effects of specialization?
> a. What are the four most common bases for departmentalization? b. Give an example of each.
> a. Identify and describe the three steps in the delegation process. b. Differentiate decentralized organization and centralized organization.
> a. Describe the two spans of management. b. What are problems associated with each one?
> a. What is corporate culture? b. Explain the four types of corporate cultures.
> a. What is the difference between a committee and a task force? b. What are the advantages and disadvantages of using committees?
> a. In what ways can informal groups affect a business? b. How is the grapevine used in a business organization?
> a. List the major activities involved in operations management. b. What steps have U.S. firms taken to regain a competitive edge in the global marketplace? c. What is the difference between an analytical and a synthetic manufacturing process? Give an exa
> a. How is the production of services similar to the production of manufactured goods? b. How is production of services different from the production of manufactured goods? c. How can service firms measure customer satisfaction?
> a. Describe how research and development leads to new products. b. What is the difference between basic research, applied research, and development and implementation? c. Explain why product extension and refinement are important.
> Circle the letter before the most accurate answer. 6. A general rise in the level of prices is called a. free enterprise. b. inflation. c. gross domestic product. d. depression. e. monopoly. 7. A market situation in which there are many buyers and seller
> a. What are the advantages of a partnership? b. What are the disadvantages of a partnership?
> Compute the issue price of each of the following bonds. a. $10,000,000 face value, zero coupon bonds due in 20 years, priced on the market to yield 8% compounded semiannually. b. $10,000,000 face value, serial bonds repayable in 40 equal semiannual insta
> Ms. Fleming has £145,000 with which she purchases an annuity on February 1, 2008. The annuity consists of six annual receipts, the first to be received on February 1, 2009. How much will she receive in each payment? Assume the following interest rates: a
> If Mr. Enmetti invests €90,000 on June 1 of each year from 2008 to 2018 inclusive, how much will he have accumulated on June 1, 2019 (note that one year elapses after the last payment), if the interest rate is a. 5% per year? b. 10% per year?
> Ms. Namura wants to have ¥45 million on her 65th birthday. She asks you to tell her how much she must deposit on each birthday from her 58th to 65th, inclusive, in order to receive this amount. Assume the following interest rates: a. 8% per year b. 12% p
> Mr. Case plans to set aside $4,000 each year, the first payment to be made on January 1, 2013, and the last on January 1, 2018. How much will he have accumulated by January 1, 2018, if the interest rate is a. 6% per year? b. 8% per year?
> When the American Basketball Association (ABA) merged with the National Basketball Association (NBA), the owners of the ABA St. Louis Spirits agreed to dissolve their team and not enter the NBA. In return, the owners received a promise in perpetuity from
> The balance sheet of Lynch Company shows net assets (= total assets – total liabilities) of $100,000 and shareholders’ equity of $100,000. The assets are all depreciable assets with remaining lives of 20 years. The income statement for the year shows rev
> When General Electric Company first introduced the Lucalox ceramic, screw-in light bulb, the bulb cost three and one-half times as much as an ordinary bulb but lasted five times as long. An ordinary bulb cost $1.00 and lasted about eight months. If a fir
> Mrs. Heileman occasionally drinks beer. (Guess which brand.) She consumes one case in 20 weeks. She can buy beer in disposable cans for $25.20 per case or for $24.00 per case of returnable bottles if she pays a $3.00 refundable deposit at the time of pur
> When Mr. Shafer died, his estate after taxes amounted to $300,000. His will provided that Mrs. Shafer would receive $24,000 per year starting immediately from the principal of the estate and that the balance of the principal would pass to the Shafers’ ch
> Mme. Barefield wishes to have $150,000 at the end of 8 years. How much must she invest today to accomplish this purpose if the interest rate is a. 6% per year? b. 8% per year?
> If you promise to leave $30,000 on deposit at the Dime Savings Bank for four years, the bank will give you a new large, flat-screen Sony TV today and your $30,000 back at the end of four years. How much are you paying today for the TV, in effect, if the
> An oil-drilling company figures that it must spend $30,000 for an initial supply of drill bits and that it must spend $10,000 every month to replace the worn-out bits. What is the present value of the cost of the bits if the company plans to be in busine
> Using the notation O/S (overstated), U/S (understated), or NO (no effect), indicate the effects on assets, liabilities, shareholders’ equity, and net income of each of the independent errors that follow. Ignore income tax effects. a. In applying the equi
> Dealco Corporation published a consolidated income statement for the year, shown in Exhibit 14.10. The unconsolidated affiliate retained 25% of its earnings of $140 million during the year, having paid out the rest as dividends. The consolidated subsidia
> Laesch Company, as parent, owns shares in Lily Company. Laesch has owned the shares since it formed Lily. Lily has never declared a dividend. Laesch has retained earnings from its own operations independent of intercorporate investments of $100,000. The
> On December 12, 2013, Canning purchased 2,000 shares of Werther. By December 31, the market price of these shares had dropped by $1,000. On March 2, 2014, Canning sold the 2,000 shares for $18,000 and reported a realized gain on the transaction of $4,000
> During 2013, Fischer/Black Company purchased equity securities classified as available-for-sale securities. On May 22, 2014, the company recorded the following correct journal entry to record the sale of the equity securities: a. What was the acquisiti
> Firms that do not elect the fair value option classify marketable securities along two dimensions: ■ Purpose of investment: held-to-maturity debt securities, trading securities, or available for-sale securities. ■ Length of expected holding period: curre
> Disney World experienced damage from a tornado at Space Mountain, one of its most popular attractions. It paid $30,200 to replace steel reinforcements to the structure damaged by the tornado, $86,100 for a new roof torn off by the tornado, $26,900 for a
> Thom Corporation acquired a computer on January 1, 2011, for $10,000,000. The computer had an estimated useful life of six years and $1,000,000 estimated salvage value. The firm uses the straight-line depreciation method. On January 1, 2013, Thom Corpora
> Mr. Altgeldt has $5,000 to invest. He wants to know how much it will amount to if he invests it at the following rates: a. 6% per year for 21 years. b. 8% per year for 33 years.
> In 2013, Carlton, Inc., acquires a machine for $88,800. It expects the machine to last six years and to operate for 30,000 hours during that time. Estimated salvage value is $4,800 at the end of the machine’s useful life. Calculate the depreciation charg
> Nexor, a steel manufacturer, self-constructs a new manufacturing facility in Vermont. At the start of 2013, the Construction-in-Process account had a balance of $30 million. Construction activity occurred uniformly throughout the year. At the end of 2013
> Bulls Eye Stores constructed new stores during the current year. The average balance in the Construction-in-Process account excluding the current year’s capitalized interest costs was $3,400,000. Bulls Eye Stores engaged in borrowing directly related to
> WollyMartin Limited, a large retailer, provided the following information from its accounting records for the year ended September 30, 2013: WollyMartin’s business is characterized by many retail customers—some of wh
> Cemex S.A., a Mexican cement and construction firm, reported ending inventory, net for the year ended December 31 of $19,631 million (all amounts reported in millions of Mexican pesos). During the year, Cemex reported that application of the lower-of-cos
> Falcon Motor Company, a U.S. automotive manufacturer, reports that it uses the LIFO cost-flow assumption for inventory. For the year ended December 31, 2013, Falcon’s cost of goods sold was $142,587 million. It reported the following in
> Cat Incorporated manufactures machinery and engines for the construction, agriculture, and forestry industries. It follows U.S. GAAP and reports its results in millions of U.S. dollars ($). For the year ended December 31, 2013, it reported LIFO inventori
> Warren Company uses a FIFO cost-flow assumption and calculates Cost of Goods Sold as Beginning Inventory + Purchases – Ending Inventory. It uses a physical count of merchandise on hand to determine the balance in Ending Inventory. On December 30, 2012, W
> The following data relate to Crystal Chemical Corporation for the year ended December 31, 2013 (amounts in millions of euros): The company incurred manufacturing costs (direct material, direct labor, and manufacturing overhead) during the year totaling
> Arnold Company’s raw material purchases during January, its first month of operations, were as follows: The inventory on January 31 was 3,500 pounds. Compute the cost of the inventory on January 31 and the cost of raw materials issued
> GenDyn computes net income for 2012 of $1,500 and for 2013 of $1,800, its first two years of operations. Before issuing its financial statements for 2013, GenDyn discovers that an item requires an income-reducing adjustment of $400 after taxes. Indicate
