Practice Exam #2

Front

During a group project, Hannah is trying to identify which of the following is NOT a form of communication used by her team members? Laissez-faire, Verbal and nonverbal, Written, Listening skills

Back

Laissez-faire

Answer explanation

Laissez-faire refers to a hands-off approach in management and does not involve direct communication. In contrast, verbal, nonverbal, written communication, and listening skills are all forms of communication.

Front

Michael is starting a new business and is learning about the factors of production. Which of the following is NOT considered one of the factors of production? Land, Labor, Profits, Capital

Back

Profits

Answer explanation

Profits are not a factor of production; they are the result of combining land, labor, and capital. The factors of production are land, labor, and capital, which are used to create goods and services.

Front

Nora is preparing a presentation on ethical principles for her class. Which of the following is NOT a common ethical principle? Honesty, Fairness, Respect for others, Greed

Back

Greed

Answer explanation

Greed is not a common ethical principle, as it promotes self-interest over fairness, honesty, and respect for others, which are foundational ethical values.

Front

When Zoe goes shopping, she notices that the prices of groceries have increased compared to last month. What does this increase in prices measure in an economy?

Back

Increase in the cost of goods and services

Answer explanation

Inflation measures the increase in the cost of goods and services in an economy. It indicates how much prices are rising, affecting purchasing power.

Front

What are taxes?

Back

Government-imposed financial obligations on individuals and businesses.

Answer explanation

Taxes are government-imposed financial obligations on individuals and businesses, used to fund public services and infrastructure. The other options do not accurately describe what taxes are.

Front

At Mason's company, how does effective organizational communication contribute to overall productivity and success?

Back

It improves clarity, reduces misunderstandings, and enhances teamwork.

Answer explanation

Effective organizational communication improves clarity, reduces misunderstandings, and enhances teamwork, all of which are essential for boosting overall productivity and success.

Front

Which phase of the business cycle represents the highest point of economic activity?

Back

Peak

Answer explanation

The peak phase of the business cycle represents the highest point of economic activity before a downturn. It is characterized by maximum output and employment, making it the correct answer.

Front

In a school project, Grace is responsible for assigning tasks to her team members. Which management function is she focusing on?

Back

Organizing

Answer explanation

The organizing function in management focuses on dividing work and allocating resources effectively. It involves staffing, which is essential for ensuring that tasks are assigned to the right individuals.

Front

Mia is working on a project with a team from different countries. Which of the following best describes a key challenge she might face in intercultural communication?
- Speaking loudly to make sure the other person understands
- Assuming that gestures have the same meaning in all cultures
- Avoiding eye contact to show respect in all cultures
- Using complex vocabulary to impress the other person

Back

Assuming that gestures have the same meaning in all cultures

Answer explanation

A key challenge in intercultural communication is assuming that gestures have the same meaning in all cultures, as this can lead to misunderstandings and misinterpretations.

Front

Why is step 7, "Review Steps 1-6," in Hannah's guide to ethical decision making crucial?

Back

To learn from the decision and make improvements.

Answer explanation

Step 7 is crucial because it allows individuals to learn from the decision and make improvements for future ethical dilemmas, ensuring continuous growth and better decision-making processes.