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WorksheetsPOBF 5.03 - 5.05 LAPs test
Total questions: 100
Worksheet time: 8hrs 20mins
Every new business owner must pay attention to forces operating outside the company that affect its chances for success. These forces are referred to as
the external environment.
competition.
cultural intelligence.
demographics.
Amie talks to customers and suppliers from all over the world on a daily basis. Her company’s involvement with people in so many different countries is due to the trend of
environmental scanning.
demographics.
social responsibility.
globalization.
Since Amie deals with people from many different countries, she attempts to become sensitive to differences in their customs and traditions. Amie is developing
economic growth.
cultural intelligence.
social responsibility.
competition.
Which of the following is an example of a governmental regulatory agency:
Sporting Goods Manufacturers Association
Better Business Bureau (BBB)
Federal Aviation Administration (FAA)
Air Conditioning Contractors of America
Industry associations differ from regulatory agencies in that they
exist to make a profit.
don’t have government authority.
are formed for social purposes only.
have been created to protect consumers.
Businesses are affected by social factors in the external environment because
every business creates consumer products.
customer needs are affected by these factors as well.
a business cannot survive without social networking.
customers no longer value quality.
Which of the following is a true statement about the social factor of lifestyle and fashion trends:
They influence retail businesses only.
They are more important than economic trends.
They do not affect customer needs.
They change quite frequently.
Economic factors can affect a business’s operations by
creating new legislation.
transforming family roles.
increasing or decreasing costs.
eliminating the competition.
Which of the following is a true statement about how technology affects the external business environment:
Not all businesses are affected by technology.
Businesses must look for updated technology all the time.
Technology is the main way to compete with other businesses.
Certain target markets do not use technological products.
How does technology affect a business’s customers?
It influences what they want and need.
It distracts them from making informed buying decisions.
It makes them spend more money.
It emphasizes certain cultural differences.
A business that exists to fulfill a specific mission or undertaking is called a(n) __________
business.
mission-central
focused
for-profit
nonprofit
Every business must accomplish which of the following:
Produce or provide goods/services
Obtain venture capital
Issue corporate bonds
Trade or sell business assets/property
Which of the following represents a primary business activity:
Scheduling
Designing
Marketing
Supervising
With Rosita’s pizza shop, financial analysis is used to
attract customers.
oversee the baking process
obtain funding for supplies.
develop the best recipe.
Human-resources management is demonstrated in which of the following statements:
The business gives its preferred customers a special discount.
The business takes care of the responsibilities associated with having employees.
The business includes top-level managers in long-term planning.
The business acts on new information about a competitor.
TeJuan’s Fishing Shack demonstrates effective information management by
accessing a list of fishing equipment appropriate for a particular customer.
removing wasted materials from the process of providing goods to customers.
promoting new fishing equipment in a popular trade magazine.
hiring fishing experts to explain how to use the goods offered.
Marketing is demonstrated in which of the following statements:
The business prepares for long-term success by planning and organizing.
The business meets customers’ needs by offering appropriate products.
The business expects to merge with another business in the industry.
The business hires qualified employees to perform complex job duties.
Franco’s Bread Shop is introducing a new type of sandwich bread to the community this week. Which of the following describes the business activity the bread shop is likely involved in
Collecting information on last year’s new breads
Creating a system for storing new bread recipes
Planning for the long-term results of introducing new breads
Promoting the new bread through advertising
For the long-term success of the business, Stacey’s Coffee House has decided to add a self-serve laundromat. Which of the following describes the business activity Stacey’s Coffee House is likely involved in:
Determining what will put it in reach of its goals
Establishing a system for retrieving information
Promoting its new service to potential customers
Organizing itself for meeting its objectives
Which of the following demonstrates the interrelationship among primary business activities:
A business changes its goals, so its strategies and tactics change, too.
A new product is introduced, so business advertisements must adjust.
A business manager becomes vice president, so his/her department must adjust to the change.
One business activity changes, so the others must adjust.
Farms, mines, and lumber companies are examples of
builders.
manufacturers.
trade industries.
raw-goods producers.
A company that transforms cotton into wearable clothing is considered a
raw-goods producer.
manufacturer.
service business.
builder.
Rembert works for a grocery store that buys food from producers and sells it to customers. The grocery store is considered a
trade industry.
service business.
raw-goods producer.
builder.
The two main divisions of the trade industry are
producers and retailers.
manufacturers and wholesalers
wholesalers and retailers.
wholesalers and producers
Which of the following describes the services offered by trade industries:
They are always limited
They vary from day to day.
They are always full line.
They may be limited or full line.
Businesses in trade industries that offer discount prices usually offer
full services.
limited services
plush interiors.
elaborate fixtures.
What do service businesses sell?
Retail merchandise
Raw goods
Wholesale merchandise
Intangible activities
A large retailer feels that it has a duty to contribute to the well-being of society, so it donates a portion of its proceeds to a charity that helps the environment. The retailer is demonstrating
social responsibility.
wholesaling.
voluntary chains.
e-tailing.
One way in which a business can show its social responsibility is by __________ its profits.
dividing
maximizing
reducing
controlling
Businesses can show their social responsibility by contributing to
pollution.
public interests.
private causes.
promotion.
A socially responsible business will attempt to give customers
lower quality products at reduced prices.
high-quality products at high prices.
the best products at the best prices.
the best products no matter what they cost.
Social responsibility should be part of the objectives of __________ businesses.
all
nonprofit
government
specialized
A business that produces a product should be socially responsible to the __________ of the product.
endorsers
providers
users
producers
The connection between the social responsibility of a business and the community in which the business operates is that the business’s social responsibility __________ the community.
depends upon
targets only
targets the area outside
has an effect on
One way in which many businesses demonstrate their social responsibility toward employees is by providing them with
free meals.
a safe working environment.
regular entertainment.
a stress-free atmosphere.
Which of the following is a result of globalization:
higher productivity
Decreased competition
Increased consumer spending
Shrinking product life cycles
Which of the following is a true statement about consumer demands:
Consumers don’t care about delivery times.
Consumers want value more than they want low prices.
Consumers want new product features.
Consumers are less demanding than they were in the past.
How have industry structure changes affected the current business environment?
Organizations are less willing to change than in the past.
Business now moves faster than ever.
The manufacturing industry has disappeared.
Communication is slightly slower than it used to be.
Which of the following industries is part of the fast-growing services-producing sector of the economy:
Agriculture
Construction
Manufacturing
Education
What characteristic has the globalization trend made it necessary for adaptable organizations to display?
Cultural intelligence
Strong leadership
Agility
Cohesiveness
Which of the following actions illustrates the strong leadership needed in an adaptable
organization:
Focusing on maximizing resources
Looking at the big picture rather than individual employees
Relying on past methods and successes
Striving to reduce expenses at all costs
An organization that has the ability to adapt quickly is
culturally intelligent.
open-minded.
cohesive.
agile.
Nic’s company is making some quick changes in response to shifting market conditions. The ability to easily realign its people and resources appropriately is called
flexibility.
scalability.
visibility.
cohesiveness.
Which of the following actions describes proactive management:
Planning in advance for change
Making only long-term plans
Encouraging individualism
Avoiding risk
Striving to get new products to the market first and win scarce customer dollars is an “adaptable” strategy often called
globalization
competitive aggression.
organizational learning.
slack resources.
Seeing the “big picture” instead of smaller, individual parts is an organizational learning concept known as
team learning.
shared organizational vision.
personal mastery.
systems thinking.
Jodi needs $10,000 per month to operate her photography business. Last month, she made $13,000. The extra $3,000 are called
spending trends.
competitive aggression.
slack resources.
consumer demands.
Which of the following is a true statement about globalization:
It is a purely economic term.
It has had a minimal impact on the world.
Its pace is slowing down.
It involves the flow of ideas across national borders.
The technology that has had the most influence on globalization has been
television.
the Internet.
inexpensive telephone service.
wireless connections.
Globalization can be an advantage for businesses because it
can contribute to a phenomenon called brain drain.
increases direct competition.
can help them to cut costs for certain resources.
inhibits the ideas of other businesses.
Free exchange of ideas contributes to
more instances of outsourcing.
fewer choices for consumers.
decreased competition.
greater business innovation
How has globalization affected consumers?
It has increased competition among them.
It has given them a bigger and better variety of products to choose from.
It has made them more close-minded toward other cultures and ethnicities.
It has helped them to save on taxes.
One of the biggest barriers that separates countries/regions is
methods of travel.
brain drain.
language.
technology.
When people from one country/region eat and dress differently from people in another country/region, it is due to differences in
political climate.
culture.
nationalism.
infrastructure.
Which of the following is a main reason for businesses to expand into foreign markets:
To build brand value
To spread culture
To pay taxes
To help the less fortunate
Which of the following is a reason a company might organize itself under the laws of a different country than those of its “home” country:
To save on taxes
To remain competitive
To build brand value
To take advantage of technology
A clothing manufacturer in the United States allows a company in Argentina to use its name and logo in exchange for a fee and royalties. This is an example of
a joint venture.
franchising.
exporting.
licensing.
You pay Burger King for the right to set up a location in Barcelona under the corporate headquarters’ guidance and regulation. This is an example of
franchising.
a joint venture.
a wholly owned subsidiary.
exporting.
A business can create a wholly owned subsidiary by building a facility in a foreign market or by
finding a franchisee.
signing a licensing agreement.
buying an existing firm in the market.
exporting to the market.
The highest level of involvement in international business is
creating a wholly owned subsidiary.
franchising.
licensing.
establishing a multinational firm.
The equipment, ingredients, and employee labor at a restaurant are all
inputs
objectives
productivity
mass production
The amount and value of outputs produced from set amounts of resources are known as
inputs
objectives
productivity
mass production
One way that the productivity of a business can be measured is by
determining the amount of time needed to gather all necessary inputs.
calculating the total monetary costs of all inputs used.
dividing the dollar value of total sales by the costs of making those sales
dividing the number of products made by the cost of distributing those items
Why is the productivity of service businesses measured differently than that of manufacturing
businesses?
Service businesses are less efficient than manufacturers
Manufacturers measure their productivity on a regular basis.
Service businesses are concerned about the appropriateness of their products.
Manufacturers produce intangible goods.
Why should productivity be measured?
To see whether the business’s objectives are being met
To locate new sources of inputs
To determine the best ways to invest company profits
To find new ways to meet customer needs
Gross domestic product per capita is a measure of
everything a country produces within its borders.
everything a country imports from foreign countries
everything a country exports
the average worker’s productivity
Lack of standardization occurs when
employees don’t understand how to use a machine or tool
tasks and processes are done differently every time.
products are complex and difficult to assemble
.team members do not get along with each other.
A company produces only one type of shoe, since this is the product it is best able to produce with its resources. This is an example of
specialization
division of labor
productivity
competitive advantage
A factory that mass produces clothing increases productivity because it reduces
employee wages
wasted resources
research and development costs
levels of management
Research and development speed up production by
simplifying existing products
providing employees with adequate job training
limiting inflation
reviewing company goals with employees
Why are better trained and educated workers often more productive?
They are more likely to become managers
They are less likely to take vacation and sick days
They tend to have a higher gross domestic product per capita
They tend to be more organized and able to manage their time wisely.
Sharing business goals and objectives with workers is a method of increasing productivity through
motivation
.mass production
communication
specialization
You decide not to take a certain action because you know it’s the wrong thing to do. You have made this decision based on your
peers.
ethics.
regulations.
laws.
A business’s ethics determine whether or not an action is acceptable for that business, especially if the action
affects the environment.
is illegal.
contributes to the business’s profitability.
has a negative impact on others.
Understanding business ethics can be difficult since
there are no industry-specific ethical codes.
it is a relatively new field of study.
many people aren’t sure how to behave ethically.
it involves a lot of technical terms.
Which of the following is a true statement about business ethics and the law:
The two are not the same thing, but they do overlap.
Everything that is illegal is also unethical.
Everything that is unethical is also illegal.
The two have nothing to do with each other.
Which of the following is a true statement about breaking the law:
It is acceptable in most industries.
It is necessary for business success.
It will make a company more popular.
It may have different consequences than breaching ethics.
Which of the following is one of the four pillars of a business’s social responsibility:
Political responsibility
Economic responsibility
Media responsibility
Universal responsibility
A large tech company donates a portion of its proceeds to charity. This is an example of __________ responsibility.
legal
ethical
philanthropic
economic
Why should a business practice good ethics?
An unethical business will go bankrupt.
The government will fine an unethical business.
An ethical business makes more money than all its competitors.
An ethical business contributes toward its own success.
Which of the following is a true statement about ethical business practices:
They do not guarantee positive outcomes.
They are more difficult to undertake than unethical practices.
They are all under government regulation.
They ensure that a business will succeed.
A business suddenly moves its operations to a new town, leaving its current employees jobless. Its reason for taking this action, which some consider unethical, might be that the action
benefits the community.
is not illegal.
is committed by unethical employees.
doesn’t hurt anyone.
A financial advisor receives a bonus for selling a certain mutual fund. Her reason for taking this action, which some consider unethical, might be that the action
benefits the community.
is acceptable within the industry.
is acceptable in foreign cultures.
is committed by unethical employees.
Because of a business’s organizational design, its employees are able to work together to come up with a brand-new product. This process is called
Division of labor
Competition
Authority
Innovation
A well-planned organizational design helps a business to better compete because
competitors don’t have organizational structures
it cuts down on communication
the business is more productive
the business has more money
Mason is the vice-president of marketing at his company. He directly supervises everyone who works in the department. Mason has
functional authority
divisional authority
line authority
staff authority
Keri works as a public-relations consultant for a large corporation. She reviews issues and makes recommendations to managers. Keri has
functional authority
divisional authority
line authority
staff authority
Nathan is a project manager in charge of four other employees. He’s divided up responsibilities and assigned them to specific team members to work on. This is known as
delegation
innovation
unity of command
the scalar principle
At a hair salon, one employee washes customers’ hair, another employee cuts it, and another dries and styles it. This allows the employees to make the most efficient use of their time and illustrates an organizational principle known as
span of control
division of labor
authority
innovation
Which principle of organizational design states that authority should flow in a clear, unbroken line from the top of an organization to the bottom?
Span of control
Staff authority
Responsibility
Scalar principle
Which of the following terms refers to the flow of authority within an organization:
Division of labor
Functional structure
Chain of command
Innovation
Because of a business’s organizational design, its employees are able to work together to come up with a brand-new product. This process is called
Division of labor
Competition
Authority
Innovation
The amount of teamwork included in an organizational design is often referred to as
division of labor
delegation
staff authority
lateral relations
Which of the following is a disadvantage of the matrix organizational structure:
It makes the organization less competitive
It violates the unity of command principle
It cannot balance conflicting organizational objectives
It lacks flexibility
Which of the following is an advantage of the matrix organizational structure:
It makes good use of organizational resources
It is inexpensive to implement
It speeds up decision making
It reduces the duplication of certain activities
Which of the following is a true statement about the matrix organizational structure:
It lacks flexibility
It includes only line authority
It gives managers a wide span of control
It is useful for most types of organizations
Fair salaries and wages, competitive benefits, and safe and healthful working conditions are all important in creating a good
standard of living.
competitive advantage
division of labor.
quality of work life.
What is a method that managers can use to motivate employees?
Encouraging employees to specialize
Offering performance-based financial rewards
Investing in new technology
Sharing customer information with employees
What is a method that managers can use to motivate employees?
Encouraging employees to specialize
Offering performance-based financial rewards
Investing in new technology
Sharing customer information with employees
Even though Brad isn’t a manager, his boss encourages him to give his input on issues affecting the company. Brad’s boss is using
motivation
participative decision making
specialization
quality of work life.
