Quiz questions to Review for Exam 2
1) The De Anza Bookstore is a(n):
A) merchant wholesaler.
C) rack jobber.
D) channel captain
2) The primary difference between retailers and wholesalers is that:
A) retailers sell consumer goods, while wholesalers sell industrial goods.
B) retailers operate in local areas, while wholesalers operate over a wide geographic area.
C) retailers sell to final consumers, while wholesalers sell to other organizations.
D) retailers get a commission, while wholesalers donít.
3) Those organizations that assist in the movement of goods and services from producer to customers are:
A) directed marketers.
B) distributive specialists.
C) marketing intermediaries.
D) supplementary marketers.
4) Operations management refers to activities managers perform to help their firms produce:
A) technical services.
B) goods, rather than services.
C) both goods and services.
D) financial data.
5) __________ is the process of selecting a geographic location for a company's operations.
A) Localization analysis
B) Facility location
C) Economic geography
D) Geographic appraisal
6) ________ examine the data prepared by ________ and then make recommendations to top management regarding strategies for improving the firm.
A) Accountants; financial managers
B) Accountants; bankers
C) Financial managers; accountants
D) Financial managers; bankers
7) All of the following are primary areas of concern for financial managers except:
B) inability to recruit qualified workers.
C) poor control over cash flow.
D) inadequate expense control.
8) Acquiring funds through borrowing represents:
A) debt financing.
B) venture capital.
C) speculative capital.
D) equity financing.
9) Long-term financing would normally be used to purchase:
D) highly liquid assets.
10) Equity financing comes from the ________ of the firm.
11) The ___________ is the most common form of business ownership.
C) joint venture.
D) sole proprietorship
12) Any debts or damages incurred by a firm organized as a sole proprietorship are:
A) the sole responsibility of the owner.
B) limited to the amount the owner has invested in the firm.
C) paid for out of a reserve contingency fund that sole proprietors are required by law to set up.
D) normally covered by liability insurance.
13) The limited liability provided to limited partners means that they are not responsible for the debts of the business beyond:
A) the firm's total assets.
B) the amount they have invested in the company.
C) the percentage of profits they are entitled to earn.
D) their total personal assets.
14) The form of business ownership that is best suited to raising large amounts of money for expansion is the:
A) sole proprietorship.
15) A ____________ is the share of profits or percentage of sales a franchisee pays to a franchisor.
16) ____________ is the management function that involves determining whether an organization is progressing toward its goals, rewarding employees for doing a good job, and taking corrective action when they are not.
17) Which of the following would be a concern addressed in a strategic plan?
A) Should the firm make a long-term commitment to expand into new markets?
B) Which specific jobs to assign to each employee.
C) How much output should be produced this week in a given production facility?
D) Which software package should the firm use to manage the payroll?
18) A(n) ________________ is a visual device which shows relationships among people and divides the firmís work.
A) organization chart
B) Venn diagram
C) corporate tree
D) Gantt chart
19) Which of the following statements about leadership styles is most accurate?
A) A manager should choose one style and use it consistently.
B) Managers have no control over the leadership style they use.
C) Effective managers often use a variety of leadership styles.
D) Managers should always start with an autocratic style, but can gradually switch to a more democratic approach if workers earn their trust.
20) Which of the following statements comparing todayís workers with those from earlier eras is most accurate? Compared to earlier workers, todayís employees are:
A) more loyal to the firm.
B) less educated and less self-directed.
C) more willing to leave the firm to seek better opportunities.
D) more likely to need direct guidance and direction from their managers.