6.

After a purchasing specialist has determined that s/he has selected the right
supplier for a job, what do s/he and the supplier develop?
A. Invoice
B. Purchase agreement **
C. Request for bids
D. Blanket purchase order

* 7. What kind of team would take full responsibility for an entire line of
products?
A. Project team
B. Quality circle
C. Work team **
D. Short-term committee

16. What do individuals often identify when assessing their personal strengths
and weaknesses?
A. Benefits
B. Careers
C. Interests **
D. Risks

* 40. The price of raw materials used in manufacturing a product was double
what had been projected for the year. Which of the following could the
business determine by analyzing its financial information:
A. Variances **
B. Equipment costs
C. Supply and demand
D. Errors in forecasting

98. What is one benefit that the Internet provides consumers?

A. Makes it easier to comparison shop **
B. Provides a way to promote products
C. Lessens the need for intermediaries
D. Reduces information overload

test 2

15. You have been asked to quickly locate information comparing the number
of home foreclosures in Arkansas in 2000 with those in 2010. Which of the
following searches should yield the fastest, most relevant search results:
A. "home foreclosures"; Arkansas; years: 2000 OR 2010 **
B. "home foreclosures in Arkansas in 2000 OR 2010"
C. Arkansas home foreclosures between 2000, 2010
D. "home foreclosures; Arkansas"; "2000 OR 2010"
* 23. When the Silvers purchased their new car, the dealership representative
sold their contract to another company in exchange for cash. To what type of
business would the dealership have sold the Silvers' contract?
A. Commercial bank
B. Savings and loan association
C. Finance company **
D. Credit union

* 50. A job applicant who writes to a business that is advertising positions

available may include in the letter an offer to telephone the business at a
certain time in order to
A. discuss salary and benefits.
B. provide personal information.
C. schedule an interview. **
D. ask questions about the company.

* 55. Patrick wants to keep a certain amount of his money in a safe place in
which he can earn interest on his savings, and also be able to withdraw his
funds without experiencing sizable financial penalties. In what type of financial
institution should Patrick consider placing his money?
A. A holding company
B. The stock market
C. A retirement fund
D. A retail bank **

* 60. Which of the following is an example of an appropriate attitude for a job

applicant to have about a job interview:
A. I can do any job that I'm asked to do.
B. I have skills that this company could use. **
C. I think this company would be lucky to get me.
D. I know all about this company and its products.

* 64. Once you get organized, in order to stay that way you will probably have
to
A. work harder.
B. reorganize frequently.
C. change your habits. **
D. have help.

* 73. Electronic sensors, closed-circuit television, locked display cases, and

security guards are security devices used to help businesses prevent
A. pilferage.
B. shoplifting. **
C. burglary.
 D. fraud.

* 88. Individuals have the right to provide additional information about their
income status and payment history when
A. hiring a financial planner.
B. opening a checking account.
C. estimating their tax liability.
D. validating their credit history. **

test 3
* 37. Which of the following would be most likely to help you to determine
whether you can be successful in a particular line of work:
A. Talking to someone who is currently employed in this field
B. Asking your counselor about opportunities in the field
C. Contacting businesses that are part of the industry
D. Taking courses required of those who do this kind of work **

* 48. Which of the following is not a good technique for participating in a staff
meeting:
A. Understand the goal of the meeting prior to its start
B. Contribute at least one opinion to every staff meeting in which you
participate **
C. Avoid arguing with other participants, even if you strongly disagree with
their point of view
D. Follow the instructions of the group leader, even if you have a better idea
for organizing the meeting

* 49. Which of the following is a guideline for effective verbal communication:

A. Keep the voice at the same pitch
B. Use speech mannerisms
C. Try to avoid eye contact
D. Use gestures for emphasis **

* 51. Which of the following information should be included in the inside

address section of a business letter:
A. Message
B. Subject
C. Date
D. Title **

* 75. Which of the following is a characteristic of a business-format franchise:

A. The name of the business is chosen by the franchisee.
B. Products are bought directly from the supplier.
C. It is the least popular franchise arrangement.
 D. Continuous assistance is provided by the franchisor. **

* 86. Calculate Jason's gross earnings for the pay period if his net pay is
$796.84, his total tax obligation is $157.27, his medical insurance is $45.00, and
his union dues are $15.00.
A. $894.11
B. $579.57
C. $984.11
D. $1,014.11 **

* 91. Which of the following U.S. laws relates to information management:

A. The Sarbanes-Oxley Act **
B. The Sherman Anti-Trust Act
C. The Landrum-Griffin Act
D. The Taft-Hartley Act

test 4

* 19. Businesses often ask a new employee's coworkers to help __________

the new employee.
A. question
B. supervise
C. test
D. train **

* 28. Burkhart Manufacturing is implementing a new, company-wide computer

system. Nadine is in the process of identifying the skills that will be needed to
manage the information and maintain the various software applications. What
function of management is Nadine focusing on?
A. Staffing **
B. Controlling
C. Training
D. Planning

* 34. What do most businesses maintain to help them plan future sales and
promotional activities?
A. Advertising proofs
B. Customer records **
C. Inventory systems
D. Operating procedures

* 39. An economy with a high unemployment level tends to have

A. a high supply of money.
 B. a lower rate of inflation. **
C. fewer monetary policies.
D. rapid GDP growth.

* 53. To establish weekly work priorities, employees should consider

developing a list of
A. short-term accomplishments.
B. routinely performed tasks.
C. critical activities. **
D. long-term goals.

* 54. What risk is being avoided when financial institutions use cloud
computing?
A. Pure risk
B. Return on investment risk **
C. Loss of customers risk
D. Speculative risk

* 58. Which of the following is a type of expense incurred by business other

than an operating expense:
A. Cost of living
B. Retained earnings
C. Lost income
D. Cost of goods **

* 61. As part of its knowledge-management program, a business uses a special

computer application to help detect and record unexpected issues that occur
during the production process. This program allows many staff members to
obtain and share information to resolve the problem quickly. This is an
example of a business effectively using
A. a public domain database.
B. mind-mapping software.
C. incident-management software. **
D. an accounting database.

* 81. Ken is a manager for a local company. He has collected bids from several
area trucking companies and is currently comparing them with the invoices of
the company's current trucking service to determine which one is the best
transportation vendor for the company to use. Ken is analyzing business data
in relation to
A. product management.
B. distribution. **
C. financial resources.
 D. production.

* 95. As a manager, Pablo is taking steps to correct a problem that is affecting

the business's productivity. Which of the following types of control is Pablo
using:
A. Functional
B. Preliminary
C. Contingency
D. Rework **

* 100. Which of the following is not a main factor in a business's site selection
decision:
A. Community
B. Media **
C. Costs
D. Labor

test 5

* 36. Why is it important for business employees to follow established security

procedures?
A. To avoid the risk of accidents
B. To create a pleasant facility
C. To reduce the possibility of loss **
D. To develop a healthy environment

* 52. Which of the following is an effective technological tool for

businesspeople to use to share explicit knowledge simultaneously with
coworkers who are in different geographic locations:
A. Filters
B. Webcam **
C. Hyperlinks
D. Kiosk

* 59. Which of the following marketing functions often helps a business create
an image:
A. Promotion **
B. Advertising
C. Public relations
D. Selling
* 62. A production supervisor provides a new line worker with information
about how to assemble an item. What management function is the production
supervisor performing?
A. Directing **
B. Staffing
C. Organizing
D. Planning

* 80. What should the first section of an executive summary contain?

A. An acknowledgement of the report's sponsors
B. A recommended course of action
C. A letter of authorization
D. A statement of the report's purpose **

* 85. When a company uses computer software to assess the risk levels
associated with alternative actions in a variety of business situations, it is
conducting
A. qualitative research.
B. product feasibility study.
C. top-down forecasting.
D. what-if planning. **

* 86. On what type of purchase order are you most likely to find the following
information: This order covers the MRE Manufacturing Company's purchase of
«" rubber gaskets, Model # 62376 metal washers, and ?" PVC piping beginning
April 10, 2012 through March 31, 2013. The prices stated in your quotation
dated January 31, 2010 are effective until March 31, 2013.
A. Custom
B. Blanket **
C. Service
D. Referral

test 6
* 3. Which of the following is a legal consideration for a business's
operations-management function:
A. Determining how to invest company resources
B. Following local fire ordinances **
C. Adhering to advertising laws
D. Pricing products fairly

* 8. A business can prevent its trade secrets from further disclosure to third
parties by asking the court to issue a(n)
A. injunction. **
B. warrant.
 C. appeal.
D. contract.

* 24. If all of the individuals who own a business share unlimited liability for
the business's losses, these individuals are part of a(n)
A. private corporation.
B. general partnership. **
C. "S" corporation.
D. public corporation.

* 30. Jim was recently hired to manage sport events because his previous
employer said that "Jim tried to improve his performance with each new
challenge and set the standard for his coworkers to achieve." Jim
demonstrates the trait of
A. competition. **
B. aggressive behavior.
C. negotiation.
D. time management.

* 67. Certificates of deposit and collectibles are types of

A. securities.
B. accounts.
C. investments. **
D. earnings.

* 68. The MIB Company uses protective computer-software programs to

minimize losses associated with its customers' financial transactions. It is
managing risks associated with
A. security. **
B. purchasing.
C. overhead.
D. performance.

* 79. When negotiating terms with a vendor, a business states that it wants all
orders shipped within 24 hours of order placement. What negotiating tactic is
the business using?
A. Bargaining
B. Limited authority
C. Deadline driven **
D. Silence

* 83. Which of the following is a characteristic common to all integrated

software packages:
A. Calculates breakeven points
 B. Performs interrelated functions **
C. Requires minimal training
D. Includes forecasting tools

* 87. Which of the following is an example of an activity associated with the

directing function of management:
A. A manager coordinates the tasks of a cross-functional work team.
B. Pedro interviews several applicants for an open position in the finance
department.
C. A manager disciplines an employee for inappropriate behavior in the
workplace. **
D. Carmen recommends changes to increase outputs on the production line.

94. The primary purpose of a research report is to

A. support business decisions.
B. organize a problem.
C. summarize gathered information. **
D. establish objectives.

* 96. Which of the following is a technique for effectively beginning an

employment interview:
A. Speak loudly
B. Tell a joke
C. Give name clearly **
D. Take the initiative

test 7
* 20. Which of the following is NOT a name for a medium of exchange accepted
and backed by the government as payment for goods and services:
A. Credit cards **
B. Legal tender
C. Currency
D. Bonds

* 53. Businesses often maintain records about vendors' pricing, delivery terms,
and credit policies and use the information in the records to
A. monitor inventory levels.
B. negotiate higher discounts.
C. award purchasing contracts. **
D. follow safe shipping procedures.

* 93. Which of the following is a natural risk that businesses should consider
when establishing their information-management procedures:
A. Tax audit
 B. Fire **
C. Technology
D. Privacy

test 8
* 8. Businesses often maintain records about vendors' pricing, delivery terms,
and credit policies and use the information in the records to
A. monitor inventory levels.
B. negotiate higher discounts.
C. award purchasing contracts. **
D. follow safe shipping procedures.

* 29. What activity helps businesses identify the various opportunities for
continuous quality improvement?
A. Monitoring data **
B. Setting goals
C. Establishing budgets
D. Rationing resources

* 34. Which of the following is an activity associated with the organizing

function of management:
A. Inspecting the quality of outputs
B. Developing a mission statement
C. Determining the division of labor **
D. Providing employees with feedback

* 38. A type of business ownership in which one or more of the owners does
not have full liability is called a
A. sole proprietorship.
B. general partnership.
C. limited partnership. **
D. service organization.

* 40. Having clear customer relationship management goals before putting a

program into place helps businesses to avoid
A. having unsatisfied customers.
B. purchasing irrelevant technology. **
C. having to lay off employees.
D. spending any money.

* 89. What is an important question that a manager must consider when hiring
a new employee?
A. What are the company's product quality standards?
B. What is the company's vision?
 C. How should the workload be distributed?
D. How will the company compensate this worker? **

* 100. When RWQ Corporation could not obtain insurance coverage to cover a
specific type risk from commercial insurance companies, it formed an
insurance company to provide coverage for the risk. This is an example of a
company managing its risk through a(n)
A. organic entity.
B. captive insurer. **
C. generic provider.
D. lending institution.

test 9

* 37. What organization helps union locals to become established, recruit new
members, and negotiate with management?
A. Shop stewards
B. Federal government
C. National union **
D. National Labor Relations Board

* 43. Which of the following will foster a business's ability to adapt to changing
markets:
A. Authoritarian leadership
B. Reactive management
C. Proactive management **
D. Conservative leadership

* 51. An estimate of a business's income and expenses for a specified period

of time is a(n)
A. income statement.
B. report.
C. balance sheet.
D. budget. **

* 56. Monica has always loved to work with preschool children. She would like
to open a day care center in her area. However, she does not have enough
capital saved at this time. What business activity should Monica address first?
A. Accounting
B. Information management
C. Financial analysis **
D. Marketing
* 64. What is important to do when giving verbal directions to make sure the
audience understands?
A. Maintain eye contact
B. Ask questions **
C. Use gestures
D. Explain information

* 70. The belief that profitable sales volume will result from giving customers
quality products at fair and reasonable prices is part of the
A. consumers' movement.
B. planning process.
C. marketing mix.
D. marketing concept. **

* 82. Ian's employer electronically places Ian's paycheck directly into his bank
checking account every pay period. In what column on Ian's bank statement
will he find these transactions?
A. Deposits and debits
B. Withdrawals and debits
C. Deposits and credits **
D. Withdrawals and credits

test 10
* 8. What do business employees often do to motivate customers to make the
decision to buy?
A. Explain the advantages **
B. Listen to questions
C. Dismiss any objections
D. Offer many substitutes

* 17. Many computer software programs help businesses determine their

levels of business risk, which is helpful when they develop
A. content theories.
B. contingency plans. **
C. endorsement records.
D. monetary regulations.

* 18. Which of the following is a reason that someone might want to settle a
legal case:
A. To avoid a judge's approval
B. To avoid a costly trial **
C. To damage someone's reputation
 D. To have a lengthy trial

* 22. Which of the following is one type of information needed to compute the
gross profit of a business:
A. Income from sales **
B. Net profit
C. Market share
D. Operating expenses

* 23. Althea just received her first paycheck at work. She's excited, but as she
looks at her pay stub she gets confused. She wants to know how much money
she made in this pay period, but there are so many different numbers. If Althea
wants to know how much money will actually be deposited in her bank
account, she should look at the
A. state tax.
B. gross pay.
C. federal income tax.
D. net pay. **

* 37. Jack is a computer programmer who is struggling to fix a glitch with his
company's new computer network. During a get-together with some friends
who also work in technology, Jack brings up his dilemma. His friend Janelle
suggests a process that helped her solve a similar problem that she
experienced a few weeks ago. Two other friends, Tim and Susan, provide some
suggestions as well. In this situation, Jack and his friends are transferring
knowledge by
A. participating in a community of practice. **
B. applying Groupthink strategies.
C. forming a strategic alliance.
D. conducting a formal interview.

* 59. A realistic vision involves attaining __________ results.

A. permanent **
B. complex
C. noble
D. conditional

* 62. Which of the following is a limit to economic freedom in a private

enterprise system:
A. Personal choices **
B. Private property
C. Profit motive
D. Pricing systems
* 63. Functional specialist, data scientist, and business process manager are
__________ positions.
A. human resources management
B. office management
C. general management
D. business analytics **

* 74. Customer complaints and returns can increase the business's costs by
A. increasing interest payments. **
B. increasing list prices.
C. decreasing trade discounts.
D. decreasing functional discounts.

* 80. People may think you're dishonest, nervous, embarrassed, or bored if you
A. talk a lot.
B. don't make eye contact. **
C. use concise communication.
D. don't use body language.

* 82. Which of the following is the type of action that a business is taking when
it continuously monitors the laws that affect its operations for the purpose of
minimizing risk:
A. Preventative **
B. Corrective
C. Reactive
D. Remedial

* 94. Cassandra is a buyer for a department store chain. On Tuesday, she

placed a seasonal order with an apparel vendor without providing specific
models, sizes, colors, or ship dates. What type of order did Cassandra place?
A. Standing
B. Special
C. Blanket **
D. Rush

* 96. A country that can produce a good or service at a lower cost than another
country has
A. comparative advantage.
B. domestic needs.
C. absolute advantage. **
D. international interdependence.
* 97. What management function is responsible for coordinating resources in
ways that maximize efficiency?
A. Organizing **
B. Staffing
C. Directing
D. Controlling

test 11
2. A distinguishing characteristic of credit unions is that they
A. provide more services than banks.
B. offer only credit card services.
C. operate as cooperative financial institutions. **
D. are unions for people in the banking industry.

* 8. A project manager has determined that the team completed the

software-development phase of the project four days ahead of schedule. What
control activity is the project manager performing?
A. Changing a process
B. Evaluating a time constraint
C. Tracking a milestone **
D. Assessing a setback

* 31. When developing a request for quotation (RFQ) for prospective vendors,
a business should always include
A. prices and a purchase order.
B. specifications and deadlines. **
C. guidelines and discounts.
D. statistics and a checklist.

* 45. A collaborative work environment contributes to an employee's growth

because s/he
A. views the work environment positively.
B. earns more income.
C. learns from coworkers. **
D. has the opportunity to work from home.

* 46. One of the disadvantages of private enterprise is

A. unequal distribution of income. **
B. limited government control.
C. pricing system.
D. competition.
* 49. The Prater Corporation wants to expand its market share by 6% next year.
What type of goal has the company set?
A. Financial
B. Ideological
C. Organizational **
D. Input

* 56. What type of money is recorded in the cash receipts column of a cash
flow statement?
A. Credit
B. Cost of goods
C. Collected **
D. Expenses

* 61. Many organizational changes fail because

A. managers give their employees too much time to adjust to changes.
B. big changes cannot be executed throughout entire companies.
C. most people are resistant to change.
D. companies do not properly execute the change-management lifecycle. **

* 69. Liam wrote and submitted a report to management describing

relationships between actions and the probable results of those actions. What
type of research report has Liam written?
A. Cause and effect **
B. Interpretive
C. Jury of executive opinion
D. Argumentative

* 72. Wellston Industries wants to compare a current business situation with a

target situation. Which of the following tools will help Wellston obtain the
information that it wants:
A. Critical path study
B. Mind map
C. Decision tree
D. Gap analysis **

* 75. The category of GDP called gross private domestic investment includes
A. all purchases of capital goods. **
B. all exports of goods and services.
C. purchases made by private individuals.
D. inventories held over from previous years.
* 78. Which of the following examples describes an ethical leader practicing
persistence and patience:
A. A team captain yells at her teammates to motivate them.
B. Marie encourages her team not to take shortcuts to achieve results. **
C. Your teacher always grades and returns tests on time.
D. Jalen spends time giving back to organizations in his community.

* 91. Adian is conducting online research for a marketing project at work. What
web-based tool will help Adian save and organize the websites that contain the
relevant information he needs for his final report?
A. Personal intranet connection
B. Notebook with color-coded dividers
C. Word-processing memo template
D. Browser bookmarking applications **

* 97. Which of the following is an example of personal information that should

be included in a résumé:
A. Year of graduation
B. Telephone number **
C. Rate of pay
D. Names of parents

test 12
* 7. Claire is the owner of a small consulting firm and has two employees
working for her. What type of insurance can Clair purchase to limit her tort
liability?
A. Professional **
B. Property
C. Workers' compensation
D. Economic protection

* 9. Which of the following is an organizational vision:

A. Penelope's department wants to offer the best customer service in the
state.
B. Margaret's company wants to be the best sporting goods store in the
country. **
C. Franco wants to get his project done by the end of the week.
D. Omar's shoe store plans to increase sales by 15% this quarter.

* 27. Simone's business doesn't advertise much. Instead, she relies on happy
customers to tell their friends, family, and coworkers about her company.
Simone's business uses __________ to gain customers.
A. advocacy **
B. relationship buying
 C. corporate culture
D. business process management

* 33. To implement a successful knowledge-management system in the

workplace, it is important to
A. focus more on organizing knowledge than gathering it.
B. gain the cooperation of employees and support from ownership. **
C. select three or more employees to serve as knowledge managers.
D. develop an organizational reward structure that focuses on financial
gains.

* 41. A project manager has determined that the team completed the
software-development phase of the project four days ahead of schedule. What
control activity is the project manager performing?
A. Changing a process
B. Evaluating a time constraint
C. Tracking a milestone **
D. Assessing a setback

* 43. What technological tool can help businesses understand the types of
knowledge that employees need to perform their jobs efficiently?
A. Probability chart
B. Accountability matrix **
C. Systems register
D. Navigation log

* 45. Effective managerial control often involves

A. providing incentives.
B. setting long-term goals.
C. taking corrective action. **
D. assigning tasks.

* 60. Rob has a job interview this afternoon. In the morning, he goes over his
other job offers to figure out which job he will accept (and what the salary and
benefits are) if this employer doesn't offer him a position. Rob is developing
his
A. BATNA. **
B. role.
C. walk-away point.
D. style.
* 70. In some cultures, it is common for businesspeople to discuss business
matters during meals, but Canadians typically do not. This is a cultural issue
related to
A. dining etiquette. **
B. negotiating style.
C. language barriers.
D. cognitive intelligence.

* 71. Nadia's assistant, Roger, rarely does what he's supposed to do. He
routinely forgets to schedule her appointments, orders the wrong supplies for
her office, and misses work at least a few times a month. An employee like
Roger is an example of a(n) __________ risk.
A. financial
B. hazard
C. strategic
D. operational **

* 79. Which of the following is a tool that businesses should use to set their
overall organizational goals:
A. Mission statement **
B. Financial budget
C. Marketing plan
D. Productivity benchmarks

Test 13
* 3. A manager in a manufacturing facility must rely on her/his skills and
intuitions; however, a computer program that uses gathered knowledge to
reinforce her/his choices can be a great tool. This program is known as a(n)
A. expert system.
B. intranet.
C. spreadsheet.
D. decision support system. **

* 10. In a detailed document, Rachel explains the possible implications of

implementing a cooperative advertising program for her employer's major
customers. In this situation, Rachel developed a
A. request for proposal.
B. troubleshooting proposal.
C. sales analysis.
D. feasibility report. **

* 27. To develop new products that accommodate changing markets, a

business should
A. review its profit margins on a continuous basis.
 B. adopt a laissez-faire organizational structure.
C. develop licensing programs with business partners.
D. implement innovative management practices. **

* 50. Increased export trade might result in an increase in

A. sales taxes.
B. employment opportunities. **
C. inflationary trends.
D. interest rates.

* 55. Making employment information available to job seekers in many

locations at the same time is one way that computer technology impacts
A. business development.
B. human resources management. **
C. corporate communications.
D. organizational decision-making.

* 75. Which of the following is a true statement regarding data integrity and
security:
A. It can be helpful to hire a data security specialist. **
B. Businesses are not allowed to sell customer information.
C. Data security programs are strictly monitored by the government.
D. All businesses have similar data security needs.

* 85. The practices of not relying on inspection to achieve quality and lowering
costs by working with just one supplier are part of which quality control
technique?
A. Continuous improvement
B. Six Sigma
C. Lean operations
D. Total quality management **

test 14

* 19. Which of the following strategies can help make data change easier:
A. Ignoring errors during implementation
B. Communicating the benefits of the data change **
C. Informing staff that data changes will continually occur
D. Rolling out data changes during a busy time of year

* 41. Before beginning a new project, a manager who uses business process
thinking would most likely
A. examine the financial implications of the project to make sure it will be
profitable.
 B. explain to employees the end result that the manager wants to achieve
from the project.
C. create a list of things that employees should avoid doing during the
project.
D. determine the steps that employees need to follow to complete the
project. **

* 62. Which of the following is an ethical issue that relates to knowledge

management in the workplace:
A. The president of a small company asks their executive team for input
regarding a business decision.
B. A project leader requests that each member of their team provide a status
report to the group.
C. An employee deliberately doesn't share information with management that
will help the company meet its goals. **
D. The sales manager of a manufacturing firm shares the firm's quarterly
sales goals with the sales staff.

* 73. The cost of employing product inspectors is a(n) __________ cost.

A. internal failure
B. prevention
C. appraisal **
D. external failure

* 81. One of the benefits of setting goals that will help you in your relationships
with others is that setting goals
A. gives you a way to measure your progress.
B. helps you understand yourself. **
C. helps you stay on task.
D. raises your level of self-esteem.

* 82. Reviewing activity status reports helps a project manager

A. develop specifications.
B. create barriers.
C. determine project scope.
D. control the project. **

* 85. Brandon, an accountant, wants to expand his professional network and

stay up to date in his industry. However, he doesn't have time to commit to
attending events on a weekly basis. Which of the following resources would
best help Brandon achieve these goals:
A. Classes/Seminars
B. Trade journals/periodicals
 C. A professional association **
D. A social group outside of work

* 86. What should an electronics store do when they learn that the new iPhone
is expected to be more popular than ever?
A. Build up anticipatory inventory **
B. Lower the price of the iPhone
C. Use just-in-time inventory
D. Get rid of raw materials

* 89. Knowledge is __________ information.

A. the raw, unprocessed form of
B. less important and useful than
C. understanding how to use **
D. more tangible and identifiable than

* 95. Jillian is working on a knowledge management project. Her company

wants to capture and understand how and why its managers use a certain
collaboration software at work. To help her retrieve this information, Jillian
carefully observes managers going about their daily routines using the
software in question. She also asks the managers various questions about the
software, such as "How does this tool make your life easier?" Jillian is
attempting to retrieve __________ knowledge.
A. embedded **
B. tacit
C. explicit
D. understood

* 96. Chandra wants to develop a personal budget. What is the first step she
should take?
A. Establishing her goals **
B. Estimating her income
C. Determining regular expenditures
D. Allocating income

* 99. Under what circumstances would a company adopt a matrix

organizational structure?
A. It has offices in several cities.
B. It has mostly inexperienced employees.
C. It frequently uses cross-functional teams. **
D. It has fewer than 50 employees.
test 15

* 15. The importance of following legal procedure is to provide each party with
A. specific duties.
B. unique rights.
C. due process. **
D. formal requests.

* 19. David is meeting with a group of his employees to discuss what types of
goods and services they need to successfully perform their jobs. This is often
the first step in the _______ process.
A. marketing
B. receiving
C. buying **
D. selling

* 27. What type of security problem does a business have if its employees
routinely take pens and paper home for personal use?
A. Robbery
B. Shoplifting
C. Pilferage **
D. Burglary

* 28. What is Claire doing when she reviews a report that compares the
purchase transactions of the company's four largest customers?
A. Analyzing service performance
B. Preparing a purchasing forecast
C. Conducting a sales analysis **
D. Organizing an inventory report

* 31. How can a company hold employees accountable for protecting digital
assets?
A. Encryption software
B. Project management software
C. Background checks
D. An effective laptop security policy **

* 33. Rosa is writing a business letter to Alex Smith, whom she has never met.
Which of the following salutations should Rosa use:
A. To Whom It May Concern:
B. Dear Mr. Smith:
C. Dear Alex:
D. Dear Alex Smith: **
* 35. What is the purpose of key performance indicators (KPIs)?
A. To change the project plan
B. To eliminate risk
C. To communicate the project plan to stakeholders
D. To measure project progress **

* 36. Limited liability is a characteristic of what form of business ownership?

A. Sole proprietorship
B. Joint proprietorship
C. Partnership
D. Corporation **

* 39. One of the ways that a business can increase its profits is by
A. charging higher prices.
B. increasing worker efficiency. **
C. hiring more workers.
D. extending working hours.

* 45. Daniel is preparing to request approval for his project from senior
management. What document does he need to develop and submit?
A. Project charter **
B. Project management plan
C. Business case
D. Project statement of work

* 46. What is the link that connects producers and consumers so that both
benefit?
A. Marketing **
B. Handling
C. Shipping
D. Purchasing

* 48. Creativity can be helpful when handling customers'

A. charge accounts.
B. inquiries.
C. credit applications.
D. objections. **

* 53. When the TCC Corporation constructed a large warehouse on its

property, it had to ensure that the warehouse met certain structural standards.
In this situation, the corporation had to ensure that the warehouse was in
compliance with
A. building codes. **
B. environmental regulations.
 C. health ordinances.
D. residential zoning laws.

* 54. Edith wants to organize the information in her persuasive paper in a clear,
logical way that's easy for readers to understand. She starts by stating the
dilemma at hand and then explains the answer that she believes will solve the
dilemma. Which method of organizing information is Edith using?
A. Deductive
B. Chronological
C. Problem/Solution **
D. Alphabetical

* 56. Tanner is sending out an online customer satisfaction survey. What

technique can he use to ensure he is protecting customer data?
A. House the data on portable drives
B. Only ask for the information he needs the most **
C. Store the data for any future use
D. Refrain from sharing the nature of the survey

* 65. Which of the following is an action that threatens a company's ability to

maintain its trade secrets:
A. Copyright reform initiatives
B. Reverse engineering **
C. Process fragmentation
D. Systematic neutralizing

* 66. A manufacturing company reviews its production processes on a regular

basis to detect inconsistencies. What is the manufacturing company doing to
improve quality?
A. Performing audits **
B. Organizing activities
C. Setting goals
D. Scheduling tasks

* 67. In oral presentations, a closing method used specifically for getting the
audience to do something is
A. making an appeal for action. **
B. making a comparison.
C. using humor.
D. using a quotation.
* 69. Radio-frequency identification (RFID) technology is becoming more
popular than barcodes in supply chain management because it does not
require a direct line of sight, can be read at greater distances, and
A. has no chance of privacy problems.
B. can be read much faster. **
C. is less expensive.
D. does not have reader collision concerns.

* 70. Before a bar of soap is bought by a customer, it goes through a long

production process. First, the raw materials are shipped to a manufacturer that
blends the soap and molds it into bars. Then, the bars are sent to a packaging
plant to be put into boxes and printed with labels. Finally, the bars are shipped
to distributors throughout the country where they are sold to customers. The
relationship among the raw materials distributor, the soap manufacturer, the
packaging plant, and the stores where the soap is sold can be described as a
A. route of production.
B. distribution network.
C. supply chain network. **
D. manufacturing route.

* 71. A plant manager or a department head would be an example of which

level of management?
A. Middle **
B. Operating
C. Supervisory
D. Top

* 72. While performing her job, Kendra figured out how to solve a problem that
has been affecting her department. Which of the following is the most efficient
way for Kendra to share this knowledge with her coworkers:
A. Email **
B. Company website
C. Relational database
D. Phone call

* 73. Kevin is planning to paint a house. He draws a simple graph that shows
the sequence of tasks that will be done from beginning to end of the project.
For example: 1) Buy supplies, 2) Prepare house for painting, 3) Paint house,
and so on. This is an example of a
A. network diagram. **
B. work breakdown structure.
C. project charter.
D. scope management plan.
* 77. An organization with a wide span of control usually
A. has a lack of middle managers. **
B. uses a divisional organizational structure.
C. does not give managers enough direct reports.
D. gives little control to the CEO.

* 78. When a marketing manager goes on vacation, the marketing staff does
not know what tasks to do and does not feel like it can work ahead on
anything. This example illustrates that
A. directing motivates employees.
B. directors must build group dynamics.
C. directing is a continuous process.
D. directing is the starting point of action. **

* 87. Quality management is a

A. philosophy. **
B. technique.
C. six-step process.
D. tool.

* 91. Which of the following quality management frameworks uses martial arts
terminology to identify individuals necessary for its implementation:
A. ITIL
B. Six Sigma **
C. CMMI
D. Quality Max

* 92. Which of the following are characteristics of tactical planning:

A. Short-range and specific **
B. Long-term and vague
C. Long-term and specific
D. Short-range and vague

* 99. Which of the following is an example of increased financial risk for a

company with poor business ethics:
A. Increased productivity
B. Decreased company value **
C. Decreased labor costs
D. Increased sales

* 100. What is a primary advantage of developing a work breakdown structure

(WBS) to manage large projects?
A. Eliminates unexpected circumstances
B. Reduces the need to set project milestones
 C. Decreases the need to manage each task
D. Prevents the duplication of work **

test 16
* 3. A primary activity in managerial control is
A. evaluating. **
B. delegating.
C. coaching.
D. forecasting.

* 8. A company is facing negative returns. Which stage of production is the

company in?
A. Second
B. Third **
C. Fourth
D. First

* 12. Incorrect information on an individual's credit report may hinder his/her

ability to
A. earn interest on stock holdings.
B. withdraw money from a savings account.
C. pay monthly credit card balances.
D. obtain a bank loan. **

* 28. Maxton Mart is being pressured by its vendors to pay for inventory it
purchased more than 30 days ago. However, Maxton Mart has not received its
accounts receivable from customers. What business record has Maxton Mart
failed to monitor successfully?
A. Balance sheet
B. Income statement
C. Cash flow **
D. Open to buy

* 29. What is most likely to happen if a purchaser negotiates lower prices for
raw materials?
A. The company will be limited in which type of materials can be purchased.
B. The company will be able to purchase more materials and increase
production. **
C. Increases in productivity will lead to higher costs.
D. Communication processes will be improved.

* 30. Sasha's science teacher is explaining lab directions to the class. They'll
be performing a complicated experiment with many steps that will take about a
week. The next day, Sasha tries to remember a step of the directions, but she
can't. Which step of following oral directions should Sasha have followed?
A. Eliminate distractions
B. Take notes **
C. Make eye contact
D. Acknowledge directions verbally or nonverbally

* 39. Jolie is working in a group in her business class. If she wants to

contribute to her group's discussion in a meaningful way, what should she do?
A. Summarize what's been discussed in the conversation **
B. Let someone know right away if his/her idea is bad or unrealistic
C. Wait for other people to lead the conversation when it gets silent
D. Ask questions as a way of judging someone else's suggestion

* 46. According to a company's most recent statement of cash flows, its cash
flow from operations for the most recent year was $1,375,400. The net cash
used by investing was an outlay of $690,000. The net cash spent on financing
was $140,300. What was the company's free cash flow?
A. $686,400
B. $549,700
C. $545,100 **
D. $830,300

* 48. What can a business do if it is exposed to risks that commercial

insurance companies do not cover?
A. Establish a risk-management committee
B. Acquire a professional association
C. Create a trade union
D. Form a captive insurance company **

* 49. What are the three main purposes of oral presentations?

A. To inform, inspire, and entertain
B. To inform, persuade, and entertain **
C. To inform, persuade, and instruct
D. To interview, debate, and entertain

* 69. What management function is responsible for coordinating resources in

ways that maximize efficiency?
A. Organizing **
B. Staffing
C. Directing
D. Controlling

* 76. An organization's product goals often involve setting standards for

 A. the variety of its goods and services. **
B. behavior in the workplace.
C. expenses and income.
D. the target market's expectations.

* 79. When entering into a contract with another business, an agent is the party
that represents the
A. consultant.
B. defendant.
C. opposition.
D. principal. **

* 84. One reason that businesses use a matrix organizational design is to

A. share human resources. **
B. improve employee productivity.
C. segment areas of expertise.
D. standardize business tasks.

* 87. Which of the following factors has the greatest effect on a consumer's
buying behavior:
A. Cultural influences **
B. Situational influences
C. Individual influences
D. Social influences

test 17
* 3. If the cash from operating activities is consistently greater than the
company's net income, the company's net earnings are of a(n) __________
quality.
A. high **
B. low
C. moderate
D. excessive

* 4. A 12-screen movie theater recently opened in your neighborhood. Just a

couple of months after it opened for business, the old single-screen drive-in
movie theater nearby went out of business. This is an example of
A. creative advantage.
B. competitive advantage.
C. creative destruction. **
D. competitive destruction.
* 9. Alexis and her team are working on a new project proposal to show their
boss. She knows that doing the project their way will be costly and
time-consuming, but she also knows that the results will be great. She and her
team decide to first present the benefits of the project and then draw the
conclusion that investing company time and money would be a good idea.
Alexis hopes to convince her boss using
A. inductive organization. **
B. deductive organization.
C. chronological order.
D. geographical order.

* 10. Jessica must develop an analytical report that assesses the product
opportunities for 18- to 34-year-old sports enthusiasts in the greater Seattle
area. What type of analytical report is Jessica writing?
A. Market analysis **
B. Troubleshooting
C. Justification
D. Feasibility

* 26. Which of the following is an ethical issue resulting from internal risks:
A. Boycotting the use of an insurance company that has a reputation for not
correcting its mistakes
B. Revealing discounted expenses
C. Selecting an insurance company that considers paying fines a cost of
doing business
D. Providing incomplete data for audits **

* 44. Which of the following is vital to the successful operation of a private

enterprise system:
A. Competition **
B. Mechanization
C. Production
D. Distribution

* 56. Serena is determining the specific activities needed to carry out a

year-long advertising campaign. Serena is engaged in __________ planning.
A. tactical **
B. strategic
C. contingency
D. long-term

* 81. The Colbert Company ships 19 cases of model number 328 bolts to SOA
Manufacturing Company every other week. This is an example of a(n)
__________ purchase order.
 A. seasonal
B. advance
C. standing **
D. open

* 96. Your interest and enthusiasm can help to create a sense of __________
within your work group.
A. cooperation **
B. disagreement
C. security
D. conflict

* 97. Determining a project's feasibility, developing a statement of work (SoW),

creating SMART objectives, and developing a project charter occur during the
__________ stage of project management.
A. initiation **
B. planning
C. execution
D. closure

test 18
* 2. Cassandra is a buyer for a department store chain. On Tuesday, she placed
a seasonal order with an apparel vendor without providing specific models,
sizes, colors, or ship dates. What type of order did Cassandra place?
A. Standing
B. Special
C. Blanket **
D. Rush

* 10. What management function is responsible for coordinating resources in

ways that maximize efficiency?
A. Organizing **
B. Staffing
C. Directing
D. Controlling

* 40. One activity associated with the directing function of management is

A. determining tasks.
B. establishing goals.
C. instructing employees. **
D. interviewing applicants.

* 49. Which of the following is a limit to economic freedom in a private

enterprise system:
 A. Personal choices **
B. Private property
C. Profit motive
D. Pricing systems

* 58. Which of the following information should be included in the inside

address section of a business letter:
A. Message
B. Subject
C. Date
D. Title **

* 75. Jessica must develop an analytical report that assesses the product
opportunities for 18- to 34-year-old sports enthusiasts in the greater Seattle
area. What type of analytical report is Jessica writing?
A. Market analysis **
B. Troubleshooting
C. Justification
D. Feasibility

* 78. Althea just received her first paycheck at work. She's excited, but as she
looks at her pay stub she gets confused. She wants to know how much money
she made in this pay period, but there are so many different numbers. If Althea
wants to know how much money will actually be deposited in her bank
account, she should look at the
A. state tax.
B. gross pay.
C. federal income tax.
D. net pay. **

* 88. A country that can produce a good or service at a lower cost than another
country has
A. comparative advantage.
B. domestic needs.
C. absolute advantage. **
D. international interdependence.

* 96. Customer complaints and returns can increase the business's costs by
A. increasing interest payments. **
B. increasing list prices.
C. decreasing trade discounts.
D. decreasing functional discounts.
* 98. Which of the following is one type of information needed to compute the
gross profit of a business:
A. Income from sales **
B. Net profit
C. Market share
D. Operating expenses

test 19
* 5. Which of the following will foster a business's ability to adapt to changing
markets:
A. Authoritarian leadership
B. Reactive management
C. Proactive management **
D. Conservative leadership

* 6. The belief that profitable sales volume will result from giving customers
quality products at fair and reasonable prices is part of the
A. consumers' movement.
B. planning process.
C. marketing mix.
D. marketing concept. **

* 33. An estimate of a business's income and expenses for a specified period

of time is a(n)
A. income statement.
B. report.
C. balance sheet.
D. budget. **

* 72. Which of the following is the management function that focuses on

matching the appropriate person with the necessary skills for a specific job:
A. Leading
B. Interviewing
C. Coordinating
D. Staffing **

* 85. Monica has always loved to work with preschool children. She would like
to open a day care center in her area. However, she does not have enough
capital saved at this time. What business activity should Monica address first?
A. Accounting
B. Information management
C. Financial analysis **
D. Marketing
* 97. Corsica Steel Mill has developed a new process to reduce the time it
takes to complete a phase of production. To legally protect this new process
from unauthorized use, the company should obtain a
A. trade name.
B. copyright.
C. trademark.
D. patent. **

test 20
* 13. Finance charges are expressed as a(n)
A. annual percentage rate. **
B. monthly percentage rate.
C. annual balance rate.
D. monthly balance rate.

* 15. When analytical reports contain information that readers might disagree
with, writers should back their conclusions with
A. enthusiastic statements.
B. technical statistics.
C. personal opinions.
D. logical arguments. **

* 18. Which of the following statements about the impact of law on business is
accurate:
A. Businesses are governed by law at the local, national, and international
levels. **
B. Businesses are not governed by criminal law because it only applies to
individuals.
C. Businesses should focus on corporate laws enacted and enforced by their
local government.
D. Businesses should focus on ethical rather than legal issues required by
national law.

* 26. Bobbi is searching the Internet for information about business licenses.
Unfortunately, many of the search results are useless to her because they
focus on drivers' licenses. What search terms should Bobbi use to find
information specifically about business licenses?
A. "business license" driver
B. +business +license
C. +business +license -driver **
D. BUSINESS LICENSE
* 29. Mr. Gates owns two successful businesses and would like to open a third.
Which of the following business activities should he consider first:
A. Marketing
B. Accounting **
C. Production
D. Management

* 32. One limitation of project-management software is that it lacks the ability

to
A. track resources.
B. generate reports.
C. sort data.
D. find input errors. **

* 32. One limitation of project-management software is that it lacks the ability

to
A. track resources.
B. generate reports.
C. sort data.
D. find input errors. **

* 38. The Tafoya Company has discovered that the Bremen Company illegally
used Tafoya's trademark. To pursue a legal case for financial compensation,
what should Tafoya's legal counsel do first?
A. Conduct an examination of discovery to interview all parties involved in
the illegal use of the Tafoya trademark.
B. File a formal complaint to the court alleging the Bremen Company's illegal
use of the Tafoya trademark. **
C. Issue a summons requiring the Bremen Company to respond to
allegations of misusing the trademark.
D. Request that a pretrial conference date be set to clarify all the legal issues
that will be discussed during the trial.

* 46. Which of the following best describes a goal of effective supply chain
management:
A. Managing customer relations
B. Reducing inventory **
C. Storing marketing data
D. Planning promotional strategies

* 56. Which of the following is a true statement about projects:

A. They are short-term undertakings. **
B. They rely on traditional management structures.
 C. They create goods, not services.
D. Their processes are more important than their results.

* 72. Which of the following quality-control tools is a graphical representation

of two variables that is used to determine cause and effect:
A. Flow chart
B. Histogram
C. Check sheet
D. Scatter diagram **

* 74. Which of the following is not one of the four main idealized market
structures used in trade theory:
A. Monopolistic competition
B. Perfect competition
C. Monopoly
D. Perfect monopoly **

* 83. A useful communications strategy in project planning is

A. determining how much funding the project will take.
B. assigning responsibility for meeting quality requirements.
C. asking yourself how long each deliverable will take to complete.
D. grouping team members according to type and level of information. **

* 89. An individual with a higher income who pays a larger percentage of

his/her income as taxes than an individual with a lower income is in a
__________ tax system.
A. flat
B. regressive
C. proportional
D. progressive **

* 92. Limited commodities can cause

A. price stability.
B. cost-push inflation. **
C. demand-pull inflation.
D. hyperinflation.