Practice Quiz (Chapters 1- 6)
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers
the question.
1) After considering the textbook's definition of business, how are
1) _______
universities and hospitals different from the organizations described?
A) They typically are not profit-seeking.
B) Their organizational boundaries are narrower than normal.
C) They are not affected by the global environment.
D) They do not produce goods or services.
2) Which of the following is an important element of an organization's
external environment?
A) technological environment
B) political-legal environment
C) sociocultural environment
D) all of the above
2) _______
3) A(n) ________ is a nation's basis for allocating its resources among its
citizens.
A) ownership system
B) capital structure
C) distribution network
D) economic system
3) _______
4) ________ are beliefs about what it right and wrong or good or bad.
A) Motivators
B) Cultures
C) Mores
D) Ethics
4) _______
5) A behavior that does not conform to accepted beliefs and social norms is
defined as ________.
A) irresponsibility
B) unethical behavior
C) ethical behavior
D) business ethics
5) _______
6) Which of the following occurs when someone uses confidential
information to gain from the purchase or sale of stocks?
A) a margin purchase
B) collusion
C) identity theft
D) insider trading
6) _______
7) ________ are people who assume the risk of business ownership.
A) Sole proprietors
B) Directors
C) General partners
D) Entrepreneurs
7) _______
8) What is the most important source of money for new-business
start-ups?
A) banks
B) the SBA
C) grants
D) personal resources
8) _______
9) Which of the following represents the most businesses in the United
States?
A) sole proprietorships
B) corporations
C) cooperatives
D) partnerships
9) _______
10) Which organization most likely has the greatest impact on Asian
countries?
A) EU
B) ASEAN
C) ECOWAS
D) NAFTA
10) ______
11) Which of the following buys products in foreign markets and then sells
them for resale in its home country?
A) exporter
B) importer
C) international firm
D) direct investor
11) ______
12) The world's largest economy is ________.
A) the United States
B) China
C) Germany
D) India
12) ______
13) The manager uses which of the following management processes to
guide and motivate employees to meet the firm's objectives?
A) producing
B) leading
C) controlling
D) planning
13) ______
14) Skills in understanding and getting along with other people are called
________.
A) technical skills
B) conceptual skills
C) motor skills
D) human relations skills
14) ______
15) Objectives that a business hopes (and plans) to achieve are called
________.
A) tactics
B) goals
C) strategies
D) actions
15) ______
16) SWOT analysis allows managers and employees to assess ________.
A) internal opportunities
B) external weaknesses
C) external threats
D) external strengths
16) ______
17) The process of monitoring a firm's performance to make sure that it is
meeting its goals is referred to as ________.
A) planning
B) leading
C) organizing
D) controlling
17) ______
18) In a(n) ________ organization, most decision-making authority is held
by upper-level managers.
A) centralized
B) decentralized
C) democratic
D) free-reign
18) ______
19) The duty to perform an assigned task is called ________.
A) authority
B) delegation
C) responsibility
D) accountability
19) ______
20) ________ is the assignment of a task, responsibility, or authority by a
manager to a subordinate.
A) Centralization
B) Responsibility
C) Delegation
D) Decentralization
20) ______
Answer Key - Practice Quiz 1
1) A
2) D
3) D
4) D
5) B
6) D
7) D
8) D
9) A
10) B
11) B
12) A
13) B
14) D
15) B
16) C
17) D
18) A
19) C
20) C