MGMT 2150 PRACTICE 2 QUESTIONS AND CORRECT
ANSWERS
An accounting firm performs audits for top corporations to ensure they are following all
applicable tax laws. The firm needs to complete this task using a minimum amount of
resources and it needs employees to follow specific guidelines for each audit. This firm's
organizational design would most likely be built for which of the following?
high empowerment, high efficiency
high control, low efficiency
high efficiency, high control
high responsiveness, high empowerment - Answers - high efficiency, high control
When Walmart determines how many warehouses it needs to build and operate, it is
addressing which element of the marketing mix?
distribution
promotion
storage
product - Answers - distribution
What does corporate taxation mean?
Companies have to pay both sales taxes and income taxes.
Companies must pay taxes on their earnings, and then shareholders pay taxes on their
dividends.
Suppliers tax their customers, and in turn these businesses tax the ultimate consumer.
Companies must pay taxes on corporate income and then they pay additional taxes on
distributions of profit to shareholders. - Answers - Companies must pay taxes on their
earnings, and then shareholders pay taxes on their dividends.
Eric's responsibility at his company is overseeing all the activities concerned with
obtaining money and using it effectively. What is Eric's role?
investment adviser
financial manager
financial planner
accountant - Answers - financial manager
, Often small firms seek to establish a particular niche in the market that closely serves
the needs of certain customers. When a number of small businesses operate in this
manner, it forces larger businesses to recognize and account for their influence on the
market. This is an example of small businesses doing which of the following?
providing competition
providing technical innovation
creating jobs
avoiding downsizing - Answers - providing competition
Which of these Canadian companies started out as a sole proprietorship?
Swiss Chalet
Tim Hortons
Cirque du Soleil
BlackBerry - Answers - Cirque du Soleil
Each of the following causes a cash flow problem EXCEPT which one?
slow-paying customers
a large proportion of credit sales
customers who pay early
unexpected slow selling seasons - Answers - customers who pay early
You are about to hire several new customer service reps. To ensure that you recruit the
correct type of candidates, you ask the customer service manager to systematically
observe the responsibilities and tasks of your existing customer service reps. Which of
the following are you currently engaged in?
writing a job description
performing HRM development
creating a job specification
performing a job analysis - Answers - performing a job analysis
Roots is a popular Canadian company that sells clothing, handbags, and footwear. Most
of its sales come from company-owned stores. What type of distribution channel is
Roots using?
direct channel
wholesaler
agent to wholesaler to retailer channel
two-step distribution - Answers - direct channel
Which of the following involves the ability to complete a task using the minimum amount
of resources?
ANSWERS
An accounting firm performs audits for top corporations to ensure they are following all
applicable tax laws. The firm needs to complete this task using a minimum amount of
resources and it needs employees to follow specific guidelines for each audit. This firm's
organizational design would most likely be built for which of the following?
high empowerment, high efficiency
high control, low efficiency
high efficiency, high control
high responsiveness, high empowerment - Answers - high efficiency, high control
When Walmart determines how many warehouses it needs to build and operate, it is
addressing which element of the marketing mix?
distribution
promotion
storage
product - Answers - distribution
What does corporate taxation mean?
Companies have to pay both sales taxes and income taxes.
Companies must pay taxes on their earnings, and then shareholders pay taxes on their
dividends.
Suppliers tax their customers, and in turn these businesses tax the ultimate consumer.
Companies must pay taxes on corporate income and then they pay additional taxes on
distributions of profit to shareholders. - Answers - Companies must pay taxes on their
earnings, and then shareholders pay taxes on their dividends.
Eric's responsibility at his company is overseeing all the activities concerned with
obtaining money and using it effectively. What is Eric's role?
investment adviser
financial manager
financial planner
accountant - Answers - financial manager
, Often small firms seek to establish a particular niche in the market that closely serves
the needs of certain customers. When a number of small businesses operate in this
manner, it forces larger businesses to recognize and account for their influence on the
market. This is an example of small businesses doing which of the following?
providing competition
providing technical innovation
creating jobs
avoiding downsizing - Answers - providing competition
Which of these Canadian companies started out as a sole proprietorship?
Swiss Chalet
Tim Hortons
Cirque du Soleil
BlackBerry - Answers - Cirque du Soleil
Each of the following causes a cash flow problem EXCEPT which one?
slow-paying customers
a large proportion of credit sales
customers who pay early
unexpected slow selling seasons - Answers - customers who pay early
You are about to hire several new customer service reps. To ensure that you recruit the
correct type of candidates, you ask the customer service manager to systematically
observe the responsibilities and tasks of your existing customer service reps. Which of
the following are you currently engaged in?
writing a job description
performing HRM development
creating a job specification
performing a job analysis - Answers - performing a job analysis
Roots is a popular Canadian company that sells clothing, handbags, and footwear. Most
of its sales come from company-owned stores. What type of distribution channel is
Roots using?
direct channel
wholesaler
agent to wholesaler to retailer channel
two-step distribution - Answers - direct channel
Which of the following involves the ability to complete a task using the minimum amount
of resources?
