BUS 201 MIDTERM REVIEW QUESTIONS WITH
ACCURATE ANSWERS
_____ allocates the goods and services produced by government-run industries
and tries to ensure that the resulting wealth is distributed equally. correct answer
central planning
_____ are shorter-term performance targets that direct the activities of an
organization. correct answer objectives
_____ companies provide valuable services to _____ companies by acting as sales
agents for their products. correct answer small / large
_____ refers to the management process of comparing actual to planned
performance and taking necessary corrective actions. correct answer controlling
_________ are earnings distributed to shareholders by a corporation. correct
answer dividends
A business that is owned and controlled by those who use its services is called a
cooperative. T/F correct answer true
A chef put two frogs in a pot of warm soup water. Recognizing danger, the first
frog jumped out, but the second frog didn't. In terms of ethics, what's the moral
of the story? correct answer Get out before the water gets too hot.
A demand curve shows the _____ of a product that will be demanded at different
prices. correct answer quantity
,A hostile takeover is a takeover that is resisted by the targeted company's
management and its board of directors. T/F correct answer true
A major disadvantage of a partnership is that partners may disagree on how to
operate the business and divide the profits. T/F correct answer true
A manager who's adopted a "hands-off" approach and provides relatively little
direction to subordinates, is practicing a _____ leadership style. correct answer
laissez-faire
A partnership agreement specifies each owner's rights and responsibilities in the
business. T/F correct answer true
A rewarding aspect of being a business owner is that you can't get fired-an
advantage that comes under the heading of "Creative Freedom and Personal
Satisfaction." T/F correct answer false
A supply curve shows the relationship between the price of a product and the
quantity that consumers are willing to buy. T/F correct answer false
A survey conducted by the Wall Street Journal indicates that _____ have a more
satisfying business experience. correct answer small business owners
A SWOT analysis defines what an organization stands for. T/F correct answer false
, A(n) _____ chart is a diagram or visual representation delineating the
interrelationships of positions within an organization. correct answer organization
About 80 percent of small businesses in the U.S. are concentrated in the _____
sector. correct answer service producing
According to the law, people must be hired, evaluated, promoted, and rewarded
on the basis of merit, not personal characteristics. T/F correct answer true
Accounting, finance, management, marketing, and production are the _____
areas of business. correct answer functional
All of the following influence the ethics of a business except _____.
a. ethical leadership at the top of the organization
b. an organization's culture
c. top management's willingness to hold subordinates accountable for their
conduct
d. relentless pressure to generate revenue correct answer d. relentless pressure
to generate revenue
Among free market theorists, the principle of laissez-faire calls for government
intervention to equalize the distribution of resources. T/F correct answer false
Among the consumer rights cited by President John F. Kennedy in 1962 is the
right to safe products. T/F correct answer true
ACCURATE ANSWERS
_____ allocates the goods and services produced by government-run industries
and tries to ensure that the resulting wealth is distributed equally. correct answer
central planning
_____ are shorter-term performance targets that direct the activities of an
organization. correct answer objectives
_____ companies provide valuable services to _____ companies by acting as sales
agents for their products. correct answer small / large
_____ refers to the management process of comparing actual to planned
performance and taking necessary corrective actions. correct answer controlling
_________ are earnings distributed to shareholders by a corporation. correct
answer dividends
A business that is owned and controlled by those who use its services is called a
cooperative. T/F correct answer true
A chef put two frogs in a pot of warm soup water. Recognizing danger, the first
frog jumped out, but the second frog didn't. In terms of ethics, what's the moral
of the story? correct answer Get out before the water gets too hot.
A demand curve shows the _____ of a product that will be demanded at different
prices. correct answer quantity
,A hostile takeover is a takeover that is resisted by the targeted company's
management and its board of directors. T/F correct answer true
A major disadvantage of a partnership is that partners may disagree on how to
operate the business and divide the profits. T/F correct answer true
A manager who's adopted a "hands-off" approach and provides relatively little
direction to subordinates, is practicing a _____ leadership style. correct answer
laissez-faire
A partnership agreement specifies each owner's rights and responsibilities in the
business. T/F correct answer true
A rewarding aspect of being a business owner is that you can't get fired-an
advantage that comes under the heading of "Creative Freedom and Personal
Satisfaction." T/F correct answer false
A supply curve shows the relationship between the price of a product and the
quantity that consumers are willing to buy. T/F correct answer false
A survey conducted by the Wall Street Journal indicates that _____ have a more
satisfying business experience. correct answer small business owners
A SWOT analysis defines what an organization stands for. T/F correct answer false
, A(n) _____ chart is a diagram or visual representation delineating the
interrelationships of positions within an organization. correct answer organization
About 80 percent of small businesses in the U.S. are concentrated in the _____
sector. correct answer service producing
According to the law, people must be hired, evaluated, promoted, and rewarded
on the basis of merit, not personal characteristics. T/F correct answer true
Accounting, finance, management, marketing, and production are the _____
areas of business. correct answer functional
All of the following influence the ethics of a business except _____.
a. ethical leadership at the top of the organization
b. an organization's culture
c. top management's willingness to hold subordinates accountable for their
conduct
d. relentless pressure to generate revenue correct answer d. relentless pressure
to generate revenue
Among free market theorists, the principle of laissez-faire calls for government
intervention to equalize the distribution of resources. T/F correct answer false
Among the consumer rights cited by President John F. Kennedy in 1962 is the
right to safe products. T/F correct answer true
