BADM 101 FINAL EXAM QUESTIONS
AND ANSWERS
Stakeholders - ANSWER-invested interest in benefitting a company; employees,
community, investors, customers
What is the first major step of a marketing strategy? - ANSWER-to gather
information and conduct research to determine what customers want
Inflation - ANSWER-Rise in prices
When does an economic expansion occur? - ANSWER-when an economy is
growing and people are spending more money
Conflict of Interest - ANSWER-is when someone puts their own needs before the
companies to benefit themselves
Budget Deficit - ANSWER-when the nation spends more than it takes from people in
taxes
Why does the US have a trade deficit? - ANSWER-because the import more
products than they export
A Strategic Alliance - ANSWER-a partnership formed to create competitive
advantage on a worldwide basis
Corporation - ANSWER-a legal entity, created by the state , whose assets and
liabilities are separate from it's owner
Advantages of a Corporation - ANSWER-Limited liability, easy transfer of ownership,
perpetual life, external sources of funds and expansion potential
International Bank of Reconstruction and Development - ANSWER-World Bank
Advantages of a Small Business - ANSWER-independence, cost, flexibility, focus,
reputation, and low start up costs
What do managers do if they find a grapevine? - ANSWER-they use it to their
advantage by feeding it facts to stop rumors and false info
Multidivisional Structure - ANSWER-organizes departments into larger groups called
divisions. Within each of these divisions departments may be organized by product,
geographic region, function, and a combination of all 3
, Standardization - ANSWER-Making everything the same(Car)
Balance of Payments - ANSWER-The difference between the flow of money into a
company and out of a company
Organizational Structure - ANSWER-how managers structure their authority
relationships
Line Structure - ANSWER-direct lines of authority from top manager to low
employees
Line and Staff Structure - ANSWER-relationship between superiors and staff
managers
Maslows Hierarchy of Needs - ANSWER-1. Self actualization
2. Self esteem
3. Social needs
4. Security needs
5. Physiological needs
Socialism - ANSWER-government owns and operates basic industries but
individuals own most businesses
Oligopoly - ANSWER-exsits when there are very few businesses selling a certain
product
Monoply - ANSWER-1 business only providing a product
Theory X - ANSWER-Mcgregors traditional view of management whereby it is
assumed that workers generally dislike working and must be forced to do their jobs
Theory Y - ANSWER-Mcgregors humanistic view where it is assumes people like to
work and that under proper conditions employees will seek responsibility
Theory Z - ANSWER-a management style that stresses employee participation in all
aspects of the decision making process
What did Fredrick Taylor Believe? - ANSWER-That money is the sole motivator for
workers
Hawthorne Studies - ANSWER-that productivity increases because of social and
physiological factors
The physiological variables of buyer behavior - ANSWER-1.perception
2.motivation
3.learning
4.attitude
5.personality
AND ANSWERS
Stakeholders - ANSWER-invested interest in benefitting a company; employees,
community, investors, customers
What is the first major step of a marketing strategy? - ANSWER-to gather
information and conduct research to determine what customers want
Inflation - ANSWER-Rise in prices
When does an economic expansion occur? - ANSWER-when an economy is
growing and people are spending more money
Conflict of Interest - ANSWER-is when someone puts their own needs before the
companies to benefit themselves
Budget Deficit - ANSWER-when the nation spends more than it takes from people in
taxes
Why does the US have a trade deficit? - ANSWER-because the import more
products than they export
A Strategic Alliance - ANSWER-a partnership formed to create competitive
advantage on a worldwide basis
Corporation - ANSWER-a legal entity, created by the state , whose assets and
liabilities are separate from it's owner
Advantages of a Corporation - ANSWER-Limited liability, easy transfer of ownership,
perpetual life, external sources of funds and expansion potential
International Bank of Reconstruction and Development - ANSWER-World Bank
Advantages of a Small Business - ANSWER-independence, cost, flexibility, focus,
reputation, and low start up costs
What do managers do if they find a grapevine? - ANSWER-they use it to their
advantage by feeding it facts to stop rumors and false info
Multidivisional Structure - ANSWER-organizes departments into larger groups called
divisions. Within each of these divisions departments may be organized by product,
geographic region, function, and a combination of all 3
, Standardization - ANSWER-Making everything the same(Car)
Balance of Payments - ANSWER-The difference between the flow of money into a
company and out of a company
Organizational Structure - ANSWER-how managers structure their authority
relationships
Line Structure - ANSWER-direct lines of authority from top manager to low
employees
Line and Staff Structure - ANSWER-relationship between superiors and staff
managers
Maslows Hierarchy of Needs - ANSWER-1. Self actualization
2. Self esteem
3. Social needs
4. Security needs
5. Physiological needs
Socialism - ANSWER-government owns and operates basic industries but
individuals own most businesses
Oligopoly - ANSWER-exsits when there are very few businesses selling a certain
product
Monoply - ANSWER-1 business only providing a product
Theory X - ANSWER-Mcgregors traditional view of management whereby it is
assumed that workers generally dislike working and must be forced to do their jobs
Theory Y - ANSWER-Mcgregors humanistic view where it is assumes people like to
work and that under proper conditions employees will seek responsibility
Theory Z - ANSWER-a management style that stresses employee participation in all
aspects of the decision making process
What did Fredrick Taylor Believe? - ANSWER-That money is the sole motivator for
workers
Hawthorne Studies - ANSWER-that productivity increases because of social and
physiological factors
The physiological variables of buyer behavior - ANSWER-1.perception
2.motivation
3.learning
4.attitude
5.personality
