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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

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