BUS001

Questions

1
In the last stage of the decision-making process, managers may decide to

A.hand the monitoring task to another manager

B.ensure customer satisfaction

C.start the problem identification process all over again

D.strengthen supplier relationships

E.continue quality improvement
2
Joe decides to start his own business designing websites for other businesses. Joe’s business would be classified as a

A.production business

B.distribution business.

C.service business

D.wholesaling business

E.retailer
3
Megan Miller is an ethics officer at a large financial institution. She likely performs all of the following duties except

A.encouraging all employees to be whistle-blowers

B.giving top management advice about their decisions

C.providing advice to employees when they are uncertain

D.coordinating ethical conduct

E.determining the punishment for ethical violations

4

Mike Nettles approached Nathan Lang about becoming a partner in a firm that destroys environmental waste.
While Mike would like to become a partner in the firm, he is concerned about his liability because he has recentlyinherited a lot of money. In this situation, Mike should become a

A.joint venturist

B.sole proprietor

C.limited partner

D.general partner with a majority ownership interest in the business

E.general partner with a minority ownership interest in the business
5

Natalie owns a highly successful bakery and coffee shop, Mocha & Muffins. Others have expressed interest in startingnearly identical shops at various locations. Natalie decides to sell franchises of Mocha & Muffins. Why is this option aless expensive way to increase the distribution of her treats?

A.The franchisees will be highly motivated to succeed

B.She will not incur the high costs of constructing and operating more shops

C.She will be able to obtain low-interest loans for the new locations

D.She will be able to offer the franchisees free advice about their shops

E.She will only have to build as many shops as there are available franchisees

6

Nathan’s business constructs storage sheds for new housing developments as requested by the builders. Nathan’sbusiness would best be classified as a

A.distribution business

B.retailer

C.production business

D.service business

E.wholesaler
7
Noise pollution can be reduced by

A.banning strip-mining of coal

B.modifying machinery and equipment

C.nonselective cutting of forests

D.the development of agricultural land for housing and industry

E.cleaning up land polluted with chemicals and industrial waste

8
Prudential and several other large insurance companies have joined together to underwrite an extremely largeinsurance policy. This sort of association is referred to as a(n)

A.cooperative

B.alliance

C.vertical merger

D.syndicate

E.conglomerate
9

Samantha graduated from college and needed to decide where she wanted to work. She had several options. Heraunt Julie owned and operated a small business that she started about twenty years ago. Julie, an individual ownerof her business, informed Samantha that she could work for her. On one hand, Samantha thought it would be a greatopportunity to be able to work for her aunt, learn the business, and then run the business when her aunt retires. Onthe other hand, she also felt that she wanted something a little more challenging; a job where she could really useher education. Her other option would be to work for a company that a friend and her husband had
started and jointly owned. It was a rapidly growing company with plenty of opportunity for advancement. However,Samantha had some reservations about this choice because she was not sure she wanted to work for friends. Herlast option was to work for a large retail company, headquartered in Maryland, which had stores across the UnitedStates.

After much consideration, Samantha decided she didn’t want an opportunity and a job because someone knew her.She wanted to prove how motivated and hardworking she was. Once she weighed all the advantages anddisadvantages of her different options, she decided to work for the large retail company so that she could gain themost experience for herself.

Question – What type of company does Samantha’s friend operate?

A.Franchise

B.Sole proprietorship

C.Incorporation

D.Partnership

E.Corporation

10
Samantha graduated from college and needed to decide where she wanted to work. She had several options. Heraunt Julie owned and operated a small business that she started about twenty years ago. Julie, an individual ownerof her business, informed Samantha that she could work for her. On one hand, Samantha thought it would be a greatopportunity to be able to work for her aunt, learn the business, and then run the business when her aunt retires. Onthe other hand, she also felt that she wanted something a little more challenging; a job where she could really useher education. Her other option would be to work for a company that a friend and her husband had
started and jointly owned. It was a rapidly growing company with plenty of opportunity for advancement. However,Samantha had some reservations about this choice because she was not sure she wanted to work for friends. Herlast option was to work for a large retail company, headquartered in Maryland, which had stores across the UnitedStates.

After much consideration, Samantha decided she didn’t want an opportunity and a job because someone knew her.She wanted to prove how motivated and hardworking she was. Once she weighed all the advantages anddisadvantages of her different options, she decided to work for the large retail company so that she could gain themost experience for herself.

Question – If Samantha worked for the large retail company in Philadelphia, what type of corporation would that be?

A.International

B.Domestic

C.Global

D.Foreign

E.Alien