X100 Practice Exam 2 PDF

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X100 Practice Exam Chapter 5: 1. Small-business owners want to determine whether their companies meet the standards for small-business designation because: a. They do not have to pay taxes on their profits. b. Government agencies offer benefits designed to help small businesses compete with larger firms. c. Incorporation is easier for them. d. Banks are more likely to grant them loans. 2. What are the advantages of a home-based business? a. Greater visibility to customers b. Lower costs c. Less flexibility d. Isolation 3. Many businesses fail during the early years because of ____________. a. Niche markets b. Inadequate financing c. Unmotivated owners d. Poor planning 4. _____________ use their own capital supplemented with government loans to invest in small businesses. a. Franchisors b. Small Business Investment Companies (SBICs) c. Joint Ventures d. Freemium Business Models 5. Maria is the owner of a very small technology start0up. She shares clerical staff, computers, and other business services with other small business owners. Maria is part of a: a. Business incubator b. Venture capital company c. Joint venture d. Microloan company 6. The Small Business Administration (SBA) provides all of the following EXCEPT ______________. a. Loan guarantees b. Information and advice through toll-free telephone numbers c. Loans for natural disaster recovery d. Business incubators 7. In exchange for an ownership share, small businesses receive financing from a group of investors known as _____________. a. Microloan investors b. Franchisors c. Small Business Investment Companies (SBICs) d. Venture Capitalists

8. The two principal parties in a franchising agreement are the ___________. a. Manager and Worker b. Franchiser and Partners c. Franchisor and Franchisee d. Venture Capitalist and SBA 9. The franchisor provides all of the following EXCEPT _____________. a. Business training b. Marketing programs c. Name recognition d. On-site management 10. Which of the following statements regarding franchising is FALSE? a. Franchises are risker than other forms of business ownership. b. Franchises have the benefit of name recognition. c. Franchisors provide a wide range of support franchisees. d. Benefits for the franchisor include opportunities for expansion that might not otherwise be available. 11. A drawback of franchising is that: a. It necessitates the development of new business models for every franchise. b. It provides no opportunities for expansion. c. It restricts the business to a single geographical location. d. It deprives the franchisor of absolute control over his or her business. 12. Franchising offers all of the following advantages EXCEPT__________. a. A recognizable company name b. Prior performance record c. Training d. Guaranteed level of profitability 13. Diya owns a FoodMart, the franchisee of a local retail shop. Which of the following will be one of Diya’s chief concerns regarding owning the franchise? a. The franchisor does not provide her with the required supplies. b. The franchising agreement is too restrictive. c. The franchise has the benefit of name recognition. d. The franchisor can negotiate better deals on ingredients, supplies, and real estate, because of its financial strength. 14. Which of the following is true of a business with sole proprietorship? a. It involves several owners. b. It is difficult to form and dissolve. c. Its owner has maximum flexibility. d. Its owner is exempt from corporate franchise taxes. 15. One of the disadvantages of partnerships is that: a. The partners are not covered by life insurance. b. All partners should have expertise in every area. c. The partners are exposed to unlimited financial liability. d. They are difficult to form and dissolve.

16. If business owners in a partnership wish to limit liability, they have the option to _________. a. Pledge funds b. Limit expenditure c. Set up a limited-liability partnership d. Dissolve the partnership 17. Corporations have all the following advantages EXCEPT _____________. a. Favorable tax treatment b. Limited liability c. Expanded financial capacity d. Limited legal risk 18. The maximum number of shareholders is limited to __________ for a firm to qualify as a subchapter S corporation. a. 25 b. 50 c. 75 d. 100 19. When a government unit owns and operates an organization, the arrangement is known as _________. a. Private ownership b. A cooperative c. Public ownership d. Employee ownership 20. Which of the following is most likely an example of public ownership? a. A movie theater b. The city sewer system c. A trucking company d. A television company 21. Alternatives to private ownership include ____________. a. Public ownership and collective ownership b. Employee ownership and foreign corporations c. Foreign corporations and public ownership d. Employee ownership and collective ownership 22. The board of directors of a corporation is elected by the ___________. a. Corporation’s employees b. Bondholders and other creditors c. Corporate officers d. Stockholders 23. If NJK steel buys Ramirez Iron Ore to assure itself a constant flow of ore, it will be an example of a __________________. a. Conglomerate company b. Domestic Company c. Vertical Merger d. Subsidiary corporation

24. Which type of merger is done to increase customer bases? a. Vertical merger b. Conglomerate company c. Joint venture d. Horizontal Merger 25. An American retail change started doing business in India by forming a ___________ with one of India’s leading business groups. a. Joint venture b. Subsidiary c. Horizontal merger d. Vertical merger 26. Nikita established a corporation in Nebraska but recently moved to Colorado where she now conducts her business. What type of corporation does Nikita own? a. Alien corporation b. Domestic corporation c. Foreign corporation d. National corporation 27. Paul decides to start a trust-run hospital to help the poor get expensive treatments for free. Which of the following is most likely true of the hospital? a. It has high profit margin. b. It issues stock certificates. c. It pays dividends to owners. d. It is exempt from corporate taxes. 28. One of the disadvantages of partnerships is that: a. The partners are not covered by life insurance. b. All partners should have expertise in every area. c. The partners are exposed to unlimited financial liability. d. They are difficult to form and dissolve. 29. Martha requires funding for a shopping portal she launched recently. She wants to secure a government procurement contract to ensure adequate funding. Which of the following organizations can help Martha avail the contract? a. Limited-liability corporation b. Center for Women’s Business Research c. Small Business Administration d. International Franchise Association 30. Which of the following is one of the criteria for borrowers to qualify for a Small Business Administration-backed loan? a. The borrower should not be a financial service provider. b. The borrower should not be a home-based business. c. The borrower should be unable to secure conventional commercial financing. d. The borrower should be a not-for-profit organization that focuses on energy conservation.

Chapter 7: 1. Who are most likely to make decisions regarding the purchase of other companies? a. General managers b. First-line managers c. Supervisors d. Top managers 2. Zara’s job duties include such tasks as deciding whether or not to introduce a new product or enter a new foreign market. Zara is most likely a member of __________ management. a. Middle b. Top c. Supervisory d. First-line 3. Most top executives started out as: a. Technical experts b. Chartered accountants c. Human relations executives d. Marketing professionals 4. When Zeenath instructs new employees on handling customer complaints, she motivates them to respond with patience and a positive attitude. Zeenath has effective ____________ skills. a. Human b. Conceptual c. Intuitive d. Visionary 5. Henrietta classifies and divides work into manageable units by determining the specific tasks necessary to introduce a new product. Henrietta is involved in the __________ managerial function. a. Organizing b. Controlling c. Directing d. Planning 6. Ricardo is responsible for guiding and motivating ten other employees to accomplish various organizational objectives. Ricardo handles the __________ managerial function. a. Planning b. Organizing c. Directing d. Controlling 7. Joshua’s job is to assess the success of the planning function and provide feedback for future rounds of planning. Joshua is engaged in the _____________ managerial function. a. Directing b. Controlling c. Organizing d. Launching

8. A company’s vision should be __________ and _____________. a. Rigid, focused b. Rigid, broad c. Focused, flexible d. Flexible, broad 9. Which type of planning determines the primary objectives of an organization and then acts and allocates resources to those objectives? a. Tactical planning b. Strategic planning c. Contingency planning d. Operational planning 10. Sollane Inc. is an online shopping portal. Which of the following is most likely to be included in the company’s strategic planning? a. Fixing tight deadlines for tasks completed by employees b. Openly communicating with customers in the event of delayed delivery of products c. Creating a mobile application to ease the customers’ shopping experience d. Offering incentives and additional benefits to motivate employees 11. __________ planning guides the current near-term activities required to implement overall strategies. a. Contingency b. Tactical c. Strategic d. Operational 12. Simone reviews the applications received for a new position in finance. This is an example of ___________ planning. a. Operational b. Contingency c. Tactical d. Strategic 13. Cameron sets the deadlines for an upcoming project. This depicts ___________ planning. a. Operational b. Tactical c. Strategic d. Contingency 14. A logistics company has been moving trucks and supplies into position nearly a week before a hurricane hit the city, as specified in the company’s ___________ plan. a. Tactical b. Strategic c. Operational d. Contingency

15. A home furnishing store issued a recall notice for a defective appliance. Before the notice was publicly issued, the company had assembled a crisis management team to enact a(n) ________ plan. a. Tactical b. Operational c. Contingency d. Strategic 16. Tactical planning is primarily the responsibility of _________. a. Middle managers b. Supervisory managers c. First-line managers d. Top management executives 17. Karl is a member of his firm’s strategic planning team. He has identified several untapped markets that exist in other countries. In a SWOT analysis, his observation should be listed as a(n) ___________. a. Opportunity b. Weakness c. Strength d. Threat 18. ____________ set guideposts by which managers define an organization’s desired performance. a. Mission statements b. Standards c. Opportunities d. Objectives 19. How is a company’s objective different from its mission statement? a. Unlike an objective, a mission statement is measurable. b. Unlike a mission statement, an objective is concrete. c. Unlike a mission statement, an objective is constant. d. Unlike an objective, a mission statement includes strategies. 20. In the context of a company’s strategic planning process, which of the following steps should be performed immediately after the company’s competitive position has been determined? a. Defining the company’s mission b. Creating strategies for competitive differentiation c. Setting objectives for the company d. Monitoring and adapting strategic plans 21. Which of the following is a difference between programmed and nonprogrammed decisions? a. Unlike programmed decisions, nonprogrammed decisions involve routine problems. b. Unlike nonprogrammed decisions, programmed decisions involve complex problems. c. Unlike programmed decisions, nonprogrammed decisions involve unique problems. d. Unlike nonprogrammed decisions, programmed decisions involve predetermined procedures.

22. Bay Corp. has established a discount schedule for large-volume clients. This ________ will allow managers to devote time to more complex issues. a. Programmed decision b. Contingency decision c. Nonprogrammed decision d. Emergency decision

23. A fast food joint has decided to add a pork sandwich to its menu. This is an example of a(n) _____________. a. Contingency decision b. Emergency plan c. Nonprogrammed decision d. Programmed decision 24. Lorenzo is the product manager of a new company that makes hand-help computers. He is trying to decide between two operating systems for the product. Lorenzo is ___________. a. Creating a vision b. Making a nonprogrammed decision c. Solving a recurring problem d. Taking a programmed decision 25. Once a manger has determined the problem or opportunity, the next step in the decisionmaking process is to ____________. a. Create a contingency plan b. Develop possible courses of action c. Identify the threats d. Recognize the strengths 26. Jeremy is faced with making a decision about selecting a local supplier. He has researched the advantages and disadvantages of three local supplies. What should Jeremy do next? a. Recognize the problems in choosing a supplier. b. Follow up on the effectiveness of his decision. c. Select and approach one of the suppliers. d. Delay making the decision. 27. ___________ is the ability to direct or inspire people to attain certain goals. a. Flexibility b. Planning c. Empowerment d. Leadership 28. Which of the following illustrates a quality of a great leader? a. Jonathan displays a rigid style of work. b. Cynthia refrains from using her influence to attain new clients for her company. c. Rafael empathizes with his employees. d. Sarah refrains from using her power to direct the activities of her employees.

29. Autocratic leaders: a. Involve subordinates in critical decision-making processes. b. Empower employees. c. Believe in minimal supervision. d. Make decisions on their own, often without consulting others. 30. Which of the following is true of autocratic leadership? a. It is centered on the boss. b. It encourages two-way communication. c. It allows subordinates to make most of their own decisions. d. It is based on the concept of employee empowerment. Chapter 8: 1. Which of the following management functions is most likely to be responsible for planning for staffing needs, recruiting and hiring workers, providing for training and evaluating performance, determining compensations and benefits, and overseeing employee separation. a. Human Resources management b. Human asset accounting c. Research and Development (R&D) d. Change management 2. All of the following are core responsibilities of human resource managers EXCEPT: a. Employee recruitment b. Training and performance evaluation c. Employee compensation and benefits d. Company budget forecasts 3. Philomena is a human resources manager. Her responsibilities might include all of the following EXCEPT ___________. a. Developing employee training programs b. Administering employee benefit programs c. Projecting sales for the comping six-month period d. Administering compensation plans 4. A young surgical intern must perform microsurgeries on surgical training modules under the instruction and supervision of an expert in the field via videoconferencing. This is an example of ___________. a. Induction training b. A management development program c. Apprenticeship training d. Online training 5. Which of the following is the first step in the employee recruitment process? a. Reviewing applications and resumes b. Interviewing candidates c. Conducting employment tests d. Identifying job requirements

6. Which of the following statements about Title VII of the Civil Rights Act is not correct? a. It created the Equal Employment Opportunity Commission (EEOC). b. It prohibits discrimination of employees based on race, religion, color, sex, or national origin. c. It helps employers determine the compensation package for each job band within the company. d. It includes the right to a jury for victims of employment discrimination. 7. Farah runs the finance department for a software company and wants to measure a job candidate’s ability in numerical aptitude, logical reasoning, and verbal comprehension. According to experts, which test would be ideal for this situation? a. Certified public accounting exam b. Associative learning comprehension c. Cognitive ability test d. Personality type indicator 8. Employees are most likely to learn about company policies regarding their rights and benefits during _________. a. Orientation b. Performance appraisal c. Evaluation d. Feedback session 9. A variation of on-the-job training is __________. a. Online training programs b. Conferences c. Classroom lectures d. Apprenticeship programs 10. Gia, a new employee, is hired for the role of a project analyst. She learns the skills by being an assistant to a senior project analyst. Which of the following types of training is indicated in this scenario? a. Near-site training b. Apprenticeship training c. Vestibule training d. Job swapping 11. Some companies are replacing classroom training with computer-based and online training program s because these programs offer all the following advantages EXCEPT __________. a. Reduced travel costs b. Online training programs are less difficult c. Online training offers consistent presentations d. Employees can learn at their own pace 12. Based on employee performance appraisals, managers make objective decisions about all of the following EXCEPT ___________. a. Additional training needs b. Compensation c. Corporate outsourcing d. Promotion

13. Which of the following is a concern about performance reviews? a. They are held to frequently b. They may be skewed in favor of a single manager’s subjective opinion c. They are mostly based on criteria that are objective rather than subjective d. They take place in the form of two-way communication

14. Dimitri is scheduled for a 360-degree performance review at Finnacle Corp. The advantage of this type of review is that: a. It involves less work for employees and managers. b. It gathers feedback from multiple perspectives. c. It results in outcomes untainted by personal disputes. d. It is less time consuming than traditional review. 15. Antonio is paid $55,000 per year as a research analyst. This type of compensation is called a(n) _________. a. Salary b. Wage c. Time wage d. Employee benefit 16. Most companies base their compensation policies on all of the following factors EXCEPT __________. a. Government legislation b. Cost of living c. Worker’s commitments d. Worker productivity 17. Emily receives a bonus of $1,500 at the end of the year based on the cost savings. Which form of incentive compensation is indicated in this case? a. Profit sharing b. Pay for knowledge c. Lump-sum bonus d. Gain sharing 18. Gain sharing is a type of incentive compensation that provides: a. Increased stock options if the company is doing well. b. Bonuses for recruiting new employees for needed positions. c. Bonuses based on quality improvements d. Salary increases based on learning new job skills. 19. Which of the following is NOT a trend in employee benefits? a. Many companies are offering incentives for employees to live healthier lives. b. Employers are now paying a greater percentage of health care costs. c. Some companies are now reducing the contributions made to workers’ 401(K) plans. d. Employee benefits amount to approximately 30 percent of total compensation.

20. All of the following employee benefits are required by law with the exception of _________. a. Health insurance b. Social security c. Unemployment insurance d. Medicate 21. All of the following are examples of flexible working arrangements EXCEPT ____________. a. Telecommuting b. Compressed workweeks c. Job sharing plans d. 401(k) plans 22. Janet’s company allows her to work four 10-hour days and then have three days off each week. This type of flexible work arrangement is known as _______. a. Job sharing program b. Compressed work week c. Telecommuter d. Flextime 23. Who among the following is most likely to have telecommuting ag...