Boone Contemporary Business 15e

Download the full document at http://testbankexpress.com Chapter 1—The Changing Face of Business MATCHING

Complete the following using these terms. a. b. c. d. e. f. g. h. i. j. k. l.

outsourcing diversity entrepreneur competitive differentiation strategic alliance capital vision factors of production brand relationship management management not-for-profit organizations business ethics

1. _____ involves involves blending blending different different genders, genders, ethnic ethnic backgrounds, backgrounds, cultures, cultures, religions, religions, ages, and physical and mental abilities abilities in order to enhance enhance a firm’s chances chances of success. 2. _____ refers refers to technolo technology gy,, tools, informa information, tion, and physical physical faciliti facilities. es. . _____ is the uni!ue uni!ue combination of organizational organizational abilities, abilities, products, products, and approaches approaches that that sets a company apart from competitors in the minds of consumers. ". # partnership formed formed to create create a competitive competitive advantage advantage for the the businesses involved is kno$n as a%n& _____. '. #%n& _____ _____ is a name, terms, terms, sign, symbol, symbol, design, or combination combination that identifies identifies the the products of one firm. (. )he ability to perceive future marketplace marketplace needs and $hat an organization organization can do to satisfy them is referred to as _____. *. # person $ho seeks a profitable profitable opportunity opportunity and and then devises devises a plan to achieve that profit is called a%n& _____. +. _____ is a collection collection of activities that build build and maintain ongoing, mutually mutually beneficial beneficial ties bet$een a business and its customers and other other parties. . )o operate effectively effectively,, certain inputs called called _____ systems are re!uired for all economic economic systems. 1. _____ are businesslike establishments establishments that have primary primary objectives other than than returning returning profits profits to their o$ners. 11. _____ refers to the standards of conduct and moral values involving decisions made in the the $ork environment. 12. # company that that contracts $ith another another business business to perform functions functions previously previously handled handled by internal staff is participating in _____.

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ESSAY

1. efine profit. 5>plain $hy $hy you agree or disagree disagree $ith the follo$ing follo$ing statement0 statement0 A)he success success of a business is measured measured only by the profit it earns.B earns.B #/0 9rofit is the financial re$ard received by successful businesspeople businesspeople $ho take the risks involved in blending people, technology, and information to create and market $ant-satisfying goods and services. n order to be successful in a private enterprise system, a business must earn a satisfactory profitC other$ise, the o$ners and investors $ill turn to more attractive opportunities. ?o$ever, businesses businesses today are e>pected to do more than earn a satisfactory profitDthey also have social and ethical responsibilities. responsibilities. n other $ords, businesses must behave responsibly in their dealings $ith employees, customers, suppliers, the general public, and even $ith their competitors. 30 ?#E 9g. " ##:/;0

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1". escribe escribe technolog technology y as as a capital capital source. source. #/0 Technology is Technology is a broad term that refers to such machinery and e!uipment as computers and soft$are, telecommunications, and inventions designed to improve production. nformation, fre!uently improved by technological innovations, is another critical factor because both managers and operating employees re!uire accurate, timely information for effective performance of their assigned tasks. )echnology )echnology plays an important role in the success of many businesses. /ometimes technology results in a ne$ product, such as hybrid autos that run on a combination of

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1'. 5>plain ho$ consumers benefit from business competition. #/0 :ompetition forces a business that $ants to continue to be profitable to constantly find acceptable $ays to satisfy customers’ needs. :ustomers benefit from ne$ products, more services, and more economical strategies and operations that are continuously offered by firms as they strive for customer acceptance. )hese tactics often bring lo$er prices, better !uality, and more convenience to the customers. )he ability to buy more raises the standard of living, increases demand, and subse!uently creates more jobs. 30 ?#E 9g. + ##:/;0

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1(. 7ist and describe the four basic rights in the private enterprise system. #/0 )he right to private property guarantees every participant the right to o$n, use, buy, sell, and be!ueath most forms of property. )he right to profits ensures business o$ners the right to all profits %after ta>es& they earn through their activities. 3reedom of choice means that a private enterprise system relies on the potential for citizens to choose their o$n e mployment, purchases, and investments. 3inally, the private enterprise system permits fair competition by allo$ing the public to set rules for competitive activity, including la$s that prohibit AcutthroatB competition. 30 ?#E 9g. + ##:/;0

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1*. 7ist the si> eras of business history. ame and describe the era used by businesses today. #/0 )he si> eras are the :olonial period, the ndustrial Eevolution, the age of industrial entrepreneurs, the production era, the marketing era, and the relationship era. )oday’s era, the relationship era, focuses on taking a long-term approach to relationships $ith customers. 3irms seek $ays to gain customer loyalty by managing each transaction. 30 4564 9g. 12 ##:/;0

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1+. 5>plain ho$ business o$ners enhance productivity by building connections $ith their customers in the relationship era. #/0 n the relationship era, businesses are taking a different, longer-term approach to their interactions $ith customers. 3irms no$ seek $ays to actively nurture customer loyalty by carefully managing every interaction. )hey earn enormous paybacks for their efforts. # company that retains customers over the long haul reduces its advertising and sales costs. ;ecause customer spending

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Download the full document at http://testbankexpress.com tends to accelerate over time, revenues also gro$. :ompanies $ith long-term customers often can avoid costly reliance on price discounts to attract ne$ business, and they find that many ne$ buyers come from loyal customer referrals. ;ecause it is much less e>pensive to serve e>isting customers than to find ne$ ones, businesses that develop long-term customer relationships can reduce their overall costs. 7ong-term relationships $ith customers enable businesses to improve their understanding of $hat customers $ant and prefer from the company. #s a result, businesses enhance their chances of sustaining real advantages through competitive differentiation. 30 ?#E 9g. 12 ##:/;0


1. 5>plain the difference bet$een transaction management and relationship management. #/0 ;uilding and promoting products $ith the hope that the sales $ill cover costs and earn an acceptable profit is kno$n as transaction management. #ctively promoting long-term relationships $ith customers by carefully managing each interaction is kno$n as relationship management. 9otential benefits of relationship management include higher revenues and lo$er marketing e>penses. 30 4564 9g. 12 ##:/;0


2. ;riefly describe the ndustrial Eevolution and its contribution to the evolution of business. #/0 )he ndustrial Eevolution began in 5ngland around 1*'. t moved business operations from an emphasis on independent, skilled $orkers $ho specialized in building products one by one to a factory system that mass-produced items by bringing together large numbers of semiskilled $orkers. )he factories profited from the savings created by large-scale production, bolstered by increasing support from machines over time. #s businesses gre$, they could often purchase ra$ materials more cheaply in larger lots than before. /pecialization of labor, limiting each $orker to a fe$ specific tasks in the production process, also improved production efficiency. nfluenced by these events in 5ngland, business in the 6nited /tates began a time of rapid industrialization. #griculture became mechanized, and factories sprang up in cities. uring the mid-1+s, the pace of the revolution $as increased as ne$ly built railroad systems provided fast, economical transportation. n :alifornia, for e>ample, the combination of railroad construction and the gold rush fueled a tremendous demand for construction. 30 4564 9g. 12 ##:/;0

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21. 5>plain ho$ e-business has created a ne$ type of strategic alliance among companies. #/0 #n e-business strategic alliance enables online companies, such as #mazon.com or 8verstock.com, to $ork $ith traditional retail stores for the benefit of both companies. )raditional companies bring their merchandise and kno$ledge of distribution, $hereas online companies provide increased opportunities for sales and additional return on their dollars. 30

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22. escribe ho$ the aging population in the 6nited /tates and abroad directly affects changes in the $orkforce. #/0 5mployers must deal $ith issues such as retirement, disability programs, retraining, and insurance benefits. #dditionally, teenagers are entering the $orkforce sooner, and some seniors are staying longer or seeking ne$ careers after retiring from their primary careers. 30 4564 9g. 1* ##:/;0

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2. =hat are the advantages of a diverse $orkforce@ #/0 /tudies sho$ that diverse employee teams and $orkforces tend to perform tasks more effectively and develop better solutions to business problems than homogeneous employee groups. #lso, a diverse $orkforce may improve management’s understanding of customer needs and relationships $ith consumer groups. 30 4564 9g. 1* ##:/;0

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2". escribe offshoring and related trends. #/0 8ffshoring is the relocation of business processes to lo$er-cost locations overseas. )his can include both production and services. n recent years, :hina has emerged as a dominant location for production offshoring for many firms, $hile ndia has become the key player in offshoring services. /ome 6./. companies are no$ structured so that entire divisions or functions are developed and staffed overseasDthe jobs $ere never in the 6nited /tates to start $ith. 30 4564 780 1.' )oday’s ;usiness =orkforce 9g. 1* ##:/;0 #nalytic ;)0 < 2'. 5>plain the ne$ employer-employee relationship in business. #/0 4any firms no$ recognize the value of a partnership $ith employees that encourages creative thinking, problem solving, and innovation. 4anagers are being trained to listen to and respect employees, and companies routinely share financial data and re$ard employees $ith benefits, such as stock options. #dditionally, employees often receive training geared to$ard career advancement. Employees are no longer likely to remain with a single company throughout their entire careers and do not necessarily expect lifetime loyalty from the companies they work for. They do not expect to give that loyalty either. Instead, they build their own careers however and wherever they can. 30 4564 9g. 1* ##:/;0

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Download the full document at http://testbankexpress.com 2(. efine the term vision. =hy is vision an important skill today@ #/0 Fision is the ability to perceive marketplace needs and $hat an organization must do to satisfy them. Fision and the ability to turn ideas into action enhance a firm’s chances of success. 30 5#/G 9g. 2 ##:/;0

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2*. =hat are some e>amples of e>ternal and internal forces that $ould re!uire a manager to lead organizational change@ #/0 5>ternal forces might include feedback from customers, developments in the international marketplace, economic trends, and ne$ technologies. nternal factors might arise from ne$ company goals, emerging employee needs, labor union demands, or production problems. 30 4564 9g. 2 ##:/;0

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2+. escribe critical thinking and creativity and $hy they are important !ualities for the 21 st century manager. #/0 :ritical thinking is the ability to analyze and assess information to pinpoint problems or opportunities. )he critical-thinking process includes activities such as determining the authenticity, accuracy, and $orth of information, kno$ledge, and arguments. t involves looking beneath the surface for deeper meaning and connections that can help identify critical issues and solutions. =ithout critical thinking, a firm may encounter serious problems. :reativity is the capacity to develop novel solutions to perceived organizational problems. #lthough most people think of it in relation to $riters, artists, musicians, and inventors, that is a very limited definition. n business, creativity refers to the ability to see better and different $ays of doing business. # computer engineer $ho solves a glitch in a soft$are program is e>ecuting a creative act. 30 4564 9g. 22 ##:/;0

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2. 5>plain ho$ business ethics differs from social responsibility. #/0 ;usiness ethics refers to standards of conduct and moral values involving right and $rong actions in the $ork environment. /ocial responsibility is the actions taken by an organization that lead to social and economic benefits to society as a $hole, such as supporting charitable organizations and protecting the environment. 30 4564 9g. 22 ##:/;0

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MUTI!E CH"ICE


Download the full document at http://testbankexpress.com . =hich of the follo$ing are organized for profit and provide goods and services@ a. businesses b. public schools c. government d. churches #/0 a 9g. " ##:/;0

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1. #ll of the follo$ing statements are correct E#CE!T0 a. /uccessful businesses seek to meet their social and ethical responsibilities. b. ;usiness provides goods and services necessary to an economic system. c. d. #/0 d 9g. " ##:/;0

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2. n accounting terms, profits are ________. a. b.

the difference bet$een revenues and e>penses the difference bet$een commissions earned and receipts the difference bet$een sales and e>penses the sum of sales and e>penses

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. n the 6./. economy, ________ are considered the re$ard for the risk of entering business. a. revenues b. generated income c. profits d. sales #/0 c 9g. " ##:/;0

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". ________ is essential because it serves as a primary incentive for people to start companies, e>pand them, and provide consistently high-!uality competitive goods and services. a. Fision b. 9rofit c. 4arket research d. 9hilanthropy #/0 b 9g. " ##:/;0

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Download the full document at http://testbankexpress.com '. #ll of the follo$ing are businesses E#CE!T ________. a. 6./. 9ostal /ervice b. 69/ c. 3ed5> d. #87 )ime =arner #/0 a 9g. " ##:/;0


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(. #ll of the follo$ing are typically part of the not-for-profit sector E#CE!T ________. a. labor unions b. religious organizations c. hotels d. museums #/0 c 9g. " ##:/;0

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*. # public-sector not-for-profit organization $ould include $hich of the follo$ing@ a. library b. museum c. charitable group d. labor union #/0 d 9g. " ##:/;0

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+. )he factors of production in an economic system are ________. a. land, rent, capital, and human resources b. capital, perseverance, natural resources, and human resources c. rent, $ages, interest, and profit d. natural resources, human resources, capital, and entrepreneurship #/0 d 9g. ( ##:/;0

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. )imber )rails, a orth$est lumber company, utilizes ________ as its primary production factor. a. human resources b. entrepreneurship c. capital d. natural resources #/0 d 9g. ( ##:/;0

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". onovan :orporation’s sources of capital can include all of the follo$ing E#CE!T ________. a. cash dividends declared by onovan’s board of directors and paid to the stockholders



b. c. d. #/0 a 9g. ( ##:/;0

investments from stockholders reinvested profits investments from venture capitalists 30 45 #nalytic

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"1. )echnology, tools, information, and physical facilities for the operation of a business are e>amples of ________. a. profits b. $ages c. capital d. interest #/0 c 9g. ( ##:/;0

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"2. # company that values employees as sources of ideas and innovation is utilizing its _________________. a. entrepreneurship b. natural resources c. capital d. human resources #/0 d 9g. ( ##:/;0

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". )he human resources of a firm refer to ________. a. everyone over 1+ years of age b. everyone $ho $orks for the business c. full-time employees d. top management #/0 b 9g. ( ##:/;0


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"". )arek, a former middle manager from #le>ander 4anufacturing, o$ns and operates a /ub$ay franchise. )arek is demonstrating ________. a. social responsibility b. socialism c. entrepreneurship d. pure competition #/0 c 9g. + ##:/;0

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1. )he 9rivate 5nterprise /ystem <

"'. ;usinesses that operate in an environment $here success or failure is determined by ho$ $ell they match and counter the offerings of competitors are operating under ________. a. the private enterprise system


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a social democracy a monopoly socialism 30 4564 #nalytic

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"(. :apitalism is founded on ________. a.

the social changes that follo$ed the ndustrial Eevolution the idea that + percent of the nation’s $ealth should be o$ned by no more than 2 percent of the people the belief that competition among business firms best serves the needs of society

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the idea that the government must o$n all factors of production 30 4564 #nalytic

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"*. n his book The Wealth of Nations, the /cottish economist #dam /mith $as the first person to describe ________. a. socialism b. communism c. capitalism d. entrepreneurship #/0 c 9g. + ##:/;0


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"+. ;y offering a lifetime $arranty on its products, =arner 5lectronics has set itself apart from its competition. )his difference is kno$n as =arner 5lectronics’ ___________. a. private enterprise system b. competitive differentiation c. capitalism d. natural resources #/0 b 9g. + ##:/;0


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". =hen Hreenla$n nc. finds itself losing contracts because 7o-9rice 7a$n :o. charges less money, Hreenla$n responds by lo$ering its bids. )his reaction demonstrates ________. a. the invisible hand of competition b. c. d.

collision the right to private property social responsibility


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'. amesh recently sold his 3ord )aurus to a personal friend. amesh’s sale of his automobile illustrates the right to ________. a. freedom of choice b. private property c. profit d. set ground rules for competitive activity #/0 b 9g. + ##:/;0


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'1. #ll of the follo$ing are basic rights $ithin a private enterprise system E#CE!T ________. a. private property b. guaranteed profits c. freedom of choice of investment d. freedom of choice of employment #/0 b 9g. + ##:/;0

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'2. )he right to profit means the ________. a.

risk taker is guaranteed the right to all profits %after ta>es& that are earned by the business right to go into or out of business at any point and for any reason government $ill guarantee a profit right to all benefits resulting from the o$nership of property

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'. =hich of the follo$ing is considered to be the most fundamental right of the private enterprise system@ a. the right to private property b. the right to guaranteed profits c. freedom of choice d. the right to fair competition #/0 a 9g. + ##:/;0

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'". :itizens in a private enterprise system have the right to choose their employment, purchases, and investments, illustrating their right to ________. a. private property b. credit c. profit d. freedom of choice


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''. #ll of the follo$ing are rights granted to citizens and to the government in a private enterprise system E#CE!T the right to ________. a. fair competition b. permit price discrimination c. select from among a variety of goods and services d. o$n property #/0 b 9g. + ##:/;0

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'(. =hich of the follo$ing is a benefit of entrepreneurship@ a. lo$ risk b. fle>ibility c. guaranteed profit d. reduced competition #/0 b 9g. + ##:/;0


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'*. n colonial society, real economic and political po$er $as centered in ________. a. metropolitan areas b. areas $est of the 4ississippi Eiver c. rural areas d. #/0 c 9g. 12 ##:/;0

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'+. )he ndustrial Eevolution in 5ngland transformed #merica’s economy by introducing ________. a. the concept of each $orker producing one complete product b. labor unions c. the factory system d. the continuously moving assembly line #/0 c 9g. 12 ##:/;0

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'. )he #merican ndustrial Eevolution did not make real progress until ________. a. a railroad system $as built providing fast, economical transportation b. a good relationship $as formed $ith 5ngland c. the introduction of the automobile occurred d. a reliable system of telephone communication $as established


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(. nventors such as Eobert 4c:ormick and 5li =hitney $ere part of the ___________. a. marketing era b. colonial era c. relationship era d. age of industrial entrepreneurs #/0 d 9g. 12 ##:/;0

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(1. ?enry 3ord is noted in business history for introducing the moving assembly line, $hich greatly reduced the cost of producing a car. #ssembly lines first became common during the ________. a. relationship era b. marketing era c. ndustrial Eevolution d. production era #/0 d 9g. 12 ##:/;0

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(2. =hich of the follo$ing BEST distinguishes the philosophy of the marketing era from the philosophy of the production era@ a. )he marketing era $as more consumer- oriented. b.

)he production era occurred after =orld =ar .

c.

)he marketing era advocated price discrimination. )he production era $as more consumer-oriented.

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(. )he business philosophy that advocates determining $hat consumers $ant and need, and then designing products to satisfy those needs, is kno$n as ________. a. consumer orientation b. self-sufficiency concept c. $ork ethic d. production concept #/0 a 9g. 12 ##:/;0

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(". )he concept of branding first emerged during the ________. a. production era b. relationship era


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age of the industrial entrepreneur marketing era 30 4564 #nalytic

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('. ;logs and social net$orking use __________ to manage relationships. a. strategic alliances b. marketing research c. technology d. business eti!uette #/0 c 9g. 12 ##:/;0


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((. )echnology has resulted in all of the follo$ing E#CE!T ________. a. product obsolescence b. the creation of ne$ industries c. the opening of ne$ business opportunities d. less business efficiency #/0 d 9g. 12 ##:/;0


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(*. :oncentrating on building and promoting products in hopes that enough customers $ill buy them in order to cover costs and earn acceptable profits is called ________. a. relationship management b. marketing management c. d. #/0 d 9g. 12 ##:/;0

a strategic alliance transaction management 30 5#/G #nalytic

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(+. urturing customer loyalty by gathering kno$ledge of customer needs and preferences is an approach kno$n as ________. a. relationship management b. transaction management c. a strategic alliance d. marketing management #/0 a 9g. 12 ##:/;0


(. # partnership is ________. a. b. c. d.

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a category of relationship management an affiliation of t$o or more companies not common in the e-business $orld the same as transaction management


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*. #pple i9ods sold on #mazon’s =eb site signify the formation of a ________ to increase profits. a. transaction alliance b. brand partnership c. strategic alliance d. marketing agreement #/0 c 9g. 12 ##:/;0

30 4564 #nalytic

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*1. =hich of the follo$ing statements is N"T correct@ a. =orkers change jobs less fre!uently today. b. c.

)he size of the labor pool is decreasing. )he 6./. population is getting older.

d.

)he 6./. population is becoming more diverse.

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1.' )oday’s ;usiness =orkforce <

*2. )he number of people age (' and over $ill ________ by 2. a. decrease by appro>imately 1 percent b. double c. d. #/0 b 9g. 1* ##:/;0

increase by appro>imately ' percent increase by appro>imately 1 percent 30 4564 #nalytic

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*. iverse employee teams tend to perform ________ and develop ________ than do homogenous employee groups. a. less effectivelyC better solutions b. more effectivelyC better solutions c. less effectivelyC $orse solutions d. more effectivelyC $orse solutions #/0 b 9g. 1* ##:/;0

30 4564 iversity

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*". 8utsourcing ________. a. b. c. d. #/0 b

30


reduces the diversity of the $orkforce can make a firm more competitive increases staffing re!uirements increases costs 5#/G

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#nalytic

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*'. =hen a business employs an outside company to handle all customer correspondence and phone calls, the business is ________ its customer service department. a. outsourcing b. branding c. multitasking d. shrinking #/0 a 9g. 1* ##:/;0

30 4564 #nalytic

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*(. =hen Hoogle opened offices in )okyo, 7ondon, and /ydney, they $ere utilizing ________ by relocating business activities to lo$er-cost locations overseas. a. nearshoring b. outsourcing c. offshoring d. employee sourcing #/0 c 9g. 1* ##:/;0

30 4564 #nalytic

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**. )he $ork-comes-first lifestyle can, at times, be e>emplified by0 a. ;aby ;oomers b. Heneration I c. Heneration G d. )he 56 #/0 a 9g. 1* ##:/;0 *+.


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)he ne$ employer-employee partnership has led to all of the follo$ing E#CE!T ________. a. increased job security b. sharing of financial information $ith employees c. increased emphasis on listening to and respecting employees d. helping employees improve skills and kno$ledge #/0 a 9g. 1* ##:/;0


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*. =hen a 6./. company contracts $ork to 4e>ico, it is ________. a. nearshoring b. nearsourcing c. e>proting d. offshoring #/0 a 9g. 1* ##:/;0

30 4564 :ommunication

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Download the full document at http://testbankexpress.com +. 3or today’s managers, $hich of the follo$ing is a. b. c. d. #/0 a 9g. 2 ##:/;0


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EAST important@ the ability to $ork by strict rules vision critical thinking skills creativity

1.( )he 21st-:entury 4anager <

+1. ________ is the ability to perceive marketplace needs and $hat an organization must do to satisfy these needs. a. critical thinking b. social responsibility c. vision d. creativity #/0 c 9g. 2 ##:/;0


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+2. 5mily $orks for a pharmaceutical company and gives a presentation on the need to e>pand the company’s geriatric division $ithin the ne>t ten years. 5mily is helping to establish the company’s ________. a. creativity b. productivity c. vision d. critical thinking #/0 c 9g. 2 ##:/;0

30 4564 #nalytic

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+. n business, ________ refers to the ability to see a. b. c. d. #/0 c 9g. 2 ##:/;0


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1.( )he 21st-:entury 4anager < better and different $ays of doing business. critical thinking social responsibility creativity vision 1.( )he 21st-:entury 4anager <

+". Eestating issues in reverse, such as naming $ays to lose customers, is a method of developing ________. a. critical thinking b. social responsibility c. vision d. creativity #/0 a 9g. 2 ##:/;0

30 4564 #nalytic

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+'. =hen 4 managers decided to manufacture 9ost-it notes, a ne$ product $as born. )his $as an e>ample of ________ in action.


Download the full document at http://testbankexpress.com a. b. c. d. #/0 d 9g. 2 ##:/;0

critical thinking skills vision social responsibility creativity 30 4564 #nalytic

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+(. #lejandro is seeking to revitalize his graphic design company $ith ne$ innovations and has called a brainstorming meeting $ith his top designers. #lejandro is practicing ________. a. vision b. productivity c. critical thinking d. creativity #/0 d 9g. 2 ##:/;0

30 4564 #nalytic

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+*. 3eedback from customers is an e>ample of a%n& ________ that re!uires organizational change. a. internal force b. e>ternal force c. change agent d. marketing issue #/0 b 9g. 2 ##:/;0

30 4564 #nalytic

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++. =hich of the follo$ing is N"T an e>ample of an internal force that re!uires organizational change@ a. labor union demands b. production problems c. ne$ technologies d. ne$ company goals #/0 c 9g. 2 ##:/;0

30 4564 #nalytic

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+. ________ refers to standards of conduct and moral values of a firm. a. creativity b. business ethics c. a social audit d. social responsibility #/0 b 9g. 22 ##:/;0

30 5#/G 5thics

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1.* =hat 4akes a :ompany #dmired@ <

. Ae$man’s 8$nB is a food product line that gives 1 percent of its after-ta> profits to charity. )his company is practicing ________. a. business ethics b. social responsibility


Download the full document at http://testbankexpress.com c. d. #/0 b 9g. 22 ##:/;0

customer satisfaction creativity 30 4564 5thics

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1. =hen management adheres to a set of standards involving the right and $rong actions arising in the $ork environment, management is practicing ________. a. social responsibility b. business ethics c. social $elfare d. creativity #/0 b 9g. 22 ##:/;0

30 5#/G 5thics

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2. =hen management’s decisions align $ith social and economic issues, the company is practicing ________. a. creativity b. business ethics c. social $elfare d. social responsibility #/0 d 9g. 22 ##:/;0

30 5#/G 5thics

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. /ocial responsibility $ould include all of the follo$ing E#CE!T ________. a. supporting the local 6nited =ay b. buying goods and services from minority-o$ned vendors c. making campaign contributions to politicians in the hope of obtaining a government contract d. making contributions to the local public radio station #/0 c 9g0 22 ##:/;0

30 4564 5thics

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T$UE%FASE

". 7arge corporations are defined as businesses, $hereas small companies are more of an investment. #/0 3 9g. " ##:/;0


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'. :ompanies are not re!uired to be ethical to succeed in the long run. #/0 3

30

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(. n order to remain viable, not-for-profit organizations need to focus on profits even more than the public service they provide. #/0 3 9g. " ##:/;0

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*. Just as $ith a for-profit business, the first priority for a not-for-profit organization is making a profit. #/0 3 9g. " ##:/;0

30 4564 #nalytic

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+. ot-for-profit organizations are commonly e>empt from federal, state, and local ta>es. #/0 ) 9g. " ##:/;0

30 4564 #nalytic

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. #ll factors of production are found in e!ual amounts in all businesses. #/0 3 9g. ( ##:/;0


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1. :apital includes money, machines, tools, buildings, and human resources. #/0 3 9g. ( ##:/;0


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11. atural resources are linked to the factor payment of rent. #/0 ) 9g. ( ##:/;0

30 4564 #nalytic

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12. )echnology is considered to be capital. #/0 ) 9g. ( ##:/;0


1. )echnology and capital are considered t$o separate factors of production. #/0 3 9g. ( ##:/;0


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1". =hen farmers rent land in order to increase crop production, they are ac!uiring capital. #/0 3 9g. ( ##:/;0


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1'. 5ntrepreneurship is synonymous $ith Krisk-taking.’


Download the full document at http://testbankexpress.com #/0 ) 9g. ( ##:/;0


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1(. )he private enterprise system encourages government intervention. #/0 3 9g. + ##:/;0


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1*. )he private enterprise system is enhanced by ma>imized government participation. #/0 3 9g. + ##:/;0


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1+. #dam /mith’s Ainvisible handB refers to the battle among businesses for consumer acceptance. #/0 ) 9g. + ##:/;0


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1. )he private enterprise system is also referred to as capitalism. #/0 ) 9g. + ##:/;0


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11. 9rivate property is considered the most important right in the private enterprise system. #/0 ) 9g. + ##:/;0

30 4564 #nalytic

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111. =hen customers enter a supermarket and select their favorite brand of laundry detergent, they are e>ercising their right to freedom of choice. #/0 ) 9g. + ##:/;0

30 4564 #nalytic

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112. =hen the government sets ground rules for competitive activity, the intent is to increase freedom of choice for consumers. #/0 ) 9g. + ##:/;0


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11. n the private enterprise system, government has no role to play in ensuring fair competition. #/0 3 9g. + ##:/;0

30 4564 #nalytic

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11". :ompetitive differentiation is discouraged in order for a business’ success. #/0 3 9g. + ##:/;0

30 4564 #nalytic

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Download the full document at http://testbankexpress.com 11'. 3inding uni!ue $ays to use the factors of production is a common characteristic of most entrepreneurs. #/0 ) 9g. + ##:/;0

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11(. 5ntrepreneurs are very conservative and usually invest only in sure $inners. #/0 3 9g. + ##:/;0


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11*. uring the ndustrial era, the focus $as on agriculture and other rural activities. #/0 3 9g. 12 ##:/;0

30 4564 #nalytic

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11+. )he ndustrial Eevolution began in Hermany and !uickly spread to the rest of 5urope. #/0 3 9g. 12 ##:/;0

30 4564 #nalytic

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11. )he ndustrial Eevolution introduced a strong emphasis on the factory system. #/0 ) 9g. 12 ##:/;0

30 4564 #nalytic

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12. 8ne factor that led to the ndustrial Eevolution $as the mechanization of agriculture. #/0 ) 9g. 12 ##:/;0

30 4564 #nalytic

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121. # key element of the production era $as the use of consumer research. #/0 3 9g. 12 ##:/;0

30 4564 #nalytic

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122. #ssembly lines $ere introduced during the production era. #/0 ) 9g. 12 ##:/;0

30 4564 #nalytic

780 ;)0


12. n consumer orientation, a company creates a product first, and then determines if the consumer $ill likely purchase the product. #/0 3 9g. 12 ##:/;0

30 4564 #nalytic

780 ;)0


780 ;)0


12". )he ike s$oosh is an e>ample of a brand. #/0 ) 9g. 12 ##:/;0

30 4564 #nalytic


Download the full document at http://testbankexpress.com 12'. )he current philosophy among managers today is best described as transaction management. #/0 3 9g. 12 ##:/;0


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12(. )ransaction management $as introduced during the industrial era. #/0 3 9g. 12 ##:/;0


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12*. )echnology has revolutionized business communications. #/0 ) 9g. 12 ##:/;0


780 ;)0


12+. Eelationship management refers to ongoing, mutually beneficial ties bet$een a company and its vendors. #/0 3 9g. 12 ##:/;0


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12. t is predicted that technology $ill completely eliminate all cubicle jobs. #/0 3 9g. 12 ##:/;0


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1. Eelationship management concentrates on short-term interactions $ith customers. #/0 3 9g. 12 ##:/;0


780 ;)0


11. )he number of companies forming partnerships and strategic alliances has gro$n in recent years. #/0 ) 9g. 12 ##:/;0


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12. #mazon is an e>ample of a successful e-business. #/0 ) 9g. 12 ##:/;0


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1. #ssume 4otorola and 4icrosoft $ork on developing a ne$ cell phone that also is a 9#. )his is an e>ample of a strategic alliance. #/0 ) 9g. 12 ##:/;0

30 4564 #nalytic

780 ;)0


1". The need to develop environmentally friendly products and processes is becoming a major new force in business today.


Download the full document at http://testbankexpress.com #/0 ) 9g. 12 ##:/;0


780 ;)0


1'. # strategic alliance is a partnership formed to create competitive advantage for the businesses involved. #/0 ) 9g. 12 ##:/;0


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1(. 4anagers are beginning to recognize the different needs of $orkers of different ages. #/0 ) 9g. 1* ##:/;0


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1*. uring the ne>t fe$ years, the average age of the $orkforce is e>pected to increase. #/0 ) 9g. 1* ##:/;0


780 ;)0


1+. )he supply for jobs is slo$ly becoming greater than the demand for $orkers. #/0 3 9g. 1* ##:/;0

30 4564 #nalytic

780 ;)0


1. ?ispanics and #sians represent the fastest gro$ing segments of the 6./. population. #/0 ) 9g. 1* ##:/;0


780 ;)0


1". Eesearch indicates that $ork teams consisting of a diverse group of individuals often are more productive than less diverse $ork teams. #/0 ) 9g. 1* ##:/;0

30 4564 iversity

780 ;)0


1"1. 5ven $ith advances in management and communications, manufacturing still accounts for most of the annual output in the 6nited /tates. #/0 3 9g. 1* ##:/;0


780 ;)0


1"2. 8utsourcing is the use of outside vendors to produce goods or fulfill services and functions that $ere previously handled in-house or in-country. #/0 ) 9g. 1* ##:/;0

30 4564 #nalytic

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1". )oday, $orkers are much less likely to remain $ith the same employer throughout their entire careers. #/0 )

30

5#/G

780

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1"". )he ne$ employer-employee relationship re!uires firms to establish rigid rules to govern employee activities. #/0 3 9g. 1* ##:/;0

30 4564 #nalytic

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1"'. )he managerial !uality of vision is the ability to perceive marketplace needs and $hat an organization must do to satisfy them. #/0 ) 9g. 2 ##:/;0

30 4564 #nalytic

780 ;)0


1"(. :ritical thinking skills and creativity are essential !ualities for today’s managers. #/0 ) 9g. 2 ##:/;0


780 ;)0


780 ;)0


1"*. ot all people have creative skills. #/0 3 9g. 2 ##:/;0

30 4564 #nalytic

1"+. :reativity is the capacity to develop $ell-tested solutions to common organizational problems. #/0 3 9g. 2 ##:/;0

30 4564 #nalytic

780 ;)0


1". 9hysical e>ercise releases endorphins, $hich can help a manager come up $ith creative ideas. #/0 ) 9g. 2 ##:/;0

30 4564 #nalytic

780 ;)0


1'. 4ental e>ercises like brainstorming often foster creativity. #/0 ) 9g. 2 ##:/;0


780 ;)0


1'1. 3eedback from customers is an e>ample of an internal force that $ould re!uire change. #/0 3 9g. 2 ##:/;0

30 4564 #nalytic

780 ;)0


1'2. ;usiness ethics deal $ith the right versus $rong actions that arise in a $ork environment. #/0 ) 9g. 22 ##:/;0

30 5#/G 5thics

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1'. 9articipating in not-for-profit programs is an e>ample of e>hibiting social responsibility.


Download the full document at http://testbankexpress.com #/0 ) 9g. 22 ##:/;0

30 5#/G 5thics

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1'". ;y supporting local charities, a firm is demonstrating social responsibility. #/0 ) 9g. 22 ##:/;0

30 5#/G 5thics

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Boone Contemporary Business 15e

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