Moraine Valley Community College - BUS 100 Chapter 9-12 Chapter 9

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37) Which of the following describes the concept of leadership? A) the processes and behaviors used by someone to determine the optimal decision among several options B) the processes and behaviors ... used by someone to motivate, inspire, and influence the behaviors of others C) the processes and behaviors used by someone to establish the organizational structure of a firm D) the processes and behaviors used by someone to manage the functioning of an organization E) the processes and behaviors used by someone to achieve tangible outcomes within an organization : B Explanation: B) Leaders set agendas and inspire others to follow their direction. Page Ref: 222 Difficulty: Easy Objective: 9.1 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Concept 38) Whereas managers focus on plans, results, and goals, what do leaders focus on? A) productivity B) profitability C) people D) sales E) organization : C Explanation: C) Leadership is concerned with motivating and inspiring people, rather than controlling and organizing a company. Page Ref: 222 Difficulty: Easy Objective: 9.1 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Concept 39) Which tasks do managers typically focus on? A) monitoring organizational goals B) agenda setting C) aligning the organization with its environment D) inspiring employees E) planning and budgeting : E Explanation: E) Management is concerned with the running of an organization. Page Ref: 222 Difficulty: Easy Objective: 9.1 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Concept 40) When creating an agenda, what do leaders focus on? A) establishing direction B) controlling and problem solving C) organizing and staffing D) outlining procedures E) planning and budgeting : A Explanation: A) This is the prime concern of a leader. Page Ref: 222 Difficulty: Easy Objective: 9.1 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Concept 41) When developing the human resources for achieving an agenda, what do managers focus on? A) establishing direction B) controlling and problem solving C) organizing and staffing D) aligning people E) motivating and inspiring : C Explanation: C) This is the primary methodology for a manager to achieve his or her goals. Page Ref: 222 Difficulty: Easy Objective: 9.1 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Concept 42) When developing the human resources necessary for achieving an agenda, what do leaders focus on? A) establishing direction B) controlling and problem solving C) organizing and staffing D) aligning people and goals E) establishing workplace policies : D Explanation: D) Aligning people to work together toward an agenda is one of the leadership responsibilities. Page Ref: 222 Difficulty: Easy Objective: 9.1 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Concept 43) What area was the earliest research on leadership most concerned with? A) leadership behaviors B) leadership traits C) leadership situations D) leadership integrity E) leadership roles : B Explanation: B) The trait approach to leadership yielded various lists of attributes that successful leaders often have. Page Ref: 223 Difficulty: Easy Objective: 9.2 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Concept 44) What was a major problem with the trait approach to leadership? A) The results were too innovative and thus were not taken seriously at the time. B) The results were too inconsistent and thus not very practical. C) The results were not very inspiring and thus ignored. D) The results were found to be too pessimistic and thus were dismissed as useless. E) The results were too worshipful of certain leaders and thus were dismissed as irrelevant. : B Explanation: B) These early studies never really managed to agree with each other. Page Ref: 223 Difficulty: Difficult Objective: 9.2 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Concept 45) Which of the following best describes task-focused leader behavior? A) concentration on how tasks should be performed B) concentration on which tasks should be performed C) concentration on why tasks should be performed D) concentration on who should perform which tasks E) concentration on when tasks should be performed : A Explanation: A) Task-focused leader behavior occurs when a leader focuses on how tasks should be performed in order to meet certain goals and to achieve certain performance standards. Page Ref: 224 Difficulty: Easy Objective: 9.2 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Concept 46) Which of the following best describes employee-focused leader behavior? A) concentration on both the work quality and work quantity of employees B) concentration on both the well-being and work quality of employees C) concentration on both the satisfaction and work quantity of employees D) concentration on both the satisfaction and the well-being of employees E) concentration on both the work quantity and the well-being of employees : D Explanation: D) Employee-focused leader behavior occurs when a leader focuses on the satisfaction, motivation, and well-being of his or her employees. Page Ref: 224 Difficulty: Easy Objective: 9.2 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Concept 47) Which of the following describes one of the primary concerns associated with charismatic leadership due to severe devotion to a particular leader? A) the potential lapse of ethical practices B) the potential inability to replace leadership efficiently C) the potential encouragement of micromanaging D) the potential stagnation of corporate vision E) the potential creation of bureaucracy : A Explanation: A) Although many of these reflect hazards of charismatic leadership, overzealousness of supporters has often lead to serious ethical lapses of judgment. Page Ref: 226 Difficulty: Moderate AACSB: Reflective thinking skills Objective: 9.4 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Concept 48) Bill Lopez spends most of his time performing normal, routine tasks. Which of the following types of leadership is he primarily involved with? A) charismatic leadership B) transformational leadership C) behavioral leadership D) situational leadership E) transactional leadership : E Explanation: E) Transactional leadership is essentially the same as management in that it involves routine, regimented activities. Page Ref: 226 Difficulty: Easy AACSB: Reflective thinking skills Objective: 9.4 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Application 49) Which of the following accurately describes a primary characteristic of charismatic leaders? A) They tend to set high expectations for themselves and energize others. B) They tend to set high expectations for themselves and establish high standards for others. C) They tend to establish high standards for and energize others. D) They tend to energize others and establish good, stable practices. E) They tend to set high expectations for themselves and establish good, stable practices. : A Explanation: A) High standards are practiced through example in charismatic leadership, more than insisting that everyone follow them. Page Ref: 226 Difficulty: Difficult Objective: 9.4 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Concept 50) Which of the following organizational aspects allows employees to perform capably without the direction of a leader? A) leadership neutralizers B) leadership substitutes C) leadership incentives D) leadership guidelines E) leadership obstructions : B Explanation: B) Leadership substitutes are individual, task, and organizational characteristics that tend to outweigh the need for a leader to initiate or direct employee performance. Page Ref: 227 Difficulty: Easy Objective: 9.5 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Concept 51) Which of the following best describes the effects of leadership neutralizers in an organization? A) They tend to make leader behavior ineffective. B) They tend to make leaders more charismatic. C) They tend to outweigh the need for leader behavior. D) They tend to make managers become effective leaders. E) They tend to make leaders more neutral toward employees. : A Explanation: A) Leadership neutralizers are factors that may render leader behaviors ineffective. Page Ref: 227 Difficulty: Easy Objective: 9.5 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Concept 52) Which of the following may be substitutes for leadership? A) lax individual professionalism B) group divisiveness C) explicit plans and goals D) a loose system of rules and procedures E) a performance-based reward system : C Explanation: C) These may make the need for a leader to plan things out ineffective or unnecessary. Page Ref: 227 Difficulty: Easy Objective: 9.5 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Concept 53) Bob, Joe, and Larry can all perform their jobs well without supervision. What does this indicate? A) presence of a rigid reward system B) presence of a leadership neutralizer C) presence of a leadership substitute D) presence of a leadership incentive E) presence of a highly automated system : C Explanation: C) This is precisely an example of a situation for which a leader is not needed. Page Ref: 227 Difficulty: Moderate AACSB: Reflective thinking skills Objective: 9.5 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Application 54) The norms of the engineering group at Acme Incorporated are so strong that there is nothing the new company leader can do to change things. What does this illustrate? A) leadership charisma B) leadership neutralizers C) leadership substitutes D) leadership mandates E) leadership amplifiers : B Explanation: B) This is one example of a leadership neutralizer. Page Ref: 227 Difficulty: Moderate Objective: 9.5 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Application 55) Which of the following types of leaders has the primary role of helping a less experienced person learn how to function and to advance within an organization? A) enabler B) mentor C) manager D) task master E) motivator : B Explanation: B) Mentors help less experienced employees learn the ropes and advance within the organization. Page Ref: 229 Difficulty: Easy Objective: 9.6 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Concept 56) Which is the most accurate statement regarding one of the main differences between the Japanese and American cultures? A) Overall, Japanese culture is often characterized as conservative, whereas American culture is often characterized as liberal. B) Overall, Japanese culture is often characterized as rigidly structured, whereas American culture is often characterized as loosely structured. C) Overall, Japanese culture is often characterized as authoritarian, whereas American culture is often characterized as democratic. D) Overall, Japanese culture is often characterized as collectivist, whereas American culture is often characterized as individualist. E) Overall, Japanese culture is often characterized as socialist, whereas American culture is often characterized as capitalist. : D Explanation: D) This is often the primary difference between the structures of Japanese and American firms. Page Ref: 229-230 Difficulty: Easy AACSB: Multicultural and diversity understanding Objective: 9.6 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Application 57) Which part of the management of an organization would be most involved with strategic leadership? A) the top level of management B) the supervisory level of management C) the advisory level of management D) the auxiliary level of management E) all levels of management : A Explanation: A) Strategic leadership explicitly relates leadership to the role of top management. Page Ref: 230 Difficulty: Easy Objective: 9.7 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Concept 58) Recent corporate scandals at firms like Enron have brought increased attention to what area of leadership? A) virtual leadership B) ethical leadership C) strategic leadership D) employee-focused leadership E) charismatic leadership : B Explanation: B) This type of scrutiny, had it been present, may have prevented the 2008 economic meltdown. Page Ref: 230 Difficulty: Easy AACSB: Ethical understanding and reasoning abilities Objective: 9.7 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Application 59) Which of the current business characteristics has brought the rise of virtual leadership? A) more communication within the organization B) little communication among employees C) more face-to-face communication within the organization D) less face-to-face communication within the organization E) little communication between employees and management : D Explanation: D) That is, telecommuting. Page Ref: 230 Difficulty: Easy Objective: 9.7 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Concept 60) Which of the following is the name for choosing one alternative from among several options? A) decision making B) assessment C) evaluation D) discernment E) arbitration : A Explanation: A) This is the definition of decision making. Page Ref: 231 Difficulty: Easy Objective: 9.8 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Concept 61) What is the first step in rational decision making? A) understanding who will make the decision B) recognizing that a decision is necessary C) identifying alternatives to the problem D) choosing an alternative E) implementing the alternative : B Explanation: B) The first step is figuring out that a first step is needed. Page Ref: 232 Difficulty: Easy Objective: 9.8 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Concept 62) What is the definition of a coalition? A) an informal group formed to achieve a common goal B) an institution incorporated in order to achieve a common goal C) a pro-business political party D) the network of management within a firm E) the network of employees within a firm : A Explanation: A) All of the other s are possible specific examples of a coalition, but not its overall definition. Page Ref: 234 Difficulty: Easy Objective: 9.8 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Concept 63) Managers at Adidas had a hunch that their sponsorship deal with the Yankees would be a good one. Their feelings were based on what concept? A) escalation of commitment B) risk propensity C) intuition D) perception E) rational decision making : C Explanation: C) Intuition is based on feeling the , rather than analyzing the situation. Page Ref: 235 Difficulty: Easy AACSB: Reflective thinking skills Objective: 9.8 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Application 64) Which of the following reflects the extent to which a leader is willing to gamble when making a decision? A) escalation of commitment B) overconfidence C) caution D) intuition E) risk propensity : E Explanation: E) The organization's culture is a prime ingredient in fostering different levels of risk propensity. Page Ref: 235 Difficulty: Easy Objective: 9.8 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Concept 65) Anne bought stock in ABC Company in hopes of making a profit. Although the stock's price steadily continued to drop, she refused to sell her stock. What does this illustrate? A) risk propensity B) escalation of commitment C) intuition D) perception E) caution : B Explanation: B) This is an example of committing to a decision and sticking it out. Page Ref: 235 Difficulty: Moderate AACSB: Reflective thinking skills Objective: 9.8 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Application 66) Which of the following do organizations need in order to be effective? A) more leadership than management B) more management than leadership C) both leadership and management D) either leadership or management E) neither leadership nor management : C Explanation: C) Leadership is necessary to create and direct change and to help the organization get through tough times; management is necessary to achieve coordination and systematic results and to handle administrative activities during times of stability. Page Ref: 223 Difficulty: Moderate Objective: 9.1 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Concept 67) Which of the following statements is the MOST accurate? A) Effective managers lead for stability whereas visionary leaders lead for change. B) Effective leaders lead for stability whereas visionary managers lead for change. C) Visionary managers lead for stability whereas effective leaders lead for change. D) Strategic leaders lead for stability whereas transforming leaders lead for change. E) Strategic managers lead for stability whereas transforming managers lead for change. : A Explanation: A) Management in conjunction with leadership can help achieve planned change, and leadership in conjunction with management can keep the organization aligned with its environment. Page Ref: 222 Difficulty: Moderate AACSB: Reflective thinking skills Objective: 9.1 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Concept 68) In interviews with two leadership applicants, Ben tried to determine each person's knowledge of the industry, level of energy, and level of self-esteem. With which of the following concepts of leadership is Ben most concerned here? A) charismatic leadership B) behavioral leadership C) situational leadership D) trait-based leadership E) transformational leadership : D Explanation: D) With trait theory, some people believe that intelligence, drive, motivation, honesty, integrity, self-confidence, cognitive ability, knowledge of the business, charisma, biological factors, and other variables play a role in one's leadership style. Page Ref: 223 Difficulty: Moderate AACSB: Reflective thinking skills Objective: 9.2 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Application 69) Which of the following statements best describes the assumptions made by researchers of the behavioral approach to leadership? A) Behaviors of effective leaders differ in various situations. B) Behaviors of effective leaders are the same in all situations. C) Behaviors of effective leaders reflect the proper traits for effective leadership. D) Behaviors of effective leaders differ as reflected by different traits for effective leadership. E) Behaviors of effective leaders reflect the proper disposition for effective leadership. : B Explanation: B) Behavioral researchers assumed that the behaviors of effective leaders differed somehow from the behaviors of less effective leaders, and that the behaviors of effective leaders would be the same across all situations. Page Ref: 224 Difficulty: Moderate Objective: 9.2 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Concept 70) A company leader who often uses the phrase "that was then and this is now" to explain his decisions most likely follows which model of leadership? A) situational leadership B) trait-based leadership C) tranformational leadership D) transactional leadership E) charismatic leadership : A Explanation: A) That leaders sometimes focus on employee-focused behaviors and sometimes on task-focused behaviors led to situational theories. Page Ref: 224 Difficulty: Moderate Objective: 9.3 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Application 71) According to the situational approach to leadership, the extent to which a leader or subordinate is involved in decision making depends on characteristics of which aspects of an organization? A) the leader, the followers, and the situation B) the leader, the structure of the organization, and the situation C) the leader, the resources at hand, and the situation D) the followers, the resources at hand, and the situation E) the resources, the structure of the organization, and the situation : A Explanation: A) This approach was first proposed as a continuum of leadership behavior, with one extreme of having the leader make decisions alone to the other extreme of having employees make decisions with only minimal guidance from the leader; each point on the continuum is influenced by characteristics of the leader, his or her subordinates, and the situation. Page Ref: 224 Difficulty: Moderate Objective: 9.3 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Concept 72) What are group effectiveness, worker disposition, and the type of organization examples of? A) cross-cultural traits that may affect a leader's decision making B) behavioral issues that may affect a leader's decision making C) strategic advantages that may affect a leader's decision making D) leadership obstructions that may affect a leader's decision making E) situational characteristics that may affect a leader's decision making : E Explanation: E) These are the things that make a decision-making situation unique and thus affect the outcome of a decision. Page Ref: 224 Difficulty: Moderate Objective: 9.3 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Concept 73) Which of the following is an example of an approach to leadership as seen through the eyes of followers? A) situational leadership B) ethical leadership C) behavioral leadership D) transformational leadership E) trait-based leadership : D Explanation: D) Both transformational leadership and charismatic leadership are approaches to leadership as seen through the eyes of followers. Page Ref: 225 Difficulty: Moderate Objective: 9.4 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Concept 74) Which of the following may describe charismatic leadership? A) an approach to leadership emphasizing the perspectives of the leader B) an approach to leadership emphasizing the perspectives of the followers C) an approach to leadership emphasizing the perspectives of the clientele D) an approach to leadership emphasizing the perspectives of the managers E) an approach to leadership emphasizing the perspectives of all parties in the organization : B Explanation: B) Both transformational and charismatic leadership are approaches to leadership as seen through the eyes of followers. Page Ref: 226 Difficulty: Moderate AACSB: Reflective thinking skills Objective: 9.4 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Concept 75) GDB Technologies has had lackluster performance for the past few years. Choi is hired in an attempt to revivify the company's prospects and give it new direction away from its current situation. Which of the following best describes Choi's leadership role? A) transformational B) charismatic C) transactional D) situational E) cross-cultural : A Explanation: A) Transformational leadership involves using a set of abilities that allows a leader to recognize the need for change, to create a vision to guide that change, and to execute the change. Page Ref: 225 Difficulty: Moderate AACSB: Reflective thinking skills Objective: 9.4 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Application 76) Carol took over a stagnant firm three years ago. At that time, she clearly laid out her vision of where the firm should go and since that time has worked to energize the employees of the firm toward these goals. Which of the following best describes Carol's leadership role? A) transformational B) charismatic C) transactional D) situational E) cross-cultural : B Explanation: B) This is typical charismatic leadership at work. Page Ref: 226 Difficulty: Moderate AACSB: Reflective thinking skills Objective: 9.4 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Application 77) At Nordic Enterprises, Johann is most effective in carrying out the management of daily tasks that must be performed. Which of the following best describes Johann's leadership role? A) charismatic B) transactional C) transformational D) behavorial E) situational : B Explanation: B) Transactional leadership is essentially the same as management in that it involves routine, regimented activities. Page Ref: 225 Difficulty: Moderate AACSB: Reflective thinking skills Objective: 9.4 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Application 78) Which of following describes the activities most involved with transactional leadership? A) the implementation of a corporate vision B) the implementation of organizational transformations C) the implementation of routine activities D) the implementation of employee incentives E) the implementation of situational problem-solving : C Explanation: C) Transactional leadership is essentially the same as management in that it involves routine, regimented activities. Page Ref: 225 Difficulty: Moderate Objective: 9.4 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Concept 79) Which of the following is a fundamental element of charismatic leadership? A) planning B) controlling C) analyzing D) influencing E) organizing : D Explanation: D) Charismatic leadership is a type of influence based on the leader's personal charm. A highly charismatic supervisor will be more successful in influencing subordinate behavior than a supervisor who lacks charisma. Page Ref: 226 Difficulty: Moderate AACSB: Reflective thinking skills Objective: 9.4 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Concept 80) Which statement is true regarding charismatic leadership? A) Charismatic leadership ideas are unpopular among contemporary managers. B) Many studies have successfully assessed the impact of charismatic leadership. C) Charismatic leadership is recognized as the most important approach to leadership. D) Dependence on charismatic leadership can raise serious ethical concerns. E) Taking over a leadership role from a charismatic leader is often easier than following a leader lacking in charisma. : D Explanation: D) Charismatic leaders can inspire such blind faith in their followers that they may engage in inappropriate, unethical, or even illegal behaviors just because the leader instructed them to do so. Page Ref: 226 Difficulty: Moderate Objective: 9.4 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Concept 81) Steven learned that the cohesiveness among his employees was so strong that there was nothing he could do to change things. Which of the following best describes this cohesiveness? A) leadership neutralizer B) leadership substitute C) leadership mandate D) leadership amplifier E) leadership incentive : A Explanation: A) A leader may be powerless to improve things because a group is so cohesive; leadership neutralizers render certain leadership behaviors ineffective regardless of the extent to which they are present. Page Ref: 227 Difficulty: Moderate AACSB: Reflective thinking skills Objective: 9.5 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Application 82) According to current theories of gender roles in leadership, which of the following best describes the differences in decision making? A) Males tend to be more democratic than females in making decisions. B) Males tend to be more critical than females in making decisions. C) Males tend to be more autocratic than females in making decisions. D) Males tend to be more rational than females in making decisions. E) Males tend to be more charismatic than females in making decisions. : C Explanation: C) One difference that does seem to arise in some cases, according to the text, is that women have a tendency to be slightly more democratic in making decisions, whereas men have a tendency to be more autocratic. Page Ref: 229 Difficulty: Moderate AACSB: Multicultural and diversity understanding Objective: 9.6 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Concept 83) As ABC Enterprises has grown during the past few years, more and more workers have been hired from the local Ethiopian population. A number of incidents at the firm have arisen during this time regarding certain customs prevalent among these new workers. Which of the following forms of leadership does the management of this firm need to utilize in order to most harmonize this situation? A) autocratic leadership B) democratic leadership C) cross-cultural leadership D) charismatic leadership E) mentoring leadership : C Explanation: C) Some of these other s may be local solutions. But the wider situation can only be solved by taking the cross-cultural effects into account for any leadership decisions. Page Ref: 230 Difficulty: Moderate AACSB: Multicultural and diversity understanding Objective: 9.6 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Application 84) Which states the correct definition of collectivism? A) a greater focus on group characteristics than on individual characteristics B) a greater focus on the group than on the individual C) a greater focus on the individual within a group than on the individual without a group D) a greater focus on individuals who are most successful E) a greater focus on groups that have been operative for the longest time : B Explanation: B) All of the other s are parts of collectivism, but not the whole concept. Page Ref: 229 Difficulty: Moderate Objective: 9.6 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Concept 85) Which states the correct definition of individualism? A) a greater focus on individual characteristic than on cultural characteristics B) a greater focus on the individual than on the group C) a greater focus on the individual within a group than on the individual without a group D) a greater focus on individuals who have been present for the longest time E) a greater focus on individuals who are in leadership roles : B Explanation: B) All of the other s are parts of individualism, but not the whole concept. Page Ref: 230 Difficulty: Moderate AACSB: Reflective thinking skills Objective: 9.6 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Concept 86) In exercising strategic leadership, what is a leader most likely to do? A) focus on company efficiency B) focus on hiring the right people C) align the company with its environment D) avoid environmental impact on the firm E) engage the firm with community organizations : C Explanation: C) Strategic leadership is a leader's ability to understand the complexities of both the firm and its environment and to lead change in the firm so as to achieve and maintain a superior alignment between the organization and its environment. Page Ref: 230 Difficulty: Moderate AACSB: Reflective thinking skills Objective: 9.7 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Concept 87) An inward belief about something, often without conscious consideration, is often referred to as what? A) intuition B) risk taking C) commitment D) discernment E) rationality : A Explanation: A) Intuition is an innate belief about something, without conscious consideration; managers sometimes decide to do something because it "feels right." Such an inner sense may help managers make an occasional decision without going through a full-blown rational sequence of steps. Page Ref: 235 Difficulty: Moderate Objective: 9.8 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Concept 88) Bill decides to study a foreign language. All of his friends said it will be easy. After the third week, he realizes the language is very difficult for him to grasp. He continues his studies, hoping that it will eventually get easier. What does this illustrate? A) rational decision making B) risk-taking decision making C) escalation of commitment D) intuitive decision making E) situational commitment : C Explanation: C) With escalation of commitment, decision makers make decisions and then become so committed to the course of action suggested by that decision that they stay with it, even when it appears to have been wrong. Page Ref: 235 Difficulty: Moderate AACSB: Reflective thinking skills Objective: 9.8 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Application 89) Leadership researchers in the late 1940s believed that leaders should engage in which of the following behaviors? A) mostly employee-focused leader behavior B) mostly task-focused leader behavior C) both employee-focused leader behavior and task-focused leader behavior in equal amounts D) a variable mixture of employee-focused leader behavior and task-focused behavior depending on the task E) a variable mixture of employee-focused leader behavior and task-focused behavior depending on the employees : C Explanation: C) In the late 1940s, most researchers began to shift away from the trait approach and to look at leadership as a set of actual behaviors. Page Ref: 224 Difficulty: Difficult Objective: 9.1 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Concept 90) Which statement is FALSE regarding gender and leadership? A) Theories regarding gender and leadership are not well-proven. B) Most leadership theories and studies have focused on males. C) There is much still to be learned about the dynamics of gender and leadership. D) There is a growing number of woman leaders in the business world today. E) Men tend to be more democratic than women in decision making. : E Explanation: E) Most theories and studies have focused on males; further, more work is needed in order to better understand the dynamics of gender and leadership. Page Ref: 229 Difficulty: Difficult AACSB: Multicultural and diversity understanding Objective: 9.6 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Concept 91) In selecting an alternative when making a decision, what should decision makers keep in mind? A) Finding multiple acceptable alternatives is neither possible nor efficient. B) Finding multiple acceptable alternatives should not take very long. C) Selecting one alternative and rejecting all others will be the decision maker's main objective. D) Selecting one alternative and rejecting all others might not be necessary. E) Selecting one alternative and rejecting all others should be a straightforward process. : D Explanation: D) Finding multiple acceptable alternatives may be possible; selecting one alternative and rejecting all the others might not be necessary. Further, selecting alternatives can be a long and difficult task. Page Ref: 233 Difficulty: Moderate Objective: 9.8 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Concept 92) Which of the following dispositions is typical for leaders with a high degree of risk propensity? A) reliance on intuition B) reliance on rational decisions C) aversion against use of intuition D) aversion against rational decisions E) aversion against use of both intuition and rational decisions : A Explanation: A) Managers with a high degree of risk propensity tend to rely heavily on intuition, reach decisions quickly, and often risk big investments on their decisions. Page Ref: 235 Difficulty: Difficult Objective: 9.8 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Concept 93) What is a prime ingredient in fostering different levels of risk propensity within an organization? A) organizational culture B) profitability level C) gender differences D) cross-cultural interactions E) company size : A Explanation: A) Risk propensity is the extent to which a decision maker is willing to gamble when making a decision; since some organizations' cultures are more conservative than others, organizational culture is a prime ingredient in fostering different levels of risk propensity. Page Ref: 235 Difficulty: Difficult AACSB: Reflective thinking skills Objective: 9.8 Learning Outcome: Summarize the major theories of and approaches to leadership Skill: Synthesis Chapter 10 24) What is another name given to human resource managers? A) financial managers B) personnel managers C) production managers D) accounting managers E) business development managers : B Explanation: B) Human resource or personnel managers have a substantial impact on a firm's performance as a business. Page Ref: 245 Difficulty: Easy Objective: 10.1 Learning Outcome: Summarize the functions carried out by human resources Skill: Concept 25) Which of the following outlines the duties of a job, its working conditions, and the tools, materials, and equipment used to perform it? A) job advertisement B) job specification C) job description D) job analysis E) job report : C Explanation: C) The job description is part of the job analysis process. Page Ref: 245 Difficulty: Easy Objective: 10.1 Learning Outcome: Summarize the functions carried out by human resources Skill: Concept 26) Which of the following describes the skills, abilities, and qualifications required for a job? A) staffing survey B) advertising budget C) job specification D) employee analysis E) replacement chart : C Explanation: C) A job specification lists the attributes an employee needs in order to perform the job effectively. Page Ref: 245 Difficulty: Easy Objective: 10.1 Learning Outcome: Summarize the functions carried out by human resources Skill: Concept 27) Which of the following contains information on each employee's education, skills, work experiences, and career aspirations? A) managerial grid B) employee information system C) job analysis D) job specification E) labor forecast : B Explanation: B) This system can quickly locate every employee who is qualified to fill a position. Page Ref: 246 Difficulty: Easy Objective: 10.1 Learning Outcome: Summarize the functions carried out by human resources Skill: Concept 28) Jean's paycheck is calculated from the number of hours worked during the week times her hourly rate. What type of system is used to pay Jean? A) gainsharing B) salary C) profit sharing D) wage E) incentive : D Explanation: D) A wage is the dollar amounts paid to employees for their labor. Page Ref: 250 Difficulty: Easy AACSB: Reflective thinking skills Objective: 10.4 Learning Outcome: Summarize the functions carried out by human resources Skill: Application 29) Which of the following links salary increases to performance levels in nonsales jobs? A) bonuses B) collective bargaining C) merit salary systems D) cafeteria benefit plans E) workers' compensation insurance : C Explanation: C) An example is the rewarding of executives with stock options. Page Ref: 251 Difficulty: Easy Objective: 10.4 Learning Outcome: Summarize the functions carried out by human resources Skill: Concept 30) Which plan refers to compensation other than wages and salaries and other incentives offered by a firm to its workers? A) profit-sharing B) gainsharing C) benefits D) pay-for-knowledge E) variable : C Explanation: C) Benefits account for an increasing percentage of most compensation budgets. Page Ref: 251 Difficulty: Easy Objective: 10.4 Learning Outcome: Summarize the functions carried out by human resources Skill: Concept 31) What is the name given to an employee who is hired on something other than a permanent or full-time basis? A) knowledge expert B) contingent worker C) technical employee D) supervisory manager E) managing director : B Explanation: B) Contingent workers include independent contractors, on-call workers, and leased employees. Page Ref: 257 Difficulty: Easy Objective: 10.4 Learning Outcome: Summarize the functions carried out by human resources Skill: Concept 32) What is the name given to a group of individuals, working together to achieve shared job-related goals such as higher pay, shorter working hours, greater benefits, or better working conditions? A) management organization B) company hierarchy C) labor union D) external organization E) permanent employees : C Explanation: C) The percentage of American workers belonging to a labor union has been declining over the last 15 years. Page Ref: 257 Difficulty: Easy Objective: 10.6 Learning Outcome: Summarize the functions carried out by human resources Skill: Concept 33) What is the process of dealing with employees who are represented by a union? A) labor relations B) human resource management C) negotiation D) arbitration E) contingency recruitment : A Explanation: A) A company executive needs special skills in dealing and negotiating with labor unions. Page Ref: 257 Difficulty: Easy Objective: 10.7 Learning Outcome: Summarize the functions carried out by human resources Skill: Concept 34) What is the process by which union leaders and managers negotiate common terms and conditions of employment for the workers represented by unions? A) striking B) picketing C) informational gathering D) collective bargaining E) compensation planning : D Explanation: D) It is the process in which a labor contract can be drafted for union-represented workers. Page Ref: 258 Difficulty: Easy Objective: 10.8 Learning Outcome: Summarize the functions carried out by human resources Skill: Concept 35) Which of the following occurs when union members agree not to buy the products of a targeted employer? A) lockout B) boycott C) mediation D) arbitration E) slowdown : B Explanation: B) Workers may also urge consumers to boycott the firm's products. Page Ref: 260 Difficulty: Easy Objective: 10.8 Learning Outcome: Summarize the functions carried out by human resources Skill: Concept 36) What term describes the situation when workers perform jobs at a less efficient pace? A) lockout B) boycott C) slowdown D) walkout E) strike : C Explanation: C) A variation on the slowdown is a sickout, when large numbers of workers call in sick. Page Ref: 260 Difficulty: Easy Objective: 10.8 Learning Outcome: Summarize the functions carried out by human resources Skill: Concept 37) If negotiations fail, what can a company choose to use to prevent union employees from coming to work? A) wildcat strike B) lockout C) strikebreaker D) economic strike E) bailout : B Explanation: B) Lockouts are illegal if they are used as offensive weapons to give management a bargaining advantage. Page Ref: 261 Difficulty: Easy Objective: 10.8 Learning Outcome: Summarize the functions carried out by human resources Skill: Concept 38) What occurs when a neutral third party dictates a settlement between two sides that have agreed to submit to outside judgment? A) mediation B) arbitration C) strikebreaker D) impasse E) picketing : B Explanation: B) In arbitration, the neutral third party (the arbitrator) dictates a settlement between the two sides, which have agreed to submit to outside judgment. Page Ref: 261 Difficulty: Easy Objective: 10.8 Learning Outcome: Summarize the functions carried out by human resources Skill: Concept 39) Which of the following is considered the starting point of effective human resource management? A) external staffing B) recruitment C) planning D) financing E) compensation : C Explanation: C) The starting point for effective human resource management is human resource planning, which involves job analysis and forecasting the demand for and supply of labor. Page Ref: 245 Difficulty: Moderate Objective: 10.1 Learning Outcome: Summarize the functions carried out by human resources Skill: Concept 40) What is the purpose of a skills inventory? A) to plan and identify people for transfer or promotion B) to list key managerial positions C) to describe the specifications for a job D) to assess trends in previous human resource usage E) to hire people from outside the organization : A Explanation: A) Some organizations also use employee information systems. Page Ref: 246 Difficulty: Moderate Objective: 10.1 Learning Outcome: Summarize the functions carried out by human resources Skill: Concept 41) Plants Galore is a business selling a range of indoor plants. In the past there has been a problem with plants being stolen by staff. Which of the following represents the biggest limitation in reference checks as a reliable way of assessing the value of prospective employees? A) Reference checks are illegal in a number of states. B) Reference checks obtained from previous employers are out of date. C) Some previous employers may no longer be in business. D) Some reference checks can be time consuming. E) Reference checks tend to only tap positive recommendations. : E Explanation: E) Reference checks have been shown to have limited value because individuals tend to provide the names of people who will give them positive recommendations. Page Ref: 248 Difficulty: Moderate AACSB: Reflective thinking skills Objective: 10.2 Learning Outcome: Summarize the functions carried out by human resources Skill: Application 42) Which of the following types of training occurs while the employee is at his or her place of work? A) on-the-job training B) vestibule training C) off-site training D) incentive training E) remote training : A Explanation: A) On-the-job training occurs while an employee is at work; most of this training is informal. Page Ref: 249 Difficulty: Easy Objective: 10.3 Learning Outcome: Summarize the functions carried out by human resources Skill: Concept 43) Fletcher is meeting with each of his subordinates to discuss their performance over the past year. What process is he involved in? A) job description B) labor negotiations C) vestibule assessment D) performance appraisal E) financial remuneration : D Explanation: D) In some small companies, performance appraisal takes place when the owner tells an employee that he or she is "doing a good job." In larger companies, performance appraisals are designed to show more precisely how well workers are doing their jobs. Page Ref: 249 Difficulty: Moderate Objective: 10.3 Learning Outcome: Discuss the factors that affect motivation and behavior in the workplace Skill: Application 44) What is the total package that a firm offers employees in return for their labor? A) wage B) salary C) benefits package D) compensation system E) retention plan : D Explanation: D) In addition, the compensation package is a major factor in retaining skilled workers. Page Ref: 249 Difficulty: Moderate Objective: 10.3 Learning Outcome: Summarize the functions carried out by human resources Skill: Concept 45) What do top executives often receive as incentives? A) merit salary systems B) workers' compensation insurance C) salaries D) stock options E) wages : D Explanation: D) Though stock options are common incentives, such options have been at the center of some of the recent accounting scandals plaguing some businesses today. Page Ref: 251 Difficulty: Moderate Objective: 10.4 Learning Outcome: Summarize the functions carried out by human resources Skill: Concept 46) A Web design company, Gen Max, is expanding rapidly and needs to hire middle managers in a climate where first to market is an imperative. Which incentive plan for these employees would best help the firm achieve its first to market goal? A) variable pay B) merit raises C) profit-sharing D) gainsharing E) pay-for-knowledge : A Explanation: A) Variable pay has proven to be a high motivator for work performance. The popularity of variable pay programs has increased in the United States over the last decade. Page Ref: 251 Difficulty: Moderate AACSB: Reflective thinking skills Objective: 10.4 Learning Outcome: Discuss the factors that affect motivation and behavior in the workplace Skill: Application 47) Which term refers to the situation in which middle managers are rewarded for especially productive output, such as for producing earnings that significantly exceed the cost of bonuses? A) wage inflation B) a merit salary system C) a gainsharing plan D) pay for performance E) salary sacrifice : D Explanation: D) Variable pay goes to middle managers on the basis of companywide performance, business unit performance, personal record, or all three factors. Page Ref: 251 Difficulty: Moderate Objective: 10.4 Learning Outcome: Summarize the functions carried out by human resources Skill: Concept 48) Ace Products' profits for fiscal year 2005 have exceeded estimates by over 2 million dollars. Which plan can Ace use to distribute part of this excess to employees? A) gainsharing plan B) profit-sharing plan C) cafeteria plan D) insurance plan E) salary-sharing plan : B Explanation: B) Under profit-sharing plans, profits earned above a certain level are distributed to employees. Page Ref: 251 Difficulty: Moderate Objective: 10.4 Learning Outcome: Summarize the functions carried out by human resources Skill: Application 49) Which of the following companywide incentive plans distribute bonuses to employees when a company's costs are reduced through greater work efficiency? A) wage setting plans B) pay for performance plans C) profit-sharing plans D) gainsharing plans E) pay-for-knowledge plans : D Explanation: D) Gainsharing plans distribute bonuses to employees when a company's costs are reduced through greater work efficiency. Page Ref: 251 Difficulty: Moderate Objective: 10.4 Learning Outcome: Summarize the functions carried out by human resources Skill: Concept 50) At Ace Products, employees receive a fixed dollar amount for benefits, but they may choose between various health insurance, life insurance, disability insurance, and educational benefits. What is the name of this plan? A) gainsharing B) profit-sharing C) cafeteria benefits D) equal employment E) retention benefits : C Explanation: C) With a cafeteria benefit plan, a certain dollar amount of benefits per employee is set aside so that each employee can choose from a variety of alternatives. Page Ref: 252 Difficulty: Moderate AACSB: Reflective thinking skills Objective: 10.4 Learning Outcome: Summarize the functions carried out by human resources Skill: Application 51) What was the fundamental reason why affirmative action was established? 52) Which legal concept holds that both employer and employee have the mutual right to terminate an employment relationship any time for any reason and without advance notice to the other? 53) Mary is a supervisor at her company. Under which legal concept is it legal for Mary to discharge all her employees without advance notice? 54) Workers such as computer scientists, engineers, and game developers who typically require extensive and highly specialize training are known as what? 55) Which term refers to employees hired to supplement a firm's permanent workforce? 56) What are independent contractors, on-call workers, temporary employees, contract employees, and leased employees all examples of? 57) What employment issue would a labor union be best equipped to resolve? 58) When does the collective bargaining process begin? 59) The insurance company Montas is negotiating with its labor union on varying aspects of the compensation package including remuneration and benefits. Which strategy would be most appropriate for the CEO to use in reaching agreement on the contract terms for the amount of staff vacation? 60) Which term refers to a labor action in which employees temporarily walk off the job and refuse to work? 61) Who are temporary or permanent replacements for striking workers? 62) Gretta is observing and interviewing several database administrators to determine the duties and responsibilities associated with their job as well as the knowledge, skills, and abilities that someone must have to perform the job. Which HR function is Gretta performing? 63) Where is a skills inventory often maintained? 64) Which selection technique is most likely to introduce bias? 65) Health Connect is a start-up software development company specializing in the design of imaging for medical practitioners. They are at the stage where they need to recruit a team of technical employees. Which of the following is the BEST reason for NOT relying solely on interviews when recruiting the technical staff? 66) When does the appraisal process begin? 67) A restaurant is undergoing a change in cuisine and style of service. It is important that new staff are hired and existing staff retrained. Why might the HR manager recommend vestibule training as being highly effective in this situation? 68) Which of the following constitutes an illegal hiring practice? 69) A large clothing retailer, Finch Line, has recently expanded but is having problems retaining experienced staff, despite paying salaries that are above industry averages. Which strategy would best support the HR manager's initiative to decrease the rate of turnover of the company's experienced staff? 70) Jane, a supervisor, has offered George, a subordinate, a raise and promotion in exchange for a sexual relationship. What type of harassment is this offer an example of? 71) Under what legal concept is Bill able to quit his job at the pickle factory at any time and without notice? 72) In considering the contributions of knowledge workers in the information age, what value do these employees add? 73) The Internet start-up company QuickThink is considering whether to hire recent college grad Thomas as a full-time employee or as a contingent worker. Which of the following is NOT a likely disadvantage to the company if they hired Thomas as a contingent worker rather than a full-time one? Chapter 11 23) What is the term for the process of creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders? 24) What is the term for intangible products, such as time, expertise, or an activity that can be purchased? 25) Which of the following identifies products that are dissimilar from those of competitors but can fulfill the same need? 26) What is the term for the type of competition based on buyers' perceptions of the benefits of products offered by particular companies? 27) What is the term for a detailed strategy for focusing marketing efforts on consumers' needs and wants? 28) What is the term that encompasses a good, a service, or an idea designed to fill a consumer need? 29) What do marketers call groups of people with similar wants and needs? 30) What type of variables are lifestyles, opinions, interests, and attitudes referred to as? 31) What is the decision process by which customers come to purchase and consume products? 32) What type of behavior do consumers exhibit by regularly purchasing products because they are satisfied with their performance? 33) What are the tangible and intangible qualities that a company builds into its products? 34) What is selling the rights to place a brand name on products such as t-shirts referred to as? 35) When a wholesaler or retailer develops a brand name and has the manufacturer place that name on the product, what is that product name called? 36) A product's benefits include all of the following EXCEPT which? 37) What type of goods include raw materials and integrated circuits? 38) What type of marketing do insurance companies, airlines, investment counselors, health clinics, and public accountants typically engage in? 39) What type of marketing is a "loyalty banking" program an example of? 40) What is data warehousing? 41) Congress has conducted hearings on the use of cell phones while driving. What factors would this constitute in a company's external environment? 42) Marketing managers often support the activities of political action committees (PACs). In doing this, which environment are they attempting to influence? 43) A company decides to introduce a line of golf gear designed specifically for women. What environmental trend is the company responding to? 44) What kind of factor in the business environment are cell phones considered an example of? 45) The satellite dish and home television shopping provide examples of changes to which of the following external environmental factors that affect marketing? 46) What are fitness programs and drug regimens to lower cholesterol levels both an example of? 47) What part of the marketing mix includes communicating information about products? 48) Which is usually the first step in the marketing strategy? 49) Burberry is repositioning itself as a global luxury brand, such as Gucci and Louis Vuitton, and calls for luring a different type of customer. This is an example of what type of market segmentation? 50) Which of the following is the LEAST important influence on consumer behavior? 51) In consumer behavior, what is the name for the influences that include the "way of living" that distinguishes one large group from another and one ethnic group from another? 52) What do consumers exhibit when they regularly purchase products because they are satisfied with the products' performance? 53) Reading the relevant issues of Consumer Reports prior to purchasing a product is an example of what part of the consumer buying process? 54) Marketing does not stop with the sale of a product. What is the term that describes what happens after the sale? 55) What do B2B buyer-seller situations often involve? 56) Bill is looking for an insurance policy at an affordable price. What type of good or service is he looking for? 57) What type of good is a custom-made wedding gown classified as? 58) A firm makes bookcases, bicycles, soft drinks, armored cars, and novelty dishes. What do these items make up? 59) What results when companies extend their horizons and identify opportunities outside existing product lines? 60) During the product life cycle, when do sales begin to climb and the product begin to show profit? 61) During the product life cycle, when do sales begin to slow down while profit levels are high? 62) LiveLong Company provides volunteer participants with new products to try and then asks them to share the information with their friends, family, coworkers, and others in their social network. What is this type of marketing called? 63) Noxzema, Prudential, and Minute Maid would be examples of which kind of brand name? 64) What type of brands are Sears Craftsman tools and Kenmore appliances examples of? 65) Some products can be sold abroad with virtually no changes. Which of the following is an example of such a product? 66) Little Earth Productions is a company that makes fashion accessories such as handbags. After examining shopping habits, what should they focus on for better visibility of the product for customers? 67) Leif designs and sells surfboards. Although his sales are declining, he decides to keep his prices constant. The marketing professionals with whom Leif consults all support his decision. Which of the following statements is LEAST likely to be true? 68) Which of the following occurs between similar products and is based on buyers' perceptions of the benefits of products offered by particular companies? 69) Garrett is in the business of selling baseball bats. He decides to employ focus groups to determine which bats will likely be bestsellers. Which of the following groups will he be LEAST likely to invite as participants? 70) Tamika starts a business making teddy bears and is excited to deliver the first batch to young patients. When Tamika arrives at the hospital, she learns that she has more bears than she needs. Which of the following would likely explain this? 71) Tamika starts a business making teddy bears and elects to use focus groups to determine whether customized bears would be well received in a hospital setting. The focus groups prove to be unhelpful in ing this question. Which of the following could NOT be a valid explanation? 72) Quinn Clothes is a successful business selling fashionable and athletic swimwear. The marketing staff has said that the company's plan to develop and market waterproof perfumes might be hindered by a lack of experience in the perfume field. Which of the following is the BEST response to that weakness? 73) What does the process of "positioning" involve? 74) What would be the best target market for waterproof fragrances? 75) Which of the following is the best example of an emotional motive in consumer purchasing? 76) Accessing a Web site in search of magazine articles about a product before its purchase is an example of what part of the consumer buying process? 77) Which of the following is the best example of a B2B market transaction? 78) Which defining word or phrase below best captures the meaning of capital items? Chapter 12 30) Which of the following terms refers to the monetary amount added to a product's cost to the seller in order to sell it at a target profit? 31) Which of the following costs refers specifically to those that change with the quantity of a product sold or produced? 32) Which of the following costs refers specifically to those that are unaffected by the quantity of a product sold or produced? 33) Odd-even pricing falls under the category of which of the following? 34) Which of the following pricing strategies has stimulation of sales as a higher priority than maximization of profits? 35) Which of the following refers to the combination of channels that a firm selects to get a product to end users? 36) Rachel has set up a firm that buys circuit boards from overseas producers and sells them to a local computer manufacturing company. Which title best describes her role in the computer manufacturing distribution mix? 37) An online comic book store is an example of which type of intermediary? 38) A farmers' market is an example of which type of distribution channel? 39) Phillip is an independent intermediary who deals in the local produce market of northeast Ohio. Over the years, he has formed long-term relationships and come to represent several farmers in the area in the sale of their produce to local grocery stores. Which of the following titles best describes Phillip's role in the distribution mix of northeast Ohio produce? 40) Which of the following intermediaries matches numerous sellers and buyers as needed, often without knowing in advance who they will be? 41) Which of the following denotes small retail stores carrying only one product line or category of related products? 42) In which of the following bargain retailers do the customers view display samples, place orders, and wait briefly while clerks retrieve orders from attached warehouses? 43) Which of the following best describes department stores? 44) Which of the following terms refers specifically to the activities needed to move products efficiently from manufacturer to consumer? 45) Within which of the following storage facilities would one expect to see the widest variety of products stored? 46) Which of the following concerns finding the most effective techniques for communicating information about and selling a product? 47) Which of the following describes two of the primary objectives of promotion? 48) Which of the following best characterizes the difference between the roles of advertising and personal selling in the promotional mix of a firm? 49) A firm that wanted to conduct a short-term activity in order to boost consumer buying would use which of the following strategies? 50) Which of the following is NOT a type of sales promotion? 51) Companies that price their product low enough to attract a large number of buyers are most likely pursuing which of the following goals? 52) The sales price of a product is given as the product's cost to the seller plus which of the following quantities? 53) Which of the following gives the correct formula for calculating markup percentage? 54) From the choices below, pick the best definition of the term fixed costs. 55) Which of the following strategies is involved with price skimming? 56) Which of the following strategies is involved with penetration pricing? 57) Which of the following pricing strategies is used by many e-tailers in order to provide flexibility between buyers and sellers in setting a price? 58) Which of the following pricing strategies best describes price lining? 59) Which distribution channel is used by Valley Farm Dairy to distribute its products to consumers without intermediaries? 60) Which distribution channel is used by companies which distribute their goods through their own system of outlets? 61) Convenience stores utilize which kind of distribution? 62) Which component of the distribution mix do agents and brokers represent in receiving commissions? 63) In which type of store would you most likely find shoes, furniture, a women's section, and a men's section? 64) Which of the following gives examples of bargain retailers? 65) Which of the following bargain retailers generate large sales volume by offering a wide variety of new products at substantial price reductions? 66) In which of the following retail outlets is there a most direct communication line between producer and consumer? 67) What are the three major classifications of retail outlets in the United States? 68) Which of the following describes the function of search engines that act as collections of business Web sites representing diverse products? 69) Home Shopping Club and QVC are examples of which of the following retail sales outlet? 70) J.C. Penney owns and maintains its own warehouses. What is this type of warehouse called? 71) Which of the following will a large firm utilize when it needs temporary storage space for a large amount of products in immediate demand? 72) Which of the following is the fastest and most expensive transportation mode? 73) Which of the following is the slowest and the cheapest mode of transportation? 74) Which of the following is involved in the final stage in the buyer decision process? 75) Which of the following is crucial for high-priced consumer products such as homes and cars? 76) Which of the following are examples of premiums? 77) Which of the following best describes the purpose of point-of-sale displays? 78) Which of the following describes best what distinguishes publicity among all other forms of promotion? 79) A well-established Internet provider is facing stiff competition from several new companies. Which of the following techniques would it use in order to demonstrate to consumers that its product is superior to that of its competitors? 80) A highly successful bakery specializes in making cherry tarts. Which of the following costs at the bakery is NOT variable? 81) Betty's Breads is trying to calculate its breakeven point. Monthly fixed costs are $5,255. The cost of making one loaf of bread, considering labor and materials, is $3.50. Betty's sells the bread at $6 per loaf. How many loaves does Betty's need to sell each month in order to break even? 82) Which of the following assumptions is the strategy of pricing above the market based on? 83) Which of the following scenarios would allow a firm to price below prevailing market price and still succeed? 84) Which of the following options best describes an example of price lining? 85) Which of the following is most directly related to differences in transportation cost from mode to mode? 86) Marshall is a route salesperson for a beverage company. Which of the following would most likely occupy his work time? 87) A new Internet provider has entered a very crowded market. Which of the following methods would it most likely use in order to make consumers aware of its services? [Show More]

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