i have done most of these questions...but i am unsure...if the answers are right.... i was wondering if any body can help me with these, if you are good at Business....!!? ... -------------------------------------------------------------- 9. A command system is characterized by: A) reliance on the forces of supply and demand to determine what is produced. B) reliance on the government to determine what is produced and who gets the output. C) an extremely rapid rate of economic growth. D) freedom of choice and freedom of competition. 10. The total value of final goods and services produced within a nation's borders in a given year is known as that nation's: A) aggregate production quota B) aggregate domestic output C) index of aggregate economic output D) gross domestic product 11. The Federal Reserve System operates: A) as a semi-private organization not under the direct control of the government. B) under the direct control of the executive branch of the government. C) under the direction of the Banking Oversight Committee of Congress. D) as a special agency of the U.S. Treasury. 12. In recent years, the service sector of the U.S. economy has: A) grown much more rapidly than the manufacturing sector. B) become the low-wage sector of the U.S. economy. C) achieved extremely high productivity gains according to government reports. D) focused less on quality and more on reducing costs of production. 13. For services, the facility layout is usually designed to: A) enable the firm to maintain a continuous production run. B) help customers find and buy things. C) allow mass production techniques to be utilized efficiently. D) facilitate a centralized decision-making process. 14. A firm would be most likely to employ statistical process control (SPC) if it wanted to: A) simplify the quality control process by taking samples at the end of the production process rather than examining every unit of output produced. B) eliminate the expenses incurred by the Deming Cycle. C) redefine quality control on the basis of customer needs. D) make sure products meet quality standards all along the production process. 15. __________ is the specialized area of management that converts or transforms resources into goods and services. A) Logistics management B) Resource engineering C) Supply chain management D) Operations management 16. In a just-in-time inventory system, suppliers: A) deliver materials and parts in large quantities only a few times a year. B) enjoy much lower delivery costs. C) have a great deal of flexibility in determining when to make deliveries. D) become more like a department in the producing firm rather than a separate business. 17. The purpose of determining the critical path on a PERT network is to: A) identify the sequence of tasks that takes the longest to complete. B) estimate a payment schedule so that a budget can be established. C) find the sequence of events that is the most expensive to complete. D) establish a delivery schedule for a just-in-time inventory control program. 18. A key characteristic of entrepreneurs is that they: A) are willing to accept the risks involved in starting and managing a business. B) have a high level of scientific and technical expertise. C) possess a great deal of personal wealth. D) have experience in running large, complex organizations. 19. Taxes and government regulations are part of the ________________ environment of business. A) economic and legal B) competitive C) social D) technological 20. Collectively, the customers, employees, stockholders, suppliers, creditors, and the local communities in which a business operates are known as the firm’s: A) market. B) economic environment. C) stakeholders. D) social dependents. 21. More efficient distribution systems around the world have led to: A) increased world trade. B) decreased world trade. C) decreased international competition. D) reduced standards of living around the world. 22. In recent years, almost all new job creation in the United States has occurred in the ________________ sector: A) service B) manufacturing C) agricultural D) telecommunications 23. The Fed requires banks to hold funds against the deposits its customers have in their checking and savings accounts. The amount of funds the bank must hold is specified as a percentage of deposits known as the: A) prime rate. B) working capital requirement. C) discount rate. D) reserve requirement. 24. When the Fed buys U.S. government securities, the: A) size of the federal deficit falls. B) discount rate rises. C) money supply increases. D) banking system loses reserves. 25. The technical name for a checking account is a: A) free deposit. B) variable annuity. C) demand deposit. D) certificate of deposit. 26. When looking at the advantages and disadvantages of starting various types of businesses, it appears that: A) businesses that are easy to start often offer the greatest potential for long term growth and profits. B) the greatest security is available in the manufacturing sector. C) businesses that offer a chance for high profits tend to be difficult to start and hard to keep going. D) the reason the service sector is growing so rapidly is that service firms are easy to start, easy to keep going, and offer both growth opportunities and plenty of security. 27. An examination of statistics about people who start their own businesses reveals that: A) many small business owners got their entrepreneurial idea from a previous job they held. B) it is rare for managers with experience working within big corporations to start their own businesses. C) people who start their own businesses right after graduating from high school or college are generally more successful than those who first work for someone else. D) most small business owners have a great deal of personal wealth. 28. Which of the following suggestions would an experienced entrepreneur most likely give to someone who is thinking about starting their own business? A) Starting a new business is always better than buying an existing firm. B) Even small businesses must keep accurate records. C) In order to keep costs low when the company is just getting started, wait at least a year before hiring an accountant or lawyer. D) Prior business experience is not really important in managing a new firm. 29. When seeking a loan from a bank, an entrepreneur hoping to start a new business should realize that bankers will: A) expect to receive a share of ownership in the business in exchange for their loan. B) expect the entrepreneur to have a well prepared business plan. C) generally make loans only to small businesses in computer related industries. D) offer only very short-term financing. 30. The more risky a corporation's bond is perceived to be, the ________ the interest rate paid to bondholders will be. A) higher B) lower C) more volatile D) less volatile 31. Which of the following is a disadvantage of selling stock as a means of long-term financing? A) Stockholders never have to be repaid. B) Dividends are paid out of after-tax profits. C) Issuing stock generally reduces the market value of the firm on the balance sheet. D) Selling stock can improve the condition of a firm’s balance sheet. 32. Buying stock on margin allows an investor to buy shares of a stock that he or she believes will go up in value with borrowed funds. This _______________ the potential return to the investor and ________________ the risk. A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases 33 The __________ is usually the easiest form of business to start and end. A) sole proprietorship B) limited partnership C) corporation D) cooperative 34. One reason limited liability companies have become so popular is that they: A) can be taxed either as a corporation or as a partnership, so owners can choose the tax treatment that is most advantageous for their situation. B) allow owners to sell their interests in the company without requiring approval from other owners. C) have unlimited life. D) allow owners to avoid paying self-employment taxes on the company's profits. 35. In a leveraged buyout, the managers of a firm, its employees, or other investors attempt to: A) move the company elsewhere and start over. B) obtain the assets of the company through bankruptcy proceedings. C) use borrowed funds to buy out the firm's stockholders. D) negotiate a merger with another firm to create a conglomerate. 36. A ___________ is an organization that is owned and controlled by the people who use it—producers, consumers and workers with similar needs who pool their resources for mutual gain. A) corporation B) limited partnership C) mutual fund D) cooperative 37. Economies of scale: A) are available to small firms but not to large firms due to management inefficiencies. B) are achieved when a firm reduces its average cost of goods as it produces more. C) can be avoided by purchasing supplies and raw materials in large quantities. D) help explain the success of small businesses. 38. Within its production department, Marlin Manufacturing has shift leaders, supervisors, assistant plant managers, plant managers, product group managers, assistant division managers, division managers, an assistant vice president for production, and a vice president in charge of production. Marlin Manufacturing is an example of a(n) ____________ organization. A) tall B) wide C) cross-functional D) decentralized 39. Excite Enterprises has decided to let another company that specializes in accounting services handle all of its financial records and prepare its tax forms. This is an example of: A) outsourcing. B) functional reassignment. C) functional inversion. D) benchmarking. 40. _________ analysis is used to help companies evaluate their economic environments, assess their strengths and weaknesses, and identify competitive threats and market opportunities. A) WISH B) SWAMP C) ASSET D) SWOT 41. Which of the following techniques would a team of workers be most likely to use if they wanted to evaluate several possible solutions to a specific problem their company needs to solve? A) PERT B) regression analysis C) PMI D) SWOT 42. Which of the following statements about effective leadership is the most accurate? A) Most effective leaders share certain specific traits. B) The most effective leadership style depends on who is being led and in what situation. C) The democratic style of leadership will almost always improve the effectiveness of the organization. D) One trait of effective managers is that they consistently maintain the same style of leadership. 43. Which of the following budgets highlights a firm's spending plans for the purchase of major assets? A) capital budget B) operating budget C) cash budget D) surplus budget 44. The reason that money has a time value is: A) inflation reduces the value of money over time. B) that money can earn interest over time. C) monetary systems tend to become more sophisticated over time. D) a dollar received today is worth more than a dollar received yesterday. 45. Michigan Nursery Company offers its customers credit terms of 3/15 net 30. This means that customers can take advantage of a: A) fifteen percent discount if they pay in three days. B) three percent discount if they pay in thirty days. C) three percent discount if they pay in fifteen days. D) fifteen percent discount if they pay in thirty days.