test 1031 business management and administration … · 2018. 10. 11. · test 1031 business...

Test 1031 BUSINESS MANAGEMENT AND ADMINISTRATION CLUSTER EXAM 1

Copyright © 2010 by MBA Research and Curriculum Center®, Columbus, Ohio

1. In order for a contract between two parties to be legally binding, one party must make an offer and the other party must accept the offer. This offer and acceptance meet the __________ provision.

A. consideration C. legality B. competent parties D. agreement

2. When an agent legally acts in the best interests of his/her client, the agent is establishing a(n) _______

relationship. A. authoritative C. principal B. fiduciary D. legislative

3. Which of the following usually is a benefit of listening to others and trying to understand what they are

saying in order to respond appropriately: A. Access to management C. Respect of coworkers B. Guaranteed promotions D. Fewer assignments

4. An effective technique for personalizing a telephone sales presentation is to

A. greet the customer by name. C. use a merchandise approach. B. ask the customer questions. D. call the prospect at home.

5. One of the advantages of rehearsing an oral presentation is that it gives the businessperson the

opportunity to A. organize new information. C. time the presentation. B. prepare attractive visuals. D. anticipate questions.

6. When writing persuasive messages to convince customers to do something, it is often helpful to explain

the A. benefits of taking action. C. technical aspects in detail. B. business's point of view. D. predictions for the future.

7. Supplemental materials that help to explain the information contained in a simple report can be included

in the form of A. resources. C. attachments. B. references. D. bibliographies.

8. When analytical reports contain information that readers might disagree with, writers should back their

conclusions with A. enthusiastic statements. C. personal opinions. B. technical statistics. D. logical arguments.

9. Which of the following statements would be placed in the introductory section of a research report:

A. Based on the previously stated findings, it is recommended that the XYZ Company revise its operating budget.

B. The purpose of this study is to determine why sales have been decreasing for three consecutive quarters.

C. The survey consisted of 250,600 respondents from the northern region of the country. D. The statistics indicate that the business is losing up to 15% of its market share to new

competitors. 10. What channel of staff communication are managers usually unable to control?

A. Grapevine C. Formal B. Downward D. Objective

11. Employees usually are able to provide good customer service by considering the customers'

A. wages. C. needs. B. habits. D. appearance.

Test 1031 BUSINESS MANAGEMENT AND ADMINISTRATION CLUSTER EX AM 2 12. A customer has politely expressed dissatisfaction with the business's policy, but s/he is actually upset

about an employee's attitude. This is an example of a A. difficult customer. C. false accusation. B. customer objection. D. hidden complaint.

13. Offering higher wages, employee-assistance programs, and benefits are responses to limited

A. capital goods. C. human resources. B. natural resources. D. economic resources.

14. What happens when the amount of a good that is supplied is greater than the amount demanded?

A. Prices increase rapidly. C. Prices remain the same. B. Prices increase slowly. D. Prices go down.

15. The amount of satisfaction a product will provide a customer is referred to as the product's

A. price. C. value. B. incentive. D. market.

16. Individuals put limits on their own economic freedom by

A. complying with the law. C. making personal economic choices. B. competing with others. D. deciding to learn new job skills.

17. Risks that may result in a loss, no change, or a gain are

A. insurable. C. avoidable. B. uninsurable. D. unimportant.

18. One of the benefits of economic growth is that government

A. will not need to find trading partners. C. can carry out its activities more easily. B. can ensure workers of finding jobs. D. will have fewer problems to solve.

19. Which of the following is an important language consideration when conducting business with Canadians:

A. Titles are more important to English Canadians than they are to French Canadians. B. Most French Canadians are not familiar with the English language. C. French Canadians should be provided printed materials in both French and English. D. French is the dominant language in most Canadian metropolitan areas.

20. David Lyle, an American businessperson, is in Munich, Germany to negotiate a deal with Braun's

Bratwurst Company. When David opened his presentation with a joke, Braun's executives glared at him, and the room was silent. If David had done some research, he would have learned that

A. social interaction is necessary for successful negotiations. B. Germans tend to have a casual attitude about business situations. C. German businesspeople adapt to change easily. D. it is inappropriate to use humor with Germans in business situations.

21. Katherine is going on a business trip to Argentina. Cecilia, Katherine's coworker, is from Argentina.

Cecilia tells Katherine to make sure that she keeps her hands on the table because it is considered rude to put your hands in your lap while in a restaurant. Cecilia's tip is related to

A. verbal communication. C. spatial differences. B. dress and appearance. D. dining etiquette.

22. When doing business in Taiwan, foreigners should avoid winking because this is considered a(n)

A. sincere greeting. C. verbal insult. B. negotiation tactic. D. inappropriate gesture.

23. Which of the following is an example of a Saudi Arabian custom that relates to gender:

A. Women are not permitted to drive a car. C. The “thumbs up” symbol is offensive. B. Friday is the day of rest. D. It is illegal to eat pork.

Test 1031 BUSINESS MANAGEMENT AND ADMINISTRATION CLUSTER EX AM 3 24. Foreign businesspeople should understand that Saudi Arabians might leave a business meeting for

several minutes to attend daily prayers. This is an example of a custom related to A. punctuality. C. age. B. speech. D. religion.

25. Paige is a Canadian businessperson who is attending a meeting in India. What should Paige wear to the

meeting to make a positive, professional impression? A. Leather belt C. Conservative pantsuit B. Ornate jewelry D. Sleeveless dress

26. Emotional intelligence is especially important today because

A. collaboration is becoming a standard method of achieving business goals. B. our culture is more relaxed and free. C. people need to interact in more secure business environments. D. everyone can be a world traveler and see other cultures.

27. Most people have consistent patterns of behavior that are based on their personal characteristics known

as personal A. affirmations. C. abilities. B. skills. D. traits.

28. In order for responsible employees to meet deadlines or timelines on the job, they must learn to avoid

A. cooperation. C. procrastination. B. initiative. D. dedication.

29. Susan is a purchasing manager for a manufacturer. On Monday, Susan received a call from the plant

manager, who frantically told Susan that the production line ran out of 3/8” washers, which has forced production to stop. Because Jason is the senior buyer in charge of ordering the washers, Susan set up a meeting with Jason to discuss the problem. During the meeting, Susan asked Jason to explain why the washers were out of stock. Jason replied, “Well, I told the office assistant to check the inventory. It's not my fault that we don't have the washers in stock.” What is Jason doing?

A. Blaming another person for his mistake B. Helping Susan to resolve the problem C. Providing Susan with a valid reason for the stock-out D. Denying that a problem exists

30. To manage your work commitments in a timely manner, you should first

A. try to complete the least important tasks first. B. determine the time it takes to complete various tasks. C. allocate a minimal length of time to complete critical tasks. D. complete tasks in the order of their difficulty.

31. A person who has willpower would also be described as having

A. self-respect. C. self-control. B. self-understanding. D. self-affirmation.

32. Employee recognition and approval is a form of __________ feedback.

A. internal C. critical B. positive D. negative

33. Jim likes to tease Susie because she gets upset, but she doesn't say anything to him about it. What kind

of behavior is Susie exhibiting? A. Passive C. Independent B. Aggressive D. Verbal

Test 1031 BUSINESS MANAGEMENT AND ADMINISTRATION CLUSTER EX AM 4 34. Abby feels that the company's vacation policies are fair, while Joe thinks that they are too strict. Abby

and Joe's disagreement is an example of a(n) ___________ conflict. A. functional C. emotional B. essential D. critical

35. Which of the following is a cost of credit:

A. Discounts C. Fidelity bonds B. Finance charges D. Rebates

36. Which of the following is an example of an individual setting a financial goal:

A. Saving enough money to retire in 10 years C. Reviewing various health insurance options B. Making a will to distribute personal assets D. Obtaining a credit card for emergencies

37. Business risks caused by negative personal characteristics are examples of __________ risks.

A. human C. economic B. environmental D. marketing

38. In order for an accounting system to be useful to the business, the accounting information it contains

must be A. approved by the chief executive officer. C. posted by an accountant. B. accurate and up-to-date. D. recorded using the accrual method.

39. Which of the following phrases effectively describes a business's income statement:

A. Financial picture C. Cash-flow report B. Budget estimate D. Income preview

40. The cash conversion cycle should be

A. on an upward trend. C. as long as possible. B. at equilibrium. D. as short as possible.

41. Businesses regularly evaluate and compare the figures in their original budgets to the actual figures in

order to A. establish quotas. C. make adjustments. B. change investments. D. follow procedures.

42. Which of the following business functions is responsible for developing a firm's employee-orientation

program: A. Funding acquisition C. Information management B. Human resources D. Security operations

43. Information consists of facts and data for a specific situation or condition, and knowledge consists of

__________ and ___________ that accumulate over time. A. definitions, competence C. symbolism, transitions B. data, expertise D. fabrications, creativity

44. Pamela has devised a process that helps her complete her work in a more efficient manner. This is an

example of A. statistical information. C. tacit knowledge. B. raw data. D. quantitative fact.

45. To have effective knowledge-management processes, businesses need their employees to have a(n)

__________ attitude. A. argumentative C. transparent B. ethical D. curious

Test 1031 BUSINESS MANAGEMENT AND ADMINISTRATION CLUSTER EX AM 5 46. What do companies often use to assign and track various business tasks?

A. Customer database C. Surveillance system B. Accountability matrix D. Magnetic cards

47. Which of the following is an example of a business taking action to legally protect its intellectual property:

A. An organic farm obtains a patent for a new hybrid tomato plant. B. A small sporting-goods business uses a logo that is very similar to a well-known athletic

sportswear manufacturer. C. A web-based company provides individuals the ability to download music without the consent of

the song writers or owners. D. A snack-food manufacturer hires a graphic artist to develop a trade character.

48. The use of sorting techniques to capture knowledge involves

A. setting long-term objectives. B. obtaining and storing confidential information. C. documenting relevant facts. D. comparing and ordering concepts.

49. What process involves all of the planning, pricing, promoting, and distributing activities that must take

place in order to get goods and services to the consumer? A. Importing C. Exchange B. Cognitive D. Marketing

50. Paulette works for a retail chain. She has been asked to determine if the retail chain should build another

store in a remote but growing area of town. After obtaining the necessary information, what format should Paulette use to present her findings?

A. Business plan C. Instruction manual B. Formal report D. Research diary

51. How does appropriate information management affect a business's relationship with its customers?

A. Businesses serve customers more effectively. B. Businesses earn higher profits. C. Businesses lose focus on customers. D. Businesses make better financial decisions.

52. Which of the following is an example of a business managing its information in an ethical manner:

A. GVZ and Associates deliberately prepares its annual report to confuse readers. B. The TKN Corporation sells its customer mailing list to third parties without consent. C. OWC Manufacturing distributes an employee's performance review to his/her coworkers. D. The XPB Company takes precautions to maintain the privacy of its clients' information.

53. Which component of project-management software helps project managers to determine the length of

time that a series of interdependent tasks will take to complete under various circumstances: A. Procurement C. Presentation B. Critical path D. Channel management

54. Which of the following is a typical reason businesses keep financial records:

A. To support personnel decisions C. To make budget comparisons B. To determine an asset's value D. To time promotions effectively

55. Which of the following is a business trend that might affect a local company:

A. Global competition C. Social behavior B. Domestic transportation D. Physical environment

56. A primary reason for a business to interpret statistical findings is to

A. aid decision making. C. increase production. B. promote creativity. D. influence buyers.

Test 1031 BUSINESS MANAGEMENT AND ADMINISTRATION CLUSTER EX AM 6 57. To maintain a hazard-free work environment, local regulations might require businesses to undergo

A. tax assessments. C. safety inspections. B. accounting audits. D. ethics training.

58. Which of the following is a major effect of employee accidents on a business:

A. Financial loss C. Reduction of benefits B. Loss of career D. Lower insurance rates

59. The purpose of depositing large bills in drop boxes upon receipt is to prevent

A. fraud. C. burglary. B. robbery. D. pilferage.

60. Which of the following activities should be an employee's top priority:

A. Photocopying a three-page document for a meeting with a customer that is scheduled to occur five hours from now

B. Preparing a purchase order that needs to be faxed to the vendor in two days C. Making reservations at a local restaurant for a business luncheon that is going to be held in two

weeks D. Completing a status report that takes 45 minutes to prepare for a meeting that will occur in an

hour 61. Which of the following situations is an example of employees coordinating their work efforts:

A. Bob unpacks a shipment and places the items on shelves in the warehouse. B. Gavin orders inventory based on the forecast that Madelyn has prepared for him. C. Sarah calls a vendor to verify the delivery date of an order, while Shelley sells products. D. Ed reviews his monthly financial report to verify his calculations.

62. When you look at whether or not your project is “do-able,” what should you examine?

A. What the project is exactly B. How much money the stakeholders want to invest C. How long you have to complete the project D. What could happen with a similar project

63. Which of the following is a situation that involves a project manager involved in a control activity:

A. Samantha reviews the qualifications of several employees to determine whom she wants on the project team.

B. Ben meets with the project's stakeholders to determine what they want the project to accomplish. C. Adriana is coordinating and documenting the tasks that need to be completed for a construction

project. D. Tim reviews an inventory-status report to determine if there are enough supplies on hand for the

next project phase. 64. What should project managers do when an unexpected situation occurs during the execution of a

complex project? A. Reassign work C. Be flexible B. Work overtime D. Get support

65. An important step in the process of purchasing equipment and supplies for the business is

A. visiting trade shows. C. monitoring competitors. B. reviewing revenues. D. selecting vendors.

66. When companies work with their vendors to develop mutually beneficial business arrangements, they are

more likely to A. maintain long-term relationships. C. experience vertical conflict. B. double their profit margins. D. experience horizontal conflict.

Test 1031 BUSINESS MANAGEMENT AND ADMINISTRATION CLUSTER EX AM 7 67. Cassandra is a buyer for a department-store chain. On Tuesday, she placed a seasonal order with an

apparel vendor without providing specific models, sizes, colors, or ship dates. What type of order did Cassandra place?

A. Standing C. Blanket B. Special D. Rush

68. A business orders 10% more widgets than it needs because the supply of and the demand for widgets

have been difficult to forecast in recent months. This is an example of a business ordering __________ inventory.

A. buffer C. perpetual B. maintenance D. customary

69. Because the ILM Manufacturing Company orders large amounts of bolts and washers, the company's

buyer asks its parts vendor for an additional five percent off the invoice total. This is an example of a business negotiating

A. delivery terms. C. service terms. B. a quantity discount. D. a cash rebate.

70. Why is production important to businesses?

A. It enables businesses to charge high prices. B. It prevents businesses from wasting resources. C. It creates goods and services businesses can sell. D. It informs businesses about consumers' needs and wants.

71. Why should maintenance schedules for company equipment be established and followed?

A. To control the quality of products C. To minimize equipment failure B. To make maintenance a daily chore D. To increase equipment deterioration

72. When employees review and analyze financial reports and income data from different time frames, they

are A. informing customers. C. submitting evidence. B. comparing data. D. influencing others' opinions.

73. Which of the following is a characteristic of orderly and systematic behavior:

A. Giving very little thought to the things you do B. Having a rigid personality C. Doing things in an organized and methodical manner D. Having an excellent memory

74. Which of the following is not part of a person's weekly master plan in time management:

A. Scheduling when an activity will be completed during the day B. Identifying the importance of each activity C. Determining the time needed to complete each activity D. Determining what activities have to be done

75. Which of the following is a source of career information that is available in most schools:

A. Industry recruiter C. Guidance counselor B. Admissions director D. Curriculum planner

76. How should a job seeker respond to a business's help-wanted advertisement that asks applicants to

send a resume? A. By sending a resume and a cover letter C. By calling on the business in person B. By sending the resume as requested D. By telephoning the business

77. The primary focus of most professional organizations/associations is generally to

A. expand members' professional knowledge. C. promote the field of marketing. B. increase profit for their members. D. recruit new association members.

Test 1031 BUSINESS MANAGEMENT AND ADMINISTRATION CLUSTER EX AM 8 78. Employees who are unsure about workplace protocol and procedures should

A. ask their managers to clarify the policies. C. conduct a formal investigation. B. follow their instincts. D. obtain suggestions from coworkers.

79. Which of the following is the most serious consequence to an employee who fails to follow the business's

rules of conduct: A. Verbal warning C. Suspension B. Dismissal D. Written documentation

80. Which of the following is the proper sequence for the chain of command:

A. Accounting Department Manager, Accounts Payable Specialist, Chief Executive Officer, and Chief Financial Officer

B. Chief Financial Officer, Chief Executive Officer, and Accounting Department Manager, and Accounts Payable Specialist

C. Accounts Payable Specialist, Accounting Department Manager, Chief Executive Officer, and Chief Financial Officer

D. Chief Executive Officer, Chief Financial Officer, Accounting Department Manager, and Accounts Payable Specialist

81. What do organizational goals provide to a business?

A. Profitability needs C. Competent workers B. Performance standards D. Collaborative efforts

82. What is the primary action needed to ensure that employees understand their roles in meeting the

business's overall goals? A. Ongoing communication C. Motivational speeches B. Brainstorming activities D. Peer evaluation

83. In which component of the project's statement of work (SOW) would the following message most likely

appear: “Due to the limited amount of time allocated to complete the study, the survey sample size may need to be reduced.”

A. Benefits C. Constraints B. Purpose D. Deliverables

84. Why do project managers develop a work breakdown structure (WBS) for complex projects?

A. To provide team members with feedback for improvement B. To provide stakeholders with project objectives C. To identify and better manage all project activities D. To communicate costs associated with the project

85. A project manager who wants a central location that contains relevant information about each component

of the work breakdown structure (WBS) should develop a A. pie chart. C. training chart. B. WBS thesaurus. D. WBS dictionary.

86. Corrine is the project manager for a research project. Yesterday, Corrine told Anthony, one of the project

team members, that he is responsible for developing the sample plan for a survey. What was Corrine doing?

A. Monitoring processes C. Providing guidance B. Delegating work D. Evaluating performance

87. Releasing equipment, materials, and team members are tasks that are completed during the

___________ phase of a project. A. closing C. planning B. scheduling D. initiating

Test 1031 BUSINESS MANAGEMENT AND ADMINISTRATION CLUSTER EX AM 9 88. When evaluating the quality of its product, one factor that a business considers is the feedback that it

receives from the product's users, which indicates A. customer-satisfaction levels. C. the efficiency of the production process. B. the product's durability. D. employee-performance ratings.

89. Capability Maturity Model Integration (CMMI) software has the ability to conduct an audit that compares

the business's existing production and acquisition processes with the CMMI model. The audit provides information that will allow the business to

A. incorporate the best overall quality-improvement processes. B. develop long-term financial and operating plans. C. determine the best way to comply with government regulations. D. manage its human and natural resources effectively.

90. A potential benefit to businesses that implement continuous quality improvement processes is

A. increased sales. C. decreased outputs. B. increased costs. D. decreased profits.

91. Michelle has acquired proof that her coworker Ted has been embezzling money from the company. If

Michelle fails to inform her employer about Ted's activities, what will likely occur? A. The company's property insurance premium will increase. B. The company's financial risk will increase. C. The company's property insurance premium will increase. D. Ted will be charged with a felony.

92. To reduce the risk of unauthorized access to confidential data, businesses use security software to

protect their A. corporate policies. C. intercom systems. B. intranet systems. D. spam e-mail.

93. To reduce the risks associated with noncompliance, a business should continuously monitor

A. competitors' activities. C. judicial opinions. B. government regulations. D. social etiquette.

94. Scheduling and assigning work, checking the quality of work, making sure projects meet deadlines, and

handling employees' job problems are primary responsibilities of A. employees. C. consultants. B. mid-level managers. D. supervisory managers.

95. The fundamental activity associated with the planning function of management involves

A. establishing structure. C. motivating employees. B. evaluating progress. D. looking ahead.

96. What is a primary consideration when organizing employees' workloads?

A. Reward system C. Feedback methods B. Disciplinary procedures D. Time management

97. What management function involves identifying qualified candidates to perform the business's work?

A. Controlling C. Persuading B. Leading D. Staffing

98. What is an important question that a manager must consider when hiring a new employee?

A. How will the company compensate this worker? B. What is the company's vision? C. How should the workload be distributed? D. What are the company's product quality standards?

Test 1031 BUSINESS MANAGEMENT AND ADMINISTRATION CLUSTER EX AM 10 99. One activity associated with the directing function of management is

A. interviewing applicants. C. determining tasks. B. establishing goals. D. instructing employees.

100. As a manager, Pablo is taking steps to correct a problem that is affecting the business's productivity.

Which of the following types of control is Pablo using: A. Contingency C. Rework B. Preliminary D. Functional

Test 1031 BUSINESS MANAGEMENT AND ADMINISTRATION CLUSTER EXAM—KEY 11 1. D

Agreement. In order for a contract to be legally binding, an offer must be made by one party and accepted by the other party. In effect, the two parties are agreeing. The competent parties provision requires those entering a contract to be of legal age and meet other criteria. Legality refers to the terms of the offer being within the law, and consideration requires something of value be exchanged. SOURCE: BL:002 SOURCE: Beatty, J. F., & Samuelson, S. S. (2008). Essentials of business law (3rd ed.) [pp. 217, 219].

Mason, OH: Thomson/South-Western. 2. B

Fiduciary. An agent is someone who acts on the behalf of another party. The agent often negotiates contracts and handles legal issues for another person with that person's consent. The agent who shows that s/he is loyal, trustworthy, and acting in the best interest of his/her client (principal) is fostering a fiduciary relationship. Authoritative relationships are based on a particular level of control. Principal is a legal term that describes the client. Legislative processes involve the procedures in which people or governments establish laws. SOURCE: BL:072 SOURCE: Beatty, J. F., & Samuelson, S. S. (2008). Essentials of business law (3rd ed.) [p. 625]. Mason,

OH: Thomson/South-Western. 3. C

Respect of coworkers. Being able to listen effectively is an important skill in the world of work. Employees who listen to others and try to understand what they are saying usually are able to respond appropriately. The benefit is that they earn the respect of coworkers because they take the time to try to truly understand what others are saying. As a result, they are able to answer questions, complete job assignments correctly, and assist coworkers when necessary. Being able to listen effectively might lead to a promotion but does not guarantee it. Being able to listen effectively does not necessarily mean that employees will have access to management. Employees who listen effectively often have more responsibility rather than fewer assignments. SOURCE: CO:017 SOURCE: Lehman, C. & DuFrene, D. (2005). Business communication (14th ed.) [pp. 55, 57]. Mason,

OH: South-Western. 4. A

Greet the customer by name. If a salesperson is making calls from a prospect list, use of the customer's name will be easy and adds a personal touch to the telephone call. It may not be appropriate to call a potential client at home. Asking questions will reveal information about the client's needs and wants but does nothing to personalize the conversation. The use of a merchandise approach means to make reference to a particular good/service in initiating a conversation with the customer. SOURCE: CO:114 SOURCE: Miculka, J.H. (2007). Speaking for success: Annotated instructor's edition (2nd ed.)

[pp. 88-89]. Cincinnati: South-Western Educational. 5. C

Time the presentation. Rehearsing the presentation provides the businessperson with an opportunity to time the presentation and decide what revisions are needed before the actual presentation. In many situations, businesspeople are allowed only a certain amount of time to make presentations. Therefore, it is necessary to include all the important information within that time frame. Timing the presentation in advance will allow the businessperson to be sure that the complete message is being presented. Visuals should be prepared in advance in order to use them during the rehearsal. All information should be included in the presentation before it is rehearsed. Businesspeople do not rehearse presentations to anticipate questions. SOURCE: CO:025 SOURCE: Hyden, J.S., Jordan, A.K., & Steinauer, M.H. (2006). Communicating for success (3rd ed.)

[p. 94]. Cincinnati: South-Western Educational.

Test 1031 BUSINESS MANAGEMENT AND ADMINISTRATION CLUSTER EXAM—KEY 12 6. A

Benefits of taking action. The purpose of writing persuasive messages is to convince customers to do something such as buy a product or pay an overdue bill. To encourage them to take the correct action, it is important to appeal to their needs and show them why it is a benefit to do what you want them to do. For example, if you want customers to buy a new product, explain how that product will benefit them, such as by saving money or speeding up production. Customers are more likely to respond favorably when they understand how their needs will be satisfied, and they will benefit from taking action. Customers usually are not interested in the business's point of view or predictions for the future unless those predictions will benefit them. Persuasive messages are more effective if they explain how customers will benefit rather than explaining the technical aspects in detail. SOURCE: CO:031 SOURCE: Hyden, J.S., Jordan, A.K., & Steinauer, M.H. (2006). Communicating for success (3rd ed.)

[pp. 334-335]. Cincinnati: South-Western Educational. 7. C

Attachments. Writers of simple reports may want to include additional information that further explains the report but is not necessary for its understanding. This type of information, such as graphs, charts, and statistics, may be included as attachments. Receivers of the report can decide whether or not they want to take the time to read the attachments. References, bibliographies, and resources are types of attachments that refer readers to other sources of information. They are most often associated with long, complex reports. SOURCE: CO:094 SOURCE: Lehman, C.M., & DuFrene, D.D. (2005). Business communication (14th ed.) [pp. 381-385].

Cincinnati: South-Western College. 8. D

Logical arguments. An analytical report is a document that explains and evaluates an issue, opportunity, or problem. When developing an analytical report that addresses a controversial issue or contains information that readers might disagree with, the writer should provide logical arguments that explain and support their conclusions. By providing logical arguments, the writer is more likely to persuade readers to accept the conclusions. Technical statistics may distract the reader. Personal opinions should not be expressed during an analytical report. Enthusiastic statements that do not provide logical arguments or supporting evidence are less likely to convince readers that the conclusions are reasonable. SOURCE: CO:185 SOURCE: Bovée, C. L., & Thill, J. V. (2008). Business communication today (9th ed.) [pp. 411-412].

Upper Saddle River, NJ: Pearson Prentice Hall. 9. B

The purpose of this study is to determine why sales have been decreasing for three consecutive quarters. A research report is a written document that summarizes an investigation related to a particular issue or problem. A comprehensive research report contains several sections. In the introductory section of the research report, the writer identifies the problem and the purpose of the report, such as declining sales. Recommendations are detailed at the end of the report. Details about the research process, such as survey data, are addressed in the methodology section of the research report. Statistics are included in the results section of the research report. SOURCE: CO:186 SOURCE: Walonick, D. (2005). Elements of a research proposal and report . Retrieved October 12,

2009, from http://www.statpac.com/research-papers/research-proposal.htm


Grapevine. The grapevine is an oral communication method in which information is passed around the company, but it is not formally announced or verified. Managers usually are unable to control the grapevine because employees tend to talk to each other and share whatever information they have—even if it is not accurate. Managers can sometimes use the grapevine by providing correct information to employees they know are involved in the grapevine. Downward communication moves from management to the lower-level employees. Formal communication is the official information provided by the business. An objective is a desired outcome rather than a channel of staff communication. SOURCE: CO:014 SOURCE: Lehman, C.M., & DuFrene, D.D. (2005). Business communication (14th ed.) [pp. 11-13].

Cincinnati: South-Western College. 11. C

Needs. Needs are requirements of some sort —the things that people must have in order to lead full and happy lives. Employees should provide service based on the customers' needs, not on what they think the customers need. Considering what customers need will help employees to provide good service and satisfy those needs. Good service should be provided regardless of customers' wages, habits, or appearance. SOURCE: CR:004 SOURCE: Odgers, P. (2004). The world of customer service (p. 6). Mason, OH: South-Western.

12. D

Hidden complaint. The customer has concealed the true complaint with a believable but secondary reason for the dissatisfaction. Objections are customers' reasons for not buying. A false accusation is an allegation against someone that has no basis in fact. Difficult customers are customers with problems that interfere with their ability to communicate satisfactorily or to function in a normal or pleasant manner. SOURCE: CR:010 SOURCE: Odgers, P. (2004). The world of customer service (p. 50). Mason, OH: South-Western.

13. C

Human resources. Offering higher wages, employee-assistance programs, and benefits are ways businesses can attract more employees. These methods would not be appropriate responses to limited natural resources, economic resources, or capital goods. SOURCE: EC:003 SOURCE: EC LAP 14—Economic Resources

14. D

Prices go down. The law of supply and demand states that the supply of a good or service will increase when the demand is great (prices increase) and will fall when demand is low (prices decrease). By decreasing prices, producers hope to appeal to more consumers. SOURCE: EC:005 SOURCE: EC LAP 11—It's the Law (Supply and Demand)

15. C

Value. Value is the amount of satisfaction a good or service will provide a customer. Price often indicates value because customers usually are willing to pay more for items they value highly. Price is the amount of money paid for a good, service, or resource. Incentive is the motivator for change or action. Any circumstances under which buyers and sellers exchange products for a price is considered a market. SOURCE: EC:006 SOURCE: Clark, B., Sobel, J., & Basteri, C.G. (2006). Marketing dynamics (p. 34). Tinley Park, IL:

Goodheart-Willcox.

Test 1031 BUSINESS MANAGEMENT AND ADMINISTRATION CLUSTER EXAM—KEY 14 16. C

Making personal economic choices. We are limited by our own choices. If we choose to buy one thing, we may not have enough money to buy another. If we sell our private property to one person, we cannot sell the same property to anyone else. Being able to compete with others is an economic freedom. Complying with the law is a limit on economic freedom imposed by government. Deciding to learn new job skills does not limit economic freedom and may increase income. SOURCE: EC:009 SOURCE: EC LAP 15—People Power (The Private Enterprise System)

17. B

Uninsurable. These risks are speculative risks that may be the result of such unavoidable factors as changes in customer buying habits, weather conditions, or business conditions. All risks are important to businesses, and most businesses try to protect themselves from pure risks by purchasing insurance. SOURCE: EC:011 SOURCE: EC LAP 3—Lose, Win, or Draw (Business Risk)

18. C

Can carry out its activities more easily. Government activities can be carried out more easily when the economy is strong because more tax dollars are available to fund various government programs. This may make it easier to solve problems, but it does not necessarily reduce the number of problems. Government cannot assure workers that they will find jobs, even in a strong economy. Nations need trading partners under all economic circumstances. SOURCE: EC:017 SOURCE: Sexton, R.L. (2002). Exploring economics (2nd ed.) [pp. 170-171]. Mason, OH: South-

Western. 19. C

French Canadians should be provided printed materials in both French and English. Although most Canadians speak English, there are areas of the country that speak primarily French, such as Quebec and parts of Nova Scotia and New Brunswick. Therefore, when doing business with Canadians, it is courteous to provide printed materials in both the French and English languages. Many French Canadians speak English. Titles are not more important to English Canadians then they are to French Canadians. SOURCE: EC:130 SOURCE: Cyborlink.com. (n.d.). Canada: Communication. Retrieved October 12, 2009, from

http://www.cyborlink.com/besite/canada.htm 20. D

It is inappropriate to use humor with Germans in business situations. Germans tend to be very formal and serious about their business, and they do not find it appropriate to use humor during business situations. Social interaction and getting to know a business associate on a personal level is not a priority because Germans tend to be private about their personal lives. German businesspeople generally prefer structure and do not like surprises, so they don't always adapt to change easily. SOURCE: EC:131 SOURCE: Cyborlink.com. (n.d.). Germany: Behavior. Retrieved October 12, 2009, from

http://www.cyborlink.com/besite/germany.htm 21. D

Dining etiquette. In Argentina, business is often discussed over meals. Because dining customs and traditions vary by country, foreign businesspeople should learn about the proper dining etiquette before going to another country to reduce the risk of embarrassment. Putting your hands in your lap is considered poor table manners in Argentina. The tip that Cecilia provided Katherine does not relate to dress and appearance, spatial differences, or verbal communication. SOURCE: EC:132 SOURCE: Cyborlink.com. (n.d.). Argentina: Behavior. Retrieved October 12, 2009, from

http://www.cyborlink.com/besite/argentina.htm


Inappropriate gesture. Because customs and gestures differ by country, foreigners must understand and monitor their body language, when conducting business in other countries. Certain gestures (e.g., winking) may be friendly in some cultures and offensive or disrespectful in other cultures. Winking is not used as a negotiation tactic in Taiwan. Winking is a gesture rather than a verbal insult or greeting. SOURCE: EC:133 SOURCE: Cyberlink. (n.d.). Taiwan: Appearance. Retrieved October 12, 2009, from

http://www.cyborlink.com/besite/taiwan.htm 23. A

Women are not permitted to drive a car. Different cultures have different expectations and rules in relation to gender. In Saudi Arabia, women are not permitted to drive a car. The day of rest is often associated with religious traditions. Laws regarding the consumption of pork are related to religious practices. The “thumbs up” symbol is a form of nonverbal communication. SOURCE: EC:134 SOURCE: Cyborlink.com. (n.d.). Saudi Arabia: Behavior. Retrieved October 12, 2009, from

http://www.cyborlink.com/besite/saudi-arabia.htm 24. D

Religion. Religious practices and traditions are an important aspect of everyday life in Saudi Arabia. Muslims pray five times a day, so it is customary for Saudi Arabian businesspeople to leave a meeting for a few minutes during the day. Prayer is not a custom associated with speech, age, or punctuality. SOURCE: EC:134 SOURCE: Cyborlink.com. (n.d.). Saudi Arabia: Communications. Retrieved October 12, 2009, from

http://www.cyborlink.com/besite/saudi-arabia.htm 25. C

Conservative pantsuit. Appropriate attire is an important consideration when doing business in another country. The Indian culture dresses modestly, so a conservative pantsuit is appropriate attire. In India, it is inappropriate for a person to show bare shoulders or legs, so a sleeveless dress is inappropriate clothing. Ornate jewelry does not project a conservative appearance. Cows are sacred to the Indian Hindus, so it would be offensive to wear a leather belt. SOURCE: EC:135 SOURCE: Cyborlink.com. (n.d.). India: Appearance. Retrieved October 12, 2009, from

http://www.cyborlink.com/besite/india.htm 26. A

Collaboration is becoming a standard method of achieving business goals. Collaboration is used more and more to achieve business goals. You can see this in the frequent use of teams, group projects, and joint ventures. Our culture is not more relaxed and free; it is busier than ever. Emotional intelligence does not ensure a more secure business environment. And, even though more people can be world travelers and see other cultures, emotional intelligence is also important for people who do not travel. SOURCE: EI:001 SOURCE: EI LAP 6—EQ and You (Emotional Intelligence)

27. D

Traits. Personal traits can be divided into three basic categories: emotional, physical, and mental. An individual's personality is a combination of traits in these categories. Abilities are skills which enable people to perform certain tasks or functions. Affirmations are statements about a present or desired strength that you want to accept, develop, and incorporate into your life. SOURCE: EI:018 SOURCE: EI LAP 9—You've Got Personality (Personal Traits)


Procrastination. Procrastination is putting off until tomorrow what could have been done today. It is a bad habit, particularly at work, because it prevents workers from meeting deadlines or timelines. Exhibiting dedication to the job and the company, being cooperative with coworkers, and taking the initiative to get work done are all positive approaches. SOURCE: EI:021 SOURCE: PD LAP 7—Make the Honor Role (Acting Responsibly)

29. A

Blaming another person for his mistake. Taking responsibility for your actions involves accepting the consequences (good or bad) of your behavior, admitting and learning from your mistakes, and trying to do better in the future. In the example, Jason blamed the office assistant for the mistake, but he is the employee who is responsible for ordering the washers. By blaming another employee, Jason is failing to accept responsibility for his actions. Jason was not helping Susan to resolve the problem, providing a valid reason for the stock-out, or denying that a problem exists. SOURCE: EI:075 SOURCE: Payne, S. (n.d.). Accepting responsibility for your own work. Retrieved October 9, 2009, from

http://www.helium.com/items/1587239-accepting-responsibility-for-your-own-work 30. B

Determine the time it takes to complete various tasks. Before tackling your work, you need to determine all the tasks that you need to do in relation to the time it takes to complete each task. You must also consider the importance of each task, which may be determined by their due dates. By analyzing the time it takes to complete your tasks in relation to their importance, you can schedule your workload and allow enough time to complete them, which is an important consideration, if unexpected situations occur that require immediate attention. Tasks should not always be completed in the order of their difficulty. Least important tasks should be completed after the most important tasks. SOURCE: EI:077 SOURCE: Time Management. (n.d.). Manage your scheduling commitments—six effective guidelines to

get things done (part 1). Retrieved October 14, 2009 http://www.timemanagment.info/111/manage-your-time-scheduling-commitments-six-effective-guidelines-to-get-things-done/

31. C

Self-control. Self-control is the ability to direct the course of your own behavior. Self-respect is a high regard of oneself as an individual. Self-understanding is comprehending one's personal needs, interests, values, and motives and recognizing their effects on one's behavior. Self-affirmation is a statement about a personal present or desired strength. SOURCE: EI:025 SOURCE: EI LAP 14—Control Yourself! (Self-Control)

32. B

Positive. Feedback is evaluative information about you, your behavior, or the results of your behavior. It can be positive or negative in nature. Positive feedback involves praise (compliments, commendations, etc.) and tends to reinforce the behavior that it recognizes. Internal feedback comes from within yourself. Critical or negative feedback tends to make people want to change their behavior. SOURCE: EI:003 SOURCE: EI LAP 15—Grin and Bear It (Using Feedback for Personal Growth)

33. A

Passive. Passive behavior is conduct in which people fail to exercise their own rights and to respect their own needs. It is also called avoidance behavior because the goal is to avoid conflict of any kind. Susie hopes that if she doesn't confront Jim, there won't be any conflict. This is nonverbal behavior on her part, and she is not behaving in an independent manner. Jim's conduct is an example of aggressive behavior which is based on a willingness to ignore the rights of others and to take advantage of them in order to achieve personal goals. SOURCE: EI:008 SOURCE: EI LAP 18—Assert Yourself (Assertiveness)


Emotional. Emotional conflict is a disagreement that is based on personal beliefs, values, or experiences. Because the two people view the same rules in different ways, the conflict is emotional in nature. A functional conflict is a disagreement that is tangible or concrete, and it often occurs when two parties share common goals but approach the process in a different manner. Essential is defined as necessary, or needed. Critical is a term that means serious or important. Essential and critical are not terms commonly used to describe types of conflict. SOURCE: EI:015 SOURCE: EI LAP 7—Stop the Madness (Conflict Resolution in Business)

35. B

Finance charges. Finance charges are the interest charged on credit accounts which are not paid in full at the end of each month. Discounts are cash deductions which are often provided as an incentive for early payment of an account. Fidelity bonds are a type of insurance that protects businesses from losses due to employee theft. A rebate is a return of part of the price a customer pays for a good or service, usually offered by the manufacturer of the good. SOURCE: FI:002 SOURCE: Farese, L. S., Kimbrell, G., & Woloszyk, C. A. (2009). Marketing essentials (pp. 685-686).

Woodland Hills, CA: Glencoe/McGraw-Hill. 36. A

Saving enough money to retire in 10 years. Financial goals are objectives that individuals want to achieve. Individuals often set financial goals based on a time factor because they have a need that they want to satisfy. In this situation, retiring in 10 years is the need that can be satisfied by saving money every month. Making a will to distribute personal assets, reviewing various health insurance options, and obtaining a credit card for emergencies are not examples of financial goals. SOURCE: FI:065 SOURCE: Kapoor, J.R., Dlabay, L.R., Hughes, R.J., & Hoyt, W.B. (2005). Business and personal

finance (pp. 11-15). New York: Glencoe/McGraw-Hill. 37. A

Human. These are risks caused by character traits such as dishonesty, carelessness, or incompetence. Economic risk relates to the production, distribution, and consumption of goods and services. Environmental risks are caused by factors outside the business that are beyond the business's control. Marketing risk is a term that can be used to describe all risks encountered in marketing. SOURCE: FI:084 SOURCE: BA LAP 2—Risk Management

38. B

Accurate and up-to-date. Accounting records show the financial health of a business. If its accounting records are inaccurate or out of date, a business cannot be sure what its financial situation is. Posting is transferring accounting information from a daily journal to the appropriate ledger, and it can be done by bookkeepers or clerical staff. The chief executive officer of a business would not have time to approve all the accounting information the system contains. A business may use either the cash accounting method or the accrual method. In the cash accounting method, income and expenditures are recorded at the time the money changes hands. In the accrual method, transactions are recorded at the time they occur even if no money changes hands. SOURCE: FI:085 SOURCE: FI LAP 5—Show Me the Money (Nature of Accounting)

39. A

Financial picture. A business's income statement summarizes where the business's money came from and where it went. It is an entire financial picture that lists all revenues and expenses for a certain time period, usually one year. An income statement includes information used in budgets and cash-flow reports. It is a picture of a business's financial status, rather than a prediction of the financial future. SOURCE: FI:094 SOURCE: FI LAP 4—Watch Your Bottom Line (Income Statements)


As short as possible. The cash conversion cycle should be as short as possible so financial managers have more free cash to work with. A downward trend in the cycle is a positive sign, while an upward trend is a negative one. A downward trend is preferred to equilibrium. Many investors pay close attention to a company's cash conversion cycle. SOURCE: FI:354 SOURCE: FI LAP 7—Money Matters (Role of Finance)

41. C

Make adjustments. A budget is only as successful as the business that evaluates it on a regular basis. When business owners want to know if they are accomplishing their goals, budgets show where they are on target and where they are not. By comparing original budget figures to actual figures, managers can find out if they are spending more than allocated on certain activities and then make adjustments. For example, if a business spends most of its advertising budget during the first six months, it knows that it will need to cut back in that area or take money from other activities. Businesses do not evaluate their original budgets in order to change investments, establish quotas, or follow procedures. SOURCE: FI:106 SOURCE: FI LAP 3—Money Tracks (Nature of Budgets)

42. B

Human resources. Human resources management is the process of planning, staffing, leading, and organizing the employees of the business. The human resources function is responsible for developing and implementing employee orientation programs. Orientation involves helping new employees get acquainted with their surroundings, providing them with general company information (e.g., policies), and preparing them to do their jobs (e.g., training). Funding acquisition is a financial function. Information management is the function that maintains and disseminates the business's data for decision-making purposes. The security function protects the business's resources from harm or unauthorized access. SOURCE: HR:410 SOURCE: Gaspar, J., Bierman, L., Kolari, J., Hise, R., Smith, L., & Arreola-Risa, A. (2006). Introduction

to business (p. 201). Boston, Houghton Mifflin. 43. B

Data, expertise. Information contains facts or data that are presented in a meaningful way. Knowledge is the combination of data, expertise, and insight that an individual or business accumulates over time. The data, expertise, and insight come from internal and external sources, which are integrated and processed to create knowledge. Some forms of knowledge might include definitions, symbols, and creativity; however, competence, fabrications (lies), or transitions are not attributes of useful or meaningful knowledge. SOURCE: KM:001 SOURCE: Regional Knowledge Resource Kit. (2008, April 4). Information vs. knowledge. Retrieved

October 14, 2009, from http://www.rkrk.net.au/index.php/Information_Vs_Knowledge 44. C

Tacit knowledge. Tacit knowledge is knowledge consisting of personal opinions, experiences, expertise, or understanding that is not easily articulated, stored, or quantified. Tacit knowledge is an employee's personal "know-how" that affects the ways in which s/he does his/her job. An employee who develops and executes a process that helps her/him work more efficiently has tacit knowledge. Raw data are data that have not been transformed into meaningful information. Statistics are information presented in numerical form. Quantitative facts are true statements that can be measured in a numerical way. SOURCE: KM:001 SOURCE: 12Manage.com. (2009). Tacit knowledge. Retrieved October 14, 2009, from

http://www.12manage.com/description_tacit_knowledge.html#


Transparent. Knowledge management involves leveraging the expertise, insight, and information of internal and external resources to help an organization achieve its goals. Transparency is the quality of being just as one's seems—trustworthy. When employees have expertise or personal insight that can help the business achieve its goals, they should share their knowledge with their employers. Sharing knowledge means that the employees have a transparent attitude; they are willing to share their know-how, and they are not deliberately concealing knowledge that will help the business achieve its goals. Although curiosity and ethical behavior are desirable traits, they are not needed for effective knowledge management processes. Businesses do not, as a general rule, want employees to be argumentative. SOURCE: KM:002 SOURCE: Land, F., Urooj, A., & Nolas, S. (2007). The ethics of knowledge management. Retrieved

October 14, 2009, from http://www.infosci-journals.com/downloadPDF/pdf/ITJ3515_RW8B0dOfQ0.pdf

46. B

Accountability matrix. An accountability matrix is a table that assigns tasks to workers and tracks the workers' progress in relation to various business or project activities. Accountability matrices are components of project-management software. Businesses may design their own accountability matrices through word-processing or spreadsheet applications. A customer database is a central location in which the business records and maintains information about its customers. A surveillance system consists of audio/visual equipment that is used to monitor various activities. Magnetic cards (e.g., debit cards, credit cards) contain data that can be read by electronic devices. Businesses do not use customer databases, surveillance systems, and magnetic cards to assign and track various business tasks. SOURCE: KM:003 SOURCE: BusinessDictionary.com. (2009). Accountability matrix. Retrieved October 13, 2009, from

http://www.businessdictionary.com/definition/accountability-matrix.html 47. A

An organic farm obtains a patent for a new hybrid tomato plant. Intellectual property is intangible business assets resulting from thinking processes. Businesses can obtain legal protection of their intellectual property from the government. When a business invents a new product (e.g., tomato plant), the business would apply for a patent. The patent is granted to the inventor or owner for a specific number of years. The patent is a legal means of preventing the product from being recreated and distributed by unauthorized entities. Copyrights legally protect musical compositions. Trademarks can be obtained to protect trade characters. Copyrights or trademarks can legally protect logos. A business that uses a similar logo as another company, and an online business that illegally distributes music are examples of ways that intellectual property is not being protected. A manufacturer that hires a graphic artist to design a trade character will need to legally protect the trade character after it is developed. SOURCE: KM:004 SOURCE: Miller, R.L., & Jentz, G.A. (2002). Management and e-commerce: The online legal

environment (pp. 108-109). Cincinnati: West Legal Studies in Business, South-Western College Publishing.

48. D

Comparing and ordering concepts. Knowledge management involves leveraging the expertise, insight, and information of internal and external resources to help an organization achieve its goals. An important aspect of knowledge management involves capturing the expertise, insight and information, so the business can use it in meaningful ways. A business can use many different tools to capture knowledge in an organization. Sorting techniques allow the business to compare all of the data and information that it has collected, categorize it, and place it in a meaningful order or sequence. This process allows the business to look at all of the knowledge that it has gathered in different ways. This often helps the business determine efficiencies and inefficiencies within the business. Sorting techniques often help a business determine if any of the information that it has collected is confidential or relevant. After sorting and analyzing the information, the business may decide to take corrective action by changing some of its objectives. SOURCE: KM:005 SOURCE: Milton, N. (2003, November 20). Knowledge acquisition. Retrieved October 14, 2009, from

http://www.epistemics.co.uk/Notes/63-0-0.htm


Marketing. Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives. Cognitive activities are mental processes, such as perceiving, remembering, thinking, and judging. Exchange activities include all forms of trading. Importing involves the buying of products from other countries for resale. SOURCE: MK:001 SOURCE: BA LAP 11—Have It Your Way! (Marketing)

50. B

Formal report. Paulette has been asked to conduct a trade-area analysis and provide recommendations. She should present the information in a formal report, which is a complex report that consists of several components, which may include an executive summary, introduction, background information, research methodology, recommendations, and appendices. The retailer is using the information to make a business decision, so the information should be presented in a formal, professional manner. A business plan is the company's written business model. Instructional manuals provide directions to assemble an item or perform an activity. Businesses might provide research diaries to research-study participants to record information about their buying habits or reactions to certain stimuli. SOURCE: NF:080 SOURCE: Bovée, C. L., & Thill, J. V. (2008). Business communication today (9th ed.) [pp. 454-457].

Upper Saddle River, NJ: Pearson Prentice Hall. 51. A

Businesses serve customers more effectively. Managing information appropriately helps businesses focus on the important task of serving customers more effectively which, in turn, may help lead to higher profits, although it is not a guarantee. A business's financial decisions may or may not have to do with serving customers. SOURCE: NF:110 SOURCE: NF LAP 3—In the Know (Nature of Information Management)

52. D

The XPB Company takes precautions to maintain the privacy of its clients' information. Businesses collect and maintain information about their employees, clients, products, and activities, and some of the information may be private or confidential. Businesses have an ethical obligation to protect certain information so it does not become public and cause harm or embarrassment to clients or employees. Internet firewalls and computer passwords are ways in which businesses protect electronic information. Selling a customer mailing list without the customers' consent, distributing an employee's performance review to coworkers, and deliberately preparing an annual report in a confusing manner are unethical actions. SOURCE: NF:111 SOURCE: Bovée, C. L., Thill, J. V., & Mescon, M. H. (2007). Excellence in business (3rd ed.)

[pp. 152, 375, 403]. Upper Saddle River, NJ: Pearson Prentice Hall. 53. B

Critical path. Many project-management software packages incorporate the critical path methodology into their programs. The critical path methodology uses algorithms to determine timelines, develops schedules for complex project activities, and proposes scheduling contingency plans, which reduce project delays. Procurement is the process of acquiring goods and services. Presentation software creates computer-generated visual aids that support oral presentations. Channel management is the processes by which marketers ensure that products are distributed to customers efficiently and effectively. SOURCE: NF:130 SOURCE: Campbell, G.M., & Baker, S. (2007). The complete idiot's guide to project management

(4th ed.) [pp. 138-139, 366-368]. New York: Penguin Group.


To make budget comparisons. A typical reason businesses keep financial records is to make budget comparisons—to see if the business is on target. Financial records may be involved in determining an asset's value, supporting personnel decisions, and even timing promotions effectively, but they are not typical reasons to keep financial records. SOURCE: NF:001 SOURCE: NF LAP 1—Record It (Business Records)

55. A

Global competition. Businesses throughout the world are competing for the same customers as a result of technological advances. Improved communication and transportation methods have made goods and services available to previously untapped markets. Consequently, foreign businesses are selling to customers who formerly bought goods only from local companies. The foreign competitor has an impact on a local business and may force it to lower prices or offer additional services in order to survive. Physical environment, domestic transportation, and social behavior are not business trends. SOURCE: NF:013 SOURCE: Sexton, R.L. (2002). Exploring economics (2nd ed.) [pp. 632-634]. Mason, OH: South-

Western. 56. A

Aid decision making. Statistics are information presented in numerical form. For the statistics to be useful, businesses must analyze and interpret them. Businesses often base business decisions on statistical information. For example, a business may obtain statistical information that indicates a product is not selling well. Based on the statistical information, the business may decide to phase out or stop making the product. Or, if statistical information indicates that the demand for the product exceeds the available supply of the product, the business may decide to increase production. Businesses use promotional activities to influence people to buy their products. Although analyzing statistical information might spark an employee's creativity (e.g., for problem-solving purposes), it is not a primary reason for interpreting it. SOURCE: NF:093 SOURCE: Winthorp, A. (2007, September 21). Using statistics to measure business performance.

Retrieved October 14, 2009, from http://ezinearticles.com/?Using-Statistics-To-Improve-And-Measure-Business-Performance&id=744164

57. C

Safety inspections. Governments develop regulations to ensure the safety of workers. Some government regulations require that businesses have their machinery inspected on a regular basis by a government agent or independent entity to ensure that the business is complying with safety regulations. During the inspection, the inspector might identify problems or hazards that compromise worker safety. By identifying the problems, the business can take corrective action to ensure worker safety and to be in compliance. Undergoing accounting audits, tax assessments, and ethics training programs are not actions that will identify workplace hazards. SOURCE: OP:339 SOURCE: Clark, B., Sobel, J., & Basteri, C.G. (2006). Marketing dynamics (pp. 406-409). Tinley Park,

IL: Goodheart-Willcox. 58. A

Financial loss. It is estimated that the total financial loss, or cost, of accidents to businesses exceeds $92.7 billion a year. Part of these costs come from having to pay higher insurance rates. Loss of career and reduction of benefits would be effects on employees rather than on the business. SOURCE: OP:007 SOURCE: SCORE. (n.d.). Risk management. Retrieved October 19, 2009, from http://www.ct-

clic.com/Newsletters/customer-files/riskmanagement.pdf

Test 1031 BUSINESS MANAGEMENT AND ADMINISTRATION CLUSTER EXAM—KEY 22 59. B

Robbery. Cash drop boxes are built into the floor of the business and cannot be removed or opened by employees. Businesses using drop boxes often attempt to prevent robberies by posting a sign indicating that they use a drop box. Fraud, deceiving or cheating an individual or a business out of money; burglary, any illegal entry into a building to commit a theft; and pilferage, theft of small sums of money or inexpensive items, are all types of losses that businesses try to prevent. SOURCE: OP:013 SOURCE: Rediff.com. (2003, November 15). Are drop-boxes safe? Retrieved October 19, 2009, from

http://www.rediff.com/money/2003/nov/15perfin1.htm 60. D

Completing a status report that takes 45 minutes to prepare for a meeting that will occur in an hour. An important aspect of prioritizing work is determining how long a task will take to complete in relation to the due date or timeline. Completing a report that takes 45 minutes to prepare for a meeting that is occurring in an hour should be the employee's top priority because the meeting is scheduled to occur before any of the other tasks listed need to be completed. The employee can photocopy the document, prepare the purchase order, and make restaurant reservations after completing the report and presenting it during the meeting. SOURCE: OP:228 SOURCE: eHow.com. (n.d.). How to prioritize at work. Retrieved October 13, 2009, from

http://www.ehow.com/how_2293060_prioritize-work.html 61. B

Gavin orders inventory based on the forecast that Madelyn has prepared for him. Gavin does not know the type and amount of inventory to order until Madelyn provides him with the forecast that she has prepared. Therefore, Gavin and Madelyn's work activities are interdependent—they must work together and coordinate their work efforts to achieve the business's goals. Unpacking a shipment and placing the items on shelves and reviewing a monthly financial report are not situations that indicate employees are coordinating their work efforts. Sarah and Shelley are working independently rather than coordinating their efforts. SOURCE: OP:230 SOURCE: Campbell, G.M., & Baker, S. (2007). The complete idiot's guide to project management

(4th ed.) [pp. 110, 112]. New York: Penguin Group. 62. C

How long you have to complete the project. When you look at whether or not your project is "do-able," you should examine if your time frame is appropriate, if your expected costs are reasonable, and if the quality mark you've set is reachable. The feasibility of the project is not related to the amount of money the stakeholders invest because you may not need any investors for your project. It is not related to the project's definition (what it is exactly), and it is not related to what could happen on another project—similar or not. SOURCE: OP:001 SOURCE: QS LAP 28—From Here to Done (Project Planning)

63. D

Tim reviews an inventory-status report to determine if there are enough supplies on hand for the next project phase. Controlling is the management function of monitoring the work effort. Project managers monitor the work effort to ensure that resources are available when needed and that the project activities are being performed properly in a timely manner. When a project manager reviews an inventory-status report to determine if enough supplies are available, s/he is monitoring resources, which is a controlling activity. Determining what will be accomplished is a planning activity. Coordinating tasks is an organizing activity. Reviewing the qualifications of project-team candidates is a staffing activity. SOURCE: OP:340 SOURCE: Portny, S., Mantel, S. J., Meredith, J. R., Shafer, S. M., & Sutton, M. M. (2008). Project

management: Planning, scheduling, and controlling projects (pp. 320-321). Hoboken, NJ: John Wiley & Sons.


Be flexible. Unexpected situations occur during the course of a project. For example, a bottleneck in a particular process may cause problems. Or, a team member may become ill, which would cause delays. Therefore, it is important for project managers to be flexible. Flexibility may involve changing a process that isn't working or temporarily reassigning an ill team-member's workload to another person. Being flexible might mean that the project manager must work overtime or get additional resources or support from others. SOURCE: OP:340 SOURCE: Portny, S., Mantel, S. J., Meredith, J. R., Shafer, S. M., & Sutton, M. M. (2008). Project

management: Planning, scheduling, and controlling projects (pp. 320-321). Hoboken, NJ: John Wiley & Sons.

65. D

Selecting vendors. Businesses often buy from several vendors, or ask several vendors to submit bids. Therefore, an important step in the process of purchasing equipment and supplies for the business involves selecting the vendors. Businesses often establish criteria for selecting vendors such as reputation, quality of goods, delivery time, price, discounts, etc. Then, the business may decide to use the vendors that meet the criteria. Reviewing revenues, monitoring competitors, and visiting trade shows are not important steps in the purchasing process. SOURCE: OP:161 SOURCE: Van Weele, A.J. (2002). Purchasing and supply chain management: Analysis, planning and

practice (3rd ed.) [pp. 54-59]. London: Thomson Learning. 66. A

Maintain long-term relationships. To establish favorable relationships with vendors, both the company and its vendors must receive something they want. Companies must be willing to work with vendors to achieve mutual goals. To achieve their mutual goals, the company and its vendors should be willing to share relevant information, to negotiate fairly and compromise, and to be trustworthy and reliable. By taking these actions, the company and its vendors are less likely to experience serious conflicts. A good working relationship can facilitate profitability for both the company and the vendor, but does not always double a company's profit margin. SOURCE: OP:241 SOURCE: Krajewski, L.J., Ritzman, L.P., & Malhotra, M.K. (2007). Operations management: Processes

and value chains (8th ed.) [pp. 390-391]. Upper Saddle River, NJ: Pearson Education. 67. C

Blanket. A blanket order is an order that covers all or part of a retailer's seasonal requirements. Blanket orders typically are placed several months before the season, and do not contain detailed specifications or shipping dates. A special order is a request for a custom product or a product that a vendor does not normally carry in stock. A standing order is an order that involves sending specific products at set intervals. A rush order is a request for an order to be shipped for immediate delivery. SOURCE: OP:250 SOURCE: Cash, R. P., Thomas, C., Wingate, J. W., & Friedlander, J. S. (2006). Management of retail

buying (p. 208). Hoboken, NJ: John Wiley & Sons. 68. A

Buffer. A business carries buffer inventory when the supply of and demand for goods are uncertain. If the demand goes up, and supply goes down, having buffer inventory helps the business to cover its needs until supply is stable and available. Maintenance inventory refers to items the business uses to maintain the facility such as cleaning supplies and light bulbs. Perpetual inventory is a record of inventory information that is continuously updated. Customary inventory is sometimes used to describe the regularly stocked goods that the business carries. SOURCE: OP:336 SOURCE: Inman, R. (2009). Inventory types. Retrieved October 13, 2009, from

http://www.enotes.com/management-encyclopedia/inventory-types


A quantity discount. Businesses negotiate many terms when establishing and maintaining relationships with vendors. Often, a business may negotiate a quantity discount, which is a deduction from the seller's (vendor's) price for purchasing large volumes or dollar amounts of goods. Delivery terms address the manner in which the business will receive the product (e.g., delivery charges, transportation mode). Service terms address issues such as warranties, service calls, service fees, etc. A rebate is a return of part of the price that a customer pays for a product. SOURCE: OP:337 SOURCE: Farese, L. S., Kimbrell, G., & Woloszyk, C. A. (2009). Marketing essentials (pp. 555-556).

Woodland Hills, CA: Glencoe/McGraw-Hill. 70. C

It creates goods and services businesses can sell. Production is important to businesses because without production, businesses would have nothing to sell. All businesses must have products to sell in order to remain in business. Businesses must control production costs so that they do not have to charge higher prices than competitors. Marketing research, not production, informs businesses about consumers' wants and needs. Only if production is efficient does it prevent businesses from wasting resources. SOURCE: OP:017 SOURCE: BA LAP 1—Nature of Production

Clark, B., Sobel, J., & Basteri, C.G. (2006). Marketing dynamics (pp. 290-291). Tinley Park, IL: Goodheart-Willcox.

71. C

To minimize equipment failure. The primary objective of scheduling a regular program of preventive maintenance is to prevent unnecessary breakdowns in equipment. Whether maintenance is scheduled on a daily, weekly, or monthly basis would depend upon the type of business and equipment. Maintenance of equipment may affect the quality of the business's products but does not control it. A goal of maintenance is to slow the rate of deterioration, not to increase it. SOURCE: OP:032 SOURCE: Paster, T. (2007). The HACCP food safety training manual (p. 6). Hoboken, NJ: John Wiley &

Sons. 72. B

Comparing data. Business analysis is the process of investigating and evaluating a business issue, problem, process, or approach. Companies analyze different types of business activities including finances, marketing trends, sales, and production. One aspect of effective analysis involves comparing data. In many situations, comparing data from one period with similar data from another period will help a company determine if it is accomplishing goals, or if it needs to make adjustments to accomplish its goals. When employees are reviewing and analyzing financial reports and income data, they are not informing customers, submitting evidence, or influencing others' opinions. SOURCE: OP:327 SOURCE: B2T Training. (2009). Essential skills for business analysis. Retrieved October 9, 2009, from

http://www.b2ttraining.com/curriculum/training-program/Business-Analyst-Skills/ 73. C

Doing things in an organized and methodical manner. People who are orderly and systematic act in an organized and methodical manner. They keep calendars and lists rather than trying to memorize what needs to be done. They put a lot of thought into planning their activities and carrying them out efficiently. This does not mean that they have rigid personalities. SOURCE: PD:009 SOURCE: Clark, B., Sobel, J., & Basteri, C.G. (2006). Marketing dynamics (pp. 722-723). Tinley Park,

IL: Goodheart-Willcox.


Scheduling when an activity will be completed during the day. A master plan is an organized list of all the activities that an individual plans to accomplish in a given amount of time on a specific day. A weekly master plan would cover an entire week. It involves determining what has to be done, how much time it should take, how important the activity is, and when it will be carried out. The actual scheduling of daily activities is part of daily planning. SOURCE: PD:019 SOURCE: OP LAP 1—About Time (Time Management in Business)

75. C

Guidance counselor. Most schools have guidance counselors on staff who help students obtain career information and give them advice about possible occupations. Guidance counselors maintain current information about various types of jobs and can help students locate information that is not available at school. Guidance counselors often keep in touch with local employers and provide students with information about current job openings in the community. Industry recruiters may visit schools occasionally to recruit for specific occupations. The school's admissions director and curriculum planner are not sources of career information. SOURCE: PD:022 SOURCE: Kelly-Plate, J., & Volz-Patton, R. (2004). Exploring careers (4th ed.) [p.111]. New York:

Glencoe/McGraw-Hill. 76. A

By sending a resume and a cover letter. Businesses often include in their help-wanted advertisements a request that job applicants send the business a resume. The job applicant should comply with this request, but s/he should also send a cover letter with the resume. The cover letter, or letter of application, lends a personal touch to the resume and helps to "sell" the job applicant to the business. Businesses ask for resumes in their ads in order to save time. They do not want applicants to call on the phone or in person. Instead, they screen applicants by reviewing the resumes and interviewing only those applicants who seem best qualified for the job. SOURCE: PD:030 SOURCE: Kimbrell, G., & Vineyard, B.S. (2006). Succeeding in the world of work (pp. 122-126). New

York: Glencoe/McGraw-Hill. 77. A

Expand members' professional knowledge. Professional organizations/associations are comprised of persons in the same profession who form a society to further their common interests. These groups disseminate information and uphold professional standards. The primary focus of most professional organizations is not to recruit new members or promote the field of marketing. A trade association is a group of persons in the same industry or geographic area who form a society to solve their common problems. Increased profit is usually a trade association's primary goal. SOURCE: PD:036 SOURCE: Farese, L. S., Kimbrell, G., & Woloszyk, C. A. (2009). Marketing essentials (pp. 789-790).

Woodland Hills, CA: Glencoe/McGraw-Hill. 78. A

Ask their managers to clarify the policies. Employees need to follow their employers' rules of conduct. The rules of conduct outline a company's policies, procedures, and expectations regarding employees' behavior in the workplace. If an employee is unsure about a workplace rule or procedure, then the employee should ask his/her manager to clarify the business's policies. If the employee violates the company's rules of conduct, the employee may be reprimanded. Employees should verify the rules of conduct with their immediate or human-resources managers. Coworkers may not know about certain workplace policies, or they may communicate incorrect information. If an employee follows his/her own instincts, s/he may not be following the company's rules of conduct. Employees can simply ask their managers about workplace rules—it isn't necessary to conduct a formal investigation. SOURCE: PD:251 SOURCE: Mathis, R.L., & Jackson, J.H. (2003). Human resource management (10th ed.) [pp. 529-531].

Cincinnati: Thomson/South-Western.


Dismissal. The rules of conduct outline a company's policies, procedures, and expectations regarding employees' behavior in the workplace. When an employee violates the rules of conduct, the business may take corrective action. The type of action the business takes depends on the severity of the violation. Serious violations (e.g., theft, embezzlement) may result in the employee's dismissal. Verbal warnings, suspensions, and written documentation of the incident are other corrective actions the business may take; however, dismissal is the most serious consequence. SOURCE: PD:251 SOURCE: Mathis, R.L., & Jackson, J.H. (2003). Human resource management (10th ed.)

[pp. 529-531, 534-537]. Cincinnati: Thomson/South-Western. 80. D

Chief Executive Officer, Chief Financial Officer, Accounting Department Manager, and Accounts Payable Specialist. The chain of command defines the level of authority and identifies the specific individual who supervises particular employees. In this situation, the Chief Financial Officer reports to the Chief Executive Officer, who is the highest-ranking employee. The Accounting Department Manager reports directly to the Chief Financial Officer, and the Accounts Payable Specialist reports directly to the Accounting Department Manager. SOURCE: PD:252 SOURCE: Daft, R.L., & Marcic, D. (2001). Understanding management (3rd ed.) [pp. 224-227].

Cincinnati: Thomson/South-Western. 81. B

Performance standards. Organizational goals are the overall objectives or desired outcomes that the business wants to achieve. Goals provide the business with a standard or degree of excellence by which the business can measure its success. If the business meets or exceeds various organizational goals, then it is achieving what it set out to do. Achieving a certain level of profitability, securing and keeping competent workers, and encouraging collaborative efforts among employees are types of organizational goals that a business might set. SOURCE: PD:254 SOURCE: Associated Content. (2008, October 3). The nature of organizational goals. Retrieved

October 13, 2009, from http://www.associatedcontent.com/article/1059363/the_nature_of_organizational_goals.html

82. A

Ongoing communication. Employees' goals should align with the business's organizational goals. To ensure that employees understand the importance of their work and their roles in achieving the business's goals, managers must communicate with the employees on an ongoing basis. Ongoing communication may include brainstorming ideas to improve productivity, motivating employees by providing positive feedback, and evaluating their performance on a regular basis. Performance reviews may or may not include evaluation from peers. SOURCE: PD:255 SOURCE: Success Factors. (n.d.). Goal management. Retrieved October 15, 2009, from

http://www.successfactors.com/goal-management/small/ 83. C

Constraints. The statement of work (SOW) is a document that outlines the terms, commitments, and conditions of the project. The SOW should outline any limits or restrictions (e.g., time, money, human resources) that might affect the execution of the project, which should be placed in the constraints component of the SOW. The purpose or reason for the project is outlined in the beginning of the SOW. The benefits are the project's advantages. Deliverables are the goods, services, or documentation that will be provided to the stakeholder upon completion of the project. The example does not describe the purpose, benefits, or deliverables of the project. SOURCE: PJ:005 SOURCE: Campbell, G.M., & Baker, S. (2007). The complete idiot's guide to project management

(4th ed.) [pp. 74-77]. New York: Penguin Group.


To identify and better manage all project activities. Work breakdown structure (WBS) is the process of dividing project tasks into meaningful components to complete the project. Dividing the entire project into smaller components helps the project manager identify tasks and effectively schedule, assign, and monitor complex project activities. Project objectives are provided to stakeholders in the statement of work (SOW) document, which may also include information about the costs associated with the project. Although it is important for project managers to provide team members with feedback to improve their performance levels, this is not a primary reason for developing a WBS. SOURCE: PJ:006 SOURCE: Gido, J., & Clements, J.P. (2003). Successful project management (2nd ed.) [pp. 103-104].

Mason, OH: South-Western. 85. D

WBS dictionary. A WBS dictionary is a tool that helps inform project team members about the scope, status, milestones, and deliverables associated with each project activity. The dictionary can be formatted in a variety of ways, such as an organizational chart or an outline. By maintaining and keeping the dictionary in a central location (e.g., computer intranet), all team members have access to the information at any time. A thesaurus provides synonyms for words. A training chart would not be applicable to the situation described. A pie chart would not be feasible to use because of space limitations. SOURCE: PJ:006 SOURCE: Project Management Knowledge. (n.d.). Work breakdown structure dictionary. Retrieved

October 15, 2009, from http://www.project-management -knowledge.com/definitions/w/work-breakdown-structure-dictionary/

86. B

Delegating work. An important aspect of managing a project team is delegating work to team members. Delegating is assigning authority or responsibility to another person. Project managers need to match project tasks and activities with the team members who have the skills and expertise to perform the necessary tasks and activities. Corrine is not monitoring processes, providing guidance, or evaluating performance in the presented situation. SOURCE: PJ:007 SOURCE: Business Performance. (2003-2009). Project team management. Retrieved October 15,

2009, from http://www.businessperform.com/html/project_team_management.html 87. A

Closing. Many activities occur at the end or close of a project. Because the project has been completed, equipment and materials (supplies) are disposed of or provided to others for different projects or uses. Team members may be released to work on new projects or to return to work on previous assignments. Scheduling is the process of setting timelines for tasks to be completed. The goals are established during the planning phase of the project. During the initiating phase, the project is authorized to begin. Releasing resources from the project are not activities that occur during the scheduling process or the during the project's planning or initiating phases. SOURCE: PJ:008 SOURCE: Campbell, G.M., & Baker, S. (2007). The complete idiot's guide to project management

(4th ed.) [pp. 250, 332-333]. New York: Penguin Group.


Customer-satisfaction levels. Quality management is the coordination of resources to ensure the degree of excellence of a process, good, or service. One aspect of quality management involves customer-satisfaction levels with the business's products. To gauge the customers' satisfaction levels in relation to product quality, the business monitors sales and obtains and evaluates customer feedback. If customers are satisfied with product quality, customer feedback is likely to be positive, and sales will be steady or will increase. If product quality is declining, customer feedback will likely be negative, complaints and returns may increase, and sales may decrease. Factors that may affect customer-satisfaction levels include the product's durability, product's performance, and customer service. The efficiency of the production process and the employees' performance levels do not always affect product quality. SOURCE: QM:001 SOURCE: Money Instructor. (2002-2005). How to measure business quality. Retrieved October 15,

2009, from http://www.moneyinstructor.com/art/businessquality.asp 89. A

Incorporate the best overall quality-improvement processes. Capability Maturity Model Integration (CMMI) software helps guide improvement for projects, for departments, or throughout the overall organizational structure. It is designed to help businesses continuously improve their processes, outputs, and performance levels. A feature of the CMMI software program is that it has an auditing function that compares the business's existing processes with the CMMI model to evaluate efficiency levels. The audit results guide the business's decision making by examining both the efficient processes and inefficient processes. By using the CMMI model, the business can integrate its successful processes with those suggested by the CMMI model, which can help the business's quality improve. The purpose of the CMMI quality management framework is to facilitate quality improvement rather than develop long-term financial and operating plans and comply with government regulations. CMMI can help the business improve the efficiencies of all of its resources; however, not all businesses use natural resources in their production processes. SOURCE: QM:002 SOURCE: Carnegie Mellon Software Engineering Institute. (2009). CMMI: Overview. Retrieved October

15, 2009, from http://www.sei.cmu.edu/cmmi/ 90. A

Increased sales. Continuous improvement is an ongoing process that looks for ways to increase the levels of excellence in relation to a process, good, or service. A potential benefit of improved processes is increased sales. When quality improves, customer satisfaction levels often increase, which often results in a higher demand for the business's goods and services. Continuous quality improvement processes can increase productivity (outputs), which lowers costs and increases profits. SOURCE: QM:003 SOURCE: Taylor, H. (n.d.). Benefits of continuous quality improvement (CQI). Retrieved October 15,

2009, from http://www.ehow.com/facts_5317408_benefits-continuous-quality-improvement -cqi.html

91. B

The company's financial risk will increase. An employee who deliberately withholds information that negatively affects the company is acting in an unethical manner. Because Ted is stealing money from the company, the company is experiencing financial losses. By remaining silent, Michelle is increasing the company's financial risk because Ted may continue to take money from the company, which would increase the company's financial losses. In some jurisdictions, embezzlement is a felony. Ted will not be charged with a felony unless Michelle or another person tells the company's management about the embezzlement. Property insurance premiums and noncompliance fines are not likely to be affected if Michelle does not inform the company about Ted's embezzlement activities. SOURCE: RM:041 SOURCE: Head, G. (2005, February). Why link risk management and ethics? Retrieved October 16,

2009 from http://www.irmi.com/expert/articles/2005/head02.aspx


Intranet systems. An intranet system is a business's internal computer network. It allows for the electronic exchange of information among the business's employees. Because businesses often store confidential information (e.g., customer financial data, employee payroll data) on its intranet, they must take steps to ensure that unauthorized individuals do not obtain the information. Businesses use computer software applications to minimize security risks. Encryption techniques and passwords are examples of methods that businesses use to protect the confidential information that is stored on their intranet systems. Businesses do not use security software to protect their corporate policies, intercom systems, or spam e-mail. SOURCE: RM:042 SOURCE: Wilkinson, M. (2009, September 29). Risk management: Using technology as a tool.

Retrieved October 16, 2009, from http://www.gtnews.com/article/7773.cfm 93. B

Government regulations. Risk management is a business activity that involves the planning, controlling, preventing, and procedures to limit business losses. An important aspect of risk management involves complying with laws. If a business does not comply with laws, then it may be sued or fined, which could result in substantial financial losses. A failure to comply with laws may also affect the business's credibility with its customers. Therefore, it is important for a business to continuously monitor government regulations to ensure that it is in compliance, and make changes, if necessary, to become compliant. Monitoring competitors' activities, judicial opinions, and social etiquette will not reduce risks associated with noncompliance. SOURCE: RM:043 SOURCE: Federal Reserve Bank of Kansas City and Federal Reserve Bank of St. Louis. (2004).

Corporate governance: Consequences of noncompliance with laws and regulations. Retrieved October 16, 2009, from http://stlouisfed.org/col/director/Materials/call_CG_consequences.htm

94. D

Supervisory managers. Supervisory, or first-line, management works directly with the employees who carry out the business's routine work. Employees are responsible for performing the work assigned by their supervisors. Mid-level managers report to top-level management and have supervisors who report to them. They act as the link between top management and supervisory management. Consultants are individuals who give advice or share their expertise with other individuals or businesses for a fee. SOURCE: SM:001 SOURCE: SM LAP 3—Manage This! (Concept of Management)

95. D

Looking ahead. The management function of deciding what will be done and how it will be accomplished is planning. A primary aspect of the planning function is determining the goals or desired outcomes, which involves looking ahead. Measuring the success or achievement of goals is a controlling activity. Motivating employees is a directing activity. Establishing structure is an organizing activity. SOURCE: SM:063 SOURCE: Management Study Guide. (1998-2009). Planning function of management. Retrieved

October 13, 2009, from http://www.managementstudyguide.com/planning_function.htm 96. D

Time management. The organizing function of management involves setting up the way the business's work will be done. An important aspect of organizing involves understanding the time it takes an employee to complete certain tasks. By understanding the time it takes to complete work activities, the manager can determine the best way to structure the workload among the employees. Discipline, feedback, and rewards are issues associated with the directing function of management. SOURCE: SM:064 SOURCE: McNamera, C. (n.d.). Management function of organizing: Overviews of methods. Retrieved

October 13, 2009, from http://managementhelp.org/orgnzing/orgnzing.htm


Staffing. Staffing is the management function of finding workers for a business. An important staffing activity is identifying qualified candidates to do the work. To identify qualified candidates, the manager must know what skills are needed to perform the work. Leading involves directing the activities of others. Persuading is convincing others to take a certain course of action. Controlling is the management function of monitoring the work effort. SOURCE: SM:065 SOURCE: Taleo Corporation. (2009). Staffing management. Retrieved October 13, 2009, from

http://www.taleo.com/research/g-staffing-management-19.php 98. A

How will the company compensate this worker? Staffing is the management function of finding workers for a business. Recruiting, interviewing, hiring, and training are staffing activities. When hiring an employee, the manager must consider how the business will compensate the employee. This involves determining the appropriate salary range for the job, insurance, vacation, and other benefits. The company's vision is a consideration of the planning function of management. Workload distribution is a consideration of the organizing function of management. Product quality standards are considerations of the controlling function of management. SOURCE: SM:065 SOURCE: Taleo Corporation. (2009). Staffing management. Retrieved October 13, 2009, from

http://www.taleo.com/research/g-staffing-management-19.php 99. D

Instructing employees. Directing is the management function of providing guidance to workers and work projects. When managers provide employees with guidance, they are often providing employees with instructions about performing tasks in a certain sequence or manner. Establishing goals are planning activities. Determining tasks are organizing activities. Interviewing applicants are staffing activities. SOURCE: SM:066 SOURCE: Management Study Guide. (1998-2009). Directing function of management. Retrieved

October 13, 2009, from http://www.managementstudyguide.com/directing_function.htm 100. C

Rework. Control is the management function that monitors the work effort. Because Pablo is initiating corrective action to fix a problem or output, he is engaging in the rework control process. Preliminary control is a form of control in which the manager takes action to prevent problems from occurring. Developing a contingency plan or an alternative course of action is often part of preliminary control process. Functional is not a term that describes a form of control. Control refers to the management function that monitors the work effort. SOURCE: SM:004 SOURCE: Lussier, R.N. (2003). Management fundamentals: Concepts, applications, skill development

(2nd ed.) [pp. 434-435]. Mason, OH: South-Western.

test 1031 business management and administration … · 2018. 10. 11. · test 1031 business...

Documents