F 2.Vivian Chen decided to work for a floral design shop before opening her own shop. This was a poor decision since she used her labor to make someone else successful.
T 3.If a business plan is to be effective it must be specific in analyzing the competition, the money needed to start, and other details of operation.
T 4.The name of a new business should be easy to remember and not misleading.
F 5.It is not necessary for a business to obtain licenses or permits.
T 6.It is hard for a small business to employ or find good, qualified people.
chapter 3
T 1.Businesspeople should make every effort to be fair, to consider the welfare of customers and others within the firm, to avoid conflicts of interest, and to communicate honestly.
F 2.Businesses exist for the sole purpose of making profits and creating wealth for the owners.
T 3.Corporate culture is described as the personality of an organization and it guides how employees think, act, and feel.
F 4.The job itself, salary, and bonuses should ba paid more attention to than the corporate culture in term of job-hunting.
T 5.Corporate culture has three functions. The first one is to provide a sense of identity for members. The second one is to generate commitment to the organization’s mission. The third is to clarify and reinforce standards of behavior.
T 6.Just as different people have different personalities, different organizations have different personalities, different organizations have different corporate cultures.
F panies that treat employees well are said to have healthy corporate culture and these companies tend to have high employee turnover.
F 8.A big company usually has its subcultures and subcultures are regarded as separate cultures from the dominant culture.
T 9.Three major factors contribute to the emergence of corporate culture.They are company founders, experience with the general business and industry environment, and contact with others.
F 10.Only great events, not small tales, illustrate key aspects of an organization’s culture and telling great event can effectively introduce or reaffirm those values to employees.
T 11.The slang or jargon used in a company helps its employees define their identities as members of an organization.
T 12.Corporate culture and corporate climate are two different concepts. The former refers to the values, beliefs, and customs or norms of an organization, while the latter refers to the general atmosphere of an organization.
chapter 4
T 1.The president or CEO is the top management.
T 2.Supervisor is the name for a first-line manager,
F 3.The supervisor is locate at the top of the managerial hierarchy.
T 4.The vice president is located at the top of the managerial hierarchy.
T 5.The supervisor’s monitor role involves receiving and collecting information.
F 6.Supervisory management is less focused and more long-term than higher management role.
F 7.Initiating organizational change refers to a manager’s figurehead role.
T 8.In disseminating organizational information, the supervisor is acting in the role of spokesperson.
T 9.The relationship between the manager and employees refers to the leader role.
T 10.The most important role of the manager at all organizational levels is that of the leader.
T 11.Today’s managerial roles are commonly interdependent.
T 12.The roles of negotiator and resource allocator are closely related.
F 13.Conceptual skills are used by most supervisors.
F 14.Supervisors use human skills more than top managers.
T 15.Interpersonal relations are a type of human skills.
T 16.Management skills are classified into conceptual, human, and technical skills.
F 17.Technical skills are used most by middle managers.
T 18.The ability to effectively run a machine is classified as a technical skill.
T 19.Working effectively with a team to resolve conflicts describes a human skill.
F 20.In strategic planning, the company should diagnose threats and opportunities after implementing the company missions and goals.
chapter 5
F 1.Manufacturing and production mean the same thing.
T 2.When an ice company compresses carbon dioxide and cools it to produce dry ice, it is engaged in manufacturing process.
T 3.Paper mills should locate in areas where clean water is available in large quantities and at low cost.
T 4.The primary characteristic of a “just-in-time” inventory system is that suppliers deliver their products “just-in-time” to go on the assembly line.
F 5.The major purpose of program evaluation and review technique(PERT) is to identify the minimum time needed to complete a project.
T 6.CAD/CAM has made it possible to custom-design products to meet the tastes of small markets with a very small increase in costs.
F 7.The quality of goods or service is determined or defined by the producing companies.
F 8.Quality control is mainly about “preventing” defective output rather than detecting it.
chapter 6
F 1.If the introduction of a new product will reduce sales of an existing product sold by a company, the new product should not be introduced.
T 2.Marketing managers are concerned with product promotion, but they leave the actual design of the product managers.
F 3.The new product that your start-up company has developed appears to have significant market potential in 30 countries around the world. You should introduce it in all 30 countries as soon as possible in order to establish a foothold in the marketplace before the competition can get established.
T 4.A company does not always price its products or services to cover total costs plus a reasonable profit margin.
F 5.It is not possible to “differentiate” products that are considered “commodity” items.
T 6.Consumers usually do a lot of searching before they buy expensive products.
F 7.Market research starts with a look at primary data because it is easier and less expensive to obtain than secondary data.
T 8.In developing a market segmentation strategy it is possible to have a combination of demographic, geographic, and product usage dimensions to the strategy.
T 9.If a product/service is to be marketed in several countries, psychographic segmentation analysis would be important in developing an effective marketing strategy.
chapter 7
F 1.Orientation involves using application forms, resumes, interviews, employment and skills tests, and reference checks to evaluate and screen job candidates for the managers who will ultimately select and hire a candidate.
T 2.Training and development both aim to increase employees’ abilities to contribute to organizational effectiveness.
F 3.Low performers may have higher incomes and be prompted or transferred to help them develop their skills.
F 4.A booming economy can encourage expansion, which would increase the demand for employees. The same booming economy would result in high unemployment, making it easier and cheaper to attract qualified employees.
F 5.Firms recruit their employees only by such three sources as educational institutions, employment agencies, and job advertisements.
T 6.Managers can use four procedures to determine the training needs of individuals in their organization or subunit. They are performance appraisal, analysis of job requirements, organizational analysis, and employee survey.
T 7.The four C’s model for evaluating the effectiveness of HRM are competence, commitment, congruence, and cost effectiveness.
F 8.High commitment means that employees are versatile in their skills and can take on new roles and jobs as needed.
T 9.Salary is money compensation for longer periods of work time (e.g.a month or a year) and mostly paid to middle-and upper-level managers.
F 10.Like wages, salaries, and incentive programs which are directly linked with the jobs done, fringe benefits are also directly related with work performed.
T 11.The most common fringe benefits in the U.S. are life, health, and disability insurance, pension plans, and paid vacations.
T 12.Job enrichment and job enlargement have been adopted in many organizations to satisfy both the fundamental and personal needs of employees.
chapter 8
T 1.Money is a highly liquid financial asset that is generally accepted in exchange for other goods; it is used as a reference in valuing other goods, and can ba stored as wealth.
F 2.If there is too much money compared with the goods and services offered at existing prices, the goods and services will sell out, and money will not buy you anything, or prices will fall.
T 3.Money is a useful unit of account only as long as its value relative to the average of all other prices does not change too quickly.
T 4.Money is a financial asset. So it serves as a way to accumulate wealth until it is spent. To be a satisfactory store of purchasing power, however, the value of money should be reasonably stable over time.
F 5.Checking account refers to an account at a bank or other financial institution, with funds that can be withdrawn with an advance notice.
T 6.Savings accounts are not generally used for transactions or as a medium of exchange, because they cannot because directly as money, but their funds can be moved to a checking account which can be used directly by writing a check.
F 7.Money may be withdrawn from the savings account prematurely only after paying a substantial penalty which is higher than its total interest.
F 8.Average annual fees for the privilege of carrying specific credit cards are the most important source of money for issuing banks although bank cards are increasingly available with vary little charge.
F 9.Probably the most familiar form of electronic banking is the automated teller machine, which dispenses cash, accepts deposits, grant loans, and allows balance inquiries and cash transfers from one account to another.
T 10.Once a corporation issues common stock, it cannot be recalled from the market as callable bonds or callable preferred stock.
Chapter 9
F 1.E-Commerce was first developed in the 1980s.
T 2.EDI stands for Electronic Data Interchange.
T 3.EDI is often described as “paperless trading.”
F 4.Small and medium enterprises who cannot afford to establish overseas offices cannot contact with the outside world even if there exists E-Commerce.
F 5.E-Commerce includes two types: Business-to-Business(B2B) E-Commerce and Business-to-Consumer (B2C) E-Commerce.
F 6.It’s more expensive to launch a functional E-Commerce site than to open a new sales office or retail store.
T 7.E-Learning falls into two categories: synchronous and asynchronous.
T 8.E-Learning can save both time and money for the companies.
T 9.The Internet-based systems are often called “lite EDI” because many of them contain all the features of conventional EDI networks.
T 10.One important obstacle to the speed of B2B electronic commerce is the high technological demands that companies face in transferring data to electronic networks from computers.
T 11.The Internet can expand markets and territories, develop global marketing partnerships, and provide worldwide customer service.
chapter 10
T 1.One reason that a nation trades is that it lacks the raw materials, climate, specialist labor, capital, or technology needed to manufacture a particular good.
T 2.One way to maintain a fixed exchange rate is to manipulate the market through the use of official reserves.
T 3.The balance-of-payments statement shows all the payments a nation receives from foreign countries and all the payments it makes to them.
F 4.A country’s balance of payments is said to be in deficit by a certain amount if source of funds (such as imports or the receipts or the receipts of loans and investments ) exceed uses of funds (such as imports or investments in foreign countries ) by that amount .
T 5.A time draft allows for a delay in payment-normally 30, 60, 90, or 120 days.
F 6.A letter of credit is issued by a bank at the request of an exporter and then sent to the importer’s bank.
F 7.The most important function of tariffs is to raise revenue for the government.
F 8.A revenue tariff is designed to shield domestic producers from foreign competition.
T 9/Tariffs reduce the overall efficiency of the world economy because a protective tariff encourages domestic firms to produce products at home that, in theory, could be produced more efficiently abroad.。
