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What is a suggested way to minimize international tensions? A) Foster global economic growth among both profit-making and nonprofit organizations, especially in less developed countries B) Increase military budget C) Declare trade wars on competitor countries D) Limit work permits for foreign workers E) Isolate economically from other nations
A) Foster global economic growth among both profit-making and nonprofit organizations, especially in less developed countries Explanation: Promoting global economic growth is seen as a constructive approach to reducing international tensions, as it encourages cooperation and development.
Which of the following is NOT considered a factor of production? A) Natural resources B) Workers C) Willingness D) Capital E) Technology
C) Willingness Explanation: 'Willingness' is not classified as a factor of production; the recognized factors include natural resources, labor (workers), capital, and technology.
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p.1
Global Challenges for Businesses

What is a suggested way to minimize international tensions?
A) Foster global economic growth among both profit-making and nonprofit organizations, especially in less developed countries
B) Increase military budget
C) Declare trade wars on competitor countries
D) Limit work permits for foreign workers
E) Isolate economically from other nations

A) Foster global economic growth among both profit-making and nonprofit organizations, especially in less developed countries
Explanation: Promoting global economic growth is seen as a constructive approach to reducing international tensions, as it encourages cooperation and development.

p.1
Factors of Production

Which of the following is NOT considered a factor of production?
A) Natural resources
B) Workers
C) Willingness
D) Capital
E) Technology

C) Willingness
Explanation: 'Willingness' is not classified as a factor of production; the recognized factors include natural resources, labor (workers), capital, and technology.

p.1
Social Environment Aspects

Which of the following is NOT a social environment aspect that businesses need to pay attention to?
A) Managing diversity
B) The increase in the number of older citizens
C) The increase in the number of single-parent families
D) War and terrorism
E) Economic growth

D) War and terrorism
Explanation: While war and terrorism are significant global challenges, they are not categorized as social environment aspects that businesses typically focus on.

p.1
Management Functions and Leadership Styles

What does the term 'efficiency' mean in a business context?
A) Producing items using the least amount of resources
B) The total output generated from inputs
C) The ability to meet objectives effectively
D) Empowering employees to make decisions
E) The level of customer satisfaction

A) Producing items using the least amount of resources
Explanation: Efficiency refers to the ability to produce goods or services with minimal waste of resources, highlighting the importance of resource management in business.

p.1
Management Functions and Leadership Styles

What is meant by 'productivity' in a business context?
A) Efficiency in resource use
B) The number of outputs generated from the inputs used
C) The effectiveness of management strategies
D) The level of employee engagement
E) The financial performance of the company

B) The number of outputs generated from the inputs used
Explanation: Productivity measures how effectively inputs are transformed into outputs, indicating the efficiency of production processes.

p.1
Business Environment Elements

Increasing production efficiency by using the latest machines is an example of which business environmental factor?
A) Economic and legal environment
B) The technological environment
C) Social Environment
D) Global Business Environment
E) Competitive environment

B) The technological environment
Explanation: The use of advanced machinery to enhance production efficiency falls under the technological environment, which significantly impacts business operations.

p.2
Corporate Responsibility and Ethics

Taking someone’s personal information such as a credit card number for illegal acts is referred to as?
A) False Empowerment
B) Database theft
C) Identity theft
D) Credit card theft
E) Data manipulation

C) Identity theft
Explanation: Identity theft specifically refers to the act of taking someone's personal information, such as a credit card number, for illegal purposes, making it the correct choice.

p.2
Management Functions and Leadership Styles

Providing training and greater responsibility to workers is a form of?
A) Empowerment
B) Diversity
C) Responsibilities
D) Productivity
E) Management

A) Empowerment
Explanation: Empowerment involves providing employees with the training and responsibility needed to make decisions and take actions, enhancing their engagement and productivity.

p.2
Business Environment Elements

Those who are affected by the ups and downs of a business activity are referred to as?
A) Entrepreneur
B) Business owner
C) Stakeholders
D) Business Environment
E) Investors

C) Stakeholders
Explanation: Stakeholders are individuals or groups that are affected by the activities and performance of a business, making this the correct answer.

p.1
Business Environment Elements

Which of the following is NOT an element in the business environment?
A) Economic and legal environment
B) Technological environment
C) Competitive environment
D) People environment
E) Social environment

D) People environment
Explanation: The 'People environment' is not recognized as a distinct element in the business environment, while the other options are essential components that influence business operations.

p.7
Corporate Responsibility and Ethics

What term is used for insiders who report illegal or unethical behavior?
A) Prosecutors
B) Auditors
C) Investigators
D) Whistleblowers
E) Defendants

D) Whistleblowers
Explanation: Insiders who report illegal or unethical behavior are referred to as whistleblowers, highlighting their role in exposing wrongdoing within organizations.

p.13
Organizational Structure and Culture

What defines widely shared values within an organization that foster unity and cooperation?
A) Organizational principles
B) Organizational rules and guidelines
C) Organizational culture
D) Organizational structure
E) Organizational hierarchy

C) Organizational culture
Explanation: Organizational culture refers to the shared values and beliefs within an organization that promote unity and cooperation among its members to achieve common goals.

p.12
Organizational Structure and Culture

Companies like United Parcel Service (UPS) maintain strict written rules and decision guidelines for their service. This principle thrives on whose theory?
A) Adam Smith
B) Karl Marx
C) Max Weber
D) Henri Fayol
E) Frederick Taylor

C) Max Weber
Explanation: Max Weber's theory emphasizes bureaucracy and the importance of structured rules and guidelines in organizations, which is reflected in UPS's operational practices.

p.12
Management Functions and Leadership Styles

Global companies like Samsung and Apple concentrate their decision-making process at the top level of management. This decision-making process authority is called:
A) Decentralization
B) Centralization
C) Localization
D) Glocalization
E) Delegation

B) Centralization
Explanation: Centralization refers to the concentration of decision-making authority at the top levels of management, as seen in companies like Samsung and Apple.

p.10
Entrepreneurship and Small Business Challenges

Mrs. Nurhayati Subakat learned to be an entrepreneur from:
A) Learn from others
B) Get some experience
C) Looking for help
D) Take over a successful firm
E) Attending business school

B) Get some experience
Explanation: Mrs. Nurhayati Subakat's previous work in a cosmetic company provided her with valuable experience that contributed to her success as an entrepreneur.

p.5
Global Challenges for Businesses

Which agreement created a free-trade area among the United States, Canada, and Mexico?
A) GATT
B) COMESA
C) NAFTA
D) GATS
E) WTO

C) NAFTA
Explanation: NAFTA (North American Free Trade Agreement) established a free-trade area among the United States, Canada, and Mexico, facilitating trade between these countries.

p.7
Global Challenges for Businesses

What type of merger was formed when Exxon and Mobil combined to create ExxonMobil?
A) Vertical merger
B) Conglomerate merger
C) Horizontal merger
D) Acquisition
E) Joint venture

C) Horizontal merger
Explanation: The merger of Exxon and Mobil is classified as a horizontal merger because it involves two companies in the same industry combining their operations.

p.9
Entrepreneurship and Small Business Challenges

If Patrick opens a Kickstarter account to fund his new invention, he will gain funding from:
A) Angels and venture capitalists
B) Family and business associates
C) Banks and finance institutions
D) Small Business Association (SBA)
E) Crowdfunding backers

A) Angels and venture capitalists
Explanation: By using Kickstarter, Patrick is tapping into a crowdfunding platform where he can attract funding from angel investors and venture capitalists interested in innovative projects.

p.9
Entrepreneurship and Small Business Challenges

What term describes entrepreneurs who accept the risk of starting and managing a small business for a balanced lifestyle?
A) Multipreneurs
B) Micropreneurs
C) Intrapreneurs
D) Macropreneurs
E) Solopreneurs

B) Micropreneurs
Explanation: Micropreneurs are entrepreneurs who are willing to accept the risks associated with running a small business that allows them to pursue their desired work and maintain a balanced lifestyle.

p.12
Organizational Structure and Culture

One of the disadvantages of departmentalization is:
A) The company can achieve economies of scale easier
B) Departments may not communicate well
C) Employees can coordinate work within the function
D) Top management can easily direct and control various departments’ activities
E) Increased specialization

B) Departments may not communicate well
Explanation: A common disadvantage of departmentalization is the potential for poor communication between departments, which can hinder collaboration and efficiency.

p.9
Entrepreneurship and Small Business Challenges

What do we call creative individuals who work as entrepreneurs within corporations?
A) Multipreneurs
B) Micropreneurs
C) Intrapreneurs
D) Macropreneurs
E) Corporate entrepreneurs

C) Intrapreneurs
Explanation: Intrapreneurs are individuals who act like entrepreneurs within a corporation, driving innovation and new projects while benefiting from the resources of the larger organization.

p.7
Types of Business Ownership

What is one of the advantages of franchising, as seen with McDonald's?
A) Coattail effect
B) Internationally recognized name
C) Shared profit
D) Large start-up cost
E) Limited market reach

B) Internationally recognized name
Explanation: One advantage of franchising is the benefit of operating under an internationally recognized brand name, which can attract customers and enhance business credibility.

p.5
Global Challenges for Businesses

What is the definition of a global strategy in which a firm allows a foreign company to produce its product in exchange for a fee?
A) Franchising
B) Contract Manufacturing
C) Licensing
D) Exporting
E) Joint Venture

C) Licensing
Explanation: Licensing is a global strategy where a firm permits a foreign company to produce its product in return for a fee, allowing for international expansion without direct investment.

p.6
Corporate Responsibility and Ethics

Which of the following is NOT one of the four basic rights of consumers?
A) Right to safety
B) Right to be informed
C) Right for installments
D) Right to choose
E) Right to be heard

C) Right for installments
Explanation: The four basic rights of consumers include the right to safety, the right to be informed, the right to choose, and the right to be heard, but not the right for installments.

p.13
Organizational Structure and Culture

What category does David's action of giving pocket money and lunch to the office boy fall under?
A) Informal Organization
B) Organizational principles
C) Organizational norm
D) Formal Organization
E) Organizational policy

A) Informal Organization
Explanation: David's act of giving pocket money and lunch to the office boy, despite it not being a formal requirement, reflects the characteristics of an informal organization where personal relationships and gratitude play a role.

p.12
Organizational Structure and Culture

What is a visual device that shows relationships among people and divides the organization’s work to show who reports to whom called?
A) Organization structure
B) Chain of Command
C) Bureaucracy
D) Organization Chart
E) Organizational Framework

D) Organization Chart
Explanation: An organization chart visually represents the hierarchy and relationships within an organization, clarifying reporting lines and divisions of work.

p.6
Corporate Responsibility and Ethics

What type of ethical code focuses on compliance with laws and regulations?
A) Compliance-based ethical codes
B) Integrity-based ethical codes
C) Responsibility-based ethical codes
D) Management-based ethical codes
E) Profit-based ethical codes

A) Compliance-based ethical codes
Explanation: Compliance-based ethical codes are designed to ensure that businesses adhere to laws and regulations, emphasizing the importance of following established rules to avoid legal issues.

p.10
Management Functions and Leadership Styles

What is the process of preparing alternative courses of action if primary plans don’t work out called?
A) Strategic Planning
B) Tactical Planning
C) Operational Planning
D) Contingency Planning
E) Risk Management

D) Contingency Planning
Explanation: Contingency planning involves preparing alternative actions to take if the original plans fail, ensuring that the organization can adapt to unforeseen circumstances.

p.5
Corporate Responsibility and Ethics

Which statement is INCORRECT in explaining the difference between legality and ethics?
A) Ethics goes beyond obeying laws to include abiding by the moral standards accepted by society.
B) Ethics reflects people’s proper relationships with one another.
C) Legality reflects people’s improper relationships with one another.
D) Legality is more limiting; it refers only to laws written to protect people from fraud, theft, and violence.
E) Ethics can vary by culture.

C) Legality reflects people’s improper relationships with one another.
Explanation: Legality pertains to laws that govern behavior, while ethics involves moral principles; thus, legality does not inherently reflect improper relationships.

p.7
Types of Business Ownership

What is a disadvantage of Eve's form of business ownership as the sole owner of Eve Electronic Services?
A) Eve is able to keep all profit and benefits earned
B) Eve Electronic Services have a limited lifespan
C) Eve can be her own boss
D) Eve does not have to pay special taxes
E) Eve has unlimited access to resources

B) Eve Electronic Services have a limited lifespan
Explanation: A disadvantage of sole proprietorship is that the business has a limited lifespan, often tied to the owner's life or ability to run the business.

p.9
Entrepreneurship and Small Business Challenges

Which of the following is NOT a factor that could increase the chance of success for a small business?
A) The owner pays attention to new competitors
B) The business is in a growth industry
C) A large business sells a franchise operation to local buyers
D) The product is easily made by mass-production techniques
E) The owner has prior business experience

D) The product is easily made by mass-production techniques
Explanation: While mass-production can be beneficial, it is not a factor that directly increases the chance of success for small businesses, which often thrive on uniqueness and niche markets.

p.6
Corporate Responsibility and Ethics

How do businesses demonstrate corporate responsibility toward stakeholders?
A) By satisfying employees with goods and services of real value
B) By borrowing money from investors
C) By seeing that hard work and talent are unfairly rewarded
D) By creating new wealth for society and promoting social justice
E) By reducing costs at the expense of quality

D) By creating new wealth for society and promoting social justice
Explanation: Businesses demonstrate corporate responsibility by creating new wealth for society and promoting social justice, which reflects their commitment to stakeholders and the community.

p.5
Global Challenges for Businesses

Which of the following is NOT a potential stumbling block to global trade?
A) Legal and regulatory forces
B) Physical and environmental forces
C) Sociocultural forces
D) Physiological forces
E) Economic forces

D) Physiological forces
Explanation: Physiological forces are not typically considered a stumbling block to global trade, while legal, physical, and sociocultural forces can significantly impact international business.

p.6
Corporate Responsibility and Ethics

Which of the following is NOT a dimension of a company's social performance?
A) Corporate philanthropy
B) Corporate policy
C) Corporate responsibility
D) Corporate insurance
E) Corporate governance

D) Corporate insurance
Explanation: Corporate insurance is not considered a dimension of a company's social performance, which typically includes aspects like corporate philanthropy, policy, and responsibility.

p.13
Management Functions and Leadership Styles

What is the term for comparing an organization’s practices, processes, and products against the world’s best?
A) Networking
B) Benchmarking
C) Core competencies
D) Restructuring
E) Outsourcing

B) Benchmarking
Explanation: Benchmarking is the process of comparing an organization's practices, processes, and products against those of the best in the industry to identify areas for improvement.

p.12
Management Functions and Leadership Styles

Which option is NOT one of Fayol's Principles of Organization?
A) Subordination of individual interests to the general interest
B) Hierarchy of authority
C) Degree of Centralization
D) Staffing and promotion based on qualifications
E) Unity of command

D) Staffing and promotion based on qualifications
Explanation: While Fayol's principles focus on organizational structure and management, staffing and promotion based on qualifications is not one of his specific principles.

p.7
Types of Business Ownership

What type of partnership exists between Jack and Jill, where Jill does not have to worry about losing her assets due to Jack's mistakes?
A) General partnership
B) Limited partnership
C) Master limited partnership
D) Limited liability partnership
E) Sole proprietorship

D) Limited liability partnership
Explanation: In a limited liability partnership, partners are protected from personal liability for certain partnership obligations, which is the case for Jill regarding Jack's mistakes.

p.7
Types of Business Ownership

What is one advantage of establishing a corporation, such as Apple Inc.?
A) Ability to raise more money for investment
B) Difficulty of termination
C) Two tax returns
D) High initial cost
E) Limited liability for shareholders

A) Ability to raise more money for investment
Explanation: Corporations have the advantage of being able to raise more capital through the sale of stock, which can facilitate larger investments.

p.10
Entrepreneurship and Small Business Challenges

Which of the following is the incorrect statement regarding advantages of small business in international trade?
A) Small companies can provide a wide variety of suppliers
B) Small companies can give customers personal service and undivided attention
C) Small business can gain fund easier
D) Small companies can usually begin shipping much faster
E) Small companies can adapt quickly to market changes

C) Small business can gain fund easier
Explanation: The statement is incorrect because small businesses often face challenges in securing funding compared to larger firms, which can have more established credit and resources.

p.10
Management Functions and Leadership Styles

The process of developing detailed, short-term statements about what is to be done, who is to do it, and how to do it, is called:
A) Strategic Planning
B) Tactical Planning
C) Contingency Planning
D) Operational Planning
E) Project Planning

B) Tactical Planning
Explanation: Tactical planning focuses on the short-term actions and details necessary to implement strategies, specifying what needs to be done and by whom.

p.11
Management Functions and Leadership Styles

What is the ability to perform tasks in a specific discipline or department called?
A) Technical Skills
B) Human Relations Skills
C) Conceptual Skills
D) Managerial Skills
E) Leadership Skills

A) Technical Skills
Explanation: Technical Skills refer to the ability to perform specific tasks related to a particular discipline or department, such as selling or developing software.

p.2
Economic Systems: Capitalism and Socialism

An economic system which believes that some basic businesses must be owned by the government so that profits can be more evenly distributed among the people is a definition of the economic system .... One example of a country implementing this economic system is ....
A) Capitalism, Germany
B) Socialism, Denmark
C) Communism, Vietnam
D) Communism, Laos
E) Socialism, Sweden

B) Socialism, Denmark
Explanation: Socialism advocates for government ownership of certain businesses to ensure equitable profit distribution, and Denmark is a well-known example of a country that implements this system.

p.9
Entrepreneurship and Small Business Challenges

Which of the following is NOT a challenge of working at home?
A) Getting new customers
B) Managing cost
C) Keeping work and family tasks separate
D) Managing risk
E) Maintaining a professional image

B) Managing cost
Explanation: While managing costs can be a challenge in any business, it is not specifically a challenge unique to working at home, unlike the other options listed.

p.12
Organizational Structure and Culture

What type of organization involves specialists from different parts of the organization working together temporarily on specific projects, while still being part of a line-and-staff structure?
A) Matrix organization
B) Line and staff organization
C) Line organization
D) Cross-functional self-managed teams
E) Functional organization

A) Matrix organization
Explanation: A matrix organization allows for collaboration among specialists from various departments on specific projects, while maintaining their roles within the traditional line-and-staff structure.

p.6
Corporate Responsibility and Ethics

What indicator is used to measure an organization’s progress toward social responsibility?
A) Corporate social audit
B) Corporate cultural audit
C) Corporate legal audit
D) Corporate tax audit
E) Corporate financial audit

A) Corporate social audit
Explanation: A corporate social audit is used to measure an organization’s progress toward social responsibility, assessing its impact on society and ethical practices.

p.2
Economic Systems: Capitalism and Socialism

Countries that implement capitalism will have several advantages, except?
A) Society becomes more creative and innovative
B) Encouraging open competition between companies
C) Have easier management, control, and supervision processes
D) Willing to take the bigger risks than they might in general
E) Increased consumer choice

C) Have easier management, control, and supervision processes
Explanation: Capitalism often leads to more complex management and supervision processes due to the competitive nature of the market, making this the exception.

p.4
Global Challenges for Businesses

When does an unfavorable balance of payments exist?
A) More money is flowing out of a country than coming in
B) More money is flowing into a country than out
C) Money flowing in and out of a country is equal
D) There are no correct answers
E) More investments are made than received

A) More money is flowing out of a country than coming in
Explanation: An unfavorable balance of payments occurs when a country spends more on foreign trade than it earns, leading to a net outflow of money.

p.11
Management Functions and Leadership Styles

What is the first step in the Controlling function?
A) Taking corrective action when needed
B) Establishing clear performance standards
C) Communicating results to employees
D) Comparing results against plans
E) Setting objectives

B) Establishing clear performance standards
Explanation: The first step in the Controlling function is to establish clear performance standards to measure actual performance against.

p.5
Types of Business Ownership

What is the definition of a Joint Venture?
A) A partnership in which two or more companies join to undertake a major project
B) A foreign company's production of private-label goods to which a domestic company then attaches its brand name
C) A long-term partnership between two or more companies established to help each company build competitive market advantages
D) A global strategy in which a firm allows a foreign company to produce its product in exchange for a fee
E) A merger of two companies into one

A) A partnership in which two or more companies join to undertake a major project
Explanation: A Joint Venture involves two or more companies collaborating to undertake a significant project, sharing resources and risks.

p.6
Corporate Responsibility and Ethics

What is the term for unethical activities where employees use private company information for personal gain?
A) Insider trading
B) Whistleblowing
C) Corporate policy
D) Industry fraud
E) Corporate espionage

A) Insider trading
Explanation: Insider trading refers to unethical activities where employees use confidential company information to benefit themselves or their associates, violating ethical standards.

p.6
Corporate Responsibility and Ethics

Which group is NOT typically considered a watchdog monitoring corporate ethics and social responsibility?
A) Socially conscious investors
B) Socially conscious research organizations
C) Environmentalists
D) Local police
E) Union officials

D) Local police
Explanation: Local police are not typically considered watchdogs for corporate ethics and social responsibility; instead, groups like socially conscious investors, research organizations, environmentalists, and union officials serve this role.

p.2
Economic Systems: Capitalism and Socialism

Under free-market capitalism, people have the following basic rights, except ...?
A) The right to freedom of choice
B) The right to own a business and keep all that business’s profit
C) The right to own private property
D) The right to make legal regulations
E) The right to engage in trade

D) The right to make legal regulations
Explanation: In a free-market capitalist system, individuals do not have the right to make legal regulations; this is typically the role of government, making this the correct answer.

p.2
Economic Systems: Capitalism and Socialism

A major reason for the creation of a mixed economic system in the world is because?
A) The economic system of communism can cause shortages, which have an impact on the basic needs
B) Capitalism leads to monopolies
C) Socialism discourages innovation
D) Free markets can lead to inequality
E) Government intervention is always necessary

A) The economic system of communism can cause shortages, which have an impact on the basic needs
Explanation: Mixed economic systems were created to address the shortcomings of both communism and capitalism, particularly the shortages often seen in purely communist systems.

p.9
Entrepreneurship and Small Business Challenges

Which statement correctly identifies a reason why small businesses fail to compete?
A) Allow setbacks and unexpected expenses
B) Keep complete and accurate records
C) Underestimating how much time it will take to build a market
D) Borrowing money with a plan on how and when to pay it back
E) Focusing on customer service

C) Underestimating how much time it will take to build a market
Explanation: Small businesses often fail to compete because they underestimate the time required to establish a market presence, which can lead to inadequate planning and resource allocation.

p.10
Management Functions and Leadership Styles

Which of the following activities is NOT associated with Planning?
A) Developing strategies to reach those goals
B) Setting precise standards
C) Rewarding outstanding performance
D) Determining resources needed
E) Analyzing market trends

C) Rewarding outstanding performance
Explanation: Rewarding outstanding performance is not a planning activity; it is more related to performance management and motivation.

p.10
Management Functions and Leadership Styles

What is the 4th step of the six Ds of Decision Making?
A) Decide which alternative is best
B) Develop alternatives
C) Describe and collect needed information
D) Do what is indicated (begin implementation)
E) Determine the problem

A) Decide which alternative is best
Explanation: The fourth step in the decision-making process involves evaluating the alternatives and selecting the most suitable one for implementation.

p.4
Global Challenges for Businesses

Why is offshore outsourcing a major concern for the future?
A) It may cause an increase in the number of lost jobs in the home country
B) It may produce goods of superior quality
C) It may cause a decrease in the number of lost jobs in the home country
D) It may replace human labor with robots and AI
E) It may improve local economies

A) It may cause an increase in the number of lost jobs in the home country
Explanation: Offshore outsourcing raises concerns primarily because it can lead to job losses in the home country as companies move production or services to countries with lower labor costs.

p.11
Economic Systems: Capitalism and Socialism

What is the situation called when the average cost of goods decreases as production levels increase?
A) Economies of scale
B) Diseconomies of scale
C) Marginal cost of production
D) Maximum capacity
E) Production efficiency

A) Economies of scale
Explanation: Economies of scale refer to the cost advantage that arises with increased output, leading to a decrease in the average cost per unit.

p.8
Types of Business Ownership

Based on UU no 25 Tahun 1995, which of the following is NOT a right of every member of the cooperative?
A) Elect and/or be elected as a member of the management or supervisory
B) Request a member meeting according to the provisions in the articles of association
C) Express opinions or suggestions outside the member's meeting
D) Participate in business activities organized by the cooperative
E) Receive dividends from cooperative profits

D) Participate in business activities organized by the cooperative
Explanation: While participation in business activities is encouraged, it is not explicitly listed as a right of every member according to UU no 25 Tahun 1995.

p.4
Economic Systems: Capitalism and Socialism

Which two economic systems are categorized together?
A) Socialism and Capitalism
B) Socialism and Communism
C) Capitalism and Communism
D) Capitalism and Mixed Economy
E) Socialism and Free Market

B) Socialism and Communism
Explanation: Socialism and Communism are often grouped together as they both advocate for collective ownership and control of resources, contrasting with capitalist systems.

p.10
Organizational Structure and Culture

What level of management do Plant Managers belong to?
A) Top Management
B) Middle Management
C) Lower Management
D) Executive Management
E) Operational Management

B) Middle Management
Explanation: Plant Managers typically operate at the middle management level, overseeing day-to-day operations and implementing strategies set by top management.

p.3
Economic Systems: Capitalism and Socialism

Which of the following is an advantage of the communist economic system?
A) Less likely to experience an economic recession
B) Motivating business in the country
C) Willing to take bigger risks than they generally might
D) Society becomes more creative and innovative
E) Increased competition among businesses

A) Less likely to experience an economic recession
Explanation: One of the advantages of a communist economic system is that it is less likely to experience economic recessions due to its centralized control and planning.

p.3
Economic Systems: Capitalism and Socialism

Which of the following is NOT a characteristic of the capitalism economic system?
A) Very little incentive to work hard or to produce quality goods or services
B) Freedom of speech, religion, and choice of work
C) There is almost no shortage or oversupply in long time
D) Various kinds of goods and services available
E) High levels of competition among businesses

A) Very little incentive to work hard or to produce quality goods or services
Explanation: Capitalism typically provides strong incentives for individuals and businesses to work hard and produce quality goods and services, making option A incorrect.

p.3
Economic Systems: Capitalism and Socialism

What negative consequence can result from a socialist economic policy, as illustrated by the high tax rate in France?
A) Brain Drain
B) Brain Gain
C) Brain Circulation
D) Brain Waste
E) Brain Development

A) Brain Drain
Explanation: The high tax rate under socialist policies can lead to a 'brain drain,' where skilled and educated individuals migrate to other countries for better opportunities, as seen in the example of France.

p.4
Global Challenges for Businesses

What is the term for a country that can produce a specific product more efficiently than all others?
A) Absolute Advantage
B) Comparative Advantage
C) Competitive Advantage
D) Local-specific Advantage
E) Global Advantage

A) Absolute Advantage
Explanation: A country has an absolute advantage if it can produce a specific product more than all other countries, indicating superior efficiency in production.

p.11
Management Functions and Leadership Styles

What level of management is referred to as Middle Management?
A) Top Management
B) Middle Management
C) Supervisory (First-line) Management
D) Non-supervisory
E) Executive Management

B) Middle Management
Explanation: Middle Management is responsible for implementing the policies and plans set by top management and coordinating the activities of lower management.

p.11
Management Functions and Leadership Styles

What is Free-rein leadership?
A) Involves making decisions without consulting others
B) Involves managers and employees working together to make decisions
C) Involves managers setting objectives and employees being free to accomplish them
D) Involves managers and employees working independently
E) Involves strict supervision of employees

C) Involves managers setting objectives and employees being free to accomplish them
Explanation: Free-rein leadership allows employees the freedom to determine how to achieve the objectives set by managers, promoting autonomy.

p.4
Global Challenges for Businesses

Who suggested the theory of comparative advantage in the 19th century?
A) Adam Smith
B) David Ricardo
C) Karl Marx
D) Ray Vernon
E) John Maynard Keynes

B) David Ricardo
Explanation: David Ricardo is credited with the theory of comparative advantage, which explains how countries can benefit from trade by specializing in the production of goods they can produce relatively more efficiently.

p.11
Management Functions and Leadership Styles

Which management function includes hiring, motivating, and retaining employees?
A) Leading
B) Planning
C) Controlling
D) Staffing
E) Organizing

D) Staffing
Explanation: Staffing is the management function that focuses on hiring, motivating, and retaining the best people to achieve the company's objectives.

p.11
Management Functions and Leadership Styles

Which of the following is NOT something leaders must do?
A) Communicate a vision
B) Promote corporate ethics
C) Decline change
D) Establish corporate values
E) Inspire others

C) Decline change
Explanation: Leaders must embrace change rather than decline it, as adapting to change is crucial for organizational success.

p.8
Entrepreneurship and Small Business Challenges

Which of the following reasons for taking entrepreneurial risks is NOT valid?
A) Challenge
B) Profit
C) Opportunity
D) Dependence
E) Innovation

D) Dependence
Explanation: Dependence is not a reason for taking entrepreneurial risks; rather, entrepreneurs seek independence and opportunities for growth.

p.3
Economic Systems: Capitalism and Socialism

What is a potential drawback of the free market economic system?
A) It ensures equal income distribution
B) It can cause large income inequality in society
C) It guarantees full employment
D) It eliminates government intervention
E) It promotes equal opportunities for all

B) It can cause large income inequality in society
Explanation: The free market economic system has the potential to create significant income inequality, as wealth can become concentrated among those who are more successful in the market.

p.5
Corporate Responsibility and Ethics

Ethical standards that emphasize preventing unlawful behavior by increasing control and penalizing wrongdoers belong to which type of ethical code?
A) Compliance-based ethics
B) Integrity-based ethics
C) Corporate governance
D) Social responsibility
E) Stakeholder theory

A) Compliance-based ethics
Explanation: Compliance-based ethics focus on preventing unlawful behavior through strict controls and penalties, ensuring adherence to laws and regulations.

p.4
Global Challenges for Businesses

How do multinational corporations differ from other companies in global business?
A) They are ignorant of cultural implications in making business decisions.
B) They pay their employees in their home country’s currency.
C) They offer the same price for their products in every country they operate in.
D) They have manufacturing facilities or other physical presence in global markets.
E) They only operate in one country.

D) They have manufacturing facilities or other physical presence in global markets.
Explanation: Multinational corporations are characterized by their operations in multiple countries, often having physical facilities or a significant presence in those markets.

p.8
Types of Business Ownership

What is the minimum requirement of authorized capital that must be fully paid up according to UU no 40 Tahun 2007?
A) 10% of authorized capital
B) 20% of authorized capital
C) 25% of authorized capital
D) 5% of authorized capital
E) 30% of authorized capital

C) 25% of authorized capital
Explanation: UU no 40 Tahun 2007 specifies that at least 25% of the authorized capital must be issued and fully paid.

p.4
Global Challenges for Businesses

What is the definition of dumping?
A) Buying products from another country at lower prices
B) Selling products in a foreign country at lower prices than those charged in the producing country
C) Buying products in a foreign country at lower prices than those charged in the producing country
D) Selling products in a foreign country at higher prices than those charged in the producing country
E) Importing products without tariffs

B) Selling products in a foreign country at lower prices than those charged in the producing country
Explanation: Dumping refers to the practice of selling products in a foreign market at prices lower than those in the domestic market, often to gain market share.

p.3
Economic Systems: Capitalism and Socialism

What is an economic system where some resource allocations are made by the market and some by the government called?
A) Mixed economy, German
B) Socialism, Sweden
C) Capitalism, Canada
D) Mixed economy, Laos
E) Command economy, France

A) Mixed economy, German
Explanation: A mixed economy is characterized by a combination of market-driven and government-directed resource allocations, and Germany is an example of a country that adopts this system.

p.3
Economic Systems: Capitalism and Socialism

Which of the following is NOT an advantage of a socialist economic system?
A) Free education, health care, and child care
B) Longer vacations and more employee benefits
C) Emphasizes social and economic equality
D) Emphasizes the existence of the motive for freedom and profit economic growth
E) Reduced income inequality

D) Emphasizes the existence of the motive for freedom and profit economic growth
Explanation: While socialism emphasizes social and economic equality, it often reduces the incentives for profit-driven economic growth, making option D incorrect.

p.3
Economic Systems: Capitalism and Socialism

What role does the government play in a command economy?
A) Minimal involvement in economic decisions
B) Major role in deciding what goods and services to produce
C) Encouraging free market competition
D) Allowing consumer choice to dictate production
E) Promoting private ownership of resources

B) Major role in deciding what goods and services to produce
Explanation: In a command economy, the government plays a significant role in determining what goods and services are produced, who receives them, and how the economy grows.

p.5
Corporate Responsibility and Ethics

Which question is NOT part of the ethics check for business decisions?
A) Is it legal?
B) Does it bring good publicity?
C) Is it balanced?
D) How will it make me feel?
E) Is it beneficial for stakeholders?

B) Does it bring good publicity?
Explanation: While good publicity may be a consideration, it is not a fundamental question for an ethics check, which focuses on legality, balance, and personal feelings.

p.8
Types of Business Ownership

According to UU no 25 Tahun 1992, what is the definition of a Secondary Cooperative?
A) A cooperative established by and with its members as a cooperative
B) A cooperative that is founded by and has individual members
C) A cooperative that produces goods that have been previously processed by the Primary cooperative
D) A cooperative that is ready to become a Persero
E) A cooperative that operates independently

A) A cooperative established by and with its members as a cooperative
Explanation: A Secondary Cooperative is defined as one that is established by and with its members as a cooperative, emphasizing the collective nature of its formation.

p.8
Entrepreneurship and Small Business Challenges

What attribute explains the need to realize and actualize great business ideas?
A) Action-oriented
B) Highly energetic
C) Self-nurtured
D) Risk-averse
E) Detail-oriented

A) Action-oriented
Explanation: The attribute of being action-oriented emphasizes the importance of taking steps to turn business ideas into reality, rather than just having ideas.

p.8
Types of Business Ownership

Which of the following statements should NOT be included in the articles of association according to UU no 40 Tahun 2007?
A) The enormity of the authorized capital
B) Company’s period of establishment
C) Amount of paid-up capital
D) Procedures for the appointment, replacement, dismissal of the organization members
E) Company’s location

D) Procedures for the appointment, replacement, dismissal of the organization members
Explanation: According to UU no 40 Tahun 2007, the procedures for the appointment, replacement, and dismissal of organization members are not required to be included in the articles of association.

p.8
Types of Business Ownership

Which of the following is NOT a function and role of the cooperative according to UU no 25 Tahun 1992?
A) Participate actively in efforts to enhance the quality of human life and society
B) Build and develop the potential and economic capacity of members
C) Strengthen the people's economy as the basis for the national economy
D) Developing human resources and increasing the production of a particular good
E) Provide loans to members

D) Developing human resources and increasing the production of a particular good
Explanation: While cooperatives aim to enhance economic capacity, developing human resources and increasing production of specific goods is not explicitly listed as a function or role of cooperatives.

Study Smarter, Not Harder
Study Smarter, Not Harder