TUNKU ABDUL RAHMAN

UNIVERSITY OF MANAGEMENT AND TECHNOLOGY

JOHOR BRANCH
DEPARTMENT OF ACCOUNTANCY AND BUSINESS
ABDM 1183 INTRODUCTION TO BUSINESS
TUTORIAL 1 (Topic 1: The Dynamics of Business)
Section A: Multiple Choice Questions
1. _______is an organisation that provides goods or services that are then sold to earn
profits.
A. Non-profit organisation
B. Business
C. Government
D. Community

2. The most important difference between for-profit businesses and not-for-profit

organisations is that:
A. business do not benefit society
B. not-for-profit organisations seek to make a profit for its owners and organisers
C. not-for-profit organisations do not seek a profit for its owners or organisers
D. not-for-profit organisations do not file tax returns

3. Public schools, charities and government agencies generally ______.

A. are incorporated
B. do not seek to earn profits
C. prefer to seek profits
D. do not have any stakeholders

4. Which of the following is NOT an accurate statement regarding nonprofit

organizations?
A. They may provide goods and services.
B. They engage in fund-raising.
C. They have the fundamental goal of earning profits.
D. They utilize skills related to management, marketing, and finance.

5. Which of the following is an example of an intangible product?

A. jewelry
B. a kitten
C. perfume
D. a music concert

6. Amit hired an attorney to help him draft a purchase and sale agreement for his new
home. The home is an example of ____________.
A. tangible good
B. intangible good
C. idea
D. process

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7. Organisational stakeholders can be BEST defined as _____.
A. individuals and businesses that own stock in a company
B. the officers and key employees of an organisation
C. individuals and groups that have the interest in an organisaiton success.
D. competitors

8. Customers, employees, bankers, dealers, government officials and environmentalists

are some examples of ______.
A. stakeholders
B. stockholders
C. competitors
D. social watchdog

9. The sale of cigarettes is prohibited to people below 18 years of age. This statement is
related to which element in the external environment?
A. Social environment
B. Legal environment
C. Technological environment
D. Competitive environment

The principles and standards that determine acceptable conduct in business

organizations are referred to as __________.
A. social responsibility
B. business ethics
C. business strategies
D. corporate citizenship

2. Which statement is true regarding business ethics and social responsibility? A.

The terms social responsibility and ethics should be used interchangeably

B. The concerns of what is legal and ethical do not change over time
C. Companies can be both profitable and socially responsible
D. All actions deemed unethical by society are also illegal

3. A local landscaping company donates and plants a tree in the community for every new
client that uses its landscaping design services. This exhibits the company's ________
A. business ethics
B. business responsibility
C. profitability
D. social responsibility

4. ________ refers to a business's obligation to maximize its positive impact and

minimize its negative impact on society.
A. social citizenship
B. social ethics
C. social responsibility
D. social philanthropy

5. Lindsay, a manager, makes decisions that benefit her financially at the expense of her
firm. This is an example of which ethical issue in business?
A. bullying
B. bribery
C. conflict of interest
D. misuse of company time
6. The fact that businesspersons are expected not to harm customers, clients, and
competitors knowingly through deception, misrepresentation, coercion, or
discrimination is part of the practice of ___________.
A. business relationships
B. conflict of interest
C. fairness and honesty
D. consumerism

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7. Being profitable relates to the ________ dimension of social responsibility.
A. economic
B. legal
C. ethical
D. philanthropic

8. Obeying the law is a business's ________

A. economic responsibility
B. legal responsibility
C. ethical responsibility
D. philanthropic responsibility

9. Pollution of water and soil from activities such as oil and gas drilling is primarily
related to __________.
A. consumer relations
B. sustainability issues
C. community relations
D. employee relations

. ___________ is the shift toward a more integrated and interdependent world economy.
A. International Trade
B. Foreign Direct Investment
C. Globalization
D. Merger

2. A group of people who share a common set of values and norms is _______
A. culture
B. value
C. norm
D. society

3. Jenny believes in individual freedom, democracy, and loyalty, and she believes all
Americans do the same. This belief is an expression of Janine’s _______.

A. ethics
B. value
C. norm
D. society

4. In Maria’s company, senior officers eat in the same cafeteria as the entry-level workers.
On a trip to an office of the company in Brazil, she was surprised to find that the
company had different cafeterias for managers and workers as well as different
 parking lots. The difference that Maria perceived can be attributed to which of
Hofstede's dimensions?
A. individualism
B. power distance
C. collectivism
D. masculinity

5. Job security and retirement benefits are extremely important to an entry-level

employee. Hofstede would say this employee exhibits high ___________.

A. collectivism
B. masculinity
C. uncertainty avoidance
D. power distance

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6. When traveling to another country on business, Jacob was shocked to meet a male
nurse. In his hometown, nurses were always female. Jacob’s home country culture
displays a high degree of which of Hofstede's cultural dimensions?
A. collectivism
B. masculinity
C. low uncertainty avoidance
D. high power distance

7. A political system that promotes activity “for the good of society” is based on_____.
A. democratic principles
B. individualism
C. collectivism
D. public action

8. A government of a European nation believes that its citizens should have complete
freedom in their economic and political pursuits, and the ideology is "private profit
over public good." It can be said that this nation follows the philosophy of _____.

A. totalitarianism
B. socialism
C. individualism
D. communism.

9. A nation based on individualism would agree that________.

A. public good should be preferred over private profit
B. state-owned companies should monopolize certain industries
C. the welfare of society is more important
D. self-expression must be guaranteed

10. ___________ government involves political party that exercises absolute control over
all spheres of human life and prohibits opposing political parties.
A. Capitalism
B. Totalitarianism
 C. Democracy
D. Individualism

11. A country’s _________system is a part of the political

economy.

A. religious
B. education
C. value
D. legal

12. A __________ law system relies on a detailed set of laws organized into codes to
interpret the law.
A. civil
B. theocratic
C. common
D. traditional

13. What are the three broad forms of economic systems?

A. Laissez-faire, authoritarian, egalitarian
B. Free market, command, and mixed
C. Local, state, federal
D. Individualist, collectivist, majoritarian
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14. An economic system in which the interaction of supply and demand determines the
quantity in which goods and services are produced is called a __________ system.
A. barter
B. command
C. market
D. centrally planned

15. Countries in which the government plans the production of goods and services and
also the prices of these items operate in a(n) __________ economy.
A. mixed
B. market
C. command
D. majoritarian

16. In a __________ economy, certain sectors of the economy are left to private
ownership and free market mechanisms, while other sectors have significant state
ownership and government planning.
A. command
B. pure market
C. mixed
D. centrally planned

17. Kristina felt very uncomfortable while talking to the store manager because he moved
so close to Kristina that his face was just inches away. What aspect of the situation
was bothering Kristina?
A. verbal cues
B. punctuation
C. speech tone
D. unspoken language
_________ is a form of business ownership in which the owner/s can maintain maximum
control.
A. Partnership
B. Sole proprietorship
C. Private limited company
D. Public limited company

2. An entrepreneur who wishes to start a business with little delay or hassle, and wants to
be his or her own boss, should organize the business as a __________.

A. general partnership
B. cooperative
C. sole proprietorship
D. C corporation

3. Which of the following is a disadvantage of sole proprietorship?

A. Limited liability
B. Limited government regulation
C. Limited sources of fund
D. Confidentiality

4. Zita has discovered that she is bored working for others. She wants to open a business
in which she will have maximum control and the least interference from government
regulation. Which business form should she use?
A. Cooperative
B. Corporation
C. Partnership
D. Sole proprietorship

5. Which of the following legal form of business is owned and operated by two or more
owners who are financially responsible for its debts?
A. Corporation
B. General partnership
C. Sole proprietorship
D. Cooperative

6. Which of the following is considered an advantage of a general partnership as

compared to a sole proprietorship?
A. Ease and flexibility in transferring shares of ownership to others.
B. Unlimited liability for all owners
C. Division of profits among owners
D. Ability to pool financial resources

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7. A person who does not want to be liable for the debts of the partnership in the case of
business failure could still participate as a ________.
A. unlimited partner
B. limited partner
C. general partner
D. silent partner
8. Which of the following types of partners are not allowed to take part in the
management of the partnership and their personal properties will not be affected to
cover the partnership’s unpaid liabilities?
A. General partners
B. Limited partners
C. Master partners
D. Silent partners

9. Ah Chong has been asked to join a new partnership that is developing an office park.
He does not want to be liable for the firm’s debts if the project should fail. He could
still participate as a _______.
A. general partner
B. limited partner
C. silent partner
D. working partner

10. Which of the following is a similarity between a sole proprietorship and a

partnership?
A. Freedom in decision making
B. Ease of gathering financial resources
C. Longer survival
D. Tax advantage

11. Which of the following forms of ownership is a legal entity with authority to act and
have liability apart from its owners?
A. Sole proprietorship
B. Limited partnership
C. General partnership
D. Corporation

12. One disadvantage of _________ is the initial cost of formation.

A. corporations
B. general partnerships
C. sole proprietorships
D. limited partnerships

13. Corporations distribute profits to their owners in the form of

______.

A. tax-free dividends
B. interest
C. retained earnings
D. dividends

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14. The board of directors for a corporation is elected by its ________.
A. creditors
B. shareholders
C. managers
D. employees
15. Stock in TN Cargo is not available for sale to the general public. It is an example of a
________.
A. partnership
B. private corporation
C. public corporation
D. general partnership

________ make decisions about the use of an organization's resources and are concerned
with planning, organizing, directing, and controlling the organization's activities.
A. Managers
B. Shareholders
C. Customers
D. Suppliers

2. Determining an organization's objectives and deciding how to accomplish them is the

management function known as __________.
A. planning
B. organizing
C. directing
D. controlling

3. Dividing work into small units and assigning it to specific individuals is a task related
to the management function of __________.
A. planning
B. organizing
C. directing
D. controlling

4. All of the following are reasons organizing is important EXCEPT ________.

A. eliminates synergy
B. establishes lines of authority
C. improves communication
D. helps avoid duplication of resources

5. Providing incentives to employees to motivate them toward achieving organizational

objectives relates to the management function of ____________.
A. planning
B. organizing
C. directing
D. controlling

6. ________ is the process of evaluating and correcting activities to keep an organization

on course.
A. planning
B. organizing
C. directing
D. controlling

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7. For an organization, the first step in the management function of controlling is to
__________.
A. compare present performance with standards
B. take corrective actions when necessary
C. investigate the causes of any deviations
D. measure the actual performance
identifying

8. Positions such as foremen, supervisors, and office service managers are ________.
A. top management
B. first-line management
C. middle management
D. executive levels

9. When a manager makes sure there is adequate funding to pay for essential activities, he
or she is managing ________ resources.
A. human
B. financial
C. production
D. marketing

10. David is a bank manager. He manages the activities of an entire branch without
specializing in any one particular function. Thus, David is a(n) ____________. A.
human resource manager
B. production manager
C. marketing manager
D. administrative manager

11. Production and operations managers are concerned with

__________.

A. identifying and efficiently using sources of financing

B. planning, pricing, and promoting products
C. transforming resources into goods and services
D. recruiting new employees and developing employee programs

12. A marketing manager is responsible for ___________.

A. identifying and efficiently using sources of financing
B. hiring employees and dealing with them in a formalized manner
C. planning, pricing, and promoting products and overseeing their distribution
D. managing an entire business or a major segment of the business

13. Daniel is a first-line manager of a company. Because Daniel has worked in the field
for over 20 years, he is able to train employees, answer questions, provide guidance,
and solve problems. These abilities most closely describe his _________.

A. technical expertise
B. human relations skills
C. analytical skills
D. conceptual skills
14. Norah has the ability to negotiate effectively with clients, convince her team members
to work harder, and understand their needs, she has __________skills.

A. technical skills
B. cognitive skills
C. human relations skills
D. analytical skills
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15. John is the marketing manager. His department was given 3 new computer systems.
He must determine which of his employees should get the new computer. By doing
so, John is acting as a ____________.
A. disseminator
B. resource allocator
C. disturbance handler
D. negotiator

A group of activities that creating, distributing, pricing, and promoting goods, services,
and ideas is referred to as ______________.
A. organising
B. recruiting
C. marketing
D. motivating

2. The best way marketing activities create value is by ____________.

A. focusing on selling and advertising
B. lower down the price of the products
C. manipulating consumers to get them to buy products they do not want
D. allowing customers to obtain what they need and want

3. Martin goes to his favourite local bakery and hands the cashier $2 for a muffin. What
has just taken place?
A. A charity
B. A transfer
C. A donation
D. An exchange

4. A customer's subjective assessment of benefits relative to costs is ____________.

A. risk
B. value
C. cost
D. price

5. The market orientation approach emphasizes ______________.

A. performing promotional activities
B. determining what customers want first and then producing it
C. producing goods efficiently
D. making the products first and then persuade customers to buy
6. Small Treasure Gifts is deciding whether to sell its products in kiosks or in stores at
popular malls. This marketing mix decision is relate to _________.
A. price
B. place
C. promotion
D. product

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7. Millennial Phones decided to advertise its cell phones over social networking and other
popular websites. The decision to advertise through different media illustrates the
________ activities of the marketing mix.
A. price
B. place
C. promotion
D. product

8. A company has categorized its customers into three groups: construction companies,
wholesalers, and government institutions. Which marketing strategy is best illustrated
in this scenario?
A. mass production
B. market segmentation
C. market positioning
D. product differentiation

9. Which product is most suitable for selling through a total-market approach?

A. luxury cars
B. anti-aging creams
C. salt and sugar
D. jewelry items

10. In the ________ approach, a company develops one marketing strategy for a single
market segment.
A. mass-market
B. total-market
C. multisegment
D. concentration

11. In the ________ approach, the marketer aims its marketing efforts at two or more
segments, developing a marketing strategy for each.
A. mass-market
B. total-market
C. multisegment
D. concentration

12. Best Brands Foods is a company that manufactures and sells breakfast cereals. It
makes organic cereals for its health-conscious customers and colourful cereals with
cartoon characters for children. Best Brands Foods is using _______________.

A. mass-market approach
 B. total-market approach
C. concentration approach
D. multisegment approach

13. The Golden Group is a luxury hotels that caters exclusively to high-end customers
who form a small part of the market and are willing to pay for luxurious amenities.
The hotel has incorporated all possible luxuries to satisfy these customers. The
Golden Group is using _______________.
A. mass-market approach
B. total-market approach
C. niche marketing
D. multisegment approach

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14. A company develops an advertising campaign exclusively for a segment of consumers
with a certain income and education, which segmentation variable is the company
using?
A. behaviorial
B. demographic
C. psychographic
D. geographic

15. Political, legal, social, competitive, economic, and technological forces comprise the
___________.
A. marketing mix
B. marketing concept
C. marketing strategy
D. marketing environment