Management Notes

Reference Notes for Management

Special In-Store Displays For Magazines And Chewing Gum Are Most Likely To Be Effective If Located

Special In-Store Displays For Magazines And Chewing Gum Are Most Likely To Be Effective If Located

Special In-Store Displays For Magazines And Chewing Gum Are Most Likely To Be Effective If Located

 Options:

A) near the entrance to the store.
B) near the restrooms.
C) along the aisle or wall to the far right of the customer as he or she enters the store.
D) near the check-out counter.
E) in the window at the front of the store.

The Correct Answer Is:

D) near the check-out counter.

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The Old Cliché “Service With A Smile” Recognizes The Fact That

The Old Cliché "Service With A Smile" Recognizes The Fact That

The Old Cliché “Service With A Smile” Recognizes The Fact That

 Options:

A. service providers need to be pleasant even if the customer is not.
B. smiling is contagious.
C. service providers should smile and not think.
D. life is too short to be ugly.
E. services are perishable but a smile is forever.

The Correct Answer Is:

A. service providers need to be pleasant even if the customer is not.

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A strategic alliance:

C. Is a formal agreement between two or more companies in which there is strategically relevant collaboration of some sort, joint contribution of resources, shared risk, shared control and mutual dependence

A strategic alliance:

 Options:

A. Is a collaborative arrangement where companies join forces to defeat mutual competitive rivals
B. Involves two or more companies joining forces to pursue vertical integration
C. Is a formal agreement between two or more companies in which there is strategically relevant collaboration of some sort, joint contribution of resources, shared risk, shared control and mutual dependence
D. All the above.

The Correct Answer Is:

C. Is a formal agreement between two or more companies in which there is strategically relevant collaboration of some sort, joint contribution of resources, shared risk, shared control and mutual dependence

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Suppose that the nominal tariff rate on finished computers is 12 percent and that the weighted average of the nominal tariff rates on the inputs used in producing computers is 18 percent. Thus the effective rate of protection for the computer industry must

Suppose that the nominal tariff rate on finished computers is 12 percent and that the weighted average of the nominal tariff rates on the inputs used in producing computers is 18 percent. Thus the effective rate of protection for the computer industry must

Suppose that the nominal tariff rate on finished computers is 12 percent and that the weighted average of the nominal tariff rates on the inputs used in producing computers is 18 percent. Thus the effective rate of protection for the computer industry must

 Options:

a. be less than 12 percent, and can be negative
b. be less than 12 percent, but must be greater than zero
c. equal 6 percent
d. exceed 30 percent

The Correct Answer Is:

a. be less than 12 percent, and can be negative

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A foreign-trade zone (FTZ) is

A foreign-trade zone (FTZ) is

A foreign-trade zone (FTZ) is

 Options:

a. a regional area within which trade with foreign nations is allowed
b. a free trade agreement among several nations
c. designed to limit exports of manufactured goods by placing export taxes on goods made within the zone
d. designed to promote exports by deferring import duties on intermediate inputs and waving such duties if the final product is re-exported rather than sold domestically

The Correct Answer Is:

d. designed to promote exports by deferring import duties on intermediate inputs and waving such duties if the final product is re-exported rather than sold domestically

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The effective rate of protection

The effective rate of protection

The effective rate of protection

 Options:

a. distinguishes between tariffs that are effective and those that are ineffective
b. is the minimum level at which a tariff becomes effective in limiting imports
c. shows how effective a tariff is in raising revenue for the government
d. shows the increase in value added for domestic production that a particular tariff structure makes possible, in percentage terms

The Correct Answer Is:

d. shows the increase in value added for domestic production that a particular tariff structure makes possible, in percentage terms

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Assume that Country A is relatively abundant in labor and Country B is relatively abundant in land. Note that wages are the returns to labor and rents are the returns to land. According to the factor price equalization theorem, once Country A begins specializing according to comparative advantage and trading with Country B

Assume that Country A is relatively abundant in labor and Country B is relatively abundant in land. Note that wages are the returns to labor and rents are the returns to land. According to the factor price equalization theorem once Country A begins specializing according to comparative advantage and trading with Country B

Assume that Country A is relatively abundant in labor and Country B is relatively abundant in land. Note that wages are the returns to labor and rents are the returns to land. According to the factor price equalization theorem once Country A begins specializing according to comparative advantage and trading with Country B

 Options:

a. wages and rents should fall in Country A
b. wages and rents should rise in Country A
c. wages should rise and rents should fall in Country A
d. wages should fall and rents should rise in Country A

The Correct Answer Is:

c. wages should rise and rents should fall in Country A

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New entrepreneurs entering the field of medium industry for the first time can have market studies with the subsidiary of ______________.

New entrepreneurs entering the field of medium industry for the first time can have market studies with the subsidiary of ______________.

New entrepreneurs entering the field of medium industry for the first time can have market studies with the subsidiary of ______________.

 Options:

A. 75% of the cost or Rs.15000 whichever is less.
B. 75% of the cost or Rs.15000 whichever is high
C. 50% of the cost or Rs.15000 whichever is less.
D. 50% of the cost or Rs.15000 whichever is high

The Correct Answer Is:

A. 75% of the cost or Rs.15000 whichever is less.

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A business plan is important for all of the following reasons EXCEPT:

A business plan is important for all of the following reasons EXCEPT:

A business plan is important for all of the following reasons EXCEPT:

 Options:

A. a business plan forces a firm’s founders to systematically think through each aspect of their new venture.
B. a business plan provides lenders and investors assurance that they will earn a decent return.
C. a business plan provides an investor with something to react to.
D. a business plan is a selling document that enables a company to present itself to potential suppliers and business partners.

The Correct Answer Is:

B. a business plan provides lenders and investors assurance that they will earn a decent return.

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Intrapreneurship often takes the form of

Intrapreneurship often takes the form of

Intrapreneurship often takes the form of

 Options:

A. A semi-autonomous group (e.g. an internal venture team), operating within the overarching structure of the parent organization.
B. A spinout venture from a university to commercial a new invention.
C. A subsidiary of a large corporation developing a new product.
D. A semi-autonomous group operating outside the overarching structure of the parent organization

The Correct Answer Is:

A. A semi-autonomous group (e.g. an internal venture team), operating within the overarching structure of the parent organization.

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An internal auditor discovered that fictitious purchases have been recorded by the purchase clerk. This indicates absence of which control?

An internal auditor discovered that fictitious purchases have been recorded by the purchase clerk. This indicates absence of which control?

An internal auditor discovered that fictitious purchases have been recorded by the purchase clerk. This indicates absence of which control?

 Options:

a) Purchase invoices are independently matched with purchase orders and goods received notes
b) Goods received notes requires the signature of individual who authorized the purchase
c) Routine checks are performed by internal auditor fortnightly.
d) Purchase function and production function are clubbed in one department

The Correct Answer Is:

a) Purchase invoices are independently matched with purchase orders and goods received notes

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An auditor conducts a surprise check on the pay day (i.e) the day wages and salaries are paid. The primary purpose of this audit procedures is

An auditor conducts a surprise check on the pay day (i.e) the day wages and salaries are paid. The primary purpose of this audit procedures is

An auditor conducts a surprise check on the pay day (i.e) the day wages and salaries are paid. The primary purpose of this audit procedures is

 Options:

a) to ensure that there are no ghost workers
b) to ensure the casual workers employed are authorized by the supervisor
c) to test procedures for distributing pay cheques
d) to obtain understanding of internal control system

The Correct Answer Is:

c) to test procedures for distributing pay cheques

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