EOPA REVIEW Summary A

Contractual agreements such as insurance guarantees, surety bonds, and leases handle business risks through:

• Avoidance

• Management

• Prevention

• Transfer

A rivalry between two or more businesses to attract limited customer dollars is a/an:

• Battle

• Competition

• Corporation

• Partnership

How does publicity benefit the business’s promotional plan?

• It eliminates the need for advertising .

• It extends the business’s advertising budget.

• It reduces the business’s share of media coverage

• It replaces sales promotion.

Two forms of utility created by physical distribution are:

• form and location

• place and date

• possession and time

• date and time

A characteristic of a unit-control inventory system is that it

• identifies slow-selling items

• is inexpensive to use

• is useful to salespeople, but not to buyers

• records the value of stock

Which type of corporation sells shares to investors and must furnish information about its earnings, assets and debts?

• Public

• Limited

• Open

• Shell

The president of a company has asked employees to make suggestions for a new product the company could develop. This activity involves which step in the product-planning process

• concept testing

• feasibility analysis

• idea generation

• test marketing

Which of the following methods should a supervisor use to implement a preventive discipline program?

• Communicate standards clearly.

• Maintain proper records of employees’ violations.

• Take corrective action promptly for infractions.

• Use progressive penalties.

Who is responsible for recognizing and correcting problems that affect employees’ motivation?

• Employees

• leaders/managers

• mediators

• top-level management

The overall purpose of the Americans with Disabilities Act (ADA) is to:

• make it possible for qualified individuals with disabilities to get and keep jobs.

• prevent businesses from asking job applicants about their disabilities.

• require businesses to install handicapped ramps.

• require businesses to employ applicants with physical and/or mental disabilities.