Test Bank Chapter 9 Professions Under The Microscope

Chapter 9: Professions under the Microscope

= Correct answer

Multiple Choice/Fill in the Blank

1. Which of the following does an entrepreneur typically need to be willing to do to start a business?

A. Delegate the risk to start a company.

B. Self-finance the new company.

C. Select a product or service that will be sustainable.

D. Hire a board of directors to manage the business.

Difficulty: Moderate

Blooms: Remember

AACSB: Real-world

1. What percentage of venture-backed startups fail?

A. 25%

B. 50%

C. 60%

D. 75%

Difficulty: Easy

Blooms: Understand

AACSB: Real-world

1. Which is the most significant ethical pitfall of entrepreneurship?

A. financing

B. hubris

C. conflicts

D. modesty

Difficulty: Moderate

Blooms: Remember

AACSB: Real-world, Application

1. ________ began humbly in the garage of its founders?

A. Uber

B. Ben & Jerry’s

C. Hewlett-Packard

D. Apple

Difficulty: Easy

Blooms: Remember

AACSB: Real-world

1. Max Weber characterized the private economy as which of the following?

A. Appreciate the consequences of bureaucracy.

B. A money economy is a presupposition of bureaucracy.

C. Bureaucracy is predominant.

D. Bureaucracy is a basic institution.

Difficulty: Moderate

Blooms: Understand

AACSB: Application

1. Which of the following is not a problem that arises out of bureaucratization?

A. codified procedures

B. enhanced ethics

C. internal obstruction

D. management layers

Difficulty: Easy

Blooms: Remember

AACSB: Real-world

1. How can a company be nimble?

A. have an intricate management structure

B. maintain the same risk levels

C. adapt to change and risk identification

D. limit the flow of information

Difficulty: Moderate

Blooms: Understand

AACSB: Application

1. Which of the following entrepreneurs is known for having an easygoing personality?

A. Steve Jobs

B. Kerrie Laird

C. Walt Disney

D. Travis Kalanick

Difficulty: Easy

Blooms: Remember

AACSB: Real-world

1. Which of the following best defines entrepreneurial culture?

A. combination of dogmatic and detailed style

B. combination of management style and personality

C. combination of dedication and establishment

D. combination of execution mindset and fraternity

Difficulty: Easy

Blooms: Remember

AACSB: Real-world

1. What characteristics espouse a start-up culture? (Select all that apply.)

A. collaborative spirit

B. genuine fraternity

C. demanding hours

D. job security

Difficulty: Easy

Blooms: Understand

AACSB: Real-world

1. How can entrepreneurs best ensure their customer-service vision is passed on to employees?

A. Order it to happen through policies and procedures.

B. Make sure that longstanding employees know it.

C. Provide training to all employees.

D. Hire employees with advanced training.

Difficulty: Moderate

Blooms: Understand

AACSB: Real-world, Application

1. What are some ethical concerns about advertising? (Select all that apply.)

A. People do not need some of the promoted products or services.

B. Some ads exaggerate or distort what goods or services deliver.

C. Some ads explain all product attributes completely truthfully.

D. Some people need guidance on purchasing products or services.

Difficulty: Moderate

Blooms: Understand

AACSB: Real-world, Application

1. Why is a social media presence a “must”? (Select all that apply.)

A. The Internet is not an influential cultural factor.

B. Social media platforms symbolize wealth.

C. It drives brand awareness and revenue.

D. It could influence new purchasing decisions.

Difficulty: Moderate

Blooms: Understand

AACSB: Real-world, Application

1. A downside of a digital presence is ________.

A. astute companies have unlimited chance to promote

B. the content of ads changes dramatically

C. mobile apps are a playground for cyber thieves

D. proliferation of blogs means visibility

Difficulty: Moderate

Blooms: Understand

AACSB: Real-world, Application

1. Why do people buy products that are harmful to them?

A. People desire these products even if they do not need them.

B. People have limited disposable income for discretionary buying.

C. People tend to go against what advertisers tell them to buy.

D. People inherently seek out products that may be harmful.

Difficulty: Easy

Blooms: Understand

AACSB: Real-world, Application

1. ________ is the theory that reaches self-esteem and convinces people if they use certain products, they can feel better about themselves?

A. Physiological approach

B. Philosophical approach

C. Psychological approach

D. Purchasing approach

Difficulty: Easy

Blooms: Remember

AACSB: Real-world

1. How does consumer thought affect purchasing?

A. via the notion of what constitutes necessity as opposed to luxury

B. via the notion of what constitutes luxury as opposed to necessity

C. via the notion of what constitutes purchasing power

D. via the notion of what constitutes influential advertising

Difficulty: Moderate

Blooms: Apply

AACSB: Real-world, Application

1. Which is the best example of a novelty craze?

A. Kinko’s

B. pet rocks

C. conventional phones

D. big burgers

Difficulty: Easy

Blooms: Remember

AACSB: Real-world

1. How do children view advertising?

A. the same as information from all adults

B. the same as information from all sources

C. the same as information from trusted adults

D. the same as information from truthful children

Difficulty: Moderate

Blooms: Understand

AACSB: Real-world

1. Puffery refers to which of the following?

A. truthful statements

B. direct messages

C. subliminal advertising

D. exaggerated claims

Difficulty: Easy

Blooms: Remember

AACSB: Communication

1. What research did the BBC Earth Lab cite to prove or disprove that subliminal advertising is real?

A. evidence of brainwashing

B. texts and sounds presented as stimuli

C. evidence showing similarities to mind control

D. backmasking messages

Difficulty: Moderate

Blooms: Apply

AACSB: Application

1. Which of the following is an example of how the underlying insurance-industry business model is deemed ethical?

A. Prescription drugs are priced per market.

B. It enables health care accessibility.

C. Laws permit premiums to be set on incident.

D. Climate change created an insurance predicament.

Difficulty: Difficult

Blooms: Apply

AACSB: Application

1. What are common characteristics of founders of successful start-ups? (Select all that apply.)

A. ambitious drive

B. charisma

C. humility

D. powerful ego

Difficulty: Easy

Blooms: Remember

AACSB: Real-world

1. Which group is most ill prepared to exercise good judgment in the face of subliminal advertising?

A. scientists

B. skeptics

C. the very young

D. the very conscientious

Difficulty: Easy

Blooms: Remember

AACSB: Application

1. What is the ethical issue behind issuing disaster insurance?

A. Catastrophic loss can be financially devastating.

B. What constitutes a reasonable profit may be unfair.

C. The guarantee of a fair payout is an inducement.

D. Insurance premiums are calculated differentially.

Difficulty: Difficult

Blooms: Apply

AACSB: Application

1. The practice of redlining is best described as which of the following?

A. assigning particular premiums for insurance policies

B. denying particular premiums for insurance policies

C. assigning or denying coverage for certain policies

D. assigning or denying indemnification for insurance

Difficulty: Easy

Blooms: Apply

AACSB: Application

True/False

27. True or false? An entrepreneur must establish and be a member of the board of directors involved in starting a company.

Difficulty: Difficult

Blooms: Apply

AACSB: Real-world

1. True or false? In some cases, start-up founders can achieve “rock star status.”

Difficulty: Moderate

Blooms: Apply

AACSB: Application

1. True or false? All start-up companies must maintain the same product/service, approach, and team to be successful.

Difficulty: Moderate

Blooms: Apply

AACSB: Real-world

1. True or false? The Affordable Care Act is an example of redlining.

Difficulty: Easy

Blooms: Remember

AACSB: Real-world

1. True or false? Consumer responsibility is diminished if advertising is directed toward children.

Difficulty: Easy

Blooms: Evaluate

AACSB: Application

1. True or false? Companies always stick with the same leadership ethos throughout the years as they grow.

Difficulty: Moderate

Blooms: Apply

AACSB: Application

1. True or false? Even after a founder leaves a successful business, the philosophy and principles become enmeshed in the company lore.

Difficulty: Easy

Blooms: Remember

AACSB: Application

Short Answer

1. What are some ethical issues associated with health care delivery and access?

Difficulty: Difficult

Blooms: Apply

AACSB: Application, Real-world

1. Why is it the responsibility of a founder to establish an ethical business culture, and how is this done?

Difficulty: Moderate

Blooms: Apply

AACSB: Application

1. Describe the positive and negative effects of growth on employees and stakeholders in a start-up. Provide examples.

Difficulty: Difficult

Blooms: Analyze, Evaluate

AACSB: Reflection, Application

1. What risks does an entrepreneur assume when starting a new company?

Difficulty: Moderate

Blooms: Evaluate

AACSB: Real-world

1. What are the ethical implications of corporate wellness programs?

Difficulty: Difficult

Blooms: Apply

AACSB: Real-world

1. Provide a summary of the corporate culture at Uber during Travis Kalanick’s tenure as CEO.

Difficulty: Moderate

Blooms: Apply

AACSB: Application

1. Explain how a start-up can end up with a bureaucratic culture.

Difficulty: Difficult

Blooms: Apply

AACSB: Application

1. Define the digital era and identify ethical issues related to it.

Difficulty: Moderate

Blooms: Apply

AACSB: Real-world

1. Explain the emotional issues faced by the founder of Kinko’s.

Difficulty: Easy

Blooms: Apply

AACSB: Real-world

1. What is the premise of John Kenneth Galbraith’s The Affluent Society?

Difficulty: Easy

Blooms: Analyze

AACSB: Analytical

1. Why is subliminal advertising an ethical issue? Provide examples of research and analysis from the chapter.

Difficulty: Difficult

Blooms: Evaluate

AACSB: Analytical

1. Is disaster insurance unfair to insurance companies? Explain your answer and provide an example.

Difficulty: Difficult

Blooms: Apply

AACSB: Analytical

1. Can entrepreneurial companies foster a work-life balance?

Difficulty: Moderate

Blooms: Analyze

AACSB: Reflection

1. What factors does an employee consider when deciding what type of management they would prefer to work with?

Difficulty: Moderate

Blooms: Analyze

AACSB: Application

1. What is a more challenging culture to manage: established or start-up?

Difficulty: Moderate

Blooms: Evaluate

AACSB: Application

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