Midterm Testbank | Môn Business Administration - Trường Đại học Quốc tế, Đại học Quốc gia Thành phố Hồ Chí Minh

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Testbank – Midterm – Introduction to Business Administration – 2024/2025(Semester 2)
 Which business activity is focused on setting long-term objectives and determining
strategies to achieve them? A) Marketing B) Planning C) Organizing D) Controlling
 A business that operates internationally must consider which key challenge? A) Local employee dress codes
B) Global economic fluctuations C) Office furniture costs D) Number of product colors
 A company’s brand image is most strongly influenced by: A) Its advertising strategies B) The CEO’s personality C) Employee dress codes D) The number of departments
 A startup company typically faces which of the following challenges? A) Access to capital B) Declining brand reputation
C) Too many competitors in the mature market D) High employee turnover
 The process of identifying and meeting customer needs is called: A) Operations management B) Finance management C) Marketing D) Auditing
 Which financial ratio is used to measure a company's profitability? A) Liquidity ratio B) Debt-to-equity ratio C) Gross profit margin D) Accounts payable turnover
 Which of the following is NOT a direct advantage of e-commerce for businesses? lOMoAR cPSD| 59078336 A) Lower operational costs B) Wider customer reach
C) Reduced need for cybersecurity D) Ability to operate 24/7
What is the main purpose of an organizational chart?
A) To determine employee salaries
B) To show the structure of a company’s hierarchy
C) To create financial reports D) To measure productivity
 A small bakery purchases a wheat farm to control its supply chain. This is an example of: A) Horizontal integration B) Market penetration C) Vertical integration D) Diversification
 Which of the following is an internal factor that affects a business? A) Government regulations
B) Competitor pricing strategies
C) Employee skills and productivity D) Inflation rates
 What is the primary reason businesses conduct SWOT analyses?
A) To eliminate all weaknesses
B) To assess internal and external factors impacting business performance
C) To determine employee salaries
D) To create advertising strategies
 Which of the following is an example of a variable cost? A) Monthly rent payments
B) Salaries of administrative staff
C) Raw materials used in production
D) Annual business license fees
 Which pricing strategy involves setting prices lower than competitors to attract
customers? A) Price skimming B) Competitive pricing C) Penetration pricing D) Psychological pricing
 A successful entrepreneur is typically characterized by: A) A fear of taking risks lOMoAR cPSD| 59078336 
B) A focus only on short-term success
C) High motivation and creativity
D) A reluctance to adapt to change
 Which document outlines a company’s financial position at a specific point in time? A) Balance sheet B) Income statement C) Cash flow statement D) Marketing plan
 What is the primary function of human resource management?
A) Selling products to customers
B) Managing employee relations and performance
C) Analyzing financial statements
D) Creating new product designs
 A company deciding to enter a new international market is an example of: A) A financial decision B) A marketing strategy
C) A business expansion strategy D) An operational change
 What is the key objective of corporate social responsibility (CSR)?
A) Maximizing shareholder profits only
B) Enhancing the company’s brand and contributing to society C) Reducing advertising costs D) Avoiding taxes
 A company with high employee motivation is likely to experience: A) Increased absenteeism
B) Higher productivity and lower turnover C) Greater financial losses D) More workplace conflicts
 Which of the following best describes a franchise business model?
A) A single company owns and operates all locations
B) Entrepreneurs purchase the rights to use an established brand
C) A government agency regulates company operations
D) A business only sells products online
 Which external factor is most likely to affect a business’s ability to secure loans?
A) The company’s internal marketing strategy lOMoAR cPSD| 59078336 B) Employee job satisfaction
C) Interest rates set by banks
D) The CEO’s leadership style
 Why do companies use financial forecasting?
A) To reduce employee workload
B) To predict future revenues and expenses C) To increase fixed costs D) To avoid paying taxes
What is the purpose of diversification in business?
A) To focus on one product only
B) To reduce risk by expanding into new products or markets C) To limit business growth D) To avoid competition
 Which of the following is a common characteristic of monopolies?
A) Many competitors offering similar products
B) Control over pricing due to lack of competition
C) High customer bargaining power
D) Constant product innovation due to competition
 The process of turning raw materials into finished goods is known as: A) Financial management B) Operations management C) Marketing D) Public relations
 Which of the following helps a business determine its breakeven point?
A) Total revenue and total costs
B) Employee satisfaction scores C) Customer reviews D) Brand equity
 Which strategy focuses on reducing costs and offering products at a lower price than competitors? A) Differentiation strategy B) Cost leadership strategy
C) Market penetration strategy D) Niche strategy
 Why is data analytics important in business decision-making?
A) It replaces the need for managers
B) It helps companies make informed, data-driven decisions lOMoAR cPSD| 59078336 
C) It guarantees financial success D) It eliminates competition
 Which of the following is an example of an intangible asset? A) Office buildings B) Machinery C) Brand reputation D) Inventory
 What is the main advantage of outsourcing business functions? A) Increased costs B) Reduced efficiency
C) Access to specialized skills and lower costs
D) Loss of control over operations
 Inflation refers to:
A) An increase in the price level of goods and services over time
B) A decrease in the money supply
C) A reduction in economic growth
D) The total value of goods produced in an economy
 Which of the following is an external factor affecting business? A) Employee motivation B) Organizational structure C) Government regulations D) Leadership style
 What is the primary goal of most businesses?
A) Increasing market competition B) Maximizing profit C) Reducing workforce size
D) Implementing government policies
 Which business function is responsible for managing company finances? A) Human resources B) Operations C) Finance D) Marketing
 A SWOT analysis identifies:
A) Sales, Wages, Opportunities, and Transactions
B) Strengths, Weaknesses, Opportunities, and Threats lOMoAR cPSD| 59078336
C) Strategy, Wealth, Operations, and TalentD) Services, Workforce, Objectives, and Taxes
 A competitive advantage is:
A) A government policy that protects businesses
B) An advantage that allows a company to outperform its competitors
C) A company's ability to expand globally
D) The process of reducing business costs
 A company that focuses on cost leadership aims to:
A) Offer unique and expensive products
B) Minimize expenses while offering acceptable quality
C) Provide personalized customer service
D) Focus only on international markets
Which of the following best describes market segmentation?
A) Dividing a market into distinct groups of buyers
B) Selling all products at the same price
C) Merging multiple markets into one
D) Producing a single product for all customers
 A break-even analysis helps businesses determine:
A) When total revenue equals total costs
B) The highest price a product can be sold at
C) The number of competitors in the industry
D) The potential growth of a business
 The primary function of human resource management is: A) Managing business accounts
B) Hiring, training, and developing employees
C) Ensuring legal compliance for the business D) Conducting market research
 Which of the following is NOT a financial statement? A) Income statement B) Balance sheet C) Customer feedback report D) Cash flow statement
 What is the purpose of a business plan?
A) To persuade investors and guide business operations
B) To create advertisements for products C) To set the price of goods
D) To replace financial statements lOMoAR cPSD| 59078336 
 What is the role of leadership in an organization?
A) To make all decisions alone
B) To influence and guide employees toward business goals C) To eliminate competition D) To reduce costs only
 Which of the following is an example of a fixed cost in a business?
A) Employee wages for hourly workers
B) Electricity costs that vary by usage C) Monthly office rent D) Cost of raw materials
 A business seeking to increase brand loyalty should focus on:
A) Reducing product prices only
B) Improving customer experience and engagement C) Increasing supplier costs D) Limiting marketing efforts
 What is the primary goal of total quality management (TQM)?
A) Reducing marketing expenses
B) Improving product and service quality continuously
C) Increasing production quantity over quality D) Limiting employee feedback
 Which financial statement shows a company’s profitability over a specific period? A) Balance sheet B) Cash flow statement C) Income statement D) Budget report
 Which of the following best describes autocratic leadership?
A) Employees participate in decision-making
B) Leaders make decisions without employee input
C) Teams operate independently without leaders
D) Managers allow employees complete freedom
 Why do businesses conduct competitor analysis?
A) To copy competitors' strategies
B) To understand market trends and improve competitiveness
C) To limit business expansion
D) To decrease marketing efforts lOMoAR cPSD| 59078336
 Which department is primarily responsible for managing employee performance and training? A) Finance B) Operations C) Human Resources D) Marketing
 A business that relies on just one major supplier is at risk of:
A) Increased supply chain flexibility B) Lower production costs
C) Supplier dependency and potential disruptions
D) Stronger bargaining power over suppliers
 Which of the following is a benefit of customer relationship management (CRM) systems?
A) Increased advertising costs
B) Improved customer retention and personalized interactions
C) Reduced need for product quality improvements
D) Elimination of customer complaints
A company using a "loss leader" pricing strategy aims to:
A) Maximize short-term profits on every product
B) Sell a product at a low price to attract customers for other purchases
C) Increase fixed costs intentionally D) Avoid price competition
 Which of the following is an example of a corporate social responsibility (CSR) initiative? A) Increasing product prices
B) Reducing customer service hours
C) Donating to environmental conservation programs
D) Expanding operations without sustainability considerations
 What is a major disadvantage of a sole proprietorship?
A) Shared decision-making power
B) Limited financial risk for the owner
C) Unlimited personal liability for business debts
D) More complex legal requirements than corporations
 Which of the following is considered a strength in a SWOT analysis?
A) New government regulations affecting the industry
B) A company’s strong brand reputation
C) The emergence of a new competitor
D) Economic downturn affecting demand lOMoAR cPSD| 59078336 
 Which strategy would a company use to attract environmentally conscious consumers? A) Price reduction strategy
B) Sustainable product development
C) Ignoring environmental regulations
D) Eliminating quality control processes
 What is the main function of an entrepreneur in a business?
A) To take financial risks and innovate B) To avoid competition
C) To only focus on managing employees
D) To prevent changes in market trends
 Which of the following would increase a company’s working capital?
A) Increasing short-term liabilities B) Decreasing cash reserves C) Increasing current assets
D) Paying off suppliers faster
 A company that decides to sell its products through online marketplaces instead of
physical stores is adopting which strategy? A) Diversification B) E-commerce expansion C) Vertical integration D) Financial restructuring
 Which of the following is an example of an ethical business practice?
A) Misleading customers in advertising
B) Paying employees fair wages and ensuring workplace safety
C) Selling defective products knowingly
D) Avoiding tax obligations illegally
 Why is a strong company culture important for business success?
A) It reduces the need for financial management
B) It attracts and retains talented employees
C) It eliminates the need for training programs
D) It increases bureaucracy within the organization
 Which factor is most important for a company’s long-term financial sustainability?
A) Increasing short-term profits at any cost
B) Managing cash flow and controlling expenses
C) Avoiding investments in new technology
D) Reducing product quality to cut costs lOMoAR cPSD| 59078336 1. B) Planning
2. B) Global economic fluctuations
3. A) Its advertising strategies 4. A) Access to capital 5. C) Marketing 6. C) Gross profit margin
7. C) Reduced need for cybersecurity
8. B) To show the structure of a company’s hierarchy 9. C) Vertical integration
10. C) Employee skills and productivity
11. B) To assess internal and external factors impacting business performance
12. C) Raw materials used in production 13. C) Penetration pricing
14. C) High motivation and creativity 15. A) Balance sheet
16. B) Managing employee relations and performance
17. C) A business expansion strategy
18. B) Enhancing the company’s brand and contributing to society
19. B) Higher productivity and lower turnover
20. B) Entrepreneurs purchase the rights to use an established brand
21. C) Interest rates set by banks
22. B) To predict future revenues and expenses
23. B) To reduce risk by expanding into new products or markets
24. B) Control over pricing due to lack of competition 25. B) Operations management
26. A) Total revenue and total costs
27. B) Cost leadership strategy
28. B) It helps companies make informed, data-driven decisions 29. C) Brand reputation
30. C) Access to specialized skills and lower costs
31. A) An increase in the price level of goods and services over time 32. C) Government regulations 33. B) Maximizing profit 34. C) Finance
35. B) Strengths, Weaknesses, Opportunities, and Threats
36. B) An advantage that allows a company to outperform its competitors
37. B) Minimize expenses while offering acceptable quality
38. A) Dividing a market into distinct groups of buyers
39. A) When total revenue equals total costs
40. B) Hiring, training, and developing employees
41. C) Customer feedback report
42. A) To persuade investors and guide business operations lOMoAR cPSD| 59078336
43. B) To influence and guide employees toward business goals 44. C) Monthly office rent
45. B) Improving customer experience and engagement
46. B) Improving product and service quality continuously 47. C) Income statement
48. B) Leaders make decisions without employee input
49. B) To understand market trends and improve competitiveness 50. C) Human Resources
51. C) Supplier dependency and potential disruptions
52. B) Improved customer retention and personalized interactions
53. B) Sell a product at a low price to attract customers for other purchases
54. C) Donating to environmental conservation programs
55. C) Unlimited personal liability for business debts
56. B) A company’s strong brand reputation
57. B) Sustainable product development
58. A) To take financial risks and innovate
59. C) Increasing current assets 60. B) E-commerce expansion
61. B) Paying employees fair wages and ensuring workplace safety
62. B) It attracts and retains talented employees
63. B) Managing cash flow and controlling expenses