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hit Submit Exam. If you need to exit before completing the exam, click Cancel Exam.
Questions 1 to 20: Select the best answer to each question. Note that a question and its answers may be split across a page
break, so be sure that you have seen the entire question and all the answers before choosing an answer.
1. Which of the following statements is true regarding the Employee Retirement Act of 1974 (ERISA)?
A. PBGC funding levels have remained robust and adequate over the years.
B. The Pension Benefit Guaranty Corporation (PBGC) is funded by regular employee contributions.
C. If a pension is to be fully vested after seven years of service, it must be 20 percent vested after three years.
D. Under ERISA, all employee pensions must be vested after 5 years of service.
2. In general, under many labor contracts, superseniority is granted to
A. employees considered “exceptional” or “specially skilled,” regardless of seniority.
B. nearly all union officers.
C. union officers crucial to the grievance process.
D. employees with more than 20 years of service.
3. In the bargaining process, union representatives place a special emphasis on advance notice of layoffs or
plant shutdowns, retraining, adoption of the attrition principle, and restrictions on subcontracting. What
major concern are these kinds of provisions usually related to?
A. Corporate mergers
B. Economic contraction marked by inflation
C. Offshoring jobs
D. Technological change
4. What kind of arrangement allows employers, given authority granted in writing by the employee, to
automatically deduct union dues from workers’ paychecks and forward those funds to the union?
A. Checkoff
B. Card check
C. Union security
D. Union dues
5. J. B. Jones, a machinist with 18 years of service, can expect to be eligible for severance pay for any of
the following reasons, except
A. permanent disability.
B. retirement before the employee is entitled to a pension.
C. refusing an alternative job offer by the employer.
D. a plant merger.
6. As reflected in negotiated labor contracts, as of 2008, there was all but universal agreement on the
following four specific paid holidays:
A. Christmas, Thanksgiving, Memorial Day, and Independence Day.
B. Christmas, Thanksgiving, Labor Day, and Martin Luther King Day.
C. Christmas, Thanksgiving, Labor Day, and Presidents Day.
D. Christmas, Thanksgiving, Labor Day, and Independence Day.
7. A majority of bargaining agreements specify pension funding by way of employee contributions to a 401
(k) account, or some other type of alternative tax-deferred savings plan. Under such plans, the most
common employer matching contribution is _______ percent.
A. 30
B. 20
C. 40
D. 50
8. In cases in which ability, not seniority, is considered the primary criterion for promotion, employee
performance evaluation must be based on all the following factors, except
A. supervisory competence rating.
B. worker performance records.
C. co-worker competence rating.
D. merit-rating plans.
9. Jane’s workplace is unionized, but she’s not a member of the union. She’s required to make regular
financial contributions to the union. You can reasonably assume that Jane’s workplace rules represent an
effort to compensate for the fact that a union is obligated to represent all members of a bargaining unit,
given that the government has provided no remedy for the _______ problem.
A. compensation
B. “just cause”
C. union shop
D. free rider
10. Which of the following statements is true of no-strike clauses?
A. Taft-Hartley is silent regarding union responsibility for a wildcat strike.
B. An absolute and unconditional surrender of the right to strike is unlawful.
C. Union leadership can’t be held accountable for unauthorized wildcat strikes.
D. Under one kind of no-strike clause, unions may strike under limited circumstances.
11. The negotiated labor contract between Union Local 215 and Cranberry & Barnes follows the pattern of
around two-thirds of labor contracts in specifying that an employee must be _______ years of age before
he or she can qualify for early retirement.
A. 50
B. 60
C. 55
D. 65
12. Experts have asserted that as many as _______ deaths occur each year as a direct result of
occupational disease.
A. 5,000
B. 60,000
C. 1 million
D. 25,000
13. Which of the following tasks is not a standard strategy for controlling health-care costs?
A. Performing cost analysis
B. Increasing copayments
C. Increasing deductible amounts
D. Making premium contributions
14. Because Judd Foster’s pension plan calls for fixed, periodic payments based on his years of service, his
pension plan is referred to as a _______ plan.
A. defined benefit
B. noncontributory benefit
C. contributory benefit
D. defined contribution
15. In the end, what was the main reason that the innovative management scheme for the Saturn division
ultimately failed?
A. New hires harbored no special enthusiasm for Saturn’s employee-participation policies.
B. The no-layoffs policy was abandoned.
C. The market for small cars all but collapsed.
D. The 50-hour week required for meeting demand adversely impacted employee morale.
16. In the context of implementing and administering OSHA, which recent president was put under intense
pressure respecting ergonomics and musculoskeletal workplace injuries?
A. Bill Clinton
B. Ronald Reagan
C. Richard Nixon
D. George H. W. Bush
17. Which of the following was the most significant impact of the Civil Rights Act of 1991?
A. Punitive damages could be awarded to victims of workplace discrimination.
B. Women must be paid the same wages as men for equivalent jobs.
C. With respect to job retention, seniority should outweigh disability.
D. Promotional decisions favoring women are appropriate when there has been a pattern of “sexual imbalance.”
18. Which of the following statements is true regarding seniority?
End of exam
A. Seniority isn’t a strong motivator when it comes to remaining with an employer.
B. Most recent employee-benefit programs have been geared almost exclusively to seniority.
C. Rewarding employees on the basis of ability is easier than rewarding them on the basis of seniority.
D. Merit, not seniority, has long been the main determinant of promotions in the U.S. Army.
19. Which of the following terms does not refer to management philosophies that call for day-to-day
decision-making by employees?
A. Employee involvement
B. Quality of work life
C. Worker participation
D. ESOP
20. As an arbitrator, your deliberations on a particular dispute will require you to consider all of the
following factors, except
A. proof based on adequate evidence.
B. any mitigating circumstances.
C. clear and unambiguous communication between employers and employees.
D. your subjective sense of fairness in a particular case.

500666RR – THE ORGANIZATIONAL ENVIRONMENT, PART 1
When you have completed your exam and reviewed your answers, click Submit Exam. Answers will not be recorded until you
hit Submit Exam. If you need to exit before completing the exam, click Cancel Exam.
Questions 1 to 20: Select the best answer to each question. Note that a question and its answers may be split across a page
break, so be sure that you have seen the entire question and all the answers before choosing an answer.
1. Broad guidelines used to assist lower-level managers to handle recurring problems are called
A. plans.
B. policies.
C. procedures.
D. scenarios.
2. The term for what people are doing when they put forth less effort while members of a group is
A. catatonia.
B. individualism.
C. social loafing.
D. groupthink.
3. Which of the following means that goods are shipped to the buyer and payment isn’t made until they’ve
been sold?
A. Bank collection time draft
B. Irrevocable letter of credit
C. Consignment
D. Cash in advance
4. Incoterms were developed by the International Chamber of Commerce to
A. clarify terms of sale.
B. translate international contracts.
C. promote trade missions.
D. facilitate legal price quotes between buyers and sellers.
5. _______ places increasing emphasis on recruiting and developing human resources.
A. Marketing
B. Accounting
C. Globalization
D. Localization
6. The Small Business Administration (SBA) provides _______ assistance.
A. market analysis and Web development
B. product-search and product-support
C. business development and financial
D. educational and placement
7. Which of the following is the least costly for a buyer of exported goods?
A. Bank collection time draft
B. Cash in advance
C. Irrevocable letter of credit
D. Open account
8. Manufacturers that sell products from other companies in foreign markets along with their own are
referred to as
A. resident buyers.
B. commission agents.
C. cooperative exporters.
D. export merchants.
9. A _______ strategy is often used where there’s a strong pressure to reduce costs and limited pressure to
adapt products for local markets.
A. transnational
B. home replication
C. multidomestic
D. global
10. When new exporters need to quote terms of sale that differ from those used in domestic markets, they
must be familiar with
A. the FCIB.
B. ETC.
C. Incoterms.
D. Dun & Bradstreet.
11. Independent businesses that handle import shipments for compensation are called
A. bonded warehouse managers.
B. foreign freight forwarders.
C. customhouse brokers.
D. commerce chambers.
12. Japanese anime became a popular media in the United States due to
A. an unusual amount of manga piracy.
B. American fans pulling anime in.
C. heavy advertising in the United States by Japanese comic companies.
D. Disney’s adoption of the style in its animated movies.
13. Organizational _______ is a process dealing with how a company should be organized for integration,
efficiency, and effectiveness.
A. competitiveness
B. design
C. division
D. functions
14. To effectively develop and implement an effective strategy, objectives should be
A. visible.
B. voluntary.
C. quantified.
D. eclectic.
15. The McDonald’s, Kentucky Fried Chicken, or Subway in your area is an example of a
A. joint venture.
B. franchise.
C. strategic alliance.
D. licensed product.
16. By the end of 2010 Kraft Foods had become America’s
A. the second-largest branded-food company headquartered in Brazil.
B. the largest U.S. employer overseas.
C. bigger than the Nestle Corporation
D. largest branded-food and beverage company with headquarters in North America.
17. The difference between tacit knowledge and explicit knowledge is that
A. explicit knowledge is codified in numbers only.
B. tacit knowledge is always expressed visually.
C. tacit knowledge is difficult to express in terms of pictures or words.
D. explicit knowledge is subjective while tacit knowledge is objective.
18. The most well-known model for change that involved unfreezing, moving, and refreezing was
developed by
A. Chad Henry.
B. John Kotter.
C. Kurt Lewin.
D. Adam Smith.
19. A partnership between competitors, customers, or suppliers is called a/an
A. strategic alliance.
B. growth triangle.
C. affiliation.
End of exam
D. merger.
20. One disadvantage of indirect exporting is that
A. large cash outlays are required.
B. licensing and red tape can delay completion of shipments.
C. it’s difficult to find the right agent for a firm’s product.
D. the firm gains little experience from transactions.

500668RR – THE ORGANIZATIONAL ENVIRONMENT, PART 2
When you have completed your exam and reviewed your answers, click Submit Exam. Answers will not be recorded until you
hit Submit Exam. If you need to exit before completing the exam, click Cancel Exam.
Questions 1 to 20: Select the best answer to each question. Note that a question and its answers may be split across a page
break, so be sure that you have seen the entire question and all the answers before choosing an answer.
1. When a company’s future cash flow could be affected by unanticipated movement in monetary exchange
rates, the company is experiencing
A. potential bankruptcy.
B. economic exposure.
C. currency exposure.
D. translation exposure.
2. Developing countries frequently see the use of used equipment in production as
A. evidence the company will produce inferior products.
B. evidence the company doesn’t want to take chances on untried technology.
C. assurance the equipment has done its job elsewhere.
D. a means to employ more people who will be hired to fix broken equipment.
3. Control of quality in the production of goods overseas is most easily accomplished when
A. components of the machinery are made in the United States.
B. production equipment overseas is similar to that used in the United States.
C. raw materials come from just one supplier.
D. workers have advanced language skills.
4. Hiring another company to handle what used to be handled in-house is called
A. subcontracting.
B. operations.
C. contracting.
D. outsourcing.
5. Global retailing requires that the company pay particular attention to _______ in distribution strategies.
A. use of animal skins in products
B. native company competition
C. localization
D. product loyalty
6. A group of decisions on strategy designed to satisfy customer needs in a particular market on what
products to sell and promote is called a/an
A. market assessment.
B. corporate objective.
C. advertising campaign.
D. marketing mix.
7. Applying a total systems approach to managing the flow of materials, information, finances, and services
in a value chain is called
A. supply chain management.
B. luxury brand development.
C. organizational realignment.
D. information and technology management.
8. Foreign shares held by a custodial U.S. bank in the issuer’s home market and traded in dollars on the
U.S. exchange are called
A. American depository receipts.
B. international finance operators.
C. foreign national stipends.
D. hedge funds.
9. Which of the following is not a part of the total product?
A. Integration
B. Package
C. Accessories
D. Warranty
10. The Sarbanes-Oxley Act was passed by Congress in response to
A. an international demand for antitrust protection.
B. the Enron scandal.
C. a need to protect U.S. citizens from foreign laws.
D. product liability lawsuits.
11. The attitudes of governments toward transfer pricing is
A. indifference.
B. suspicion.
C. encouragement.
D. academic interest.
12. Which of the following adds 3–5 percent to the quoted price of a product, due to the costs of
importing?
A. B2B costs
B. Customhouse broker’s fees
C. Export duties
D. Invoice charges
13. Reasons for global standardization of manufacturing systems include
A. greater market adjustments.
B. producing significant cost savings.
C. adding attractive complexities to draw new customers.
D. increased nonstandardization of data among plants.
14. Recruiting salespeople overseas can be difficult because
A. foreign unfamiliarity with the product.
B. the fear of outsourcing.
C. of a society’s stigma associated with selling.
D. language differences.
15. Including such items as maintenance, repair, operating supplies, office equipment, and other services
and supplies, indirect procurement can account for as much as _______ percent of the total purchasing
expenditures in companies.
A. 25
B. 70
C. 50
D. 80
16. The type of debt nearly always repaid in full by the borrower, with a repayment rate of 97 percent, is
_______ loans.
A. micro-
B. company-to-company
C. parallel
D. federally guaranteed
17. A _______ tax is paid not by the person whose labor generates the income but by the business that
makes the payment for the labor.
A. withholding
B. excise
C. swap
D. money market
18. _______ are responsible for a shift in power from manufacturers to retailers.
A. Internet advertisers
B. Private brands
C. Public brands
D. Foreign environmental forces
19. Providing rapid service without a distribution structure in place is called
End of exam
A. aibo.
B. disintermediation.
C. floating distribution.
D. indirect outletting.
20. When companies report on environmental and social, as well as financial results, it’s called
A. global edge.
B. triple bottom line.
C. convergence.
D. parallel management.