AVSC 1050 Final Exam
It is a good idea to learn about the industry in which you would like to start a small business. A good rule of thumb is to have_____years' experience in a comparable business first.
3
The average speed of broadband in the United States is how many megabits per second?
3 megabits
Employee fraud causes_____percent of all business failures.
30
Small businesses account for more than_____percent of the United States' gross domestic product.
50%
Approximately what percentage of new jobs generated each year in the United States are created by small businesses?
60-80%
How many workers in the US find their first job in a small business?
80%
Why is accounting so important to businesses?
Accounting provides management and other interested parties the financial information they need to make good decisions about its operation
What was the most controversial policy enforced under the Equal Employment Opportunity Act (EEOC)?
Affirmative action.
Who brings buyers and sellers together but take no title to the goods?
Agents/brokers
What type of insurance would you want if you became unable to work?
Disability
Who solicits orders from retailers and other wholesalers then has the merchandise shipped directly to a buyer?
Drop shippers
What is an ERM?
Enterprise risk management
A developing country wishes to create wealth. Which of the following actions is the best thing the government of this country can do to create this wealth?
Increase private ownership of businesses
What type of shipping involves using multiple modes of transportation?
Intermodal Shipping
Three important questions you can ask yourself to gauge ethical behavior include which of the following? Select three.
Is it balanced, is my actions legal, how will it make me feel about myself.
How does a lockout impact union workers?
It closes the business, preventing workers from being able to receive any pay.
Why is empowerment important in business management?
It enables frontline employees to quickly respond to customers' needs.
Why is the law of large numbers important to insurance companies?
It helps predict the number of losses
Airlines R US conducts a survey to see if passengers prefer chicken over pork in their free in-flight meal on transatlantic flights. The results of the survey will be reported to the board of directors. How is Airlines R Us trying to address the needs of its stakeholders?
It is trying to improve the customer's experience by providing more enticing options
These funds are usually needed anywhere from 2 to 10 years
Long-term financing
Which of the following are examples of loss-prevention programs?
Smoke detectors, Equipment Maintenance, Health education, Video cameras
What is one potential benefit of making efforts to protect the environment?
Some customers prefer to do business with companies that care about the environment
What is the difference between the two types of risk?
Speculative risk involves the possibility of profit
What is an intrinsic reward? Select two.
The belief that your work makes a significant contribution to the organization or to society & the personal satisfaction you fell when you perform well and complete goals.
What is employee selection?
The process of gathering information and deciding who should be hired to serve the best interests of the individual and the organization.
What does operational planning involve?
setting of work standards and schedules
Shopping goods and services include which of the following?
shoes
What can be considered both an advantage and a disadvantage of choosing to operate as a corporation?
size
Why is it important to learn about starting a small business?
small business management is very similar to management in general
A business owner pays taxes on her business income by filing her personal income taxes. She is the only owner. What type of business entity must she be using?
sole proprietorship
What business entity can be dissolved by the owner or owners simply ceasing operations?
sole proprietorship
President John F. Kennedy proposed four basic consumer rights. What are those rights?
the right to choose, safety, be informed, and be heard
Which element of the business environment helps ensure currency between nations is tradable?
economic and legal environment
Which of the following is characteristic of compliance-based ethics codes?
encouragement of ethical behavior through increased control
Business' overall goal during the Customer Relationship Era of marketing is which of the following?
enhancing long-term customer loyalty
True or false: if an activity is legal, it will also be ethical.
false
Which of the following factors are characteristic of business-to-business marketing but NOT consumer marketing? Select all that apply.
geographically-concentrated markets, customers are relatively large, relatively rational rather than emotional customers
What are some advantages of a matrix-style organization? Select all that apply.
gives managers flexibility, encourages inter organizational cooperation
In recent news an Iceland volcano spewed ash that halted European air travel. This event is primarily related to which element of the airline industry's business environment?
global business environment
For a company to _____ they pay claims from their operating budget.
go bare
If a company "goes bare" how do they make payments on claims?
go bare
An enterprise zone is designed to promote business growth in what way?
governments encourage business growth in an area by offering tax incentives
What pricing strategy uses a lot of sales to attract customers?
high-low
Which of the following are disadvantages of a narrow span of control? Select all that apply.
higher costs, delayed decision making
Why is the Uniform Commercial Code important to the success of businesses in the United States?
it improves confidence by regulating business agreements
Why is a strong business plan important when beginning a business venture?
it is mandatory for talking with bankers and other investors
Regulation FD makes what provision regarding a company's financial information?
it must be shared with everyone at the same time--not just to a select group of people
Sea-freight emissions are_____of those associated with airplanes.
less than half
Self-employment taxes must be paid on the profits of which type of business?
limited liability companies
Although requirements vary by state, you are usually required to file articles of organization when starting what entity?
limited liability company
An individual becomes a partner by investing in a small business. He is liable up to the amount of his investment. This individual must be a
limited partner
Which person below is an example of staff personnel?
market researcher
A general manager would be considered what level of management?
middle management
Which of the following changes below helped instigate the Selling Era of marketing?
businesses began to use modern mass-production techniques
Which of the following is one of the MOST COMMON reasons individuals decide to start a business?
challenge themselves
Why do companies utilize storage and distribution warehouses?
Buyers want goods delivered quickly
How does a performance appraisal help achieve optimum results?
By evaluating the performances of employees against top performance standards, performance appraisals help subordinates understand where improvement can be made while also establishing a means whereby top performers can be rewarded.
Through which of the following entities will owners have their income taxed twice?
C corporations
What are major investments in either tangible long-term assets, or intangible assets?
Capital expenditures
Who serves mostly smaller retailers with a limited assortment of products?
Cash-and-carry wholesalers
What is the rate of return a company must earn in order to meet the demands of its lenders and the expectations of its equity holders?
Cost of capital
Which of the following is the best example of a Web 2.0 technology?
What aspect of electronic retail often causes consumers to give up and go back to brick-and-mortar stores?
Failure to deliver goods on time
Managers have found that it is best to micro-manage nanobots.
False
Generally accepted accounting principles are defined by the
Financial Accounting Standards Board (FASB)
Which of the following constitutes insourcing?
Foreign companies that move production facilities to the United States
What is the main difference between goals and objectives?
Goals describe long-term accomplishments while objectives describe short-term accomplishments
Losses due to sickness or accidents would be covered by what type of insurance?
Health
What describes that which a carefully managed and competitive compensation-and-benefit program can accomplish? Select all that apply.
Maintaining a competitive position in the marketplace by keeping costs low through high productivity from a satisfied workforce, Keeping valued employees from going to competitors or starting competing firms, Attracting the kinds of people the organization needs, and in sufficient numbers, Providing employees with some sense of financial security through fringe benefits such as insurance and retirement benefits, Providing employees with the incentive to work efficiently and productively.
Which of the following is NOT an identified method for increasing employee motivation?
Negative reinforcement: punishment of unsuccessful performance
Rent, salaries, supplies, utilities and insurance are considered
Operating Expenses
What are contingent workers?
Part-time workers (anyone who works 1-34 hours per week), temporary workers, seasonal workers, independent contractors, interns, and co-op students.
What term is used to describe doing whatever is necessary to transfer ownership from one party to another?
Possession utility
What is a written contract with a promise to pay a supplier a specific sum of money at a definite time?
Promissory note
What are the four characteristics of management information?
Relevance, Completeness, Timeliness, Quality
What prevents an insured person from collecting more than the actual loss?
Rule of Indemnity
What term is used to describe adding value by providing fast, friendly service during and after the sale?
Service utility
How have managers extended both Maslow's and Herzberg's theories on motivation?
Through job enrichment: assigning work so that individuals can complete an identifiable task from beginning to end and are held responsible for successful achievement.
What was the Equal Employment Opportunity Act (EEOA) of 1972 an amendment to?
Title VII of the Civil Rights Act of 1964.
Why would a brick-and-mortar store starting a website need to alter its distribution practices?
To accommodate the delivery of goods both large and small to internet-savvy shoppers
It's legal for U.S. companies to scan employee e-mail regularly.
True
The best way to avoid a phishing scam is to never access a website through a link in an e-mail message.
True
SCORE is a valuable resource for would-be entrepreneurs. What is SCORE?
a volunteer association that provides education and counsel for would-be entrepreneurs at the cost of only expenses
An example of a business obtaining primary data includes which of the following?
a car manufacturer obtains surveys regarding a new hybrid vehicle
What is a data warehouse?
a database that stores data on a single subject over a specific period of time
Which of the following items are advantages of operating a general partnership? Select all that apply.
a longer lifespan, shared knowledge and skills
What is a factor of production?
a resource used to create wealth
What is data mining?
a technique for looking for hidden patterns and previously unknown relationships among the data
Given the situations below, which person would be considered a whistleblower?
a worker reports to the supervisor that a co-worker has been using company property for personal gain
What is the difference between an angel investor and a venture capitalist?
an angel investor invests their money at a price often less than bank rates while a venture capitalist invests money at a higher cost
An integrity-based code of ethics promotes ethical behavior through what?
an environment supportive of such behavior
What is infoglut?
an overabundance of data
Which of the following are characteristics of a flat organizational structure? Select all that apply.
broad span of control, less customer/manager interaction
Before setting a price for your product, you should do what in the marketing process?
conduct concept testing
The statement of cash flows is used to
determine the firm's net cash position
What is corporate responsibility?
dimension of social responsibility that addresses concerns for minorities
What is corporate policy?
dimension of social responsibility that refers to the position a firm takes on social and political issues
What are some of the advantages of operating a limited liability company? Select all that apply.
operating flexibility, owners can choose to be taxes as a partnership or corporation
Which management function focuses on structures that seek to please the customer at a profit?
organizing
What pricing strategy prices new products low?
penetration
Which of the following are considered services?
piano lessons, health care, internet, automobile insurance
PMI is a technique often used when...
problem solving
What are the four factors of the marketing mix?
product, price, place, promotion
A market segmented according to individuals' lifestyles would be divided using what type of segmentation?
psychographic
One of the most revolutionary effects computers and the Internet has had on the workplace is?
telecommuting
Define productivity.
the amount of output generated given an amount of input
What is finance?
the function in a business that acquires funds for the firm and manages them within the firm
What is the purpose of Financial Accounting?
to provide information and analysis to people primarily outside the organization
True or false: strategic planning is concerned with goals rather than objectives.
true
A general partner and a sole proprietor share a common disadvantage. What is this disadvantage?
unlimited liability