bus300 final
Sometimes the only section of a business plan that readers will consider is the _____.
"Executive Summary"
The question "What is the outlook for the industry?" is taken up in the _____ section of the business plan.
"Industry Analysis"
_____ is a favorite catch phrase among Burger King planners looking for promising new locations.
"Through the light and to the right"
_____ review and recommend prospective investments to company managers.
Finance professionals
The _____ prohibit(s) the distribution of bribes and other favors among American businesspeople conducing business with foreign officials and businesspeople.
Foreign Corrupt Practices Act
To increase the supply of money available for mortgage loans and new home purchases _____ bought mortgages already written by lenders, pooled them, and sold them as mortgage-backed securities to investors on the open market.
Freddie Mac
The two most important institutions that monitor international trade policies are _____.
GATT (General Agreement on Tariffs and Trade) and WTO (World Trade Organization)
What is the best way to get a copy of your credit report?
Go online and request a free copy
_____ is often cited as a factor in the explosion of the space shuttle Challenger in January 1986.
Groupthink
If the demand for labor is going to outstrip the supply, a(n) _____ manager may hire more workers and encourage current workers to put in extra hours.
HR
A very important consideration in picking a legal form of business is
How much legal liability you are willing to accept
_____ is a set of international quality standards established by the International Organization for Standardization.
ISO 9000
It is very common to use visual aids in a business presentation. Which of the following is not a tip for using PowerPoints?
Include about 8 bullet items per slide.
The government tracks the money supply by calculating _____, which includes the most liquid forms of money.
M-1
When Toyota offers a premium car under the brand name Lexus, it is using which of the following branding approaches?
Multibranding approach
When you say to yourself, "I know I lied to make the deal, but it'll bring in a lot of business and pay a lot of bills," which of the four common rationalizations for misconduct are you using?
My action is in everyone's best interest."
Which powerful trading bloc came about because of an agreement between the United States, Canada and Mexico?
NAFTA (North American Free Trade Association)
What is the bottom line of a cash flow statement?
Net cash flow
What is the purpose of disability insurance?
Pays an income to you when you are unable to work because of illness for an extended period of time
An example of a "new-to-the-company" product sold by Just Born is _____.
Peers marshmallow Easter decorating kits
_____ is the process whereby a firm gets its products to customers.
Physical distribution
When a Domino's delivery person brings a pepperoni pizza to your dorm room, this is an example of _____.
Place utility
Which of the following is the highest rate?
Prime
The Customized Communication Print Shop plans to specialize in customized announcements and newsletters and personalized stationary. Which of the following layouts would be best for this business?
Process
_____ and decisiveness are the best responses to unethical behavior.
Promptness
_____ is the selling price per unit minus the variable cost per unit.
Contribution margin per unit
When the decision of a court involves an interpretation of law, it may establish _____ that must be used by lower courts in deciding future cases.
a precedent
Jan is good at providing information when someone else needs it and also asking for it when she needs it. Jan would be considered _____.
a task facilitator
To decide what new products to come out with or what old products to improve, businesses rely on:
a team of individuals from inside the company that reviews and evaluates the potential ideas.
It has been found that an audience can absorb _____ points in any given presentation.
about 4 to 6
The purchase of one company by another with no new company being formed is called a(n) _____.
acquisition
Manufacturing managers focus on scheduling the _____ needed to transform raw materials into finished goods.
activities
Most of the contaminants in our oceans, rivers, and lakes come from _____.
agricultural fertilizers
Your _____ schedule is the schedule by which you'll reduce the balance of your debt.
amortization
All of the following are conducive to economic growth except _____.
an unfavorable balance of trade and payments
HR managers organize information about a given job by performing a job _____.
analysis
The management function of an orchestra leader is best characterized as _____.
directing
The _____ rate is the rate of interest that the Fed charges member banks.
discount
Once you've forecasted the demand for a product, you can calculate the _____ requirements of your production facility.
capacity
Its debt-to-equity ratio examines the risk entailed by a company's _____.
capital structure
Monetary or liquid assets include all of the following except _____.
cars
Rather than record sales and purchases made on credit, your statement of _____ tells you where your cash came from and where it went.
cash flows
A survey conducted by the National Science Foundation found that those with degrees in __________had the highest expected earnings and those with degrees in __________had the lowest.
chemical engineering / special education
In most large organizations, the information system is operated by a senior management team, including a(n) _____ who oversees information and telecommunications systems.
chief information officer
An express warranty is created when a seller _____.
claims that the product meets certain standards of quality
So-called _____ systems are networks that include a number of client machines and a server.
client-server
Confusing and error-riddled documents (including e-mails) make for poor messages and reflect poor _____ skills.
communication
The principle of _____ explains why France can produce white wine at a lower opportunity cost than the neighboring country of Germany.
comparative advantage
With _____, the interest earned on your savings is added to the money in your savings account, and the new total (principle plus interest) earns more interest.
compound interest
Lucretia finds herself caught between loyalty to her employer on the one hand and loyalty to a friend who works in her office on the other. The potential ethical issue that she's facing is best characterized as a matter of _____.
conflict of loyalty
Coca Cola's stated _____, which promote leadership, collaboration, integrity, accountability, passion, diversity and quality, tell employees exactly what behaviors are acceptable.
core values
In balancing its responsibilities toward all stakeholders when making legal, economic, ethical, and social decisions, Condare Upholstery Supply Inc. takes an approach to organizational activities called _____.
corporate social responsibility
When you make your first purchase on Amazon.com, you've enlisted a lifelong acquisitions advisor-someone who will constantly suggest other things that you might like to buy. Amazon.com is applying the concept of _____.
customer-relationship management
In the early 1990s, many workers at Sears automotive service centers became suspicious about policies governing interactions with _____.
customers
Because sheer size makes it difficult for managers to oversee operations and serve customers, most large companies are structured as _____ organizations.
divisional
If you're conducting business over the Internet, you're engaged in _____.
e-commerce
According to experts, individual financial planning should begin in your _____.
early 20's
Let's say that you bought a TV on eBay and paid for it electronically. To process your transaction and transmit all of your purchasing documents, the manufacturer might use an _____ system.
electronic data interchange
The financial planning process consists of three steps:
evaluate your current financial status, set financial goals, develop and use a budget.
In reality, _____ owns the World Wide Web.
everyone
In the United States, the legal system _____ to respond to changes in social norms and commercial activities.
evolves
To get some idea of the total market for products like the one you want to launch, you could begin by ____
examining pertinent industry research
The principle that a reward will motivate only if it's valued by the employee is key to the _____ theory of motivation.
expectancy
Franchises are often quite _____.
expensive
Managers have a(n) _____ responsibility to owners to safeguard a company's assets and handle its funds in a trustworthy manner.
fiduciary
A(n) _____ is a software program that controls access to a company's intranet.
firewall
The practice of installing _____ to keep fires that start in one part of a building from getting into another has a direct application in information technology.
firewalls
Those costs that don't vary with quantity of goods sold are called ______.
fixed
Newly established Lyons Supermarkets, which shows only a few layers of management on its organization chart, has a _____ organizational structure.
flat
A computer-integrated manufacturing (CIM) system is a common element in a(an) _____ system, which makes it possible to change equipment setups by reprogramming computer-controlled machines.
flexible manufacturing
McDonald's sells tacos for breakfast in Arizona because its marketers have identified a _____ segment.
geographic
The main purpose of a résumé is to _____.
get you a job interview
If a foreign currency _____ relative to the U.S. dollar, Americans must pay more for goods and services bought from sellers in the country that issues the currency.
goes up
All of the following are daily activities involved in the process of materials management except _____.
goods production
In the United States, as in all complex societies, we've entrusted the responsibility for adopting and enforcing legal rules and principles to _____.
government
Coordinated by a board of _____, the Federal Reserve System consists of 12 districts, each with a member-owned Federal Reserve Bank.
governors
If a footwear maker latest jogging shoe is considered a "purple cow," the line has _____.
great potential
In a _____ culture, the numerous interlocking personal and family connections that hold people together have an effect on almost all interactions.
high-context
In compiling your credit score, the credit bureaus considers all of the following except_____.
income
The percentage change in a price index is also known as the _____ rate.
inflation
A firm's _____ system consists of the combination of technologies, procedures, and people who collect and distribute the information needed to make decisions and coordinate and control companywide activities.
information system
Government intervenes in marketplace transactions because:
is the best means of correcting market failure.
The main problem with an adjustable rate mortgage (ARM) is that:
it makes planning and budgeting difficult because you don't know when the rate will change.
When a company has an opening, the best source for potential applicants is _____.
its own labor force
To convince consumers that it's safe to buy things over the Internet, businesses must _____.
keep credit-card numbers safe protect passwords protect personal information do all of these
Manufacturing is primarily the domain of _____ businesses.
large
Polaroid is a classic example of a firm that enjoyed a patent-based _____ for years in instant-film technology.
legal monopoly
The debt owed by a business to an outside individual or organization is called its _____.
liability
The _____ in a limited partnership has(have) limited involvement in the business and suffer loss only to the extent of their business investments.
limited partners
A classified balance sheet lists assets in order of _____.
liquidity
About 80% of top executives say that learning to _____ is the most important skill in getting things done in the workplace.
listen
Over time, your company hopes to develop brand ____ among customers who prefer or even insist upon its product.
loyalty
Businesses, such as print or sign shops, that produce low-volume, high-variety goods according to customer specifications use a process called _____.
make-to-order
Unlike Burger King, McDonald's prefers the _____ approach to making sandwiches.
make-to-stock
Intentional torts against economic interests include all of the following except _____.
making a false statement of material fact about a business product enticing someone to breach a valid contract going into business for the sole purpose of taking business from another concern all of the above are intentional torts against economic interests
Standardized products that have come off assembly lines are produced by a process known as _____
mass production
Laws ensuring such rights as freedom of speech and religion are meant to _____.
maximize individual freedom
A _____ is a company that makes a profit by selling goods.
merchandiser
United Airlines and Continental Airlines were an example of a(n) _____.
merger
Over the past 50 years, more _____ entered the workforce than previously.
minorities
The _____ of Contemporary Marketing's business plan affirms what the organization is generally committed to doing.
mission statement
In court, the _____ is the party filing the complaint, while the _____ is the party charged in the complaint.
plaintiff / defendant
Generally speaking, economic systems can be divided into _____ and _____ systems.
planned / free market
A _____ is a physical model of a product.
prototype
Bob and Megan have been placed on a team at work to find ways to improve product quality and reduce waste. What type of team are they likely to be on?
problem-solving team
Workers or departments that perform similar tasks may be grouped together in a _____ layout.
process layout
Mary and Diane drafted a partnership agreement for their apparel business. Which element below should not have been included?
projected financial statements
If you buy something with the intent to pay later rather than in cash, the seller will set up an account _____.
receivable
A small business that buys goods from other firms and sells them to consumers is known as a _____.
retailer
The fact that people are willing to save money for future purposes describes which function of money _____.
store of value
When she focuses on the flow that begins with the purchase of raw materials and culminates in the sale of a product to end users, Bridgett Hammerschmidt is managing her company's _____.
supply chain
According to Johnson & Johnson CEO James Burke, his only regret in the wake of the Tylenol tampering tragedy was the fact that the:
tamperer was never caught.
Which of the following venture is riskiest?
Starting a business to sell the first motorized surfboard.
_____ is a law enacted by legislative branches of government, such as the U.S. Congress.
Statutory law
Which of the following is true about self-managing teams?
Team members control the activities needed to achieve team goals.
Which of the following is a rationalization for misconduct in the workplace?
Telling yourself that you acted in everyone's best interests
What is your primary goal during a job interview?
To get a job offer
_____ is the most productive way to conduct surveys.
Using the Internet
A _____ is a group of people with complementary skills who can work together on a regular basis to accomplish a common goal.
team
Teams have key characteristics which include:
team members are individually accountable for achieving team goals.
When you're hired for your first job, it's usually because of your _____ skills.
technical
Every team requires some mixture of the following three skills:
technical/decision making and problem solving/interpersonal.
A personal balance sheet lists the value of what you own, the amounts you owe, and the difference between the two, which is called _____.
total net worth
According to J.C. Penney's "Statement of Business Ethics" all of the following are acceptable except:
trips of several days.
The major problem with general partnerships is:
unlimited liability
Quite simply, data are _____ facts.
unprocessed
If your bank does not ask you to put up collateral, you're getting a(n)_____.
unsecured loan
Typically, all of the following information is included on a packaging label except _____.
what color the product is
The _____ is a government agency that regulates banks and insures deposits in member banks up to $250,000.
FDIC
Your _____ shows the amount of cash that you have coming in and going out.
statement of cash flows
The free market system was espoused by _____ in his book The Wealth of Nations.
Adam smith
Which of the following leadership styles typifies an approach to directing and motivating people?
All of these Autocratic Democratic Laissez-faire
_____ software performs a specific task, such as word processing or spreadsheet creation.
Applications
Procter & Gamble uses a measure of worker safety called _____.
total incident rate per employee
Social media marketing presents companies with a number of challenges including:
Being overwhelmed by the large volume of customer data available on social sites.
_____ refers to the maximum number of goods that a facility can produce over a given period of time under normal working conditions.
Capacity
_____ deposits are checking accounts that pay given sums to "payees" when they're ordered.
Demand
At _____, overall objectives include not only making all visitors feel as if they're special in a special place, but ensuring that employees' appearance reflects a special image.
Disney
Mike will often talk too much and interrupt others. He is guilty of which blocking strategy?
Dominating
Which of the following is not a reason that prevents some people from starting a business?
Don't want to sacrifice a steady income
_____, which supply relevant, accurate, timely information in a format that will aid them in making decisions, are tailored to the needs of individual managers.
Reports
_____ is the principle by which government legitimately exercises its authority only in accordance with publicly declared laws that are adopted and enforced according to established procedure.
Rule of law
Under the Small Business Administration's _____ program, a businessperson needing advice is matched with a team of retired executives who work on a volunteer basis.
SCORE
By making Christmas decorations available the day after Thanksgiving, Holly's Holiday Shop is offering customers what kind of utility?
Time utility
Taking an online course gives you which time of utility?
Time utility
Most organizations do whatever they can to retain qualified employees. Their efforts include all of the following except:
being unclear about what is expected from employees.
The shareholders elect a ___________, a group of people who are legally responsible for governing the corporation.
board of directors
Team leaders are more effective when they can _____.
both a and c gain their trust influence team members
The management of the process that transforms resources into products is known as _____.
operations management
According to the principle of _____, a country that decides to specialize in the production of a particular product must sacrifice the production of another product.
opportunity cost
Its job _____ policy allows Superior Products' employees to move from one job to another on a systematic basis.
rotation
Of the following, _____ is the best example of a company's proprietary information.
sales volume
A _____ chart is an easy-to-use graphical tool that helps operations managers determine the status of projects.
schedules
A(n) _____ is the most commonly used encryption system for transmitting data over the Internet.
secure sockets layer
The euro, the common currency of the European Union, facilitates trade and finance by _____.
simplifying exchange rate differences
A manual worker in the United States receives approximately _____ times more pay per hour than a manual worker in India.
six
The majority of Americans entered the business world by working for _____, which are constantly creating jobs and providing opportunities for a vast number of workers.
small businesses
Under _____ , the plaintiff doesn't have to prove negligence on the manufacturer's part, nor does it matter how much care was taken by the manufacturer to prevent defects.
the doctrine of strict liability in tort
The _____ section of the business plan is designed to convince the reader that the company will be operated by well-qualified and experienced people.
"Management Plan"
The _____ section of the business plan describes the purpose of the proposed business-its reason for existence.
"Mission Statement"
If a customer pays $40 for a shirt that's been marked up 100 percent over cost, what price did the retailer pay for it?
$20
Let's say you want to open a shoe store that will specialize in high-end shoes. But before you do, you want to determine how many pairs of shoes you have sell in the first year to break even (have no profit or loss). You also want to know what your profit will be in year two. You have been busy estimating some revenues and costs. Here is what you have so far: Cost (to you) per pair of shoes $80 Sales commission per pair of shoes $10 Salaries $420,000 Rent $120,000 Cost to you per pair of shoes $80 Advertising $20,000 Commission paid per pair of shoes $10 Insurance $16,000 Miscellaneous fixed costs $24,000 Selling price per pair of shoes $160 How much are total fixed costs?
$600,000
A new business owner can expect to work _____ hours a week on average.
60
We call it "full employment" when _____ percent of those who want to work are employed.
95%
_____ allocates the goods and services produced by government-run industries and tries to ensure that the resulting wealth is distributed equally.
Central planning
When companies give employees time off to do volunteer work, which stakeholders are they being responsible to?
Communities
Since 1868, U.S. courts have used the _____of the Fourteenth Amendment to the Constitution to check a range of potentially discriminatory and unfair actions by governments at every level.
Equal Protection Clause
Which of the following can cost a company developing a new product a great deal of money?
Failure to be first to market with a promising new product.
Question 8 1 / 1 pts Jerry Foster is a sole proprietorship who owns a canoe renting business. Jerry's employee, Terry Gibbs, greets customers at the company's office, loads the customers and their rented canoes onto a van, provides them with safety instructions and drives them upstream. Once unloaded the canoers are on their own to float back to the company's office to check in. Although there have been minor accidents, no one has drowned in the nine years the business has been in operation. Jerry plans to add kayaks and rubber rafts next year. The scenery is beautiful and each day people see wild animals come down to the water. What benefit will Jerry enjoy over the years as the sole owner of his canoe renting company?
He'll be able to make all of the management decisions. He'll keep all of the business profits. He'll avoid paying special taxes. all of the above
Rock City is a community in the Midwest with a population of 23,000 people. Three dental clinics serve the city and the surrounding area. Perfect Smile is owned and operated by the newest dentist in town, Dr. Martin Harris, who employs one dental assistant and a secretary/receptionist. Drs. Joan Bennett and Joseph Young jointly operate Teeth for Life and provide a few more services than Dr. Harris. Rock City Dental Clinic has been in business for 58 years, employs 38 people, and offers a range of services that include dentures, orthodontics, and minor oral surgery. In deciding which legal form of business ownership to choose, these professionals must ask themselves all of the following questions except _____.
How much control do you want? Do you want to share profits with others? What are your financing needs? All of these are critical questions to ask.
Answering "yes" to which statement might indicate personal financial problems?
I almost never spend money on stuff I don't need, but I tend to keep a balance on my credit cards.
_____ consists of data that have been processed or turned into some useful form.
Information
_____ trading is the illegal buying or selling of securities by a firm's officers or directors or anyone else taking advantage of valuable information about a company before it's made public.
Insider
______ sell protection against losses incurred by illness, disability, death, and property damage.
Insurance companies
Among free market theorists, the principle of laissez-faire means _____.
Leaving things alone
_____ would not be included in a demographic segmentation of consumers.
Lifestyle preferences
Which of the following factors is not important to team effectiveness?
Members have known each other for a long time
A common approach to environmental analysis, called _____ analysis, entails matching a company's strengths with its available opportunities.
SWOT
In 2002, a federal law known as the _____ Act was created to protect whistle-blowers.
Sarbanes-Oxley
The _____ Act severely restricts the ability of accountants to serve the same clients as both auditors and consultants.
Sarbanes-Oxley
Jose is starting a Mexican restaurant. He plans to borrow money to buy a building to house the restaurant. Which of the following will Jose most likely use to finance the building?
Secured long-term bank loan
Which of the following is not a way in which the Internet is used by purchasing managers?
Sell the company's goods
Scalpers sell tickets for such events as the World Series and the Super bowl for prices many times the amount printed on the tickets. This situation is an example of which of the following conditions?
Shortage causing an increase in market price
Caesar's information system can be used to access whether the placement of slot machines affects profitability. Who would use this information?
Slot machine manager
Which of the following statements regarding the Uniform Commercial Code (UCC) is true?
The UCC is designed to make commercial transactions consistent in all fifty states.
Which of the following statements is not true about nonverbal communication?
While nonverbal cues are important, it's what you say that always matters most.
Which of the following is an advantage of buying an existing business?
You can identify suppliers.
If you purchase a business, it is lawful for the previous owner to set up a competing business that draws its former and your current customers away from you _____.
any time he or she wants
A good example of _____ is the process whereby cars are built on moving assembly lines made of skillets large enough to hold workers who move along with the cars while they're being assembled.
automation
An employee's actions fall within the scope of his employment if _____.
both a and b they are performed in order to fulfill contractual duties owed to his employer the employer is in some control, directly or indirectly, over the employee's actions
We read in business publications that net income is often called the _____.
bottom line
Using ________ analysis allows you to determine the level of sales that you must reach in order to avoid losing money.
breakeven
A(n) _____ is a preliminary financial plan for a given time period, generally a year.
budget
A _____ verifies the identity of a computer site and sends you a digital certificate of authenticity stating that it trusts that site.
certificate authority
A _____ software system determines the steps needed to produce components and instructs the machines that do the work.
computer-aided-manufacturing (CIM)
Because its customers want its products for personal use and household consumption, Sunshine Cosmetics sells in a(n) _____ market.
consumer
A computer-aided design (CAD) system allowed PowerSki's CEO, Bob Montgomery, to do all of the following except:
control production processes and equipment.
Tim is the manager of a shoe manufacturing company that staffs 100 workers. The company receives an emergency bulk order for 3,000 pairs of shoes to be delivered in 3 days. Tim encourages the workers to finish the assignment on time by providing them an extra day off and overtime wages. Which of the following management functions does Tim perform to motivate the employees to complete the order on time?
controlling
When Sam noted that the amount of electricity used in the factory was 20 percent higher than expected for the year, he was involved in _____.
controlling
A _____ is entirely separate from the parties who own it.
corporation
ock City is a community in the Midwest with a population of 23,000 people. Three dental clinics serve the city and the surrounding area. Perfect Smile is owned and operated by the newest dentist in town, Dr. Martin Harris, who employs one dental assistant and a secretary/receptionist. Drs. Joan Bennett and Joseph Young jointly operate Teeth for Life and provide a few more services than Dr. Harris. Rock City Dental Clinic has been in business for 58 years, employs 38 people, and offers a range of services that include dentures, orthodontics, and minor oral surgery. With enough employees and annual sales to form a company to limit the liabilities of its owners, Rock City Dental Clinic could opt to organize as a _____.
corporation
Businesses that sell services rather than merchandise don't have a line for _____ on their statements.
cost of goods sold
The most important step in the process of starting a business is _____
creating a business plan
To bank at a(n) _____, you must be linked to a particular group.
credit union
When nations continue to experience large and ever-growing trade deficits:
creditor nations will eventually stop taking IOUs and trade will cease.
In _____, a crime such as robbery or homicide has occurred and a person found guilty of committing the crime can be fined or sent to jail.
criminal law
The team that designed and brought the RAZR phone to market would be called a _____ team.
cross-functional
Because the small Mideastern country of Asiana has experienced an unfavorable balance of payments for the past 22 years, the stability of its _____ may be in jeopardy.
currency
By _____ its customer-based data warehouse, a firm can discover previously unknown relationships between customers in general and certain groups of customers.
data-mining
In the _____ stage of the product life cycle, price competition becomes more intense and profits harder to come by.
decline
The United States is currently experiencing an international trade _____.
deficit
If you stood outside an NBA championship game and sold your ticket for double the original price, you'd be engaged in _____ pricing.
demand-based
Labor-union _____ has steadily _____ since the mid-1950s.
density / declined
Because its cost is spread over its useful life, a long-term asset that will be used for several years-for example, a vehicle-appears on the balance sheet as a(n) _____ expense.
depreciation
To identify and turn away undesirable visitors, the hotel-casino industry uses _____ systems, which rely on face-recognition technology.
digital hidden camera
The more ____ an organization becomes, the more likely it will be to encounter _____.
divisionalized / functional barriers
A corporation pays taxes on its earnings. When the earnings are distributed as dividends, the shareholders pay taxes on these dividends. This is called _____.
double taxation
Your supervisor has asked you to complete the sales report. This is an instance of _____. When you've finished and submitted it, you will have completed a task of _____.
downward communication / upward communication
In planning a statement of core values and a code of ethics for his start up company, Gordon McDonald realized that ethical organizational activities include all of the following except _____.
drawing up a list of product-safety standards
The basic obligation that one person owes another not to cause harm or an unreasonable risk of harm is called _____.
duty of care
If you're having personal problems, you might contact a(n) _____ specialist at your workplace
employee-assistance
Because they present its public face, quality _____ are vital to Starbucks' success.
employees
To channel information to multiple users, many large and midsized companies rely on a highly integrated _____ system.
enterprise resource planning
A(n) _____ is someone who identifies a business opportunity and assumes the risk of creating and running a business to take advantage of it.
entrepreneur
While many _____ ventures are based on innovative ideas, others revolve around improvements to existing goods or services.
entrepreneurial
Entrée Specialités, which produces food products and ships them to several independent buyers throughout Western Europe, is in the _____ business.
exporting
A(n) _____ is created when a seller affirms that a product meets certain standards of quality, description, performance, or condition.
express warranty
Although public accounting firms offer consulting and tax services, the hallmark of the profession is the performance of _____ audits.
external
The _____ rate is the interest rate paid by a Federal Reserve member bank when it borrows from another member bank to meet its reserve requirements.
federal funds
Companies that use a just-in-time (JIT) production system:
have frequent contact with their suppliers.
According to the Great Places to Work Institute, employees say that the defining characteristic of a great company is:
having trust in the people for whom they work.
Which of the following is among the disadvantages of small business ownership?
heavy time commitment
As an HR director at Blue Sky Clothing Mills in Waynesboro, North Carolina, Greta LaDuke's responsibilities include _____.
hiring more workers subcontracting work to other suppliers introducing labor-saving initiatives all of these
Organizational leaders must be willing to _____ and take appropriate action.
hold employees accountable for their conduct
Studies show that, when discussing performance with employees, many managers aren't likely to give _____.
honest feedback
At importer/exporter Imperial Traders, a process called _____ consists of all actions that the organization takes to attract, develop, and retain quality employees.
human resource management
In an effort to make its food healthier, McDonald changed the way it made its french fries. This is an example of a:
improvement in an existing product.
You've just been assigned to prepare a ____ ratio analysis showing your company's ability to pay interest on its debts from its operating income.
interest coverage
A goal that you expect to achieve in 2 to 5 years is a(n) _____.
intermediate-term goal
Under a(n) _____ between a U.S.-based company and a foreign company, in return for the right to use the parent company's brand name and sell its goods and services, the foreign company is required to adhere to an established business model.
international franchising agreement
The ability to get along well with and motivate other people depends on _____ skills and is vital at any level of management.
interpersonal
You can calculate inventory turnover dividing cost of goods sold by _____.
inventory
All of the following should usually be considered inappropriate behavior except:
inviting a business acquaintance to dinner.
During the product development process of _____, a product development team is involved in design work to ensure that the product will be safe.
making sure that the product performs and appeals to customers
To help them operate the business, _____ accounting provides information and analysis to decision makers inside the organization.
management
An organization needs ____ because they create more efficiency and effectiveness.
managers
A major obstacle to team success in introducing teams into an organization is:
managers fail to delegate authority.
The sole regional supplier of Gasanol, a fuel made of gasoline and soy oil, operates in a(n) _____ market.
monopoly
If you take out a $10,000 loan to buy a used car and pay the loan off in four years, your borrowing cost at 14% is _____ as it is at 6%.
more than twice as much
In 2006 and 2007, largely because of _____, banks and other institutions that made mortgage loans began losing huge sums of money.
mortgage loan defaults
McDonald's, Burger King, Pizza Hut, and KFC restaurants, all of which operate in many different countries, are best characterized as _____ corporations.
multinational
The difference between gross profit and operating expenses is _____.
net income
The Bill and Melinda Gates Foundation is an example of a _____.
not-for-profit organization
A survey of 200 whistle-blowers conducted by the National Whistleblower Center revealed that _____ had been fired by their respective employers.
one-half of them
Peggy McLaughlin runs an ice cream shop. She is determining how many employees should work next week and at what times. She is performing which management function?
organizing
Negative externalities are costs borne by _____ who are _____ the basic transactions.
other people / outside
Both manufacturing and nonmanufacturing functions can be _____ to nations with lower _____.
outsourced / labor costs
Many small firms provide _____ services to large firms-that is, they hire themselves out to help with special projects or to handle certain business functions.
outsourcing
As a team member, Beverly seems to split hairs and belabor every detail. She seems to be using which of the following blocking strategies?
overanalyzing
Which of the following is a disadvantage of the corporate form of organization?
owners and managers are not always the same people
You can protect the rights to your idea with a _____
patent
If you're a nonsmoker in an average American household, you:
pay $630 a year in smoking-related federal and state taxes.
Determining the reasons for the deviations in work performed is part of the _____ process.
performance follow-up
Successful investor Warren Buffet says that _____ is the most important requirement on his list of what he looks for in a new employee.
personal integrity
A market segment is best characterized as a group of _____.
potential customers with common characteristics
A few years ago, when Nike was charging $140 for a pair of jogging shoes, the company was using a strategy of _____ pricing.
prestige
All of the following are types of utility that customers value except _____.
product
When a company does something negative, such as selling a prescription drug with unexpected side effects, its _____ department will probably go to work to control the damage to its reputation.
public relations
Following basically the same process that you'd use to buy a product on eBay, a(n) _____ manager uses the Internet to buy parts and supplies.
purchasing
In response to public criticism for serving unhealthy food, McDonald's has done all of the following except:
reduced the fat calories in their hamburgers.
Under NAFTA (North American Free Trade Association), the United States, Canada, and Mexico are free to produce what each country does best and trade its goods and services without _____.
restrictions
Low turnover is particularly important in the _____ industry because it depends on service-oriented personnel to generate repeat business.
retail
Which of the following is not a requirement of an S-corporation?
revenues must be less than $1 million annually
According to hierarchy-of-needs theory, our highest need is for _____.
self-actualization
If the Fed wants to decrease the money supply, it can _____.
sell bonds
A _____ business offers such products as haircuts or taxi rides.
service producing
About 80 percent of small businesses in the U.S. are concentrated in the _____ sector.
service-producing
Jerry Foster is a sole proprietorship who owns a canoe renting business. Jerry's employee, Terry Gibbs, greets customers at the company's office, loads the customers and their rented canoes onto a van, provides them with safety instructions and drives them upstream. Once unloaded the canoers are on their own to float back to the company's office to check in. Although there have been minor accidents, no one has drowned in the nine years the business has been in operation. Jerry plans to add kayaks and rubber rafts next year. The scenery is beautiful and each day people see wild animals come down to the water. Under the ____ form of ownership, any money borrowed by the business is loaned to the owner personally.
sole proprietor
Under the ____ form of ownership, the business dissolves upon the owner's death.
sole proprietor
Maria Martin owns an advertising company. She gets to keep all of the income earned by the business. She operates it as a(n) _____.
sole proprietorship
The principle of _____ refers to the number of people reporting to a particular manager.
span of control
The purpose of accounting is to help _____, who are interested in the activities of a business because they're affected by them.
stakeholders
A country's level of economic development is related to its _____.
standard of living
Assessing a company's strengths, weaknesses, opportunities, and threats usually takes place during the process of _____ planning.
strategic
A company can make its workforce more productive by reducing _____.
stress
When a union declares a _____, workers walk away from their jobs and refuse to return until the issue at hand has been resolved.
strike
For money to be useful, it must possess all of the following properties except _____.
tangibility
Your _____ market consists of a specific group of consumers who are interested in your product, have access to it, and possess the means to buy it.
target
You own a share of stock in Hershey Foods. In reviewing the stock information in the Wall Street Journal, you note that Hershey's PE ratio is 19. The PE ratio indicates:
the amount investors are willing to pay for every $1 of Hershey Food's earnings.
Making decisions on how to hold down the costs of materials and labor is the job of _____.
the operations manager
A contract can be enforced only if it has:
the purpose of the contract must be legal.
Because of _____ a dollar received today is worth more than a dollar received in the future.
the time value of money
Temporary work isn't very appealing primarily because _____.
there are usually no benefits
Debit cards can be expensive to use because:
they can cause you to overdraft your checking account and consequently incur an overdraft fee.
A _____ is a letter, sound, or symbol that differentiates a product from similar products on the market.
title
As a rule, _____ set overall performance targets for all levels of management.
top managers
A manager who mentors and develops subordinates, providing them with challenging opportunities and working one-on-one to help them meet their professional needs, is practicing a _____ leadership style.
transformational
The key to persuading customers to buy your products is delivering _____.
value
Auditors find _____ especially useful because it reveals the relationship of each item on the income statement to a specified base.
vertical percentage analysis
A _____ has no significant physical presence, relying on third parties to produce, warehouse, price, and deliver the products that it sells over the Internet.
virtual company
Grainger Solutions has branch offices geographically dispersed in seven states. A _____ team has been formed to interact electronically for the purpose of achieving a common goal.
virtual team
The misdeeds of Betty Vinson and her accomplices at WorldCom didn't go undetected. They caught the eye of Cynthia Cooper, who could have looked the other way but chose instead to be a(n) _____.
whistle-blower
The majority of small businesses are owned by ____.
white males
Consisting of computers connected by telephone lines, wireless technology, or satellite, a(n) _____ network covers a relatively large geographical area.
wide area
You'd be more likely to find a _____ span of control at a nonprofit call center than at a hospital emergency room.
wider
It is parents weekend and your parents will arrive at your dorm in an hour. There are two tasks left to be done: washing the dishes and vacuuming. You and your roommate have agreed to divide up the work. In the past, you have been able to do the dishes in 30 minutes and vacuum in 15 minutes. Your roommate takes 40 minutes to do the dishes and 60 minutes to vacuum. Based on this scenario:
you have an absolute advantage in both jobs and a comparative advantage in vacuuming.
