BUSI 1301 final study guide
The statement "Warning: The Surgeon General Has Determined That Cigarette Smoking Is Dangerous to Your Health" supports the consumers' rights to
safety and to be informed
An organization chart reveals
the company's organizational structure
Business people often face ethical issues every day, and some of these issues can be difficult to assess.
True
Compensation and benefits are related to employee motivation.
True
Consumer advocates, such as Ralph Nader, take it upon themselves to protect the rights of consumers.
True
Data mining refers to searching large amounts of data looking for useful information.
True
Ethics is the study of right and wrong and of the morality of the choices we make.
True
Fairness and honesty in business are two important ethical concerns.
True
Food, shelter, and clothing will probably satisfy a person's physiological needs.
True
Globalization, convergence of technologies, and demographic forces are considered external forces that affect e-business.
True
Inflation is a general rise in the level of prices experienced by people in a nation
True
Job rotation is the systematic shifting of employees from one job to another.
True
Job specialization is the separation of all organizational activities into distinct tasks and the assignment of different tasks to different people.
True
Management is the process of coordinating people and other resources.
True
Most organizations use four types of resources: material, human, financial, and informational.
True
Most organizations use four types of resources: material, human, financial, and informational..
True
Motivation, morale, and satisfaction of employees' needs are interrelated.
True
Moving products from producer to wholesaler to retailer to consumer is called the traditional channel because most consumer goods are sold this way.
True
On a balance sheet, assets are listed in order, from the most liquid to the least liquid.
True
Real gross domestic product is an economic measure that has been adjusted for price increases of goods and services during a given period of time.
True
The AMA defines marketing as "The activity, set of institutions, and process for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large."
True
The employees at the Ford production facility in Michigan work on an assembly line where each employee performs a specific task. This method of assembly-line production is a good example of job specialization.
True
The first step in benchmarking is to identify the objectives.
True
The four basic management functions are planning, organizing, leading and motivating, and controlling.
True
The major resource or resources that comprise the major input for a conversion process is often referred to as the focus.
True
The need for esteem may be satisfied through personal accomplishments, promotion to more responsible positions, and honors and awards.
True
The statement of financial position is also known as the balance sheet.
True
The three levels of brand loyalty are preference, recognition, and insistence.
True
The weakness of one partner may be offset by another partner's strength.
True
There is added protection for whistle-blowers who report violations of the Sarbanes-Oxley Act.
True
Unlike a person, a corporation exists only on paper.
True
When the United States recently imported $1,933 billion in merchandise and services and exported $1,555 billion, it had a trade deficit
True
When the United States recently imported $1,933 billion in merchandise and services and exported $1,555 billion, it had a trade deficit.
True
Gross Domestic Product measures the total value of all final goods and services produced within a nation's physical boundaries over a given period of time.
True
You have just opened a new small business. You're really happy to learn that studies show that small-business workers
are more innovative than workers in large businesses
A product layout is often referred to as a
assembly line
Estella was given the responsibility for chairing a campus committee. To complete the delegation process, she should be given the ____ to carry out this responsibility.
authority
The first step for selecting the right social media tool(s) is
determining the company's social media objectives
According to Theory X by McGregor, managers assume that employees
dislike work and need to be controlled
Businesses are generally placed into three broad categories: service industries, production industries, and ____ industries.
distribution
A small business is all of the following except
dominant in its field
Sam invests $5,000 of his own money in his new auto detailing business. He then obtains a loan and builds a small workshop in his backyard for $10,000. At this point assets are ____, liabilities are ____, and owners' equity is ____.
$15,000; $10,000; $5,000
When compared to partnerships and corporations, sole proprietorship's account for ____ percent of total annual sales.
4
What must a monopoly, such as a public utility, account for when setting its prices?
A monopoly must consider customer demand, and then set prices at the most profitable level.
To determine the proper size for its new restaurant in Nashville, Tennessee, operations managers and marketing managers for Hard Rock Cafe worked together to determine the restaurant's ____.
Capacity
Which of the following most accurately describes a podcast?
A digital audio or video file
Eleven republics of the former Soviet Union are members of the
Commonwealth of Independent States
An affirmative action program is designed to ensure that minority employees are represented in about the same proportion as their representation within the community.
True
When Tiffany was recognized by the store manager at a store meeting for exceeding all of her past year's objectives and when the announcement of her promotion to assistant store manager was made, which need of hers was filled?
Esteem
The personal force causing someone to behave in a particular way is called morale.
False
The total dollar amount of all goods and services sold during the accounting period is called net sales.
False
The total value of a nation's exports minus the total value of its imports is known as the balance of payments.
False
When a business incorporates, it receives articles of incorporation from the Internal Revenue Service.
False
An ethical decision or action is one that is right according to some standard of behavior
True
With warehouse showrooms, a customer selects the merchandise either from a catalog or from the showroom display, fills out an order form provided by the store, and hands the form to a clerk.
False
An economy is one that includes a financial system and excludes a social system.
False
If spending is lower than revenue, the government incurs a budget deficit and must borrow money to cover the shortfall.
False
In the context of fiscal strategies, most economists agree that higher taxes can boost the economy by leaving more money with the government to spend during an economic crisis.
False
The financial statement that provides information about a firm's operating, investing, and financing activities during an accounting period is the
Cash flows statement
A plan that outlines alternative courses of action is called a ____ plan.
Contingency
The process of evaluating and regulating ongoing activities to ensure that goals are achieved is known as
Controlling
An organization is a group of two or more people working together to achieve common goals.
True
Microeconomics is the study of
Decisions made by individuals
________refers to a period of falling average prices across the economy.
Deflation
Brandon assigns responsibility to a subordinate for preparing a sales presentation for an important potential client. Brandon realizes that accountability can not be
Delegated
Diane Nguyen is planning to open a boutique stocked with exotic imports from around the world. Most probably, this new business will be managed by
Diane Nguyen
When the U.S. government will not allow meat from another country to be marketed in the United States, it is imposing a
Embargo
The study of the morality of choices made by people is known as
Ethics
Number of fans and number of likes are typical measurements for
A copyright of a product exists indefinitely.
False
A general-merchandise wholesaler carries a select group of products within a single line of merchandise.
False
A name, term, symbol, design, or any combination of these that identifies a product and distinguishes it from a competitor's product is called packaging
False
A product may be a good or a service but not an idea.
False
A tax that is levied on a foreign product entering a country is called an export tariff.
False
About 85 percent of all business firms in the United States are sole proprietorships.
False
According to the Sarbanes-Oxley Act, the FTC is required to establish a full-time, five-member federal oversight board that will police the accounting industry.
False
At Mattel, a marketing information system stores data on regional sales activities, promotional costs, and international inventory levels. These data are examples of external sources.
False
Because information rules must be checked out before a decision can be made, they lengthen the time required to analyze choices.
False
Comparative advantage is the ability to produce a specific product more efficiently than any other nation.
False
Corporate officers are elected by the stockholders.
False
Countries that adopted communism in the 1900s-most notably the former Soviet Union, China, Cuba, North Korea, and Vietnam-thrived and prospered more than all the other countries in the world.
False
Direct marketing is the marketing of products to customers through face-to-face sales presentations at home or in the workplace.
False
Each rectangle in an organization chart represents a relationship within the organization.
False
Fixed costs are costs that depend on the number of units produced.
False
How the price of homes affects the number of homes built and sold would be an economic issue studied in a Macroeconomics course.
False
Human resources management is the sole responsibility of line managers
False
In order to compete in the global economy, U.S. firms have focused on increasing prices and improving the bottom-line profit amount.
False
In the decline life-cycle stage of a product, less profitable versions of the product are sold at reduced rates to cut losses.
False
International business includes all business activities that involve exchanges across state boundaries.
False
Just under 70 percent of online adults use some sort of social media.
False
Maslow believed each level of need must be completely satisfied before an individual can advance to the next level.
False
Maslow's hierarchy of needs includes psychological needs, safety needs, social needs, security needs, and self-importance needs.
False
Nearly all experts and academics in the field of leadership agree that a participative leadership style is the best within an American organization.
False
Online booksellers that seem to be following the same business activities are said to be using a B2B business model.
False
Physiological needs are satisfied by job security, health insurance, pension plans, and good working conditions.
False
President Franklin D. Roosevelt declared that consumers are entitled to safety, to be informed, to choose, and to be heard
False
President Franklin D. Roosevelt declared that consumers are entitled to safety, to be informed, to choose, and to be heard.
False
The branding strategy in which a firm uses the same brand for all or most of its products is called individual branding.
False
The evolution of customer orientation started with businesses having a strong sales orientation, followed by a production orientation, and finally a customer orientation.
False
Aspirin, yo-yo, and escalator were all brand names at one time.
True
The primary functions a manager performs include planning, solving problems, leading and motivating, and controlling
Flase
____ resources are the individuals who provide labor for an organization in exchange for wages
Human
Which of the following scenarios would best exemplify Adam Smith's view of best serving the interests of society?
Individuals in the country may pursue their own economic gain and self-interest by doing whatever is best for them
An economic system in which individuals and businesses make the decisions about what to produce and what to buy, and the market determines how much is sold and at what prices, is called a ____ economy.
Market
The organizational function and set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders is
Marketing
The hierarchy of human needs was developed b
Maslow
The value of goods on hand for sale to customers is called
Merchandise inventory
The ultimate objective of every firm, such as Apple and Starbucks, must be to
Satisfy the needs of its customers
To close a sole proprietorship, the owner must
Pay creditors
Sleep relates most directly to which level of need?
Physiological
Creating a website so that customers can search for information instead of calling the company's offices and speaking to a customer-service representative is an e-business strategy designed to increase profit by
Reducing expenses
The acronym SCORE stands for
Service Corps of Retired Executives
Your friend, Linda, started a graphic design firm about a year ago. The business has done well, but it needs a lot more equipment, computers, and employees to continue expanding. Linda does not see any problem because she thinks she can easily get all the money she will need from her local bank. What advice might you give her?
She should consider alternative sources of financing because banks provide only about one-fourth of the total capital to small businesses
SBA stands for
Small Business Administration
In the United States, approximately 72 percent of all businesses are
Sole proprietorship
The simplest form of business owned and operated by one person is called a
Sole proprietorship
Accurate and timely information is the foundation of effective marketing, especially of the marketing concept.
True
Erica buys a new pillow and rips off the manufacturer's tag. She then reads the tag and is amused at its warning that, under penalty of law, the tag should not be removed and the pillow could cause suffocation. What consumer right is the manufacturer guarding against?
The right to be informed
All the activities managers engage in to produce goods and services are called operations management
True
Identify a true statement about subprime mortgage loans.
They are lent to borrowers with high debt-to-income ratios
What is a common mistake that small-business owners make when their businesses begin growing?
They over expand without proper planning
The $700 billion economic bailout plan following the subprime mortgage crisis of 2008 was called the _____.
Troubled Assets Relief Program
"Digital natives" have typically grown up with technology and are comfortable sharing information about themselves.
True
A business provides goods and services in exchange for sales revenues.
True
A company's product mix usually must be changed to stay competitive.
True
A depression is a severe recession that lasts longer than a recession
True
A marketing plan specifies an organization's resources, objectives, marketing strategy, and implementation and control efforts to be used in marketing a specific product or product group
True
A price of $5.95 for a product would fall into the category of odd-number pricing.
True
A public accountant works on a fee basis for clients.
True
Absolute advantage is the ability to produce a specific product more efficiently than any other nation.
True
According to the hierarchy of needs concept, people satisfy their needs in order of importance.
True
Who are the members of NAFTA?
United States, Canada, and Mexico
The World Trade Organization was created by the
Uruguay Round
A locally owned and operated bakery with just one location is likely to have
a short chain of command
Technology that is characterized by high initial costs and low operating costs is termed
capital-intensive
Victor Green has been working at The Bicycle Superstore for about two weeks. This morning he noticed that the store's inventory on bicycle tire repair kits is out, but he is unsure of whom he should report to for approval to place an order for more kits. Victor is unclear about the
chain of command
Upon beginning her career at Davidson Inc., a small consulting firm, Stephanie Benjamin receives a copy of the firm's organization chart, which will
clarify positions and report relationships within the firm
General Motors Corporation and Ford Motor Company frequently advertise that their cars beat the competition in price, durability, and warranties. This type of advertising is called ____ advertising.
comparative
The policies and strategies pertaining to employee compensation comprise a
compensation system
Total quality management (TQM) has several components, but ___ is not one of them.
continuous supervision of employees
Consumers would most likely treat candy bars as ____ products.
convenience
The first step in the managerial decision-making process is to
create a problem opportunity
Joy, a sales representative, is placed in a group with an engineer from operations, a human resource specialist, and a financial manager to develop new uses for one of the company's existing products in order to increase sales. This group is a
cross-functional team
Using information about customers to create marketing strategies that develop and sustain desirable long-term customer relationships is known as
customer relationship management
The United States joined with Mexico and Canada to promote the movement of resources and products; it formed
economic community
The United States joined with Mexico and Canada to promote the movement of resources and products; it formed a
economic community
Teaching employees new jobs, skills, and more effective ways of doing their present jobs is called
employee training
Employee ownership is a situation in which
employees own shares of stock in the company.
You were hired as a television anchorwoman this year. After a few months your supervisor demoted you because you were said to be too old, unattractive, and not deferential enough to men. You believe this supervisor has violated your right to
equal treatment in the workplace
In a SWOT analysis, opportunities are considered external to the organization.
false
Job analysis is the systematic procedure for studying jobs to determine expected levels of productivity.
false
Large firms generally buy parts and assemblies from smaller firms because
it is less expensive than making their own
First Tennessee Bank introduced a new program that allowed employees to determine their own work schedules. This type of program is called as
flextime
If the Colgate-Palmolive Company were to develop a replacement chart, the chart would show
key personnel along with possible replacements within the firm
The process of influencing people to work toward a common goal is
leading
According to Theory Y by McGregor, managers think people
have the ability to help accomplish an organization's goals
Martin owns his own motorcycle and ATV store. He notices that many of his customers talk about golf while in his store. He quickly adds golf carts and golf clubs to his merchandise selection. Rapidly adjusting to the needs of his customers is possible because small businesses
have the ability to quickly adapt to change.
New ways to do a job with less effort and at lower cost is the basic principle characterizing the
increases in productivity for the past two hundred years
Microeconomics focuses on:
individual business
Advertising geared toward attracting not only customers but also potential investors and employees is classified as ____ advertising.
institutional
The Home Depot runs a television campaign that demonstrates its support of Olympic athletes in order to enhance the firm's image. This is ____ advertising
institutional
CAFTA, NAFTA, OECD, and OPEC are all examples of
international economic communities
A manager with ____ skills has the ability to deal effectively with people inside and outside the organization
interpersonal
A manager with ____ skills has the ability to deal effectively with people inside and outside the organization.
interpersonal
Small businesses have traditionally added ____ new jobs to the economy
more than their proportional share of
Small businesses have traditionally added ____ new jobs to the economy.
more than their proportional share of
Mattel wants to announce some new educational benefits associated with one of its new product lines. The company writes a report of about 300 words and sends it to the media. This is called a _____.
news release
The marketing activities associated with time, place, and possession utility account for about ____ of every consumer dollar spent.
one-half
A positive problem may be viewed as
opportunity
Taking credit for others' ideas or work or not meeting one's commitments in a mutual agreement are ethical issues concerning
organizational relationships
When Sears first decided to sell its merchandise online, the manager in charge of the process had to hire a technical staff to create the website, gather other resources necessary for the project, and ensure the site would be introduced in an effective and efficient manner. This is a description of the manager's ____ function.
organizing
The process of shipping fresh flowers from California to Texas gives ____ utility to the flowers.
place
When the campaign with the slogan "The Other White Meat" encouraged Americans to increase pork consumption, this was an example of ____ advertising.
primary-demand
An industrial company contacts John Deere to design a specific type of equipment for use in its manufacturing facility. If John Deere accepts this offer, the two companies will have to create a set of specifications from which the product can be made. This process is called
product design
When Taco Bell determines what different food items it will offer on its menu and how many it will offer, it is deciding its
product line
All of the following are sources of external recruiting except
promotion of a current employee
Gaby loves her work and feels that she is well recognized by her peers and superiors for the work that she does. These motivation factors are ____ for Gaby.
satisfiers
Advertising may be broadly classified into three groups:
selective demand, institutional, primary demand
The separation of all organizational activities into distinct tasks and the assignment of different tasks to different people is called job
specialization
Human resources is a ____ type of job, so it does not fit directly into the chain of command
staff
When Black & Decker manufactures its wide array of tools, it is using a ____ process.
synthetic
Several European countries have banded together to reduce the trade barriers between them and encourage trading among themselves. This is known as
the European Union
The debt ceiling is:
the maximum amount Congress lets the government borrow.
What is a common mistake that small-business owners make when their businesses begin growing?
they over expand without proper planning
A wiki is an online collaborative working space.
true
Job evaluation is almost always the basis for developing a
wage structure
A manager with many subordinates is said to have a
wide span of control