Business 110
True or false: The principles of management are similar for a small neighborhood business and a giant global firm.
True
U.S. business will experience increased ______ in the future due to the effects of globalization.
outsourcing
U.S. workers will see increased competition from other countries in the future due to:
outsourcing to foreign countries
Corporate social responsibility is when businesses are concerned
- about being fair and honest with their stakeholders - for the welfare of society as a whole
As a function of financial management, financial managers must understand tax regulations because ______. (Select all that apply)
- businesses want to minimize taxes - they must consider the tax implications of major decisions
The motives of those involved in unethical behavior that caused the financial crisis in the real estate, banking, and mortgage industries included:
- greed - the wish to inflate their own earnings
The consumer market is made up of:
- households - individuals
Some common causes of small business failure include:
- no experience in that business or industry - underpricing or overpricing goods or services - starting with too little capital
Advantages of starting an online franchise are:
- no upfront fee may be required - online franchisees can compete in world markets - franchisees pay only a set monthly fee
Advantage of home-based work for employers include:
- saves office space costs - reduces absenteeism
An organization's vision gives it a:
- sense of purpose - set of values
________ customers include dealers, who buy products to sell to others, and ultimate customers (or end users), who buy products for their own personal use.
External
Employee empowerment cannot be successful without clear and open ________ throughout an organization.
communication
Societies set the standards for moral behavior, known as
ethics
A SWOT Analysis is a(n) ______ tool used to analyze an organization's strengths, weaknesses, opportunities, and threats.
planning
Since 2009, the Age Discrimination in Employment Act:
requires that age must be the determining reason for any employment action against older workers
An indirect measure of risk that tells us how much a firm earned for each dollar invested by its owners is called ______.
return on equity
Small business managers are more concerned with ______-term funds.
short
Studies have indicated that partnerships are four times more likely to succeed than:
sole proprietorships
Many franchises are expanding internationally because:
there are large new markets available
Phil invests in new businesses in exchange for partial ownership in those businesses. Phil is a(n) ______ ______
venture capitalist
__________ are economic resources owned by a firm.
Assets
The Hay pay method is based on job _________, each of which has a strict pay range.
grades
The _________ method of compensation relies on job tiers and grade ranges.
hay
A system in which one person is at the top of the organization and there is a ranked or sequential ordering from the top down of managers who are responsible to that person is called a(n) _______
hierarchy
The service era is giving way to a new era based on:
information
A large organization might use a flat organization structure in order to:
match the flexibility of small firms
Herzberg studied the relationship between:
motivation and job-related factors
A manager responsible for producing products, and delivering them on time, on budget, and to specifications is likely a(n) ________ manager.
operations
If one manager views most employees as motivated to do work while a second manager views most employees as lazy, they are operating under which of the following management theories respectively?
Theory Y and Theory X
True or false: Computers are used to design products when CAD is employed.
True
True or false: Facility layout depends greatly on the processes that are to be performed.
True
______ ______ are individuals or companies that invest in new businesses in exchange for partial ownership of those businesses.
venture; capitalists
Which of the following are good ways to learn how to run your own business?
- Run a small business during your off hours - Talk to other business owners - Work for a successful entrepreneur
An LLC submits a written operating agreement, similar to a(n) ______ agreement, describing how the company is to be operated.
partnership
A positive goal of _______ is social equality, while a negative outcome is taking income from citizens at rates as high as 60%.
socialism
Those managers considered as top management in an organization would include the
- Chief Operating Officer - Chief Financial Officer - Chief Executive Officer
Select the technological innovations that companies can use to develop products and services that match consumers' wants and needs more effectively.
- Data bases - Social networking - Blogs
Select the characteristics of an entrepreneurial team that will be developing and marketing a new product.
- Each from different areas of business - Members have complementary skills and are creative - A group of experienced people
Pick out the influences in the marketing environment.
- Global - Competitive - Economic
Which of the following are functions of the World Trade Organization?
- To mediate trade disputes among nations - To oversee cross-border trade issues
States use marketing to attract many groups. Choose the two main groups from the list that states try to attract:
- Tourists - New businesses
Regardless of the size of the organization, the principles of organizing include:
- a hierarchy of authority - deciding what work needs to be done - dividing up the tasks to be done
Needs for operating funds include ______. (Select all that apply)
- acquiring needed inventory - making capital expenditures - controlling credit operations
Home-based franchises have many advantages, such as:
- low overhead expenses - relief from the stress of commuting
In factoring, the discount given depends on ______. (Select all that apply)
- the condition of the economy - the age of the accounts receivable - the nature of the business
True or false: Adapting to change is difficult because over time employees get stuck in their ways and are comfortable.
True
______ is a broad explanation of why the organization exists and where it is trying to go.
Vision
Reviewing and evaluating records used to prepare a company's financial statements is referred to as ______.
auditing
The total value of a nation's exports compared to its imports measured over a particular period is the definition of:
balance of trade
Why can loans obtained from families and friends be problematic?
because all parties may not understand cash flow
The term used for unsecured notes of $100,000 and up that are due in no more than 270 days is __________ __________.
commercial paper
Fringe benefits such as health care, paid vacation, and sick days provide additional _________ to employees.
compensation
Adam Smith believed _______ was essential to the survival of any economy.
freedom
Finance is the function of acquiring and management of ______.
funds
In a global market, marketers must be sure to dialogue with customers to ensure they understand about the ________ and ________ they want.
goods; services
The type of organization that has direct two-way lines of responsibility, authority, and communication from the top down, with everyone reporting to one supervisor is called a:
line organization
Globalization has created a need for managers to understand cultural differences in order to _________ employees around the world.
motivate
Ethical problems such as influence peddling and bribery:
occur in many countries
________ is a persuasive form of communication that informs people and motivates them to buy products and services.
promotion
While your are still your own boss as a franchise owner, your territory or selling boundaries may be regulated by the franchisor.
True
Whistleblowers are often concerned about retaliation.
True
Examples of how ethical standards differ among countries and cultures include
U.S. executives who complain that their businesses are at a competitive disadvantage when bidding against non-U.S. companies, since foreign companies don't abide by bribery laws
Becoming an apprentice, talking to other business owners, and working for a successful entrepreneur are all examples of effective ways to obtain ______ for running your own business.
experience
______ businesses are businesses that are independently owned and operated, are not dominant in their field of operation, and meet certain standards of size in terms of employees or annual receipts.
small
The four types of unemployment are ______, ______, ______, and ______.
frictional; structural; cyclical; seasonal
One of the main explanations for the relatively sharp increases in the U.S. manufacturing sector productivity is:
improved technology makes the production process faster
A foreign subsidiary is a company owned in a foreign country by another company called the:
parent company
An advantage of the use of computers to maintain and compile accounting information is ______.
speed
Prices in a free market economy are determined by:
supply and demand
An inexpensive marketing research study may help you determine which of the following?
- What is an effective strategy for reaching your target market - Whom to select as your target market - Where to locate
Which are questions financial managers ask when considering long-term financing? (Select all that apply)
- What sources of long-term funding (capital) are available, and which will best fit our needs? - What funds do we need to achieve the firm's long-term goals and objectives? - What are the organization's long-term goals and objectives?
Financial control is a process through which a firm periodically compares its budget to which of the following? (Select all that apply)
- costs - revenues - expenses
Fiscal policy is the government's efforts to keep the economy stable by:
- decreasing taxes - increasing or decreasing government spending - increasing taxes
Advantages of a positive corporate culture include:
- emphasizing service to others, especially customers - trust between employees - people who enjoy working together to be productive
Which are forms of debt financing?
- issuing bonds - getting a loan from a bank
Among the benefits businesses provide to their communities are:
- jobs - goods and services - tax payments
Industrial robots have completely changed manufacturing because they:
- reduce costs - can work 24/7 with great precision - improve productivity
To use self-managed teams to improve productivity, management must reinvent work by:
- respecting workers - allowing autonomy - developing workers' skills
Challenges for new leaders since the global information-based revolution include:
- that the service era is coming to a close - learning about world quality standards
Marketers must pay attention to the dynamic competitive environment because:
- the Internet gives consumers information instantly - change is occurring more rapidly
Why did Thomas Malthus believe that population growth would surpass the available resources?
Fast population growth seemed to surpass the growth of the food supply.
Which set of ethics codes defines an organization's guiding values, creates an environment that supports ethically sound behavior, and stresses shared accountability?
Integrity-based ethics codes
These people perform many of the activities required to move products efficiently from producers to consumers or industrial buyers and are often wholesalers or retailers.
Intermediaries
__ is the monetary value of what a company received for goods sold, services rendered, and all other payments to the firm.
Revenue
The B2B market includes:
- institutions - government - manufacturers
______ refers to accepting the risk of starting and running a business.
Entrepreneurship
A franchise owner will experience the coattail effect when:
a fellow franchisee does something that has an impact on growth and profitability
The guiding principle of free economic exchange is:
comparative advantage theory
A state-chartered legal entity with authority to act and have liability separate from its owners is a:
corporation
Return on _________ is net income after taxes divided by total owners' equity.
equity
As a small business grows, it is ______ to oversee every detail; entrepreneurs must train and motivate employees.
impossible
Choosing facility location has become more flexible for both companies and employees through the use of ________ ________ such as texting, teleconferencing, cell phones, and email.
information technology
Careful control of a firm's _________ costs allows it to maintain correct levels of stock and product.
inventory
The decision of the U.S. Supreme Court in 1988 giving access to certain clubs to women was important because:
it allowed them to enter established networking systems
There are more than 7 billion potential customers in 195 countries around the globe. Each country possesses unique materials and skills, and as technology advances, communication barriers are being brought down. Therefore:
it is important to conduct business globally
Studies have shown that what most influences a company's effectiveness and financial performance is:
responsible management of human resources
Any physical good, service, or idea that satisfies a want or need is a ________.
product
The increase in farm productivity as a result of the invention of the harvester and other farm equipment has:
increased the world's food supplies
The service era is giving way to a new era based on
information
Viewing employees as people who hate to work is considered the view point of a Theory _________ manager.
X
________ leadership is a leadership style that involves making managerial decisions without consulting others.
autocratic
Equipment in hospitals, such as CAT scanners, PET scanners, and MRI scanners:
improve the quality of services provided, but do not necessarily increase productivity
The expansion and development of the Internet has sprouted a world of small web-based businesses. This, among other reasons, may explain why online sales are rapidly:
increasing
A business that is independently owned and operated, is not dominant in its field of operation, and meets certain standards of size in terms of employees or annual receipts is a(n):
small business
What type of accountant is most likely to develop strategies for a firm in dealing with the Internal Revenue Service?
tax accountant
A _________ plan gives employees some freedom to choose which hours to work, as long as they work the required number of hours.
flextime
An organization that has direct two-way lines of responsibility, authority, and communication running from the top to the bottom of the organization, with all people reporting to only one supervisor is called a(n) _______ _______.
line organization
Pick out the attributes typically used to differentiate consumer groups.
- Education - Age - Income
There are a few hurdles that prevent many small businesses from engaging in the global market. Which of the following are examples of such problems?
- Financing is often difficult to find. - Would-be exporters do not know how to get started.
Which of the following countries are members of the Central American Free Trade Agreement (CAFTA)?
- Guatemala - Nicaragua - Honduras - Costa Rica
How are taxes used to influence the economy?
- High taxes draw the money away from the private sector. - Low taxes increase the profits a small business can earn. - They are used to stabilize the economy.
In what way will globalization impact U.S. businesses?
- Increased competition - Concerns for product safety - Loss of jobs in manufacturing
Which of the following behaviors are illegal in the United States, but potentially put our companies at a disadvantage in overseas markets?
- Influence peddling - Bribery
Which are considered disadvantages of incorporating?
- Initial Cost - Double Taxation - Extensive paperwork
Leverage or debt ratios measure the degree to which a firm relies on ______.
borrowed funds
Many people do not like working for someone, so being your own ______ is an advantage of sole proprietorships.
boss
A cross-functional team that includes suppliers, distributors, and customers goes beyond organizational ________.
boundaries
The loss of the best and brightest people to other countries is the:
brain drain
Due to much higher taxes in socialist countries, the best and brightest tend to leave such countries causing a ______ ______.
brain; drain
Cross-functional self-managed teams are used in organizations to
break down barriers between functional departments
While workers in the United States are more task oriented and require information to do their jobs, workers from Korea are more motivated by strong relationships and developing trust to do the same job. That is because Korea is a ______ context culture and the U.S. is a ______ context culture.
high, low
Workers who are _________-_________ can choose their own hours, interrupt work for child care, or take time out for personal reasons.
home-based
The tool that lists ages, names, education, capabilities, training, specialized skills, and other relevant information about an organization's employees is called a:
human resource inventory
Some companies create _______ structures because the sales department has geographic departments, production is by function, and marketing is by customer groups.
hybrid
Howard Schultz of Starbucks, spotted the opportunity to ______ the concept of neighborhood coffee bars from Italy while he was traveling there.
import
Students may spot an ______ opportunity while studying abroad when a product available at home is not available where they are studying.
importing
Firms will leverage (raise needed funds through borrowing) because it will ______.
increase a firm's rate of return on ownership's investment
The supply concept refers to the relationship between the quantity of products produced and price. If the market price of a product increases, quantity supplied will _______. If the market price of a product decreases, quantity supplied will ______.
increase; decrease
Business ______ are centers that offer businesses in the critical stage of early development low-cost offices and access to basic services such as accounting, legal advice, and secretarial help.
incubators
Responsible business behavior depends on the responsible behavior of each ______ in the business world.
individual
Many rapidly growing firms are outsourcing areas like engineering, design, and manufacturing with the use of the ________, thus, developing an inter-firm approach to operations management.
internet
According to Adam Smith, the process that turns self-directed gain into social and economic benefits for all is the ______ ______.
invisible; hand
When an organization's operational costs are primarily for their workforce, they are considered to be:
labor-intensive
Employees moving over to a new job or position rather than a higher level with more pay are experiencing a(n) _________ transfer in their job.
lateral
Flatter organizations today often reassign an employee to a new job at the same level, which is known as a(n):
lateral transfer
Legal and regulatory forces can create problems in the global market because:
laws and regulations vary greatly between countries
The difference between leaders and managers is that ________ establish a vision and corporate values, while ________ carry out that vision.
leaders; managers
The type of production that does not concern itself with customer preferences, but instead focuses on making a large number of a few products is called ________ production.
mass
Using the same products and promotions to appeal to large groups of people is:
mass marketing
A computer-based operations management system that uses sales forecasts to make sure that needed parts and materials are available at the right time and place is referred to as ________ requirement planning.
materials
A _______ structure, also called a project management structure, sets up teams from different departments, thereby creating two or more intersecting lines of authority.
matrix
In a ________ organization, project managers are in charge of teams made up of members from several departments.
matrix
The result of two firms (usually corporations) combining to form one company is called a ______.
merger
Entrepreneurs start a business with the desire to grow the business and generate wealth while ______ start a business that will stay small, allowing them to have a balanced lifestyle and the ability to do the kind of work they want to do.
micorpreneurs
About 20 percent of franchises are owned by African Americans, Latinos, Asians, and Native Americans. Franchisors are becoming more focused on recruiting ______ franchisees.
minority
The definition of a(n) ________ ________ states: an outline of the fundamental purposes of an organization.
mission statement
The three different types of economic systems are command, free-market and _______ market economies.
mixed
The Federal Reserve Bank manages the money supply and interest rates in an effort to balance the economy. This is referred to as _______ policy.
monetary
Home-based work can save _________ for employers as they can save on office space.
money
Students who can see trends and have the skills to work in highly automated factories and modern service facilities have a future in ________ ________.
operations management
________ ________ planning helps to solve issues related to facility layout, facility location, and inventory control.
operations management
Two advantages small firms have over large firms include more personal customer service and the ability to respond quickly to:
opportunities
Regardless of the size of the business, the principles of ________ its structure remain the same.
organizing
The training that is provided to new employees that initiates them into the organization's policies, practices, and objectives is called:
orientation
One of the fastest-growing segments of the U.S. population is:
over 65
A key advantage of a home-based franchise is low ______ costs, which can be ongoing. These are the costs associated with rent, utilities, and other fixed costs.
overhead
Dimitri owns stock in a U.S. publicly traded company. As a stockholder, Dimitri is a(n) ______ of the corporation.
owner
Stockholders are the _________ of a public corporation.
owners
The major categories of the balance sheet are assets, liabilities, and ______.
owners' equity
Job-sharing is an arrangement whereby two or more _________-_________ employees share one full-time job.
part-time
Technical skills are the ability to
perform tasks such as filing tax forms or assembling a keyboard
A weak transportation infrastructure results in a(n) ______ barrier to global business.
physical
Using machines designed to do multiple tasks in order to produce a variety of products is called ________ ________.
flexible manufacturing
The definition of ______ ______ states: the movement of goods and services among nations without economic or political barriers.
free trade
Service organizations, such as hospitals and schools, have high employee costs categorizing them as:
labor-intensive
Important decisions to be made while designing an organization include:
- departmentalization - span of control - degree of centralization
Because of ________ ________, more flexibility in choice of business location has increased while allowing firms to remain competitive.
information technology
In operating a business, rent, salaries, supplies, utilities and insurance are all examples of ______.
operating expenses
True or false: Financial management is only concerned with items involving cash.
False
The acronym for using computers to design products is referred to as
CAD
Companies sometimes spend millions to move location:
for proximity to customers
Employees who get things done using an organization's financial resources, equipment, and information are ________.
managers
Whistleblowers can be helped by protecting them from:
retaliation
Gathering leads on a company website, selling products and keeping up to date on news via email, and chat rooms all serve as examples of using ______ to assist franchisees and customers.
technology
The increase in U.S. productivity is primarily due to advances in
technology
Which set of ethics codes emphasizes preventing unlawful behavior by increasing control and penalizing wrongdoers?
Compliance-based ethics codes
What strategy focuses on a company deciding where to locate its operations?
Facility location
Choose the correct order of steps in the production process.
Inputs, production control, outputs
The ability to read, understand, and analyze accounting reports and financial statements is critical in understanding ______.
business operations
Small and medium-sized firms are often better prepared to leap into global markets because they:
can react quickly to opportunities
An organization structure in which decision-making authority is maintained at the top level of management is called a(n) ______ organization.
centralized
What is another name for debts?
liabilities
Four organizational designs include: line, line and staff, ______, and cross-functional teams.
matrix
Globalization can create more opportunities for marketers but along with that comes more pressure because they must take into account
the requirements in delivering products to countries outside of the U.S.
In financial planning, what is the process in which a firm periodically compares its actual revenues, costs, and expenses, with its budget?
- financial control
Lean manufacturing uses:
- less resources - less time
Economic systems can be classified into socialist, communist, and capitalist based on the ownership of land and businesses. Rank them with the economic system where the government has the least control over land and business at the top.
1. Capitalism 2. Socialism 3. Communism
______ are creative people who work as entrepreneurs within corporations.
Intrapreneurs
Databases, blogs, and social networking help companies gather ________ to meet consumer needs through the development of products and services.
data
Planning, _______, keeping good business records, knowing your customers, and managing employees are what it takes to start and run a small business.
financing
The right to use a specific business' name and sell its products or services in a given territory is a(n) ______ agreement.
franchise
The second set of Hawthorne Experiments continued to result in ________ productivity regardless of changing physical conditions.
increased
When two or more part-time employees share one full-time job it is called _________-_________.
job-sharing
Entrepreneurs start businesses because they expect to be profitable and add to their wealth. It is also true that:
many small businesses fail every year
State governments use ________ to compete with other states and countries to locate businesses in their areas.
marketing
The costs of producing, distributing and promoting the product will all influence the product's:
price
Companies that try to act in a socially responsible way are likely to focus on such activities as
- increasing the diversity of their workforce - providing safety equipment and training for their workers - using recyclable packaging
A(n) ______ ______ , or trading bloc, is a regional group of countries with a common external tariff, no internal tariffs, and coordinated laws to facilitate exchange among members.
common; market
A benefit of the free market is that _______ creates better choices for consumers.
competition
When a computerized data control ________ detects a problem, it notifies someone to make needed changes.
sensors
Job seekers who want to work in global business should recognize that ______ businesses account for about 1/3 of the U.S. exports.
small
A communication tool many companies use to inform diverse groups of their social responsibility efforts at little cost is
social media
Sick-leave and vacation pay, pensions, and health plans that provide additional compensation are called _________ benefits.
fringe
With marketing research, marketers analyze markets to determine:
opportunities and challenges
Unlimited liability as it relates to sole proprietorships is the risk of loss of ______ assets beyond the assets of the business.
personal
The set of activities used to obtain a sufficient number of the right employees at the right time is _________.
recruitment
Existing data is called ________ data since you aren't the first one to gather the data.
secondary
Information that has already been compiled by others and published in journals, books, or online is called:
secondary data
Chris spent his own money on marketing research, and consulted his sister Kara, who is an accountant. They spent the next few months writing a business plan. Which of the following are some business functions Chris has addressed?
- Planning - Knowing your customers
Among the advantages of being an entrepreneur is that you:
- are your own boss - have the opportunity to keep any profits from the business
During the recent financial collapse, financial managers failed to do their job effectively because of:
- poor investment decisions - risky financial decisions
During tough economic times, customers are happy when firms extend _________ for purchases.
credit
The definition of ______ ______ states: choosing among two or more alternatives.
decision making
Many ______ use their time, money, and energy to turn their passions into sustainable businesses. They are comfortable being their own bosses and are not afraid of failure.
entrepreneurs
The control process provides ________ that lets managers and workers adjust to deviations from plans and changes in the environment.
feedback
Although the United States has a market of over 300 million people, there are over 7.7 billion potential customers in the ______ market.
global
Many customers value fast, fresh, flavorful food that is free of preservatives, chemicals, and antibiotics. The marketing mix factor that represents the value of the product is ______.
price
The role of an auditor is to ______.
review and evaluate a company's financial information
Export Assistance Centers provide hands-on exporting assistance and trade-finance support for ______ and ______-sized businesses.
small; medium
The definition of _______ _______ states: skills that involve the ability to perform tasks in a specific discipline or department.
technical skills
Demography is the statistical study of:
the human population's characteristics such as size, density, age, gender, and income
In using the accounting equation, if assets = $40,000 and liabilities = $30,000, then owner's equity is equal to ______.
$10,000
Productivity in the U.S. has risen because:
- computers have increased the speed of production - changes to computerized equipment has improved speed and accuracy of production
Organizations reorganize to empower frontline workers to:
- demonstrate appreciation and trust to frontline workers - let them know they are valuable assets to the organization - serve customers more efficiently and effectively
What are the three most common reasons firms fail financially?
- undercapitalization - inadequate expense control - poor control over cash flow
Rank the strategies for reaching global markets according to the level of risk and commitment. Place the strategy with the lowest level of risk and commitment on top.
1. Licensing 2. Exporting 3. Franchising 4. Contract manufactoring 5. Joint Ventures and Strategic Alliances 6. Foreign Direct Investment
__________ financing is funding raised through various forms of borrowing that must be repaid.
Debt
_________ theory states that employees look for fairness in the workplace as compared to others before deciding to perform.
Equity
Overall company quality is outlined by the standards set by the ________ _______ _______ Quality Award
Malcolm Baldrige National
Carlyle called economics the "dismal science" after reading the early work of _______
Malthus
Which sector has lost more jobs due to technological changes?
Manufacturing
True or false: Individuals have social responsibilities regarding their ethical behavior in the business world.
True
Arrangement of resources, including people, to most efficiently produce goods and services is referred to as _________ _________.
facility layout
An assumption about people by a Theory Y manager would be that workers _________ work.
like
The part of the management function of organizing that includes hiring, motivating, and retaining the best people is _______.
staffing
In a public corporation, the ownership is held by __________.
stockholders
The change from traditional manufacturing to service and high-tech manufacturing requires highly _________ job skills.
technical
Many companies believe they have a role in promoting ______ ______ that goes way beyond simply "giving back."
social justice
Many companies believe they have a role in promoting ______ ______, so they donate to local food banks, promote literacy, and provide computer lessons for inner city children.
social justice
One of the fastest-growing segments of the U.S. population is people over the age of ________.
65
Which marketing activity helps businesses gather information to compete effectively?
Market research
In 2019, online retail sales reached over $365 ______, or approximately ______ percent of all retail sales.
billion; 12
The main idea behind mass production is to produce a large number of a limited variety of products at a very low ________.
cost
_________ _________ are a form of financing where the merchant accepts payment immediately from the bank and the customer agrees to repay the bank.
credit card
A company that takes out a loan from a bank is using which type of financing?
debt financing
In accounting, liabilities refer to ______.
debts a business owes to others
The term ________ ________ means selecting a geographic location for a firm's operations.
facility location
Compared to a bank, the interest on commercial paper is ______.
lower
In organizations, ________ strive to produce order and stability, whereas ________ embrace and manage change.
managers; leaders
There is a wider variety of careers in ________ than in most business disciplines.
marketing
According to Maslow, needs that have already been satisfied no longer provide ________.
motivation
The process of establishing and maintaining contacts in and outside the organization is called __________.
networking
Employees working 1 to 34 hours are considered _________-_________ or contingent workers.
part-time
A company situated in a foreign country that is owned by a parent company located in a different country, is a foreign ______.
subsidiary
Daniel wanted to start his own small business. After spending his own money on marketing research, Daniel asked his friend Chase to be his accountant. They spent a few months writing a business plan, which then they presented to a bank. Daniel:
understands the steps needed to start a small business
An organization's ________ gives it a sense of purpose and a set of values that unites workers in a common destiny.
vision
What are four main types of financial ratios used in ratio analysis?
- Activity ratios - Profitability ratios - Debt ratios - Liquidity ratios
Which of the compensation systems listed are likely to be effective in building cohesive teams?
- Skill-based pay - Gain-sharing
The formal organization details lines of:
- position - authority - responsibility
Government and nonprofit accounting involves working for organizations whose purpose is to serve ______. (Select all that apply)
- taxpayers - ratepayers
Learning from others is a useful way to avoid pitfalls when starting a small business. Some things you may be told would include:
- to hire a good lawyer and accountant - starting with enough money - that finding and retaining good workers is hard
A(n) _________ is a financial plan that sets forth management's expectations and, on the basis of those expectations, allocates the use of specific resources throughout the system.
budget
A cross-functional team that includes customers, suppliers, and distributors is:
going beyond organizational boundaries
What inventory management procedure helps a firm to control inventory costs?
implementing a just-in-time inventory control method
When an employee leaves the organization, the process is known as _________.
off-boarding
Industrial robots can work 24 hours a day, seven days a week with great _______.
precision
Real time is the ______ moment or the ______ time in which something takes place.
present; actual
The ______ sector generates about 85 percent of the value of the U.S. economy.
service
Among the hurdles small businesses must overcome in starting to operate globally are:
- bureaucratic paperwork - understanding cultural differences - difficulty finding financing
Managers must recognize that motivating individuals today requires:
- familiarity with a variety of cultures from around the world - that generations have different cultures - understanding of different cultures within a country
Leaders in traditional organizations who direct employees are likely to:
- give specific assignments - explain routines - provide performance feedback
All organizations require the following:
- information management - capital
Top management sets the vision for the organization and may work with others to establish a mission statement that outlines its
- product or service offering - self-concept
Increased flexibility in scheduling has become an important benefit for employers to offer because of:
- the increase in two-income families - the increase in single parent homes
A benefit of exporting goods such as snowplows and sand to the Middle East is that:
- the product may be used differently than in the U.S. - there is likely to be less competition
Companies may want to retain older, more experienced workers because:
- there are few qualified workers able to do those jobs - they are able to train new workers to do their jobs - they could transfer their knowledge to younger workers
Ending a partnership can be difficult because of problems deciding:
- when a partner can retire - the worth of a retiring partner's share - how to distribute assets
An additive manufacturing process that creates a product one layer at a time using a nozzle similar to those in inkjet printers is:
3D printing
_________ ratios tell us how effectively management is turning over inventory.
Activity
The study that asked workers to rank a list of job-related factors in order of what motivated them most was a new direction taken by:
Frederick Herzberg
______ ______ involves a foreign company producing private-label goods to which a domestic company then attaches its own brand name or trademark.
contract; manufacturing
Less need for policy manuals, organization charts, and formal controls is a sign of shared values in a:
corporate culture that emphasizes service to others
A partnership where all owners share in operating the business and in assuming unlimited liability for the business's debts is a:
general partnership
A(n) ______-______ ethics code creates an environment which supports ethically sound behavior by stating an organization's guiding values, shared responsibilities, and accountability.
integrity-based
Using an Internet-focused strategy, operations managers are outsourcing design, production, and shipping to other firms. This process is called a(n):
inter-firm process
Careful control of a firm's __________costs allows it to maintain correct levels of stock and product.
inventory
________ is the process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other organizational resources. (Enter one word in the blank.)
management
An organization whose function is to serve a societal need rather than make a profit for its owners is a(n) ______ organization.
nonprofit
When a firm reduces errors before and after delivery to the customer and thus delivers what the customer wants, the firm is said to exemplify the definition of _________.
quality
Marketing ________ helps to identify what products customers have purchased in the past, current purchasing patterns, and future wants.
research
MRP is a computer based operations management system that uses ______ to make sure that needed parts and materials are available at the right time and place.
sales forecasts
A loan backed by collateral, something valuable like property, is called a __________ loan.
secured
The resources of land, labor, capital, entrepreneurship, and knowledge are:
the factors of production
The global environment affects all of the other environmental influences (such as the economic, legal, and social environments) because:
the increase in free trade among nations and technological changes have created globalization and increased competition
Corporate social responsibility is a business's concern for:
the welfare of society
The practice of buying goods and services now and paying for them later is termed __________ __________.
trade credit
The use of government regulations to limit the import of goods and services is called:
trade protectionism
An important decision to be made while designing a responsive organization is about the size of the span of _______.
control
Identify some of the job titles that are considered contingent workers.
- Temporary workers - Independent contractors
Which of the following are considered examples of geographic segmentation?
- by city - by region - by states
Examples of fringe benefits that provide additional compensation to employees beyond wages include:
- sick days - health insurance - paid vacation
If an organization temporarily borrows its specialists from different functional areas to accomplish a common project, it is implementing what type of organization?
Matrix organization
The information and analysis that comes from managerial accounting is used to ______.
assist managers inside the organization with their decision making
When the government makes almost all economic decisions and owns almost all the major factors of production, the country is considered to be under the political system called _______.
communism
The ________ market consists of all the individuals and households that want goods and services for personal consumption.
consumer
The _________ of _________ _________ measures the cost of merchandise the firm sells or the materials and supplies used to manufacture them for sale.
cost; goods sold
Arrangement of resources, including people, to most efficiently produce goods and services is referred to as ________ ________.
facility layout
The definition of _____ states: the broad, long-term accomplishments an organization wishes to attain.
goals
The personal satisfaction you feel when you perform well and complete goals is an example of a(n) ________ reward.
intrinsic
The definition of ______ ______ states: a partnership in which two or more companies, often from different countries, join to undertake a major project.
joint venture
When two or more companies, often from different countries, join together to take on a major project it is called a:
joint venture
An S corporation has the liability protections of a corporation but is taxed:
like a partnership or sole proprietorship
Developing products and promotions to please large groups of people is ________ marketing.
mass
A low cost, efficient way for companies to connect with specific groups and inform them of corporate social responsibility efforts is ______ ______
social media
The economic system based on the premise that some, if not most, basic industries should be owned by the government so that profits can be more evenly distributed among the people is called _______.
socialism
The idea that some basic businesses such as steel mills, coal mines and utilities, should be owned and controlled by the government is indicative of a _______ economic system.
socialist
The information gathered from comparing an employee's work to an established _________ is a performance appraisal.
standard
People learn their organizational ______ from observing the standards, values, and behaviors of leaders and other employees.
standards
The market price is determined where the _______ curve intersects _______ the curve.
supply; demand
Managing a small business became relatively easy with the advent of inexpensive personal computers. Inexpensive computer systems and off-the-shelf or even free, open-source software make it easy for the small business manager to:
- follow the daily sales and expenses - manage customer records
Select the steps in financial planning. (Select all that apply)
- forecasting short term needs - establish financial controls - develop budgets
Written ethics codes can be categorized as
- integrity-based - compliance-based
Monetary policy consists of the Federal Reserve's management of the:
- interest rates - money supply
Which three activities are part of the function of accounting?
- interpreting financial transactions - classifying financial transactions - recording financial transactions
The goal of operations management is to:
- keep operations running efficiently - create a good experience for the customer
Franchisors often use technology to meet the needs of both their customers and their ______ because technology makes communication faster and more widespread.
franchisees
The control function of management (select all that apply):
- measures performance relative to the planned objectives and standards - takes corrective action when necessary - rewards people for work well done
Uses of sensors to control manufacturing processes include:
- measuring humidity - the measurement of the thickness of material
Economists agree that there are four different degrees of competition within free markets. They include:
- monopolies - perfect competition - oligopolies
The roles and responsibilities of HRM professionals have evolved primarily because:
- organizations recognize that employees are their ultimate resource - changes in the law have rewritten traditional practices
All of the techniques sellers use to inform people about and motivate them to buy their products or services is called:
promotion
Today's trend is to expand the span of control because:
- organizations save by reducing the number of middle managers - the workforce is better educated at all levels
People over 65 have become one of the ________ growing segments of the U.S. population.
fastest
Mixed economies:
- exist when the distribution of resources involves elements from more than one economic system - have elements of more than one system
It's possible for a business to increase its sales and profits yet still suffer _________ flow problems.
cash
Employees at all levels often resist _______ because they are used to doing their jobs in ways they know.
change
The principle of organizational structure where one person is at the top and the other managers are ranked sequentially from the top down is called:
hierarchy
According to a recent study, offering low-cost offices with basic services to new businesses in the early stages of development results in an 87% success rate of ______ graduates.
incubator
A difficult task is measuring and rewarding _________ performance on teams while at the same time rewarding team performance.
individual
Many brick-and-mortar companies must pay attention to the new competition from the ________ because now consumers can search the world.
internet
The effects of legislation on human resource professionals is important because:
legislation affects all areas of human resource management
What type of ratios measure the degree to which a firm relies on borrowed funds in its operations?
leverage
In a general partnership, all partners share the responsibility for operating the business and assume ______ for the business's debts.
liability
The definition of ______ states: a global strategy in which a firm allows a foreign company to produce its product in exchange for a fee.
licensing
The process used to accomplish organizational goals through planning, organizing, leading, and controlling organizational resources is ________.
management
Role-playing, watching films and lectures, and solving cases are examples of _________ _________ programs.
management development
Employees who get things done using an organization's financial resources, information, equipment, and workers are:
managers
A licensor may compete by charging a royalty fee to a licensee for the right to ______ its product or use its trademark to a ______ company.
manufacture; foreign
Technological changes have had more of an effect on the _______ sector when compared to the _______ sector.
manufacturing; service
The ________ sector has lost more jobs due to technological changes than the ________ sector.
manufacturing; service
The factors that go into a marketing program: product, price, place, and promotion, are called the ________ mix.
marketing
An inexpensive ______ ______ ______ can help you determine where to locate your business, whom to select as your target market, and what is an effective strategy for reaching it.
marketing research study
Methods of structuring organizations to produce large amounts of goods is _______ ______
mass production
The result of two firms joining to form one is called a(n):
merger
When two firms join together to form one new company, it is called a(n) ______.
merger
According to Maslow's Hierarchy of Needs, after you have eaten, you are no longer ________ to find food.
motivated
Job enrichment focuses on enhancing the elements most closely related to Herzberg's ______ or higher level needs as defined in his theory.
motivators
The definition of ________ states: specific, short-term statements detailing how to achieve the organization's goals.
objective
Termination of a partnership is difficult without a(n) ______ agreement.
partnership
The first era in marketing was a focus on producing as much as possible because of high demand. This was termed the ________ era which was followed by the selling era, the marketing concept era and finally the customer relationship era..
production
The process of gathering information and deciding who should be hired is called:
selection
An advantage of a ________ organization structure is that lower level employees have authority to respond more quickly to customer needs.
tall
Marketers use age, education level, income, and taste to ________ markets.
target
A corporation is a legal ______ with authority to act and have liability separate from its owners.
entity
In a recent speech, House Representative Chavez called for less government regulation of business because regulation reduces profits and "private business owners pursuing wealth generate jobs." It is clear that Representative Chavez:
believes free markets provide incentives for businesses
The investigation of consumer thought processes at each stage in a purchase in order to determine the best way to help the buyer buy is called:
consumer behavior
Job enrichment theory is based on the higher level motivators of which theorists?
- Frederick Herzberg - Abraham Maslow
Which statements are true regarding trade credit? (Select all that apply)
- It is used by large and small businesses - It is usually more convenient than bank loans - It is the most widely used source of short-term funds
Freedom of ownership is part of the ______ and ______ environment.
- economic - legal
The definition of _______ states: choosing among two or more alternatives.
decision making
The _________ statement summarizes profit (or loss), costs, and expenses over a specific period, which may be a week, a month, or a year.
income
Managerial accounting is used to provide information ______.
inside the firm
The hurdles to success are higher and more complex in global markets than in domestic markets. Such hurdles include ______ forces, economic and financial forces, (political) legal and regulatory forces, and physical and environmental forces.
sociocultural
One of the most notable advantages of an online franchise is
there is no brick-and-mortar real estate cost.
An independent entity whose purpose it is to oversee cross-border trade issues and global business practices is called the
world; trade; organization
Short-term forecasts generally cover up to a ______.
year
Examples of a problem solved by operations management planning as it relates to manufacturing include:
- facility location - inventory control
A goal for many companies striving for high-quality products is "zero defects" because:
-their customers are happier with their products -fewer defects means less material wasted doing it over
List the steps in the production process with the first step at the top.
1. Inputs 2. Production Control 3. Outputs
True or false: Partnerships are less likely to survive than sole proprietorships.
False
True or false: Social responsibility and ethical problems exist primarily in the U.S. because we have more laws about those problems.
False
True or false: The key to success for companies in a capitalist economy is to remain inflexible during times of change.
False
What motivated the unethical behavior of real estate agents, lenders, and borrowers that led to the financial crisis of 2008?
Greed
A firm that has a marketing department organized geographically and a production process organized by function has which type of departmental structure?
Hybrid
Feeling personal satisfaction because you perform well is which type of reward?
Intrinsic reward
Minimizing government interference with the free exchange of goods and services can help developing countries. Why?
It encourages entrepreneurs to start businesses that create jobs and wealth.
______ ______ is finding the right information, keeping information in a readily accessible place, and making the information known to everyone in the firm.
Knowledge management
______ is creating a vision for others to follow, establishing corporate values and ethics, and transforming the way an organization does business in order to improve its effectiveness and efficiency.
Leadership
________ manufacturing refers to the production of goods using less of everything.
Lean
When it comes to getting involved in international business what are the three strategies that require the least amount of commitment and effort?
Licensing, exporting, franchising
_________ ratios measure a company's ability to turn assets into cash to pay its short-term debt.
Liquidity
______ owned businesses are growing at more than the national rate.
Minority
Who sets the standards of right and wrong as defined by ethics?
Society
While there are incentives to work hard in the private sector for capitalist, socialist, and mixed economies, there is little incentive to work in a ______ economy.
communist
The guiding principle of free economic exchange is ______ ______ theory.
comparative; advantage
Changes in the technological environment create increases in world wide _____ in all sectors of the economy, creating exciting challenges for future leaders.
competition
Tremendous career opportunities exist in operations management as manufacturing and service companies attempt to remain ________ in the global market.
competitive
_______-_______ ethics codes emphasize preventing unlawful behavior by increasing control and penalizing wrongdoers. _______-_______ ethics codes define an organization's guiding values, create an environment that supports ethically sound behavior, and stresses shared accountability.
compliance-based; integrity-based
An accountant's time is freed up to do more important tasks such as financial analysis due to the assistance provided by using ______.
computerized accounting programs
In order to be a quality organization, a firm must:
consistently produce what the customer wants
Gen Xers, Millennials, and Gen Z expect change to be the main _________ in their lives.
constant
Studying the thought processes people use to make buying decisions and the factors that influence their choices is ________ behavior.
consumer
Sometimes a company is willing to spend millions to move their facility from one location to another in order to increase buyer traffic, drawing more potential ________.
customers
Ordering a new suit that will be made specifically for you by a tailor is an example of which process?
customization
Mark, the marketing manager of a large U.S. corporation, realizes that Afghanistan has virtually no supply of tomatoes. He conducts a study to see what quantity of tomatoes Afghan customers would be able and willing to buy at different prices. Mark is analyzing Afghanistan's:
demand for tomatoes
Governments of ______ countries can encourage trade by minimizing interference with the free exchange of goods and services.
developing
Huge differences in the wealth of relatively similar countries such as North and South Korea are an example of how different ______ and political conditions affect businesses.
economic
Changes in the _______ or _______ system in the U.S. has an effect on business.
economic; political
As the ________ slowed, marketers had to adapt by offering products that were less expensive and more tailored to consumers with modest incomes.
economy
The ______ ______ is the value of one nation's currency relative to the currencies of other countries.
exchange; rate
As organizations adopt empowerment, reduce the number of middle managers, and hire more talented and better educated lower-level employees the trend today is to ______ the span of control.
expand
Vroom's motivation theory states that the amount of effort that employees exert on a specific task is based on their ________ of the outcome.
expectations
Goods or services from the U.S. can be ______ to many countries for different uses, such as snowplows to clear sand from driveways in Saudi Arabia.
exported
Economies of scale, being closer to customers to reduce distribution costs, or being nearer to resources, are reasons why companies may spend millions of dollars to move their ________.
facilities
Relief from the stress of commuting, extra time for family activities, and low overhead expenses are all advantages of ______-______ franchises.
home-based
The activities buyers and sellers perform to facilitate mutually satisfying exchanges is:
marketing
The method of producing large quantities of goods efficiently is:
mass production
A ______ ______ is an outline of the fundamental purpose and basic philosophy of an organization.
mission statement
Money is considered to have a time value because ______.
money has more value in your possession today than at a later point in the future
The information gathered from comparing an employee's work to an established standard is:
performance appraisal
In setting a product's ________, a business needs to take into account the costs of producing, distributing, and promoting the product as well as a profit margin.
price
The four factors in the marketing mix are:
product, price, place, and promotion
Marketing started with companies selling whatever they produced without considering customer needs. This was called the ______ era of marketing.
production
The creation of finished goods and services using the factors land, labor, capital, entrepreneurship, and knowledge is:
production
The unexpected results in the first set of Hawthorne Experiments that led to the second set of experiments was:
productivity continued to increase regardless of changing conditions
Productivity in the service sector is difficult to measure because new technology adds to _______, but not necessarily the _______ of the service produced.
quality; productivity
Calculating and interpreting financial ratios developed from the firm's financial statements is called:
ratio analysis
The set of activities for obtaining the right number of qualified people at the right time to fill the needs of the organization is:
recruitment
What is the term for all resources that come into the firm from operating activities?
revenue
The process of gathering information and deciding who should be hired, under legal guidelines, in the best interest of the organization and the individual is _________.
selection
If the statement "ethics is caught more than it is taught" is true, then management facilitates this by:
setting a good example
A _________-term forecast is usually for one year or less.
short
Directive leaders are often needed in organizations with workers who lack ________ and ________ needed to do the job.
skill; experience
Cash flow analysis is especially important for which of the following?
small businesses
Managerial incompetence and inadequate financial planning are two common reasons for ______-______ failure.
small-business
As a result of changes in ______ we are able to communicate with people around the world instantaneously.
technology
Marketing is the activities, sets of institutions, and processes that add ______ for customers.
value
A company's ________ is a broad explanation of why the organization exists and where it is trying to go.
vision
Whether employees are fired, resigning, or retiring, some of the things that must be done include:
- managing payments - conducting exit interviews - returning company property
The concern businesses have for the welfare of society, not just for their owners is:
- based on a commitment to integrity and respect - corporate social responsibility
Entrepreneurs must recognize that they need competent and motivated employees. Since they can't compete with larger firms' pay and benefits, they need to:
- be respectful of employees' opinions - delegate more often - provide more challenging opportunities to learn
Select those items that are considered to be a capital expenditure. (Select all that apply)
- buildings and equipment - land - patents and copyrights
Centralized authority occurs when decision making is done:
at the top level of management
The dimension of social responsibility known as ______ responsibility includes everything from hiring minority workers to making safe products, minimizing pollution, using energy wisely, and providing a safe work environment.
corporate
The actions of a fellow franchisee will affect your franchise. This is known as the ______ ______.
coattail effect
Global trade offers opportunities because there are so many potential ______.
consumers
A major disadvantage of the corporate form deals with the tax situation called ______ taxation.
double
The study of how resources are distributed for production of goods and services within a social system is called _______
economics
Contract manufacturing is a type of outsourcing when a ______ company produces private-label goods which a ______ company then markets under its own brand name.
foreign; domestic
The ______ organization details lines of responsibility, authority, and position. It is the structure shown on organization charts.
formal
Nonprofit organizations are:
founded to make a contribution to the welfare of society
An agreement that gives a business the right to use a business's name and sell a product or service in a given area is a(n):
franchise
The ______ environment of business impacts all of the other environmental influences.
global
A company that has socially responsible human resources management is
likely to perform better financially
A firm that puts something of value, like a piece of property, up for collateral is applying for a(n) __________ loan.
secured
Corporate social responsibility (CSR) is based on the belief that businesses should be concerned with the welfare of ______ and not only of their owners.
society
The easiest type of business entity to form is a
sole proprietorship
A culture that focuses on the ________ and views relationship building as a waste of time is a low-context culture.
task
A culture that focuses on building personal relationships and _________ before focusing on tasks is a high-context culture.
trust
______ are insiders who report illegal or unethical behavior (answer is one word).
whistleblowers
Which of the following are true regarding the process of forming a corporation.
- The articles of incorporation must be filed in the state in which the company will be incorporated - The bylaws of the corporation describe how the firm is to be operated
The amount a business borrows and for how long depends on which of the following? (Select all that apply)
- The type of business and industry it is in - How quickly it can resell the merchandise it purchases with the funds
Which of the following are important reasons to do business globally?
- There are many potential customers in other countries - There are more people and countries in the world markets
McGregor's Theory X and Theory Y identified assumptions managers have about workers. Select the statements below that represent a Theory X manager's beliefs.
- Workers are motivated by fear and punishment - Workers prefer to avoid responsibility
The result of the increase in the rate of change in the business environment from causes such as natural disasters and global competition has been that companies must:
- adapt to new technologies - change more quickly than ever before
The Age Discrimination in Employment Act:
- allows mandatory retirement in the airline industry - bans mandatory retirement in most organizations
Costs associated with terminating employees include:
- lost investment in training and pay - potential for costly wrongful discharge lawsuits
The tasks of knowledge managers include
- making information known to everyone in the organization - finding the right information - keeping information in a readily accessible place
Which are considered to be the working areas of accounting? (Select all that apply)
- managerial accounting - government and not-for-profit accounting - tax accounting - financial accounting - auditing
The production process should be a sequence of steps starting with inputs, followed by production control, and ending with:
- outputs - finished products
Equity theory states that employees:
- perceptions of fairness affect motivation - compare their inputs and outputs to those of others in similar positions - try to maintain equity between what they put into a job and what they get out of it
Assets, liabilities, and owners' equity are the major accounts listed on ______.
a balance sheet
The relationship among assets, liabilities, and owners' equity is a fundamental concept in accounting known as the _______ equation.
accounting
A(n) ______ can benefit both the trainee and the business owner by hiring the trainee to learn small-business management while assisting the owner in getting daily work done.
apprentice
The ________-to-________ market includes manufacturers, intermediaries, hospitals, schools, charities, and the government
business; business
In a free market, prices are determined by:
buyers and sellers negotiating in the marketplace
___________ ___________ are a form of financing where the merchant accepts payment immediately from the bank and the customer agrees to repay the bank.
credit cards
Groups of employees from different departments who work together on a long-term basis and are empowered to make decisions without management approval are:
cross-functional self-managed teams
The goal of operations management in service industries is ________ satisfaction.
customer
Jordan added racing stripes and high quality speakers to his new car to ________ it.
customize
In any business, funds come into and go out of a business. What business function acquires funds for the firm and then manages those funds on a day-to-day basis?
finance
Remaining ______ is the key to an organization's success in changing times.
flexible
A schedule that allows employees to balance work-life demands is:
flextime
A(n) _________ plan allows employees to adjust to work-life demands.
flextime
Buyers and sellers negotiate prices for goods and services through supply and demand in a(an) ______ ______ economy.
free; market
Companies like Ford are using self-managed teams to improve productivity by allowing teams enough _________ to solve problems and meet objectives.
freedom
Businesses provide help to the communities they are in by helping to provide ______, services, and jobs.
goods
Nike suffered criticism due to its ______ ______ violations in their overseas manufacturing facilities.
human rights
Firms may use a combination of departmentalization techniques to create a(n) _______ form.
hybrid
Millennials generally don't remember a time without the _________.
internet
Companies strive for zero defects in making their products because
it increases customer satisfaction
The _______-_______-_______ inventory method is designed to keep a minimum of parts, supplies, and other materials on hand just in time to go on the assembly line.
just-in-time
To minimize costs many firms employ a production process in which a minimum of inventory is kept on the premises and parts, supplies, and other needs are delivered _______-_______-_______ to go to the assembly line.
just-in-time
LLC's are considered to have operational flexibility because while they must submit articles of organization,they are not required to:
keep minutes or hold annual meetings
Service organizations, such as hospitals and schools, have high employee costs categorizing them as _________ _________.
labor intensive
Free education, free health care, and more free time are some benefits of _______ while a brain drain is one of its most negative outcomes.
socialism
ISO is a worldwide nongovernmental federation of national ________ bodies.
standards
According to Ouchi's Theory Z, Type _________ management is achievement oriented.
A
According to Ouchi's research about the effect of national culture on organizations, Type _________ management relies on individual decision making and achievement.
A
Kendra is considering opening a new business. While writing the business plan, she is answering the following questions: What external success factors affect the industry? How does her business measure up to competition? What can my bakery do to survive and prosper during a recession? What was Kendra performing?
A SWOT analysis
______ leadership is a leadership style that involves making managerial decisions without consulting others.
Autocratic
Which of the following theories of motivation is the basis for Management by Objectives?
Drucker's Goal-setting theory
The idea that setting ambitious, but attainable goals can motivate workers and improve performance if the goals are accepted and accompanied by feedback and facilitated by organizational conditions is at the heart of which motivation theory?
Drucker's goal-setting theory
______ is the study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various competing groups and individuals.
Economics
_________ theory states that an individual will not put forth effort without first evaluating their ability to perform the task and the value they place on the reward.
Expectancy
In the long run, some unethical investors have successfully added to the bottom line of their companies.
False
True or false: Designing machines to do multiple tasks so they can produce a variety of products is called computer-aided design.
False
Net income is ______.
all revenue minus all expenses and taxes
Frederick Taylor wrote:
The Principles of Scientific Management
Mark recently started a small consulting firm. He is drafting a detailed written statement that describes the nature of the business, the target market, the advantages the business will have over competition, and the resources and qualifications of the owner(s). Mark is writing a(n) ______ ______.
business plan
Patterns of the rising and falling of economies over time are known as ______ ______.
business; cycles
Adam Smith's book about capitalism is known as The ______ of ______.
Wealth; Nations
List the steps in the accounting cycle from beginning to end. Place the first step on top and list them down to the last step on the bottom.
- Analyze source documents. - Record transactions in journals. - Transfer journal entries to a ledger. - Take a trial balance. - Prepare financial statements. - Analyze financial statements.
True or false: The main advantage of a sole proprietorship is ease of start up.
True
True or false: Gross profit is what a company shows on their income statement as the bottom line figure.
False
True or false: ISO is a governmental body.
False
True or false: Licensing is a contractual agreement whereby someone with a good idea for a business sells others the rights to use the business name to sell a product or service in a given territory in a specified manner.
False
The "Principles of Scientific Management" was written by:
Frederick Taylor
Instead of selling your product throughout the United States, you might concentrate on one or two regions. This is an example of which type of segmentation?
Geographic
_________ and nonprofit accounting supports organizations whose purpose is not generating a profit, but serving ratepayers, taxpayers, and others according to a duly approved budget.
Government
In free markets the price of a product depends on how much consumers are willing and able to buy and how much the producers are willing and able to sell. What does the market price depend on in a free market?
Supply and demand
Mediating trade disputes among nations and overseeing cross-border trade issues and global business practices are functions of:
The World Trade Organization (WTO)
The segmentation method that develops or finds products for small, but profitable market segments is:
niche marketing
Employers must know and act in accordance with the legal rights of their employees or risk costly _________ _________.
court cases
______ behavior can add to the bottom line while ______ behavior can ruin companies financially.
ethical; unethical
The definition of ______ states: an attitude that your own culture is superior to other cultures.
ethnocentricity
U.S. businesspeople are often accused of ______, an attitude that your own culture is superior to other cultures.
ethnocentricity
The value of one nation's currency relative to currencies of other countries is the:
exchange rate
Trade ______ is the use of government regulations to limit the import of goods and services such as import tariffs and quotas.
protectionism
Consumer behavior is the study of people's ________ decisions and the factors that influence those decisions.
purchasing
Finding the highest quality material resources, the best suppliers, and then negotiating the best prices are all responsibilities of someone in a ________ role.
purchasing
The present moment or the actual time in which something takes place is called _______ _______
real time
One of the challenges for future leaders is that the information-based global revolution is moving the economy in new directions that:
require innovation to succeed in global markets
How much money a firm will borrow often depends on how long it takes to convert inventory into __________.
revenue
The monetary value of what a firm received for goods sold, services rendered, and other payments is termed ______.
revenue
The monetary value of what a firm received for goods sold, services rendered, and other payments is termed __________.
revenue
A problem in developing effective compensation for teams is that:
rewarding individuals erodes cohesiveness
Although entrepreneurs expect to succeed, they must be realistic and recognize that they are taking a(n) ________ because many small businesses also fail every year.
risk
Stockholders are ______ from the managers and employees of the firm because they are not actively involved in the operations of the firm.
separate
Sociocultural, competitive, economic, global, and technological influences are all factors influencing:
the marketing environment
Which percentage of the value of the U.S. economy is generated by the service sector?
85 percent
True or false: Bribery is a business practice unanimously held as an ethical violation across the globe.
False
True or false: The term stakeholders refers only to those who own stock in a company.
False
What agreement created a free-trade area among the United States, Canada, and Mexico?
North American Free Trade Agreement (NAFTA)
Which of the following are considered to be a major hurdle to successful global trade?
Sociocultural differences
What is the term for all of the groups that stand to gain or lose by the policies and activities of a business and whose concerns the business needs to address?
Stakeholders
Challenges for human resource managers today include:
a shortage of workers in areas such as computer technology
A systematic evaluation of an organization's progress toward implementing socially responsible and responsive programs is called:
a social audit
Job seekers should recognize that small businesses in the U.S.
account for about 1/3 of the total U.S. exports
A human resource inventory should include which of the following types of information about employees.
- Languages spoken - Demographics such as age and education level - Specialized skills
A mission statement outlines the organization's fundamental purposes. It should address which of the following?
- Organization's self concept - Customer needs - Nature of the product or service
Select assumptions made by a Theory Y manager about people.
- People seek responsibility. - People like to work.
Management development programs include:
- Understudy positions - Job rotation - On-the-job coaching
Select the characteristics of an intrapreneur.
- a creative person who works within a corporation - someone who uses company's resources to launch new products - he or she generates profits by leveraging a firm's human financial and physical resources.
Which are steps in the accounting cycle? (Select all that apply)
- analyze transactions - prepare a trial balance - record transaction in the journal
It is better to go to banks instead of family and friends for business loans because ______. (Select all that apply)
- banks can assist the business in analyzing problems - loans from family can hurt family relationships
Workers who have reached retirement age may want to continue to work:
- but need part-time schedules - because they enjoy it - because they can't afford to retire
Advantages of using a credit card in small business financing include that ______.
- cards are accepted in many places - they save time
Determinants of how much money a firm should borrow include:
- cash flow forecasts - speed with which they can turn the borrowed funds into cash
Users of managerial accounting information include ______. (Select all that apply)
- department managers - the Chief Financial Officer
The elements of the business environment include the:
- economic and legal environments - technological environment - competitive environment
The changes in the U.S. workforce that create challenges for human resource managers include:
- employees who want leisure time - more single-parent homes - new workers who are undereducated
LLCs do have to submit articles of organization and an operating agreement, but do not have to:
- file written resolutions - keep minutes - hold annual meetings
A business tries to earn a profit by providing ______ and ______ that satisfy people's needs and wants.
- goods - services
On a balance sheet, assets may include ______. (Select all that apply)
- goodwill - intangible resources - tangible resources
In socialism:
- individuals own some smaller businesses and property - government owns and operates some basic industries such as steel mills, utilities, or transportation
Which three components make up the fundamental accounting equation?
- liabilities - owners' equity - assets
The role of the operations manager is to ensure products are delivered:
- on budget - on time - to specifications
Select reasons why people become entrepreneurs.
- opportunity - independence - profit
Accepting credit cards can be useful to small businesses by
- providing the business with payment more quickly - providing ease of payment for customers
Many corporate executives reported that they use social media to communicate their socially responsible activities to customers because it:
- reaches broad and diverse groups - allows them to reach specific groups more directly - allows them to connect directly with customers
Operating expenses include which of the following?
- rent - utilities - supplies
During the second set of Hawthorne Experiments,
- researchers thought they had failed due to the unexpected results - productivity continued to increase regardless of changing conditions - researchers realized there had to be another factor affecting productivity
Threats to global trade include
- terrorism - rogue states - income inequality
Human resource managers perform several important functions so the organization has the people it needs to achieve its goals. They include:
- training and development - developing compensation systems - recruitment and selection
Place the three steps in the financial planning process in order from beginning to end with the first step at the top.
1. forecasting the firm's financial needs 2. developing budgets 3. establishing financial controls
The U.S. free trade agreement with Costa Rica, the Dominican Republic, El Salvador, Guatemala, Nicaragua, and Honduras is ______.
CAFTA
The North American Free Trade Agreement (NAFTA) created a free-trade area among the United States, ______ , and ______
Canada; Mexico
What is the political and economic system in which the government makes almost all economic decisions and owns almost all the major factors of production, as well as choosing religion, where to live, and jobs for its citizens?
Communism
Match the goals with the type of business person.
Entrepreneur- Desire to grow the business and generate wealth. Micropreneur- Desire to remain small and balance lifestyle with work.
______ organization structures respond to customer demands faster because its lower-level employees have authority and responsibility for making decisions.
Flat
__________ funds are typically needed to manage day to day needs of a business as well as acquiring needed inventory.
Operating
Primitive transportation and storage systems that make local distribution ineffective if not impossible, the lack of clean water, and the lack of effective sewer systems are all examples of what type of barrier?
Physical and environmental
Distribution in many developing countries is difficult because of the lack of reliable transportation infrastructure due to natural disasters. This is an example of what type of forces affecting global trade?
Physical and environmental forces
________ is the creation of finished goods and services using land, labor, capital, entrepreneurship, and knowledge.
Production
Which term describes the act of buying of all materials needed by the organization?
Purchasing
Which is a true statement about the principles of organization?
Regardless of the business size the principles are similar.
The definition of _______ analysis states: a planning tool used to analyze an organization's strengths, weaknesses, opportunities, and threats.
SWOT
The process of analyzing an organization's strengths, weaknesses, opportunities, and threats is a(n) _______ analysis.
SWOT
Which of the following facts best exemplifies the statement that "ethical problems are not unique to the United States"?
Top leaders from other countries have been charged with bribery.
True or false: Intermediaries are the middle links in a series of organizations that distribute goods from producers to consumers.
True
True or false: Most entrepreneurs do not get their ideas from a flash of inspiration; they come more from their passions or looking at problems.
True
True or false: Networking uses technology, such as a company intranet, to link organizations and their suppliers to allow them to work together for a common goal.
True
True or false: The Malcolm Baldrige National Quality Award is to honor companies that show quality in seven key areas and have customer satisfaction ratings higher than competitors.
True
True or false: The financial crisis that began in 2008 was due, in large part, to financial managers making poor investment decisions and engaging in risky financial dealings.
True
True or false: There is a wider variety of careers in marketing than in most business disciplines.
True
A regional group of countries with a common external tariff, no internal tariffs, and coordinated laws to facilitate exchange among members is the definition of:
a common market
The income statement shows ______.
a firm's profit (or loss) after costs, expenses, and taxes
All consumers with unsatisfied wants and needs who have both resources and the willingness to buy are:
a market
Through the recording, classifying, summarizing, and interpretation of financial events in an organization, the function of ______ helps managers make good decisions about the firm's operations.
accounting
What is considered to be the "language of business"?
accounting
To keep track of daily sales, expenses, profits, inventory control, customer records, and payroll a small business needs a good
accounting system
The ratios that measure the effectiveness of a firm's management in turning over inventory are called ______.
activity ratios
3D printing is a production process also known as ________ manufacturing.
additive
According to a survey of recent college graduates, opportunities for _________ are important in attracting and retaining employees.
advancement
In a franchise, having management support from the franchisor is a(n) ______ whereas the coattail effect is considered a ______.
advantage; disadvantage
A unique government creation that looks like a corporation but is taxed like sole proprietorships and partnerships is:
an S corporation
When the government spends money on such projects as roads and bridges, it is expected that the money will trickle down to the consumers eventually leading to:
an increase in consumer spending
Understanding where to locate your business, who your target market is, and how to reach them, can be accomplished through
an inexpensive market research study
The belief that your work makes a difference and gives you satisfaction is an example of:
an intrinsic reward
The definition of a business is:
an organization that seeks to provide goods and services to others while operating at a profit
The _________ _________ provides information about a company's financial status to company managers, owners, government agencies, and the general public.
anual report
A(n) ______ is hired to assist the owner of a small business while gaining experience.
apprentice
In _________ programs, a trainee works alongside an experienced worker to master the skills and procedures of a craft, such as carpentry.
apprentice
David opened his own bicycle shop 30 years ago, and although he enjoyed his work, he needed more free time. When Josie requested to work as an apprentice, David was very willing. Before long Josie was able to run the store without any help. This is an example of how:
apprenticeships can benefit both the business owner and the apprentice
In a free market, the prices of products exchanged in the market:
are negotiated by buyers and sellers
An advantage of the separation of ownership from management in corporations is that the company can raise money from investors but the investors:
are not involved in daily operations
McGregor's theory states that managers motivate workers based on the manager's ________ about workers' attitudes toward work.
assumptions
State governments will use marketing in order to:
attract new business and tourism
The key working areas of accounting include managerial accounting, financial accounting, tax accounting, government and nonprofit accounting, and _________.
auditing
Self-managed teams improve productivity because the members appreciate having the ________ to control their own work.
autonomy
Top officials in countries like Japan, South Korea, and China have faced legal charges of influence peddling and ______ charges, which serve as examples of the unethical behavior that U.S. companies face in overseas markets.
bribery
When a company allocates the use of specific resources throughout the firm based on a financial plan indicating management's expectations, then the company is using a(n) __________ as the basis for making decisions.
budget
An organization that provides goods and services while seeking to operate at a profit is a(n) ______.
business
A(n) ______ is a detailed written statement that describes the nature of the business, the target market, the advantages the business will have over competition, and the resources and qualifications of the owner(s).
business plan
The periodic rises and falls that occur in economies over time are called _______ _______.
business; cycles
A market consists of consumers with unsatisfied wants and needs who have both resources and the willingness to:
buy
The quantity of products that people are willing to _______ at different prices at a specific time describes the demand curve.
buy
In addition to the articles of incorporation, a corporation has ______, which describe how the firm is to be operated from both legal and managerial points of view
bylaws
A firm that makes a major investment in a long-term asset has made a(n) _________ expenditure.
capital
Employees at all levels often resist ________ because they are used to doing their jobs in ways they know.
change
The evolving business environment requires the management of _______ in the organization structure to respond to it.
change
Ethics codes that emphasize control and punishment of wrong-doers are ______-______ ethics codes.
compliance-based
Individuals who are part-time, temporary, or seasonal workers are classified as:
contingent workers
The dimension of social responsibility, which includes certain aspects such as producing low-emission vehicles, is called:
corporate responsibility
What term describes the cost of merchandise the firm sells?
cost of goods sold
More personal ______ service and the ability to respond quickly is an advantage for small businesses.
customer
The quantity of products that people are willing to buy at different prices at a specific time is called:
demand
The statistical description of a population using characteristics such as age, gender, and income is ______.
demography
Age, education level, income, and taste are all examples of how consumer groups:
differ greatly
Export Assistance Centers work with small and medium-sized businesses who are hesitant to do:
direct exporting
The Civil Rights Act of 1964 made it illegal to _________ against certain groups of people called protected classes.
discriminate
The Civil Rights Act of 1964 outlawed _________ in employment based on sex, race, creed, religion, or national origin.
discrimination
Free-flowing communication and information throughout an organization are the key to successful:
empowerment
A(n) ______ assumes risk when deciding to start and run a business.
entrepreneur
A(n) ______ is someone accepting the risk of starting and running a business.
entrepreneur
Being self-directed, self-nurturing, action-oriented, and tolerant of uncertainty are all considered characteristics of a(n):
entrepreneur
A(n) ______ team is a group of experienced people from different areas of business who join together to form a managerial team with the skills needed to develop, make, and market a new product.
entrepreneurial
Individuals who possess such attributes as being self-directed, action-oriented, and tolerant of uncertainty can make excellent ______ like Bill Gates and Steve Jobs.
entrepreneurs
Local community college classes are a good place to start to learn about business and ______.
entrepreneurship
The many small choices we make daily about working or goofing off, using company phones and computers responsibly, and following safety rules, make it clear that ______ decisions start with each individual.
ethical
The many small choices we make daily about working or goofing off, using company phones and computers responsibly, and following safety rules, make it clear that _______ decisions start with each individual.
ethical
A financial institution or commercial bank that purchases a business' accounts receivable at a discount and then keeps what they collect is a(n) ______.
factor
The function of acquiring and managing funds within a firm is referred to as __________.
finance
A summary of all the financial transactions that have occurred over a particular period is referred to as a ______.
financial statement
The best way to understand a firm's financial health and stability is to look at its ______.
financial statements
The key to success is remaining _______ in changing times.
flexible
A ______ is a contractual agreement whereby someone with a good idea for a business sells others the rights to use a business name and sell a product or service in a given territory in a specified manner. (Enter one word in the blank.)
franchise
Ed has decided to purchase and follow a business format by becoming a franchisee. The ______ ______ he will sign gives him the right to use the business name and sell the products of the firm.
franchise agreement
______ trade is the movement of goods and services among nations without political or economic barriers.
free
In economies based on _______ _______ principles, businesspeople became the wealthiest people in society.
free; market
Mark, Cal and Aidan have decided to form a business where all owners will share in operating the business and in assuming liability for the business debts. They are most likely forming a(n) ______ partnership.
general
Gaining financing, knowing how to get started in exporting, and navigating bureaucratic paperwork are major hurdles to consider when getting started in ______ business.
global
The definition of _______ states: the broad, long-term accomplishments an organization wishes to attain.
goal
________ are long-term accomplishments an organization wishes to attain. ________ are short-term statements detailing how to achieve the organization's goals.
goal; objective
Problems arising from differences in antitrust rules, labor relations, patents, copyrights, taxes, and other issues are all considered examples of ______ and regulatory forces within a global market.
legal
__________ means to raise funds through borrowing to increase a firm's rate of return.
leverage
Of all the strategies for reaching global markets, ______ offers the least amount of commitment, control, risk, and profit potential.
licensing
Production workers, distribution people, and marketing personnel who are responsible for directly achieving organizational goals are called _______ personnel.
line
Those directly responsible for achieving the organization's production goals by issuing orders and enforcing discipline are ______ managers.
line
Four ways to structure an organization include line, _______ and _______, matrix, and cross-functional teams.
line; staff
What type of ratio measures a company's ability to turn assets into cash to pay its short-term debts?
liquidity ratio
When considering __________-__________ financing options a financial manager must consider the organization's financial goals and objectives.
long-term
_______ is the process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other organizational resources.
management
Franchises are expanding internationally to access additional ______ that have new customers and to increase their profit potential.
markets
When asked in a survey their reason for changing jobs:
more participants listed lack of appreciation
Debt financing refers to funds that ______.
must be repaid
The term "factors of production" refers to the:
natural, human, and financial resources used to produce goods and services
Clubs that denied membership to women became illegal in 1988 because they prevented women from having access to _________ systems open to men.
networking
Clubs that denied membership to women became illegal in 1988 because they prevented women from having access to __________ systems open to men.
networking
Developing and establishing professional contacts that can assist you in finding employment is:
networking
Using communications technology to link organizations and allow them to work together on common objectives is called:
networking
The process of finding small but profitable market segments and designing or finding products for them is called ________ marketing.
niche
A(n) ________ is a specific, short-term statement of how to achieve the organization's long-term ________.
objective; goals
The definition of ______ states: specific, short-term statements detailing how to achieve the organization's goals.
objectives
Perfect competition, monopolistic competition, _______, and monopoly are the four degrees of competition.
oligopoly
When a new employee is trained at the work site by observing an experienced worker and then doing the task, it is:
on-the-job training
The statement of cash flows reports cash receipts and disbursements related to __________, investments, and financing.
operations
Global competition grows stronger each year making the future of ________ ________ robust with career opportunities.
operations management
Corporate _______ is the dimension of social responsibility that refers to a position a firm takes or statement it makes on social and political issues.
policy
Is it more common for a firm to fail due to lack of sales or poor financial management?
poor financial management
Capitalism encourages businesses to be more efficient to compete successfully on _______ and _______
price; quality
Changes in the economy force marketers to adjust ________ and adapt their products to take into account consumers' income.
pricing
A physical good, service, or idea that satisfies a want or need is called a(n):
product
Food companies truly seem to be listening to customers who want healthy fast-food that is preservative, chemical, and antibiotic free. They are adjusting the ________ element of the marketing mix to meet customer needs.
product
The increase in farm _____ as a result of the invention of the harvester and other farm equipment has increased the world's food supplies.
production
Short-term financing is more important to a small business than long-term financing because ______.
small businesses are more concerned with funding day to day operations
______ and ______ sized businesses are often better prepared for the global market because they are able to react more quickly to opportunities.
small; medium
A systematic evaluation of a company's progress toward implementing socially responsible programs is known as a(n) ______ ______
social audit
A low cost, efficient way for companies to connect with specific groups and inform them of corporate social responsibility efforts is ______ ______.
social media
Corporate policy refers to the position a firm takes on ______ and ______ issues.
social; political
If you start and manage a landscaping business on your own, you have likely started a:
sole proprietorship
The definition of ______ states: a management function that includes hiring, motivating, and retaining the best people available to accomplish the company's objectives.
staffing
Cash receipts and disbursements related to operations, investments, and financing are reported on the ______.
statement of cash flows
Mary worked for a GM factory in Detroit all her life. Unfortunately, when GM closed the plant because of restructuring, she could not find any jobs in the automotive industry in or around Detroit. Mary would be counted as an example of:
structural unemployment
Quantities of products manufacturers are willing to sell at different prices is known as ______.
supply
An advantage of partnerships is a longer ______ rate than sole proprietorships, because they become more disciplined and the business's life is based on all the partners.
survival
A _________ accountant is trained in tax law and is responsible for preparing tax returns or developing tax strategies.
tax
An entrepreneurial ______ is a group of experienced people from different areas of business who join together to form a ______ team with the skills needed to develop, make, and market a new product.
team; managerial
Lost training costs is a factor in _________ employees.
terminating
Because of the poor publicity at a fellow franchise location, you notice that sales at your location have decreased. The impact of the poor publicity on your company is referred to as
the coattail effect
One of the advantages of working for a company instead of being an entrepreneur is that:
the company assumes the entrepreneurial risk of failure
Marketers must pay attention to the dynamic competitive environment mainly because of competition from:
the internet
According to Adam Smith, as long as farmers, laborers, and businesspeople received economic reward for their efforts, they would work hard. As a result of this self-directed desire to gain, the economy would prosper and everyone would become wealthier. Smith called this process:
the invisible hand
A challenge for human resource managers because of the change from traditional manufacturing to service and high-tech manufacturing industries is:
the need to retrain workers
Organizations reorganized to empower frontline workers so that:
they could more efficiently and effectively serve customers
An important effect of changed communication technology is that
those with fewer resources are able to compete with large companies through the internet.
The _________ value of money is the idea that money in your possession today is worth more than money that will be in your possession in the future.
time
The definition of _______ _______ states: highest level of management, consisting of the president and other key company executives who develop strategic plans.
top management
Return on equity is net income minus taxes divided by ______.
total owners' equity
Balance of ______ is the total value of a nations exports compared to its imports measured over a particular period.
trade
A productive corporate culture is one where there is mutual ________.
trust
If your company debts or damages are solely your responsibility you could be experiencing the disadvantage associated with owning a sole proprietorship called ______ ______.
unlimited liability
Because a majority of small business are rejected for traditional business loans, many ______ for short-term financing.
use credit cards
A ________ gives an organization a sense of purpose and a set of values that unite workers.
vision
Insiders, such as employees, who report concerns about a company's accounting or auditing practices are called:
whistleblowers
After working for a large auto manufacturing company for over 20 years, Silvia decided to start her own auto accessory store. While facing new challenges every day, Silvia enjoys being free to manage her company as she desires. This example illustrates:
why people take the risks of entrepreneurship
According to McGregor, Theory X managers view employees as:
wishing to avoid responsibility
To be more competitive, companies set a goal of ______ ______ in their production processes because it reduces costs due to wasted materials.
zero defects
