Business Exam

One of the functions of managerial control involves comparing the results of various business activities with the

established goals

Businesses often segment their target markets into which of the following three primary areas:

Demographic, psychographic, geographic

Which of the following venture-harvesting methods usually supports a venture's future growth and facilitates the business owner's exit:

Initiating a public stock offering

Which of the following is a reason why managers develop company objectives:

To identify business purpose

A new employee has not been coming to work on time since beginning the job a week ago. Which of the following types of remedial action would be most appropriate:

Warning

Which of the following are characteristics of tactical planning:

Short-range and specific

Which of the following questions should effective managerial planning answer:

What do we want to do?

In which way can a start-up business benefit from writing a business plan?

Define managers' roles

What do businesses need to develop to effectively assess employee performance?

Evaluation criteria

What is one question that a business must answer when identifying a potentially profitable target market?

Is the market responsive?

Which of the following should effective managerial planning do:

Reduce uncertainty

Which of the following guidelines would be the most appropriate for a supervisor to follow when administering remedial action:

Resume a normal attitude toward the employee as quickly as possible

Which of the following is an example of a company objective that might be developed by top management:

To maintain or increase market share

Which of the following is a demographic characteristic that businesses often use to identify market segments:

Type of household

Which of the following is the most effective mission statement:

We create happiness by providing the finest in entertainment for people of all ages, everywhere.

Age, ethnicity, and income are all factors when developing a target segment based on

behavior

Aaron, a small-business owner, develops an exit strategy so that his company keeps growing and prospering in the marketplace after he leaves. The exit strategy is one aspect of Aaron's

continuation plan

Company XYZ has developed a new flavor of ice cream called Hunky Chunky and has selected a target market that consists of boys, ages 7-15, who are living at home with their parents in a household that earns between $30,000 and $60,000 a year. This method of target market selection is based on

demographics

If Alisa meets her objectives, she plans to sell her company in five years. To facilitate a smooth transition for her company so it continues to grow, Alisa should

develop an exit strategy

One of the main reasons why owners develop a business plan before starting a new business is to

estimate financial needs

The part of the business plan that gives an overview of the entire document is the

executive summary

Key performance indicators used to assess business performance should align with the business's

goals and objectives

The objectives that managers develop for a business to attain are also intended to serve as operating

guidelines

Businesses realize that it is almost impossible to appeal to all customers which is why most businesses try to

identify market segments

The fundamental activity associated with the planning function of management involves

looking ahead

Identifying market segments helps a business to develop appropriate

marketing strategies

The new business owner set a goal of selling $50,000 of goods in the first six months. This is an example of a(n) __________ objective.

measurable

When an automobile company markets a van to families and a luxury sports car that appeals to single, working adults, it is engaging in ____________ marketing.

segment

To control various business activities in an effective manner, managers must first

set appropriate standards

A mission statement should be

short, specific, and understandable

Businesses identify market segments by dividing consumers into groups that have

similar characteristics

One of the purposes of developing a business plan before starting a new business is to

understand the risks involved

One of the main purposes of a business plan is to help a new business

establish objectives

Businesses develop standards for how employees should do their jobs, which are then used to examine or evaluate

. work performance

Why is it important for a business to select a target market?

To identify the most appropriate vendors

Which of the following is the first step of effective managerial planning:

Use a systematic approach to establish objectives

Establishing clearly formulated, overall organizational objectives provides a business with

direction for the business's activities