Business Final

The size of the world market is about

7 billion

The first step when facing an ethical dilemma is to ask

"Is it legal?"

Drug problems among workers is costing the U.S. economy upwards of ______ in lost work, health care costs, and even crime and accidents.

414 billion

A detailed written statement that describes the nature of the business, the target market, the firm's competitive advantages, as well as the owner's resources and qualifications is a

A business plan

One reason franchises have become so popular is that this arrangement provides the franchisee with

A nationally recognized name and product.

The concept that a hierarchy of human needs could be used to explain motivation was developed by

Abraham Maslow

As a first step in the accounting cycle, _________ involves the recording of business transactions.

Bookkeeping

A __________ is a name, symbol, or design (or combination of these) that identifies the goods or services of one seller or group of sellers and distinguishes them from those of competitors.

Brand

An entity that seeks to earn a profit by providing a good or service is known as a(n)

Business

Ezra is the manager of Outdoor Adventure Sporting Goods. During the past six months, his cash expenditures have exceeded his cash receipts. Outdoor Adventure is suffering from a(n) ________ problem.

Cash Flow

A ___________ provides a summary of cash coming into and money going out of a firm from operations activities, financing activities, and investing activities.

Cash Flow statement

Which of the following is a consumer sales promotion activity?

Contests

A production process characterized by long production runs to turn out finished goods over time is known as a(n)

Continuous process.

__________ is the accounting practice of recording each transaction in two places in the accounting journal.

Double-Entry Book Keeping

Which of the following would be a topic emphasized in a macroeconomics course?

Factors that determine how fast a nation's economy is growing.

The traditional technique used to departmentalize an organization is by

function

Costs incurred regardless of the number of units of a product that are produced or sold are called

Fixed Costs

A ___________ plan gives employees some ability to adjust hours when they work, as long as they work the required number of hours.

Flextime

In a partnership, a(n) __________ partner (owner) actively manages the company and has unlimited liability for claims against the firm.

General

A(n) __________ consists of one person at the top of the organization and many levels of managers who are responsible to that person.

Hierarchy

Autocratic leader ship is likely to be effective win

In an emergency situation

The balance sheet, the statement of cash flows, and the ______________ are three key financial statements prepared by accountants.

Income Statement

Producers of snack foods (such as candy bars or potato chips) are most likely to use a(n) _____________ distribution strategy for their products.

Intensive

What is an advantage of hiring contingent workers?

It is good strategy if the economic climate is uncertain.

Herzberg found that factors that provided the highest level of motivation were mostly associated with

Job content

The financial ratios that measure a firm's ability to pay its short-term debts are called

Liquidity ratios

Which of the following tactics would management be most likely to use during a labor-management dispute?

Lockouts

A business incurs a ___________ if its costs and expenses exceed its revenues.

Loss

__________ believed that managers were trustworthy and companies would do well if employees simply did what they were told.

Max Weber

____________ wholesalers are independently owned and take title to the goods they handle.

Merchant

Ethical behavior at work is learned by

Observing the actions of others.

A firm's marketing mix consists of 4 major components, which are generally referred to as the four

P's

The management function concerned with anticipating future trends and determining the best strategies to achieve an organization's goals and objectives is known as

Planning

Common law relies on decisions made by judges in previous cases. These earlier decisions are called

Precedent

Discount stores, supermarkets, and department stores are all common types of

Retail stores

A __________ analysis is used to help companies evaluate their internal strengths and weaknesses, and develop an awareness of external threats and opportunities.

SWOT

One of the best places for young entrepreneurs to start shopping for an SBA loan is a

Small Business Development Center.

_________ marketing is the marketing of products to groups of customers a firm decides it can serve profitably.

Target

Any debts or damages incurred by a firm organized as a sole proprietorship are

The responsibility of the owner.

When a sole proprietor dies

The sole proprietor's heirs have the option of taking over the business.

The legislation that prohibits U.S. businesses from making "questionable" or "dubious" payments to foreign officials, to secure business contracts is the

U.S. Foreign Corrupt Practices Act (FCPA)

A company's income statement is important to accountants and other stakeholders. It reveals a

a company's ability to earn a profit over time.

During the employee selection process, the screening interview is often conducted by

a member of the human resources department staff.

Herzberg's research found that the factor that ranked highest as a motivator was

a sense of achievement.

A strength of Generation X managers is likely to be their

ability to provide feedback to their employees

Being your own boss means

accepting the accountability/responsibility of the mistakes of the company.

As a group, Millennials tend to be

adaptable, tolerant, and tech savvy.

The Environmental Protection Agency is an example of a(n)

administrative agency.

_________ refers to any paid, nonpersonal communication through various media by organizations and individuals who are in some way identified in the message

advertising

The purpose of a trial balance is to

affirm whether the figures in the account ledgers are correct and balanced.

Abraham Maslow thought that once needs at one level of his hierarchy were met:

another, higher order need would emerge to motivate that person

The balance sheet is composed of the following types of accounts:

assets, liabilities, and owners' equity.

The _____ shows the assets, liabilities, and owners' equity of a firm, at a specific point in time.

balance sheet

If a nation's currency is weak, people may have to fall back on

bartering.

Employment testing

be directly related to the job.

According to Maslow, a higher-order need: becomes a source of motivation after lower order needs are satisfied.

becomes a source of motivation after lower order needs are satisfied.

Compared to advertising, publicity offers the advantage of greater

believability.

Which of the following describes a word, letter, or group of words or letters that differentiate the goods and services of a seller from those of competitors?

brand name

When one party fails to follow the terms of a contract, the party has committed a(n)

breach of contract

As the workforce of the U.S. ages, a greater percentage of workers will have to concern themselves with

caring for older relatives

Producers who use an exclusive distribution strategy for their products can expect retailers who carry the products to do which of the following?

carry a large inventory of their product.

The body of law created by court decisions rendered by judges is called __________ law.

common

When McDonald's lost a lawsuit to a person severely burned by hot coffee, McDonald's was found to be guilty of

comparative negligence

Expensive software that enables computer-aided design machines to communicate with computer-aided manufacturing machines is called

computer-integrated manufacturing.

The tiny nation of Tinian is extremely efficient in the mining of tin. However, its climate and terrain make it difficult to produce corn. According to the theory of comparative advantage, Tinian should

concentrate its production on tin and buy corn from an efficient producer.

Public schools, charities, and government agencies generally _________.

do not seek to earn a profit

__________ is the management function that involves determining whether an organization is progressing toward its goals, rewarding employees for doing a good job, and taking corrective action when they are not.

controlling

One factor that influences the consumer decision-making process is __________, referring to the set of values, attitudes, and ways of doing things passed from one generation to another in a given society.

culture

The span of control for a manager

depends on a number of factors, and can vary from one manager to another.

A good business plan will

describe all aspects of the business, including product, the target market, the nature of the competition, any financial resources, and the owner's qualifications.

A favorable balance of trade occurs when the value of

domestic goods exported exceeds the value of foreign goods imported.

__________ is the study of how a society employs its limited resources to produce goods and services and how it distributes them among competing groups and individuals.

economics

A major characteristic of a compressed workweek is that

employees work the same number of hours in fewer days.

Economics is the study of how a society _________________.

employs resources to produce goods and services and distribute them among competing groups and individuals.

A(n) ____________ is a person who assumes the risk of starting a business.

entrepreneur.

Which of the following tasks would be included in the marketing mix?

evaluating various distribution alternatives to determine the best way to get the product to the consumer

Rewards that come from someone else in recognition of good work are _________ rewards.

extrinsic

___________ utility is the value added by the creation of finished goods and services using raw materials, components, and other inputs.

form

Employees of small businesses often have greater job satisfaction than do employees of larger firms. One reason for this difference in job satisfaction is that employees of small businesses often

get more respect from their bosses

Operations management in the service sector is focused on creating

good experiences for those who use the service.

Operations management is a specialized area in management that converts resources into

goods and services.

Department stores often use _________ pricing in which they have regular prices which are relatively high, but offer special sales where prices are set lower than competitors.

high-low

Over the past several decades, the compensation of CEOs of large U.S. corporations has

increased enormously, even when inflation is taken into account.

Over the past several decades, the compensation of CEOs of large U.S. corporations has:

increased enormously, even when inflation is taken into account.

Due to more emphasis on empowerment and more talented and better-educated lower-level management, span of control in organizations has ___________.

increased.

The executive summary section of the business plan contains

information that will capture the attention of bankers and other investors who receive many business plans every day.The executive summary must grab the reader's attention. In some cases, it is the only part that some decision makers will read.

Undercapitalization refers to the problem of

insufficient start-up funds.

A benefit of CAD is

it permits customization without a significant increase in price.

In Weber's view of a bureaucratic organization, the role of top management is to

make decisions.

The remedy for a tort is

monetary compensation

The theory of comparative advantage exists because

no nation can produce all the products its people want and need.

Ethical dilemmas in business

often force us to choose between equally unsatisfactory alternatives.

When union members who have a dispute with a company walk around outside the firm's place of business carrying signs and talking to the media and public about their concerns, they are using a tactic known as

picketing.

___________ is the management function that involves setting goals, strategies, and tactics for achieving the organization's goals and objectives.

planning

Two key management functions that need particular attention when starting a business are

planning and financing.

The first step in the human resources planning process is to:

prepare human resource inventory of the organization's employees

A competition-based pricing strategy called __________ involves one or more dominant firms establishing the pricing practices that all competitors in an industry follow.

price leadership

The goal of lean manufacturing is to

produce goods and services with less of everything that goes into the process

Which of the following represents a capital expenditure?

purchasing a building to be used for office spaceCapital expenditures are major investments in long-term assets such as land, buildings, and equipment; or, intangible assets such as patents.

The goal of __________ is to keep individual customers over time by offering them new products that exactly meet their requirements.

relationship

When creating the income statement, which of the following statements is accurate?

revenues, minus cost of goods sold = gross profit

The financial claims of ________ are given priority when assets are distributed among creditors in a bankruptcy case.

secured creditors or bankruptcy lawyers

A meaningful mission statement should address topics such as the organization's

self-concept and company philosophy.

A _________ forecast predicts the revenues, costs, and expenses a firm will incur for a period of one year or less.

short-term

Charging high prices to earn large profits during a time when there is little competition represents a ________ strategy.

skimming

As part of the HR planning process, the manager begins by assessing the current labor situation at the company. Essentially, this means

taking an inventory of current employees and their capabilities.

To generate enthusiasm about a good or service, sales promotion

target groups internally and externally

Today's progressive managers

tend to emphasize teamwork and cooperation rather than discipline and order-giving.

Obeying the law is ________ ethical behavior.

the first step towards

A free market is one in which decisions about what to produce and in what quantities are made by

the market

The need __________ would be classified as a social need.

to feel accepted and loved

The apple is Apple Computer's

trademark

A firm or individual providing financial capital to small businesses in exchange for an ownership stake in the company is called a

venture capitalist