Business First Semester Final Review

A major disadvantage of owning a sole proprietorship is that the owner has limited liability.

False

Day-to-day supervision of employees is handled by

Operational managers

A cookie company would like to sell their product in grocery and supermarket stores. They what their product to be at eye level for customers it easily see. Which of the 4 P's would this best describe?

Place

An ice cream company calculates their break even point to determine the amount to charge for their product. What function of marketing does this relate to?

Price

Companies use relationship marketing to maintain relationships with customers

True

The purple cow strategy is to make something about your business remarkable, memorable and unique.

True

The vision and mission statements in the business plan state the guiding principles by which a business functions.

True

There are 3 main types of business organizations: sole proprietorship, partnerships and corporations

True

To avoid failure, a business can modify (products, services, business practices)

all of the above

Demographics do not include

behavioral characteristics

The goal of test-marketing a product is to

collect customers's responses

The contest among business to win customers is called

competition

The contest between businesses to win customers

competition

All of the following are recommended traits for a career in entrepreneurs except being

cost-conscious

physical products

goods

Challenges an entrepreneur might face include all of the following except (risk of losing their investment, getting start up funds, profit, being fully responsible for the business)

profit

Money left over after a business has paid the cost of providing its goods and services

profit

Advertising is a part of the marketing function called

promotion

Leading means

providing direction and vision

Mr. Simpson is liable for all the debts of his company. What type of business organization is this

sole proprietorship

Everyone involved in a business should understand some of the basics of accounting.

True

Finance is the art of money management

True

A plan for the amount the business owner actually spends on a daily, weekly, or monthly basis is a(an)

cash budget

Sally and Fred have a product they would like to sell. They decide to share the risks and profits by forming an unincorporated business. The business they have is most likely a

partnership

The debts of a company are called

liabilities

All of the following are disadvantages of forming a corporation except (increased government regulation, double tax, limited liability, difficult to start)

limited liability

Things that you must have in order to service

needs

What is the financial result when revenue is greater than expense

net profit

What is a job description?

detailed outline of the duties, qualifications and conditions to do a specific job

When a company focuses its market research and marketing mix strategies on the people most likely to buy its goods and services, the company is

target marketing

The most important skill needed by managers is the ability to

multi-task

A business may stop manufacturing a product because

there is a decreasing demand for it.

Which of the following is not one of the four basic marketing strategies?

procedure

An example of a franchise is

Chick-Fil-A

Only a fourth of all businesses in the US are sole proprietorships

False

Income from a corporation is taxed twice.

True

The chief operating officer or president of a company is a

top-level manager

What are some tasks a human resource manager would do?

training, evaluating employees and finding/selecting employees

To market a product successfully, a company has to

understand what people want to buy

The break-even point is when revenues exceed expenses

False

Unlike goods, services are performed for free.

False

salary

a fixed amount of pay for each week, month or year

Which is an example of an asset? (cash, equipment, inventory)

all of the above

Nonprofit organizations

focus on providing services rather than making a profit

Industries that produce raw foods include all of the following except ( forestry, fishing, frozen pies, agricultural)

frozen pies

The function of marketing that involves decisions about how much to charge for products and services is called

pricing

Most Businesses in the US are small businesses

true

To evaluate customer acceptance, once a product is introduced, marketers track customers and their responses to it.

True

to offer a product in a limited market for a limited time is referred to as a test market

True

A business plan is used by (potential investors to see if they want to invest in the business, top management involved in the start up of a new business, the entrepreneur to keep focused on the goals of the business)

all of the above

An advantage of a partnership is (that the partners made decisions together, that banks are often more willing to lend more money to a partnership than to a sole proprietorship, that the partners often bring different skills and talents to the business)

all of the above

Entrepreneurs is the process of ( recognizing a business opportunity, using market research to determine if there is a market for a product or service, gathering the resources needed to go into business)

all of the above

Financial records can be managed by (the owner, a qualified employee, a hired professional)

all of the above

Market Research provides information that can help a business ( identify opportunities, analyze demand, respond to market goods and services)

all of the above

Skills necessary for being an effective manager include which of the following(time management skills, skills dealing with people, problem solving )

all of the above

The company description section of a business plan helps investors understand( the size of the business, the scope of the business, the type of the business)

all of the above

The purpose of a financial plan is to ( project future income, describe all the assets that need to be purchased to start a business, see if there is enough money to start the business)

all of the above

For businesses to stay successful, they must offer

all of the above, ( Quality products, Outstanding service, competitive prices)

When developing a product or service, business must do all of the following except,(create a need for the product or service, evaluate the demand for the product or service, obtain start up and operating capital, keep records to satisfy government requirements)

create a need for the product or service

The process of planning, pricing, promoting, selling, and distributing ideas, goods, and services is known as

marketing

In the business plan, the description of the business's media plan is included in the

marketing plan

The main reason start-up capital can be hard to obtain is because

there is no track record to prove the venture will be successful.

Operating expenses include

utility bills

Most of a a manager's day is spent

interacting with people

The process of achieving company goals by planning, organizing, directing, controlling, and evaluating the effective use of resources is called

management

In a business plan, research about the business's customers is included in the

market analysis

A business that gives authority to a number of different managers has

decentralized organization

Most people enter the job market as a(n)

entry-level employee.

A wholesaler is an example of a

reseller

The basic needs of people include food, water, shelter and

clothing

Things that you do not have to have to survive, but would like to have

wants

Retailers get their goods from

wholesalers

Reasons people become entrepreneurs include all of the following except( doing what you enjoy, having a chance to be creative, working long hours, being your own boss)

working long hours

competition among business hurts the customer.

False

Which business is an example of a wholesaler

Sam's Club

SBA is an acronym that stands for the

Small Business Administration

A vision statement

establishes the scope and purpose of the company

An example of a public want is a family wanting a new car.

False

The 4 steps of selecting the right person for the job are

1.) Reviewing each candidates application and resume. 2.) Screening people for the job. 3.) Interviewing qualified candidates. 4.) Checking references

Statement of Cash Flows

A financial statement that provides financial information about the cash receipts and cash payments of a business for a specific period of time.

The account equation is

Assets= liabilities + owners equity

Jack is a manager at Pizza Palace restaurant. During a busy week, several customers returned, unhappy about their pizza. They said the pizza dough wasn't done. Jack discovers the heating element on the oven was not working properly. He calls a repair shop right away. Which management function is this an example of?

Controlling

A detergent company spends time working to create the perfect packaging for their product. Which of the 4 P's would this describe?

Product

A cash budget is a plan for the amount expected to be spent and earned over a given period of time.

False

A small business, as defined by the SBA, serves a limited geographic area and employs no more than 100 people

False

Leadership is no more than giving orders to your subordinates.

False

Marketing a CD requires the same strategy as marketing diamond earrings.

False

Middle managers are often responsible for only one department in a busisness

False

Once it has been determined that there is a demand for a product, there is no need to decide how and where customers will buy their goods and services.

False

There are 10 essential parts of a business plan.

False (15 essential parts)

The main reason people become entrepreneurs is to have the opportunity to be creative

False (To be their own boss is #1)

GAAP is an acronym that stands for

Generally Accepted Accounting Principles

To determine the price of a product, marketers must answer all of these questions except

How much inventory is in hand?

What is human resource management?

It is managing the people and resources in an organization. Employees

Why is a logo important?

It represents the company's brand and public perception.

Bruno is a project manager overseeing the construction of a new home. He delegates tasks to a team of people to help finish the project. He tells Rosie to paint, Luke to install a faucet, and John to sweep. Which management function is this an example of?

Leading

A good manger does what?

Leads, Plans, Controls, Organizes, shows loyalty, respects people and co-workers, shows loyalty, task orientated and does more than give orders.

A cosmetic company places an ad in a magazine to inform consumers about a new lipstick line. Which marketing function does this scenario represent?

Promotion

All of the following involve offering services except, (Banking, New shoes, Car repair, Haircut)

New shoes

Resources are items used to make and provide goods and services.

True

The most common type of business in the US are

Sole proprietorship

A financial plan can be used to attract investors.

True

A financial plan explains how a business will manage its records.

True

Account receivable is money owed to a business

True

If the owner of a sole proprietorship has more debt than income, then he/she is responsible for the difference.

True

Limited liability holds a firm's owner responsible for no more than the capital that they have invested in it.

True

Managers are usually task-oriented.

True

Marketing research involves gathering information on the size, location and makeup of a market.

True

Most people have unlimited wants for goods and services.

True

wage

an amount of money paid to an employee on an hourly basis

Which financial statements applies the account equation?

balance sheet

Any commercial activity that seeks profit by providing goods and services to others in exchange for money

business

A written description of a business venture that describes all aspects of the business is called

business plan

Insurance companies

can offer loans to businesses and consumers as well as protection against fire and theft

A person who uses goods or services

consumer

Management includes the processes or functions of planning, organizing, leading and

controlling

A brief account of the key point contained in a business plan is the

executive summary

A mission statement is

expresses the specific aspirations of a company, the major goals it will try to reach

A financial institution that offers short term loans to businesses and consumers at higher rates than banks is a

finance company

The act of gathering and analyzing information about the wants, needs, and preferences of consumers in a certain market

market research

Business provide goods and services to satisfy wants and

needs

In order to start a corporation, the first thing one must do is

obtain a corporate charter from the state government.

One of the biggest obstacles in starting a business is

obtaining financing

a franchise is a company that

offers similar products or services in many locations

A virtual business is a business that

operates on the internet

Processed goods include all of the following except (organic vegetables, white sugar, steel, gasoline )

organic vegetables

The management function that involves obtaining and coordinating resources so that a business's objectives can be met is

organizing

The line and staff authority structure can lead to

overstaffing

A business owned and run by two or more people

partnership

Three main financial statements that are important for any business include all of the following except

petty cash records

The 4 p's are

place, product, price and promotion

The process of creating goals and objectives as well as strategies to meet them is

planning

Which marketing mix involves predicting how to make the product so it will appeal to customers( swishing the packaging for example )

product

Improving upon a product that is already on the market is part of the marketing function called

product/service management

Competition is possible because companies have the freedom to produce

products they think will be most profitable

Market researchers commonly ask shoppers to

respond to surveys to discover their wants and needs

Consumers usually deal directly with

retailers

tasks that businesses perform for customers

services

Informal management structures usually exists in

smaller businesses

A budget can be used to help control

spending