Business foundations

Which of the following is a controversial alternative for measuring profitability, and is considered a purer measure of profitability by investors?

EBITDA

Where is the world's largest economy?

European Union

How can a person improve the communication process when working with a person from another culture?

Learn how respect is communicated in various cultures.

encompasses all the people and processes used to create the goods and perform the services that a company sells.

Operation Management

Which of the following is a major difference between debt financing and equity financing?

Repayment of debt financing is not linked to organizational performance, unlike equity financing.

Which of the following is a disadvantage for those with the entrepreneurial spirit when considering a franchise?

The lack of control over many decisions.

A company's ________ defines how it will generate revenue and produce a profit.

business model

Hedging refers to forming contracts that allow a company to ________.

buy supplies in a future at designated prices

Which of the following requires less work and less risk because there is an established customer base?

buying an existing business

What part of the market environment shapes the behavior of customers?

buying influences

________ skills refer to the ability to understand the relationship of parts to the whole.

conceptual

Directly intervening in organizational processes to improve performance is an example of the ________ function of management.

controlling

________ is the management function of keeping a company's activities on track toward previously established goals.

controlling

Which of the following is a source of long-term debt financing?

corporate bonds

Tasks such as calculating and analyzing the production and operating expenditures of the organization are referred to as ________.

cost accounting

What is the primary use of smartphone technology in the workplace?

data traffic

Creating new products for new markets is called ________.

diversification

In order to fill orders in a timely fashion, at the lowest cost, what must a company determine?

economic order quantity

Which of the following functions is typically performed by top managers?

establishing the structure for the organization

Studying people in their daily lives to learn about their needs, wants, and behaviors in real-life settings is called ________.

ethnographic research

The expected norms of behavior in a particular situation are referred to as

etiquette

Who is at the top of the management pyramid?

executives

A business plan outlines that investors will be able to sell their investment through a public stock offering, or a buyback of the investors' interest. This is an example of which of the following elements of a business plan?

exit strategy

Who has the strategic, long-term responsibility for raising funds for an organization when needed?

finance officers

What type of accountant would aid in the decision to acquire a new business?

financial

when a manufacture combines fabric, buttons, and zippers to create clothing it creates

form utility

A company that licenses elements of its business system to other companies is called a(n) ________.

franchisor

Accrued expenses are expenses that ________.

have been incurred but for which bills have not yet been received

________ limit the amount of particular goods that countries allow to be imported during a given year.

import quotas

One of the best ways to establish yourself as professional, and to stand out from your competition, is to ________.

improve your communication skills

Which of the following is most likely to encourage entrepreneurship?

inability to find attractive employment anywhere else

Which of the following reports is best suited to analyze an organization's profitability over a period of time?

income statement

Managerial roles are grouped into three main categories: interpersonal, decisional, and ________.

informational

Demographics differs from psychographics in that demographics ________.

involves grouping customers according to characteristics such as age, gender, and income

Dumping ________.

involves selling a product at a price lower than the cost of production

Which of the following is the best example of an external source for obtaining funds for business?

issuing corporate bonds

Which of the following is classified as a general expense?

legal fees paid

________ is an arrangement in which a financial institution makes money available for use at any time after the loan has been approved.

line of credit

A company benefits from economies of scale when it ________.

manufactures and distributes products in higher quantities

A ________ gives a franchisee the right to produce and distribute the manufacturer's products, using supplies purchased from the franchisor.

manufacturing franchise

Which of the following allows companies to make data-driven marketing decisions?

marketing analytics

An HR specialist is most likely to be responsible for which of the following activities?

motivate and train diverse workforces

Your professionalism, and how others view your efforts, is affected by your ________, and is a vital element in promoting workplace harmony.

personal demeanor

The ability to cover all costs of customization while offering competitive prices in an international market should be considered in which functional strategy category?

pricing

A business plan is a written document that summarizes the ________.

proposed business venture, goals, and plans for achieving those goals

What is the most essential role of middle managers?

qualitative forecasts

________ is a measure of how closely a product conforms to predetermined standards and customer expectations.

quality

Bookkeeping refers to ________.

recording the financial activities of the business

What is the advantage of franchising internationally?

reduced costs and risks, and better leveraging of investments in branding

Family, friends, and work groups make up a consumer's ________, and become role models for style, opinions, and other behaviors.

reference group

Before a company can sell shares to the public in the United States, it must ________.

register with SEC

A country can assist its domestic producers by implementing ________ such as special business licenses and limiting foreign companies' access to them.

restrictive import standards

________ are politically motivated embargoes that revoke a country's normal trade relations status.

sanctions

Before establishing long-term goals, a company should understand its ________ relative to opportunities and threats.

strengths and weaknesses

What is the most essential role of middle managers?

translating strategic goals into action

Which of the following helps determine the value a customer places on a product?

utility

A country has a trade deficit when the ________.

value of its imports exceeds the value of its exports

The purchase of a good or service that has not yet been paid for is recorded as ________ in the balance sheet.

accounts payable

Which of the following is an example of a current asset?

accounts recievables

A(n) ________ is a form of "group mentoring" in which you assemble a team of people with subject-area expertise or vital contacts to help review plans and decisions.

advisory boards

Because of the increasing importance of the field, most companies now employ ________ to oversee the development of IT strategies for the organization.

chief information officers

Buyer's remorse, in which one makes a purchase and then regrets doing so, is an example of ________.

cognitive dissonance

What do most lenders require on unsecured loans to protect themselves from default while the loan is outstanding?

compensating balances

Which of the following is a component of the specific market environment within which each business operates?

competitors

________ are unsecured bonds, backed only by the corporation's promise to pay.

debentures

Total liabilities divided by total assets will yield the ________ ratio.

debt to assets

Concentrated marketing differs from micromarketing in that concentrated marketing ________.

focuses only on a single market segment

When developing a formal marketing plan, it is critical to review where you are and how you got there, in order to ________.

review performance

What is the difference between secured and unsecured loans?

secure loans are back on collateral

Money used or needed to set up a new business is ________.

seed money