OLS 274 Final Exam
________ is the pricing strategy that bases pricing decisions on the attainment of market share.
Volume objective
Which of the following companies is NOT a top-ten franchise in the United States?
Wal-mart
Which of the following is an example of ownership utility?
The furniture store offers 90-days-same-as-cash financing to qualified buyers.
________ ratios describe the extent to which the firm relies on debt to finance its operations.
Leverage
_______ are internal to a firm; _______ are external factors.
Weaknesses; opportunities
Under IFRS, which of the following is not shown on the balance sheet at current market value?
Liabilities
All of the following are examples of application software EXCEPT:
Linux.
Which of the following would NOT be considered an appropriate response when asked for donations at work?
Always give the suggested donation amount of the amount that coworkers at your employment level are giving.
The NYSE is sometimes referred to as the _______________.
Big Board
What is business?
Business consists of all profit-seeking activities that provide goods and services to an economic system.
________ focuses on problem-related differences of opinion.
Cognitive conflict
_________ is the process of negotiation between management and union representatives.
Collective bargaining
________ are the largest and probably most important financial institutions in the United States.
Commercial banks
How do commercial banks differ from credit unions?
Commercial banks serve business and personal customers; credit unions are designed to serve consumers, not businesses.
Which of the following is NOT a benefit of subcontracting?
Companies have complete control over the business practices of their subcontractors.
____________ is part of the broader field of business intelligence, which is the task of using computer-based technology to evaluate data in a database and identify useful trends.
Data mining
Which form of financing needs to be repaid?
Debt financing
What makes an entrepreneur different from a small business owner?
Desire to make the business grow
Software makers and other computer-related firms concentrate in areas with the technical talent they need, which does not include which of the following locations?
Detroit, MI
________ occurs when there is a drop in a currency's value relative to other currencies or a fixed standard.
Devaluation
The ________ is the federal agency that insures deposits at commercial and savings banks.
Federal Deposit Insurance Corporation
____________ involves the planning, obtaining, and managing the company's funds in order to accomplish its objectives as efficiently and effectively as possible.
Finance
___________ limit data transfers to certain locations and log system use so that managers can identify threats to a system's security.
Firewalls
Why are the four factors of production important?
Firms need to understand how to reduce the cost of production if they are going to be successful.
________ consists of government spending and taxation decisions to control inflation, encourage economic growth, and balance the Federal budget.
Fiscal policy
__________ is useful when combined with lean production methods that use automation and information technology to reduce requirements for workers and inventory.
Flexible production
According to Maslow's hierarchy of needs, people satisfy lower order needs such as __________ and ____________ before moving on to higher order needs.
Food and safety
The _______________ forbids U.S. companies from bribing foreign officials, political candidates, or government representatives. This act prescribes fines and jail time.
Foreign Corrupt Practices Act
__________accountants focus on potential fraud in a variety of organizations.
Forensic
What is a common drawback faced by a franchisor?
Franchisors put their brand in the hands of franchisees that may not run the business smoothly
Because of the increasing amount of worldwide trade, many U.S. firms are moving from _______ to ________ when constructing financial statements.
GAAP; IFRS
How are production and manufacturing different?
Production applies to both manufacturing and service industries.
A Fed required ______________ gives a detailed description of the company issuing the securities, including financial data, products, research and development projects, and pending litigation.
Prospectus
Which of the following is not one of the customary services of the Small Business Administration?
Providing direct loans
Canon's assembly line produces a camera by assembling various parts such as a shutter or a lens cap. This is an example of a _____ production process.
synthetic
All of the following are characteristics of job enrichment EXCEPT:
systematically move employees from one job to another.
The marketing mix consists of all the following EXCEPT:
target
The first step in developing a competitive retailing strategy is to select a ______________
target market.
Taxes, surcharges, or duties on foreign products are referred to as:
tariffs
In which stage of ethical decision making do individuals primarily consider their own needs and desires?
the preconventional stage
The equilibrium price is what?
the prevailing market price.
Personal selling works best when:
the product has a relatively high price.
A ________ has legal protection granted solely to its owner.
trademark
The Nike swoosh is a:
trademark.
What is the approach of building and promoting products in the hope that enough will buy them to cover costs and earn profits called?
transaction management
Computer-based information systems consist of all but which of the following components?
transcontinental soundboards
Encoding a message includes:
translating meaning into understandable terms.
Which form of transportation carries the largest dollar volume of products?
trucks
Business ethics refers to standards of conduct and moral values applied in business decision making.
true
Decision making involves recognizing a problem, evaluating alternative solutions, implementing an alternative, and assessing the results.
true
Ethical business practices create positive impact on profitable business operations.
true
Technology has expanded the range and impact of unethical business practices.
true
The foundation of an ethical environment is ethical awareness, and a Code of Conduct provides a good step in this direction.
true
There is a growing concern that as Baby Boomers retire the business workforce will fall short of actual needed workers.
true
What fraction of U.S. firms currently use work teams?
two-thirds
Through integrated marketing communications (IMC), marketers coordinate all promotional activities—media advertising, direct mail, personal selling, sales promotion, and public relations—to produce a _______________, customer-focused promotional strategy.
unified.
Because of the boom in worldwide trade, there is a need for comparability and _______ in international accounting rules.
uniformity
Common stockholders:
usually benefit when a company is growing.
Another term used for on-demand computing is ______________.
utility computing
The want-satisfying power of a good or service is called:
utility.
Corporate culture is an organization's system of principles, beliefs, and _______.
values
Cost ________ describe the differences between actual costs and budgeted costs.
variances
A merger between two companies in different levels of the production and marketing of a product is called a ___________ merger.
vertical
The perception of marketplace needs and the ways a firm can satisfy them is the basis for an organization's:
vision
Which of the following traits are needed by today's business managers?
vision, creativity & critical thinking, and ability to lead change.
Which of the following are the critical skills needed by the 21st manager?
vision, critical thinking, and creativity
At the top of the finance organization of a typical company is
a CFO.
A frequently used tool that helps assess the firm's current position in the marketplace is called:
a SWOT analysis.
A product is best described as
a bundle of physical, service, and symbolic attributes.
A situation where an action benefiting one person has the potential to harm another is called:
a conflict of interest
Floyd Aranowski worked for Pillsbury while serving on the Board of Directors for Entenmann's. This would be considered:
a conflict of interest
A legal organization with assets and liabilities separate from those of the owner is called what?
a corporation.
Dawn operates a small marine service company. She has an up-to-date customer database with names, addresses, and past-purchase data. She wants to offer her customers a pre-season special on engine tune-ups. The best form of advertising would be:
a direct-mail postcard.
A sovereign wealth fund is
a form of private equity owned by governments.
Which of the following is most likely to be a cooperative business operation?
a group of neighboring farm owners
Which of the following is NOT one of the several trends challenging American businesses?
a less diverse workforce
The oldest and simplest form of organization is:
a line organization.
Closing a firm to put pressure on union members is called:
a lockout.
Which of the following is least likely to be a small business?
a nursing home
Which of the following individuals is NOT experiencing frictional unemployment?
a sixty-nine year old retiree
The skimming pricing strategy would work best for:
a unique product that would be difficult for competitors to copy.
A country has a(n) ___________ in making a product for which it can maintain a monopoly or that it can produce at a lower cost than any competitor.
absolute advantage
Petroleum refining breaks down crude oil into several marketable products, including gasoline, heating oil, and aviation fuel. This is an example of a _____ production process.
analytic
The best marketers not only give consumers what they want but
anticipate needs before those needs surface.
_________ refers to the standards of conduct and moral values involving decisions made in the work environment.
business ethics
____________ refers to the standards of conduct and moral values involving decisions made in the work environment.
business ethics
In the U.S. economy, the social responsibility of a firm is evaluated:
by consumers who may patronize or avoid a firm based on its behavior. on the basis of the firm's contribution to economic growth and employment opportunities. by outside groups who create and monitor standards of corporate performance. by the firm itself doing a social audit.
The process by which decisions are made regarding investments in long-lived assets is called
capital investment analysis.
Natural resources include all of the following EXCEPT:
capitalism.
The ________ budget tracks the firm's cash inflows and outflows.
cash
Which of the following is NOT a securities category?
cash funds
Assets include:
cash. land. patents.
A company that emphasizes _______ retains decision making at the top of the management hierarchy.
centralization
The best way to handle team conflict is to _______________.
establish good communications and respect within the team
Which of Maslow's needs pertains to people's need for attention, recognition, and appreciation?
esteem needs
Daron's washing machine has stopped working. He has looked at Consumer Reports, talked to friends and family, and gone to several retailers to look at new machines. This weekend he will sort through the information that he has already gathered. Daron is at what stage of the consumer buying process?
evaluation of alternatives
When two or more parties benefit from trading things of value, they have entered into a(n) ______________.
exchange process
Microeconomics is the study of:
exchanges between buyers and sellers.
A(n) _________ is a management support system that imitates human thinking through "if-then" rules.
expert system
A(n) ____________ can be tailored to assist many business functions and departments—from marketing and manufacturing to finance and accounting.
information system
Which of the following is NOT a social or cultural difference?
infrastructure
Brand ________ is demonstrated by a dedication to a particular brand over all others.
insistence
Trade restrictions create what kind of barrier to international trade?
legal and political
Long-term customers buy more, require less service, and provide valuable feedback to a marketer. These elements contribute to a high
lifetime value of a customer.
S Corporations:
limit owners' liability. avoid double taxation. have fewer than 100 shareholders.
A firm's ability to meet its short-term obligations is measured by
liquidity ratios.
Clara is the finance manager at a mid-sized company. Although she knows that interest rates sometimes change in a favorable direction, she would prefer the stability of fixed interest payments over time. She should have a higher percentage of ____________ to finance her company's operations.
long-term funds
The growth in offshoring has resulted in:
loss of U.S. jobs.
The study of a country's overall economic issues is called
macroeconomics
The most expensive part of recruitment and selection is:
making a bad hire.
A balance-of-payments surplus means what?
more money has moved into a country than out of it.
Revenue and general obligation are both what type of bond?
municipal bond
Biotech firms would probably want to locate where?
near a reliable source of highly trained researchers.
Which managerial function involves blending human and material resources through a formal structure of tasks and authority?
organizing
The Internet has made possible another business tool for staffing flexibility: __________, or using outside vendors to produce goods or fulfill services and functions that were previously handled in-house or in-country.
outsourcing
Which element of government regulation is the most burdensome to small business owners?
paperwork costs which account for billions each year
A pricing strategy that sets prices low in order to penetrate the market is called a _____________ strategy.
penetration
Nancy sells textbooks to college professors by visiting their offices. What type of activity is this?
personal selling
The two components of an effective distribution strategy are distribution channels and _______________.
physical distribution
The first step in off-site data storage is
planning which data needs to be protected.
The manager at Price-Rite grocery store created an end-of-aisle display featuring healthy snack food and beverages. This practice is called:
point-of-purchase advertising.
When marketers attempt to establish their product in the minds of the consumer, they are utilizing:
positioning.
In the highest level of ethical and moral behavior, the individual is able to move beyond mere self-interest and duty and take the larger needs of society into account as well. This stage of ethical development is the:
postconventional stage
Which of the following is NOT a part of the marketing mix?
practice
Six out of every ten sales promotion dollars are spent on:
premiums.
A salesperson tells the product's story during the ________ step of the sales process.
presentation
The application software that would be best suited for creating a sales presentation is
presentation software.
Which of the following is an example of publicity?
press release
Exclusiveness is often obtained through a _________ pricing strategy.
prestige
What is it called when firms and governments issue securities and sell them initially to the general public?
primary market
An IPO is a(n) ________.
primary market offering
Sears's Craftsman tools and Wal-Mart's Ol' Roy dog food are examples of which brand category listed below?
private brand
Amtrak is an example of:
private ownership of a for-profit corporation.
A _______ refers to the sale of new stock or bond issues to a small group of investors, such as pension funds or insurance companies, rather than to the general public.
private placement
The right to ________ is the most basic freedom under the private enterprise system.
private property
Will is the Customer Service manager for a mid-sized firm. The number of callers who have complaints has increased. What kind of team should Will assemble to help him determine the reason for the complaints?
problem-solving team
Boeing assembles aircraft at a large facility in Everett, Washington. After the airplane is assembled, it taxis across a highway overpass to a separate building where it is painted according to the customer's specifications. The paint facility is an example of:
process layout.
When companies promote products to channel members rather than to end users, they are using a(n) __________ strategy.
pushing
The most common type of dividend, regular dividends, are paid to shareholders
quarterly.
After graduating from trade school, Ann accepted a position as a mechanic in a shop where she is the only woman. After a few months she complained to her supervisor about lewd jokes and sexually explicit posters in the workplace. Her supervisor should:
realize that these occurrences can be construed as sexual harassment and need to be addressed.
During which stage of the business cycle does unemployment rise and inflation fall?
recession
Accounting is the process of
recording, measuring, and interpreting financial data.
Which of the following is NOT a benefit of a company employing empowerment techniques?
reduces recruitment needs.
The marketing concept
refers to a companywide customer orientation.
The exchange process is activity in which two or more parties give something of value to each other to:
satisfy perceived needs.
PERT charts help an organization in the ________ phase of production control.
scheduling
What is the name of the market in which previously issued securities are traded among investors?
secondary
The Census Bureau is a major source of ______ for marketers.
secondary data
The initial funding needed to launch a new venture comes from
seed programs
Which of the following is not one of the steps that production managers take in implementing the production plan?
selecting a plant location
When Boeing (an airplane company) decides what inputs to purchase, managers must choose the best vendors for its needs. This process is called:
selection of suppliers.
After several days, a listener remembers ________ of a message she's heard.
25%
____________of the 20 largest worldwide banks (measured by total assets) are U.S. institutions.
3
What percent of an employee's compensation takes the form of employee benefits?
30%
Marco works in the Treasury department of a major corporation. His boss has asked him to analyze a takeover offer from a competitor. The offer has not yet been made public.
Because the information is not yet public, Marco must not act on it.
Women own __________ percent of companies in the U.S.; Business ownership among minorities has recently __________.
40, increased
What percentage of small businesses survives the first five years of operations?
50%
Most manufacturing businesses are considered small if they employ fewer than _____ workers.
500
By the year 2025, the number of U.S. workers ______ or older will reach 64 million—double what it is today—and many of them will be retiring from the workforce, taking their experience and expertise with them.
65
According to the text, wages and salaries are approximately ______ of the total employee compensation costs.
70%
What percentage of American businesses are considered small businesses?
98%
Why is it important to spend adequate time and effort during the employee selection process?
A bad hiring decision can be very costly.
What is skunkworks?
A project initiated by an employee who conceives an idea, convinces top management of its potential, and then recruits human and other resources from within the company to the idea into a commercial project.
__________ is the bar code read by optical scanners that print the name of the item and the price on a receipt.
A universal product code
_________ can be an outcome of poorly protecting employee or customer data.
Identity theft
Why is accounting not considered an activity of business?
Accountants report the results of business activities performed by others.
Why might a firm acquire another company?
Acquisitions allow a company to enter new markets and improve competitiveness.
______ is directing or inspiring people to attain certain goals.
Leadership
The First Third Bank is planning to lay off 10% of its workforce. Which communication channel would be most appropriate for this type of message?
An all company meeting presided over by the bank president with a handout explaining the severance package.
________ is anything of value owned or leased by a business.
An asset
Which of the following is NOT included in a business plan?
An itemized budget
______________training involves an employee learning new job skills by serving for a time with a trained worker.
Apprenticeship
The basic accounting equation is
Assets = Liabilities + Owners' equity
____________ is centered on the boss.
Autocratic leadership
To be labeled as a junk bond, a bond must have a Standard & Poor's rating at or below ________.
BB
The financial system is the process by which ________.
The financial system is the process by which ________.
The top five nations that the U.S. trades with are:
Canada, China, Mexico, Japan, and the Federal Republic of Germany
Which strategy will help an entrepreneur develop a successful business idea?
Carefully evaluate existing goods and services and conduct market research
How is a cash budget different from the accrual system?
Cash budgets reflect the timing of actual cash inflows and outflows; the accrual system matches expenses to the period when they occur.
Which of the following countries currently has the largest population?
China
_________ includes individual needs and motives, perceptions, attitudes, learned experiences, and self-concept.
Consumer behavior
Which statement about corporate cultures is NOT true?
Corporate cultures never change significantly once they are established.
Many businesses now recognize the value of a partnership with employees that encourages:
Creative thinking and problem solving. Rewards innovation and risk taking. Collaboration and team efforts.
Why do so many small business owners rely on personal credit cards to finance their businesses?
Credit card companies do not care if you are using the credit card for business or personal reasons as long as the balance is paid.
The federal agency charged with ensuring universal access to jobs and ending discrimination in the workplace is the:
EEOC
How are entrepreneurs different from managers?
Entrepreneurs combine their ideas with resources to create a business that fills a market need; managers direct the effort of others to achieve an organization's goals.
Which of the following is true about exchange rates?
Exchange rate changes can quickly create a competitive advantage.
In the United States, ________ is primarily responsible for evaluating, setting, or modifying accounting guidelines.
FASB
__________ involves a business selling its accounts receivable to either a bank or a finance company.
Factoring
Why is fair competition important in the private enterprise system?
Fair competition allows firms to compete in the marketplace, knowing that they won't be subjected to excessively aggressive practices that are designed to eliminate them.
A CMA certification only requires a certain level of management experience.
False
A breakeven point in pricing will cover all fixed costs and some variable costs.
False
A drop shipper is an example of a full-function merchant wholesaler.
False
Businesses should value customers more than their employees.
False
Cohesive teams often experience high turnover of members.
False
Corporate culture is typically shaped by the employees rather than the managers.
False
Diversity awareness programs rarely prove to reduce conflict.
False
FDIC cannot avoid runs on banks.
False
Human resource management is responsible for meeting operational objectives of the company.
False
Life insurance companies are depository financial institutions.
False
MAC users are less vulnerable to cybercrimes because of storage of data in the cloud rather than on hard drives.
False
Most nations do not have a central bank similar to the U.S. Federal Reserve.
False
Promotion is the same as advertising.
False
Technology has had little effect on the way businesses budget.
False
The IFRS has adopted the IASB.
False
The International Organization for Standardization (ISO) carries out all auditing and certification for its standards.
False
The NYSE is the most international of all stock exchanges.
False
The demographic method of segmenting the market is concerned with region, population, and density.
False
The key to managing leverage is to ensure the company's interest payments remain larger than earnings.
False
The lowering of interest rates by the Fed has no effect on global finances.
False
The skimming pricing strategy is usually used during the decline stage of the product life cycle.
False
Trade credit is a source of long-term financing.
False
Use of primary data in market research is much more cost effective and easier to obtain.
False
WANs are networks designed to connect a company's employees on multiple floors of an office high-rise.
False
Wages and salaries can be compared in terms of time spent on the job.
False
While financial ratios allow a business to make comparisons with the historical performance of that business, they do not help in attempting to compare performance with competitors.
False
The _________ has substantially reduced worldwide tariffs and other trade barriers.
General Agreement on Tariffs and Trade (GATT)
To provide reliable, consistent, and unbiased information to decision makers, accountants follow guidelines, or standards, known as
Generally Accepted Accounting Principles (GAAP).
Which of the following companies offers a position called "Entrepreneur in Residence" (EIR)?
Technology is allowing firms to track business activities almost instantaneously. Package delivery companies such as FedEx and UPS use __________ to transmit information within seconds to the package sender.
Hand-held scanners
For most entrepreneurs, what is the primary benefit of being one's own boss?
Having the freedom to make all business decisions
The number of independent _____________________ stores, for example, has fallen dramatically as Lowe's, Home Depot, Menard's, and other large brands have increased the size and number of their stores.
Home improvement
A financial plan is based on three questions. Which of the following is NOT one of these questions?
How will the firm manage payments on debt?
Why are more firms moving to International Financial Reporting Standards (IFRS)?
IFRS is easier to understand than GAAP.
Many former owners of failed firms blame ______ for their company's failure.
Inadequate cash flows
When you call a toll-free number to get information on a product, you are participating in ________.
Inbound telemarketing
The business era that brought together semi-skilled workers into factory systems that mass-produced items:
Industrial Revolution
How is data different from information?
Information is knowledge; data are the facts that can be converted to a usable form.
The ________ was created to promote trade through financial cooperation and eliminate barriers by making short-term loans to member nations.
International Monetary Fund
The entrepreneurial personality includes all of the following characteristics except
Intolerance for failure
Which of the following characterizes a small business?
It is independently owned and operated and is not dominant in its field.
Why would a firm prefer to sell its bonds through private placement rather than an initial public offering?
It is often cheaper for the firm to sell securities privately.
_______ allows companies to partner and share risks, costs, profits, and management with host-country nationals.
Joint ventures
The two common measures of the money supply are called M1 and M2. M1 consists of all money in circulation and balances in bank checking accounts. M2 is:
M1 plus balances in some savings accounts and money market mutual funds.
Production managers use __________ to create schedules that identify the specific parts and materials required to produce an item.
MRP
Malicious software programs designed to infect computer systems are called
Malware.
What is management?
Management is the process of achieving organizational objectives through people and other resources.
Which is the most commonly spoken language in the world?
Mandarin Chinese
How does downsizing affect employee morale?
Many employees become more committed to the organization because their job has been spared.
How has education changed entrepreneurial opportunities?
Many universities offer Entrepreneurship courses that offer the skills to succeed.
__________ is the process of collecting and evaluating information to help marketers make effective decisions.
Marketing research
What is a characteristic of the storming stage of team development?
Members try to clarify their roles and expectations.
The relatively strong presence of __________ in the services and retail industries is especially significant because these industries contain the greatest number of businesses.
Minorities
________ policy is formulated by the Federal Reserve; ________ policy is formulated by the government.
Monetary; fiscal
What is the key difference between NASDAQ and the New York Stock Exchange (NYSE)?
NASDAQ is completely electronic; the NYSE still has a trading floor.
Why is it important to pay attention to negative feedback from customers?
Negative feedback sends a signal that firms are not achieving appropriate quality standards.
What is the world's largest stock market in terms of the total value of stock traded?
New York Stock Exchange
One example of a free-trade area that is enacted by the United States, Canada, and Mexico is called:
North American Free Trade Agreement
How are not-for-profit organizations different from profit-seeking businesses?
Not-for-profit organizations focus on goals other than generating profits.
___________ are designed to produce a variety of information on an organization's activities for both internal and external users.
Operational support systems
How has globalization helped entrepreneurs?
Outsourcing work to developing nations results in high-quality products for low-cost.
What is a primary benefit of owning a franchise?
Owning a franchise involves less risk than creating a business from scratch
__________ reduces the money supply to curb rising prices, overexpansion, and concerns about overly rapid economic growth.
Restrictive monetary policy
Which of the following do not grant direct loans to small businesses?
SBA
The ____________ protects investors and investigates unethical and illegal actions by publicly traded companies.
SEC
What is the Relationship Era known for?
Seeking ways to actively nurture customer loyalty by carefully managing interaction with buyers
What kind of entrepreneur starts many businesses in succession?
Serial entrepreneur
________ products are those that are purchased after the consumer has compared competing products in competing stores.
Shopping
_________ products are purchased infrequently and are fairly expensive. As a result, the consumer goes through an extended decision-making process before buying.
Specialty
A(n)_______ shows the change in net worth from the end of last fiscal year to the end of the current one.
Statement of owner's equity
________ represents the strength that comes from differences in abilities, knowledge, experience, and other team factors.
Team diversity
Which situation is most likely to undermine team cohesiveness?
Team members are unsure of the team's mission.
How has technology affected small entrepreneurs?
Technology has leveled the playing field to the point that small companies can compete with big companies like IBM.
___________ introduces a new product supported by a complete marketing campaign to a selected city or TV coverage area.
Test marketing
Which era of American business is called the "golden age" because it did so much to advance the U.S. business system and raise the overall standard of living?
The Age of Industrial Entrepreneurs
Identify the business era during which managers began to pay more attention to what consumers wanted and needed rather than simply to what the firm could produce.
The Marketing Era
Identify the federal agency responsible for investigating alleged unethical or illegal financial behavior of publicly traded firms.
The Securities and Exchange Commission
Which organization was formed to monitor GATT agreements?
The World Trade Organization
People who are aware of and respond to their duty to others have achieved:
The conventional stage of ethical development
Which of the following is not one of the reasons people become entrepreneurs?
The desire to work fewer hours.
In what ways does NAFTA benefit Canada, the United States, and Mexico?
The three nations can trade without tariffs or other trade barriers.
Which of the following is true today regarding the business workforce?
The workforce is less independent in nature, rather more collaborative.
Which statement is true about less developed countries?
Their share of the world population will increase in the coming years.
Which best describes the contribution of U.S. small businesses in world markets?
They export nearly a third of all U.S. products each year.
________ is the sum of total variable costs and total fixed costs.
Total costs
A smart phone is a device that combines a cell phone with a PDA.
True
Agents and brokers may or may not take possession of goods, but never take title.
True
All external communication with customers should be designed to create goodwill and contribute to customer satisfaction even when customers are protesting loudly.
True
Banks are among the nation's most heavily regulated businesses.
True
Banks make money primarily because the interest rate they charge borrowers is greater than the interest rate they pay depositors.
True
Double-entry booking states that every accounting transaction must have an offsetting transaction.
True
Generally in the United States, businesses are net users and households are net savers.
True
If the Fed pushes interest rates up, the growth rate in the money supply and inflationary pressures decrease.
True
In spin-off divestitures a new firm is formed by the sale of the assets.
True
Measuring assets, only 3 of the world's 20 largest banks are U.S. institutions.
True
More companies than ever before are turning to social media networks to connect with job seekers.
True
Most firms invest excess cash in marketable securities.
True
One of the primary considerations in deciding what data to protectively store is that which could have severe legal consequences if lost.
True
Private equity funds will invest even in mature companies.
True
Production creates form utility.
True
Publicity is a type of public relations that ties most closely to promoting a company's products.
True
Radio-frequency identification (RFID) technology relies on a computer chip implanted somewhere on a product that emits a low-frequency radio signal identifying the item.
True
Relationship marketing can enhance the ability of a business to compete with other businesses
True
Retailers are known as the final link of the distribution channel.
True
The not-for-profit sector is one of the fastest growing segments of accounting practice.
True
_______ out of every three new jobs is/are created by small business.
Two
The _________ was created in 1934 to administer securities laws and protect investors in public securities transactions.
U.S. Securities and Exchange Commission
Virtually all securities sold through open auctions are:
U.S. Treasury securities.
__________ is the process in which institutions purchase securities from a firm or government and then resell them to investors.
Underwriting
__________ is the power of a good or service to satisfy a want or need.
Utility
Which of the following is the least likely source of financing for new ventures?
Venture capitalists
Why is vision important for an organization?
Vision helps an organization direct its efforts and differentiate itself from its competitors.
Telephone service that is transmitted over the Internet instead of through traditional phone lines is called
VoIP.
Which of these is NOT one of the three basic activities of an organization?
accounting
The _________________ is a set of activities in converting information and individual transactions into financial statements.
accounting cycle
In October 2000, Kellogg Co. agreed to purchase Keebler Foods Co. for $4.3 billion in cash and assumed debt. This was a(n)
acquisition.
What is the primary responsibility of the Securities and Exchange Commission (SEC)?
administering securities laws and protecting investors
Sales promotion consists of all of the following EXCEPT:
advertising.
The EEOC helps employers set up _______________ programs to increase job opportunities for women, minorities, disabled people, and other protected groups.
affirmative action
Which type of business is most likely to operate as a cooperative business?
agricultural
The Federal Reserve manages the money supply, which ________.
allows the economy to expand and inflation to remain in check
The Green Thumb Lawn Service mails postcards in September offering fall and winter clean-up specials. This is an example of:
an effort to stabilize sales after the summer lawn care season ends.
The Macro Corporation has purchased land for $100,000 and has financed 50% of the cost using long-term debt. The effect on its balance sheet is
an increase in assets of $100,000; an increase in liabilities of $50,000.
Paycheck services and huge multifunction copying machines used in operating an organization would be classified as what type of product?
business
Students who graduate from entrepreneurship programs:
are three times as likely to start their own business than those who graduate with management degrees.
DuPont requires more than three times as many assets per dollar of sales compared to Costco. This is a measure of
asset intensity.
Marketers can influence the consumer behavior process
at every step along the way.
Flexible production is often used in the _________ industry.
auto
Natural disasters and power failures affect businesses and cost billions of dollars. To minimize the damage that these events cause, companies should perform
backup planning.
The difference between a nation's imports and its exports is called the ___________.
balance of trade
The financial document that shows how the company's finances are doing at a particular point in time is called a(n):
balance sheet.
Effective delegation requires that employees receive what?
both authority and responsibility.
Coca-Cola, McDonald's, American Express, Google, and Nike are examples of
brand names.
A copy machine is an example of a __________ product.
business
Traditionally, users have purchased software licenses and installed the programs directly on hardware and systems. A new trend, championed by Google, among others, uses powerful servers to store applications outside the individual company but accessible from anywhere via the Web. This new approach is called
cloud computing.
Cohesive teams do all of the following EXCEPT:
coach disgruntled members
Which type of conflict could potentially strengthen a team?
cognitive
An information system should
collect, store, and communicate past, present, and projected information.
A ________ organization places authority and responsibility in the hands of a group of individuals rather than a single manager.
committee
When Tylenol mentions in its advertising that it doesn't upset the stomach like aspirin, what type of advertising is it using?
comparative
Performance appraisals help employers make decision about an employee's:
compensation additional training needs promotion
This training program is becoming increasingly popular since it incorporates video simulations.
computer-based training
This planning activity below involves two components: business continuation and public communication.
contingency
One of the services provided by Northwest Lawn Service is quarterly weed and feed treatments. Because of the possible danger of chemical spills, Northwest should develop a(n)
contingency plan.
Under the provisions of the Sarbanes-Oxley Act, for example, CEOs and CFOs must monitor the performance of the firm's accounting staff more closely. Which management function applies here?
controlling
Milk, coffee, and paper towels are classified as _______ products.
convenience
At which stage of ethical decision making do groups have an influence on what is acceptable and what is not?
conventional
Short-term assets can be, or are expected to be:
converted into cash within a year.
Managers use symbols, rituals, ceremonies, and stories to reinforce_________.
corporate culture
The goal of integrated marketing communications is to ________.
create a unified promotional approach.
Which of the following is NOT a function of the Federal Reserve System?
creating fiscal stimulus packages
Bondholders are ________ of a corporation.
creditors
Which type of team provides the greatest diversity of skill and background of its members?
cross-functional
The ultimate goal of relationship marketing is
customer satisfaction.
Shibui Designs, a custom-made clothing retailer, is an example of _________ production.
customer-driven
Which form of unemployment can best be addressed by economic stimulus actions?
cyclical
The heart of any information system is its:
database.
Business responsibilities to the general public include:
dealing with public health issues. protecting the environment. developing a quality workforce.
A(n) ________ is an unsecured bond backed by the financial reputation of the issuing corporation.
debenture
A(n) ____________ gives support to business people during the decision-making process.
decision support system
DVD players have recently been superseded by new technologies like Blu-ray players and online streaming sites. DVD players are therefore in the ________ stage.
decline
If labor hours increase, the use of natural resources remains the same and output remains the same, productivity will:
decrease.
Which type of listening occurs when the receiver of the message believes the sender is attempting to gain advantage in the communication?
defensive listening
A budget ________ occurs when government spends more than it raises through taxes and fees.
deficit
__________ typically slope downward, meaning that lower and lower prices attract greater quantities purchased.
demand curves
What is the willingness and ability of buyers to purchase goods and services at different prices called?
demand.
The most common form of market segmentation is
demographic.
Which type of leadership is best?
depends on the situation.
Financial managers
develop a financial plan and determine the most appropriate sources and uses of funds.
Which of the following is NOT one of the components of a retail strategy?
developing a logistical plan
Lands' End is an example of a _____________ retailer.
direct-response
The phase of production control in which the manager instructs each department on what work to do and the time allowed for its completion is called:
dispatching.
The use of regional warehouses by big box retailers is a part of their ____________ strategy.
distribution
All of the following are short-term assets EXCEPT
equipment.
__________ involves entrepreneurs exchanging a share of ownership in their business for money supplied by one or more investors.
equity financing
Which would be the best way to obtain short-term financing?
establish a line of credit with the bank
A ________________ is the reverse of a merger, that is, a company sells assets such as subsidiaries, product lines, or production facilities.
divestiture
Which communication channel carries messages from someone who holds a senior position in the organization to subordinates?
downward communication
Which of the following is NOT a method of trade restriction?
dumping
Which of the following is NOT an advantage of a corporation?
ease of formation
When we examine the exchanges that companies and societies make as a whole, we are focusing on what system operating in different nations?
economic system
Inventory turnover describes how efficiently a firm is managing its sales and purchases of inventory. This is an example of a(n) ________ ratio.
efficiency
Which industries were pioneers in using robots in the production process?
electronics and automotive
Which of the plans below benefits employees by giving them ownership stakes in their companies, leading to potential profits as the value of their firm increases?
employee stock ownership plan
Which of the following is an example of how 3M successfully practices intrapreneurship?
employees are allotted 15% of their time to pursue their own ideas.
Theory X assumes that:
employees dislike work and avoid it
The most rewarding benefit of delegation is:
employees feel empowered and happier
What should direct the production manager in choice of company to benchmark?
employs a process for desired study and to emulate
Managers promote _______ by giving employees authority and responsibility to make decisions about their work without traditional managerial approval and control.
empowerment
The interpersonal determinants of consumer behavior include all but which of the following:
end-use influences.
Core inflation rate is the inflation rate of an economy after ________ and _________ prices are removed.
energy; food
Research shows that ISO 9000 certification
enhances a company's competitiveness and leads to improved business performance.
A manufacturing business wishing to locate near a community must first complete a _______________________ that analyzes how a proposed plant would affect the quality of life in the surrounding area.
environmental impact study
Which form of international involvement typically has the least amount of risk?
exporting or importing
The computers that U.S. manufacturers sell in Canada are called:
exports.
In a study of face-to-face communication, which type of cues were the most important in message interpretation?
facial expressions
Most people rely primarily on ______ to interpret messages.
facial expressions
Autocratic leaders make decisions after consulting with their employees.
false
Not-for-profit organizations do not face any of the challenges that profit-seeking businesses do.
false
Virtual offices are trend-driven and are becoming less used by businesses.
false
Consumers usually describe a product by its _________; marketers focus on ________.
features; benefits
A(n) ___________ that is short-term in nature can also be called an operating plan.
financial plan
What are the two most important considerations in choosing an idea for a business?
finding something you love to do and are good at doing; determining if your idea satisfies a need in the marketplace
This _________ system has been enhanced by powerful new software that allows machine tools to be reprogrammed while they are running.
flexible manufacturing
Planning should be _______ and _______ to changes in the business environment.
flexible; responsive
Flexible work plans are becoming more common. Which plan allows employees to set their own work hours within the constraints set by the firm?
flextime
Which of the following is NOT a function of human resource managers?
forecasting revenue
What is the first step in preparing a financial plan?
forecasting sales or revenue
A corporation that does business in states other than the state in which it filed incorporation papers is called a(n):
foreign corporation.
Marketing creates all of the following types of utility EXCEPT:
form.
Markor Inc. has recently experienced substantial growth in international markets. In order to better serve its new customers, Markor should consider organizing based on:
geography.
Tom Colicchio, a successful restaurateur and judge on the reality series Top Chef, discovered that service preferences are different in California than in New York. His product should be segmented based on
geography.
Which of the following is not part of the marketing mix?
government regulation
During the ________ stage, the product finally shows a profit although competition increases.
growth
In September 1982, seven people died in the Chicago area after swallowing Tylenol capsules that had been tainted with cyanide, replaced in their packaging, and put on store shelves for sale. Johnson & Johnson maintained that the tampering could not have been foreseen, and was therefore not its fault, but still recalled all Tylenol capsules and canceled advertising at a pre-tax loss estimated at $100 million. It also developed a capsule-shaped tablet that would be more difficult to tamper with. In doing this, Johnson & Johnson:
handled the situation is a socially responsible way.
Owners of common stock:
have voting rights but only a residual claim on the firm's assets.
Benchmarking
helps a firm determine performance standards and best practices.
Chase is a forensic accountant who has been hired by the local district attorney to investigate a possible case of embezzlement. He found boxes of records that suggest several thousands of dollars of vendor payments might have been falsified. The effect of those false transactions would probably show up as
higher expenses on the income statement.
JetBlue reservation agents work in ___________, an example of a ___________.
home-based offices; distributed workforce.
A(n) _________ combines firms in the same industry that wish to diversify, increase their customer base, cut costs, or offer expanded product lines.
horizontal merger
Small businesses often fail due to:
inadequate financing. management shortcomings. difficulty dealing with government regulations.
John spent at least an hour a day surfing the Internet at work. He justified his behavior by noting that "everyone's doing it." This type of behavior is:
inappropriate, unprofessional, and probably unethical.
During a recession, firms that have a greater degree of leverage have
increased risk.
Team cohesiveness ____________ when members interact frequently, share common attitudes and goals, and enjoy being together.
increases
Borrowing cash allows a company to leverage, _________ the rate of return on funds invested.
increasing
Businesses must first rely on ________ to maintain an ethical organization.
individual employees
Wholesalers are least likely to sell products to:
individuals
The majority of money in the financial system passes through financial ________.
institutions and markets
________ refers to adhering to deeply held ethical standards in business situations.
integrity
A _____ production process generates products in short production runs, shutting down machines frequently or changing their configurations to produce different products.
intermittent
Accounting plays a key role in all of the following EXCEPT:
interpreting macro and micro analyses to report changes in the economy.
Which layout below is NOT part of a basic facility layout?
inventory control layout
A Trojan horse
is a program that claims to do one thing, but in reality does something else, usually malicious.
Discrimination based on gender:
is known as sexism
The breakeven point:
is the level of sales that will generate enough revenue to cover total costs.
Competitive differentiation
is the unique combination of abilities and approaches that sets a company apart.
When a company offers stock for the first time ________.
it is called an initial public offering (IPO).
One of the most effective methods of empowering employees is to
keep them informed of the firm's financial performance.
New competitors are discouraged in an oligopoly primarily because of:
large investment in start-up costs.
Reminder-oriented advertising is often used during the ___________ stage(s) of the product life cycle to maintain awareness of the importance and usefulness of the product, concept, or institution.
late maturity and decline
Sam knows that economic conditions are out of his control. However, he still believes that his efforts can lead to success. He exhibits the entrepreneurial characteristic:
optimism
Small businesses are much more likely to fail than large businesses, especially during economic downturns, because of:
management shortcomings. difficulty dealing with government regulations. inadequate financing.
Consumer Orientation was developed during which era?
marketing era
Which plan below outlines its marketing strategy and includes information about the target market, sales and revenue goals, the marketing budget, and the timing for implementing the elements of the marketing mix?
marketing plan
Standardization is a key component of the _________ system.
mass production
During which stage of the product life cycle do sales reach a saturation point?
maturity
Mass production creates high productivity through:
mechanization
If an employee files a grievance that cannot be settled by the highest company officer, what is the next step?
mediation
A(n) _________ consists of two or more firms combined to form one company.
merger
A _______ guides the actions of employees, and publicizes the company's reasons for existence.
mission statement
In which market structure are there large numbers of buyers and sellers, each of whom has some control over price?
monopolistic competition
The market structure that is most likely to be regulated is
monopoly.
A cash budget is usually prepared once a ______.
month
An example of an installation would be
new factories and heavy equipment.
Local advertising is currently dominated by:
newspaper.
Which communication element below is a type of interference that influences the transmission of messages and feedback?
noise
Consensus about the leader's role develops in the ________ stage.
norming
During which stage of development does a team resolve differences and accept each other?
norming
The U.S. Postal Service and the American Heart Association are called
not-for-profit organizations.
__________ set guideposts by which managers define the organization's desired performance in such areas as profitability, customer service, growth, and employee satisfaction.
objectives
Securities are:
obligations on the part of the borrower to provide returns on funds invested or loaned.
A small retailer would be most interested in a location that
offered many transportation alternatives.
Managing customer relationships instead of focusing on transactions
often leads to long-term, cost-effective exchange relationships.
Alec's company experiences fairly steady computing demand except for the weekend after Thanksgiving when traffic spikes. Since his company is relatively small, he doesn't want to invest in resources that will be used fairly seldom. Alec is considering
on-demand computing
Which of the following inputs would NOT be considered a factor of production?
product
A group of related products marked by physical similarities or intended for a similar market is called?
product line
Campbell's Soup, V-8 juices and soup, and Pace Picante sauce are part of the Campbell Company
product mix.
Which strategy below includes decisions about package design, brand names, trademarks, warranties, product image, new-product development, and customer service?
product strategy
The __________ is just as crucial in nonprofit organizations, such as the Mayo Clinic and Goodwill Industries, because the goods or services they offer justify their existence.
production process
Which of the following is NOT an example of corporate philanthropy:
products in exchange for free advertising
In a matrix structure, each employee reports to two managers: one line manager and one _______manager.
project
The goal of just-in-time inventory systems is to ____________.
provide the right part at the right place at the right time
Which of the following is NOT a typical method of segmenting B2B markets?
psychographic
Which type of accountant is called upon to provide unbiased advice about a firm's financial condition?
public accountant
A ________ strategy is used to generate consumer demand.
pulling
The _________ strategy attempts to promote a product by generating consumer demand for it primarily through advertising and sales promotion.
pulling
The four basic types of competition that take shape in a private enterprise system are:
pure competition, monopolistic competition, oligopoly, and monopoly.
Which era below emphasizes customer satisfaction and building long-term business relationships?
relationship era
Robots are useful for jobs that are:
repetitive or dangerous.
Which of the following is NOT an example of a job for which a law firm would turn to outsourcing?
representing clients in court
The Family and Medical Leave Act of 1993:
requires firms with 50 or more employees to provide up to 12 weeks of unpaid leave for workers who need to attend to family matters
Strategic planning determines the primary objectives of a business organization and requires the action of allocating _________.
resources
There are two types of short-term bank loans: line of credit and ____________ agreements.
revolving credit
In performing their jobs, most finance professionals seek to balance
risk and reward.
The process of maximizing the wealth of the firm's shareholders by striking the optimal balance between risk and return is called
risk-return trade-off.
Firms can help meet employees' _________ needs by providing affordable health coverage and a company sponsored pension plan.
safety
The office for a producer's salespeople is called a:
sales office
The era in marketing history that believed creative advertising and selling would overcome consumers' resistance is:
sales.
Retailers differ from wholesalers in that they:
sell to the individual customer.
Which category of entrepreneurs would be most likely to start one business, run it, and then start and run additional businesses in succession?
serial entrepreneur
Cooperatives allow members to:
share equipment share in other efforts such as marketing benefit from group purchasing discounts
China once enjoyed an absolute advantage in which industry?
silk
Successful strategic planners typically follow the ____steps.
six
Most business communication takes place within the _________ zone.
social
Samuel Kaymen, founder of Stonyfield Farm, was devoted to fostering what type of entrepreneurship?
social
What kind of entrepreneur focuses on societal problems and their solutions?
social
___________is an admired management philosophy that believes in contributing to the community and protecting natural resources.
social responsibility
Which is the most common form of business ownership?
sole proprietorship
In order to provide motivation, goals should be:
specific and challenging.
Municipal bonds are issued by ________.
state or local governments
Which type of planning has the most long-range view?
strategic
A ______ is a partnership formed to create competitive advantages for the businesses involved.
strategic alliance
Unlike ______ planning, which focuses on the organization as a whole, ______ planning deals with developing and implementing tactics in specific functional areas.
strategic, operational
Individuals who remain unemployed for long periods due to a lack of demand for a skillset, are typically experiencing:
structural unemployment
Businesses must provide employees the tools and training they need to evaluate the options and arrive at _______________________ .
suitable decisions
Which of the following is not one of a firm's three usual management levels?
technical
Capital includes
technology, tools, information, and physical facilities.
Which of the following is NOT one of the components of a computer-based information system?
telecommuting networks
One of America's leading types of advertising media is:
television.
For capitalism to operate effectively, the citizens of a private enterprise economy must have certain rights. Which of the following would NOT be considered part of the private enterprise system?
the Age of Industrial Entrepreneurs
Companies are required to publish their codes of ethics and inform the public of any changes to them because of what?
the Sarbanes-Oxley Act
The procedure by which accountants convert data about individual transactions to financial statements is called
the accounting cycle.
In a large corporation, which executive reports to the Chief Executive Officer and is largely responsible for setting financial policy?
the chief financial officer
Economics is the study of ____________.
the choices people and governments make when allocating scarce resources
Business ethics are shaped by:
the company's upper management. the ethical climate in the organization. the company's code of ethics.
A firm's ability to behave ethically depends upon what?
the ethical values of the firm's executives. the ethical values of the firm's employees. a climate within the organization that promotes ethical conduct.
Since suppliers often offer virtually identical quality levels and prices, the final decision on supplier selection often depends on what?
the firm's past experience with each supplier.
Which government organization sets standards for advertising conducted by drug manufacturers?
the food and drug administration (FDA)
The financial statement that describes the firm's financial performance over a specified period of time is
the income statement.
Changes in the demand curve can be caused by all of the following factors except
the number of suppliers.
How does a partnership differ from a sole proprietorship?
the partnership is more difficult to dissolve.
An example of "noise" in the communication process would be what?
the phone ringing when you are trying to read an e-mail. losing cell phone connection during a conversation. a difference in perceptions or attitudes between the sender and receiver.
The consumer rights first outlined by President Kennedy in 1962 include:
the right to be informed, the right to be safe, and the right to choose
Most firms base their compensation policies on what?
the salaries and wages paid by other companies who hire similar employees.
Who owns the corporation?
the shareholders
Risk is
the uncertainty of gain or loss.
Entrepreneurship is
the willingness to take risks.
Small businesses are more likely than large ones to hire:
the youngest and the oldest workers.
Which of the following is NOT a major promotional objective?
to build goodwill with consumers
Two of the most common reasons for downsizing are
to cut overhead costs and streamline the organizational structure.
All of the following are goals of consumer-oriented promotions EXCEPT:
to encourage retailers to stock new products.
Which of the following is not listed as a reason people generally become entrepreneurs?
to have an opportunity to do a "greater good" for society
What is the major goal of public relations?
to improve a company's prestige and image with the public
Industries were deregulated in the 1980s and 1990s _______________.
to improve customer service and reduce prices
How do stockholders and potential investors use accounting information?
to make investment decisions.
Nations trade _______________.
to provide markets for products and access to needed resources
What is the overriding responsibility of an entrepreneur?
to use the company resources to accomplish goals
All of the following are examples of e-crimes EXCEPT
when a customer calls, a new window automatically pops up on a computer screen with the customer's information and account history.
Creative selling is needed in what type of situations?
when promoting a good or service whose benefits are not readily apparent
A firm that has operations in many regions wants to link its computer systems for increased productivity. It should consider a
wide area network (WAN).
The current standard for wireless networks is called a
wireless fidelity (WiFi).
