Principles of Business Final Review

companies that operate at the international level should be aware of political factors that affect trade, such as civil unrest or a. embargoes b. currency rates c. business cycles d. competitors

a. embargoes

a wholesale distributor would like to track its customers geographically. which software application would be most effective (NF:003) a. database b. word processing c. spreadsheet d. internet

a. database

a business company that fails to protect its employees from unnecessary risk or health hazard on the job may be sued for (BL:001) a. negligence b. misrepresentation c. libel d. incompettence

a. negligence

which of the following is a measure of how well a business generates cash flow (FI: 354) a. return on capital b. accounts receivable c. capital structure d. accounts payable

a. return on capital

what role does utility play in the implementation of the marketing concept (EC:004) a. satisfaction gauge b. payment method c. cost saving tool d. delivery process

a. satisfaction gauge

Juan's Fishing Shack demonstrates effective information management by a. removing wasted materials from the process of providing goods to customers b. accessing a list of fishing equipment appropriate for a particular customer c. hiring fishing experts to explain how to use the goods offered d. promoting new fishing equipment in a popular trade magazine

accessing a list of fishing equipment appropriate for a particular customer

In economics, the term capital goods includes (EC:001) a. Labor and management b. Buildings and equipment c. Trees and water d. Mental and physical work

b. Buildings and equipment

Formal relationships and a distinctive chain of command of command are characteristics of the ___ organizational business structure a. Organic b. Mechanistic c. Decentralized d. Imperial

b. Mechanistic

Which of the following situations would most likely indicate the need to adapt to changes in the business environment (EC: 107) a. The number of your business's competitors has decreased b. The supply of materials used in manufacturing a product has decreased c. The demand for your product is stable d. The business has experienced little employee turnover during the past year

b. The supply of materials used in manufacturing a product has decreased

which of the following is a key component of managing working capital (FI: 354) a. financing b. cash conversion cycle c. capital budgeting d. capital structure

b. cash conversion cycle

the law that requires businesses to hire, train, transfer, and promote employees without regard to race, color, gender, religion, or national origin is the ___ Act (BL:001) a. sherman antitrust b. civil rights c. robinson-patman d. federal reserve

b. civil rights

why is a good accounting system important to a business (FI: 085) a. it gives the business an image of success b. it shows the business how its doing c. it prevents any financial losses d. it increases the return on investment

b. it shows the business how its doing

accounting is distinct from finance because its main focus in on (FI:354) a. money management decisions b. record keeping activities c. administration of assets d. acquisition of funds

b. record keeping activities

an advantage to a business of filing Chapter 11 bankruptcy is that the process allows the business to (BL: 001) a. lioquidate b. reorganize c. eliminate taxes d. sell assets

b. reorganize

a business is planning a sale and needs to know what sales were for a particular weekend in the previous year. which of the following accounting records would provide this information (FI:085) a. disbursement journal b. sales journal c. bank statemnt d. income statement

b. sales journal

one reason that businesses use matrix organization design is to (EC:103) a. improve employee productivity b. share human resources c. segment areas of expertise d. standardize business tasks

b. share human resources

each purchase strengthens the economy by encouraging (EC:010) a. expansion b. trade c. investment d. competition

b. trade

When marketers provide information about an available product, consumers are more likely to (EC: 004) a. Request a payment plan b. Ask questions about the product c. Buy the product d. Put the product on layaway

c. Buy the product

A country with a weak currency value tends to (EC: 016) a. Experience high unemployment rates b. Gain consumer confidence which limits spending c. Decrease its imports and increase its exports d. Rely solely on trade centers to manage the flow of exports

c. Decrease its imports and increase its exports

One way that competition benefits business is by encouraging the creation of (EC:012) a. Unrelated firms b. More regulations c. New companies d. Limited resources

c. New companies

A socially responsible business will attempt to give customers (EC:070) a.High quality products at high prices b.Lower quality products at related prices c. The best products at the best prices d. The best products no matter what the cost

c. The best products at the best prices

the overall purpose of accounting is to (FI: 085) a. maintain accurate reports b. control the finances of the business c. compile the business's expenses d. keep track of sales

c. compile the business's expenses

the ultimate goal of all economic activity is (EC:001) a. exchange b. production c. consumption d. distribution

c. consumption

which of the following factors affects society's basic values and behaviors that influence their buying decisions (EC:015) a. political b. economic c. cultural d. environmental

c. cultural

which of the following is a characteristic of the organic organizational business structure (EC:013) a. centralized authority b. specialization emphasis c. delegation emphasis d. inflexible procedures

c. delegation emphasis

wendy's sells the right to operate its restaurants to individuals who meet the company's criteria. the arrangement between Wendy's and these individuals is an example of (BL: 003) a. licensing b. multi-level marketing c. franchising d. a partnership agreement

c. franchising

which of the following are qualities of monopolies (EC:012) a. high prices and much competition b. low production and much competition c. high prices and low production d. low prices and little competition

c. high prices and low production

identify the term that best represents marketing's role in society (MK:001) a. producer b. pioneer c. problem solver d. peacemaker

c. problem solver

which of the following is a marketing activity (MK:001) a. leading b. balancing c. promoting d. commiting

c. promoting

if expenses are greater than income, there's no (EC:010) a. sales b. risks c. reward d. guarantee

c. reward

retailing takes place whenever goods are (EC:070) a. offered for sale b. exchanged for other goods c. sold to the ultimate consumer d. sold in a retail establishment

c. sold to the ultimate consumer

which of the following examples illustrates how environmental factors are interrelated (NF:015) a. low investor confidence heavily impacts financial planners b. new legislation will be written in the future c. the economy affects what competitors are doing d. the economy affects banking institutions

c. the economy affects what competitors are doing

which of the following is a reason that the role of human resources management is changing : (HR:410) a. employees place a greater emphasis on work over personal lives b. business costs are going down c. there is greater diversity in the workplace d. the workforce is younger than ever

c. there is greater diversity in the workplace

a nation that exports more than it imports maintains a (EC:016) a. trade deficit b. balance of trade c. trade surplus d. lower standard of living

c. trade surplus

contractual agreements such as guarantees, surety bonds, and leases are examples of handling through (EC:011) a. prevention or control b. management c. transfer d. avoidance

c. transfer

carefully selecting goods or services to sell is an example of handling business risks by ___ the risk

controlling

A bank denies a business owner's application for credit saying, "we fell that you would be unable to make the monthly payments because of you other debts" What financial report did the bank review (FI: 085) a. Operating budget b. Budget c. Income statement d. Balance sheets

d. Balance sheets

One of the benefits of production to consumers is that production (OP: 017) a. Provides a way to be competitive b. Provides a way to be competitive c. Make use of automation d. Creates form utility

d. Creates form utility

which of the following demonstrates the interrelationship among primary business activites (EC: 071) a. a business manager becomes vice president, so his/er department must adjust to the change b. a A business changes its goals, so its strategies and tactics change, too c. a new product is introduced, so business advertisements must adjust in response d. One business activity changes so the others must adjust in response

d. One business activity changes so the others must adjust in response

Gross profit shows business owners the difference between what they've (EC: 010) a. Estimated and invoiced b. Paid and risked c. Received and billed d. Spent and received

d. Spent and received

management decides to hold its annual meeting in one US city rather than another because of crime in that city. This is an example of ___ the risk (EC: 011) a. transferring b. preventing or controlling c. retaining d. avoiding

d. avoiding

jake wanted to run his own business but was unsure that he had adequate business skills to be successful. Which type of business would give Jake the help he needs: (BL:003) a. product trade name franchise b. private corporation c. sole proprietorship d. business format franchise

d. business format franchise

business that successfully adapt to current market situations often realize that (EC:107) a. cutting costs is important b. more financing is necessary c. diversification is the key d. change is an opportunity

d. change is an opportunity

levels of inflation and unemployment are factors that affect ___ in the world market (EC:016) a. communication b. satisfaction c. specialization d. competition

d. competition

managing information regarding copyrights and trademarks helps a company to preserve its (NF: 110) a. customers b. identity c. inventory d. correspondence

d. correspondence

one of the benefits of production to consumers is that production (OP:017) a. provides a way to be competitive b. provides a way to earn profits c. makes use of automation d. creates form utility

d. creates form utility

what type of trend are business considering when they analyze where customers live and their ethnic backgrounds a. cultural b. environmental c. technical d. demographic

d. demographic

changes in the market that cause prices to go up or down, products to change, and businesses to succeed or fail are examples of ___ risks (EC:011) a. natural b. competitive c. human d. economic

d. economic

which of the following is the best action for businesses to take in order to adapt to changing markets (EC:107) a. focus efforts on the business's product with the highest profit b. protect the business's core products c. reduce investments in research and development d. implement innovative strategies and ideas

d. implement innovative strategies and ideas

Overall, what does marketing allow us to do? (MK:001) a. feel better about shopping b. stop buying online c. limit our spending d. live our daily lives

d. live our daily lives

which of the following is an environmental factor that affects the performance of businesses that market products on a global level a. land formation b. storage space c. health coverage d. political risk

d. political risk

which of the following situations involves finding an alternative resource to use in place of a nonrenewable natural resource (EC:003) a. searching for oil in new locations such as the ocean floor b. passing legislation to prevent the killing of endangered animals c. generating energy from wind turbines instead of solar panels d. powering a motor vehicle with biodiesel instead of gasoline

d. powering a motor vehicle with biodiesel instead of gasoline

which of the following is an example of a business using technology to improve the efficiency of its salespeople (NF:003) a. accepting debit transactions b. installing video catalogs c. offering ATM machines d. providing laptop computers

d. providing laptop computers

Online chats, forums, and communities that enable businesses to learn about the wants and needs of their worldwide target market have created a new form of (EC:045) a. cultural values b. class systems c. gender roles d. social relationships

d. social relationships

which change provides the most time utility for a customers (EC: 004) a. asking for early delivery of a product b. arriving at a product trade show early c. shopping for a product in the morning d. starting open for a business on the weekend

d. starting open for a business on the weekend

an important factor that has a significant effect on the general business environment is (EC:015) a. organization b. geography c. reputation d. technology

d. technology

what are the three basic economic questions (EC:001) a. where will products be produced; when will products be produced; and what products will be produced? b. when will products be produced; how will products be produced; and how will products be allocated c. when will products be produced; what products will be produced; and how will products be allocated d. what products will be produced; how will products be produced; and how will products be allocated

d. what products will be produced; how will products be produced; and how will products be allocated

jeremiah purchases sterling silver necklaces and bracelets from native american artisans and sells the items to jewelry stores and gift shops. What kind of buyer is Jeremiah (OP:015) a. business use b. retail c. industrial d. wholesale

d. wholesale

how does the finance function relate to company spending (FI: 354)

it plans and controls spending

after a company's training needs are determined, what is the next step in training and development (HR: 140)

managing employee perfomances

which of the following is a reason that the role of human resources management is changing a. employees place a greater emphasis on work over personal lives b. the workforce is younger than ever c. there is greater diversity in the workforce d. business costs are going down

there is greater diversity in the workforce