Principles of Business pt. 3

153. Running out of inventory can result in A. lost sales. B. higher taxes. C. higher productivity. D. more satisfied customers.

a

117. After a company's training needs are determined, what is the next step in training and development? A. Determining what training resources are available B. Managing employee performances C. Keeping records for personnel files D. Dismissing employees who are not up to standard

a

126. One reason why it is important for businesses to identify and respond to current business trends is to A. remain competitive. B. control performance. C. encourage feedback. D. improve motivation.

a

127. What is one way that the trend towards protecting the environment has a negative effect on many businesses? A. Increases costs B. Reduces pollution C. Promotes growth D. Decreases prices

a

129. What type of trend are businesses considering when they analyze where customers live and their ethnic backgrounds? A. Demographic B. Environmental C. Technical D. Cultural

a

132. Which of the following is an example of a demographic trend: A. The aging of the population B. Shifting political climates C. Rising interest rates D. A concern for fitness and health

a

140. Which of the following is a trend in information management: A. Increased compliance laws and regulations B. Decreased competition C. Decreased number of electronic documents D. Increased number of workers in the office

a

149. How does marketing-research data help a business's production planning? A. By identifying consumers' needs and wants B. By determining how products will be produced C. By identifying resources needed in production D. By setting the timetable to use in production

a

150. Why is routing an important production activity? A. Routing establishes the production path of inputs. B. Routing issues orders for production to start. C. Routing establishes a timetable for production. D. Routing establishes company standards.

a

152. A clothing manufacturer checks one pair of pants out of every shipment to ensure the quality of its product. This process is known as quality A. inspection. B. guarantee. C. delivery. D. assurance.

a

108. In order for an accounting system to be useful to the business, the accounting information it contains must be A. posted by an accountant. B. approved by the chief executive officer. C. accurate and up-to-date. D. recorded using the accrual method.

c

130. The growth of e-commerce is changing the way companies do business by allowing them to A. place high prices on their products, B. communicate with similar organizations. C. be accessible to customers at all times. D. reduce the services they provide customers.

c

115. Which of the following is a measure of how well a business generates cash flow: A. Return on capital B. Accounts receivable C. Capital structure D. Accounts payable

a

109. 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: A. Disbursement journal B. Sales journal C. Bank statement D. Income statement

b

111. Accounting is distinct from finance because its main focus is on A. money management decisions. B. record-keeping activities. C. administration of assets. D. acquisition of funds.

b

112. How does the finance function relate to company spending? A. It produces reports about spending. B. It plans and controls spending. C. It spends on investment only. D. It does not relate to spending.

b

114. Which of the following is a key component of managing working capital: A. Financing B. Cash conversion cycle C. Capital budgeting D. Capital structure

b

131. A main reason that environmental scanning is important is so that businesses can be aware of A. new products. B. potential threats. C. competitors' internal environments. D. foreign markets.

b

147. Why is production important to businesses? A. It prevents businesses from wasting resources. B. It creates goods and services businesses can sell. C. It enables businesses to charge high prices. D. It informs businesses about consumers' needs and wants.

b

133. Which of the following examples illustrates how environmental factors are interrelated: 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

135. A business should conduct environmental scans on a continuous basis so that it can A. control the external environment. B. change customers' attitudes. C. save money. D. respond to opportunities and threats quickly.

c

142. Which of the following is a detail that a buyer should know prior to placing an order for raw materials? A. Which employees will be converting the raw materials into finished products B. How the finished product will be marketed C. Whether the company has storage space for the raw materials D. Who will be purchasing the finished products

c

143. Annika, the purchasing specialist for Dottie's Donut Shop, just located a new, less expensive sugar supplier. Dottie does not plan to lower donut prices. If Annika buys the shop's sugar from this cheaper supplier, what is likely to happen? A. Donut sales will increase. B. Donut sales will decrease. C. The profit margin for donuts will increase. D. The profit margin for donuts will decrease.

c

144. Jaron, the district technology coordinator for Abington City Schools, is responsible for purchasing new computers for the district. He recently sent out a request for price quotes to five different computer companies, and he is waiting to hear what the various suppliers' proposed prices will be. Jaron is conducting A. a make-or-buy decision. B. negotiations. C. competitive bidding. D. retail buying

c

148. Efficient production enables businesses to A. make an accurate forecast of sales. B. obtain advance orders for goods and services. C. turn out the most products at the least cost. D. charge higher prices than competitors.

c

151. Operations managers have two main goals in mind-efficiency (keeping costs low) and A. productivity (keeping business running fast). B. legality (keeping the business in good standing with the law). C. effectiveness (keeping customers satisfied). D. reputation (keeping up the business's good name).

c

110. A bank denies a business owner's application for credit saying, "We feel that you would be unable to make the monthly payments because of your other debts." What financial report did the bank review? A. Operating budget B. Budget C. Income statement D. Balance sheet

d

113. The finance function would definitely be involved in a decision regarding A hiring. B. public relations and publicity. personal selling. C. Yeet D. new business projects and strategies.

d

116. In what way might a human resources manager be involved in employee benefits? A. Choosing an employee's vacation days B. Selecting an employee's personal plan options C. Collecting insurance payments from employees D. Determining eligibility and costs of benefits

d

128. As the use of information-management systems continues to grow, it is important for businesses to be concerned with their customers' A. need for information. B. access to credit. C. level of service. D. rights to privacy.

d

134. Which of the following would be done first in an environmental scan: A. Carrying out scanning activities B. Identify and analyzing important trends and issues C. Selecting trends and issues to act on D. Identifying participants and responsibilities

d

136. Appropriate information management saves businesses time and money by A. maintaining yearly raises for employees. B. increasing information overload. C. increasing "paper trails." D. maintaining higher levels of productivity.

d

137. How does appropriate information management affect a business's relationship with its customers? A. Businesses make better financial decisions. B. Businesses earn higher profits. C. Businesses lose focus on customers. D. Businesses serve customers more effectively.

d

138. Managing information regarding copyrights and trademarks helps a company to preserve its A. customers. B. inventory. C. correspondence. D. identity.

d

139. Information management can be a challenge because A. no one wants to participate in it. B. there is often not enough information to manage. C. there is only one "right" way to do it. D. many people don't understand what it is.

d

141 .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? A. Business use B. Retail C. Industrial D. Wholesale

d

145. Which of the following is a way to evaluate supplier performance after the purchased goods · or services have been delivered: A. Check the supplier's credentials B. Contact the supplier's references C. Visit the supplier's plant D. Review the invoice

d

146. One of the benefits of production to consumers is that production A. provides a way to be competitive, B. provides a way to earn profits. C. makes use of automation. D. creates form utility.

d

154. Complying with environmental laws is part of which operations activity? A. Inventory control B. Logistics C. Purchasing D. Safety and security

d

155. Because operations managers control so much of a business's money, they must focus on A. generating publicity. B. hiring the best employees. C. creating effective advertising campaigns. D. keeping costs low.

d

156. A manager studies the business's previous sales statistics as well as the sales forecast before making purchasing decisions. What type of resource is the manager using? A. Material B. Financial C. Human D. Information

d