BA 101
Intrapreneur
, creative people who work as entrepreneurs within corporations
When Segway first launched in 2001 they expected to sell 50,000 to 100,000 units in the first 13 months. About how many units did they actually sell in the first 6 years?
30,000
Currently in the video our margins on our Sports Stores sales are
35%
What was the amount of fraud that prosecutors estimated Bernie Madoff took from his investors?
64.8 Billion
How many boxes are there on the Business Model Canvas to fill out?
9
What is TRUE about forms of businesses?
A Limited Liability Company is a combination of corporations and partnerships, Sole Proprietorship is the most common and easiest way to start a business, Partnerships require at least two owners
Which of the following statement is CORRECT?
A country should produce the product that it has a comparative advantage in
According to Video 5: Making your fourth year decisions, what is a dividend?
A dividend is a payment by a company to its shareholders.
If you turn ------ cash into inventory, but ------ inventory back into cash, you may run out of cash!
A lot of, less
To prevent forgery, everyone generates a __________ pair.
A public/private key
The benefit(s) of Joint Ventures is/are
Access to a foreign market where goods need to be produced locally
Which value on the Balance Sheet shows how much Property Plant and Equipment has been used up?
Accumulated depreciation
The accounting equation is made up of
Assets = Liabilities + Owners' Equity
Common Stock shows up on the -------
Balance sheet
The primary purpose of this law is to give an honest debtor a "fresh start" in life by relieving the debtor of most debts
Bankruptcy
MikesBikes is a business simulation which allows you to run your own virtual company. What industry is your company in?
Bicycle Industry
is defined as individuals and organizations that buy goods and services to use in production or to sell, rent, or supply to others.
Business to Business (B2B)
Which of the following statements is correct about technology in manufacturing?
CAD is used in the product design process
is a regional group of countries with a common external tariff, no internal tariffs, and coordinated laws to facilitate exchanges among members.
Common market
How can companies retain and motivate employees?
Communicate the company's vision, Embrace change, Promote corporate ethics, Stress accountability and responsibility
Companies paying bribes to gain access to lucrative business contracts can be labeled as using
Corruption
Which of the following examples is NOT bundling?
Costco packaging two ketchup bottles instead of one
Which of the following is CORRECT about exporting?
Countries should export products with the lowest opportunity costs
When using this function, it is infeasible to compute in the reverse direction
Cryptographic hash
An electronic funds transfer system is a combination of a credit card, debit card, phone card, driver's license card, and more.
False
Mediation can be either binding or non-binding.
False
The group within the Federal Reserve that is in charge of setting interest rates is
Federal Open Market Committee (FOMC)
This cross-industry agency investigates false and deceptive advertising and promotion
Federal trade commision
Marketing concept: customer orientation
Find out what consumers want and provide it for them. (Note the emphasis on meeting consumer needs rather than on promotion or sales.)
Marketing concept: service orientation
Find out what consumers want and provide it for them. (Note the emphasis on meeting consumer needs rather than on promotion or sales.)
Knowledge management
Finding the right information, keeping it in a readily accessible place, and making it known to everyone in the firm together constitute the tasks of
Profit orientation
Focus on those goods and services that will earn the most profit and enable the organization to survive and expand to serve more consumer wants and needs.
is investment of resources in business activities outside the home country.
Foreign Direct Investment
All of the following are examples of impacts of a falling dollar, EXCEPT
Gas prices rise significantly
What allows Nike to use mass customization to produce their shoes?
Information technology, Workstations and machines able to perform different tasks, Flexible manufacturing process
The --- acts as an "inside entrepreneur" who focuses on innovation and creativity while operating within the goals and environment of an organization.
Intrapreneur
Which of the following is INCORRECT about dumping?
It is legal in the U.S
Raising funds through borrowing to increase the firm's rate of return is referred to as
Leverage
----- is when a firm provides the rights to manufacture its products or use its trademark to an another firm.
Licensing
What decision areas are you responsible for in the first year of the MikesBikes simulation?
Pricing and promotion
What does the acronym "ROE" stand for?
Return on equity
All of the following actions by the Federal Reserve slow the economy in the long run, EXCEPT
The Fed buys government bonds
Discount rate
The interest rate that the Fed charges for loans to member banks.
When it comes to cryptocurrency, the currency is
The transaction history .
A company focusing on the key activities it is best at and outsourcing the rest is described in the lecture as a:
Value Chain
All of the following are standards for a useful form of money, EXCEPT
Visibility
What can stockholders do?
Vote for members of the Board of Directors
The largest U.S. bank failure in history with $307 billion in assets under management was by this bank
Washington mutual bank
Observational research is a good approach because sometimes when you ask people questions, all of these things can cause issues, EXCEPT
Watching people can be a violation of privacy
Outside users of financial information are interested in all of the following things, EXCEPT
What new products will be released this year?
Which of the following statements is INCORRECT??
When the price of a good increases, quantity demanded of that good increases
The advantage of having an automatic inventory system that alerts wholesalers immediately of inventory levels in a store is
You don't have to keep extra inventory in the store, You can fit more product in your store, You can rent out that extra space in the store do different businesses
On the Market Summary page you can see the results from your previous round's decisions including
Your bike's position depending on different criterias relevant to what customers care about, Your number of sales and lost sales, Your Market Share
State Capitalism
a combination of free markets and some government control.
foreign subsidiary
a company owned in a foreign country by another company, called the parent company.
Contract manufacturing
a foreign company produces private-label goods to which a domestic company then attaches its own brand name or trademark
Line of credit
a given amount of unsecured short-term funds a bank will lend to a business, provided the funds are readily available.
Monopolistic competition
a large number of sellers produce very similar products that buyers nevertheless perceive as different, such as hot dogs, sodas, personal computers, and T-shirts.
Corporation
a legal entity with authority to act and have liability apart from its owners
Enterprise resource planning (ERP)
a newer version of MRP, combines the computerized functions of all the divisions and subsidiaries of the firm—such as finance, human resources, and order fulfillment—into a single integrated software program that uses a single database.
general partnership
a partnership in which all owners share in operating the business and in assuming liability for the business' debts
Credit unions
are nonprofit, member-owned financial cooperatives that offer the full variety of banking services to their members—interest-bearing checking accounts at relatively high rates, short-term loans at relatively low rates, financial counseling, life insurance policies, and a limited number of home mortgage loans.
The balance sheet must always
balance
consumer market
consists of all the individuals or households that want goods and services for personal consumption or use and have the resources to buy them.
Supply chain (value chain)
consists of all the linked activities various organizations must perform to move goods and services from the sources of raw materials to ultimate consumers.
Total product offer
consists of everything consumers evaluate when deciding whether to buy something.
Which distribution strategy involves selling goods and services to customers in their homes or workplaces?
direct selling
The number of trademark applications has decreased over the years.
false
Rack jobbers
furnish racks or shelves full of merchandise, like music, toys, accessories, and health and beauty aids, to retailers
Utility
in economics, is the want-satisfying ability, or value, that organizations add to goods or services by making them more useful or accessible to consumers than they were before.
Sometimes referred to as 'too much money chasing too few goods' is
inflation
Successful entrepreneurs learn to fail ------
intelligently
importing
is buying products from another country.
environmental scanning
is the process of identifying factors that can affect marketing success.
Form utility
is the value producers add to materials in the creation of finished goods and services, such as by transforming silicon into computer chips or putting services together to create a vacation package
Consideration
means something of value.
The largest generation in the U.S. representing one-quarter of the total population.
millenials
Multinational corporation
one that manufactures and markets products in many different countries and has multinational stock ownership and management.
PMI
or listing all the pluses for a solution in one column, all the minuses in another, and the implications in a third. T
Mission Statement
outlines the organization's fundamental purposes. It should address: The organization's self-concept. Its philosophy. Long-term survival needs. Customer needs. Social responsibility. Nature of the product or service.
How can we maximize profit?
raise prices
Demand
refers to the quantity of products that people are willing to buy at different prices at a specific time. Generally speaking, the quantity ------- will increase as the price decreases.
Business law
refers to the rules, statutes, codes, and regulations that provide a legal framework for the conduct of business and that are enforceable by court action.
Operating expenses
rent, salaries, supplies, utilities, and insurance.
Owners equity
the amount of the business that belongs to the owners, minus any liabilities the business owes. The formula for owners' equity, then, is assets minus liabilities.
Product mix
the combination of all product lines offered by a manufacturer
involuntary bankruptcy
the creditors start legal action against the debtor.
voluntary bankruptcy
the debtor applies for bankruptcy
Liquidity
the ease with which they can convert them to cash. Speedier conversion means higher liquidity.
Monetary Policy
the management of the money supply and interest rates by the Federal Reserve Bank.
Federal reserve
the organization in charge of money in the United States.
Factoring
the process of selling accounts receivable for cash.
Intermittent process
the production run is short (one or two eggs) and the producer adjusts machines frequently to make different products (like the oven in a bakery or the toaster in a diner).
Intermediaries, such as retailers, add ------ to products by making them available when consumers need them.
time utility
World Trade Organization (WTO)
to mediate trade disputes among nation
A product mix is a combination of all product lines offered by a company.
true
The management process deals with uncertainty and risk in complex and specialized competitive markets.
true
With increased Risk there will be increased reward.
true
You have the choice of modifying your existing product with a Cost Reduction Development Project. This will reduce the prime cost of your products, making them cheaper to produce. Assume you sold 19,000 units of your Mountain Bike last year and the current Prime Cost (manufacturing cost per unit) for that Mountain Bike is $190 per unit. For $1,000,000 you can reduce your Prime Cost to $120 per unit. If you went ahead with this development, how much is this project likely to save you in production costs over the next year if sales remain constant?
$1,330,000
Common market
(also called a trading bloc) is a regional group of countries with a common external tariff, no internal tariffs, and coordinated laws to facilitate exchange among members
Whistleblowers
(insiders who report illegal or unethical behavior) must feel protected from retaliation.
Industrial goods
(sometimes called business goods or B2B goods) are products used in the production of other products. They are sold in the business-to-business (B2B) market.
If the University of Oregon has $12.3 million in debt, and $7.5 million in equity, what is their Debt-to-Equity Ratio?
1.64
If we have a total capacity of 250 SCU and it takes 0.25 SCU to make a youth bike, we can make ______ youth bikes.
1000
In our production planner we need to adjust our Production Qty. to
23,500
According to the video, "How to Write a Business Plan", when writing a business plan, how many different sections should there be to it?
6
In the U.S. alone, entrepreneurs start more than ------businesses a year.
6 million
What is NOT correct about Top Management?
CIO stands for Chief Intelligence Officer
Certified Public Accountant (CPA)
CPAs find careers as private or public accountants and are often sought to fill other financial positions within organizations.
The Income Statement tells us all of the following information, EXCEPT
Cash
Which of the following shows the order of liquidity for current asset accounts?
Cash, Accounts Receivable, Inventory
A savings account that earns interest, to be delivered on the certificate's maturity date is a
Certificate of deposit
Which of the following is NOT correct about telecommuting?
Companies such as Yahoo and IBM promote telecommuting
Which of the following is NOT correct about subsidies?
Consumers pay less with subsidies
Which of the following is NOT correct about continuous process and intermittent process?
Continuous process is preferred over intermittent process
This can be defined as being a good corporate citizen who goes beyond the profit motivation of business
Corporate Social Responsibility
To make sure that ethical issues are considered in business decisions, managers should do all of the following, EXCEPT
Disregard key stakeholders
On the Market Summary report, which index would we review the effectiveness of our Retail Margin and Extra Support decisions from last year?
Distribution index
All of the following are included in the three levels of ethical standards, EXCEPT
Doing unto others as you would want done unto you
On the Income Statement, accountants call the earnings before we subtract interest and taxes: ------
EBIT
Which of the following statements about Empowerment is TRUE?
Empowering employees creates better customer experiences, Enabling means giving workers the education and tools they need to make decision on their own without consulting a manager, Managers become less of a boss and more of a coach
All of the following are Entrepreneurial Trends except
Entrepreneurs as Heroes, Technological Advancements, Independent Lifestyles, International opportunities
What are the ethical issues that international business may face in developing countries?
Environmental regulations, Human rights, Corruption, Employment practices
Segmenting potential customers into neighborhood lifestyle categories defines
Geodemographic Segmentation
All of the following are effects of the Dodd-Frank Wall Street Reform and Consumer Protection Act, EXCEPT
Higher taxes on all Fortune 500 corporations
All of the following are groupings Claritas provides to the user, EXCEPT
Household by Religion
The balance sheet tells us all of the following information, EXCEPT
How many units we have in inventory
Which of the following statements about acquisition is correct?
In an acquisition a firm buys another firm
Which of the following best describes facility layout?
It also applies to the service industry, It is the physical arrangement of resources and people, It focuses on improving the efficiency of manufacturing operations
What is true about PERT?
It stands for Program Evaluation and Review Technique, It is a method aiming to identify the critical path, It is a method for analyzing the tasks involved in completing a given project and estimating the time needed
All of the following are required elements that need to be present on a contract, except
Lawyer's Name and Address
How do leadership and management differ?
Leaders coach, managers direct, Leaders take risks, managers control risks, Leaders create a vision, managers set goals, Leaders are change agents, managers maintain the status quo
The advantage(s) of offshore outsourcing is/are
Less strategic tasks can be outsourced gloablly allowing companies to focus on areas in which they can excel and grow
[BLANK] is when a firm provides the rights to sell its products and use its trademark to an another firm.
Licensing
What are the new decisions available from Year 3 of the MikesBikes simulation?
Manufacturing & Debt
To find all of the information you need to make a decision on Mikes Bikes you will have to go to
Market Information
When marketers conduct --------, , they analyze markets to determine opportunities and challenges, and to find the information they need to make good decisions.
Marketing research
--------- tailors products to meet the needs of a large number of individual customers.
Mass customization
To decide how much money to spend in which category, I need to look at
Media Channels, Product Dimension Preferences, Product Dimension Sensitivities
Property, Plant, and Equipment ------- Accumulated Depreciation equals Total Fixed Assets
Minus
To forecast demand, we need to
Multiply the Forecast Demand (in Market Information) by the Market Share (in Market Summary)
Manager A believe that his company should pay a bribe to government officials because other companies also do so. Which ethical approach does Manager A take in this situation?
Naive Immoralist
What is something that a company should invest in for the short term if they have too much cash?
New Product Development, Accounts Receivable, Inventory
------- Marketing is defined as developing a unique mix of goods and services for each individual consumer.
One - to - One
de-emphasizes ethics and considers primarily economic consequences.
Organizations culture
What are the four functions of management?
Organizing, Controlling, Planning, Leading
What is true about PMI?
PMI involves listing all the pluses in one column, minuses in another column and the implications in a third column for different alternatives
How do general and limited partnerships differ from one another?
Partners in general partnerships share risk and wealth equally while partners in limited partnerships do not
Once we calculate Net Income, that money can be directed to all of the following, EXCEPT
Paying taxes
What are the new decisions available from Year 4 of the MikesBikes simulation?
Product modification, equity and dividend, new product launch
Examples of key activities include:
Production, problem solving and supply chain management
All of these are examples of how we can segment our customers, EXCEPT
Products Sought
Which statement is based on financial projections?
Profit and Loss Statement, Balance Sheet, Cash Flow Statement
Which of the following does not fall under controlling?
Providing feedbacks on performance
[BLANK] classifies people according to their attitudes, aspirations, and other psychological criteria.
Psychographics
What does the Industry Benchmark report include and is important to look at each round?
Retail Sales, Profit, After Tax, Change in Shareholder Value, Gross Margin
Which of the building blocks of the Business Model Canvas deals with how the business will make money?
Revenue Model
Auditing
Reviewing and evaluating the information used to prepare a company's financial statements
This Act establishes new or enhanced standards for all U.S. public company boards, management, and public accounting firms
Sarbanes-Oxley Act
Which of the following responsibilities is under purchasing function?
Searching for high-quality material resources, Find the best suppliers, negotiate the best price for goods and services with the suppliers
Which website would you file with to start a business?
Secretary of State
On the Income Statement, selling expenses and administrative expenses are labeled as
Selling, General & Administrative Expenses (SG & A)
Wells Fargo came under scrutiny when they required bank tellers to -------- or there would be consequences.
Sign up a certain number of accounts
Which of the following is an advantage of an LLC?
Single taxation, Limited liability, Control over business decisions
What does Four Seasons do for employees?
Special events such as recognition, Opportunity to be treated like a 5-star guests when visiting any of the Four Seasons hotels, Focus on Career development
Which type of law is enacted by a federal or state legislature?
Statutory law
What is the correct form and sequence of the planning process?
Strategic Planning, Tactical Planning, Operational Planning, Contingency Planning
The 5th and final step in the 5 step control process is to
Take corrective actions if needed
------ is a hybrid of a quota and a tariff which imposes lower tariffs within the quota and higher tariffs over the quota.
Tariff rate quota
Which of the following companies previously had someone as part of both top management and the board of directors?
Tesla
computer-integrated manufacturing (CIM)
The uniting of computer-aided design with computer-aided manufacturing. The software is expensive, but it can drastically reduce the time needed to program machines to make parts.
Which of the following is CORRECT about patent trolls?
They acquire patents without the desire to actually develop the products and earn a profit from litigations
Why are corporations subjected to strict government regulations?
They are separate legal entities which means no single individual is legally responsible for their misbehaviors
What happens when an individual purchases stock?
They benefit when the company issues a dividend, They benefit when the stock price goes up, They own a piece of the company, They give the company money for the purchase
Which of the following is TRUE about preferred stockholders?
They do not have voting rights, They have first claim on income - a preferred dividend, In case of bankruptcy, they have first claim on assets after debt
Which of the following is NOT correct about common stockholders?
They have first claim on income
All of the following are reasons the government intervenes in business except
To force companies to play by their rules and have very limited freedom
Why did Ben & Jerry go public?
To raise capital in order to expand
Why do companies involved in manufacturing invest in technology?
To reduce operating costs, To reduce the time needed to make parts, To reduce human involvement in dangerous processes
The Debt-to-Equity Ratio is calculated as
Total Debt / Total Owners' Equity
The major technological change(s) that contribute to greater globalization is/are
Transportation, Information processing, Communication
Operations management
a specialized area in management that converts or transforms resources, including human resources like technical skills and innovation, into goods and services.
Annual report
a yearly statement of the financial condition, progress, and expectations of an organization.
------- is the recording, classifying, summarizing and interpreting of financial events and transactions in an organization to provide interested parties with needed financial information.
accounting
------- is the money that we owe someone else for something that we have already
accounts payable
A system in which producers manage all the Page 395marketing functions at the retail level is called an -------
administered distribution system
If a company uses entirely equity financing and doesn't borrow, they have to put up ----- of their own money to get the company running.
all
Retained earnings
are accumulated earnings from the firm's profitable operations that are reinvested in the business and not paid out to stockholders in distributions of company profits.
Operations
are cash transactions associated with running the business.
Investments
are cash used in or provided by the firm's investment activities.
Specialty goods and services
are consumer products with unique characteristics and brand identity.
Accounts payable
are current liabilities or bills the company owes others for merchandise or services it purchased on credit but has not yet paid for.
Assets
are economic resources (things of value) owned by a firm. Assets include productive, tangible items such as equipment, buildings, land, furniture, and motor vehicles that help generate income, as well as intangible items with value like patents, trademarks, copyrights, and goodwill.
Administrative Agencies
are federal or state institutions and other government organizations created by Congress or state legislatures with delegated power to create rules and regulations within their given area of authority.
Nonbanks
are financial organizations that accept no deposits but offer many of the services provided by regular banks.
Negotiable instruments
are forms of commercial paper (such as checks) that are transferable among businesses and individuals; they represent a promise to pay a specified amount.
Merchant wholesalers
are independently owned firms that take title to the goods they handle. About 80 percent of wholesalers fall in this category.
Current assets
are items that can or will be converted into cash within one year. They include cash, accounts receivable, and inventory.
implied warranties
are legally imposed on the seller, specifying that a product will conform to the customary standards of the trade or industry in which it competes.
Fixed assets
are long-term assets that are relatively permanent such as land, buildings, and equipment. (On the balance sheet we can also refer to these as property, plant, and equipment.)
Intangible assets
are long-term assets that have no physical form but do have value.10 Patents, trademarks, copyrights, and goodwill are intangible assets.
Bonds payable
are long-term liabilities; money lent to the firm by bondholders that it must pay back.
capital expenditures
are major investments in either tangible long-term assets such as land, buildings, and equipment, or intangible assets such as patents, trademarks, and copyrights.
Agents/brokers
are marketing intermediaries who bring buyers and sellers together and assist in negotiating an exchange but don't take title to the goods—that is, at no point do they own the goods.
Pension funds
are monies put aside by corporations, nonprofit organizations, or unions to help fund their members' financial needs when they retire.
Marketing intermediaries
are organizations that assist in moving goods and services from producers to businesses (B2B) and from businesses to consumers (B2C).
Small business investment company program
are private investment companies licensed by the SBA to lend money to small businesses
Unsought goods and services
are products consumers are unaware of, haven't necessarily thought of buying, or suddenly find they need to solve an unexpected problem.
Shopping goods and services
are products the consumer buys only after comparing value, quality, price, and style from a variety of sellers.
Convenience goods and services
are products the consumer wants to purchase frequently and with a minimum of effort, like candy, gum, milk, snacks, gas, and banking services.
Express Warranties
are specific representations by sellers that buyers rely on regarding the goods they purchase.
objectives
are specific, short-term statements detailing how to achieve the organization's goals.
goals
are the broad, long-term accomplishments an organization wishes to attain.
Business cycles
are the periodic rises and falls that occur in economies over time.
Liabiliies
are what the business owes to others—its debts. Current liabilities are debts due in one year or less. Long-term liabilities are debts not due for one year or more.
Ethics
as society's accepted standards of moral behavior; that is, behaviors accepted by society as right rather than wrong.
What is the specific characteristic the Four Seasons looks for when hiring?
attitude
Arthur Andersen accounting firm was both the ------ and ------ for Enron causing a conflict of interest.
auditors, consultant
A secured loan
backed by collateral, something valuable such as property.
Time deposit
because the bank can require a prior notice before you make a withdrawal.
Demand deposit
because the money is available on demand from the depositor.
Customer Perceived Value is a customer's evaluation of the ----- and ------ of a marketing offer relative to those of competing offers.
benefit, cost
Reverse logistics
brings goods back to the manufacturer because of defects or for recycling materials
Inbound logistics
brings raw materials, packaging, other goods and services, and information from suppliers to producers.
One of the problems with business that may arise if left unchecked and unregulated is the actions of ----- versus -----
business, consumer
Computer aided design (CAD)
businesses ranging from construction companies to carmakers to video game designers depend on 3D modeling software to create new products
Notes payable
can be short-term or long-term liabilities (like loans from banks) that a business promises to repay by a certain date.
The country with the highest number of trademark application is
china
The ----- box, box describes how McDonald's uses social media to enhance store offerings based on when customers want them.
connecting through social media
Open market operations
consist of the buying and selling of government bonds.
Channel of distribution
consists of a whole set of marketing intermediaries, such as agents, brokers, wholesalers, and retailers, that join together to transport and store goods in their path (or channel) from producers to consumers
Business to business (B2B)
consists of all the individuals and organizations that want goods and services to use in producing other goods and services or to sell, rent, or supply goods to others.
Promotion
consists of all the techniques sellers use to inform people about and motivate them to buy their products or services.
Consumer Price Index (CPI)
consists of monthly statistics that measure the pace of inflation or deflation.
Online retailing
consists of selling goods and services to ultimate consumers online.
The acronym "COGS" stands for
cost of goods sold
When marketing to Millennials, you must do all of the following, EXCEPT
create lots of TV commercials
-------- is debt that needs to be paid back within one year.
current debt
A music video requires three elements - a set, dance, and costumes to be produced. A set can be designed and completed in 3 weeks. Dancers and choreography can be selected and designed in 6 weeks. Costumes need 2 weeks to be made. Costumes can only be made after a set is completed. The critical path is therefore --------
dancers and choreography
The bursting of the housing bubble in 2008 forced a sharp ---- in home values.
decline
Integrity based ethics codes
define the organization's guiding values, create an environment that supports ethically sound behavior, and stress shared accountability.
Production management
describes the activities that helped firms create goods. (As we discussed in the previous section, though, in recent decades the U.S. economy has been largely driven by services rather than manufacturing.)
------- returns means adding more money will not help you achieve more returns.
diminishing
The interest rate that the Fed charges for loans to member banks
discount rate
compliance-based ethics codes
emphasize preventing unlawful behavior by increasing control and penalizing wrongdoers
micropreneurs
entrepreneurs willing to accept the risk of starting and managing the type of business that remains small, lets them do the kind of work they want to do, and offers them a balanced lifestyle
controlling
establishes clear standards to determine whether an organization is progressing toward its goals and objectives, rewarding people for doing a good job, and taking corrective action if they are not.
Cash Budget
estimates cash inflows and outflows during a particular period, like a month or a quarter. It helps managers anticipate borrowing needs, debt repayment, operating expenses, and short-term investments, and is often the last budget prepared
Financial managers
examine financial data prepared by accountants and recommend strategies for improving the financial performance of the firm
According to the video, "How to Write a Business Plan", which section of the business plan is easiest to write when you save it for last?
executive summary
Command economies
exist when the government largely decides what goods and services will be produced, who gets them, and how the economy will grow. Socialism and communism are variations on this economic system.
Free market economies
exist when the market largely determines what goods and services get produced, who gets them, and how the economy grows. Capitalism is the popular term for this economic system.
Perfect competition
exists when there are many sellers in a market and none is large enough to dictate the price of a product.
A product/process can only be patented if the idea is good.
false
All entrepreneurs are born as great leaders.
false
All home prices in the United States have risen since the 2008 housing bubble.
false
Autocratic leadership is bad for all companies.
false
Countries with abundant natural resources do not benefit from free trade.
false
Credit unions are for-profit financial institutions that offer the full variety of banking services to their members.
false
Customer's perceived differences between two products are less important than the real differences between them.
false
Defects will always exist in production so we should not focus on reducing them.
false
Entrepreneurship has nothing to do with problem solving.
false
It is more expensive to hang on to current customers than it is to acquire new customers.
false
It is usually cheaper to acquire new customers than to continue selling to existing customers.
false
Many large corporations have an advertising department in order to call customers to action to purchase their product or service.
false
Most convenience stores are open very short hours and don't stay open late in the evening.
false
Regulation can be defined as a law that controls the way that a government can operate.
false
Segway is suspected to be one of the biggest business SUCCESSES in recent history.
false
Setting organizational goals and giving assignments are leading functions of management.
false
The Statement of Cash Flows shows more than just what is happening with cash within the organization.
false
The majority of companies doing business globally do not believe international experience is important for employees.
false
The target inflation rate for the United States is about 5%.
false
To maximize profit means to have the highest possible revenue.
false
Total cost always starts at $0 for 0 unit.
false
U.S businesses do not have to follow U.S. laws while operating in foreign countries.
false
We see deflation in prices when the economy is doing really well.
false
When a company issues stock they pay money in exchange for ownership of their corporation.
false
When it comes to variable costs, the more you make, the smaller the cost.
false
Working Capital shows up on the Income Statement as Current Assets - Current Liabilities.
false
Intermediaries perform marketing tasks ______ and _______ than most manufacturers could provide them.
faster and cheaper
The key to developing a good product is ------ and -----
feedback, iteration
According to a Flexjobs.com survey, 80% of respondents said ------- was a top consideration when considering a new job.
flexibility
Which of the following products should companies trade secrets for instead of patenting them?
food recipe
Capital budget
forecasts a firm's spending plans for major asset purchases that often require large sums of money, like property, buildings, and equipment.
A company may not ship enough goods to think of using a railroad. Such smaller manufacturers or marketers can get good rates and service by using a ------
freight forwarder
During the Maturity stage of the product life cycle, companies have to do what with their product price?
further reduce price
All of the following are examples of primary meaning of the genericized trademark becoming the product or service itself, except
gatorade
Financial accounting
generates financial information and analyses for people primarily outside the organization. The information goes not only to company owners, managers, and employees, but also to creditors and lenders, employee unions, customers, suppliers, government agencies, and the general public.
Value
good quality at a fair price
limited partnership
has one or more general partners and one or more limited partners.
The ----- the risk of a company defaulting on a loan, the higher the interest rate for that loan.
higher
You can expect a ______ rate of return from a bond with a BBB+ rating than a bond with a AAA rating because of the amount of risk involved.
higher
Product liability
holds businesses liable for harm that results from the production, design, or inadequate warnings of products they market.
absolute advantage
if it can produce a specific product more efficiently than all other countries
Negligence
in tort law, describes behavior that causes unintentional harm or injury.
Corporate social initiatives
include enhanced forms of corporate philanthropy.
planning
includes anticipating trends and determining the best strategies and tactics to achieve organizational goals and objectives.
Direct marketing
includes any activity that directly links manufacturers or intermediaries with the ultimate consumer.
corporate philanthropy
includes charitable donations to nonprofit groups of all kinds
M-1
includes coins and paper bills, money that's available by writing checks (demand deposits and share drafts), and money held in traveler's checks—that is, money that can be accessed quickly and easily.
Organizing
includes designing the structure of the organization and creating conditions and systems in which everyone and everything work together to achieve the organization's goals and objectives
corporate responsibility
includes essentially everything that has to do with acting responsibly within society—for example, treating employees fairly and ethically.
M-2
includes everything in M-l plus money in savings accounts, and money in money market accounts, mutual funds, certificates of deposit, and the like—that is, money that may take a little more time to obtain than coins and paper bills.
Statutory law
includes state and federal constitutions, legislative enactments, treaties of the federal government, and ordinances—in short, written law.
Secondary data
information already compiled by others and published in journals and books or made available online
intermediaries add ------- by opening two-way flows of information between marketing participants.
information utility
Entrepreneurs use a tool which enables them to they exploit change as an opportunity to form a new business or service. That tool is
innovation
participative (democratic) leadership
involves managers and employees working together to make decisions. Employee participation in decisions may not always increase effectiveness, but it usually does increase job satisfaction.
M-3
is M-2 plus big deposits like institutional money market funds.
Small Business Administration (SBA)
is a U.S. government agency that advises and assists small businesses by providing management training and financial advice and loans
Bill gates
is a billionaire who donated $2.5 billion to philanthropy.
ISO 14001
is a collection of the best practices for managing an organization's impact on the environment.
Embargo
is a complete ban on the import or export of a certain product, or the stopping of all trade with a particular country.
Countertrading
is a complex form of bartering in which several countries each trade goods or services for other goods or services.
Uniform Commercial Code
is a comprehensive commercial law that covers sales laws and other commercial laws
Materials requirement planning(MRP)
is a computer-based operations management system that uses sales forecasts to make sure needed parts and materials are available at the right time and place.
Oligopoly
is a degree of competition in which just a few sellers dominate a market, as we see in tobacco, gasoline, automobiles, aluminum, and aircraft.
Patent
is a document that gives inventors exclusive rights to their inventions for 20 years from the date they file the patent applications.
Savings and loan association
is a financial institution that accepts both savings and checking deposits, and provides home mortgage loans.
Inflation
is a general rise in the prices of goods and services over time
entrepreneurial team
is a group of experienced people from different areas of business who join to form a managerial team with the skills to develop, make, and market a new product.
focus group
is a group of people who meet under the direction of a discussion leader to communicate their opinions about an organization, its products, or other given issues.
Product line
is a group of products that are physically similar or intended for a similar market.
Contract
is a legally enforceable agreement between two or more parties.
Strategic alliance
is a long-term partnership between two or more companies established to help Page 68each company build competitive market advantages.
Wholesaler
is a marketing intermediary that sells to other organizations, such as retailers, manufacturers, and hospitals.
Joint venture
is a partnership in which two or more companies (often from different countries) join to undertake a major project
Reserve requirement
is a percentage of commercial banks' checking and savings accounts they must keep in the bank (as cash in the vault) or in a non-interest-bearing deposit at the local Federal Reserve district bank.
Financial control
is a process in which a firm periodically compares its actual revenues, costs, and expenses with its budget.
Commercial banks
is a profit-seeking organization that receives deposits from individuals and businesses in the form of checking and savings accounts, and uses these funds to make loans.
Depression
is a severe recession, usually accompanied by deflation.
Conventional (C) Corporation
is a state-chartered legal entity with authority to act and have liability separate from its owners—its stockholders.
Financial statement
is a summary of all the financial transactions that have occurred over a particular period.
Social audit
is a systematic evaluation of an organization's progress toward implementing socially responsible and responsive programs
Certificate of deposit
is a time-deposit (savings) account that earns interest, to be delivered on the certificate's maturity date
S corporation
is a unique government creation that looks like a corporation but is taxed like sole proprietorships and partnerships.
Tort
is a wrongful act that causes injury to another person's body, property, or reputation.
operating (or master) budget
is an aggregate of the firm's other budgets and summarizes its proposed financial activities.
Independent audit
is an evaluation and unbiased opinion about the accuracy of a company's financial statements.
Retailer
is an organization that sells to ultimate consumers (people like you and me).
general partner
is an owner (partner) who has unlimited liability and is active in managing the firm.
limited partner
is an owner who invests money in the business but does not have any responsibility or liability for losses beyond his or her investment
Money
is anything people generally accept as payment for goods and services.
Financing
is cash raised by taking on new debt, or equity capital or cash used to pay business expenses, past debts, or company dividends.
Decision making
is choosing among two or more alternatives, which sounds easier than it is. In fact, decision making is the heart of all the management functions.
Mutual agency
is considered a disadvantage of a partnership because it exposes all other partners to a risk of poor business decisions by a single partner.
Strategic Planning
is done by top management and determines the major goals of the organization and the policies, procedures, strategies, and resources it will need to achieve them
Gross profit or gross margin
is how much a business earned by buying (or making) and selling merchandise.
Problem solving
is less formal than decision making and usually calls for quicker action to resolve everyday issues.
Venture Capital
is money invested in new or emerging companies that some investors
Equity Financing
is money raised from within the firm, from operations or through the sale of ownership in the firm (stock).
Unsecured Loan
is more difficult to obtain because it doesn't require any collateral.
vision
is more than a goal; it's a broad explanation of why the organization exists and where it's trying to go. It gives the organization a sense of purpose and a set of values that unite workers in a common destiny
Continuous process
is one in which long production runs turn out finished goods over time.
Dumping
is selling products in a foreign country at lower prices than those charged in the producing country.
exporting
is selling products to another country.
Limited liability company
is similar to an S corporation, but without the special eligibility requirements
Money supply
is the amount of money the Federal Reserve makes available for people to buy goods and services.
Ratio analysis
is the assessment of a firm's financial condition, using calculations and financial ratios developed from the firm's financial statements.
Fundamental Accounting Equation
is the basis for the balance sheet.
Common law
is the body of law that comes from decisions handed down by courts.
Judiciary
is the branch of government chosen to oversee the legal system through a system of courts.
Foreign Direct Investment (FDI)
is the buying of permanent property and businesses in foreign nations.
ISO 9001
is the common name given to quality management and assurance standards.
Corporate Social Responsibility
is the concern businesses have for the welfare of society, not just for their owners. CSR goes well beyond being ethical. It is based on a commitment to integrity, fairness, and respect.
Production
is the creation of finished goods and services using the factors of production: land, labor, capital, entrepreneurship, and knowledge
Product differentiation
is the creation of real or perceived product differences.
Balance of payments
is the difference between money coming into a country (from exports) and money leaving the country (for imports) plus money flows coming into or leaving a country from other factors such as tourism, foreign aid, military expenditures, and foreign investment.
Barter
is the direct trading of goods or services for other goods or services.
Finance
is the function in a business that acquires funds for the firm and manages them within the firm.
Purchasing
is the function that searches for high-quality material resources, finds the best suppliers, and negotiates the best price for quality goods and services.
Financial Management
is the job of managing a firm's resources to meet its goals and objectives.
Bankruptcy
is the legal process by which a person, business, or government entity, unable to meet financial obligations, is relieved of those debts by a court
Free trade
is the movement of goods and services among nations without political or economic barriers
Materials handling
is the movement of goods within a warehouse, from warehouses to the factory floor, and from the factory floor to various workstations.
Facility layout
is the physical arrangement of resources, including people, to most efficiently produce goods and provide services for customers.
Logistics
is the planning, implementing, and controlling of the physical flow of materials, final goods, and related information from points of origin to points of consumption to meet customer requirements at a profit.
Transparency
is the presentation of a company's facts and figures in a way that is clear and apparent to all stakeholders.
Tactical planning
is the process of developing detailed, short-term statements about what is to be done, who is to do it, and how.
Customer relationship management
is the process of learning as much as possible about present customers and doing everything you can over time to satisfy them—or even to exceed their expectations—with goods and services.6 The idea is to enhance customer satisfaction and stimulate long-term customer loyalty.
Supply chain management
is the process of managing the movement of raw materials, parts, work in progress, finished goods, and related information through all the organizations in the supply chain; managing the return of such goods if necessary; and recycling materials when appropriate.
Contingency planning
is the process of preparing alternative courses of action the firm can use if its primary plans don't work out.
Facility location
is the process of selecting a geographic location for a company's operations.
Operational planning
is the process of setting work standards and schedules necessary to implement the company's tactical objectives.
management
is the process used to accomplish organizational goals through planning, organizing, leading, and controlling people and other organizational resources
Chapter 1
is the process whereby one firm contracts with other companies, often in other countries, to do some or all of its functions.
Lean manufacturing
is the production of goods using less of everything than in mass production: less human effort, less manufacturing space, less investment in tools, and less engineering time to develop a new product.
Cost of capital
is the rate of return a company must earn in order to meet the demands of its lenders and expectations of its equity holders (stockholders or venture capitalists).
Telemarketing
is the sale of goods and services by telephone.
Critical path
is the sequence of tasks that takes the longest time to complete.
National debt
is the sum of government deficits over time
Distributed product development
is the term used to describe handing off various parts of your innovation process—often to companies overseas.
Balance of trade
is the total value of a nation's exports compared to its imports measured over a particular period.
Trade protectionalism
is the use of government regulations to limit the import of goods and services.
Exclusive distribution
is the use of only one retail outlet in a given geographic area.
Exchange rate
is the value of one nation's currency relative to the currencies of other countries.
Tax accountant
is trained in tax law and is responsible for preparing tax returns, or developing tax strategies.
Recession
is two or more consecutive quarters of decline in the GDP.
Deflation
is when prices go down because of a surplus of goods and services compared to money.
Which of the following is NOT a reason why Segway failed?
it was innovation rather than an invention
Just in time (JIT) inventory control
keep a minimum of inventory on the premises—and deliver parts, supplies, and other needs just in time to go on the assembly line.
Limited liability partnership
limits partners' risk of losing their personal assets to the outcomes of only their own acts and omissions and those of people under their supervision
Import quota
limits the number of products in certain categories a nation can import.
Microeconomics
looks at the behavior of people and organizations in markets for particular products or services.
Making ethical decisions
looks at the kinds of decisions companies must make when it comes to locating.
Macroeconomics
looks at the operation of a nation's economy as a whole (the whole United States)
Master Limited Partnership (MLP)
looks much like a corporation (which we discuss next) in that it acts like a corporation and is traded on the stock exchanges like a corporation, but is taxed like a partnership and thus avoids the corporate income tax.
Convenience Stores mostly sell ---- priced items.
low
devaluation
lowers the value of a nation's currency relative to others.
Which level of Economics concentrates on the operation of a nation's economy as a whole?
macroeconomics
In the BestBuy example, the----- empowers his employees by clearly communicating the goals that they are trying to achieve that day.
manager
free rein leadership
managers set objectives and employees are free to do whatever is appropriate to accomplish those objectives.
Outbound logistics
manages the flow of finished products and information to business buyers and ultimately to consumers like you and me.
Phases of Long-Term Business Cycles include all of the following EXCEPT
market stabilization
Sales for a product typically peak in which stage of the product life cycle?
maturity
venture capitalists
may finance your project—for a price
Quality
means consistently producing what the customer wants while reducing errors before and after delivery.
leading
means creating a vision for the organization and communicating, guiding, training, coaching, and motivating others to achieve goals and objectives in a timely manner
Flexible manufacturing
means designing machines to do multiple tasks so they can produce a variety of products.
Enabling
means giving workers the education and tools they need to make decisions.
Autocratic leadership
means making managerial decisions without consulting others.
Mass customization
means tailoring products to meet the needs of a large number of individual customers, is now practiced widely.
Deflation
means that prices are declining.
Deregulation
means that the government withdraws certain laws and regulations that seem to hinder competition.
limited liability
means that the limited partners' liability for the debts of the business is limited to the amount they put into the company; their personal assets are not at risk.
Cost of Goods Sold
measures the cost of merchandise the firm sells or the cost of raw materials and supplies it used in producing items for resale.
Inventory turnover ratio
measures the speed with which inventory moves through the firm and gets converted into sales.
Contractual distribution system
members are bound to cooperate through contractual agreements.
make(s) hiring decisions on supervisory positions
middle management
Anything people generally accept as payment for goods and services
money
When there is only one company within a market that provides a good or service you have a(n):
monopoly
Assume you buy a 10-year bond with a 7% interest rate, and two years later you decide to sell that bond. If the market interest rate is now 6%, you can sell your bond for ----- than the Face Value of the bond.
more
The amount of money you pay to purchase a house is directly dependent on the ----- interest rate
mortgage
------ marketing uses sales-people who work as independent contractors.
multi level
The ____, ______, or ______ that identifies the goods or services and distinguishes them from competitors' offerings is said to be the company's brand.
name, symbol, design
Since the financial crisis of 2008, interest rates in the United States have been
near 0%
During the 1990's, this multinational corporation came under scrutiny for child labor in its supply chain
nike
If faced with an ethical dilemma, we want to ask all of the following questions, EXCEPT
none of the above
In MikesBikes the capacity of your factory is measured in Standard Capacity Units (SCU). How many SCUs are required to produce one Mountain Bike?
o.5 SCU
breach of contract
occurs when one party fails to follow the terms of a contract
Monopoly
occurs when one seller controls the total supply of a product or service, and sets the price.
Disinflation
occurs when price increases are slowing (the inflation rate is declining)
Stagflation
occurs when the economy is slowing but prices are going up anyhow
Recovery
occurs when the economy stabilizes and starts to grow.
Trade surplus
occurs when the value of a country's exports exceeds that of its imports.
Trade deficit
occurs when the value of a country's exports is less than its imports.
Incubators
offer new businesses in the critical stage of early development low-cost offices with basic services such as accounting, legal advice, and secretarial help.
How many products does your company have in the first three years of the MikesBikes simulation?
one
Corporate distribution system
one firm owns all the organizations in the channel of distribution
Small Business
one that is independently owned and operated, is not dominant in its field of operation, and meets certain standards of size in terms of employees or annual receipts (such as under $2.5 million a year for service businesses)
All of the following clothing companies came under scrutiny for an unethical supply chain, EXCEPT
patagonia
Process manufacturing
physically or chemically changes materials.
Marketing Channels belong to which of the four P's of marketing?
place
intermediaries add ------, to products by placing them where people want them.
place utility
Intermediaries add ------- by doing whatever is necessary to transfer ownership from one party to another, including providing credit. Activities associated with possession utility include delivery, installation, guarantees, and follow-up service.
posession utility
When you buy a new bond directly from a company you are buying from the ----- market.
primary
To gather additional in-depth information, marketers must do their own research. The results of such new studies are called
primary data
The process of marketing research enabling us to make a marketing decision includes all of the following steps EXCEPT
producing
Which problem to solve does not regard the operations manager?
product design
The Statement of Cash Flows reconciles net ______ back into ____.
profit, cash
------- is the element of "The 4 Ps" asking the question "How do customers learn about my product".
promotion
Copyright
protects a creator's rights to materials such as books, articles, photos, paintings, and cartoons.
Public accountant
provides accounting services to individuals or businesses. Such services can include designing an accounting system, helping select the correct software to run the system, and analyzing an organization's financial performance.
Managerial accounting
provides information and analysis to managers inside the organization to assist them in decision making.
Intensive distribution
puts products into as many retail outlets as possible, including vending machines.
Assembly process
puts together components (eggs, toast, and coffee) to make a product (breakfast).
The three bike market segments we are going to enter during this simulation include all of these EXCEPT
racing
Direct selling
reaches consumers in their homes or workplaces.
Marketing intermediaries make markets more efficient by ---- transactions and contracts.
reducing
Debt financing
refers to funds raised through various forms of borrowing that must be repaid
Fiscal Policy
refers to the federal government's efforts to keep the economy stable by increasing or decreasing taxes or government spending.
Unemployment Rate
refers to the percentage of civilians at least 16 years old who are unemployed and tried to find a job within the prior four weeks.
Balance sheet
reports the firm's financial condition on a specific date.
The study of how to increase resources and create conditions that will make better use of them is called
resource development
------- is the value of owners' profit that they choose to reinvest in the company.
retained earnings
In addition to the rule of law, governments perform all of the following except
selling goods to consumers
Cash and carry wholesalers
serve mostly smaller retailers with a limited assortment of products.
intermediaries add ------- by providing fast, friendly service during and after the sale and by teaching customers how to best use products over time.
service utility
Budget
sets forth management's expectations for revenues and, on the basis of those expectations, allocates the use of specific resources throughout the firm.
Marketers can differentiate products with ------- quality such as bottled water with brand name, packaging, pricing, product placement on the shelf.
similar
A business owned, and usually managed, by one person is called a
sole proprietorship
Drop shippers
solicit orders from retailers and other wholesalers and have the merchandise shipped directly from a producer to a buyer.
enterprise zones
specific geographic areas to which governments attract private business investment by offering lower taxes and other government support.
Contract law
specifies what constitutes a legally enforceable agreement.
Brand is the entire organization as seen through the eyes of your -----
stakeholders
China and Russia are well-known countries practicing ------ , which means the state, rather than private owners, run some of the businesses.
state capitalism
Comparative advantage theory
states that a country should sell to other countries those products it produces most effectively and efficiently
government and not-for-profit accounting
supports organizations whose purpose is not generating a profit, but serving ratepayers, taxpayers, and others according to a duly approved budget.
Tariffs
taxes on imports, making imported goods more expensive to buy.
brainstorming
that is, coming up with as many solutions as possible in a short period of time with no censoring of ideas
Unlimited liability
the responsibility of business owners for all of the debts of the business
Licensing
the right to manufacture its product or use its trademark to a foreign company (the licensee) for a fee (a royalty).
Economics
the study of how society chooses to employ resources to produce goods and services and distribute them for consumption among various competing groups and individuals.
Resource Development
the study of how to increase resources (say, by getting oil and gas from shale and tar sands) and create conditions that will make better use of them (like recycling and conservation).
Depreciation
the systematic write-off of the cost of a tangible asset over its estimated useful life.
Economic theory
the theory that a government policy of increasing spending and cutting taxes could stimulate the economy in a recession.27
computer-aided manufacturing (CAM)
the use of both computer-aided design and computer-aided manufacturing, makes it possible to custom-design products to meet the needs of small markets with very little increase in cost.
------is the presentation of the company's facts and figures in a way that is clear and apparent to all stakeholders.
transparency
A business plan serves two essential functions, attracting lenders and investors, and guiding the company by charting its future course and defining its strategy.
true
A perceptual map is a two by two matrix with attributes on each end to convey the positioning of a brand in the minds of the customers.
true
About 20% of small businesses fail within their first year of operation.
true
According to a study by Western International Media, 20%-40% of purchases wouldn't have occurred if it weren't for children nagging their parents.
true
After the staff is done with the pod, a new location is determined for the pod based on what is left in it and the current stage of the warehouse.
true
All vodkas that have been distilled correctly have the same character, aroma, taste or color. The fact that each brand is perceived differently though has to do with positioning.
true
An Oligopoly can be good for the consumer because it forces the biggest companies in a market to be competitive with their pricing, and offer better deals to its customers.
true
An example of observational research includes Honda employees in supermarket parking lots watching people put groceries bags in the trunks of their vehicle to research trunk size convenience.
true
Automation can sometime reduce productivity.
true
Break Even = Fixed Costs / (Price - Variable Cost per Unit)
true
Business ethics can be defined as the accepted principles of right or wrong governing the conduct of business people.
true
Consumers can be usefully categorized into two huge groups: Business-to-Business (B2B) and Business-to-Customer (B2C).
true
Contribution Margin is a measure of the efficiency of your production process.
true
Corporations are heavily regulated by the government in comparison to other forms of businesses.
true
Depending on the length of the loan, liabilities can be classified as either short or long term.
true
Even very smart people with lots of business experience can find it helpful to use the Business Model Canvas.
true
Fraud is a form of Tort where someone "hurts" by deception or manipulation.
true
Good entrepreneurs aren't necessarily always the best leaders and may need to step down and hire a great leader if their company grows substantially.
true
Horizontal acquisition involves a company buying another company from within the same industry.
true
If I have a significant amount of bikes already In Stock, I should subtract that number from the amount of bikes I plan to sell and enter that result in Production Quantity in order to avoid a large idle inventory
true
If a company has too little cash they can borrow money/ take on debt, or they can dilute ownership, to increase their cash.
true
If our balance in Accounts Payable goes up from one year to the next, that means that we have MORE cash because of it.
true
If we get the correct mix of "The 4 Ps", we will fulfill the customer's needs.
true
In the movie clip, Josh makes a suggestion about a toy to his company. This idea is received well since Josh has the mind of a child and he fits the target market.
true
Interest rates set by the Federal Reserve determine what it costs for everyone to borrow money.
true
Liquidity can be defined as how quickly we can turn assets into cash.
true
Managerial Accounting can be defined as providing information and analysis to managers inside the organization to assist them in decision making.
true
Many successful innovations exploit change.
true
Marketing can be defined as the activity, set of institutions and processes for creating, communicating, delivering, and exchanging offerings with value for customers, clients, partners, and society at large.
true
Mutual agency means that a partner can make decisions on behalf of other partners.
true
One of the powerful things about the Business Model Canvas is that it is visual.
true
One of the reasons the HoverBoard was so much more successful was because they understood their target market.
true
One reason for government intervention in business is to correct market failures and ethical lapses.
true
Righteous moralist is a common approach that managers from developed countries use when working in developing countries.
true
Smartphones are thought to be in the Maturity stage of the product life cycle.
true
Sole Proprietorship is simple, quick and affordable to start.
true
Strategic planning determines the major goals of the organization and the policies and strategies for obtaining and using resources to achieve those goals.
true
The Business Model Canvas can help you understand how a business actually works.
true
The Federal Reserve manages interest rates and inflation when implementing policies.
true
The death of a partner, voluntary withdrawal from the partnership, and a preplanned agreement are all characteristics limiting the life of a partnership.
true
The first five building blocks of the Business Model Canvas are called the "front of the house", because they are the customer facing aspects of the business that are the easiest to observe and understand.
true
The goal of the Four Seasons is to provide the highest level of customized / personalized services.
true
To increase sales through my distribution channels I can either increase the amount of support I give to a certain type of store or increase the margin percentage of that type of store.
true
Viral marketing is the phenomena when people communicate on the internet through social media to share positive information about a product or service.
true
Program evaluation and review technique (PERT)
users analyze the tasks to complete a given project, estimate the time needed to complete each task, and compute the minimum time needed to complete the whole project.
Selective distribution
uses only a preferred group of the available retailers in an area.
Insider trading
uses private company information to further insiders' own fortunes or those of their family and friends.
Consumerism
usually the amount you would lose from my nonperformance.
damages
usually the amount you would lose from my nonperformance.
Intermediaries offer -----
value
Capitalism
when all or most of the factors of production and distribution—such as land, factories, railroads, and stores—are owned by individuals
SWOT analysis
which analyzes the organization's strengths and weaknesses, and the opportunities and threats it faces, usually in that order.
Market
which consists of consumers with unsatisfied wants and needs who have both resources and willingness to buy.
North American Free Trade Agreement (NAFTA)
which created a free-trade area among the United States, Canada, and Mexico
Cash flow forecast
which predicts the cash inflows and outflows in future periods, usually months or quarters.
Statement of cash flows
which provides a summary of money coming into and going out of the firm. It tracks a company's cash receipts and cash payments.
Income statement
which summarizes revenues, cost of goods sold, and expenses (including taxes) for a specific period and highlights the total profit or loss the firm experienced during that period.
Entrepreneurs are determined by ---- they are, not by ---- they are.
who, what
Telecommuting
working from home via computer, is a major trend in business.
