BA Test 1

What three barriers to trade fall into the ethical/legal/political category? Different ethical values International laws Differences in the level of infrastructure Trade restrictions imposed on international trade Cultural preferences

-different ethical values -international laws -trade restrictions imposed on international trade

What are the five principles of The Lean Start Up?

1.Entrepreneurs are everywhere. 2.Entrepreneurship is management. 3.Validated learning. 4.Build-Measure-Learn 5.Innovation accounting.

What is a customer?

An actual or potential user of your organization's products, programs, or services (Vinyard) • A source of knowledge for organizations (Reis)

Which of the following is an element of paternal capitalism? Answers: A.Paternalism B.Communal manufacturing C.Philanthropy D.All of the above

D. All of the above

Edwards Deming is credited with the success of which economy?

Japan

A country whose consumers are less likely to purchase nonessential products because they have a low per-capita income is considered to be ______.

LCD less-developed countries

Franklin Roosevelt created the ___________ that was later declared unconstitutional because it created a national industry.

National Recovery Administration

Franklin Roosevelts economic recovery plan to end the Great Depression was called _______ ?

The new deal

What is value?

The perceived worth of a product, process, asset or function relative to its cost and possible alternatives (Vinyard) • Value in this sense is NOT the assets a business owns.The majority of this course will discuss value in terms of the worth of a product.

Keystone concept of Value

The viability of an organization is determined primarily by the cohesiveness of its value generation system. • The value generating capacity of the organization must be aligned with the wants/needs of customers. • The value generating capacity must be competitively differentiated—better than alternatives. • Numerous value generating systems exist that companies can use, some of which are more powerful than others—as a leader, you get to choose which is emphasized.

Which four items are part of the infrastructure of a country and thus supports its economic activities? Cultural norms Utilities and power plants Schools Railroads Tariffs Laws and regulations Hospitals

Utilities and power plants schools railroads hospitals

The new paradigm of business means ____________.

a fundamental understanding of a customers wants and needs

What is the aim of a business?

a goal or objective the business wants to achieve.The aim should focus on the value an organization provides to its customers. • Mission, vision, values combined • Profit is not the answer

What is the first thing you enter into each section of the Business Model Canvas?

a guess

What is a startup?

a portfolio of activities that become a company

a monopoly that exists when a country is the only source of an item, the only producer of an item, or the most efficient producer of an item

absolute advantage

Who is the customer of an organization? A.The stakeholders B.Someone who complains a lot C.Men in their 40s D.An actual or potential user of the organization's products, programs or services

an actual or potential user of the organization's products, programs or services

Which of the following is an example of a tangible product? a haircut a music concert an automobile a business conference a movie

an automobile

A start-up restaurant would need this key resource to deliver its value proposition

an oven

A typical demand curve slopes down from left to right showing that ______.

as the price decreases the demand increases

A business knows if their product delivers benefit to customers by _________________.

asking them

the difference in value between a nation's exports and its imports.

balance of trade

By patenting his bottle design and putting his name on the product, HJ Heinz developed a ________________.

brand

HJ Heinz pioneered ___________ in America.

branding

What is a characteristic of economic depression? Individuals' incomes increase at the same pace as rising prices. Buying power of consumers is quadrupled. Unemployment levels are low or almost absent. Consumer spending is high. Business output is sharply reduced.

business output is sharply reduced

topic product availability and price

communism: Consumers have a limited choice of goods and services; prices are usually high. socialism: Consumers have some choice of goods and services; prices are determined by supply and demand. capitalism: Consumers have a wide choice of goods and services; prices are determined by supply and demand.

topic profit

communism: Excess income goes to the government. The government supports social and economic institutions. socialism: Profits earned by small businesses may be reinvested in the business; profits from government-owned industries go to the government. capitalism: Individuals and businesses are free to keep profits after paying taxes.

topic competition

communism: Government controls competition and the economy. socialism: Restricted in basic industries; encouraged in small business. capitalism: Encouraged by market forces and government regulations.

topic employment options

communism: Little choice in choosing a career; socialism: most people work for government-owned industries or farms. capitalism: More choice of careers; many people work in government jobs. Unlimited choice of careers.

Topic Business ownership

communism: Most businesses are owned and operated by the government. socialism: The government owns and operates some basic industries; individuals own small businesses. capitalism Individuals own and operate all businesses.

In which economic system do most people work for government-owned industries or farms? capitalist communist free-enterprise libertarian socialist

communist

when a country specializes in products that it can supply more efficiently or at a lower cost than it can produce other items.

comparative advantage

What is true in a socialist economy? Competition is restricted in basic industries. Consumers have a wide choice of goods and services. The government owns all businesses, large and small. Everyone works for government organizations. Demand and supply have no role to play in the pricing of products and services.

competition is restricted in basic industries

What is true of product availability in a communist system? Consumers have a limited choice of goods, but they are inexpensive. Consumers have a wide choice of services but not goods. Consumers have a wide choice of goods, but they are expensive. Consumers have a limited choice of both goods and services. Consumers have no choice in the goods and services that are offered.

consumers have a limited choice of goods and services

The cost structure portion of the Business Model Canvas analyzes __________.

cost of key resources and activities

What is an example of a revenue stream for Amazon?

credit payments through the website

________ measures changes in the prices of goods and services purchased for consumption by typical urban households. Worker productivity GDP Trade balance Consumer price index Per capita income

customer price index

All of the following are true of workplace diversity EXCEPT it is highly beneficial to the financial performance of companies. improves decision making. increases employee satisfaction. must be balanced to support and protect various stakeholders. decreases the financial performance of companies.

decreases the financial performance of companies

Increased unemployment can reduce consumer demand for goods and services, leading to a recovery. deflation. a budget surplus. inflation. economic expansion.

deflation

The quantity of products that manufacturers or owners are willing to sell at different prices at a specific time is called ______.

demand

Which of the following are considered major hurdles to successful international trade? Economic barriers Educational barriers Political barriers Legal barriers

economic political legal social cultural technological

What is associated with a decline in spending? economic expansion employment boom economic contraction inflation job expansion

economic contraction

Which market is most likely to be a monopoly? sports utility vehicles airlines electricity supply lifestyle gadgets agricultural commodities

electricity supply

Which of the following is one of the Five Principles of The Lean Startup?

entrepreneurs are everywhere

What is true of ethics and social responsibility in business? Businesses' reputations depend solely on their profits. Businesses do not need to consider social values in the contemporary scenario. Ethical conduct and corporate social responsibility are linked to increased profits. Business misconduct is likely to be widely excused if it enhances firms' profits. Investors and retired employees remain unaffected in case of scandals.

ethical conduct and corporate social responsibility are linked to increase profits

According to the new paradigm of business, organizations should desire to _________ customer expectations.

exceed

How are profits handled in communist systems? Only profits from government-owned industries go to the government. Excess income goes to the government. Profits earned by small businesses may be reinvested in the business. Businesses are free to keep profits after paying taxes. Individuals are free to keep profits after paying taxes

excess income goes to the government

the sale of goods and services to foreign markets is called

exporting

Goal-setting, cross-departmental cooperation, and instilling values are attributes of traditional companies. T/F

false

The vast majority of problems in organizations are caused by people. True False

false

True or false: A product can be a tangible good such as and automobile, computer, or phone; but a product cannot be a service like dry cleaning or a checkup by a doctor.

false

The following is an example of a customer segment of an airline:

first class passengers

Why are customer relationships important?

fosters repeat sales

What cultural problem did William Bradford, leader of the Plymouth Colony, believe was caused by communal ownership of property?

free-riding

What did HJ Heinz know about his customers?

he could reach different customers by offering different quality tiers

In Norway, most citizens are able to afford basic necessities and some degree of comfort. This means Norway has a(n) low GDP per capita. high standard of living. low standard of living. average standard of living. high cost of living.

high standard of living

What is a business model?

how a business creates, delivers, and captures value

When considering key activities on the Business Model Canvas, what is one important factor?

how do key activities improve the value proposition

On the Business Model Canvas, what are channels?

how value is delivered to customers

The purchase of goods and services from foreign sources is called

importing

The buying, selling, and trading of goods and services across national boundaries is referred to as ______.

international business

If data shows customers are not buying a company's product, it should ____________.

iterate and pivot

Modern companies must __________ customer expectations.

manage and exceed

What are the three primary activities of a business?

management marketing finance

Abraham Lincoln enacted policies to protect ____________ as a reward for votes after he was elected president.

manufactoring

_______ gather information and conduct research to determine what customers want. They also plan and develop products and make decisions about how much to charge for their products and when and where to make them available. Supervisors Operations Managers Marketers Accountants Engineers

marketers

Using research to determine what customers want and then engaging in activities designed to provide goods and services to satisfy those wants is the description of ______.

marketing

Which was the cause of the Great Depression?

massive crop failures

How do businesses know if they have a product customers will buy?

measure customer behaviors

Employees are driven to perform only on what is __________. A.important B.dictated C.explained D.measured

measured

Trevor owns a local farm stand. Although he sells fruit and vegetables, like the grocery store chains in the area, he has some power over the price he charges because he can offer consumers features they want. For instance, his fruit and vegetables are organic and locally grown. This is an example of competition. oligopoly. pure competition. monopolistic competition. monopoly.

monopolistic competition

When a country imports more products than it exports, it has a

negative balance of trade

How did HJ Heinz offer value to his customers?

offered tiered products and different price levels

Which of the following are Key Partners in the Business Model Canvas?

people or companies with whom you do business

What are the four functions of management?

planning, organizing, leading, controlling

The theory or practice of shielding a country's domestic industries from foreign competition by taxing imports is ___________.

protectionism

According to The Lean Startup, what is value?

providing benefit to the customers

A value-driven company prioritizes ______________.

quality

The following are important in evaluating service quality: A.reliability and responsiveness. B.customers and shareholders. C.efficiency and effectiveness. D.accounting and finance.

reliability an responsiveness

Fabulous Fitness has a new exercise video that it hopes will increase its sales. It is offering coupons and a sweepstakes to get people to buy the video. These are examples of advertising. personal selling. direct retail. publicity. sales promotion.

sales promotion

For what reasons did Adam Smith's Wealth of Nations oppose slavery?

slavery prevented innovation and made landowners lazy

What social safety net program was created during the Great Depression?

social security

A cost-driven company attempts to ____________.

spend very little on resources and activities in order to sell low cost items to the customers

In Edwards Deming's book Out of the Crisis, what method does he suggest using to measure quality?

statistical process control

What is the purpose of the Build-Measure-Learn feedback loop?

take what you learn and use it to improve

What is the aim of an organization? A.The goal a business wants to achieve. B.To find solutions to answers. C.To be well liked. D.To make a profit.

the goal a business wants to achieve

Performance is ___________. A.profitable B.reliable C.the primary operating characteristic of the product D.efficient and effective

the primary operating characteristic of the product

What method is used to determine if your business model is on the right track?

the scientific method

What is true of economic expansion? Consumer spending is low and business output is sharply reduced. The standard of living rises because more people are employed and have money to spend. The prices stagnate during this period. There is a decline in production, employment, and income. There is a decline in spending.

the standard of living rises because more people are employed and have money to spend

Who or what did Edwards Deming blame for the problems in American manufacturing?

the system

An entrepreneur has been primarily associated with the willingness to take risks. work under authority. possess a government job. change employers frequently be conservative.

the willingness to take risks

The aim of an organization should focus on the value an organization provides to its customers. True False

true

business model canvas key activities

•Activities that without them, you could not do business •Example—WholeFoods can't exist unless they can buy an adequate supply of organic vegetables •Consider how these tasks add value? Are you better at these activities than your competitor?

business model canvas customer segments

•Groups of customers, each having different attributes •What is the main focus of your value proposition? For whom are you creating value? •Not everyone is your customer

business model canvas channels

•How value is delivered to your customers •Might be different based on different customer segments •Examples: •Uber app sends a driver •Amazon delivers your package

business model canvas revenue streams

•How you make money •How do customers pay and when?—cash, credit card, financing

Business Model canvas key partners

•People or companies with whom you do business •NOT customers •Receive resources from partners such as raw materials, inventory •Partners perform or assist with Key Activities such as assistance with selling or generating revenue

business model canvas customer relationships

•The interaction between the customer and the organization •The transaction and service after the transaction •Good relationships mean repeat customers •Can be highly customized/close relationship •Can be automated and impersonal

business model canvas cost structure

•What does it cost to delivery your key activities and key resources? •Cost-driven companies focus on low cost products and services for its customers and passes the savings to the customers •Value-driven companies provide quality goods and services, less driven by costs • Cutting costs is not a sustainable path to profitability