BMA Final Exam

According to the Tax Foundation, how many sole proprietorships are there in the United States?

23 million

According to Pricewaterhouse Coopers, what percent of CEOs don't believe they have the qualified personnel to be successful?

60%

The income statement is designed to measure:

A company's performance over a certain period of time

Assets = Liabilities + Owner's Equity (Capital) is known as which equation?

Accounting Equation

What is an enhanced form of communication where each person focuses on what the other person is saying and then repeats back what they thought they heard?

Active listening

An approved prequalification questionnaire:

Allows approved manufacturing companies to bid on a job whenever needed without reapplying each time

How can companies get employees to speak freely?

Ask them, empower them, and acknowledge blind spots

The Accounting Equation is

Assets = Liabilities + Capital Liabilities = Assets - Capital Capital = Assets - Liabilities

What is the term used to describe a statement that highlights what a business owes and what a business owns?

Balance Sheet

What is the term used to describe the point where your revenue equals your expenses?

Breakeven point

The quantity of a product that has to be sold before you break even is:

Breakeven volume

What is a term used for the listing of your monthly expenses?

Budget

What is the name given to a policy that combines all of a business's insurance policies?

Business owner's policy

Making sure the company has enough production capability to meet demand is an example of which concept?

Capacity planning

Which is one place you're likely to find job candidates?

Career Fair, Colleges, Online

Depreciation is used to calculate insurance payments for claims in the:

Cash value option

Which of the following is part of employee supervision?

Communication, Mentoring, and Encouragement

What is the type of pricing determined largely by what other companies in your industry are charging?

Competitors' pricing

What is the name for a legally binding agreement in which the company agrees to provide products and services?

Contract

What is the name given to the small amount that the insured employee is responsible for paying when he or she visits a physician or a dentist?

Copay

What type of business can be designated as profit or non-profit?

Corporation

What is the term used to describe the cost to produce, package, and deliver one item?

Cost of Goods

For which type of pricing do you add up fixed costs, direct costs, and indirect costs, then add your desired markup?

Cost-plus pricing

Retail companies compete based on:

Customer service Value Price

What is another word used to describe a company's liabilities?

Debts

What has happened to union membership numbers in the past 50 years?

Declined

Which of the following is a key objective of operations management?

Dependability, Quality, and Flexibility

The balance sheet is at the heart of which type of bookkeeping?

Double-Entry

What is the economic concept that states that the more of something a company buys or produces, the cheaper each unit becomes?

Economies of Scale

What is the term used to describe how to make employees feel like they're an important part of an organization?

Employee engagement

Neglecting _____________, fill in the blank, can breed a workplace culture with poor productivity, low morale and high turnover.

Employee supervision

Management typically has more schooling and training than the employees that report to them. Why would the employee's opinions matter?

Employees when "heard" are more engaged and productive Employees' ideas may be of more value sometime because they are "closer to the action"

What is one perk a sole proprietorship does not have access to?

Employer-funded health insurance

Which of the following is not a way to require employee accountability?

Enforce hierarchy

What law protects employee from sex-based wage discrimination?

Equal Pay Act

In order to calculate a company's profit, what must be subtracted from its revenue?

Expenses

True or False: A Limited Liability Corporation is a form of business that is NOT available in each state.

False

True or False: All strikes are now legal to organize.

False

True or False: Corporations are typically the size of companies like Apple.

False

True or False: Employee engagement can negatively impact employee turnover.

False

True or False: Evaluation of a Request for proposal is based solely on price.

False

True or False: Net profit is greater than gross profit.

False

True or False: Telling your employees that "my door is always open" is enough to ensure employees to trust to speak up.

False

True or False: The recent healthcare law congress passed requires all businesses to offer insurance plans to their employees.

False

True or False: Work measurement is the science of determining how much an employee earns per unit produced. True or false?

False

Your "doing business as" name has to match your legal business name.

False

What is the term used for a 3-5 year forecast of your income and expenses?

Financial model

What is a work advance brought about by unions?

Five-day workweek Increased workplace safety measures Child Labor Laws

The ability of a company to enhance its existing products and create new ones is called:

Flexibility

The skill set to predict the various aspects of the business several months or even years into the future is called:

Forecasting

Which of the following are the result of low employee engagement?

High Turnover

If a company does not have enough capacity to consistently meet an order by a certain timeline it can

Hire more workers, Sub contract with similar company, and Expand operations

What does Rebecca Greenbaum identify as a problem within the workplace?

Hypocrisy

What do we call the contractually agreed upon amount of money that a company pays each month or each quarter to the insurance company?

Insurance premium

According to Ethan Burris, how do employees need to feel before they'll really contribute to the growth of the company?

Involved

What can a manager do that would create a negative work environment?

Keep employee achievements between the employer and employee only

The more companies an insurance company insures, the more likely they can predict the percentage of losses over a given period of time. This is known as:

Law of Large Numbers

What is an example of an initial expense?

Licence fees

An additional source of revenue for a corporation beyond product or service sales is

Licensing, Real Estate, and Stocks

What type of corporation combines the benefits of a partnership and a corporation?

Limited Liability Company

What is the goal of recruiting?

Make work life easier for the company and for the personnel recruited to fill a position

What is the term for the process of planning production by ensuring that raw materials get to the factory floor on time, and finished products get to customers in a timely manner?

Materials requirements planning

A response to an employee's idea

May require testing the idea before being accepted

Some economists say strong unions help strengthen which socioeconomic group?

Middle Class

A job description includes which of the following?

Name of position, Scope of the role, The main tasks of the position

When companies ponder which positions they need to fill, what is this called?

Needs assessment

A synonym of Net Profit is:

Net Income

Which of these constitutes a valid reason not to hire someone? Age Gender Race None of the above

None of the above

Sales revenue is calculated by

Number of sales multiplied by average customer sale dollar amount

Which aspect of operations management takes a broader, a more macro view of the organization, seeking out ways for it to function more effectively?

Organization design

What is a reason workers will go on strike?

Pay, Benefits, and Ill treatment

A method to know what is expected of employees and how work is to be done is:

Performance Review

Milestones are helpful in what sort of plan for employees?

Personal development

What may managers rely on to decide if they'd like to interview a candidate in person?

Phone screen and Personality test

What term is designed to give the employee the freedom and opportunities to push the boundaries of their job description and to think about new and better ways to work?

Professional Development

Which is used as an indicator of how well managed and healthy a company is, especially when it comes to reducing expenses and growing revenue?

Profit Margin

What is the term used by recruiters to describe their ideal candidate?

Purple squirrel

What is the process of finding and hiring the best candidates for any given open position?

Recruiting

What do we call the dollar amount calculated by the insurance company to represent the cost of replacing your property with new items of the same type and quality?

Replacement cost

That a company may need security clearance is a possible reason for offering which type of tender?

Restricted tender

Which type of bid is restricted to a select group of prescreened manufacturers?

Restricted tender

Insurance involves the transfer of what to a third party?

Risk

What is the process of anticipating possible problems and putting plans in place to cope with certain risks if they become real?

Risk Management

What kind of corporation can be taxed in the same way as a partnership?

S corporation

When there is a strike and one or more of the workers decides to return to work before the end of the strike, those worker(s) are called:

Scab

In the later 20th century, the United States became what sort of an economy?

Service

What is the name of a person who owns part of a corporation?

Shareholder

What is a new tool used to collect employee feedback?

Social Media

Which form of business has unlimited liability where if sued could lose both personal and corporation's assets?

Sole proprietorship

What is defined as the people, parts, and processes involved in getting products or services from suppliers, on through to manufacturing and production, and then on to customers?

Supply Chain

What is NOT an objective of operations management?

The succession plan of upper management

Professional development includes which of the following?

Training and Mentoring

True or False: Employee engagement can positively impact absenteeism.

True

True or False: Operations management is concerned with managing business processes that improve the products and services consumers use every day, and with bringing new ones to life.

True

True or False: There are two basic types of unions: Public sector and Private sector.

True

What is the name of the person who helps set up a union in a workplace?

Union Organizer

What was created with the idea that there's strength in numbers?

Unions

What is an example of a monthly, recurring expense?

Utilities

Reducing _____________, fill in the blank, can reduce costs and lead to higher profit margins.

Waste

When a business looks to file a claim to recoup the loss of property for a business, they typically choose which option?

neither replacement or cash value