BUS 104 Final

_____ is the gap between what is and what is required

A need

Which of the following is a characteristic of the entrepreneurial personality?

Ambitious

_____ is the attempt to find and attract qualified applicants in the external labor market.

recruitment

Customer satisfaction:

refers to the customer's feeling that a product has met or exceeded expectations

A disadvantage of franchising to the franchisee is:

restricted operating freedom

In finance, _____ is the potential for loss.

risk

Wal-Mart has announced that it will only sell fresh and frozen fish that come from environmentally sound sources and bear the label of the Marine Stewardship Council. Wal-Mart's size gives it a unique opportunity to improve the fishing industry. This concern for _____ is one of many initiatives Wal-Mart is introducing to improve our environment.

social responsibility

_____ is the concern of businesses for the welfare of society as a whole.

social responsibility

A job _____ spells out the skills, knowledge, and abilities a person must have to fill a job.

specification

For Lladro Comercial, S.A., the manufacturer of handcrafted porcelains, its employees, suppliers of the paints used to decorate its porcelains, retailers of its products, and people who benefit from its philanthropy are all:

stakeholders

____ are the individuals or groups to whom a business has a responsibility.

stakeholders

The _____ of any country is measured by the output of goods and services people can buy with the money they have.

standard of living

With _____, a business ties its philanthropy closely to the corporate mission or goals.

strategic giving

The _____ is a specific group of consumers toward which a firm directs its marketing efforts.

target market

Topik is a product that is sprayed on thinning hair and makes the hair appear thicker. The manufacturer considers its potential market to be blue-collar workers who earn less than $30,000 per year, are divorced, and who like to think of themselves as weekend athletes. The manufacturer of Topik considers this group to be its:

target market

China imposes a 45 percent tax on the market value of all chickens that are imported from the U.S. into China. Another name for this type of tax is a(n):

tariff

Which of the following is the BEST example of a not-for-profit business?

the American Cancer Society

Who provides the start-up financing for the majority of new small businesses?

the business owner and his or her family and friends

Which of the following is the best example of a service?

the pleasure you derive from seeing a good play

The three basic levels of the managerial hierarchy are:

top, middle, and supervisory

Double-entry bookkeeping is so named because every entry to an account requires a corresponding and opposite entry to a different account. The double entry has two equal and corresponding sides known as debit and credit.

true

Equity is the owner's investment in the business.

true

Every transaction must adjust at least two accounts.

true

A term that means that business damages and/or debts can also be attached to the personal assets of the owners is ______ liability.

unlimited

The philosophy of _____ can be used to explain the idea that "people should act so as to greatest good for the greatest number of people."

utilitarianism

_____ is financing obtained from investment companies that specialize in financing small, high-growth companies and receive an ownership interest and a voice in management in return of their money.

venture capital

The merger of McKesson, the leading U.S. drug wholesaler, and HBOC, a producer of health-care inventory software, is an example of a(n) _____ merger.

vertical

Thrift institutions:

were formed specifically to encourage household savings

_____ is the process of ensuring that the organization's objectives are being met and of correcting deviations from the plan.

Controlling

_____ is the set of attitudes, values, and standards that distinguishes one organization from another.

Corporate culture

When conflicts occur, try the K-I-N-D technique. Where D stands for:

Definite

With its ease of registration and pro-corporate policies, _____ is called the "state of incorporation." About half of the Fortune 500 companies are incorporated there.

Delaware

_____ is the process of parceling the work and assigning tasks to workers.

Division of labor

Which of these steps helps to form the habit of positive thinking and to boost your success?

Dwell on past successes

Businesses close down for many reasons. Which of the following is NOT a typical reason for a business failure?

Expenses were lower than the owner expected.

A well-designed product transcends cultural barriers. It does not need to be changed to suit different countries or cultures.

False

According to Maslow's hierarchy of need, the most basic needs are the social needs.

False

Having a global vision simply means having a willingness to sell outside one's national borders if, and when, the opportunity arises.

False

The exchange rate is the interest rate that foreign banks receive when borrowing money from the United States.

False

_____ is the degree to which group members want to stay in the group and tend to resist outside influences.

Group cohesiveness

_____ is at the core of most business failures.

Inadequate planning

_____ is the expansion of the number of tasks and variety of tasks performed by a worker.

Job enlargement

_____ is the process of separating, identifying, and evaluating the layers of a market to design a marketing mix.

Market segmentation

_____ is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services to create exchanges that satisfy individual and organizational objectives.

Marketing

Those people designated by demographics as _____ are defined as Americans born between about 1981 and 1997.

Millennials

______ is anything (regardless of form) that is acceptable as payment for goods and services.

Money

_____ involves coordinating and allocating a firm's resources so that the firm can carry out its plans and achieve its goals.

Organizing

_____ is the process of arranging the structures and relationships of human and material resources to carry out an organization's plans.

Organizing

_____ refers to sending work functions to another country resulting in domestic workers losing their jobs.

Outsourcing

_____ is the act of informing, persuading, and reminding the target market about a product.

Promotion

_____ is a strategy that focuses on forging long-term partnerships with customers.

Relationship marketing

_____ is the degree to which tasks are subdivided into smaller jobs.

Specialization

In Herzberg's model, potential job dissatisfiers are called hygiene factors.

True

Mines in Colombia produce emeralds and sell them to jewelers in the United States. To Colombia miners, emeralds are an export.

True

_____ guarantees that each employee will have only one direct supervisor.

Unity of command

All careers have which of the following in common?

You need to have a basic understanding of business

When a single firm accounts for 100 percent of industry sales, it is an example of:

a pure monopoly

Bob Nichol and Martha Bohner own and operate a small company that bakes and sells Thunder Muffins, gigantic muffins full of blueberries, blackberries, or raspberries. They sell the muffins at a local farm that is open to the public on weekends. Since they operate the business as a partnership, they should:

agree to share the business's profits and losses

Private individual investors who sometimes provide venture capital to small firms in need of equity capital are called:

angel investors

_____ are individual investors or groups of experienced investors who provide funding for start-up businesses.

angel investors

The basic accounting equations states that:

assets must equal liabilities plus equity.

Suzanne Pogell wanted to learn to sail, but she could find no one to teach her because men were the ones who sailed, and women were their crew. She finally did convince someone to teach her to sail, and after mastering sailing, she started an all-woman sailing school called Womanship as a sole proprietorship. When she dies, the:

business dies with her

Emily Millou is planning to open a bed & breakfast inn. To borrow money from the bank, she should prepare a ______, a formal, written plan that discloses details about her product, markets, competition, and financial status.

business plan

Finance companies make loans to people who could not get credit anywhere else. To compensate for taking this extra risk, finance companies:

charge higher interest rates than commercial banks do

A secured loan requires that the borrower pledge specific assets to secure the loan. These assets are called:

collateral

Venezuela can grow and sell cut flowers for floral bouquets more easily and more cheaply than most other countries can produce the same flowers. When it comes to flowers, Venezuela has a(n):

comparative advantage

Which of the following is NOT an example of a factor of production?

competition

Management needs to be prepared to deal with problems and seize opportunities as they arise. A company often identifies alternative courses of action to be taken if events undercut a strategic or tactical plan. These are called _____ plans.

contingency

A _____ is a nonprofit, member-owned financial cooperative.

credit union

A firm with a _____ has its ability to provide a unique product or service that offers something of value to buyers besides simply a lower price.

differential competitive advantage

A corporation's earnings are taxed as corporate earnings and as dividends to the stockholders. This is known as:

double taxation

Double taxation in a corporation means:

earnings of the corporation and dividends of the shareholders both are taxed

A total prohibition against importing certain products is called a(n):

embargo

Entrepreneur's savings

equity

Friends investment

equity

One form of business ownership involves _____, a form of business financing consisting of funds raised through the sale of stock.

equity

_____ is a set of moral standards for judging whether something is right or wrong.

ethics

An example of an intangible asset is accounts receivable because the firm does not see or feel it until it is paid in full.

false

Employee ownership creates too much stress and is a poor motivator.

false

Profitability ratios measure how well a firm uses its assets.

false

The balance sheet summarizes a firm's financial position over a period of time, for instance 3 months or a year.

false

The final figure or bottom line on an income statement is called the net revenue.

false

When Linda McAnem began Stirya, a New York-based computer services company, she ran it as a sole proprietorship. As a sole proprietor, McAnem:

found the business to be easy and inexpensive to form

Human resource management is the process of _____ people in order to achieve organizational goals.

hiring, developing, motivating and evaluating

In Herzberg's theory, salary is an example of a(n):

hygiene factor

Canadian logging companies sell timber in the United States. To the U.S., the timber is a(n)_____, and for Canadians, the timber is a(n) _____.

import; export

The standard of living is low in Honduras. This means:

its citizens cannot afford to buy much

A _____ is when two or more companies form a special entity to undertake a specific project, usually for a specific period of time.

joint venture

. According to Theory Y, workers _____ their work.

like delegation and responsibility in

Making sure that enough cash is on hand to pay bills as they come due and to meet unexpected expenses is called cash:

management

According to the _____, a firm should first identify consumer needs and then produce the goods and services that will satisfy them.

marketing concept

The most important function of the Federal Reserve System is carrying out ______ policy.

monetary

Any object or objects that a group of people use to buy and sell goods and services is called:

money

As one of the factors of production, capital includes all of the following EXCEPT:

money

The standards used to determine whether a group member's actions are acceptable are called group:

norms

Within the music industry, four companies (UMG, Sony-BMG, EMI, and Warner) control 90 percent of the music you hear. The music industry operates in a(n) _____ market structure.

oligopoly

The fact that a corporation has limited liability means:

owners' liabilities are limited to the amount invested

_____ appraisals are comparisons of actual job performance with expected performance.

performance

Which of the following is an example of an individual factor that influences the consumer decision-making process?

personality

Maria Manow is planning to sell handmade quilts over the Internet. As she decides what to charge for a full-sized quilt, Manow will calculate her fixed and variable costs. At this point, Manow will be developing her _____ strategy.

pricing

Which of the following is NOT a need identified in Maslow's hierarchy of needs?

psychological needs

_____ is any communication or activity designed to win goodwill or prestige for a company or person.

public relations

Rudy and Ritchie Ling ran a camp this summer for children in their neighborhood. Rudy spent $135 on supplies and earned $250 before expenses. Ritchie spent $140 on supplies and made $210 before expenses. What is the combined revenue for the two brothers?

$460

The Federal Deposit Insurance Corporation (FDIC):

*C. insures deposits in commercial banks

_____ is a permanent organization structure that combines functional and product departmentalization.

A matrix structure

Which of the following is (are) a way(s) help you learn how to concentrate?

All of these

_____ bring buyers and sellers together, do not title to merchandise, receive commission on sales; and have little say over company sales policies.

Brokers

_____ is the reduction of a currency's value relative to another currency.

Devaluation

_____ combine the inputs in the production of goods and services for what are intended to be profitable ventures.

Entrepreneurs

According to the principle of absolute advantage, each country should specialize in the products that it can produce most readily and cheaply and trade those products for products that foreign countries can produce most readily and cheaply.

False

When a domestic company allows a foreign firm to use its brand in exchange for royalty fees, it is called a joint venture.

False

With the goal-setting theory, managers have learned that easier goals motivate more effectively than challenging ones.

False

The _____ is an independent, quasi-public corporation backed by the full faith and credit of the U.S. government that insures deposits in commercial banks and thrift institutions for up to a ceiling of $250,000 per account.

Federated Deposit Investment Corporation (FDIC)

In selecting the right job, one should start with consideration to "FACTS" where "F" stands for:

Fit

_____ is the number of times an individual is exposed to an ad.

Frequency

_____ are entrepreneurs who apply their creativity, vision, and risk taking within a large corporation rather than starting a company of their own. They enjoy a high degree of autonomy while receiving a regular salary and financial backing from their employer.

Intrapreneurs

_____ is the process of guiding the development, maintenance, and allocation of resources needed to attain organizational goals.

Management

Which of the following statements about Maslow's hierarchy of needs is true?

Maslow claimed an upper level of need was not activated until a lower level of need was satisfied.

_____ is the money a company earns from providing services or selling goods to customers.

Revenue

Curtiss Anaya is planning to sell kites on the beach this summer to pay for next year's school expenses. _____ refers to the potential that Curtiss will lose money and waste his time and end up at the end of the summer with not enough money to cover his expenses.

Risk

_____ is the process of determining which persons in the applicant pool possess the qualifications necessary to be successful on the job.

Selection

Which of the following statements about dumping is true?

The U.S has passed laws to make dumping illegal.

Which of the following is an example of an ethical business activity?

The employee reported to his supervisors that a co-worker had misappropriated company funds.

Which of the following statements about social responsibility is true?

The obligation that a business has to act socially responsible extends beyond the investors in the company to include workers, suppliers, consumers, and communities.

The basic accounting equations states that assets must equal liabilities plus equity.

True

The difference in value between a country's imports and exports is called its balance of trade.

True

The need for businesses to expand their markets is one of the most fundamental reasons for the growth in world trade.

True

The tax that the United States imposes on imported carbon steel products is called a tariff.

True

When a country sells its products in a foreign country at a cheaper price than usual, and sometimes even at a loss, it is dumping products.

True

_____ are distribution channel members that buy finished products from manufacturers and sell them to retailers.

Wholesalers

IBM purchased MRO Software Inc. for $740 million. MRO was a niche provider of software and services to help customers including nuclear power plants and oil companies. IBM, plans to fold MRO into its software unit. This is an example of a(n):

acquisition

_____ is any paid form of nonpersonal presentation by an identified sponsor.

advertising

_____ have been set up to expand job opportunities for women and minorities.

affirmative action programm

Money is used as:

all of these

The difference between the small business owner and the entrepreneur is that the entrepreneur:

assumes the risk of the business

Among managers there are three distinctive leadership styles. They are:

autocratic, participative, and free-rein

ATMs let customers of banks make deposits and withdrawals while in a shopping center or supermarket 24 hours a day. The letters ATM stand for:

automated teller machine

_____ bring buyers and sellers together, do not title to merchandise, receive commission on sales, and have little say over company sales policies.

brokers

Kathy Elliot has decided that she will start an Internet company to sell reliable used cars to customers nationwide. She has decided to use the sole proprietorship business format. Elliot's next step is to write a formal _____ before she applies for a business loan.

business plan

The _____ defines the relationships of authority from one level of organization to the next, from top to bottom.

chain of command

A _____ provides employees with the knowledge of what their firm expects in terms of their responsibilities and behaviors toward their fellow employees, customers, and suppliers.

code of ethics

_____ is the process of negotiating labor agreements between union members and management.

collective bargaining

A "mixed economy" is an economic system that:

combines private and government ownership of the factors of production

In a _____, the factors of production are owned collectively rather than individually, and no incentives to work harder or to produce quality products are provided.

communist economic system

The founder and current CEO of Whole Foods Markets wears cut-off jeans to work. He is a vegetarian, an outspoken proponent of green marketing, and a person who believes in eating organic foods. His views and beliefs have shaped the _____ of the supermarket chain, and all employees are expected to agree with these tenets.

corporate culture

In an act of _____, Amgen, the largest biotechnology company in the world, has donated more than $70 million to advance science education, improve quality of care and access for patients, and support resources that create sound communities where Amgen staff members live and work.

corporate philanthropy

The owner of Mercury Appraisal Company held a ribbon-cutting event when he opened his new business. He invited city dignitaries, representatives from all the news media, and anyone who might have need of his services to the event. The goal of his promotion was most likely to:

create awareness

A large furniture and appliance rental business is considering sponsorship options. It has brought together vice-presidents from the various functional areas of the company to determine which sponsorships will most effectively reach the rental company's prospective customers. The rental company has established a:

cross-functional team

As part of her marketing project, Lily Unruh is studying how Marriott operates. Since she thought it was simply a hotel chain, she was amazed to learn that its food divisions provide food for school cafeterias, airlines, hotels, and fast-food restaurants. Marriott's food divisions are departmentalized by:

customer

A small business owner that uses _____ to finance his or her venture is using borrowed funds that must be repaid with interest over a stated period of time.

debt

Bank loan

debt

Credit card

debt

Line of credit

debt

Supplier or vendor credit

debt

When The Bank of Bank County borrows funds from the Federal Reserve; the rate the Fed charges the commercial bank is called the _____ rate.

discount

When the producers of Ocean Spray cranberry products decided to make Craisins (a dried cranberry snack food) available in convenience stores, supermarkets, and vending machines, it was involved with determining _____ strategy.

distribution

_____ is the term used for efficiently managing the acquisition of raw materials to the factory and the movement of products from the producer to industrial users and consumers.

distribution

The _____ is a series of marketing entities through which goods and services pass on their way from producers to end-users.

distribution channel

The _____ characteristic of money is revealed by the fact that a dollar can be converted into four quarters or ten times.

divisibility

The lowest level on the pyramid of social responsibility has to do with a business's _____ responsibilities.

economic

An ______ is a person who takes the risk of starting and operating a business.

entrepreneur

Venture capital

equity

The _____ is a theory that is concerned with workers' perception about how fairly they are treated compared with their coworkers.

equity theory

The idea that employees are motivated by their expectations, or estimates of chances for reward, is called the _____ theory.

expectancy

For fees of five to fifteen percent of gross sales and multi-year contracts, an _____ handle all aspects of exporting for small businesses.

export management company

The least costly and least risky method for selling a product on the global market is:

exporting

The income statement is a snapshot of the firm's financial position at a certain point in time.

false

The major disadvantage of debt financing is the inability to deduct interest expenses for income tax purposes.

false

Total debits do not have to equal total credits.

false

Trade credit is credit extended to the buyer by the seller. It is entered in the buyer's books as an account receivable.

false

According to Herzberg, to keep a worker satisfied or motivated, the manager should:

give recognition to employee

A _____ is a formal complaint, by the employee or by the union, that management has violated some part of the contract.

grievance

The quality of life is:

he general level of human happiness based on such things as life expectancy, educational standards, health, sanitation, and leisure time

Paul Hyatt owns and operates DeepClean, a Florida-based company that cleans up mold and mildew in homes and businesses. As the sole proprietor of the business, he has unlimited liability, which means:

he is fully liable for all business debts

International Association of Food Industry Suppliers has completed its _____ merger with the Food Processing Machinery Association. The action represents a coming together of equals in which both boards and staffs are committed to creating a new association that is stronger and better equipped to serve its members' growing needs to more effectively compete in their marketplaces.

horizontal

One of the keys to ethical business behavior is:

how the company's top management conducts themselves

_____ is the process of hiring, developing, motivating, and evaluating employees to achieve organizational goals.

human resource management

The Blue Bird Bus Company in Georgia sells buses to the South African government. To South Africa, these buses are an example of:

imports

_____ is the careful coordination of all promotional activities to produce a consistent, unified message that is customer focused.

integrated marketing communications

_____ do not own their own companies but apply their creativity, vision, and risk taking within a large corporation rather than starting a company of their own.

intrapreneurs

The skills, knowledge, and abilities a person must have to fill a job are spelled out in a(n):

job specification

_____ is defined as whatever is considered fair according to the prevailing standards of society.

justice

The fifth factor of production identified by many managers and academicians is:

knowledge

A Theory X manager would assume his or her workers are:

lazy employees who can't be trusted

Karl Metzger plans to invest $5,000 in a partnership with his brother to produce and sell handcrafted violins, zithers, and other string instruments. Metzger does not plan to work in the business and wants no more liability than his investment. He should be a:

limited partner

The _____ is the belief that the firm should dedicate all of its planning, policies, operations, and efforts to the satisfaction of the customer.

marketing concept

Within the distribution channel, retailers and wholesalers are called:

marketing intermediaries

The _____ is based on the five P's.

marketing mix

The channels through which advertising is carried to prospective customers are advertising:

media

For a college student who needs to buy an $80 textbook, the money she received from her parents for the purchase of school supplies would be used as a:

medium of exchange

_____ is a form of on-the-job training in which a senior manager or other experienced employee provides job- and career-related information to a new employee.

mentoring

An organization's _____ is its general purpose or reason for existence.

mission

A(n) _____ loan is a long-term loan using real estate or other assets as collateral.

mortgage

Vending and direct selling are examples of _____ retailing.

non-store

A(n) _____ is a picture of the relationships among tasks and those employees given authority to do those tasks.

organization chart

A company has used ______ if it hires a mailing house to stuff its multi-part advertising message into envelopes and make sure that its mailings comply with government regulations.

outsourcing

_____ is the assignment of various functions, such as human resources, accounting, or legal work, to outside organizations.

outsourcing

The highest level on the pyramid of social responsibility has to do with a business's _____ responsibilities.

philanthropic

A(n) _______ is a method or process worked out in advance that leads to the achievement of some goal.

plan

Boulders, building trusses, and lead ingots would not make good mediums of exchange because they lack the key characteristic of:

portability

Vegetarians have the upper hand in Mumbai, India, where not eating meat is a centuries-old tradition. In a booming Indian economy, the vegetarians are outnumbering the meat-eaters in many metropolitan areas. In response to this growing vegetarianism (especially among the middle class), franchises like Pizza Hut have created 100 percent vegetarian menus. By eliminating all meat from pizzas, the Indian Pizza Huts have engaged in a _____ strategy.

product

Personal selling, advertising, public relations, and sales promotions are decisions made when planning the _____ strategy.

promotion

_____ is the attempt by marketers to inform, persuade, or remind consumer and industrial users to engage in the exchange process.

promotion

The elements of the _____ are advertising, personal selling, sales promotion and public relations.

promotional mix

_____ classes are specific groups who have legal protection against employment discrimination.

protected

American Handgunner, Shooting Industry and Guns Magazine are all periodicals aimed at people who enjoy hunting and target shooting and want to improve their skills and stay current in the latest technology. These magazines use _____ segmentation.

psychographic

_____ is the number of different target consumers who are exposed to a commercial at least once during a specific period, usually four weeks.

reach

A company that has a global vision:

recognizes and reacts to international business opportunities

_____ are marketing events or sales efforts that stimulate consumer buying.

sales promotions

A corporation's board of directors:

sets major corporate goals and policies

The _____ is the main government agency that assists small businesses with advice and financial assistance.

small business administration

The postage stamps and petty cash in the architect's drawer as well as his drawing table, his office furniture, and money owed to him by clients are all examples of assets.

true

The rewarding of a bonus for finishing a job proposal in a timely fashion would demonstrate how reinforcement theory can be used to motivate employees.

true

Criticism of South Africa's post-apartheid government contends that the new government has not extended liberties to its black majority population, but has instead concentrated on proving to a white minority that a black-run administration can govern a reasonably sophisticated economy and society. The belief that the new South African government is behaving unethically is an expression of the philosophy associated with:

utilitarianism