BUSINESS ADMINISTRATION CORE TEST

Mary is a bagger at Glen's Market. On a weekly average, she works 30 hours and fills 876 bags of groceries. Her productivity is ___________ bags of groceries per hour.

29.2. Productivity is determined by dividing the outputs of the employee by the inputs. To determine Mary's productivity per hour, divide the total number of bags of groceries by the number of hours she worked (876 ÷ 30 = 29.2).

Which of the following situations best displays a customer-service mindset:

A hotel chain offering its frequent guests the option of checking in as early as 9:00 a.m. and checking out as late as 5:00 p.m. This situation best fits a customer-service mindset since it supports the belief that good service should be a top priority. A corporation open during normal business hours is something generally expected of businesses. A business providing a seminar or overtime to its employees does not directly benefit customers.

The term market price refers to

A product's current selling price. Market price is the actual price that prevails in a market at any particular moment. It fluctuates according to supply and demand. Equilibrium, or market-clearing, price is the price at which customers are willing to buy the same number of units that producers are willing to supply. Relative price is one price compared to another, or the ratio between them. Averaging competitors' prices is not a method of determining prices for products.

A characteristic of effective written communication is that it

Accomplishes its intended purpose. Written communications serve many purposes, and a test of whether a written communication was effective is whether it accomplished the purpose for which it was intended. Written communications do not need to contain a lot of information in order to be considered effective. Effective written communication takes time and effort and is not usually quick and easy to prepare. It should also be clear and should not require the reader to interpret its meaning or be open to any interpretation that the reader wants to give it.

One of the functions of the Federal Trade Commission (FTC) is to protect

Against unfair methods of competition. The Federal Trade Commission promotes free competition among businesses, prohibits companies from joining together to fix prices, and regulates false or deceptive advertising. Labor unions and labor practices are under the jurisdiction of the U.S. Department of Labor. There are no government agencies set up to protect businesses from bankruptcy

Which of the following would be the most appropriate item to purchase with a credit card:

Airline ticket. Many lending institutions and retailers offer credit cards, which allow individuals or businesses to purchase now and pay later. Because credit-card holders often pay high interest rates and other fees, they must be careful when using their credit cards so they don't charge more than they can pay off in a reasonable timeframe. Using credit cards to make large-dollar purchases often makes it easier to change or cancel transactions such as airfare. In fact, many businesses prefer credit cards as a payment method. Using a credit card to purchase a pack of gum, a magazine, or a small pizza is not a good idea, especially if the transaction fee is higher than the price of the good or service

Which of the following is a ground rule for brainstorming:

All ideas are welcome. In a brainstorming session, all ideas are welcome. No judgments should be made about ideas. Every point of view is valuable. A time limit is applied to the session, usually about 20-25 minutes. Group members are encouraged to expand upon others' ideas

Which of the following is not a question typically used for applying an appropriate decision-making style:

Are the affected parties willing to participate in the decision making process. To apply an appropriate decision making style, you need to find out who is (or should be) involved. You ask: "Will the decision affect others?" "Will the affected parties want or need to have a say in the decision?" "Am I the only one who has the information necessary to make the decision?" As you're asking these questions, you determine which decision making style is appropriate: minimum-, moderate-, or maximum-input. You don't need to ask if the affected parties are willing to participate in the decision making process— because you're already finding out if they want or need to have a say in the decision.

If you take a positive approach toward others, you can expect to have

Better relationships. Positive people usually have better personal relationships than others because they are cheerful, kind, considerate, and interested in others. This means they have many friends, which makes their lives richer. Being positive does not necessarily increase the number of conflicts they encounter or reduce the amount of competition.

Which is the most effective way for an employee to communicate interest in providing good service to customers?

Body language. Body language is gestures, facial expression, tone of voice, or any other form of communicating without words. An employee's body language conveys a message to customers. For example, if an employee is talking to one customer and ignores a new customer, the employee's body language is telling the new customer that s/he is not important. On the other hand, an employee who smiles or motions that s/he will be with the customer shortly is communicating an interest in providing good service. Employees usually do not communicate their social status to customers. The verbal and nonverbal communications employees use during the closing statements indicate their interest in being of service, not the closing statements themselves. Informal product demonstrations do not communicate interest in providing good service to customers.

The finance function is usually responsible for which of the following processes:

Budgeting. The finance function is usually responsible for budgeting. This affects all other business activities. It also affects individual employees because the budgeting process provides for salaries, benefits, etc. The finance function is not responsible for manufacturing, operations, or research

Nicole's Manicure Salon has operated successfully for the past 15 years. Recently, Nicole decided to expand by offering several people the opportunity to own and operate a Nicole's Manicure Salon in other locations. Which form of business ownership would allow Nicole to attain her goal?

Business-format franchise. A business-format franchise operates under a trade name and offers the opportunity for many people to become their own bosses while helping companies expand more efficiently. Product trade-name franchises offer an agreement to stock and sell a specific or exclusive line of goods. General partnership agreements are designed to combine capital, experience, and the abilities of two or more people. Limited partnerships are designed for two or more people who want limited

Which of the following is not part of the price involved with making a vision into a reality:

C Aspirations. Aspirations are not a part of the cost involved with making a vision into a reality. However, money, time, and effort are all a part of that cost.

Individuals interested in obtaining a position with a governmental agency should check the

Civil service postings. Civil service is one form of government employment that usually requires an applicant to pass a competitive exam in order to be hired. Governmental agencies post lists of civil service jobs currently available within the agencies. These listings usually are posted on bulletin boards at the various city, county, state, and federal office buildings. School bulletin boards usually provide information about jobs available with local businesses rather than governmental agencies. Unions only provide information about jobs with companies that have contracts with the unions. Local telephone directories do not contain specific job information.

If your supervisor asks you to find information on Coca-Cola's current market share for cola in the United States, the best and most precise wording to use when trying to narrow down the Internet search on most search engines would be

Coca-Cola AND current market share AND cola AND United States. Search engines need to be given directions using exact wording. Using "AND" links all of the required information together and gives a more productive search. The more exact the wording, the more narrow the responses returned, and the less time wasted on unrelated responses. Using "OR" as the logical operator will tell the search engine to return information on individual topics instead of responses that include all four topics. The "AND/OR" could return responses on either Coca-Cola or market share. It could also give you Coca-Cola market share, but it might not; or it might be for a country other than the United States. The "Coca-Cola OR current market share OR cola AND United States" could return responses for other companies, other industries, or information on cola in the United States, but not the specific information needed

Which of the following is a type of financial-services provider:

Commercial bank. A commercial bank provides a variety of financial services to individuals and businesses. Besides providing savings accounts and other savings options, banks also make loans and offer credit cards. Many large banks have trust departments and help individuals plan for retirement. Depending on the size of the bank, it may be possible to obtain all necessary financial services from that institution. The stock market itself does not provide financial services. A taxation department collects various types of taxes. A retirement community provides housing rather than financial services.

Which of the following is an appropriate attitude for the salesperson to have toward customers' complaints:

Complaints can often be opportunities. Salespeople should view customers' complaints as opportunities to impress customers positively. Customers whose complaints are handled satisfactorily often become repeat customers. This benefits the business and the salesperson. Most businesses expect salespeople to handle routine complaints as part of their selling responsibilities. Management often provides assistance if the problem is difficult to resolve. There is no way to prevent all customer complaints. Complaints can cause problems for both the salesperson and the business if they result in lost sales income and profits

Which of the following is not a factor in your image of yourself:

Concept testing. Concept testing is exploring the concept or idea for a product in order to obtain feedback. Your image of yourself is your self-concept; and your skills and abilities, life roles, and personal traits are components of your self-concept.

Which of the following describes the skill of conveying a message clearly in as few words as possible:

Conciseness. Conciseness in communicating involves the use of precise language and the elimination of extra words and phrases. Completeness means that all information that should be communicated has been included. Concreteness refers to information that is pertinent and reliable. Conduciveness is created by information that leads in some particular direction

Businesses follow the generally accepted accounting principles (GAAP) because the principles help communicate financial information in a(n) __________ way.

Consistent. Generally accepted accounting principles (GAAP) are universal rules that accountants use when they prepare and summarize financial reports. By using the same standards and rules, accountants prepare the reports in a consistent way, so the information is clear to all people who read and work with financial information. Accountants do not follow GAAP to communicate information in an uncooperative, biased, or adaptable way.

The ultimate user of goods and services is called a

Consumer. Ultimate consumers are those who personally use goods or services to satisfy their wants or needs. The people who make or provide goods and services are called producers. A distributor is a type of middleman who obtains products from the producer and helps to move them to the ultimate consumer.

One reason the selling function is so important is because it involves.

Contact with customers. The selling function is very important because it involves contact with customers. If customers are not satisfied with the sales experience, they often will not buy even if they need the product and the price is right. The selling function does not necessarily involve displaying products, setting high prices, or feedback from vendors.

What should employees in today's changing world do to prevent their skills from becoming obsolete?

Continue their education. Employees need to continue learning and improving their skills in order to keep up with changes in technology. For example, many businesses are replacing existing equipment with advanced models that are more complex or perform more operations. Employees need to be willing to learn the skills necessary to operate advanced equipment because their former skills are obsolete. Employees should not change jobs frequently. Modifying personal behavior will not necessarily prevent employees' skills from becoming obsolete unless they also continue their education. Many employees are responsible for performing specific tasks and are not able to delegate that responsibility to others.

Graduation from an educational institution would be an example of a(n) __________ change.

D Personal. Personal changes are those that concern our bodies, minds, lifestyles, etc. These changes are frequent and obvious in our personal lives. Where we live, what we do, who our friends are, etc., are always subject to change and may be influenced by economic, governmental, or technological changes. Economic changes are fluctuations in the economy. Governmental changes are new or revised laws, regulations, policies, public leadership, etc. Technological changes are developments, breakthroughs, and other changes in the fields of science, engineering, etc.

A new business opened across the street from Heinrich's. It is virtually identical to Heinrich's. What type of competition is Heinrich's facing?

Direct. Direct competition is the rivalry between or among businesses which offer similar types of goods or services. Price competition is a type of rivalry between or among businesses that focuses on the use of price to attract scarce customer dollars. Indirect competition is a rivalry between or among businesses which offer dissimilar goods or services. Strict competition is a distractor.

Which management function is described in the following situation: James Crane has created a team atmosphere among the members of his sales department. When the team exceeded their monthly sales goal, James rewarded them with a celebratory dinner out and a five-percent bonus.

Directing. Directing is the management function of providing guidance to workers and work projects. Part of directing involves motivating and leading workers to accomplish the business's goals. Managers use their skills to develop a team spirit among employees, and they motivate employees by rewarding them for their hard work. Controlling is the management function that monitors the work effort. Planning is the management function of deciding what will be done and how it will be accomplished. Organizing is the management function of setting up the way the business's work will be done.

While George is unable to work because of a back injury, he receives a check every week for 60% of his usual salary. George's check is a benefit of his __________ insurance.

Disability. Disability insurance is sometimes called loss-of-income insurance because it pays a percentage of a worker's normal wages to the worker when s/he cannot work because of an illness or injury. It is often purchased through or by an employer. Cash-value is a type of life insurance that pays out the stated value of the policy at the time of death. Liability insurance protects property owners if someone else is injured on or by their property. Bodily injury is a type of liability insurance that protects vehicle owners when they cause injury to others.

Randy works at a batting cage. Today a customer came to him to complain that the machine did not give as many pitches as she paid for and to demand a refund. Randy checked out the machine and didn't find anything wrong with it. He had a feeling that the customer was just trying to practice for free but didn't have any proof. Randy's customer is a(n) __________ customer.

Dishonest.Randy's customer is dishonest. She's trying to get money back for a product she's already consumed. A domineering/superior customer talks down to you and gives you orders on how to do your job.. An impatient customer shows verbally or nonverbally that s/he does not want to wait in line.

Jan's supervisor is giving her verbal instructions for a task to be completed. Jan takes notes and asks her supervisor to elaborate on a key point. Jan is practicing

Effective listening. Effective listening requires the listener to interpret and process information in order to capture the true meaning of what is being said. Reading and writing are forms of written communication. A person who listened in a distracted manner would be thinking about other things rather than focusing on the speaker's message. Nonverbal communication includes all forms of communication that do not involve the use of words, e.g., facial expressions, body posture, and eye contact

Which of the following business resources provides information about the company's dress codes and vacation policies, and general rules for appropriate behavior

Employee handbook. Businesses often develop employee handbooks that provide information about their general policies and procedures. For example, a business might outline overtime and vacation policies, disciplinary and grievance procedures, pay schedules, dress codes, and behavioral expectations in its employee handbook. Employee handbooks are usually give n to new employees when they first start their jobs. Productivity manuals, customer newsletters, and personnel records are not sources that workers use to obtain information about a company's general policies and procedures for employees.

Employees who falsify payroll records or punch time cards for other employees are contributing to

Employee theft. Falsifying payroll records or punching time cards for coworkers who are not working are examples of employee theft because the company is paying wages to people who are not performing their job duties. Shoplifting occurs when a customer steals merchandise. Tax fraud involves reporting false tax information to the government. Pilferage is stealing by hiding merchandise in shopping bags or any concealed places.

Keeping an open mind is essential to empathy because it

Enables you to see another's point of view. Keeping an open mind is essential to empathy because it enables you to see another's point of view. Being open to others' ideas and opinions helps you to understand them and to feel empathy toward them. Keeping an open mind does not necessarily make learning easy. Keeping an open mind may help you to be decisive or have a lot of interests, but those traits are not related to empathy.

People who have integrity usually follow an established code of

Ethics. Ethics are the basic principles, or morals, that govern your behavior. People with integrity follow their ethical or moral principles in order to try to do what is right. Laws are regulations that people may, or may not, obey. Conduct is the way a person acts, which could be in an unethical manner. Values are the principles by which a person lives, but they are not necessarily moral or ethical.

Where do businesses often look for information on general economic and social trends?

External sources. External sources, or sources outside the business, can provide the business with information about general economic and social trends. These sources might include governmental agencies, trade associations, or research organizations. Businesses do not have the time or capabilities of obtaining information about general economic and social trends. Therefore, they rely on external sources for this information. Main competitors usually are not willing to share information. The accounting department and the personnel office are internal sources of information and would not have information on general economic and social trends.

True or false: Companies without an HR department do not participate in HR management activities.

False; in companies without HR departments, other managers and supervisors participate in HR management activities. Human resources management is a function of business, as well as a department. In other words, bigger companies may have a great number of employees dedicated solely to managing human resources, but in small businesses without an official "HR department," this important function still remains. And, even in big companies, human resources management is not contained solely within the HR department—supervisors and managers across the organization also take some part in managing human resources, although their level of involvement varies from business to business. Smaller companies need HR management as much as bigger ones, and HR managers aren't the only ones who can complete these activities. Not all employees will participate in HR activities, however

The Sheshadri sisters want to open a child-care center, but they have insufficient funds to pay all the expenses. What business activity are they involved in when they obtain the money they need to operate the center?

Financial analysis. This is the process of planning, maintaining, monitoring, controlling, and reporting the use of financial resources. It involves obtaining funds to operate a business and using those funds to achieve the goals of the business. Accounting is one part of financial analysis and is the process used in keeping and interpreting financial records. Strategic management is the process of planning, controlling, and organizing an organization or department. Marketing is a primary business activity that involves creating, communicating, and delivering value to customers and managing customer relationships in ways that benefit the organization and its stakeholders.

It would be appropriate for a job applicant interviewing with a small but growing company to ask about

Future advancement opportunities. Questions concerning advancement opportunities are appropriate during an interview because they indicate the applicant's long-range interest in the company. These types of questions also help the applicant decide if there is a potential for professional growth within the company. Questions about industry credit ratings and corporate financial arrangements are not appropriate, especially for entry-level applicants. Information about employees' salaries is confidential.

Sam's supervisor has asked him to provide an update about the status of his project during an upcoming meeting. Before Sam attends the meeting, it is important that he

Gathers necessary information. Before the meeting takes place, Sam should gather information and prepare notes for the meeting, so that he can provide necessary input or feedback that his supervisor has requested. If Sam attends the meeting and does not have the correct information, he may lose credibility with his supervisor and coworkers in terms of his job performance. Having handouts for meeting participants and obtaining feedback from others may not be necessary for Sam to provide. Minutes are a formal method of note taking that document the discussion, vote taking, and problem resolution that occur during the meeting. A specific person usually writes the minutes during the meeting.

One way that employees can help to prevent accidents is by practicing

Good health habits. Practicing good health habits helps reduce the risk of carelessness, which commonly causes workers to make errors that result in accidents. People who eat a balanced diet, get plenty of sleep, and exercise regularly are more rested, alert, and able to concentrate on their work. Practicing first-aid techniques, emergency methods, and security procedures will not help employees to prevent accidents, but they should be trained in those areas in order to properly deal with accidents once they have occurred.

Which of the following factors affecting personal appearance includes nutrition, weight, and posture:

Health. Eating the right foods, maintaining an appropriate weight, and practicing good posture are conducive to good health. This has a positive effect on the image individuals project to others Dress factors involve the selection of clothes a person wears, which include the colors, textures, lines, shapes, and patterns of the clothes. Grooming factors include various guidelines for personal hygiene

Which of the following is not an important topic to discuss with a potential investment advisor?

Hometown. Although it might be interesting, knowing a potential investment advisor's hometown is not important to discuss when deciding whether to hire him or her. Information about licensing, education, and experience is vital to making your decision.

When writing letters of application, job applicants should avoid being overly

Humorous. In most cases, job applicants are writing letters of application to strangers, people they do not know. Also, these letters concern important issues that may have a long-term effect on an individual's life. Therefore, applicants should avoid being overly humorous, funny, or cute, which might give the impression that they are not serious about the job. Businesses expect letters of application to be formal, precise, and accurate because they use them as a guide in hiring employees.

Immediately contacting the credit-card company if credit cards are lost is one way to protect against

Identity theft. Identity theft occurs when someone illegally obtains another person's information and uses that information to assume the other person's identity. One way to protect against identity theft is to immediately contact the credit-card company if credit cards are lost. If the cards fall into the hands of an unauthorized person, that person can attempt to use the cards as if s/he was the owner of the card. This is a type of identity theft. If someone uses another person's credit card illegally, the penalty is not excessive and, in many situations, there is no penalty if the company is notified before any illegal use occurs. Therefore, there is virtually no financial risk. Immediately contacting the credit-card company does not protect against high interest rates.

What is one way that a business can reduce unsafe working conditions?

Improve housekeeping. Simple housekeeping procedures, such as cleaning up work areas and putting away tools, are easy ways to keep a work area safe and reduce hazardous conditions. A yearly inspection would not correct ongoing safety problems. OSHA regulations must be enforced in order to be effective. Employees need periodic breaks from the work routine.

The profit a business has earned can be determined from the business's

Income statement. An income statement is a summary of a business's income and expenses over a period of time. It is also referred to as a profit-and-loss statement. Assets are things of value owned by a business. A balance sheet shows what a business is worth at any point in time. A budget is an estimate of revenue and expenditures

When coworkers casually discuss work-related topics at lunch, it is called ____________ communication.

Informal. A casual exchange of information is informal communication. Coworkers who talk about work when they aren't on the clock, such as at lunchtime, are engaging in informal communication. Sometimes, informal communication can help employees solve problems or get ideas for streamlining a project. Ceremonial and official indicate a formal exchange of information. In business, external communication occurs with people outside the company, such as vendors and customers.

Which of the following involves obtaining and evaluating data for the purpose of helping businesses make long-term decisions.

Information management.This is the process of accessing, processing, maintaining, evaluating, and disseminating knowledge, facts, or data for the purpose of assisting business decision making. Businesses need a lot of information to operate successfully and make decisions that will help the business grow and prosper. Managing the information allows businesses to obtain the data they need to remain competitive and survive.Communications network, organizational development, and applied research do not involve obtaining and evaluating data for the purpose of helping businesses make long term decision

Kevin is interested in a career in public relations. He visited three local firms to obtain industry information and make important contacts. What career search tool did Kevin use?

Informational interview. The informational interview is used to learn about careers, get advice on preparing for careers, obtain industry information, and make contacts with people working in the field of interest. Employment interviews are used to screen applicants for jobs. Occupational review and industry analysis are not career search tools.

When reviewing a business letter that a coworker has written to a customer, which of the following elements should you look for:

Inside address and signature. The elements of a business letter include the inside address and signature as well as the return address, dateline, salutation, body, closing, and reference initials. Company logo and letterhead, return envelope and postage, and brief summary and outline are not elements of a business letter.

Mary has a full-time job and is planning to buy a new car. She has $2,000 for a down payment, but the car costs $10,000. What type of credit account would be appropriate for Mary?

Installment. Installment credit is commonly used to purchase large, expensive items such as cars. An installment credit account is set up to handle one total amount of credit that is to be paid off in regular installments. Also, it usually requires a down payment. Revolving credit accounts limit the total amount of money that may be owed and charge interest on outstanding balances. Regular credit accounts allow credit users to buy at any time during a set period. Budget accounts are a form of short-term credit often set up for 60- or 90-day periods.

A customer asks a salesperson about a specific advertisement in last Sunday's newspaper. Which of the following would help the salesperson to assist the customer:

Knowledge of the products being promoted. Information regarding planned promotions of products prepares salespeople to handle customer inquiries. The store's promotional budget and policies would not provide information pertinent to this customer's inquiry. Personal customer information also would not help to answer the customer's question.

Using a credit card is

Like getting a free loan if you pay the balance each month. When you pay the balance on a credit card each month, you are getting what amounts to a free loan. A credit card is not a good way to pay for impulsive purchases—impulsive purchases are usually a bad idea no matter how you pay for them. Credit cards are not an inexpensive way to borrow money for an extended period. Nowadays, easy access to credit cards is a growing problem.

When writing informational messages, business employees should explain the situation and include sufficient data for the recipient to be able to

Make a decision. Informational messages are intended to inform and provide data to the recipients. In many cases, the purpose of an informational message is to help the recipient make a decision. In order for this to happen, the business employee should explain the situation and include sufficient data. If recipients clearly understand the who, what, where, when, why, and how of the situation, they usually have sufficient information to make a decision. Clear and concise writing enables a recipient to read the message rather than explaining the situation or including sufficient data. The letterhead usually includes the business's name, address, and phone number so recipients are able to contact the business. Explaining the situation and including sufficient data does not guarantee that the recipient will agree with the content.

Which of the following is the best way to approach a coworker who has a vision impairment:

Make a small amount of noise as you come near. Always let persons with vision impairment know that you are approaching so that you don't startle them. Coughing, clearing your throat, or making noise with your feet are all acceptable ways to announce your presence. Speaking loudly or touching people to get their attention could startle them if they aren't aware anyone is in the vicinity.

Professional selling belongs in what career area?

Marketing. Professional selling is a career in marketing. The marketing field includes career opportunities whose processes create, communicate, and deliver value to customers and manage customer relationships in ways that benefit the organization and its stakeholders. Professional selling is not a career in management and administration, finance, or sports, although these business areas may use professional selling in certain marketing efforts

When creating your business's web page, you make it possible for Internet browsers to identify and locate various elements of your page through the proper placement of

Meta tags. Meta tags are HTML codes that display information about web pages. HTML, or Hypertext Markup Language, is the program used for creating pages on the World Wide Web. It uses tags placed in strategic places to help the browser identify and locate various elements of the web page. ASCII, or American Standard Code for Information Interchange, is plain text from which the HTML document is usually created. The browser moves from one place to another within the page or to another site by means of a hyperlink

During the month of July, sales at Handy's Shoe Mart totaled $2,500. The cost of the shoes was $1,025. The owner paid out $866 for supplies, insurance, rent, and utilities during the month. The $609 left over represents the owner's

Net profit. Net profit is the amount of money left over after operating expenses are subtracted from gross profit. Sales income is the total received from the sale of goods or services. Gross profit is the money left over after cost of merchandise is subtracted from sales income. Operating expenses are the daily costs of running a business.

One reason it is important to verify that credit agencies have current information about your credit history is because incorrect data can affect your ability to

Obtain a bank loan. Credit is the arrangement by which businesses can purchase now and pay later. A credit agency is a business that maintains files of credit information on individuals and businesses. It is important to make sure that credit agencies have accurate information about your credit history because other businesses purchase the reports to make decisions about extending credit or providing a loan to you. Your credit history does not necessarily affect your ability to pay your bills, your ability to declare bankruptcy, or your ability to sell assets

What should you do if you phone an important customer and the customer indicates that you have called at a bad time?

Offer to schedule a second call. In some situations, you will call an important customer at a time when the customer is busy or in a hurry and is unable to speak to you. Then, it is appropriate to offer to schedule a second call at a time that will be convenient for the customer. You should not try to continue the conversation or explain that the call will be short if the customer indicates that this is a bad time. It is your responsibility to return the call rather than ask the customer to call you.

What are the day-to-day activities required for a business to function?

Operations. Operations are the day-to-day activities required for continued business functioning. These activities include buying the necessary materials and supplies, hiring employees to do the work, maintaining the facilities, etc. Without these activities, there would be no business. Production is the process or activity of producing goods and services. Finances involve the funds needed to achieve the goals of the business. Selling is a marketing function that involves determining client needs and wants and responding through planned, personalized communication that influences purchase decisions and enhances future business opportunities.

You are responsible for ordering the monthly supply of cleaning and maintenance materials for a local business. If eight maintenance workers each use an average of one gallon of cleaning concentrate per week, how many gallons of solution should you order on a monthly basis?

Ordering the correct quantity is an important purchasing activity. In this example, eight maintenance workers each use an average of one gallon of cleaning solution per week for a total of eight gallons. Since there are an average of four weeks in a month, multiply the number of gallons used per week by four to determine the amount to order (8 x 4 = 32).

Your customer at Issa's Ice-Cream Parlor is a little girl who can't make up her mind, and your line of customers is getting longer and longer. What personal trait must you practice in this situation?

Patience. Patience is the ability to endure life's aggravations and difficulties calmly. Patience will help you to wait calmly for your customer to decide. Aggressiveness is an attitude based on feelings of anger and disrespect for others. Body language is nonverbal communication, and constructive criticism is evaluative information designed to help someone improve.

So that the company can determine when it needs to order more pencils, Kendra subtracts one box of pencils on a tracking sheet after she takes the box from the office supply cabinet. This is an example of

Perpetual inventory. Perpetual inventory is a record of inventory information that is continuously updated. Updates can be done manually or by computer. Businesses often track their office supplies to make sure that they have enough items on hand to run smoothly. Inventory shrinkage is a loss of inventory due to shoplifting, employee theft, breakage, misplacement, or poor recordkeeping. Physical inventory is the process of counting each item that is available for use. Inventory keeping is a fictitious term.

As Zack left work one evening, his supervisor made the following comment: "Zack, I liked the way you handled the upset customer situation. Keep up the good work!" The feedback Zack received was

Positive, external. Feedback is evaluative information about you, your behavior, or the results of your behavior. It can come from within (internal), or from others (external). Positive feedback involves praise and tends to reinforce the behavior that led to the praise. Negative feedback involves criticism and makes you want to change or modify your words and actions.

Rosita is a salesperson at a local retail store and has been asked to work with management to determine what items will be offered for sale in her department. The items that she chooses will draw customers to her area of the store. Rosita is being asked to assist in establishing which type of business policy

Product. Product policies are the most important business policies affecting customers. They are set by management to decide what kind of products to offer because product policies help customers decide where to buy. Management makes product policies to meet the needs and wants of consumers. Service policies are established to provide special features that other, similar businesses may not offer in order to persuade customers to choose their business over another. Credit policies are developed to help employees and customers understand how credit transactions will be handled. Promotional policies are established to attract customers and to increase sales.

The process of converting resources into goods and services is called

Production. This process makes resources more useful to ultimate consumers and industrial users. Marketing is all those functions involved in getting goods, services, and ideas to the final user. Refinement is the process of making ongoing product improvements. Entrepreneurship involves taking the risks of business ownership.

A manufacturer might require all its employees to wear hard hats and protective eyewear when walking through the facility's warehouse and factory to

Protect the employees' rights to work under safe conditions. Many governments around the world have laws to protect workers. The right to work in a safe environment is one right that the laws often address. Manufacturers might require employees to wear hard hats and eye goggles to protect them from hazardous conditions and equipment in specific areas of the facility (e.g., warehouse). Some companies might require that workers wear ventilation masks when working with certain chemicals. To prevent outsiders from entering the premises, businesses might develop security procedures as a means to keep workers safe. Ethical standards vary by country so there are not universal standards that every country follows in terms of workers' rights. Environmental issues, such as a business's responsibility to institute safeguards to minimize air and water pollution that results from its activities, apply to all citizens.

Which of the following is an example of a business using technology to improve the efficiency of its salespeople.

Providing laptop computers. Laptop computers allow salespeople to have instant access to company databases. This enables them to update information quickly and place orders on the spot. The laptop computer contains the software that generates a purchase order and forwards the order information to manufacturing, purchasing, and accounting. The salesperson does not need to return to the office to prepare paperwork but can go on to another appointment. Debit transactions, video catalogs, and ATM machines are not types of technology that improve the efficiency of salespeople.

Rick works for Sugar Sweets, a producer of chocolate-cream pies. It is his job to find vendors that sell the best-quality pie containers at the best price for the company, order the correct quantity, and make sure they are delivered to the company on a timely basis. What business activity is he performing?

Purchasing. Purchasing activities of a company involve the planning and procedures necessary to obtain goods and services for use in the operation of the business or for resale. In this situation, Rick is not only finding the best deal for the company, but also planning the quantity and delivery of the pie containers for Sugar Sweets. Pricing is a marketing function that involves determining and adjusting prices to maximize return and meet customers' perceptions of value. Distribution is a marketing function that involves moving, storing, locating, and/or transferring ownership of goods and services. Financing is a marketing function that involves understanding the financial concepts used in making business decisions.

When you set a challenging goal, you are most likely to

Put forth your best effort. A goal should not be too hard to reach or too easy but challenge you to put forth your best effort. Meeting a challenging goal should make you happy with the outcome. Giving up too soon comes from a lack of perseverance. A challenging goal is not necessarily frustrating.

Which of the following message closings is the most appropriate to use for a businessperson who is sending formal e-mail correspondence:

Regards. A closing is the point in which the writer ends a letter with a word of farewell just before signing his/her name. When writing business letters, closings are usually neutral, professional, and friendly. Closings such as "regards" and "sincerely" are common ways to end business letters. THX is an initialism that represents the word thanks. Initialisms are not appropriate to use to close formal business letters. A writer might use "greetings" to open an informal letter and use "affectionately" to close a letter to a friend, family member or significant other.

Which of the following is characteristic of a reliable worker:

Responsibility. An individual who is responsible is dependable, and a dependable employee will discharge all duties in a reliable fashion. Imagination is the trait that enables people to visualize how things could or might be. Empathy is the ability to put yourself in another person's place. Romanticism is an outlook that is fanciful and not based on fact.

Which of the following is an example of information that a job applicant might include in a follow-up letter to an interviewer:

Restatement of key points. Job applicants should always send follow-up letters to interviewers in order to thank them for their time. These letters should be brief, but they can contain important information. An applicant might want to restate several key points that were discussed during the interview in order to reinforce his/her qualifications for the job. This information will also help the interviewer to remember the applicant. An explanation of previous employment, a list of personal references, and an outline of educational background are types of information that are provided in resumes and job applications rather than in follow-up letters.

Individuals who believe in themselves and think they are of value are considered to be

Self-confident. Self-confidence is a positive belief in your own talents, skills, and objectives. Individuals who believe in themselves and think they are of value are considered to be self-confident. These people usually are able to interact successfully with others because they feel good about themselves and have a positive attitude. Self-serving is giving priority to one's own interests. Individuals who believe in themselves and think they are of value are not considered to be aggressive or judgmental.

When you are angry about something but control your temper, you are demonstrating

Self-management. When you are angry about something and control your temper, you are demonstrating self-control, a skill related to self-management. Self-awareness, social awareness, and relationship management are components of emotional intelligence, but they do not include self-control as a skill.

People sometimes take tests that identify their interests in order to help them develop their

Self-understanding. There are professionally prepared tests that have been created to help people develop self-understanding. These tests are often available through the school system. One of the tests, an Activities Preference Inventory, will identify your areas of greatest interest. Physical image is the personal appearance that you present to others. Self-discipline is training yourself to act in ways that will further your development. Personal philosophy is the combination of principles, attitudes, or beliefs held by individuals

Lauren is setting objective measures—criteria to evaluate her success. Which step in developing an achievement orientation does this illustrate?

Setting goals. Lauren is setting goals to give herself criteria for evaluating success. In this scenario, Lauren is not being patient or persistent, demonstrating leadership, or asking for feedback.

One characteristic of letters of inquiry that businesses write to request information from other businesses is that they are

Short. A characteristic of letters of inquiry is that they are usually short. Businesses often write letters of inquiry to other businesses to request information and literature or to order goods or services. These types of letters are routine and should contain only the information the receiver needs in order to respond. Letters of inquiry requesting information usually are not complex. Social business letters do not request information but often are used to express thanks or congratulations. Letters of inquiry that businesses write to request information from other businesses usually are informal rather than formal.

What is the first step in the process of leading change?

Show why the change is necessary. Showing why the change is necessary is the first step in the process of leading change. After you've proven the need for the change, you can ask others to join you in leading it, communicate the change to everyone involved, and put the change into action

Many businesses use database software programs to computerize their customer mailing lists in order to instantly

Sort by zip code. Database software programs allow businesses to arrange customer information according to various criteria. Once the names, addresses, and other information are entered in the computer, the business can sort the data alphabetically, or by zip code, or by any other criteria. For example, a business might sort the list by birthday in order to send each customer a personalized card. A business might use a spreadsheet program to calculate monthly profit, a word-processing program to prepare sales letters, and a communications program to write e-mail messages.

Successful communication depends upon the

Speaker and the listener. Successful communication depends on active participation of the speaker and the listener, each playing a vital role in the process. Communication can take place even if the speaker is not entertaining (and sometimes it is inappropriate for the speaker to be entertaining), and even if the listener has trouble paying attention. There is no audience, per se, in the communication process.

The ability to quickly and accurately calculate mathematical data is one of the characteristics of a __________ software program.

Spreadsheet. Spreadsheet software programs are designed to organize, calculate, and analyze mathematical or numerical information. Businesses are able to enter mathematical information into rows and columns, and the software provides accurate calculations in a matter of seconds. Database software programs maintain information according to specific criteria. Word-processing software programs are used to create text documents. Graphics software programs are used to combine text and pictures to create visual impact

Businesses often use presentation software to develop computerized training materials that contain interactive buttons, which allow employees to

Test themselves. Presentation software enables businesses to develop materials that contain interactive buttons. This allows employees to test themselves on their knowledge and understanding of the material. Businesses often develop this type of computerized training materials because it allows employees to learn at their own pace, test themselves, and review the material if necessary. Employees can read a question or view an action on a computer screen and respond by clicking on an interactive button. The computer quickly processes the information and advises the employees if their answers are correct. Businesses do not develop computerized training materials that contain interactive buttons in order to allow employees to study together, access databases, or conduct research

Which of the following is evidence that diversity cannot be avoided:

The demographic makeup of today's workforce. The demographic makeup of today's workforce proves that diversity cannot be avoided. More women and minorities are in the workforce now, and the average worker is older as well. Stereotypes and prejudices are a main cause of cultural insensitivity. Language barriers and the value placed on individualism are common cultural issues

Putting $100 in a savings account today and earning 4% interest over the next year illustrates the concept of

The time value of money. The term "time value of money" refers to the increase of an amount of money as a result of interest or dividends earned. A basic illustration of the time value of money is money and the interest it earns in a savings account. Principal is the deposited amount, which is not modified. Opportunity cost is what you have to give up when you make a choice. In this case, the opportunity cost of depositing $100 is spending it on something else. Inflation has a negative impact on the time value of money.

Why is it important for business employees to ask relevant questions?

To clarify meanings. Relevant questions are those questions that pertain to the issue at hand. They are asked to obtain information. Employees should ask relevant questions in order to clarify the meaning of statements or instructions. By asking relevant questions, employees can obtain additional explanations to help them understand what they are expected to do. Employees do not ask questions to send messages, offer suggestions, or make statements.

What is the purpose of developing and using graphics in business reports?

To communicate information. The purpose of developing and using graphics in business reports is to communicate information. In most cases, graphics are used to explain complex information or to highlight information that is of the most importance. The use of graphics often adds interest and makes the information easier to understand. Graphics are not used to entertain the audience, fill up the page layout, or highlight reference material.

Which of the following is not a reason to participate in a discussion:

To declare your opinion. It's important to participate in a group discussion for several reasons: to think critically, to organize your thoughts, to develop your understanding of a topic, to know when to change your mind, and to gain confidence in speaking to other people. Declaring your opinion, which may or may not take place during a discussion, is not a reason to participate.

A staff meeting was held to discuss some problems the business was having. Management did not need to stress the seriousness of the problems, as it was conveyed in their voices. Which speech element was management using to convey its message?

Tone. Tone is the sound of a speak er's voice, which should carry the meaning of the subject. It is used to communicate emotions, feelings, and attitudes. Enunciation is speaking distinctly. Tempo is the rhythm of speech. Empathy is the ability to listen to what is being discussed from the speaker's point of view.

Cutting timber and milling the trees into standard-size lumber is an example of form utility because

Trees are being made usable. Form utility occurs when the shape or form of a product is altered to make it more usable to consumers. A carpenter cannot use raw lumber until it is cut into standard sizes. The cost of lumber affects possession utility. The availability of lumber affects time utility. The location of lumber affects place utility.

What do some people purchase as an investment that accumulates a cash value?

Type of life insurance. There are several types of life insurance, but one type accumulates cash value. Some people purchase this type of life insurance as an investment because it is a method of saving and generating additional cash. People can borrow against the cash value or cancel the policy and receive the cash value. Some people buy this insurance as part of planning for future financial needs. Checking accounts are not considered investments. The house, rather than the mortgage, is an investment that often increases in value. A mortgage is a loan. A personal installment loan is a debt.

Traditional economic systems are found only in __________ countries.

Undeveloped. Traditional economic systems are found only in undeveloped countries where there is little or no government involvement in either the production or the allocation of goods and services. In a traditional system, people produce what they can, and everything is consumed. Industrial and established countries have more complicated economic systems that may involve government regulations, competition, or free enterprise. Independent countries include all countries that are self-governed.

Communication from employees to an employer, or a manager, is referred to as __________ communication

Upward. The term "upward" is used because the message moves up the chain of command from employees to a manager. Horizontal communication is information exchanged between persons on the same job level, e.g., manager to manager, or salesperson to salesperson. Downward communication involves communications from management to subordinates. Vertical communication can be either upward or downward.

One way money functions in society is that it helps people communicate a product's

Value. Money is the most common medium of exchange in society. People exchange money for goods and services that they want. The price, or the amount of money a person is willing to pay for the product, communicates the product's value or worth. Income is money resource owners receive for supplying goods and services. Market is a customer or potential customer who has an unfulfilled desire and is financially able and willing to satisfy that desire. Attributes are a product's characteristics

If one person becomes verbally or physically abusive during a conflict, it is usually a good idea for the other person to

Walk away from the situation. Do not allow someone to get verbally or physically abusive. Sometimes walking away and cooling off is the best solution. If someone starts yelling and using inappropriate language, do not stoop to his/her level. It usually makes a bad situation worse and can result in physical violence. Admitting mistakes, listening for feedback, and seeking immediate resolution are not appropriate options when the other person initiates a physical confrontation

Which of the following questions might you ask when assessing your strengths and weaknesses:

What can I improve? When assessing your strengths and weaknesses, you might ask yourself, "What can I improve?" Asking the other three questions does not identify strengths and weaknesses. They just analyze strengths and weaknesses or try to discover ways to fix weaknesses.

Which of the following is a basic computer operating system that a business might use:

Windows. Microsoft Windows is one of the most popular operating systems. The operating system manages the hardware and software and makes the computer work. The system connects the software to the hardware and controls the overall operation of the computer. Excel, Oracle, and Adobe are software programs rather than operating systems

Which of the following types of computer software programs usually contain a thesaurus:

Word processing. Most word-processing software programs contain a thesaurus, which is a listing of words and their synonyms. This feature enables users to look up alternative words that have the same meaning. The thesaurus helps business employees to prepare accurate written documents and use words that exactly describe or explain the message. Communications programs allow computers to communicate with other computers. Graphics and design software is used to create artwork and drawings rather than text. Presentation software is used to create multimedia presentations

Which of the following would most likely appear in an e-mail message subject line:

Your Confirmation Number. The subject line of an e-mail message should advise the recipient about the nature of the message content. E-mail users often receive several messages a day. If the message subject line does not catch the reader's attention or does not relate to specific needs, the recipient might not read the message. E-mail subject lines should be short, informative, specific and, if appropriate, catchy. The option, "www.infotrack.com" is an Internet address. "Dear Tracy" is a salutation and is used to greet or address the recipient of the letter. "Letter123.doc" is a computer file from a word-processing program.

Which of the following is not a factor that determines how much investment risk you can handle:

Your income. Your income does not determine how much investment risk you can handle. Instead, your goals, your timeframe, and your personality are the determining factors. Those who have a low income may take on as much risk as they choose.