business
Suppose Chiquita's liabilities total $448,000 and its owners' equity totals $1,542,000. What do Chiquita's assets total
$1,108,000
A high-volume toy producer typically concentrated its quality control efforts on inspecting finished product and catching defective toys before they are shipped. As the new quality control manager, you believe that finding the root cause of defects is important. The factory produces $200,000 each day in toys and has a defect rate of 10%. If you cut that defect rate in half, you could save the factory _____ each day
$10,000
Government agencies such as the Small Business Administration provide information, advice, and even funding to US start-ups. This is an example of which factor contributing to high levels of entrepreneurship
Culture of entrepreneurship
Since 1975, the number of programs in entrepreneurship that colleges and universities offer has grown from 100 to over 500. This is an example of which factor contributing to high levels of entrepreneurship
Culture of entrepreneurship
Lisa and John own a partnership that provides rental equipment for parties and special occasions. Which of the following is true about the way Lisa and John would handle company profits
Distribute the profits according to the terms of the partnership agreement.
As a management trainee for a rental car company, you are unsure what your company policy is regarding giving gifts at the holidays to corporate customers and dealerships that your branch does business with. ______________ could answer questions about this ethical issue
An ethics officer
An electrical supply company allows its commercial customers to submit and track orders electronically. What type of online business model does this reflect
B2B procurement
The management team at T-Mobile is reviewing new subscriber growth this quarter compared to last quarter. They are engaging in which function of management?
Controlling
As Rachel Smith and her friends prepare to graduate from college, they are faced with numerous job offers that include starting salaries better than they could have imagined. Based on this information, what is the economy's most likely stage in the business cycle?
Expansion
Which of the following is HRM legislation aimed at protecting the overall rights of employees in a workplace
Family and Medical Leave Act (1993)
Which of the following is NOT an online marketing tactic?
Fee-based content
A hospital conducts a series of focus groups with patients who had recently had outpatient surgery in order to gauge their level of satisfaction with various aspects of their experience. Which step of the research process does this represent?
Gathering information
Hiring and training are areas within which functional area of management?
Human resources
When BMW built a production facility in the United States, it engaged in what type of international expansion?
International direct investment
How has international trade changed in the last several decades?
International trade has increased substantially.
Kathryn, a marketing researcher, is currently analyzing the information collected and determining what possible opportunities it has for management. At which stage of marketing research is she?
Interpreting information
Jean is about to purchase the franchise rights for a fitness facility. Her key reservation about pursuing a franchise as opposed to opening her own gym from scratch is
Jean must pay a franchise fee to get started, along with a certain percentage of profits
Judy, Betty, and Bob want to limit liability for their business debts, but they want to avoid double taxation. Which type of business ownership would you recommend
LLC
Three college graduates want to start an auto shop. Two of the partners will do most of the work, so they plan to share, receiving 40% of the profits each. The remaining partner will get 20% of the profits. Because working with other people's cars can create liabilities, they want to form of business that provides liability protection for all of them. Which form of business best fits their needs
LLC
Which of the following ownership structures holds a business owner personally responsible for all debts of the business?
Sole proprietorship
As Greece, Spain, and Portugal have struggled with recession, high unemployment, and soaring government debt, concerns have risen that their economic problems could spiral out of control and spread to the global economy. What international organization could most likely assist in this situation?
The International Monetary Fund
If the GDP has decreased in the last two years, which of the following is likely true
The economy is in a recession and the unemployment rate is increasing
Tim owns a McDonald's franchise that is having some troubles. Where is Tim most likely to go for advice and guidance
The franchisor
A local county commissioner is under fire for utilizing an out-of-county florist owned by her daughter to purchase flower arrangements for the county. This was likely seen as
a conflict of interest
According to economists, inflation is
a general rise in the level of prices
A technology system that provides managers and employees with the information they need to perform their jobs as effectively as possible is known as
a management information system (MIS)
Before Tyler was approved to own a State Farm Insurance Agency, he had to submit a business plan that included ____________. This section detailed Tyler's plans for securing customers and promoting his agency
a marketing plan
A market or industry with only one seller is referred to as
a monopoly
Exchange rates between countries are usually determined by
a number of factors including interest rates, inflation, and imports/exports for the countries
Your company just started offering a profit-sharing plan, which could increase your total compensation by as much as 25%—if the company does well. This form of compensation is classified as
an incentive
Keisha and Donnie decide to go into business together. They start by writing an agreement explaining the terms of the business they will both own, along with each of their responsibilities. Keisha and Donnie created
articles of partnership.
Looking at its _____________, Keurig can see their assets, liabilities, and net worth
balance sheet
Whirlpool purchases land in Tennessee to build a new factory. This is listed as ____________ on the statement of cash flows
cash flows from investing activities
When Betty Tran prepared a personal income statement, she subtracted her expenses from her income. The remainder or residual value is called
cash surplus
Nielsen randomly selects households to participate as panelists in an effort to understand consumers' shopping and media habits. Some "Nielsen families" have TV diaries to manually record their viewing habits, whereas others have meters that electronically gather viewing information. Which function of management information systems (MIS) does this illustrate
collect data
Your town's local hardware store has served the community for over 70 years. However, business has been way down ever since two big box hardware stores opened less than 10 minutes away. This local hardware store is looking to cut costs and increase marketing efforts as a response to changing _____ in the business environment.
competitive factors
A manager who has the ability to see the big picture of an organization and to understand how the various parts of the organization can fit together has _____ skills.
conceptual
Suppose Brazil, Argentina, Columbia, Peru, and Chile decide to form the South American Union to increase trade with one another. This would be an example of an
economic community
Glenn quit his 9-to-5 job to start his own construction business. Although he typically works 10-12 hours a day to get everything done, he doesn't mind and feels great doing it. This relates to the entrepreneurial characteristic of
energy
The United Kingdom sells industrial supplies to many nations around the world. The United Kingdom is engaging in
exporting.
When a very large product that is hard to move is produced, it's usually best to use a _____
fixed-position layout
Planning, organizing, leading/motivating, and controlling make up the
four basic functions in the management process.
A limit on the amount of a particular good that may be brought into a country during a given period of time is called an
import quota
As the owner of a landscaping business, you review how your company did last month. You mowed over 300 lawns and made $8,000. After paying your two employees, buying gas and supplies, and a new weed eater, your profit was $3,500. All of this information is found on the ________ .
income statement
The _____ factor affecting ethical behavior includes one's moral values and central attitudes
individual
A manager with _____ skills has the ability to deal effectively with people inside and outside the organization.
interpersonal
It is estimated that _______ of Facebook's daily users are mobile-only
just over 50%
In order for The Gift Market, a local specialty store, to purchase Christmas merchandise for selling in its store, it had to borrow money from a local bank. This debt owed to the bank is a
liability
The organizational function and set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders is
marketing
The United States, whose economy exhibits elements of both capitalism and socialism, has what is known as a _____ economy.
mixed
According to the U.S. Office of Management and Budget, how many of the major technological advances of the 20th century originated with individual inventors and small companies
more than half
All of the following are current assets except
office equipment
A training method where a trainee learns by working closely under the supervision of an experienced employee is called
on-the-job training.
The primary benefit of _______ is that it can be an inexpensive way to consistently train a large number of employees.
online training
Brenda Simpson is in charge of designing the production layout for a new Saturn plant and also in charge of supply chain management at the plant. In terms of her functional specialty, Brenda is a(n) _____ manager
operations
Vanessa's business plan provides details about her management team and personnel needs. This is most likely found in which section of her plan
operations plan
Coca-Cola makes Vitamin Water. While performing a SWOT analysis, they discover that sales of healthier functional beverages, such as Vitamin Water, are expected to grow much more quickly than the sales of cola drinks in the next five years. The fast growth of the functional beverage market would be classified as a(n) _____, and the slowing growth of the cola market would be classified as a _____.
opportunity, threat
At your new job, you met with a technician who taught you about using the company's phones and computer network. You are currently going through the _____ process
orientation
On your first day at a new job, you spent some time with the HR manager, learning about health insurance options and filling out information for payroll. You are currently going through the _____ process
orientation
Over the past 20 years, small businesses generated:
over half of net new jobs.
If total liabilities were subtracted from total assets, the residual value would be:
owner's equity
In some ownership structures, profits go straight to the owners and taxes are reported on each owner's individual tax return. This is called
pass-through taxation.
In a shoe manufacturing plant, all shoes undergo the same operations in the same sequence. The shoes flow from one workstation to the next. This is a(n) _____ layout.
product
Kellogg's has determined that adding instant oatmeal cups to its product line would garner significant market share. This reflects the _______ element of the marketing mix
product
The steps for producing Crayola Crayons are always as follows: mixing the batch of paraffin wax, mixing the pigments, molding the crayons, cooling, inspection, wrapping the crayons, and boxing the crayons. Crayola likely uses a _________ layout in their factory
product
The primary objective of the World Trade Organization is to
reduce barriers to trade worldwide
HP utilizes a just-in-time inventory system to manage its supply chain. The goal of this system is to
reduce inventory costs
Use of an ERP system will likely
reduce inventory levels
Fred Saunders receives $61,000 a year as a manager. This type of compensation is called
salary
A critical flaw in the process of generating alternatives is to go with the first alternative that meets the minimum threshold for solving the problem. This is referred to as
satisficing
The elements of the marketing mix are combined to
satisfy the target market
Rachelle owns a business with her brother, Ryan. Last year, their company earned a profit of $200,000. Rachelle paid taxes on her $100,000 share on her individual tax return because
she and her brother own a partnership that has pass-through taxation.
The recognition that business activities affect society, and the consideration of that impact when making business decisions is referred to as
social responsibility
Cheri is starting a medical consulting business that she'll own and operate by herself. She wants to ensure that making decisions about the business will be fast and easy. She should most likely choose a
sole proprietorship
Another name for an import duty is a
tariff
Erin has methodically worked her way from being a first-line manager at the factory to the position of chief operations officer. Along the way, her need to demonstrate _____ skills has decreased, and her need to demonstrate _____ skills has increased.
technical, conceptual
Walters Company, LLC, is a wholesale distributor of industrial packaging. A primary advantage that Walters enjoys as an LLC as opposed to a corporation is
the LLC avoids double taxation.
You invested $80,000 into a consulting partnership and have a 50% stake in the business. Your partner didn't invest anything, but brings management expertise to the business. After a year, the business racks up $100,000 in debts and must close down. Based on this information, what is the amount of your total personal loss
$180,000
Nicole is 50% owner in a manufacturing company that runs as an LLC. She invested $25,000 when the business started and has received no money from the business since then. The company just lost a $1,000,000 patent infringement lawsuit and will have to shut down. What is Nicole's personal loss on this business?
$25,000
You are the quality control manager at a shoe factory. The factory is currently throwing out $50,000 per day in defective shoes that are rejected before shipping. You find that many defects are originating at one particular station and decide to address those issues. As a result, you reduce the number of rejects by 50%, saving your company _____ per day in defective shoes
$25,000
You are 50% partner in a general partnership. The business has outstanding debts of $250,000 and is closing due to the death of your only partner. What is your personal liability
$250,000
During 2017, Luxury Jewelry Inc. had sales revenues of $1,500,000. This retailer also had expenses that totaled $800,000. What is the firm's profit or loss amount?
$700,000
You are 50% owner in a catering corporation. The business is closing down because it has $250,000 in unpaid business debts and just lost a $750,000 lawsuit. What is your personal liability
0%
during the period after World War II, the United States was the most productive country in the world for approximately _____ years
30
Small businesses hire approximately _____ of high-tech workers, such as scientists, engineers, and computer programmers
37%
Capitalism stems from the theories of which eighteenth-century Scottish economist?
Adam Smith
Which of the following would be considered a benefit of business in society?
Adding jobs to the community
Tienlon and her friend Lou would like to open a dog-walking business in Chicago. Lou will handle acquiring new clients, billing, and advertising, and Tienlon will walk the dogs. They agree Tienlon will earn 60% of the profits the business earns. They don't plan on needing any investment into the company and prefer to make all the decisions regarding the business themselves. They are concerned about liability in case one of the dogs happens to get injured while in their care. Which type of business ownership best suits Tienlon and Lou
LLC
_____ is considered a social networking site for professionals.
_______ accounting provides information for managers within a company to make informed decisions about financing, investing, marketing, and operating activities.
Managerial
Vanessa's business plan contains her strategy for pricing the items in her store. This is most likely found in which section of her plan
Marketing plan
Under Armour uses a number of different fabrics in their clothing designed to be moisture wicking, regulate body temperature, or provide support. This is an example of providing what benefit to society?
Offering valuable products
Blue Apron and HelloFresh ship recipes and fresh ingredients straight to customers' doors, allowing them to cook a meal without a visit to the grocery store. These companies are utilizing which business model?
Online-only retailing
At Victoria's Secret, managerial approval is required whenever an employee makes a purchase at the store using an employee discount. Which factor affecting ethical behavior is Victoria's Secret seeking to control
Opportunity
A local company has recently hired a new CEO. The new CEO decides that the company could perform much more efficiently if the shipping and receiving department was combined with the logistics and transportation department. Which management function is the new CEO performing?
Organizing
A bottled water manufacturer created a thinner bottle that uses 35% less plastic. What type of sustainability practice does this represent?
Product design improvements
Tarps Unlimited's logo is, "Whatever you need, we've got you covered," and it boasts that it carries more sizes, shapes, colors and styles of tarps than any other company. Which value provided by marketing does this illustrate
Right product
A retailer increases its hours of operation so that customers can shop for goods when it is convenient for them. What value does this represent
Right time
Which online marketing tactic involves maximizing the number of visitors to a particular website by ensuring that the site appears high on the list of results returned by Google or Bing
Search engine optimization
Garrett doesn't especially like pizza, but he goes to a pizza restaurant for lunch with his coworkers at least a few times a week because it's where they like to eat and he enjoys their company. Which influence on the consumer decision process does this reflect?
Social
