DECA pt 1
10. A business's market structure in an industry can be described as a A. means of gauging a business's financial success. B. method of categorizing goods and services. C. tool for measuring economic activity. D. way for suppliers and demanders to interact.
10. D Way for suppliers and demanders to interact. A business's market structure in an industry can be described as a way for suppliers and demanders to interact. This means that the market is structured in a way that makes it easy and efficient for a business to obtain and sell products. It is not a method of categorizing goods and services, a tool for measuring economic activity, or a means of gauging a business's financial success.
73. TRISM Co. sets an organizational goal to gain 100 new clients. To do so, each sales rep must contact five prospects per week. This is an example of A. generating new product ideas. B. designing an organizational structure. C. aligning personal goals with company goals. D. establishing performance standards.
73. D Establishing performance standards. Performance standards are mechanisms used to track, monitor, and measure success. When employees have performance standards that are aligned with organizational goals, it is much more likely that the company will accomplish those goals. Contacting five prospects per week is a performance standard that is in line with TRISM Co.'s organizational goals. This is not an example of aligning personal goals with company goals, designing an organizational structure, or generating new product ideas.
75. Charise is considering how much to charge for her small business's products. Charise is involved in A. a place decision. B. a product decision. C. pricing. D. promotion.
75. C Pricing. Pricing is the determination of an exchange price at which the buyer and seller perceive optimum value for a good or service. Promotion stimulates demand for products by informing customers of the products' availability. Place decision is the marketing element focusing on considerations in getting a selected product in the right place at the right time. Product decision refers to what goods, services, or ideas a business will offer its customers.
76. What external factor might a business consider before determining the selling price of its products? A. Company strategies C. Trade practices B. Desired profits D. Economic conditions
76. D Economic conditions. Most businesses consider the condition of the economy when determining the selling price of their goods and services. In times of economic growth, individuals often increase their spending; therefore, businesses may be able to charge more for their products. However, when the economy slows down, businesses reduce their prices to survive until the situation improves. Company strategies and desired profits are internal factors that affect selling price. Trade practices are business activities.
77. During what phase of the product life cycle is a business most likely to reduce its prices because copycat products have entered the marketplace? A. Trough B. Growth C. Maturity D. Peak
77. B Growth. One factor that businesses consider when they adjust a product's price is its life-cycle stage. During the product's growth stage, competitors are entering the market with copycat products. When consumers have more products from which to choose, the business is likely to reduce the product's price to remain competitive in the marketplace. During the maturity stage of the product's life cycle, businesses tend to focus on stabilizing the product's price to maintain a share of the market. Trough and peak are phases of the business cycle.
79. Due to lackluster sales, the Elba Corporation has decided to eliminate several of its product lines. Elba's executives hope that by focusing on fewer product lines, they will see more profit. The Elba Corporation is planning to adjust the _________ of its product mix. A. height B. length C. width D. depth
79. C Width. Elba is planning to adjust the width of its product mix by reducing the number of product lines that it offers. The length of a product mix is based on the number of different products or brands that the business offers. The depth of a product mix is based on variations in each product that the business offers. The height of a product mix is a fictitious term.
81. Ranking your company in relationship with your competitors helps you determine A. coming trends in your industry. B. methods for copying them. C. how to correct your weaknesses. D. how your company is unique.
81. D How your company is unique. Ranking your company in relationship to competitors helps you determine how your company is unique. This will lead you to your unique selling proposition (USP). You want your USP to be one of a kind—you don't want to copy competitors. Ranking your company will not help you foresee industry trends. It may help you figure out your company's weaknesses, but it will not necessarily tell you how to fix them.
82. Which of the following is a benefit of promotion: A. Increased customer loyalty B. Increased costs C. Decreased sales D. Decreased employment opportunities
82. A Increased customer loyalty. A benefit of promotional activities is often increased customer loyalty to certain products or businesses. Businesses spend millions of dollars on promotion to create specific company images. Customers identify with these images and see themselves in the roles or lifestyles shown in the promotions. Promotion typically costs the company money, but this is not one of its benefits. Promotion leads to increased sales and increased employment opportunities.
86. When Kaitlin walked into her local discount store, she wasn't sure exactly what she was going to buy; all she knew was that she needed shampoo. When Kaitlin noticed a sign advertising a new, chemical-free shampoo and conditioner set, she decided to try the brand and grabbed two sets. Kaitlin was influenced by a A. product demonstration. B. business-to-business promotion. C. point-of-sale promotion. D. free-standing insert.
86. C Point-of-sale promotion. A point-of-sale promotion is any display, sign, or other visible advertisement that is placed next to a product in a retail setting to draw customers' attention. Point-of-sale promotions are extremely powerful when customers are undecided about which product to purchase—or when they are simply browsing. The display described in the example is a point-of-sale promotion, not a free-standing insert, a product demonstration, or a business-to-business promotion. A free-standing insert is an advertising leaflet or brochure that is inserted into a magazine, newspaper, or other publication. A product demonstration involves showing customers how a product works, generally in a retail setting. Business-to-business promotion is any promotional effort directed from one business toward another.
100. Which of the following is a first step in lessening employee resistance to a major change in a business structure: A. Layoffs B. Training C. Communication D. Secrecy
100. C Communication. A key initial step in change management is communication, rather than being secretive about upcoming changes. While every employee is likely to respond to change a bit differently, the best way to alleviate employees' fears, concerns, and resistance in such a situation is to communicate with them early and often. If employees feel like they are being kept in the dark, they are likely to think the worst. Layoffs are likely to cause more concern and resistance versus less. Training could be helpful in managing change, but employees first need to know about upcoming changes that may require training.
11. Small businesses are important to the economy because they A. indicate future economic trends. B. create employment opportunities. C. have a large impact on the stock market. D. generate large amounts of revenue.
11. B Create employment opportunities. Most people are employed by small businesses. Small businesses are responsible for a large amount of job growth and employment in their communities. Small businesses do not always generate large amounts of revenue or impact the stock market, especially when compared to larger corporations. Finally, small businesses do not necessarily indicate future economic trends.
69. As Vanessa walked into the library, Jeremy and Salim were just closing a drawer on the librarian's desk. Later, Vanessa described the incident to the librarian—and included her own conclusion that the boys had probably stolen something. Vanessa's account is an example of which of the following: A. Input B. Logic C. Style D. Framing
69. D Framing. The way information is presented to you is called framing. Input is the actual information received from others—not the way it is presented. Style is the method for including others in the decision-making process. And, logic is a way to make sense of the facts—apart from personal or outside influence.
17. Julio is starting a new business, and he has formed relationships with several successful local business owners. Which of the following is the best way to leverage these relationships to help his own business succeed: A. Attending trade shows and conferences to make new connections B. Gaining inside marketing information C. Persistently asking those business owners to invest in his company D. Sharing those businesses' content on social media
17. D Sharing those businesses' content on social media. One way to leverage business relationships is to show other businesses how your business can provide value to them. Sharing content on social media helps show the businesses that Julio is willing to promote their content to others. In exchange, those businesses will be more likely to promote Julio's content in the future. Persistently asking those business owners to invest in his company might irritate the business owners and tarnish Julio's relationships with them. Attending trade shows and conferences to make new connections is a great way to build new relationships, but not necessarily to leverage existing relationships. Gaining inside marketing information from the other businesses is not necessarily ethical and would likely damage these business relationships in the long run.
18. What is necessary for goods and services to exist? A. Demographic changes B. Raw materials C. Entrepreneurial discovery D. Product standards
18. C Entrepreneurial discovery. A good or service begins with an idea. Entrepreneurial discovery is a process used to generate an idea and bring it to fruition. The entrepreneurial discovery process involves detecting and matching product and market opportunities with one another in a manner that satisfies the market and the business. Product standards are the criteria for determining a product's ability to meet specified guidelines or requirements. Raw materials are items in their natural state or condition. Demographic changes are often factors that spark ideas and lead to entrepreneurial discovery.
34. In which situation would a business pay a lower insurance premium: A. Negotiates a security deposit of $2,000 B. Pays the premium in monthly installments C. Purchases insurance from a private agent D. Increases the deductible from $500 to $1,000
34. D Increases the deductible from $500 to $1,000. The deductible is the amount of loss that a business is willing to accept before the insurance company pays the remainder. As a rule, the premium becomes smaller as the deductible becomes larger. For example, the premium costs for a business with a $1,000 deductible will be less than for a business with a $500 deductible because the first business is willing to pay for more of the loss. Paying the premium in monthly installments and purchasing the insurance from a private agent will not reduce the amount of the premium. Businesses do not pay a security deposit when they buy insurance.
37. Why would a company choose to use the survey of buyer intentions method of sales forecasting for an individual product? A. No outside surveys of buyer intentions are available to businesses. B. Consumers know in advance what they plan to buy. C. The method should be more accurate because it involves users of the product. D. There are no costs involved in this method.
37. C The method should be more accurate because it involves users of the product. The survey of buyer intentions is a qualitative method of sales forecasting which gathers information about consumers' plans to purchase. The data gathered should be more accurate than those gathered in other ways because the information is obtained from actual users of the product. Businesses that cannot do their own surveys can purchase the results of independent or government surveys. Costs of the method can be controlled, but they cannot be eliminated. A disadvantage of the method is that consumers may not respond to questionnaires, and even if they do, there is no guarantee that they will buy what they say they will.
38. What is the base amount used for vertical analysis of items on the income statement? A. Net sales C. Total liabilities and equity B. Total income D. Total assets
38. A Net sales. Vertical analysis is often used to show the relationship of each component to the total within a single financial statement. Net sales is the base amount used for vertical analysis of items on the income statement. Total assets is used for vertical analysis of asset amounts on the balance sheet. Total liabilities and equity is used for vertical analysis of liability or equity amounts on the balance sheet. Total income is used for vertical analysis of revenue and expense amounts on the balance sheet.
41. To do the most effective job of selecting a new employee, the business's first step should be to A. conduct a job analysis. B. conduct interviews. C. take applications. D. review resumes.
41. A Conduct a job analysis. A job analysis is an outline of general job requirements that are needed to define the skills necessary to perform a specific job. After completing the job analysis, a business would be ready to write a job description, seek applicants, review their background and work history contained in their resumes, and conduct job interviews with individuals who seem to be the best qualified for the job.
42. Select the situation in which the use of progressive discipline would be inappropriate. A. An employee accepts personal phone calls while at work. B. An employee takes extended breaks. C. An employee fails to meet their sales quota. D. An employee steals goods from the business.
42. D An employee steals goods from the business. Certain serious offenses, such as employee theft, may be exempt from progressive discipline. This is because a stronger penalty is warranted with the first infraction than is normally administered for other, less serious violations. Extended breaks and personal phone calls are less serious actions that can be corrected with progressive penalties. Failing to meet a sales quota is not a violation, per se. It may indicate that additional training is needed to help the salesperson meet company expectations.
43. Which of the following pieces of data gives a wealth of information about a customer: A. A sales invoice C. An expense report B. A trade journal D. A sales report
43. A A sales invoice. A single sales invoice (itemized statement of money owed for a good or service) can tell marketers who a customer is, what industry the customer is in, how much the customer has spent with the business this year, what method of payment the customer prefers, and much more. A trade journal gives general information about the industry. Expense reports and sales reports give data about the sales team—how much it is spending and how much it is selling.
45. Which of the following statements about market research is true: A. Research must be conducted and evaluated in an objective manner to obtain good results. B. Research must contain primary and secondary sources of data to be reliable. C. Research must be conducted using several different methods to obtain significant data. D. Research must prove the original hypothesis stated to be true and accurate.
45. A Research must be conducted and evaluated in an objective manner to obtain good results. Market research must be objective for companies to have accurate and unbiased data on which to base future decisions. Research may or may not include primary and secondary sources of data. While primary data are typically more up to date and relevant, secondary data can be accessed inexpensively and sometimes are sufficient to meet the needs of the research. It is not necessary for research to include both types of data. The goals of the research will determine the method(s) of research used. Research is performed to determine the validity of the hypothesis. As a result of the research, the hypothesis may be proved to be true or untrue.
49. Gabrielle used to own the only bike shop in her neighborhood, but another shop just opened up down the street. This competition is considered a A. strength. C. opportunity. B. weakness. D. threat.
49. D Threat. A threat is any unfavorable situation in the environment surrounding a business. If Gabrielle faces a competitor who may take away some of her customers, that's definitely an unfavorable situation. A weakness is any limitation or shortcoming a business has that can keep it from achieving its objectives. An opportunity is any favorable situation in the environment surrounding a business. A strength is any resource or capability a business has that can help it gain a competitive advantage in its industry. SOURCE: MP:010 Conduct SWOT analysis for use in the marketing planning process
5. When planning a new venture, an entrepreneur can use __________ to clarify their goals and vision
5. A A mission statement. A mission statement is a brief summary of what a business owner wants a business to be doing. When planning a new venture, entrepreneurs develop mission statements to help guide their goals and visions into reality. Using a mission statement helps entrepreneurs stay on track and focus on what they really want to do. Financial forecasting, SWOT analyses, and competitive analyses are all important tools for entrepreneurs, but they are not as directly related to clarifying goals and vision.
5. Which of the following is an activity that must take place within a channel of distribution: A. Preparing detailed marketing reports B. Promoting products C. Making payments to retailers D. Delivering products to customers' homes
5. B Promoting products. Every channel of distribution promotes products, even if it's as simple as a direct distributor of babysitting services putting up flyers in the local ice cream shop. Channel members generally do not need to make any payments to retailers, as retailers are usually the last intermediary in the channel. Not all products need to be delivered to customers' homes. Not all channels of distribution require detailed marketing reports; sometimes, providing marketing information can be as easy as just talking or sending a quick email.
52. What information about customers do brokerage companies need to obtain to develop an accurate client profile? A. Intelligence level B. Political preference C. Product knowledge D. Social background
52. C Product knowledge. To develop an accurate client profile, brokerage houses need to determine if their clients are well-informed about financial products or if they are new buyers. This is important because the way brokerage houses market their products will depend on the knowledge level of their clients. If clients are unfamiliar with stocks and bonds, brokerage houses will need to spend more time educating their clients in order to make a sale. On the other hand, knowledgeable clients who understand the products might need a different type of assistance. Information about a customer's social background, political preference, and intelligence level would be difficult to obtain and not necessarily helpful in developing a profile
54. Which of the following situations is most likely to expose a company to potential lawsuits: A. Company legal advisors translate a contract into another language for a client. B. The company publishes its own copyrighted material on the internet. C. Unprotected customer data are obtained and sold by outside hackers. D. The company's human resources department maintains extensive files about employees.
54. C Unprotected customer data are obtained and sold by outside hackers. When companies do not protect the data they are trusted with, they can be held liable for fraud committed against their clients by outside hackers. A company that produces copyrighted material has the legal right to publish that material on the internet. Translating a contract into another language for a client may be required to conduct business and is legal as long as no private information is shared with outsiders. Companies are legally required to maintain employee information and also maintain files about performance to assist with promotions or firing decisions
54. Which of the following is an example of how a business or industry has a unique relationship with its environment: A. Social and cultural attitudes change over time. B. New technology causes new laws to be enacted. C. An economy in prosperity will eventually experience recession. D. Demand for skilled nursing care rises as the population ages.
54. D Demand for skilled nursing care rises as the population ages. The impact of demographics (the age of the population) on a specific industry (health care) shows that businesses have unique relationships with their environments. The aging of the population affects other industries, but perhaps not as directly as it does health care. An economy phasing through the business cycle and a shift in social/cultural attitudes are examples of how environmental factors are dynamic. New technology causing new laws to be enacted is an example of how environmental factors are interrelated.
55. Von is a very thorough record keeper. He always carefully files his company's bills, receipts, and cancelled checks because he knows that the company has a responsibility to prove the expenses it lists on its tax return. Von's company bears a A. burden of proof. C. record burden. B. responsibility to prove. D. tax return proof.
55. A Burden of proof. It's important to keep good records because you are responsible for proving the expenses you deduct on your tax return. This includes things like bills, receipts, and cancelled checks. Von carefully files these items so that they can be easily found. Responsibility to prove, record burden, and tax return proof are not commonly used terms.
55. Which of the following is a specification that a business might establish for selecting spreadsheet software programs: A. Regularly organize customer information B. Graphically display financial information C. Digitally produce marketing data D. Electronically communicate data
55. B Graphically display financial information. Businesses establish specifications for selecting spreadsheet software to obtain the type of programs that will meet their needs. This is important because not all spreadsheet software programs have the same capabilities, such as graphically displaying financial information. Some businesses may need only simple graphics in the form of graphs or charts, while others need sophisticated graphics that will display financial information in a variety of visual formats. Communications software is used to electronically communicate data. Database software is used to regularly organize customer information. Word processing and graphic design programs are used to produce marketing data.
59. The ABC Corporation identifies all the risks that threaten the company. Then, it decides which risks it wants to focus on and shares this information with its stakeholders. The company is practicing A. competitive risk assessment. B. enterprise risk management. C. corporate risk organization. D. environmental risk planning.
59. B Enterprise risk management. Enterprise risk management involves a corporation identifying all the risks that threaten the company, deciding which risks to focus on, and sharing that information with stakeholders. This is not known as corporate risk organization, competitive risk assessment, or environmental risk planning
60. Why is it important for businesses to identify potential safety issues in the workplace? A. To establish security B. To protect employees C. To eliminate accidents D. To avoid violence
60. B To protect employees. Businesses have a responsibility to provide employees with safe working conditions. To do this, businesses need to identify potential safety issues and take steps to correct problems if necessary. Businesses are often able to protect employees from injury by identifying problem areas and making them safe. It is not possible to completely eliminate accidents. Identifying potential safety issues will not avoid violence or establish security.
61. Which of the following is an example of a business appropriately using its budget to control costs: A. The Bingham Company hired more employees after the value of its stock dropped. B. TQR, Inc. noted that its sales were 6% higher than expected during the first quarter. C. When sales decreased, the Martin Company reduced its trade show efforts by 5%. D. VMX Manufacturing purchased additional equipment to increase its production levels.
61. C When sales decreased, the Martin Company reduced its trade show efforts by 5%. A budget is an estimation of income and expenses. Businesses use budgets to control their money. When a company has less income flowing into the business than anticipated, it often needs to adjust the budget by reducing expenses. One way to reduce expenses is by reducing the amount of money the business spends on trade shows. Generally, a business that experiences substantial drops in its stock value has less money flowing into the business. Hiring more employees when less income is available to pay them is not an appropriate way to control business costs. Simply noting an increase in sales is not controlling the budget. There is not enough information provided to determine if the VMX Manufacturing has the income available to purchase additional equipment; therefore, it is not possible to know if the company is controlling its expenses wisely.
64. When making decisions about digital asset security, companies should prioritize their assets based on A. the potential impact on their reputation. B. their specific industry or sector. C. the level of risk for customer information. D. their ability to afford ransoms to attackers.
64. B Their specific industry or sector. Each company has to evaluate and prioritize their digital assets according to the specific circumstances of their business. In the health care industry, customer information might be the most important. In a financial services company, fraudulent accounts or transactions might be the most important risks. Potential impact on reputation is a serious risk to assess, but it may not be as important to a company without a public brand. Sometimes hackers or cybercriminals do ask for ransoms, some of which can be very expensive, but this does not apply to all cyber attacks.
66. An entrepreneur in the early stages of their venture should avoid hiring full-time employees unless they are needed to perform business activities that A. create revenue. B. save them time. C. require expert advice. D. save money.
66. A Create revenue. Entrepreneurs should avoid hiring employees unless they are needed for business activities that will help produce revenue such as marketing and production activities. Since the early stages of a venture produce little revenue, there is no money to save and no money to pay employees with. It's better for an entrepreneur to pay an expert or business coach for advice instead of hiring one as an employee. In the early stages of a venture, it's more advisable for an entrepreneur to work long hours than to hire an employee that they probably cannot afford.
66. A business is most likely to set sales-oriented pricing objectives when its focus is to A. survive during short-term financial problems. B. improve its cash flow. C. earn a return on investment. D. be more competitive in the marketplace
66. D Be more competitive in the marketplace. The purpose of sales-oriented pricing objectives is to increase the total amount of income that a business generates from sales. To do this, a business may charge lower prices to increase sales volume, or it may charge higher prices to increase the dollar value of its sales. Businesses often set sales-oriented pricing objectives when they want to be more competitive in the marketplace. Businesses set profit-oriented pricing objectives when they want to improve their cash flow, earn a return on investment, or survive when they experience financial problems. SOURCE: PI:002 Explain factors affecting pricing decisions
69. Which of the following is a reason why innovation is important: A. Innovation leads to creativity. B. Innovation ensures a business will succeed. C. Innovation helps the economy. D. Innovation eliminates competition.
69. C Innovation helps the economy. Innovation is important because it helps the economy. Innovation creates new products and services that, in turn, create new jobs. Innovation can help a business succeed, but it does not guarantee success. In fact, innovation carries a risk of failure. Innovation does not eliminate competition, but it does give an innovative company a competitive advantage. Innovation doesn't necessarily lead to creativity; instead, creativity is more likely to lead to innovation. Innovation involves the process of putting creative ideas into action
88. A snack-food company donates energy bars to runners who are participating in a race to raise money for cancer research. The business is engaging in a(n) A. selling activity to support its image. B. public relations activity for a charitable cause. C. advertising campaign to improve investor relations. D. media blitz to exhibit social responsibility.
88. B Public relations activity for a charitable cause. The purpose of the public relations function is to establish goodwill between the business and its various publics. One way for a business to build goodwill with the community is by participating in charitable events. This might involve providing financial support, goods (e.g., energy bars), or volunteers for the event. A media blitz is an intense effort to communicate information through all possible channels. There is not enough information provided to determine if event organizers used media blitz to publicize the race. The snack-food company is not engaging in a selling activity or an advertising campaign. These activities are not part of the public relations business function.
91. Which of the following is a potential risk of implementing enterprise risk management (ERM) software: A. Less efficient use of resources C. Standardization of reporting B. More emphasis on risk D. Loss of data during the transfer
91. D Loss of data during the transfer. When a company switches to an ERM software system, there is the potential for data to be lost during the transfer/conversion process. However, the increased emphasis on risk and standardization of reporting are benefits of implementing ERM software rather than potential risks. ERM software generally increases efficiency of resource use rather than decreasing it.
94. Just as you can determine an employee's capabilities by reading their resume, you can determine a company's capabilities by reading its A. business plan. C. mission statement. B. balance sheet. D. "about us" web page.
94. A Business plan. A company's business plan shows how the business works now and how it is intended to work in the future, which can show you the current and forecasted capabilities of a company. A balance sheet is a financial statement that captures the financial condition of a company at a particular moment. A mission statement is a brief summary of what a business owner wants a business to be doing but does not touch on actual performance. The "about us" page on a company's website normally describes the company history and pertinent owners/managers/employees.
95. If a business sells 550,000 widgets and has 220,000 widgets in inventory, how does its inventory turnover rate compare to the industry average of four? A. 1.5 more B. 1.5 less C. 2.5 more D. 2.5 less
95. B 1.5 less. Calculate the inventory turnover rate by dividing the number of widgets sold by the number in stock (550,000 / 220,000 = 2.5). The 2.5 figure indicates that the business turns its inventory two-and-a-half times a year. If the industry average is four times a year, the business's turnover rate is 1.5 less than the average (4.0 - 2.5 = 1.5). A business whose inventory turnover rate is lower than the industry average probably would take steps to increase its turnover rate.
96. Where in a business plan can you find out how the business intends to handle public relations? A. Market analysis B. Strategy and implementation C. Company description D. Management plan
96. B Strategy and implementation. The strategy and implementation section shows how the business intends to do what it has planned. It shows, for example, how the company expects to carry out its marketing plan, reach (and sell to) its customers, and handle public relations. The company description accurately portrays the new company or venture, provides a history of the company, and shows the current business structure, among other things. The management plan describes the company's managers, whose capabilities (and track record) are often considered to be the single most important indicator of success. In the market analysis, you see how the market has responded (or is likely to respond) to the new company or product/venture.
97. If a business wants to determine how well it is performing in relation to its competitors, it can often obtain specific and relevant data from A. industry websites. C. online law libraries. B. general news magazines. D. internal surveys.
97. A Industry websites. To effectively compete in the marketplace, businesses need to know how they are doing in relation to other businesses in the industry. Comparing different types of data will help a business determine if it needs to implement changes or if implemented changes have improved its standing in the industry. Industry-related websites often house extensive libraries, white papers, surveys, and comprehensive data that provide information about industry averages that can be used for comparison purposes. Law libraries store information related to legal issues and the law profession. General news magazines and internal surveys are unlikely to provide the industry information the business needs to evaluate its performance within the industry.
98. Which component of the business plan requires considerable time and external research? A. Strategy and implementation B. Market analysis C. Executive summary D. Appendices
98. B Market analysis. The market analysis requires considerable time and external research. The executive summary, strategy and implementation section, and appendices may require some time to put together, but they do not necessarily require external research.
99. Sam has worked for the same employer for 15 years. During that time, Sam has learned a great deal and developed expertise that enables him to make a significant positive impact on business operations and outcomes. Sam's expertise is a form of A. knowledge. B. training. C. recruiting. D. innovation.
99. A Knowledge. Knowledge is an intangible combination of human experiences, insights, and intuitions that provide structure for interpreting and reacting to the world around you. Knowledge is the result of long-term learning that has been retained and then applied to practical situations. Innovation is the creation of new or more effective products, processes, services, technologies, or ideas. Training involves teaching or developing a specific skill. While Sam's expertise may be the result of training, his expertise itself is a form of knowledge. Recruiting entails seeking out and attracting qualified potential employees.
99. Which of the following statements accurately describes the relationship among innovation, learning, and change: A. Internal and external changes trigger innovation, leading to new learning. B. Innovation triggers internal and external changes, leading to new learning. C. New learning triggers innovation, leading to internal and external changes. D. Internal and external changes trigger new learning, leading to innovation.
99. D Internal and external changes trigger new learning, leading to innovation. Both internal and external changes trigger the need for companies to learn and adapt to new situations and trends, resulting in innovation. The other alternatives incorrectly describe the relationship among innovation, learning, and change.
Collin is an introvert, so his supervisor specifically calls on him to ask for his input in meetings. His ideas are always thoughtful and reflective. Collin's supervisor is A. leveraging his personality type. C. asking him to demonstrate self-control. B. challenging him to leave his comfort zone. D. taking his feedback into account.
A Leveraging his personality type. Successful business leaders understand and acknowledge employees' personality differences. These personality traits can be leveraged to enhance business situations. For example, Collin is an introvert, which indicates that he thinks things through and reflects before speaking. It also indicates that he might be unlikely to speak up in a meeting. By specifically giving Collin an opportunity to share his ideas, Collin's supervisor is leveraging his personality type to generate success. Collin's supervisor is not necessarily challenging him to leave his comfort zone, asking him to demonstrate self-control, or taking his feedback into account.
A coffee producer is considering eliminating one of its channel members, a wholesaler, with which it has worked successfully for 25 years. The coffee producer blames the wholesaler firm for its poor sales in recent months when a new product was introduced and failed. Which of the following should the coffee company do first: A. Begin searching for a new wholesaler C. Start its own horizontal distribution system B. Assist the wholesaler in any way possible D. Terminate its contract with the wholesaler
Assist the wholesaler in any way possible. Companies should always try to maintain stable and helpful relationships with their channel members, and dismissal of a channel member should be a last resort. Since the producer and wholesaler have had a successful relationship for years, the producer should work with that channel member first before pursuing the other alternatives. The coffee producer should only terminate the contract as a last resort. Setting up a horizontal distribution system would not get the coffee products to consumers
When government sets safety standards for the workplace, it is attempting to A. control business. C. prohibit excess standards. B. minimize risks to employees. D. modernize working environments.
B Minimize risks to employees. Government's primary concern is the safety of the worker in the workplace. It would be next to impossible to set a safety rule to cover all possible events, but minimizing risks for the worker is a possibility. It is not government's intent to control businesses or business practices. Setting safety standards does not imply that government prohibits excess standards. There is no maximum number of standards that could be set. In setting safety standards, government does not address updating or modernizing work environments. The goal is to make the workplace safe, not more pleasing or attractive
Which of the following is a result of an achievement orientation: A. Less risk-taking C. Continuous improvement B. Lower standards D. Automatic raises and promotions
C Continuous improvement. Continuous improvement is a result of an achievement orientation. This may refer to products, procedures, ideas, or the work environment in general. Achievement orientation results in higher standards, not lower standards. Achievement orientation also results in moderate risk-taking. Having an achievement orientation does not mean you will automatically receive raises or promotions.
A small-business owner who uses the brainstorming technique to find solutions to difficult situations is trying to A. plan contract negotiations. C. creatively solve problems. B. assess long-term budgets. D. intentionally prevent conflict.
C Creatively solve problems. Creative problem-solving is the process of finding solutions to issues or obstacles (problems) by generating unique ideas or approaches. Budgets, contract negotiations, and conflict are issues that might require a business owner to use creative problem-solving.
Which of the following is an oligopoly : A. Foodservice industry C. Oil industry B. Apparel industry D. Computer industry
C Oil industry. An oligopoly is a market structure in which there are relatively few sellers, and industry leaders usually determine prices. Because oil is a scarce natural resource and is complex to process into usable products, there are fewer businesses in the oil industry than other types of industries such as the apparel, foodservice, and computer businesses.
The type of capital resources that a startup business needs to begin operating usually depends on the A. vendors' lead time. C. owner's preferences. B. location. D. industry
D Industry. Capital resources are assets, or things of value, that a firm uses on an ongoing basis to meet its objectives. The capital resources that a business needs to get up and running depend on the type of products that the business sells. For example, a snow-ski resort needs ski-lift equipment, while a landscape business needs mowing equipment, mulch, and shrubs to efficiently operate. Location, owner's preferences, and suppliers' lead time are not always primary considerations when selecting capital resources
. Which of the following is an example of a potential cost: A. The cost of capital investment C. The cost of utilities B. The cost of installation D. The cost of project failure
D The cost of project failure. Potential costs are the hidden costs that managers must think through when conducting a cost-benefit analysis—the costs of what could happen such as project failure. Installation and capital investment are one-time costs. Utilities are a recurring cost.
A potential benefit to new business owners of establishing business systems and procedures is A. the elimination of employee errors. C. less reliance on networking. B. improved utility services. D. the efficient use of resources.
D The efficient use of resources. So they can provide a consistent, orderly way of conducting business activities, companies use different types of business systems, such as computer and technology, order processing, operating, and financial systems. By organizing business activities, employees have guidelines and procedures to help them conduct their duties. Well-organized business systems can maximize a company's resource efficiency. Efficient business systems do not necessarily improve utility services, nor do they lessen the reliance on networking. Efficient business systems may reduce the incidence of employee errors, but they cannot eliminate them.
To maximize the efficiency of complex business operations, business owners must A. establish standards after conducting a SWOT analysis. B. work with financial advisors to reduce tax liability. C. rely on economic indicators to develop business strategies. D. understand the interdependence of all business functions.
D Understand the interdependence of all business functions. Business operations are all of the functions that keep a business running. Inventory management, financial activities (e.g., accounts receivable), advertising, sales, human resources management, and distribution are important functions that keep a business going. Each function involves different activities that depend on one another to meet the company's overall objectives—the business functions are interdependent. So that the company maximizes efficiency, the business owner needs to have a basic understanding about how the functions relate to one another. Reducing tax liability and establishing standards are activities that can help maximize the efficiency of complex business operations, but the owner must understand how the activities affect one another to make effective business decisions. Economic indicators are one of many factors that owners must consider when developing business strategies.
Which of the following is most likely a violation of human resources regulations: A. Paula has to wait 60 days to receive benefits from her new job. B. Riley is fired for arriving late to her shift one time. C. Luca is sent home early so his employer does not have to pay him overtime. D. Devon only interviews male candidates for a managerial position.
D. Devon only interviews male candidates for a managerial position.