GENBA 110 - Business Foundations
Six Sigma means attaining what percentage of perfection?
99.9997%
What can be a good or a service. Each sold at a price?
A product
What is a detailed written description of a new security, including information about the issuing company and its top management?
A prospectus
___________ makes sure that performance meets goals.
Control
True or False? Fixing damage from a crisis would be considered a contingency plan.
False
_________ structures mean groups of people perform similar activities (such as manufacturing, marketing and sales, admin operations, and so on).
Functional
_________________ groups jobs that perform similar activities, such as finance, manufacturing, marketing, and human resources.
Functional departmentalization
How does using GAAP standards help organization and community?
GAAP enables comparative analysis (Uniform presentation ensures that data from different periods of time can be compared. It also allows comparisons between companies.) GAAP ensures uniformity of financial data (GAAP lays down the guidelines to ensure that the financial data is accurate, verifiable, and presented in a uniform manner.)
Which function of management is associated with the following question? "How do I motivate people to work to achieve important goals?"
Leading
____________, or building relationships and sharing information with colleagues, is vital for any businessperson.
Networking
________________ involves first asking what major goals need to be achieved, then asking how they can be achieved.
Planning
___________ stockholders have no voting rights but get first claim on dividends and assets.
Preferred
__________ run their own operation and have total control of a specific work assignment. Their membership is likely to be composed of people from different functional areas.
Project teams
____________ are similar to task forces, but they run their operation and have total control of a specific work assignment.
Project teams
_________ bonds are bonds that mature at different dates.
Serial
What is the ability to perform a specific job?
Technical skills
True or False? Microeconomics is the study of small economic units.
True
True or False? Setting an emergency response plan would be considered a contingency plan.
True
When work is standardized, a _____________span of control is appropriate.
broad/wide
An ________ reward is the payoff a person receives from others for performing a particular task.
extrinsic
Bonds sold by the U.S. Treasury are __________ bonds.
government
Market timing strategy is one which has _________ risk.
high
What is the ability to interact well with people?
human skills
When price increases, the quantity supplied _____________.
increases
Ratio analysis can be used to analyze a firm's performance compared to ________________.
it's objectives
Marketing can be defined as a _____________________ exchange.
mutually satisfying
The features of _________ span of control include limited people reporting to a manager, being typical in centralized organizations, and being appropriate when the interaction between superiors and subordinates is frequent.
narrow
Expansion in new markets, co-branding, and complacent competitors are ___________________ for any organization.
opportunities
External recruitment is when an organization makes _________ aware of job openings.
outsiders
Which of following economies is currently dominant and likely to provide the majority of jobs?
service economy
Which control process step answers the question: "What changes are necessary to obtain desirable outcomes?"
take corrective action if needed
How often are short-term securities auctioned?
weekly
Changing employees' minds and performance is related to the __________ area of organizational change.
"people"
According to the SBA, the average start-up cost for small businesses is ____________.
$30,000
Select the benefits of capitalism. -Help for the less fortunate -More jobs and higher incomes -Income disparities -Inability to sustain competition -More goods and services
-Help for the less fortunate -More jobs and higher incomes -More goods and services
Following the plans of middle and top managers, supervisory managers do operational planning, determining how to accomplish specific tasks with existing resources within the next ________________.
1 week to 1 year period
Strategic planning involves determining the organization's long-term goals for the next ______________.
1-5 years
Scenarios for contingency planning are anticipated for what time period?
2-5 years into the future
Dr. Badger's Pet Store is applying for a loan from the bank. The company has liabilities of $670,000 and owners' equity of $250,000. What is the debt to owners' equity ratio for Dr. Badger's Pet Store?
2.68 percent
When considering a house purchase as an investment opportunity, you would want to spend no more than ___________% of your income AND have a minimum of __________% down payment to avoid Private Mortgage Insurance (PMI).
28%, 20%
The attainment of Six Sigma means there are no more than ______ defects per _________ products or procedures.
3.4 million
About ________ of new small businesses begin in the home, are financed on less than ______________, and start with leased or used equipment.
53% $10,000
Middle managers do tactical planning, determining what contributions their work units can make with their existing resources during the next _______________.
6 months to 2 years
___________ is a type of time schedule in a bar chart format, which is useful for graphically indicating deadlines.
A Gantt chart
What happens when a business charges less than the equilibrium price?
A business accepts a lower price per product unit
What happens when a business charges more than the current equilibrium price?
A business might not earn as much revenue because they may not sell as many units.
___________________ must be prepared for the first year of the business.
A cash flow statement of cast (financial projections)
____________ is the desired performance level for a given goal.
A control standard
_____________ is a type of free market in which there is only one seller and no competition.
A monopoly
_______________ is a group of employees responsible for a process or segment that delivers a product to an internal or external customer. The defining characteristic is that they are deigned to give employees a feeling of "ownership" of a whole job.
A self-directed work team (SDWT)
_______________ is a group of employees responsible for an entire work process or segment that delivers a product to an internal or external customer.
A self-directed work team (SDWT)
_____________ is a specific group of consumers' needs and wants on which a company focuses its marketing efforts.
A target market
____________ means managers must report and justify their work results to managers above them.
Accountability
________ ratios determine how well the firm manages its assets to generate revenue.
Activity
The Scottish economist _________ envisioned capitalism as a system for creating wealth and improving the lives of everyone in society.
Adam Smith
____________ law constitutes the rules made by administrative agencies at all levels of government.
Administrative
A cash budget can assist in determining which of the following? Excess cash in invest in marketable securities All of the above. The money flowing in and the money flowing out of an organization. Loans needed to maintain a minimum cash balance
All of the above
_________ is an employee who personally works with an experienced one so as to better learn and master their craft.
An apprentice employee
_____________ is a component of business plans that appears at the beginning of the final written business plan.
An executive summary
____________ works inside an existing organization, sees an opportunity, and takes steps to turn it into a profitable reality.
An intrapreneur
The defining characteristic of __________ is the extent to which it is empowered or given authority to make and implement work decisions. Thus, they are designed to give employees a feeling of "ownership" of a whole job.
An self-directed work team (SDWT)
Why do employers offer these employer-sponsored retirement plans?
As a benefit and/or reward to employees
__________ is the legitimacy an organization confers on managers to make decisions, give orders, and utilize resources.
Authority
___________ leadership is effective when employees need direction or are completely new to a job.
Autocratic
_______________ leadership is best suited to hierarchical organizations with a militaristic orientation such as the army or some branches of law enforcement.
Autocratic
What financial institution has magnetic computer tap technology that transfers bank deposits?
Automated Clearing House (ACH)
What financial institution provides 24-hour banking and accepts deposits and dispense cash?
Automated Teller Machine (ATM)
Identify the requirements of the Securities and Exchange Commission (SEC) for sellers of stocks and bonds.
Avoid taking advantage of inside information Provide investors with full disclosure of financial facts Register with the SEC and provide prospectuses and reports
_________ is possible only when two parties are interested in each other's goods and services. This makes trade limited. Money eliminates this need and serves as a universal ______________.
Barter medium of exchange
Which of the following is not an organization from which Randy should consider seeking advice and resources? Better Business Bureau The Active Corps of Executives (ACE) Small Business Investment Company (SBIC) The Service Corps of Retired Executives (SCORE) Small Business Administration (SBA)
Better Business Bureau
_________ involves recording of financial transactions of the organization.
Bookkeeping
___________ refers to the buildings and tools used to produce goods and services.
Capital
____________ forecasts are based on anticipated sales and anticipated expenses.
Cash flow
________________ authority includes the important decisions made by higher-level managers. Businesses tend to be more _______________ when the decisions to be made are risky, and where low-level managers are not highly skilled in decision making.
Centralized centralized
What type of bankruptcy allows companies to reorganize and continue business operations while paying creditors a portion of their debts?
Chapter 11 Bankruptcy
What type of bankruptcy allows individuals and small businesses with debts below a certain amount to repay their creditors over a period of time under a court-approved plan?
Chapter 13 Bankruptcy
What type of bankruptcy forces debtors to turn over assets to a trustee for division among creditors?
Chapter 7 Bankruptcy
How can banks make profits?
Charging fees on credit cards Sale of insurance policies
___________ can be used to negotiate matters such as employee compensation and working conditions.
Collective bargaining
_________ law involves laws made by judges based on precedents.
Common
Communism was designed to accomplish what?
Communism was designed to prevent the accumulation of wealth for a small percentage of people while meeting all citizen's needs. Under communism, the government owns all property, and citizens work for the government. The government controls the allocation of resources to prevent the accumulation of wealth for a small number of individuals.
What are used to design products, structures, civil engineering drawings, and maps?
Computer-aided design (CAD)
What is the ability to think analytically?
Conceptual skills
What are the steps of the marketing process?
Conduct research to determine opportunities and challenges Identify the target market Determine the strategies for the marketing mix
____________ laws are concerned with protecting buyers' rights.
Consumer-protection
Which function of management is associated with the following question? "How do I monitor performance, compare it with goals, and take corrective action?"
Controlling
_____________ are bonds that can be converted into the issuing corporation's common stock.
Convertible
_____________ are issued by businesses as a source of long-term funding and consist of secured and unsecured bonds.
Corporate bonds
____________ means the team is composed of workers that have different specialties and expertise to contribute.
Cross-functional
__________ is the integrated, accepted pattern of human behavior, including thought, speech, beliefs, actions, and artifacts.
Culture
What factors influence consumer buying behavior?
Culture Social class
Loyalty cards are a good example of methods during the _______________________.
Customer Relationship Era
________________ authority includes decisions made by middle-level and supervisory-level managers. It is characteristic of organizations that operate in complex, unpredictable environments, and requires that lower-level managers have strong decision-making skills.
Decentralized
_________________ consists of information associated with age, gender, income, social class, ethnicity, and education level about the target audience.
Demographic data
What is the study of the production, distribution, and consumption of scarce goods and services.
Economics
________ studies how society chooses to transform resources into the goods and services that people want and need.
Economics
___________ is about the ends, and ___________ is about the means.
Effectiveness efficiency
What is concerned with the firm's entire enterprise? Today most of these applications are offered by software vendors, which have the applications on their own computer systems and allow companies to access them via the internet.
Enterprise Resource Planning (ERP)
___________ are business owners who see a new opportunity for a product or service and start a firm.
Entrepreneurs
___________ is the process of taking risks to try to create a new business.
Entrepreneurship
_____________ refers to the process of taking risks to create a new enterprise.
Entrepreneurship
____________ consist(s) of funds acquired from wealthy individuals and institutions that invest in promising startups or emerging companies in return for their giving up some ownership.
Equity financing
What is counted as gross domestic product (GDP)?
Everything produced within US borders, regardless of whether the company has domestic or foreign owners. Goods and services produced by governments and nonprofits are also counted in GDP.
The deposits of commercial banks are protected by the ___________.
FDIC
__________ layout is the physical arrangement of equipment, offices, rooms, people, and other resources within an organization for producing goods or services.
Facility
Sarbanes-Oxley act neglects to instill any stipulations for the destruction of key audit financial documents.
False
True or False? Identifying a risk threatening a business would be considered a contingency plan.
False
True or False? Potential entrepreneurs should AVOID home-based businesses as they are often NOT respected NOR taken seriously in industry.
False
True or False? Road construction would be an example of monetary policy as part of the government's role in business cycle.
False
True or False? An enterprise zone is a facility that offers small businesses low-cost offices with basic services.
False An incubator is a facility that offers small businesses low-cost offices with basic services, such as secretarial and accounting services and legal advice.
True or False? Goods and services produced by illegal or "underground" enterprises are counted in GDP.
False Goods and services produced by illegal or "underground" enterprises are not counted in GDP. Activities such as cash-only sales are not counted either.
True or False? Small businesses are found in most sectors of the US economy.
False Small businesses are found in ALL sectors of the US economy.
True or False? The central bank of the United States is the Treasury Department.
False The Federal Reserve System, called the Fed, is the central bank of the United States and controls the U.S. money supply.
What financial institution insures individual bank accounts?
Federal Deposit Insurance Company (FDIC)
What financial institution oversees the American financial system and financial institutions?
Federal Reserve
`___________ helps managers to identify deviations from the financial plan so that corrective action can be taken.
Financial control
___________ are institutions that produce goods which have value for customers, clients, partners, and society.
Firms
______________ layout is one in which materials, equipment, and labor transported to one location.
Fixed-position
_____________ leadership is often successful with businesses that use highly skilled professionals who can operate autonomously, such as consulting.
Free-rein
Name the five stages of organizational decline (Collin's model).
Hubris born of success Undisciplined pursuit of more Denial of risk and peril Grasping for salvation Capitulation to irrelevance or death
___________ refers to the effort, both mental and physical, required to produce goods and services.
Human resources
Identify the primary components of marketing strategy.
Identifying the target market among market segments Creating the right marketing mix to reach a target market Dealing with forces in the external marketing environment
What effect has robotics had on manufacturing?
Improved efficiency
The financial information for a company is reported in key financial statements. Identify those statements.
Income statement Balance sheet
______________ is one of the economic forces that can largely determine the timing of an organization's marketing strategy.
Inflation
Name the steps of a job analysis.
Interview job occupants Observe the flow of work Learn how results are accomplished
How are mutual funds able to diversify investments?
Investment decisions are made by professionals working in big investment companies Mutual funds balance risk
Which of the following is true about accounting? It maximizes expenses. It's not run by a federal agency. It allows informed decision making. It's rarely ever done correctly. It is a simple process.
It allows informed decision making.
What are some of the benefits of technological advances such as CAD-CAM?
It allows products to be designed and then input into an automated manufacturing system that makes products. It allows products to be designed and then input into an automated manufacturing system that makes products. The product can be drawn in three dimensions and then rotated on the computer screen, so that the designer can see all sides. It helps architects design buildings and workspaces and helps engineers design cars, planes, electronic devices, roadways, bridges, and subdivisions.
Which group represents a product mix? Central High School's footballs, helmets, and cleats Buybuy Baby's clothes, baby bottles, high chairs P&G's Tide, Cheer, and Gain laundry detergents Kraft's Maxwell House, Oscar Mayer, and Kool-Aid Crest Whitestrips teeth whitener, toothpaste, and mouthwash
Kraft's Maxwell House, Oscar Mayer, and Kool-Aid
_________ manufacturing is the production of products by eliminating unnecessary steps and using the fewest resources, as well as continually striving for improvement.
Lean
__________ managers are directly involved in their organization's goals, and can focus on their area of expertise in the operation of the business.
Line
What are the possible ways to take corrective action?
Make no changes Celebrate success Correct negative performance by examining the reasons why, and take appropriate action
_________ is a process through which products and services are rendered with a selling concept for the consumer.
Marketing
It wasn't until about the 1950s, during the ____________________ that businesses started focusing on making products based on customer needs, quality product AND products that were profitable.
Marketing Concept Era
What is a computer-based method of delivering the right amounts of supplies to the right place at the right time for the production of goods? What does it use for this purpose?
Materials requirement planning (MRP) Bill of materials
__________ is the process in which an experienced employee supervises, teaches, and provides guidance to a protege.
Mentoring
___________ competition is a type of free market that has many sellers who sell similar but distinguishable products.
Monopolistic
Socialism has some clear-cut benefits. Name some of these benefits.
More benefits to citizens Less social inequality Less poverty
___________ bonds are issued by state and local governments and agencies. They consist of revenue bonds and general obligation bonds.
Municipal
______________ is a primary data collection process used by retail companies to collect data on customer service and customer experience.
Mystery shopping
____________ are the materials supplied by nature such as land, soil, water, and minerals.
Natural resources
What are the five factors of production?
Natural resources Capital Human resources Entrepreneurship Knowledge
____________ are based on facts and are often based on numbers related to employees.
Objective appraisals
_____________ is a type of free market that has few sellers offering similar but not identical products to many small buyers.
Oligopolies
Which function of management is associated with the following question? "How do I arrange tasks, people, and other resources to get things done?"
Organizing
_____________ involves the arrangement of tasks, people, and other resources to achieve set goals.
Organizing
____________ are diagrams for determining the best sequencing of tasks and are useful for more sophisticated functions.
PERT charts
_____________ leadership involves a good deal of communication, requiring the leader to have good listening skills and empathy.
Participative
Name the levels of Maslow's hierarchy in ascending order.
Physiological needs Safety needs Social needs Esteem needs Self-actualization needs
Which function of management is associated with the following question? "What are my goals and how do I achieve them?"
Planning
______________ define the responsibilities of various departments and help coordinate their activities for the achievement of common goals.
Plans
____________ layout is one in which similar work is grouped by function.
Process
____________ layout is one in which equipment and tasks are arranged into an assembly line.
Product
Identify the ways in which departments are commonly organized.
Product line Geographic region Customer
____________ are a special type of project team formed to devise, design, and implement a new product. Such teams usually exist within a functional area, but now include people from various functional areas and may even include customers.
Product-development teams
______________ are a special type of project team.
Product-development teams
______________ are formed to devise, design, and implement a new product.
Product-development teams
________ segmentation consists of categorizing people according to lifestyle, values, and psychological characteristics.
Psychographic
________________ are fairly small groups of workers brought together from throughout the organization to solve problems in specific areas. Companies use quality circles to shift the organization to a more participative culture.
Quality-assurance teams
________________ are fairly small groups of workers brought together throughout the organization to solve specific quality, productivity, or service problems.
Quality-assurance teams (quality circles)
The Civil Rights Act of 1964 attempted to reduce what discriminatory practices?
Racial bias Gender stereotypes Religious bigotry
What is the study of how to develop the resources for creating and best utilizing goods and services?
Resource development
________ bonds are used to pay for public projects that will generate revenue, such as toll bridges.
Revenue
________________ means nonmanagerial employees are given greater authority over planning, scheduling, monitoring, and staffing, and are also granted increased autonomy.
Self-management
Name the "Big 3" of job enrichment.
Sense of responsibility for results Feedback for results Creation of meaningful work
__________ businesses, which deal mainly with people, convert customers' unmet needs into satisfied needs.
Service
When comparing the 401k and the Traditional IRA, what benefit is sometimes offered by the employer to make the 401k a better choice?
Some employers will match the employee's contributions in the 401k.
_____________ describes the optimal number of subordinates a manager supervises—or should supervise.
Span of control
____________ are people listed with stock exchanges and are authorized by their clients to buy and sell stocks for them.
Stockbrokers
_______________ are oral histories that are repeated by members about important incidents and people in the organization's history.
Stories
____________ involves determining the organization's long-term goals for the next 1-5 years.
Strategic planning
_____________ involves changing company direction.
Strategy
What impact does lack of just-in-time inventory control have on a firm's efficiency and profitability?
Supplies and materials sitting idle cost the company money.
__________________ is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.
Sustainable development
Which legislation under the antitrust law prohibits restraint of trade and monopolies?
The Sherman Antitrust Act
What is the main benefit of investing in a 401k, IRA, or other retirement account?
The earnings grow without being taxed yearly.
_________________ refers to four marketing activities: product, price, promotion, and place (distribution).
The marketing mix
How many types of bonds are there? Name them.
Three. Corporate bonds, municipal bonds, and government bonds
________ are bank funds that can't be withdrawn without notice or transferred by check.
Time deposits
What is the purpose of a market research process?
To provide accurate information about problems relating to the marketing of goods and services
Why do investors participate in the secondary securities market?
To trade previously issued securities To profit from price fluctuations
___________ legally protects owners' rights to brand names.
Trademarks
What are the two major types of IRA accounts available?
Traditional and Roth
___________ leaders are the sort to steadily pursue of order, stability, and performance goals.
Transactional
______________ leaders are concerned with getting people to do exceptional things.
Transformational
True or False? A well-known argument against corporate social responsibility is society will suffer if a company is distracted from its mission of maximizing profits.
True
True or False? An example of a business situation in the United States that is illegal and unethical is canceling a company retirement plan.
True
True or False? Based on the business profit calculation (revenue - expenses = profit), the following could be considered reasons for a business loss: (1) insufficient revenue (2) excessive expenses
True
True or False? Institution of a backup procedure would be considered a contingency plan.
True
True or False? Lenders and suppliers use financial accounting to evaluate credit ratings.
True
True or False? Less than 20% of US students are required to take Personal Finance to graduate high school
True
True or False? Since debt financing must be repaid AND cost interest to an organization, the financial managers should utilize equity financing as a better alternative since it doesn't require repayment NOR costly interest payments.
True
True or False? Taking measures to minimize damage from a potential crisis would be considered a contingency plan.
True
True or False? When a corporation is socially responsible, it can improve people's lives.
True
True or False? With working capital management, the goal is to maximize the return on current assets.
True
True or False? The profit margin of a company is determined by net income divided by sales.
True The return of sales ratio (profit margin) of a company is determined by net income divided by net sales.
How many types of stocks are there? Name them.
Two. Common stock and preferred stock
What are the aspects covered under the guidelines provided by Occupational Safety and Health Act?
Use of personal protective equipment Handling machinery with moving parts
__________ is an important element that reveals which benefits customers get from a product as well the cost they perceive they have to pay to get these benefits compared to the competitor's products.
Value
In which situations would you advise against using just-in-time inventory control?
When the demand for your product line varies. When the firm has a diverse product line.
What is used to determine the basic elements of a job?
a job analysis
What is a series of different products forming a group under a single brand, manufactured by the same company?
a product line
What is the complete range of products that a company offers to its customers?
a product line
Prime location, proximity, and ample exposure to the target group can be considered _____________.
a strength
Steve Nowicki owns Food Monster, a grocery-store chain. One of his employees threw away a banana peel but missed the trashcan. As the employee was walking away, he heard a scream and a crash. A customer had slipped on the banana peel, suffering severe injuries to his knee and elbow. The injured customer decided to sue Food Monster. Although Nowicki's employee didn't mean for any of this to happen, the judge ruled that Food Monster had committed negligence, or an unintentional act that resulted in injury. This situation is an example of _____, or a civil, wrongful act that resulted in injury to people or property.
a tort
What is an approach where firms try to appeal to all buyers and assumes that all of them have similar needs and wants?
a total market approach
Business law is composed of four major types of laws: statutory, common, ________, and international.
administrative
The principle of _____________ aims to achieve equality of opportunity within an organization.
affirmative action
The Apparel Supply received a damaged shipment of shirts from the manufacturer, but it decided to keep them and sell them at a discount after the manufacturer agreed to give it a partial refund for the shirts, called a(n) ____________.
allowance
What is a specific geographic area in which government tries to attract business investment by offering lower taxes and other government support?
an enterprise zone
What is a facility that offers small businesses low-cost offices with basic services, such as secretarial and accounting services and legal advice?
an incubator
Adam Smith described individuals' drive for prosperity that produces the goods and services that provide economic and social benefits to all as _____________.
an invisible hand
Individuals, usually wealthy, who invest their own money in a startup company are known as ______________.
angel investors
A firm's fiscal year is defined as what?
any 12-month period chosen for annual financial reporting
What type of courts review cases appealed from lower courts?
appellate
Joe's Barber Shop gives free haircuts to Manny, who brings Joe a free pastrami sandwich on Fridays. This demonstrates the concept of ___________.
bartering
Low-fat milk and sugar-free drinks target those who desire the benefit of a healthier diet. This is part of the _____________ segment.
behavioristic
What financial instruments have the ability to turn security holdings into cash quickly and at minimal expense and effort?
bonds stocks
Flatter organizations are known to respond more readily to customer demands since empowered employees have authority and responsibility for making decisions. This describes a ___________ span of control.
broad/wide
The following describes a ___________ span of control. This structure is also a complement to the adoption of employee empowerment since it allows workers more autonomy to make decisions regarding their own positions. This enables them to more readily satisfy customers.
broad/wide
Hiring more talented workers and implementing more sophisticated IT systems allows firms to have a ___________ span of control since communication is not as challenging.
broader/wider
Which of these is a nonbank institution? mutual savings bank savings institution savings and loan credit union brokerage firm
brokerage firm
When Michael started his construction company, he needed to purchase some very expensive excavating equipment, but he didn't have the cash on hand to do so. He borrowed from the bank to cover this ________ expenditure.
capital
The cash flow statement reports disbursement relating to the firm's operating activities, investing activities, financing activities, and ______________.
cash balance
What are the six steps of the accounting process?
collect record classify summarize report analyze
What helps in devising the right type of marketing strategies for products/services?
collecting demographic data at a preliminary stage
What financial institution has expanded services since the repeal of Glass-Steagall Act?
commercial banks
What are kinds of short-term financing?
commercial paper trade credit
Financial statements must be relevant, consistent, reliable, and _______________.
comparable
Which control process step answers the question: "How does the actual differ from the desired?"
compare performance against standards
Ratio analysis helps decision makers understand the meaning of variables in the financial statements by:
comparing the company's performance against industry standards comparing the company's performance with its goals
The ______________ approach is an approach whereby a company develops one marketing strategy for a single market segment.
concentration
What is it called when two companies merge that are in different industries and each performs different activities?
conglomerate merger
GAAP is concerned with making sure that financial reports are what?
consistent and comparable
A(n) ___________ process is one in which goods or services are turned out in a long production run on an ongoing basis over time.
continuous
A ____________ process is a production process in which goods or services are turned out in a long production run on an ___________ basis over time.
continuous ongoing
Performance needs to be measured against set goals and differences, if any, need to be addressed. The ____________ function is very important for this.
controlling
Businesses rely on __________ to enable their customers to buy their products.
credit
What financial institution is owned by members?
credit union
Money market instruments are short-term IOUs, _________ securities that mature within one year.
debt
The ________ ratio measures the extent to which a company uses debt to finance its operations.
debt to owners' equity
When the Fed buys bonds from the public, it increases the money supply in the economy. This increased supply motivates purchases and borrowing. It is used to control ______________.
deflation
Skin-care products and power tools may be gender-specific and fall under the ___________ segment, even though the lines are blurring in recent times.
demographic
What is the focus of operations management?
designing, supervising, and improving the transformation process while keeping costs down
While the goods one has for barter are often perishable in nature, money is significantly more ____________.
durable
What details must a job specification contain?
education experience
Marsha is really good at managing her company's money in an optimum way. Marsha demonstrates _____________.
efficiency
Collective bargaining can be used to negotiate matters such as what?
employee compensation working conditions
Effectiveness is about the _____________, and efficiency is about the ___________.
ends means
Evaluating task significance is one of the five ways to affect a worker's motivation and performance. It is part of job _____________.
enlargement
Social _____ is an innovative, social, value-creating activity that can occur within or across the for-profit and nonprofit sectors.
entrepreneurship
The four forms of company ownership are sole proprietorships, partnerships, corporations, and ____________.
entrepreneurships
The value of the owners' interests is the same as ____________.
equity
Using personal assets instead of purchasing new assets for the business is a form of _____________.
equity financing
Which control process step answers the question: "What is the desired outcome?"
establish standards
Not only customers and the community, but also owners, employees, and suppliers benefit from: price slashing and deep discounts. aggressive social-media marketing. turning a blind eye to ethics violations. ethical behavior and social responsibility.
ethical behavior and social responsibility.
The technique of using borrowed funds to increase a firm's rate of return is called _______________.
financial leverage
A(n) ________ is a firm's strategy for reaching its financial goals.
financial plan
Randy needs to obtain a loan to support the business. In his business plan, Randy should classify the loan within which section? management legal marketing financing manufacturing
financing
When the U.S. government decides to raise or lower taxes, it is practicing ________ policy.
fiscal
The recent trend in structure changes is to __________ the hierarchy and use electronically linked teams.
flatten
An arrangement in which a business owner allows others the right to use its name and sell its goods or services within a specific geographical area is known as a _____________.
franchise
Randy realizes that there is a national company that provides spray foam insulation for roofing, and that for a license fee, he can use the national company's logo, methods, advertising, and products. In considering purchasing the license, Randy is considering operating as a/an corporation. limited liability corporation. partnership. franchise. entrepreneur.
franchise.
In _____________ leadership, the key for the leader is to remove roadblocks and allocate resources for the professionals to execute.
free-rein
Each ____________ is managed by an expert.
function
The main feature of matrix structures is that it combines the ________ and the __________ chain of command.
functional divisional
A weakness of _______________ is that it has a tendency to emphasize departmental units rather than the whole organization. This results in slower decision making.
functional departmentalization
Climate influences consumer purchases of clothing and heating and air conditioning equipment. Such products would fall under the _____________ segment.
geographic
Determinants like climate, terrain, natural resources, population density, subcultural values influence consumer needs and product usage. These determinants characterizes ____________ segmentation.
geographic
Global leaders are striving to address a common threat to our well being through the Paris Agreement. This agreement sets out a global action plan to avoid dangerous climate change by limiting
global warming
Students understanding the university's extra-curricular system and a firm being the center of social media engagement are broad and intangible targets, or _____________.
goals
The factors of production in command economies are controlled by _______________ planning.
government
Credit unions are known to provide a _________ rate of interest on deposits compared to commercial banks.
higher
Investing for growth is an advisable strategy for those with _________ risk bearing capacity.
higher
According to the Herzberg's two-factor theory, work satisfaction arises from ______-level needs called _____________ factors.
higher motivating
What is it called when two companies merge that are in the same industry and perform the same activity?
horizontal merger
Herbivores is a vitamin company with 14 employees. These employees are _______ resources of the company.
human
The Hawthorne effect studies led to the _______________ movement in the 1950s and 1960s.
human relations
Contingency planning is the creation of alternative __________ courses of action to take if its original plans aren't workable.
hypothetical
The "bottom line" on an organization's financial status is found on the _________________.
income statement
When people buy bonds from the Fed (the Fed sells bonds to the public), they pay money for it which is then withdrawn from circulation. This reduction in the money supply is done as a counter measure to control __________,
inflation
Becoming a public corporation by selling stock so that it can be traded in public markets is called what?
initial public offering
Investment bankers sell securities to ________ investors, or large organizations such as pension funds and insurance companies.
institutional
What financial institution protects business and individuals against loss?
insurance company
The price you pay for the use of money over a certain period of time is called the __________.
interest rate
A(n) _____________ process is one in which finished goods or services are turned out in a series of short production runs and the machines are changed frequently to make different products.
intermittent
An _____________ reward is the personal satisfaction and enjoyment that you feel from attaining a goal.
intrinsic
Bonds that are relatively safe with a low probability of default and have a bond rating or BBB or above are called what?
investment-grade bonds
What involves rotating employees through different departments to give them a broader picture of the organization?
job rotation
Parties to a business dispute may use the ___________ system, the branch of government that oversees the court system.
judiciary
High risk bonds with a greater probability of default are ________ bonds.
junk (speculative-grade bonds)
As information technology does more of the work formerly done by humans, ____________ is becoming a competitive advantage.
knowledge
The facts, information, and skills acquired by a person through training or education comprise ______________.
knowledge
What resources principally influence the production process?
labor materials energy
Goal setting and resource allocation is incomplete without effective ________________. People need to be well taken care of an listened to in order to stay motivated.
leadership
What are one of the critical business stakeholders, as firms borrow money from them?
lenders
In _________ positions, managers are involved directly in an organization's goals. They have authority to make decisions, and usually have people reporting to them.
line
People in __________ positions have specialized managers called staff managers available to assist them.
line
Randy worries that unforeseen early business experiences will cause the business to fail due to undercapitalization. Randy should consider acquiring a/an mortgage. equity financing agreement. line of credit. trade credit. debt financing agreement.
line of credit.
In stock exchanges, buying and selling is done by ________ brokers.
listed
Cash flow from investing activities includes cash received or paid for ______________.
long-term assets
A mechanic took out a mortgage from a bank to buy the garage he and his employees work out of. How would this be listed on a balance sheet?
long-term liability
According to the Herzberg's two-factor theory, work dissatisfaction arises from _________-level needs called _________ factors.
lower hygiene
In the long run, a company's unethical or unlawful behavior will have the effect of ____________.
lowering its stock price
What is the study of a country's overall economic issues. Addresses issues such as how an economy uses its resources and how government policies affect people's standards of living?
macroeconomics
Which accountants focus primarily on information used inside the organization?
managerial accountants
Tasks such as determining the optimal lot size and setting a schedule and delegating work accordingly happen in _______________ businesses.
manurfacturing
Wide/broad span of control: Organizations have removed the many layers of management in exchange for ________ people reporting to _______ manager. This creates a _______ organization that is _________ to communicate within.
many one flatter easier
A __________ is a group of people who have a need, purchasing power, and the desire and authority to spend money on goods, services, and ideas.
market
What is the gathering and analysis of data about problems related to marketing products, with the aim to provide accurate information to marketers?
market research
In ___________ arrangements, employees are responsible for two managers (functional and project managers)
matrix
The main feature of ________ structures is that it combines the functional and the divisional chain of command.
matrix
Two or more intersecting lines of authority (functional and divisional chain of command) to form a grid is a feature of _________ structures.
matrix
Newspapers, TV, and social media are all forms of ________ that influence businesses.
media
The process in which a neutral third party listens to both sides in a dispute, makes suggestions, and encourages them to agree on a solution without the need for a court trial is known as __________.
mediation
A(n) ________ occurs when two firms join to form a new firm.
merger
Ali works for a large automobile company studying how changes in gas prices affect what size cars people buy. Ali's field is most likely ___________.
microeconomics
Many entrepreneurs apply for loans of $500 to $35,000 from organizations, such as the Women's Initiative for Self-Employment. These loans are known as ___________.
microloans
Branch managers, general managers, and sales managers typically belong to the ____________ management especially in larger companies.
middle
An organization's fundamental purposes are expressed in a ____________ statement.
mission
Money available in the economy to buy various goods and services is called __________.
money supply
Which control process step answers the question: "What is the actual outcome?"
monitor performance
In ________________ competition, sellers supply similar products and find ways to distinguish them, or buyers perceive the products as being different.
monopolistic
Many firms use a _____________ to develop a marketing strategy for every single segment. They divide their customers into groups based on certain common characteristics.
multi-segment approach
The taller the organization becomes the more appropriate it is to have a ___________ span of control, since work is less standardized at higher levels and, therefore, requires more communication that is face-to-face.
narrow
When work is not standardized, a _____________span of control is appropriate.
narrow
Paresh's investors informed him that his $1 million in sales minus sales returns, allowances, and cost of goods sold of $900,000, left only $100,000 in _____________.
net sales
Insurance companies and pension funds are ___________ financial institutions.
nonbank
Statements that detail specific targets, especially those stating a time frame to achieve the targets, are examples of __________________.
objectives
The primary marketing research method that makes use of passive observation of customer behavior and _____________ questioning techniques is called _________________ research.
open-ended ethnographic (or observational)
The logistics of making and providing your product must be detailed in the ______________ section of your business plan.
operational issues
Following the plans of middle and top managers, supervisory managers do _____________, determining how to accomplish specific tasks with existing resources within the next 1 week to 1 year period.
operational planning
The ________ of an organization are those who can claim it as their legal property.
owners
Most situations require ______________ leadership, but it's required especially when a leader needs to leverage expertise from multiple areas or functions of the business.
participative
What financial institution managed pools of individual funds for retirement income?
pension fund
Delores is a financial accountant. One of her roles is to _____________.
perform audits to ensure accuracy of the financial information
IN the Sales Orientation Era, the focus was on __________________________.
persuading customer purchases.
If a person's retirement account contributions may be deducted from his/her income taxes, then these contributions are considered to be
pre-tax
The roles of a managerial accountant includes:
prepare accounting information and analyses for managers and decision makers manage and control inventory and production costs prepare and monitor department and company-wide budgets analyze the costs of production and marketing
What are observed, recorded, or collected directly from the respondents?
primary data
Companies are required to document __________ and comply with key ISO management standards, such as traceable changes and easy reporting.
procedures
Hot dogs, baseball bats, and hats are all single items manufactured by different companies. They are a _____________.
product
Insurance, mutual finds, and loans are related to services in the _____________ of a financial institution or consultancy.
product mix
Coke Zero, Diet Coke, and Cherry Coke are all ____________of the same company, but are considered different _______________.
products product lines
What factor weighs more than others in deciding the facility location for a factory-outlet store?
proximity to customers
People buy certain products as per their lifestyle and personality, such as high-value property and sports cars. This is part of the _______________ segment.
psychographic
What refers to the general well-being of a society in terms of its political freedom, natural environment, education, health care, leisure time, safety, and other benefits?
quality of life
One of the ways to understand how the variables in the financial statements are behaving is by implementing what?
radio analysis
What type of sampling method is used in statistical process control?
random sampling
The double-entry bookkeeping format is used during the ________ step of the accounting process.
record
Which element of consumer buying behavior includes friends, family, and coworkers?
reference groups
One of the reasons for implementing GAAP is to ensure that financial data is __________.
reliable
The obligation to perform the tasks assigned to you is ______________.
responsibility
Which ratios measure the profitability of a company?
return on assets return on sales
With a ________, a bank specifies how much it is willing to lend the borrower during a specified period of time, and the bank guarantees the loan and is obligated to loan funds up to the credit limit.
revolving credit agreement
When Bennett was job hunting, he focused on salaries when he researched potential companies because he had school loans to repay. This demonstrates which of the four basic rights under capitalism?
right to free choice
Data that is compiled either inside or outside the organization for a purpose other than changing the current situation is known as _________________.
secondary data
The defining characteristic of a ________________ is the extent to which it is empowered or given authority to make and implement work decisions.
self-directed work team
Decisions such as switching a service function to self-service would be taken in a _________ business.
service
What is it called when an employee learns skills on the job by watching and learning from more experienced employees?
shadowing
Market timing strategy involves buying and selling a stock within a ________ period of time.
short
A ________ forecast is a prediction about how money will come into and go out of a firm during the next 4 to 12 months.
short-term
A U.S. business that is independently owned and operated, is not dominant in its field of operation, and meets certain criteria for number of employees and annual sales revenue is called a(n) ________ business.
small
The functional departmentalization approach is common in ______ organizations.
small
What is an innovative, social, value-creating activity that can occur within or across the for-profit and nonprofit sectors?
social entrepreneurship
Division of labor or work ____________ mean different parts of a task are done by different people.
specialization
Specialized managers called ________ managers are available to assist line managers.
staff
Laws created by legislative bodies constitute __________ law.
statutory
Global presence, seasoned management, and a reputation for being ethical are _______________.
stengths
Change in ___________ is brought about because of shifts in economics, popular tastes, and other such factors.
strategy
Changes in __________ involve changing the management hierarchy to stimulate performance.
structure
In ____________ interviews, the interviewer asks each applicant the same identical, fixed questions and rates their responses according to a standard measure.
structured
Posts such as foreman, department head, and team leader tend to be part of the ____________ management level.
supervisory
Scarcity of goods and services impacts which economic forces?
supply demand price
A shoe company was having trouble getting the raw materials for its most popular shoe. Because there was a shortage of the shoe, it raised its prices to consumers. This demonstrates the influence of ________ on prices.
supply and demand
Shaun Johnson is a top manager at a construction firm that has been tasked with laying a pipeline through a large section of the state. In some ways, the project will help the local community. But in other ways, such as harming the environment, it will hurt the local community. Johnson is concerned about the project's _____, or whether a company's economic development meets present needs without endangering the ability of future generations to meet their own needs.
sustainability
Middle managers do __________________, determining what contributions their work units can make with their existing resources during the next 6 months to 2 years.
tactical planning
Changing machines and processes is related to _____________.
technology
Connie's Chalupas has placed samples of its product in grocery stores in mostly Hispanic neighborhoods to see how customers react to them. This company is conducting ____________.
test marketing
What does the Hawthorne effect establish?
that employees work harder if they think managers and supervisors care about their welfare and pay special attention to them
Small businesses meet certain criteria set by _______________ regarding the number of employees and annual sales revenues.
the Small Business Administration
The Global Compact is a voluntary agreement established in 2000 by _____ that promotes human rights, good labor practices, environmental protection, and anticorruption standards for businesses.
the United Nations
What allows the firm to specialize, focusing all its efforts on one market segment?
the concentration approach
What presents the company's overall plan of action for a particular time period?
the master budget
The height of prosperity, ___________, is the point at which the economy begins to decline or contrast.
the peak
Increasing the price increases ____________ resulting in a new _____________.
the quantity supplied equilibrium price
How acceptable the deviation is depends on what?
the range of variation built into the standards established
In starting a new firm, entrepreneurs risk what?
their time, money, and resources
Waning product popularity, copycat brands, and pressure from government regulation are ____________ to an organization.
threats
At which point in the production process do companies today conduct quality assurance?
throughout the process
When a company has shareholders, it needs to introduce new products to keep rewarding them. Which reason to develop new products is most evident?
to continue to expand revenues and profits
Products can quickly become obsolete and fall out of favor, making it easy for other companies to step in and take market share. This focuses on which reason to develop new products?
to stay ahead of or match the competition
A(n) _____ is made up of individuals and companies in a specific business or industry organized to promote common interests.
trade association
Leaders that promote vision, creativity, and exceptional performance are ___________ in nature.
transformational
At the end of an accounting period, the bookkeeper does a check for accuracy, called a(n)
trial balance
Leaders that are conscientious and have good execution and organizational skills are _____________ leaders.
trnasactional
In ___________ interviews, the interviewer simply asks applicants probing questions in a conversational way. There aren't any fixed questions asked of all applicants and there is no systematic scoring of answers.
unstructured
CEOs, CFOs, COOs, and presidents belong to the __________ management levels across industries.
upper
What is it called when two companies merge that are in the same industry but each performs a different activity?
vertical merger
What an organization wishes to become is expressed in a ______________ statement.
vision
The balance sheet should be thought of as the ______________ of the organization.
vitals
Slow diversification, suboptimal outlet location, and dependence on one flagship product are ______________ to be looked into and corrected.
weaknesses
The features of _________ span of control include many people reporting to a manager, being common in decentralized firms, and being appropriate when the level of interaction between superiors and subordinated is low.
wide
A flatter organization should have a _________ span of control.
wide/broad
The following are characteristics of __________ span of control? Organizations have removed the many layers of management in exchange for many people reporting to one manager. This creates a flatter organization that is easier to communicate within. This structure is also a complement to the adoption of employee empowerment since it allows workers more autonomy to make decisions regarding their own positions. This enables them to more readily satisfy customers. Flatter organizations are known to respond more readily to customer demands since empowered employees have authority and responsibility for making decisions. Larger organizations have adopted flatter structures in order to match customer responsiveness demonstrated by smaller firms.
wide/broad
__________ in economic activity causes an increase in economic output which is triggered by a rise in investment spending, government spending, or exports.
An expansion
_____________ is the failure or refusal of a party to a contract to live up to his or her promises.
Breach of contract
__________ refers to the technological expertise and practical experience that allows entrepreneurs to quickly determine new wants and needs and deliver new products.
Knowledge
___________ are obtained to legally protect inventions of machines, manufacturing processes, and chemical substances.
Patents
__________ competition is a type of free market that has many small sellers who sell interchangeable products to many informed buyers.
Perfect
Socialism has five key drawbacks. What are they?
Problems with central planning High taxes Possible brain drain Less job and wealth creation Possible government deficits
What refers to the amount of goods and services people can buy with the money they have?
Standard of living
What are the four major types of business laws?
Statutory law Common law Administrative law International law
_________ is the lowest point of a business cycle, where the contraction ends and the expansion begins again.
The trough
What is any activity that seeks to make a profit by satisfying needs through selling goods and/or services and generating revenue?
a business
What is a precise statement of the rationale for the business, and a step-by-step explanation of how it will achieve its goal?
a business plan
While pursuing debt financing, Randy is asked to create a business plan. Which of the following is not likely to be included in the business plan? an analysis of the business competition a list of past failures of the entrepreneur strategy for acquiring funds to sustain business estimate of incomes and expenses an explanation of the business
a list of past failures of the entrepreneur
What is a group of people who work together to accomplish a specific purpose?
an organization
It is said that small businesses are the __________ of America.
backbone
Which factor of production includes the buildings and tools that are used to produce goods and services?
capital
The United States has a predominately ____________ system, while many believe it is a _____________ with elements of ___________.
capitalist mixed economy socialism
A big company that helps small nonprofit firms working to make a difference in antipoverty, literacy, and the environment by providing them with small loans is an example of _________________.
cause-related marketing
What is a commercial activity in which a business forms a partnership with a charity or nonprofit to support a worthy cause, product, or service?
cause-related marketing
Command economies are also known as __________ economies.
central-planning
In the __________ phase, the pace of economic activity slows down and output falls.
contraction
In ____________, owners have little liability, can raise money from shareholders, and must manage heavy costs and paperwork.
corporations
A nuclear plant requires large quantities of water for its cooling system. Which factor of production is described?
natural resources
Entrepreneurs need to be self-confident and believe they have personal control of their destinies because they: have employees who look up to them. need the confidence to act decisively. need to convince others they are worthy. know it influences others to invest in them. can't accept any personal setbacks.
need the confidence to act decisively.
A ___________ ____________ market has many small sellers who sell interchangeable products to many informed buyers. No seller is large enough to dictate the price of any product.
perfectly competitive
A small Texas town is struggling economically. Most residents are out of work and desperate for jobs. When Bully Manufacturing comes to town and hires workers, residents are grateful to be employed. Bully requires its new employees to work twelve-hour days, doesn't give lunch breaks, and illegally pays them less than minimum wage. Bully Manufacturing is a ________.
sweatshop
A small business almost always has ______ or fewer employees, but according to some definitions a small business may have as many as ________ employees.
100 500
What happens when the cost of making the product increases?
A business will not offer as many units at the old price. Increasing the price increases the quantity supplied, resulting in a new equilibrium price.
