Junior Business Class Flash Cards

In some countries, it is illegal for an interviewer to ask questions about a job applicant's

Age and health issues. The interviewing process provides a business with an opportunity to meet and interact with an applicant to learn more in-depth information about his/her qualifications to perform a job. During the interview process, the interviewer should ask questions that focus on the applicant's work-related skills, education, and training. Because it is against the law to ask certain types of personal questions, the interviewer should avoid asking questions that relate to the applicant's age and health.

Before a business owner decides to hire a new employee, s/he must first

Consider the demand for the business's product. Business owners often hire additional employees when they expect demand to increase for their products. When a company expects higher sales, it needs to increase its outputs and, therefore, needs more inputs (e.g., personnel) to satisfy the higher product demand. Business owners do not need to obtain government application forms to hire employees. The business owner may not ask current employees to increase their workloads because they may not have the necessary skills to perform the job. Once the business owner determines that there is a need to hire an employee, s/he can advertise the position in the newspaper for outside candidates.

Before a business takes steps to hire a new employee, it should

Determine that a new employee is actually needed. The business should make sure that the business really needs another employee before beginning the hiring process. New employees are often needed when the business has expanded, its market has grown, or current employees are leaving or retiring. Once the need for an additional employee has been established, the business can identify the available sources of new employees and plan the employee's schedule and training.

The overall purpose of a business's equity goals should be to

Improve equity in the work environment. The company's goals may be short-term or long-term, but they should be geared toward improving equity overall. Government sets equity standards for businesses. Encouraging employees to suggest changes might be a subgoal that would help improve equity. Controlling company expenses is a financial goal.

Determine which of the following statements is true:

Managing diversity is an ongoing process. Managing a diverse workforce and ensuring equitable opportunities for employees are ongoing processes. Businesses can determine whether their equity efforts are on target by setting goals and monitoring their progress toward those goals. From time to time, the goals may need to be changed as the needs of the business change.

What is one of the best internal sources a business manager can use to predict sales for a particular date?

Past sales records. These records are a valuable source of internal information that help to indicate a predictable trend in sales. These records are useful because they are based on facts. Trade magazines, actions of competitors, and opinions of consultants are external sources of information.

The starting point for the development of a company-wide budget is developing a

Sales forecast. The sales forecast is required to develop the sales budget. The budgeted income statement combines all budgets to show expected revenues and expenses. The balance sheet is a snapshot at a particular point in time of a business's assets, liabilities, and owner's equity. The balance sheet is usually prepared the last day of the accounting period.

If a business which normally has gross sales of $15,800 per week forecasts an increase in sales of 8%, forecasted weekly sales would be

$17,064. Many businesses forecast sales based on sales trends. A business whose sales had been increasing at a rate of 8% might use that percent of increase to forecast future sales. In this case, to calculate the new sales figure, multiply the gross sales by the percentage of increase ($15,800 x 8% or .08 = $1,264) and add the product to gross sales ($15,800 + $1,264 = $17,064).

If sales were $323,000 during a certain period last year, and a 15% increase is expected for the same period this year, what are the expected sales for this year?

$371,450.00. Since sales are expected to increase a total of 15% over the previous year's figure of $323,000, sales for the current year can be determined by computing 115% of $323,000. It is also possible to arrive at the correct answer by computing 15% of $323,000 ($48,450) and adding the two numbers ($323,000 + $48,450 = $371,450).

What do businesses use to keep track of daily financial transactions?

Accounting records. Financial transactions, such as buying supplies and paying bills, affect the financial condition of the business. Some types of businesses, such as retailers and large corporations, have transactions every day. They buy and sell and need to keep track of those transactions. Using accounting records helps a business track how much it spends and earns. There are many different types of accounting records that track sales, other sources of income, purchases, expenses, cash flow, etc. The goal is to track transactions to make sure the business has sufficient funds and is financially sound. Balance sheets, inventory reports, and bank statements are types of financial records; however, they are not used to keep track of daily financial transactions.

One of the benefits to the business of an effective employee selection procedure is a(n)

Appropriate match of employees to jobs. An effective employee selection procedure screens applicants carefully and selects those who are best qualified to do the job. This benefits the business because the new hires need little or no training and are soon able to achieve good levels of productivity. Effective selection does not reduce the need to orient employees to their new place of employment. A rapid rate of turnover and having a number of employees who need training would not benefit the business.

Workers who feel they are treated fairly by the businesses for which they work usually

Are very productive. Employees' perceptions of the way in which they are valued by their employers affect their morale, their loyalty to the business, and thus their productivity. These workers are loyal to the business and stay with it, have high morale, and have no need to file discrimination lawsuits. Their high productivity enables the business to be more competitive and to increase its profits.

What approach to sales forecasting is described in the following situation: A toy manufacturer is preparing a sales forecast by asking for separate forecasts for specific lines of toys, for specific territories, and for specific sales representatives. This information will then be combined into a forecast for the entire company.

Bottom-up. The bottom-up sales forecasting approach is prepared by starting with separate forecasts for specific lines which may then be combined into a forecast for the entire company. The top-down sales forecasting approach is prepared for the company as a whole and then broken down into forecasts for specific products, salespersons, territories, product lines, departments, or for any other area for which the business needs to forecast sales. Breakdown is another name for the top-down approach. Jury of executive opinion is a qualitative sales forecasting method which gathers opinions from company executives.

The main advantage of external recruiting of employees over internal recruiting is that it

Brings in more applicants. External recruiting seeks new employees outside the business. This creates a larger pool of candidates from which the business can choose than internal recruiting. It may also be the only way to attract applicants with the required skills and knowledge. The other alternatives are advantages of filling positions from within the organization.

Training and human resource development have many benefits, most of which relate directly to an increase in

Business profits. Such benefits as increased production and quality of work, improved employee morale, decreased employee turnover, reduced need for supervision, and reduced labor costs, result in higher business profits. Training and development increase production, rather than lengthen the working hours of the business. Training and development reduce, rather than increase, labor costs and the need for supervision.

One reason why it is important for companies to provide continual training is to keep their employees informed about current

Business trends. Continual training and development are as important as initial training. Since employees tend to forget technical information and may have difficulty staying current with new trends, retaining and updating of training are vitally important. Companies usually do not provide training about current economic conditions or vendor relations. Information about job requirements is provided during initial training.

When processing customer payments, businesses compare the payment notice with the

Check amount. When processing customer payments, it is important to compare the payment notice with the check amount to make sure the customer has paid the correct amount. The payment notice indicates the amount that the customer is required to pay. By comparing this amount with the check amount, a business can give a customer credit for paying the correct amount. If there is a discrepancy, the business can contact the customer to determine the cause. In some cases, customers miscalculate sales discounts and accidentally pay the wrong amount. The discount terms, account number, and possibly the interest rate appears on the payment notice.

To verify information about applicants, employers can

Check references. The checking of references is a common method of gathering and of verifying information about applicants. Types of reference checks that are often used are previous employment, credit, education, and personal references. The information provided by applicants in résumés and in application blanks is verified through the use of reference checks. Physical examinations are used to identify applicants' pre-existing health problems.

The receiving department of a small business employs two stock clerks who each work six-hour shifts. What is the most effective work schedule if the store receives deliveries between the hours of 7-8 a.m., 9-11 a.m., and 1-3 p.m.?

Clerk 1: 6 a.m. to noon; Clerk 2: 9 a.m. to 3 p.m. This schedule provides an opportunity to prepare the area for the first delivery and also has two clerks available for the last two, longer, delivery times. The other alternatives are not as effective because they don't provide the most coverage when deliveries are scheduled.

Businesses often verify the information provided on job applications and résumés by

Conducting background checks. Before selecting candidates to interview, businesses screen job applications and résumés to identify those who have the appropriate backgrounds. After identifying the best candidates, businesses often conduct background checks to verify the information that was provided. This might include calling the references and former employers who were listed on the applications/résumés. The purpose is to make sure that the information is accurate and that applicants are not misrepresenting themselves. Businesses cannot verify the information by questioning the applicants who provided the information. It would be difficult for businesses to identify and interview former coworkers unless these individuals were listed as references. Businesses do not hire private investigators to verify job application information.

Which of the following is economic information that will help in preparing a sales forecast for a business

Consumer spending levels. The level of current consumer spending, as well as forecasts of future levels, is important economic information useful in preparing a firm's sales forecast. Operational changes such as staff adjustments are those made within the business. Product revisions involve marketing information, not economic information.

Aaron, a small-business owner, develops an exit strategy so that his company keeps growing and prospering in the marketplace after he leaves. The exit strategy is one aspect of Aaron's

Continuation plan. An exit strategy is the blueprint that an entrepreneur uses to leave the company. There are many options for the business owner to consider when leaving the company, such as selling the business, executing an IPO, or taking his/her share of the profit. Each option requires a different course of action. Regardless of the option the owner selects, the business owner should try to make the transition as smooth as possible so that business operations are not interrupted. The exit strategy is one aspect of the continuation planning, which is the function of deciding what activities will need to be performed to keep a company prospering, and the steps it will need to take to accomplish these activities when the business owner leaves the company. The exit strategy is not one aspect of Aaron's control system, management style, or competitive advantage.

Which of the following is a major disadvantage to a business of recruiting job applicants through outside agencies:

Cost of agency services. Many businesses use all other means of recruitment before turning to an agency because the fees charged are usually high. However, the agency can also save a firm both time and money because it interviews job applicants, screens them so that only the best qualified need to be interviewed by the business, and helps the business to meet legal guidelines for hiring by keeping up-to-date on equal opportunity and affirmative action laws.

Which of the following policies would best allow a ski resort to meet a temporary increase in demand for service without sacrificing productivity or increasing costs:

Cross-training employees to perform several different jobs. Cross-training allows management to reassign people working on less essential tasks to assist temporarily at high points of demand. Hiring new employees has high recruitment and training costs, plus it can result in overstaffing when demand returns to normal. Increasing work hours means paying overtime and can also adversely affect employees' productivity. Customers don't like irritable and overworked service providers. Using temporaries isn't as costly as hiring new employees, but they would lack the training of regular employees; therefore, they would not provide the same level of service.

Although training costs money, businesses may find a lack of training even more expensive because of the loss of

Customers. Customers may be so frustrated or offended by having to deal with a business's untrained employees that they may take their business elsewhere. Unhappy customers may also share their opinions with others and damage the company's goodwill. Untrained employees are not likely to cause a business to lose its competitors or its suppliers/vendors.

Businesses often segment their target markets into which of the following three primary areas:

Demographic, psychographic, geographic. These are the three main ways to segment a target market. Demographic segmentation is the division of a market on the basis of its physical and social characteristics. Psychographic segmentation is the division of a market on the basis of consumers' lifestyles and personalities. Geographic segmentation is the division of a market on the basis of where consumers are located. Productive, rational, sociological, promotional, economic, and technological are not ways of segmenting target markets.

Age, ethnicity, and income are all factors when developing a target segment based on

Demographics. Age, ethnicity, and income are all factors of the science of demographics, which studies the various aspects of a group's background to determine similarities in decision making of individuals within groups. Sometimes, geographical areas are used to segment populations. This type of targeting can emphasize attachment to a particular geographic location as the defining feature of a group. Behavioral segmentation sorts consumers based on their attitudes towards or use of a product or service. Psychographics is used to segment markets on the basis of beliefs, values, attitudes, lifestyles, etc.

Company XYZ has developed a new flavor of ice cream called Hunky Chunky and has selected a target market that consists of boys, ages 7-15, who are living at home with their parents in a household that earns between $30,000 and $60,000 a year. This method of target market selection is based on

Demographics. Demographic segmentation is the division of a market on the basis of its physical and social characteristics. Psychographic segmentation is the division of a market on the basis of consumers' lifestyles and personalities. Geographic segmentation is the division of a market on the basis of where consumers are located. Socioeconomics is not a method of selecting a target market.

If Alisa meets her objectives, she plans to sell her company in five years. To facilitate a smooth transition for her company so it continues to grow, Alisa should

Develop an exit strategy. Continuation planning is the function of deciding what activities will need to be performed to keep a company prospering, and the steps it will need to take to accomplish these activities when the business owner leaves the company. Most often, this involves ongoing planning. By developing a comprehensive exit strategy, the business owner decides how the company will continue running after s/he has left. When the owner leaves the company, s/he might sell the business, execute an IPO, or take his/her share of the profit. So the business keeps running smoothly, the business owner develops an exit strategy for a smooth transition. Researching other venture opportunities, selecting a close friend to take over the business, and asking employees for input are steps that the owner may take when developing an exit strategy, which is a part of continuation planning.

Which of the following is a possible external threat that a business might identify as a result of conducting a situational analysis during the marketing-planning process:

Downturn in the economy. A situational analysis involves examining and interpreting the environmental factors that affect a business. As a result of considering external environmental factors, a business often is able to identify potential threats in the marketplace such as increasing competition or a downturn in the economy. Once a business identifies the specific threats, it takes steps to turn them into opportunities. For example, if the economy is beginning to slow down, a business might revise its products or offer additional credit plans to appeal to a wider market. A change in pricing structure, a contract with a new supplier, and a decrease in operating expense are internal factors.

Why should a manager seek employee input when considering solutions to an employee complaint?

Employees may already have a solution to the problem. Managers should try to obtain employee input when resolving a complaint because the employees may already have a solution to the problem, and they tend to support what they help to create. Managers must keep in mind that employees may not be objective about a situation in which they are involved and have their own best interests at heart. Since many factors are usually involved in a problem, the employees may know the results, or effects, of the problem without knowing its true cause. Asking for employee input in resolving a problem is not always the easiest way to handle it and may create additional problems, rather than quickly resolving the initial problem.

What are businesses examining when they conduct a situational analysis during the marketing-planning process?

Environmental factors. The purpose of a situational analysis is to examine and interpret the environmental factors that affect the business. The environmental factors may be internal, such as a business's distribution system or pricing strategy, as well as external, such as the state of the economy or the number of competitors. Businesses examine both types of environmental factors in order to adapt to change and make effective marketing decisions. For example, if the economy is slowing down, a business might decide to adjust its prices to remain competitive. Physical characteristics are personal traits such as age, height, weight, etc. Personal aptitudes are a person's natural talents. Geographical changes involves changes in natural features or climate.

Which of the following do businesses use to identify developing changes so that they can make adjustments to remain competitive:

Environmental scanning. Businesses need to understand changes in their environment in order to adapt and remain competitive. They often use a procedure known as environmental scanning to gather information about changes or trends that are beginning to develop in the marketplace. This procedure allows businesses to identify changes at an early stage and decide if they present a threat to the way the business is currently operating. Businesses do not use geographic monitoring, demographic segmenting, or psychological profiling to identify changes that are developing.

What do businesses need to develop to effectively assess employee performance?

Evaluation criteria. Before assessing employee performance, businesses need to develop evaluation criteria which are the standards or behaviors that will be assessed. Businesses often develop specific criteria such as attendance, attitude, productivity, etc. For example, customer service is important; therefore, an important criterion might be an employee's ability to be friendly and helpful while providing service to customers. Criteria provide the basis for assessing employee performance. Job descriptions are developed before hiring employees to fill certain positions. After an employee's performance has been assessed, a business provides appropriate feedback. Employees who receive good or excellent assessments often are recognized for their performance.

When screening applicants' résumés, businesses often use evaluation forms to qualify a person's training and

Experience. Human resources departments often develop training and experience (T and E) evaluation forms to qualify job applicants. The evaluation forms list specific information about special skills, training, experience or knowledge that are needed to perform the job. The evaluation forms help human resources personnel to check the applicants' résumés to make sure that they meet the criteria required to perform the job. If the applicant meets the criteria, the human resources staff forwards the information to the appropriate department or person who is interviewing the applicants. Human resources personnel do not use the training and experience evaluation forms to qualify an applicant's intelligence, personality type, or social behavior.

When businesses use only external recruiting, their employees often

Feel they have little chance of promotion. Employees of companies that use nothing but external recruiting feel they have little chance for promotion if outsiders are routinely brought in to fill vacancies. They also feel that their hard work is unappreciated, and this may reduce their productivity. This kind of situation often damages employee morale.

A business's customized software program is to be installed and ready for operation in three weeks. The quickest and most effective way to train all software users would be through

Group training. Group training is presented to small or large groups at one time. Since employees are learning a customized software program, group training would be an effective way to explain the operation of the new software package to all software users quickly. Although many independent course are available, employees need to learn how to operate a customized software package. An internship is training in which schools and businesses cooperate to provide on-the-job practice for learners. Job rotation is training allowing an employee to learn several related jobs, one at a time, until the training process has been completed.

One reason for screening résumés is to determine if the applicants

Have the desired skills to perform a specific job. It isn't feasible for businesses to interview every person who submits a résumé for a job opening. Therefore, businesses screen résumés, which is the process of reviewing résumés to determine which candidates have the qualifications to perform the job. For example, if a job requires a worker to type 50 words a minute, and the applicant's résumé indicates that s/he types 70 words a minute, then the applicant would meet the business's criteria for performing one aspect of the job at an efficient level. A résumé is a document and doesn't adequately provide insight or enough information about the applicant's ability to improve a skill, his/her ethics, organizational skills, and efficiency levels.

Businesses realize that it is almost impossible to appeal to all customers which is why most businesses try to

Identify market segments. A market segment is one of the groups into which the total market is divided. The marketplace today is very diverse and includes consumers from many backgrounds who have different lifestyles. As a result, it is virtually impossible to appeal to all consumers. Therefore, businesses try to identify the market segment that wants and needs their particular products. By identifying the appropriate market segment, businesses can focus on those individuals who are the most likely to buy their goods and services. Marketing goals are the objectives a firm seeks to reach with its marketing plan. Distribution channels are paths, or routes, that goods or services take from the producer to the ultimate consumer or industrial user. A guarantee is a promise made to the consumer that a product's purchase price will be refunded if the product is not satisfactory.

Which of the following is a beginning step to take in handling an employee complaint:

Identify the problem behind the complaint. Employee complaints do not always address the actual problem but only the results of a problem. Before a complaint can be resolved, the problem that has caused the complaint must be identified. The individual investigating the complaint should do so in an objective manner without letting personal judgment interfere in the investigation. Considering all possible solutions and documenting the resolution to the complaint are later steps in dealing with complaints.

The purpose of maintaining daily financial transactions is to keep track of the business's

Income and expenses. Financial transactions, such as selling products and paying bills, affect the financial condition of the business. The purpose of maintaining daily financial transactions is to make sure the business has sufficient income to cover expenses, and is financially sound. For example, transactions that bring in money are necessary to offset the bills that the business must pay. Businesses do not maintain daily financial transactions to keep track of payroll and benefits, assets and liabilities, or stocks and bonds.

Which of the following venture-harvesting methods usually supports a venture's future growth and facilitates the business owner's exit

Initiating a public stock offering. Venture harvesting is the stage in the entrepreneurial process in which the entrepreneur exits the business and collects (harvests) his/her share of the venture investment. There are many ways to harvest a venture, which includes closing the business entirely; selling the business to another person or company; keeping the business intact and releasing cash flows; and taking the company "public" through an IPO (initial public offering). IPO means that the entrepreneur is selling stock to the public and giving up control of some or all of the business; over time, the venture becomes a public corporation. By incorporating the business, the owner is selling stock, which generates money so the company can continue and grow. Ceasing business operations means that the business cannot grow because it is closed. Setting up a trust fund and developing a licensing program does not help the owner exit the business nor does it ensure the business's growth.

What is a company using when it lets its current employees know about a new job opening and encourages them to apply?

Internal recruiting. Internal recruitment involves seeking workers from within the business. External recruiting is seeking workers from outside the business. Employee turnover is the rate at which employees are hired or leave the organization. Group incentives reward employees for cooperative efforts.

Training that is provided by company management or the company's own training staff is known as __________ training.

Internal. Internal training is provided by the company and usually conducted within the business. Internship is training in which schools and businesses cooperate to provide on-the-job practice for learners, and learners receive classroom instruction as well as on-the-job experience. Vocational training is provided by an educational institution outside the business. External training is training conducted by persons or organizations outside the business.

Which of the following assets usually is a main concern when developing a business's budget:

Inventory. Inventory is all of the stock, or merchandise, that a business has on hand. Inventory is often a business's largest asset. When developing a budget, businesses consider the amount of inventory they need to buy in order to produce or sell products. In many cases, buying inventory is a major expense and businesses must plan to have the funds available to pay that expense. Without sufficient inventory, a business might not be able to operate. Investments are assets but they usually are not a main concern when developing a budget. Interest is money payments for the use of borrowed money. Not all businesses have investments or earn interest. Business insurance is not considered an asset.

What is one question that a business must answer when identifying a potentially profitable target market?

Is the market responsive? It is important for a business to know whether customers would, in fact, be interested in its products and also be willing to buy them. If it is a responsive market that has interest and the ability to buy, the business has a better chance of being profitable. Considering form utility, variable expenses, and advertising media are important; but these questions do not specifically pertain to identifying a target market.

Which of the following is an example of a flexible 40-hour weekly schedule in which employees are required to be on the job from 10:00 a.m. to 2:00 p.m., Monday through Friday:

Jim works 7:00 a.m. to 3:00 p.m. Flexible schedules give employees various options in the times they work each day but usually require them to be on the job during certain core hours. In this case, employees are required to be on the job from 10:00 a.m. to 2:00 p.m. but have a choice as to when to schedule the remaining four hours. Jim has chosen to work from 7:00 a.m. to 3:00 p.m. which includes the core hours between 10:00 and 2:00. The other employees are working flexible 40-hour weeks, but they are not scheduling themselves to be on the job during the entire four-hour core period.

When interviewing a job applicant, it is important for the interviewer to focus on asking questions that are related to the applicant's

Job performance. The purpose of an interview is to determine if the applicant meets the qualifications to perform the job. Therefore, the interview questions should relate directly to the job in terms of the applicant's education, skills, training, and work history. Although ethics are important, the applicant's personal interests and political beliefs are not usually related to his/her ability to perform a job. An applicant's thoughts about the company may be useful or interesting, but should not be the primary focus during the interview and questioning process.

An internal method of recruiting employees is through

Job postings. Job posting makes known to a firm's current employees that a job opening is or will be available within the company. Using direct mail to contact prospects, recruiting on college campuses, and obtaining employees through employment agencies are external methods of recruiting because they go outside the business to find workers.

Identifying market segments helps a business to develop appropriate

Marketing strategies. Identifying markets involves dividing the whole market into smaller groups that share common characteristics. When a business identifies different markets, it can then select the group (target market) that is most likely to buy its products. After selecting the target market, the business can develop a plan of action and carry out activities that will appeal to the target market and encourage it to buy its products. Businesses do not identify market segments to develop appropriate economic forecasts, organization records, or leadership styles.

A company's training and development program is influenced by a variety of external factors such as changes in

Modern technology. A company's training and development program is influenced by both internal and external factors. External factors include changes in technology, the economy, and the competition. Internal factors include changes in the company's needs; employees' skills; and the education, experience, and work values of employees.

What type of remedial action should a company take to encourage employees to follow standards and rules so that violations don't occur?

Preventive. Preventive discipline is intended to prevent violations before they occur. Corrective discipline focuses on discouraging further rule or performance violations after infractions have occurred. Progressive discipline calls for administering progressively more severe penalties each time an offense is repeated. Constructive criticism involves providing feedback on workplace behavior to employees as a means of fostering improved performance.

Which of the following is a factor in the internal environment that a business should consider when conducting a situational analysis:

Pricing strategies. Internal factors are those factors within the business itself that have an impact on the business's marketing effort, such as the business's pricing strategies. When conducting a situational analysis, businesses should consider factors in the internal environment as well as external factors. For example, as a result of a situational analysis, a business might discover that the economy is slowing down. Then, it might review its pricing strategies to make adjustments to remain competitive during difficult economic times. If a business ignores the internal factors that affect its marketing effort, it may lose customers and sales because it did not adapt to change. Advertising regulations, industry trends, and local populations are external factors that a business should consider when conducting a situational analysis.

Which of the following is an example of a direct channel of distribution for consumer products

Producers using catalogs to sell. Direct distribution is a channel of distribution in which goods and services move directly from the producer to the consumer or industrial user. There are several ways to distribute products directly to consumers. One of these involves producers developing catalogs, and sending catalogs to customers so the customers can order directly from the producer. This channel eliminates middlemen. Direct channels of distribution do not involve wholesalers storing shipments, businesses buying from many vendors, or agents representing manufacturers.

One of the ways that training and human resource development benefits businesses is by increasing employees'

Production and quality of work. Training can increase employees' knowledge of job skills and processes, and often improves their abilities to deal with customers effectively. As a result, their production and quality of work increases, which result in increased profits for the business. Training and human resource development decreases employees' rate of turnover and their need for supervision. Training does not necessarily increase employees' salaries and benefits packages, which often are determined by number of years on the job and their levels of authority.

What form of discipline is being used when an oral warning, a written warning, suspension, and finally discharge are used to discipline an employee?

Progressive. Progressive discipline is based on the idea that each time an offense is repeated, the offender is given a progressively more severe penalty. Open-door is a management policy in which employees are permitted to voice their complaints, grievances, or problems to successively higher levels of management. Preventive discipline centers on managing people in ways that will prevent infractions from happening. Stairstep is not a term used in connection with discipline.

When a business processes a customer's payment, it records the payment as a

Receipt of cash. When a business receives payment from a customer, it records the amount of payment as a receipt of cash. As customers pay, the business's cash increases. The increase in cash also increases the assets of the business. When a business processes a customer's payment, it does not record the payment as a debit transaction, a type of sale, or a financial expense.

To maintain accurate records of every financial transaction, businesses keep copies of

Receipts. Financial records are documents containing information related to the amount of money going into and going out of a business. A receipt is a written or printed document that acknowledges a financial transaction—it is a way to keep track of a financial activity. Reports, certificates, and contracts may contain information about a business's financial activities, but these documents can be used for other business purposes.

Which of the following guidelines would be the most appropriate for a supervisor to follow when administering remedial action:

Resume a normal attitude toward the employee as quickly as possible. While the supervisor may find this difficult to do, it is important because expecting further problems with the employee may actually cause them to occur. The immediate supervisor should handle disciplinary action, particularly minor problems. Action should be taken promptly so that the connection between the infraction and the penalty does not become blurred. Remedial action should be taken in private, without coworkers present so that the employee's dignity and her/his status in the organization can be preserved.

One procedure for determining future hiring needs involves analyzing

Sales volume. Sales volume is the amount of a business's sales. Businesses often analyze sales volume over a period of time when determining future hiring needs. For example, if a business's sales have increased steadily over a period of time, the business might decide that hiring additional salespeople will help to increase sales even more. The increased sales might also indicate that the business needs to hire additional support staff to fill orders and provide customer service. Merit pay is a salary increase based on performance. Job security is the assurance that employees will keep their jobs. Determining future hiring needs does not involve analyzing formal training.

When an automobile company markets a van to families and a luxury sports car that appeals to single, working adults, it is engaging in ____________ marketing.

Segment. Segment marketing is the classification of customers into similar groups in order to appeal to one or more individual segments. An automobile manufacturer that develops different types of vehicles to appeal to different types of drivers is engaging in segment marketing. Local marketing occurs when a business customizes its marketing activities to appeal to customers at a community level. Mass marketing occurs when businesses develop products and implement marketing strategies that appeal to the whole market. Relationship marketing refers to a strategy in which businesses spend time with current and prospective clients outside the business setting to enhance the partnership.

The level of control that a manufacturer wants over product promotion is a factor it must consider when

Selecting its channel members. Channel members are the businesses or individuals who assist in moving goods and services from the producer to the consumer. Businesses consider many factors when selecting their channel members. One factor is the amount of control that the business (producer) wants to have over product promotion. For example, to ensure that retailers effectively promote a new good or service, a producer might develop a training program or a special advertising campaign to inform wholesalers and retailers about the product. Control over promotional efforts are not the primary consideration for a producer when it develops a budget, obtains raw materials, or decides its legal ownership structure.

Some businesses need to select an appropriate channel of distribution because they lack the resources to

Sell directly to the final customer. Indirect is a channel of distribution in which goods and services move from the producer to the channel members and then to consumers or industrial users. Some businesses are not equipped to sell directly to the final customer and need to select an appropriate channel of distribution. For example, some businesses do not have the financial sources to maintain warehouses or own trucks. Selling products to intermediaries that in turn sell to retailers is one way that these businesses distribute their products. Businesses do not select a channel of distribution because they lack the resources to manage the production function, contact a responsible intermediary, or develop an appealing product.

Businesses identify market segments by dividing consumers into groups that have

Similar characteristics. Market segmentation is the division of a total market into smaller, more specific groups. The basis of the division is similar characteristics that are geographic, demographic, or psychographic in nature. Some of the groups or segments have unusual interests, but not all of them do. Most people have financial needs, so this characteristic is too broad to consider for market segmentation purposes. When dividing a group by psychographics, the segment has similar rather than inconsistent values.

When an employee's complaints are not resolved by management, the dissatisfaction felt by that employee could

Spread to other employees. When managers fail to take action in resolving employee complaints, employees express their dissatisfaction to other employees and to customers. What was initially a minor problem can become a major controversy. Unresolved complaints can cost a company money, lower employee morale, and damage the company's image.

Which of the following could be used to encourage employees to communicate their dissatisfaction to management

Suggestion boxes. Management can place suggestion/complaint boxes in areas accessible to employees such as in break areas or near time clocks. Employees should be given opportunities to contribute to a business's success through a complaint process. Contracts are agreements between two or more parties that are legally binding. A strike is a union strategy in which employees cease working until employers meet their demands. Right-to-work laws specify that union membership cannot be required in order to get or keep a job.

Complaints regarding job evaluations could be categorized as complaints about

Supervision/Management. Employees often complain about the management of an organization and the ways in which employees are supervised. Evaluation is the responsibility of management/supervisors. Complaints about employee compensation deal with pay. Complaints about work environments are categorized as physical surroundings complaints. Complaints about coworkers may be job related, not work related, or about the habits of other employees.

Which of the following is a situation in which producers would want to use short channels of distribution:

The market is located close together. If customers are in one general area, a short channel of distribution is effective. If the market is widely dispersed, the producer would need to use longer channels in order to reduce the number of contacts that need to be made. Small order sizes, many potential customers, and inexpensive products indicate the need to use longer channels.

Which of the following is a true statement about selecting employees:

The selection process is controlled by strict legal guidelines. There are numerous laws governing what businesses may and may not do in the process of selecting new employees. For example, testing specific job skills is legal but some forms of testing are not. Employers may ask about a job applicant's educational background and job experience, but they may not ask the applicant's age, race, national origin, or marital status. The employee-selection process does affect employees' success on the job. A good selection process puts employees into jobs for which they have appropriate skills and at which they can, therefore, be successful.

Why is it important to ask job applicants about their training and previous job responsibilities during the interview process?

To determine qualifications. One of the purposes of the interview process is to determine if job applicants have the qualifications to perform the specific job. To determine this, it is important to ask job applicants about their training and previous job responsibilities. This information will indicate their work experience and education background. Businesses often contact references to verify recommendations. Businesses do not ask job applicants about their training and previous job responsibilities to analyze personality types or to establish specifications.

Why is it important for a business to select a target market?

To develop strategies to appeal to customers. Each target market is unique, which means that strategies that are effective with one market might not work with another market. Consequently, businesses need to select the target market before developing specific strategies. For example, if the target market consists of teenagers and young adults, the marketing strategies will be very different than if the target market consists of senior citizens. Once the target market is selected, a business can focus on developing the right strategies. Businesses do not select a target market to organize exclusive sales territories, identify the most appropriate vendors, or prepare detailed promotional reports.

What is the overall purpose of the Americans with Disabilities Act (ADA)?

To make it possible for qualified individuals with disabilities to get and to keep jobs. The ADA protects workers with physical and/or mental disabilities from discrimination. It does not require businesses to screen applicants with physical and/or mental disabilities. In fact, it forbids businesses from asking job applicants about current or previous disabilities and requires businesses to make their facilities accessible to those with disabilities. However, these are part of the provisions of the law, not its overall purpose.

What is the true purpose of taking remedial action?

To motivate employees to perform at established company standards. Employees who obey the rules are rewarded; those who cannot comply are penalized. This is understood by most employees and widely accepted in our society as a legitimate way of ensuring that all employees work toward organizational goals. Providing consistent punishment is a guideline for supervisors to follow when taking remedial action rather than a purpose of taking remedial action. The unacceptable actions of employees provide supervisors ample reason for taking remedial action.

When interviewing job applicants, why is it important to ask open-ended questions?

To obtain in-depth information. To obtain in-depth answers to questions, it is always best to use open-ended questions when interviewing job applicants. An open-ended question is not a type of question that requires a simple "yes" or "no" answer. An example of an open-ended question is, "What do you like best about your current job?" This type of question requires the applicant to provide a detailed explanation. Assumptive questions check for understanding. The asking of open-ended questions usually lengthens the interview process and generates long answers.

Why do businesses routinely screen job applications and résumés?

To set up interviews. Businesses routinely screen the job applications and résumés they receive in order to select the most appropriate candidates to interview for the available positions. They want to make sure that the applicants have the necessary education and experience to do the job before spending time interviewing them. Businesses usually screen the applications and select the most qualified to interview. Businesses develop job descriptions before advertising the job. Businesses do not screen job applications to prepare personnel records, although the applications usually become part of an employee's personnel record after s/he is hired. Businesses do not screen applications to create pay plans.

Why is it important for a business to conduct a situational analysis during the marketing planning process?

To ward off problems. Businesses conduct situational analyses to obtain information about changes or trends that are beginning to develop in the environment or marketplace. This procedure allows businesses to identify changes at an early stage and ward off potential problems. It is important for businesses to understand changes in their external environment in order to adapt and avoid problems. Without this information, businesses may be unprepared to deal with problems that might cause them to lose their competitiveness or even fail. A business would not conduct a situational analysis to identify customers, forecast expenses, or redesign products. However, a business might redesign products after conducting a situational analysis and finding that they were losing their appeal in the marketplace.

Actual procedures used in budgeting depend mainly upon the

Type of business. Different industries require different budgeting strategies. The larger the business, the more complicated is the budgeting process required. The sales budget predicts sales for a specific period. Capital outlay refers to the amount of cash needed at a particular time such as the opening of a new business. The fiscal year is the time period for which the budget is planned.

Which of the following is a demographic characteristic that businesses often use to identify market segments:

Type of household. Many businesses identify market segments based on demographics, which are the physical and social characteristics of the population. One demographic characteristic is the type of household. Today, the traditional household of two parents and their children is in decline. The average household size is decreasing and there are many households of only one or two people. Also, households might include unrelated people, one parent and children, blended families, grandparents and grandchildren, etc. By identifying these various market segments, businesses will be able to understand their different wants and needs. Style of living and personality are psychographic characteristics. Location of population is a geographic characteristic.

Which of the following is a factor that a business should consider when selecting a channel of distribution

Type of product. A business considers several factors when selecting a channel of distribution. One important factor involves the type of product because different channels of distribution are more effective for certain types of products. For example, a direct channel of distribution might work better for perishable products, while an indirect channel would be satisfactory for durable items that have a long shelf life. Businesses do not consider the return process, the size of the sales force, or the credit policy when selecting a channel of distribution.

A new employee has not been coming to work on time since beginning the job a week ago. Which of the following types of remedial action would be most appropriate:

Warning. A warning lets the employee know that s/he is breaking the rules of the business and what the consequences of that behavior are likely to be. It is usually the first step in remedial action. All of the other alternatives are stronger types of remedial action that would not be appropriate in this situation. Demotion is moving the employee to a lower level job. Suspension is requiring the employee to take time off without pay. Dismissal is firing the employee.

Which of the following is a question that an interviewer should ask a job applicant to obtain in-depth information

What activities do you perform in your current job? The interview process allows the business to learn more about the job applicant, so it can make a suitable hiring decision. To obtain more in-depth information about the applicant, the interviewer should ask open-ended questions—questions that require more than a "yes" or "no" answer. Asking applicants about the activities that they perform in their current jobs forces them to respond with more than a yes or a no; therefore, the interviewer is likely to get more in-depth information from applicants. Asking an applicant if s/he has a college degree, how long the applicant has worked for his/her current employer, and when the applicant is available to start work are examples of closed-end questions. Closed-end questions require short, precise answers and do not provide in-depth information.

Businesses develop standards for how employees should do their jobs, which are then used to examine or evaluate

Work performance. Standards of performance are the criteria used to determine the acceptability of an employee's productivity or output, to gauge the employee's work in relation to others, or to evaluate employee efficiency on the job. Other types of standards are used to measure profitability (e.g., profit-and-loss statement), expense control techniques, and communication.