Principles of Business Final

Which of the following situations involves finding an alternative resource to use in place of a nonrenewable natural resource __________.

Powering a motor vehicle with biodiesel instead of gasoline.

Identify the term that best represents marketing's role in society.

Problem solver

During the Industrial Revolution, the factory system caused ______.

Production costs to decrease. During the Industrial Revolution, the mass production of standardized goods (usually in factories) became common

What is an example of a marketing activity?

Promoting

Franco's Bread Shop is introducing a new type of sandwich bread to the community this week. Which of the following describes the business activity the bread shop is likely involved in ____________.

Promoting the new bread through advertising.

Businesses can show their social responsibility by contributing to __________.

Public interests

Businesses can protect themselves from the risk associated with lost shipments by _________.

Purchasing transportation insurance

Managing information regarding copyrights and trademarks helps a company to preserve its ________.

identity

What is one way that the trend towards protecting the environment has a negative effect on many businesses?

increases the cost

A manager studies the business's previous sales statistics as well as the sales forecast before making purchasing decisions. What type of resource is the manager using?

information

A clothing manufacturer checks one pair of pants out of every shipment to ensure the quality of its product. This process is known as quality ________.

inspection

Because operations managers control so much of a business's money, they must focus on ________.

keeping costs low

Running out of inventory can result in ______.

lost sales

Formal relationships and a distinctive chain of command are characteristics of the _________ organizational business structure.

mechanistic

Which of the following is an environmental factor that affects the performance of businesses that market products on a global level __________.

political risk

A main reason that environmental scanning is important is so that businesses can be aware of _______.

potential threats

Which of the following will foster a business's ability to adapt to changing markets?

proactive management

One reason a physicians' practice might form a partnership as an LLP is to

protect innocent partners from the malpractice of another partner

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

providing laptop computers

A business should conduct environmental scans on a continuous basis so that it can ________.

respond to opportunities and threats quickly.

Which of the following is a measure of how well a business generates cash flow?

return on capital

A business is planning a sale and needs to know what sales were for a particular weekend in the previous year. Which of the following accounting records would provide this information?

sales journal

One reason that businesses use a matrix organizational design is to ________.

share human resources.

Online chats, forums, and communities that enable businesses to learn about the wants and needs of their worldwide target market have created a new form of

social relationships

A manager who helps an employee count the money in a cash drawer and prepare a bank deposit is demonstrating _________.

technical skills

Which of the following factors has aided the most in creating a global business environment?

technology

The finance function would definitely be involved in a decision regarding _____.

New business projects and strategies

One way that competition benefits business is by encouraging the creation of _________.

New companies

A country with a weak currency value tends to _____________.

Decrease its imports and increase its exports.

Three primary factors that affect the organizational structure of a business include interpersonal relationships, tasks, and ________.

Authority

Accounting is distinct from finance because its main focus is on _________.

Record keeping activities

Which of the following is a reason that the role of human-resources management is changing?

There is greater diversity in the workforce

What is one reason why the federal government awards patents to businesses that have invented new products or manufacturing processes

To encourage research

In order for an accounting system to be useful to the business, the accounting information it contains must be _______.

accurate and up to date

A wholesale distributor would like to track its customers geographically. Which software application would be most effective?

database

In economics, the term capital goods describes__________

Buildings and Equipment

How does appropriate information management affect a business's relationship with its customers?

Businesses serve customers more effectively

Why does the government set and collect taxes?

To help pay the expenses of government

Each purchase strengthens the economy by encouraging _________.

Trade

A nation that exports more than it imports maintains a ____________.

Trade surplus

Contractual agreements such as guarantees, surety bonds, and leases are examples of handling business risks through _______________.

Transfer

A manufacturer is a type of business that ______.

Turns raw goods into useful products

Which of the following words best describes a want?

Unlimited, changing, and competing

Businesses that successfully adapt to current market situations often realize that ________.

Change is an opportunity.

A business's philanthropic responsibility involves its contributions to _____.

Charity

The law that requires businesses to hire, train, transfer, and promote employees without regard to race, color, gender, religion, or nationality is the _________ act.

Civil Rights

Jaron, the district technology coordinator for Abington City Schools, is responsible for purchasing new computers for the district. He recently sent out a request for price quotes to five different computer companies, and he is waiting to hear what the various suppliers' proposed prices will be. Jaron is conducting ______.

Competitive bidding

A student purchased a laptop to use for homework assignments. In economic terms, this computer would be classified as a ________.

Consumer goods and services are those that are purchased and used by consumers

The ultimate goal of all economic activity is to__________.

Consumption, aka the using of goods and services.

The overall purpose of accounting is to _____.

Control the finances of the business.

One reason an existing business might develop a company web site is to __________.

Create a new revenue source.

One way that competition helps to build a prosperous society is by __________.

Creating new jobs

What type of property is a business protecting when it registers its trademark?

Intellectual

Which of the following financial institutions was established after World War II to facilitate global economic growth?

International Monetary Fund (IMF)

Which is a public good that is provided by the government?

Interstate Highways

Why is production important to businesses?

It creates goods and services businesses can sell

A characteristic of human wants is that they are ____________.

Unlimited.

What is the government doing when it buys wheat to keep the price high enough for farmers to make a profit?

Using price supports. Price supports are assistance by government to maintain the price of a good or service to enable producers to earn a profit.

What are the 3 basic economic questions?

What products will be produced, how will products be produced, and how will products be allocated

One of the freedoms provided to individuals by the private enterprise system is the freedom to choose __________.

Where they will work.

In an overall sense, where does marketing occur?

Wherever customers are

Which of the following is a detail that a buyer should know prior to placing an order for raw materials?

Whether the company has storage space for the raw materials

What determines whether an economic product is an industrial product or a consumer product?

Who buys and uses the product. Industrial is bought for resale, and consumer is bought for use.

If a good or service is scarce, consumers will usually be _____________.

Willing to pay good money to get it.

Most businesses put their greatest competitive efforts into competing __________.

With direct competitors

Over the next few years, members of Generation X and Generation Y are expected to fill many job positions vacated by retiring Baby Boomers. This is an example of a change in ___________.

Workforce Demographics

Which of the following is an example of a demographic trend?

aging population

A bank denies a business owner's application for credit saying, "We feel that you would be unable to make the monthly payments because of your other debts." What financial report did the bank review?

balance sheet

The growth of e-commerce is changing the way companies do business by allowing them to ______.

be accessible to customers at all times

Jake wanted to run his own business but was unsure that he had adequate business skills to be successful. Which type of business would give Jake the help he needs?

business format franchise

Which of the following is a key component of managing working capital?

cash conversion cycle

To maintain its current customer base and attract new markets, the KMV Company lowered the prices of some of its products. What external factor most likely influenced this action?

changes in consumer spending

Levels of inflation and unemployment are factors that affect __________ in the world market.

competition

Carefully selecting goods or services to sell is an example of handling business risks by _______________ the risk.

controlling

One of the benefits of production to consumers is that production ________.

creates form utility

Which of the following factors affects society's basic values and behaviors that influence their buying decisions?

cultural

What type of trend are businesses considering when they analyze where customers live and their ethnic backgrounds?

demographic

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

directing

Changes in the market that cause prices to go up or down, products to change, and businesses to succeed or fail are examples of __________ risks.

economic

Labor-union negotiations are part of which HR management activity?

employee relations

Which of the following factors affecting the business environment is represented by the business's location?

environmental

Which of the following is a potential problem in market economies?

financial loss

In a communist command economy who decides how the economic questions will be answered?

government

What management function is being described in the following situation: David Thomas, a top-level manager, identifies jobs to be performed, assigns responsibility for them, establishes departments to handle the jobs, and determines how many and which employees mid-level managers will supervise.

organizing

How does the finance function relate to company spending?

It plans and controls spending

Why is a good accounting system important to a business?

It shows the business how it is doing

Overall, what does marketing allow us to do?

Live our daily lives

One reason that some U.S. businesses have moved some of their operations to foreign countries is to ___________.

Lower labor costs

What government action is most likely to stimulate the economy?

Lowering tax rates

Appropriate information management saves businesses time and money by _______.

Maintaining higher levels of productivity

Government owns the basic means of production but there is some private ownership of businesses under ________

socialism

Which change provides the most time utility for a consumer?

staying open for business on the weekend

An important factor that has a significant effect on the general business environment is ______.

technology

Consumers are typically most willing to pay more for goods and services that bring them greater _____________.

Satisfaction

To discover a product's level of utility, marketers measure the consumer's __________.

Satisfaction

Which of the following is an example of nonverbal communication that might have a different meaning to business people in other parts of the world?

Shaking hands

Which of the following is a trend in information management?

...Increased compliance laws and regulations

Annika, the purchasing specialist for Dottie's Donut Shop, just located a new, less expensive sugar supplier. Dottie does not plan to lower donut prices. If Annika buys the shop's sugar from this cheaper supplier, what is likely to happen?

the profit margin for donuts will increase

Lack of economic growth is a major problem for __________ economic systems.

traditional

Efficient production enables businesses to ______.

turn out the most products at the least cost

Jeremiah purchases sterling silver necklaces and bracelets from Native American artisans and sells the items to jewelry stores and gift shops. What kind of buyer is Jeremiah?

wholesale

Why should a business practice good ethics?

An ethical business contributes toward its own success.

According to the marketing concept, which option demonstrates customer orientation?

Finding out what a buyer wants

Which of the following is a reason that a U.S. company would decide to offer its products in other countries?

To expand to new, untapped markets

An American businessperson in London was offered a "cuppa" by the company's receptionist. The business person did not know that the receptionist was offering a cup of tea. This is an example of _________.

A language barrier

One way in which many businesses demonstrate their social responsibility toward employees is by providing them with __________.

A safe working environment

What role does utility play in the implementation of the marketing concept?

A satisfaction gauge

The U.S. produces widgets faster and cheaper than Switzerland. In this example, the U.S. has an ____________ advantage.

Absolute

TeJuan's Fishing Shack demonstrates effective information management by _________.

Accessing a list of fishing equipment appropriate for a particular customer.

Changing a good's form involves which of the following _________.

Adding a new feature to the good. Changing a good's form involves adding a new feature to the good.

Which of the following is a benefit of international trade?

An improved standard of living.

Management decides to hold its annual meeting in one U.S. city rather than another because of crime in that city. This is an example of __________ the risk.

Avoiding

When marketers provide information about an available product, consumers are more likely to _______.

Buy the product.

How does marketing-research data help a business's production planning?

By identifying consumers' needs and wants

Which of the following is an example of increased financial risk for a company with poor business ethics?

Decreased company value

In what way might a human resources manager be involved in employee benefits?

Determining eligibility and costs of benefits.

After a company's training needs are determined, what is the next step in training and development?

Determining what training resources are available

Which of the following are examples of middle-management job titles?

District manager, department head, and regional sales manager

Which of the following is a factor that would encourage businesses to start a business at a particular location?

Easy access to natural resources.

Operations managers have two main goals in mind—efficiency (keeping costs low) and _____.

Effectiveness or keeping customers happy.

Companies that operate at the international level should be aware of political factors that affect trade, such as civil unrest or _________.

Embargos

Wendy's sells the right to operate its restaurants to individuals who meet the company's criteria. The arrangement between Wendy's and these individuals is an example of ____________.

Franchising

The way in which an economic system answers the basic economic questions depends upon the country's ________.

Government

What is a quality of a monopoly?

High prices and low production

Which of the following economic resources is responsible for combining the other resources to produce goods and services ___________.

Human Resource

Which of the following occurs when the supply of individuals who are able and willing to work diminishes _______________.

Human resources become limited. The supply of people who are willing to work diminishes; therefore, human resources become limited

Which of the following would be done first in an environmental scan?

Identifying participants and responsibilities

Which of the following is the best action for businesses to take in order to adapt to changing markets?

Implement innovative strategies and ideas

A popular product is said to be _______.

In demand

Producers respond to consumers' positive economic votes by _________.

Increasing production

Which activities are likely to increase a firm's profit?

Increasing sales and decreasing expenses.

Private enterprise is based on the idea that everyone is better served when ___________.

Individuals are free to set their own goals.

One internal factor that affects the business environment is ________.

Management styles

Information management can be a challenge because ________

Many people do not understand what it is

Using a stream to supply water to a field in order to grow crops is an example of using _________.

Natural resources

A business that fails to protect its employees from necessary risk or hazards on the job may be sued for _______.

Negligence

When meeting with businesspeople from other countries, it is important to understand social differences, such as bowing, handshaking, and spatial comfort, which are often called ___________.

Non-verbal ques

Offering high quality, large assortments, and free shipping are examples of ________.

Nonprice competition

With Rosita's pizza shop, financial analysis is used to _____________.

Obtain funding for supplies

What demonstrates the interrelationship among primary business activities?

One business activity changes, so the others must adjust in response.

One way that technological innovation has changed business is by decreasing the use of _______.

Paper forms.

John, Robert, and Charles were college friends who wanted to start a business. John has creative ability, Robert's expertise is selling, and Charles' expertise is management. However, each has limited capital. The ideal business ownership for these young men is a __________.

Partnership

In the late 1800s, market domination by a small number of extremely large, powerful companies led to the ________.

Passage of antitrust laws. In the late 1800s (during the Railroad Era), the nation followed a laissez-faire system of governance. This means that the government did not interfere with the economy. Instead, it allowed businesses to do what they wanted and needed to do.

What is a disadvantage of private enterprise?

Periods of unemployment

Alex owns a guitar, several books, a car, and a telescope. Alex's possessions are examples of ___________.

Private property

One reason why many small businesses develop an organizational design that requires a board of directors is because a board usually _____________.

Provides experience that increases the business's credibility.

Government can prevent unqualified persons from operating a business by ____________.

Refusing to grant them a license.

One reason why it is important for businesses to identify and respond to current business trends is to?

Remain competitive

An advantage to a business of filing Chapter 11 bankruptcy is that the process allows the business to ________.

Reorganize

Which of the following is a way to evaluate supplier performance after the purchased goods or services have been delivered?

Review the invoice

If expenses are greater than income, there's no _________.

Reward

As the use of information-management systems continues to grow, it is important for businesses to be concerned with their customers ________.

Rights to privacy

Why is routing an important production activity?

Routing establishes the production path of inputs

Complying with environmental laws is part of which operations activity?

Safety and security

Retailing takes place whenever goods are __________.

Sold to the ultimate consumer.

Gross profit shows business owners the difference between what they've __________.

Spent and received

Which of the following is a situation that might make business people from other countries feel uncomfortable and impact their ability to conduct business?

Standing very close to others during conversations. In some countries, it is socially accepted and appropriate for businesspeople to stand very close together.

To reduce the time, effort, and cost needed to produce its Model T cars, the Ford Motor Company developed _________.

The assembly line

A socially responsible business will attempt to give customers ______________.

The best products at the best prices.

Human resources management is demonstrated by __________.

The business taking care of the responsibilities associated with having employees.

Which of the following examples illustrates how environmental factors are interrelated?

The economy affects what competitors are doing.

Which of the following situations would most likely indicate the need to adapt to changes in the business environment?

The supply of materials used in manufacturing a product has decreased.

Which of the following is a true statement about business ethics and the law?

The two are not the same thing, but they do overlap. Business ethics and law are not the same thing—they are like two overlapping circles

Human resources are a company's most important resources because _______.

They control all other company resources.

Why are entrepreneurs important in a private enterprise system?

They encourage the development of new products.

A business suddenly moves its operations to a new town, leaving its current employees jobless. Its reason for taking this action, which some consider unethical, might be that the action?

is not illegal

In recent years, the employment of __________ workers has significantly increased.

knowledge

Computer database programs make it easier for businesses to manage __________.

large amounts of related data

ABC Specialty Wear is the only company that has written permission to use a national football team's logo on its sportswear. This is an example of a

licensing agreement