Unit 4 Study Guide Business Essentials

The process of keeping the financial records of a business is known as: A. Accounting B. Controlling C. Financing D. Bookkeeping

A. Accounting

Which form of technology creates tangible prototypes and products? A. 3D printing B. Smartphones C. Social Media D. Computer-aided design

A. 3D printing

A creditor is most likely to examine a business's financial accounting records if the business is: A. Applying for a bank loan B. Selecting a new market C. Using cash accounting D. Complying with regulations

A. Applying for a bank loan

A clothing manufacturer builds quality into its operating system, placing responsibility on each employee. This process is known as quality: A. Assurance B. Inspection C. Guarantee D. Delivery

A. Assurance

Of the following, which is a durable good: A. Coffee mug B. Insect repellent C. Hamburger D. Lip balm

A. Coffee mug

Which of the following is the most common reason for businesses to search for ways to make their products better and cheaper: A. Competition B. Publicity C. E-commerce D. Service marketing

A. Competition

Which of the following influences the process of determining price: A. Customers' perception of value B. Publicity C. Purchase location D. Sales promotion

A. Customers' perception of value

The operations function consists mainly of activities that are performed on a ___ basis.: A. Daily B. Weekly C. Monthly D. Yearly

A. Daily

Operations managers have two main goals in mind- efficiency (keeping costs low) and: A. Effectiveness (keeping customers satisfied) B. Reputation (keeping up the business's good name) C. Productivity (keeping business running fast) D.Legality (keeping the business in good standing with the law)

A. Effectiveness (keeping customers satisfied)

Selling shares in the company to raise money for the a new venture is referred to as ____ funding. A. Equity B. Dividend C. Debt D. Accounts payable

A. Equity

When return on capital is positive, the company is: A. Growing in value B. Losing value C. Low on cash D. Paying out dividends

A. Growing in value

The difference between service provider's and manufacturer's operating activities is that service providers produce ___ outputs. A. Intangible B. Tangible C. Expensive D. Useful

A. Intangible

Because operations managers control so much of a business's money, they must focus on: A. Keeping costs low B. Hiring the best employees C. Creating effective advertising campaigns D. Generating publicity

A. Keeping costs low

Deciding how to transport goods is part of which operations activity? A. Logistics B. Scheduling C. Safety and security D. Maintenance and repairs

A. Logistics

Running out of inventory can result in: A. Lost sales B. Higher taxes C. Higher productivity D. More satisfied customers

A. Lost sales

Which operations activity is also referred to as procurement?: A. Purchasing B. Inventory control C. Quality control D. Logistics

A. Purchasing

Accounting is distinct from finance because its main focus is on A. Recordkeeping activities B. Money management decisions C. Administration of assets D. Acquisition of funds

A. Recordkeeping activities

Complying with environmental laws is part of which operations activity? A. Safety and security B. Logistics C. Purchasing D. Inventory control

A. Safety and security

The cash conversion cycle should be: A. At equilibrium B. As short as possible C. As long as possible D. On an upward trend

B. As short as possible

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?: A. Budget B. Balance sheet C. Income Statement D. Operating budget

B. Balance sheet

In the marketing concept, whose point of view matters most?: A. Seller's B. Buyer's C. Marketer's D. Planner's

B. Buyer's

Which of the following financial reports provides estimates of when, where, and how much money will come into and out of a business next year? A. Balance Sheet B. Cash Flow statement C. Income Statement D. Bank Statement

B. Cash Flow statement

Which of the following activities is an aspect of marketing a service: A. Finding out customers' favorite coffee flavors B. Determining how much to charge for a haircut C. Offering a new, improved cell phone D. Advertising the state of Michigan on television

B. Determining how much to charge for a haircut

To keep communication flowing with other departments, the finance function depends on: A. Accounts receivable B. Information systems C. Marketing D. Production

B. Information systems

Finance is the business function that involves managing A. Information B. Money C. Marketing D. Production

B. Money

Which of the following is an example of communicating with customers: A. Creating a new product B. Sponsoring a charity event C. Choosing a store to distribute products D. Developing a marketing plan

B. Sponsoring a charity event

Which of the following makes comparisons of the financial conditions at multiple organizations possible: A. Bookkeeping B. Source documents C. Accounting standards D. Trial balance

C. Accounting standards

Without marketing, producers and customers would be: A. In close communication with each other B. Highly dependent on advertising agencies C. Disconnected from each other D. Exposed to many new and improved products

C. Disconnected from each other

According to the marketing concept, which option demonstrates customer's orientation?: A. Convincing a buyer to buy B. Researching a firm's competitors C. Finding out what a buyer wants D. Advertising the features of a product

C. Finding out what a buyer wants

The finance function would definitely be involved in a decision regarding A. Public relations and publicity B. Personal selling C. New business projects and strategies D. Hiring

C. New business projects and strategies

Checks, receipts, invoices, and purchase orders are examples of: A. Financial statements B. Department ledgers C. Source documents D. Accounting standards

C. Source documents

What type of accounting method would most likely be used by a large business that has a large number of outstanding loans and customers charge accounts?: A. Check method B. Cash method C. COD method D. Accrual method

D. Accrual method

Which of the following is a true statement: A. Bookkeeping is the same as accounting. B. Bookkeeping does not use computers. C. Bookkeeping is limited to information on sales. D. Bookkeeping records business transactions.

D. Bookkeeping records business transactions.

Determining which projects a business should invest in is known as A. Return on capital B. The cash conversion cycle C. Capital structuring D. Capital budgeting

D. Capital budgeting

What type of accounting method would most likely be used by a small business owner who does not offer credit?: A. Check method B. Accrual method C. COD method D. Cash method

D. Cash method

Marketing links producers to: A. Distributors B. Retailers C. Marketers D. Customers

D. Customers

According to the marketing concept, keeping company goals in mind means: A. Making product prices low. B. Containing marketing costs C. Putting marketing second to other company goals D. Maintaining the firm's purpose

D. Maintaining the firm's purpose

The goals of the finance function are to ensure profitability and: A. Advertise products B. Manufacture raw materials C. Give out information D. Reduce risks

D. Reduce risks

Which of the following is a measure of how well a business generates cash flow: A. Accounts receivable B. Capital structure C. Accounts payable D. Return on capital

D. Return on capital

Accounting records for a business show that the week's total sales revenues were $125,000. Cash sales accounted for $50,000 and credit sales, $75,000. This is an example of: A. Classifying financial information B. The cash accounting method C. An income statement D. The accrual method of accounting

D. The accrual method of accounting