AVSC 1050 Aviation Administration

What disadvantages of a line organization are minimized through the use of a line-and-staff organization?

no managerial support from specialists shortage of experts to advise people along the line

What are some benefits of operating a cooperative? Select all that apply.

0/2 Cooperatives are easy to form. Cooperatives pay different taxes than corporations. Customers are also the owners of the company. Cooperatives are not subject to the same civic laws as corporations.

A community has a farmers market that sells fruits and vegetables. Which of the following people are stakeholders for the farmers market? Select all that apply.

1.5/2.0 A pig farmer in the community >The community's city council >Apple orchard owners within the community >Apple orchard owners in a nearby community

Given a price per unit of two dollars, variable costs per unit of 70 cents, and total fixed cost of 300 dollars, calculate the break-even point.

231 units

It is a good idea to learn about the industry in which you would like to start a small business. A good rule of thumb is to have_____years' experience in a comparable business first.

3

The average speed of broadband in the United States is how many megabits per second?

3 megabits

Employee fraud costs US businesses approximately_____percent of annual revenue.

5

Small businesses account for more than_____percent of the United States' gross domestic product.

50

Approximately what percentage of new jobs generated each year in the United States are created by small businesses?

60-80%

What is an extrinsic reward?

A reward given you by someone else as recognition for good work. Examples include pay raises, praise, and promotions.

What is a job analysis?

A study of what employees do who hold various job titles.

What tells how effectively management is converting the firm's inventory to profits?

Activity Ratios

Which scenario below would cause a clear increase in revenues?

An airline reduces fares and significantly increases its ridership.

What is a union and what is its purpose?

An employee organization whose main goal is representing its members in employee-management negotiation of job-related issues.

What are the steps of the Accounting Cycle in order?

Analyze source documents, Record transactions in journals, Transfer journal entries to ledger, Take a trial balance, Prepare financial statements, Analyze financial statements

What is the fundamental accounting question?

Assets = Liabilities + Owners' equity

What type of insurance would you want if you became unable to work?

Disability

Who solicits orders from retailers and other wholesalers then has the merchandise shipped directly to a buyer?

Drop shippers

Compare and contrast leadership styles. How is enabling different from empowering?

Enabling concerns giving employees education and tools

What is an ERM?

Enterprise risk management

What is necessary for labor to contribute to the building of wealth?

Entrepreneurs

A developing country wishes to create wealth. Which of the following actions is the best thing the government of this country can do to create this wealth?

Increase private ownership of businesses

What type of shipping involves using multiple modes of transportation?

Intermodal Shipping

Three important questions you can ask yourself to gauge ethical behavior include which of the following? Select three.

Is my proposed action legal? Is it balanced? How will it make me feel about myself?

Why is the law of large numbers important to insurance companies?

It helps predict the number of losses

Raising funds through borrowing to increase the firm's rate of return is referred to as

Leverage

What measures the degree to which a company is financed by borrowed funds that it must repay?

Leverage or Debt Ratios

Retirement and pension plans fall under which type of insurance?

Life

In what order does the supply chain move goods or services to the consumer?

Suppliers' plants, Manufacturers, Wholesalers, Retailers, Consumers

What is an intrinsic reward? Select two.

The belief that your work makes a significant contribution to the organization or to society. The personal satisfaction you feel when you perform well and complete goals.

What is human resource management (HRM)?

The process of determining human resource needs and then recruiting, selecting, developing, motivating, evaluating, compensating, and scheduling employees to achieve organizational goals.

What is recruitment?

The set of activities for obtaining the right number of qualified people at the right time. To select those who meet the best needs of the organization.

What does operational planning involve?

setting of work standards and schedules

Shopping goods and services include which of the following?

shoes

What can be considered both an advantage and a disadvantage of choosing to operate as a corporation?

size

Being sensitive to cultures and workers worldwide relates to which element of the business environment?

social environment

A business owner pays taxes on her business income by filing her personal income taxes. She is the only owner. What type of business entity must she be using?

sole proprietorship

What is the brain drain?

the loss of intelligent people to other countries

When does stagflation occur?

economy is slowing but prices are going up

Which of the following is characteristic of compliance-based ethics codes?

encouragement of ethical behavior through increased control

What are some advantages of a matrix-style organization? Select all that apply.

encourages interorganizational cooperation gives managers flexibility

Business' overall goal during the Customer Relationship Era of marketing is which of the following?

enhancing long-term customer loyalty

Which of the following are elements that should be included in a business plan? Select all that apply.

executive summary appendix location analysis marketing plan

Which of the following are elements that should be included in a business plan? Select all that apply.

executive summary location analysis appendix marketing plan

A company has production, marketing, and finance departments. This company has chosen to departmentalize according to...

function

What is the most common source of funding for starting a small business?

funding from personal savings

In which of the following partnerships do all partners assume responsibility for operating the business?

general partnership

Which of the following factors are characteristic of business-to-business marketing but NOT consumer marketing? Select all that apply.

geographically-concentrated markets relatively rational rather than emotional customers customers are relatively large

For which of the following reasons would a country not be considered purely capitalistic?

government lends money to failing businesses

The focus of marketing today is placed on which of the following?

helping the buyer buy

What pricing strategy uses a lot of sales to attract customers?

high-low

Which person below represents a micropreneur?

home-based video producer that has national clients

During the 1980s, business technology also became known as?

information technology information systems

Why is a strong business plan important when beginning a business venture?

it is mandatory for talking with bankers and other investors

Regulation FD makes what provision regarding a company's financial information?

it must be shared with everyone at the same time--not just to a select group of people

What is the most important hurdle to expanding your business to a global market?

lack of knowledge of cultural differences between markets

Sea-freight emissions are_____of those associated with airplanes.

less than half

Which one of the following disadvantages of a sole proprietorship can be alleviated through the operation of a general partnership?

limited financial resources

An individual becomes a partner by investing in a small business. He is liable up to the amount of his investment. This individual must be a

limited partner

Which of the following items are advantages of operating a general partnership? Select all that apply.

longer lifespan shared knowledge & skills

Fire drills are an example of

loss-prevention programs

Supply and demand are concepts primarily associated with which branch of economics?

microeconomics

Which of the following is one of the MOST COMMON reasons individuals decide to start a business?

challenge themselves

What are corporate social initiatives?

charitable donations directly related to a company's competencies

Why do companies utilize storage and distribution warehouses?

Buyers want goods delivered quickly

C corporations differ from S corporations in which of the following ways?

C corporations are double taxed while S corporations are not

These non-deposit-type organizations make short-term loans to borrowers who offer tangible assets as collateral

Commercial finance companies

What is the rate of return a company must earn in order to meet the demands of its lenders and the expectations of its equity holders?

Cost of capital

What is the process of selling accounts receivable for cash?

Factoring

What aspect of electronic retail often causes consumers to give up and go back to brick-and-mortar stores?

Failure to deliver goods on time

Managers have found that it is best to micro-manage nanobots.

False

True or false: if an activity is ethical, it will also be legal.

False

True or false: if an activity is legal, it will also be ethical.

False

True or false: insider trading is limited to sharing financial information to family and friends for the purposes of financial gain.

False

Which of the following is not part of training and development?

Food and recreation services

Which of the following constitutes insourcing?

Foreign companies that move production facilities to the United States

What is the main difference between goals and objectives?

Goals describe long-term accomplishments while objectives describe short-term accomplishments

HMO's, PPO's, and MSA's are all examples of what?

Health care providers

How does GDP indicate the state of the current economy?

Positive growth of the GDP indicates an increase of the economy.

What is the fee that insurance companies charge?

Premium

What are the two types of risk?

Pure risk Speculative risk

Who furnishes racks or shelves full of merchandise to retailers?

Rack jobbers

What are the four characteristics of management information?

Relevance Quality Completeness Timeliness

What is the Pay Equity Act of 1963?

Requires companies to give equal pay to men and women who do the same job. For example, it is against the law to pay a female nurse less than a male nurse unless factors such as seniority, merit pay, or performance incentives are involved.

What term is used to describe the sale of goods and services to consumers for their own use?

Retail sale

What type of loan is backed by collateral?

Secured loan

What term is used to describe adding value by providing fast, friendly service during and after the sale?

Service utility

What is the goal-setting theory as it pertains to management?

Setting ambitious but attainable goals that can motivate workers and improve performance.

How do most entrepreneurs obtain ideas for their business?

They ask questions about common problems and search for answers.

Why are natural disasters a pure risk to business?

They involve no chance for profit

How do marketing intermediaries create efficiency?

They reduce the number of contact exchanges needed between manufacturers and retailers.

It's legal for U.S. companies to scan employee e-mail regularly.

True

The best way to avoid a phishing scam is to never access a website through a link in an e-mail message.

True

True or false: a franchise can be formed as a sole proprietorship, partnership, or corporation.

True

What is job sharing?

Two or more part-time employees share one full-time job.

Which scenario below would cause a clear increase in revenues?

Wrong: A private law firm obtains a large settlement for one of its aviation clients.

An example of a business obtaining primary data includes which of the following?

a car manufacturer obtains surveys regarding a new hybrid vehicle

What is a data warehouse?

a database that stores data on a single subject over a specific period of time

With respect to franchising, what is a coattail effect?

a fellow franchisee's failure negatively impacts your franchise

Which of the following examples illustrates the influence of the "invisible hand"?

a grocery store owner hires individuals in the community, enabling them to have the income to provide the necessities of life

What is a factor of production?

a resource used to create wealth

What is data mining?

a technique for looking for hidden patterns and previously unknown relationships among the data

SCORE is a valuable resource for would-be entrepreneurs. What is SCORE?

a volunteer association that provides education and counsel for would-be entrepreneurs at the cost of only expenses

Given the situations below, which person would be considered a whistleblower?

a worker reports to the supervisor that a co-worker has been using company property for personal gain

Define capitalism.

an economic system in which all or most of the factors of production and distribution are privately owned and operated

An integrity-based code of ethics promotes ethical behavior through what?

an environment supportive of such behavior

What is infoglut?

an overabundance of data

The relationship between price and demand is accurately shown through which of the following statements?

as price increases, demand decreases

Which statement below accurately captures the relationship between price and supply?

as price increases, supply increases

Which of the following are considered goods?

automobiles food

Which type of skill is most important for top management?

conceptual skills

Before setting a price for your product, you should do what in the marketing process?

conduct concept testing

The development of standards to ensure employees are meeting goals and objectives is part of which function of management?

controlling

Successful businesses of the future will be _____.

customer-driven

What is corporate philanthropy?

dimension of social responsibility that includes charitable donations

When the economy appears to be growing too fast, Keynesian theory suggests the government should do what?

reducing spending and increase taxes

What are some of the advantages of operating a limited liability company? Select all that apply.

operating flexibility owners can choose to be taxes as a partnership or corporation

Domestic air carriers sometimes choose to have maintenance on their aircraft performed in foreign countries. This cost-saving technique is an example of

outsourcing

Setting organizational goals and developing strategies to reach those goals are tasks included in which function of management?

planning

PMI is a technique often used when...

problem solving

What is the "invisible hand"?

process that turns self-directed gain into benefits for all

What are the four factors of the marketing mix?

product, price, place, promotion

Which of the following factors greatly influences the growth of a country's gross domestic product?

productivity of the workforce

Fires, accidents, and theft would be covered by _____ insurance.

property

One of the most revolutionary effects computers and the Internet has had on the workplace is . . .

telecommuting

Define productivity.

the amount of output generated given an amount of input

What is the relationship between easiness to start, growth rate, and failure rate of small businesses?

the easiest businesses to start have the least growth and highest failure rate

What major barrier has historically prevented communism from being successful as an economic system?

the government does not know how much to produce

What is the biggest difference between capitalism and socialism?

the government owns most basic businesses in a socialist economy but not in a capitalist economy

What is the primary purpose of market segmentation?

to effectively manage target market areas

What is the purpose of Financial Accounting?

to provide information and analysis to people primarily outside the organization

A general partner and a sole proprietor share a common disadvantage. What is this disadvantage?

unlimited liability