BA 101 Second Midterm
Which are considered disadvantages of incorporating?
-Extensive paperwork -Initial Cost -Double Taxation
Why should you create a business plan?
-A business plan is like a road map that serves as a guide through unfamiliar and potentially dangerous territory. -To attract investors and raise capital -Although creating a business plan does not guarantee success it does increase your chances of succeeding.
Select the characteristics of an entrepreneurial team that will be developing and marketing a new product.
-A group of experienced people -Each from different areas of business -Members have complementary skills and are creative
Which statements are correct about banking?
-Banking is now a global industry. -Issues around the world can influence banking on the local level.
What are some of the disadvantages of a corporation?
-Cost of forming a corporation -Double taxation
To calculate the Current Ratio, you divide _____by ______
-Current Assets -Current Liabilities
Needs for operating funds include ______. (Select all that apply)
-acquiring needed inventory -making capital expenditures -controlling credit operations
As a function of financial management, financial managers must understand tax regulations because ______. (Select all that apply)
-businesses want to minimize taxes -they must consider the tax implications of major decisions
Advantages of using a credit card in small business financing include that:
-cards are accepted in many places -they save time
Determinants of how much money a firm should borrow include:
-cash flow forecasts -how quickly they can generate funds using the borrowed cash
Which three activities are part of the function of accounting?
-classifying financial transactions -interpreting financial transactions -recording financial transactions
The goal of operations management is to
-create a good experience for the customer -keep operations running efficiently
Among the hurdles small businesses must overcome in starting to operate globally are:
-difficulty finding financing -understanding cultural differences -bureaucratic paperwork
Examples of a problem solved by operations management planning as it relates to manufacturing include:
-facility location -inventory control
Telecommuting increases _____ but reduces ____
-flexibility -Collaboration
In terms of operating flexibility, what are three things that LLCs are not required to do?
-hold annual meetings -file written resolutions -keep minutes
Because of the difficulty in ending a partnership, decisions regarding which two areas should be spelled out in a partnership agreement?
-how to distribute assets -when a partner can retire
Today the World Bank lends most of its money to developing nations to ______. (Select all that apply)
-improve their productivity -raise their standard of living -improve their quality of life
Because of ____ , ____ more flexibility in choice of business location has increased while allowing firms to remain competitive.
-information -technology
The attributes of a conventional corporation include that:
-it is a legal entity -corporate liability is separate from owners -it is state chartered
It is better to go to banks instead of family and friends for business loans because ______. (Select all that apply)
-loans from family can hurt family relationships -banks can assist the business in analyzing problems
All organizations require the following:
-planning -capital -information management
During the recent financial collapse, financial managers failed to do their job effectively because of:
-poor investment decisions -risky financial decisions
Since entrepreneurs can't compete with larger firms' pay and benefits, what are three ways they can motivate employees?
-provide more challenging opportunities to learn -maintain good employee relations -be respectful of employees' opinions
Industrial robots have completely changed manufacturing because they:
-reduce costs -improve productivity -can work 24/7 with great precision
Which four institutions are members of the U.S. banking system?
-savings and loans -commercial banks -credit unions -nonbanks that offer financial services
Uses of sensors to control manufacturing processes include:
-the measurement of the thickness of material -measuring humidity
If a company has $6 million in total debt and $12 million in total owners' equity, what is their Debt-to-Equity Ratio?
0.5
The area of focus in Opportunity Analysis is
1- identifying possible niches an entrepreneurial business can occupy profitably 2- determining how attractive an industry is overall as a "home" for a new business
According to the Global Entrepreneurship Monitor (GEM) 2016 U.S Report, there is an estimate of how many entrepreneurs in the United States?
25 million
An additive manufacturing process that creates a product one layer at a time using a nozzle similar to those in inkjet printers is:
3d Printing
This is Practice round
4
Which statement about a falling dollar value in the global market is correct?
A falling dollar value means you cannot buy as many goods and services in the global market.
Which of the following is an advantage of an LLC?
Limited liability Single taxation Control over business decisions
List the steps in the accounting cycle from beginning to end.
Analyze Source Documents Record Transactions Transfer journal entries Take a trial balance Prepare financial statements Analyze Financial statements
A yearly statement of the financial condition, progress, and expectations of the firm is a(n)
Annual Report
The balance sheet must always
Balance
Common Stock shows up on the
Balance Sheet
Which of these are centers that offer new businesses in the critical stage of early development low-cost offices with basic services such as accounting, legal advice, and secretarial help?
Business incubators
It's possible for a business to increase its sales and profits yet still suffer _____ flow problems.
Cash
The acronym for using computers to design products is referred to as
CAD
One difference between leaders and managers is that leaders ___ , and managers ___
Coach, Direct
Which of the following is NOT correct about telecommuting?
Companies such as Yahoo and IBM promote telecommuting
According to a 2016 Wall Street Journal article, 92% of Americans prefer to pay with ----
Credit Cards
What form of financing takes place when the merchant accepts payment immediately from the bank and the customer agrees to repay the bank?
Credit cards
A computerized system that electronically performs financial transactions such as making purchases, paying bills, and receiving paychecks is called a(n) -----
Electronic funds transfer (EFT) system
______ refers to accepting the risk of starting and running a business.
Entrepreneurship
True or false: Partnerships are less likely to survive than sole proprietorships.
False
When it comes to variable costs, the more you make, the smaller the cost.
False
When the Federal Reserve sells government bonds, money flows into the economy from the Fed.
False
An independent agency of the U.S. government that insures bank deposits is called the ______.
Federal Deposit Insurance Corporation
The economic condition that results from a continual rise in prices, or what some people call "too much money chasing too few goods" is ---
Inflation
Choose the correct order of steps in the production process.
Inputs, production control, outputs
What role of the Federal Reserve has been cited as contributing to the banking crisis of 2008?
It kept the cost of borrowing too low.
The _____-_____-_____ inventory method is designed to keep a minimum of parts, supplies, and other materials on hand just in time to go on the assembly line.
Just-In-Time
is the debt claims against the stuff the organization controls.
Liabilities
---- ratios measure a company's ability to turn assets into cash to pay its short-term debt.
Liquidity
The current ratio is an example of a(n) ---- ratio that measures a company's ability to turn assets into cash to pay its short-term debts.
Liquidity
Money that can be accessed quickly and easily (coins, paper money, checks)
M1
A computer-based operations management system that uses sales forecasts to make sure that needed parts and materials are available at the right time and place is referred to as ______.
MRP
Overall company quality is outlined by the standards set by the ______ National Quality Award
Malcolm Baldrige
As per usual I will calculate the number of bikes I want and need to sell by
Multiplying my Forecast Demand with my Market Share
Is it more common for a firm to fail due to lack of sales or poor financial management?
Poor financial management
The goal of the Federal Reserve when buying and selling U.S. government bonds is ----
Regulating the money supply
What is NOT correct about production process?
The production process is strictly continuous .
Measuring a firm's leverage ratios against past performance and with companies operating in the same industry establishes a better understanding of potential risk and how debt and equity is being used.
True
One of the most common Leverage Ratios is the Debt-to-Equity Ratio
True
Operations management includes follow-up services with customers.
True
Owners of a sole proprietorship have full control of the business with minimal administration.
True
Sole Proprietorship is simple, quick and affordable to start.
True
The death of a partner, voluntary withdrawal from the partnership, and a preplanned agreement are all characteristics limiting the life of a partnership.
True
The economy typically experiences deflation during tough economic times such as during a recession.
True
After calculating the quantity of bikes I have to sell (and perhaps adjusting my retail price), my next step is
Using the Media Channels information from Market Information to make a decision about how much to allocate to each category in Advertising and PR
A major problem during the Great Depression created by a weak banking system was ______.
a run on and closure of many banks
Recording, classifying, summarizing, and interpreting financial events in an organization is referred to as ______.
accounting
What is considered to be the "language of business"?
accounting
The ratios that measure the effectiveness of a firm's management in turning over inventory are called ______.
activity ratios
Understanding where to locate your business, who your target market is, and how to reach them, can be accomplished through
an inexpensive market research study
The first step in the accounting cycle is to ______.
analyze source documents
Items of value owned by a firm are called ______.
assets
Why can loans obtained from families and friends be problematic?
because all parties may not understand cash flow
In 2019, online retail sales reached over $365 ____, or approximately _____ percent of all retail sales.
billion, 12
Open-market operations consist of the buying and selling of government
bonds
Low discount rates encourage consumers to
borrow money
The ability to read, understand, and analyze accounting reports and financial statements is critical in understanding ______.
business operations
Mark recently started a small consulting firm. He is drafting a detailed written statement that describes the nature of the business, the target market, the advantages the business will have over competition, and the resources and qualifications of the owner(s). Mark is writing a(n)
business plan
A market consists of consumers with unsatisfied wants and needs who have both resources and the willingness to:
buy
In addition to the articles of incorporation, a corporation has _____, which describe how the firm is to be operated from both legal and managerial points of view.
bylaws
A firm that makes a major investment in a long-term asset has made a(n) ----- expenditure.
capital
Major investments in either tangible long-term assets such as land, or intangible assets such as patents are considered to be ______ expenditures.
capital
The statement of cash flows is a financial statement that shows ______.
cash receipts and disbursements
Tremendous career opportunities exist in operations management as manufacturing and service companies attempt to remain ----- in the global market.
competitive
An accountant's time is freed up to do more important tasks such as financial analysis due to the assistance provided by using ______.
computerized accounting programs
When producers, consumers, or workers with similar needs pool their resources for mutual gain, they start a(n):
cooperative
A state-chartered legal entity with authority to act and have liability separate from its owners is a:
corporation
During tough economic times, customers are happy when firms extend for ----- purchases.
credit
A music video requires three elements - a set, dance, and costumes to be produced. A set can be designed and completed in 3 weeks. Dancers and choreography can be selected and designed in 6 weeks. Costumes need 2 weeks to be made. Costumes can only be made after a set is completed. The critical path is therefore
dancers and choreography
A firm raising funds through various forms of borrowing with the intent to pay it back is using ----- financing.
debt
A company that takes out a loan from a bank is using which type of financing?
debt financing
Borrowing money the company has a legal obligation to repay is ______.
debt financing
In accounting, liabilities refer to ______.
debts a business owes to others
---- is when prices go down because of a surplus of goods and services compared to money.
deflation
The World Bank is responsible for financing ______.
economic development
In a(n) ----- funds transfer system, transactions are sent directly from one computer to another.
electronic
Functions of financial management do NOT include ______.
ensuring employees are paid fairly
A corporation is a legal _____ with authority to act and have liability separate from its owners.
entity
Being self-directed, self-nurturing, action-oriented, and tolerant of uncertainty are all considered characteristics of a(n):
entrepreneur
A(n) ______ team is a group of experienced people from different areas of business who join together to form a managerial team with the skills needed to develop, make, and market a new product.
entrepreneurial
Individuals who possess such attributes as being self-directed, action-oriented, and tolerant of uncertainty can become successful ______ like Bill Gates and Steve Jobs.
entrepreneurs
Many _____ use their time, money, and energy to turn their passions into sustainable businesses. They are comfortable being their own bosses and are not afraid of failure.
entrepreneurs
The section of the business plan that is designed to initially captivate and energize a potential financial investor would be the
executive summary.
A type of problem that operations management planning helps to solve as it relates to manufacturing is:
facility layout
The physical arrangement of resources in the production process refers to:
facility layout
The term ---- , ----- means selecting a geographic location for a firm's operations.
facility, location
A financial institution or commercial bank that purchases a business' accounts receivable at a discount and then keeps what they collect is a(n) ______.
factor
Some causes of small-business ______ include underpricing or overpricing goods or services, starting with too little capital, going into business without first learning something about the industry or market, and underestimating how much time it will take to build a market.
failure
In any business, funds come into and go out of a business. What business function acquires funds for the firm and then manages those funds on a day-to-day basis?
finance
In financial planning, what is the process in which a firm periodically compares its actual revenues, costs, and expenses, with its budget?
financial control
Companies sometimes spend millions to move location:
for proximity to customers
Place the three steps in the financial planning process in order from beginning to end with the first step at the top.
forecasting the firm's financial needs developing budgets establishing financial controls
Many minority business owners prefer a(n) ______ because it offers business connections and support.
franchise
The right to use a specific business' name and sell its products or services in a given territory is a(n) _____ agreement.
franchise
Finance is the function of acquiring and management of ______.
funds
A demand deposit (checking account) is known as that because ______.
funds may be withdrawn at any time by its owner
A partnership where all owners share in operating the business and in assuming unlimited liability for the business's debts is a:
general partnership
Banking has to be seen today as ______.
global in nature
Banking is not just a domestic function anymore since it is influenced by ---- issues.
global, international, or world
What are the three main factors addressed in a business plan?
goals, plan, metrics for success
Open-market operations consist of the buying and selling of ______.
government bonds
What inventory management procedure helps a firm to control inventory costs?
implementing a just-in-time inventory control method
What effect has robotics had on manufacturing?
improved efficiency
Which financial statement shows a firm's bottom line—its profit (or loss) after costs, expenses, and taxes for a specific period?
income statement
Firms will leverage (raise needed funds through borrowing) because it will ______.
increase a firm's rate of return on ownership's investment
The amount of goods and services you can buy with a dollar in the global market ______.
increases with a rising dollar value
The expansion and development of the Internet has sprouted a world of small web-based businesses. This, among other reasons, may explain why online sales are rapidly:
increasing
According to a recent study, offering low-cost offices with basic services to new businesses in the early stages of development results in an 87% success rate of ____ graduates.
incubator
The saying "too much money chasing too few goods," is used to refer to ______.
inflation
Using an Internet-focused strategy, operations managers are outsourcing design, production, and shipping to other firms. This process is called a(n):
inter-firm process
Bonds have to be paid back plus
interest
The discount rate is the ______.
interest rate that the Federal Reserve charges for loans to member banks
Becoming a(n) ___ is one of the best ways to learn about how to run a business.
intern
Using less human effort, less manufacturing space, less investment in tools, and less engineering time is the basic premise of ______.
lean manufacturing
The primary users of government and nonprofit accounting information are ______.
legislative bodies special interest groups taxpayers
When doing business internationally, a promise by a bank to pay the seller a given amount if certain conditions are met is a __________.
letter of credit
In international banking, a ---- of ---- is a promise by a bank to pay the seller a given amount if certain conditions are met.
letter, credit
Raising needed funds through borrowing to increase a firm's rate of return is called ----
leverage
What type of ratios measure the degree to which a firm relies on borrowed funds in its operations?
leverage
The birth of information technology such as texting and email is giving firms and employees increased flexibility to choose ----- while staying competitive.
locations
When considering _____ - _____ financing options a financial manager must consider the organization's financial goals and objectives.
long-term
Compared to a bank, the interest on commercial paper is ______.
lower
As a result of the Great Depression, Congress established deposit insurance to ______.
make sure depositors did not lose money in a bank failure
Technological changes have had such a great impact on the ______ that this segment of the American economy will likely never employ as many people as it did in the 1950s.
manufacturing industry
The best way to define a(n) ___ is all consumers with unsatisfied wants and needs who have both resources and the willingness to buy.
market
Franchises are expanding internationally to access additional ______ that have new customers and to increase their profit potential.
markets
The result of two firms (usually corporations) combining to form one company is called a
merger
The result of two firms joining to form one is called a(n):
merger
Entrepreneurs start a business with the desire to grow the business and generate wealth while _____ start a business that will stay small, allowing them to have a balanced lifestyle and the ability to do the kind of work they want to do.
micropreneurs
_____ make(s) hiring decisions on supervisory positions.
middle management
The basic premise of just-in-time inventory is:
minimum inventory is kept on hand
The set of actions the Federal Reserve uses in order to manage the economy is known as
monetary policy.
Anything that can be used for payment of goods and services is defined as
money
In the past, objects such as salt, feathers, fur pelts, stones, rare shells, tea and horses have served as ______.
money
What people generally accept as payment for goods and services is called ______.
money
Money is considered to have a time value because ______.
money has more value in your possession today than at a later point in the future
In operating a business, rent, salaries, supplies, utilities and insurance are all examples of ______.
operating expenses
Global competition grows stronger each year making the future ------ of robust with career opportunities.
operations management
A key advantage of a home-based franchise is low ______ costs, which can be ongoing. These are the costs associated with rent, utilities, and other fixed costs.
overhead
Stockholders are the of a public corporation.
owners
A stock is a share of the ----- of the company.
ownership
Industrial robots can work 24 hours a day, seven days a week with great
precision
The creation of finished goods and services using the factors land, labor, capital, entrepreneurship, and knowledge is
production
The income statement shows
profit or loss over a given period of time.
S&Ls were originally set up to ______.
promote home ownership
Maintaining ______ refers to consistently producing what the customer wants while reducing errors before and after delivery to the customer.
quality
Financial control is a process through which a firm periodically compares its budget to which of the following? (Select all that apply)
revenues expenses costs
The role of an auditor is to:
review and evaluate a company's financial information
A firm that puts something of value, like a piece of property, up for collateral is applying for a(n) --- loan.
secured
If a corporation is formed, then the owners are known as
shareholders.
Small business managers are more concerned with ______-term funds.
short
A(n) ______ forecast predicts revenues, costs, and expenses for a period of one year or less.
short-term
Partnership owners' income are subjected to _____ taxation; whereas corporation owners' income are subjected to _____ taxation.
single double
Cash flow analysis is especially important for which of the following?
small businesses
A business that is owned and managed by one person is a(n)
sole proprietorship
An advantage of the use of computers to maintain and compile accounting information is ______.
speed
ISO is not part of the government, but is a federation of national ---- bodies.
standards
In a public corporation, the ownership is held by -----
stockholders
A ---- accountant is trained in tax law and is responsible for preparing tax returns or developing tax strategies.
tax
What type of accountant is most likely to develop strategies for a firm in dealing with the Internal Revenue Service?
tax accountant
Which are considered to be the working areas of accounting?
tax accounting managerial accounting government and not-for-profit accounting auditing financial accounting
Gathering leads on a company website, selling products and keeping up to date on news via email, and chat rooms all serve as examples of using _____ to assist franchisees and customers.
technology
Throughout the history of the United States, central banks were created and disbanded with much controversy until ______ ensured that a central bank was needed.
the bank panic of 1907
Many franchises are expanding internationally because:
there are large new markets available
A firm that buys goods and services on a given day, but pays for them later is using a(n) ----- credit.
trade
At which point in the production process do companies today conduct quality control?
throughout the process
The ---- value of money is the idea that money in your possession today is worth more than money that will be in your possession in the future.
time
If your company's debts or damages are solely your responsibility you could be experiencing the disadvantage associated with owning a sole proprietorship called
unlimited liability
In a sole proprietorship, any debts or damages incurred by the business are your personal debts and you must pay them. This disadvantage is known as:
unlimited liability
Stockholders are entitled to
vote(s) for the board of directors.
Entrepreneurs are determined by ___ they are, not by ___they are.
who, what
Short-term forecasts generally cover up to a ______.
year
In using the accounting equation, if assets = $40,000 and liabilities = $30,000, then owner's equity is equal to ______.
$10,000
What was the total change in Total Liabilities from 2016 to 2017
$16,931
If a bank has $10 million on deposit, and the Federal Reserve specifies a reserve requirement of 30 percent, then how much money would the bank need at all times on hand?
$3 million
Entrepreneurial attributes include:
-Highly energetic -Tolerant of uncertainty -Action-oriented
The amount a business borrows and for how long depends on which of the following? (Select all that apply)
-How quickly it can resell the merchandise it purchases with the funds -The type of business and industry it is in
What is true about the Internet's impact on operations?
-It enables outsourcing of engineering, design, and manufacturing to other companies worldwide -Companies can manage outsourcing relationships through the internet -Companies are developing internet-focused strategies
Most Common Stock Certificates will display
-Stock Number -Owner Info -Number of Shares -Investment Bank
Which of the following are good ways to learn how to run your own business?
-Talk to other business owners -Work for a successful entrepreneur -Run a small business during your off hours
Why do companies involved in manufacturing invest in technology?
-To reduce operating costs -To reduce the time needed to make parts -To reduce human involvement in dangerous processes
An inexpensive marketing research study may help you determine which of the following?
-Whom to select as your target market -Where to locate -What is an effective strategy for reaching your target market
Select the characteristics of an intrapreneur.
-he or she generates profits by leveraging a firm's human financial and physical resources. -a creative person who works within a corporation -someone who uses company's resources to launch new products
What are the three major categories on the balance sheet?
-owners' equity -liabilities -assets
Top U.S. retail banks allow customers to access their accounts online so they can ______. (Select all that apply)
-pay bills -check account balances -transfer funds
What are two reasons that franchises are attractive to minority populations?
-some offer financial support to aspiring business owners -they provide personal ownership of a business
The practice of buying goods and services now and paying for them later is termed
-trade -credit
Some common causes of small business failure include:
-underpricing or overpricing goods or services -starting with too little capital -no experience in that business or industry
Rank the order in which members of a corporation are chosen in order to separate ownership from management. Start at the top of the managerial hierarchy. (Fig. 5.4)
1. Owners/Stockholders elect board of directors 2. Board of Directors Hire Officers of the corporation 3. Officers Hire managers of the corporation 4.Managers hire employees
In a franchise, having management support from the franchisor is a(n) _____ whereas the coattail effect is considered a _____
Advantage Disadvantage
Variable Costs are made up of
All of the above
--- are economic resources owned by a firm.
Assets
are the variable costs that are associated with the products made and sold.
COGS
A savings account that earns interest, to be delivered on the certificate's maturity date is a ----
Certificate of deposit
In the United States ----- are nonprofit, member-owned cooperatives that offer most banking services to their members.
Credit unions
What are four main types of financial ratios used in ratio analysis?
Debt ratios Activity ratios Profitability ratios Liquidity ratios
What did Ben & Jerry worry about when Unilever acquired them?
Differences in values
The concept of being unable to divide a chicken in half when it comes to bartering most closely relates to which standard for a useful form of money
Divisibility
Match the goals with the type of business person. Entrepreneur Micropreneur Desire to remain small and balance lifestyle with work Desire to grow business and generate wealth
Entrepreneur= Desire to grow business and generate wealth Micropreneur= Desire to remain small and balance lifestyle with work
According to the video, "How to Write a Business Plan", which section of the business plan is easiest to write when you save it for last?
Executive Summary
An independent agency of the U.S. government that insures bank deposits is the _________.
FDIC
is the physical arrangement of resources including people, to most efficiently product goods and provide services.
Facility Layout
is a significant question because, once the decision has been made and implemented, the firm must live with it due to the high costs involved.
Facility location
All home prices in the United States have risen since the 2008 housing bubble.
False
Ben & Jerry's focus on the community was their downfall.
False
Defects will always exist in production so we should not focus on reducing them.
False
If my inventory dumping costs are extremely high and surpass the savings I could make from redesigning my bike to reduce my costs, I should still redevelop my bike.
False
If my price is still lower than most of my competition, I should keep it the same.
False
If our balance in Accounts Receivable goes up from one year to the next, that means that we have MORE cash because of it.
False
Intrepreneurship is about taking the entrepreneurial mindset and using it outside of a well established organization.
False
It is more expensive to hang on to current customers than it is to acquire new customers.
False
Janet Yellen is the current Chairperson of the Federal Reserve.
False
The Statement of Cash Flows shows more than just what is happening with cash within the organization.
False
There is nothing new to re-learn in the Competition rounds, It is all identical to the practice rounds.
False
True or false: Financial management is only concerned with items involving cash.
False
True or false: If producers, consumers, or workers with similar needs pool their resources for mutual gain, they have created a franchise.
False
An independent agency of the U.S. government that insures bank deposits up to $250,000.
Federal Deposit Insurance Corporation (FDIC)
The -------- is the organization that has the most power over the currency in the United States.
Federal Reserve
The organization/person in charge of the money supply in the United States is the ______.
Federal Reserve
---- and nonprofit accounting supports organizations whose purpose is not generating a profit, but serving ratepayers, taxpayers, and others according to a duly approved budget.
Government
You can expect a ______ rate of return from a bond with a BBB+ rating than a bond with a AAA rating because of the amount of risk involved.
Higher
Relief from the stress of commuting, extra time for family activities, and low overhead expenses are all advantages of ____ - ____ franchises.
Home- Based
The balance sheet tells us all of the following information, EXCEPT
How many units we have in inventory
In this first practice round
I am still in the Mountain bike segment
It represents the story of transactions over a specific time period
Income Statement
Choosing facility location has become more flexible for both companies and employees through the use of ----- such as texting, teleconferencing, cell phones, and email.
Information technology
Entrepreneurs use a tool which enables them to they exploit change as an opportunity to form a new business or service. That tool is
Innovation
When a company does not have enough cash to pay for things, we call them ----
Insolvent
The ___ acts as an "inside entrepreneur" who focuses on innovation and creativity while operating within the goals and environment of an organization.
Intrapreneur
______ are creative people who work as entrepreneurs within corporations.
Intrapreneurs
is the value of the products that have been acquired for sale to customers and are still on hand.
Inventory
Which Business Activity asks the question of "What do you do with money?"
Investing
Which of the following statement(s) is NOT true about quality control?
Investment in preventing defect is more costly than incurring warranty expenses
All of the following are characteristics of Leaders except: Leaders create a vision Leaders direct Leaders are change agents Leaders take risks
Leaders direct
tailors products to meet the needs of a large number of individual customers.
Mass Customization
Managerial accounting is involved with all of the following, EXCEPT
Minimizing legal issues
can manipulate material on the molecular level.
Nanomanufacturing
The difference between revenue and expense is known as
Net Income (Loss)
______ funds are typically needed to manage day to day needs of a business as well as acquiring needed inventory.
Operating
The statement of cash flows reports cash receipts and disbursements related to ---- , investments, and financing.
Operations
Which of the following differentiates a partnership from a corporation?
Owners of partnerships have more control over their businesses than corporations do
is the creation of finished goods and services using land, labor, capital, entrepreneurship, and knowledge.
Production
When inputting the new amount of bikes I want to sell in this round I should also update my
Production Quantity
All of the following are examples of current assets, EXCEPT
Property, Plant, Equipment
Which term describes the act of buying of all materials needed by the organization?
Purchasing
The assessment of a firm's financial condition and performance through calculations and interpretation of financial ratios developed from the firm's financial statements is called analysis.
Ratio
The percentage of commercial banks' checking and savings accounts that must be physically kept in the bank is called the ----
Reserve requirement
The total change in ________ from 2016 to 2017 was $2,631
Retained Earnings
Price * Number of units sold =
Revenue
__ is the monetary value of what a company received for goods sold, services rendered, and all other payments to the firm.
Revenue
When the Competition Rounds begin, what round is your simulation in?
Round 1
The private key is sometimes known as the ______ key
Secret
Which is NOT correct about the different layout options?
Teams of workers produce complex units of the final product in assembly line layout
All of the following actions by the Federal Reserve slow the economy in the long run, EXCEPT
The Fed buys government bonds The Fed raises discount rates Increase in reserve requirements The Fed buys government bonds The Fed sells government bonds
How do cash flow problems usually start?
The firm uses up its credit.
Why are corporations subjected to strict government regulations?
They are separate legal entities which means no single individual is legally responsible for their misbehaviors
What role did banks play in the banking crisis of 2008?
They did not take creditworthiness into account when making loans.
Which of the following is NOT correct about common stockholders?
They have first claim on income
When creating a business plan, you want to include ___ financial forecasts.
Three
Which of the following is TRUE about corporate governance?
Top management makes hiring decisions on middle management positions
If the University of Oregon has $12.3 million in debt, and $7.5 million in equity, what is their Debt-to-Equity Ratio?
Total Debt/ Total Assets = 1.64
Bonds are a form of long-term debt for a corporation.
True
Contribution Margin is a measure of the efficiency of your production process.
True
Current assets are listed in the order of liquidity on the balance sheet.
True
Equity Financing involves taking on new owners as a way of raising capital.
True
If a company has too little cash they can borrow money/ take on debt, or they can dilute ownership, to increase their cash.
True
Is Revenue - Expense = Profit ,True?
True
Liquidity can be defined as how quickly we can turn assets into cash.
True
True or false: A budget is a tool for financial planning.
True
True or false: Computers are used to design products when CAD is employed.
True
True or false: Facility layout depends greatly on the processes that are to be performed
True
True or false: Most entrepreneurs do not get their ideas from a flash of inspiration; they come more from their passions or looking at problems.
True
Phil invests in new businesses in exchange for partial ownership in those businesses. Phil is a(n) ___
Venture Capitalist
___ are individuals or companies that invest in new businesses in exchange for partial ownership of those businesses.
Venture Capitalists
All of the following are standards for a useful form of money, EXCEPT
Visibility
Assets, liabilities, and owners' equity are the major accounts listed on ______.
a balance sheet
Generally speaking, commercial banks grant loans based on ______.
a borrower's creditworthiness
Which of the following best describes electronic funds transfer (EFT)?
a way to send funds from one computer to another
A unique government creation that looks like a corporation but is taxed like sole proprietorships and partnerships is:
an S corporation
Stakeholders who want to look at detailed financial information on whether a company is profitable, is able to pay its bills, and how much debt it owes will look at the firm's ______.
annual report
What type of business relationship benefits both a trainee and a business owner and occurs when a trainee is hired to learn small-business management while assisting the owner in getting daily work done?
apprenticeship
David opened his own bicycle shop 30 years ago, and although he enjoyed his work, he needed more free time. When Josie requested to work as an apprentice, David was very willing. Before long Josie was able to run the store without any help. This is an example of how ______.
apprenticeships can benefit both the business owner and the apprentice
Entrepreneurs ___ paralyzed by the prospect of failure.
are not
The main idea behind mass production is to produce a large number of a limited variety of products ______.
at a very low cost
Leverage or debt ratios measure the degree to which a firm relies on ______.
borrowed funds
Debt financing is essentially
borrowing money
The Federal Reserve banks provide the ______ function for checks written across states.
check-clearing
The actions of a fellow franchisee will affect your franchise. This is known as the
coattail effect
A(n) ---- bank is a profit-seeking organization that receives deposits from individuals and corporations in the form of checking and savings accounts and then uses some of these funds to make loans.
commercial
Which is a profit seeking organization that has both depositors and borrowers and is equally responsible to both?
commercial banks
Users of managerial accounting information include:
department managers the Chief Financial Officer
Nonbanks are financial organizations that accept no ---- but offer many of the services provided by regular banks.
deposits
What is the focus of operations management?
designing, supervising, and improving the transformation process while keeping costs down
A summary of all the financial transactions that have occurred over a particular period is referred to as a ______.
financial statement
Because they indicate a firm's financial health and stability, the use of ______ are key factors in management decision making.
financial statements
Just as blood pressure, weight, height, and cholesterol numbers can help a doctor determine the overall health of a person, the __________ can help a business owner understand the health of the business.
financial statements
One of the most important advantages of the sole proprietor form of ownership is that a business owner:
finds it easier to start and end the business
Ed has decided to purchase and follow a business format by becoming a franchisee. The _______ he will sign gives him the right to use the business name and sell the products of the firm.
franchise agreement
Mark, Cal and Aidan have decided to form a business where all owners will share in operating the business and in assuming liability for the business debts. They are most likely forming a(n) _____ partnership.
general
Customers can have access to most banking functions electronically, wherever the customer is located through the use of ---- banking.
internet
The use of the ----- allows bank customers the ability to complete most transactions electronically without leaving home.
internet
Careful control of a firm's ----- costs allows it to maintain correct levels of stock and product.
inventory
Financial organizations that accept no deposits but offer many of the same services as regular banks are called ______.
nonbanks
Students who can see trends and have the skills to work in highly automated factories and modern service facilities have a future in
operations management
Two advantages small firms have over large firms include more personal customer service and the ability to respond quickly to ______.
opportunities
What are the three most common reasons firms fail financially?
poor control over cash flow undercapitalization inadequate expense control
The formula for the costs of goods sold is ______.
purchase price + freight charges + storage costs
In his job, Manuel finds the highest quality material resources, the best suppliers, and then negotiates the best prices. Manuel works in the ______ department.
purchasing
Operating expenses include which of the following?
rent supplies utilities
The ------ is a percentage of commercial banks' checking and savings accounts they must keep in the bank.
reserve requirement
The Federal Reserve mandates that banks must keep a certain percentage of money on hand at particular times. What is this referred to as?
reserve requirement
An indirect measure of risk that tells us how much a firm earned for each dollar invested by its owners is called ______.
return on equity
MRP is a computer based operations management system that uses ______ to make sure that needed parts and materials are available at the right time and place.
sales forecasts
Often called "thrifts," this financial institution primarily offers checking and savings accounts and makes long-term loans for residential mortgages.
savings and loan association
A loan backed by collateral, something valuable like property, is called a ----- loan.
secured
Stockholders are ______ from the managers and employees of the firm because they are not actively involved in the operations of the firm.
separated
The SBA defines a _____ business as one that is independently owned and operated, is not dominant in its field of operation, and meets certain standards of size in terms of employees or annual receipts.
small
A business that is independently owned and operated, is not dominant in its field of operation, and meets certain standards of size in terms of employees or annual receipts is a(n):
small business
___ makes hiring decision on the top management.
the board of directors
The financial statement that is most likely to be used to determine if a business is able to meet its short-term obligations within the next month would be
the cash flow statement.
Because of the poor publicity at a fellow franchise location, you notice that sales at your location have decreased. The impact of the poor publicity on your company is referred to as
the coattail effect
The cash shortage problems and failure of banks in 1907 led to ______.
the creation of the Federal Reserve System
Credit unions are owned by ______.
the credit union's members
The reserve requirement is ______.
the percentage amount of a bank's checking and savings that must be kept in the bank
Why should Mary Ann and Nana create a business plan?
to provide an overall road map of how to start the business and to attract/satisfy investors
Return on equity is net income minus taxes divided by ______.
total owners' equity
If a sole proprietor is found negligent of an action, then that person could face
unlimited liability.
Because a majority of small business are rejected for traditional business loans, many ______ for short-term financing.
use credit cards
After working for a large auto manufacturing company for over 20 years, Silvia decided to start her own auto accessory store. While facing new challenges every day, Silvia enjoys being free to manage her company as she desires. This example illustrates:
why people take the risks of entrepreneurship
Ensuring that products are manufactured and delivered on time, on budget, and to specifications is the role of which manager in an organization?
Operations
The U.S. banking system consists of all of the following, EXCEPT
Stock market Commercial banks Stock market Credit Unions Savings and loan associations
What impact does lack of inventory control have on a firm's efficiency and profitability?
Supplies and materials sitting idle cost the company money.
True or false: The financial crisis that began in 2008 was due, in large part, to financial managers making poor investment decisions and engaging in risky financial dealings.
True
True or false: The main advantage of a sole proprietorship is ease of start up. True false question.
True
True or false: The principles of management are similar for a small neighborhood business and a giant global firm.
True
Vertical acquisition involves a company buying another company in its supply chain.
True
When companies have excess cash it is a good idea for them to invest it.
True
When it comes to a public ledger, anyone can add a line.
True
The income statement shows:
a firm's profit (or loss) after costs, expenses, and taxes
Mass production focuses on producing:
a limited variety of products
The relationship among assets, liabilities, and owners' equity is a fundamental concept in accounting known as the _______ equation.
accounting
If financial management is the heartbeat of competitive businesses, what keeps that heartbeat stable?
accounting information
To keep track of daily sales, expenses, profits, inventory control, customer records, and payroll a small business needs a good ___
accounting system
One company's purchase of the property and obligations of another company is a(n)
acquisition
One company's purchase of the property and obligations of another is called a(n):
acquisition
Since converting the firm's inventory to profits is a key function of management, firms use ______ to measure the effectiveness of management in utilizing the assets that are available.
activity ratios
3D printing also known as
additive manufacturing
If a company uses entirely equity financing and doesn't borrow, they have to put up of their _____ own money to get the company running.
all
If one owner of a partnership makes a bad decision that ends up in the business being sued, then
all partners face unlimited liability.
Net income or loss is:
all revenue minus all expenses and taxes
The information and analysis that comes from managerial accounting is used to ______.
assist managers inside the organization with their decision making
Reviewing and evaluating records used to prepare a company's financial statements is referred to as ______.
auditing
Commercial banks, savings and loans, credit unions, and non-banks are all considered to be a part of the U.S. ---- system.
banking
The check clearing role of the Federal Reserve allows:
banks to settle the check payments between banks in different parts of the country
When a company allocates the use of specific resources throughout the firm based on a financial plan indicating management's expectations, then the company is using a(n) ----- as the basis for making decisions.
budget
Local community college classes are a good place to start to learn about starting your own ____
business
The term used for unsecured notes of $100,000 and up that are due in no more than 270 days is
commercial paper
The methods the Federal Reserve uses to manage the economy include all except ______.
control the federal budget change the discount rate control reserve requirements control open-market operations control the federal budget
What term describes the cost of merchandise the firm sells?
cost of goods sold
More personal ___ service and the ability to respond quickly is an advantage for small businesses.
customer
Sometimes a company is willing to spend millions to move their facility from one location to another in order to increase buyer traffic, drawing more potential
customers
Ordering a new suit that will be made specifically for you by a tailor is an example of which process?
customization
To _____ is to make a unique product or service for a specific individual.
customize
What is a good tactic for entrepreneurs to implement in order to keep a new company growing?
delegate authority to employees
A checking account is also referred to as a ______.
demand deposit
The interest rate the Fed charges for loans to member banks is called the ---- rate.
discount
Select the steps in financial planning. (Select all that apply)
establish financial controls forecasting short term needs develop budgets
Gaining financing, knowing how to get started in exporting, and navigating bureaucratic paperwork are major hurdles to consider when getting started in ___ business.
global
Many rapidly growing firms are outsourcing areas like engineering, design, and manufacturing with the use of the Internet, thus, developing a(n) ______ approach to operations management.
interfirm
The debt a firm owes to others is called a(n) ______.
liability
An S corporation has the liability protections of a corporation but is taxed:
like a partnership or sole proprietorship
About 30 percent of franchises are owned by African Americans, Latinos, Asians, and Native Americans. Franchisors are becoming more focused on recruiting ______ franchisees.
minority
The amount of money you pay to purchase a house is directly dependent on the ------ interest rate
mortgage
Debt financing refers to funds that ______.
must be repaid
____ is considered a disadvantage of a partnership because it exposes all other partners to a risk of poor business decisions by a single partner.
mutual agency
---- income after taxes is the last line on the income statement.
net
What concept does the balance sheet really explain, based on the information contained in it?
net worth
An LLC submits a written operating agreement, similar to a(n) ____ agreement, describing how the company is to be operated.
partnership
Termination of a partnership is difficult without a(n) ______ agreement.
partnership
Although there are many functions that are important in both the start-up and management phases of the business, what two functions are considered to be primary concerns?
planning and financing
When a firm reduces errors before and after delivery to the customer and thus delivers what the customer wants, the firm is said to exemplify the definition of ______.
quality
One of the reasons for the banking crisis was that banks were pressured by Congress and other groups to make _____ loans.
questionable
Government and nonprofit accounting involves working for organizations whose purpose is to serve ______.
ratepayers taxpayers
If a company has a goal of ______, it might choose to locate its facilities to an area that has access to major highways, ports, railways, and airports.
reducing time to market
The monetary value of what a firm received for goods sold, services rendered, and other payments is termed
revenue
Short-term financing is more important to a small business than long-term financing because ______.
small businesses are more concerned with funding day to day operations
If you start and manage a landscaping business on your own, you have likely started a:
sole proprietorship
Studies have indicated that partnerships are four times more likely to succeed than:
sole proprietorships
The purpose of the Malcolm Baldrige National Quality Award is that it sets a(n) ---- for overall company quality using several key areas for measurement.
standard
Cash receipts and disbursements related to operations, investments, and financing are reported on the ______.
statement of cash flows
Which section of the business plan details and outlines the authority structure that exists inside the company?
the management plan
What is the goal of operations management in service industries?
to provide good experiences for those who use the service
Chris spent his own money on marketing research, and consulted his sister Kara, who is an accountant. They spent the next few months writing a business plan. Which of the following are some business functions Chris would have addressed?
-Financing -Planning -Marketing
There are a few hurdles that prevent many small businesses from engaging in the global market. Which of the following are examples of such problems?
-Financing is often difficult to find. -Would-be exporters do not know how to get started.
Which statements are true about factoring accounts?
-It is the accounts receivable of a firm sold for a discount. -The firm that buys the accounts receivable collects the amount due. -Small businesses often use it for financing in the short term.
Which statements are true regarding trade credit? (Select all that apply)
-It is the most widely used source of short-term funds It is used by large and small businesses -It is usually more convenient than bank loans
What are two characteristics of lean manufacturing?
-It uses less resources. -It takes less time.
Long-Term debt falls under which section of the balance sheet?
-None of the above Investing Operating/Working Capital Financing None of the above
What is TRUE about forms of businesses?
-Partnerships require at least two owners -A Limited Liability Company is a combination of corporations and partnerships -Sole Proprietorship is the most common and easiest way to start a business
When redeveloping my bike I can
-Reduce my Costs and Improve my Product Specs -Improve my Product Specs -Reduce my Costs
Which of the following responsibilities is under purchasing function?
-Searching for high-quality material resources -Find the best suppliers -Negotiate the best price for goods and services with the suppliers
Which of the following is true about technology in manufacturing?
-Sensors can detect problems immediately so changes can be made quickly -Nanomanufacturing is the future of manufacturing -Robotics allows manufacturing to continue 24 hours a day
What are some benefits of using computers for accounting purposes?
-Software can help if no strong accounting support is available. -Information can be posted from journals instantaneously. -It frees accountants' time for more important tasks.
Which of the following are true regarding the process of forming a corporation?
-The bylaws of the corporation describe how the firm is to be operated -The articles of incorporation are usually filed in the state in which the company will be incorporated
Which are questions financial managers ask when considering long-term financing? (Select all that apply)
-What funds do we need to achieve the firm's long-term goals and objectives? -What sources of long-term funding (capital) are available, and which will best fit our needs? -What are the organization's long-term goals and objectives?
Which of following are true about the advantages and disadvantages of being a franchise owner:
-While the upfront costs of a franchise may be steep, a franchise has a better chance of succeeding than starting a business from scratch -Having a nationally recognized name for your business in a franchise can help with marketing and awareness
The production process should be a sequence of steps starting with inputs, followed by production control, and ending with
-finished products -outputs
Managing a small business became relatively easy with the advent of inexpensive personal computers. Inexpensive computer systems and off-the-shelf or even free, open-source software make it easy for the small business manager to ______.
-manage customer records -follow the daily sales and expenses
The role of the operations manager is to ensure products are delivered:
-on time -on budget -to specifications
Select reasons why people become entrepreneurs.
-opportunity -profit -independence
Major duties of the Federal Reserve include ______. (Select all that apply)
-setting reserve requirements -collecting data on money policy -buying and selling government securities
Learning from others is a useful way to avoid pitfalls when starting a small business. Some things you may be told would include:
-starting with enough money -to hire a good lawyer and accountant -that finding and retaining good workers is hard
In factoring, the discount given depends on ______. (Select all that apply)
-the nature of the business -the age of the accounts receivable -the condition of the economy
A business plan is a detailed written statement that describes:
-the target market -the resources and qualifications of its owner(s)
Many brick and mortar franchisees are using ______ to expand their businesses online to lower costs and better meet the needs of their customers.
-websites -e-commerce -technology
To prevent forgery, everyone generates a __________ pair.
A public/private key
What is an annual report?
A yearly statement of a firm's financial condition, progress and expectations
What are some of the benefits of technological advances such as CAD-CAM?
A. It allows manufacturers to make small changes quickly without having to completely redo a production process. B. It makes it possible for companies to customize even the smallest orders. C. It allows companies to design machinery that can produce multiple product variations at any time.
What is the best definition of entrepreneurship?
Accepting the risk of starting and running a business
---- is the recording, classifying, summarizing and interpreting of financial events and transactions in an organization to provide interested parties with needed financial information.
Accounting
Which of the following is a current liability?
Accounts Payable
Which businesses need to write business plans?
All businesses should write business plans in order to create a framework for success.
What is the fundamental accounting equation?
Assets = Liabilities + Owners' Equity
The key working areas of accounting include ------, managerial accounting, financial accounting, tax accounting, government and nonprofit accounting.
Auditing
The last step I should take before exiting out of MikesBikes is
Checking my Forecast Result Report
Sales minus Variable Cost gives you
Contribution Margin
Entrepreneurship has nothing to do with problem solving.
False
Physical bonds will typically NOT display the Annual Interest or Maturity Date.
False
Preferred stock can be bought on public stock exchanges.
False
Using machines designed to do multiple tasks in order to produce a variety of products is called
Flexible Manufacturing
When machines are programmed to do multiple tasks in order to produce a variety of products, a firm is said to be employing
Flexible Manufacturing
What is the number one thing an entrepreneur needs to do to avoid the pitfalls of failure?
Know their business in depth
_____ is a form of partnerships in which some partners may be subjected to limited liability
Limited Partnerships