BADM Final Exam

training and support provided by the franchise

An advantage of franchising is the:

stockholder

An owner of a C corporation is called a ________.

social responsibility

Companies that step in with on-site daycare programs for employees facing challenges such as caring for elderly patients are fulfilling their:

use clear transitions as one moves from point to point

For making an effective business presentation, one should:

the invest in promising start-up companies because they want to make money for themselves and in exchange for a share of ownership

Identify a true statement about angel investors.

liquid asset

In finance, a ___________ is one that can be quickly converted into cash with little risk of loss.

relationship era

In the _________, leading-edge firms look beyond each immediate transaction with a customer and aim to build long-term ties.

an ethical dilemma

In the context of business ethics, ____________ refers to a decision that involves a conflict of values.

exchange rate

In the context of global trade, the ___________ is a measurement of the value of one nation's currency relative to the currency of other nations.

their personal wealth is not at risk as long as they do not actively participate in managing the company

In the context of limited partnerships, what is true of limited partners?

public accountant

Lorraine works for an accounting firm that performs external audits, provides consulting services, and does the tax preparation for other businesses and individuals. Given this information, Lorraine is most likely a _________.

Entrepreneurship

Melina and Carl want to start an event management company that would provide local artists with a platform to showcase their talent and gain an audience. Melina and Carl are willing to invest their own resources in this project. In the context of factors of production, the given scenario exemplifies the concept of __________.

human resource

Richard is a technical analyst at a marketing firm. He is highly regarded by his peers and supervisors who always seek his advice while making important decisions for the company. In this scenario, Richard can be classified as an ________

True

T/F: A country has an absolute advantage when it can produce more of a good than other nations, using the same amount of resources.

True

T/F: A firm that contracts with foreign producers has an obligation to ensure that those factories adhere to ethical standards

capitalism

The economic system of the US is called ____________.

socialism

The government of Bakhraan, an Asian country, owns key industries that directly affect public welfare, such as healthcare and telecommunication. To fund public welfare schemes, such as free childcare and free education, the government levies high taxes on its citizens. In the given scenario, the economic system followed by Bakhraan is ________.

C Corporation

The most common type of corporation, which is a legal business entity that offers limited liability to all of its owners, who are called stockholders

core ethical values that transcend political, religious, class, and ethnic divisions

The nonprofit, nonpartisan Character Counts organization has worked with various groups of educators and community leaders to establish a set of:

earns more money

The primary reason people choose to become entrepreneurs is to:

it pools funds from many investors and uses these funds to purchase very safe, highly liquid securities

What best describes a money market mutual fund?

loss

When a business brings in less money than it needs to cover expenses, it incurs a ______________.

Return-on-equity

____________ measures the income earned per dollar invested by the stockholders of a firm.

An external locus of control

______________ is a deep-seated sense that forces other than the individual are responsible for what happens in his or her life.

crowdfunding

______________ is the process of funding ventures by raising money from a large number of investors via the internet.

The average collection period

______________ measures how long it takes for a firm to receive payment from customers who buy on credit.

A revolving credit agreement

_________________ is a guaranteed line of credit in which a bank makes a binding commitment to provide a business with funds up to a specified credit limit at any time during the term of the agreement

dividends

a distribution of earnings that are paid to a corporation's stockholders

Core benefit, actual product, augmented product

a product has three layers, they are:

National brand

brands that the producer owns and markets (Kellog's Pop-Tarts)

Customer loyalty

customers repeatedly buying certain products (provides valuable feedback)

Job Description

def: Explanation of the responsibilities for a specific position

job enrichment

def: creating jobs with meaningful content, creative work

strategic planning

def: high-level, long-term planning; establishes a vision for the company

Importing

def: means buying products domestically that have been produced or grown in foreign nations

Value Chain

def: network of relationships; channels the flow of inputs, information, and financial resources through all processes involved in producing and distributing goods and services

job specification

def: the specific qualifications necessary to hold a particular position

marketing concept

marketers' attempts to provide goods and services that meet the customer needs was a major contributing factor into the:

Inventory

stock of goods or other items held by organizations

utility

the ability of goods or services to satisfy customer wants

nonprofit organizations:

type of organization: employ people and take in revenue

Fair Labor Standards Act of 1938

what act established minimum wage and overtime pay for employees working more than 40 hours a week

computer-aided engineering software

what enables users to test, analyze, and optimize their designs?

dividends of a company

what is a distribution of earnings that are paid to a corporation's stockholders

profit in business

what is the financial reward that comes from starting and running a business.

orientation programs

what program is the introduction to the new employee of the company

the gross domestic product of a country

Macroeconomics involves the study of:

difficult because lenders are reluctant to give loans to firms that do not have a track record

Small business start-ups are likely to find that getting commercial loans are:

business plan

A _________ is a formal document that describes a business concept, outlines core business objectives, and details strategies and timelines for achieving those objectives.

corporation

A _____________ is a form of business ownership in which the business is considered a legal entity that is separate and distinct from its owners.

covenant

A ______________ is a requirement a lender imposes on the borrower as a condition of the loan.

balance of payments surplus

A ______________ refers to the overage that occurs when more money flows into a nation than out of that nation.

not-for-profit corporation

A __________________ cannot distribute dividends to its members.

commercial bank

A __________________ is the most common depository institution.

subject line

A business email should have a compelling ____ ____

intangible asset

A famous musician sells the copyright of one of his songs to a record company for $2 million. In this scenario, the sale of the copyright of the song exemplifies the sale of an __________.

vertical merger

A large film production company merges with a popular sound processing studio, resulting in the formation of a new company out of the two previously independent firms. This most likely is an example of ____________.

a single owner actively manages the company

A sole proprietorship is a form of business ownership in which:

partnership

A_____________ is a voluntary agreement under which two or more people act as co-owners of a business for profit.

internal auditor

Betty's job entails detecting problems such as embezzlement, waste, mismanagement, and employee theft at her organization. In this case, Betty is an ___________.

horizontal merger

CofBean Corp. and Coffeedust Inc. are leading producers and distributors of coffee beans. They join together to become the world's largest distributor of coffee. This association allows the amalgamated company to increase its size and market power within the coffee industry. This is an example of a _______.

Sarbanes-Oxley Act of 2002

Congress passed the ___________ that banned business relationships that might create conflicts of interest between certified public accounting firms and the companies they audit.

physical barriers

Gimn Sphere, a content development firm, rents a small building and moves its marketing team to make room for new content development. The new building is smaller than Gimn Sphere's main office, with smaller cubicles and a poor heating system. The marketing team members are unhappy with the new environment, which directly affects their productivity. In the given scenario, the marketing team is most likely facing _______ to communication.

they have a large cohort pf techincally skilled university graduates who work for about one-fifth the pay of comparable American workers

In the context of international trade, India, China, and the Phillipines attract multibillion-dollar investments because:

communication about the importance of ethics

In the context of the code of ethics of a company, what is a step that is virtually always included when experts advocate a forceful, integrated approach to ethics?

being concise

Jeffrey is asked by his supervisor to prepare a presentation on company policies for the orientation program. Jeffrey covers all essential topics and removes any unnecessary information to avoid confusion. In the given scenario, Jeffrey is:

Analyze your audience

Jim, the CEO of a management firm, needs to deliver a presentation on work ethics to his employees. He has a thorough knowledge of his employees' educational backgrounds. He uses this knowledge to create a presentation that would convey the message to his employees. In this given scenario, what communication guideline in Jim following?

entrepreneurship era

Lewis Gretz, the owner of a small railroad company in the 1860s, started gaining more influence and money as his business started to flourish to a point where he began controlling the entire northern half of railroad services. He followed a ruthless and cunning business strategy that invloved exploiting workers and decimating the environment. In the context of the history of American business, Lewis most likely belonged to the __________________.

financial markets

Markets that transfer funds from savers to borrowers are referred to as _______.

production era

Rayman Automobiles, an automobile manufacturing company, was founded in 1912. The company primarily focused on creating greater efficiencies by refining its processes and creating specialized jobs. This allowed the company to increase its output and lower the prices of its products. As a result, automobiles became an affordable commodity. In the context of the history of American business, Rayman Automobiles was most likely founded during the _______________.

False

T/F: Corporate etiquette is the obligation of a business to contribute to society.

false

T/F: During the production era, managers focused mostly on customer satisfaction and not on production efficiency.

True

T/F: Effective communication happens when one transmits relevant meaning to one's audience.

True

T/F: Globalization has made ethics and social responsibilty complicated for workers at every level.

True

T/F: In the context of capitalist economy, the right to free choice directly feeds competition.

True

T/F: In the context of communication, taking notes helps one concentrate and listen better.

False

T/F: In the context of federal debt, if spending is lower than revenue, the government incurs a budget deficit.

False

T/F: In the context of monetary policy, the money supply includes credit cards.

True

T/F: The balance of trade plays a central role in determining the balance of payments.

True

T/F: The personal needs, the culture, and the family of an individual influences his or her ethical choices.

True

T/F: Value is the relationship between the price of a good or a service and the benefit it offers its customers.

True

T/F; In the context of ethical behavior, encouraging fraudulent accounting is illegal and unethical.

created to serve as the central bank in the US.

The Federal Reserve System was:

inflation

The US government uses the consumer price index and the producer price index to evaluate ______

income statement

The __________ summarizes the financial results of a firm's operations over a given period of time.

budgeted income statement

The ________________ of a firm uses information from the sales budget and various cost budgets to develop a forecast of net earnings for the planning period.

corporate bylaws

The basic rules governing how a corporation is organized and how it conducts its business are known as _________.

the cost of debt financing is now high.

The main disadvantage of financial leverage is that:

trade deficit

The term ___________ refers to the shortfall that occurs when the total value of a nation's imports is higher than the total value of its exports.

balance sheet, income statement, and statement of cash flows

The three kinds of basic financial statements that are prepared in financial accounting are:

limited liability partnership

Three brothers of a family own a furniture showroom. Each of them is actively involved in handling the day-to day business activities. However, when the business suffered huge losses at the end of the last fiscal year, the personal wealth and assets of the brothers did not get affected. This is most likely because the brothers have a:

greater financial success

Tobin starts a catering company of his own and earns a substantial profit in the first year itself. His total earnings are more than what he used to earn as a salaried employee. What advantage of entrepreneurship is highlighted in the given scenario?

An Asian country that produces quality automobiles with little opportunity cost compared to other countries.

What country would likely have a comparative advantage?

Venture capitalist

What funding option provides advice and guidance to start-up businesses along with the funds?

Unlike commercial banks, credit unions are not-for-profit organizations

What is a difference between credit unions and commercial banks.

Unlike the supply curve, the demand curve for most goods and services slopes downwards as it moves to the right

What is a difference between the supply curve and the demand curve?

raising money to finance growth can be tough for business owners

What is a disadvantage associated with sole proprietorship?

it takes sheer sweat equity to build a customer base

What is a disadvantage of starting a business from scratch?

Both have a strong involvement of the government

What is a similarity between socialism and communism?

you do not have to deal with prior owner's bad decisions

What is and advantage of starting a business from scratch?

pride of ownership

What is one of the reasons why many people prefer a sole proprietorship?

it magnifies the financial return on the investments of stockholders when times are good

What is the main advantage of financial leverage?

It is a relatively new form of business in the united states

What is true of a LLC?

They can arise in a number of different forms

What is true of communication barriers?

Actions that are completely legal can still be unethical

What is true of ethics?

It drives down the cost of production

What is true of foreign outsourcing?

The vast majority of people are willing to sacrifice convenience to buy green products

What is true of green marketing?

They are hard to change

What is true of organizational barriers to communication?

It required large firms in the financial sector to hold more equity and less debt in their capital structures

What is true of the Dodd-Frank Act?

It establishes the corporation's mission

What is true of the board of directors of a corporation?

comparative advantage

When the industries in a country tend to produce products that have the lowest opportunity cost relative to others countries, the country most likely has a ___________.

Management accountants

________ provide analysis and prepare reports and financial statements for their organization.

The budgeted balance sheet

__________ forecasts the types and amounts of assets a firm will need to implement its future plans as well as the amount of additional financing the firm must arrange in order to acquire those assets.

Monetary policy

___________ refers to Federal Reserve decisions that shape the economy by influencing interest rates and the supply of cash.