BUS100 Final Exam
What is a stakeholder?
Anyone affected by the company's actions, products or decisions
Things of value that a company owns; reported on the balance sheet.
Assets
The value of the products that the United States *imports is more than the value of the products that are exported*. What is this difference called?
Balance of trade
Which financial statement summarizes a firm's financial position at a specific point in time and uses the equation Assets=liabilities+stockholders equity.
Balance sheet
*Long-term debt (IOU)* issued by a corporation or government that are a legal obligation. Firm repays the amount plus interest on a given date.
Bond
Sadly, your new sole proprietorship, Fabulous Flowers, is going under because of an accident that your delivery driver was involved in. Your business now owes about $1 million more than you have in company assets. Who can your creditors try to collect from?
Both the company funds and your personal assets
Many consumers spend extra money to buy Coca-Cola instead of the store brand. What is this called?
Brand equity
An analysis that determines how many units of a product that must be sold to cover the cost.
Break even analysis
A type of promotion that is word-of-mouth, spurred by social media.
Buzz marketing
A combination of software and flexible manufacturing system to automate almost all steps involved in designing, testing, and producing a product.
CAD/CAM
The government uses a *"market basket"* of items like housing, transportation, etc. as a *measure of inflation that evaluates weighted-average price of goods/services that the average consumer buys* each month. What is this statistic called?
CPI (Consumer Price Index)
NAFTA (North American Free Trade Agreement) is a trading bloc between which countries designed to eliminate trade barriers?
Canada, United States, and Mexico
Dawn dish soap donates $1 to save wildlife for every bottle of Dawn purchased. What type of marketing is this?
Cause-related marketing
At Chik-fil-a, all stock is held by few investors, typically family, and it is not publicly traded. What type of corporation is this?
Close corporation
You bought the new iPhone and paid full-price so you could have it on the day is came out, now you regret having paid that much. What are you experiencing?
Cognitive dissonance
A short-term promissory note issued by a corporation. Individuals buy the notes and the corporations get the money. The company then pays back the note amount at a later time.
Commercial paper
Employees who do not expect full-time, regular jobs. Ex: Temporary, Independent Contractors, etc.
Contingency workers
Which of the following is NOT a role of the board of directors?
Control the day-to-day business of the company
A cooperative owned by depositors who typically belong to a field of membership or have something in common.
Credit union
A production tool that shows the relationships among all the activities involved in completing a project and identifying the sequence that is likely to take the longest to complete.
Critical path method
You want to raise money to produce a movie so you create a campaign at kickstarter.com to raise money from a large number of investors via the internet. What type of fundraising is this?
Crowdfunding
Which of the following is the formula for the current ratio?
Current assets/current liabilities
A powerful statistical and mathematical technique that analyzes vast amounts of data to identify useful information that has been hidden. Ex: Fraudulent welfare claims
Data mining
The quantity of products that consumers are willing to buy at different prices. *Consumer will usually buy more if price drops*.
Demand
We know that the population of the US includes a workforce that is *older*, and that there are equal number of *women and men* working. These measurable characteristics are known as what?
Demographics
Brand new ideas that radically change how people live. For example, the invention of the automobile or the personal computer at its onset.
Discontinuous innovation
Which of the following is a type of franchise in which the *franchisor makes the product and grants a license to sell it*. Ex: Automobiles
Distributorship
These types of merchants take legal title to goods, but don't process them. They organize and facilitate shipments. Ex: Amazon
Drop shipper
Producing output or achieving a goal at the lowest cost.
Efficiency
The manager needs to inform 50 people in the department that the staff meeting has changed from Monday at 8am to Tuesday at noon. What is the best channel of communication for that?
The US has implemented a total ban on trade with Cuba. What is this action called?
Embargo
ABC Company needs money but does not want to get a bank loan so they decide to *sell stock* instead. What type of financing is this?
Equity financing
You were told that you either have to terminate one employee or cut all employees' work hours back to 35 hours per week. Neither alternative is a good one. What type of situation is this?
Ethical dilemma
A motivational theory that says motivation is based on how effort relates to performance and reward. How much effort is required, are you capable of performance, and is the reward great enough.
Expectancy theory
A decision support system that allows managers to make better decisions in an area where they have little experience or knowledge. Ex: Perdue University works cited page
Expert system
A method of short-term financing when another firm buys your accounts receivables or the money other people owe to your firm. *The other firm then gets the long-term money but your firm gets short-term money.*
Factoring
The branch of accounting that addresses the needs of external stakeholders *interested in financial performance* of the firm as a whole.
Financial accounting
Facility rent remains the same regardless of how much product is made, what type of cost is rent?
Fixed cost
Converting inputs into a usable product, such as taking ham, cheese, and tomato to create a sandwich, is what type of utility?
Form utility
The Equal Pay Act prohibits discrimination based on what?
Gender (sex)
If Sprint Cell phone services were to *purchase their competitor*, T-Mobile cell phone services, what type of merger would this be?
Horizontal merger
These type of costs are the result of a firms general operations and *not tied to any specific object*. Ex: Copy machine
Indirect costs
The qualifications necessary to hold a particular position. Ex: operate a white board and PowerPoint, good speaker
Job specification
This is an order telling the broker to buy specific stock only if its price is below a certain level, or to sell if its price is above a certain level.
Limit order
This term means the owner and the business are separate and the owner is liable only for the amount invested.
Limited liability
This is a *hybrid company* with characteristics of both a corporation and partnership that allows taxation as a partnership while offering limited liability for all owners.
Limited liability company (LLC)
You decide to open a new convenience store and you need some extra cash but you really want to make all the decisions yourself. You reach an agreement with your neighbor who invests $10,000 in exchange for 5% of the profits and no participation in the management of the store. What type of ownership agreement is this?
Limited partnership
Lays potato chips *offers similar products offered under the same brand name* (Lays baked, Lays salt and vinegar, Lays bbq). What is this called?
Line extension
Hunter owns a *small toy store with personal customer service, low overhead and few competitors*. She takes *advantage of technology* by selling products online as well as in the store. What type of business is this?
Market niche
Starting around the 1950's when the idea of customer satisfaction became important, in this era, companies started to produce what customers want.
Marketing era
Using technology to create products tailored for an individual on a large basis. Ex: Dell computers
Mass customization
A *pool of funds* (stocks, securities, T-bills, etc.) to allow small investors to invest in a variety of ways.
Money Market Mutual Funds
If the FED (Federal Reserve) decides to *lower the discount rate*, what happens to the money flow in the US?
More money flows into the economy
The students are sleepy during an afternoon class causing interference between the teacher's message and the students understanding of it. The interference is what?
Noise
Which laws are designed to protect the employee's welfare and safety while at work and minimize or prevent workplace accidents, illness, and injury.
OSHA
The Amazon Fire-stick is priced at $39.99 to give the consumer the illusion that the product is cheaper. What pricing strategy is this?
Odd pricing
*Soft drinks and gasoline* are products where there are *only a few sellers and it is market is hard to break into because of high start-up cost*. What type of competition are these types of companies involved in?
Oligopoly
According to Maslow's Hierarchy of Needs, how would a company be able to meet an employee's physiological needs for survival?
Pay check
Your company just created a new product and decides to *initially set a low price in order to get as much sales volume as possible before the competition gets into the market*. What type of pricing strategy is this?
Penetration pricing
Funtime Toys deliberately designed their toy trucks to break quickly in order to shorten the time between consumer purchases. What is this known as?
Planned obsolescence
The right of stockholders to purchase newly issued stock in proportion to their current shares.
Preemptive rights
As a stockholder in MTC, Inc, you are the *first to get dividends if they are offered and claim on assets in case of bankruptcy*, but you *don't typically have any voting rights*. What kind of stockholder are you?
Preferred stock holders
The idea that you can *hang a picture without having to use extension cord for the drill* by using a cordless drill is an example of what?
Product benefit
Subway sandwiches, as well as an automobile assembly plant utilize a facility layout where the product moves from 1 station to another in a specialized and efficient way. What type of facility layout is this?
Product layout
In this era in the history of business, businesses refined the *production* process. Jobs became specialized and consumers bought everything that was available.
Production era
If you want to know how much the US economy can produce with available resources *(relationships of inputs to outputs)*, what number would you look for?
Productivity
Which of the following is about the Family and Medical Leave Act?
Provides up to 12 weeks of unpaid leave to care for immediate family
Toyota Prius targets their fuel efficient cars towards customers who are concerned with the environment thus *segmenting the market based on consumer attitudes, interests, values, or lifestyles*. What type of segmentation are they using?
Psychographic segmentation
A can of soda or a bottle of shampoo would be considered ___ on the goods and services spectrum because they do not include services.
Pure goods
The US government puts a limit on the amount of milk, brooms, and tuna that can be imported. What is this called?
Quota
Technology on small microchips that store information and transmit it when within range of the reader. Ex: Disney cups
RFID
This is measured as a decrease in the Gross Domestic Product (GDP) for *2 consecutive quarters*.
Recession
Finding and attracting a qualified pool of applicants.
Recruitment
What does the Sarbanes-Oxley act do?
Requires strict reporting requirements in terms of accounting and reporting
Your company made $5 million in profit this year! Instead of giving the money back to the stockholders, you decide to take part of the firm's profits and reinvesting it into the company to develop a new product. What is this called?
Retained earnings
The *increase in the amount of a company's cash or assets*. Reported on the Income Statement.
Revenue
A short-term program aimed at consumers to stimulate sales such as coupons, free samples, rebates, or free giveaways, point-of-purchase displays.
Sales promotion
An agent for investors who want to buy or sell financial securities such as corporate stock or bonds. They earn money through commissions and fees.
Securities broker
Products that are more expensive, bought less frequently. Consumers search for the best value, features, and benefits. Ex: appliances, insurance
Shopping products
An approach to quality improvement with a single unifying measure: to reduce defects of operation to a level of no more than 1 in every 3.4 million. Requires extensive training and long-term commitment.
Six Sigma
In Canada, the economic system is one in which the *government owns and operates key enterprises* that directly affect public welfare such as utilities and healthcare. What type of economic system is this?
Socialism
The number of people one manager supervises.
Span of control
These managers provide advice and assistance, for example Legal, Accounting, HR
Staff managers
The quality and quantity of goods and services available to a population.
Standard of living
*Short term IOU's* issued by the US Government. Owners can sell them to other investors before they mature. *"Buying stocks in America"*
T-bills
Which of the following describes a limited partnership?
The Limited partner cannot participate in the management of the firm
Which of the following best describes a Sole Proprietorship?
A business is owned by a single individual
China can produce more clothing than any other nation using the same amount of resources so they are said to have what?
Absolute advantage
A way to write a sentence so that the subject of your verb is doing the action. Ex: The Midwest sales team met the monthly sales goal.
Active voice
Any paid, non-personal communication, designed to influence a target audience. Ex: tv commercial
Advertising
Which of the following is true about non-profit corporations?
The goal is something other than earning a profit
What is the wheel of retailing?
The idea that retail stores will become more upscale as they move through their life cycle
Conceptual skills are most likely found and are most needed in which level of management?
Top
A method of short-term financing where suppliers ship materials without requiring payment at the time of delivery. *"Buy now, pay later"* allows you to use existing cash for other immediate needs.
Trade credit
This term means the *debts of the company are the personal debts of the owner*- there is no difference between the company and the owner in the eyes of the law.
Unlimited liability
What is the main disadvantage of a sole proprietorship?
Unlimited liability
When would it be appropriate to have autocratic leaders who make all decisions themselves?
When there is a crisis or emergency
Distributors that buy products from producers and sell them to other businesses or non-final users.
Wholesalers