BUSAD 250 - Chapter 1,2,6
The framework that outlines how a firm plans to generate revenue is known as a(n) ____________. A. income statement B. balance sheet C. business mindset D. business model Your answer is correct. E. stakeholder model
Business Model
Every company takes risks in order to conduct business. Which of the following statements linking risk and reward is FALSE? A. The risk associated with business decisions needs to stay attached to those decisions. B. Without entrepreneurs and companies willing to accept risk, very little would get done in the economy. C. Without rewards, businesses would have no incentives to take risks. D. Businesses take risks in anticipation of future rewards. E. Any company that believes it can pursue rewards without facing risks has strong decision making entrepreneurs.
Any company that believes it can pursue rewards without facing risks has strong decision making entrepreneurs.
Which of the following is NOT a major contribution of small businesses?
B. They meet the needs of smaller organizations.
A(n) _______ is a firm pursuing profits that offers products and services projected to fulfill consumers' needs. A. industry B. non-profit organization C. government economic agency D. business Your answer is correct. E. stakeholder
Business
A(n) _________ summarizes an anticipated company project, including the project's objectives and strategies for accomplishing those objectives.
Business Plan
Which one of the following statements is NOT an accurate reflection of the definition and functions of a business plan?
Business plans are written soon after the company is launched, when the company is seeking funding, and when it is up and running.
What does the Fed do to inject money into the economy and decrease the federal funds rate? A. Sells bonds, bills, and notes B. Adjusts reserve requirements C. Buys treasuries Your answer is correct. D. Lends through a discount window E. Sells treasuries
Buys treasuries
An economic system centered on economic freedom and competition is known as ___________. A. capitalism Your answer is correct. B. nationalism C. socialism D. a planned system E. communism
Capitalism
Which of the following is NOT cited as a potentially negative effect that business can have on society? A. Disrupting communities B. Causing tax losses Your answer is correct. C. Causing financial instability D. Creating health and safety risks E. Generating pollution and creating waste
Causing tax losses
Company LMT competes with other companies in the industry by offering the lowest prices around. By offering products at the lowest possible cost compared with other companies, Company LMT has a(n) ____________. A. employee advantage B. not-for profit mindset C. business mindset D. economic subsidy E. competitive advantage
Competitive Advantage
The ____________ function ensures consumers have the assistance and information they require before, during, and after a purchase is made. A. sales B. marketing C. human resources D. customer support Your answer is correct. E. operations
Customer Support
The ________ section of a business plan explains the purpose of the business and what it hopes to accomplish.
mission and objectives
A _____________ charts the amount of merchandise consumers tend to buy at varying costs. A. demand curve Your answer is correct. B. consumer price index C. supply curve D. business cycle E. producer price index
Demand Curve
A company (regardless of industry) that uses digital technology involving connectivity, communication, and AI as a foundation of its value-creation processes is referred to as a(n) ______. A. innovator B. digital enterprise Your answer is correct. C. disruptive enterprise D. goods-producing firm E. service-producing firm
Digital enterprise
___________, such as smart phones and social media, fundamentally change the nature of an industry and can be influential enough to create or destroy whole companies. A. Barriers to entry B. Service businesses C. Social environments D. Disruptive innovations Your answer is correct. E. Social entrepreneurs
Disruptive innovations
Which function can be utilized for both marketing products to retailers and delivering products after the sale? A. Finance B. Sales C. Distribution Your answer is correct. D. Marketing E. Information technology
Distribution
An example of an intangible good is ___________. A. a fleet of aircraft B. a book C. downloadable music files Your answer is correct. D. a computer E. an apple
Downloadable music files
The _____________ involves the circumstances that form the behavior of consumers and merchants and affect the cost and accessibility of products and services. A. economic environment Your answer is correct. B. market environment C. technological environment D. social environment E. legal environment
Economic Environment
Which of the following transpires when the economy is developing and buyers are spending currency, inspiring a rise in hiring and salaries, and motivating higher customer purchasing levels? A. Economic contraction B. Monopolistic competition C. Pure competition D. Economic expansion Your answer is correct. E. Scarcity
Economic Expansion
_____________ refers to the analysis of how a society utilizes its limited assets to create and allocate various products and services. A. Nationalizing B. Economics Your answer is correct. C. Privatizing D. Regulation E. Capitalism
Economics
______________________ is the optimistic, progressive aspiration to establish lucrative, sustainable business ventures.
Enterprise Spirit
Which section of the plan should address how investors can cash out or sell their investment?
Exit Strategy
Which of the following is accountable for safeguarding currency in consumer accounts and overseeing the transition any time a financial institution collapses? A. Federal Deposit Insurance Corporation Your answer is correct. B. The Department of the Treasury C. Fannie Mae D. Federal Reserve System E. Freddie Mac
Federal Deposit Insurance Corporation
Which of the following describes the rate that member banks charge each other to borrow money overnight? A. Federal funds rate Your answer is correct. B. Subprime rate C. Prime rate D. ACH rates E. Discount rate
Federal funds rate
Which two business functions listed below ensure that a corporation has the resources it needs to operate, and develop reports for company management and government regulators? A. Sales and marketing B. Human resources and operations C. Finance and accounting Your answer is correct. D. R&D and legal E. Operations and marketing
Finance and accounting
___________ describes a wide variety of innovations that have the potential to improve or radically disrupt financial services. A. Mobile apps B. AI C. Neobanks D. Cryptocurrency E. Fintech
Fintech
Which of the following is an economic system in which judgments about what to manufacture and in what amounts are determined by the market's shoppers and retailers? A. Nationalism B. Planned system C. Socialism D. Free-market system Your answer is correct. E. Capitalism
Free-market system
Mateo is a manager at Lawn Care Products (LCP). His primary responsibilities include recruiting, hiring, and supporting employees as well as making sure the company is in compliance with regulations regarding employee rights and workplace safety. Which function does Mateo perform at LCP? A. Finance B. Operations C. Customer support D. Sales E. Human resources
Human Resources
Which one of the following statements does NOT reflect true understanding of the demand and supply relationship? A. Yield management can be used to adjust prices. B. When demand curves slope downward, the implication is that, as prices drop, more people will be willing to buy. C. A demand curve shows the relationship between demand and supply. D. If demand weakens, businesses can keep prices consistent. Your answer is correct. E. Demand at all price points can increase or decrease.
If demand weakens, businesses can keep prices consistent.
Which of the following involves systems that permit companies to promote communication and information usage in order to offer new services to their customers? A. Research and development B. Manufacturing C. Human resource management D. Operations management E. Information technology
Information technology
Which of the following is a firm's first offering of the availability of stocks for purchase?
Initial public offering
The _________________ is comprised of specific consumers, influences that affect the purchasing behavior of those consumers, and competitors that sell similar products to those consumers. A. legal environment B. market environment Your answer is correct. C. economic environment D. technological environment E. social environment
Market Environment
The ___________ function's responsibility involves finding opportunities in the marketplace, working with research and development to create products that take advantage of those opportunities, creating promotional strategies to connect with likely consumers, and establishing prices. A. finance B. operations C. marketing Your answer is correct. D. customer support E. distribution
Marketing
__________ is the analysis of economic activity among firms, customers, and industries that collectively establish the extent of products and services that are required and distributed at various prices. A. Capitalism B. Microeconomics Your answer is correct. C. Socialism D. Nationalization E. Macroeconomics
Microeconomics
What is the difference between monopolistic and oligopolistic competition? A. In monopolistic competition, customers have limited choices, whereas in oligopolistic competition, there are ample customer choices. B. In monopolistic competition, the competition in a market is quite small compared with oligopolistic competition. C. In an oligopoly, customers have as many choices as in monopolistic competition. D. Monopolistic competition has numerous sellers who offer products that can be distinguished from competing products, whereas in an oligopoly, the number of competitors in the market is quite small. Your answer is correct. E. Most of the competition in advanced free-market economies is oligopolistic, compared to monopolistic competition.
Monopolistic competition has numerous sellers who offer products that can be distinguished from competing products, whereas in an oligopoly, the number of competitors in the market is quite small.
Which term describes a condition in which a sole company controls a particular market to the extent that it has the ability to control prices? A. Privatizing B. Opportunity cost C. Oligopoly D. Nationalizing E. Monopoly
Monopoly
Which of the following involves a political system's seizure of particular firms or business ventures? A. Fiscal policy B. Oligopoly C. Nationalizing Your answer is correct. D. Privatizing E. Monopoly
Nationalizing
____________________ attempt to operate efficiently and effectively to accomplish their goals but are not motivated by profits. A. Goods-producing businesses B. For-profit organizations C. Not-for-profit organizations Your answer is correct. D. Green businesses E. Service businesses
Not-for-profit organizations
Which of the following business functions involves purchasing, logistics, and facilities management? A. Information technology management B. Marketing management C. Operations management Your answer is correct. D. Research and development E. Finance
Operation Management
____________ includes people and processes used to produce goods and perform services that a specific company offers. A. Marketing management B. Operations management Your answer is correct. C. Human resources management D. Sales management E. Financial management
Operation Management
Which of the following represents the worth of the most attractive option that was ultimately not selected? A. Demand curve B. Scarcity C. Equilibrium point D. Producer price index E. Opportunity cost
Opportunity Cost
Which of the following is defined as the value of performing at a high level and behaving with determination and pride? A. Protocol B. Professionalism Your answer is correct. C. Incompetence D. Proficiency E. Etiquette
Professionalism
Which of the following occurs when revenue, employment, and manufacturing decline over at least a 6-month period of time? A. Recession Your answer is correct. B. Deregulation C. Scarcity D. Deflation E. Inflation
Recession
__________ is the functional area in charge of visualizing and creating new products. A. Visualization B. Quality control C. Operations D. Marketing E. Research and development
Research and development
________________ is the money a company generates through the sale of products and services. A. Accounts payable B. Revenue C. Profit D. Expenses E. Costs
Revenue
Nicole works at ABC Retailers. Her primary responsibility is to get to know customers to determine their wants and needs in order to persuade them to make a transaction. Which function is Nicole performing? A. Distribution B. Operations C. Human resources D. Customer support E. Sales
Sales
FreshGrow, an organic vegetable market, is not a leader in its industry; is individually owned, managed, and maintained; and has 32 employees. FreshGrow is best described as a ______________.
Small Business
Which of the following is a way that smaller companies differ from larger companies?
Small firms have a narrow focus.
The _________ environment involves trends and forces in society, such as population trends affecting companies, changing consumer markets, and fluctuations in the workforce. A. legal B. economic C. technological D. market E. social
Social
_____________ is an economic structure involving government possession and control of significant business activities joined with private possession and control of less vital business activities. A. Oligopoly B. Capitalism C. Socialism Your answer is correct. D. Microeconomics E. Communism
Socialism
Which of the following is not cited as one of the essential business skills? A. Data literacy B. Collaboration C. Strategic thinking Your answer is correct. D. Critical thinking E. Business ethics and social responsibility
Strategic Thinking
The ________ environment involves the application of science to innovations, products, and processes. A. social B. economic C. legal D. market E. technological
Technological
Who decides the monetary policy in the United States? A. The Fed's board of governors B. Regional investment banks C. The automated clearing house D. The Federal Open Market Committee Your answer is correct. E. Congress
The Federal Open Market Committee
An example of a reliance on machine learning is _________.
a self driving car
A(n) _________________________ is a group of individuals with particular knowledge or important connections that assists a company owner with the evaluation of strategies and decision making.
advisory board
Companies with solid growth potential may seek public funding, which can be secured from ________.
an initial public offering (IPO)
______________ are people who invest very small amounts of personal resources early in a new business's life in the hopes of eventually selling a percentage of the company for a profit.
angel investors
Which of the following provide new businesses with a variety of services—such as counseling and financial support—that a company needs to get under way?
business incubators
Which one of the following private sources of funding is extremely risky?
credit cards and personal lines of credit
____________ involves pursuing investment from the public for business ventures, investments, or loans.
crowfunding
Bitcoin is an example of _________. A. credit B. illegal tender C. fiat money D. cryptocurrency Your answer is correct. E. cash
cryptocurrency
The U.S. dollar is an example of _____________. A. speculative investments B. cryptocurrency C. illegal tender D. treasury bills E. fiat money
fiat money
Crowdfunding is an example of __________. A. conventional loan applications B. a brokerage house C. crytocurrency D. an intermediary E. fintech
fintech
A(n) ____________ is an agreement in which an entity acquires permission to retail goods and utilize certain features of another business's structure.
franchise
Which of the following describes an economic situation in which costs increase gradually through the economy as a whole? A. Recession B. Oligopoly C. Deregulation D. Supply curve E. Inflation
inflation
"Intrapreneurship" is difficult to implement for all of the following reasons EXCEPT _____________.
innovating within a larger organization is often much easier
Which of the following is NOT a common category of private financing?
ipo
The general capability of computers to learn is known as _______.
machine learning
______________ represent establishments that offer minor quantities of capital to company owners who might not be eligible for conventional loans.
microlenders
Banks which provide services entirely through mobile and digital channels with lower cost structures are _________. A. neobanks Your answer is correct. B. intermediaires C. robinhood D. robo advisers E. crowdfunders
neobanks
Many cities and states have a(n) ____________ that helps companies succeed and contribute to the local or regional economy, specifically.
office of economic development
In a ________ system, governments for the most part dictate the distribution of resources and restrict freedom of choice. A. capitalistic B. privatization C. planned Your answer is correct. D. free-market E. private enterprise
planned
________________ is the initial collection of resources expended in order to establish a company.
seed money
Macroeconomics is the study of ________. A. the economic behavior among buyers, organizations, and industries that together determine the quantity of goods and services demanded and supplied at different prices B. how a society uses its scarce resources to produce and distribute goods and services C. the analysis of a nation's more significant economic concerns, such as the manner in which firms compete, the impact of government policies, and the allocation and preservation of an economy's limited resources Your answer is correct. D. a small-scale perspective of economic behavior among consumers and businesses E. the effect of government policies and how an economy allocates its scarce resources
the analysis of a nation's more significant economic concerns, such as the manner in which firms compete, the impact of government policies, and the allocation and preservation of an economy's limited resources
Compared with starting a new business, buying an existing business has both advantages and disadvantages. One of the disadvantages of buying an existing business is ________.
the potential for a considerable amount of financing
Financiers who offer capital to support start-up companies in order to gain a percentage of ownership, with the goal of eventually turning the company around and selling it for a profit, are called ____________.
venture capitalists