Business Management

True or false: Effective managers should use strategic management rather than tactical management

False

Which level of management spends most of its time completing planning and controlling activities?

Middle management

The availability of a service must match the demand for that service at a specific time because it is

Perishable

Which of the following is NOT one of the five functions of management?

Producing

what are several factors affecting business that often present uninsurable risks?

Reputation risk, regulatory risk, trade secret risk, political risk and pandemic risk

A(n) _____ is a time plan for completing activities

Schedule

What is an income statement?

Shows total revenues and expenses for a period of time

________________________________ is the money needed to open a new business

Start-up financing

Intermittent processing would most likely be used in the production of

Textbooks

True or False: A cash budget is an estimate of the actual money received and paid out for a specific period.

True

True or false: policies and procedures help provide direction for a business

True

start up

a company or project undertaken by an entrepreneur to seek, develop and validate a salable economic model

innovation

an invention or creation that is brand new

The value of the buildings and equipment owned by a business can be determined in the

asset records

What are the benefits of using technology to help manage business operations?

automation and productivity smaller businesses can compete with large businesses by being more swift and agile and responding to change faster

In order to be a successful entrepreneur you should

be competitive ,creative, independent goal oriented and persistent

what is tactical management?

business environment allows a manager to choose the best tactics or methods for each situation that arises, rather than following a particular standard procedure.

a written description of a business idea and how it will be carried out is called a

business plan

what information should be considered when selecting an insurance company

collect information about the type and cost and the quality of service provided by the company if a loss occurs

several strong influences for change in the workforce include

consumer preferences, economic condition (business cycles) new technology and business competition

what is the difference between customization and materials processing?

custom is making for one unique individual, material processing is the way things are changed to make other products

what is a payroll record?

it is a electronic use for the employer to have records to pay the employee

what is the purpose of the payroll system?

it manages everything having to do with the process of paying employees and filing employment taxes

Entrepreneurs internship began when

it originates from a source

The 7 major goals for human resource are

recruit workers, hire quality employees, train new employees, promote diversity, employee needs and retain workers

The obligation to complete specific work is

responsibility

The financial record of employee compensation, deductions, and net pay is known as

payroll

Which of the following is not one of the three important elements of a company's financial strength?

payroll

some ways employees help employees meet demands outside the job are

personal time , family lave and flextime

what are several ways to develop leadership skills

practice discipline, take on more projects, learn to follow, develop

list the 3 steps in financial decision making

preparing a budget, use the budget to operate the business and make the needed adjustments

Which of the following is not one of the common activities of all businesses?

producing goods and services

The form of ownership that gives one person sole control over all business decisions is the

proprietorship

identify the 4 important types of business operations

sole proprietorship, partnership, corporation, and limited liability company(LLC)

short-term financing

the money needed to pay for the current operating activities of a business

what is a earnings report?

the receipt for the employee once they get their paycheck also known as a pay stub

the sources of financing that entrepreneurs use for new business are

the venture ,money, business incubators, government grants and bank loans

small business compete successfully with larger businesses if

they all had great customer service, innovated easier and connected with the audience

it is important to use a team approach when starting a new business because

you need a financial plan

Small Business Administration (SBA)

A government agency that helps small business owners develop business plans and obtain financing and other support for their companies.

Which of the following conditions will result in a lower rather than a higher price?

A large quantity of available products

What is the basic financial equation for businesses

ASSETS= LIABILITIES+EQUITY

Which of the following is not a characteristic of entrepreneurship in the United States?

About 3% of people aged 18-64 are involved in entrepreneurship activity

A person who is not a manager but is still able to get a group focused and organized is using

Informal influence

True or False: The most basic form of production is manufacturing

False

The way people get along with each other is known as.

Human relations

The two steps in a marketing strategy are

Identifying a target market and developing a marketing mix

Which of the following is NOT a standard of ethical behavior?

It should not give the company a competitive advantage

The ability to motivate individuals and groups to accomplish important goals is

Leadership

Money needed for the important resources of a business (such as land, buildings, and equipment) that will last for many years is called

Long-term financing

Which of the following is NOT one of the reasons small business fail?

Not enough employees to do the work

The most expensive but also most effective type of promotion is

Personal selling

Inventory managers keep records of

Production resources and finished products

what is a balance sheet?

Shows what a company owns (assets) and owes (liabilities) at a specific moment in time

What are the 4 steps in preparing a business budget?

Step One-Identify your goal Step Two- Review what you have Step Three- Define the costs Step Four- Create the budget

Customer Analysis

The part of a business plan that discusses sales forecasts and the location and number of potential patrons.

Pure research is done without a specific product in mind.

True

True or False: All investors in a general partnership have full liability for the debts of the business.

True

True or False: Businesses are responsible for making required federal and state payments for each employee.

True

True or False: Managers are responsible for the ethical actions of a business.

True

True or False: Most new products introduced by companies are not totally new, but are improvements on existing products.

True

True or False: Sales and profits for a specific period are reported in a company's income statement.

True

operations plan

the part of a business plan that discusses the organization of the company and describes its major operations

What is a risk?

the possibility of incurring a loss

small business are responsible for almost _____ % of the U.S gross domestic product each year

50

The Small Business Administration considers a business small if it employs fewer than ____ employees.

500

Improvement

A designed change that increases the usefulness of a product, service, or process.

A business plan does not have to be written because the business owner is well aware of the information in the plan.

False

An entrepreneur who starts a new business is not considered to be a manager.

False

Employees--rather than managers--are responsible for the financial health of a company.

False

Most small business owners enjoy being part of a team.

False

Payroll records need to be maintained for all full-time employees, but not for part-time employees.

False

Every business begins with a(n

Idea

Money provided by large investors to finance new products and new businesses that have a good chance to be very profitable is known as

Venture capital

sources of financing for a small business would be

debt

what are the 2 parts of ethical behavior?

decisions and action

operating

describes the financial plan for ongoing operations of the business for a specific period of time

The electronic transfer of net pay into an employee's bank account is known as

direct deposit

Differences between actual and expected performance are

discrepancies

________________ is the process of starting, organizing, managing and assuming responsibility for a business

entrepreneurship

what is the difference between formal and informal influence?

formal has more power

Service Corps of Retired Executives (SCORE)

group made up of retired executives who volunteer their time to provide entrepreneurs with real-world advice and know-how

the benefits of diversity are

increased productivity, improved creativity and increased profit

A retailer is an example of a(n)

intermediary

A special form of business organization that combines advantages of a corporation and a partnership is a

limited liability company

What are the differences among the 3 levels of managment

low level, middle level and top level. Difference if one is more responsible

the 4 points that can be used to describe a small business are

lower revenue , profitability smaller teams of employment small market area

What are the 3 forms of production

mass production, mass customization, and customization

long-term financing

money needed for the main resources of a business that will last for many years

venture capital

money provided by large investors to finance new products and new businesses that have a good chance to be very profitable

Human resource personnel need to study jobs before beginning the hiring process because

need to obtain specific information

True or False: Financial planning is needed by a small business only until it begins to make a profit

False

True or False: Research has proven that effective leaders are born and not made

False

True or False: The first step in marketing research is to develop a data collection procedure

False

When businesses specialize in producing a specific type of product, a channel of distribution will be needed to adjust differences in

Assortment

A competitive advantage that small businesses have over larger businesses is.

Attention to unique customer needs

identity 4 ways that a business can deal with risks

Avoidance, Reduction Transfer and retention

The best practices among all competitors are

Benchmarks

True or False: Document management software keeps track of project calendars, tasks, to-do lists, work assignments, and project resources

False

True or False: Everyone who owns or manages a business in an entrepreneur.

False

Important principals that guide decisions and actions in a company are known as

Core values

Building a specific and unique product to meet the needs of one customer is known as

Custom manufacturing

Which of the following is an example of a rational buying motive?

Economy

Which of the following is part of facilities management?

Energy and environmental management

The current value of investments made by the owners of a business can be found in the

balance sheet

why do managers and leaders need effective human relations skills?

because much of their success depends on their ability to get along well with people

what are the core values of an organization?

behavior- modeling ethnic

The people who make the major policy and financial decisions in a corporation are the

board of directors

the 3 types of incentive systems for employee compensation are

bonuses, profit and sharing stock

what are some types of financial records that businesses must keep?

invoices, receipts , employee payroll, purchases, expenses, VAT records, tax returns and any supporting documents must be stored for a least 3 years

Which of the following is not shown on an organizational chart?

job descriptions

common reasons businesses fail are

lack of experience, insufficient capital (money) , poor inventory management and poor credit arrangement

The largest number of the U.S. businesses employ

no employees other than the owner

Current liabilities are amounts that will be paid in less than

one year

describe the 3 activities that are a part of production planning

production process, production resources, personnel

inventory

products a company owns and expects to sell in its normal operations

The basic financial equation is

revenue - expenses = profit or loss

the purpose of a evaluation conference is to

review and discuss results of evaluation

identify 4 important financial performance ratios used by managers to determine how well the business is performing

start-up budget plans income and expenses from the beginning of a new business or a major business expansion until it becomes profitable. Operating budget describes the financial plan for ongoing operations of the business for a specific period

what is strategic management

strategic outlines actions to achieve team goals

what actions can U.S companies take to minimize the risk of doing business in foreign markets

take time to get to know the other party, before trusting foreign clients or commercial partners take the time to really get to know them

The best definition of marketing is

the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.