Business Midterm
What below is not an insurance for your business you can purchase? - Employee Health Insurance - Workers Compensation - Professional Liabilities - 401 K
401 K
Labor, as a factor of production, refers to: - Rent and Wages - All workers in business - full employment - time spend working on a task - only hourly wage earners
All Workers in Business
Which of the following is the BEST example of a not-for-profit business? - Kellogg's - The American Cancer Society - Hightower Construction Company - FedEx Delivery Service - McDonalds
American Cancer Society
What is the tax impact for debt financing? - Can deduct the entire debts as cost of doing business - Can stop paying taxes until the loan is repaid - No Tax Impact - Can deduct interest payments as costs of doing business
Can deduct interest payments as costs of doing business
What is the salesperson doing when, after his presentation is over, he asks, "May I call the company and place your order for 20 cases of Ecco brand golfing shoes?" - Closing the Sale - Approaching the Customer - Prospecting the Customer - Looking for Sales Leads - Asking qualifying questions
Closing the Sale
Jenny keeps track of day-to-day operational data to make sure her employer has enough cash to run the business and will determine if and when the company she works for should open a second distribution center. Joan is a(n) _____ manager. - Accounting - Financial - Operations - Marketing - Facilities
Financial Manager
Selling more rainwear in Seattle than in San Diego due to the annual rainfall is an example of which type of marketing segmentation? - Psychological - Volume - Demographic - Psychographic - Geographic
Geographic
As one of the factors of production, natural resources includes all of the following EXCEPT: - Farmland - Machinery - Oil Deposits - Water - Coal
Machinery
In _____, goods are produced using mass production techniques up to a point. Then production is custom tailored to the needs or desires of individual customers. - Individualized production - Production-to-order - Niche Marketing - Just-in-time production - Mass Customization
Mass Customization
Jenny is planning to sell handmade masks over the Internet. As she decides what to charge for a full-sized quilt, Manow will calculate her fixed and variable costs. At this point, Manow will be developing her _____ strategy. - Product - Pricing - Possession - Promotion - Place
Pricing
_____ is the amount that you earn on each product that you sell after paying for the costs of the products and the overhead expenses. - Revenue - Yield - Profit - Turnover
Profit
The sales process begins with the salesperson locating companies or people who are most likely to buy the seller's offerings. This activity is called: - Target Marketing - Market Research - Screening - Brainstorming - Prospecting
Prospecting
American Handgunner, Shooting Industry and Guns Magazine are all periodicals aimed at people who enjoy hunting and target shooting and want to improve their skills and stay current in the latest technology. These magazines use _____ segmentation. - Demographic - Psychographic - Volume - Geographic
Psychographic
_____ is a strategy that focuses on forging long-term partnerships with customers. - Relationship Marketing - Mass Customization - Niche Marketing - Transactional Marketing - Exchange Targeting
Relationship Marketing
A strategy of charging a high introductory price for a new product that invites eventual competition is called price: - Kiting - Enchantment - Escalation - Skimming - Penetration
Skimming
External Forces: Consumers increasingly want healthier food
Sociocultural Forces
In new-product development, _____ is the stage at which products that do not meet new-product goals are rejected. - Weeding Out - Screening - Scrubbing - De-Activating - Prospecting
Sreening
The purpose of accounting is to help _____, who are interested in the activities of a business because they're affected by them. - Fiduciaries - Stakeholders - Investors - Shareholders
Stakeholders
The _____ of any country is measured by the output of goods and services people can buy with the money they have. - Standard of Living - GDP - Exchange Rate - Consumer Price Index - Consumer Productivity
Standard of Living
The _____ is the entire sequence of securing inputs, producing goods, and delivering goods to a customers. - Production Life Cycle - Product Life Cycle - Supply Chain - Demand Chain - Channel of Distribution
Supply Chain
Your _____ market consists of a specific group of consumers who are interested in your product, have access to it, and possess the means to buy it. - Local - Strategic - Target - Popular
Target
The goal of cellular manufacturing is to: - Create a team environment - Create a zero-defect environment - Eliminate Shrinkage - Provide quick and inexpensive customer service - Reduce customer defection
create a team environment
Round the number to 2 digits after the decimal point in $M: $287,569K
$287.57M
Jenny started a dog walking business at the start of the summer. She spent $10 to make signs for her service and posted them all over her neighborhood. She spent $60 for a leash and a pooper-scooper. She charged $10 per dog and walked 5 dogs per day for 3 months (assume 30 days per month). What was Jenny's profit for her summer gig? - $4,490 - $4,440 - $4,500 - $4,900 - $4,430
$4,430
A company seeks a(n) _____ by registering the name of a product with the U.S. Patent Trade Office. - Trademark - Copyright - Endorsement - Brand Name
Trademark
_____ involves creating a unique marketing mix for every consumer. - Niche Marketing - Flexible Marketing - Aggregated Marketing - Macro marketing - One-to-one Marketing
One-to-One Marketing
External Forces: Customers can order from their phone app, eliminating needs for workers to take orders
Technological Forces
What typically constitutes the biggest part of the cost for intermediaries? - Production - Inventory Control - Warehousing - Transportation
Transportation
Services provided by a surgeon performing emergency appendectomy belong to which product/service category? - Shopping Goods - Unsought Goods - Convenience Goods - Luxury Goods
Unsought Goods
A secured Internet service provider would be very likely to attract the attention of _____ because it is in a high-tech industry with lots of opportunity for rapid growth. - Intrapreneurs - Multipreneurs - Venture Capitalists - Leveraged Capitalists - Business Opportunists
Venture Capitalists
The categories of heavy, moderate, and light users have to do with which type of segmentation? - Benefit - Demographic - Psychographic - Quantitative - Volume
Volume
Which of the following companies would be LEAST likely to use the continuous process? - An oil refinery - Plywood Plant - Steel Manufacturer - Chemical Company - Bakery
Bakery
The three most popular types of marketable securities are Treasury bills, certificates of deposit, and: - Treasury Notes - Corporate Bonds - Commercial Paper - Money Market Funds - Checking Accounts
Commercial Paper
External Forces: Largest competitor launched an aggressive promotional campaign for their new menus
Competitive Forces
Doritos, Soda, and Chewing Gum belong to which product categories: - Specialty Goods - Convenience Goods - Unsought Goods - Shopping Goods
Convenience Goods
The primary goal of any business is to satisfy the needs of its _________ - Creditors - Managers - Customers - Employees
Customers
_____ is the process in which a firm continuously collects and evaluates information about its external environment. - Marketing Research - Secondary Data Collection - External Monitoring - Relationship Marketing - Environmental Scanning
Environmental Scanning
A mark-up of 200% by a retailer for a shirt that cost $10 from the wholesaler results in a retail price of: (Hint): Selling Price = (Markup / 100% * Product Cost) + Product Cost - $100 - $30 - $200 - $20
$30
_____ deals with reporting to outsiders. _____ accounting deals with the internal operations of the firm. - External Accounting; Internal Accounting - Financial Accounting; Managerial Accounting - Financial Accounting; Auditing - Auditing; Managerial Accounting - Bookkeeping; Financial Accounting
- Financial Accounting; Managerial Accounting
It costs on average ___ times more to attract a new customer to buy than to sell additional products to an existing customer. - 2 - 8 - 5 - 10
5x
Cash flows from _____ activities are derived from the day-to-day business of your main line of the company. - Investing - Sales - Operating - Accounting
Operating
External Forces: Recession causing consumers not to eat out as much
Economic Force
Three major sources and uses of cash in a business include all except: - Financing - Assets - Operations - Investments
Assets
This week, Jenny's Fish Shack had sales of $5,000. Employees were paid $2,000; food costs were $1,500; and rent was $500. Profit for the week was... - $1,000 - $4,000 - $3,000 - $2,000
$1,000
Public relations departments functions include: (select all that are true): - Write press releases - Furnish company speakers for business and civic clubs - Encourage employees to take active roles in community organizations - Buy ad space from google - Develop content for television ads - Write speeches for corporate officers
- write press release - furnish company speakers for business and civic clubs - encourage employees to take active roles in community organizations - write speeches for corporate officers
ABC Company has the following revenue in 2015, 2016, 2017: 2015: $38,000 2016: $45,000 2017: $50,000 What is the revenue growth rate for ABC in 2016? - 18% - 84% - 11% - 27%
18%
_____ ratios measure the degree and effect of the firm's use of borrowed funds to finance its operations. - Equity - Debt - Profitability - Liquidity - Income
Debt
Its debt-to-equity ratio examines the risk entailed by a company's _____. - Debt Structure - Sales Growth - Break Even Point - Stock Portfolio
Debt Structure
The _____ ratio measures the relationship between the amount of debt financing and the amount of equity financing. - Sales-to-Ownership - Liability-to-Asset - Debt-to-Revenue - Debt-to Equity - Liability-to-Ownership
Debt-to-Equity
What happens to the Sales revenue for a product in Stage 4 of PLC? - Rising Rapidly - Declining - Stabilizes then begins to decline - Flat
Declining
The major advantage of debt financing is the: - Number of different sources from which it is available - Lack of dependence on collateral - Absence of factoring - Deductibility of Interest Expenses - Amortization Benefits
Deductibility of Interest Expenses
Computer-aided manufacturing (CAM) uses computers to: - Design new products - Test new products - Modify products - Develop and Control production processes - Design new programs
Develop and Control Production Processes
What is the annual payment obligation for equity financing? - Must pay interests - Must pay dividends - Interests payment not mandatory - Dividend payments not mandatory
Dividend payments not mandatory
The Japanese inventory system that minimizes inventory costs and provides those inputs as they are needed for a particular production run is called the ______ system. - Materials Requirement - Perpetual Inventory - Just-In-Time - Controlled Assembly - Raw Materials Coordination
Just-In-Time
The pricing strategy of marking products below normal markup or even below cost to attract customers to a store where they would not otherwise shop is called _____ pricing. - Psychological - Leader - Economy - Skimming - Rebate
Leader
Accounting can help your business in all of the following ways except _____. - Reveal whether you made a profit - Show if business did better or wore from one month to another - Show value and sources of assets - Making sure company always shows to be profitable
Making sure company always shows to be profitable
What is the money that a company earns after paying all of its business expenses? - Gross Margin - Net Profit Before Taxes - Sales - Net Assets
Net Profit before Taxes
The manufacturing strategy whereby a firm produces products outside of its own plant is called: - Licensing - Outsourcing - External Producing - Franchising
Outsourcing
Which of the following is an example of an individual factor that influences the consumer decision-making process? - Family - Culture - Personality - Opinion Leaders - Neighborhood
Personality
External Forces: workers must be paid extra hazard paid for working through the pandemic
Political / Legal Forces
Nike charges $350 for a pair of jogging shoes while the average market price for similar type jogging shoes are $65, the company was using a strategy of _____ pricing. - overthetop - target - cost-based - prestige
Prestige
_____ involves calculating and interpreting financial ratios taken from the firm's financial statements in order to assess its condition and performance. - Ratio Analysis - Performance Analysis - Benchmarking - Financial Reporting - Organizational Performance Appraisal
Ratio Analysis
Which of the following is NOT a form of sales promotion? - Contests - Samples - Advertising - Coupons
Advertising
A _____ is any activity that provides goods or services to consumers for the purpose of making a profit. - service - business - value exchange - transaction
Business
There is a facility in California that takes off-the-shelf Ford Mustangs and hones them into high-performance vehicles. The assembly line at this facility is simply a line of cars on hand-pushed carts that are moved from station to station, but many of the operations that are typically performed in an assembly plant do take place here. Using this system the company has turned out over 8,000 vehicles, more than any other American specialty vehicle manufacturer. This is an example of: - Niche Marketing - Individualized Production - Mass Customization - Just-in-Time Production - Mass Production
Mass Customization
Which of the following is NOT really a financial ratio though it is often used to measure a firm's overall liquidity? - Current Ratio - Net Working Capital - Net Profit Margin - Return on Equity - Earnings per Share
Net Working Capital
_____ is arrived at by subtracting current liabilities from current assets. - Retained Earning - Net Margin - Owners' Equity - Net Profit - Net Working Capital
Net Working Capital
Another term for owners' equity is: - gross sales - assets - liabilities - net worth - gross worth
Net Worth
Integrated marketing communications (IMC): (select all that are true) - Is a careful coordination of all promotional activities - Only applies to high end products where branding is important - Is typically overseen by a marketing communications director - Produces a consistent and unified advertising message
- is a careful coordination of all promotional activities - is typically overseen by a marketing communications director - produces a consistent and unified advertising message
_____ stock is a security that represents an ownership interest in a corporation and has voting rights. - Preferred - Common - Par Value - Treasury - Equity
Common
External Forces: Switching to biodegradable containers and utensils increased costs by 5%
Environmental Forces
In 2006, consumers held on to a 2007 Chevrolet Monte Carlo at the State Fair of Texas in an endurance competition that tested consumers to see who can hold on to the car the longest to win it. USA Today published an article about the winner of the competition is an example of which promotional activity? - Corporate Relations - Personal Selling - Public Relations - Advertising - Social Media Marketing
Public Relations
Which of the following is not an attribute for geographic segmentation? - Urban, suburban, rural - East coast, West coast - Climate - Religion
Religion
_____ are those expenses related to marketing and distributing of a company's products. - Selling Expenses - Distribution Costs - Functional Costs - Revenue Expenses - Administrative Expensive
Selling Expenses
What is true regarding Co-branding ____ (select all that are true) - Leverage another brand to create synergies between both brands - Expand customer reach - Confuses customers - Only benefit one of the brand
- Leverage another brand to create synergies between both brands - Expand customer reach
Jenny's sporting goods company has the following in its 2017 financial statements: Revenue: $50,000 Operating Income: $5,000 Assets: $25,000 Current Assets: $5,000 Non-Current Assets: $20,000 Liabilities: $12,000 Current Liabilities: $3,000 Long Term Liabilities: $9,000 Owners Equity: $13,000 Common Stocks: $2,000 Retained Earnings: $11,000 What is the return on sales for the company? - 10% - 20% - 2% - 25%
10%
Accountants do all of the following except _____. - Summarize business activities - Interpret Financial Info - Measure Business Activities - Competitor Info
Competitor Info
What are the two distinct markets toward which sales promotions can be targeted? - Consumers and members of the marketing channel - Domestic and foreign - Retailer and Manufacturer - External and Internal Customers - Rural and Urban
Consumers and members of the marketing channel
Financial managers constantly strive for a balance between: - Opportunity for profit and potential for loss - Cash and marketable securities - Economic and social responsibility - Common and Preferred Stock - Dividends paid out and interest payments
Opportunity for profit and potential for loss
A(n) _____ is a summary of the money flowing into and out of a firm. - Statement of Cash Flow - Short-Term Budget - Annual Stockholder's Report - Balance Sheet - Income Statement
Statement of Cash Flow
A(n) _____ is the financial statement that is used to assess the sources and uses of cash flow during the year. - Trial Balance - Profitability Statement - Income Statement - Statement of Cash Flows - Balance Sheet
Statement of Cash Flows
What risk listed below insurance companies do not cover: - Fire - Employee Law Suits - Product Defects - Stock Market Crash - Theft
Stock Market Crash
What does Critical Path Method chart show? - Tasks that are the most complicated and need the best workers on the job - Tasks that cost the most money in production - Tasks that would delay the entire production process if delayed - Tasks that are essential to the products and other non-critical path tasks are not needed
- Tasks that would delay the entire production process if delayed
What is the primary difference between a good and a service? 1. A good costs more to market than a service 2. The development costs for a service is higher than for a product 3. A good is tangible, and a service is intangible 4. A good costs more to produce than a service 5. A service is tangible and a good is intangible
A good is TANGIBLE and a service is INTANGIBLE
An integral part of TQM is _____, which can be characterized as the commitment to making constant improvements in design, production, and delivery. - Continuous Improvement - Marketing Mix Improvement - Incremental Capacity - Quality Assurance
Continuous Improvement
