Entrepreneurship
Patents, trademarks, and copyrights are all methods used to protect
Intellectual Property
What types of businesses can be owned by thousands of stockholders?
Open Corporations
What is an example of an amplified word-of-mouth strategy?
a company asks customers to share product reviews on a website
Which of the following is an example of business process thinking:
a company strives to fix its method of internal communications
Which of the following is a situation indicating a problem with product durability:
a customer complains that his/her new cell phone battery quit after one week
A car company has decided to invest less in its successful pickup truck and to use those funds instead on the development of its new hybrid vehicle. This is an example of
a harvest strategy
Which of the following businesses is the best example of an entrepreneurial venture:
a vet invents and sells a device to prevent horse water troughs from freezing
Which of the following situations is an example of a social risk that is associated with starting a new business:
adam is working 14 hours a day at his new company and is not spending time w friends
Which of the following factors is associated with innovative organizations:
adaptability
Why has enterprise risk management developed?
an increasingly diverse array of risks
Which of the following presents the first three steps in the accounting cycle in the correct order:
analyze, journalize, post
One of the benefits to the business of an effective employee selection procedure is a(n)
appropriate match of employees to jobs
Which of the following equations should employees know when they are verifying the accuracy of a business's balance sheet:
assets = liabilities + owner's equity
A risk management program helps __________ risk, which makes it easier to organize and handle them.
categorize
Antonio has been tasked with helping the accounting staff at his company make the transition to a new recordkeeping software. He has been instructed to facilitate training sessions, answer employee questions, and show the staff how the new software will help make their jobs easier. Antonio is performing __________ management.
change
Businesses that obtain credit from banks usually are required to provide acceptable
collateral
Which of the following are components generally included in a company's business plan:
company description, financial plan, marketing plan
Bernard's business is more successful than his competitors' because he is innovative, which gives him a(n) __________ advantage.
competitive
Luke is reviewing several internal and external reports to compare his company's sales and market share in relation to those of other companies in the industry. What type of business analysis is Luke conducting?
competitive
Which of the following is an example of a tangible item that can be sold:
computer
Which of the following plans includes procedures for dealing with events that threaten to shut down business operations for an extended period of time:
continuity plan
Service contract A costs $1,500 yearly and includes 12 service calls each year. Service contract B costs $600 yearly and charges $70 per call up to 12 calls each year. Which contract is less expensive and by what amount?
contract B by $60
A fast-food company offers burgers, chicken nuggets, pizza, and french fries. Eventually, the company realizes that the pizzas are not profitable and decides to stop selling them. Which product-mix strategy is the company using?
contraction
Customer services that all retailers should provide include
convenient store hours and receipts for purchases
An important activity performed by a business's public relations staff is
crisis management
The CEO of a medium-sized business asked the top five executives to each prepare a sales forecast for the upcoming year. The forecasts were then averaged together to get the composite forecast. What method of forecasting was used?
jury of executive opinion
One factor that an entrepreneur should consider when assessing a venture opportunity is whether it will
lead to more opportunities
When analyzing market potential, businesses often look at consumer psychographic factors, such as personality characteristics and
lifestyles
Running out of inventory can result in
lost sales
When a business seeks to establish a budget or make major business decisions, what type of accounting does it use?
managerial accounting
Who is usually responsible for developing and promoting an ethical atmosphere in a business?
managers
The marketing function that includes creating strategies to attract the target customer to a business is
market planning
Businesses need a great deal of information to make effective decisions and solve specific problems. This information is usually obtained through
marketing research
Your target market is "poor" college students, so you base your unique selling proposition (USP) on value pricing. This is an example of a USP that is
meaningful to the customer
Performance standards should be
measurable
A business process change would likely be required if a company
merges with another company
When a supervisor must take disciplinary action, the supervisor should adopt a __________ attitude.
nonjudgemental
Which of the following would be most useful to a business that is evaluating customer experience:
online customer reviews
What type of information about employees do most businesses maintain in their personnel records?
past work experience
Pat's Pizza Place has introduced a new, low-fat pizza crust. In its advertising, management not only describes how tasty the crust is, but it also tells readers that the crust is low-fat and healthy. Pat's Pizza Place is using which of the following promotional communication characteristics:
persuasive
When an advertiser sends postage-paid sweepstakes entry forms to individuals, the advertiser is using __________ direct mail advertising.
persuasive
Planning the quantities to produce is an important part of production planning because it helps
prevent losses to the business
The determination of an exchange price acceptable to both the buyer and the seller of a product is called
pricing
Evan does not want the legal obligation of repaying a loan and is willing to share profits with others. Which of the following options is Evan most likely to select to fund a new venture:
private equity
A farmer with a produce stand in the yard is an example of a __________ distribution channel.
producer to consumer
Which of the following is a factor that new businesses consider when conducting an analysis of competitors in a specific market:
product quality and price
The primary cost factors that marketers must consider when developing a direct advertising campaign include list acquisition, delivery, and
production
Which of the following is not a factor that affects selling price:
profit control
Porter said to the group, "If we agree to proceed with this plan, the company's profitability will increase substantially. Because the company will be saving a lot of money, we are more likely to receive a higher pay increase next year." Porter is persuading the group members by
promoting benefits
Ben recently purchased a cell phone. The manufacturer provided a form and a special code with the phone's packaging. Ben completed the form, copied his sales receipt, and mailed these items back to the manufacturer along with the part of the packaging that contained the special code. Within six weeks, Ben received a $50 check from the phone manufacturer. What type of sales-promotion technique was used?
rebate
How does supply chain management increase customer satisfaction?
reduces the time it takes for goods to reach consumers
One reason why creditors review a business's income statement is to decide if the business will be able to
repay a loan
Which of the following techniques is the best example of leveraging existing business relationships:
sending holiday cards to clients
Corporate governance is primarily concerned with __________ desires.
stakeholder
Small-business owners often obtain ideas for new venture opportunities when they
talk with their customers and vendors
A purpose of market identification is to focus the marketer's selling efforts on the __________ market.
target
Because the MBC Company has one location that services the eastern part of the country and another location that services the western part of the country, the company's work flow is organized by
territory
A business should consider the impact that changes in the environment will have on the business's marketing mix because
the business can change its marketing mix
Which of the following statements about feasibility studies is true:
the feasibility study is completed before the business plan is developed
Which of the following attitudes should an entrepreneur have about new technological developments:
the impact of new technologies should be evaluated
Which of the following is a true statement regarding operating costs:
they are not directly related to production
A small restaurant wants to expand, but first it needs to raise funds. John wants to raise capital through debt financing, but his partner, Damien, isn't sure that's a good idea. What is one downside of debt financing that Damien could cite to prove his point to John?
they will have to pay interest on the borrowed amount
An important consideration when coordinating sequential tasks with team members is
timing
Why is it important for businesses to obtain marketing information about economic conditions, political systems, and technological changes throughout the world?
to remain competitve
Economies of scale are highly dependent on average
total cost
Le' Grand Hotel experienced record profits and chose to reinvest those profits back into the hotel for a major remodeling project. Where would these retained earnings be represented on a balance sheet?
under stockholders' equity
Which of the following is an example of an operating expense for a business:
utilities
Which of the following is an example of a safety procedure that a business might require its employees to follow:
wear protective headgear when working in hazardous areas
One of the objectives in a business's marketing plan is to increase sales by 15% by reaching more customers. What dollar amount is 15% if the business currently has 250 customers who each spend $10,000 per year?
375000
How does a business's gross profit compare to the industry standard of 30% if it has annual sales of $400,000 and cost of goods sold is $260,000?
5% higher
Pete is preparing a cash flow statement for his new business. If the startup costs are $27,645 and he has $36,200 cash, how much cash is available for Pete to operate the business?
8,555
Which of the following causes the greatest number of cultural sensitivity issues:
Communication
After being fired from his job, Jack wrote blog posts in which he criticized his former company and all of its employees. He made many negative comments, most of which were untrue. What tort is Jack committing?
Defamation
A business owner who prefers to maintain complete control of all business activities might consider structuring the venture as a(n)
Sole Proprietorship
Which of the following business activities is most likely to impact an organization's governance structures:
borrowing money from the bank
One tool a business can use to control expenses is a(n)
budget
A top-level executive is removed from his position on the Golden Ray Corporation's board of directors due to a personal scandal. The board then releases a detailed, professional statement to its stakeholders so they are aware of the situation. By doing this, Golden Ray Corporation is
demonstrating transparency
Which of the following questions would Allison ask herself when deciding if she should hire an assistant for her growing business:
does the workload require a fulltime or parttime employee
Which of the following phrases is most likely to be listed in an official job description:
edit company newsletter
What is a factor that a growing business might consider when determining hiring needs?
employee to customer ratio
One reason that an excellent business vision is general rather than specific is that
everyone must relate to it
Although hiring a highly skilled employee is an added expense, a business owner benefits because the employee's activities increase the firm's overall productivity based on his/her
expertise
When Deanna, a small-business owner, allocates 6% of her company's profit to product development, she is investing which type of resource:
financial
Gianna is attempting to build a strategic relationship with Nico, who is an influential member of the local business community. What is one technique Gianna could use to build the relationship?
finding a shared vision
When employees demonstrate adaptability, they are able to be
flexible
Channels of distribution benefit businesses by
getting their products to consumers more efficiently
The best way to evaluate the channel members in an international supply chain is often by using a(n)
global industry benchmarking system
Which of the following must occur for supply chain management to be successful:
goods and communication should flow both ways
Which of the following is a specification that a business might establish for selecting spreadsheet software programs:
graphically display financial information
The ultimate purpose of preparing a long, complex, business report is usually to
help with major decisions
Which of the following is an example of a brand promise:
henderson photography
Stress and fatigue are __________ factors that can affect business process design.
human
Company B's management has determined that it must downsize. Three persons in the customer service department will lose their jobs. Which of the following records can management use to help them determine which employees to keep:
human resources records
For the strategy of conducting customer surveys, with tactics including contacting customers and tabulating survey results, which of the following is the goal:
improving this year's customer satisfaction by 7% over last year's ratings
Trent was reviewing a business record that did not reflect updated information. The quality of the business record was compromised because it was
inaccurate
One-time startup costs often include __________ fees
incorporation
Which of the following is an intangible benefit that might be included in a cost-benefit analysis:
increased convenience
Which of the following statements is true about a mixed economy:
individuals and businesses are the primary econ decision makers and the govt regulates the system
Which of the following statements regarding international trade is true:
internet-based companies can easily become involved in international trade
Which of the following is a true statement about information:
it is data put into a useful form