fundamentals of business, marketing, and finance midterm review

Group training gives employees hands-on practice with supervision.

False

Psychological needs are those for necessities such as safety, security and health.

False

The focus of the maturity stage (stage 3) in the product life cycle is to build customer satisfaction and recognize competitors entering the market.

False

Which of the following is the money or other resources needed to pay for a part or parts of the company?

Finance

Rent is an example of a __________ expense.

Fixed

Which of the following correctly lists the needs of consumers which should be met?

Physical, social, psychological

An assembly line is an example of __________.

Work specialization

Which of the following requires an individual to complete the same small task over and over again in order to contribute to a final project?

Work specialization

When suppliers are paid, which of the following occurs?

Accounts payable is decreased by a debit

Which of the following is NOT a function of management?

Analyzing

Which of the following is NOT a role the Human Resources department plays when helping orient employees?

Analyzing new employee morale

Which of the following is an example of an operative employee?

Assembly line worker

Items of value owned by a business are known as which of the following?

Assets

Which of the following represents is the basic accounting equation?

Assets = Liabilities + Owner's Equity

Which of the following is NOT an example of a processor?

Automobile factory

Which of the following shows the numerical balances determined by the chart of accounts?

Balance sheet

According to the segment, why is the Finance and Accounting department important to a business?

Businesses cannot exist without cash flow

Which of the following is NOT an example of a liability?

Cash

Which of the following is the most liquid asset?

Cash

__________ is the principle in which an employee should have only one supervisor to whom he or she is responsible.

Chain of Command

Which of the following is the principle in which an employee should have only one supervisor to whom he or she is responsible?

Chain of command

Which of the following is NOT an example of an asset?

Children

Who first identified cyclical patterns in the economy and created what is often referred to as "the business cycle"?

Clemente Juglar

Which of the following is the last step in the business operating cycle?

Collect payment for credit sales

Accounts payable are classified as which of the following?

Current liabilities

Which of the following statements is TRUE?

Debits decrease liabilities

Which of the following is NOT a source of funding?

Decreasing owner contributions

Which of the following is also known as a profit and loss statement?

Income statements

Which of the following is NOT a current asset?

Land

Which of the following are the debts or obligations of a business?

Liabilities

Which of the following is NOT one of the four basic organizational levels?

Lower managers

Which of the following is a disadvantage of a franchise?

Must follow the parent company's business structure

Which of the following is NOT a step of the employment process in the Human Resources department according to the segment?

Negotiate salary and benefits of new hires

Which of the following is NOT a level of Maslow's hierarchy of needs?

Personal interest

Which type of business produces processed goods by changing raw goods into a more finished form?

Processors

Which of the following types of departmentalization works well for companies with multiple product lines?

Product departmentalization

Which of the following shows any changes which have occurred in the numerical balances of a company?

Profit and loss statement

Which of the following are the activities used to persuade consumers they need the product?

Promotion

Evaluating employee performance helps with all of the following EXCEPT which of the following?

Sick leave

Which of the following is defined as a business which is owned and operated by one individual?

Sole proprietorship

Which of the following types of authority allows input and suggestions from additional staff members, but does not guarantee implementation?

Staff authority

Budgeting provides a guide for efficient business decisions.

TRUE

Net worth = assets - liabilities

TRUE

In which of the following categories does a recession NOT cause a decline?

Tax rate

Which of the following types of business structures consists entirely of work groups and teams which perform an organization's work?

Team-based structure

According to the segment, how are businesses classified?

Work activities the business performs

An organization's products and services are the driving force in accomplishing its purpose.

False

Which of the following is NOT an example of an organization?

A group of friends

Which of the following is a cause of a trough?

A severely outdated product

A system used to record, classify, summarize and report the financial position of a business is known as which of the following?

Accounting

Budgeting is the __________ based on a determined structure.

Allocation of monetary funds

Which of the following is NOT an indicator of the business cycle?

Birth rate

Which of the following is NOT one of the modes of transportation distribution typically uses?

Cable

Which of the following are protections provided to authors of original works such as literature?

Copyright

Which of the following is a type of business which operates as a separate legal entity?

Corporation

Which of the following are the costs directly associated with making or acquiring products such as materials purchased from outside suppliers?

Costs of goods sold

Which of the following is NOT one of the considerations when selecting a business structure?

Customers' demographics

Which of the following is money borrowed from a business or investment which must be repaid over time with interest?

Debt capital

Which of the following occurs when decisions are made by the individuals who are the closest to the problem?

Decentralization

__________ is the grouping of individuals into departments.

Departmentalization

Which of the following is the goal of the finance department?

Determining the use of company resources and funds

Which of the following is an example of a middle manager?

Director of marketing

A __________ structure is composed of self-contained units or divisions.

Divisional

Which of the following are the unique names which identify Internet sites and businesses?

Domain name

Which of the following is NOT a type of business ownership?

Entrepreneurship

Which of the following is the money raised by a business or investor in exchange for a share of ownership in the company?

Equity capital

Which of the following is NOT a responsibility of the Finance department?

Establishing external relations

Which of the following is NOT a stage of the product life cycle?

Evaluation

Which of the following is NOT a step involved in creating a budget?

Expand earning avenues

Which of the following is NOT a business department mentioned in the segment?

External relations

Gross income is income after the cost of goods and taxes are deducted.

FALSE

Which of the following types of authority can create problems of overlapping authority?

Functional authority

Which of the following types of departmentalization involves grouping of individuals into departments based on different tasks?

Functional departmentalization

A company divides employees into eastern, southern, western and central regions Which of the following describes such departmentalization?

Geographic departmentalization

Which of the following is derived by subtracting the cost of goods sold from the net sales figures?

Gross profit

The employment process is carried out by which department?

Human resources

The two basic parts of a budget are ____________ and _____________.

Income; Expenses

Which of the following describes the virtuous cycle?

Increase in sales results in increase in production which causes increase in employment leading to increased income which starts the cycle over again

__________ structures are laid-back and undefined.

Informal

Which of the following types of organizational structures is normally found in a smaller business with fewer employees?

Informal structure

Groups of individuals who invest money in various types of companies in search of making a profit are known as which of the following?

Investors

Which of the following is an advantage of a divisional structure?

It frees headquarter staff from being concerned with everyday activities

Which of the following is NOT a disadvantage of a simple structure?

It usually costs a lot of money.

Which of the following is an example of a service firm?

Landscape company

Which of the following is defined as a business in which partners have an unequal share and liability in the business?

Limited partnership

Which of the following types of authority gives the supervisor the right to direct the work of his or her employees without consulting others?

Line authority

Which of the following is NOT a tip provided in the segment for naming a business?

Making the name difficult to pronounce

Which of the following is NOT a role of production and distribution in a company?

Marketing

A __________ organization structure combines the elements of functional and product-based departmentalization.

Matrix

Authority is shared between two supervisors in which of the following types of business structures?

Matrix organization

Which of the following describes the term productivity?

Measurement of physical output for each unit of input used, usually referring to labor hours

Which of the following is the process of issuing loans in small amounts?

Microlending

Which of the following is an example of a producer?

Mine

The presentation recommends updating and modifying your budget how often?

Monthly or weekly

Which of the following is the amount of money the business has earned after paying income taxes?

Net income

Which of the following describes the growth part of the business cycle?

Occurs when persistent increases in the key measurements of aggregate economic activities are present

Which of the following is the correct order of organizational levels?

Operative employees, supervisors, middle managers, top management

A(n) ____________ is a systematic grouping of individuals which has been brought together to accomplish a goal.

Organization

Which of the following is NOT a business cycle indicator?`

Out of date products

Which of the following are the grants of intellectual property rights to the inventor?

Patent

Which of the following lists each part of the business cycle?

Peak, Recession, Trough, Expansion

Which of the following is NOT a component of the marketing mix?

Perception

Which of the following types of departmentalization groups activities based on work or customer flow?

Process departmentalization

Which of the following is the correct equation for profit?

Revenue - Expenses = Profit

Which of the following represents the amount of revenue generated by a business?

Sales figures

Which of the following is an example of a non-profit organization?

Salvation Army

Simple structures are flexible and inexpensive, but are often only effective in small organizations.

True

Words, symbols, names or devices used to specify goods and differentiate one good from others is defining which of the following?

Trademark

What is the lowest level of a recession?

Trough

Intrinsic motivation occurs internally and includes enjoyment and accomplishment.

True