GENBA 110 - Business Foundations

Six Sigma means attaining what percentage of perfection?

99.9997%

What can be a good or a service. Each sold at a price?

A product

What is a detailed written description of a new security, including information about the issuing company and its top management?

A prospectus

___________ makes sure that performance meets goals.

Control

True or False? Fixing damage from a crisis would be considered a contingency plan.

False

_________ structures mean groups of people perform similar activities (such as manufacturing, marketing and sales, admin operations, and so on).

Functional

_________________ groups jobs that perform similar activities, such as finance, manufacturing, marketing, and human resources.

Functional departmentalization

How does using GAAP standards help organization and community?

GAAP enables comparative analysis (Uniform presentation ensures that data from different periods of time can be compared. It also allows comparisons between companies.) GAAP ensures uniformity of financial data (GAAP lays down the guidelines to ensure that the financial data is accurate, verifiable, and presented in a uniform manner.)

Which function of management is associated with the following question? "How do I motivate people to work to achieve important goals?"

Leading

____________, or building relationships and sharing information with colleagues, is vital for any businessperson.

Networking

________________ involves first asking what major goals need to be achieved, then asking how they can be achieved.

Planning

___________ stockholders have no voting rights but get first claim on dividends and assets.

Preferred

__________ run their own operation and have total control of a specific work assignment. Their membership is likely to be composed of people from different functional areas.

Project teams

____________ are similar to task forces, but they run their operation and have total control of a specific work assignment.

Project teams

_________ bonds are bonds that mature at different dates.

Serial

What is the ability to perform a specific job?

Technical skills

True or False? Microeconomics is the study of small economic units.

True

True or False? Setting an emergency response plan would be considered a contingency plan.

True

When work is standardized, a _____________span of control is appropriate.

broad/wide

An ________ reward is the payoff a person receives from others for performing a particular task.

extrinsic

Bonds sold by the U.S. Treasury are __________ bonds.

government

Market timing strategy is one which has _________ risk.

high

What is the ability to interact well with people?

human skills

When price increases, the quantity supplied _____________.

increases

Ratio analysis can be used to analyze a firm's performance compared to ________________.

it's objectives

Marketing can be defined as a _____________________ exchange.

mutually satisfying

The features of _________ span of control include limited people reporting to a manager, being typical in centralized organizations, and being appropriate when the interaction between superiors and subordinates is frequent.

narrow

Expansion in new markets, co-branding, and complacent competitors are ___________________ for any organization.

opportunities

External recruitment is when an organization makes _________ aware of job openings.

outsiders

Which of following economies is currently dominant and likely to provide the majority of jobs?

service economy

Which control process step answers the question: "What changes are necessary to obtain desirable outcomes?"

take corrective action if needed

How often are short-term securities auctioned?

weekly

Changing employees' minds and performance is related to the __________ area of organizational change.

"people"

According to the SBA, the average start-up cost for small businesses is ____________.

$30,000

Select the benefits of capitalism. -Help for the less fortunate -More jobs and higher incomes -Income disparities -Inability to sustain competition -More goods and services

-Help for the less fortunate -More jobs and higher incomes -More goods and services

Following the plans of middle and top managers, supervisory managers do operational planning, determining how to accomplish specific tasks with existing resources within the next ________________.

1 week to 1 year period

Strategic planning involves determining the organization's long-term goals for the next ______________.

1-5 years

Scenarios for contingency planning are anticipated for what time period?

2-5 years into the future

Dr. Badger's Pet Store is applying for a loan from the bank. The company has liabilities of $670,000 and owners' equity of $250,000. What is the debt to owners' equity ratio for Dr. Badger's Pet Store?

2.68 percent

When considering a house purchase as an investment opportunity, you would want to spend no more than ___________% of your income AND have a minimum of __________% down payment to avoid Private Mortgage Insurance (PMI).

28%, 20%

The attainment of Six Sigma means there are no more than ______ defects per _________ products or procedures.

3.4 million

About ________ of new small businesses begin in the home, are financed on less than ______________, and start with leased or used equipment.

53% $10,000

Middle managers do tactical planning, determining what contributions their work units can make with their existing resources during the next _______________.

6 months to 2 years

___________ is a type of time schedule in a bar chart format, which is useful for graphically indicating deadlines.

A Gantt chart

What happens when a business charges less than the equilibrium price?

A business accepts a lower price per product unit

What happens when a business charges more than the current equilibrium price?

A business might not earn as much revenue because they may not sell as many units.

___________________ must be prepared for the first year of the business.

A cash flow statement of cast (financial projections)

____________ is the desired performance level for a given goal.

A control standard

_____________ is a type of free market in which there is only one seller and no competition.

A monopoly

_______________ is a group of employees responsible for a process or segment that delivers a product to an internal or external customer. The defining characteristic is that they are deigned to give employees a feeling of "ownership" of a whole job.

A self-directed work team (SDWT)

_______________ is a group of employees responsible for an entire work process or segment that delivers a product to an internal or external customer.

A self-directed work team (SDWT)

_____________ is a specific group of consumers' needs and wants on which a company focuses its marketing efforts.

A target market

____________ means managers must report and justify their work results to managers above them.

Accountability

________ ratios determine how well the firm manages its assets to generate revenue.

Activity

The Scottish economist _________ envisioned capitalism as a system for creating wealth and improving the lives of everyone in society.

Adam Smith

____________ law constitutes the rules made by administrative agencies at all levels of government.

Administrative

A cash budget can assist in determining which of the following? Excess cash in invest in marketable securities All of the above. The money flowing in and the money flowing out of an organization. Loans needed to maintain a minimum cash balance

All of the above

_________ is an employee who personally works with an experienced one so as to better learn and master their craft.

An apprentice employee

_____________ is a component of business plans that appears at the beginning of the final written business plan.

An executive summary

____________ works inside an existing organization, sees an opportunity, and takes steps to turn it into a profitable reality.

An intrapreneur

The defining characteristic of __________ is the extent to which it is empowered or given authority to make and implement work decisions. Thus, they are designed to give employees a feeling of "ownership" of a whole job.

An self-directed work team (SDWT)

Why do employers offer these employer-sponsored retirement plans?

As a benefit and/or reward to employees

__________ is the legitimacy an organization confers on managers to make decisions, give orders, and utilize resources.

Authority

___________ leadership is effective when employees need direction or are completely new to a job.

Autocratic

_______________ leadership is best suited to hierarchical organizations with a militaristic orientation such as the army or some branches of law enforcement.

Autocratic

What financial institution has magnetic computer tap technology that transfers bank deposits?

Automated Clearing House (ACH)

What financial institution provides 24-hour banking and accepts deposits and dispense cash?

Automated Teller Machine (ATM)

Identify the requirements of the Securities and Exchange Commission (SEC) for sellers of stocks and bonds.

Avoid taking advantage of inside information Provide investors with full disclosure of financial facts Register with the SEC and provide prospectuses and reports

_________ is possible only when two parties are interested in each other's goods and services. This makes trade limited. Money eliminates this need and serves as a universal ______________.

Barter medium of exchange

Which of the following is not an organization from which Randy should consider seeking advice and resources? Better Business Bureau The Active Corps of Executives (ACE) Small Business Investment Company (SBIC) The Service Corps of Retired Executives (SCORE) Small Business Administration (SBA)

Better Business Bureau

_________ involves recording of financial transactions of the organization.

Bookkeeping

___________ refers to the buildings and tools used to produce goods and services.

Capital

____________ forecasts are based on anticipated sales and anticipated expenses.

Cash flow

________________ authority includes the important decisions made by higher-level managers. Businesses tend to be more _______________ when the decisions to be made are risky, and where low-level managers are not highly skilled in decision making.

Centralized centralized

What type of bankruptcy allows companies to reorganize and continue business operations while paying creditors a portion of their debts?

Chapter 11 Bankruptcy

What type of bankruptcy allows individuals and small businesses with debts below a certain amount to repay their creditors over a period of time under a court-approved plan?

Chapter 13 Bankruptcy

What type of bankruptcy forces debtors to turn over assets to a trustee for division among creditors?

Chapter 7 Bankruptcy

How can banks make profits?

Charging fees on credit cards Sale of insurance policies

___________ can be used to negotiate matters such as employee compensation and working conditions.

Collective bargaining

_________ law involves laws made by judges based on precedents.

Common

Communism was designed to accomplish what?

Communism was designed to prevent the accumulation of wealth for a small percentage of people while meeting all citizen's needs. Under communism, the government owns all property, and citizens work for the government. The government controls the allocation of resources to prevent the accumulation of wealth for a small number of individuals.

What are used to design products, structures, civil engineering drawings, and maps?

Computer-aided design (CAD)

What is the ability to think analytically?

Conceptual skills

What are the steps of the marketing process?

Conduct research to determine opportunities and challenges Identify the target market Determine the strategies for the marketing mix

____________ laws are concerned with protecting buyers' rights.

Consumer-protection

Which function of management is associated with the following question? "How do I monitor performance, compare it with goals, and take corrective action?"

Controlling

_____________ are bonds that can be converted into the issuing corporation's common stock.

Convertible

_____________ are issued by businesses as a source of long-term funding and consist of secured and unsecured bonds.

Corporate bonds

____________ means the team is composed of workers that have different specialties and expertise to contribute.

Cross-functional

__________ is the integrated, accepted pattern of human behavior, including thought, speech, beliefs, actions, and artifacts.

Culture

What factors influence consumer buying behavior?

Culture Social class

Loyalty cards are a good example of methods during the _______________________.

Customer Relationship Era

________________ authority includes decisions made by middle-level and supervisory-level managers. It is characteristic of organizations that operate in complex, unpredictable environments, and requires that lower-level managers have strong decision-making skills.

Decentralized

_________________ consists of information associated with age, gender, income, social class, ethnicity, and education level about the target audience.

Demographic data

What is the study of the production, distribution, and consumption of scarce goods and services.

Economics

________ studies how society chooses to transform resources into the goods and services that people want and need.

Economics

___________ is about the ends, and ___________ is about the means.

Effectiveness efficiency

What is concerned with the firm's entire enterprise? Today most of these applications are offered by software vendors, which have the applications on their own computer systems and allow companies to access them via the internet.

Enterprise Resource Planning (ERP)

___________ are business owners who see a new opportunity for a product or service and start a firm.

Entrepreneurs

___________ is the process of taking risks to try to create a new business.

Entrepreneurship

_____________ refers to the process of taking risks to create a new enterprise.

Entrepreneurship

____________ consist(s) of funds acquired from wealthy individuals and institutions that invest in promising startups or emerging companies in return for their giving up some ownership.

Equity financing

What is counted as gross domestic product (GDP)?

Everything produced within US borders, regardless of whether the company has domestic or foreign owners. Goods and services produced by governments and nonprofits are also counted in GDP.

The deposits of commercial banks are protected by the ___________.

FDIC

__________ layout is the physical arrangement of equipment, offices, rooms, people, and other resources within an organization for producing goods or services.

Facility

Sarbanes-Oxley act neglects to instill any stipulations for the destruction of key audit financial documents.

False

True or False? Identifying a risk threatening a business would be considered a contingency plan.

False

True or False? Potential entrepreneurs should AVOID home-based businesses as they are often NOT respected NOR taken seriously in industry.

False

True or False? Road construction would be an example of monetary policy as part of the government's role in business cycle.

False

True or False? An enterprise zone is a facility that offers small businesses low-cost offices with basic services.

False An incubator is a facility that offers small businesses low-cost offices with basic services, such as secretarial and accounting services and legal advice.

True or False? Goods and services produced by illegal or "underground" enterprises are counted in GDP.

False Goods and services produced by illegal or "underground" enterprises are not counted in GDP. Activities such as cash-only sales are not counted either.

True or False? Small businesses are found in most sectors of the US economy.

False Small businesses are found in ALL sectors of the US economy.

True or False? The central bank of the United States is the Treasury Department.

False The Federal Reserve System, called the Fed, is the central bank of the United States and controls the U.S. money supply.

What financial institution insures individual bank accounts?

Federal Deposit Insurance Company (FDIC)

What financial institution oversees the American financial system and financial institutions?

Federal Reserve

`___________ helps managers to identify deviations from the financial plan so that corrective action can be taken.

Financial control

___________ are institutions that produce goods which have value for customers, clients, partners, and society.

Firms

______________ layout is one in which materials, equipment, and labor transported to one location.

Fixed-position

_____________ leadership is often successful with businesses that use highly skilled professionals who can operate autonomously, such as consulting.

Free-rein

Name the five stages of organizational decline (Collin's model).

Hubris born of success Undisciplined pursuit of more Denial of risk and peril Grasping for salvation Capitulation to irrelevance or death

___________ refers to the effort, both mental and physical, required to produce goods and services.

Human resources

Identify the primary components of marketing strategy.

Identifying the target market among market segments Creating the right marketing mix to reach a target market Dealing with forces in the external marketing environment

What effect has robotics had on manufacturing?

Improved efficiency

The financial information for a company is reported in key financial statements. Identify those statements.

Income statement Balance sheet

______________ is one of the economic forces that can largely determine the timing of an organization's marketing strategy.

Inflation

Name the steps of a job analysis.

Interview job occupants Observe the flow of work Learn how results are accomplished

How are mutual funds able to diversify investments?

Investment decisions are made by professionals working in big investment companies Mutual funds balance risk

Which of the following is true about accounting? It maximizes expenses. It's not run by a federal agency. It allows informed decision making. It's rarely ever done correctly. It is a simple process.

It allows informed decision making.

What are some of the benefits of technological advances such as CAD-CAM?

It allows products to be designed and then input into an automated manufacturing system that makes products. It allows products to be designed and then input into an automated manufacturing system that makes products. The product can be drawn in three dimensions and then rotated on the computer screen, so that the designer can see all sides. It helps architects design buildings and workspaces and helps engineers design cars, planes, electronic devices, roadways, bridges, and subdivisions.

Which group represents a product mix? Central High School's footballs, helmets, and cleats Buybuy Baby's clothes, baby bottles, high chairs P&G's Tide, Cheer, and Gain laundry detergents Kraft's Maxwell House, Oscar Mayer, and Kool-Aid Crest Whitestrips teeth whitener, toothpaste, and mouthwash

Kraft's Maxwell House, Oscar Mayer, and Kool-Aid

_________ manufacturing is the production of products by eliminating unnecessary steps and using the fewest resources, as well as continually striving for improvement.

Lean

__________ managers are directly involved in their organization's goals, and can focus on their area of expertise in the operation of the business.

Line

What are the possible ways to take corrective action?

Make no changes Celebrate success Correct negative performance by examining the reasons why, and take appropriate action

_________ is a process through which products and services are rendered with a selling concept for the consumer.

Marketing

It wasn't until about the 1950s, during the ____________________ that businesses started focusing on making products based on customer needs, quality product AND products that were profitable.

Marketing Concept Era

What is a computer-based method of delivering the right amounts of supplies to the right place at the right time for the production of goods? What does it use for this purpose?

Materials requirement planning (MRP) Bill of materials

__________ is the process in which an experienced employee supervises, teaches, and provides guidance to a protege.

Mentoring

___________ competition is a type of free market that has many sellers who sell similar but distinguishable products.

Monopolistic

Socialism has some clear-cut benefits. Name some of these benefits.

More benefits to citizens Less social inequality Less poverty

___________ bonds are issued by state and local governments and agencies. They consist of revenue bonds and general obligation bonds.

Municipal

______________ is a primary data collection process used by retail companies to collect data on customer service and customer experience.

Mystery shopping

____________ are the materials supplied by nature such as land, soil, water, and minerals.

Natural resources

What are the five factors of production?

Natural resources Capital Human resources Entrepreneurship Knowledge

____________ are based on facts and are often based on numbers related to employees.

Objective appraisals

_____________ is a type of free market that has few sellers offering similar but not identical products to many small buyers.

Oligopolies

Which function of management is associated with the following question? "How do I arrange tasks, people, and other resources to get things done?"

Organizing

_____________ involves the arrangement of tasks, people, and other resources to achieve set goals.

Organizing

____________ are diagrams for determining the best sequencing of tasks and are useful for more sophisticated functions.

PERT charts

_____________ leadership involves a good deal of communication, requiring the leader to have good listening skills and empathy.

Participative

Name the levels of Maslow's hierarchy in ascending order.

Physiological needs Safety needs Social needs Esteem needs Self-actualization needs

Which function of management is associated with the following question? "What are my goals and how do I achieve them?"

Planning

______________ define the responsibilities of various departments and help coordinate their activities for the achievement of common goals.

Plans

____________ layout is one in which similar work is grouped by function.

Process

____________ layout is one in which equipment and tasks are arranged into an assembly line.

Product

Identify the ways in which departments are commonly organized.

Product line Geographic region Customer

____________ are a special type of project team formed to devise, design, and implement a new product. Such teams usually exist within a functional area, but now include people from various functional areas and may even include customers.

Product-development teams

______________ are a special type of project team.

Product-development teams

______________ are formed to devise, design, and implement a new product.

Product-development teams

________ segmentation consists of categorizing people according to lifestyle, values, and psychological characteristics.

Psychographic

________________ are fairly small groups of workers brought together from throughout the organization to solve problems in specific areas. Companies use quality circles to shift the organization to a more participative culture.

Quality-assurance teams

________________ are fairly small groups of workers brought together throughout the organization to solve specific quality, productivity, or service problems.

Quality-assurance teams (quality circles)

The Civil Rights Act of 1964 attempted to reduce what discriminatory practices?

Racial bias Gender stereotypes Religious bigotry

What is the study of how to develop the resources for creating and best utilizing goods and services?

Resource development

________ bonds are used to pay for public projects that will generate revenue, such as toll bridges.

Revenue

________________ means nonmanagerial employees are given greater authority over planning, scheduling, monitoring, and staffing, and are also granted increased autonomy.

Self-management

Name the "Big 3" of job enrichment.

Sense of responsibility for results Feedback for results Creation of meaningful work

__________ businesses, which deal mainly with people, convert customers' unmet needs into satisfied needs.

Service

When comparing the 401k and the Traditional IRA, what benefit is sometimes offered by the employer to make the 401k a better choice?

Some employers will match the employee's contributions in the 401k.

_____________ describes the optimal number of subordinates a manager supervises—or should supervise.

Span of control

____________ are people listed with stock exchanges and are authorized by their clients to buy and sell stocks for them.

Stockbrokers

_______________ are oral histories that are repeated by members about important incidents and people in the organization's history.

Stories

____________ involves determining the organization's long-term goals for the next 1-5 years.

Strategic planning

_____________ involves changing company direction.

Strategy

What impact does lack of just-in-time inventory control have on a firm's efficiency and profitability?

Supplies and materials sitting idle cost the company money.

__________________ is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.

Sustainable development

Which legislation under the antitrust law prohibits restraint of trade and monopolies?

The Sherman Antitrust Act

What is the main benefit of investing in a 401k, IRA, or other retirement account?

The earnings grow without being taxed yearly.

_________________ refers to four marketing activities: product, price, promotion, and place (distribution).

The marketing mix

How many types of bonds are there? Name them.

Three. Corporate bonds, municipal bonds, and government bonds

________ are bank funds that can't be withdrawn without notice or transferred by check.

Time deposits

What is the purpose of a market research process?

To provide accurate information about problems relating to the marketing of goods and services

Why do investors participate in the secondary securities market?

To trade previously issued securities To profit from price fluctuations

___________ legally protects owners' rights to brand names.

Trademarks

What are the two major types of IRA accounts available?

Traditional and Roth

___________ leaders are the sort to steadily pursue of order, stability, and performance goals.

Transactional

______________ leaders are concerned with getting people to do exceptional things.

Transformational

True or False? A well-known argument against corporate social responsibility is society will suffer if a company is distracted from its mission of maximizing profits.

True

True or False? An example of a business situation in the United States that is illegal and unethical is canceling a company retirement plan.

True

True or False? Based on the business profit calculation (revenue - expenses = profit), the following could be considered reasons for a business loss: (1) insufficient revenue (2) excessive expenses

True

True or False? Institution of a backup procedure would be considered a contingency plan.

True

True or False? Lenders and suppliers use financial accounting to evaluate credit ratings.

True

True or False? Less than 20% of US students are required to take Personal Finance to graduate high school

True

True or False? Since debt financing must be repaid AND cost interest to an organization, the financial managers should utilize equity financing as a better alternative since it doesn't require repayment NOR costly interest payments.

True

True or False? Taking measures to minimize damage from a potential crisis would be considered a contingency plan.

True

True or False? When a corporation is socially responsible, it can improve people's lives.

True

True or False? With working capital management, the goal is to maximize the return on current assets.

True

True or False? The profit margin of a company is determined by net income divided by sales.

True The return of sales ratio (profit margin) of a company is determined by net income divided by net sales.

How many types of stocks are there? Name them.

Two. Common stock and preferred stock

What are the aspects covered under the guidelines provided by Occupational Safety and Health Act?

Use of personal protective equipment Handling machinery with moving parts

__________ is an important element that reveals which benefits customers get from a product as well the cost they perceive they have to pay to get these benefits compared to the competitor's products.

Value

In which situations would you advise against using just-in-time inventory control?

When the demand for your product line varies. When the firm has a diverse product line.

What is used to determine the basic elements of a job?

a job analysis

What is a series of different products forming a group under a single brand, manufactured by the same company?

a product line

What is the complete range of products that a company offers to its customers?

a product line

Prime location, proximity, and ample exposure to the target group can be considered _____________.

a strength

Steve Nowicki owns Food Monster, a grocery-store chain. One of his employees threw away a banana peel but missed the trashcan. As the employee was walking away, he heard a scream and a crash. A customer had slipped on the banana peel, suffering severe injuries to his knee and elbow. The injured customer decided to sue Food Monster. Although Nowicki's employee didn't mean for any of this to happen, the judge ruled that Food Monster had committed negligence, or an unintentional act that resulted in injury. This situation is an example of _____, or a civil, wrongful act that resulted in injury to people or property.

a tort

What is an approach where firms try to appeal to all buyers and assumes that all of them have similar needs and wants?

a total market approach

Business law is composed of four major types of laws: statutory, common, ________, and international.

administrative

The principle of _____________ aims to achieve equality of opportunity within an organization.

affirmative action

The Apparel Supply received a damaged shipment of shirts from the manufacturer, but it decided to keep them and sell them at a discount after the manufacturer agreed to give it a partial refund for the shirts, called a(n) ____________.

allowance

What is a specific geographic area in which government tries to attract business investment by offering lower taxes and other government support?

an enterprise zone

What is a facility that offers small businesses low-cost offices with basic services, such as secretarial and accounting services and legal advice?

an incubator

Adam Smith described individuals' drive for prosperity that produces the goods and services that provide economic and social benefits to all as _____________.

an invisible hand

Individuals, usually wealthy, who invest their own money in a startup company are known as ______________.

angel investors

A firm's fiscal year is defined as what?

any 12-month period chosen for annual financial reporting

What type of courts review cases appealed from lower courts?

appellate

Joe's Barber Shop gives free haircuts to Manny, who brings Joe a free pastrami sandwich on Fridays. This demonstrates the concept of ___________.

bartering

Low-fat milk and sugar-free drinks target those who desire the benefit of a healthier diet. This is part of the _____________ segment.

behavioristic

What financial instruments have the ability to turn security holdings into cash quickly and at minimal expense and effort?

bonds stocks

Flatter organizations are known to respond more readily to customer demands since empowered employees have authority and responsibility for making decisions. This describes a ___________ span of control.

broad/wide

The following describes a ___________ span of control. This structure is also a complement to the adoption of employee empowerment since it allows workers more autonomy to make decisions regarding their own positions. This enables them to more readily satisfy customers.

broad/wide

Hiring more talented workers and implementing more sophisticated IT systems allows firms to have a ___________ span of control since communication is not as challenging.

broader/wider

Which of these is a nonbank institution? mutual savings bank savings institution savings and loan credit union brokerage firm

brokerage firm

When Michael started his construction company, he needed to purchase some very expensive excavating equipment, but he didn't have the cash on hand to do so. He borrowed from the bank to cover this ________ expenditure.

capital

The cash flow statement reports disbursement relating to the firm's operating activities, investing activities, financing activities, and ______________.

cash balance

What are the six steps of the accounting process?

collect record classify summarize report analyze

What helps in devising the right type of marketing strategies for products/services?

collecting demographic data at a preliminary stage

What financial institution has expanded services since the repeal of Glass-Steagall Act?

commercial banks

What are kinds of short-term financing?

commercial paper trade credit

Financial statements must be relevant, consistent, reliable, and _______________.

comparable

Which control process step answers the question: "How does the actual differ from the desired?"

compare performance against standards

Ratio analysis helps decision makers understand the meaning of variables in the financial statements by:

comparing the company's performance against industry standards comparing the company's performance with its goals

The ______________ approach is an approach whereby a company develops one marketing strategy for a single market segment.

concentration

What is it called when two companies merge that are in different industries and each performs different activities?

conglomerate merger

GAAP is concerned with making sure that financial reports are what?

consistent and comparable

A(n) ___________ process is one in which goods or services are turned out in a long production run on an ongoing basis over time.

continuous

A ____________ process is a production process in which goods or services are turned out in a long production run on an ___________ basis over time.

continuous ongoing

Performance needs to be measured against set goals and differences, if any, need to be addressed. The ____________ function is very important for this.

controlling

Businesses rely on __________ to enable their customers to buy their products.

credit

What financial institution is owned by members?

credit union

Money market instruments are short-term IOUs, _________ securities that mature within one year.

debt

The ________ ratio measures the extent to which a company uses debt to finance its operations.

debt to owners' equity

When the Fed buys bonds from the public, it increases the money supply in the economy. This increased supply motivates purchases and borrowing. It is used to control ______________.

deflation

Skin-care products and power tools may be gender-specific and fall under the ___________ segment, even though the lines are blurring in recent times.

demographic

What is the focus of operations management?

designing, supervising, and improving the transformation process while keeping costs down

While the goods one has for barter are often perishable in nature, money is significantly more ____________.

durable

What details must a job specification contain?

education experience

Marsha is really good at managing her company's money in an optimum way. Marsha demonstrates _____________.

efficiency

Collective bargaining can be used to negotiate matters such as what?

employee compensation working conditions

Effectiveness is about the _____________, and efficiency is about the ___________.

ends means

Evaluating task significance is one of the five ways to affect a worker's motivation and performance. It is part of job _____________.

enlargement

Social _____ is an innovative, social, value-creating activity that can occur within or across the for-profit and nonprofit sectors.

entrepreneurship

The four forms of company ownership are sole proprietorships, partnerships, corporations, and ____________.

entrepreneurships

The value of the owners' interests is the same as ____________.

equity

Using personal assets instead of purchasing new assets for the business is a form of _____________.

equity financing

Which control process step answers the question: "What is the desired outcome?"

establish standards

Not only customers and the community, but also owners, employees, and suppliers benefit from: price slashing and deep discounts. aggressive social-media marketing. turning a blind eye to ethics violations. ethical behavior and social responsibility.

ethical behavior and social responsibility.

The technique of using borrowed funds to increase a firm's rate of return is called _______________.

financial leverage

A(n) ________ is a firm's strategy for reaching its financial goals.

financial plan

Randy needs to obtain a loan to support the business. In his business plan, Randy should classify the loan within which section? management legal marketing financing manufacturing

financing

When the U.S. government decides to raise or lower taxes, it is practicing ________ policy.

fiscal

The recent trend in structure changes is to __________ the hierarchy and use electronically linked teams.

flatten

An arrangement in which a business owner allows others the right to use its name and sell its goods or services within a specific geographical area is known as a _____________.

franchise

Randy realizes that there is a national company that provides spray foam insulation for roofing, and that for a license fee, he can use the national company's logo, methods, advertising, and products. In considering purchasing the license, Randy is considering operating as a/an corporation. limited liability corporation. partnership. franchise. entrepreneur.

franchise.

In _____________ leadership, the key for the leader is to remove roadblocks and allocate resources for the professionals to execute.

free-rein

Each ____________ is managed by an expert.

function

The main feature of matrix structures is that it combines the ________ and the __________ chain of command.

functional divisional

A weakness of _______________ is that it has a tendency to emphasize departmental units rather than the whole organization. This results in slower decision making.

functional departmentalization

Climate influences consumer purchases of clothing and heating and air conditioning equipment. Such products would fall under the _____________ segment.

geographic

Determinants like climate, terrain, natural resources, population density, subcultural values influence consumer needs and product usage. These determinants characterizes ____________ segmentation.

geographic

Global leaders are striving to address a common threat to our well being through the Paris Agreement. This agreement sets out a global action plan to avoid dangerous climate change by limiting

global warming

Students understanding the university's extra-curricular system and a firm being the center of social media engagement are broad and intangible targets, or _____________.

goals

The factors of production in command economies are controlled by _______________ planning.

government

Credit unions are known to provide a _________ rate of interest on deposits compared to commercial banks.

higher

Investing for growth is an advisable strategy for those with _________ risk bearing capacity.

higher

According to the Herzberg's two-factor theory, work satisfaction arises from ______-level needs called _____________ factors.

higher motivating

What is it called when two companies merge that are in the same industry and perform the same activity?

horizontal merger

Herbivores is a vitamin company with 14 employees. These employees are _______ resources of the company.

human

The Hawthorne effect studies led to the _______________ movement in the 1950s and 1960s.

human relations

Contingency planning is the creation of alternative __________ courses of action to take if its original plans aren't workable.

hypothetical

The "bottom line" on an organization's financial status is found on the _________________.

income statement

When people buy bonds from the Fed (the Fed sells bonds to the public), they pay money for it which is then withdrawn from circulation. This reduction in the money supply is done as a counter measure to control __________,

inflation

Becoming a public corporation by selling stock so that it can be traded in public markets is called what?

initial public offering

Investment bankers sell securities to ________ investors, or large organizations such as pension funds and insurance companies.

institutional

What financial institution protects business and individuals against loss?

insurance company

The price you pay for the use of money over a certain period of time is called the __________.

interest rate

A(n) _____________ process is one in which finished goods or services are turned out in a series of short production runs and the machines are changed frequently to make different products.

intermittent

An _____________ reward is the personal satisfaction and enjoyment that you feel from attaining a goal.

intrinsic

Bonds that are relatively safe with a low probability of default and have a bond rating or BBB or above are called what?

investment-grade bonds

What involves rotating employees through different departments to give them a broader picture of the organization?

job rotation

Parties to a business dispute may use the ___________ system, the branch of government that oversees the court system.

judiciary

High risk bonds with a greater probability of default are ________ bonds.

junk (speculative-grade bonds)

As information technology does more of the work formerly done by humans, ____________ is becoming a competitive advantage.

knowledge

The facts, information, and skills acquired by a person through training or education comprise ______________.

knowledge

What resources principally influence the production process?

labor materials energy

Goal setting and resource allocation is incomplete without effective ________________. People need to be well taken care of an listened to in order to stay motivated.

leadership

What are one of the critical business stakeholders, as firms borrow money from them?

lenders

In _________ positions, managers are involved directly in an organization's goals. They have authority to make decisions, and usually have people reporting to them.

line

People in __________ positions have specialized managers called staff managers available to assist them.

line

Randy worries that unforeseen early business experiences will cause the business to fail due to undercapitalization. Randy should consider acquiring a/an mortgage. equity financing agreement. line of credit. trade credit. debt financing agreement.

line of credit.

In stock exchanges, buying and selling is done by ________ brokers.

listed

Cash flow from investing activities includes cash received or paid for ______________.

long-term assets

A mechanic took out a mortgage from a bank to buy the garage he and his employees work out of. How would this be listed on a balance sheet?

long-term liability

According to the Herzberg's two-factor theory, work dissatisfaction arises from _________-level needs called _________ factors.

lower hygiene

In the long run, a company's unethical or unlawful behavior will have the effect of ____________.

lowering its stock price

What is the study of a country's overall economic issues. Addresses issues such as how an economy uses its resources and how government policies affect people's standards of living?

macroeconomics

Which accountants focus primarily on information used inside the organization?

managerial accountants

Tasks such as determining the optimal lot size and setting a schedule and delegating work accordingly happen in _______________ businesses.

manurfacturing

Wide/broad span of control: Organizations have removed the many layers of management in exchange for ________ people reporting to _______ manager. This creates a _______ organization that is _________ to communicate within.

many one flatter easier

A __________ is a group of people who have a need, purchasing power, and the desire and authority to spend money on goods, services, and ideas.

market

What is the gathering and analysis of data about problems related to marketing products, with the aim to provide accurate information to marketers?

market research

In ___________ arrangements, employees are responsible for two managers (functional and project managers)

matrix

The main feature of ________ structures is that it combines the functional and the divisional chain of command.

matrix

Two or more intersecting lines of authority (functional and divisional chain of command) to form a grid is a feature of _________ structures.

matrix

Newspapers, TV, and social media are all forms of ________ that influence businesses.

media

The process in which a neutral third party listens to both sides in a dispute, makes suggestions, and encourages them to agree on a solution without the need for a court trial is known as __________.

mediation

A(n) ________ occurs when two firms join to form a new firm.

merger

Ali works for a large automobile company studying how changes in gas prices affect what size cars people buy. Ali's field is most likely ___________.

microeconomics

Many entrepreneurs apply for loans of $500 to $35,000 from organizations, such as the Women's Initiative for Self-Employment. These loans are known as ___________.

microloans

Branch managers, general managers, and sales managers typically belong to the ____________ management especially in larger companies.

middle

An organization's fundamental purposes are expressed in a ____________ statement.

mission

Money available in the economy to buy various goods and services is called __________.

money supply

Which control process step answers the question: "What is the actual outcome?"

monitor performance

In ________________ competition, sellers supply similar products and find ways to distinguish them, or buyers perceive the products as being different.

monopolistic

Many firms use a _____________ to develop a marketing strategy for every single segment. They divide their customers into groups based on certain common characteristics.

multi-segment approach

The taller the organization becomes the more appropriate it is to have a ___________ span of control, since work is less standardized at higher levels and, therefore, requires more communication that is face-to-face.

narrow

When work is not standardized, a _____________span of control is appropriate.

narrow

Paresh's investors informed him that his $1 million in sales minus sales returns, allowances, and cost of goods sold of $900,000, left only $100,000 in _____________.

net sales

Insurance companies and pension funds are ___________ financial institutions.

nonbank

Statements that detail specific targets, especially those stating a time frame to achieve the targets, are examples of __________________.

objectives

The primary marketing research method that makes use of passive observation of customer behavior and _____________ questioning techniques is called _________________ research.

open-ended ethnographic (or observational)

The logistics of making and providing your product must be detailed in the ______________ section of your business plan.

operational issues

Following the plans of middle and top managers, supervisory managers do _____________, determining how to accomplish specific tasks with existing resources within the next 1 week to 1 year period.

operational planning

The ________ of an organization are those who can claim it as their legal property.

owners

Most situations require ______________ leadership, but it's required especially when a leader needs to leverage expertise from multiple areas or functions of the business.

participative

What financial institution managed pools of individual funds for retirement income?

pension fund

Delores is a financial accountant. One of her roles is to _____________.

perform audits to ensure accuracy of the financial information

IN the Sales Orientation Era, the focus was on __________________________.

persuading customer purchases.

If a person's retirement account contributions may be deducted from his/her income taxes, then these contributions are considered to be

pre-tax

The roles of a managerial accountant includes:

prepare accounting information and analyses for managers and decision makers manage and control inventory and production costs prepare and monitor department and company-wide budgets analyze the costs of production and marketing

What are observed, recorded, or collected directly from the respondents?

primary data

Companies are required to document __________ and comply with key ISO management standards, such as traceable changes and easy reporting.

procedures

Hot dogs, baseball bats, and hats are all single items manufactured by different companies. They are a _____________.

product

Insurance, mutual finds, and loans are related to services in the _____________ of a financial institution or consultancy.

product mix

Coke Zero, Diet Coke, and Cherry Coke are all ____________of the same company, but are considered different _______________.

products product lines

What factor weighs more than others in deciding the facility location for a factory-outlet store?

proximity to customers

People buy certain products as per their lifestyle and personality, such as high-value property and sports cars. This is part of the _______________ segment.

psychographic

What refers to the general well-being of a society in terms of its political freedom, natural environment, education, health care, leisure time, safety, and other benefits?

quality of life

One of the ways to understand how the variables in the financial statements are behaving is by implementing what?

radio analysis

What type of sampling method is used in statistical process control?

random sampling

The double-entry bookkeeping format is used during the ________ step of the accounting process.

record

Which element of consumer buying behavior includes friends, family, and coworkers?

reference groups

One of the reasons for implementing GAAP is to ensure that financial data is __________.

reliable

The obligation to perform the tasks assigned to you is ______________.

responsibility

Which ratios measure the profitability of a company?

return on assets return on sales

With a ________, a bank specifies how much it is willing to lend the borrower during a specified period of time, and the bank guarantees the loan and is obligated to loan funds up to the credit limit.

revolving credit agreement

When Bennett was job hunting, he focused on salaries when he researched potential companies because he had school loans to repay. This demonstrates which of the four basic rights under capitalism?

right to free choice

Data that is compiled either inside or outside the organization for a purpose other than changing the current situation is known as _________________.

secondary data

The defining characteristic of a ________________ is the extent to which it is empowered or given authority to make and implement work decisions.

self-directed work team

Decisions such as switching a service function to self-service would be taken in a _________ business.

service

What is it called when an employee learns skills on the job by watching and learning from more experienced employees?

shadowing

Market timing strategy involves buying and selling a stock within a ________ period of time.

short

A ________ forecast is a prediction about how money will come into and go out of a firm during the next 4 to 12 months.

short-term

A U.S. business that is independently owned and operated, is not dominant in its field of operation, and meets certain criteria for number of employees and annual sales revenue is called a(n) ________ business.

small

The functional departmentalization approach is common in ______ organizations.

small

What is an innovative, social, value-creating activity that can occur within or across the for-profit and nonprofit sectors?

social entrepreneurship

Division of labor or work ____________ mean different parts of a task are done by different people.

specialization

Specialized managers called ________ managers are available to assist line managers.

staff

Laws created by legislative bodies constitute __________ law.

statutory

Global presence, seasoned management, and a reputation for being ethical are _______________.

stengths

Change in ___________ is brought about because of shifts in economics, popular tastes, and other such factors.

strategy

Changes in __________ involve changing the management hierarchy to stimulate performance.

structure

In ____________ interviews, the interviewer asks each applicant the same identical, fixed questions and rates their responses according to a standard measure.

structured

Posts such as foreman, department head, and team leader tend to be part of the ____________ management level.

supervisory

Scarcity of goods and services impacts which economic forces?

supply demand price

A shoe company was having trouble getting the raw materials for its most popular shoe. Because there was a shortage of the shoe, it raised its prices to consumers. This demonstrates the influence of ________ on prices.

supply and demand

Shaun Johnson is a top manager at a construction firm that has been tasked with laying a pipeline through a large section of the state. In some ways, the project will help the local community. But in other ways, such as harming the environment, it will hurt the local community. Johnson is concerned about the project's _____, or whether a company's economic development meets present needs without endangering the ability of future generations to meet their own needs.

sustainability

Middle managers do __________________, determining what contributions their work units can make with their existing resources during the next 6 months to 2 years.

tactical planning

Changing machines and processes is related to _____________.

technology

Connie's Chalupas has placed samples of its product in grocery stores in mostly Hispanic neighborhoods to see how customers react to them. This company is conducting ____________.

test marketing

What does the Hawthorne effect establish?

that employees work harder if they think managers and supervisors care about their welfare and pay special attention to them

Small businesses meet certain criteria set by _______________ regarding the number of employees and annual sales revenues.

the Small Business Administration

The Global Compact is a voluntary agreement established in 2000 by _____ that promotes human rights, good labor practices, environmental protection, and anticorruption standards for businesses.

the United Nations

What allows the firm to specialize, focusing all its efforts on one market segment?

the concentration approach

What presents the company's overall plan of action for a particular time period?

the master budget

The height of prosperity, ___________, is the point at which the economy begins to decline or contrast.

the peak

Increasing the price increases ____________ resulting in a new _____________.

the quantity supplied equilibrium price

How acceptable the deviation is depends on what?

the range of variation built into the standards established

In starting a new firm, entrepreneurs risk what?

their time, money, and resources

Waning product popularity, copycat brands, and pressure from government regulation are ____________ to an organization.

threats

At which point in the production process do companies today conduct quality assurance?

throughout the process

When a company has shareholders, it needs to introduce new products to keep rewarding them. Which reason to develop new products is most evident?

to continue to expand revenues and profits

Products can quickly become obsolete and fall out of favor, making it easy for other companies to step in and take market share. This focuses on which reason to develop new products?

to stay ahead of or match the competition

A(n) _____ is made up of individuals and companies in a specific business or industry organized to promote common interests.

trade association

Leaders that promote vision, creativity, and exceptional performance are ___________ in nature.

transformational

At the end of an accounting period, the bookkeeper does a check for accuracy, called a(n)

trial balance

Leaders that are conscientious and have good execution and organizational skills are _____________ leaders.

trnasactional

In ___________ interviews, the interviewer simply asks applicants probing questions in a conversational way. There aren't any fixed questions asked of all applicants and there is no systematic scoring of answers.

unstructured

CEOs, CFOs, COOs, and presidents belong to the __________ management levels across industries.

upper

What is it called when two companies merge that are in the same industry but each performs a different activity?

vertical merger

What an organization wishes to become is expressed in a ______________ statement.

vision

The balance sheet should be thought of as the ______________ of the organization.

vitals

Slow diversification, suboptimal outlet location, and dependence on one flagship product are ______________ to be looked into and corrected.

weaknesses

The features of _________ span of control include many people reporting to a manager, being common in decentralized firms, and being appropriate when the level of interaction between superiors and subordinated is low.

wide

A flatter organization should have a _________ span of control.

wide/broad

The following are characteristics of __________ span of control? Organizations have removed the many layers of management in exchange for many people reporting to one manager. This creates a flatter organization that is easier to communicate within. This structure is also a complement to the adoption of employee empowerment since it allows workers more autonomy to make decisions regarding their own positions. This enables them to more readily satisfy customers. Flatter organizations are known to respond more readily to customer demands since empowered employees have authority and responsibility for making decisions. Larger organizations have adopted flatter structures in order to match customer responsiveness demonstrated by smaller firms.

wide/broad

__________ in economic activity causes an increase in economic output which is triggered by a rise in investment spending, government spending, or exports.

An expansion

_____________ is the failure or refusal of a party to a contract to live up to his or her promises.

Breach of contract

__________ refers to the technological expertise and practical experience that allows entrepreneurs to quickly determine new wants and needs and deliver new products.

Knowledge

___________ are obtained to legally protect inventions of machines, manufacturing processes, and chemical substances.

Patents

__________ competition is a type of free market that has many small sellers who sell interchangeable products to many informed buyers.

Perfect

Socialism has five key drawbacks. What are they?

Problems with central planning High taxes Possible brain drain Less job and wealth creation Possible government deficits

What refers to the amount of goods and services people can buy with the money they have?

Standard of living

What are the four major types of business laws?

Statutory law Common law Administrative law International law

_________ is the lowest point of a business cycle, where the contraction ends and the expansion begins again.

The trough

What is any activity that seeks to make a profit by satisfying needs through selling goods and/or services and generating revenue?

a business

What is a precise statement of the rationale for the business, and a step-by-step explanation of how it will achieve its goal?

a business plan

While pursuing debt financing, Randy is asked to create a business plan. Which of the following is not likely to be included in the business plan? an analysis of the business competition a list of past failures of the entrepreneur strategy for acquiring funds to sustain business estimate of incomes and expenses an explanation of the business

a list of past failures of the entrepreneur

What is a group of people who work together to accomplish a specific purpose?

an organization

It is said that small businesses are the __________ of America.

backbone

Which factor of production includes the buildings and tools that are used to produce goods and services?

capital

The United States has a predominately ____________ system, while many believe it is a _____________ with elements of ___________.

capitalist mixed economy socialism

A big company that helps small nonprofit firms working to make a difference in antipoverty, literacy, and the environment by providing them with small loans is an example of _________________.

cause-related marketing

What is a commercial activity in which a business forms a partnership with a charity or nonprofit to support a worthy cause, product, or service?

cause-related marketing

Command economies are also known as __________ economies.

central-planning

In the __________ phase, the pace of economic activity slows down and output falls.

contraction

In ____________, owners have little liability, can raise money from shareholders, and must manage heavy costs and paperwork.

corporations

A nuclear plant requires large quantities of water for its cooling system. Which factor of production is described?

natural resources

Entrepreneurs need to be self-confident and believe they have personal control of their destinies because they: have employees who look up to them. need the confidence to act decisively. need to convince others they are worthy. know it influences others to invest in them. can't accept any personal setbacks.

need the confidence to act decisively.

A ___________ ____________ market has many small sellers who sell interchangeable products to many informed buyers. No seller is large enough to dictate the price of any product.

perfectly competitive

A small Texas town is struggling economically. Most residents are out of work and desperate for jobs. When Bully Manufacturing comes to town and hires workers, residents are grateful to be employed. Bully requires its new employees to work twelve-hour days, doesn't give lunch breaks, and illegally pays them less than minimum wage. Bully Manufacturing is a ________.

sweatshop

A small business almost always has ______ or fewer employees, but according to some definitions a small business may have as many as ________ employees.

100 500

What happens when the cost of making the product increases?

A business will not offer as many units at the old price. Increasing the price increases the quantity supplied, resulting in a new equilibrium price.