Intro to Business
scarcity
Weeds, sand, and paper clips would not make good mediums of exchange because they lack the key characteristic of:
does not have a size limitation
A corporation:
worker's compensation
A falling box injured Beatrice Hix while she was helping to unload a truckload of aquariums for her employer, a pet store operator. She is receiving pay for lost work time due to the work-related injury. _____ paid her for her lost work time.
subsidy
A(n) _____ is a tax levied by a nation on imported goods.
discount rate
All of the following terms are associated with international trade EXCEPT:
one year
Fixed assets are property and buildings that a firm expects to use for more than:
fixed-position
A German company specializes in building laboratory rooms for handling dangerous viruses and bacteria. Each room is designed to have a completely separate life support system that allows the users to examine and identify the viruses and bacteria without contaminating any other area. What type of a layout would be used to construct such a room?
network of computer systems that share the use of software and hardware
A LAN is a:
job analysis
A _____ is a study of the tasks required to do a particular job well.
financial intermediation
A bank is engaged in _____ when it accepts the farmer's deposit of $127,000, and then makes a business loan of $50,000 to a small business owner.
job shop
A manufacturer that uses the intermittent process to produce special customer orders is called a:
manufacturer' agent
A manufacturers' representative is sometimes called a(n):
wide area newtwork
A network that connects computers at different sites via telecommunications media is called a(n):
$600
Aaron Medford has invested $600 in the corporate stock of a manufacturer of offshore oil drilling equipment. If the company goes bankrupt, the most Medford could lose would be:
hygiene
According to Herzberg, _____ factors must be present to prevent work dissatisfaction, but these factors cannot serve as a source of satisfaction or motivation.
comparative advantage
Canada is currently the second largest producer of nickel in the world. The reopening of the world famous Voisey's Bay mine, which has total resources estimated at 124 million tons of nickel-bearing ore, should give Canada a clear:
import-export
Canadian logging companies sell timber in the United States. To the U.S., the timber is a(n)_____, and for Canadians, the timber is a(n) _____.
management
Chez Dove is an independent coffeehouse/bookstore that went bankrupt only eight months after opening due to an unexpected demand for cash to fix a leaking roof. Better cash _____ might have allowed the business to continue operation.
may be influential in determining a person's decision-making behavior
Codes of ethics:
batch
Collecting data over a period of time and then processing that data all at the same time is called _____ processing.
do all of the above
Companies are adopting enterprise portals because the portals:
social
Drew Pastrin bought an AZPX brand skateboard because all of the "other guys" were buying them. Pastrin was influenced by a(n) _____ factor.
product design
During production planning, the operations manager must make decisions about all of the following EXCEPT:
B2B, B2E, and B2C
Enterprise portals can take one of three forms. They are:
target market
Finding a place to live in Mumbai, India, has been getting harder these days for people who are not vegetarians. Vegetarianism is a centuries-old custom among the Indian population, but the requirement is becoming more obvious as non-vegs are being segregated from vegs. A real estate broker in Mumbai who will only rent or sell a home to a vegetarian as defined that group as its:
stakeholders
For Lladro Comercial, S.A., the manufacturer of handcrafted porcelains, its employees, suppliers of the paints used to decorate its porcelains, retailers of its products, and people who benefit from its philanthropy are all:
medium of exchange
For a college student who needs to buy an $80 textbook, the money she received from her parents for the purchase of school supplies would be used as a:
product
Gambrinus is a large company that owns and operates the breweries that produce Moosehead Lager, Bridgeport Ale, Pete's Wicked Ale, Corona beer, Trumer Pilsner, and Shiner Bock. Each brewery is run as an independent division and each produces a malt liquor that appeals to a different market. This is an example of departmentalization by:
referent
Hassan Nasrallah, the leader of Hizbullah: grew up very poor but very smart, and although he wears the robes of a minor Shiite cleric, he is a world-class politician. He has been called the most charismatic figure in the Muslim world. Nasrallah exerts _____ power over his followers.
the assembly process
Hershey's hot cocoa mix combines dry milk, whey, corn syrup, processed cocoa, aspartame, and artificial flavorings and colors. This conversion process is an example of:
social
In Maslow's theory, the need to belong to informal social groups both on and off the job is an example of _____ needs.
$80
Iris Souza started the summer with $30. She took $10 and made signs for her dog walking service. She posted the signs all over her neighborhood. She used the other $20 to buy a stout leash and a pooper-scooper. At the end of the summer, after buying herself a new pair of shoes for $50 (she had worn her other shoes out walking dogs), she had $125 left. Calculate Souza's costs for her summer job?
coercive
Jack Welch, former CEO of General Electric, was known by his employees as "Bloody Jack" because of the downsizing and restructuring he insisted the company do if its various departments were unable to achieve organizational goals. Knowing this nickname, you can assume that Welch used _____ power to accomplish his goals for GE.
protectionism
Japan bans importation of rice to protect its domestic rice industry. This ban is an example of:
sole proprietorship
Jules Sylvester had always loved reptiles. When he was asked by a movie producer if he could locate some anaconda snakes for a movie, a business was born. Sylvester is the proud owner and operator of Reptile Rentals. The California-based business, which he started with no financial help from anyone, is often called on to provide "creepy, crawly" moments in the movies. Jules Sylvester is an example of a:
product
Kohber is a Swiss-company that makes medical equipment. It recently purchased a company, which manufactures packaging for high-value drugs. Since it will run the packaging company as a separate division, it would seem that Kohber is departmentalized by:
online
Processing data as they become available is called _____ processing.
outsourcing
Shell Oil Company used Intertek Caleb Brett, an Australian research laboratory, to provide all analytical services needed to support one of its full scale refinery. With this _____, Shell replaced domestic employees at the site of the refinery with employees from the Australian firm.
mass production
Spalding produces large numbers of golf balls all at once. Spalding puts the golf balls in inventory and distributes them around the world. Spalding uses:
legal
Laws have curtailed smoking, and as a result, the sale of cigarettes is down. Rather than fighting the law, the cigarette industry is looking for ways to take their business beyond cigarettes. Many experts believe that the cigarette producers have found a way around the law with the promotion and distribution of smokeless tobacco, which has shown consistent sales gains over the last decade. In terms of the social responsibility pyramid, at which level is the cigarette industry operating?
utilitarianism
Mamma's Diner was a small restaurant that was a popular hangout for many Bedford College students, but because of the owner's inability to make the bathroom stalls handicapped accessible for the one wheel-chair student on campus, it was forced to close down. The belief that this it was morally wrong to deprive the majority of the people of this experience is an expression of the philosophy associated with:
income statements
Managerial accounting provides all of the following financial information EXCEPT:
top
Manila Water, the provider of the water and sewerage services in the capital of the Philippines has purchased the government owned water and sewerage system for the entire country. In terms of the managerial hierarchy, its president Antonino Aquino is in _____ management.
virtual private networks
Many companies use _____ to connect two or more private networks over a public network, such as the Internet.
pricing
Maria Manow is planning to sell handmade quilts 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.
corporate philanthropy
The Healing Garden is the manufacturer and marketer of organic beauty aids. Its annual $40,000 donation to The Nature Conservancy in support of the nonprofit organization's pledge to preserve the environment is an example of:
An open economy that spurs innovation
What are the benefits associated with free trade and globalization?
whether it takes title to the product
What is the primary difference between a merchant wholesaler and an agent?
trade
When Magna Manufacturing sells hand on screwdriver sets to Malloy Building Supply Company, Magna bills the tool manufacturer for the screwdriver purchase with terms of payment, which specify when the account is due. This type of unsecured loan is called _____ credit.
all of the above
When a firm goes public, it must reveal such information as:
classic
When he read Chicken Soup From the Soul, Joe Farmer was struck by how many of the stories mentioned the scent of the islands. So Farmer created bottles filled with Hawaiian air and some scented essence beads. When customers shake the bottles up and open the lids, they're transported back to paradise. While many marketing experts did not think that consumers would buy bottles of air, Farmer has earned more than half a million dollars of sale during his first year of operation. Farmer was an example of a _____ entrepreneur.
increase the amount and frequency of use
Which goal are airlines trying to achieve when they use frequent flyer programs, which give customers points that can be redeemed for free travel, rental cars, and other merchandise?
budgeting
Which of the following is NOT one of the four functions of management?
ambitious
Which of the following is a characteristic of the entrepreneurial personality?
apprenticeship
Which of the following is a type of on-the-job training?
a person's age
Which of the following is an example of a demographic factor?
all of the above
Which of the following is an example of an advertising medium?
all of the above are examples of unethical business activities
Which of the following is an example of an unethical business activity?
home shopping network
Which of the following is an example of nonstore retailing?
computer networks include clients and servers
Which of the following statements about computer networks is true?
None of the above statements about individual rights is true.
Which of the following statements about human rights is true?
accountants are typically classified as private or public accountants
Which of the following statements about the accounting profession is true?
Utilitarianism holds that an action that affects the majority adversely is morally wrong.
Which of the following statements about utilitarianism is true?
interest is tax deductible
Which of the following statements does NOT describe an advantage inherent in equity financing?
a parking lot
Which of the following would be an example of a capital expenditure for a superstore that specializes in outdoor grills and other items needed for outside dining?
information reporting system
Which type of information systems is used by both operational managers and middle managers?
time deposits
_____ are deposits at a bank or other financial institution that pay interest but cannot be withdrawn on demand without penalty.
public accountants
_____ are independent accountants who serve organizations and individuals on a fee basis.
commercial banks
_____ are profit-oriented depository financial institutions that accept deposits, make business and consumer loans, invest in government and corporate securities, and provide other financial services.
Brokers
_____ bring buyers and sellers together, do not title to merchandise, receive commission on sales; and have little say over company sales policies.
Equity
_____ financing is a form of financing consisting of funds raised through the sale of stock in a business.
social investing
_____ is the practice of limiting investments to securities in companies that behave in accordance with the investor's beliefs about ethical and social responsibility.
Depreciation
_____ is the process of distributing the original cost of a long-term asset over the years of its useful life.
leadership
_____ is the process of guiding and motivating others toward the achievement of organizational goals.
local area networks
_____ offer companies a more cost-effective way to link computers than linking terminals to a mainframe computer.
information technology
_____ refers to all of the equipment and techniques needed to manage and process information.
outsourcing
_____ refers to sending work functions to another country resulting in domestic workers losing their jobs.
do all of the above
Which of the following factors can be used to create an atmosphere in a store that sells sports memorabilia?
transaction processing system
Which type of information system is used only by operational managers?
Angel investors
_____ are individual investors or groups of experienced investors who provide funding for start-up businesses.
social responsibility
_____ is the concern of businesses for the welfare of society as a whole.
Distribution
_____ is the efficient management of the acquisition of raw materials to the factory and the movement of products from the producer to industrial users and consumers
frequency
_____ is the number of times an individual is exposed to an ad.
corporate philanthropy
_____ is the practice of charitable giving by corporations; includes contributing cash, donating equipment and products, and supporting the volunteers' efforts of company employees.
common
_____ stock is a security that represents an ownership interest in a corporation and has voting rights.
marketing concept
According to the _____, a firm should first identify consumer needs and then produce the goods and services that will satisfy them.
private accountants
Accountants employed within organizations are called:
coercive
Airline stewards in China will remove someone from the plane if they attempt to bring their own food with them. Instead, passengers must buy the food sold on the plane. The stewardesses have been given _____ power to deal with passengers who won't obey the rules.
low costs
Aldi is a no-frills grocery chain. It sells grocery staples right out of crates and boxes with emphasis on low-priced, private-label brands. Aldi stores are typically about one-third the size of the traditional supermarket. By controlling expenses, Aldi customers can expect to save 30 to 50 percent compared to Kroger customers. The chain targets bargain hunters who are willing to rent a cart and bag their own groceries. Aldi competitive advantage is based on:
the willingness to be a follower rather than a leader
All of the following are characteristics of an entrepreneurial personality EXCEPT:
shop steward
Allyson Cooke is a union member and an employee of a company that manufactures surgical equipment. She believes she has a grievance because her supervisor made her work an hour longer than usual for several days and has refused to pay her any overtime. Cooke should contact her _____, who represents union members to management when workers have complaints.
functional
An advertising agency that has separate departments for artwork, creative design, print advertising, radio advertising, television advertising, and specialty advertising is using _____ departmentalization.
justice
Another factor influencing business ethics is _____, or what is fair according to prevailing standards of society.
can be either a cash or a non cash donation
Corporate philanthropy:
utilitarianism
Criticism of South Africa's post-apartheid government contends that the new government has not extended liberties to its black majority population, but has instead concentrated on proving to a white minority that a black-run administration can govern a reasonably sophisticated economy and society. The belief that the new South African government is behaving unethically is an expression of the philosophy associated with:
Float
Dakota Mining Company pays its bills and employees with checks drawn on a bank from another part of the country. Checks usually take about three days to clear the firm's account. _____ is the advantage gained during the check-clearing time.
job-protection argument
The _____ is a protectionist argument that says the U.S. should use tariffs to keep foreign labor from taking away U.S. jobs.
balance of payments
The difference between a country's total payments to other countries and its total receipts from other countries is called its:
its citizens cannot afford to buy much
The standard of living is low in Honduras. This means:
product, process, and fixed-position
The three main types of facility layouts are:
natural resources
Thom Nielssen owns 500 acres of woodland. His forest is an example of which factor of production?
general partnership
Three Sisters Specialty Foods, owned by Judith Coker, Millie Humphreys, and Jade Watson, sells eggless cake mixes for people on a restricted diet. Coker recently purchased an industrial grade mixer without conferring with her sisters who were upset when they learned that they were all three liable for the payments on the mixer. Three Sisters is an example of a:
Sole Proprietorship
The form of business ownership that has the most difficulty in raising capital is the:
generally accepted accounting principles
To ensure accuracy and consistency in the way financial information is reported, accountants follow rules known as:
does all of the above
The marketing concept:
assembly-line
The product layout is sometimes called the _____ layout.
an open market operation
The purchase or sale of U.S. government bonds by the Federal Reserve to stimulate or slow down the economy is called:
stakeholders
_____ are all the individuals or groups to whom a business has a responsibility.
intranet
General Electric saves $1.6 billion per year by using its private corporate network that links its 340,000 employees. Another name for this network that operates behind a firewall is a(n):
intangible asset
Toys "R" Us was founded in 1948. The iconic mascot Geoffrey the Giraffe was introduced in February 1960. Geoffrey used in all ads and promotions used by the retail toy chain is an example of a(n) _____ because it does not have a physical existence.
federal reserve
Which federal agency is responsible for processing and clearing checks between financial institutions?
intrapreneurs
Gord Larose and his friend David Allan worked in Ottawa at Nortel Networks, a giant telecommunications-equipment maker. One Friday afternoon, over a few beers in Larose's kitchen, they dreamed up a scheme for renting software over the Internet. Instead of quitting their jobs, they reported to work on Monday, explained their plan to their boss, and began working to make their idea a reality. Four years later, their idea has evolved into an important division of Nortel called Channelware. Larose and Allan are examples of:
Do all of the above
Manufacturers' representatives usually:
all of the above
Money is used as:
how the company's top management conducts themselves
One of the keys to ethical business behavior is:
methods of taxation of each partner
Partnership agreements generally specify all of following EXCEPT:
store of value
Ruth Hu recently inherited $200,000. She has invested the inherited money in real estate and government securities. Hu is using her money as a:
return
In finance, the opportunity for profit is called:
revolving credit agreement
Herschel George is a soybean farmer. He has arranged a business loan with terms that guarantee that he can borrow up to $30,000 whenever he needs it within the next year. He must pay interest only on the unpaid loan balance. George has arranged a:
decision support
If a manager needs a reporting system that provides the ability to ask "what if" questions, he or she would probably install a(n) _____ system.
knowledge workers
It is paramount for a dentist to provide the best patient care possible. The dental assistant, even though he or she may perform unskilled work such as fitting a patient with a bib, must also know the proper use of surgical and sterilization techniques to ensure patient safety. Formally educated dental assistants have the knowledge to understand the difference between sterilization and disinfection, and the relative importance of both. Since such are nearly always performed by dental assistants, a dental assistant can be correctly identified as a:
account payable
In 2006, the retail industry voted the Bike Gallery as one of the top 100 bicycle retailers in the United States. It recently purchased a truckload of Thule brand bike racks from the manufacturer. Until the Bike Gallery pays the bill, the purchase will be carried on Thule's books as a(n):
A computer network is a group of two or more computers linked together by communications channels to share data and information.
Which of the following statements about computer networks is true?
management information system
A(n) _____ is the collective term that describes the methods and the equipment used to provide information about all aspects of a firm's operation.
mortgage
A(n) _____ loan is a long-term loan using real estate or other assets as collateral.
Theory X
Fourteen million office workers in the US have their online activities under constant surveillance, according to the Denver-based Privacy Foundation. Worldwide, it reckons the number of employees under such surveillance totals around 27 million people.According to the foundation's Workplace Surveillance Project the low cost of snooping technology is the main reason why employers are employing a _____approach to management.
limited partner
Fred Pittman has invested $10,000 in his son's motorcycle repair shop, but he takes no part in its management. Pittman is a(n):
certified managerial accountant
In the accounting field, CMA stands for:
economic
It has been alleged that a Coca-Cola water bottling plant in India has caused illegal water shortages in fifty villages that surround the bottler. If this accusation is true, than Coke was operating at which stage of the social responsibility pyramid?
code of ethics
The _____ for the Music Teacher's National Associations establishes a standard of conduct and recommends a set of responsibilities teachers should have toward students, colleagues and the public. These guidelines assist the professional music teacher in gaining the respect of peers and avoiding conflicts and complaints with students and others. It points out to members what are and what are not considered fair, honest and reasonable practice when dealing with students, colleagues and the public, it provides guidance for such aspects as advertising practices, appropriate relationships, and personal and professional integrity.
departmentalization
_____ is the process of grouping jobs together so that similar or associated tasks and activities can be coordinated.
Theory X
The _____ style of management is based on a pessimistic view of human nature and assumes that the average person dislikes work, will try to avoid work, prefers to be directed, avoids responsibility, and wants security above all else.
network
The governor of New York that he has directed the state's Division of Criminal Justice Services to gather DNA from the broadest range of convicted criminals permitted under current law. This will result in the collection of as many as 40,000 DNA profiles. The additional DNA profiles may be obtained as a condition of release on parole or probation, as a condition of participation in the Department of Correctional Services' temporary release programs, and as a condition of a plea bargain. A computer _____ would allow investigating officers from other states to access the New York profiles and to provide information about their state's criminals to New York's law officers.
database management system
The governor of New York that he has directed the state's Division of Criminal Justice Services to gather DNA from the broadest range of convicted criminals permitted under current law. This will result in the collection of as many as 40,000 DNA profiles. The additional DNA profiles may be obtained as a condition of release on parole or probation, as a condition of participation in the Department of Correctional Services' temporary release programs, and as a condition of a plea bargain. A(n) _____ will be used to store, maintain, and acquire data from these records.
tactical
The world's largest bank, Deutsche Bank, set as its objective to make its brand name as recognizable in the United States as FedEx and Visa are over the next ten years. The implementation of this long-range plan would require _____ planning.
mass customization
There is a standard approach to butchering a steer. Once the steers are butchered according to the agreed upon method, butchers are able to provide one customer with a 2-inch thick T-bone steak and another with thin pieces of steak for making fajitas. After standardized preparation, the meat is tailored to meet individual needs and desires. This is called:
term loans, mortgage loans, and bonds
Three important forms of long-term (capital) expenditures are: