Intro to Business Final Exam

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________ is an accounting method in which revenue is recorded when payment is received and an expense is recorded when money is paid.

Cash basis

________ rate is the rate a bank charges its best loan customers.

Prime

Which of the following reflects the percentage of the labor force currently without​ work?

Unemployment rate

In​ a(n) ________, one company buys a controlling interest in the voting stock of another company.

acquisition

Break-even analysis is a method of​ ________.

calculating the minimum sales needed to cover all costs

The organized network that moves a product from the producer to the customer is known as the​ ________.

distribution channel

The point at which the demand and supply curves intersect—the point at which the quantity demanded and supplied are balanced is called the​ ________.

equilibrium point

Balanced scorecard is a method of​ ________.

monitoring a​ company's performance from multiple perspectives

A(n) ________ is a​ specific, short-range target to help reach a goal.

objective

Money serves as a​ ________ when it is used as a way of accumulating wealth until it is needed.

temporary store of value

"Do what's​ right, respect​ others, care for​ customers, and perform with​ excellence." This is likely to be an​ organization's ________ statement

values

________ is an agreement to use another​ company's brand on its products for a fee.

A license

Which of the following is a source of​ long-term debt​ financing?

Corporate bond

Which of the following is a characteristic feature of economic​ contraction?

Decreased consumer spending

Which of the following refers to evaluating a​ company's performance and the economic implications of strategic decisions such as product​ pricing, employee​ benefits, and business​ acquisitions?

Financial analysis

What type of exposure to financial liability is there in a sole​ proprietorship?

Financial liability is unlimited and the​ owner's personal responsibility.

Who oversees the work of nonmanagerial​ employees?

First-line managers

Who are those responsible for investigating financial​ crimes?

Forensic accountants

Which of the following handles the initial public offerings of stocks and​ bonds?

Primary market

At the federal​ level, small businesses can apply for loans backed by the​ ________

Small Business Administration​ (SBA)

Which of the following tracks how much money a company has generated over time and where it​ went?

Statement of cash flows

What is the most essential role of middle​ managers?

Translating strategic goals into action

What is the advantage to opening a franchise instead of starting a business from the ground​ up?

You can work for yourself and have the advantages of being a part of an established organization.

Under​ ________ leadership, subordinates have little or no freedom to make​ decisions, deviate from​ plans, or provide contrary input.

autocratic

Margin trading occurs when a​ ________.

buyer borrows money from the broker to buy stock

Net sales​ - cost of goods sold​ = ________.

gross profit

The profit​ earned, or the loss incurred by a​ firm, determined by subtracting expenses and taxes from​ revenues, is referred to as the​ ________.

net income

Prototypes are​ ________.

preproduction samples of products

_______ refers to the resources or capabilities a company must have before it can start competing in a given market.

Barriers to entry

________ refers to the categorization of customers according to their relationship with products or response to product characteristics.

Behavioral segmentation

Which of the following combines the benefits of independent business ownership with the support of a large​ organization?

Buying a franchise

Which of the following is a key difference between depreciation and​ amortization?

Depreciation applies to tangible​ assets, whereas amortization applies to intangible assets.

________ skills are required to​ understand, motivate, and lead others effectively.

Interpersonal

________ is the process of influencing and motivating people to work willingly and effectively toward common goals.

Leading

________ consists of the four key elements of marketing​ strategy: product,​ price, distribution, and customer communication.

Marketing mix

Which leadership role is developed based on​ long-term relationships between senior and junior members of an​ organization?

Mentoring

________ are​ organizations, often​ not-for-profit, that lend smaller amounts of money to business owners who might not qualify for conventional bank loans.

Microlenders

Which of the following activities is most likely to be considered​ unprofessional?

Posting critical comments regarding the employer in a personal blog

What are​ long-term partnerships between companies to jointly develop or sell products or​ services?

Strategic alliances

A deep and prolonged recession is known as​ ________.

a depression

A​ ________ merger occurs when a parent company buys one or more companies in unrelated industries.

conglomerate

The ability to define and solve problems and form judgements about a situation is referred to as​ ________.

critical thinking

Microeconomics includes the study of​ ________.

economic behavior among consumers and businesses

The goal of GAAP is to​ ________.

enable outsiders to make confident analyses and comparisons

The​ positive, forward-thinking desire to create a​ profitable, sustainable business is called​ ________.

entrepreneurial spirit

Stock exchanges are organizations that​ ________.

facilitate the buying and selling of stock

An S corporation is allowed to have​ _______.

fewer than 100 investors

Research and development is carried out usually during the​ ________ stage of product development.

introductory

The​ Sarbanes-Oxley Act outlaws​ ________.

loans by corporations to their own executives

​A(n) ________ is an unincorporated company owned by two or more people

partnership

Which of the following is an example of a current​ asset?

Accounts receivable

What makes a great team player and is often an indication of management​ skills?

Being able to make others more effective

Where can small business partners find help in making an existing company more attractive to​ investors?

Business incubators

________ help an entrepreneurial team develop an idea into a workable business model.

Business incubators

Which of the following requires less work and less risk because there is an established customer​ base?

Buying an existing business

What part of the market environment shapes the behavior of​ customers?

Buying influences

What key aspect of running a business includes the ability to offer valuable goods and services while contributing to​ society?

Corporate social responsibility

________ ratio is calculated by dividing current assets by current liabilities.

Current

________ is an arrangement in which a financial institution makes money available for use at any time after the loan has been approved.

Line of credit

What is a company faced with when it​ doesn't have enough cash to meet short term​ needs?

Liquidity crisis

Which of the following refers to a graphical representation of a​ brand?

Logo

In the money​ supply, what represents the cash held by the public and money deposited in checking​ accounts?

M1

What is corporate​ governance?

Policies, procedures, and systems used to oversee the organization

Co-branding is​ ________.

a partnership to closely link brand names for a single product

Cost-based pricing​ ________.

adds a markup to the cost of producing goods to determine selling price

With most bond​ issues, a corporation retains the right to pay off the bonds before maturity. Such bonds are called​ ________.

callable bonds

In​ a(n) ________, two companies create a​ new, third entity that then purchases the two original companies.

consolidation

A(n) ________ shows the relationship between the amount of product that buyers will purchase at various​ prices, all other factors being equal.

demand curve

The study of the statistical characteristics of a population is called​ ________.

demographics

A company that licenses elements of its business system to other companies is called​ a(n) ________.

franchisor

Private equity refers to​ ________.

ownership in a privately held company

________ is an accounting method in which revenue is recorded when a sale is​ made, and an expense is recorded when the company uses an asset to produce revenue.

Accrual basis

________ skills refer to technical skills in information​ gathering, data​ analysis, planning,​ organizing, and other aspects of managerial work

Administrative

A management accountant is likely to be responsible for which of the following​ activities?

Assessing the manufacturing costs of new products

Which of the following terms refers to a formal evaluation of the integrity and reliability of a​ company's financial​ statements?

Audit

Who is responsible for reviewing the​ long-term plans and major strategic decisions of an​ organization?

Board of directors

________ refers to using a successful brand name on new products in the hopes that the reputation of the existing product will help sales of the new product.

Brand extension

Which of the following is generated through management accounting rather than financial​ accounting?

Budget reports

If stock prices have been increasing over an extended period of​ time, what type of market is being​ experienced?

Bull market

How are taxes paid in a​ partnership?

By each partner based on their individual profit.

What must public accountants obtain before they are eligible to conduct a​ company's audit?

CPA licensing

Which is the​ highest-ranked officer of a​ corporation?

Chief executive officer

________ intelligence involves​ reasoning, problem​ solving, memorization, and other rational skills.

Cognitive

What type of leadership work to foster participative management within the​ organization, seeking input from anyone who can add insight to the​ decisions-making process?

Collaborative

________ is considered to be the most important and pervasive interpersonal skill that managers use.

Communication

________ refers to some aspect of a product or company that makes it more appealing to target customers.

Competitive advantage

________ skills refer to the ability to visualize​ organizations, systems,​ markets, and​ solution, and understanding the relationship of parts to the whole.

Conceptual

________ is the management function of keeping a​ company's activities on track toward previously established goals.

Controlling

________ are everyday individual goods and services that people buy frequently without much conscious planning.

Convenience products

________ can be exchanged at the​ investor's option for a certain number of shares of the​ corporation's common stock.

Convertible bonds

________ is the total cost of using various debt and equity sources.

Cost of capital

Which of the following is an example of a fixed​ cost?

Cost of insurance premiums

________ are​ not-for-profit, member-owned cooperatives that offer deposit accounts and lending services to consumers and small businesses.

Credit unions

________ is a combination of private and public​ financing, in which an entrepreneur invites people to fund a share of a new business venture or a new product.

Crowdfunding

________ are unsecured​ bonds, backed only by the​ corporation's promise to pay.

Debentures

Which of the following refers to the amount of a good or service that customers will buy at a given time at various​ prices?

Demand

________ is an accounting procedure for systematically spreading the cost of a tangible asset over its estimated useful life.

Depreciation

________ are contracts whose value is determined based on the value of some other entity such as stocks pools of debt or currencies.

Derivatives

________ is/are the study of how a society uses scarce resources to produce and distribute goods.

Economics

Which of the following gives employees the authority to make decisions that apply to their specific areas of​ work?

Employee empowerment

Which of the following activities would be a part of facilities​ management?

Ensuring that the office building adheres to safety standards

________ is/are led by​ innovation, initiative, and the willingness to take the risks in creating and operating businesses.

Entrepreneurship

Which of the following functions is typically performed by top managers of an​ organization?

Establishing the structure for the organization

Which of the following should be developed to present a concise overview of a business plan to​ investors?

Executive summary

A business plan indicates that investors will be able to sell their investment through a public stock​ offering, or participate in a buyback of the​ investors' interest. This is an example of which of the following elements of a business​ plan?

Exit strategy

________ verify the financial reports of public companies as required by law.

External auditors

The​ ________ is the federal agency responsible for protecting money in customer accounts and managing the transition of assets whenever a bank fails.

Federal Deposit Insurance Corporation

Who is responsible for ensuring franchisors disclose accurate relevant information to potential​ franchisees?

Federal Trade Commission​ (FTC)

Which of the following positions would be responsible for establishing the​ long-term financial goals of the​ company, investing​ funds, and raising​ capital?

Finance officer

The​ ________ oversees GAAP compliance in the United States.

Financial Accounting Standards Board​ (FASB)

Which of the following is a key difference between financial accounting and management​ accounting?

Financial accounting creates information for​ outsiders, whereas management accounting is for insiders.

________ refers to combining accounting and investigating skills to assist in legal and criminal matters.

Forensic accounting

What is the name of the small business owner who contracts to buy a​ franchise?

Franchisee

What is one major advantage of a small firm over a large​ firm?

Freedom to innovate and move quickly

_______ unemployment is the natural movement of workers into and out of​ jobs, such as when a person quits one job without first lining up a new job.

Frictional

Which of the following refers to people and their individual talents and​ capabilities?

Human resources

Why is inflation a concern for businesses and​ consumers?

Inflation affects the amount of goods and services you can buy for a given amount of money.

Which of the following verify the efforts of an​ organization's accounting department and look for ways to improve efficiency and​ cost-effectiveness?

Internal auditors

Which of the following is a component of a​ firm's working capital​ account?

Inventory

Which of the following is an example of a​ company's asset?

Inventory in the warehouse

Which of the following is an advantage of buying into a franchise​ system?

It comes with an established business system.

Preparing a business plan serves which of the following​ functions?

It helps persuade lenders and investors to finance the business. Your answer is correct.

Which of the following is a key advantage of operating a business as a sole​ proprietorship?

It is easy to establish and requires less paperwork than other structures.

Why is an innovative spirit harder to have in a larger​ company?

Large firms are more analytical and careful as they mature.

Which of the following is one of the negative aspects of holding a position on a board of​ directors?

Legal liability for the misdeeds of the company

________ is the technique of increasing the rate of return on an investment by financing it with borrowed funds.

Leveraging

_______ refers to a​ company's target​ customers, the buying influences that shape the behavior of those​ customers, and competitors that market similar products to those customers.

Market environment

In which section of the business plan do you explain your business and what you wish to​ accomplish?

Mission and objective

An HR specialist is most likely to be responsible for which of the following​ activities?

Motivate and train diverse workforces

Which of the following best describes the department where the​ company's products are​ made, or its service is​ performed?

Operations

In a SWOT​ analysis, which term is used to describe the possibility of generating new revenue through positive​ situations?

Opportunities

________ is the process of arranging resources to carry out an​ organization's plans, and is one of the major functions of managers.

Organizing

Which of the following is a quality that a successful entrepreneur is most likely to​ have?

Passion for a new product or idea

________ refers to designing a​ company's offerings and messages in a way so the company and their products occupy a particular place in the minds of target customers.

Positioning

Which of the following is a key difference between private corporations and public​ corporations?

Private corporations are owned by a few​ people, whereas public corporations can be owned by anyone who has the means to buy stake.

When considering a​ product-line extension, what is one of the risks that marketers need to consider​ carefully?

Product cannibalization

Which of the following is a key difference between product mix and product​ line?

Product mix includes all products from a single​ manufacturer, whereas product line contains a group of similar products from the manufacturer.

Which of the following is referred to as the bundle of value offered in a marketing​ exchange, for the purpose of satisfying a need or​ want?

Products

________ is the quality of performing at a high level and conducting oneself with purpose and pride.

Professionalism

​________ is the term used to describe the difference between revenue and expenses.

Profit

________ is an element of the marketing mix that refers to a wide variety of persuasive techniques used by companies to communicate with their target markets and the general public.

Promotion

Which of the following authorizes management to vote on behalf of a shareholder in a​ corporation?

Proxy

________ occurs when no single firm is large enough to influence prices and distort the workings of the​ free-market system.

Pure competition

________ is a measure of how closely activities or outcomes conform to predetermined standards and customer expectations.

Quality

Which of the following ratio is considered to be a better indicator of a​ firm's ability to pay creditor because it leaves out​ inventories?

Quick ratio

________ is a term used to represent the effort of companies to create customer lifetime value while seeking​ long-term profitability and other goals.

Relationship marketing

________ activities are intended to identify new ideas and designs that have the potential to result in new goods and services.

Research and development

________ refers to sums of money​ (equal to a certain percentage of their​ deposits) that banks are legally required to keep on hand.

Reserves

​________ is money that an organization brings in through the sale of its goods and services.

Revenue

In addition to receiving funding from the initial cost of a franchise​ purchase, how does a franchisor make​ money?

Royalties on a percentage of sales revenue

What is the difference between secured and unsecured​ loans?

Secured loans are backed by collateral.

Which of the following is a major advantage of equity financing through the sale of shares of​ ownership?

Selling shares of ownership has tremendous potential to fuel organizational growth.

________ are fairly important individual goods and services that people buy less frequently.

Shopping products

Which of the following pricing methods is characterized by charging a high price for a new product during the introductory stage and lowering the price​ later?

Skim pricing

How do small businesses help to support the needs of larger​ organizations?

Small businesses act as serving agents and suppliers to larger corporations

________ are particular brands that the buyer especially wants and will seek out regardless of location or price.

Specialty products

________ is comprised of individual stock exchanges and the​ over-the-counter market that facilitates the buying and selling of company stock.

Stock market

________ plans outline the​ firm's long-range​ (often two to five​ years) organizational goals and set a course of action the firm will pursue to reach its goals.

Strategic

________ refers to the quantities of a good or service that producers will provide on a particular date at various prices.

Supply

When extending a product to an overseas​ market, what type of governmental influences must be​ considered?

Tariffs and trade barriers

Which of the following skills refer to the ability and knowledge to perform the mechanics of a particular​ job?

Technical skills

________ is a product development stage in which a product is sold on a limited basis to gauge its market appeal.

Test marketing

Which of the following is characteristic of a country with a planned economic​ system?

The economy is largely controlled by the government and freedom of choice is limited in order to accomplish government goals.

Which of the following best describes a​ brand?

The identity that is encompassed in a product or company

Which of the following is a disadvantage for those with the entrepreneurial spirit when considering a​ franchise?

The lack of control over many decisions

How do the roles of top managers differ from middle​ managers?

The magnitude of the decisions being made

Why is starting a business as a sole proprietorship easier than starting as a​ corporation?

There are very few legal requirements as a sole proprietorship.

Which of the following is a disadvantage of a sole​ proprietorship?

They usually have fewer financial resources and fewer ways to get funds from lenders or investors.

How do banks and suppliers most often use the accounting information generated by an​ organization?

To determine creditworthiness

________ refer to brands that have been given legal protection so that their owners have exclusive rights to their use.

Trademarks

Which of the following is an example of a fixed​ asset?

Transportation equipment

________ is a method of setting prices based on customer perceptions of a​ product's worth.

Value-based pricing

On the management​ pyramid, who would be at the​ top?

Vice presidents

A vertical merger occurs when​ ________.

a company purchases a complementary company at a different stage or levels

The maturity stage of product life cycle is​ ________.

a stage where the market is saturated and sales begin to level off

The exchange of value between parties is referred to as​ ________.

a transaction

Public accountants are professionals who provide​ ________.

accounting services to businesses and individuals for a fee

A(n) ________ is a form of​ "group mentoring" in which you assemble a team of people with​ subject-area expertise or vital contacts to help review plans and decisions.

advisory board

In a general​ partnership, ________.

all partners have joint authority to make decisions

a company purchases a complementary company at a different stage or levels

an initial public offering​ (IPO)

In a sole​ proprietorship, the owner​ ________.

and the business are legally inseparable

Private individuals who put their own money into​ start-ups, with the goal of eventually selling their interest for a​ profit, are called​ ________.

angel investors

Capital structure is​ ________.

a​ firm's mix of debt and equity financing

Generating​ a(n) ________ indicates a​ company's financial position on a particular date.

balance sheet

The portion of the brand that can be spoken and can include​ words, letters, or number is referred to as the​ _______.

brand name

A​ ________ is a planning and control tool that reflects expected​ revenues, operating​ expenses, and cash receipts and outlays.

budget

The term​ ________ is used to characterize the fluctuations in an​ economy's rate of growth over a period of several years.

business cycles

A(n) ________ is a framework of how a business intends to generate revenue.

business model

The summary section of a business plan should include​ a(n) ________ which defines how it will generate revenue and produce a profit.

business model

Well-known examples of​ ________ include Taco​ Bell, Pizza​ Hut, The UPS​ Store, and Curves fitness centers.

business-format franchises

The​ money, equipment, and buildings that a business needs in order to produce goods and services are called​ ________.

capital

The​ ________ outlines expenditures for real​ estate, new​ facilities, major​ equipment, and other such investments.

capital budget

Businesses that need very large amounts of​ money, equipment, or other material resources in order to get started are​ ________ businesses.

capital-intensive

Because of the increasing importance of the​ field, most companies now employ​ ________ to oversee the development of IT strategies for the organization.

chief information officers

Transferring net revenue and expense account balances to retained earnings for the period is referred to as​ ________.

closing the books

An S corporation​ ________.

combines limited liability of a corporation with the federal taxation advantages of a partnership

When setting performance​ standards, benchmarking refers to​ ________.

comparing performance data with industry leaders

The​ ________ measures the rate of inflation by comparing changes in the prices of a representative basket of goods and services such as​ clothing, food,​ housing, and utilities.

consumer price index​ (CPI)

A(n) _________ is responsible for overseeing all accounting functions in a​ company, reports to the CFO or company​ president, and is the higher ranking accountant in a company.

controller

Total liabilities divided by total assets will yield the​ ________ ratio.

debt-to-assets

Choosing a candidate from several job applicants is an example of the​ ________ role of managers.

decisional

Demand curves typically slope downward. This implies that​ a(n) ________.

decrease in price will increase the quantity demanded

Because they fundamentally change the nature of an​ industry, ________ can be powerful enough to create or destroy entire companies.

disruptive technologies

The conditions that affect the cost and availability of​ goods, services and​ labor, and the behavior of buyers and sellers are BEST described as the​ ________ environment.

economic

A company strategy of providing fewer products and selling more of each of those products can lower production costs through​ ________.

economies of scale

Intrapreneurship refers to​ ________.

entrepreneurial efforts within a larger organization

The expected norms of behavior in a particular situation are referred to as​ ________.

etiquette

Independent accounting firms that provide auditing services for public companies are called​ ________.

external auditors

A company sells its accounts receivable to an intermediary. The intermediary collects the receivables from the customer. This is an example of​ ________.

factoring

Using a brand name on a variety of related products is known as​ ________.

family branding

Successful financial management starts with an outline of funds needed for a period of​ time, along with sources and intended uses of those​ funds, referred to as​ a(n) ________.

financial plan

Profits of sole proprietorships​ ________.

flow directly to the owners

Predicting when events will occur and their impact on the organization should be done through​ ________.

forecasting

In a​ ________, companies can decide what to​ produce, how to​ produce, whom to sell​ to, and at what price to sell.

free-market system

The​ _______ stage of the product life cycle is marked by a rapid increase in sales.

growth

A company that is highly leveraged is considered to have​ ________.

high debt

Activity ratios analyze​ ________.

how well a company is making use of its assets

The​ ________ function of a business involves the​ recruiting, hiring and support of its personnel.

human resources

The​ ________ is a financial record that represents a​ company's revenues,​ expenses, and profits over a given period of​ time, typically one year.

income statement

Managerial roles are grouped into three main​ categories: interpersonal,​ decisional, and​ ________.

informational

Most countries outside of the United States use​ ________ to standardize their accounting practices.

international financial reporting standards​ (IFRS)

Providing leadership to employees is an example of​ a(n) ________ role of management.

interpersonal

A disadvantage of the corporate structure is that it​ ________.

involves strict reporting requirements

According to the Small Business​ Administration, a small business is defined as a company that​ ________.

is any independent firm with fewer than 500 employees

A sole proprietorship​ ________.

is owned by only one person

A potentially significant disadvantage of a partnership is that​ _______

it has more potential for disagreement and conflict

The policies and practices of government bodies would shape the​ ________ environment for a business.

legal and regulatory

Joint ventures​ ________.

let companies create tightly integrated operations without disrupting the original companies

A​ ________ occurs when someone purchases a​ company's publicly-traded stock primarily by using borrowed​ funds, sometimes using the target​ company's assets as collateral for these loans.

leveraged buyout

A​ ________ is a partnership in which each partner has unrestricted accountability only for his or her own actions and at least some degree of responsibility for the partnership as a whole.

limited liability partnership

The​ ________ function of an organization coordinates the incoming flow of materials and the outgoing flow of finished products.

logistics

A loan that is paid back in installments over an extended period of time is an example of a​ ________.

long-term loan

Prime rate is the​ ________.

lowest rate of interest that banks charge for​ short-term loans

Grouping customers with similar​ characteristics, behaviors, and needs is known as​ ________.

market segmentation

Creating branding and advertising strategies to communicate with potential customers would fall under the​ ________ function of a business.

marketing

The​ _______ includes all other budgets to present a complete and comprehensive view of the​ company's financial position.

master budget

The​ ________ requires that expenses incurred in producing revenues be deducted from the revenue they generated during the same accounting period.

matching principle

In order to be​ effective, a business goal should be​ ________.

measurable

Money serves as​ a(n) ________ to simplify transactions because a buyer can trade it for a good or service.

medium of exchange

In a​ ________, two companies join to form a single entity either by pooling their resources or by one company purchasing the assets of the other.

merger

A(n) ________ is a brief declaration of why the organization exists and how it will conduct itself as it pursues its goals.

mission statement

The​ ________ economic system allows individuals to own and operate the majority of businesses with limited economic intervention by the government.

mixed

If individuals and companies believe they can pursue rewards without facing the risks that should be attached to those​ pursuits, they are more likely to engage in irresponsible and even unethical behavior. This situation is known as​ a(n) ________.

moral hazard

Bonds issued by cities and states to fund public projects are known as​ ________.

municipal bonds

Consumer​ ________ arise(s) from a gap between the​ consumer's actual state and their ideal state.

needs

An organization that seeks to operate efficiently and effectively to achieve its goals without focusing on profit as a motive is a​ ________.

nonprofit organization

When the number of competitors in a market is​ small, and competitors influence each other through production and pricing​ decisions, a situation known as​ ________ is created.

oligopoly

Short-term financing is financing that will typically be repaid within​ ________.

one year

A company can use​ a(n) ________ to identify all sources of revenue and coordinate the spending of those funds throughout the coming year.

operating budget

The value given up when a different opportunity was pursued is referred to as​ ________.

opportunity cost

Entrepreneurs often have a talent for inspiring​ others, and are driven by​ a(n) ________ to succeed.

passion

A callable bond allows the issuer to​ ________.

pay off the bond before maturity

The economic system that allows individuals the least degree of economic freedom is​ ________.

planned

Developing​ strategies, establishing goals and objectives for the​ organization, and translating those strategies and goals into action plans is part of the​ ________ function of management.

planning

With a​ ________, a targeted company invokes some move that makes it less valuable to the potential​ raider, with the hope of discouraging the takeover.

poison pill defense

The value captured from customers in exchange for the value offered in a product determines​ ________.

price

The sensitivity of​ consumer's to changes in the price of a product is reflected in​ ________.

price elasticity

During the final stage of​ development, large-scale production and distribution of the product begins the process of​ ________.

product launch

A​ ________ gives a franchisee the right to sell goods and services as part of a​ franchisor's distribution system

product-distribution franchise

A business plan is a written document that summarizes the​ ________.

proposed business​ venture, goals, and plans for achieving those goals

Asset allocation is performed to​ ________.

protect against significant declines in any one investment vehicle

Businesses use​ ________ to classify people by focusing on why they behave the way they do by examining such issues as brand​ preferences, media​ preferences, values,​ attitudes, self-concept, and opinions.

psychographics

The term​ ________ indicates two consecutive quarters of decline in the​ country's gross domestic product.

recession

Bookkeeping refers to​ ________.

recording the economic activities of the business

When a downward swing or recession is​ over, the economy enters into a period of​ ________.

recovery

In a publicly held​ corporation, the board of directors is​ ________.

representatives of the shareholders

Money used or needed to set up a new business is​ ________.

seed money

Expenses incurred through marketing and distributing a product are referred to as​ ________ expenses.

selling

Equity financing refers to arranging funding by​ ________.

selling ownership shares

All groups affected by a​ company's activities are referred to as its​ ________.

stakeholders

The criteria against which performance is measured are referred to as​ ________.

standards

Those positive internal factors that contribute to a​ company's success are referred to as​ ________.

strengths

Performing at a high​ level, and continuing to improve is an indication of​ ________ in​ one's pursuit of professionalism.

striving to excel

A corporation primarily or wholly owned by another company is known as​ a(n) ________.

subsidiary

The​ ________ depicts the relationship between prices and quantities that sellers will offer for​ sale, regardless of demand.

supply curve

The overall strategic plan of an organization might be supported by plans from functional​ areas, such as research and​ development, manufacturing, and marketing. The plans from these functional areas are called​ ________ plans.

tactical

The term​ ________ refers to forces resulting from the practical application of science to​ innovations, products, and processes.

technological environment

The maturity date is the date on which​ ________.

the debt must be repaid

Machine learning refers to​ _______.

the general capability of computers to learn

Accounts receivable refers to​ ________.

the money owed to a firm by its customers

Movement along the supply curve typically slopes upward because​ ________.

the quantity that the sellers are willing to supply rises with an increase in price

Corporate officers are the​ ________.

top executives who run a corporation

With the​ ________ tactic, a third company is invited to acquire a company that is in danger of being swallowed up in a hostile takeover.

white knight

A public corporation refers to a corporation​ ________

whose stock is sold to the general public

A company has the following​ assets: (1) Fixed assets worth​ $30,000 and​ (2) investments worth​ $6,000. The​ company's total liabilities amount to​ $25,000. What is the​ owners' equity of the​ company?

​$11,000


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