PRINCIPLES OF BUSINESS FINAL EXAM SEM 1

In what way might a human resources manager be involved in employee benefits?

Determining eligibility and costs of benefits

Which of the following occurs when the supply of individuals who are able and willing to work diminishes:

Human resources become limited.

Which of the following factors affects society's basic values and behaviors that influence their buying decisions:

cultural

A popular product is said to be

in demand

What is one way that the trend towards protecting the environment has a negative effect on many businesses?

increases cost

Producers respond to consumers' positive economic votes by

increasing production

Private enterprise is based on the idea that everyone is better served when

individuals are free to set their own goals

One reason that some U.S. businesses have moved some of their operations to foreign countries is to

lower their labor costs.

One way that technological innovation has changed business is by decreasing the use of

paper forms

Alex owns a guitar, several books, a car, and a telescope. Alex's possessions are examples of

private property

Which of the following is a marketing activity:

promoting

Each purchase strengthens the economy by encouraging

trade

A bank denies a business owner's application for credit saying, "We feel that you would be unable to make the monthly payments because of your other debts." What financial report did the bank review?

balance sheet

The growth of e-commerce is changing the way companies do business by allowing them to

be accessible to customers at all times.

In economics, the term capital goods includes

buildings and equipment

When marketers provide information about an available product, consumers are more likely to

buy the product

Which of the following is a key component of managing working capital

cash conversation cycle

Businesses that successfully adapt to current market situations often realize that

change is an opportunity

Levels of inflation and unemployment are factors that affect __________ in the world market.

competition

Labor-union negotiations are part of which HR management activity?

employee relations

Which of the following factors affecting the business environment is represented by the business's location:

environmental

Which of the following is a potential problem in market economies?

financial loss

Wendy's sells the right to operate its restaurants to individuals who meet the company's criteria. The arrangement between Wendy's and these individuals is an example of

franchising

In a communist command economy who decides how the economic questions will be answered?

government

The way in which an economic system answers the basic economic questions depends upon the country's

government

Which of the following government actions is most likely to stimulate the economy:

lowering tax rates

Appropriate information management saves businesses time and money by

maintaining higher levels of productivity.

One internal factor that affects the business environment is

management style

Formal relationships and a distinctive chain of command are characteristics of the _________ organizational business structure.

mechanistic

Using a stream to supply water to a field in order to grow crops is an example of using

natural resources

A business that fails to protect its employees from unnecessary risk or health hazards on the job may be sued for

negligence.

The finance function would definitely be involved in a decision regarding

new business projects and strategies.

One way that competition benefits business is by encouraging the creation of (EC:012)

new companies

When meeting with businesspeople from other countries, it is important to understand social differences, such as bowing, handshaking, and spatial comfort, which are often called

non- verbal cues

One reason a physicians' practice might form a partnership as an LLP is to

protect innocent partners from the malpractice of another partner.

One reason why many small businesses develop an organizational design that requires a board of directors is because a board usually

provides experience that increases the business's credibility.

Businesses can show their social responsibility by contributing to

public intrests

Businesses can protect themselves from the risk associated with lost shipments by

purchasing transportation insurance.

Accounting is distinct from finance because its main focus is on

record-keeping activities

Government can prevent unqualified persons from operating a business by

refusing to grant them a license

One reason why it is important for businesses to identify and respond to current business trends is to

remain competitive

An advantage to a business of filing Chapter 11 bankruptcy is that the process allows the business to

reorganize

According to the marketing concept, which option demonstrates customer orientation?

researching a firms competitors

A business should conduct environmental scans on a continuous basis so that it can

respond to opportunities and threats quickly.

Which of the following is a measure of how well a business generates cash flow

return on capital

If expenses are greater than income, there's no

reward

As the use of information-management systems continues to grow, it is important for businesses to be concerned with their customers'

rights to privacy

A business is planning a sale and needs to know what sales were for a particular weekend in the previous year. Which of the following accounting records would provide this information:

sales journal

Consumers are typically most willing to pay more for goods and services that bring them greater

satisfaction

To discover a product's level of utility, marketers measure the consumer's

satisfaction

Online chats, forums, and communities that enable businesses to learn about the wants and needs of their worldwide target market have created a new form of

social relationships

Gross profit shows business owners the difference between what they've (EC:010)

spent and received

A manager who helps an employee count the money in a cash drawer and prepare a bank deposit is demonstrating

technical skills

Which of the following factors has aided the most in creating a global business environment

technology

Which of the following is an example of a demographic trend:

the aging of the population

A socially responsible business will attempt to give customers

the best products at the best prices

Human resources are a company's most important resources because

they control all other company resources.

What is one reason why the federal government awards patents to businesses that have invented new products or manufacturing processes?

to encourage research

Lack of economic growth is a major problem for __________ economic systems.

traditional

Contractual agreements such as guarantees, surety bonds, and leases are examples of handling business risks through

transfer

Which of the following situations would most likely indicate the need to adapt to changes in the business environment:

The supply of materials used in manufacturing a product has decreased.

Which of the following is a reason that the role of human-resources management is changing:

There is greater diversity in the workforce.

Why are entrepreneurs important in a private enterprise system?

They encourage the development of new products.

Why does the government set and collect taxes?

To help pay the expenses of government

Which one of the following groups of words best describes wants:

Unlimited, changing, and competing

Which of the following is an example of increased financial risk for a company with poor business ethics

Decreased company value

A business's philanthropic responsibility involves its contributions to

chariety

Which of the following is an example of nonverbal communication that might have a different meaning to business people in other parts of the world:

shaking hands when greeting a customer

One reason that businesses use a matrix organizational design is to

share human resources

Government owns the basic means of production but there is some private ownership of businesses under

socialism

Retailing takes place whenever goods are

sold to the ultimate consumer

Which of the following is a way to evaluate supplier performance after the purchased goods or services have been delivered:

Review the invoice

Why is routing an important production activity?

Routing establishes the production path of inputs

Complying with environmental laws is part of which operations activity?

Safety and security

Companies that operate at the international level should be aware of political factors that affect trade, such as civil unrest or

embargoes.

An important factor that has a significant effect on the general business environment is

technology

What are the three basic economic questions?

What products will be produced; how will products be produced; and how will products be allocated?

In an overall sense, where does marketing occur?

Wherever customers are

Which of the following is a detail that a buyer should know prior to placing an order for raw materials?

Whether the company has storage space for the raw materials

The U.S. produces widgets faster and cheaper than Switzerland. In this example, the U.S. has a(n) __________ advantage.

absolute

The ultimate goal of all economic activity is (EC:001)

consumption

What determines whether an economic product is an industrial product or a consumer product?

who buys and uses the product

Which of the following is a benefit of international trade

An improved standard of living

Why should a business practice good ethics?

An ethical business contributes toward its own success.

Which of the following is a characteristic of the organic organizational business structure:

Delegation emphasis

Which management function is described in the following situation: James Crane has created a team atmosphere among the members of his sales department. When the team exceeded their monthly sales goal, James rewarded them with a celebratory dinner out and a five-percent bonus.

Directing

Which of the following are examples of middle-management job titles:

District manager, department head, and regional sales manager

Which of the following is a factor that would encourage businesses to start a business at a particular location:

Easy access to natural resources

what is a qualitiy of monopolies

High prices and low production (correct answer)

Which of the following economic resources is responsible for combining the other resources to produce goods and services:

Human Resources

Which of the following would be done first in an environmental scan:

Identifying participants and responsibilities

what is the best action for businesses to take in order to adapt to changing markets:

Implement innovative strategies and ideas

Which of the following is a trend in information management:

Increased compliance laws and regulations

Which activities are likely to increase a firm's profit?

Increasing sales and decreasing expenses (correct answer, your response)

What type of property is a business protecting when it registers its trademark?

Intellectual

What is a public good that is provided by the government:

Interstate highways

Why is production important to businesses?

It creates goods and services businesses can sell

How does the finance function relate to company spending?

It plans and controls spending

Why is a good accounting system important to a business?

It shows the business how it is doing.

Human resources management is demonstrated in which of the following statements:

The business takes care of the responsibilities associated with having employees.

Which of the following examples illustrates how environmental factors are interrelated:

The economy affects what competitors are doing.

Annika, the purchasing specialist for Dottie's Donut Shop, just located a new, less expensive sugar supplier. Dottie does not plan to lower donut prices. If Annika buys the shop's sugar from this cheaper supplier, what is likely to happen?

The profit margin for donuts will increase.

An American businessperson in London was offered a "cuppa" by the company's receptionist. The businessperson did not know that the receptionist was offering a cup of tea. This is an example of

a language barrier

One way in which many businesses demonstrate their social responsibility toward employees is by providing them with

a safe working environment

Juan's Fishing Shack demonstrates effective information management by (EC:071)

accessing a list of fishing equipment appropriate for a particular customer.

Changing a good's form involves what

adding a new feature to the good

Three primary factors that affect the organizational structure of a business include interpersonal relationships, tasks, and (EC:103)

authority

Management decides to hold its annual meeting in one U.S. city rather than another because of crime in that city. This is an example of __________ the risk.

avoiding

A country with a weak currency value tends to

decrease its imports and increase its exports.

What type of trend are businesses considering when they analyze where customers live and their ethnic backgrounds?

demographic

Changes in the market that cause prices to go up or down, products to change, and businesses to succeed or fail are examples of __________ risks.

economic

Operations managers have two main goals in mind—efficiency (keeping costs low) and on

effectiveness (keeping customers satisfied).

What role does utility play in the implementation of the marketing concept?

A satisfaction gauge

In order for an accounting system to be useful to the business, the accounting information it contains must be

Accurate and up to date

Jake wanted to run his own business but was unsure that he had adequate business skills to be successful. Which type of business would give Jake the help he needs? (BL:003)

Business format franchise

How does appropriate information management affect a business's relationship with its customers?

Businesses serve customers more effectively.

How does marketing-research data help a business's production planning?

By identifying consumers' needs and wants

Overall, what does marketing allow us to do?

Live our daily lives

After a company's training needs are determined, what is the next step in training and development?

Managing employee performances

Information management can be a challenge because

Many people do not understand what it is

Which of the following demonstrates the interrelationship among primary business activities:

One business activity changes, so the others must adjust in response.

What management function is being described in the following situation: David Thomas, a top-level manager, identifies jobs to be performed, assigns responsibility for them, establishes departments to handle the jobs, and determines how many and which employees mid-level managers will supervise.

Organizing

Which of the following situations involves finding an alternative resource to use in place of a nonrenewable natural resource:

Powering a motor vehicle with biodiesel instead of gasoline.

Which of the following will foster a business's ability to adapt to changing markets:

Proactive management

Identify the term that best represents marketing's role in society.

Problem solver

Franco's Bread Shop is introducing a new type of sandwich bread to the community this week. Which of the following describes the business activity the bread shop is likely involved in:

Promoting the new bread through advertising

Which of the following is a situation that might make businesspeople from other countries feel uncomfortable and impact their ability to conduct business:

Standing very close to others during conversations

Which change provides the most time utility for a consumer?

Staying open for business on the weekend

Jeremiah purchases sterling silver necklaces and bracelets from Native American artisans and sells the items to jewelry stores and gift shops. What kind of buyer is Jeremiah?

Wholesale

Jaron, the district technology coordinator for Abington City Schools, is responsible for purchasing new computers for the district. He recently sent out a request for price quotes to five different computer companies, and he is waiting to hear what the various suppliers' proposed prices will be. Jaron is conducting

competitive bidding

The overall purpose of accounting is to

compile the business's expenses.

A student purchased a laptop to use for homework assignments. In economic terms, this computer would be classified as a(n) __________ good.

consumer

Carefully selecting goods or services to sell is an example of handling business risks by __________ the risk.

controlling

Managing information regarding copyrights and trademarks helps a company to preserve its

correspondence

One reason an existing business might develop a company web site is to

create a new revenue source.

One of the benefits of production to consumers is that production

creates from ultility

One way that competition helps to build a prosperous society is by

creating new jobs

A wholesale distributor would like to track its customers geographically. Which software application would be most effective?

database

A manager studies the business's previous sales statistics as well as the sales forecast before making purchasing decisions. What type of resource is the manager using?

information

A clothing manufacturer checks one pair of pants out of every shipment to ensure the quality of its product. This process is known as quality on

inspection

A business suddenly moves its operations to a new town, leaving its current employees jobless. Its reason for taking this action, which some consider unethical, might be that the action

is not illegal

Because operations managers control so much of a business's money, they must focus on

keeping cost low

Computer database programs make it easier for businesses to manage

large amounts of related data.

ABC Specialty Wear is the only company that has written permission to use a national football team's logo on its sportswear. This is an example of a

licensing agreement.

Running out of inventory can result in on

lost sales

Offering high quality, large assortments, and free shipping are examples of

nonprice competition

With Rosita's pizza shop, financial analysis is used to

obtain funding for supplies

John, Robert, and Charles were college friends who wanted to start a business. John has creative ability, Robert's expertise is selling, and Charles' expertise is management. However, each has limited capital. The ideal business ownership for these young men is a

partnership

Which of the following is a disadvantage of private enterprise:

periods of unemployment

Which of the following is an environmental factor that affects the performance of businesses that market products on a global level

political risk

A main reason that environmental scanning is important is so that businesses can be aware of

potential threats.

A manufacturer is a type of business that

turns raw goods into useful products

A characteristic of human wants is that they are

unlimited

What is the government doing when it buys wheat to keep the price high enough for farmers to make a profit?

using price supports

One of the freedoms provided to individuals by the private enterprise system is the freedom to choose

where they will work

Which of the following is a reason that a U.S. company would decide to offer its products in other countries

to expand to new, untapped markets

A nation that exports more than it imports maintains a

trade surplus

Efficient production enables businesses to

turn out the most products at the least cost

If a good or service is scarce, consumers will usually be

willing to pay money to get it

Most businesses put their greatest competitive efforts into competing

with direct competitors

Over the next few years, members of Generation X and Generation Y are expected to fill many job positions vacated by retiring Baby Boomers. This is an example of a change in (EC:003)

workforce demographics

Which of the following is a true statement about business ethics and the law: (EC:106)

The two are not the same thing, but they do overlap.

Which of the following is an example of a business using technology to improve the efficiency of its salespeople

Providing laptop computers

To maintain its current customer base and attract new markets, the KMV Company lowered the prices of some of its products. What external factor most likely influenced this action?

changes in customer spending

The law that requires businesses to hire, train, transfer, and promote employees without regard to race, color, gender, religion, or national origin is the __________ Act.

civil rights