Principles of Strategies

Which of the following is a true statement about selecting employees?

Businesses must determine job applicants' age, education, and job experience

What management function involves motivating and encouraging an employee?

Directing

Existing businesses need to provide what kind of data in the financial plan component of their business plans?

Historical financial data

Which of the following venture-harvesting methods usually supports a venture's future growth and facilitates the business owner's exit?

Initiating a public stock offering

What directing activity involves rewarding employees with positive feedback and monetary incentives?

Motivating

What form of discipline is being used when an oral warning, a written warning, suspension, and finally discharge are used to discipline an employee?

Progressive

Which of the following factors should a business consider when conducting a comprehensive market analysis?

Segment size, competitors, and demand

Why is it important for salespeople to find out something about their customers before trying to sell them a good or service?

To address their needs

Which of the following is a question that an interviewer should ask a job applicant to obtain in-depth information?

What activities do you perform in your current job?

Which of the following questions should effective managerial planning answer?

What do we want to do?

What is an important question that a manager must consider when hiring a new employee?

What is the company's vision?

One of the benefits to the business of an effective employee selection procedure is a(n)

appropriate match of employees to jobs.

Training and human resource development have many benefits, most of which relate directly to an increase in

business profits

An internal method of recruiting employees is through

job postings

The fundamental activity associated with the planning function of management involves

looking ahead

One of the ways that training and human resource development benefits businesses is by increasing employees'

production and quality of work

A business's promotional activities should be coordinated so that they

reinforce each other.

Which of the following best describes a business plan?

A company's business model in written form

Which of the following is an important question that a business should ask when selecting a vendor?

Does the vendor have the resources to consistently meet our business's needs?

What do businesses need to develop to effectively assess employee performance?

Evaluation criteria

Which of the following is a benefit of writing a business plan?

Generating new ideas

What is a potential weakness a manager might identify in a SWOT analysis?

Lack of management depth

Which of the following is an activity that a business performs when conducting a competitive analysis?

Monitor rivals' marketing strategies

Which of the following is a situation in which producers would want to use short channels of distribution?

The market is located close together

Why is it important to ask job applicants about their training and previous job responsibilities during the interview process?

To determine qualifications

Which of the following is the most effective mission statement?

We create happiness by providing the finest in entertainment for people of all ages, everywhere.

When processing customer payments, businesses compare the payment notice with the

check amount

Showing products in use is a good selling technique because it

shows customers product benefits.

Businesses identify market segments by dividing consumers into groups that have

similar characteristics

When an employee's complaints are not resolved by management, the dissatisfaction felt by that employee could

spread to other employees

When conducting SWOT analysis, consider strengths and weaknesses in relation to

the competition

What is the management function that involves comparing what was planned with what actually happened?

Control

What are businesses examining when they conduct a situational analysis during the marketing-planning process?

Environmental factors

Determine whether the following statement is true or false: The type of product being sold influences the way in which it is sold.

True, complicated products require more selling time.

Businesses often verify the information provided on job applications and résumés

conducting background checks

Age, ethnicity, and income are all factors when developing a target segment based on

demographics

A mission statement should be

short, specific, and understandable.

If a business which normally has gross sales of $15,800 per week forecasts an increase in sales of 8%, forecasted weekly sales would be

$17,064

What is a company using when it lets its current employees know about a new job opening and encourages them to apply?

Internal recruiting

Mary is planning to open an educational toy store. She has determined the number of families with children in the area, the average family income, and typical buying patterns. Mary will include this information in which section of her business plan?

Market segment analysis

Which of the following should effective managerial planning do?

Reduce risk

Which of the following are characteristics of tactical planning?

Short-range and specific

What management function involves identifying qualified candidates to perform the business's work?

Staffing

Why is it important for a business to select a target market?

To develop strategies to appeal to customers

Which of the following is a reason why managers develop company objectives?

To identify business purpose

Which of the following should salespeople stress to undecided customers in order to encourage them to buy?

Value

The main advantage of external recruiting of employees over internal recruiting is that it

brings more applicants

Establishing clearly formulated, overall organizational objectives provides a business with

direction for the business's activities.

If sales were $323,000 during a certain period last year, and a 15% increase is expected for the same period this year, what are the expected sales for this year?

$371,450.00

What is one of the best internal sources a business manager can use to predict sales for a particular date?

Past sales records

Why do businesses routinely screen job applications and résumés?

To set up interviews

As a result of reviewing competitors' promotional activities while conducting a competitive analysis, a business might decide to

implement similar activities

The overall purpose of a business's equity goals should be to

improve equity in the work environment

Some businesses need to select an appropriate channel of distribution because they lack the resources to

internal

Burkhart Manufacturing is implementing a new, company-wide computer system. Nadine is in the process of identifying the skills that will be needed to manage the information and maintain the various software applications. What function of management is Nadine focusing on?

Staffing

In some countries, it is illegal for an interviewer to ask questions about a job applicant's

age and health issues.

So that a business can identify and correct problems, it is important to track the performance of its

business plan

What is the demand for our products in this region? This is a question that a business wants to answer when it

conducts a market analysis.

Aaron, a small-business owner, develops an exit strategy so that his company keeps growing and prospering in the marketplace after he leaves. The exit strategy is one aspect of Aaron's

continuation plan

Although training costs money, businesses may find a lack of training even more expensive because of the loss of

customers

The advantage to a business that uses opt-in e-mail to promote its products is that the business can

customize offers

Company XYZ has developed a new flavor of ice cream called Hunky Chunky and has selected a target market that consists of boys, ages 7-15, who are living at home with their parents in a household that earns between $30,000 and $60,000 a year. This method of target market selection is based on

demographics

Before a business takes steps to hire a new employee, it should

determine that a new employee is actually needed.

Key performance indicators used to assess business performance should align with the businesses

goals and objectives

If a firm discovers a competitor's weakness when it is conducting a competitive analysis, the firm has often uncovered a(n)

marketplace opportunity

The new business owner set a goal of selling $50,000 of goods in the first six months. This is an example of a(n) __________ objective.

measurable

One of the purposes of developing a business plan before starting a new business is to

organize the operation.

Complaints regarding job evaluations could be categorized as complaints about

pay

When a business processes a customer's payment, it records the payment as a

receipt of cash.

It is important for a business to evaluate the financial condition of a potential vendor during the vendor-selection process to assess the

risk levels of doing business with the vendor.

Which of the following is economic information that will help in preparing a sales forecast for a business?

sales forecast

Businesses develop standards for how employees should do their jobs, which are then used to examine or evaluate

work performance

A store purchased a shipment of goods for $12 each. A profit of $7 per item is desired, and the operating cost is $3 per item. Markup for each item should be

$10

In a shipment of merchandise purchased for resale, each item costs $30. A profit of $15 on each item is desired. Operating expenses for each item are $5. What should be the minimum selling price of each item?

$50

Which of the following is an example of an activity associated with the directing function of management?

A manager coordinates the tasks of a cross-functional work team.

Quarterly, each of the international vice presidents of Smith & Webber completes the company's scorecard and submits it to the president of the company. The scorecard tracks sales, profit, advertising expenses, and other key information. The scorecard is a tool for which of the following management functions:

Control

Which of the following is a major disadvantage to a business of recruiting job applicants through outside agencies?

Cost of agency services

In which way can a start-up business benefit from writing a business plan?

Define managers' roles

Which of the following is a possible external threat that a business might identify as a result of conducting a situational analysis during the marketing-planning process:

Downturn in the economy

Why should a manager seek employee input when considering solutions to an employee complaint?

Employees may already have a solution to the problem.

A company wants consumers to try out its newest product. What type of promotion would be most effective for the company to use?

Free samples

What is an important step that businesses must take in order to set the prices of goods or services?

Gather cost information

Which of the following is a beginning step to take in handling an employee complaint?

Identify the problem behind the complaint

Which of the following assets usually is a main concern when developing a business's budget?

Inventory

What is one question that a business must answer when identifying a potentially profitable target market?

Is the market responsive?

Which of the following is an example of a flexible 40-hour weekly schedule in which employees are required to be on the job from 10:00 a.m. to 2:00 p.m., Monday through Friday?

Jim works 7:00 a.m. to 3:00 p.m.

Determine which of the following statements is true:

Managing diversity is an ongoing process.

Jackie is a manager with the SDP Company and is establishing a systematic way for her department to complete a long-term assignment. What function of management is Jackie carrying out?

Organizing

Your company sells technical computer equipment to businesses. Which of the following types of promotion would the company probably use?

Personal selling

Which of the following is a factor in the internal environment that a business should consider when conducting a situational analysis?

Pricing strategies

Which of the following is an example of a direct channel of distribution for consumer products?

Producers using catalogs to sell

Caitlin is the manager for a busy accounting department and has decided not to replace the payroll specialist who recently resigned. She wants Martin, who currently handles the firm's accounts-receivable, and David, the accounts-payable clerk, to jointly take over the payroll-processing responsibilities. She also wants her assistant Fiona to take over some Martin's and David's current tasks. What organizing activity is Caitlin performing?

Reallocating resources

Which of the following guidelines would be the most appropriate for a supervisor to follow when administering remedial action?

Resume a normal attitude toward the employee as quickly as possible.

Why should purchasing specialists develop positive relationships with their suppliers?

To help ensure that the suppliers will follow through on their promises

Which of the following is an example of a company objective that might be developed by top management?

To maintain or increase market share

What is the overall purpose of the Americans with Disabilities Act (ADA)?

To make it possible for qualified individuals with disabilities to get and to keep jobs

What is the true purpose of taking remedial action?

To motivate employees to perform at established company standards

Why is it important for a business to conduct a situational analysis during the marketing planning process?

To ward off problems

Which of the following is a demographic characteristic that businesses often use to identify market segments?

Type of household

Which of the following is a factor that a business should consider when selecting a channel of distribution?

Type of product

A new employee has not been coming to work on time since beginning the job a week ago. Which of the following types of remedial action would be most appropriate?

Warning

Businesses with a profit orientation establish selling prices that they feel will

achieve a target return on investment.

Workers who feel they are treated fairly by the businesses for which they work usually

are very productive.

The scope of control that staff members have over their jobs affects the amount of time that a manager spends

directing their work activities.

One of the main purposes of a business plan is to help a new business

establish objectives

One of the functions of managerial control involves comparing the results of various business activities with the

establishing goals

The part of the business plan that gives an overview of the entire document is the

executive summary

When screening applicants' résumés, businesses often use evaluation forms to qualify a person's training and

experience

Once a SWOT analysis identifies an internal strength, a business can use that strength to take advantage of a(n)

external opportunity.

One of the main reasons why a business conducts a market analysis is to

forecast sales

A business's customized software program is to be installed and ready for operation in three weeks. The quickest and most effective way to train all software users would be through

group training

As part of its market analysis, the SVM Company estimates the increases in demand for its products over a set timeframe for a particular market segment. The SVM Company is attempting to analyze the market's

growth rate

One reason for screening résumés is to determine if the applicants

have the desired skills to perform a specific job.

Businesses realize that it is almost impossible to appeal to all customers which is why most businesses try to

identify market segments

As a result of conducting a competitive analysis, businesses are often able to determine

in which markets to compete.

The purpose of maintaining daily financial transactions is to keep track of the businesses

income and expenses

When interviewing a job applicant, it is important for the interviewer to focus on asking questions that are related to the applicant's

job performance

It's important not to confuse weaknesses with

mistakes

A company's training and development program is influenced by a variety of external factors such as changes in

modern technology.

To maintain accurate records of every financial transaction, businesses keep copies of

receipts

When an automobile company markets a van to families and a luxury sports car that appeals to single, working adults, it is engaging in ____________ marketing.

segment

To control various business activities in an effective manner, managers must first

set appropriate standards.