ASK Exam

What is an example of the limits to economic freedom?

A company wants to purchase an office building, but another company purchases it

Jamal assembled a small group of independent business professionals to guide him through the early stages of his new business venture. What type of external resource is Jamal using to supplement his expertise?

Advisory Board

When writing a letter of inquiry, when should you identify the purpose of your letter?

At the beginning of the letter

Holly, Cary, and Rick are working on a project together, even though they are geographically far away from each other. They use the Internet to work on documents together, share files, and communicate quickly and easily. What type of software are Holly, Cary, and Rick using?

Groupware

What components of a business letter includes the date?

Heading

Are the outputs of production limited to tangible items?

No, outputs can be tangible or intangible.

What is a characteristic of a product trade-name franchise? (Fast food)

The franchisee can choose the name of the business

What kind of attitude should an entrepreneur have about new technological developments?

The impact of new technologies should always be evaluated

Why would the SCW Company conduct a break-even analysis?

To determine the optimal selling price for a good or service

The primary benefit of work group interdependence among a business's employees is to ensure the

achievement of common goals and mutual benefits

The president of the Spanish Club asks each member to sign up to tutor children at the local library. The president is exhibiting

altruism

When writing a business report, Thomas might check his writing and style manual to determine the

appropriate way to cite his resources

An advantage to businesses of offering credit is that credit customers

are not as price-conscious as cash customers

An advertising agency can maintain computer data security by limiting access to certain information by

assigning each employee a unique password to access the computer system

When planning a business's product mix, the business must make decisions about components such as the product line, packaging, and

brand development

Managers use financial information to create and adjust

budgets

During a manager's meeting, Jon says, "In relation to Marilee's previous remark, our department has a similar problem. Perhaps we should form an internal committee to address these issues." In this situation, Jon is contributing to a group discussion by

building on someone else's comment

The owner of a business is meeting with the company's managers and supervisors to set objectives for the next year. This group is developing the company's

business goals

Changes in accounts receivable are reflected in

cash from operations

Open-minded people are willing to

challenge the status quo

When businesses help employees work together and share their knowledge in order to complete a project, they are managing

collaboration

Considering the quality of products being sold by similar businesses in the same community is an important aspect of conducting a

competitive analysis

A written or oral expression of employee dissatisfaction is called a(n)

complaint

The staffing function is different from the organizing function because staffing is

continuous

Communities of practice benefit businesses by

decreasing the learning curve for new employees

Nonprofit organizations often pool and invest donated money in

endowment funds

During the employee-selection process, most businesses first require job applicants to

fill out an employment application

A willingness to learn, change, and take occasional risks all refer to a leader with

flexibility

One reason that companies perform needs assessments is to determine

if there is a market for a product or service

A firm wants to evaluate its customers' experiences with the company and its products by asking them to complete a questionnaire. When formatting the questionnaire, the firm should

include specific questions about operational components

Businesses use budgets to manage their

income and expenses

An example of a desirable goal an individual could attain would be to

increase perseverance

To help Joseph determine which career to pursue, he should honestly examine his personality traits, abilities, and

interests

Shonda needs to choose between two colleges. After doing a lot of research about both schools, she has a gut feeling that one is the right choice, so she decides to go there. Shonda is using ___ to solve her problem,

intuition

The administration of assets refers to decisions about

investments

You can tell that a project was successful if it

is sustainable

Current employees often assist with the orientation process by helping the new employees

learn their jobs

To prevent business failure, even a very profitable company must

manage its cash flow

One computer tool that a businessperson can use to organize online information for a research report is

mind-mapping programs

Most businesses establish policies against racial or ethnic jokes and inappropriate physical contact on the job to create and maintain a (an)

non-hostile work environment

Facts are true outside of the mind and are not based on feelings or biases. Facts are

objective

To prevent others from using its brand logo, a business should

obtain trademark protection

When tracking the performance of a business plan, businesses usually analyze the effectiveness of

operating strategies

Shia manages the day-to-day activities needed to produce and distribute smartphones for a worldwide company. Shia's job title is most likely

operations manager

At Catherine's company, every employee has his/her own permanent record that includes information regarding his/her hiring, evaluations, promotions, reprimands, and terminations. These files are known as ______________ records.

personnel

Promotion, layaway, and credit help create what kind of utility

possession

When a business charges high prices for luxury items, it is using a positioning strategy that emphasizes

product quality

One characteristic of trade-industry businesses is that they sell

products to others

In planning a staff meeting for her department, Mara should

provide a meeting agenda to review

The general purpose of managerial planning is to

provide direction

The purpose of requiring customers to use a check-in, check-out system for taking clothing into fitting rooms is to

reduce the opportunity for theft

A business posting "authorized employees only" signs to keep customers away from certain areas is an example of a

safety procedure

If you are in an ambiguous situation and need to make a decision, you can ______ to reduce the unknowns associated with all options.

shift to other perspectives

When DeShawn's teacher compliments his work on his group project, he's sure to give credit to the other group members who helped. DeShawn is showing

transparency

Maurice, a coffee shop owner, is choosing a new vendor to supply his shop with napkins, cups, and other paper products. He has several vendors to choose from, and he's not sure which to pick. For the best results, Maurice should choose the supplier who

views relationships as partnerships

Cookery Manufacturing orders heating elements from the Kenton Company to produce ovens. Recently, customers complained to Cookery that their ovens were not heating properly. Cookery researched the issue, and determined that the customers purchased ovens with defective heating elements. Kenton and Cookery took action by replacing the defective parts for the customers. In this situation, Cookery and Kenton maintained a positive working relationship by

working together to resolve a problem

What is the percent of increase in net profit from last year to this year if a business had a net profit of $35,500 on sales of $270,000 last year and a net profit of $50,000 on sales of $330,000 this year?

2%

What represents the best opportunity for innovation:

A town's only car wash is always busy, time-consuming, and expensive

What do financial institutions often develop to be able to identify and offer the types of services that their customers want and need?

Accurate profile

Business accounting information often is summarized in which of the following types of financial statements:

Balance sheet

To whom does the chief executive officer (CEO) of a public corporation report?

Board of directors

Why is it important for businesses to carry automobile insurance on employees who drive their own cars on company business?

Businesses are liable if an accident occurs

A customer telephoned to complain that a promised shipment had not arrived and to find out what happened. You say that you will check and call back. How can you show a customer-service mindset?

By calling back as soon as possible with an answer

Managers are responsible for directing the business's employees in ways that prompt goodwill and build positive customer relationships, which often improve

Customer retention rates

What is a major cost that every new startup must plan for?

Capital expenditures

What is an example of an external financial risk that a company might experience:

Change in currency exchange rates

When Charlyne buys gasoline for her car, she is surprised that she doesn't have to pay any tax in addition to the price of the gasoline. Why is this?

Charlyne is paying an excise tax that is already included in the purchase price.

Why do businesses usually spend more money on advertising during the maturity stage of the product life cycle?

Competition is intense

What is a characteristic of well-conducted feasibility study?

Complete

What trait is being demonstrated when employees treat customers with respect and without prejudice?

Consideration

What are the primary functions of management?

Controlling, leading, organizing, and planning

One way that an advertising agency can protect the original song it created for a client's television commercial is by obtaining a

Copyright

Julian just got paid $100 for a week of house-sitting. Now, Julian needs to decide what to do with the money. What is the first step that Julian should take in his decision-making process?

Determine what his financial objectives are

Jackie is a dentist. Which channel of distribution will Jackie use to provide services to clients?

Direct

What is a factor that affects the final cost of a product to a business buying goods for resale:

Discounts

Larry's Dairy wants to team up with Rookie Cookie to develop one new ice cream flavor. How should Larry's Dairy accomplish this?

Execute a joint venture

When Deanna, a small-business owner, allocates 6% of her company's profit to product development, she is investing what type of resource?

Financial

What is a technique that employees can use to help prevent accidents in the workplace?

Follow safety instructions

What is the opportunity cost for a person who decides to place $500 in the bank rather than purchase something s/he really wants but does not need?

Immediate gratification

What is an example of a broad objective that top management might develop for a business

Increase profitability

What is an example of demographic trend that has encouraged entrepreneurial discovery?

Increased cultural diversity

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

Initiating a public stock offering

What is an advantage of a loan program provided by state or local development corporations?

It may offer small-business loans at lower rates

What is an example of a person financing a new business by selling assets?

Jonathan sells his vintage sports car

Before starting their business ventures, which of the following would entrepreneurs recognize first:

Opportunities

Bob owns Infinity Yachts, a yacht charter business in the Florida Keys. Bob recently decided to increase his advertising, specifically the advertising on local radio and television. Which of the following marketing functions relates to Bob's decision:

Promotion

What statements regarding protocols is true:

Protocols are broader in nature than other types of company guidelines

What is a true statement regarding quality management and the environment?

Quality-management plans should create environmentally sustainable processes and products

Bennett has just finished college and has moved into her own apartment that is located on a bus line. She'll be able to take the bus to her new job that she's scheduled to start in a month. In fact, she'll need to rely on bus transportation until she saves money to buy a car. What insurance coverage should she have?

Renter's insurance and temporary short-term health insurance

When shopping for an investment broker, which of the following things should you always do:

Run a background check

What is a source of income that a person should consider when developing a personal budget?

Salary

What can you do to prevent identity thieves from getting your personal information?

Shred or tear up important financial documents

What is an example of how all small businesses directly strengthen a nation's economy?

Small businesses are the building blocks of large corporations. to reduce the

What components of a promotional plan addresses exactly how a business will achieve its goals?

Strategy

What kind of customer would ask, "If I buy this product, how can I be sure it will do what you say it will?"

Suspicious

Jamal is a skilled communicator and is well liked by all who meet him. However, he is struggling in his sales position because he is not familiar with the new software and computer programs used for communicating and making presentations. Which of the following will help Jamal improve his job performance:

Updating his technology skills

What is an advantage to companies that use integrated software programs?

Users can combine information from different applications

What questions does the company description section of a business plan answer:

Where is the business located?

Should employees be part of management's efforts to create an equitable work environment?

Yes, employees should be involved

What type of statement can make a person feel defensive and angry during a conflict?

You