BIZ 201 Final

The assets of Prosian Italia, a marble and granite company, amount to $400 million, and its liabilities add up to $180 million. Based on the accounting equation, Prosian Italia's owners' equity is equal to _____

$220 million

XYZ Inc. had the following figures in its income statement: Sales $920,000 Cost of Goods Sold (or Cost of Revenue Sold) $320,000 Other Revenue $30,000 Salaries $200,000 Advertising $100,000 Rent $80,000 The net profit figure is

$250,000

The owner's equity in Plato Inc. is $60,000, and its assets are worth $100,000. In this case, Plato Inc.'s liabilities amount to

$40,000

In order to multiply items in Excel you would use

*

What is the syntax for a SUM function adding the values of cells F6 to F9?

=SUM (F6:F9)

Miller is the owner of a restaurant that has several franchises. One of the franchisees owes Miller a sum of $18,000 for the goods that he had bought from Miller on credit. In this scenario, the money owed to Miller as shown on Miller's Balance Statement is known as _____

Accounts receivable

Which of the following is a difference between managerial accounting and financial accounting?

Financial accounting uses a set of generally accepted accounting principles and prepares reports for external stakeholders, whereas managerial accounting is the process whereby information is shared internally and used to make decisions within the company

In the video we watched in class, Warren Buffet made the following point

He thinks accounting is the language of business and all business people, regardless of their function in an organization, need to understand accounting

Which of the following statements best describes a highly leveraged firm?

It is a firm that has higher current assets than current liabilities

In the context of support for small businesses, the _____ assists entrepreneurs by providing informational resources and help obtaining loans

Small Business Administration

From a financial manager's perspective, the time value of money reflects the fact that

a dollar received today is worth more than a dollar received in the future

A trade embargo is

a government ban of exports and imports to and from one or more countries

What is an industry

a group of companies that are related based on their business activities

Disney and Comcast owning Hulu is an example of

a joint venture

In the video we watched in class, Danielle Ruffolo's Handy Hats is an example of a business idea that started with

a problem statement and then the development of a solution

Starbucks has come together with Krogers and Target to form

a strategic alliance

In terms of international trade, the US has

a trade deficit

Machvile Corporation, a robotics company, decides to acquire Chancera Inc., a start-up company that operates within the same industry. To better assess its decision, the management of Machvile Corporation needs to find out the value of Chancera Inc.'s total assets. The management has information regarding Chancera Inc.'s liabilities and stockholders' equity. In this scenario, the management should most likely use the _____ to get the required information

accounting equation

Graham, the operations manager at Flux Corp., presents a report to the management about the problems faced by the company in handling various tasks across the company's value chain. He points out that the company does not have expertise in most of these tasks and performing them leads to inefficient use of resources. In the context of the given scenario, to improve the company's utilization of resources, the management should

adopt the strategy of outsourcing

One of the advantages that small business entrepreneurs have over large companies is

all of the above (provide personal customer service, focus on a niche market, and often have low overhead costs)

Molly is part of a college department creating a number of student files with Microsoft Excel. She is working on a student retention project and wants to produce a worksheet that can alert faculty of student progress. Each worksheet will contain a specific class with the students' grades for the entire term. In order to determine the current student GPA for all classes, Molly would have to use the _____ function

average

The two kinds of basic financial statements that are prepared in financial accounting are

balance sheet and income statement

In the context of consumer preference, _____ refers to dividing the market based on how people react toward various products

behavioral segmentation

Which of the following statements is true

both Subway and Chipotle are known for efficiency, but Chipotle tends to focus more on effectiveness

The amount of goods and services that are being produced in a given country increases when _______ increases

cell phone penetration

The inventory turnover ratio is considered an important gauge of how companies manage their assets because

companies have to balance minimizing slow selling inventory and waste with the risk of out-of-stocks which can cause lost sales and customer dissatisfaction

Through the establishment of a set of generally accepted accounting principles (GAAP), the Financial Accounting Standards Board (FASB) aims to ensure that financial statements are

comparable

In the context of management skills, _____ refer to the ability of managers to grasp a big-picture view of the overall organization and the relationship between its various parts

conceptual skills

In the context of the barriers to international trade, which of the following is the best way to overcome socio-cultural barriers and differences?

conducting thorough research about behavior, norms, and values of the people in that foreign country

Planning for unexpected events, or ____ planning, is usually spearheaded by senior management with inputs from other management levels

contingency

The current approach to marketing has evolved through a number of overlapping eras throughout modern history from the early 1900's to the present. The stage we are currently in is best described as

customer relationship era

Operations management goals include all of the following except

day to day marketing that must be done to sell those goods and services

In the context of goal setting in an organization, the most effective strategic goals are

defined in clear numerical terms

The extent to which decision-making power is held by a small number of people at the top of the organization is known as _____

degree of centralization

Boson Corp., an American software development company, wants to expand its business in international markets. Therefore, it buys property in the Philippines and sets up a production facility there. This is an example of

direct investment

The key dimensions of a business economy are ____ environments

economic, competitive, technological, social, and global

Marie, an operations manager at Clagox Systems, spends a lot of time in figuring out ways to achieve the established goals of the company at minimal costs. She conducts meetings and asks for suggestions from her teammates to reach the targets at the lowest possible expense. In this scenario, Marie is focusing on _____

efficiency

Basically, _____ marketing connects with people at the core of their feelings

emotional marketing

An Excel formula always begins with an

equals sign

Saudi Arabia is renowned for its rich oil reserves. It earns approximately $1.3 billion annually by selling crude oil to other countries. Given this information, Saudi Arabian companies are involved in

exporting

As segments increase in size, it becomes easier to satisfy them with the same product

false

The 3 main functions of all businesses are

finance, marketing, and operations

Which of the following is a characteristic or total quality management (TQM)?

focuses on the empowerment of employees

Allowing a foreign company to use your patents or trademarks in producing products is an example of

foreign licensing

___________ set objectives for their followers but give them autonomy to choose how they accomplish those goals

free-rain leaders

_____ set objectives for their followers but give them autonomy to choose how they accomplish these goals

free-rein leaders

Financial capital refers to the

funds a firm uses to acquire its assets and finance its operations

One of the threats of trying to open your own small business is

high health insurance cost

A manager with strong _____ skills is typically good at communication

human

As part of its corporate social responsibility activities, Weslimkur, a tire manufacturer, sponsored 1,000 bikes for the city of Clankofton. On every bike, the company's name is engraved along with these words: "Ride to work; help save earth from global warming." Which of the following marketing strategies does this scenario best illustrate?

idea marketing

Right to work laws in some states mean

if a labor union is voted into a workplace that all employees do not have to be part of that union

Maurice, the supervising manager of a telecommunications company, requires detailed information about the expenses that the company incurred from its monthly operations in the last fiscal year. In this scenario, Maurice should refer to the _____

income statement

Which of the following personality characteristics is commonly found in successful entrepreneurs

internal locus of control

Miriam Corporation manufactures scrubbing sponges at the lowest possible cost. It keeps its product prices competitive by working to keep manufacturing and overhead costs low. What is most likely true of Miriam Corporation?

it focuses primarily on efficiency

Which of these statements is TRUE?

it's more expensive winning a new customer than keeping a current customer

In the context of customer satisfaction, a product has value when

its benefits to the customer are equal to or greater than the price that the customer pays

Harley-Davidson employs a method of inventory control demanding that suppliers deliver parts and raw materials to Harley's production facility just as they are needed and in exactly the right amounts. This type of inventory control is known as________

just-in-time inventory control

What percent of US businesses export?

less than 10%

Ikea is focusing on what aspects of the value chain

lowering prices on the same items over time by vertically integrating and focusing on changing consumer trends

In the context of the location of new Amazon facilities, their operations managers often look at unused mall space as potential new distribution sites bacause

malls tend to be located near interstate highways, the land can be purchased more cheaply, and the locations tend to be close to heavily populated areas (all or the above)

The primary goal of financial management of a publicly traded company is to maximize

market value of the company

Technology has given consumers the ability to order a piece of art in one of 10 sizes, with 20 different options for mattes and dozes of styles of picture frames. This ability is available quickly and to all consumers. This is an example of

mass customization

In the context of a SWOT analysis of a company, which of the following is an example of an opportunity?

new social trends in the market

Which pricing strategy does a company use if they want to go into the market with a very low price on a new product they are introducing

penetration pricing

David owns a restaurant and used most of his savings to fund this venture and also borrowed funds from his friends and family. In the given scenario, David used __________to fund his business

personal resources

The Sales Center presentation made the point that during a business presentation

pitch a solution to a problem rather than pitching a product you are selling

In an effort to expand its business, music retailer Musow offers DVD rentals online. In order to understand the trends in consumer interest, Musow has decided to evaluate data of the hyperlinks that customers click when they visit its website. This is an example of how a company can obtain _____

primary data

David works at Klambunk Motors, an automobile manufacturing company. Once a new automobile has been designed by the design team, David determines and finalizes all the activities required to manufacture and deliver the new automobiles to showrooms. In this scenario, David determines the _____ needed to transform the company's inputs into outputs

processes

The elements of the marketing mix are

product, price, place, and promotion

Brown Inc., is a publicly traded manufacturing company. The company's net income is relatively more than the amount invested by it's owners, thereby giving larger returns to its shareholders. What ratios will Brown Motors most likely highlight in their annual report to their shareholders: _____

profitability ratios

Studies show that most people's #1 fear is

public speaking

What is the primary reason for a company to issue stock?

raise money to grow the company

Nescat Autos, an automobile manufacturing company, developed a secondary market for its products in a foreign country. This allowed the company to minimize its losses when its primary market failed to generate enough revenue to benefit the company. In this scenario, which of the following is most likely to have influenced Nescat Autos's decision to set up a market in another country?

reduced risk

Aldi grocery stores has been successful in developing a business model that concentrates on

reducing the amount of inventory they carry, thus eliminating waste

Which of the following is a feature of the growth stage of a product life cycle

rising sales

Revenue is defined as

sales plus other money coming into the firm

Factoring is a means of short-term financing for corporations that involves

selling your accounts receivable to a company for a discounted amount

One of the best ways to come up with a good business idea is

start with identifying a problem and then develop a solution

Gross profit dollars is calculated by

subtracting cost of goods sold from total revenue

An organization's ______ consists of the organizations, activities, and processes involved in the physical flow of goods, from raw materials stage to the final consumer

supply chain

The government of Lichtenstein, a European country, learns that the low-priced textile imports from Vietnam are negatively affecting the sales of their domestic textile companies. Lichtenstein's government decides to levy a 6% taxon all textile goods imported into their country from other countries. In this scenario, which of the following trade restrictions does the Lichtenstein government impose?

tariff

The extent to which decision-making power is held by a small number of people at the top of the organization is known as

the degree of centralization

What did the Sales Center students indicate is the most important part of a presentation?

the opening

The Marketing Video that we watched in class that featured information about the RX Bar, Land-o-Lakes Butter, Chobani Yogurt, and Tropicana Orange Juice were all examples of how which part of marketing can make a significant difference in sales?

the packaging of the product

McDonalds has a higher debt to asset ratio than the fast food industry average. Which of the following is true

they are in expansion mode and have good reasons to be taking on the additional debt

Which of the following statements is true regarding Ford's announcement related to new manufacturing plants they are building

they chose the location based upon several factors, including "right to work" laws in those states, they were willing to absorb higher costs to build in the US due to supply chain issues that have hindered their sales, and they received a $250 million forgivable loan from a state government if they actually follow through on all of their promises (all of the above)

Which of the following statements is true of nonprofit organizations

they employ people and take in revenue

In the context of international trade, India, China, and the Philippines attract multi-billion dollar investments because

they have a large group of technically skilled university graduates who work for about one-fifth the pay of comparable American workers

In the context of strategic planning, which of the following is true of mission statements

they provide a clear, long-term focus for an organization

From the video we viewed in class, Starbucks made the following mistakes when entering the Australian market

thinking that Australian food and drink tastes were similar to Americans

The main purpose of financial ratios is

to assess a company's financial management relative to industry averages

Nicole is a trader of silver and diamond jewelry. Due to a recessionary trend in the industry, her business has not been making any profits for a few months. As the end of this economic trend cannot be easily ascertained, she decides to get her house mortgaged so that she can add a new line of business of trading in semi-precious stones. This financial risk appetite of Nicole illustrates her _____ as an entrepreneur

tolerance of uncertainty

A marketing price is a formal document that defines marketing objectives and the specific strategies for achieving those objectives

true

Exporting can be a significant area of growth potential for US companies since 95% of the world's population live outside the US

true

In the context of management, organizing is defined as the process of determining a structure for both individual jobs and the overall organization

true

Strategic planning is high-level, long-term planning that establishes a vision for the company, defines long-term objectives and priorities, determines broad action steps, and allocates resources

true

The deduction of a firm's expenses from its revenue is shown in the income statement of the firm

true

Trade credit is considered a source of short-term financing for a company because suppliers typically allow anywhere from 30-90 days to pay those suppliers

true

When conflicts arise between long-term interest of owners and those of other stakeholders, the fiduciary duty required of financial managers generally leads them to make decisions that are most consistent with the interest of ownership.

true

A _____ is the network of relationships that channels the flow of inputs, information, and financial resources through all of the processes directly or indirectly involved in producing goods and services and distributing them to customers

value chain

Which part of the Business Model Canvas is one of the most important components that distinguishes your new business idea from the competition?

value proposition

A company that is interested in helping fund a person or start-up with a new business idea for a share of the company is an example of what kind of funding

venture capitalism

Because of global business conditions that were made much worse due to the pandemic, large companies in particular are shifting more to the following business model

vertical integration

HubSpot, Inc. a multinational company, decides to take charge of its social media advertising that was previously managed by an outside agency. This scenario best exemplifies

vertical integration

MoneyMatters, a finance firm, provides payroll and financial service to HMD Inc. a manufacturing company. Later, HMD decides to create an in-house finance department to manage its financial matters. In this scenario, MoneyMatters loses its business because of the ____ done by HMD Inc.

vertical integration

In a SWOT analysis, low employee satisfaction is an example of a potential ______ for an organization

weakness

In the SWOT analysis, low employee satisfaction is an example of a potential _____ for an organization

weakness

Uber Syndrome is

when a competitor with a completely different business model enters your industry and flattens you

For your in-class group presentation

you can use 5 slides and take 10-12 minutes for the presentation, you should practice your presentation so that you do not have to read your notes in front of the class, and you should show passion for your topic (all of the above)