BUS 101 Midterm Exam

_____ planning is short-range, detailed planning that is based on long-range planning. It typically has a time frame that is less than one year long.

Tactical

The just-in-time (JIT) system schedules the arrival of inventory so that it can be used almost immediately and will not need to be stored on site.

True

The quantity of a product or service that businesses will make available at various prices is called:

supply

The three principal tools of the Federal Reserve System are:

reserve requirements, discount rate, and open market operations

Which of the following is NOT one of the four functions of management?

Budgeting

_____ are profit-oriented depository financial institutions that accept deposits, make business and consumer loans, invest in government and corporate securities, and provide other financial services.

Commercial banks

_____ stock is a security that represents an ownership interest in a corporation and has voting rights.

Common

Which of the following is NOT a marketing activity?

Compliance

_____ is the efficient management of the acquisition of raw materials to the factory and the movement of products from the producer to industrial users and consumers.

Distribution

Which of these is not a main production planning decision for operations managers?

Employee compensation

Profits can be obtained through relationships in which of the following ways: I. by acquiring new customers II. by enhancing the profitability of existing customers III. by extending the duration of customer relationships

I, II, and III

Which of the following is NOT one of the five key types of power?

Influential

_____ is the process of guiding the development, maintenance, and allocation of resources needed to attain organizational goals.

Management

_____ is the process of arranging the structures and relationships of human and material resources to carry out an organization's plans.

Organizing

Production and operations management involves three main types of decisions that are made at three different stages. The first type of decision to be made deals with:

Production planning

_____ is the money a company earns from providing services or selling goods to customers.

Revenue

Curtiss Anaya is planning to sell kites on the beach this summer to pay for next year's school expenses. _____ refers to the potential that Curtiss will lose money and waste his time and end up at the end of the summer with not enough money to cover his expenses.

Risk

Things of value owned by a firm are called its:

assets

Which of the following calculations is a formal expression of the accounting equation?

assets = liabilities + owners' equity

The _____ summarizes an organization's financial status at the end of an accounting period.

balance sheet

Which of the following is an activity performed by the Federal Reserve System as it carries out its monetary policy?

distributing currency

The ratio of net profit to the number of shares of common stock outstanding is called the:

earnings per share

The physical arrangement of a production facility is called its:

layout

Within the distribution channel, retailers and wholesalers are called:

marketing intermediaries

The primary goal of the financial manager is to:

maximize the value of the firm to its owners

As one of the factors of production, capital includes all of the following EXCEPT:

money

Taco Bell fast-food restaurant does not chop the lettuce and tomatoes and grate the cheese used to make its menu items but hires someone outside the restaurant to perform these tasks. By ______ these tasks, Taco Bell can keep it's overhead low and concentrate its resources on taking customer orders and assembling food.

outsourcing

The ______ is a specific group of customers on whom an organization focuses its marketing efforts.

target market

Which of the following is the best example of a service?

the pleasure you derive from seeing a good play