BUS 110 Chapter 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13

an increase in taxes as state and federal governments stretch to serve the aging population.

As life spans increase and birth rates decrease, the American population is rapidly aging. This may most likely lead to:

business plan

A _____ is a formal document that describes a business concept, outlines core business objectives, and details strategies and timelines for achieving those objectives.

Which of the following is true of the Securities Act of 1933?

It prohibited misrepresentation in the sale of newly issued stocks and bonds.

individual business

Microeconomics focuses on

_____ is the profit or loss a firm earns in the time period covered by the financial statement that reports the revenues and expenses.

Net Income

a brand-new idea

Small firms tend to be effective innovators for a number of reasons. Most importantly, their very reason for being often ties to:

physical barrier

Uncomfortable chairs at a conference can create a(n) _____ to communication.

Unlike the supply curve, the demand curve for most goods and services slopes downward as it moves to the right.

Which of the following is a difference between the supply curve and the demand curve?

genereal partnership

A _____ refers to a partnership in which all partners can take an active role in managing the business and have unlimited liability for any claims against the firm.

conglomerate merger

A(n) _____ is a combination of two firms that are in unrelated industries.

Limited Liability Company

A(n) _____ is a form of business ownership that offers both restricted responsibility to its owners and flexible tax treatment.

Partnership

A(n) _____ is a voluntary agreement under which two or more people act as co-owners of a business for profit.

spinoff

A(n) _____, a type of divestiture, occurs when a company issues stock in one of its own divisions or operating units and sets it up as a separate company-complete with its own board of directors and corporate officers.

survival

Felix lost his job at an investment firm because of downsizing during a period of recession. To keep himself financially stable, he opened a food truck that became a huge success. Which of the following advantages of entrepreneurship initially motivated Felix to start the food truck?

One drawback of exchange-traded funds (ETFs) is that investors:

Having to pay brokerage commissions every time they buy or sell shares.

They invest in promising start-up companies because they want to make money for themselves.

Identify a true statement about angel investors.

It manages the monetary policy of the United States.

Identify a true statement about the Federal Reserve.

land

In the context of factors of production, which of the following is a natural resource?

A venture capital firm

Jacob is in urgent need of financing for his rapidly-growing online travel business Travelmunch. As Jacob does not usually pay off his loans on time, his credit score is very low. He feels overwhelmed and thinks that it would be ideal if he receives some guidance on how to run the business. Given his situation, which of the following key sources of funding would be ideal for Jacob?

personal resources

Julian wants to open a bakery. He uses his savings and borrows some funds from his family to start his business. In the given scenario, Julian uses _____ to fund his business.

The _____ tracks the stock prices of some of the largest and most actively traded companies listed on the Tokyo Stock Exchange.

Nikkei 225

Inflation

Real gross domestic product (GDP) measures the total value of final goods and services produced within a nation's physical boundaries over a given period of time, adjusted for:

providing personal customer service

Rudy, a food truck owner, has sizable followers on his website where he personally interacts with them and thanks them for their support. He also lets his followers know his location and the menu for a day in advance. The opportunity of _____ is highlighted in the given scenario.

Social Responsibility

The obligation of a business to contribute to society is referred to as _____.

monopolistic competition

The term _____ refers to a market structure with many competitors selling differentiated products; the barriers to enter such a market structure are low.

loss

When a business brings in less money than it needs to cover expenses, it incurs a _____.

C Corporation

When people use the term "corporation" without specifying which type, they are generally referring to a(n) _____.

Small Business Development Centers (SBDCs)

are local offices-affiliated with the U.S Small Business Administration-that provide comprehensive management assistance to current and prospective small business owners.

Videoconferencing

has high channel richness, and especially with state-of-the-art equipment, it conveys much of the richness of actually being there.

Harold, a financial accountant in a company, is asked to identify the changes in the company's account values between 2014 and 2016. To get the required information, he uses comparative financial statements, which state the figures for the two years side by side. These comparative financial statements make it easier for Harold to identify the changes that may have taken place during that period. In this scenario, Harold is most likely using _____ to get the required information.

horizontal analysis

The _____ summarizes the financial results of a firm's operations over a given period of time.

income statement

an external locus of control

is a deep-seated sense that forces other than the individual are responsible for what happens in his or her life.

monetary policy

refers to Federal Reserve decisions that shape the economy by influencing interest rates and the supply of cash.

Productivity

refers to the relationship between the goods and services that an economy generates and the resources needed to generate them.

necessity entrepreneurs

In low-income countries, a high percentage of entrepreneurs are considered _____.

_____ refers to funds provided by creditors.

Debt Financing

considered to be the owner's personal liabilities

In a sole proprietorship, any debts the company incurs are:

U.S. Small Business Administration

In the context of funding options for small businesses, the _____ assists entrepreneurs by partially guaranteeing loans from local commercial lenders.

growth hacking

In the context of protecting your start-up, _____ means using metrics, creative strategies, and state-of-the-art technology to accelerate the advancement of your brand, service, or product far beyond the norm.

the gross domestic product of a country.

Macroeconomics involves the study of:

having lower overhead cost

Olivia runs a spa for women. She employs only two helpers and one receptionist. This enables her to focus most of her resources on procuring products required to provide comfort and high-quality services to customers. The opportunity of _____ is highlighted in the given scenario.

The franchise agreement usually requires the franchisee to follow the franchisor's procedures to the letter.

Which of the following is a disadvantage of franchising?

Both their earnings are untouched by the Internal Revenue Service.

Which of the following is a similarity between a sole proprietorship and a partnership?

It requires the franchisee to pay an initial fee.

Which of the following statements is true of a typical franchise agreement?

Getting financing and credit is less challenging than when starting a business from scratch.

Which of the following statements is true of buying an established business?

They view the world in shades of gray

Which of the following statements is true of entrepreneurs who are tolerant of uncertainty?

The rate of necessity entrepreneurship is low

Which of the following statements is true of necessity entrepreneurship in high-income countries?

They feel buffeted by the actions of others

Which of the following statements is true of people with an external locus of control?

They do not have to be individuals.

Which of the following statements is true of stockholders of corporations?

Corporation

A _____ is a form of business ownership in which the business is considered a legal entity that is separate and distinct from its owners.

limited partnership

A _____ is a partnership arrangement that includes at least one general partner and at least one limited partner.

Distributorship

A _____ is a type of franchising arrangement in which the franchisor makes a product and licenses the franchisee to sell it.

drive higher quality and lower prices

A capitalist system depends on fair competition among businesses to:

owners are not personally responsible for the obligations of the company.

A corporation is a separate entity from its owners where the:

face-to-face meeting

As a communication channel, _____ has the highest level of channel richness and is used when the message to be communicated is personal, emotional, or high-priority

_____ are also sometimes called activity ratios.

Asset management ratios

In the context of balance sheets, resources owned by a firm are known as _____.

Assets

A _____ can help a firm evaluate how much internal financing (funds generated by earnings) will be available for a planning period.

Budgeted Income Statement

The _____ of a firm combines the revenue projections from the firm's sales budget and the cost projections from the firm's other operating budgets to present a forecast of expected net income.

Budgeted Income Statement

_____ is a management tool that explicitly shows how a firm will acquire and use the resources needed to achieve its goals over a specific time period.

Budgeting

_____ are safe and highly liquid assets that many firms list with their cash holdings on their balance sheet.

Cash Equivalents

Which of the following is a difference between common stockholders and preferred stockholders?

Common stockholders are assured a greater capital gain than preferred stockholders when a company experiences strong earnings.

A firm's _____ include cash and other assets expected to be converted into cash in the following year.

Current Assets

In the context of balance sheets, accounts receivable is an example of _____.

Current Assets

the active encouragement of entrepreneurship by the government.

Despite having a small population and severely limited natural resources, Hong Kong has consistently ranked among the richest regions in Asia. The prime reason behind this is:

most budding entrepreneurs still plan to launch their firms in the next three years.

Despite the U.S. economic crisis of 2008, research suggests that:

In the context of managerial accounting, _____ are costs that are incurred as the result of some specific cost object

Direct Cost

_____ indicate the cash a firm spends, or other assets it uses up, to carry out the business activities necessary to generate its revenue.

Expenses

A(n) _____ makes a profit by purchasing the receivables of a firm at a discount and collecting the full amount from the firm's customers.

Factor

A _____ is one that is not based on a single assumed level of sales and enables managers to make meaningful comparisons between actual costs and budgeted costs.

Flexible Budget

Financial capital refers to the:

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

_____ perform a variety of accounting functions for local, state, or federal agencies, such as the Internal Revenue Service (IRS) and the Federal Deposit Insurance Corporation (FDIC).

Government accountants

expansion

In a business cycle, the _____ is a period of robust economic growth and high employment.

Relationship Era

In the _____, leading-edge firms look beyond each immediate transaction with a customer and aim to build long-term ties.

Technological Environment

In the context of a business environment, computers, telecommunications, and other digital tools are considered to be part of the _____.

an ethical lapse

In the context of business ethics, _____ involves clear misconduct, unlike an ethical dilemma that involves a conflict of values.

The migration of jobs from the United States relates closely to the global movement toward free trade. Free trade is an international economic and political movement designed to help goods and services flow more freely across international boundaries.

In the context of the global environment of business, the migration of jobs from the United States relates closely to the global movement toward _____, which is an international economic and political movement designed to help goods and services flow more easily across international boundaries.

Production Era

In the context of the history of American business, during the _____, jobs became more specialized, increasing productivity and lowering costs and prices.

Industrial titans exploited workers and decimated the environment.

In the context of the history of American business, which of the following statements is true of the entrepreneurship era?

The assembly line became standard across major manufacturing industries.

In the context of the history of American business, which of the following statements is true of the production era

Individuals have the right to will property to family members

In the context of the right to private property, identify a true statement about capitalist economy.

Firms encourage a great level of mutual respect between employees and employers through open communication

In the context of the social environment of business, which of the following statements is true of workers?

many baby boomers opt to postpone retirement in the face of inadequate financial resources.

In the context of the workforce advantage in the business environment, finding and holding the best talent will likely become a crucial competitive issue in the next decade as the baby boom generation begins to retire. However, job market contraction may not be an issue, because:

A(n) _____ is the first time a company issues stock that may be bought by the general public.

Initial Public Offering

Betty's job entails detecting problems such as embezzlement, waste, mismanagement, and employee theft at her organization. In this case, Betty is a(n) _____.

Internal Auditor

The _____ is an asset management ratio that measures how quickly a firm sells its stock to generate revenue.

Inventory Turnover Ratio

_____ are ratios that measure the extent to which a firm relies on debt financing in its capital structure.

Leverage Ratios

In finance, a _____ is one that can be quickly converted into cash with little risk of loss.

Liquid Asset

_____ provide analysis and prepare reports and financial statements for their organization.

Management accountants

account for more paid workers than the entire construction industry

Nonprofit organizations

As a current asset, firms use cash for _____.

Paying dividends

A(n) _____ is a type of stock that gives its holder priority over common stockholders in terms of dividends and claims on assets.

Preferred Stock

_____ are ratios that measure the rate of return a firm is earning on various measures of investment.

Profitability Ratios

Under the terms of _____, a firm will pay interest on any funds it borrows, and a commitment fee on any funds it does not borrow.

Revolving Credit Agreement

Congress passed the _____ that banned business relationships that might create conflicts of interest between certified public accounting (CPA) firms and the companies they audit.

Sarbanes-Oxley Act of 2002

The _____ of a company is a simple statement that shows how the accumulated revenues that have been reinvested in the company have changed from one accounting period to the next.

Statement of Retained Earnings

Buying government securities

The Fed directly stimulates spending by:

American Recovery and Reinvestment Act

The _____ was an $825 billion economic stimulus package, passed by Congress, designed to turn the economy by cutting taxes, building infrastructure, and investing in green energy.

If an auditor doesn't find any problems with the way a firm's financial statements were prepared and presented, the report will offer a(n) _____ opinion.

Unqualified

bulleted list

When writing high-impact messages, a _____ is an invaluable tool that you can use to engage your reader's attention whenever you have more than one of anything in your writing (e.g., next steps, similar sections, questions).

They risk their time, money, and other resources to start and manage their business.

Which of the following is a characteristic of entrepreneurs?

Inflation is a period of rising average prices across the economy, whereas deflation is a period of falling average prices across the economy.

Which of the following is a difference between inflation and deflation?

A manager who does not lead by example is a poor manager

Which of the following statements avoids gender bias?

The speaker should seek and understand feedback from the speaker's audience.

Which of the following statements is true of effective business communication?

nonverbal communication

_____ is a form of communication that does not involve the use of words.

Monopoly

_____ is a market structure with just a single producer completely dominating the industry.

A carve-out

_____ is a type of divestiture in which a firm converts a particular unit or division into a separate company and issues stock in the newly created corporation to outside investors.

dynamic delivery

_____ is a vibrant, compelling presentation style that grabs and holds the attention of the audience.

A famous musician sells the copyright of one of his songs to a record company for $2 million. In this scenario, the sale of the copyright of the song exemplifies the sale of a(n) _____.

intangible asset

Consumerism

is a widely accepted social movement that supports a buyer's right to be informed, to be safe, to choose, and to be heard.

In the context of financial accounting, if a firm wants to introduce any significant changes in how it prepares its financial statements, _____.

it must first clearly identify and describe these changes as per the generally accepted accounting principles (GAAP)

Colin, the manager of the production department in an apparel manufacturing company, is accused of budgetary slack by a senior manager in his company. Colin is accused of budgetary slack because he:

overstated the needs of his department in the budget.

Fred, a financial accountant at a multinational company, is asked by his supervisor to find out the exact income the company earns from the sale of its products over the next five weeks. To do this, for the next five weeks, Fred matches the revenue earned from the sale of the company's products and matches the expenses incurred by the company to the revenue they help produce. In this scenario, which of the following has Fred used to get the required information?

Accrual-basis accounting

An ethical dilemma

In the context of business ethics, _____ refers to a decision that involves a conflict of values.

noise

In the context of challenges to effective communication, the term _____ refers to any interference that causes the message you send to be different from the message your audience understands.

physical barriers

In the context of communication barriers, _____ can range from a document that looks like a wall of type to a room that's freezing cold.

It does not include money

In the context of factors of production, which of the following statements is true of capital?

Investing in public assets, such as a national renewable energy grid

In the context of fiscal policy, which of the following actions by the government helps boost the economy in the long term?

corruption

In the context of globalization, one of the most challenging issues faced by companies and individuals that are involved in international business is _____

It is part owner in a number of financial institutions.

In the context of mixed economies, which of the following statements is true of the U.S. federal government?

there will be more loans available

In the context of monetary policy, if the Fed decreases the reserve requirement, _____.

buys government securities on the open market.

In the context of monetary policy, when the economy is weak, the Fed:

Stakeholders

In the context of social responsibility, _____ include employees and investors who have a personal interest in the performance and actions of an organization.

Technological Environment

In the context of the business environment, the creation of the World Wide Web is considered a component of the _____.

speed-to-market

In the context of the competitive environment of business, which of the following can be a key source of competitive advantage?

ethical lapse

In the context of the economic environment of business, which of the following will most likely increase the cost of doing business for everyone involved?

satisfied customers can promote their business with more speed than promotional campaigns.

In the context of the relationship era, leading-edge firms believe that:

_____ helps financial managers determine the amount of additional financing a firm must arrange to acquire the assets needed to implement its future plans.

The Budgeted Balance Sheet