BUS 110 Exam 2
The North American Free Trade Agreement (NAFTA) created a free-trade area among the US, __________, and __________.
Canada; Mexico
Buying products from another country is the definition of __________.
Importing
A sole proprietorship has limited life span unless: (all that apply) a. it is taken over by an heir b. it is sold to someone else c. one of the partners buys remaining shares d. there is a leveraged buyout
a, b
Identify some of the factors used to divide the market in psychographic segmentation. (all that apply) a. interests b. attitudes c. age d. usage e. education
a, b
Which of the following are considered examples of demographic segmentation? (all that apply) a. by education b. by age c. by state d. by income
a, b, d
Choose the secondary sources of data collection from the list. (all that apply) a. magazines b. mail intercept surveys c. government publications d. telephone surveys
a, c
The advantages of becoming a conventional corporation include a. double taxation b. access to more capital c. privacy of records d. unlimited liabilty
b
What international standard focuses on quality management assurance? a. ISO8000 B. ISO 9000 C. ISO 1400 D. ISO 10000
b
What strategy focuses on a company deciding where to locate its operations? a. facility layout b. facility location c. just-in-time inventory d. materials requirement planning
b
Lean manufacturing uses: (all that apply) a. more time b. less time c. less resources d. more resources
b, c
The definition of __________ __________ states: a limit on the number of products in certain categories that a nation can import a. tariff barriers b. revenue tariffs c. import quotas d. trade protectionism
c
The disadvantage of sole proprietorships is that any debts or losses incurred by the business are your debts because you and the business are legally one and you have: a. legal protection from debt b. no responsibility for the debts c. unlimited liability d. limited liability
c
A __________ __________ (also called a trading bloc) is a regional group of countries with a common external tariff, no internal tariffs, and coordinated laws to facilitate exchange among members.
common market
A(n) __________ is a chartered legal entity with authority to act and have liability separate from its owners.
corporation
The main idea behind mass production is to produce a large number of a limited variety of products at a very low __________.
cost
A state-chartered legal entity with authority to act and have liability separate from its owners is a: a. stakeholder b. general partnership c. sole proprietorship d. corporation
d
Choose the answer that refers to a production process that puts components together. a. process b. intermittent c. continuous d. assembly
d
The definition of __________ states: the difference between money coming into a country (from exports) and money leaving the country (from imports) plus money flows coming into or leaving a country from other factors such as tourism, foreign aid, military expenditures, and foreign investment. a. balance of trade b. trade surplus c. trade deficit d. balance of payments
d
To use the government regulations to limit the import of goods and services is called: a. trade regulation b. balance of trade c. free trade d. trade protectionism
d
What international standard focuses on managing a company's impact on the environment? a. ISO 10000 b. ISO 12000 c. ISO 9000 d. ISO 14000
d
What is the global strategy in which a firm allows a foreign company to produce its products in exchange for a fee? a. exporting b. contract manufacturing c. franchising d. licensing
d
Arrangement of resources, including people, to most efficiently produce goods and services is referred to as __________ __________.
facility layout
Ed has decided to purchase and follow a business format by becoming a franchisee. The __________ __________ he will sign gives him the right to use the business name and sell the products of the firm.
franchise agreement
If you are your own boss, you are responsible for paying your own wages/salary and for your own __________ __________.
fringe benefits
When you need more in-depth information, marketers must develop their own research and obtain __________ data.
primary
A company situated in a foreign country that is owned by a parent company located in a different country, is a foreign __________.
subsidiary
__________ is defined as the set of values, beliefs, rules, and institutions held by a specific group of people.
Culture
__________ lowers the value of a nation's currency relative to others.
Devaluation
What is meant by dumping in global trade?
Dumping is the selling of products in foreign countries at lower prices than those charged in the producing country. This tactic is sometimes used to reduce surplus products in foreign markets or gain a foothold in a new market.
A unique government creation that looks like a corporation but is taxed like a sole proprietorship or partnership is called a(n) __________ corporation.
S
A merger that joins firms in completely unrelated industries is a: a. conglomerate merger b. vertical merger c. negative merger d. horizontal merger
a
Importing involves buying products from other countries while exporting involves: a. selling products to other countries b. selling domestic products in this country c. buying foreign products d. selling merchandise produced overseas
a
Information that has already been complied by others and published in journals, books, or online is called: a. secondary data b. product data c. research data d. primary data
a
The Foreign Corrupt Practices Act of 1978 prohibits __________ payments to foreign officials to secure business contracts. (all that apply) a. questionable b. installment c. legal d. dubious
a, d
Age, education level, income, and taste are all examples of how customer groups: a. follow trends b. differ greatly c. are unpredictable d. are the same
b
If you start and management a landscaping business on your own, you have likely started a: a. corporation b. sole proprietorship c. franchise d. partnership
b
The __________-to-__________ market includes manufacturers, intermediaries, hospitals, schools, charities, and the government.
business, business
For a firm to be considered a multinational corporation, it must have a(n) a. active involvement in importing products to other nations b. physical presence in one other nation c. physical presence in several different nations d. physical presence in their own nation
c
Sociocultural, competitive, economic, global, and technological influences are all factors influencing: a. customer preferences b. market segmentation c. the marketing environment d. market research
c
State governments will use marketing in order to: a. reduce the state tax rate b. promote nonprofit businesses c. attract new business and tourism d. raise tax revenue
c
Studies have indicated that partnerships are four times more likely to succeed than: a. S-corporations b. MLP's c. sole proprietorships d. LLC's
c
The selling of products in a foreign country at lower prices than those charged in the producing country is called: a. foreign aid b. free trade c. dumping d. trade deficit
c
What is the function of revenue tariffs? a. to raise the retail price of imported products so that domestic goods are competitively priced b. to limit imports of goods and services c. to raise money for the government d. to prevent dumping
c
Whereas consumer promotions are used more on advertising, B2B sales are based on: a. reputation b. technology c. word-of-mouth d. personal selling
d
One-to-one marketing focuses on developing a unique mix of goods and services for each __________ customer.
individual
The process exemplified when production runs are short and machines are changed frequently to make different products is __________.
intermittent
In a general partnership, all partners shared the responsibility for operation the business and assume __________ for the business's debts.
liability
The responsibility for a loss only up to the amount invested is __________ liability.
limited
When two firms join together to form one new company, it is called a(n) __________.
merger
The various responsibilities of each partner, especially any issues involving __________, should be agreed to in discussions and put in writing before agreeing to a partnership.
money
A manager responsible for producing products, and delivering them on time, on budget, and to specifications is likely a(n) __________ manager.
operations
__________ is the creation of finished goods and services using land, capital, entrepreneurship, and knowledge.
production
Climate, schools, and crime are all __________ of __________ issues to be considered when locating a business.
quality, life
The process of dividing the total market into groups whose members have similar characteristics is market __________.
segmentation
The focus of the marketing era that makes sure everyone in the organization has the same objective- customer satisfaction- is the __________ orientation.
service
A businesses owned, and usually managed, by one person is called a: a. sole proprietorship b. partnership c. corporation
sole proprietorship
A(n) __________ __________ is a long-term partnership between two or more companies est. to help each company build competitive market advantages, although they do not share costs, profits, or management.
strategic alliance
When two firms operating in different stages of related businesses join, it is called a(n) __________ merger.
vertical
The activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large is called __________.
Marketing
The basic premise of just-in-time inventory is: a. minimum inventory is kept on hand b. large volumes of inventory are available c. many workers manage many items d. obsolescence is accepted
a
Which of the following is an advantage related to conducting quality control throughout production instead of at the end of the production line? a. finding defects prior to completion saves expensive resources b. reduced customer satisfaction if a defective product is missed c. scrapping the entire product is less costly d. more employees are required to inspect items
a
Which term describes the act of buying of all materials needed by organization? a. purchasing b. quality control c. MRP d. selling
a
In what way will globalization impact US businesses? (all that apply) a. incr competition b. loss of jobs in manufacturing c. dear competition within the US d. Loss of political independence
a, b
The consumer market is made up of (all that apply): a. individuals b. households c. organizations d. agencies
a, b
Which of the following are disadvantages of international joint ventures? (all that apply) a. the joint venture may become too large and inflexible b. shared technology may become obsolete c. shared marketing expertise d. access to markets where goods and services must be produced locally
a, b
Why are B2B sales based on selling? (all that apply) a. customers demand personal service for larger investments b. large purchases cost more and are complex c. few of these customers like advertising d. more of these customers like advertising
a, b
Which is a benefit of telecommuting? (all that apply) a. employees are in touch with company and customers right from home b. less dependence on location near sources of labor c. increased face to face contact between workers d. firms may choose less expensive locations
a, b ,d
Business buyers use which of the following to make decisions? (all that apply) a. rational processes b. product specifications c. total product offer d. emotion
a, b, c
Select the disadvantages of a sole proprietorship: (all that apply) a. unlimited liability b. large time commitment c. limited financial resources d. unlimited growth
a, b, c
What does the production process add to materials? (all that apply) a. value b. place utility c. form utility d. time utility
a, c
Which of the following are important reasons to do business globally? (all that apply) a. US consumers seek the best value whether in the US or other countries b. competition in the US is decr c. there are many potential customers in other countries d. the US economy cannot support a business for very long
a, c
Which of the following are likely benefits of exporting? (all that apply) a. Incr # of potential customers b. Loss of jobs in home country c. incr sales and revenue d. incr competition
a, c
Because of the poor publicity at a fellow franchise location, you notice that sales at your location have decreased. The impact of the poor publicity on your company is referred to as: a. reinforcement of the franchise agreement b. the coattail effect c. unlimited liability d. changes to the franchise agreement
b
Colleges are now using pod casts, virtual tours, live chats, and other interactive technologies to make on-campus visits less necessary. This is an example of a trend in marketing that helps: a. sellers buy b. purchasers buy c. technology grow d. purchasers sell
b
In order to be a quality organization, a firm must: a. confine quality measures to manufacturing b. consistently produce what the customer wants c. do only endpoint inspection d. view quality as one step in production
b
Telephone surveys, online surveys, mail surveys, and personal interviews are the most common form of gathering: a. product data b. primary data c. market data d. secondary data
b
The US has had a trade deficit since 1975 because: a. it sold more goods to other nations than it bought b. it bought more goods from other nations than it has sold c. it manufactured more goods than other nations manufactured d. it had bigger budget deficits than other nations had
b
The costs of producing, distributing and promoting the product will all influence the product's: a. brand name b. price c. concept d. image
b
When two or more people legally agree to become co-owners of a business, the organization is called a: a. sole proprietorship b. partnership c. corporation
b
Among the advantages of farm cooperatives for their members is that they: (all that apply) a. require all to agree to changes b. increase economic power c. pay higher taxes, but not for individuals d. do not pay taxes as corporations do
b, c
An embargo: (all that apply) a. places a tax on certain imports b. bans all trade of a certain product c. bans all trade with a particular country d. limits the quantity of an import
b, c
In order to protect the brand name and image, the franchisor has tight management __________. (all that apply) a. profit levels b. standards c. controls d. ethics in the contracts
b, c
Marketers in the US have changed their products to meet the tastes and preferences of which of the following groups which have increased in size? (all that apply) a. women b. asians c. hispanics d. men
b, c
Which of the following are functions of export assistance centers (EACs)? (all that apply) a. scheduling assistance b. hands-on exporting assistance c. trade-finance support d. packaging assistance
b, c
A product includes anything that would enhance it in the eyes of consumers, such as the (all that apply): a. profit margin b. package c. warranty d. brand
b, c, d
Among the reason that disagreements can ruin a partnership are: (all that apply) a. the ability to borrow more money b. opposing management styles c. arguing over profits d. disagreement over workload
b, c, d
Companies conduct market research on (all that apply): a. obsolete products b. ecological impact of decisions c. business trends d. global trends
b, c, d
Developing countries are providing new markets for companies that can provide them with needed: (all that apply) a. managers b. goods c. technology d. services
b, c, d
Ending a partnership can be difficult because of problems deciding: (all that apply) a. whether to pay the taxes b. how to distribute assets c. when a partner can retire d. the worth of a retiring partner's share
b, c, d
LLCs do have to submit articles of organization and an operating agreement, but do not have to: (all that apply) a. pay self-employment taxes b. hold annual meetings c. keep minutes d. file written resolutions
b, c, d
Which of these steps are used in PERT? (all that apply) a. create a bar graph b. analyzing and sequencing tasks c. identify supplies needed d. estimating time for tasks
b, d
A legal entity with authority to act and have liability apart from its owners is a: a. sole proprietorship b. partnership c. corporation
c
Advertising, personal selling, public relations, publicity, and word of mouth are considered to be part of: a. pricing b. place c. promotion d. product
c
What is the primary function of protective tariffs? a. to limit the number of products in a certain category that a nation can import b. to ban the import of certain goods and services c. to raise the price of imported products so that domestic goods are more competitively priced
c
When a business selects groups or segments that they can serve most profitably, this is called: a. markting research b. market segmentation c. target marketing d. positioning
c
When there is one or more general partners and one or more limited partners, the firm is a(n): a. general partnership b. unlimited partnership c. limited partnership d. master limited partnership
c
Which of these are characteristics of a lean company? (all that apply) a. they require 50% more engineering effort b. they use more human effort c. they carry less inventory d. they use half the floor space
c, d
A(n) __________ is an attempt by employees, management, or a group of investors to purchase an organization primarily through borrowing. a. acquisition b. horizontal merger c. merger d. leveraged buyout
d
An assembly line or product layout is used in production when: a. changes in design or customer demand are frequent b. the final product is not moveable c. operations serve different customers with differing needs d. producing large quantities of a few types of products
d
Some managers choose to monitor all phases of the production process to ensure quality is built in from the beginning. These managers are using: a. national standards b. the Deming standard c. just-in-time inventory d. statistical quality control
d
Many consumers are concerned about the impact of their purchasing activities on their ecological surroundings, so companies conduct research on the __________ effects of their decisions.
environmental
People over 65 have become one of the __________ growing segments of the US population.
fastest
Using machines designed to do multiple tasks in order to produce a variety of products is called __________ __________.
flexible manufacturing
Contract manufacturing is a type of outsourcing when a __________ company produces private-label goods which a __________ company then markets under its own brand name.
foreign; domestic
The value producers add to materials in the creation of goods and services is the definition of what utility? __________
form utility
The definition of __________ states: a contractual agreement whereby someone with a good idea for a business sells other the rights to use a business name and sell a product or service in a given territory in a specified manner.
franchising
Companies such as United Parcel Service and Walmart have experienced much success by expanding into the __________ market.
global
The joining of two firms in the same industry is a(n) __________ merger.
horizontal
Bob and Dan are doctors in a medical practice. Dan is being sued for malpractice, but it will not affect Bob's assets because they formed a(n) __________ __________ partnership.
limited liability
The birth of information technology such as texting and email is giving firms and employees increased flexibility to choose __________ while staying competitive.
locations
Catering to a large number of individuals through product design that meets specific customer needs is the goal of __________ __________.
mass customization
Tailoring products to meet the needs of individual customers is called __________ __________.
mass customization
Converting and transforming resources into goods and services in business is referred to as __________ __________.
operations management
Moving products quickly and at the lowest possible cost to customers in order to maintain competitive is known as __________-__________-__________.
time-to-market
Customer orientation is finding out what the consumers __________ and providing it for them.
want