BUS100 Final Exam

If fixed costs are $100,000, variable cost per unit is $40, and the selling price is $60, how many units must be sold for the firm to break even?

5,000

Which product would be considered part of the business-to-business market?

A computer for the instructor to use while teaching the class

Which would be considered a current asset?

Accounts receivable

A person looking to invest in a company would want information about the company, its financial position, progress, and company expectations for the future. This information can be found in

An annual report

Which circumstance is most likely to reduce one's standard of living?

An increase in the cost of some goods such as escalating gasoline prices

There has been a huge loss of U.S. farmworkers over the past century, mostly due to

An increase in the productivity of modern farming techniques

When an airline decides to buy new planes and is deciding which company to buy from, it doesn't have a lot of options to choose from. This demonstrates ________.

An oligopoly

According to Maslow's theory, when a need is satisfied,

Another, higher-level need emerges and motivates a person to satisfy that need.

Many companies are moving from a(n) __________, in which workers do only a few tasks at a time, to a(n) __________, in which teams of workers combine to produce more complex units of the final product.

Assembly-line layout; modular layout

The difference between money coming into a country from exports and money leaving a country due to imports, plus money flows from other factors, is known as the

Balance of payments.

Employment tests must

Be directly related to performance on the job.

Which statement reflects the difficulty companies face when requiring international suppliers to follow environmental and human rights standards set by U.S. firms?

Both economics and culture enter into the discussion of fairness concerning international suppliers who do business with U.S. firms.

Jaclyn recently started working at a major accounting firm. One of the first things her supervisor provided her with was a large white notebook that contained rules and regulations on just about every aspect of the firm's business. As a recent business graduate, Jaclyn realized that the accounting firm operated in a(n) __________ environment.

Bureaucratic

A detailed written statement that describes the nature of the business, the target market, the advantages the business will have over the competition, and the resources and qualifications of the owner(s) is called a

Business plan

Jasper is interested in making a lot of money. He is a very good salesperson. People tell him he could sell sand in the Sahara Desert! He is also a very hard worker and is willing to work a lot of hours to make the kind of money he wants. Jasper should most likely look for the kind of job that is paid

By commission.

Organizations known as __________ are often a source of funding for lower-income communities. These organizations have a significant role in the economic recovery, and some start-up businesses have successfully found sources of capital by going through one of these organizations.

CDFIs (Community Development Financial Institutions)

Today, many people have found that bartering

Can be done somewhat easily online.

A manufacturing firm located in the southeastern United States has decided to build a second facility to handle the increased volume of product needed. This would be considered a(n) __________ expenditure.

Capital

__________ is the world's largest exporter.

China

When your profitable franchise fails simply because other similar franchisees have failed, this is known as the

Coattail effect.

A manufacturing company is meeting with union representatives to negotiate a contract for workers. This process is called

Collective bargaining.

________ economies exist when the government controls what goods and services will be produced and how the economy will grow, while ________ economies exist when the market largely determines what goods and services get produced and how the economy grows.

Command; free-market

For a U.S. or non-European company to export manufactured goods to European countries, which of the following would most likely apply?

Companies that want to do business with the EU must be certified by ISO standards.

Partnerships refer to more than one owner. A limited partnership

Consists of general partners and limited partners, at least one of each.

Select the statement that best substantiates why we say, "The role of management is evolving."

Contemporary managers will focus on collaboration and continue to emphasize the team approach to work.

At a local community college, over half of the faculty are part-time employees who have similar credentials as full-time employees but do not have permanent positions. These employees are seldom offered benefits and are not represented by the educators' union. HR experts would designate these professionals as __________ employees.

Contingent

Randy works in an auto plant in which parts constantly travel along a conveyor belt and each worker performs his/her specific job. This describes a(n)

Continuous process

__________ is a cost-effective way that many companies outsource the production of goods, such as clothing, shoes, and cell phones. The domestic firm contracts with a foreign company to produce and private-label the goods because the price is much cheaper than the domestic firm could produce in its home market

Contract manufacturing

Measuring performance relative to planned objectives and standards is part of

Controlling

Websites can send __________ to your computer that stay on your hard drive and can track your web movements.

Cookies

In a __________, members democratically control the business by electing a board of directors that hires professional management to run the business.

Cooperative

Master Metalworks, Inc., knows that its stockholders expect a return on their investment. The expected return that stockholders anticipate translates into the company's __________. Essentially, this is the amount that the investment funds are costing the firm.

Cost of capital

Groups of employees from different departments who work together on a long-term basis and are empowered to make decisions without management approval are

Cross-functional self-managed teams.

A focus on long-term customer loyalty is an essential element of

Customer relationship management.

In the 1970s, information technology was primarily concerned with __________, while today business intelligence or analytics is the focus.

Data processing

What is the first step in the marketing research process?

Defining the problem

With regard to socially responsible behavior, American businesses are

Demanding socially responsible behavior from international suppliers, particularly in the areas of environmental standards and human rights issues.

The process of setting up individual departments to do specialized tasks is called

Departmentalization.

Marketing strategies for the business-to-business (B2B) market

Differ from consumer marketing strategies because the nature of the buyers is different.

The product life cycle impacts marketing strategies in which way?

Different stages in the product life cycle call for different marketing strategies.

If you were working as a bookkeeper, the first action you would take is to

Divide transactions into meaningful categories.

Leon is a retail store employee. He is responsible for ensuring that the inventory requested from the manufacturer arrives as ordered. His boss recently gave him the additional responsibility of ticketing the merchandise with the appropriate price tag. This is an example of job

Enlargement

Recently Kaden switched jobs from a large firm to a medium-sized firm. As one of four project managers at the new firm, Kaden recognizes that employees have much more respect for his expertise than he perceived at the larger firm where there were a minimum of 25 project managers. According to Maslow, which need in his hierarchy is important to Kaden?

Esteem

An Arizona State University student spends his summer months in his hometown. He attends the local community college, where he takes summer courses that he knows will transfer back to ASU. Although he finds the courses just as challenging as at his regular university, he does not worry about his summer grades affecting his 3.2 (out of 4.0) grade point average, because ASU accepts only the transfer credits. As long as he receives C grades or better, he maintains his current grade point average. Which theory suggests that the student will work only as hard as necessary to earn a C grade?

Expectancy theory

Short-term forecasts are based on

Expected sales revenues and expenses for the coming year.

Capital

Factor of production that includes the machines, buildings, and tools used in the production of gooda

The bank failures that were occurring in the 1930s due to the effects of the Great Depression led to the creation of

Federal deposit insurance.

The primary concerns when first starting your business are

Financing and planning.

Kishan is part of a team that builds and assembles yachts. Because the yachts are so large, the team travels to the site in which they are housed so all workers can congregate around the unit to complete its construction. What facility layout is most appropriate for this type of process?

Fixed-position layout

Felicity is a single parent with a child in elementary school. She loves her schedule because she can go in any time before 10 a.m. that is convenient for her, as long as she is there at the job during the core hours of 10 a.m. to 2 p.m. Felicity enjoys a schedule known as

Flextime.

Avantika works in the finance department for her company and is preparing a budget for the next 12 months. She has been doing research to determine prices for equipment the company will need in the next year to stay competitive in their market. Which step in financial planning is Avantika involved in?

Forecasting short-term financial needs

The law that specifically prohibits "questionable" or "dubious" payments to foreign officials to secure business contracts is called the

Foreign Corrupt Practices Act.

Debt financing refers to

Funds raised through various forms of borrowing.

The goal of the commercial bank is to

Generate more revenue from loans than it pays out in interest to depositors.

In the informal organization, the system through which unofficial information flows between and among managers and employees is the

Grapevine

The idea of facility layout is to

Have offices, machines, and storage areas in the best position to enable workers to produce goods and services for their customers.

Fayol's principle of __________ means that each person should know to whom they report and that managers should have the right to give orders and expect others to follow.

Hierarchy of authority

Government and business leaders are being held to

Higher ethical standards than in the past

Which question is included as one we must ask when faced with an ethical dilemma?

How will it make me feel about myself?

The key components of Web 3.0 technology include artificial intelligence, mobile web, and

Immersive Internet.

Networked organizations are so closely linked online that each can find out what the others are doing instantaneously, as an event takes place. These organizations operate

In real time

Which financial statement shows the firm's bottom line—that is, whether it has made a profit or is operating at a loss?

Income statement

Which control standard is stated most effectively?

Increase sales of our top-end product from 2,000 in the first quarter to 3,000 during the same period by 2021.

In order for information to be meaningful, a firm's accounting processes and procedures should be certified as accurate by acceptable accounting standards. Companies hire __________ to provide unbiased opinions about the accuracy of a firm's financial statements.

Independent auditors

Small businesses often have advantages in international markets. One advantage is

Individualized customer service as opposed to impersonal corporate bureaucracies.

Technology that helps companies do business, such as voice mail systems or automated teller machines, are examples of

Information systems

A few months ago, Grandma's Country Kitchen, a large nationwide chain of restaurants, purchased one of its competitors, A Taste of Home, for $600 million. A Taste of Home stockholders got a very fair deal for the stock they owned in the company. However, it was disclosed that somehow a member of Grandma's management team mentioned the deal to five of his relatives and several friends. They quickly bought shares of A Taste of Home and purchased the stock before the acquisition became public. These actions are

Insider trading.

The first day on the job waiting tables at a popular restaurant, Norah noticed that when one member of the waitstaff was serving a very large party, the other waiters would help carry food to the tables and even check to make sure water glasses were filled. Although these actions were not part of the mandatory waitstaff training, Norah perceived that waitstaff members who were not helping out were not viewed as team players by the majority of employees. Norah was observing an example of the ________ ethics followed at this organization.

Integrity-based

Cooperative monetary policies designed to stabilize currency exchanges among 189 countries are coordinated through which organization?

International Monetary Fund

Technology that enables ordinary objects to be connected to the Internet by using sensors, cameras, software, databases, and massive data centers is called

Internet of things

Wilson Manufacturing relies on an extensive __________ system, where its employees share information between departments. For example, departments such as human resources can share payroll information with employees. Persons outside the firm do not have access to this network.

Intranet

A large commercial cattle farm provides jobs for over 100 employees, who care for over 500 various species of cattle. The operation consists of traditional functional units, which include management, marketing, and finance, and 30 veterinarians that specialize in the various types of cattle owned by the company. Although the firm operates with a CEO, COO, CFO, and a director of marketing, it relies on the veterinarians to make decisions on the appropriate care and environment for the cattle. Sometimes the veterinary decisions override marketing and financial concerns even though the veterinarians operate at a lower level in the organization structure. The commercial farm operates as a(n) __________ organization.

Inverted

Satisfying Stories, an eclectic book store near a large college campus, is a reseller. The operation buys books almost every day. Deliveries are constantly part of the day-to-day operation of the firm. The transportation company that delivers to Satisfying Stories provides this service on trade credit terms of 3/5, net 30. This means the firm

Is offered a 3 percent discount if it pays during the first 5 days. The entire bill is due in 30 days.

The time value of money means that

It is better to have money in your pocket now, than later.

An automotive assembly plant in Kentucky purchases several thousand unassembled parts for automobiles and then performs final assembly of the vehicles before delivering them to dealers all over the nation. Purchasing parts several days or weeks before they are assembled would increase the total cash outlay the plant has tied up in inventory at any given time. In order to reduce the expense of large inventories, most assembly plants have successfully adopted __________ inventory systems.

Just-in-time

When President Obama was elected, the U.S. economy had slid into a recession. Consumer spending was low and getting worse. In an effort to stop the decline, President Obama proposed an economic stimulus package that included government spending on roads, bridges, and schools, among other things, and a tax cut that each U.S. worker would see in her or his paycheck. Apparently, President Obama was a proponent of

Keynesian economic theory.

Once known as "directing," the__________ role of management means creating a vision for the organization and empowering employees to become self-directed and self-motivated

Leading

Blake, an operations manager at a plastics processing plant, notices that there is significant scrap and inefficiencies in the plant's operations. Which technique would he be most interested in implementing if he wanted to increase capacity while decreasing the need for resources?

Lean manufacturing

If the employees of a company successfully borrowed a large sum of money and purchased the firm from its current owners, we would call this event a

Leveraged buyout.

When Mike, Martina, and Maurice lost their jobs during the recent recession, they pooled their resources, borrowed a little more, and bought a couple of houses to renovate. All three were concerned about the risk involved in owning their own business, particularly the risk of losing personal assets. As their advisor, which form of business ownership would you recommend?

Limited liability company

The branch of economics that looks at the operation of a nation's economy as a whole is

Macroeconomics

Companies must have a carefully constructed inventory policy in order to

Manage available funds and maximize profitability.

__________ accounting is used to provide information and analysis to managers within the firm to assist them in decision making.

Managerial

The evolving business environment has made __________ a critical managerial function.

Managing change

The most commonly used pay structure today is a __________ pay structure in which companies research what other firms are paying and decide to pay either the same, more, or less.

Market-based

At one time, companies developed products and promotions to please large groups of people and tried to sell as many products to as many people as possible. This is known as

Mass marketing

When Randall joined his uncle's oil refinery business in Louisiana, he was given several hundred shares of stock in the firm and was officially made a partner. The firm's accountant explained that the company paid taxes the same way as regular partnerships, by passing the profits through to each partner. Randall could purchase more shares of the company on a public stock exchange, as long as someone was willing to sell his/her shares. This firm was likely a special form of ownership called a

Master limited partnership.

About 80% of all wholesalers are __________. They typically are independent companies that take title to goods that they resell to retailers.

Merchant wholesalers

Ford Motor Company is a well-known manufacturer of cars, trucks, and SUVs. Ford dealers also provide financing to their customers. These products and services are part of Ford's product

Mix

The agreement that created free-trade among the United States, Canada, and Mexico is

NAFTA.

Countries participate in foreign trade because

No nation can produce all of the products its people want and need.

Upscale retailers, such as Saks Fifth Avenue, feature customer service as their significant point of difference and use that difference to compete with less expensive stores. This is known as

Nonprice competition.

Advantages of __________ franchising include reduced start-up fees and no territory restrictions.

Online

When the Fed buys and sells U.S. government bonds in an effort to regulate the money supply, it is engaged in

Open-market operations

Anya is a general manager for a large department store. Each day she plans the number of employees she will have in each department, including the number of cashiers. She plans the break schedules and the freight delivery schedules. In the business world, we refer to this as __________ planning.

Operational

__________ is about converting resources into goods and services. It includes inventory management, quality control, production scheduling, follow-up services, and more.

Operations management

The statement of cash flows reports cash receipts and disbursements related to which three major activities of a firm?

Operations, investments, and financing

Marisol started a small business employing several social workers and nurses who visit and care for persons who have left hospital care but are not quite ready to be on their own at home. As the CEO of the firm, Marisol decided it was time to hire a business operations manager and a marketing manager to handle the details of the business. What function of management was Marisol primarily performing?

Organizing

Sergey Brin and Larry Page are the founders of Google. Most would agree that they have a superb product, but in order to grow, the company needed more structure. Together, they agreed to hire Eric Schmidt to join the executive team as the executive chairman. Schmidt quickly began performing the __________ function, where he created well-structured departments and hired skilled people to perform the various functions of the business.

Organizing

The amount of the business that belongs to the owners, minus any liabilities the business owes, is referred to as

Owner's equity

The project manager building a swimming pool and clubhouse at a retirement community is reviewing the chronological sequence of activities that must be completed on the project and the estimated time of completion of each activity. She is employing the

PERT technique.

The placement of Starbucks cafés within Barnes & Noble bookstores has proven to be a successful strategic alliance because both companies benefit from this arrangement. As a global marketing strategy, an important characteristic of a strategic alliance is

Participant companies do not share costs or profits.

Decisions about promotions, compensation, additional training, or firing should all be based on

Performance appraisals.

Bema is a finance manager for Glorious Gardens, a wholesale florist. As finance manager, which of the following would be one of Bema's responsibilities?

Planning for spending funds on long-term assets, such as plant and equipment

What would happen if the government or its representative agency were to take money out of the economy?

Prices would decrease on goods and services.

Two high schools in the city, where Jake and Rolando plan to open their endurance training facility, agreed to allow them to distribute an e-mail survey to their athletic teams' coaches. In order to capture this opportunity, Rolando quickly put together a set of 15 questions that inquire about the type of skills (running, jumping, fielding, etc.) that high school coaches want to develop in their athletes. The survey and subsequent information this research would glean is called _________ data.

Primary

In the latest installment of an action-series movie, the hero of the film drives a Ferrari Portofino convertible. Marketers would categorize this form of advertising as

Product placement.

A car company makes four models—a hybrid sport utility, a sports car, a four-door sedan, and a compact car. Employees at the company work on only one type of vehicle, and separate marketing and product development processes are designed for each type of vehicle to better serve customers for each type of vehicle. This company is departmentalized by

Product.

The term used to describe all the activities managers do to help their firms create finished goods and services is __________ management.

Production

Title VII of the Civil Rights Act

Prohibits discrimination in hiring, firing, and other areas on the basis of race, religion, creed, sex, or national origin.

According to Herzberg, workers felt that good pay and job security

Provided a sense of satisfaction with the job but did not motivate them.

Will Hopkins is an accountant who works for a number of businesses as a consultant. He has helped to design an accounting system, provides accounting services, and has analyzed the financial strength of many of his clients. Will is working as a

Public accountant

If a __________ strategy is effective, consumers will go to a store and ask for products that they have seen advertised

Pull

Besides the shift of jobs to foreign countries, outsourcing has other drawbacks, such as

Questionable safety and quality issues with finished products.

Two of the characteristics of useful information are

Relevance and quality

According to Herzberg, which of the following is a hygiene factor?

Salary

When Addie went to the grocery store last week, she took with her several coupons she had received in the mail that week. While at the store, Addie was offered samples of several food items and she actually bought a few of those, using the in-store coupons. She also bought a particular brand of toothpaste because the tube came with a free toothbrush. Addie is taking advantage of

Sales promotion.

Funds in savings and loan institutions are protected by

Savings Association Insurance Fund (SAIF).

Exploring __________ data first helps marketers minimize marketing research costs.

Secondary

Entrepreneurs emphasize the importance of believing in your own ideas because in the process of developing those ideas you are likely to hear from skeptics. Characteristically, they also know that success or failure is "on them." These attributes are described as

Self-directed and self-nurturing.

During the __________ era, the prevalent business philosophy turned from an emphasis on production to an emphasis on advertising and selling.

Selling

According to Herzberg, which of the following would be considered "motivators"?

Sense of achievement and opportunity for growth

Which activity would be considered when discussing the marketing mix variables?

Setting a price for the product

In what way is small-business management and large-business management similar in practice?

Similar to large businesses, small business have concerns about obtaining capital and good marketing and management practices.

Besides environmental groups, unions, and investors, a relatively new type of watchdog organization that reports on corporate social responsibility efforts is

Socially conscious research organizations.

Within the planning function, a SWOT analysis identifies, in part, a firm's

Strengths and weaknesses.

The ________ curve indicates the relationship between the price of a good and the quantity supplied.

Supply

The primary role of business technology during the 1970s was to

Support existing business by improving the flow of financial information.

Division of labor means

Tasks are divided into areas of specialization among a group of employees.

Which are characteristics typical of a C corporation?

Taxed separately from its owners who also enjoy limited liability

At the boutique where Natalia works, all customers are greeted with the same script: "Welcome to Elegant Creations. My name is __________. How may I help you?" The manager insists that all customers must be greeted in less than two minutes after they have entered the shop and then shown where the newest merchandise is located.. Which management theorist would have approved of this method of operation?

Taylor

Walt is a supervisor in a small automotive shop. He spends a lot of his time training some workers while helping others solve some of the problems they have in doing their jobs. He also runs the diagnostic machine. Walt spends time on __________ skills.

Technical

A characteristic of business-to-business (B2B) customers is that they

Tend to be more rational in their decision making than individual consumers.

Which agency is charged with enforcing affirmative action programs?

The EEOC

Recently, two nations experienced a trade dispute over copyright issues. Country "A" accused Country "B" of violating international copyright laws. Since both were members of __________, they appealed to this organization to mediate the dispute.

The WTO (World Trade Organization)

A small business advantage is

The ability to quickly adapt to customer needs.

Ethics are the standards of right and wrong set for us by society, whereas legality refers to

The collection of laws to protect society from fraud, theft, and violence

The accounting cycle is a six-step process that results in

The compilation of financial statements and their analysis.

Although the business plan has a great amount of detail and requires thoroughness, a well-explained business idea will come to life almost immediately in which part of this document?

The executive summary

Imagine the following: New sources of energy have become marketable and the industries involved have hired thousands to operate the emergence of new businesses. Due to increasing salaries in several other industries that partner with energy companies, the demand for everything from food to entertainment to travel has increased. High demand has brought about shortages in some product categories. To help manage the situation in the short term

The fed will likely increase interest rates

There are many reasons why small-business owners don't go international. What is not one of those reasons?

The market doesn't have great potential.

Antwone is considering buying new bedroom furniture. Naturally, he compares several manufacturers of beds, dressers, and bedside tables, but he also evaluates each company's reputation, warranty, his own experience with the brand, and of course, the price. All of the components that Antwone is evaluating make up

The total product offer.

Business intelligence (BI) is defined as

The use of software applications to analyze an organization's raw data and derive useful insights from it.

Lauren is the assistant store manager at a trendy clothing store. The store hires lots of seasonal employees. Lauren has little regard for the skill or ability of those she hires, and she is certain that few would come to work on time each day if it weren't for the fact that the store is known to fire any employee who fails to be on time. As a student of motivational theory, you would describe the management style of Lauren as

Theory X.

At Newton Manufacturing, workers are encouraged to find their own solutions to problems and to implement their solutions when practical. They work with little supervision because management feels they are committed and creative workers. Newton's policy reflects a __________ attitude about workers.

Theory Y

A brother and sister team, Camilla and Arturo, took over the family's Mexican restaurant business when their father died. Camilla operated one of the three locations, kept the firm's books, and ordered supplies and equipment for all three locations. Arturo operated the other two restaurants. Arturo thought he should get two-thirds of the company profits because he was responsible for the profitability on two out of three locations. Camilla saw it differently because she felt her responsibilities spanned the entire business. What's important for them to remember in their situation is

They both shared unlimited liability, and if one or the other failed to meet his/her financial commitment, the other partner would also be liable for all debts.

U.S. businesspeople are often accused of ethnocentricity. This means that

They feel their culture is superior to others.

An increase in the discount rate would have the effect of

Tightening of the money supply.

Tim was employed as a field technician servicing large HVAC systems but because of a downturn in the economy, he was laid off from his job. After unsuccessfully trying to secure another field tech position, Tim finally took a job as a stock employee at Home Depot. Which statement best describes Tim's situation?

Tim is underemployed

The technical name for a savings account is a

Time deposit

After 7 years of working for a company that installed underground sprinkler systems for homeowners, Terrance was ready to venture into his own business. As he prepared his SWOT analysis, he evaluated where he stood at this time. He was fortunate to have $120,000 financing to get the business under way. He knew of three skilled installers who were willing and interested to work for him, and he was aware that new construction was at an all-time low, with several residential properties being foreclosed. In reviewing his list, you would categorize these events as

Two strengths and one threat.

A debenture bond is a type of __________ bond.

Unsecured

While cultural differences and bureaucratic paperwork for foreign governments make the prospect of global trade difficult for small businesses, there is one bright spot on the horizon that has brought global trade closer to home. Small businesses can now

Use technology such as PayPal to fulfill orders, which gives them some assurance of payment.

Martin Fittings was a small manufacturing company that made shut-off valves for gas pipe used in home and building construction. Martin purchased the National Gas Pipeline Company, which was Martin Fittings' largest customer. This strategic decision bringing the two companies together is called a

Vertical merger.

Any strategy that encourages people to pass on a marketing message to others, creating exponential growth in the message's influence as the message reaches thousands or even millions, is known as

Viral marketing.

As Derek searched through websites for the textbooks he needed for classes next semester, the websites would respond with additional books, technology cards, and other accessories it thought might interest him. This level of intelligence is __________ technology.

Web 3.0

Individuals who report unethical or illegal behavior within an organization are referred to as

Whistleblowers.

The __________ focuses on economic development throughout the world, with emphasis on developing economies.

World Bank

When it comes to ethical behavior,

many Americans decide what's ethical based upon the situation in which they find themselves.

Business Cycles

the periodic rises and falls that occur in economies over time