Business 100 Final Exam Study Guide

What is the Annual GDP of the United States currently? (select best answer)

$21 Trillion

To obtain the tax classification of an S-Corporation, your business may have a maximum of ____ shareholders.

100

The name of the annual report that are submitted to the Securities and Exchange Commission by US publicly-traded companies.

10K Report

A performance appraisal process that obtains employee feedback from a wide variety of sources including co-workers, managers, subordinates, customers, and/or business partners:

360-degree performance review

If a company has the following information on their income statement, what is their Gross Profit Margin? Sales - $1000 Cost of Goods Sold - $600 Net Income - $100

40%

The process of collecting, recording, classifying, summarizing, reporting, and analyzing financial activities.

Accounting

An individual investor who provides financing for start-up businesses by investing their own funds.

Angel Investor

Select the answers that are commonly associated with the "Entrepreneurial Mindset" (select all that apply).

Are open-minded to ideas and needs of the customer, View "failures" as part of the learning process, Identify and explore opportunities, See problems as potential opportunities and tend to be problem solvers

A type of leadership style that has the top leader making most of the decisions.

Autocratic leadership

A financial statement that is a snapshot in time of a company's financial position in terms of its Assets and Liabilities.

Balance Sheet

A list of the items and the number of each item required to make a given product.

Bill of Material (BOM)

When developing a new business idea which steps are recommended? (select all that apply)

Brainstorm problems or unmet needs, Test & validate your assumptions by talking to potential customers and experts, Start with something you enjoy, understand, and/or have skill/experience

As part of the distribution process, __________ are people/companies that bring buyers and sellers together for a commission.

Brokers

A formal document that describes the idea and major characteristics of a planned business including a business description, marketing plan, competitive analysis, and financial plan.

Business Plan

The United States is a member of which Free Trade Agreement(s) - Select all free trade agreements that apply.

CAFTA, USMCA

Which country is NOT part of the USMCA Trade Agreement?

China

The set of guidelines by a firm to provide employees with the knowledge of what the firm expects in terms of their responsibilities and behavior toward fellow employees, customers, and suppliers.

Code of conduct (ethics)

The process of negotiation between management and union representatives for the purpose of arriving at mutually acceptable wages and working conditions for employees.

Collective bargaining

When a country trades because they can supply a product more efficiently and at a lower cost than it can supply other goods.

Comparative advantage

If an employee has a position of oversight or authority that enables them to make unfair decisions for personal gain, at the expense of the company or organization, that employee may have a __________.

Conflict of interest

An index of the prices of a "market basket" of goods and services purchased by typical urban consumers and is used to measure inflation in the United States.

Consumer Price Index (CPI)

When a manager takes corrective action on a key performance indicator because the organization is falling behind key progress goals and performance benchmarks, they are demonstrating which key management function?

Controlling

Organizational leaders are able to shape ______________ which is an over-riding set of attitudes, values, and standards that guides an organization and often distinguishes one organization from another.

Corporate culture

Which answer is true if Country Y's currency weakens in value relative to Country X's currency?

Country Y's exporters that export to Country X will benefit.

A type of business funding that obtains money that must be paid back, typically with interest.

Debt financing

The print media and newspaper industries are examples of industries that are in what stage of the product lifecycle?

Decline

Which state is the corporate home for the largest number of Fortune 500 companies?

Delaware

The marketing process of efficiently managing the acquisition of raw materials by the factory and the movement of products from the producer to the consumer.

Distribution

An illegal trade practice where a company sells products in another country at a price that is lower than its production cost and what they charge in their own home country.

Dumping

The ratio of net income to the number of shares of common stock outstanding; measuring the number of dollars earned by each share of stock.

EPS

A key advantage that a Sole Proprietorship business has over a Corporation is.

Ease of Setup

In Corporations, the Board of Directors are ____________ by the _____________.

Elected ; Shareholders (Stockholders)

A form of business financing consisting of giving up a portion of business ownership in exchange for funds.

Equity financing

Per the course lecture content, which is NOT one of the four building blocks used to develop an ethical organization?

Ethical Reporting

A corporation must have a minimum of 100 people to legally be setup as a corporation.

False

If a business uses the Economic Model, it has the belief that business, as part of its role, owes its existence to improving the society in which it operates.

False

If you have a tourism business in the US that mainly attracts Japanese tourists, then you should benefit if the US Dollar strengthens relative to the Japanese Yen.

False

In the United States, it is mandatory for publicly-traded businesses to measure and report the Triple Bottom Line to demonstrate their Corporate Social Responsibility.

False

When an analyst calculates and interprets financial data from financial statements to assess the condition and performance of a company, they are performing ___________.

Financial Ratio Analysis

The government's use of taxation and spending to affect the economy.

Fiscal Policy

A 12-month period of time designated for financial reporting.

Fiscal Year

As reviewed in the lecture notes, a conceptual model of the cost of doing business indicates that it is ___ times more costly to do business with a new customer vs. an existing customer.

Five

A legal agreement that allows a business to be operated using the name and business procedures of another business AND serves as blueprint on how to run that business.

Franchise Agreement

An economic system based on competition in the marketplace and private ownership of the factors of production (resources).

Free Market Economy, Capitalism, and Private Enterprise System

The conventions, rules, and procedures for determining acceptable accounting practices at a particular time.

GAAP

A commonly used software tool to measure production schedules that uses bar graphs plotted on a timeline that show the relationship between scheduled production steps.

Gannt Chart

The total market value of all good and services produced within a nation's borders each year?

Gross Domestic Product

As a marketing strategy to promote their television series Shark Week, the Discovery Channel places surf boards with large shark bites cut out from the boards and information about Shark Week on various crowded beaches. The marketing team hopes pictures of their "fun" surf boards will be posted by numerous beach goers and sees this as a low-cost, creative approach to marketing Shark Week. This is an example of ___________.

Guerilla Marketing

If Ford Motor Company merges with Chrysler, it would be an example of a _________ merger.

Horizontal

The process of hiring, developing, motivating, and evaluating employees to achieve organizational goals:

Human Resources Management

An internationally recognized set of standards that promotes clean production processes to protect the environment.

ISO 14000

A set of five technical standards designed to offer a uniform way of determining whether manufacturing plants and service organizations conform to sound quality procedures.

ISO 9000

Sales commissions, bonuses, and stock options are forms of:

Incentive compensation

A financial statement that shows revenue, expenses and profit or loss is referred to as:

Income Statement

When a company coordinates all their promotional activities for a unified message or marketing objective, it is referred to as ____________________.

Integrated Marketing Communications

________________ is when larger, established companies try to promote creative, entrepreneurial thinking within their organization.

Intrapreneurship

A type of motivational reward that is based on a sense of pride or accomplishment (instead of a monetary reward).

Intrinsic reward

The process of deciding how much of each type of inventory to keep on hand and the ordering, receiving, storing, and tracking of it.

Inventory management

Stakeholders of a business refers to the following (select all that apply):

Investors of the business, Owners of the business, Employees of the business, Customers of the business

______________ is increasing the job depth by providing more autonomy, responsibility, and empowerment to the employee in their job position.

Job enrichment

A production system in which materials arrive exactly when they are needed for production, rather than being stored on-site.

Just in Time systems

A production method that focuses on streamlining production by eliminating steps in the production process that do not add benefits of value to the customer.

Lean Manufacturing

A key advantage that a Corporation has over a Sole Proprietorship business is.

Limited Liability

The subarea of economics that focuses on the economy as a whole by looking at aggregate data for large groups of people, companies, or products.

Macroeconomics

A management approach that aligns the goals of individual employees with the overall goals of the organization.

Management by Objectives

The process of separating, identifying, and evaluating the layers of a market in order to identify target market(s) that think/act similarly.

Market segmentation

The process of discovering the needs and wants of potential buyers and customers and then providing goods and services that meet or exceed their expectations.

Marketing

A motivational theory based on 5 levels of need that people seek to satisfy.

Maslow's theory

A stage in the product lifecycle where the product sales growth rate continues but at a slower rate. Typically, this stage occurs after a product has been on the market for a long period of time and there is significant competition.

Maturity

In a larger organization (e.g., 500+ employees), Tactical Planning is most frequently conducted by:

Middle management

A concise description of an organization's fundamental purpose.

Mission statement

Which government policy is managed by the Federal Reserve Bank for controlling the amount of money circulating in the economy and interest rates.

Monetary Policy

A Stage in Team Development that is marked by structure, cohesion, and order.

Norming stage

The process of reducing the number of employees within a firm by contracting with another business to perform tasks or functions previously handled by internal staff members.

Outsourcing

A pricing strategy that may be used to price a newer product at a low price to capture larger sales margins or market share.

Penetration Pricing

To measure social responsibility, some companies measure the "triple bottom line" includes:

People, Planet, Profits

Which is not one of the 5 Ps of Marketing?

Planning

The four key functional areas of management are (select all that apply):

Planning, Organizing, Leading, Controlling

Rolex, the Swiss watch maker, is most likely to use ___________ as their pricing strategy.

Prestige Pricing

The creation of products and services by turning Inputs, such as natural resources, raw materials, and human resources into Outputs, which are products or services.

Production

The function of informing, persuading, or reminding consumers or B2B users for purposes of influencing their opinion, response, or buying decision.

Promotion

As part of her job as a sales representative, Sally spends two hours a day "cold calling" people that she believes could be potential customers for the product she sells. What part of the personal selling process is Sally performing?

Prospecting

A marketing promotion strategy that brings the product to the customer through placement, displays, and/or demonstrations.

Push Strategy

When a salesperson asks a prospective customer questions to better understand and validate their suitability and readiness to buy your product or service.

Qualifying

A part of the economic cycle that is defined by two consecutive quarters (or more) of declining GDP.

Recession

Privately owned and managed investment companies that are licensed by the SBA and provide long-term financing for small businesses.

SBICs

A commonly used management tool used to evaluate an organization's strategic factors in the marketplace such as key opportunities and threats:

SWOT Analysis

Legislation passed in 2002 that set new standards for accounting auditor independence, financial discloser reporting, and internal controls due to major accounting fraud situations.

Sarbanes Oxley Act

A type of market research that utilizes existing market studies, research, reports that have been organized and published by others.

Secondary Market Research

A company-wide quality process that focuses on measuring the number of defects that occur and systematically eliminating them in order to get as close to "zero defects" as possible.

Six Sigma

A principal US Government agency concerned with helping small companies

Small Business Administration

What is the most common type of business legal formation in the United States?

Sole proprietorships

The process of creating long-range (one to five years), broad goals for the organization and determining what resources will be needed to accomplish those goals.

Strategic Planning

Management of the sequence of suppliers that contribute to creating a good or service and delivering it to final consumers/users.

Supply Chain Management

In a free market economy, a country's currency valuation and exchange rate is based on what? (Select best answer)

Supply and demand of the currency

A specific customer group toward which a firm directs its marketing efforts.

Target Market

A tax or duty on incoming foreign goods.

Tariff

Which is a barrier to free trade?

Tariff

When forming an effective team, it is important to consider which of the following (Select all that apply).

Team size

The Central Bank of the United States.

The Federal Reserve Bank

If a business uses the Socioeconomic Model, it has the belief that business, as part of its role, owes its existence to improving the society in which it operates.

True

Studies have shown that consumers receive 1000s of marketing messages each day which requires advertisers to become very creative with their marketing content so that they can gain consumer attention.

True

Key characteristics of effective management include (select all that apply):

Understanding of the overall "big picture" for the process they manage, Positive interpersonal skills, Anticipation of potential problems (and ability to develop solutions), Strong communication skills

Investment firms that specialize in financing small, high-growth companies and receive an ownership interest and a voice in management in return for their money.

Venture capitalists

A concise, aspirational description of what the organizational would like to achieve or accomplish in the future:

Vision statement

Which trade organization works to resolve trade differences/disputes between countries? (Select best answer)

WTO

A person, including a company employee, that reports insider knowledge of illegal activities occurring within an organization.

Whistleblower

Firms that sell finished goods to retailers or other businesses (but not to the end consumer).

Wholesalers

Sarbanes Oxley is designed to deter and punish ________________ within publicly-traded companies in the ____________.

corporate accounting fraud ; United States

Kickstarter.com is an example of _____________.

crowd funding

Herzberg's motivational factors are primarily ___________.

intrinsic rewards

When company ABC, Inc. donates money and employee time to areas of need within their community (e.g., schools, homeless shelters, etc.) they are demonstrating __________. (select all that apply)

support of a socioeconomic model for their business, Corporate Social Responsibility

A brand for a company can be simply stated/represented as:

the company's fundamental reputation

In a Limited Partnership business, the General Partners have ___________.

unlimited liability