Business Final S1 2019

Contractual agreements such as guarantees, surety bonds, and leases are examples of handling business risks through transfer. management. avoidance. prevention or control.

transfer

Efficient production enables businesses to make an accurate forecast of sales. obtain advance orders for goods and services. turn out the most products at the least cost. charge higher prices than competitors.

turn out the most products at the least cost.

Changing a good's form involves which of the following: Making sure the good is available early Getting the good to the retailer Adding a new feature to the good Providing an easy way to buy the good

Adding a new feature to the good

Why should a business practice good ethics? The government will fine an unethical business. An unethical business will go bankrupt. An ethical business contributes toward its own success. An ethical business makes more money than all its competitors.

An ethical business contributes toward its own success.

Which of the following is a benefit of international trade: An improved standard of living Higher prices for goods and services Stronger trade restrictions An increased trade deficit

An improved standard of living

A bank denies a business owner's application for credit saying, "We feel that you would be unable to make the monthly payments because of your other debts." What financial report did the bank review? Operating budget Budget Income statement Balance sheet

Balance Sheet

Jake wanted to run his own business but was unsure that he had adequate business skills to be successful. Which type of business would give Jake the help he needs? Product trade-name franchise Sole proprietorship Private corporation Business-format franchise

Business format franchise

How does appropriate information management affect a business's relationship with its customers? Businesses make better financial decisions. Businesses earn higher profits. Businesses lose focus on customers. Businesses serve customers more effectively.

Businesses serve customers more effectively.

How does marketing-research data help a business's production planning? By identifying consumers' needs and wants By determining how products will be produced By identifying resources needed in production By setting the timetable to use in production

By identifying consumers' needs and wants

Which of the following is a key component of managing working capital: Financing Cash conversion cycle Capital budgeting Capital structure

Cash conversion cycle

The law that requires businesses to hire, train, transfer, and promote employees without regard to race, color, gender, religion, or national origin is the __________ Act. Sherman Antitrust Civil Rights Robinson-Patman Federal Reserve

Civil Rights

According to the marketing concept, which option demonstrates customer orientation? Convincing a buyer to buy Researching a firm's competitors Finding out what a buyer wants Advertising the features of a product

Finding out what a buyer wants

In what way might a human resources manager be involved in employee benefits? Choosing an employee's vacation days Selecting an employee's personal plan options Collecting insurance payments from employees Determining eligibility and costs of benefits

Determining eligibility and costs of benefits

After a company's training needs are determined, what is the next step in training and development? Determining what training resources are available Managing employee performances Keeping records for personnel files Dismissing employees who are not up to standard

Determining what training resources are available

Which management function is described in the following situation: James Crane has created a team atmosphere among the members of his sales department. When the team exceeded their monthly sales goal, James rewarded them with a celebratory dinner out and a five-percent bonus. Planning Controlling Directing Organizing

Directing

Which of the following are examples of middle-management job titles: District manager, department head, and regional sales manager President, senior vice president, and chief executive officer Collections supervisor, crew chief, and production supervisor Floor supervisor, area supervisor, and section manager

District manager, department head, and regional sales manager

Which of the following is a factor that would encourage businesses to start a business at a particular location: Strict government regulations Easy access to natural resources High unemployment rates Easy access to competitors' products

Easy access to natural resources

Labor-union negotiations are part of which HR management activity? Employee relations Compensation and benefits Training and development Staffing

Employee Relations

Wendy's sells the right to operate its restaurants to individuals who meet the company's criteria. The arrangement between Wendy's and these individuals is an example of 1. Licensing 2. Multi-Level Marketing 3. Franchising 4. Partnership Agreement

Franchising

In a communist command economy who decides how the economic questions will be answered? Government Individuals Businesses Venture team

Government

Are you going to pass this test and get Hambrights cash? No Maybe Yes Hells Yes

HELLS YES TIMES A MILLION

Which of the following occurs when the supply of individuals who are able and willing to work diminishes: Capital goods become unlimited. Capital goods become limited. Human resources become limited. Human resources become unlimited.

Human resources become limited.

Which of the following is the best action for businesses to take in order to adapt to changing markets: Focus efforts on the business's product with the highest profit Protect the business's core products Reduce investments in research and development Implement innovative strategies and ideas

Implement innovative strategies and ideas

Which of the following is a trend in information management: Increased compliance laws and regulations Decreased competition Decreased number of electronic documents Increased number of workers in the office

Increased compliance laws and regulations

A manager studies the business's previous sales statistics as well as the sales forecast before making purchasing decisions. What type of resource is the manager using? Material Financial Human Information

Information

What type of property is a business protecting when it registers its trademark? Administrative Tangible Statutory Intellectual

Intellectual

Which of the following is a public good that is provided by the government? Interstate highways Marketing research New automobiles Private schools

Interstate highways

Why is production important to businesses? It prevents businesses from wasting resources. It creates goods and services businesses can sell. It enables businesses to charge high prices. It informs businesses about consumers' needs and wants.

It creates goods and services businesses can sell.

How does the finance function relate to company spending? It produces reports about spending. It plans and controls spending. It spends on investment only. It does not relate to spending.

It plans and controls spending.

Why is a good accounting system important to a business? It prevents any financial losses. It shows the business how it is doing. It increases the return on investment. It gives the business an image of success.

It shows the business how it is doing.

What management function is being described in the following situation: David Thomas, a top-level manager, identifies jobs to be performed, assigns responsibility for them, establishes departments to handle the jobs, and determines how many and which employees mid-level managers will supervise. Organizing Controlling Planning Directing

Organizing

Overall, what does marketing allow us to do? Feel better about shopping Stop buying online Limit our spending Live our daily lives

Live our daily lives

Which of the following government actions is most likely to stimulate the economy: Lowering tax rates Raising the prime interest rate Printing less money Borrowing more money

Lowering Tax Rates

Which of the following demonstrates the interrelationship among primary business activities: A business manager becomes vice president, so his/her department must adjust to the change. A business changes its goals, so its strategies and tactics change, too. A new product is introduced, so business advertisements must adjust in response. One business activity changes, so the others must adjust in response.

One business activity changes, so the others must adjust in response.

John, Robert, and Charles were college friends who wanted to start a business. John has creative ability, Robert's expertise is selling, and Charles' expertise is management. However, each has limited capital. The ideal business ownership for these young men is a Franchise Merger Partnership Coorperation

Partnership

Which of the following is a disadvantage of private enterprise: Periods of unemployment Elimination of poverty Careful use of resources Equal distribution of income

Periods of unemployment

Which of the following is an environmental factor that affects the performance of businesses that market products on a global level: Land formation Storage space Health coverage Political risk

Political risk

Businesses can show their social responsibility by contributing to: private causes. pollution. promotion. Correct! public interests.

Public interests

Which of the following is a marketing activity: Leading Balancing Promoting Committing

Promoting

Franco's Bread Shop is introducing a new type of sandwich bread to the community this week. Which of the following describes the business activity the bread shop is likely involved in: Promoting the new bread through advertising Collecting information on last year's new breads Creating a system for storing new bread recipes Planning for the long-term results of introducing new breads

Promoting the new bread through advertising

Which of the following is a measure of how well a business generates cash flow: Return on capital Accounts receivable Capital structure Accounts payable

Return on capital

Which of the following is a way to evaluate supplier performance after the purchased goods or services have been delivered: Check the supplier's credentials Contact the supplier's references Visit the supplier's plant Review the invoice

Review the invoice

Why is routing an important production activity? Routing establishes the production path of inputs. Routing issues orders for production to start. Routing establishes a timetable for production. Routing establishes company standards.

Routing establishes the production path of inputs.

Complying with environmental laws is part of which operations activity? Inventory control Logistics Purchasing Safety and security

Safety and security

A business is planning a sale and needs to know what sales were for a particular weekend in the previous year. Which of the following accounting records would provide this information: Disbursement journal Sales journal Bank statement Income statement

Sales journal

Which of the following is an example of nonverbal communication that might have a different meaning to business people in other parts of the world: Inviting customers to a social function Shaking hands when greeting a customer Writing letters in a foreign language Preparing an audiovisual presentation

Shaking hands when greeting a customer

Which of the following is a situation that might make business people from other countries feel uncomfortable and impact their ability to conduct business: Offering to take others to lunch or dinner Calling in advance to schedule appointments Standing very close to others during conversations Wearing business-type clothing that is conservative

Standing very close to others during conversations

Human resources management is demonstrated in which of the following statements: The business takes care of the responsibilities associated with having employees. The business gives its preferred customers a special discount. The business includes top-level managers in long-term planning. The business acts on new information about a competitor.

The business takes care of the responsibilities associated with having employees.

Which of the following examples illustrates how environmental factors are interrelated: Low investor confidence heavily impacts financial planners. New legislation will be written in the future. The economy affects what competitors are doing. The economy affects banking institutions.

The economy affects what competitors are doing.

Annika, the purchasing specialist for Dottie's Donut Shop, just located a new, less expensive sugar supplier. Dottie does not plan to lower donut prices. If Annika buys the shop's sugar from this cheaper supplier, what is likely to happen? Donut sales will increase. Donut sales will decrease. The profit margin for donuts will increase. The profit margin for donuts will decrease.

The profit margin for donuts will increase.

Which of the following situations would most likely indicate the need to adapt to changes in the business environment: The number of your business's competitors has decreased. The supply of materials used in manufacturing a product has decreased. The demand for your product is stable. The business has experienced little employee turnover during the past year.

The supply of materials used in manufacturing a product has decreased.

Which of the following is a true statement about business ethics and the law: Everything that is illegal is also unethical. The two are not the same thing, but they do overlap. Everything that is unethical is also illegal. The two have nothing to do with each other.

The two are not the same thing, but they do overlap.

Which of the following is a reason that the role of human-resources management is changing: Employees place a greater emphasis on work over personal lives. Business costs are going down. There is greater diversity in the workforce. The workforce is younger than ever.

There is greater diversity in the workforce.

What is one reason why the federal government awards patents to businesses that have invented new products or manufacturing processes? To protect consumers To encourage research To restrict monopolies To monitor advertising

To encourage research

Which of the following is a reason that a U.S. company would decide to offer its products in other countries: To expand to new, untapped markets To sell obsolete, outdated products To subsidize developing countries To provide jobs to people in other countries

To expand to new, untapped markets

Why does the government set and collect taxes? To help pay the expenses of government To increase the use of technology To provide economic security To help businesses grow and prospe

To help pay the expenses of government

Which one of the following groups of words best describes wants: Limited, changing, and compensating Unlimited, changing, and competing Limited, unchanging, and competing Unlimited, unchanging, and compensating

Unlimited, changing, and competing

What are the three basic economic questions? What products will be produced; how will products be produced; and how will products be allocated? When will products be produced; how will products be produced; and how will products be allocated? When will products be produced; what products will be produced; and how will products be allocated? Where will products be produced; when will products be produced; and what products will be produced?

What products will be produced; how will products be produced; and how will products be allocated?

In an overall sense, where does marketing occur? Wherever trucks are Wherever advertisements are Wherever customers are Wherever stores are

Wherever customers are

Which of the following is a detail that a buyer should know prior to placing an order for raw materials? Which employees will be converting the raw materials into finished products How the finished product will be marketed Whether the company has storage space for the raw materials Who will be purchasing the finished products

Whether the company has storage space for the raw materials

What determines whether an economic product is an industrial product or a consumer product? Who buys and uses the product The price of the product Who produces the product The origin of the product

Who buys and uses the product

Jeremiah purchases sterling silver necklaces and bracelets from Native American artisans and sells the items to jewelry stores and gift shops. What kind of buyer is Jeremiah? Business use Retail Industrial Wholesale

Wholesale

One way in which many businesses demonstrate their social responsibility toward employees is by providing them with free meals. regular entertainment. a stress-free atmosphere. a safe working environment.

a safe working environment

The U.S. produces widgets faster and cheaper than Switzerland. In this example, the U.S. has a(n) __________ advantage. absolute comparative constructive predictable

absolute

TeJuan's Fishing Shack demonstrates effective information management by hiring fishing experts to explain how to use the goods offered. removing wasted materials from the process of providing goods to customers. promoting new fishing equipment in a popular trade magazine. accessing a list of fishing equipment appropriate for a particular customer.

accessing a list of fishing equipment appropriate for a particular customer.

In order for an accounting system to be useful to the business, the accounting information it contains must be posted by an accountant. approved by the chief executive officer. accurate and up-to-date. recorded using the accrual method.

accurate and up-to-date.

Three primary factors that affect the organizational structure of a business include interpersonal relationships, tasks, and attrition. injunction. initiative. authority.

authority

In economics, the term capital goods includes labor and management. buildings and equipment. trees and water. mental and physical work.

buildings and equipment

When marketers provide information about an available product, consumers are more likely to request a payment plan. ask questions about the product. buy the product. put the product on layaway.

buy the product

Businesses that successfully adapt to current market situations often realize that cutting costs is important. more financing is necessary. diversification is the key. change is an opportunity.

change is an opportunity.

A business's philanthropic responsibility involves its contributions to: scientific research. political campaigns. charity. the economy.

charity

Jaron, the district technology coordinator for Abington City Schools, is responsible for purchasing new computers for the district. He recently sent out a request for price quotes to five different computer companies, and he is waiting to hear what the various suppliers' proposed prices will be. Jaron is conducting a make-or-buy decision. negotiations. competitive bidding. retail buying.

competitive bidding.

The overall purpose of accounting is to maintain accurate reports. compile the business's expenses. control the finances of the business. keep track of sales.

control the finances of the business.

Carefully selecting goods or services to sell is an example of handling business risks by __________ the risk. bypassing transferring controlling avoiding

controlling

One of the benefits of production to consumers is that production: provides a way to be competitive. provides a way to earn profits. makes use of automation. creates form utility.

creates form utility.

Which of the following factors affects society's basic values and behaviors that influence their buying decisions: Political Economic Cultural Environmental

cultural

Which of the following is a characteristic of the organic organizational business structure: Centralized authority Specialization emphasis Delegation emphasis Inflexible procedures

delegation emphasis

Changes in the market that cause prices to go up or down, products to change, and businesses to succeed or fail are examples of __________ risks. natural competitive human economic

economic

Operations managers have two main goals in mind—efficiency (keeping costs low) and productivity (keeping business running fast). legality (keeping the business in good standing with the law). effectiveness (keeping customers satisfied). reputation (keeping up the business's good name).

effectiveness (keeping customers satisfied).

Companies that operate at the international level should be aware of political factors that affect trade, such as civil unrest or embargoes. currency rates. business cycles. competitors.

embargoes

The way in which an economic system answers the basic economic questions depends upon the country's demand. supply. government. resources.

government

Which of the following economic resources is responsible for combining the other resources to produce goods and services: Natural resources Human resources Capital goods Nonrenewable resources

human resources

Managing information regarding copyrights and trademarks helps a company to preserve its customers. inventory. correspondence. identity.

identity.

Producers respond to consumers' positive economic votes by producing more industrial goods. decreasing production. increasing production. classifying their goods and services.

increasing production

Private enterprise is based on the idea that everyone is better served when businesses regularly increase their prices. individuals are free to set their own goals. government determines where individuals will work. economic resources are controlled by the government.

individuals are free to set their own goals

A clothing manufacturer checks one pair of pants out of every shipment to ensure the quality of its product. This process is known as quality inspection. guarantee. delivery. assurance.

inspection.

Because operations managers control so much of a business's money, they must focus on generating publicity. hiring the best employees. creating effective advertising campaigns. keeping costs low.

keeping costs low.

Running out of inventory can result in lost sales. higher taxes. higher productivity. more satisfied customers.

lost sales.

Appropriate information management saves businesses time and money by maintaining yearly raises for employees. increasing information overload. increasing "paper trails." maintaining higher levels of productivity.

maintaining higher levels of productivity.

Information management can be a challenge because no one wants to participate in it. there is often not enough information to manage. there is only one "right" way to do it. many people don't understand what it is.

many people don't understand what it is.

Formal relationships and a distinctive chain of command are characteristics of the _________ organizational business structure. organic mechanistic decentralized imperial

mechanistic

Using a stream to supply water to a field in order to grow crops is an example of using human resources. natural resources. capital goods. nonrenewable resources.

natural resources

The finance function would definitely be involved in a decision regarding hiring. public relations and publicity. personal selling. new business projects and strategies.

new business projects and strategies.

One way that competition benefits business is by encouraging the creation of unrelated firms. more regulations. new companies. limited resources.

new companies.

Offering high quality, large assortments, and free shipping are examples of rebates. nonprice competition. price fixing. price competition.

nonprice competition

With Rosita's pizza shop, financial analysis is used to: develop the best recipe. attract customers. oversee the baking process. obtain funding for supplies.

obtain funding for supplies.

A main reason that environmental scanning is important is so that businesses can be aware of new products. potential threats. competitors' internal environments. foreign markets.

potential threats.

Alex owns a guitar, several books, a car, and a telescope. Alex's possessions are examples of equal distribution. economic resources. capital goods. private property.

private property

One reason why many small businesses develop an organizational design that requires a board of directors is because a board usually: provides experience that increases the business's credibility. assumes all legal responsibility for the business's actions. helps with the day-to-day operations of the business. evaluates the performance of the business's employees.

provides experience that increases the business's credibility.

Accounting is distinct from finance because its main focus is on money management decisions. record-keeping activities. administration of assets. acquisition of funds.

record-keeping activities.

If expenses are greater than income, there's no sales. risk. reward. guarantee.

reward

To discover a product's level of utility, marketers measure the consumer's desire. perspective. attitude. satisfaction.

satisfaction

One reason that businesses use a matrix organizational design is to improve employee productivity. share human resources. segment areas of expertise. standardize business tasks.

share human resources

Online chats, forums, and communities that enable businesses to learn about the wants and needs of their worldwide target market have created a new form of cultural values. class systems. gender roles. social relationships.

social relationships.

Government owns the basic means of production but there is some private ownership of businesses under capitalism. communism. socialism. entrepreneurship.

socialism

Gross profit shows business owners the difference between what they've estimated and invoiced. paid and risked. received and billed. spent and received.

spent and received.

A manager who helps an employee count the money in a cash drawer and prepare a bank deposit is demonstrating technical skills. natural talent. creativity. aggressive behavior.

technical skills

An important factor that has a significant effect on the general business environment is organization. geography. reputation. technology.

technology

Which of the following is an example of a demographic trend: The aging of the population Shifting political climates Rising interest rates A concern for fitness and health

the aging of the population

A socially responsible business will attempt to give customers: high-quality products at high prices. lower quality products at reduced prices. the best products at the best prices. the best products no matter what the cost.

the best products at the best prices.

Human resources are a company's most important resources because they are controlled by other company resources. they are the least expensive resources. they control all other company resources. they are the most expensive resources.

they control all other company resources.

Each purchase strengthens the economy by encouraging expansion. trade. investment. competition.

trade

A nation that exports more than it imports maintains a trade deficit. balance of trade. trade surplus. lower standard of living.

trade surplus

A characteristic of human wants is that they are limited. unchanging. unlimited. consistent.

unlimited

Most businesses put their greatest competitive efforts into competing locally. nationally. with direct competitors. with indirect competitors.

with direct competitors