Business Management
True or false: Effective managers should use strategic management rather than tactical management
False
Which level of management spends most of its time completing planning and controlling activities?
Middle management
The availability of a service must match the demand for that service at a specific time because it is
Perishable
Which of the following is NOT one of the five functions of management?
Producing
what are several factors affecting business that often present uninsurable risks?
Reputation risk, regulatory risk, trade secret risk, political risk and pandemic risk
A(n) _____ is a time plan for completing activities
Schedule
What is an income statement?
Shows total revenues and expenses for a period of time
________________________________ is the money needed to open a new business
Start-up financing
Intermittent processing would most likely be used in the production of
Textbooks
True or False: A cash budget is an estimate of the actual money received and paid out for a specific period.
True
True or false: policies and procedures help provide direction for a business
True
start up
a company or project undertaken by an entrepreneur to seek, develop and validate a salable economic model
innovation
an invention or creation that is brand new
The value of the buildings and equipment owned by a business can be determined in the
asset records
What are the benefits of using technology to help manage business operations?
automation and productivity smaller businesses can compete with large businesses by being more swift and agile and responding to change faster
In order to be a successful entrepreneur you should
be competitive ,creative, independent goal oriented and persistent
what is tactical management?
business environment allows a manager to choose the best tactics or methods for each situation that arises, rather than following a particular standard procedure.
a written description of a business idea and how it will be carried out is called a
business plan
what information should be considered when selecting an insurance company
collect information about the type and cost and the quality of service provided by the company if a loss occurs
several strong influences for change in the workforce include
consumer preferences, economic condition (business cycles) new technology and business competition
what is the difference between customization and materials processing?
custom is making for one unique individual, material processing is the way things are changed to make other products
what is a payroll record?
it is a electronic use for the employer to have records to pay the employee
what is the purpose of the payroll system?
it manages everything having to do with the process of paying employees and filing employment taxes
Entrepreneurs internship began when
it originates from a source
The 7 major goals for human resource are
recruit workers, hire quality employees, train new employees, promote diversity, employee needs and retain workers
The obligation to complete specific work is
responsibility
The financial record of employee compensation, deductions, and net pay is known as
payroll
Which of the following is not one of the three important elements of a company's financial strength?
payroll
some ways employees help employees meet demands outside the job are
personal time , family lave and flextime
what are several ways to develop leadership skills
practice discipline, take on more projects, learn to follow, develop
list the 3 steps in financial decision making
preparing a budget, use the budget to operate the business and make the needed adjustments
Which of the following is not one of the common activities of all businesses?
producing goods and services
The form of ownership that gives one person sole control over all business decisions is the
proprietorship
identify the 4 important types of business operations
sole proprietorship, partnership, corporation, and limited liability company(LLC)
short-term financing
the money needed to pay for the current operating activities of a business
what is a earnings report?
the receipt for the employee once they get their paycheck also known as a pay stub
the sources of financing that entrepreneurs use for new business are
the venture ,money, business incubators, government grants and bank loans
small business compete successfully with larger businesses if
they all had great customer service, innovated easier and connected with the audience
it is important to use a team approach when starting a new business because
you need a financial plan
Small Business Administration (SBA)
A government agency that helps small business owners develop business plans and obtain financing and other support for their companies.
Which of the following conditions will result in a lower rather than a higher price?
A large quantity of available products
What is the basic financial equation for businesses
ASSETS= LIABILITIES+EQUITY
Which of the following is not a characteristic of entrepreneurship in the United States?
About 3% of people aged 18-64 are involved in entrepreneurship activity
A person who is not a manager but is still able to get a group focused and organized is using
Informal influence
True or False: The most basic form of production is manufacturing
False
The way people get along with each other is known as.
Human relations
The two steps in a marketing strategy are
Identifying a target market and developing a marketing mix
Which of the following is NOT a standard of ethical behavior?
It should not give the company a competitive advantage
The ability to motivate individuals and groups to accomplish important goals is
Leadership
Money needed for the important resources of a business (such as land, buildings, and equipment) that will last for many years is called
Long-term financing
Which of the following is NOT one of the reasons small business fail?
Not enough employees to do the work
The most expensive but also most effective type of promotion is
Personal selling
Inventory managers keep records of
Production resources and finished products
what is a balance sheet?
Shows what a company owns (assets) and owes (liabilities) at a specific moment in time
What are the 4 steps in preparing a business budget?
Step One-Identify your goal Step Two- Review what you have Step Three- Define the costs Step Four- Create the budget
Customer Analysis
The part of a business plan that discusses sales forecasts and the location and number of potential patrons.
Pure research is done without a specific product in mind.
True
True or False: All investors in a general partnership have full liability for the debts of the business.
True
True or False: Businesses are responsible for making required federal and state payments for each employee.
True
True or False: Managers are responsible for the ethical actions of a business.
True
True or False: Most new products introduced by companies are not totally new, but are improvements on existing products.
True
True or False: Sales and profits for a specific period are reported in a company's income statement.
True
operations plan
the part of a business plan that discusses the organization of the company and describes its major operations
What is a risk?
the possibility of incurring a loss
small business are responsible for almost _____ % of the U.S gross domestic product each year
50
The Small Business Administration considers a business small if it employs fewer than ____ employees.
500
Improvement
A designed change that increases the usefulness of a product, service, or process.
A business plan does not have to be written because the business owner is well aware of the information in the plan.
False
An entrepreneur who starts a new business is not considered to be a manager.
False
Employees--rather than managers--are responsible for the financial health of a company.
False
Most small business owners enjoy being part of a team.
False
Payroll records need to be maintained for all full-time employees, but not for part-time employees.
False
Every business begins with a(n
Idea
Money provided by large investors to finance new products and new businesses that have a good chance to be very profitable is known as
Venture capital
sources of financing for a small business would be
debt
what are the 2 parts of ethical behavior?
decisions and action
operating
describes the financial plan for ongoing operations of the business for a specific period of time
The electronic transfer of net pay into an employee's bank account is known as
direct deposit
Differences between actual and expected performance are
discrepancies
________________ is the process of starting, organizing, managing and assuming responsibility for a business
entrepreneurship
what is the difference between formal and informal influence?
formal has more power
Service Corps of Retired Executives (SCORE)
group made up of retired executives who volunteer their time to provide entrepreneurs with real-world advice and know-how
the benefits of diversity are
increased productivity, improved creativity and increased profit
A retailer is an example of a(n)
intermediary
A special form of business organization that combines advantages of a corporation and a partnership is a
limited liability company
What are the differences among the 3 levels of managment
low level, middle level and top level. Difference if one is more responsible
the 4 points that can be used to describe a small business are
lower revenue , profitability smaller teams of employment small market area
What are the 3 forms of production
mass production, mass customization, and customization
long-term financing
money needed for the main resources of a business that will last for many years
venture capital
money provided by large investors to finance new products and new businesses that have a good chance to be very profitable
Human resource personnel need to study jobs before beginning the hiring process because
need to obtain specific information
True or False: Financial planning is needed by a small business only until it begins to make a profit
False
True or False: Research has proven that effective leaders are born and not made
False
True or False: The first step in marketing research is to develop a data collection procedure
False
When businesses specialize in producing a specific type of product, a channel of distribution will be needed to adjust differences in
Assortment
A competitive advantage that small businesses have over larger businesses is.
Attention to unique customer needs
identity 4 ways that a business can deal with risks
Avoidance, Reduction Transfer and retention
The best practices among all competitors are
Benchmarks
True or False: Document management software keeps track of project calendars, tasks, to-do lists, work assignments, and project resources
False
True or False: Everyone who owns or manages a business in an entrepreneur.
False
Important principals that guide decisions and actions in a company are known as
Core values
Building a specific and unique product to meet the needs of one customer is known as
Custom manufacturing
Which of the following is an example of a rational buying motive?
Economy
Which of the following is part of facilities management?
Energy and environmental management
The current value of investments made by the owners of a business can be found in the
balance sheet
why do managers and leaders need effective human relations skills?
because much of their success depends on their ability to get along well with people
what are the core values of an organization?
behavior- modeling ethnic
The people who make the major policy and financial decisions in a corporation are the
board of directors
the 3 types of incentive systems for employee compensation are
bonuses, profit and sharing stock
what are some types of financial records that businesses must keep?
invoices, receipts , employee payroll, purchases, expenses, VAT records, tax returns and any supporting documents must be stored for a least 3 years
Which of the following is not shown on an organizational chart?
job descriptions
common reasons businesses fail are
lack of experience, insufficient capital (money) , poor inventory management and poor credit arrangement
The largest number of the U.S. businesses employ
no employees other than the owner
Current liabilities are amounts that will be paid in less than
one year
describe the 3 activities that are a part of production planning
production process, production resources, personnel
inventory
products a company owns and expects to sell in its normal operations
The basic financial equation is
revenue - expenses = profit or loss
the purpose of a evaluation conference is to
review and discuss results of evaluation
identify 4 important financial performance ratios used by managers to determine how well the business is performing
start-up budget plans income and expenses from the beginning of a new business or a major business expansion until it becomes profitable. Operating budget describes the financial plan for ongoing operations of the business for a specific period
what is strategic management
strategic outlines actions to achieve team goals
what actions can U.S companies take to minimize the risk of doing business in foreign markets
take time to get to know the other party, before trusting foreign clients or commercial partners take the time to really get to know them
The best definition of marketing is
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.