Entrepreneurship

Patents, trademarks, and copyrights are all methods used to protect

Intellectual Property

What types of businesses can be owned by thousands of stockholders?

Open Corporations

What is an example of an amplified word-of-mouth strategy?

a company asks customers to share product reviews on a website

Which of the following is an example of business process thinking:

a company strives to fix its method of internal communications

Which of the following is a situation indicating a problem with product durability:

a customer complains that his/her new cell phone battery quit after one week

A car company has decided to invest less in its successful pickup truck and to use those funds instead on the development of its new hybrid vehicle. This is an example of

a harvest strategy

Which of the following businesses is the best example of an entrepreneurial venture:

a vet invents and sells a device to prevent horse water troughs from freezing

Which of the following situations is an example of a social risk that is associated with starting a new business:

adam is working 14 hours a day at his new company and is not spending time w friends

Which of the following factors is associated with innovative organizations:

adaptability

Why has enterprise risk management developed?

an increasingly diverse array of risks

Which of the following presents the first three steps in the accounting cycle in the correct order:

analyze, journalize, post

One of the benefits to the business of an effective employee selection procedure is a(n)

appropriate match of employees to jobs

Which of the following equations should employees know when they are verifying the accuracy of a business's balance sheet:

assets = liabilities + owner's equity

A risk management program helps __________ risk, which makes it easier to organize and handle them.

categorize

Antonio has been tasked with helping the accounting staff at his company make the transition to a new recordkeeping software. He has been instructed to facilitate training sessions, answer employee questions, and show the staff how the new software will help make their jobs easier. Antonio is performing __________ management.

change

Businesses that obtain credit from banks usually are required to provide acceptable

collateral

Which of the following are components generally included in a company's business plan:

company description, financial plan, marketing plan

Bernard's business is more successful than his competitors' because he is innovative, which gives him a(n) __________ advantage.

competitive

Luke is reviewing several internal and external reports to compare his company's sales and market share in relation to those of other companies in the industry. What type of business analysis is Luke conducting?

competitive

Which of the following is an example of a tangible item that can be sold:

computer

Which of the following plans includes procedures for dealing with events that threaten to shut down business operations for an extended period of time:

continuity plan

Service contract A costs $1,500 yearly and includes 12 service calls each year. Service contract B costs $600 yearly and charges $70 per call up to 12 calls each year. Which contract is less expensive and by what amount?

contract B by $60

A fast-food company offers burgers, chicken nuggets, pizza, and french fries. Eventually, the company realizes that the pizzas are not profitable and decides to stop selling them. Which product-mix strategy is the company using?

contraction

Customer services that all retailers should provide include

convenient store hours and receipts for purchases

An important activity performed by a business's public relations staff is

crisis management

The CEO of a medium-sized business asked the top five executives to each prepare a sales forecast for the upcoming year. The forecasts were then averaged together to get the composite forecast. What method of forecasting was used?

jury of executive opinion

One factor that an entrepreneur should consider when assessing a venture opportunity is whether it will

lead to more opportunities

When analyzing market potential, businesses often look at consumer psychographic factors, such as personality characteristics and

lifestyles

Running out of inventory can result in

lost sales

When a business seeks to establish a budget or make major business decisions, what type of accounting does it use?

managerial accounting

Who is usually responsible for developing and promoting an ethical atmosphere in a business?

managers

The marketing function that includes creating strategies to attract the target customer to a business is

market planning

Businesses need a great deal of information to make effective decisions and solve specific problems. This information is usually obtained through

marketing research

Your target market is "poor" college students, so you base your unique selling proposition (USP) on value pricing. This is an example of a USP that is

meaningful to the customer

Performance standards should be

measurable

A business process change would likely be required if a company

merges with another company

When a supervisor must take disciplinary action, the supervisor should adopt a __________ attitude.

nonjudgemental

Which of the following would be most useful to a business that is evaluating customer experience:

online customer reviews

What type of information about employees do most businesses maintain in their personnel records?

past work experience

Pat's Pizza Place has introduced a new, low-fat pizza crust. In its advertising, management not only describes how tasty the crust is, but it also tells readers that the crust is low-fat and healthy. Pat's Pizza Place is using which of the following promotional communication characteristics:

persuasive

When an advertiser sends postage-paid sweepstakes entry forms to individuals, the advertiser is using __________ direct mail advertising.

persuasive

Planning the quantities to produce is an important part of production planning because it helps

prevent losses to the business

The determination of an exchange price acceptable to both the buyer and the seller of a product is called

pricing

Evan does not want the legal obligation of repaying a loan and is willing to share profits with others. Which of the following options is Evan most likely to select to fund a new venture:

private equity

A farmer with a produce stand in the yard is an example of a __________ distribution channel.

producer to consumer

Which of the following is a factor that new businesses consider when conducting an analysis of competitors in a specific market:

product quality and price

The primary cost factors that marketers must consider when developing a direct advertising campaign include list acquisition, delivery, and

production

Which of the following is not a factor that affects selling price:

profit control

Porter said to the group, "If we agree to proceed with this plan, the company's profitability will increase substantially. Because the company will be saving a lot of money, we are more likely to receive a higher pay increase next year." Porter is persuading the group members by

promoting benefits

Ben recently purchased a cell phone. The manufacturer provided a form and a special code with the phone's packaging. Ben completed the form, copied his sales receipt, and mailed these items back to the manufacturer along with the part of the packaging that contained the special code. Within six weeks, Ben received a $50 check from the phone manufacturer. What type of sales-promotion technique was used?

rebate

How does supply chain management increase customer satisfaction?

reduces the time it takes for goods to reach consumers

One reason why creditors review a business's income statement is to decide if the business will be able to

repay a loan

Which of the following techniques is the best example of leveraging existing business relationships:

sending holiday cards to clients

Corporate governance is primarily concerned with __________ desires.

stakeholder

Small-business owners often obtain ideas for new venture opportunities when they

talk with their customers and vendors

A purpose of market identification is to focus the marketer's selling efforts on the __________ market.

target

Because the MBC Company has one location that services the eastern part of the country and another location that services the western part of the country, the company's work flow is organized by

territory

A business should consider the impact that changes in the environment will have on the business's marketing mix because

the business can change its marketing mix

Which of the following statements about feasibility studies is true:

the feasibility study is completed before the business plan is developed

Which of the following attitudes should an entrepreneur have about new technological developments:

the impact of new technologies should be evaluated

Which of the following is a true statement regarding operating costs:

they are not directly related to production

A small restaurant wants to expand, but first it needs to raise funds. John wants to raise capital through debt financing, but his partner, Damien, isn't sure that's a good idea. What is one downside of debt financing that Damien could cite to prove his point to John?

they will have to pay interest on the borrowed amount

An important consideration when coordinating sequential tasks with team members is

timing

Why is it important for businesses to obtain marketing information about economic conditions, political systems, and technological changes throughout the world?

to remain competitve

Economies of scale are highly dependent on average

total cost

Le' Grand Hotel experienced record profits and chose to reinvest those profits back into the hotel for a major remodeling project. Where would these retained earnings be represented on a balance sheet?

under stockholders' equity

Which of the following is an example of an operating expense for a business:

utilities

Which of the following is an example of a safety procedure that a business might require its employees to follow:

wear protective headgear when working in hazardous areas

One of the objectives in a business's marketing plan is to increase sales by 15% by reaching more customers. What dollar amount is 15% if the business currently has 250 customers who each spend $10,000 per year?

375000

How does a business's gross profit compare to the industry standard of 30% if it has annual sales of $400,000 and cost of goods sold is $260,000?

5% higher

Pete is preparing a cash flow statement for his new business. If the startup costs are $27,645 and he has $36,200 cash, how much cash is available for Pete to operate the business?

8,555

Which of the following causes the greatest number of cultural sensitivity issues:

Communication

After being fired from his job, Jack wrote blog posts in which he criticized his former company and all of its employees. He made many negative comments, most of which were untrue. What tort is Jack committing?

Defamation

A business owner who prefers to maintain complete control of all business activities might consider structuring the venture as a(n)

Sole Proprietorship

Which of the following business activities is most likely to impact an organization's governance structures:

borrowing money from the bank

One tool a business can use to control expenses is a(n)

budget

A top-level executive is removed from his position on the Golden Ray Corporation's board of directors due to a personal scandal. The board then releases a detailed, professional statement to its stakeholders so they are aware of the situation. By doing this, Golden Ray Corporation is

demonstrating transparency

Which of the following questions would Allison ask herself when deciding if she should hire an assistant for her growing business:

does the workload require a fulltime or parttime employee

Which of the following phrases is most likely to be listed in an official job description:

edit company newsletter

What is a factor that a growing business might consider when determining hiring needs?

employee to customer ratio

One reason that an excellent business vision is general rather than specific is that

everyone must relate to it

Although hiring a highly skilled employee is an added expense, a business owner benefits because the employee's activities increase the firm's overall productivity based on his/her

expertise

When Deanna, a small-business owner, allocates 6% of her company's profit to product development, she is investing which type of resource:

financial

Gianna is attempting to build a strategic relationship with Nico, who is an influential member of the local business community. What is one technique Gianna could use to build the relationship?

finding a shared vision

When employees demonstrate adaptability, they are able to be

flexible

Channels of distribution benefit businesses by

getting their products to consumers more efficiently

The best way to evaluate the channel members in an international supply chain is often by using a(n)

global industry benchmarking system

Which of the following must occur for supply chain management to be successful:

goods and communication should flow both ways

Which of the following is a specification that a business might establish for selecting spreadsheet software programs:

graphically display financial information

The ultimate purpose of preparing a long, complex, business report is usually to

help with major decisions

Which of the following is an example of a brand promise:

henderson photography

Stress and fatigue are __________ factors that can affect business process design.

human

Company B's management has determined that it must downsize. Three persons in the customer service department will lose their jobs. Which of the following records can management use to help them determine which employees to keep:

human resources records

For the strategy of conducting customer surveys, with tactics including contacting customers and tabulating survey results, which of the following is the goal:

improving this year's customer satisfaction by 7% over last year's ratings

Trent was reviewing a business record that did not reflect updated information. The quality of the business record was compromised because it was

inaccurate

One-time startup costs often include __________ fees

incorporation

Which of the following is an intangible benefit that might be included in a cost-benefit analysis:

increased convenience

Which of the following statements is true about a mixed economy:

individuals and businesses are the primary econ decision makers and the govt regulates the system

Which of the following statements regarding international trade is true:

internet-based companies can easily become involved in international trade

Which of the following is a true statement about information:

it is data put into a useful form