Entrepreneurship Chapter 10?

Beginning inventory + _____________________ - Sales = Ending inventory

Purchases

______________ includes all of the activities involved in obtaining, training, and compensating the employees of a business

staffing

A(n) _______________ is a paper inventory record for a single item

stock card

An organizational ___________________ is a plan that shows how the various jobs in a company relate to one another

structure

The stock _________________ rate is the rate at which the inventory of a product is sold and replaced with new inventory

turn over

Which of the following is NOT generally thought of as part of the organizing function? A. strategic planning B. allocating resources C. assigning tasks D. grouping tasks into department

A. Strategic planning

This type of budget shows the projections of your cash coming in and going out A. cash budget B. production budget C. sales budget D. general budget

A. cash budget

The person in a business who is responsible for planning, organizing, staffing, implementing, and controlling the operations of a business is the A. manager B. intern C. employee D. chairman of the board

A. manager

A management style in which employees are involved in decision making and the manager provides less direction is called A. mixed management B. democratic management C. autocratic management D. authoritative management

B. Democratic management

Outlines for appropriate employee behavior and actions are called A. procedures B. rules C. policies D. mandates

B. Rules

The process of setting standards for the operation of a business and ensuring thosr standards are met is called A. staffing B. controlling C. supervising D. implementing

B. controlling

Which of the following is a strategy a business can use to encourage faster payment A. increase the amount of time your customers have to pay their bills B. offer discounts on bills paid right away C. send shipments early to show customers you trust them D. all of the above strategies will encourage faster payment

B. offer discounts on bills paid right away

This inventory method keeps track of inventory levels on a daily basis A. manual inventory method B. point-of-sale inventory method C. perpetual inventory method D. periodic inventory method

C. Perpetual inventory method

The dollar amount of all sales with any returns subtracted is called A. Gross profit B. net income C. net sales D. gross sales

C. net sales

All of the following are concerns about inventory that managers must address EXCEPT A. not ending up with out of date items B. maintaining a wide assortment of stock C. reducing inventory turnover D. keeping stock levels as low as possible without sacrificing performance or service

C. reducing inventory turnover

T/F - As a business owner, it is important for you never to make exceptions to rules, policies, and procedures once they are established because, if you do, customers and employees will become confused

False

T/F - Increasing payroll can improve a business's cash flow

False

T/F - Rules are more specific than procedures

False

T/F - Rules, policies, procedures, and budgets are important components of strategic planning

False

T/F - The perpetual inventory method keeps track of inventory levels on a weekly basis

False

T/F - Two businesses with the same level of sales and expenses will have the same cash flow

False

T/F - Under no circumstances should the authoritative management style be used in today's modern workplace

False

T/F - the cost of insurance tends to decrease as the value of the inventory insured increases

False

T/F - the three most important elements of a company's financial strength are its revenues, profits, and human resources

False

___________________ sales is the dollar amount of all sales

Gross

what is management style? name three commonly used management styles

How a manager works w/ employees. 1. authoritative 2. democratic 3. mixed

Combining authoritative and democratic management style is called ___________ management

Mixed

T/F - Inspecting products and services to ensure they meet quality standards is an example of the controlling function of management

True

T/F - Offering discounts on bills paid right away is a good way to improve your business's cash receipts

True

T/F - Organizing involves identifying and arranging the work and resources needed to achieve business goals

True

T/F - Successful inventory management involved balancing the costs of inventory with the benefits of having inventory in stock

True

T/F - The minimum amount of merchandise a business wants to keep in inventory is often referred to as the reorder point

True

T/F - even if your business uses the perpetual inventory method, you will need to take a physical inventory at least once or twice annually

True

To ensure accuracy, on what should a cash budget be based?

actual past revenues and expenses

The _____________________ point is the volume of sales that must be made to cover all of the expenses of a business

break even

The costs of holding inventory are known as _______________ costs

carrying

A(n) __________________ manual contains all of the rules, policies, and procedures that a business should follow in order to function effectively

operations

What are two ways you can track inventory? Give a description of both

periodic - physical count at regular intervals perpetual - keeps track on a daily basis with a computer

What is management?

process of achieving goals by effective use of people and resources