Entrepreneurship II Final Exam Review

Which of the following best describes corporate social responsibility

Giving back to the community through charitable efforts

What is most likely to occur when a business exhibits ethical behavior by being fair and honest?

Goodwill

Why is it a bad idea to solicit fake reviews for a product or service?

If customers realize the reviews are fake, they will lose trust in the company.

Why is production important to businesses?

It creates goods and services businesses can sell.

Why is it necessary to understand customers when branding?

It helps the business to make lasting connections with customers.

Which of the following describes the matrix organizational structure:

It is a combination of two other organizational structures.

Which of the following is a benefit of using the functional organizational structure:

It reduces the duplication of certain activities.

Which of the following is a disadvantage of the matrix organizational structure:

It violates the unity of command principle.

In which section of the business plan would you find evidence of customer interest in a new product?

Market analysis

Which of the following has a direct impact on a manager's span of control:

Number of subordinates

What is a method that managers can use to motivate employees?

Offering performance-based financial rewards

A business makes sure that its warranties, rebates, and customer satisfaction surveys clearly communicate its brand's core values to its customers. What type of touch point is the business working on in this example?

Post-purchase

Where in a business plan can you find out how the business intends to handle public relations?

Strategy and implementation

What part of a business plan lists all of the document's sections with their page numbers?

Table of contents

Why should a small business that takes advantage of the Internet as a marketing tool make sure its brand stands out and connects with customers?

The Internet is fast-paced and features a wealth of information.

Which of the following is a true statement about production activities:

They vary depending on the product being created.

True or false: Certain industries are more sensitive to specific environmental changes than others.

True; some environmental factors have a greater impact on certain industries

Which of the following is a statement that is likely to be found in a small business's brand promise:

We will provide you with the best service possible.

To reduce the chance of investigations and orders to cease production, businesses should

adhere to government regulations.

When an entrepreneur makes unethical product decisions, s/he is more likely to

arm customers through negligence.

One way to maximize the corporate branding process and keep the brand in employees' and customers' minds is to place __________ throughout the workplace.

brand cues

Colors, logos, and images are all elements that make up a company's

brand identity.

Brandy and her two business partners understand the importance of corporate branding. Prior to opening their handmade jewelry shop, they imagined what kind of person their business would be if it were alive. Through this exercise, Brandy and her two business partners developed a __________ for their business.

brand personality

A health-food company believes in customer satisfaction and cares about providing customers with healthy, high-quality food. These beliefs are known as

brand values.

One of the benefits of production to consumers is that production

creates form utility.

For a business to adapt to changing markets, it is important that it develops an internal environment that encourages

creativity

All businesses have brands because they all have

customers with impressions and feelings.

One way that the productivity of a business can be measured is by

dividing the dollar value of total sales by the costs of making those sales.

You decide not to take a certain action because you know it's the wrong thing to do. You have made this decision based on your

ethics

The part of the business plan that discusses where funding for specific projects will come from is called the

financial plan.

Amie talks to customers and suppliers from all over the world on a daily basis. Her company's involvement with people in so many different countries is due to the trend of

globalization

Entrepreneurs that act ethically are less likely to

harm their customers.

A business's president or owner can be the brand champion by

helping employees understand how to demonstrate the brand in their jobs

Internal branding is known to help businesses create company loyalty and

increase employee satisfaction.

A positive effect that productivity has on a business is helping it to

increase sales and profits.

Economic factors can affect a business's operations by

increasing or decreasing costs.

The specific resources used in a company's production are called

inputs

Businesses should practice good ethics because it

is the right thing to do.

Adapting to today's markets usually requires a business to

keep up with technological changes.

The amount of teamwork included in an organizational design is often referred to as

lateral relations.

"Cheating the system" in entrepreneurship often leads to

legal trouble.

The Target bullseye and the McDonald's golden arches are examples of

logos

Some people believe that a business's only true ethical obligation is to

make money.

One internal factor that affects the business environment is

management style.

Understanding business ethics can be difficult since

many people aren't sure how to behave ethically.

Bryce recently hired his good friend Tonya to work for his new startup company, even though she had fewer qualifications than some of the other candidates he interviewed. This is an example of

nepotism

A brand describes itself as funny, outspoken, and young. This is the company's brand

personality

A large tech company donates a portion of its proceeds to charity. This is an example of __________ responsibility.

philanthropic

Since Alana's company will build a new facility next year, she should write a business plan to

prepare for an expansion.

The amount and value of outputs produced from set amounts of resources are known as

productivity.

To provide transparency for investors and customers, entrepreneurs should

separate their business and personal finances.

Jodi needs $10,000 per month to operate her photography business. Last month, she made $13,000. The extra $3,000 are called

slack resources.

A company produces only one type of shoe, since this is the product it is best able to produce with its resources. This is an example of

specialization.

Keri works as a public relations consultant for a large corporation. She reviews issues and makes recommendations to managers. Keri has __________ authority.

staff

Employees who are paid fairly for a job well done are more likely to

stay engaged in their jobs and their company.

A brand should be developed in a way that will capitalize on the small business's

strengths

When branding, business owners should consider the business's core values to be

the "shoulds," or what the business stands for.

A well-planned organizational design helps a business to better compete because

the business is more productive.

Within a startup business or young company, the primary responsibility for acting ethically falls to

the entrepreneur.

Joe's Pizza accidentally used a logo for its business that had already been claimed by another company. This is an example of

trademark infringement.

What actions are consumers most likely to take when the economy is poor?

Restrain their spending

Businesses that are built on strong ethical principles are more likely to

avoid legal trouble.

Maximizing long-term profitability, promoting the health and well-being of the community, and preserving the environment are all goals of

business sustainability.

Depending on the circumstances, stealing someone else's idea and passing it off as your own may constitute

copyright infringement.

Why should a business practice good ethics?

An ethical business contributes toward its own success.

How often should a small-business owner talk to customers and employees about the effectiveness of the business's brand?

As often as possible

which of the following discusses how a company is intended to work in the future:

Business plan

Who should share a company's brand values?

Everyone in the company

What kind of conversion process is being used in an automated assembly line that produces soft drinks?

Capital-intensive

Which part of brand building involves telling the brand story?

Communicating the brand

What characteristic has the globalization trend made it necessary for adaptable organizations to display?

Cultural intelligence

What type of divisional structure is most appropriate for a company that sells lumber products to home builders, home-improvement retailers, retail display-case manufacturers, and furniture producers?

Customer type

Which of the following is an example of a governmental regulatory agency:

Federal Aviation Administration (FAA)

In what way can a start-up business benefit from writing a business plan?

Define managers' roles

Why is it so important for startup companies to maintain happy, engaged employees

Employees have a large impact on the success of a business.