Exam 1 Study q's

_____ is a management tool that explicitly shows how a firm will acquire and use the resources needed to achieve its goals over a specific time period. A. Budgeting B. Investing C. Auditing D. Trading

A. Budgeting

e primary reason people choose to become entrepreneurs is to: A. earn more money. B. avoid uncertainty. C. develop evolutionary business models. D. avoid difficult challenges.

A. Earn more money

Which of the following communication channels should ideally be used when you must communicate lengthy or detailed uncontroversial information? A. Memos B. Voice mail C. In-person presentation D. Telephone conversation

A. Memos

Which of the following statements is true of funding options for small businesses? A. Only a tiny fraction of new businesses receive any venture capital money. B. The U.S. Small Business Administration gives free money to start-up businesses. C. Only 40% of new business owners launch with commercial loans. D. Angel investors invest in start-ups without requiring a share of ownership.

A. Only a tiny fraction of new businesses receive any venture capital money

Which of the following statements is true of public accounting firms? A. They must be independent of the companies they are auditing. B. They have strong associations with the companies they are auditing. C. They are not authorized to audit publicly traded companies. D. They can only audit companies that are solely in the private sector.

A. They must be independent of the companies they are auditing

_________ is created when your customers believe that your product has a better relationship between the cost and the benefits than any competitor. A. Value B. Brand equity C. Dissonance D. Product parity

A. Value

Eduardo's boutique specializes in biodegradable umbrellas and bamboo clothing. Eduardo actively promotes the ecological benefits of his products to attract the consumer market that makes purchase decisions based on their convictions. Eduardo's marketing approach is referred to as green marketing. A. True B. False

A. true

As a marketing executive, Angelina is responsible for environmental scanning, the goal of which is to: A. deliver products to the right people, in the right quantities, at the right time, in the right place. B. continually collect information from a wide range of sources in an effort to understand market conditions. C. deliver customer value through fair prices relative to the benefits of a product. D. understand how people act when they are buying, using, and discarding goods and services for their own personal consumption.

B

_____ is a system for identifying, measuring, and communicating reporting economic information about the financial transactions that affect an organization. A. Budgeting B. Accounting C. Banking D. Financing

B. Accounting.

The _____ reports the financial position of a firm by identifying and reporting the value of the firm's assets, liabilities, and owners' equity. A. statement of retained earnings B. balance sheet C. statement of cash flows D. profit and loss statement

B. Balance sheet

Angel investors are companies that invest in start-up business with a high growth potential in exchange for a share of ownership. A. True B. False

B. False- INDIVIDUALS not companies!

A study cited in The Wall Street Journal has suggested that while nonverbal communication is important, it is verbal communication that conveys the most meaning to the listener. A. True B. False

B. False- Non-verbal is taken as less bullshitty

Starting your own business is a guaranteed way to achieve financial success. A. True B. False

B. False- Very risky!

Which of the following is a threat that a small business is most likely to face? A. Incompetent customer service B. High risk of failure C. High overhead costs D. Unavailability of technology

B. High risk of failure

One way to improve listening skills is by: A. speaking the moment the person stops. B. taking notes to help concentration. C. reviewing notes to check for missing points. D. interrupting the speaker often for clarification.

B. Taking notes to help concentrate

The _____ is a financial statement that reports the revenues, expenses, and net income or loss that resulted from a firm's operations over an accounting period. A. balance sheet B. income statement C. statement of cash flows D. cash budget

B. income statement

Which of the following is a characteristic of a well-chosen target market? A. The market should consist of customers of all ages. B. The market size must be very small, and contain people willing to spend only as much as the cost of manufacturing the product. C. The market must be reachable through channels that a business can afford. D. The market should have as many competitors as possible.

C

There are three kinds of basic financial statements that are prepared in financial accounting are: A. statement of debts, letter of credit, and articles of incorporation. B. comfort letter, master budget, and credit statement. C. balance sheet, income statement, and statement of cash flows. D. pro forma report, request for proposal, and articles of incorporation.

C. Balance sheet, income statement, and statement of cashflows

Loren LLC is a small bicycle store that competes effectively with much larger companies as its focus lies exclusively on selling bicycles for senior citizens and patients with orthopedic ailments. The company has been successful as it has: A. worked to undercut larger competitors. B. attracted the best talent in the bicycle market. C. exploited a small but profitable market niche. D. acquired a patent for its bicycles.

C. Exploited a small but profitable market niche

A(n) _____ should be used to deliver an important message to many people at the same time and experience the immediate response of the receivers of the message. A. voice mail B. mass email C. in-person presentation D. instant message

C. In-person presentation

______________ is a federal agency that provides aid, counsel, assistance and works to protect the interests of small businesses A. Small Business Development Centers B. Service Corps of Retired Executives C. Small Business Administration D. Small Business Association

C. Small Biz administration

Which of the following statements is true of business messages? A. The level of education and profession of the receiver is irrelevant when writing a message. B. A message is enriched by the use of jargon, slang, and abbreviations. C. The use of active voice in a message creates deeper trust between the sender and the receiver. D. A message needs to be long and detailed so that the receiver understands it.

C. The use of active voice in a message creates deeper trust between the sender and the receiver

Generally accepted accounting principles (GAAP) is a set of accounting standards that is used in the: A. audit of a company's financial books B. preparation of a company's tax return C. preparation of financial statements D. preparation of organizational budgets

C. preparation of financial statements

Managerial accounting: A. provides managers information about a firm's financial situation on a predetermined schedule. B. provides reports and analysis to external stakeholders to show them the current business state. C. provides reports and analysis to managers to help them make informed business decisions. D. is the branch of accounting that adheres the most strictly to the generally accepted accounting principles.

C. provides reports and analysis to managers to help them make informed business decisions.

Assets refer exclusively to: A. the cash payable by a firm. B. the taxes to be paid by a firm. C. the resources owned by a firm. D. the wages payable by a firm to its employees.

C. the resources owned by a firm

Samuel has an innovative idea for better disposal of garbage. Hence, he starts a business to implement this idea that he believes will succeed. He is also aware of the risks involved in starting the business. However, Samuel puts in only six hours a day into building his business. Some days, he finds it difficult to put in any time at all. Which of the following entrepreneurial characteristics does Samuel lack? A. Confidence B. Self-reliance C. Tolerance of uncertainty D. Energy

D. Energy

The finance and the marketing department of a company are required to collaborate on a project. However, the two teams face significant challenges while trying to communicate with each other because of the use of jargon specific to each department. In the given scenario, which of the following communication barriers do the teams face? A. Physical barriers B. Perceptual barriers C. Organizational barriers D. Language barriers

D. Language barriers

____ is a form of communication that does not involve the use words. A. Active listening B. Dynamic delivery C. Intercultural communication D. Nonverbal communication

D. Nonverbal communication

Which of the following statements is true of communication barriers? A. Most of them are insurmountable. B. Some noise is essential for effective communication. C. They cannot be physical. D. They can arise in a number of different forms.

D. They can arise in a number of different forms

Nelson, the CEO of a company, holds a meeting with the board of directors that includes both male and female members. While addressing them, Nelson is careful to uses phrases such as "Welcome board members" and "Dear Stockholders" instead of using "he" or "she." In this scenario, which of the following biases is Nelson avoiding? A. Age bias B. Ethnicity bias C. Race bias D. Gender bias

D. gender bias

Which of the following statements is true of customer relationship management (CRM)? A. CRM works best when marketers combine marketing communication with one-on-one personalization. B. CRM can be done without collecting, managing, and applying data. C. CRM increases seller-customer relationship by decreasing the value of the seller's product against that of its competitors'. D. CRM removes the possibility of having a limited relationship with one's customers.

A

Dividing the market into smaller groups based on where consumers live is known as _____. A. geographic segmentation B. behavioral segmentation C. industrial segmentation D. attitude segmentation

A.

In an effort to expand its business, music retailer Musow offers DVD rentals online. In order to understand the trends in consumer interest, Musow has decided to evaluate data of the hyperlinks that customers click when they visit its website. This is an example of how a company can obtain _____. A. secondary data B. external data C. integrated data D. primary data

A. secondary data

The blend of marketing strategies for product, price, distribution, and promotion is known as the _____. A. marketing mission B. marketing mix C. marketing plan D. marketing matrix

B

Jake begins his presentation on malnutrition by giving an estimate of the amount of food that is wasted every day in the country. This makes the audience more attentive and responsive throughout Jake's presentation. In this scenario, Jake uses _______ to open his presentation? A. audience involvement B. a startling statistic C. an engaging question D. a simile

B. a startling statistic

In the context of market segmentation, a well-chosen target market should have _____. A. limited accessibility B. an appropriate size C. a nonprofit motive D. intense competition

B. an appropriate size

The percentage of a market controlled by a given marketer is known as _____. A. market trend B. market capitalization C. market share D. market value

C. Market Share

Which of the following is the accounting equation? A. Net Income = Revenue - Expenses B. Assets = Liabilities - Owners' Equity C. Net Income = Revenue + Expenses D. Assets = Liabilities + Owners' Equity

D. Assets = Liabilities + Owner's Equity

A(n) ____________ is a document that describes a business concept, outlines core business objectives, and details strategies and timelines for achieving those objectives. A. SWOT analysis B. small business loan C. executive summary D. business plan

D. Business Plan

_______ is the process of funding ventures by raising money from a large number of investors via the Internet. A. Activity-based costing B. Microloan programing C. Backscratching D. Crowdfunding

D. Crowdfunding