Intro to business final
A corporation is a form of business ownership in which: a business is considered a legal entity that is separate from its owners. a single owner actively manages a company. two or more people act as co-owners of a company. the owners of a business have unlimited liability for any claims against the firm.
a business is considered a legal entity that is separate from its owners.
Which of the following marketing strategies can be best employed for attracting tourists? Place marketing Idea marketing Green marketing People marketing
Place marketing
Which of the following dimensions of a business environment embodies the values, attitudes, customs, and beliefs shared by groups of people? Economic Technological Competitive Social
Social
_____ demands that marketers actively contribute to the needs of the broader community. Social responsibility Ethical consumerism Corporate sustainability Shareholder primacy
Social responsibility
_________ is the rate at which a new product moves from conception to commercialization. Speed-to-market Picketing Hard sell Leveraging
Speed-to-market
_____ refers to the quantity of products that producers are willing to offer for sale at different market prices. Supply Demand Rebate Ration
Supply
Identify a true statement about types of money supply. The M1 money supply includes market accounts and certificates of deposit. The M1 money supply includes all currency plus checking accounts and traveler's checks. The M2 money supply excludes all of M1 supply except certificates of deposit, which last typically less than one year. The M2 money supply excludes paper bills and metal coins.
The M1 money supply includes all currency plus checking accounts and traveler's checks.
Which of the following firms supported by the Small Business Administration (SBA) provides free, comprehensive counseling for small businesses from qualified volunteers? An angel investor The Service Corps of Retired Executives A Small Business Development Center A venture capital firm
The Service Corps of Retired Executives
Which of the following bodies assists entrepreneurs by guaranteeing loans from local commercial lenders? The Federal Reserve The Patent and Trademark Office The Small Business Administration The Department of the Treasury
The Small Business Administration
7. The individuals who are elected by stockholders of a corporation to represent their interests are known as _____. sole proprietors a board of directors limited liability partners conglomerates
a board of directors
1/1 Which of the following is most likely an example of a nonprofit organization? A regional retail store that sells goods at discount prices A community museum that is funded by a society and is free for public use A local newspaper house that sells newspapers at lower prices than its competitors A fashion publication house that issues free subscriptions of its weekly magazines to consumers who are yearly subscribers
A community museum that is funded by a society and is free for public use
In the context of product layers, at the most fundamental level, consumers buy a _________ that satisfies their needs. ( A. core benefit B. implicit benefit C. pure product D. augmented product
A. core benefit
n the context of business market segmentation, _________ refers to dividing the market based on the concentration of customers. A. geography-based segmentation B. customer-based segmentation C. behavior-based segmentation D. product-use-based segmentation
A. geography-based segmentation
Which of the following is a true feature of capitalist economies? Individuals and businesses are restricted from buying and selling machines and buildings. Businesses have the right to keep after-tax profit and spend it however they see fit. Government has absolute power in controlling the economy. All enterprises are owned by the public, under the direction of a strong central government.
Businesses have the right to keep after-tax profit and spend it however they see fit.
Great _________ stems from consumer needs, but it usually includes at least a smidge of creative brilliance. A. product mixing B. brand extension C. product packaging D. line extension
C. product packaging
The economic system of the United States is called _____. Capitalism Communism Socialism Mercantilism
Capitalism
_____ are the inexpensive goods and services that consumers buy frequently with limited consideration and analysis. Shopping products Convenience products Unsought products Specialty products
Convenience products
_________ refers to a period of falling average prices across the economy. Recovery Inflation Deflation Expansion
Deflation
Which of the following is a difference between demographic segmentation and geographic segmentation? Demographic segmentation refers to dividing the market based on how people behave toward various products, whereas geographic segmentation refers to dividing the market based on consumer attitudes, interests, values, and lifestyles. Demographic segmentation refers to dividing the market based on measurable characteristics about people, whereas geographic segmentation refers to dividing the market based on where consumers live. Demographic segmentation refers to dividing the market based on where consumers live, whereas geographic segmentation refers to dividing the market based on how people behave toward various products. Demographic segmentation refers to dividing the market based on consumer attitudes, interests, values, and lifestyles, whereas geographic segmentation refers to dividing the market based on measurable characteristics about people.
Demographic segmentation refers to dividing the market based on measurable characteristics about people, whereas geographic segmentation refers to dividing the market based on where consumers live.
17. Which of the following is an advantage of sole proprietorship? Unlimited financial resources Attraction of talented employees Ease of formation Shared workload and responsibilities
Ease of formation
Which of the following dimensions of a business environment is specifically highlighted when stock markets lose a major portion of their value and when huge, venerable institutions collapse financially? Social Technological Cultural Economic
Economic
Which of the following statements is true of the impact of federal regulations on entrepreneurship? Extensive regulations can impede entrepreneurship. Lack of regulations can stop entrepreneurship from thriving. Entrepreneurs owning small businesses are in favor of strict regulations. Regulations and entrepreneurship are not interdependent.
Extensive regulations can impede entrepreneurship.
Which of the following is one of the characteristics of a well-chosen target market? Good accessibility Limited size Nonprofit motiveIntense competition
Good accessibility
_____ refers to the development and promotion of products with ecological benefits. Mass customization Environmental scanning Social marketing Green marketing
Green marketing
Which of the following is an intimidating difficulty that small businesses face? Obstacles in technology High health insurance costs high overhead costs Lack of customer service
High health insurance costs
. While driving to work, Noel hears an advertisement on the radio about the annual blood donation camp organized by the American Red Cross. The American Red Cross emphasizes the importance of blood donation for the donor and recipient. This is an example of _____ marketing. Place Person Idea Event
Idea
The type of marketing where public and private organizations market thoughts that are meant to change how people think or act is known as _________ marketing. (1pts) People Place Event Idea
Idea
Which of the following is a drawback of buying a franchise? Half of the franchisees of a brand fail in their first year of operations. If the national brand suffers, so does the franchisee. Getting to know the business model may take time. The buyer has to finance the operation of the franchise.
If the national brand suffers, so does the franchisee.
Which of the following statements is true of the marketing era? In the marketing era, skilled artisan workshops were replaced by huge factories. In the marketing era, major businesses focused on refining the production process and creating greater efficiencies. In the marketing era, large-scale entrepreneurs dominated the market and raised the standard of living across the country. In the marketing era, the balance of power shifted away from producers and toward consumers.
In the marketing era, the balance of power shifted away from producers and toward consumers.
1/1 Which of the following occurred during the entrepreneurship era? The balance of power shifted away from producers and toward consumers. Web and digital resources were used to gather detailed information about customers. Industrial titans created enormous wealth and dominated their markets. The standard of living declined at a high rate.
Industrial titans created enormous wealth and dominated their markets.
Identify a true statement about the entrepreneurship era. Industrial titans exploited workers and decimated the environment during the entrepreneurship era. Large-scale entrepreneurs failed to dominate their markets during the entrepreneurship era. During the entrepreneurship era, the overall standard of living across the country declined. During the entrepreneurship era, the balance of power shifted from producers and toward consumers.
Industrial titans exploited workers and decimated the environment during the entrepreneurship era.
Which of the following is a negative feature of socialist economic systems? Excessive private ownership of healthcare and utilities Absence of any tax structure Inefficiencies and corruption Lack of government ownership of key enterprises
Inefficiencies and corruption
Which of the following best describes marketing mix? It is the blend of marketing strategies for product, price, distribution, and promotion. It is the process of continually collecting information from the external marketing environment. It is the marketing objectives and the specific strategies for achieving those objectives. It is the process of dividing potential customers into groups of similar people, or segments.
It is the blend of marketing strategies for product, price, distribution, and promotion.
Which of the following statements is true of microeconomics? It includes the monitoring of national, regional, and global economies. It primarily focuses on smaller economic units. It is the study of a country's overall economic dynamics. It excludes the study of families.
It primarily focuses on smaller economic units.
_________ refers to Federal Reserve decisions that shape the economy by influencing interest rates and the supply of money. Fiscal policy Monetary policy Revenue policy Deficit policy
Monetary policy
_________ are business-like establishments that employ people and produce goods and services with the fundamental goal of contributing to the community rather than generating financial gain. Stock companies Nonprofits Credit unions Parastatals
Nonprofits
Which of the following is an advantage of starting a business from scratch? One does not have to deal with the prior owner's bad decisions and mistakes. The concept, organizational structure, and operating practices are already in place. Relationships with customers, suppliers, and other stakeholders are established .Getting financing and credit is less challenging as investors are previously known.
One does not have to deal with the prior owner's bad decisions and mistakes.
24. Which of the following aspects of a limited partnership differentiates general partners from limited partners? Duration of the partnership in a company Sharing of profits of a company Financial contribution to a company Participation in management of a company
Participation in management of a company
Which of the following is an advantage of general partnerships? Partners can share the burden of running the business. All partners have limited liability. If a partner withdraws, his investment stays with the company. Partnerships have no scope for disagreements.
Partners can share the burden of running the business.
Identify a true statement about the production era. Major businesses focused on shifting the balance of power from producers and toward consumers. The method of "hard sell" was eliminated. The assembly line became standard across major manufacturing industries. Leading-edge firms looked beyond each immediate transaction with a customer and aimed to build a long-term relationships.
The assembly line became standard across major manufacturing industries.
Which of the following is a disadvantage of a sole proprietorship? The owner is personally liable for the debts of the firm. The firm is subject to double taxation. The profits of the firm have to be shared between its members. The costs of formation of the firm are more compared to other business forms.
The owner is personally liable for the debts of the firm.
Which of the following is an advantage of a C corporation? The process of forming a C corporation is simple and inexpensive. The members are entitled to choose the mode of tax treatment. The firm is free from double taxation. The shareholders have limited liability in the firm.
The shareholders have limited liability in the firm.
Identify a true statement about nonprofit organizations. They are usually in the business of financial gain. They employ people and take in revenue .They do not produce goods and services. They are not business-like establishments.
They employ people and take in revenue.
_____ is based on a customer's perception that a product has a better relationship between the cost and the benefits than its competitors. Price Satisfaction Value Loyalty
Value
Too much taxation, an overuse of regulation, and limited choices in the broader business environment are likely to result in: a decrease in entrepreneurial activities .an increase in the level of personal freedom. an increase in global trade. a social crisis.
a decrease in entrepreneurial activities.
A sole proprietorship is a form of business ownership in which: a business is considered a legal entity that is separate from its owners. a single owner actively manages a company. two or more people act as co-owners of a company. the owners of a business are offered limited liability and flexible tax treatment.
a single owner actively manages a company.
The physical good or delivered service that provides a core benefit is called the _____ product. pure actual secondary augmented
actual
Overhead costs for small businesses: tend to be much higher than they are for large businesses as a percentage of total expenses. are about the same as they are for big companies when measured as a percentage of total expenses. are often lower than they are for big companies, giving small businesses a competitive opportunity. primarily arise because small businesses must hire many consultants and advisers from outside.
are often lower than they are for big companies, giving small businesses a competitive opportunity.
The sum of all the money borrowed by the government over the years and not yet repaid is the _____. trade gap subprime loan federal debt monetary devaluation
federal debt
In the growth stage of the product life cycle, competition: is virtually nonexistent. begins as firms introduce their own versions of the product. becomes well-established, with many weaker firms already leaving the market. spurs major price cuts that dramatically cut into profits.
begins as firms introduce their own versions of the product.
The overall value of a brand to an organization—the extra money that consumers will spend to buy that brand—is called _____. brand extension brand mix brand equity brand segment
brand equity
When tax revenue is higher than government expenditures, the government incurs a _____. private debt trade gap budget surplus fiscal deficit
budget surplus
In the introduction stage of the product life cycle, marketing efforts are primarily focused on: building customer awareness of a product. introducing new variations of existing products .defending the franchise with competitive advertising, promotions, and price cuts. protecting the market share of a product from competitors.
building customer awareness of a product.
A _________ is a formal document that describes a business concept and outlines the core business objectives while detailing the strategies and timelines for achieving those objectives. business contract business commission business directory business plan
business plan
A Franchise Disclosure Document: contains information about every aspect of the franchise agreement. is a monthly document compiled by a franchisee providing information about its sales and profits. extensively uses legal jargon to explain the procedures and rules of the franchisor to the franchisee. is a document sent to the franchisor by the franchisee indicating that the franchisee will no longer sell products under the franchisor's name.
contains information about every aspect of the franchise agreement.
The two key phases of a business cycle are: stagflation and hyperinflation. depression and contraction. contraction and expansion. recession and deflation.
contraction and expansion.
1/1 A college has contracted a construction company to build a new bookstore for its college. The heavy machinery and equipment used by the contractor in the construction process is an example of a(n) _____. entrepreneurial resource human resource natural resource capital resource
capital resource
When Lucie tells her friends and family about her idea of starting a beauty salon, she does not receive any support and is told that her business would fail. Despite overwhelming negativity, Lucie is certain of her abilities and knowledge on account of her many years of experience in working in a beauty salon. In this case, Lucie displays the entrepreneurial characteristic of _________. uncertainty avoidance energy myopia confidence
confidence
Red Tide Inc., an electronics manufacturer, merges with Dew Corp., a food brand, to make the firms less susceptible to unfavorable market conditions in any single market. This is an example of a _____ merger. horizontal vertical conglomerate macro
conglomerate
The basic rules governing how a corporation is organized and how it conducts its business are known as _________. corporate bylaws articles of incorporation certificates of organization prospectuses
corporate bylaws
As an artificial person, a _________ can legally engage in virtually any business activity a natural person can pursue, including owning property, entering into binding contracts, and initiating legal actions.
corporation
Small business start-ups are likely to find that getting commercial loans is: difficult because commercial lenders are reluctant to give loans to firms that do not have an established record of successful performance. one of the easiest and most flexible ways of obtaining financing because local bankers are usually eager to establish relationships with new companies. relatively difficult because start-ups require much higher financing costs than other sources. the best way to obtain all the financing they need as lenders usually get an ownership stake in the companies.
difficult because commercial lenders are reluctant to give loans to firms that do not have an established record of successful performance.
Cella, a clothing manufacturer, has licensed Crux Corp. to market and sell its products. This is an example of a _____. divestiture distributorship conglomerate mergerspin-off
distributorship
A capitalist system depends on fair competition among businesses to: be consistent with the goals of socialism.buy and sell government securities. guarantee that every individual business earns profits. drive higher quality and lower prices.
drive higher quality and lower prices.
While raising start-up funds from friends and family, it is: acceptable to not repay them. essential to involve them in company dealings. acceptable to not document the financing. essential to keep the relationship as professional as possible.
essential to keep the relationship as professional as possible
Loren LLC is a small bicycle store that competes effectively with much larger companies since it focuses exclusively on selling bicycles for senior citizens and orthopedic patients. The company has been successful since it has: exploited a small but profitable market niche. worked to undercut larger competitors. attracted the best talent in the bicycle market.acquired a patent for these bicycles.
exploited a small but profitable market niche.
People with an external locus of control: are extremely self-reliant. are more likely to take responsibility for their own failure. feel that they have complete control over their lives. feel buffeted by forces such as random luck.
feel buffeted by forces such as random luck.
The core goal of successful firms is to: create a diverse workforce in an organization. generate long-term profits by delivering unsurpassed value to their customers. meet the rising expectations of workers. ensure free trade of goods and services within local and international markets.
generate long-term profits by delivering unsurpassed value to their customers.
Technological developments over the past two decades, such as the rise of the Internet and email, have: decreased the importance of entrepreneurship in the national economy. given small business owners more flexibility in business management. made it harder for small businesses to compete against large businesses. decreased the independence small businesses have in managing their businesses.
given small business owners more flexibility in business management.
Beany Corp. and Kaffe Inc. are leading producers and distributors of coffee beans and have joined together to become the world's largest distributor of coffee. This is an example of a(n)_____. vertical merger horizontal merger conglomerate merger upward merger
horizontal merger
Children's Campground is a summer program for school children. It advertises that there is one counselor for every four children and that several other highly-trained professionals are on its staff. Its advertisements indicate that Children's Campground relies heavily on its _____ to provide its services. natural resources human resources entrepreneurship capital
human resources
In the context of factors of production, the _________ factor encompasses the physical, intellectual, and creative contributions of everyone who works within an economy. economic natural resources capital human resources
human resources
Huge factories replaced skilled artisan workshops during the _____. industrial revolution entrepreneurship era production era marketing revolution
industrial revolution
A partnership: is a form of business ownership with a single owner who usually actively manages the company. is a form of business ownership in which the business is considered a legal entity that is separate and distinct from its owners. is a form of business ownership that offers both limited liability to its owners and flexible tax treatment. is a voluntary agreement under which two or more people act as co-owners of a business for profit.
is a voluntary agreement under which two or more people act as co-owners of a business for profit.
In the context of factors of production, which of the following is an example of a natural resource? An equipment Land An investment Information
land
When a business brings in less money than it needs to cover expenses, it incurs a _________. deferral loss depreciation tax cut
loss
The primary reason many people become entrepreneurs is to: avoid difficult challenges .avoid risk uncertainty. make more money. revolutionize business models.
make more money.
Peter is starting a new business. He has to develop a marketing strategy by identifying similar characteristics, attributes, and behaviors of the target market, and then group the customers according to these characteristics, attributes, and behaviors. The term used to describe Peter's strategy is: market sharing. customer relationship management. cognitive dissonance. market segmentation.
market segmentation
The _____ is a philosophy that makes customer satisfaction the central focus of an entire organization. marketing concept perceived value customer relationship management market segmentation
marketing concept
During the_____, businesses began to develop brands to help customers understand the differences among various products. industrial revolution entrepreneurship era marketing era relationship era
marketing era
In low-income countries, a high percentage of entrepreneurs are considered _________ entrepreneurs. necessity lifestyle social voluntary
necessity
In an effort to expand its business, music retailer MovNow offers DVD rentals online. In order to spot trends in consumer interest, MovNow has decided to evaluate the data of the hyperlinks that customers click on when they visit its website. This is an example of how a company can obtain _____ data. secondary foreign integrated primary
primary
During the _____, jobs became even more specialized, increasing productivity and lowering costs and prices. entrepreneurship era production era marketing era relationship era
production era
In the context of customer relationship management (CRM), a firm selling a high-ticket product to a small customer base is most likely to: pursue a full partnership with each of its key clients .develop a limited relationship with its customers. implement a soft-sell approach .exclude its customers from the key aspects of the product development process.
pursue a full partnership with each of its key clients.
Fred operates two resorts in the Miami area. His company works hard to develop long-term relationships by calling customers to make sure that they are satisfied with their recent visits to the resorts and with offers to host free. In this case, Fred is most likely using concepts that were popularized during the: entrepreneurship era .production era. relationship era. technology era.
relationship era.
Computers, digital tools, and telecommunications are most likely to be part of the _____ dimension of a business environment. economic social cultural technological
technological
The debt ceiling is: the maximum amount Congress lets the government borrow. the shortfall that occurs when expenses are higher than revenue over a given period of time. the overage that occurs when revenue is higher than expenses over a given period of time. the total amount of money within the national economy.
the maximum amount Congress lets the government borrow.
9. A key reason most sole proprietorships remain relatively small is that: they have limited ability to raise the funds necessary to finance growth .they involve extensive paperwork and incur heavy costs. heavy taxes are levied directly on their earnings as a business. their stockholders would rather receive dividends than have earnings reinvested to finance growth.
they have limited ability to raise the funds necessary to finance growth.
0. Memphis is the owner of a car performance tuning business. As a sole proprietor, any profit he earns is: taxed as the earnings of a sole proprietorship as a business. treated as Memphis's personal income. not subjected to any tax.taxed only when he withdraws the money from a bank.
treated as Memphis's personal income.
Sole proprietors have _________ for the debts of their companies. no liability limited liability unlimited liability shared liability
unlimited liability
Entrepreneurs find new solutions to old problems and develop new products that people didn't even realize they needed. These entrepreneurs are said to have _____. hindsight uncertainty avoidance an external locus of control vision
vision
Which of the following is a similarity between venture capital firms and angel investors? Both invest in start-up companies with high growth potential in exchange for a share of ownership. Both charge very high interest rates and structure loans to be repaid in months rather than years. Both require an entrepreneur to provide a minimum of twenty-five to thirty percent of the start-up costs. Both only finance large corporations that operate in universal and generic markets.
Both invest in start-up companies with high growth potential in exchange for a share of ownership.
Identify a true statement about macroeconomics. It focusses primarily on monitoring the activities of individual businesses. It hardly affects the day-to-day lives of people. It is the study of a country's overall economic dynamics. It has little or no influence on variables such as jobs and taxes.
It is the study of a country's overall economic dynamics.
18. The locals residing near a small chemical factory file a complaint against it for polluting the environment. The owner of the factory learns that if he loses the case, his personal possessions might also be confiscated. Which of the following types of ownership is the factory functioning under? Limited liability company CorporationPartnership Sole proprietorship
Sole proprietorship
Which of the following is a powerful contribution made by small businesses to the U.S. economy? Vitalizing rural towns Powering the stock market Vitalizing inner cities Accounting for all private sector output
Vitalizing inner cities
The nature of work and the work schedule in the animation department of a movie production company differ from that of other departments of the company. Hence, the company decides to branch this department out into a new company by selling the stock to outside investors. In this scenario, the company is using a strategy called a(n): conglomerate merger .acquisition. carve-out. telecommuting.
carve-out.
Analysis of market share is a key to understanding a firm's: social and cultural environment. technological environment .demographic strengths. competitive environment.
competitive environment.
Marketing of raw materials, one of the business product categories, primarily emphasizes: price and service. quantity and brand. customization. product differentiation.
price and service.
Macroeconomics focuses on: the major issues facing the national economy that do not affect individuals. the smaller economic units such as individual consumers and individual businesses operating within an economy. the major issues facing the national economy that may seem abstract but directly affect an individual's day-to-day life .the economics of private companies.
the major issues facing the national economy that may seem abstract but directly affect an individual's day-to-day life
2. A disadvantage of a general partnership is that: there is difficulty in the formation of the company. it involves double taxation for the partners. there is difficulty in withdrawing from the company. their financial base is usually weaker than that of a sole proprietorship.
there is difficulty in withdrawing from the company.