Introduction to Business - Final

International accounting standards:

do not exist

A small company that teaches executives relevant customs and business practices when working in Japan had $70,000 worth of inventory on January 1, 2018, and it had $50,000 worth of inventory on December 31, 2018. If its cost of services provided for that period was $30,000, and its net profit was $90,000, what was its inventory to turnover ratio?

2 times

Which of the following statements about the interaction of demand and supply is true?

At prices below equilibrium, demand exceeds supply.

When Shawn Carter was hired as a public relations advisor to the CEO of a Fortune 500 company, he welcomed the help he received from Jonathan Burks, a senior manager. Burks was able to show Carter the places where trouble was likely to occur, the likes and dislikes of the CEO, and how to do the best job possible. Which of the following statements describes what was going on in this situation?

Burks was assuming the role of a mentor.

A mechanistic organization has:

centralized decision making

Bo Katan pays his rent and utility bills each month by writing checks. Katan is using a _____ account.

demand deposit

There are numerous office supplies manufacturers. U.S.-based Esselte concentrates on selling filing products and desktop products such as staplers and pen sets. Because the Esselte brand is recognized as an innovative leader in the development of filing products and desktop items, the company can be said to have a(n):

differential competitive advantage

When The Bank of Arendelle County borrows funds from the Federal Reserve; the rate the Fed charges the commercial bank is called the _____ rate.

discount

American Pet Pro purchases pet grooming supplies from various manufacturers, sorts them, and resells them to retailers. American Pet Pro is a(n) _____ wholesaler.

merchant

When Auli'i Cravalho wanted to learn to sail, but she could find no one to teach her because men were the ones who sailed, and women were their crew. She finally convinced someone to teach her to sail, and after mastering sailing, she started an all-woman sailing school called Womanship. Cravalho started small and plans to stay small. She would be correctly called a(n):

micropreneur

Like many other companies, Robert Mondavi Winery uses _____ to systematically compare the actual performance of each employee with his or her expected performance.

performance appraisals

The sporting goods store sold $75,000 worth of merchandise in June. The retailer gave no discounts and had no returns. Which of the following statements accurately describes the information seen on the company's income statement?

Gross sales equal net sales.

The owner of Mercury Appraisal Company held a ribbon-cutting event when she opened her new business. She invited city dignitaries, representatives from all the news media, and anyone who might have need of her services to the event. The goal of his promotion was most likely to:

create awareness

Blackwell Investments specializes in acting as an intermediary in taking companies public. This financial middleman is an example of a(n):

investment banker

As the Toronto-based Four Seasons hotel chain remodels an existing hotel in Mumbai to bring it to the five-star hotel's exacting standards, it is building a magnificent revolving restaurant overlooking the Arabian Sea at World. The restaurant structure is an example of a(n):

capital expenditure

Haley Optics manufactures lens used in cameras, binoculars, and scientific equipment. It had sales of $300,000 during the last quarter. Its gross profit sold was $120,000. On an income statement, an accountant would classify the remaining $180,000 as:

cost of goods sold

Synergy Oil and Gas builds oil-well drilling platforms to customer and government specifications. These platforms can cost as much as $1 billion. Synergy works on one platform at a time, and when it is finished, moves its crew to a new project. Synergy engages in:

customization

Keshaun's Kite Shack operates on the Florida beaches during the tourist season. Last year, Keshaun sold $25,000 worth of kites. His cost of goods was $7,000, and he paid himself a salary of $20,000. On an income statement, Keshaun's business would have a(n):

net loss

What is the primary difference between a good and a service?

A good is tangible, and a service is intangible.

Which of the following is an example of an intangible asset for a manufacturer of padlocks?

a patent on titanium lock mechanism

Grainger Distribution Company sold Long Electronics ten circuit breakers for $179.00 each. Long Electronics will be allowed thirty days to pay the bill. Grainger will carry the $1790.00 on its books as a(n):

account receivable

In which of the following industries are you most likely to find factoring being used?

appliance industry

Levi Strauss was strongly praised when it announced it was leaving China in 1993 because of the country's poor human rights record. However, China is also an inexpensive place to manufacture clothing, and in spite of its announcement, Levi did not stop making clothing in China. What type of facility location factor was most likely instrumental in Levi deciding to continue operating its facility in China?

availability of production inputs

The governor of New York that he has directed the state's Division of Criminal Justice Services to gather DNA from the broadest range of convicted criminals permitted under current law. This will result in the collection of as many as 40,000 DNA profiles. The additional DNA profiles may be obtained as a condition of release on parole or probation, as a condition of participation in the Department of Correctional Services' temporary release programs, and as a condition of a plea bargain. A(n) _____ will be used to store, maintain, and acquire data from these records.

database management system

If a manager needs a reporting system that provides the ability to ask "what if" questions, he or she would probably install a(n) _____ system.

decision support

Since Donna Meagle was hired in the marketing department of a consumer products manufacturer, she has worked in its public relations department, she has worked in its advertising department, and she has worked to help design collateral sales material and point-of-purchase displays. Next week she will go out on the road as a salesperson. What method of training is Meagle's employer using?

job rotation

Alyssa Greene owns a restaurant in Edgewater, Indiana. She has arranged a business loan with the bank where she has her business account. The terms of the loan allow her to borrow up to $13,500 within the next year if the bank has funds available to lend; she must pay interest only on the unpaid loan balance. Greene has arranged a:

line of credit

Mike and Ike, the fruit-flavored chewy candies, needed a major facelift. The brand had a small but loyal core of "munchers." A relatively small brand, it needed visibility to take on share leaders like Starburst and Skittles. The company changed its packaging and developed contests all geared to 12- to 17-year-olds. The makers of Mike and Ike have modified its _____ strategies.

product and promotion

GTE modified its telephone operations by creating "customer care centers." The purpose of this change was to identify and abandon outdated rules and fundamental assumptions and act as if it were creating a new company more in line with the needs of today's customers. GTE was using a new concept in business called:

reengineering

In 2006, The Home Depot launched its first consumer and business rewards credit cards. The Home Depot Rewards MasterCard and The Home Depot Business Rewards MasterCard allows consumers and business owners earn rewards for everyday purchases. The Home Depot is engaged in:

relationship marketing

A manufacturing company in which industrial engineers have maximized efficiency by determining the best way to perform every task from tightening a bolt to operating a forklift would be illustrative of:

scientific management

Rashida's Diner was a small restaurant that was a popular hangout for many Pawnee College students, but because of the owner's inability to make the bathroom stalls handicapped accessible for the one wheel-chair student on campus, it was forced to close down. The belief that it was morally wrong to deprive the majority of the people of this experience is an expression of the philosophy associated with:

utilitarianism

Naveen Facilier monitors the quality of staplers manufactured under the brand name Bostitch. If a stapler doesn't meet the standards that are agreed upon, an employee in his department puts the stapler in a reject pile. What function is Facilier performing?

Controlling

In a survey of middle-level managers in service industries, a majority stated that employees have an inherent distrust of managers and will respond to instructions only if they perceive their treatment to be fair. This statement indicates the managers would be most successful using the _____ to motivate their employees.

equity theory

Last year, Agrabah exported $95.5 billion and imported products valued at $79.8 billion. Agrabah had a(n):

favorable balance of trade

Dwayne Johnson is a recent college graduate who found himself in debt as a result of credit card expenditures and in need of dependable transportation. Johnson recently purchased a used motorcycle from Speed Cycles. In financing the cycle, Johnson found that he would be making payments to Beneficial Corp., a company that deals in poor credit risks and short-term loans. Johnson was dealing with a:

finance company

A German company specializes in building laboratory rooms for handling dangerous viruses and bacteria. Each room is designed to have a completely separate life support system that allows the users to examine and identify the viruses and bacteria without contaminating any other area. What type of a layout would be used to construct such a room?

fixed-position

Disney World is the epitome of customer service and empowerment. Empowerment is a religion there. Employees are thoroughly trained and then told that they have the authority to do whatever is necessary to deal with problems on the spot in order to make customers happy. In fact, management interference is discouraged. Based on this information, you know that Disney relies on _____ theory to motivate its employees.

goal-setting

Amir Khalib wants to open a store where he sells nothing but antique architectural features that he can salvage from old houses being torn down to make way for progress. He has an eye for the kind of doors, windows, mantels, and so forth that decorators want, but he does not have all the funding he needs to get started. He has invited his parents to invest $40,000 in the enterprise. He has told them that if they do invest, they would have liabilities in the firm equal to but no greater than their investment. Khalib is trying to get them to form a _____ with him.

limited partnership

At Samaritan Medical Center (SMC) in Watertown, N.Y., care providers needed to continuously monitor patients' vital signs as staff moved them from the emergency department to radiology and other hospital areas. The hospital administrators decided to use a(n) _____, a cost-effective way to connect the monitoring devices and to prioritize the critical data that the devices were gathering. A nurse sitting at a terminal knows immediately if there is a problem.

local area network