Principles of Business Finals Study Guide

A main reason that environmental scanning is important is so that businesses can be aware of A. new products B. potential threats C. competitors' internal environments D. foreign markets

B. potential threats An environmental scan might include information on new products or foreign markets, but these are not the main reasons for conducting it.

Accounting is distinct from finance because its main focus is on A. money management decisions B. record-keeping activities C. administration of assets D. acquisition of funds

B. record-keeping activities Finance, in contrast, focuses on money management decisions. The two main decisions finance focuses on are the administration of assets and the acquisition of funds.

The overall purpose of accounting is to A. maintain accurate reports B. compile the business's expenses C. control the finances of the business D. keep track of sales

C. control the finances of the business An accounting system provides a business with accurate financial information with which it can maintain control of its finances. Keeping track of sales, compiling expenses, and creating reports are all activities of the accounting system that help a business to control its finances.

Operations manager have two main goals in mind-efficiency (keeping costs low) and A. productivity (keeping business running fast) B. legality *keeping the business in good standing with the law) C. effectiveness (keeping customers satisfied) D. Reputation (keeping up the business's good name)

C. effectiveness Operations managers oversee all the processes involved with converting inputs into outputs.

During the Industrial Revolution, the factory system caused A. an increased focus on farming B. a decrease in production levels C. production costs to decrease D. raw material costs to increase

C. production costs to decrease During the Industrial Revolution, the mass production of standardized goods (usually in factories) became common.

One reason why it is important for businesses to identify and respond to current business trends is to A. remain competitive B. control performance C. encourage feedback D. improve motivation

A. remain competitive Current business trends, such as computerization and mass marketing, are constantly changing the way that companies do business.

Which of the following is a marketing activity: A. Leading B. Balancing C. Promoting D. Committing

C. Promoting Promoting is marketing activity, along with planning, pricing, and distributing.

A wholesale distributor would like to track its customers geographically. Which software application would be most effective? A. Word processing B. Spreadsheet C. Internet D. Database

D. Database A database is a collection (or file) of related information about a specific topic. Many businesses collect information about their customers and store this information in computer databases.

In what way might a human resources manager be involved in employee benefits? A. Choosing an employee's vacation days B. Selecting an employee's personal plan options C. Collecting insurance payments from employees D. Determining eligibility and costs of benefits

D. Determining eligibility and costs of benefits A human resources manager might be involved in employee benefits by developing a benefits plan and determining eligibility and costs for employees.

A manager studies the business's previous sales statistics as well as the sales forecast before making purchasing decisions. What type of resource is the manager using? A. Material B. Financial C. Human D. Information

D. Information Information is knowledge, facts, or data, and it is an important resource for a business. Sales statistics are a type of information.

Jeremiah purchases sterling silver necklaces and bracelets from Native American artisans and sells the items to jewelry stores and gift shops. What kind of buyer is Jeremiah? A. Business use B. Retail C. Industrial D. Wholesale

D. Wholesale Jeremiah is a wholesale buyer because he purchases goods from manufacturers to resell to retailers.

One of the benefits of production to consumers is that production A. provides a way to be competitive B. provides a way to earn profits C. makes use of automation D. creates form utility

D. creates form utility Usefulness created by altering or changing the form or shape of a good to make it more useful to the consumer or user.

Appropriate information management saves businesses time and money by A. maintaining yearly raises for employees B. increasing information overload C. increasing "paper trails" D. maintaining higher levels of productivity

D. maintaining higher levels of productivity Employees can be more productive when good information management decreases information overload and"paper trails".