BSN Final

T/F? Purchasing insurance, paying employees, and using supplies are examples of financial transactions.

True

T/F? Revenue is the total amount of money a business takes in during a given period by selling goods and services.

True

T/F? Securities markets represent the financial marketplaces for stocks and bonds.

True

T/F? Some manufacturers sell directly to consumers or businesses rather than relying on marketing intermediaries.

True

Which of the following is consistent with the growth stage of the product life cycle?

high profit levels

In the seven-step B2B selling process, the selection of potential customers is known as:

qualifying

Costas Calendar Company's Statement of Cash Flows showed the following activities for the year ended December 31, 2016: Cash from operating activities $30,000 Cash from investing activities -$15,000 Cash from financing activities -$8,000

$7,000

As a bank loan officer, you are considering a loan application by Peak Performance Sporting Goods. The company has provided you with the following information from its balance sheet: Cash $25,000 Accounts receivable $45,000 Inventory $140,000 Fixed Assets $190,000 Current liabilities $70,000 Long-term liabilities $90,000

3.0

Which of the following statements best describes the current legal interpretation of insider trading?

Anyone who has securities information about a particular firm that is not known by the general public.

__________ marketers include manufacturers, intermediaries, institutions, and the government.

B2B

________ measures the amount of profit earned by a company for each share of outstanding common stock.

Basic earnings per share (basic EPS)

Dewey Dare is a production and operations manager with a clothing manufacturer. He has been looking into a system that will enable his company to take measurements from a customer and program machines to design and produce custom-cut clothes at little additional cost. This type of system is an example of the benefits of:

CAD/CAM

One way to lessen the U.S. government budget deficit is to:

Cut spending

________ refers to the process of dividing organizational functions (sales, production, accounting/bookkeeping) into separate units.

Departmentalization

Which of the following would be considered part of a firm's marketing mix?

Determining the best pricing strategy for a product

___________ are the firm's after tax profits that are distributed to stockholders.

Dividends

Which of the following represents the value of one nation's currency relative to the currencies of another country?

Exchange rate

T/F? A firm's product line refers to all of the different geographic markets in which it sells the same good or service.

False

T/F? A firm's promotion mix consists of its pricing and distribution strategies.

False

T/F? A legal entity with authority to act and have liability separate from its owners is called a partnership.

False

T/F? A major advantage of sole proprietorships is that an owner has limited liability for the debts of his or her business.

False

T/F? A vision is a detailed set of specific steps that a firm must take to achieve its short-run objectives.

False

T/F? Absolute advantage is the basis for most global trade today.

False

T/F? Depending upon the promotional campaign, advertising may include paid and nonpaid forms of nonpersonal communication.

False

T/F? Effectiveness means producing goods and services using the least amount of resources.

False

T/F? Even in their infancy, the main goal of most labor unions was to provide members with increased management power.

False

T/F? Financing is one of the four key functions of management.

False

T/F? If a shortage exists in a market for a good, the price of that good will tend to fall.

False

T/F? Importing is the selling of products to another country.

False

T/F? Leading is the management function of designing the structure of the organization so that everyone can function together.

False

T/F? Money is one of the five factors of production that contribute to the creation of wealth.

False

T/F? Outsourcing means selling goods and services to people in other countries.

False

T/F? Paid vacations and health care insurance are among the benefits provided by the government to entrepreneurs.

False

T/F? Profits of a business include the salaries paid to its employees.

False

T/F? The President of the U.S. is in control of the money supply in the U.S.

False

T/F? The corporation is the most common form of business ownership.

False

T/F? The critical component of a total product offer is always a low price.

False

T/F? The duties and responsibilities of a financial manager are virtually identical to the duties and responsibilities of an accountant.

False

T/F? The focus of the production era was on distribution and advertising.

False

T/F? The main concern of the marketing mix is to please firm's stockholders.

False

T/F? The major benefit of socialism is that it creates strong incentives to work hard and take the risks associated with starting and operating a business.

False

T/F? The proceeds from a secondary market sale of securities go to the corporation whose security is being traded.

False

T/F? Under a closed shop agreement, workers must agree not to join a union in order to keep their jobs.

False

T/F? Under capitalism, the government prohibits people and businesses from competing with each other.

False

T/F? While goals are measurable, objectives are not.

False

T/F? Wholesalers are marketing intermediaries who sell goods or services to ultimate consumers.

False

Which of the following represent an independent agency of the U.S. government that insures bank deposits?

Federal Deposit Insurance Corporation

The organization responsible for conducting monetary policy in the United States is the:

Federal Reserve System

__________ utility is usually provided by producers rather than marketers.

Form

Manny is a production and operations manager who likes to keep track of how various projects are progressing. One of Manny's favorite tools is a bar graph that shows how much work has been completed on the projects that are currently under way and which processes are behind schedule. Manny likes to use a(n):

Gantt chart

Dr. Mo T. Vadar, a professor of psychology at a respected university, is planning a study of the factors that affect the motivation of employees. Dr. Vadar is concerned that the results of his experiments may be misleading because employees in an experimental group tend to behave differently when they know they are being studied. This concern shows that Dr. Vadar is aware of the:

Hawthorne effect

The tendency for people to behave differently when they know they are being studied is known as the:

Hawthorne effect

____________ standards are concerned with the best practices for managing an organization's environmental impacts.

ISO 14000

___________ is a set of international standards for quality management and quality assurance.

ISO 9000

Arborview Plant Science Company has invented a drought resistant grass seed that only needs watering three times each year. In order to expand distribution worldwide, the company whose product produces lush green foliage needs a large amount of funding—fast! The handful of seed scientists that own the company decide to offer shares of stock to general investors. This first-time offering is a(n):

Initial Public Offering (IPO)

Which of the following helps to provide for the smooth flow of money between nations?

International Monetary Fund

__________ refers to the strategy of using borrowed funds to increase the rate of return for stockholders.

Leverage

_________ refers to how quickly an asset can be converted into cash.

Liquidity

When Anna's manager sees her coming through the front door, he is greatly relieved. He knows that the tasks he has planned for the day will not need to be adjusted. Anna's work productivity and performance on the job are very good. Recently, however, her ability to get to work on time has affected her job performance. Anna's supervisor has documented a number of unrelated health issues that have prevented Anna from being at work on time. Which of the following views would Maslow likely share with Anna's supervisor?

Lower-order needs such as physiological needs must be met before higher-order needs.

___________ is the use of a third party to encourage labor and management to continue negotiating in an effort to settle a labor dispute or achieve a mutually acceptable labor-management agreement.

Meditation

The three countries participating in NAFTA are:

Mexico, Canada, and the United States

__________ includes anything that people generally accept as payment for goods and services.

Money

Which of the following would be most helpful to a production manager who wanted to determine the minimum time required to complete a proposed project?

PERT

__________ consists of all the techniques sellers use to persuade consumers to buy their goods and services.

Promotion

Which of the following federal government agencies has responsibility for regulating the various stock exchanges in the U.S.?

SEC

A __________ analysis is used to help companies evaluate their internal strengths and weaknesses, and develop an awareness of external threats and opportunities.

SWOT

_______________ is/are the external and internal circumstances that surround the business.

The business environment

At Groovy Rags, a trendy retail store, manager Eon Forcer doesn't waste any time thinking about whether the employees on his shift get their breaks at a reasonable time. In fact, he claims he is hard pressed to determine which one has "worked hard enough" to even deserve a break. Earlier today, Eon remarked, "I've never met one that likes this job! They're only biding their time and here for the money." Eon's managerial style would be classified as _______.

Theory X

Kendra believes that if she leaves her employees unsupervised for a few minutes they will do nothing but slack off. She is known as the "Dragon Lady" (at least behind her back) for the harsh criticism and punishment she disburses whenever an employee makes an error. Kendra is a __________ manager.

Theory X

At High Stakes International, employees tend to work with little direct supervision since employees are considered trustworthy and committed. Management's expectation for employee creativity is high. The management at High Stakes reflects ____________ attitudes about employees.

Theory Y

While Rachel, a psychology major at the local university, worked frantically at her job at Groovy Rags in anticipation of the regional manager's visit, her department manager Eon Forcer had an interesting word with her: "Don't worry Rachel, when I first started, I made $7.25 an hour too. It gets better!" Rachel shook her head as she reflected on how little Eon knew about what motivated her to seek perfection at this job. As she continued to neatly stack those pocket tees, she thought, "If the regional manager has the same attitude as this guy, I'm looking for another job." Rachel would prefer to work with a ___________ manager.

Theory Y

Which of the following is considered to be a disadvantage of functional departmentalization?

There may be a lack of communication among the different departments.

T/F? A brand name is generally thought of as part of the product.

True

T/F? A favorable balance of trade occurs when the value of a country's exports exceeds the value of its imports.

True

T/F? A firm's promotion mix refers to the combination of different promotional tools used to persuade consumers to participate in an exchange.

True

T/F? A mission statement outlines the fundamental purposes of an organization.

True

T/F? A significant increase in the money supply creates inflationary pressures in the economy.

True

T/F? A union is an employee organization that has the main goal of representing its members in employee-management negotiation concerning job-related issues.

True

T/F? Accounting provides financial information that can be useful to owners, creditors, suppliers, employees, and competitors of an organization.

True

T/F? Accounting provides information about the financial condition and operating performance of a firm.

True

T/F? Agents and brokers and wholesalers are types of marketing intermediaries.

True

T/F? America's business success is largely due to an economic and social climate that allows businesses to operate freely.

True

T/F? Budget preparation is one aspect of managerial accounting.

True

T/F? Businesses and nonprofit organizations often strive to accomplish the same objectives.

True

T/F? Compared to sole proprietorships, an advantage of partnerships is their ability to obtain more financial resources.

True

T/F? Corporations sell a new issuance of securities in the Primary Market.

True

T/F? Demand refers to the quantity of a good that consumers are willing and able to buy at different prices at a specific time.

True

T/F? During the selling era, businesses turned from an emphasis on production to an emphasis on selling.

True

T/F? E-commerce is the buying and selling of goods over the Internet.

True

T/F? Entrepreneurship is one of the five factors of production that contribute to the creation of wealth.

True

T/F? Financial accountants prepare reports for owners, creditors, suppliers, and others outside of the organization.

True

T/F? Firms that specialize in accounting, finance, and management consulting are all part of the service sector.

True

T/F? Goals tend to be broad and focus on the long term while objectives tend to be specific and more short term in their focus.

True

T/F? Inputs to the accounting system include sales documents.

True

T/F? Issuing stock is considered equity financing.

True

T/F? Many micropreneurs are home-based business owners.

True

T/F? Most communist countries today are suffering from severe economic problems.

True

T/F? Operations management converts resources into goods and services.

True

T/F? Placing a product in a location where people will buy it is part of the marketing mix.

True

T/F? Planning involves setting the organizational vision, goals and objectives.

True

T/F? Price, store surroundings, service, and brand name are all elements that consumers evaluate in a total product offer.

True

T/F? Product differentiation is a key to success in monopolistic competition.

True

T/F? Profit is the amount of money a business earns above and beyond what it spends for salaries and other expenses.

True

T/F? Stakeholders include customers, employees, stockholders, suppliers, dealers, bankers, government officials and environmentalists.

True

T/F? Studies about the effects of population growth on the economy are part of macroeconomics.

True

T/F? Technology allows firms to be more responsive to their customers' wants and needs.

True

T/F? The "invisible hand" in Adam Smith's theory turns self-directed gain into social and economic benefits for all.

True

T/F? The Knights of Labor was the first truly national labor organization in the United States.

True

T/F? The United States imports more products and services than any nation in the world.

True

T/F? The business environment refers to the surrounding factors that either help or hinder the development of businesses.

True

T/F? The image created by advertising is part of the total product offer of a product.

True

T/F? The long-term financial forecast plays a crucial part in the company's long-term strategic plan.

True

T/F? The purpose of a division of labor and specialization is to improve an employee's job performance.

True

T/F? The sense of satisfaction you get when you achieve an important goal is an intrinsic reward.

True

T/F? The several product lines that a company offers for sale make up that organization's product mix.

True

T/F? The strength of the U.S. dollar depends on the strength of the U.S. economy relative to the economies of other nations.

True

T/F? Tools, machinery, and buildings are examples of capital resources.

True

T/F? Undercapitalization refers to the problem of insufficient start-up funds.

True

T/F? Wage rates, hours of work, employee benefits, and job rights and seniority are issues covered in a typical negotiated labor-management agreement.

True

T/F? When consumers calculate the value of a product, they look at the benefits and then subtract the cost.

True

T/F?At the equilibrium price, the quantity consumers desire to buy equals the quantity sellers desire to sell.

True

T/F?Managers make decisions about how to use organizational resources to accomplish goals.

True

__________ is the value or want-satisfying ability that is added to products by organizations that make the product more useful or accessible to consumers.

Utility

The __________ primarily provides for the financing of economic development projects throughout the world.

World Bank

Trading in newly issued securities takes place in the:

primary market

The __________ represents the first attempt to establish a truly global mediation center to resolve international trade disputes.

World Trade Organization

Theory ____ assumes that the average person likes work, and has a relatively high degree of imagination and creativity.

Y

Which of the following is an example of a financial transaction?

a firm purchases a fire insurance policy

Herzberg's research found that the factor that ranked highest as a motivator was:

a sense of achievement

When the market price of a good is above its equilibrium value, and all other determinants are unchanged:

a surplus will exist in the market

Marketing intermediaries:

add value that exceeds the cost of their service

Indiana Processing promotes its services through Mechanical Engineers Today, a trade magazine that charges Indiana Processing and other companies $5,000 per page for ______________ to help offset the magazine's publishing costs.

advertising

The purpose of a trial balance is to:

affirm whether the figures in the account ledgers are correct and balanced.

A(n) _________ is one type of marketing intermediary that brings together buyers and sellers and assists in negotiating an exchange, but does not take title to the goods.

agent

Diversification means:

allocating your investment funds to several types of investments.

Megatronics, Inc., obtains computer components from a variety of suppliers and puts them together according to customer specifications to create custom-made computers. This process is an example of:

an assembly process

A grievance is:

an employee's perception that management has not in some way fulfilled a labor contract agreement.

"You never get a second chance to make a good first impression," captures the importance of the __________ step in the selling process.

approach

A(n) _________ occurs when one company buys the property and obligations of another company.

aquisition

Economies of scale:

are achieved when a firm reduces its average cost of production as it produces more.

Resources that a firm owns are called:

assets

The balance sheet is composed of the following types of accounts:

assets, liabilities, and owners equity

__________ involves the review and evaluation of the records that are used to prepare the organization's financial statements.

auditing

Recently, a senior software engineer complained that his boss was always in the command and control mode: "He doesn't trust us to make the right decision!" The boss rarely took the advice of his employees. There were occasions when productivity was hampered because he chose to do things only his way. Referring to leadership styles, this would best be described as:

autocratic

The __________ is an accounting statement that reports the financial condition of a firm at a specific point in time.

balance sheet

The three important financial statements prepared by accountants are:

balance sheet, income statement, and statement of cash flows.

Labor unions and management hope to resolve issues through collective bargaining. Each side comes to the table with a range of options they are willing to consider, some more appealing than others. All options that each will consider fall within the _______________.

bargaining zone

When stock prices decline steadily, investors refer to the market as a ________ market.

bear

According to Maslow, a higher-order need:

becomes a source of motivation after lower-order needs are satisfied.

A _________ represents a long-term debt obligation issued by a corporation or a government.

bond

Which of the following represents a disadvantage of issuing bonds?

bonds increase the firms debt

A __________ is a name, symbol, or design (or combination of these) that identifies the goods or services of one seller or group of sellers and distinguishes them from those of competitors.

brand

__________ is the process used to determine the profitability of a product at various levels of sales.

break-even analysis

If an investor's strategy is: "buy low, and sell high." We could conclude that his optimism regarding future stock price increases indicates that he is:

bullish

One reason limited liability companies have become so popular is that they:

can be taxed either as a corporation or as a partnership, so owners can choose the tax treatment that is most advantageous for their situation.

Which of the following shows a firm's spending plans on fixed assets such as large equipment?

capital budget

When an investor sells a security for more than the purchase price, the investor earns a(n):

capital gain

The social and economic goals of __________ include private ownership of land and business.

capitalism

Carlos is the manager of Oh! Canada Sporting Goods. During the past six months, his cash expenditures have exceeded his cash receipts. Oh! Canada is suffering from a(n) ________ problem.

cash flow

_____________ is the process by which representatives of a union meet with representatives of management to negotiate a contract for workers.

collective bargaining

A __________ is a profit-seeking organization that receives deposits from individuals and corporations and uses some of these deposits to make loans.

commercial bank

Which of the following securities provides the owner the right to vote for the corporate board of directors?

common stock

The economic and political system in which the government owns almost all the major factors of production is called:

communism

The theory of _______________ states that a nation should produce and sell goods to other countries that it produces most efficiently, and buy goods from other nations that they produce more efficiently.

comparative advantage

A(n) _______-based ethics code emphasizes the prevention of unlawful behavior by increasing control and penalizing wrongdoers.

compliance

The two major types of markets are the:

consumer market and business-to-business market

Companies that adopt a pull strategy target their promotional efforts toward:

consumers

Operations managers at Alumax Corporation have found that they can achieve efficient production only by producing very large quantities of aluminum without shutting down the production process. This indicates that Alumax should use a(n) ___________ production process.

continuous

Ho Han has just spent two hours going over quality reports to determine whether his department is meeting quality standards he set for the current month. Ho's efforts are part of the ___________ function of management.

controlling

Vending machines are most often used to sell:

convenience goods

The rate of return a company must earn to meet the demands of its lenders and expectations of its equity holders is called:

cost of capital

__________ are nonprofit, member-owned financial cooperatives that offer a full variety of banking services such as accepting deposits and making loans.

credit unions

When Liberty Industries renegotiated their loan agreement, they borrowed an additional $2 million. The new loan requires Liberty to repay the new amount in nine months. Liberty's activity represents ________ financing.

debt

Acquiring funds through borrowing represents:

debt financing

_______________ means that decision-making authority is delegated to lower-level managers and employees.

decentralized authority

A firm that uses ___________ segmentation divides a market into groups based on age, income, or level of education.

demographic

A good business plan will...

describe all aspects of the business, including product, the target market, the nature of the competition, any financial resources, and the owner's qualifications.

The Six Sigma approach to quality control:

detects potential problems early to prevent their occurrence.

Tactical planning is concerned with:

developing detailed strategies about what is to be done, who is to do it, and how it is to be done.

What is normally considered a disadvantage of the corporate form of business?

double taxation of earnings

___________ means producing items using the least amount of resources.

efficiency

A(n) __________ refers to a complete ban on importing or exporting of products from a specific country.

embargo

A major benefit of socialism is the:

emphasis on social equality

The U.S. government's Immigration Act of 1990:

encouraged entrepreneurs to come to the U.S. through "investor visas."

Brand __________ refers to the loyalty, perceived quality, and emotions people associate with a given brand name.

equity

If a firm sells shares of stock, it is financing with _______.

equity

With plans to build a $50 million theme park, Extreme Entertainment, Inc., intends to finance this project through the sale of additional shares of ownership in their firm. Selling new shares of stock represents ___________ financing.

equity

________ refers to standards of moral behavior.

ethics

Which of the following would be most closely tied to the idea that employee motivation requires that the rewards for completing a task are sufficient to justify the effort?

expectancy theory

Maureen's supervisor was so impressed by her work that he named her the employee of the month. This praise from her supervisor is an example of a(n) _________ reward.

extrinsic

A ________ group consists of a small group of people who meet under the direction of a discussion leader to discuss opinions about an organization, its products, or other issues.

focus

The final step of the selling process involves:

follow-up

When the value of the U.S. dollar increases relative to other currencies:

foreign goods become less expensive to U.S. consumers.

A(n) __________ leader would set objectives and give employees a great deal of freedom to decide for themselves how to accomplish those objectives.

free-rein

At Lifeline Pharmaceuticals, highly regarded research personnel rely on top management to provide strategic direction. Beyond that, researchers work on their own to develop new drugs to satisfy customer needs and company profit objectives. Middle management at Lifeline practice ___________.

free-rein leadership

A bar graph that shows what projects or tasks are in process and how much of each is completed is called a(n):

gantt chart

In a partnership, a(n) __________ partner (owner) actively manages the company and has unlimited liability for claims against the firm.

general

Enterprise zones and investor visas are examples of:

government programs that encourage economic growth through entrepreneurship.

Three important economic indicators of the United States are the unemployment rate, the price indices, and the:

gross domestic product (GDP)

Generally the higher the risk involved in an activity, the ________ the rate of return expected by investors.

higher

The purpose of determining the critical path on a PERT network is to:

identify the sequence of tasks that takes the longest to complete.

When a firm makes use of SWOT analysis, one of its objectives is to:

identify the things it does well as an organization and the things it needs to improve.

A promotional campaign begins by:

identifying a target market

According to Herzberg, a sense of achievement, earned recognition, and interest in the work itself were all:

import motivators

In an effort to protect domestic jobs, some countries will place a limit on the number of certain types of products that can be imported. These limits are called:

import quotas

A firm's ________ reports the profit or loss for the firm over a specified time period.

income statement

Due to more emphasis on empowerment and more talented and better-educated lower-level management, span of control in organizations has _________.

increased

Lean manufacturing ___________ productivity.

increases

A company becomes lean by _________ its capacity to produce high-quality goods, while ___________ its need for resources.

increasing, decreasing

The union movement in the United States was an outgrowth of the economic transition caused by the:

industrial revolution

_____________ refers to a general rise in the price level of goods and services over time.

inflation

The executive summary section of the business plan contains:

information that will capture the attention of bankers and other investors who receive many business plans every day.

A(n) _______-based ethics code defines corporate values; creates a supportive environment, and, stresses shared accountability among employees.

integrity

The cost of a firm borrowing money is called the:

interest rate

Issuing bonds to obtain long-term funds legally compels a firm to pay regular ________ payments and repay the ________ at the maturity date.

intrest, principal

The stages of the product life cycle are:

introduction, growth, maturity, and decline

An organization that has contact people at the top and the chief executive officer at the bottom is known as a(n):

inverted organization

The Small Business Administration defines a small business as a firm that:

is independently owned but not dominant in its industry.

Debts owed by a business are called __________.

liabilities

Keith will graduate from Southern State University this year. He has accumulated $18,000 in student loans during his four years at college. An accountant would classify the loans as:

liabilities

When companies owe money to creditors, suppliers, and others, these outstanding amounts are recorded on the balance sheet as _________.

liabilities

The fundamental accounting equation states: Assets = _________.

liabilities plus owners equity

Granting a foreign company the right to manufacture your product or to use your firm's trademark in return for a fee is called:

licensing

Julio is the owner of Celebration, Inc., a small party supply company. The company provides tents, tables, chairs, and related paraphernalia for wedding, Bar Mitzvah, Bat Mitzvah, graduation, birthday, and other celebratory events. As sales have increased, the organization has hired more personnel and departmentalized to more efficiently handle purchasing, sales, service, and accounting. Everyone is still responsible for achieving company goals. Upon seeing Celebration's organization chart, you agree it uses a _____________.

line organization model

A(n) ___________ occurs when management temporarily closes a business to deny employment to workers.

lockout

If a company secures a three-year bank loan, this is considered _________.

long-term financing

The area of accounting that provides managers inside the organization with information they need to make decisions is called:

managerial accounting

A ____________ is two firms combining to form one company.

merger

Anita is employed as plant manager for Mojo Industries, Incorporated. Though she spends some time performing all management functions, she is particularly concerned with tactical planning and controlling. Anita's position would be classified as part of Mojo's:

middle management

Becca works as a new-product development engineer for a company that makes solar panels for residential and commercial purposes. Her company uses PERT network software for all development projects. As she nears the final month of her timeline for completing a new panel, Becca will focus on those activities that are:

on the critical path of the PERT network

If a union is present in a firm that has a(n) _________ shop arrangement, workers may join the union if they wish, but they are not required to join or pay a union fee in order to keep their jobs.

open

The overall objective of financial planning is to:

optimize the firms profitability

__________ is the management function that involves allocating resources, assigning tasks, and establishing procedures for accomplishing the organizational objectives.

organizing

An investor who purchases stock in a company becomes a(n):

owner

By purchasing stock in Entertainment Today, Veronica has become a(n) ________ the company.

owner of

Through equity financing, stockholders become _________ of the firm.

owners

_______ refers to the value that stockholders or owners have in a company.

owners equity

The balance sheet for Renuvation LLC shows assets totaling $107,000 and liabilities totaling $75,000. Which of the following statements is correct?

owners equity equals $32,000

At Holyfield Chemicals, department heads usually make decisions after meeting with employees and seeking their ideas and suggestions. Department heads at Holyfield Chemicals make extensive use of the ___________ style of leadership.

participative

Which of the following represents a pricing strategy that establishes a low price in hopes of attracting a great number of customers and discouraging competitors?

penetration strategy

________ refers to the face-to-face presentation and promotion of goods and services. This also includes searching for prospects and providing follow-up services.

personal selling

Two key management functions that need particular attention when starting a business are:

planning and financing

Ellie owns stock in Rotary Technologies. Her stock provides a priority claim on dividend payments and on the firm's assets in the event of liquidation. However, her ________ stock ownership does not offer her voting rights.

preferred

In a free-market economic system, the mechanism of __________ is the key determinant used to signal to producers what to produce and how much to produce.

price

A simple supply curve shows a relationship between the:

price of a good and the quantity of that good sellers are willing to offer for sale at a specific point in time.

Marketers define a ________ as any physical good, service, or idea that satisfies a want or need.

product

The purpose of __________ is to create real or perceived product differences.

product differentiation

Which of the following refers to the practice of paying to have a product appear favorably in a TV show or movie?

product placement

___________ refers to the amount of output generated with a given amount of input, e.g., the number of pizzas produced per worker per hour.

productivity

Last year, Adventure Enterprises reported revenues of $24 million while its total expenses were $10 million. Based on this information, Adventure reported:

profits of $14 million

The goal of __________ is to inform and remind people in a target market about specific products, eventually persuading them to participate in an exchange.

promotion

__________ refers to any information about a product or an organization that is communicated to the public through the media and is not paid for or controlled by the sponsor.

publicity

Slapstick Films advertises their movies on TV programs that their target market of 21-30-year-olds typically watch. Slapstick Films believes the best way of reaching its customers is through a ________ strategy.

pull

The strategy of directing advertising and sales promotion toward consumers to stimulate them to request the products from their local retailers is called a:

pull strategy

The use of promotional tools to persuade wholesalers and retailers to stock and sell merchandise represents a:

push strategy

Important provisions of the Sarbanes-Oxley Act:

require the CEO and CFO of corporations to certify the accuracy of financial reports.

The two basic types of tariffs are:

revenue and protective

Affiliate marketing is a web-based business strategy that:

rewards individuals who are willing to link a company's website to their blog or social network page.

Shareholder Jones sells 100 shares of Very Vegetarian Corporation stock to investor Smith. This transaction takes place in the:

secondary market

A loan backed by collateral represents a(n):

secured loan

Health care, insurance, recreation and other intangible products are provided by the:

service industry

After Bob and Jillian deposited nearly $30,000 in a savings account at Farmers National Bank, the bank failed and filed for bankruptcy. Because the Farmers National Bank was an FDIC member bank, Bob and Jillian:

should be protected because their account is fully insured by the FDIC.

Charging high prices to earn large profits during a time when there is little competition represents a ________ strategy.

skimming

Which of the following government agencies is responsible for encouraging the development of small business?

small business administration

The optimum number of subordinates a manager can supervise is referred to as the:

span of control

Enterprise zones are:

specific locations across the U.S. where entrepreneurs can set up shop and receive tax breaks for operating in these areas.

An owner of a corporation is known as a(n):

stockholder

Jamal is part of a management group that is examining whether his company, State Engineering, should offer some important new services that would broaden its business by appealing to a different group of potential clients. Jamal's group is involved with:

strategic planning

Historically, the most potent union tactic when collective bargaining efforts break down has been the:

strike

The Internet and the emergence of an information-based economy are important parts of the ___________ environment in which businesses operate.

technological

The basic reason the term production management has been replaced by the term operations management is that:

the United States is now a service economy

The limited liability provided to limited partners means that they are not responsible for the debts of the business beyond:

the amount they have invested in the company.

Theory X managers are likely to believe that:

the average person dislikes work and will seek to avoid it when possible.

The Fed uses ________ to regulate the money supply.

the discount rate

The factor that determines whether a product is classified as a consumer product or an industrial product is:

the end use of the product

Autocratic leadership is likely to be effective when:

the organization faces an emergency situation.

Infomercials provide the opportunity for:

the product to sell itself

Any debts or damages incurred by a firm organized as a sole proprietorship are:

the responsibility of the owner

Marketing intermediaries add ________ utility to products by having them available when consumers want them.

time

Unions were originally formed ________________.

to seek protection against unfair treatment

At the break-even point:

total revenue is equal to total cost

T/F? Taxes and government regulations are part of the economic and legal environment in which businesses operate.

true

A(n) ________ is an employee organization that represents workers in employee-management bargaining over job-related issues.

union

In a(n) __________ shop, workers do not have to belong to a union before they are hired, but they must join a union within a specified period (usually 30, 60, or 90 days) in order to keep their job.

union

Herzberg found that good pay:

was a hygiene factor rather than a motivator.

Which of the following terms describes someone who reports illegal or unethical behavior?

whistleblower

A _________ is a marketing intermediary that sells products to other organizations.

wholesaler