Business Midterm

What below is not an insurance for your business you can purchase? - Employee Health Insurance - Workers Compensation - Professional Liabilities - 401 K

401 K

Labor, as a factor of production, refers to: - Rent and Wages - All workers in business - full employment - time spend working on a task - only hourly wage earners

All Workers in Business

Which of the following is the BEST example of a not-for-profit business? - Kellogg's - The American Cancer Society - Hightower Construction Company - FedEx Delivery Service - McDonalds

American Cancer Society

What is the tax impact for debt financing? - Can deduct the entire debts as cost of doing business - Can stop paying taxes until the loan is repaid - No Tax Impact - Can deduct interest payments as costs of doing business

Can deduct interest payments as costs of doing business

What is the salesperson doing when, after his presentation is over, he asks, "May I call the company and place your order for 20 cases of Ecco brand golfing shoes?" - Closing the Sale - Approaching the Customer - Prospecting the Customer - Looking for Sales Leads - Asking qualifying questions

Closing the Sale

Jenny keeps track of day-to-day operational data to make sure her employer has enough cash to run the business and will determine if and when the company she works for should open a second distribution center. Joan is a(n) _____ manager. - Accounting - Financial - Operations - Marketing - Facilities

Financial Manager

Selling more rainwear in Seattle than in San Diego due to the annual rainfall is an example of which type of marketing segmentation? - Psychological - Volume - Demographic - Psychographic - Geographic

Geographic

As one of the factors of production, natural resources includes all of the following EXCEPT: - Farmland - Machinery - Oil Deposits - Water - Coal

Machinery

In _____, goods are produced using mass production techniques up to a point. Then production is custom tailored to the needs or desires of individual customers. - Individualized production - Production-to-order - Niche Marketing - Just-in-time production - Mass Customization

Mass Customization

Jenny is planning to sell handmade masks over the Internet. As she decides what to charge for a full-sized quilt, Manow will calculate her fixed and variable costs. At this point, Manow will be developing her _____ strategy. - Product - Pricing - Possession - Promotion - Place

Pricing

_____ is the amount that you earn on each product that you sell after paying for the costs of the products and the overhead expenses. - Revenue - Yield - Profit - Turnover

Profit

The sales process begins with the salesperson locating companies or people who are most likely to buy the seller's offerings. This activity is called: - Target Marketing - Market Research - Screening - Brainstorming - Prospecting

Prospecting

American Handgunner, Shooting Industry and Guns Magazine are all periodicals aimed at people who enjoy hunting and target shooting and want to improve their skills and stay current in the latest technology. These magazines use _____ segmentation. - Demographic - Psychographic - Volume - Geographic

Psychographic

_____ is a strategy that focuses on forging long-term partnerships with customers. - Relationship Marketing - Mass Customization - Niche Marketing - Transactional Marketing - Exchange Targeting

Relationship Marketing

A strategy of charging a high introductory price for a new product that invites eventual competition is called price: - Kiting - Enchantment - Escalation - Skimming - Penetration

Skimming

External Forces: Consumers increasingly want healthier food

Sociocultural Forces

In new-product development, _____ is the stage at which products that do not meet new-product goals are rejected. - Weeding Out - Screening - Scrubbing - De-Activating - Prospecting

Sreening

The purpose of accounting is to help _____, who are interested in the activities of a business because they're affected by them. - Fiduciaries - Stakeholders - Investors - Shareholders

Stakeholders

The _____ of any country is measured by the output of goods and services people can buy with the money they have. - Standard of Living - GDP - Exchange Rate - Consumer Price Index - Consumer Productivity

Standard of Living

The _____ is the entire sequence of securing inputs, producing goods, and delivering goods to a customers. - Production Life Cycle - Product Life Cycle - Supply Chain - Demand Chain - Channel of Distribution

Supply Chain

Your _____ market consists of a specific group of consumers who are interested in your product, have access to it, and possess the means to buy it. - Local - Strategic - Target - Popular

Target

The goal of cellular manufacturing is to: - Create a team environment - Create a zero-defect environment - Eliminate Shrinkage - Provide quick and inexpensive customer service - Reduce customer defection

create a team environment

Round the number to 2 digits after the decimal point in $M: $287,569K

$287.57M

Jenny started a dog walking business at the start of the summer. She spent $10 to make signs for her service and posted them all over her neighborhood. She spent $60 for a leash and a pooper-scooper. She charged $10 per dog and walked 5 dogs per day for 3 months (assume 30 days per month). What was Jenny's profit for her summer gig? - $4,490 - $4,440 - $4,500 - $4,900 - $4,430

$4,430

A company seeks a(n) _____ by registering the name of a product with the U.S. Patent Trade Office. - Trademark - Copyright - Endorsement - Brand Name

Trademark

_____ involves creating a unique marketing mix for every consumer. - Niche Marketing - Flexible Marketing - Aggregated Marketing - Macro marketing - One-to-one Marketing

One-to-One Marketing

External Forces: Customers can order from their phone app, eliminating needs for workers to take orders

Technological Forces

What typically constitutes the biggest part of the cost for intermediaries? - Production - Inventory Control - Warehousing - Transportation

Transportation

Services provided by a surgeon performing emergency appendectomy belong to which product/service category? - Shopping Goods - Unsought Goods - Convenience Goods - Luxury Goods

Unsought Goods

A secured Internet service provider would be very likely to attract the attention of _____ because it is in a high-tech industry with lots of opportunity for rapid growth. - Intrapreneurs - Multipreneurs - Venture Capitalists - Leveraged Capitalists - Business Opportunists

Venture Capitalists

The categories of heavy, moderate, and light users have to do with which type of segmentation? - Benefit - Demographic - Psychographic - Quantitative - Volume

Volume

Which of the following companies would be LEAST likely to use the continuous process? - An oil refinery - Plywood Plant - Steel Manufacturer - Chemical Company - Bakery

Bakery

The three most popular types of marketable securities are Treasury bills, certificates of deposit, and: - Treasury Notes - Corporate Bonds - Commercial Paper - Money Market Funds - Checking Accounts

Commercial Paper

External Forces: Largest competitor launched an aggressive promotional campaign for their new menus

Competitive Forces

Doritos, Soda, and Chewing Gum belong to which product categories: - Specialty Goods - Convenience Goods - Unsought Goods - Shopping Goods

Convenience Goods

The primary goal of any business is to satisfy the needs of its _________ - Creditors - Managers - Customers - Employees

Customers

_____ is the process in which a firm continuously collects and evaluates information about its external environment. - Marketing Research - Secondary Data Collection - External Monitoring - Relationship Marketing - Environmental Scanning

Environmental Scanning

A mark-up of 200% by a retailer for a shirt that cost $10 from the wholesaler results in a retail price of: (Hint): Selling Price = (Markup / 100% * Product Cost) + Product Cost - $100 - $30 - $200 - $20

$30

_____ deals with reporting to outsiders. _____ accounting deals with the internal operations of the firm. - External Accounting; Internal Accounting - Financial Accounting; Managerial Accounting - Financial Accounting; Auditing - Auditing; Managerial Accounting - Bookkeeping; Financial Accounting

- Financial Accounting; Managerial Accounting

It costs on average ___ times more to attract a new customer to buy than to sell additional products to an existing customer. - 2 - 8 - 5 - 10

5x

Cash flows from _____ activities are derived from the day-to-day business of your main line of the company. - Investing - Sales - Operating - Accounting

Operating

External Forces: Recession causing consumers not to eat out as much

Economic Force

Three major sources and uses of cash in a business include all except: - Financing - Assets - Operations - Investments

Assets

This week, Jenny's Fish Shack had sales of $5,000. Employees were paid $2,000; food costs were $1,500; and rent was $500. Profit for the week was... - $1,000 - $4,000 - $3,000 - $2,000

$1,000

Public relations departments functions include: (select all that are true): - Write press releases - Furnish company speakers for business and civic clubs - Encourage employees to take active roles in community organizations - Buy ad space from google - Develop content for television ads - Write speeches for corporate officers

- write press release - furnish company speakers for business and civic clubs - encourage employees to take active roles in community organizations - write speeches for corporate officers

ABC Company has the following revenue in 2015, 2016, 2017: 2015: $38,000 2016: $45,000 2017: $50,000 What is the revenue growth rate for ABC in 2016? - 18% - 84% - 11% - 27%

18%

_____ ratios measure the degree and effect of the firm's use of borrowed funds to finance its operations. - Equity - Debt - Profitability - Liquidity - Income

Debt

Its debt-to-equity ratio examines the risk entailed by a company's _____. - Debt Structure - Sales Growth - Break Even Point - Stock Portfolio

Debt Structure

The _____ ratio measures the relationship between the amount of debt financing and the amount of equity financing. - Sales-to-Ownership - Liability-to-Asset - Debt-to-Revenue - Debt-to Equity - Liability-to-Ownership

Debt-to-Equity

What happens to the Sales revenue for a product in Stage 4 of PLC? - Rising Rapidly - Declining - Stabilizes then begins to decline - Flat

Declining

The major advantage of debt financing is the: - Number of different sources from which it is available - Lack of dependence on collateral - Absence of factoring - Deductibility of Interest Expenses - Amortization Benefits

Deductibility of Interest Expenses

Computer-aided manufacturing (CAM) uses computers to: - Design new products - Test new products - Modify products - Develop and Control production processes - Design new programs

Develop and Control Production Processes

What is the annual payment obligation for equity financing? - Must pay interests - Must pay dividends - Interests payment not mandatory - Dividend payments not mandatory

Dividend payments not mandatory

The Japanese inventory system that minimizes inventory costs and provides those inputs as they are needed for a particular production run is called the ______ system. - Materials Requirement - Perpetual Inventory - Just-In-Time - Controlled Assembly - Raw Materials Coordination

Just-In-Time

The pricing strategy of marking products below normal markup or even below cost to attract customers to a store where they would not otherwise shop is called _____ pricing. - Psychological - Leader - Economy - Skimming - Rebate

Leader

Accounting can help your business in all of the following ways except _____. - Reveal whether you made a profit - Show if business did better or wore from one month to another - Show value and sources of assets - Making sure company always shows to be profitable

Making sure company always shows to be profitable

What is the money that a company earns after paying all of its business expenses? - Gross Margin - Net Profit Before Taxes - Sales - Net Assets

Net Profit before Taxes

The manufacturing strategy whereby a firm produces products outside of its own plant is called: - Licensing - Outsourcing - External Producing - Franchising

Outsourcing

Which of the following is an example of an individual factor that influences the consumer decision-making process? - Family - Culture - Personality - Opinion Leaders - Neighborhood

Personality

External Forces: workers must be paid extra hazard paid for working through the pandemic

Political / Legal Forces

Nike charges $350 for a pair of jogging shoes while the average market price for similar type jogging shoes are $65, the company was using a strategy of _____ pricing. - overthetop - target - cost-based - prestige

Prestige

_____ involves calculating and interpreting financial ratios taken from the firm's financial statements in order to assess its condition and performance. - Ratio Analysis - Performance Analysis - Benchmarking - Financial Reporting - Organizational Performance Appraisal

Ratio Analysis

Which of the following is NOT a form of sales promotion? - Contests - Samples - Advertising - Coupons

Advertising

A _____ is any activity that provides goods or services to consumers for the purpose of making a profit. - service - business - value exchange - transaction

Business

There is a facility in California that takes off-the-shelf Ford Mustangs and hones them into high-performance vehicles. The assembly line at this facility is simply a line of cars on hand-pushed carts that are moved from station to station, but many of the operations that are typically performed in an assembly plant do take place here. Using this system the company has turned out over 8,000 vehicles, more than any other American specialty vehicle manufacturer. This is an example of: - Niche Marketing - Individualized Production - Mass Customization - Just-in-Time Production - Mass Production

Mass Customization

Which of the following is NOT really a financial ratio though it is often used to measure a firm's overall liquidity? - Current Ratio - Net Working Capital - Net Profit Margin - Return on Equity - Earnings per Share

Net Working Capital

_____ is arrived at by subtracting current liabilities from current assets. - Retained Earning - Net Margin - Owners' Equity - Net Profit - Net Working Capital

Net Working Capital

Another term for owners' equity is: - gross sales - assets - liabilities - net worth - gross worth

Net Worth

Integrated marketing communications (IMC): (select all that are true) - Is a careful coordination of all promotional activities - Only applies to high end products where branding is important - Is typically overseen by a marketing communications director - Produces a consistent and unified advertising message

- is a careful coordination of all promotional activities - is typically overseen by a marketing communications director - produces a consistent and unified advertising message

_____ stock is a security that represents an ownership interest in a corporation and has voting rights. - Preferred - Common - Par Value - Treasury - Equity

Common

External Forces: Switching to biodegradable containers and utensils increased costs by 5%

Environmental Forces

In 2006, consumers held on to a 2007 Chevrolet Monte Carlo at the State Fair of Texas in an endurance competition that tested consumers to see who can hold on to the car the longest to win it. USA Today published an article about the winner of the competition is an example of which promotional activity? - Corporate Relations - Personal Selling - Public Relations - Advertising - Social Media Marketing

Public Relations

Which of the following is not an attribute for geographic segmentation? - Urban, suburban, rural - East coast, West coast - Climate - Religion

Religion

_____ are those expenses related to marketing and distributing of a company's products. - Selling Expenses - Distribution Costs - Functional Costs - Revenue Expenses - Administrative Expensive

Selling Expenses

What is true regarding Co-branding ____ (select all that are true) - Leverage another brand to create synergies between both brands - Expand customer reach - Confuses customers - Only benefit one of the brand

- Leverage another brand to create synergies between both brands - Expand customer reach

Jenny's sporting goods company has the following in its 2017 financial statements: Revenue: $50,000 Operating Income: $5,000 Assets: $25,000 Current Assets: $5,000 Non-Current Assets: $20,000 Liabilities: $12,000 Current Liabilities: $3,000 Long Term Liabilities: $9,000 Owners Equity: $13,000 Common Stocks: $2,000 Retained Earnings: $11,000 What is the return on sales for the company? - 10% - 20% - 2% - 25%

10%

Accountants do all of the following except _____. - Summarize business activities - Interpret Financial Info - Measure Business Activities - Competitor Info

Competitor Info

What are the two distinct markets toward which sales promotions can be targeted? - Consumers and members of the marketing channel - Domestic and foreign - Retailer and Manufacturer - External and Internal Customers - Rural and Urban

Consumers and members of the marketing channel

Financial managers constantly strive for a balance between: - Opportunity for profit and potential for loss - Cash and marketable securities - Economic and social responsibility - Common and Preferred Stock - Dividends paid out and interest payments

Opportunity for profit and potential for loss

A(n) _____ is a summary of the money flowing into and out of a firm. - Statement of Cash Flow - Short-Term Budget - Annual Stockholder's Report - Balance Sheet - Income Statement

Statement of Cash Flow

A(n) _____ is the financial statement that is used to assess the sources and uses of cash flow during the year. - Trial Balance - Profitability Statement - Income Statement - Statement of Cash Flows - Balance Sheet

Statement of Cash Flows

What risk listed below insurance companies do not cover: - Fire - Employee Law Suits - Product Defects - Stock Market Crash - Theft

Stock Market Crash

What does Critical Path Method chart show? - Tasks that are the most complicated and need the best workers on the job - Tasks that cost the most money in production - Tasks that would delay the entire production process if delayed - Tasks that are essential to the products and other non-critical path tasks are not needed

- Tasks that would delay the entire production process if delayed

What is the primary difference between a good and a service? 1. A good costs more to market than a service 2. The development costs for a service is higher than for a product 3. A good is tangible, and a service is intangible 4. A good costs more to produce than a service 5. A service is tangible and a good is intangible

A good is TANGIBLE and a service is INTANGIBLE

An integral part of TQM is _____, which can be characterized as the commitment to making constant improvements in design, production, and delivery. - Continuous Improvement - Marketing Mix Improvement - Incremental Capacity - Quality Assurance

Continuous Improvement