Business Principles

Which factor does NOT affect a person's inclination to make either ethical or unethical decisions?

Genetics

Which of the following is an important advantage of the corporate form of business ownership?

Limited liability

Alan needs a Plan B because his original plan was disrupted. This plan is called __________.

contingency

strategy

An organization's broadest set of plans, developed as a guide for major policy setting and decision making

Which statement is NOT true about transformational leaders?

They mentor and develop subordinates

The marketing mix elements must be combined in a way that best __________.

reach the firms target market

How many types of utility are served by marketing?

4

Contingency plan

A plan that outlines alternative courses of action that may be taken if an organization's other plans are disrupted or become ineffective

tactical plan

A smaller scale plan developed to implement a strategy

objective

A specific statement detailing what an organization intends to accomplish over a shorter period of time

mission

A statement of the basic purpose that makes this organization different from others

Operational Plan

A type of plan designed to accomplish the organization's specific objectives by implementing the tactical plan

goal

An end result that an organization expects to achieve over a one- to ten- year period

A grocery store initiates a national campaign to "eat more fish." Select two EXTERNAL factors that may impact the company's marketing strategies.

Because of the oil spill in the Gulf of Mexico, about 7 percent of the fishing grounds are closed. Gen Z consumers want healthier, more convenient food.

What is the organized effort of individuals to produce and sell, for a profit, the goods and services that satisfy society's needs?

Business (unit 1 pre-test)

Mattel, Inc. selects suppliers and obtains raw materials to make toys. The company is engaged in which function of marketing?

Buying

Which of the following represents changes in the technological business environment?

Changes in manufacturing equipment, communication with customers, and distribution of products

Dan owns the State Farm Insurance office in his town. He wants to figure out what people in his market see as his company's strengths and also what it could improve upon. He also believes it is important to examine the changes in government policy related to the insurance industry as well as know what his competitors are doing. What would you recommend that Dan do?

Conduct a SWOT analysis

Operations involves which of the following?

Converting resources into goods and services

What is used by businesses to identify patterns of buying behavior in order to focus on the most promising and profitable customers?

Customer relationship management

A marketing strategy is concerned with all of the following EXCEPT what?

Determining production methods

The process of leading, motivating, and influencing people to work toward a common goal is which management function?

Directing

Gloria is starting a new business. Which of the following is NOT one of the resources she will need?

Educational

Which of the following is NOT a material resource for General Motors?

Engineers

A cosmetics company decides to delete a poorly performing product line and focus on its other products. How should the company adjust its marketing mix?

Ensure your sales force is adequately trained to prompte the "new" product line Identify the best locations to sell the products Promote the product line by introducing customer loyalty programs Take into account potential competitors' responses to you entering the market place -all answer choices

Planning

Establishing organizational goals and deciding how to accomplish them

The four resources that a business must use to operate successfully include material resources, human resources, financial resources, and operational resources.

False (unit 1 pre-test)

Which of the following is NOT true about ethical communications in business?

False and misleading advertising is not illegal but is certainly unethical

What is the functional area of business that involves planning for, obtaining, and managing a company's funds?

Finance

Which type of resources are used to meet obligations to investors and creditors?

Financial

Which statement most accurately describes the organizing function of management?

Grouping resources and activities to efficiently and effectively accomplish a result

Which of the following in NOT a key element of a successful business?

Having the right products, a customer base, and a willingness to take risks are all elements of a successful business.

Clara is a financial manager for a large company. Which question would she NOT address regarding her company?

How should excess funds be invested? ( wrong ) This question would be answered by an accountant: What was the cost of materials used in the production process?

What does a well-planned partnership agreement NOT specify?

How stock dividends will be distributed

Jessica is hired to keep the books and pay the bills for a small company. She provides what type of resource for the firm?

Human

What feature of sole proprietorships do business owners find least attractive? Explain your selection thoroughly.

I think a feature that a sole proprietorship would find the least attractive is having to finance their business themselves. In doing so they have to provide the funds to get their company up and running. If the business doesn't excel or have the prospects that they desire their funds have gone to waste. Also throughout the process they have to continue to put of funds for expenses that arise for their company. You never know if you can fall on hard times and can't support yourself or if the markets can crash and cause your product to be obsolete to consumers.

The factors of production are the key categories of resources used to produce goods and services. Assume you own a skateboard manufacturing company. What are the key resources you would require in each category to be successful? Where would you obtain each of them? Be specific and detailed in your response.

If I owned a skateboard manufacturing company I would need machines that can create the boards in and orderly and timely fashion. I would also needs workers to operate the machines to make sure production runs smoothly. I would needs the parts such as the wheels, board and screws to create the skateboard. I would require the utmost time and control when manufacturing the skateboard. I would find an efficient way to move the skateboard through the machine at a healthy pace. I would obtain the materials from other warehouses with deals implemented to help me not spend to much on obtaining the resources and the wheels and board I would make in house with specific machines to cut down on cost.

What resource tells the managers of a business how effectively the other three resources are being combined and used?

Informational

Sylvia filed a discrimination suit against her company because they did nothing to prevent the repeated offensive jokes and sexually explicit language used by the "regular" customers who frequented the hardware store where she worked as a sales clerk. After management found out about the lawsuit, they let Sylvia go saying that her work was substandard. What is the problem here?

It is illegal to retaliate against Sylvia because she filed a charge of discrimination.

What are the key elements of directing?

Leading and organizing

Nonprofit organizations do all of the following EXCEPT what?

Make a profit

Which of the following involves planning, organizing, staffing, directing, and controlling a company's resources so that it can achieve its goals?

Management

What are the five functional areas of business?

Management, operations, marketing, finance, accounting (unit 1 pre-test)

Which type of marketing approach divides a market into groups and directs a marketing mix to particular groups rather than the total market?

Market segmentation

____________ is the organizational function and set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.

Marketing

Target stores are generally classified as what type of business?

Marketing intermediary

A production orientation is characterized by which of the following?

Marketing limited to taking orders

Airplanes, crates, and trucks represent what type of resources for Federal Express?

Material

What resources are required to have a successful business?

Material, human, financial, informational

Management can achieve its goals by coordinating what four types of resources?

Material, informational, human, and financial

Ben is a strategist for the American Red Cross. Ben works for what kind of company?

Nonprofit

Managers who create and manage systems that convert resources into goods and services are known as what kind of managers?

Operations

The external factors that influence business include all of the following EXCEPT what?

Owners are not part of the external environment of business.

Who are the main participants in a business?

Owners, employees, and customers

The partnership is a popular and useful form of business organization. What are some of the advantages of the partnership as a form of business ownership?

Partnership has many advantges including being pretty easy to start and relatively inexpensive, also you have a partner to lean on for company issues. Also you have the combine knowledge of business and skills, money, profit retention, and no added taxes.

What could be called the "first" management function because all other management functions depend on it?

Planning (unit 1 pre-test)

Which element of the marketing mix is Chick-fil-A controlling when they decide on sandwich names, package designs, sizes of orders, and flavors of sauces and recipes?

Product

What are the key elements of the marketing mix?

Product, price, promotion, place (or distribution) (unit 1 pre-test)

Which of the following is NOT one of the four commonly recognized forms of utility?

Production

Which of the following is NOT part of the American Marketing Association's definition of marketing?

Profits

What is the process of establishing long-term, mutually satisfying buyer-seller relationships?

Relationship marketing

What is the ultimate objective of every firm, such as IBM, Hewlett-Packard, and JC Penney?

Satisfy the needs of its customers while making a profit

What is involved in the "planning" function of management?

Setting goals and developing strategies for achieving them

What is involved in the planning function of management?

Setting goals and developing strategies for achieving them

Identify 2 advantages and 2 disadvantages for each of these forms of business ownership: sole proprietorship, partnership, and corporation.

Sole properitorship has 2 advantages that include owning your own business yourself and it is the easiest business to start. Having these advantages allows the person to rely on themselves or a partner and to have their business be the vision that they created on paper and in their minds. While the 2 disadvantages include financing and having to be liable for any loss that occurs within the company. Being completly responsible for the success or downfall of ones company is alot to have resting on your shoulders. Partnership has 2 adavantges including being pretty easy to start and relatively inexpensive, also you have a partner to lean on for company issues. This is a cool way to have a business while not having to shoulder all the burden of owning a business. You have somebody along for the ride that you can bounce ideas off of and lend and ear to. While the 2 disadvantages include having liability for any debts along with company disputes. Going into a business with a partner means you have to have a level of trust while also having a vast knowledge of the business your entering. You don't want to have someone who doesn't understand a concpet or can figure out the company figures on their own. Also company disputes can cause rifts within a partnership and thic can lead to the company having problems within management. Corporation includes two advantages which are limited liability and the ease of transferring ownership. With limited liability it means that whoever put in their amount of money is fiancially liabiable for it. Being able to transfer ownership makes it easy on the partners to move their share to someone else. The 2 disadvantages include the increased paperwork and conflicts within the corporation. With a corporation being so large it would makes sense that they would have and immense amount of paperwork. Also with a corporation their are bound to be conflicts because of the immense size of it and the amount of people working their that are bound to have different opinions.

Susan owns and operates a large restaurant in Dallas that employs about fifty people. She delegates some of the decision-making to two managers, but she remains the only owner. What form of business ownership does Susan have?

Sole proprietorship

Done effectively, this management function means clearly defined recruitment procedures and hiring practices to place the right people in the right jobs.

Staffing

Which of the following is NOT a major consideration for a company implementing the marketing concept?

Staffing the organization

Which of the following is NOT part of a company's marketing strategy?

Staffing with the best qualified individuals

Jack is a manager. Which of the following is NOT one of his main functions?

Telling others what to do

A company is known for its toothpaste sold exclusively in dental offices. The company decides to expand its product line to include dental floss, mouthwash, and more varieties of toothpaste. Select two EXTERNAL factors that may impact the company's marketing strategies.

The company has an efficient way to distribute their products to dentist offices throughout the Southwest. (?) Approximately 70 percent of Americans shop online.

What happens if a firm's expenses are greater than revenues?

The firm incurs a loss

Under a franchise setup, who grants the buyer the right to use a brand name and to sell its goods or services?

The franchisor

Phillip owns and manages a convenience store. What management functions will Phillip need to perform in order to have a successful business?

The management functions that Phillip needs to have a successful business include have organizing, planning, controlling, directing and staffing his business. He needs these in order to have structure. By hiring a good staff he is completing the staffing aspect of being a good manger. He also need to have good planning which could go into what shifts they work, how long they work and who they work with. Controlling and directing are good skills to have because this will allow him to guide his workers and business in the direction that he desires. Lastly organizing the whole process allows the ship to sail smoothly and for Phillip to have the business prosper the way he seeks.

The recent societal trend toward consumers trying to live healthier lifestyles is important to Barbara who owns a health food store. Why is this true?

The social trend toward healthier lifestyles could impact her business

You have the opportunity to buy your aunt's jewelry store. Before making your decision, a friend tells you to look at the company's accounting information. What should you look for? What is the purpose of the accounting function in business?

The things I should look for include the books or finances and how the business faires in the market alongside similar businesses. The reason finances are important is because I don't want to take on a bankrupt business or one that is going under. Also checking the competition allows me to see how I would fair alongside my competitors to a consumer looking to purchase jewelry. The purpose of accounting is to keep money in order and documented, the summarized into statements that reflect spending's and savings and then present and communicate the findings to the patron.

Walmart pays close attention to what Amazon does just as Apple pays attention to what is going on at Google. Why is this the case?

They do not want to be caught off guard and lose an advantage if a competitor comes out with something new that customers want

Why do many would-be business owners like the idea of buying a franchise?

They like the idea of buying into a franchise because they have a higher success rate than sole proprietorships. They start knowing they are in safe hands and that they have a support team and can profit from being associated with the brand without having to be the face of it. Lastly they get to be their own boss.

You heard somebody say, "Marketing is just sales and advertising." Discuss the accuracy of this statement.

This is not true marketing consist of so much more than just sales and advertising. You have to implement the marketing concept and mix that identify the consumers wants and needs and that help to meet a particular target market a. Customer relationship management is focusing on information obtained about the customers and using that to create marketing techniques that can be implemented into creating strong customer relationships. Their is also utilities that can transfer the person's ownership to another (possession), making products readily available(time), and the availability of the products at different locations (place).

Which of the following is NOT a facilitating function of marketing?

Transportation

Walmart has its own trucks that ship merchandise to its warehouses from the supplier for inventory purposes. Walmart is carrying out which of the following functions?

Transporting and storing

How does Walmart fit the definition of the word "business"? Explain by providing examples.

Walmart fits the definition of business because they provides goods and services to consumers that help to satsify their wants and needs. They also sale products at completive prices and have a vast selection to choose from even implementing their own store brand of specific items such as syrup and water. They makes profits off of selling items to consumers at a reasonable price that keeps much of society coming back to get more.

Managers need accurate, relevant, and timely financial information. This information is provided through __________.

accounting

Marketing is all about __________.

aligning the product or service with the needs of the customer

George is the ink buyer for Indigo Printing Company, a major plastic shopping bag manufacturer. One of his vendors regularly takes George to lunch and golf outings, and treats him to expensive vacations. George might have difficulty in which area of ethical concern?

conflict of interest

Using information about customers to create marketing strategies that develop and sustain desirable customer relationships is known as ____________.

customer relationship management

Factors in the internal business environment include all of the following EXCEPT what?

customers

Debbie must guide, instruct, and oversee the performance of her workers. As a manager, Debbie is engaged in which management function?

directing

Product decisions include all the following EXCEPT __________.

discounts

Jessica is involved in establishing the major goals for her company and allocating the resources to achieve them. Jessica is __________.

doing strategic planning

Sue Wallace is getting married on Saturday. She purchases flowers for the church ceremony early Saturday morning from a local flower shop. Which of the following types of utility is NOT created by this activity?

form

The size, shape, and features of a product are created through which type of utility?

form

The best kind of marketing is built upon __________.

honest relationships

As a manager, John is likely NOT responsible for which function?

informational technology

Promotion decisions include all the following EXCEPT __________.

intermediaries

Much of the real value of place, time, and possession utilities is added through what type of activities?

marketing

Receiving information about a product, whether good or bad, is called _________.

marketing

John works for AT&T coordinating people and other resources to achieve goals in his department. John is a(n) __________.

manager

A marketing mix combines all but which of the following in order to satisfy a particular target market?

manufacturing

Which of the following is NOT part of marketing?

manufacturing

Everything that a company does to identify customers' needs and design products to meet those needs is called __________.

marketing

Jill is engaged in sales and customer relations. Jill is most likely working in _________.

marketing

A type of plan that will enable an organization to make the best use of its resources to meet its marketing objectives is called a ____________.

marketing strategy

To achieve success, a firm must do all the following EXCEPT __________.

offer the most competitive pricing

All companies must convert resources (labor, materials, money, information, and so forth) into goods or services. This is called __________.

operations

The process of shipping fresh flowers from South America to Minnesota gives ____________ utility to the flowers.

place

When Kroger grocery stores offer bread and meat at all of its locations, it is providing customers with ____________ utility.

place

When Target offers televisions at all of its locations, it is providing customers with _______ utility.

place

Lisa needs to make sure everything is in place to achieve the goals for her department. As a manager, Lisa is performing which function?

planning

Managers should spend most of their time __________.

planning and organizing

When Mary returned a dress she had purchased at Macy's for a refund, she essentially reversed the effect of which type of utility?

possession

Which type of utility is created by transferring ownership of a product to the buyer?

possession

Ed is engaged in establishing long term, mutually satisfying buyer - seller relationships. Ed is practicing __________.

relationship marketing

The elements of the marketing mix are combined to ____________.

satisfy the target market

A group of individuals or organizations within a market that share one or more common characteristics is referred to as a market ____________.

segment

Marketing always begins and ends with __________.

the customer

A business philosophy that a firm should provide goods and services that satisfy a customer's needs is called __________.

the marketing concept

Burlington Coat Factory manufactures its winter jackets in April but does not display them in its stores until early September. Burlington recognizes the importance of ____________ utility.

time

By selling Halloween costumes from late September through October, Michael's is providing ____________ utility.

time

By selling fresh Christmas trees from late November through December, Lowe's is providing ____________ utility.

time

Caroline's Country Christmas purchases its Christmas store inventory in June. However, in October, when the store finally displays the Christmas products, which form of utility is being provided?

time

The XYZ company just introduced innovative software for tracking and predicting the stock market. A competing firm introduces a new similar product. This is an example of an external change in the marketing environment.

true

Morton Salt Company designs a single marketing mix and directs it at the entire market. The company is using the ____________ approach.

undifferentiated