First Year innovation Midterm - Connect

Which statement is characteristic of entrepreneurs?

They look at problems and see opportunities.

Small businesses create about __________ of the new jobs in the United States.

65%

Someday, __________ could revolutionize the production of many items. For now, however, it is mostly used to create prototypes and molds.

3D printing

Which employment statistic about small businesses is true?

A great majority of American workers find their first jobs with a small business.

Which statement best describes the impact of recent advances in information technology on business location decisions?

Advances in information technology will give firms more flexibility in their location decisions by reducing the need to locate close to sources of labor.

Which statement about the impact of CAD/CAM on manufacturing is most accurate?

CAD/CAM has made it possible to produce custom-designed products with little increase in costs.

__________ is a computer application that enables a firm to combine computerized functions of all divisions and subsidiaries of the firm into a single, integrated software program that uses a single database.

Enterprise resource planning (ERP)

The SBA's __________ program provides export-financing opportunities for small businesses.

Export Express loan

__________ is the process of selecting a geographic location for a company's operations

Facility location

A bookkeeper's first task is to record the firm's transactions in a journal.

False

Entrepreneurship is another name for management.

False

In order for product differentiation to be effective, real product differences must be identified so that one product is clearly better than others.

False

The purpose of a trial balance is to prepare a practice balance sheet.

False

__________ utility is the value added by the creation of finished goods and services using raw materials, components, and other inputs.

Form

Which statement explains one of the reasons that people in the United States take the entrepreneurial challenge?

It's about independence and the opportunity to share in the American dream.

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

Liquidity

__________ is the specialized area of management that converts or transforms resources into goods and services.

Operations management

__________ is a technique to analyze and sequence tasks involved in completing a project, to estimate the time needed to complete each task, and to determine the minimum amount of time needed to complete each project.

PERT

__________ is the monetary value that is received for goods sold, services rendered, and money received from other sources.

Revenue

One of the best places for young entrepreneurs to start shopping for an SBA loan is a...

Small Business Development Center.

Which U.S. issue does entrepreneurship most directly affect?

The ability to create jobs for others

The bottom line of an income statement shows the firm's...

net income or net loss.

Patents and copyrights are examples of intangible assets.

True - Intangible assets do not have physical form, yet they have monetary value for the firm. Sometimes these are referred to as intellectual capital due to their importance as a valuable economic resource.

__________ costs are those costs that increase as the level of production increases.

Variable

Why might a company move its facility from one location to another?

access to various modes of transportation

An important difference between accounting and other business functions, such as marketing and management, is that...

accounting offers us insight into whether the business is financially sound.

The purpose of a trial balance is to...

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

The accounting scandals of the early 2000s led many people to question the legitimacy of...

allowing an accounting firm to do both consulting and auditing work for the same company.

Small businesses must seek advice from outside experts. In order to put together official documents such as leases, contracts, and partnership agreements, it is important to seek the advice of...

an attorney.

A(n) __________ puts together components to make a product.

assembly process

Resources that a firm owns are called...

assets.

Today, packaging is...

assuming an increasingly important role in the promotion of products.

The three important financial statements prepared by accountants are...

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

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

The degree to which customers are satisfied and are committed to future purchases of a desired brand is called...

brand loyalty.

One reason many large consumer-product companies make use of __________ is to have greater control over new-product development and product promotion.

brand management teams

A __________ has direct responsibility for all the elements of the marketing mix for one brand or product line.

brand manager

Successful product differentiation...

can be based on either real or perceived differences in products.

The most liquid asset is...

cash.

To strengthen its manufacturing base in the future, U.S. will have to...

continue to innovate.

A production process characterized by long production runs to turn out finished goods over time is known as a(n) __________ process.

continuous

One strategy U.S. manufacturers have employed in order to become more competitive is...

creating technology foreign manufacturers depend on to increase effectiveness and efficiency.

Debts that are due in one year or less are classified on the balance sheet as...

current liabilities.

Accounting recognizes that assets, such as machinery and buildings, lose value over time. Accountants will record a portion of the cost of an asset as an expense each year through the use of...

depreciation.

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

encouraged entrepreneurs to come to the United States through "investor visas."

A(n) __________ is a group of experienced professionals from different areas of business who join together to develop, make, and market a new product.

entrepreneurial team

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

equity

An entrepreneurial team consists of...

experienced professionals from different areas of business.

The product life cycle consists of __________ stages.

four

Production management is the traditional term used to describe all the activities managers do to help their firms create...

goods.

Revenue minus cost of goods sold equals...

gross profit.

In recent years, the service sector of the U.S. economy has...

grown much more rapidly than the manufacturing sector.

State and city governments have promoted facilities where new businesses can open up shop and share common services such as secretarial, accounting, and legal services. Due to their remarkable success rate, __________ continue to grow in popularity.

incubators

A(n) __________ is an evaluation and unbiased opinion about the accuracy of a firm's financial statements.

independent audit

The stages of the product life cycle are...

introduction, growth, maturity, and decline.

One of the challenges of running a home-based business is...

keeping work and family tasks separate.

Restaurants, like other businesses, often find that the best way to succeed in the market is to...

listen to customers and adapt products to their needs.

When consumers calculate the value of a product, they...

look at the benefits the product provides and then subtract the cost.

In the past, the idea behind mass production was to...

make large quantities of a limited variety of products at very low cost.

According to SBA guidelines, a manufacturing firm with 1,000 employees...

may be classified as a small business depending upon the size of others in the same industry.

Pricing is...

one of the 4 Ps of the marketing mix.

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

planning and financing.

For most service businesses, the quality standard has become...

pleasing customers by anticipating their needs.

Once a trial balance has been prepared, the next step of the accounting cycle involves...

preparing financial statements such as the balance sheet, income statement, and statement of cash flows.

In __________, materials are physically or chemically changed to produce a product.

process manufacturing

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

product differentiation

The __________ is a theoretical model that describes the sales and profit performance of a product class over time.

product life cycle

The four-stage theoretical model that describes the evolution of a product from birth to death is referred to as the...

product life cycle.

The U.S. economy is now driven by...

services.

When comparing small businesses to their larger competitors, it is clear that...

small firms often can offer more personalized customer services than big firms.

Whether a consumer thinks a product provides the best value depends upon...

the consumer's perceptions.

Entrepreneurs looking for a business that gives them the best opportunity to get rich should consider starting a business in...

the manufacturing sector.

The combination of all the factors that consumers evaluate when deciding whether or not to buy a good or service is called a...

total product offer.

Experts in operations management for service industry businesses stress...

training employees to please customers by anticipating their needs.

A __________ summarizes all the data from the account ledgers to verify that they are correct and balanced.

trial balance

The purpose of a __________ is to move the selling process toward an actual product purchase.

trial close

To effectively run a business, it is necessary to...

understand and use accounting information.

Successful small business owners are...

valuable sources for information since you can learn from their experiences.

Today's computerized accounting programs are...

very helpful for small-business owners who lack strong accounting support within their companies.