intro to bus final study guide

What is the primary difference between a good and a service?

A good is tangible, and a service is intangible.

_____ segmentation is based on what the product will do rather than on consumer characteristics.

Benefit

_____ is the set of values, ideas, attitudes, and symbols created to shape human behavior.

Culture

_____ refers to all of the equipment and techniques needed to manage and process information.

Information technology

_____ invest in new businesses in return for part of the ownership, sometimes as much as 60 percent.

Venture capitalists

The major advantage of debt financing is the:

deductibility of interest expenses

When Grand Metropolitan, a British company, purchased U.S.-based Pillsbury Co. in order to expand its product line and the market for its existing consumer products, it was an example of a(n):

direct foreign investment

The first type of training and development a new employee will be exposed to is:

employee orientation

The most basic measure of economic growth is the:

gross domestic product

Managerial accounting provides all of the following financial information EXCEPT:

income statements

One of the documents that help human resource planners find the right person for a specific job is a list of tasks and responsibilities required of the job. This document is known as a:

job description

A group of two or more computer systems linked together by communications channels to share data and information is called a computer:

network

A(n) _____ is a picture of the relationships among tasks and those employees given authority to do those tasks.

organization chart

Spring Airlines is a start-up business in China. It uses the management function of ____ to arrange that the three airplanes it operates are where they are supposed to be when they are supposed to be and have the appropriate number of operating personnel.

organizing

Human resource _____ is the creation of a strategy for meeting future human resource needs.

planning

A(n) _____ is the financial statement that is used to assess the sources and uses of cash flow during the year.

statement of cash flows

Which of the following is the BEST example of a not-for-profit business?

the American Cancer Society

_____ is a permanent organization structure that combines functional and product departmentalization.

A matrix structure

_____ is the gap between what is and what is desired, and _____ is the gap between what is and what is required.

A want; a need

Which of the following is an example of an unethical business activity?

All the choices in this answer set are examples of unethical business activities.

_____ is the system used to record a firm's financial transactions in a routine and clerical process.

Bookkeeping

Which of the following is NOT one of the four functions of management?

Budgeting

_____ is the action that people take in buying and using goods and services.

Buyer behavior

_____ is the process of selecting the capital expenditures that offer the best returns and meet the goal of maximizing the firm's value.

Capital budgeting

Raja Hossein monitors the quality of staplers manufactured under the brand name Bostitch. If a stapler doesn't meet the standards that are agreed upon, an employee in his department puts the stapler in a reject pile. What function is Hossein performing?

Controlling

_____ is the practice of charitable giving by corporations; includes contributing cash, donating equipment and products, and supporting the volunteers' efforts of company employees.

Corporate philanthropy

_____ is the quantity of a good or service that people are willing to buy at various prices.

Demand

_____ is the process of grouping jobs together so that similar or associated tasks and activities can be coordinated.

Departmentalization

_____ is the process of distributing the original cost of a long-term asset over the years of its useful life.

Depreciation

_____ is the process of dividing the work and assigning tasks to workers.

Division of labor

_____ means giving employees increased autonomy and discretion to make decisions as well as control over the resources needed to make those decisions.

Empowerment

_____ management is the art and science used to determine the most effective ways to acquire and use funds to achieve the firm's goals.

Financial

_____ deals with reporting to outsiders. _____ accounting deals with the internal operations of the firm.

Financial accounting; Managerial accounting

Which of the following statements best describes one of the strengths of group decision-making?

Group decision making results in a higher-quality decision then individual decision making.

_____ contribute to and benefit from information that use in performing, acquiring, searching, analyzing, organizing, storing, programming, producing, distributing, marketing, or selling functions.

Knowledge workers

_____ is the streamlining of production by eliminating steps in the production process that do not add benefits that customers are willing to pay for.

Lean manufacturing

_____ offer companies a more cost-effective way to link computers than linking terminals to a mainframe computer.

Local area networks

_____ is the process of separating, identifying, and evaluating the layers of a market to design a marketing mix.

Market segmentation

_____ uses a master computerized system to ensure that materials, labor, and equipment are available for production.

Materials requirement planning

_____ refers to a government's programs for controlling the amount of money in circulation.

Monetary policy

_____ involves creating a unique marketing mix for every consumer.

One-to-one marketing

_____ is the management of the production conversion process for both goods and services.

Operations management

_____ involves coordinating and allocating a firm's resources so that the firm can carry out its plans and achieve its goals.

Organizing

The world's largest bank. Deutsche Bank set as its objective to make its name more recognizable in the United States. The success of its decision to sponsor a PGA golf tournament to accomplish this organizational objective will ultimately depend on which management function?

Planning

_____ are independent accountants who serve organizations and individuals on a fee basis.

Public accountants

_____ involves calculating and interpreting financial ratios taken from the firm's financial statements in order to assess its condition and performance.

Ratio analysis

_____ is the attempt to find and attract qualified job applicants in the external labor market.

Recruitment

_____ is the money a company earns from providing services or selling goods to customers.

Revenue

Curtiss Anaya is planning to sell kites on the beach this summer to pay for next year's school expenses. _____ refers to the potential that Curtiss will lose money and waste his time and end up at the end of the summer with not enough money to cover his expenses.

Risk

_____ are investment certificates that represent either ownership of a corporation or a loan to the corporation.

Securities

_____ is the process of determining which persons in the applicant pool possess the qualifications necessary to be successful on the job.

Selection

_____ is the concern of businesses for the welfare of society as a whole.

Social responsibility

When nurses at Children's Memorial Medical Center were asked what makes a great place to work. They responded with, "Great places to work have leaders that listen to staff feedback and act upon it. At great places to work, staff value developing their job expertise, actively support teamwork, are passionate about providing quality service, and are not afraid to take risks and try innovative approaches. Mutual respect is the interpersonal chemistry that produces a collegial environment that inspires excellence at great places to work." From this information, it appears that the nurses would also appreciate a _____ approach to management.

Theory Y

_____ is a philosophy that focuses on the consequences of an action to determine whether it is right or wrong. This philosophy holds that an action that affects the majority adversely is morally wrong.

Utilitarianism

In perfect competition, there is:

a large number of sellers producing nearly identical products

CoolBrands International has entered an agreement with Binney & Smith to create a line of frozen novelties based on the Crayola brand, including pops, bars, sandwiches, cups, cones, sundaes and shakes. CoolBrands will pay Binney & Smith a royalty for the right to use the Crayola trademark. This is an example of:

a licensing agreement

The unemployment rate is the percentage of the total work force that is not working but is:

actively looking for work

A(n) _____ is a yearly document that describes a firm's financial status and usually discusses a firm's financial activities during the past year and its prospects for the future.

annual report

According to the equity theory, employees value their own outcomes in relation to their own inputs. Then they compare the outcomes-to-inputs ratio to:

any or all of the choices provided in the answer set

One of the important decisions managers have to make is whether to buy and commit to upgrading its computer equipment every couple of years. One way of avoiding having to buy costly upgrades, which can quickly become obsolete, is to use:

application service providers

Which of the following calculations is a formal expression of the accounting equation?

assets = liabilities + owners' equity

Levi Strauss was strongly praised when it announced it was leaving China in 1993 because of the country's poor human rights record. However, China is also an inexpensive place to manufacture clothing, and in spite of its announcement, Levi did not stop making clothing in China. What type of facility location factor was most likely instrumental in Levi deciding to continue operating its facility in China?

availability of production inputs

The difference between a country's total payments to other countries and its total receipts from other countries is called its:

balance of payments

The _____ summarizes an organization's financial status at the end of an accounting period.

balance sheet

The Springwood Inn offers a package of room, breakfast, and parking for $225.00. This strategy is called:

bundling

A product that is bought by a company for use in making another product is called a(n) _____ product.

business

Business products are classified into two categories. Large, expensive items with long life spans are called _____ products, and; smaller, less expensive items with short life spans are called _____ products.

capital; expense

Middle managers usually:

carry out plans and policies of top management

Management needs to be prepared to deal with problems and seize opportunities as they arise. A company often identifies alternative courses of action to be taken if events undercut a strategic or tactical plan. These are called _____ plans.

contingency

Cherokee Spring Mill produces four varieties of corn meal based on how finely the corn is ground. The mill makes long production runs of high volume. Cherokee Spring Mill uses a(n) _____ process.

continuous

The Sara Lee Company sells the Hanes brand of hosiery in the United States. The manufacturer of this hosiery brand in Great Britain sells it under the brand name of Pretty Polly. The Sara Lee Company is using _____ to broaden its global marketing base without investing in overseas plants and equipment.

contract manufacturing

Hans Guten makes furniture according to the specifications of the customer who ordered it. Each piece of furniture he makes is unique. He only makes one piece of furniture at a time. Guten is engaged in:

customization

Cerner Corporation has created a(n) _____ containing the medical records of more than 400,000 people who received treatment at more than 200 different emergency rooms. It can be used to help emergency room physicians make decisions about what kind of treatment to give their patients.

database

Customer records containing names, addresses, phone numbers, and purchase histories would be most likely stored in:

database management systems

An example of a provider of exceptional customer service is L.L. Bean, Inc. One of its employees actually drove 500 miles from Maine to New York to deliver a canoe to a customer who was leaving on a trip. The employee was able to perform this task with the support of L.L. Bean because the catalog retailer believes strongly in:

empowerment

In the chocolate market, Green & Black is acting at the _____ responsibilities level of the pyramid of corporate social responsibility when it makes a profit, does so by abiding by the laws, and helps cocoa farmers by agreeing to pay above-market prices for cocoa.

ethical

The idea that employees are motivated by their expectations, or estimates of chances for reward, is called the _____ theory.

expectancy

Botswana produces diamonds, copper, nickel, soda ash, meat, and textiles, which it sells to the members of the European Union. To Botswana, the diamonds, copper, nickel, soda ash, meat, and textiles it produces are examples of:

export

A(n) _____ is a type of loan often used to finance buildup of inventory for seasonal (cyclical) businesses just before their strongest sales period.

factoring

In 2018, Austria exported $122.5 billion and imported products valued at $118.8 billion. Austria had a(n):

favorable balance of trade

When the government raises taxes on consumers and businesses, it is dealing with _____ policy.

fiscal

A policy of permitting the people of a country to buy and sell where they please, without restrictions, is called:

free trade

To ensure accuracy and consistency in the way financial information is reported, accountants follow rules known as:

generally accepted accounting principles

Coca-Cola Enterprises (CCE) is the largest bottler and distributor of Coke products in the world. It is organized around its North America division and its European division. This departmentalization by _____ allows CCE to respond to the demands of different markets.

geography

During a typical employee performance appraisal, the employee's supervisor evaluates the employee's work in terms of:

his or her contribution to the organization

Dottie Beauchamp recently was hired by PetSmart to help recruit, select, and train new employees to work in its stores. Beauchamp has a job in:

human resource management

Spring Airlines is a small budget airline that is based in China. Due to the unfamiliarity of this mode of transportation in China, Spring's employees are often attacked by unhappy customers who demand compensation for flight delays. According to Herzberg, these attacks by passengers would be an example of a _____ factor.

hygiene

The U.S. has one of the very few areas in the world where kaolin can be mined. Kaolin is a necessary ingredient in many products ranging from stomach medication to paper. The U.S.-produced kaolin is sold all over the world. Kaolin is a(n) _____ for the countries that purchase it.

import

A(n) _____ is a summary of what a company has earned and spent over a given period.

income statement

The situation in which the average of all prices of products is rising is called:

inflation

Social investing:

is the practice of limiting investments to companies that have ethical policies that match those of the investor

Wolfgang Reithofer, a human resource manager at an Austrian brick making company, gathers information about various jobs within the company and specifies the skills and knowledge needed to do each job well. Reithofer is responsible for:

job analyses

Since Cate Langton was hired in the marketing department of a consumer products manufacturer, she has worked in its public relations department, she has worked in its advertising department, and she has worked to help design collateral sales material and point-of-purchase displays. Next week she will go out on the road as a salesperson. What method of training is Langton's employer using?

job rotation

Capital Radio PLC, the United Kingdom's biggest commercial radio firm announced in 2002 that it would cooperate with Walt Disney Co. to create a radio network for children under the age of 16. The company will broadcast to a potential audience of 25 million under the name Capital Disney. This new radio network will be created as the result of:

joint venture

A _____ is an organization of employees formed to represent workers in their disputes with management over wages, hours, and working conditions.

labor union

Stuart McFarland is sales manager for a hotel. His job entails leading, motivating, and communicating with employees. McFarland's main management activity is:

leadership

Ocean Spray first introduced cranberry juice drinks. Then it introduced Cranapple (a cranberry and apple juice mix) also sold under the Ocean Spray brand. This is an example of a:

line extension

A(n) _____ is the collective term that describes the methods and the equipment used to provide information about all aspects of a firm's operation.

management information system

According to the _____, a firm should first identify consumer needs and then produce the goods and services that will satisfy them.

marketing concept

In selling telephone service, AT&T tries to gather as much information as possible about the consumer's income, buying habits, service preferences, and occupation. AT&T is utilizing:

marketing research

Spalding produces large numbers of golf balls all at once. Spalding puts the golf balls in inventory and distributes them around the world. Spalding uses:=

mass production

The standard of living in any country is:

measured by the output of goods and services people can buy with the money they have

As one of the factors of production, capital includes all of the following EXCEPT:

money

Thom Nielssen owns 500 acres of woodland. His forest is an example of which factor of production?

natural resources

Esselte is a Swedish-based company that sells office supplies. It went public when it was founded, and it remained public until 2002 when it was taken private. Now that Esselte is private, it:

no longer sells stock to the public

Dean Jager is the supervisor of the volunteer staff at the Booth Western Art Museum. He makes the work assignments, determines work schedules, and makes sure the museum uses all its volunteer staff efficiently. Jager is involved in _____ planning.

operational

Shell Oil Company used Intertek Caleb Brett, an Australian research laboratory, to provide all analytical services needed to support one of its full scale refinery. With this _____, Shell replaced domestic employees at the site of the refinery with employees from the Australian firm.

outsourcing

Taco Bell fast-food restaurant does not chop the lettuce and tomatoes and grate the cheese used to make its menu items, but hires someone outside the restaurant to perform these tasks. By _____ these tasks, Taco Bell can keep its overhead low and concentrate its resources on taking customer orders and assembling food.

outsourcing

Dividends are:

payments to the shareholders from company earnings

With a _____ policy, a company offers new products at a low price in the hope of achieving a large sales volume.

penetration pricing

Demography is the study of:

people's vital statistics

Laws passed by the U.S. Congress concerning how U.S. businesses trade with Cuba would be an example of _____ factors that influence the business environment.

political and legal

In the production of corn meal for baking, corn is ground. This conversion process is an example of:

process manufacturing

The process that products go through as they pass through their introduction, growth, maturity, and decline stages is called the:

product life cycle

The three main types of facility layouts are:

product, process, and fixed-position

When a thermometer manufacture combines glass tubing, mercury, red dye, paint, plastic, and metal to make thermometers, it is an example of:

production

The European Union (EU) bans the importation of hormone-fed U.S. beef and bioengineered corn and soybeans on safety grounds although Americans eat this food every day. This ban is so consumers in the EU will buy domestic beef and products made from domestically produced corn and soybeans. This ban is an example of:

protectionism

People with common activities, interests, and opinions are grouped together into a given lifestyle. A company that segments its market according to these different lifestyles is using _____ segmentation.

psychographic

In 2006, The Home Depot launched its first consumer and business rewards credit cards. The Home Depot Rewards MasterCard and The Home Depot Business Rewards MasterCard allows consumers and business owners earn rewards for everyday purchases. The Home Depot is engaged in:

relationship marketing

The funds that are reinvested in the firm out of profits and after dividends are paid are called:

retained earnings

At Children's Hospital in Denver, good attendance is encouraged by recognizing staff members who have not missed work in the previous three months. At three-month intervals, at staff meetings, the names of those who have not missed work that quarter are announced. These employees are given ribbons of excellence, perfect attendance pins, prizes, tote bags, alarm clocks, gift certificates or movie tickets. As an added incentive, the person with the longest record of perfect attendance is allowed to choose first from the list of "gifts." This is an example of how _____ are used in association with the ______ theory.

rewards; reinforcement

Julia Li is a low-level manager for a manufacturer of collectible plates and figurines. She is assigned new jobs every few months so she can learn all aspects of her company's operations. Management is utilizing the concept of job _____ in training Li.

rotation

An employee who was more worried about having a safe work environment and a financially sound pension plan than anything else would be most concerned with which of the needs in Maslow's hierarchy of needs?

safety needs

Many organizations that experienced success using problem-solving teams expanded the team concept to allow team members to have greater responsibility in making decisions, implementing solutions, and monitoring outcomes. These highly autonomous groups are called:

self-managed work teams

The economic system under which basic industries are operated by the government or owned by the private sector under strong government control is called:

socialism

Roger Wu has decided to buy a new Porsche. Since there are no Porsche dealers in his community, he must travel almost 200 miles to a find a Porsche dealer to purchase the car of his dreams. For Wu, a Porsche is a _____ product.

specialty

Accounting involves the _____ of the financial activities for firms.

summarizing

The world's largest bank, Deutsche Bank, set as its objective to make its brand name as recognizable in the United States as FedEx and Visa are over the next ten years. The implementation of this long-range plan would require _____ planning.

tactical

Topik is a product that is sprayed on thinning hair and makes the hair appear thicker. The manufacturer considers its potential market to be blue-collar workers who earn less than $30,000 per year, are divorced, and who like to think of themselves as weekend athletes. The manufacturer of Topik considers this group to be its:

target market

A(n) _____ is a tax levied by a nation on imported goods.

tariff

Three important forms of long-term (capital) expenditures are:

term loans, mortgage loans, and bonds

Life Savers Gummies Fruit Splosions, liquid-filled gummies combined with a burst of real fruit juice, are a new product for The Wrigley Co.. Before marketing the product nationwide, Wrigley gave out samples of the candy at several rock concerts and then recorded consumers' feelings about the candy, its taste, and its name. In which stage of the new-product development process would this have happened?

test marketing

A group of management consultants is studying OGSI Manufacturing and its team management strategy. Once Pete Jazoni's work group was selected for special attention by the management consultants, the work group's production output nearly doubled. Jazoni's group's reaction to the special attention is an example of:

the Hawthorne effect

Hershey's hot cocoa mix combines dry milk, whey, corn syrup, processed cocoa, aspartame, and artificial flavorings and colors. This conversion process is an example of:

the assembly process

Financial managers constantly strive for a balance between:

the opportunity for profit and the potential for loss

Market equilibrium is:

the point at which quantity supplied equals quantity demanded

The three basic levels of the managerial hierarchy are:

top, middle, and supervisory

Many companies use _____ to connect two or more private networks over a public network, such as the Internet.

virtual private networks

Social responsibility goes beyond obligations provided by law or union contract. Two important aspects of social responsibility are that the obligation is both:

voluntary and broad