Multiple Choice Questions Chapter 10 + 12 + 6 + 7 + 9 Business 101

If no product existed prior to its invention, then the product is a(n) _____. improvement in an existing product new-to-the-company product extension to an existing product line "new-to-the-market" product

"new-to-the-market" product

This past year Donald's Duck Farm had revenues of $25,000. The company spend $1,000 per month on duck eggs and $700 per month on feed, rent, and utilities to keep incubators running. What was Donald's net income? $8,000 $13,000 $4,600 $6,400

$4,600

Calvin's Calendar Company has assets of $75,000 and liabilities of $15,000. How much is Calvin's owner equity? $90,000 20% $60,000 80%

$60,000

Which of the following leadership styles typifies an approach to directing and motivating people? Autocratic Democratic Laissez-faire All of these

All of these

Which of the following may cause a company to have cash problems? The product in which it has invested isn't selling as well as had been forecast. It tied up too much money in a plant that's too large for its operations. It sold products to customers who can't pay. All of these

All of these

Social media marketing presents companies with a number of challenges including: Reaching their target market Building brand loyalty Creating brand awareness Being overwhelmed by the large volume of customer data available on social sites.

Being overwhelmed by the large volume of customer data available on social sites.

_____ are forms of compensation other than salaries, hourly wages, or financial incentives. Benefits Bonuses Stock-option plans Commissions

Benefits

Which of the following is a tactic available to unions in resolving labor disputes? Layoffs Benefits withholding Boycotting Bonus structuring

Boycotting

_____ analysis allows a business to determine the level of sales that it must reach to avoid losing money. Receivership Equity Breakeven Revenue

Breakeven

_____ shows when your total sales revenues exactly equal your expenses. Odd-even analysis Profit analysis Breakeven analysis The equilibrium point

Breakeven analysis

_____ is the process of settling differences and establishing mutually agreeable conditions under which employees will work. Negotiation Mediation Arbitration Collective bargaining

Collective bargaining

_____ is the selling price per unit minus the variable cost per unit. Contribution margin per unit The breakeven point in units Fixed price Survival price

Contribution margin per unit

_____ is not a social influence on buying behavior. Economic status Education Culture Social status

Education

Which of the following can cost a company developing a new product a great deal of money? Making decisions under extreme time pressure. Failure to be first to market with a promising new product. Guessing what the customer needs. Determining whether the new product will sell at a profit.

Failure to be first to market with a promising new product.

A current loan is due in two years. True False

False

Under accrual accounting, accounts receivable are recorded when sales are made and accounts payable when payments have been received. True False

False

_____ costs don't vary with quantity of goods sold. Fixed Variable Breakeven Flat

Fixed

When a soap manufacturer adds liquid soap to its product line, the manufacturer is providing which type of utility? Time utility Ownership utility Form utility Place utility

Form utility

_____ is not among the groups into which marketers divide most Americans born in the last 60 years. Baby boomers Generation X Generation Y Generation Z

Generation Z

_____ are major accomplishments that a company plans to achieve over a long period of time, generally five years. Objectives Goals Tactical plans Operational plans

Goals

What step in the strategic planning process is a manager engaged in when he or she asks this question: "What values will define it?" writing a mission statement conducting SWOT analysis establishing goals Identifying core values

Identifying core values

_____ would not be included in a demographic segmentation of consumers. Marital status Ethnic background Lifestyle preferences Educational background

Lifestyle preferences

_____ is the process of collecting and analyzing data that's relevant to a specific marketing situation. Advertising research Sample selling Marketing research Target scanning

Marketing research

_____ is not an aspect of marketing strategy. Selecting a target market Implementing strategies for promoting products Distributing products Performing sales-related accounting tasks

Performing sales-related accounting tasks

_____ segmentation classifies consumers on the basis of individual lifestyles as they're reflected in personal values. Geographic Demographic Behavioral Psychographic

Psychographic

A common approach to environmental analysis, called _____ analysis, entails matching a company's strengths with its available opportunities. SWOT SNOOP GATT SOWHAT

SWOT

_____ is another word for revenues. Bottom line Profits Sales Income

Sales

By making Christmas decorations available the day after Thanksgiving, Holly's Holiday Shop is offering customers what kind of utility? Time utility Place utility Ownership utility Form utility

Time utility

An industry is a group of related businesses. True False

True

_____ is the most productive way to conduct surveys. Asking customers face to face in stores Mailing out questionnaires Phoning people Using the Internet

Using the Internet

_____ costs are those that vary when the quantity of goods sold remains constant on a per-unit basis. Breakeven Fixed Variable Flat

Variable

_____ costs vary with quantity of goods sold but remain constant on a per-unit basis. Breakeven Variable Fixed Flat

Variable

Your balance sheet is based on the _____ equation: assets = liabilities + owner's equity. accounting bookkeeping financial profit

accounting

Which of the following is/are approaches used to forecast demand for a product? reviewing industry data on the internet speaking with competitors speaking with potential customers all of these approaches

all of these approaches.

Generally, employees want managers to tell them: what they should be doing. how well they're doing their jobs. how they can improve their performance. all of these.

all of these.

HR managers organize information about a given job by performing a job _____. description specification evaluation analysis

analysis

To come up with good businesses ideas you should do all of the following except _____. have lots of ideas ask yourself what you want to sell be creative seek product ideas from people inside your organization

ask yourself what you want to sell

Managers who tend to make decisions without soliciting input from subordinates are using the following leadership style _____. autocratic laissez-faire transformational controlling

autocratic

Most organizations do whatever they can to retain qualified employees. Their efforts include all of the following except: being unclear about what is expected from employees. offering a competitive compensation package. programs that help employees balance work and non-work lives. involving employees in decision making.

being unclear about what is expected from employees.

The approach used to determine when your total sales revenues exactly equal your expenses is called _____. the equilibrium point flatline analysis breakeven analysis odd-even analysis

breakeven analysis

Which of the following is not one of the four functions of management? organizing budgeting planning directing

budgeting

Firms that provide clients with accounting and tax services are called _____ accounting firms. certified private certified public registered private accredited public

certified public

Showing who reports to whom, an organization's _____ describes the authority relationships among people working at different levels. chain of communication organization chart power structure chain of command

chain of command

All of the following are advantages of the functional approach to organization except _____. easily understood structure specialized staff communication between units marketing expertise

communication between units

Under a _____ policy, you might choose to earn a three-day weekend by working ten hours a day for four days a week rather than working eight hours a day for five days a week. flextime compressed-work week part-time employment job-sharing

compressed-work week

Because its customers want its products for personal use and household consumption, Sunshine Cosmetics sells in a(n) _____ market. consumer retail industrial attractive

consumer

The growing number of individuals who work at temporary or part-time jobs are known as _____ workers. short-term contingent job-share leased

contingent

The selling price per unit minus the variable cost per unit is called _____. contribution margin per unit the breakeven point in units survival price fixed price

contribution margin per unit

When performing the management _____ function, managers measure the results of operations and compare them with the results they had laid out in their original goals. directing organizing analyzing controlling

controlling

Coca Cola's stated _____, which promote leadership, collaboration, integrity, accountability, passion, diversity and quality, tell employees exactly what behaviors are acceptable. ethics objectives core plans core values ethics goals

core values

A food preparation company that sells to airlines, conference centers, and nursing homes is probably organized by _____. product function geography (or territory) customer

customer

Retaining customers is the purpose of _____, a marketing strategy that focuses on nurturing and maintaining strong relationships with current customers. goodwill hunting consumer cultivation prospecting customer-relationship management

customer-relationship management

Because they present its public face, quality _____ are vital to Starbucks' success. managers employees suppliers supervisors

employees

You put a lot of effort into an assignment and get a C while your roommate, who put in less effort, gets a B+. According to the _____ theory of motivation, you're feeling that you've been treated unfairly relative to your roommate makes sense. expectancy enrichment relativity equity

equity

The first step to take in the control process is to: compare actual performance with standards. identify activities that need to be performed in order to achieve organizational goals. develop operational plans. establish standards by which performance is measured.

establish standards by which performance is measured.

The principle that a reward will motivate only if it's valued by the employee is key to the _____ theory of motivation. equity enrichment goal-setting expectancy

expectancy

A SWOT analysis begins by examining _____ factors that could influence a company in either a positive or negative way. competitive functional internal external

external

A company can assess its financial strengths by analyzing its _____ ratios. management efficiency financial condition cash muscle management effectiveness

financial condition

Those costs that don't vary with quantity of goods sold are called ______. flat variable breakeven fixed

fixed

McDonald's sells tacos for breakfast in Arizona because its marketers have identified a _____ segment. demographic behavioral geographic psychographic

geographic

At importer/exporter Imperial Traders, a process called _____ consists of all actions that the organization takes to attract, develop, and retain quality employees. personnel acquisition employee leasing employee outsourcing human resource management

human resource management

In an effort to make its food healthier, McDonald changed the way it made its french fries. This is an example of a: new-to-the-company product. extension to an existing product line. "new-to-the-market" health conscious product. improvement in an existing product.

improvement in an existing product.

In addition to regular paychecks, many people receive financial rewards, called _____, based on performance. profit shares incentives salary extensions commissions

incentives

Your _____ statement shows your revenues and expenses. income profit operating balance

income

The _____ market includes buyers who want a product for use in making other products. secondary wholesale consumer industrial

industrial

Hiring _____ is not only a strong motivation tool but an inexpensive way to recruit employees. internally externally from different ethnic groups young people

internally

The ability to get along well with and motivate other people depends on _____ skills and is vital at any level of management. interpersonal technical communication decision making

interpersonal

The debt owed by a business to an outside individual or organization is called its _____. liability equity asset base variable outflow

liability

Accountants do all of the following except _____. measure business activities summarize business activities interpret financial information locate capital

locate capital

To help them operate the business, _____ accounting provides information and analysis to decision makers inside the organization. financial internal management executive

management

When an employee is treated unfairly on the basis of some characteristic unrelated to ability, _____. the employee can be fired the employee can be assigned to a job performed by people with similar characteristics management is guilty of discrimination the employee is derelict in his or her duty

management is guilty of discrimination

Within the footwear industry there are several groups of customers, each of which is called a(n) _____. market segment niche market sub-industry

market

All of the following appear in the financial statements prepared by accountants except _____. marketing budgets income statements balance sheets statements of cash flows

marketing budgets

When the market for it stabilizes, a product has entered the _____ stage of the product life cycle. convenience growth marginal utility maturity

maturity

Which of the following is the smallest division of customers? niche segment market industry

niche

A(n) _____ chart is a diagram or visual representation delineating the interrelationships of positions within an organization. division organization process restructuring

organization

Peggy McLaughlin runs an ice cream shop. She is determining how many employees should work next week and at what times. She is performing which management function? organizing directing controlling planning

organizing

Before on-the-job training begins at Bainbridge Industries, all new hires are introduced to their jobs through a process called _____. screening group interviewing orientation introduction

orientation

A(n) _____ protects an idea from being stolen by someone else. copyright patent injunction trademark

patent

Using _____ pricing, a company initially charges a low price, both to discourage competition and to grab a sizeable share of the market. skimming flexible penetration bidding

penetration

In performing the _____ function, managers set goals and determine the best way to achieve them. organizing directing planning controlling

planning

The marketing mix consists of all of the following except _____. price product positioning place

positioning

All of the following can make product development a risky proposition except _____. trade-offs time pressure economics positive market test results

positive market test results

All of the following are types of utility that customers value except _____. product time place form

product

A _____ plan relies on a predetermined formula to distribute a share of the company's profits to eligible employees. profit-sharing bonus stock-option incentive

profit-sharing

A _____ is a physical model of a product. ramp up CAD scan prototype product type

prototype

All of the following are psychological influences except _____. reference groups perception attitudes personality

reference groups

According to hierarchy-of-needs theory, our highest need is for _____. esteem social security self-actualization safety

self-actualization

A _____ business offers such products as haircuts or taxi rides. goods producing soft goods service producing low tech

service producing

Your _____ shows the amount of cash that you have coming in and going out. balance sheet income report statement of cash flows revenue summary

statement of cash flows

When a union declares a _____, workers walk away from their jobs and refuse to return until the issue at hand has been resolved. strike boycott picket grievance

strike

When she focuses on the flow that begins with the purchase of raw materials and culminates in the sale of a product to end users, Bridgett Hammerschmidt is managing her company's _____. demand chain supply chain materials chain value chain

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. strategic target popular local

target

When you're hired for your first job, it's usually because of your _____ skills. technical interpersonal conceptual decision making

technical

A company seeks a(n) _____ by registering the name of a product with the U.S. Patent Trade Office. brand name trademark copyright endorsement

trademark

A manager who mentors and develops subordinates, providing them with challenging opportunities and working one-on-one to help them meet their professional needs, is practicing a _____ leadership style. transformational laissez-faire autocratic transactional

transformational

Customers buy products to satisfy _____ needs and expect to derive some value or _____ from them. unmet / benefit material / profit unmet / pleasure logical / satisfaction

unmet / benefit

The selection process is an HR function that: results in the preparation of a job specification utilizes information gathered through employment tests and interviews focuses on publicizing openings involves the selection of external candidates only

utilizes information gathered through employment tests and interviews

The key to persuading customers to buy your products is delivering _____. value the goods customer satisfaction on time

value

You'd be more likely to find a _____ span of control at a nonprofit call center than at a hospital emergency room. narrower wider taller flatter

wider