BUS 101 Final Exam Study Guide

Tactical planning is concerned with: A. Determining the best way to cope with an emergency situation B. Determining detailed strategies about what is to be done, who is to do it, and how it is to be done. C. Determining temporary courses of action be used if the primary plans do not achieve the desired results. D. Setting long-run goals that will govern the general course of the organization for years.

. Determining detailed strategies about what is to be done, who is to do it, and how it is to be done

Small businesses create about ____________ percent of the new jobs in the United States A. 5-10 B. 25-35 C. 60-80 D. 100

60-80

An oligopoly is an industry type that is characterized by: A. One firm that totally dominates the supply of the product B. A large number of small firms all producing very similar products C. A few large sellers who dominate the market supply D. Several small firms that compete primarily by differentiating their products.

A few large sellers who dominate the market supply

The ________ of a company are elected by stockholders of the company to oversee corporate management. A. Board of Directors B. Officers C. Department Heads D. Top Managers E. Governing Body

Board of Directors

Regarding compensation incentives, a _______________ is a special payment made to an employee above a base salary determined by work that has been performed well. The range of this payment might be 10-20% for managers and 50-100%+ for top executives. This payment is known as a: A. Salary enhancement B. Wage initiative C. Bonus D. Worker's compensation measure E. Mediation incentive

Bonus

Many of the toy products sold in the United States are imported from Taiwan because the Taiwanese can produce these products more efficiently than U.S. companies. A. Bilateral Advantage B. Comparative Advantage C. Absolute Advantage D. Unilateral Advantage

Comparative Advantage

_________ is the process by which a union business becomes recognized by the National Labor Relations Board as the bargaining agent for a group of employees. A. Accreditation B. Certification C. Labor Standardization D. Affiliation

Certification

_________ is the process by which representatives of a union meet with representatives of management to negotiate a contract for workers. A. Mediation B. Arbitration C. Mutual Concilitation D. Collective Bargaining

Collective Bargaining

A ________ is a regional group of countries that have no internal tariffs among participants, a common external tariff, and the coordination of laws to facilitate exchange and trade among the member countries, such as NAFTA or the countries in the ASEAN group. A. Trade Cartel Commission B. Mutual Trade Association C. Common Market or Regional Trade Bloc D. Joint Venture

Common Market or Regional Trade Bloc

Many companies offer two types of stock issues: A. Common and Preferred Stock B. Convertible and Superior Stock C. Fixed and Variable Stock D. Common and Superior Stock

Common and Preferred Stock

Which of the following describes a process in which marketers present an accurate description of a new product to potential customers and ask if they find the idea appealing? A. Prototype Testing B. Concept Testing C. Test Marketing D. Competitive Benchmarking

Concept Testing

Buyers of products fall into two groups; buyers of _________ and buyers of ________. A. Shopping Goods, Convenience Goods B. Temporary Goods, Permanent Goods C. National Brands, Private Label Brands D. Consumer Products, Industrial Products

Consumer Products, Industrial Products

__________ planning determines the major goals of an organization and lays the foundation for obtaining and using resources to achieve those goals. A. Strategic B. Contingency C. Central D. Tactical

Contingency

A planned economy relies on a centralized government to: A. Support free enterprise in every way possible. B. Control all or most factors of production C. Encourage citizens to buy shares of stock in small corporations D. Keep its control activies to a minimum E. None of the above.

Control all or most factors of production

A planned economy relies on a centralized government to: A. Support free enterprise in every way possible B. Control all or most factors of production and output of products and services. C. Encourage citizens to buy shares of stock in small corporations and privatize industries. D. Keep its control activities of government policies and control of the economy and industries to a minimum

Control all or most factors of production and output of products and services.

One of the four primary functions of management is: A. Controlling B. Marketing C. Financing D. Designing

Controlling

Companies that have adopted _________ seek to do more than simply sell a product; they seek to learn as much as possible about their customers in order to satisfy them with goods and services over time. A. Nonprofit Marketing B. Customer Relationship Management C. Management by Objectives D. The Marketing Mix.

Customer Relationship Management

The first step in the marketing research process is to: A. Define the problem and determine the present situation B. Collect relevant data from primary and secondary sources C. Analyze the research data D. Decide upon the best ethical solution

Define the problem and determine the present situation

Which of the following would be considered part of a firm's marketing mix?: A. Identifying the best source of funds to finance a firm's marketing activities B. Determining the best pricing strategy for a product C. Establishing a production schedule that enables the firm to meet forecasted sales. D. Designing the most efficient production plan

Determining the best pricing strategy for a product

Middle managers are responsible for: A. Establishing the vision for the organization B. Assigning specific jobs and evaluating the daily performance of workers C. Devising the organization's strategic plan D. Developing tactical plans and controlling

Developing tactical plans and controlling

Sally is interested in buying a new laptop computer. She has taken a look at her total income on recent paychecks after taxes and deductions and determined how much she needs for food, housing, and purchasing clothing. The remainder is available for optional purchases, such as a laptop, and is known as ___________ income by economic standards. A. Voluntary and Adjusted. B. Disposable C. Bankable and Spendable D. Discretionary

Discretionary

Brand _______ refers to the degree of brand awareness, brand use and loyalty, and overall value to the company and purchaser. A. Differentiation B. Equity C. Prominence D. Incentive Marketing

Equity

Resources such as capital, labor, information technology, and entrepreneurship that contribute to the creation of wealth are known as ________. A. Production Coefficients B. Factors of Production C. Production Technologies D. Production Productivity Aggregates

Factors of Production

A trade deficit is a situation in which a country's exports exceed its imports A. True B. False

False

A trade deficit is a situation in which a country's exports exceed its imports. A. True B. False

False

If you plan to meet face-to-face with a banker or venture capitalist concerning funding for your small business or new business venture, it is not necessary to submit a business plan A. True B. False

False

To be classified as a small business, a company must have no more than 100 employees A. True B. False

False

The government entity resposible for setting the discount rate, the interest rate banks pay if they borrow money from the U.S. government is the: A. Federal Deposit Insurance Corp. (FDIC) B. Federal Bank Loan Association (FBLA) C. Federal Reserve System (FED) D. Government Banking Board (GBB)

Federal Reserve System (FED)

The business activity known as __________ is concerned with determining a company's longterm investments, obtaining funds to pay for investments, conducting the firm's everyday financial activies, and managing the company's risks. A. Marketing B. Finance C. Management D. Accounting Control

Finance

Which are the two major fields of accounting? A. Financial and Managerial B. Primary and Secondary C. Industrial and Consumer D. Clerical and Managerial E. Paper and Computer

Financial and Managerial

________ refers to the efforts of the federal government to keep the economy stable by increasing or decreasing taxes and/or government spending A. Monetary Policy B. Income Policy C. Fiscal Policy D. Cyclical Policy

Fiscal Policy

A ______ group consists of a small group of people who meet under the direction of a discussion leader to discuss opinions about an organization, its products, or other issues A. Concept B. Focus C. Peer D. Consumer Interest

Focus

When foreign companies, such as Honda, build production facilities in the United States, they are engaging in: A. Monetary and Fiscal Policy B. Foreign Direct Investment C. Importing and Exporting D. Countertrading

Foreign Direct Investment

The total value of final goods and services produced within a nation's borders in a given year is known as that nation's A. Aggregate Production Quota B. Aggregate Domestic Output C. Index of Aggregate Economic Output D. Gross Domestic Product

Gross Domestic Product

The __________ rate is the percentage change in the Consumer Price Index: A. Price B. Index C. Inflation D. Recession E. Monetary Formula

Inflation

A creative person working within a corporation to launch new products and generate new profits is known as a(n): A. Arbitrator B. Micropreneur C. Macropreneur D. Intrapreneur.

Intrepreneur

Your company has secured $1,000,000 in venture capital to help start your new business. This amount of funding is: A. A lean, but not similar to a bank loan B. A lean and similar to a bank loan as it is a liability or debt that must be repaid C. Is an investment in your company that must be repaid in 3 years or less D. Is an investment in your company that gives ownership to the venture capitalist group, but is not considered a debt or liability.

Is an investment in your company that gives ownership to the venture capitalist group, but is not considered a debt or liability.

Which of the following describes the skills, education, and experience required for a job. A. Staffing Survey B. Personnel and Human Resources Summary C. Job Specification D. Employee Analysis

Job Specification

Which of the following activities is part of the planning function of management?: A. Assigning a particular worker to do a specific task B. Looking at market forecasts to identify future business opportunities and challenges C. Praising a sales representative who has far exceeded her monthly sales objectives. D. Conducting a job interview with a potential new employee

Looking at market forecasts to identify future business opportunities and challenges

Which of the following refers to the process of dividing the total market into several groups?: A. Market Segmentation B. Market Differentiation C. Market Determinants D. Market Partitioning

Market Segmentation

Companies often price their products to establish _________, a company's percentage of the total sales for a specific product type or industry. A. A Sales Penetration B. Fixed Business Position C. Market Share D. Market Distribution Base

Market Share

The ________ is based on three elements: 1) a customer orientation, 2) a service orientation, 3) a profit orientation A. Mercantile Philosophy B. Hierarchy of Needs C. Relationship Approach to Marketing D. Marketing Concept

Marketing Concept

A products cost plus ___________ results in the sales price. A. Breakeven Price B. Fixed Price C. Markup D. Competitive Margin

Markup

Dr. Thomas has been working with the union leaders and management at Jones Corp. to help the two sides resolve differences over desired wage levels for a new contract. First, he met with each side privately to determine any common ground for agreement. For the past week, he has worked with representatives from each side to promote communication and compromise at the bargaining table. Dr. Thomas is a(n) _______ in this role. A. Arbitrator B. Mediator C. Fact Finding Manager D. Shop Steward E. Business Consultant

Mediator

Employees often work with managers to develop a(n) __________ that outlines the fundamental purposes of their organization. A. Organization Chart B. Business Value Proposition C. Action Plan D. Mission Statement

Mission Statement

The United States government manages U.S. economic system through two sets of policies, they are: _________ and _______

Monetary and Fiscal

In contrast to external recruiting, internal recruiting for employees to fill available company positions: A. Motivates current employees B. Demotivates current employees C. Brings new ideas into the company D. Is necessary when key skills are not available within the organization E. Is an infrequent task performed by human resource managers

Motivates current employees

__________ is a trade agreement that removes tariffs and other trade barriers among the U.S., Canada, and Mexico. A. NAFTA B. The World Bank C. ASEAN D. GATT

NAFTA

Southwest College received a government grant to establish a business incubator. This facility will offer: A. Local government agencies assistance in obtaining funds for urban renewal. B. Area businesses advice on employee benefits and ways to reduce taxes C. Venture capitalists an opportunity to identify new entrepreneurs D. New businesses low-cost office space with basic business services.

New businesses low-cost office space with basic business services

____________ is the market situation in which there are many sellers in a market and no seller is large enough to dictate the price of a product. A. Oligopoly B. Monopolistic Competition C. Perfect or Pure Competition D. Microeconomic Competition

Perfect or Pure Competition

The management function concerned with anticipating future trends and determining the best strategies to achieve an organization's goals and objectives is known as: A. Directing B. Leadership C. Planning D. Forecasting

Planning

Two key management functions that need particular attention when starting a business are: A. Human relations and accounting B. Planning and financing C. Marketing and public relations D. Staffing and controlling

Planning and financing

The four (4) key management activities include: A. Delegating, producing, reviewing, and evaluating B. Planning, implementing, reviewing, and managing. C. Organizing, performing, managing, and evaluating. D. Planning, organizing, leading, and controlling.

Planning, organizing, leading, and controlling.

The Procter & Gamble Company produces bar soap, disposable diapers, deodorants, laundry detergents, peanut butter, cookies, cake mix, shampoo, shortening, coffee, and many other products. These products are part of P&G's A. Product Line B. Product Network C. Product Mix D. Marketing Mix

Product Mix

__________ is the amount a business ears after deducting what it spends on salaries and other expenses. A. Profit B. Revenue C. Interest D. Dividens

Profit

__________ consists of all the techniques sellers use to persuade consumers to buy their goods and services. A. Advertising B. Promotion C. Pre-selling D. Closing

Promotion

A _________ analysis is used to help companies evaluate their internal strengths and weaknesses, and develop an awareness of external threats and opportunities. A. WISH B. SWAMP C. ASSET D. SWOT

SWOT

_________ consists of information that has already been researched by others and is published in journals or books or has been made available online. A. Primary Data B. Secondary Data C. Pre-coded Information D. Technical Data

Secondary Data

Penetration pricing for a product involves: A. Setting an initial low price to establish a new product in the market B. Setting a limited number of prices for certain categories of products. C. Setting prices in uneven dollar amounts. D. Setting an initial high price to cover new product costs and generating a profit.

Setting an initial low price to establish a new product in the market

Which of the following U.S. government agencies is responsible for encouraging and assisting the development of a small business. A. Small Business Investment Corporation (SBIC) B. Small Business Administration (SBA) C. Entrepreneur Assistance Center (EAC) D. Federal Business Development Agency (FBDA)

Small Business Administration (SBA)

The customers, employees, stockholders, suppliers, creditors, and others who stand to gain or lose by the policies and activies of a business represent the company's A. Market Makers B. Economic Environment C. Stockholders D. Social Mentors

Stockholders

A company's marketing mix refers to the combination of: A. Goods the firm offers to different market segments B. Advertising media the firm utilizes to promote its promotion C. Strategies regarding the product, price, place, and promotion D. People directly involved in making marketing decisions.

Strategies regarding the product, price, place, and promotion

A company produces 200,000 backpacks for sale. There are only 14,000 backpacks sold. This imbalance of product supply and product demand is known as a market: A. Supply Centered Business B. Demand Centered Business C. Surplus D. Market Edge

Surplus

Cool People Publication focuses their marketing efforts on reaching African-American teenage girls. The firm believes that they are positioned to profitably serve this group of consumers. Cool People uses the strategy of: A. Narrowcasting B. Target Marketing C. Primary Marketing D. Focus Group Selection

Target Marketing

A _________ is a tax levied/places on a product imported into a country. A. Cartel Quota B. Tariff C. Subsidy D. Countertrade E. A or C - These terms mean the same thing

Tariff

The first section of a business plan is: A. The industry review B. The executive summary C. The marketing plan D. The organization chart of the management team

The executive summary

___________ refers to the total value of all goods and services produced within a given period by a national economy through domestic factors of production from one single country. A. The standard of living B. The aggregate output C. The gross national product D. The gross domestic product E. The balance of trade

The gross domestic product

A favorable balance of trade occurs when the value of: A. Imports equal the value of exports B. The cash inflows equal the value of the cash outflows C. The value of imports is less than the value of exports D. The value of the dollar is greater than the value of the Euro.

The value of imports is less than the value of exports

Which of the following activities would be a part of the leading function of a manager?: A. Developing a new strategic plan to enter a new foreign market currently dominated by a competing company B. Recruiting qualified workers to join the organization and assigning them to their proper position C. Examing a financial report to see whether the firm's profits are improving and taking corrective action if they are not. D. Training and coaching workers to help them understand their job and perform it efficiently.

Training and coaching workers to help them understand their job and perform it efficiently

Contingency planning involves developing alternative courses of action to be used if the primary plans do not achieve the desired results. A. True B. False

True

Last year, the country of Argentina imported goods totaling $500 million and exported products totaling $386 million. Argentina experienced a(n): A. Unfavorable balance of trade B. Favorable balance of trade C. Trade Surplus D. Benefit from membership in a free trade zone

Unfavorable balance of trade

The _________ area of the global business environment consists of taxes and regulations, tradable currency, contract law, and the elimination of business corruption. A. Acquisition of one company by another company in a secretive manner. B. Managing a point of communication about social and political issues without informing the public in general. C. An evaluation of a company's work to be socially responsible in business conducted by an "inside" department in the company. D. Use of private company information to make investments and gain greater personal wealth. E. None of the Above.

Use of private company information to make investments and gain greater personal wealth.

Kohler Corporations gross profit is determined by which of the following calculations: A. Sales Revenue minus operating income B. net profit plus fixed expenses C. net profit plus fixed assets D. sales revenues minus cost of goods sold

sales revenues minus the cost of goods sold