BUS-X 100 Final Review
Investing in long-term corporate bonds of a Japanese company incurs which of the following financial risks?
-Credit risk -Inflation risk -Exchange rate risk ***All of these are risks
Characteristics of the maturity stage of the life-cycle
-a peak in the sales curve -a decline in the sales curve -simplification of the product lines -increased price competition NOT: increased distribution
Approximately how many businesses are there in the United States?
27.5 million
Mallard Decoy Manufacturing has total liabilities of $40,000 and total assets of $120,000. The owners' equity for the firm is $100,000. What is the firm's debt-to-owners' equity ratio?
40%
William Clark wants to know his breakeven point. His selling price is $20 per unit, his fixed costs are $6,000, and the variable costs per unit are $6. What is his breakeven quantity?
428.6 units
Approximately _____ of all private sector employees work for small businesses.
50%
Germany wants to retaliate against India for trade restrictions that limited the number of German cars that could be brought into India. Which of the following policy decisions would Germany utilize to accomplish this goal?
Adjust import tariffs on cars from India from 5% to 20%.
In a marketing channel of distribution, which of the following intermediaries normally does NOT take title to the products?
Agents
Suppose the Australian dollar increases substantially in value relative to the currencies. What is the likely result?
Australian exports will decrease and imports will increase.
Which of the following are the three primary components of business ethics?
Avoiding conflict of interest, competing fairly and honestly, and being transparent
When Estée Lauder offers a free gift with a $15 purchase of its product from a retail outlet, it is specifically using what type of promotional technique?
Consumer sales promotion technique
Which of the following is an argument against social responsibility?
Corporate time, money, and talent should only be used to maximize profits.
Suppose Russia would like to increase the amount of luxury goods brought into their country from other countries. What trade policy should they enact to accomplish this goal?
Decrease tariffs on luxury good imports
You manufacture construction equipment. The price of steel has increased by 30%, forcing you to increase the price of your equipment by the same amount. What is the likely effect?
Demand will decrease
Which of the following is NOT a role the team leader plays?
Dictator
What are the three activities according to which a statement of cash flows is organized?
Operating, investing, and financing
Which of the following best describes the organization of a statement of cash flows?
Operating, investing, and financing cash flows
Juan and Carl have a small medical practice that operates as a partnership. Juan does 70% of the work and Carl does 30%. However, Carl invested 60% of the money required to start the business. If the company makes $100,000 in profit this year, how much will each partner receive?
Profits will be shared in the proportion specified in the partnership agreement.
Mirror Emporium's sole owner, Fred Martin, is happy about his $100,000 profit. However, while he knows that the firm is profitable, he wants to know how effectively his investment is being used when compared to its other investments. What computation would you recommend?
Return on owner's equity
Which of the following might be considered the most drastic step in securing funding, often a last resort for a corporation?
Sale of assets
The relationship between sales and profits can be written as:
Sales revenue - expenses = profit
Joyce was just told that if she can double her sales numbers she'll get a $50,000 bonus at the end of the year. That bonus would really help because Joyce is saving up for a bigger house. However, doubling sales numbers seems impossible to Joyce. According to expectancy theory, what is her likely response?
She will not be motivated because the outcome does not seem likely to Joyce.
The U.S. imports trillions of dollars of goods per year. What is a benefit of importing for the U.S.?
Shift of production resources to higher-value activities
Demand-based pricing, unlike cost-based pricing, places firms in a better position to:
attain higher profit levels.
Which of the following presents assets in the correct balance sheet order?
cash, inventory, equipment
Internal and external data should be collected for a marketing information system:
continually.
Money obtained through various types of loans is called:
debt financing.
Because many discount stores are providing more services and better shopping environments, the distinction between discount stores and ____ stores is becoming blurred.
department
Unless specified in the charter, a sole proprietorship has a
legal life limited to the life of its owner
All of the following are current assets except:
office equipment.
___ adds extra value to a produce or increases the customer's incentive to buy the product.
sales promotion
Which of the following statements is true?
Under the right circumstances, the use of borrowed money when it has cash to finance expansion.
In the past, Tupperware used only personal selling to sell its products; it now uses other methods as well to reach its target market. Together these various methods are Tupperware's:
promotion mix.
Bill has successfully launched his wireless speaker business, which is growing quickly. He would like to expand into overseas markets, but was told by several banks that this idea was too risky. That may be fine though because, in addition to funding, Bill would also like technical advice to help grow the business. What type of funding would best fit Bill's situation and needs?
Angel investor
Which of the following is true about sustainability strategies?
As awareness of environmental issues has increased, many companies have made increased efforts to implement sustainable business practices.
If the liabilities of a business are $85,000 and the owners' equity is $110,000, which of the following is a true statement?
Assets equal $195,000.
If the liabilities of a business are $85,000, and the owners' equity is $110,000 which of the following is a correct statement?
Assets equal $195,000.
Joan's taffy manufacturing company has grown slowly, but steadily over the past 5 years. She now would like to expand by purchasing new equipment. What is her most likely source of funding?
Bank lending
Shawna just received the results of her company's social audit. While the company received high marks in most areas, the audit revealed that one of the company's overseas suppliers may be using child labor during peak production season. Revealing this information would be a public relations nightmare for the company, and could cause the loss of key customers. What is the key ethical concern Shawna is faced with in this situation?
Being transparent
Which of the following steps is the first step in the accounting cycle?
Collect and analyze transactions including receipts, invoices, sales slips, and similar documents.
With regard to the ongoing expense of long-term corporate financing, which of the following would be the LEAST expensive?
Common stock
Which of the following five (5) conflict styles is NOT correct on the assertive/cooperative dimensions?
Compromising: Med Assertive - Lo Cooperative
An importer of coconut water is concerned about all of the energy required to essentially ship water from Asia to the U.S. market. What is the best sustainability strategy for addressing this particular issue?
Condense coconut water into a powdered concentrate for shipping, then add water back at a U.S. bottling facility.
The primary sources of funds available to a business include all of the following:
Debt capital Equity capital Sales of assets Sales revenue NOT government grants
Which of the following indicates a customer orientation?
Developing products that fulfill customers' needs
The _____ created the IFRS, accounting standards used in more than 100 countries.
Financial Accounting Standards Board
Vanessa's business plan outlines her startup costs and cash flow forecasts. This is most likely found in which section of her plan?
Financial projection
When it built production lines in the United States, BMW engaged in what type of international expansion?
Totally owned facilities
Carissa is 25% owner in a corporation that builds custom machinery. Last year the corporation suffered due to intense competition. After losing $1,000,000 last year, the business is shutting its doors. The business has unpaid debts of $9,000,000. What is Carissa's personal liability?
$0
You run a fitness studio that trains individual clients and small groups. Since you are the only trainer, you run the business as a sole proprietorship. A client was injured and sues you for $1,000,000. You have no liability insurance on the business. What is your personal liability if you lose the lawsuit?
$1,000,000
If a corporation makes $100,000 in profit, how will that profit be taxed if the money is all distributed to the owners?
$100,000 will be taxed at the corporate rate, then those after-tax profits will be taxed again as dividends when distributed to each owner.
Brown Shoe Co. is a small shoe manufacturer with only 2,500 shares of common stock outstanding. It has net sales of $550,000 for the year and a net income of $29,000. What is Brown's earnings per share?
$11.60
Chase invests $5,000 of his own money in the new auto detailing business. He then obtains a loan and builds a small workshop in his backyard for $10,000. At this point assets are ______, liabilities are_______, and owners' equity is __________.
$15,000; $10,000; $5,000
You invested $80,000 into a consulting partnership and have a 50% stake in the business. Your partner didn't invest anything, but brings management expertise to the business. After a year, the business racks up $100,000 in debts and must close down. Based on this information, what is the total personal loss for you and your partner in the business?
$180,000
Which of the following is not a characteristic of short-term financing?
It must be repaid within three years.
Nicole is 50% owner in a manufacturing company that runs as an LLC. She invested $25,000 when the business started and has received no money from the business since then. The company just lost a $1,000,000 patent infringement lawsuit and will have to shut down. What is Nicole's personal loss on this business?
$25,000
Winshare Art Company has issued only common stock. Currently it has 10,000 shares outstanding. The value of the stock is shown as $20 per share. In addition, $100,000 of Winshare's earnings have been reinvested in the business since it was founded. What is Winshare's total owners' equity.
$300,000
The Zebra Corporation is owned by three people. John owns 40%, Sam owns 35%, and Mitchell owns 25%. However, Mitchell does at least 50% of the work and John is a passive owner who does no work at all. If the company makes $100,000 profit this year and decides to distribute it all to the owners, how much would John get?
$40,000
Entreprenuerial LLC is a small private consulting company that uses cash accounting. For 2003, Entrepreneurial LLC has billed clients $100,000 but has only received $90,000 in cash payments. Entrepreneurial LLC has incurred expenses of $50,000 but only paid $45,000 at the end of the year. What is Entrepreneurial LLC's net income on a cash basis?
$45,000
Hallmark cards develops a new line of cards that have a total cost of $200,000 and a price of $3 each. If it sells 20,000 cards the first month, what is its total revenue?
$60,000
A firm had gross profits from sales in the amount of $180,000; operating expenses of $90,000; and federal income taxes of $20,000. What was the firm's net income after taxes?
$70,000
As the accountant for Ideal Manufacturing Company, you determine the following totals in your balance: total assetsÄÄ$124,000; current liabilitiesÄÄ$41,000; long-term liabilitiesÄÄ$13,000. What is the total for owners' equity for this company?
$70,000
During 2015, Luxury Jewelry Inc. had sales revenues of %1,500,000. This retailer also had expenses that totaled $800,000. What is the firms profit or loss amount?
$700,000
Big Box Corporation has two owners who share the work equally. Susie owns 80% of the company stock and Sheryl owns 20% of the company stock. Susie invested 60% of the money required to start the business. If the company makes $100,000 profit this year and decides to distribute it all to the owners, how much will Susie get?
$80,000
According to the Kauffman Foundation, the average new firm required _____ in startup capital, although a large share of businesses start for less than _____.
$80,000; $5,000
If you are taking a common sense approach to evaluating a firm's accounting information, which of the following would be something that you would hope to see?
-Financial statements audited by an outside source -Remembering that a balance sheet is only a snapshot in time -Strategies to reduce operating expenses -How the company manages its cash flow NOT Paying great attention to current profit and not worrying about the future
Steps of the implementing process
-Obtaining information about existing and potential customers -Pinpointing needs and potential customers for further marketing activities -Mobilizing marketing resources to provide, promote, and distribute products -Obtaining new information about effectiveness of efforts
When Toyota experienced declining sales, it began offering price incentives to new car buyers. Nearly, immediately, Ford and General Motors began similar promotions. These businesses:
-Represent an oligopoly in which there are few sellers, and sellers often match the prices of competitors.
Firms market share
-can be defined and measured in several various ways. -may be limited by its own or its intermediaries 'view' to the market. -can be improved by having the right products and support. -can be decreased by not having the right price at the right time. ***all of these affect market share.
When Joan Newport attended the orientation for new employees in the accounting department at Madison Oil and Energy Exporation, she was told that the users for financial accounting information are
-government agencies. -suppliers. -investors. -managers. ***all of these are users for financial accounting information.
Koolers Incorporated feels that at its current stage—growth—it needs to meet its competition. It can best do this by all of the following means:
-initiating product improvements. -expanding the product line to appeal to specialized market segments. -lowering prices. -emphasizing customer service and prompt credit for defective products. EXCEPT: eliminating less profitable versions to the product
General Mills is setting up a marketing information system to keep track of marketing trends. External sources of marketing data include all of the following:
-raw material suppliers. -forecasts about general economic conditions. -customers. -competitors' activities. EXCEPT: the company's historical sales data.
Groupthink occurs when:
-the culture of the group becomes so strong that members only think of themselves and ignore the task. -group influences moderate extreme views such that there is a move toward a risk-avoiding compromise. -concern for solidarity outweighs the ability to think sensibly. -reasons for maintaining group feelings are found, rather than rethinking a problem. ***All of these are dangers of groupthink.
All of the following are characteristics of the introduction stage of the product life-cycle
-usually, a low profit or even a loss -relatively few competitors -often, high price -low consumer awareness and acceptance of the product EXCEPT: the appearance on the market of refinements or extensions of the original product
As the accountant for Marston Retail Stores, you must calculate the current ratio for the firm's last accounting period. The firm's current assets were $120,000, its fixed assets were $240,000, its current liabilities were $80,000, and its long-term liabilities were $60,000. Given these facts, what is the firm's current ratio?
1.5
Baxter Equipment earned $300,000 last year. Its owners' equity totaled $2,500,000. Based on these amounts, what is the firm's return on owners' equity?
12 percent
The cost of goods sold for McPherson Fashions is $360,000. The beginning inventory for the firm was $20,000. Twelve months later the ending inventory was $40,000. What is the firm's inventory turnover?
12X
Which of the following would most likely be considered the safest investment?
A U.S. Treasury Bill
Ten years ago when Mary started a small business, it cost $10,000 to design and launch her website—and it didn't even have e-commerce capability. Now, she is able to launch an online store for less than $100 per month. This is an example of which factor contributing to entrepreneurship?
Advances in technology
The economy in the United States has been lagging and is in danger of falling into a recession or even a depression. Based on historical actions, which of the following is the Fed most likely to do as a primary means to control the economy?
Buy government securities
Which of the following will increase an investor's risk?
Buying a 'BB' rated bond with cash from a bank savings account.
If the value of the Canadian dollar increases substantially relative to other currencies what is the likely result?
Canadian exports will decrease and imports will increase.
Which section of the statement of cash flows would show Wendy's payments for food ingredients and wages paid to employees?
Cash flows from operating activities
Julian Chan and Sam Jones each invested $10,000 in cash to start a business. Prior to their investment, the firm had no assets, liabilities, or owners' equity. Which one of the following is an example of the results of this transaction?
Cash is increased by $20,000, and owners' equity is increased by $20,000.
Beth is a part of top management and oversees all marketing activities of the organization. Her title is most likely:
Chief Marketing Officer.
You and four friends are opening a studio to create new Xbox games. You hope to raise $500,000 early on by selling equity in the business. You'll then reinvest profits back into the business to drive growth and minimize taxes. Within 5 years, you hope to sell the majority of the business to an angel investor or venture capital firm. Which form of business best fits your needs?
Corporation
Which of the following business forms are created under state law and require registration with the Secretary of State?
Corporations Limited Liability Companies Limited Partnerships Limited Liability Partnerships (All of the above)
When Sony Corporation of Japan purchased Columbia Pictures Entertainment Inc., of the United States, Sony made a(n):
Direct investment in the United States
With regard to taxation of partnerships, which of the following statements is true?
Each partner is taxed in the same way as a sole proprietor.
An organization of nations formed to promote the free movement of resources and products among its members and to create common economic policies is called a(n):
Economic Community
The manager of a large retail chain recently spoke to a group of college students about being successful in the business world. He focused particularly on the importance of fulfilling the purpose of the business organization: that is, to produce and market profitable products needed by society. In so doing, he indicated that a stockholder, not the society as a whole, invests in a corporation to earn a return on his or her investment and that a firm is legally obligated to act in stockholders' interests. What concept do the manager's comments reveal?
Economic model of social responsibility
American automakers are concerned about the availability of so many foreign cars to U.S. consumers, which they hear could cause loss of jobs in the American auto industry. To address the situation, the encourage Congress to:
Enact export embargo
The team you manage reduced defects by 20 percent last month. Much of this was due to the leadership of your floor supervisor, who launched a process improvement initiative. As a reward, you give each team member a $2,500 bonus. In addition, you give only the floor supervisor a plaque and two extra paid days off. This makes some team members unhappy because they perceive inequity. Which of the following is the best solution?
Ensure you have communicated the basis of the rewards to the team.
A medium-sized hardware manufacturer wants to become deeply involved in exporting, but it does not yet wish to actually manufacture any of its products overseas. The company wants to maintain control over its sales while gaining experience in foreign markets. Which option would be best for this company?
Establishing its own sales offices in foreign countries.
Tony Shinn is applying for a mortgage to purchase his first home. His credit rating is poor due to several late payments on his credit cards and car loan. He is upset because his friend Jerry—who has excellent credit—was approved for a loan, while Tony was rejected. This mortgage company's actions were:
Ethical—because credit history is an important factor in credit decisions.
During the recent economic crisis, the Fed took several important steps to attempt to minimize the effects of the crisis for both businesses and individuals. Which of the following was not a step that the Fed took during this time?
Expanded its network of district banks to 18
As Rachel Smith and her friends prepare to graduate from college, they are faced with numerous job offers that include starting salaries better than they could have imagined. Based on this information, what is this economy's most likely stage in the business cycle?
Expansion
Which of the following statements about GAAP is correct?
GAAP requires that costs and expenses be "matched" to related revenues in the same accounting period.
Which of the following would represent the healthiest economic scenario for the United States?
GDP expansion, unemployment at 5%, and 2% inflation
If Susan Gonzalez, vice president of marketing, is at the stage in her market research where she is gathering information about the problem from published data and from people who have experience with the problem, she is at which stage?
Gathering information
Which of the following business forms does NOT require you to register the business with the Indiana Secretary of State:
General Partnership
When Robert Keening became president of Snow Bird Airlines, he began brainstorming with groups of employees to get their opinions on how to turn around the airline's declining sales, which he had determined was due to increased competition. These meetings with employees represent which part of the decision-making process?
Generating alternatives
Which term best describes when the Team's goals and the Organization's goals are in alignment:
Group Cohesiveness
Typically your process improvement team at work is creative and generates innovative solutions. But recently a team leader emerged, and the team almost automatically agrees to every idea she suggests. When you try to provide an opposing point of view, you get shot down immediately. This demonstrates which potential disadvantage of teamwork?
Groupthink
Which of the following is NOT an advantage of group decision making:
Groupthink which helps improve the decision making process
Team effectiveness is generally improved by:
Having a clear charter and mission for the team when the team is established
David believes that all promotional activities should be completely eliminated. What commonly held misconception does David likely have about promotion?
He believes that promotion is unnecessary and simply causes prices to be high.
An undercover investigation of large electronics manufacturing plants overseas revealed that employees often work in crowded conditions for long hours, and are exposed to a variety of hazardous chemicals. In addition, it was suspected that some of these chemicals are disposed of in nearby drainage pipes that lead to the sea. These are examples of which two concerns regarding the impact of business on society?
Health/safety risks and environmental damage
Driscoe, Inc., is in the process of developing an advertising campaign for its new product. It has identified the group to whom it will direct advertisements and has drafted the advertising objectives. Which of the following is not an advertising objective and thus should be deleted from the list?
Hire a marketing manager within one year.
According to the Thomas Kilman Conflict Model, the "competing" style is best described by which of the following statements?
I show him the logic and benefits of my position.
As Kyle conducts annual evaluations of his employees, he notices that Mari and Debbie have both been less productive since they were relocated to the same department. Kyle is in what stage of the managerial decision-making process?
Identifying the problem or opportunity
Revenues - cost of goods sold - expenses = net income characterizes which financial statement?
Income statement
If Japan were concerned that electronics coming from China were hurting the Japanese electronics industry, which of the following actions would they take?
Increase import tariffs on Chinese electronics by 50%
If the U.S. were to increase the tariff for steel by 50%, what is the desired effect of this change?
Increase the price of steel imports and decrease the amount of steel imports
The firm's use of debt to increase the return on owner's equity:
Increases the firm's riskiness to shareholders
Adam Smith's view of an economic system that best serves the interests of society?
Individuals in the country may pursue their own economic gain and self-interest by doing whatever is best for them.
Zero Manufacturing produces somewhat typical, standard candy bars. The company would probably choose which of the following to reach its target market?
Intensive distribution
As Greece, Spain, and Portugal have struggled with recession, high unemployment, and soaring government debt, concerns have risen that their economic problems could spiral out of control and spread to the global economy. What international organization could most likely assist in this situation?
International Monetary Fund
Kathryn, a marketing researcher, is currently analyzing the information collected and determining what possible opportunities it has for management. At which stage of marketing research is she?
Interpreting information
If a company has $50,000 of assets, which of the following could be true?
It has $23,000 in owners' equity and $27,000 in liabilities.
Which of the following is true about job enrichment?
It increases the number and/or variety of tasks performed by employees
Which of the following is characteristic of the term 'Groupthink'
It is a decision bias caused by members of the group striving for agreement among themselves.
A debt to owners' equity ratio of 48% means:
It will make borrowing additional money from lenders easier.
Jean is about to purchase the franchise rights for a fitness facility. Her key reservation about pursuing a franchise as opposed to opening her own gym from scratch is:
Jean must pay a franchise fee to get started, along with a certain percentage of profits.
If Procter & Gamble, a U.S. leader in household products, and Reckitt Benckiser, a British leader in household products, from a partnership to develop and distribute a line of ecologically friendly laundry detergent, the partnership would be a(n):
Joint venture
Judy, Betty, and Bob want to limit liability for their business debts, but they want to avoid double taxation. Which type of business ownership would you recommend?
LLC
Three college graduates want to start an auto shop. Two of the partners will do most of the work, so they plan to share 40% of the profits each. The remaining partner will get 20% of the profits. Because working with other people's cars can create liabilities, they want a form of business that provides liability protection. Which form of business best fits their needs?
LLC
You and four friends are investing $10,000 each to start a business. To keep things even, you will all own 20% of the business and will contribute 20% of the work required to make the business successful. If the business makes a profit, you'll each get 20%. However, you all agree that the business must provide liability protection and feature pass-through taxation. Which form of business best meets your needs?
LLC
Charlene and Phil would like a form of business that combines the benefits of a corporation and a partnership, while avoiding some of the restrictions associated with those forms of ownership. They should form a(n):
LLC.
A division manager has expanded her staff by 10% to help reach the company's sales goals for the year. But now she finds that morale is low, which could jeopardize chances of reaching that sales goal. She increases salaries by 15% as a result, and begins meeting weekly with the team. These activities fall primarily within which function of management?
Leading and motivating
Which of the following methods does the Federal Reserve System not use to control the money supply and the economy?
Lends money to private businesses
If Indonesia enacts an embargo on all goods from the U.S. and changes average import tariffs from 10% to 30%, what is the expected impact in Indonesia?
Less consumer choice
Suppose Gillette is seeking a manufacturer in Bangladesh who will produce and market Gillette razors in that country. Gillette expects a royalty from its partner in Bangladesh. Which arrangement will be the best choice for Gillette?
Licensing
Suppose Gillette is seeking a manufacturer in Bangladesh who will produce and market Gillette razors in the country. Gillette expects a royalty from its partner in Bangladesh. Which arrangement will be the best choice for Gillette?
Licensing
Which of the following is considered the most important advantage of online banking for financial institutions?
Lower cost of processing large numbers of transactions
Coca-Cola wants to determine how popular its new soft drink will be before launching it nationwide. What will Coca-Cola most likely use?
Marketing research
What are the two benefits of importing?
More consumer choice, lower consumer prices.
Although changes have occurred over the years, _____ is historically considered to have a communist economy.
North Korea
To be efficient and effective, Teams should:
Not meet unless necessary if the objective can be met without meeting as a group
At Victoria's Secret, managerial approval is required whenever an employee makes a purchase at the store using an employee discount. Which factor affecting ethical behavior is Victoria's Secret seeking to control?
Opportunity
Perlita works in a highly competitive financial services firm. Salespeople who meet their goals are given large bonuses, but those who don't are often fired. The actions of the sales force are often unsupervised as well. In this situation, what factor related to ethical decision making will most likely influence the actions of salespeople in the firm?
Opportunity factors
After creating a strategic plan, an executive at Microsoft then looks at how to configure her departments to most effectively reach the company's goals. She is practicing which function of management?
Organizing
If total liabilities were subtracted from total assets, the residual value would be:
Owner's equity
The resources owned by David's Spa and Salon total $148,000. The total amount of debt that it owes to others is $87,000. Which of the following about David's Spa and Salon is true?
Owner's equity is $61,000
Which of the following is not a major marketing mix element?
Packaging
If you are taking a common sense approach to evaluating a firm's accounting information, which of the following would not be something that you would hope to see?
Paying great attention to current profit and not worrying about the future
The maker of Oral B toothbrushes is introducing a new electric plaque remover and expects considerable competition. What pricing strategy would be appropriate for this maker to choose?
Penetration pricing
Which of the following stages in group development yields the most productive external results:
Performing
You have at least 30 years until your retirement. Which of the following investments is most likely to give you the highest return on your retirement investment?
Portfolio of Small U.S. Company Stocks
HP considers its extensive line of printers to be superior to other brands. To communicate the product's superior quality, which price may be appropriate for their printers?
Premium
Group conflict and dissent:
Should be encouraged as it can lead to more 'optimal' solutions
A sense of belonging is a characteristic of which level in the hierarchy of needs?
Social
You enjoy the increased creativity that comes from working with the product launch team at work. But one team member spends most meetings texting, and rarely volunteers for any meaningful tasks on the project. This demonstrates which potential disadvantage of teamwork?
Social loafing
By establishing Ronald McDonald Houses, temporary lodging for individuals with seriously ill family members, McDonald's has committed itself to more than just shareholder wealth. The corporation's active role in improving societal conditions suggests that it is responsive to which of the following arguments for the socioeconomic model of social responsibility?
Social responsibility promotes environmental stability and long-run profitability.
Which business forms incur "unlimited personal liability" for all owners and are viewed as an "extension" of the owner(s)?
Sole Proprietorships and General Partnerships
Which form of business is the easiest to start?
Sole proprietorship
You used to be the sole member of the logistics department, which made it easy to select trucking carriers, schedule shipments, and organize the warehouse. Now the department has three other employees, all with extremely different working styles. This can be frustrating and makes it harder to accomplish many of these same tasks. This demonstrates which potential disadvantage of teamwork?
Team conflict
If performing a SWOT analysis, which of the following would least likely be classified as a threat to an organization?
The company's inexperienced management team
If the size of the economy has grown for the last three quarters, but prices overall have dropped
The economy is in an expansion phase and CPI is decreasing.
If the size of the economy has grown for the last three quarters, but prices overall have dropped, which of the following is true?
The economy is in an expansion phase and CPI is decreasing.
Which of the following statements is false?
The format and information contained in one firm's financial statements are most likely to differ drastically from the format and information contained in another firm's financial statements.
A small country in Central America previously produced all of their own clothing because they have a strong textiles industry. Recently, the began importing clothing from Philippines, Vietnam, and Bangladesh. What is the likely result?
The importing country will likely shift resources from textiles to a higher value industry.
If the assets of Martin's Pet Store are $107,000 and the owners' equity is $75,000, which of the following is a true statement?
The liabilities are $32,000.
According to the accountant for Michael's Floral Supply, the firm's assets are $124,000 and its liabilities are $31,000. Which of the following statements is true?
The owners' equity is $93,000.
As a farmer, Gary Forsythe is familiar with the economics of perfect competition. How is the price at which he sells his corn determined?
The price is determined by combining the actions of all buyers and all sellers together.
Which of the following best describes a typical scenario companies use in the commercialization phase?
The product is first introduced in selected geographical areas and then expanded in phases
Whirlpool failed to provide an instruction manual with a certain type of new washing machine. Which basic consumer right did Whirlpool's action violate?
The right to be informed
All American National Company earned $240,000 last year. The board of directors decided to pay out one-half of the firm's earnings to the stockholders. Before the board's decision, the firm's retained earnings were $740,000. Which of the following statements is true?
The value of the firm's retained earnings is now $860,000.
For a corporation such as AT&T, what are the two primary advantages of equity financing?
There is no obligation to pay dividends or to repay the money obtained from the sale of stock.
Which of the following is NOT a characteristic of marketing intermediaries?
They always increase the cost to the buyer.
Which of the following is the best example of a good advertising campaign objective?
This campaign will result in a 10 percent increase in sales by next February.
Who are the members of NAFTA?
United States, Canada, Mexico
What is the primary disadvantage of a sole proprietorship that a corporation overcomes?
Unlimited liability
Emma and Becka have grown their subscription cosmetics business by 500% each of the last two years. They have the potential to rapidly grow much larger if they could get access to the right funding. They are talking to some firms that specialize in funding high-growth companies. Emma and Becka realize the funding decisions made by these firms are highly competitive and selective. What type of funding are they pursuing?
Venture capital
If the United States and Japan cannot settle their trade disputes on their own, they should probably settle them through the:
WTO
If you wanted to evaluate Target Stores' (a leading discount chain) financial condition, you would MOST LIKELY compare its financial ratios to __________ ratios.
Wal-Mart's
Which of the following statements is true about wholesalers?
While wholesalers can be avoided, the functions they provide are necessary.
From the Corporate Culture Model by Deal & Kennedy, which type of corporate culture values & beliefs is MOST conducive to high performance teamwork?
Work Hard; Play Hard
Which of the following violates the ethical principal of avoiding conflicts of interest?
You choose a supplier because you are a shareholder in the supplier's company and stand to gain personally from the decision.
You live in a mixed economy and currently produce granola bars that are organic and non-GMO. As a result, consumers are willing to pay more for your product than others on the market. Based on the concept of supply and demand, how is this likely to affect your production planning?
You will increase production to take advantage of the higher prices.
Financial accounting information provided by a public corporation would include all of the following EXCEPT:
a corporation's income tax return.
In the U.S., it can take just a few days and less than a couple hundred dollars to start a business. This is an example of:
a culture of entrepreneurship.
According to economists, inflation is:
a general rise in the level of prices
A computer-based system for continually gathering internal and external information is called:
a marketing information system.
Exchange rates between countries are usually determined by:
a number of factors including interest rates, inflation, and imports/exports for the countries.
All of the following are acceptable ways of stating the accounting equation except:
owners' equity - liabilities = assets.
An airplane that FedEx owns and uses to deliver packages is a(n) _____ of FedEx.
asset
The process of systematically collecting, analyzing, and reporting financial information is called:
accounting.
An important measure of a firm's ability to pay its current liabilities quickly is the
acid test ratio
Dollar General takes out a long-term business loan. Which of the following is least likely to be the intended use of the loan?
addition of retail facilities
Ten years ago when Mary started a small business, it cost $10,000 to design and launch her website—and it didn't even have e-commerce capability. Now, she is able to launch an online store for less than $100 per month. This is an example of which factor contributing to entrepreneurship?
advances in technology
Sears would like to promote its new line of dishwashers with the multi-flow system. Since this is a new feature, Sears needs to be able to demonstrate the product. Sears will most likely use:
advertising.
In general, consumer goods will depend on ____; industrial products are more likely to use ____ as the primary focus of their promotion mix.
advertising; personal selling
In general, consumer goods will depend on ______ ; industrial products are more likely to use ______ as primary focus of their promotion mix
advertising; personal selling
For Minute Maid's new line of juice drinks to be successful, the company developed a promotion mix to reach a wide audience. The most effective promotion mix for reaching a wide audience would include ____ and ____.
advertising; sales promotion
Marketing managers are better able to predict consumer responses to marketing strategies and to develop a satisfying marketing mix if they are aware of the factors that:
affect buying behavior.
Title VII of the Civil Rights Act of 1964 addresses the issue of workplace discrimination based on all of the following EXCEPT:
age.
The part of a brand that can be spoken—letters, words, numbers, and/or pronounceable symbols—is called a:
brand name
China his become a dominant exporter of electronics to the U.S. and European markets. What is a direct effect of China's growth in exports?
an increase of jobs and income in China
Keisha and Donnie decide to go into business together. They start by writing an agreement explaining the terms of the business they will both own, along with each of their responsibilities. Keisha and Donnie created a(n):
articles of partnership.
Using a loan from his parents, Eric starts his own landscaping business by purchasing a lawn mower, weed eater, and a used truck for transporting the equipment. When recording his transaction for his new business,
assets increase and liabilities increase.
Which of the following industries would most likely have the characteristics of an oligopoly?
automobiles
The balance sheet is composed of:
owners' equity, assets, and liabilities.
Another name for the statement of financial position is the:
balance sheet.
Why should companies develop and introduce new products?
because failing to do so can threaten the future success of the firm
Peter Piper approached Jane B. Nimble about becoming a partner or active owner in a firm that destroys environmental waste. While Peter would like to become an active owner in the firm, he is concerned about his liability because he has recently inherited a lot of money. In this situation, Peter should:
become a member in an LLC.
Bic ballpoint pens appeal to price-conscious consumers because of their affordability. Bic has segmented its market on a _____ basis.
behavioristic
Ski XYZ Company manufactured too many ski jackets, overestimating the quantity retailers would purchase. So Ski XYZ had offered its customers a lower cost of purchase, 20 percent lower, if they reorder ten or more jackets. The company is displaying an example of what?
buy allowances
A higher price could increase sales if
buyers consider price to be indicative of quality.
The expectancy theory says that people are motivated:
by how much they want a certain outcome and the chance they have of achieving it.
Vince Martinez has been described as a visionary. He has the ability to think in abstract terms and see how all the pieces of his company fit together. Vince has _____ skills.
conceptual
Earnings per share, return on sales, and return on equity are all examples of:
profitability ratios.
The financial statement that provides information about a firm's operating, investing, and financing activities during an accounting period is the:
cash flow statement
Dave, an entrepreneur, intends to open a chain of very large retail stores that specialize solely in men's pants. He wants to stock pants for every occasion and from every country on the planet. Dave believes he can sell the enormous variety of pants at 10 to 30 percent below his competitors' prices and still make a profit. His store, Just Pants, would be classified as a
category killer.
When DVR recorders were first introduced, the price was very high, often preventing the average consumer from purchasing one. Today, as a result of increased competition in the market, DVRs are significantly cheaper. By reducing the price of these products and ensuring a large number of product offerings, competition has promoted the consumers' right to:
choose.
Federal Savings Bank of Columbia is a for-profit organization that accepts deposits from all its customers, provides them with services, and makes loans. This is a(n):
commercial bank.
For many years, HBO insisted that its current shows would only be offered via paid cable subscription. Partly because of the rise of Hulu, Netflix, and other on-demand viewing services, HBO launched its own HBO Go on-demand service. This is an example of HBO being influenced by what factors in the business environment?
competitive
A major drawback of price competition is that:
competitors can also lower their prices.
All of the following are classified as fixed assets except:
computers held for resale
The Glo-Brite Company is considering development of a new children's toothpaste in fun-shaped dispensers. Before performing any business analysis on the product, Glo-Brite would like an initial response from potential customers to determine interest in a toothpaste of this type. Glo-Brite will begin _____ to gather the information.
concept testing
An entrepreneur needs the ability to act decisively and be a leader of the business. This relates to the entrepreneurial characteristic of:
confidence
Small businesses represent the majority of firms in the:
construction industry.
Teenagers spend billions of dollars on smartphones, music downloads, and video games. They have the ability, willingness, and authority to purchase such products because of their perceived need. These teenagers are an example of a(n) _____ market.
consumer
Joseph Kuhn was trained as an engineer, but recently he has been assigned the marketing responsibility for his company. In his role as a marketer, he wants to know what marketing can and cannot control. You indicate that marketing cannot control:
consumers' social values.
After reviewing a report showing that one of the company's competitors recently increased its market share by 10 percent, the president called a meeting and asked the marketers, "Is there anything we can do about this?" The marketers responded, "We can modify our marketing mix, but we cannot:
control the marketing strategies of our competitors."
Alaska Airlines has established a goal of increasing profits by 12 percent next year. To ensure that the goal is reached, management monitors profits on a monthly basis. After three months, if profits have not increased by 3 percent, management will take corrective action to get the company on track. By doing so, management is carrying out its _____ function(s).
controlling
The management team at T-Mobile is reviewing new subscriber growth this quarter compared to last quarter. They are engaging in which function of management?
controlling
A growing pizza restaurant was originally formed as a sole proprietorship because it was based on the owner's family recipe. The restaurant has become so popular that several wealthy people have inquired about investing money to help the business open more locations. If the owner had known there would be an opportunity to sell shares of the company in exchange for investment capital, he would have chosen a(n):
corporation.
The type of entity that exists independent of the owners is a(n):
corporation.
Penicillin, airplanes, and air conditioning were all:
created by individual inventors and small companies.
Shanda Lucas obtained a bank loan to buy a $70,000 Porsche. As the borrower, Shanda obtained immediate purchasing power. This can be described as:
credit
You typically work in the marketing department, but you are currently assigned to a team with employees from operations, finance, and research. Based on this information you are on a:
cross-functional team.
Cash, marketable securities, notes receivable, and merchandise inventory are examples of:
current assets
The product Centrum Silver is positioned as a vitamin supplement for older adults. The makers of Centrum Silver have segmented the vitamin market on a _____ basis.
demographic
In accounting, the process of spreading the cost of a long life fixed asset over the asset's useful life to the periods benefited is called
depreciation
The price of computers drops by 20%. What is the most likely impact on supply and demand?
demand up, supply down
Hillary has a new product idea that aligns well with her company's current organizational resources. She puts together a presentation for potential buyers and requests feedback on their reactions and suggestions. Hillary is:
development and testing.
Services are usually distributed through
direct channels.
When Sony Corporation of Japan purchased Columbia Pictures Entertainment, Inc., of the United States, Sony made a(n):
direct investment in the United States.
All of the following are examples of sales promotion except:
direct-response advertising.
In determining whether to manufacture and market a line of luxury automobiles, Ford Motor Company studies the effects of economic conditions on consumers' ability and willingness to buy. The company is assessing _____ forces.
economic
The forces that make up the external, uncontrollable environment affecting marketing include:
economic, legal, sociocultural, competitive, political, and technological forces.
In regards to cash flow, a firm should ideally have:
enough money coming into the firm to cover the expenses in that period.
An individual's desire to create a new business is referred to as:
entrepreneurial spirit
A firm can raise ___________ through the sale of ownership in the firm.
equity capital
Money received from the sale of shares of ownership in a business is called:
equity capital.
Financial managers should:
establish a means of monitoring financial performance on an interim basis.
When Sara was recognized by the store manager for exceeding her past year's objectives, and when the announcement of her promotion to assistant store manager was made, this fulfilled which level on the hierarchy of needs?
esteem
Products such as very expensive Patek Philippe wristwatches are distributed using ____ distribution.
exclusive
The statement of cash flows for a business offers information on all of the following except:
expenses during a particular accounting period.
Your supervisor typically brings donuts to the weekly meeting as a reward for everyone being on time. For the last two weeks, some members were late, so your supervisor stopped bringing donuts to future meetings. This is an example of:
extinction.
All business forms require
filing tax returns with the IRS.
The use of borrowed funds rather than equity capital to increase the return on owner's equity is called:
financial leverage.
Since furniture and store equipment for Rosalind's Boutique will be held or used for a period longer than one year, they are considered:
fixed assets.
In all states except the one in which it is incorporated, a business is known as a(n)______________ corporation.
foreign
Buthcher at Bigs Butcher Shop hand cut steaks to the preference of their customers and trim of excess fat. The extra services provide________ utility.
form
The purpose of an audit is to ensure that financial statements have been prepared according to:
generally accepted accounting principles.
A model of "team effectiveness" includes:
goals, roles, relationships, procedures
A good marketing strategy begins with
good marketing information about present as well as potential markets, customers, and the marketing environment.
The accounting value of a firm's reputation, location, earning capacity, and other intangibles that make the business profitable is called its
goodwill
The primary sources of funds available to a business include all of the following except:
government grants.
For the previous year, Sambino's Italian Restaurant had a total of $320,000 in expenses and $295,000 in revenues, Sambino's
had a net loss of $25,000 for the year.
Thomas wants to make money, so he starts his own business as a sole proprietor. He likes this form of business because:
he will get to keep all of the profits the business makes.
A(n)___________ is a summary of a firm's revenues and expenses during a specified accounting period, such as a year.
income statement
Another name for the Profit and Loss Statement is the
income statement.
Generally, the yields on U.S. treasury bills, notes, and bonds:
increase as the maturity increases.
American automakers are concerned about the availability of so many foreign cars to U.S. consumers, which they fear could cause loss of jobs in the American auto industry. To address the situation, they encourage Congress to:
increase import tarrifs.
As the price of jeans rises, manufacturers that make and sell jeans are likely to:
increase production and thus increase the supply.
According to the supply and demand curve, the quantity demanded by consumers
increases as the price decreases
During the recent economic crisis, many companies found that it was:
increasingly difficult to acquire and use many of the traditional sources of financing that they were accustomed to.
CPI increased by 10% last month, alarming economists. This news is an indication that:
inflation may be spiraling out of control.
Leadership can best be defined as the ability to:
influence others.
When Pepsi decides to develop a new product, it creates the product itself, determines the price the new product will sell for, decides how to distribute the product to consumers, and develops a promotion campaign to inform the market of the new product. Pepsi has created a(n):
marketing mix.
If Jeans Inc. wants to ensure that customers receive a consistent message about its product, it should use the concept of:
integrated marketing communications
The marketing challenge of making potential customers aware of the product's existence and its features, benefits, and uses is prevalent in which of the product life-cycle stages?
introduction
Customer satisfaction
is increasingly based on consumers 'time' and shortening the time it takes to find, select, and buy goods.
All of the following are benefits of advertising except:
it can exaggerate the effects of certain products.
When a company collects external marketing data, it looks at information about:
its customers
According to two-factor theory, the presence of _____ is unlikely to create job satisfaction, but its presence will help avoid dissatisfaction.
job security
If Procter & Gamble, a U.S. leader in household products, and Reckitt Benckiser, a British leader in household products, form a partnership to develop and distribute a line of ecologically friendly laundry detergent, the partnership would be a(n):
joint venture.
Crystal is the general manger for a large team of skilled and experienced programmers at a rapidly growing social media company. She wants to utilize a leadership style that fully utilizes the talents of her team and reduces the number of managers required to oversee the operation. She would choose:
laissez-faire leadership
A division manager has expanded her staff by 10% to help reach the company's sales goals for the year. But now she finds that morale is low, which could jeopardize chances of reaching that sales goal. She increases salaries by 15% as a result, and begins meeting weekly with the team. These activities fall primarily within which function of management?
leading and motivating
Once managers have generated a set of different alternative courses of action, they must evaluate the advantages and disadvantages of each. Which of the following represent the key criteria managers should consider when evaluating alternative courses of action?
legal, ethical, economically feasible, practical
All of the following are sections of the income statement except
liabilities.
The partner who can lose only what he or she has invested in a business is the
limited partner.
The ease with which an asset can be converted into cash is referred to as its:
liquidity.
Debts that are to be repaid in two years are referred to as
long-term liabilities
Consumers who strongly feel that the distribution channel should be made as short as possible also assume that the fewer the intermediaries, the:
lower the price
Your friend Elizabeth says that all the Fed does is lower or raise interest rates. You explain that the Fed's actual mission is to:
maintain an economically healthy and financially sound business environment.
IRI, a marketing research firm, has been contracted by T-Fal to evaluate the market performance of a new line of cookware. Which of the following is not likely to be a step in IRI's research process?
making decisions about whether or not the cookware's market performance is acceptable
All of the following are categories of promotion except:
managerial relations.
When Beatrice Beatlebottom attended the orientation for new employees in the accounting department at Joy Manufacturing company, she was told that the primary users of the managerial accounting information are
managers.
All of the following are services provided by wholesalers to retailers except:
manufacturing a wide selection of products.
Perfect competition is characterized by:
many buyers and many sellers
Dell Computers purchases most of its parts from several suppliers and then assembles products based on customer specifications. The company's hard drive supplier's contract will expire soon and Dell intends to shop around for a new supplier. The purchasing process could involve all of the following except:
market research
If Nabisco had established a pricing objective of selling one out of every three crackers consumed in the world, it would have established an objective based on
market share.
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 is:
marketing.
When incorporating, a business
may incorporate in any state it chooses.
It is easy for Mark to compare the differences in price when he is shopping for a new truck because money is a:
measure of value.
In many stores in Canada, U.S. currency is accepted for payment because the retailers know that their suppliers and other customers will also accept it. In this example, money serves as a:
medium of exchange.
The United States, whose economy exhibits elements of both capitalism and socialism, has what is known as a _____ economy.
mixed
Under Herzberg's theory, when _____ factors are present in the work environment, workers will be satisfied; when _____ factors are absent, workers can become dissatisfied.
motivation; maintenance
Which of the following encourages desired behavior by eliminating an undesirable task or situation?
negative reinforcement
You know that your team's least favorite part of the month is manual inventory time. To motivate your team, you tell them that if they meet the sales goal for the month, they don't have to do inventory. This is an example of:
negative reinforcement
You know that your team's least favorite part of the month is manual inventory time. To motivate your team, you tell them that if they meet the sales goal for the month, they don't have to do inventory. This is an example of:
negative reinforcement.
The cash that Coca-Cola receives from providing customers with Coke and other soft drinks and juices would appear in the _____ section of the statement of cash flows.
operating
When each new budget is based on the dollar amounts contained in the budget from the preceding year, a company is using a(n) _____ budget.
operating
Brenda Simpson is in charge of designing the production layout for a new Saturn plant, and also in charge of supply chain management at the plant. In terms of her functional specialty, Brenda is a(n) _____ manager.
operations
A SWOT analysis is an identification and evaluation of a firm's strengths, weaknesses, _____, and threats.
opportunities
After creating a strategic plan, an executive at Microsoft then looks at how to configure her departments to most effectively reach the company's goals. She is practicing which function of management?
organizing
All of the following are acceptable ways of stating the accounting equation except
owners' equity - liabilities = assets.
Gary recently noticed that the plant he is managing is delivering only 30 percent of its products on time. To determine the problem, he assembles various department heads and the plant supervisor to get their input on the matter. Although the ultimate responsibility is his, he has no difficulty delegating decision-making authority to any member of this group. This style of leadership suggests that Gary is a(n) _____ leader.
participative
The downside of _____ decision-making is that decisions take longer and the team may react poorly if their input is not accepted.
participative
Stan has a lot of expertise in architecture, but doesn't know much about management. He'd like to share ownership in a business with another person who could offer the management expertise to make the business successful. He would most likely form a:
partnership.
All those activities concerned with the efficient movement of products from the producer to the ultimate user are called:
physical distribution.
When Target decides the number and locations of warehouses it needs to build and operate, it is addressing the _____ element of the marketing mix.
place
If Facebook sets a goal of having 1.5 billion active users by 2017, that falls within the _____ function of management.
planning
Adding a reward for a desired behavior is called _____ and withholding a reward to discourage a behavior is called _____.
positive reinforcement; extinction
The two types of stock a company can sell are:
preferred and common.
The strategy of charging the highest possible price for a product during the introduction stage of its life cycle is known as
price skimming.
The elements of marketing mix that the firm does control are
price, place, promotion, and product.
Jane Cook started a small manufacturing firm two years ago. Now, after two years, she decides it is time to hire an accountant to work in the office and process all her financial data. This accountant will be a:
private accountant.
When KFC Corporation decides on brand names, package designs, sizes of orders, and flavors of sauces and recipes, it is controlling which element of the marketing mix?
product
The largest number of product ideas are rejected during the _____ stage of new product development.
product analysis
Reducing packaging materials is an example of which sustainability strategy?
product design improvements
All of the following are stages in the development of new products except:
product modification.
You have found that the collaboration you have with your cross-functional team at work often leads to faster and more thorough results compared to when you're working alone. This is an example of how teams:
provide synergy.
When Pringles created the new "Snack Stacks" size of chip packages for lunchboxes, it ran advertisements and offered coupons for the product. The objective of this promotion was:
providing information.
Jim Wilson is trying out for his high school varsity basketball team. Jim feels he needs an extra advantage to ensure that he makes the team so he goes to Foot Locker. Once at the store, he chooses the best looking and most expensive shoes the store carries. Jim's buying process is influenced most by _____ factors.
psychological
Ernst & Young, KPMG, and PricewaterhouseCoopers are all:
public accounting firms.
Akiko is starting to notice some wrinkles around her eyes and mouth. She has decided to purchase some age-defying wrinkle cream but is unfamiliar with available brands. At the store, she picks out a brand because she remembers a clever advertisement about it on television. What level of brand loyalty does this describe?
recognition
An audit is:
required by many bankers and lenders who are trying to validate a firm's accounting statements.
A middleman that buys from producers or other middlemen and sells to consumers is called a(n):
retailer.
The Spirit Connection buys team logo gear from manufacturers and then sells the gear directly to consumers. The Spirit Connection is a:
retailer.
If a company invests $1,000,000 to develop and market a new product with a goal of earning $1,200,000 on the product by the end of the year, it will price the product based on
return on investment goals.
The ratio obtained by dividing net income after taxes by net sales is the ________________.
return on sales ratio.
Marilyn provides piano lessons to students in her home four days a week. The money she earns from providing these services would be called _____ on an income statement.
revenues
The _____ ratio is based on the principle that a high-risk investment should generate higher financial returns for a business and more conservative decisions often generate lesser returns.
risk-return
The statement "Warning: The Surgeon General Has Determined That Cigarette Smoking Is Dangerous to Your Health" supports the consumers' rights to:
safety and to be informed
The greatest part of a firm's financing is provided by:
sales revenue.
the elements of the marketing mix are combined to:
satisfy the target market
The elements of the marketing mix are combined to:
satisfy the target market.
You work on a team where the leadership role is rotated among team members. You hold each other mutually responsible for meeting team objectives. Based on this information you are on a(n):
self-managed team.
Monopolistic competition is a market situation in which:
sellers must differentiate their products from competitors.
Most manufacturers do not want to store large amounts of nuts, bolts, and screws, but they need to be able to get them out quickly when necessary for production. Regal Company is a wholesaler that will deliver most parts right to the factory within two hours of the order. Regal, like many other wholesalers, focuses on:
service.
Morgan is struggling with the new clothing store she started from scratch. Had she purchased the clothing store franchise she had considered, the advantage would have been that:
she would have the use of an advertised brand and marketing support.
Money that will be used for one year or less is called:
short-term financing.
Dillon Wholesale Foods allows retailers to purchase merchandise using trade credit. For Dillon, this type of transaction:
should be paid within thirty to sixty days
Publix, a southeastern grocery store chain, has signs saying that tips are not accepted, and employees are all informed of this policy. However, many of the baggers commonly accept tips from customers anyway, and they often compare to see who makes the most. The factor affecting the ethical behavior of Publix's employees is:
social.
While carrying large inventories may minimize ____ costs, it is likely to maximize ____ costs.
stock-out; holding or storage
Ricardo Martinez collected $300 last weekend for mowing yards. Rather than spending the money immediately, he set it aside in an interest-bearing account. He hopes to accumulate more than $3,000 to offset his college expenses this fall. For Ricardo, money is serving as a:
store of value.
Kelly Warren owns a frozen yogurt shop. She has decided to focus her marketing efforts on health-conscious customers. Kelly is using the _____ approach.
target market
All of the following characteristics influence team effectiveness EXCEPT:
team's financial resources
Erin has methodically worked her way from being a first-line manager at the factory to the position of chief operations officer. Along the way, her need to demonstrate _____ skills has decreased and her need to demonstrate _____ skills has increased.
technical, conceptual
Amazon is now one of the top 10 largest retailers in the U.S., even though they don't have any substantial physical retail presence. This illustrates the impact of _____ factors in the business environment.
technology
Wiseman Bookstores has an accounts receivable turnover of 6. This means that
the company collects its accounts receivable about every sixty days.
General Mills is setting up a marketing information system to keep track of marketing trends. External sources of marketing data include all of the following except:
the company's historical sales data.
A marketing strategy consists of the selection and analysis of a target market and:
the creation and maintenance of an appropriate marketing mix.
An individual's desire to create a new business is referred to as:
the entrepreneurial spirit.
Under GAAP accrual accounting, ATA airlines would recognize the revenue from the sale of an airline ticket when
the flight and ticketed passenger have landed at their destination.
Tim owns a McDonald's franchise that is having some troubles. Where is Tim most likely to go for advice and guidance?
the franchisor
As the product idea committee of Foster Manufacturing Company went through its list of possible new products, it rejected various ideas for one or more reasons. Which of the following is least likely to be a reason for rejection?
the product would allow the company to increase its annual sales by 20 percent
The TOTAL cost of producing a certain number of units of a product is
the sum of the fixed costs and the variable costs attributed to those units.
Laura keeps only $250,000 combined in her savings and checking accounts at Union Bank because she knows that:
this is the maximum amount insured per depositor.
Which of the following is external to a firm and exists independently of a company?
threats
Eric knows there is no guarantee his new green energy firm will succeed, but he quits his day job to start the new business anyway. This relates to the entrepreneurial characteristic of:
tolerance for uncertainty.
Every year in the city of Phoenix there is a Home and Garden Show that is open to the public and features hundreds of exhibits from local companies about ideas for improving their homes and gardens. This Home and Garden Show is a:
trade show.
Retained earnings are
undistributed profits.
Arthur was a salesperson for a manufacturing firm in the late 1920s. Which of the following would his employer most likely have asked him to do?
use high-pressure sales technique to sell more of the company's high production output
competition-based pricing is:
used when costs and revenues are considered secondary to competitor's prices
Competition-based pricing is:
used when costs and revenues are considered secondary to competitors' prices.
While Tamara currently has just one pet grooming store, she wants to validate the business model and prove it can be profitable. Once she has done that, her larger plan is to franchise the idea across the country. This relates to the entrepreneurial characteristic of:
vision
The ultimate factor that determines the price at which a product will sell is
what buyers will pay in the marketplace.
Mullin, Inc., purchases supplies such as paper towels, soap, toilet paper, and seat covers directly from manufacturers and then sells them to other firms. Mullin, Inc., is a(n):
wholesaler.
Suppose that last year it cost 1,000 British pounds to buy an American-made bicycle from the U.S. Due to changes in the currency exchange rate, a few months later the same bicycle only cost 800 British pounds to purchase. This change:
will likely increase the number of imports of these bicycles to Great Britain
