BUSAD 250 - Chapter 1,2,6

The framework that outlines how a firm plans to generate revenue is known as​ a(n) ____________. A. income statement B. balance sheet C. business mindset D. business model Your answer is correct. E. stakeholder model

Business Model

Every company takes risks in order to conduct business. Which of the following statements linking risk and reward is​ FALSE? A. The risk associated with business decisions needs to stay attached to those decisions. B. Without entrepreneurs and companies willing to accept​ risk, very little would get done in the economy. C. Without​ rewards, businesses would have no incentives to take risks. D. Businesses take risks in anticipation of future rewards. E. Any company that believes it can pursue rewards without facing risks has strong decision making entrepreneurs.

Any company that believes it can pursue rewards without facing risks has strong decision making entrepreneurs.

Which of the following is NOT a major contribution of small​ businesses?

B. They meet the needs of smaller organizations.

​A(n) _______ is a firm pursuing profits that offers products and services projected to fulfill​ consumers' needs. A. industry B. ​non-profit organization C. government economic agency D. business Your answer is correct. E. stakeholder

Business

​A(n) _________ summarizes an anticipated company​ project, including the​ project's objectives and strategies for accomplishing those objectives.

Business Plan

Which one of the following statements is NOT an accurate reflection of the definition and functions of a business​ plan?

Business plans are written soon after the company is​ launched, when the company is seeking​ funding, and when it is up and running.

What does the Fed do to inject money into the economy and decrease the federal funds​ rate? A. Sells​ bonds, bills, and notes B. Adjusts reserve requirements C. Buys treasuries Your answer is correct. D. Lends through a discount window E. Sells treasuries

Buys treasuries

An economic system centered on economic freedom and competition is known as​ ___________. A. capitalism Your answer is correct. B. nationalism C. socialism D. a planned system E. communism

Capitalism

Which of the following is NOT cited as a potentially negative effect that business can have on​ society? A. Disrupting communities B. Causing tax losses Your answer is correct. C. Causing financial instability D. Creating health and safety risks E. Generating pollution and creating waste

Causing tax losses

Company LMT competes with other companies in the industry by offering the lowest prices around. By offering products at the lowest possible cost compared with other​ companies, Company LMT has​ a(n) ____________. A. employee advantage B. ​not-for profit mindset C. business mindset D. economic subsidy E. competitive advantage

Competitive Advantage

The​ ____________ function ensures consumers have the assistance and information they require​ before, during, and after a purchase is made. A. sales B. marketing C. human resources D. customer support Your answer is correct. E. operations

Customer Support

The​ ________ section of a business plan explains the purpose of the business and what it hopes to accomplish.

mission and objectives

A​ _____________ charts the amount of merchandise consumers tend to buy at varying costs. A. demand curve Your answer is correct. B. consumer price index C. supply curve D. business cycle E. producer price index

Demand Curve

A company​ (regardless of​ industry) that uses digital technology involving​ connectivity, communication, and AI as a foundation of its​ value-creation processes is referred to as​ a(n) ______. A. innovator B. digital enterprise Your answer is correct. C. disruptive enterprise D. ​goods-producing firm E. ​service-producing firm

Digital enterprise

​___________, such as smart phones and social​ media, fundamentally change the nature of an industry and can be influential enough to create or destroy whole companies. A. Barriers to entry B. Service businesses C. Social environments D. Disruptive innovations Your answer is correct. E. Social entrepreneurs

Disruptive innovations

Which function can be utilized for both marketing products to retailers and delivering products after the​ sale? A. Finance B. Sales C. Distribution Your answer is correct. D. Marketing E. Information technology

Distribution

An example of an intangible good is​ ___________. A. a fleet of aircraft B. a book C. downloadable music files Your answer is correct. D. a computer E. an apple

Downloadable music files

The​ _____________ involves the circumstances that form the behavior of consumers and merchants and affect the cost and accessibility of products and services. A. economic environment Your answer is correct. B. market environment C. technological environment D. social environment E. legal environment

Economic Environment

Which of the following transpires when the economy is developing and buyers are spending​ currency, inspiring a rise in hiring and​ salaries, and motivating higher customer purchasing​ levels? A. Economic contraction B. Monopolistic competition C. Pure competition D. Economic expansion Your answer is correct. E. Scarcity

Economic Expansion

​_____________ refers to the analysis of how a society utilizes its limited assets to create and allocate various products and services. A. Nationalizing B. Economics Your answer is correct. C. Privatizing D. Regulation E. Capitalism

Economics

​______________________ is the​ optimistic, progressive aspiration to establish​ lucrative, sustainable business ventures.

Enterprise Spirit

Which section of the plan should address how investors can cash out or sell their​ investment?

Exit Strategy

Which of the following is accountable for safeguarding currency in consumer accounts and overseeing the transition any time a financial institution​ collapses? A. Federal Deposit Insurance Corporation Your answer is correct. B. The Department of the Treasury C. Fannie Mae D. Federal Reserve System E. Freddie Mac

Federal Deposit Insurance Corporation

Which of the following describes the rate that member banks charge each other to borrow money​ overnight? A. Federal funds rate Your answer is correct. B. Subprime rate C. Prime rate D. ACH rates E. Discount rate

Federal funds rate

Which two business functions listed below ensure that a corporation has the resources it needs to​ operate, and develop reports for company management and government​ regulators? A. Sales and marketing B. Human resources and operations C. Finance and accounting Your answer is correct. D. ​R&D and legal E. Operations and marketing

Finance and accounting

​___________ describes a wide variety of innovations that have the potential to improve or radically disrupt financial services. A. Mobile apps B. AI C. Neobanks D. Cryptocurrency E. Fintech

Fintech

Which of the following is an economic system in which judgments about what to manufacture and in what amounts are determined by the​ market's shoppers and​ retailers? A. Nationalism B. Planned system C. Socialism D. ​Free-market system Your answer is correct. E. Capitalism

Free-market system

Mateo is a manager at Lawn Care Products​ (LCP). His primary responsibilities include​ recruiting, hiring, and supporting employees as well as making sure the company is in compliance with regulations regarding employee rights and workplace safety. Which function does Mateo perform at​ LCP? A. Finance B. Operations C. Customer support D. Sales E. Human resources

Human Resources

Which one of the following statements does NOT reflect true understanding of the demand and supply​ relationship? A. Yield management can be used to adjust prices. B. When demand curves slope​ downward, the implication is​ that, as prices​ drop, more people will be willing to buy. C. A demand curve shows the relationship between demand and supply. D. If demand​ weakens, businesses can keep prices consistent. Your answer is correct. E. Demand at all price points can increase or decrease.

If demand​ weakens, businesses can keep prices consistent.

Which of the following involves systems that permit companies to promote communication and information usage in order to offer new services to their​ customers? A. Research and development B. Manufacturing C. Human resource management D. Operations management E. Information technology

Information technology

Which of the following is a​ firm's first offering of the availability of stocks for​ purchase?

Initial public offering

The​ _________________ is comprised of specific​ consumers, influences that affect the purchasing behavior of those​ consumers, and competitors that sell similar products to those consumers. A. legal environment B. market environment Your answer is correct. C. economic environment D. technological environment E. social environment

Market Environment

The​ ___________ function's responsibility involves finding opportunities in the​ marketplace, working with research and development to create products that take advantage of those​ opportunities, creating promotional strategies to connect with likely​ consumers, and establishing prices. A. finance B. operations C. marketing Your answer is correct. D. customer support E. distribution

Marketing

​__________ is the analysis of economic activity among​ firms, customers, and industries that collectively establish the extent of products and services that are required and distributed at various prices. A. Capitalism B. Microeconomics Your answer is correct. C. Socialism D. Nationalization E. Macroeconomics

Microeconomics

What is the difference between monopolistic and oligopolistic​ competition? A. In monopolistic​ competition, customers have limited​ choices, whereas in oligopolistic​ competition, there are ample customer choices. B. In monopolistic​ competition, the competition in a market is quite small compared with oligopolistic competition. C. In an​ oligopoly, customers have as many choices as in monopolistic competition. D. Monopolistic competition has numerous sellers who offer products that can be distinguished from competing​ products, whereas in an​ oligopoly, the number of competitors in the market is quite small. Your answer is correct. E. Most of the competition in advanced​ free-market economies is​ oligopolistic, compared to monopolistic competition.

Monopolistic competition has numerous sellers who offer products that can be distinguished from competing​ products, whereas in an​ oligopoly, the number of competitors in the market is quite small.

Which term describes a condition in which a sole company controls a particular market to the extent that it has the ability to control​ prices? A. Privatizing B. Opportunity cost C. Oligopoly D. Nationalizing E. Monopoly

Monopoly

Which of the following involves a political​ system's seizure of particular firms or business​ ventures? A. Fiscal policy B. Oligopoly C. Nationalizing Your answer is correct. D. Privatizing E. Monopoly

Nationalizing

​____________________ attempt to operate efficiently and effectively to accomplish their goals but are not motivated by profits. A. ​Goods-producing businesses B. ​For-profit organizations C. ​Not-for-profit organizations Your answer is correct. D. Green businesses E. Service businesses

Not-for-profit organizations

Which of the following business functions involves​ purchasing, logistics, and facilities​ management? A. Information technology management B. Marketing management C. Operations management Your answer is correct. D. Research and development E. Finance

Operation Management

​____________ includes people and processes used to produce goods and perform services that a specific company offers. A. Marketing management B. Operations management Your answer is correct. C. Human resources management D. Sales management E. Financial management

Operation Management

Which of the following represents the worth of the most attractive option that was ultimately not​ selected? A. Demand curve B. Scarcity C. Equilibrium point D. Producer price index E. Opportunity cost

Opportunity Cost

Which of the following is defined as the value of performing at a high level and behaving with determination and​ pride? A. Protocol B. Professionalism Your answer is correct. C. Incompetence D. Proficiency E. Etiquette

Professionalism

Which of the following occurs when​ revenue, employment, and manufacturing decline over at least a​ 6-month period of​ time? A. Recession Your answer is correct. B. Deregulation C. Scarcity D. Deflation E. Inflation

Recession

​__________ is the functional area in charge of visualizing and creating new products. A. Visualization B. Quality control C. Operations D. Marketing E. Research and development

Research and development

​________________ is the money a company generates through the sale of products and services. A. Accounts payable B. Revenue C. Profit D. Expenses E. Costs

Revenue

Nicole works at ABC Retailers. Her primary responsibility is to get to know customers to determine their wants and needs in order to persuade them to make a transaction. Which function is Nicole​ performing? A. Distribution B. Operations C. Human resources D. Customer support E. Sales

Sales

​FreshGrow, an organic vegetable​ market, is not a leader in its​ industry; is individually​ owned, managed, and​ maintained; and has 32 employees. FreshGrow is best described as a​ ______________.

Small Business

Which of the following is a way that smaller companies differ from larger​ companies?

Small firms have a narrow focus.

The​ _________ environment involves trends and forces in​ society, such as population trends affecting​ companies, changing consumer​ markets, and fluctuations in the workforce. A. legal B. economic C. technological D. market E. social

Social

​_____________ is an economic structure involving government possession and control of significant business activities joined with private possession and control of less vital business activities. A. Oligopoly B. Capitalism C. Socialism Your answer is correct. D. Microeconomics E. Communism

Socialism

Which of the following is not cited as one of the essential business​ skills? A. Data literacy B. Collaboration C. Strategic thinking Your answer is correct. D. Critical thinking E. Business ethics and social responsibility

Strategic Thinking

The​ ________ environment involves the application of science to​ innovations, products, and processes. A. social B. economic C. legal D. market E. technological

Technological

Who decides the monetary policy in the United​ States? A. The​ Fed's board of governors B. Regional investment banks C. The automated clearing house D. The Federal Open Market Committee Your answer is correct. E. Congress

The Federal Open Market Committee

An example of a reliance on machine learning is​ _________.

a self driving car

​A(n) _________________________ is a group of individuals with particular knowledge or important connections that assists a company owner with the evaluation of strategies and decision making.

advisory board

Companies with solid growth potential may seek public​ funding, which can be secured from​ ________.

an initial public offering​ (IPO)

​______________ are people who invest very small amounts of personal resources early in a new​ business's life in the hopes of eventually selling a percentage of the company for a profit.

angel investors

Which of the following provide new businesses with a variety of services—such as counseling and financial support—that a company needs to get under​ way?

business incubators

Which one of the following private sources of funding is extremely​ risky?

credit cards and personal lines of credit

​____________ involves pursuing investment from the public for business​ ventures, investments, or loans.

crowfunding

Bitcoin is an example of​ _________. A. credit B. illegal tender C. fiat money D. cryptocurrency Your answer is correct. E. cash

cryptocurrency

The U.S. dollar is an example of​ _____________. A. speculative investments B. cryptocurrency C. illegal tender D. treasury bills E. fiat money

fiat money

Crowdfunding is an example of​ __________. A. conventional loan applications B. a brokerage house C. crytocurrency D. an intermediary E. fintech

fintech

​A(n) ____________ is an agreement in which an entity acquires permission to retail goods and utilize certain features of another​ business's structure.

franchise

Which of the following describes an economic situation in which costs increase gradually through the economy as a​ whole? A. Recession B. Oligopoly C. Deregulation D. Supply curve E. Inflation

inflation

"Intrapreneurship" is difficult to implement for all of the following reasons EXCEPT​ _____________.

innovating within a larger organization is often much easier

Which of the following is NOT a common category of private​ financing?

ipo

The general capability of computers to learn is known as​ _______.

machine learning

​______________ represent establishments that offer minor quantities of capital to company owners who might not be eligible for conventional loans.

microlenders

Banks which provide services entirely through mobile and digital channels with lower cost structures are​ _________. A. neobanks Your answer is correct. B. intermediaires C. robinhood D. robo advisers E. crowdfunders

neobanks

Many cities and states have​ a(n) ____________ that helps companies succeed and contribute to the local or regional​ economy, specifically.

office of economic development

In a​ ________ system, governments for the most part dictate the distribution of resources and restrict freedom of choice. A. capitalistic B. privatization C. planned Your answer is correct. D. ​free-market E. private enterprise

planned

​________________ is the initial collection of resources expended in order to establish a company.

seed money

Macroeconomics is the study of​ ________. A. the economic behavior among​ buyers, organizations, and industries that together determine the quantity of goods and services demanded and supplied at different prices B. how a society uses its scarce resources to produce and distribute goods and services C. the analysis of a​ nation's more significant economic​ concerns, such as the manner in which firms​ compete, the impact of government​ policies, and the allocation and preservation of an​ economy's limited resources Your answer is correct. D. a​ small-scale perspective of economic behavior among consumers and businesses E. the effect of government policies and how an economy allocates its scarce resources

the analysis of a​ nation's more significant economic​ concerns, such as the manner in which firms​ compete, the impact of government​ policies, and the allocation and preservation of an​ economy's limited resources

Compared with starting a new​ business, buying an existing business has both advantages and disadvantages. One of the disadvantages of buying an existing business is​ ________.

the potential for a considerable amount of financing

Financiers who offer capital to support​ start-up companies in order to gain a percentage of​ ownership, with the goal of eventually turning the company around and selling it for a​ profit, are called​ ____________.

venture capitalists