Busi 22 Study guide

What would be the GREATEST advantage of having a partner as opposed to having an advisory board?

A partner would be more committed to the success of the business than an advisory board.

Arthur is a truck driver who owns his own business. He has been on the road for several months, and the constant wear and tear on his truck results in the need for several major mechanical repairs. This generates a loss for his business. Which of the following reflects how this will affect Arthur's tax obligation?

Arthur's tax obligation will be reduced.

eBay is an example of which type of e-commerce transaction?

C2C

________ refers to how much of a product or service people want to buy at any given time. Commodity Surplus Supply Demand Equilibrium

Demand

________ shifts, such as age, gender, ethnicity, and marital status, and changing values, can signal opportunities for businesses.

Demographic

Carson is involved in a plan that gives him stock in his company based on the number of years he has worked there. His stock is held in trust for him by the company until he leaves or retires. Because of his ownership in the company, Carson feels more connected to the business and is motivated to ensure its success. Carson is participating in a(n) ________.

ESOP

________ is the process of surveying the market environment to assess external threats and opportunities.

Environmental scanning

A mission statement identifies what a business wants to be in the future. False True

False

A target market is a group of people who have completed surveys, questionnaires, or other response forms and have indicated an interest in the production of a new product. True False

False

Advertising is important in the maturity stage of a business because it helps build mass brand awareness and brand association. True False

False

Any profits generated by a not-for-profit organization must be turned over to the government. True False

False

Because entrepreneurs can hire other people to manage their business for them, they do not need strong leadership skills. True False

False

Bribery is illegal all around the world. True False

False

Gen-Xers are the focus of most marketing efforts because they are the biggest spenders in history. True False

False

James is a pizza delivery driver and earns just over eight dollars an hour. This compensation is known as a fixed salary. True False

False

Only 20 percent of small businesses survive after five years of operation. True False

False

Organizational psychology is the study of how to create a workplace that fosters motivation and productivity among employees. False True

False

Public relations does not involve damage control. False True

False

The Equal Employment Opportunity Commission (EEOC) makes sure that all investors are treated fairly and have equal access to information about companies. False True

False

Venture capitalists prefer to invest in innovative companies that have just begun operating. False True

False

Wholesalers sell only business-to-business products, while retailers sell primarily consumer products. False True

False

Maxwell is a freshman in college and believes in his self-worth and value. He has high expectations for his achievement in his eventual career. Maxwell spends a good deal of money each month, often making "copurchases" with his parents. Maxwell is most likely from which generation?

Millennial

________ occurs when there are many buyers and sellers and little differentiation between products, but perceived differences between products among consumers. Monopolistic competition A monopoly An oligopoly Perfect competition A duopoly

Monopolistic competition

________ of all start-ups fail in the first year. Almost a third Just over three-quarters More than one-half Nearly one-fourth Approximately two-thirds

Nearly one-fourth

What is the MOST likely scenario in a monopoly, where only one seller supplies a product or service? Demand may be low. Demand may vary. Supply may be abundant. Supply may be limited. Prices will be low.

Supply may be limited.

A corporation is a specific form of business that is legally formed under state laws and is considered a separate entity. True False

True

Credit cards are not suitable sources of long-term funding for start-up companies. False True

True

Marketing intermediaries are also referred to as middlemen. False True

True

S corporations are restricted to a limited number of owners, whereas limited liability companies can have an unlimited number of owners. False True

True

Teresa just received a quarterly statement from the Vanguard Group, which shows earnings from investments using her pretax dollars. Teresa contributes a percentage of her salary to the plan and her company matches it. Teresa has a 401(k) plan. True False

True

Teresa likes her job and believes that the tasks she completes each day actually make a difference to the success of her company. She thinks there's always a good chance she'll be rewarded in some way for her work, perhaps even with a very large raise. According to Vroom's model, Teresa's motivation is high. False True

True

The Small Business Administration acts as an advocate for small business owners to national and state policymakers. True False

True

Yolanda manages a group of administrative assistants. She would like to increase the group's motivation levels and foster an atmosphere of flow. What kinds of things can Yolanda​ do?

Yolanda can foster flow by keeping employees intellectually​ engaged, removing​ distractions, encouraging creativity and​ flexibility, and supporting employees in all aspects of their lives.

A franchise is a method of doing business in which ________.

a company's products or services are sold to independent third-party operators under the company's name

Compared to the C corporation, the limited liability company is an attractive form of business ownership because ________.

a limited liability company does not require the firm to hold annual meetings and it can avoid double taxation

Supply chains are part of ________. manufacturing firms only all businesses service industries only for profit businesses only not-for-profit organizations only

all businesses

A factory is planning to open in a small town that is currently struggling economically. The town residents should expect ________. lower standards of living reduced personal taxes an improved economy a decrease in local traffic an increase in natural resources

an improved economy

James lives near a university and observes that almost every student uses a cell phone. He decides to open a small shop offering repair services for cell phones. His shop is an instant success. James has satisfied an area of need called ________. a bandwidth need the marketplace an oversaturated demand fertile ground an opportunity niche

an opportunity niche

As a chief information officer, Bob looks for ways that his company's technological resources can generate bigger returns on its information technology investments. Which aspect of the CIO's role is he addressing?

budget

Setting the right price ________. plays no role in determining whether consumers will purchase a product involves setting a specific pricing objective after establishing the price point can help differentiate the product from the competition means simply calculating the cost of production and tacking on a markup for profit does not impact how consumers view a product

can help differentiate the product from the competition

To make good decisions, a successful manager must be able to think abstractly in order to picture the organization as a whole and to understand its relationship to the rest of the business community. In other words, the manager must have ________. interpersonal skills community relations skills conceptual skills decision-making skills networking skills

conceptual skills

Martin was named "Employee of the Month" for his outstanding customer service. According to Maslow, this award may help satisfy Martin's ________ needs. self-actualization safety belonging esteem physiological

esteem

Latasha is a new employee in the sales department. Her early results are so tremendous that the regional sales manager sent an email to the sales department praising Latasha's work. To Latasha, this could be a(n) ________.

extrinsic motivator

When Ford Motor Company formed management groups around areas of specific production, it was using a(n) ________ organization structure. vertical pyramid flat tall inverted

flat

When eight to ten potential customers are asked for feedback on a good or service, advertisement, idea, or packaging by a company, they are called a ________.

focus group

The Fair Packaging and Labeling Act of 1966 requires companies to identify all of the following EXCEPT the ________. name and place of business of the manufacturer net quantity of the contents product name of the packer or distributor formula by which the product was manufactured

formula by which the product was manufactured

A sole proprietor's income and expenses flow through ________. his or her personal tax returns shareholders' tax returns corporate tax returns individual partners' tax returns chapter S tax returns

his or her personal tax returns

Business intelligence software can help managers ________.

identify which factors are the greatest contributors to bad debt

Which of the following is contributing to the acceleration of globalization? restricting the amount of foreign direct investment the dominance of the U.S. economic system a rise in the number of non-U.S. small, local businesses a shrinking role for developing nations increasing democratization

increasing democratization

A free market economy is one in which ________. the government or other centralized group determines what to produce individuals determine what to produce with some level of government involvement the government controls healthcare while privately owned businesses operate in other market sectors individuals and private firms make decisions based on consumer needs and wants privately owned, profit-seeking enterprises are converted to government-owned production and services

individuals and private firms make decisions based on consumer needs and wants

Addison wants her new t-shirt store to be environmentally friendly. With the concept of the green economy in mind, which of the following business initiatives would BEST make her business greener? mail out paper fliers advertising her business raise prices to include the cost of a donation to a green nonprofit organization sell t-shirts with environmental slogans install solar panels on her store's roof to provide electricity give a discount to customers who claim to be environmentally conscious

install solar panels on her store's roof to provide electricity

Globalization is a controversial subject for many people because ________. it allows U.S. companies to import and export goods from anywhere in the world it increases the cost of goods and services in the United States it results in the closing of some U.S. manufacturing facilities it allows companies of any size to compete globally it stabilizes the value of the U.S. dollar

it results in the closing of some U.S. manufacturing facilities

The growing demand for biofuels in the United States that has led to a growing supply of soybeans from Brazil is an example of all of the following EXCEPT ________ economies. interdependent localized globalized international interconnected

localized

McDonald's selling seaweed-flavored fries in Asian countries is an example of a company pursuing a ________ strategy. domestic multidomestic global transnational national

multidomestic

A CVS/pharmacy store is an example of a ________ business. national multinational local regional boutique

national

Product line length is the ________, length in feet of a company's assembly line number of items in any given product line average length in inches of a company's best-selling product number of different product lines a company offers combined activities of a company

number of items in any given product line

Anna, a psychology major, has decided to specialize in the study of how to create a workplace that fosters motivation and productivity among employees. This is known as ________ psychology. group organizational personal developmental social

organizational

Flexible production is made up of four components. Which of the following is NOT a component? material handling systems human labor central computers processing machines prospect-to-cash

prospect-to-cash

According to Maslow, which need are people striving to satisfy when they seek stable places to live and work? self-actualization physiological belonging safety esteem

safety

A business can create a competitive or comparative advantage by doing all of the following EXCEPT ________. purchasing state-of-the-art equipment shifting funding away from worker training in order to increase profits investing in cutting-edge technology promoting innovation throughout their organization accessing cheap raw materials

shifting funding away from worker training in order to increase profits

A dishwasher is an example of a(n) ________ good. unsought convenience specialty maintenance, repair, and operating shopping

shopping

Software that tracks your personal information and sends it to a third party without your knowledge is called ________.

spyware

Which quality control approach involves inspecting a random sample of products at every phase of production? PDCA cycle statistical process control ISO 9001 six sigma processes total quality management

statistical process control

As a last resort, union workers may choose to ________ and agree to stop working. These actions gain considerable media publicity, especially when the workers ________ by walking outside the workplace with signs that reflect employee grievances.

strike; picket

Viral marketing is least likely to occur via ________.

television

Jeremy is a telemarketer who is hearing impaired. His hearing aid helps him take calls at work and this compensates for his disability. He accidentally broke his hearing aid and did not have the money to replace it. He asked for an advance on salary and was refused. He asked for a loan and was refused. As a result, Jeremy was unable to take calls from customers and he was fired from his job because of "poor performance." Which government agency shall Jeremy call for help in this situation?

the Equal Employment Opportunity Commission

Joseph took a class in macroeconomics, which means that he was studying the behavior of ________. individual businesses people with limited resources the overall economy corporate executives Fortune 500 companies

the overall economy

A marketing strategy consists of the following elements: ________.

the target market, the marketing mix, and the product placement only

Emma bought an MP3 player and a portable DVD player. These products are called goods because ________. they do a good job of satisfying a customer's needs they are physical or tangible products they are produced in an economical offshore factory they can be sold either in a store or online they are good at increasing a company's profit margin

they are physical or tangible products

Small businesses are important to the economy because ________. they improve productivity by hiring less-expensive staff in countries outside the United States they export more than one-half of total U.S. exported goods and services they create more than two-thirds of the U.S. gross domestic product they generate about 64 percent of new jobs in the United States they are more dominant than larger companies

they generate about 64 percent of new jobs in the United States

The main function of marketing is ________.

to establish meaningful relationships with customers to ensure loyalty and repeat business

The blue Tiffany & Co. box is an example of which purpose of packaging? to promote the product to facilitate use and convenience to contain and protect the product to provide portion control to be environmentally friendly

to promote the product

A legally protected brand is called a(n) ________. knockoff trademark equity recognized brand generic

trademark

Socioeconomic factors that must be considered by international companies include all of the following EXCEPT ________. ethnicity cultural behaviors birthrates income distribution unit labor cost

unit labor cost

What is the retirement age in the United States? whenever the employee stops participating full-time in his/her career 65 years old 62 years old 70 years old 60 years old

whenever the employee stops participating full-time in his/her career