Business Exam
One of the functions of managerial control involves comparing the results of various business activities with the
established goals
Businesses often segment their target markets into which of the following three primary areas:
Demographic, psychographic, geographic
Which of the following venture-harvesting methods usually supports a venture's future growth and facilitates the business owner's exit:
Initiating a public stock offering
Which of the following is a reason why managers develop company objectives:
To identify business purpose
A new employee has not been coming to work on time since beginning the job a week ago. Which of the following types of remedial action would be most appropriate:
Warning
Which of the following are characteristics of tactical planning:
Short-range and specific
Which of the following questions should effective managerial planning answer:
What do we want to do?
In which way can a start-up business benefit from writing a business plan?
Define managers' roles
What do businesses need to develop to effectively assess employee performance?
Evaluation criteria
What is one question that a business must answer when identifying a potentially profitable target market?
Is the market responsive?
Which of the following should effective managerial planning do:
Reduce uncertainty
Which of the following guidelines would be the most appropriate for a supervisor to follow when administering remedial action:
Resume a normal attitude toward the employee as quickly as possible
Which of the following is an example of a company objective that might be developed by top management:
To maintain or increase market share
Which of the following is a demographic characteristic that businesses often use to identify market segments:
Type of household
Which of the following is the most effective mission statement:
We create happiness by providing the finest in entertainment for people of all ages, everywhere.
Age, ethnicity, and income are all factors when developing a target segment based on
behavior
Aaron, a small-business owner, develops an exit strategy so that his company keeps growing and prospering in the marketplace after he leaves. The exit strategy is one aspect of Aaron's
continuation plan
Company XYZ has developed a new flavor of ice cream called Hunky Chunky and has selected a target market that consists of boys, ages 7-15, who are living at home with their parents in a household that earns between $30,000 and $60,000 a year. This method of target market selection is based on
demographics
If Alisa meets her objectives, she plans to sell her company in five years. To facilitate a smooth transition for her company so it continues to grow, Alisa should
develop an exit strategy
One of the main reasons why owners develop a business plan before starting a new business is to
estimate financial needs
The part of the business plan that gives an overview of the entire document is the
executive summary
Key performance indicators used to assess business performance should align with the business's
goals and objectives
The objectives that managers develop for a business to attain are also intended to serve as operating
guidelines
Businesses realize that it is almost impossible to appeal to all customers which is why most businesses try to
identify market segments
The fundamental activity associated with the planning function of management involves
looking ahead
Identifying market segments helps a business to develop appropriate
marketing strategies
The new business owner set a goal of selling $50,000 of goods in the first six months. This is an example of a(n) __________ objective.
measurable
When an automobile company markets a van to families and a luxury sports car that appeals to single, working adults, it is engaging in ____________ marketing.
segment
To control various business activities in an effective manner, managers must first
set appropriate standards
A mission statement should be
short, specific, and understandable
Businesses identify market segments by dividing consumers into groups that have
similar characteristics
One of the purposes of developing a business plan before starting a new business is to
understand the risks involved
One of the main purposes of a business plan is to help a new business
establish objectives
Businesses develop standards for how employees should do their jobs, which are then used to examine or evaluate
. work performance
Why is it important for a business to select a target market?
To identify the most appropriate vendors
Which of the following is the first step of effective managerial planning:
Use a systematic approach to establish objectives
Establishing clearly formulated, overall organizational objectives provides a business with
direction for the business's activities