Business Final

In __________, machines are designed to do multiple tasks so that they can produce a variety of products.

flexible manufacturing

________ emphasizes motivating the worker through the characteristics of the job itself.

job enrichment

High-risk, high-interest bonds are called:

junk bonds

Rather than requiring cash payment for all sales, some firms offer credit to:

keep current customers happy and attract new customers

After years of selling in the consumer market, Dave accepted a job as a salesperson for a firm that markets its products in the B2B market. As he considers his new responsibilities, it's likely that he will:

learn that industrial buyers generally require more personal service than buyers in the consumer market.

Supermarkets and discount stores often advertise products at prices at or below their cost to attract people to the store. These products represent:

loss leaders

________ examine the data prepared by ________ and then make recommendations to top management regarding strategies for improving the firm.

managers examine the date prepared by accountants

In ____________, materials are physically or chemically changed to produce a product.

process manufacturing

Which of the following statements best describes the impact of recent advances in information technology on business location decisions?

Advances in information technology will give firms more flexibility in their location decisions by reducing the need to locate close to sources of labor.

A __________ is a name, symbol, or design (or combination of these) that identifies the goods or services of one seller or group of sellers and distinguishes them from those of competitors.

Brand

Which of the following describes a word, letter, or group of words or letters that differentiate the goods and services of a seller from those of competitors?

Brand name

____________ uses computers to help design products.

CAD

Which of the following problems would indicate that a manager failed to apply the basic concepts of expectancy theory?

Employees are unwilling to work toward achieving an important goal because they believe the reward offered is not sufficient to justify the effort

___________ is a computer application that enables multiple firms to manage all of their operations on the basis of a single, integrated set of corporate data.

Enterprise resource planning (ERP)

Manny Hernandez is a production and operations manager who likes to keep track of how various projects are progressing. One of Manny's favorite tools is a bar graph that shows how much work has been completed on the projects that are currently underway. Manny likes to use a(n):

Gantt chart

According to equity theory, employees are likely to ask:

If I do a good job, will it be worth it? What is fair?

A(n) ________ refers to the first public offering of a corporation's stock.

Initial public offering (IPO)

Which of the following involves the analysis of markets to identify opportunities and challenges?

Marketing research

___________ is a technique to analyze the tasks involved in completing a project, to estimate the time needed to complete each task, and to determine the minimum amount of time needed to complete each project.

PERT

A firm gathers ___________ data by conducting surveys, interviewing customers, or mailing out questionnaires.

Primary

__________ consists of information that has already been researched by others and is published in journals or books, or has been made available online.

Secondary data

____________ examines statistical samples of product components at each stage of the production process and plots the results on a graph in order to spot and correct any variances from desired quality levels.

Statistical process control

Cool People Publications focuses their marketing efforts on reaching African-American teenage girls. The firm believes that they are positioned to profitably serve this group of consumers. Cool People utilizes the strategy of:

Target marketing

The resurgence of U.S. manufacturing firms in recent years can be credited to

a number of significant changes in both the production techniques and management styles used by U.S. firms.

A(n) __________ puts together components to make a product.

assembly process

When stock prices decline steadily, investors refer to the market as a ________ market.

bear

Equity theory states that employees will perform well if they:

believe the reward they receive fairly compensates them for their efforts when compared to others in similar positions.

The corporate certificate indicating that an investor has loaned money to the organization is called a:

bond

Ebony Enterprises decides to pay off its bonds several years before the maturity date. Apparently, the bonds contain a(n):

call provision

Contacting customers after a sale to reassure them that they made the right decision is intended to offset:

cognitive dissonance.

Which of the following represents a source of short-term funding?

commercial paper

__________ represents the most basic form of ownership and includes voting rights in the company and dividends, if and when the firm pays dividends.

common stock

HandZone, a manufacturer of high quality gloves and a variety of fashion accessories, already has both computer-aided design and computer-aided manufacturing. Unfortunately, the two systems cannot communicate with each other. David Warmdigit, a production manager at HandZone, has heard about some software that allows CAD and CAM to work together, and wants to learn more about it. David is interested in:

computer integrated manufacturing

Sophisticated software that enables computer-aided design machines to communicate with computer-aided manufacturing machines is called

computer-integrated manufacturing.

When Callie developed a detailed description of her ideas for a health club and asked for feedback from women about the proposal, she was engaging in:

concept testing

Location is very important in the marketing of ________ because consumers desire to purchase these goods with a minimum of shopping effort.

convenience goods

After owning a Cordero Company bond for five years, Gabrielle exercised an option that allowed her to exchange her bond for 20 shares of the company stock. Gabrielle apparently owned a(n):

convertible bond

An unsecured bond, backed only by the well-respected name of the organization, is called a(n) ________ bond.

debenture

A firm that uses ___________ segmentation divides a market into groups based on age, income, or level of education.

demographic

Researchers David Nadler and Edward Lawler suggest that in order to use expectancy theory to improve worker motivation, the first thing managers should do is:

determine what rewards are valued by employees.

That portion of a firm's profits distributed to stockholders represent the firm's:

dividends

Before ending the meeting, John Noble informed Howie that he would be sending out an email to all employees asking for suggestions as to how the jobs could be restructured to improve productivity. As Howie walked back to the production site, he shook his head, "Is Noble from a different planet? Does he really think our workers have a clue?" Unlike Noble, Howie does not realize that:

employees can be motivated by open-communication.

With plans to build a $50 million theme park, Lakeview Enterprises intends to finance this project through the sale of additional shares of ownership in their firm. Selling new shares of stock represents ___________ financing.

equity

_____________ is the function in business that is responsible for acquiring funds for the firm, and managing funds within the firm.

finance

___________ refers to the process that identifies variances by comparing actual revenues and expenses to projected revenues and expenses.

financial control

The idea behind the Deming Cycle is to

find potential errors before they occur

One of Sparky's goals is to expand globally. He is most interested in doing business with the nations of the European Union. In order to do business with the European Union, Sparky's company should:

gain ISO 9000 certificate

When a brand becomes commonplace and identified with a category of goods rather than the unique product of a specific manufacturer, the brand may become a:

generic name

Today U.S. companies in the manufacturing sector:

have altered their production and managerial styles in order to regain their competitive edge in many industries

Herzberg's research found that safe working conditions and good pay:

helped maintain worker satisfaction, but did little to increase motivation.

Products that are used in the production of other goods and services are called ________ goods.

industrial

Using information not available to the public to unfairly benefit in the stock market represents:

insider trading

Which of the following accurately describes an advantage of selling bonds to raise long-term capital?

interest is a tax-deductible expense

Issuing bonds to obtain long-term funds legally compels a firm to pay regular ________ payments and repay the ________ at the maturity date.

interest; principal

The stages of the product life cycle are:

introduction, growth, maturity, and decline.

In the language of bonds, face value is synonymous with:

principal

________ is the process of planning and executing the conception, pricing, promotion, and distribution of goods and services to facilitate exchanges that satisfy individual and organizational objectives.

marketing

While the four Ps help us remember the basics of the __________, they don't include everything that goes into the marketing process.

marketing mix

Unlike an assembly line where workers perform only a few tasks, in a _________ layout, teams of workers combine to perform a variety of tasks needed to produce more complex units of a final product.

modular

Money has a time value because:

money earns interest over time

The concept of the time value of money indicates that:

money is worth more than money a year from now

The major benefit of open communication in a company setting is:

motivated employees.

Yolanda has an ownership interest in many different companies, yet she owns the shares of stock of just one organization. Yolanda apparently owns shares in a(n):

mutual funds

Ellen Cleary is an operations manager who is under a great deal of pressure to make sure a project is completed on time. She has used the PERT method to help her determine how long the project is likely to take. In order to ensure that the project does not take longer than necessary to complete, Ellen should keep careful tabs on those activities that are:

on the critical path of the PERT network.

John Smith manages one location of the Six Seasons, an upscale hotel chain located throughout the U.S. The chain's target market is business travelers. John and his staff will go to any lengths to service the guests. Many times staff members have had to locate U.S. electrical adapters for European guests in electronic stores close to the hotel. This led to a change in the items carried in the hotel shop. Now adapters useful to guests from around the world are carried as a regular item in the Six Seasons shop. To ensure the guests are delighted and able to easily use their electronic equipment at the hotel John and his staff have engaged in:

operations management

Attracting attention, describing contents, explaining benefits and identifying the uses of a product are all functions of:

packaging

The purpose of __________ is to create real or perceived product differences.

product differentiation

The ____________ is a theoretical model that describes the sales and profit performance of a product class over time.

product life cycle

Which of the following refers to a group of products offered by a firm that are physically similar or are intended for a similar market?

product line

The Procter & Gamble Company produces bar soap, disposable diapers, deodorants, laundry detergents, peanut butter, cookies, cake mix, shampoo, shortening, coffee, and many other products. These products are part of P&G's:

product mix

The combination of product lines offered by a manufacturer is called the firm's:

product mix

The business philosophy of "produce as much as you can because there is a limitless market" is consistent with which of the following?

production era

A firm that uses __________ segmentation divides a market into groups based on values, attitudes, or interests.

psychographic

Which of the following would normally involve long-term financing?

purchase of modern equipment

New employees at Throneberry Manufacturing are carefully trained to use the most efficient production methods. They are then placed on an assembly line and expected to perform the same task day after day, using the methods they were taught. The work is boring, but the pay is good. Throneberry's approach is consistent with the principles of:

scientific management.

Which of the following refers to the process of dividing the total market into several groups with similar characteristics? market:

segmentation

The U.S. economy is now dominated by the __________ sector.

service

Which of the following are products consumers buy after comparing quality, price, and style from a variety of sellers?

shopping goods & services

Firms establish a ________ fund so that sufficient funds are available to repay bondholders on the maturity date.

sinking

Which of the following organizations provides an assessment of the relative level of risk of a particular firm's bond issue?

standard & Poor's

A brand that has been given exclusive legal protection, such as the McDonald's golden arches is a:

trademark

Operations management in service industries often includes:

training in quality management for employees.

Typically, only highly regarded customers of a bank receive:

unsecured loans

The Hawthorne studies found that employees in the experimental group:

were more productive than other employees regardless of the level of lighting.