Business First Semester Final Review
A major disadvantage of owning a sole proprietorship is that the owner has limited liability.
False
Day-to-day supervision of employees is handled by
Operational managers
A cookie company would like to sell their product in grocery and supermarket stores. They what their product to be at eye level for customers it easily see. Which of the 4 P's would this best describe?
Place
An ice cream company calculates their break even point to determine the amount to charge for their product. What function of marketing does this relate to?
Price
Companies use relationship marketing to maintain relationships with customers
True
The purple cow strategy is to make something about your business remarkable, memorable and unique.
True
The vision and mission statements in the business plan state the guiding principles by which a business functions.
True
There are 3 main types of business organizations: sole proprietorship, partnerships and corporations
True
To avoid failure, a business can modify (products, services, business practices)
all of the above
Demographics do not include
behavioral characteristics
The goal of test-marketing a product is to
collect customers's responses
The contest among business to win customers is called
competition
The contest between businesses to win customers
competition
All of the following are recommended traits for a career in entrepreneurs except being
cost-conscious
physical products
goods
Challenges an entrepreneur might face include all of the following except (risk of losing their investment, getting start up funds, profit, being fully responsible for the business)
profit
Money left over after a business has paid the cost of providing its goods and services
profit
Advertising is a part of the marketing function called
promotion
Leading means
providing direction and vision
Mr. Simpson is liable for all the debts of his company. What type of business organization is this
sole proprietorship
Everyone involved in a business should understand some of the basics of accounting.
True
Finance is the art of money management
True
A plan for the amount the business owner actually spends on a daily, weekly, or monthly basis is a(an)
cash budget
Sally and Fred have a product they would like to sell. They decide to share the risks and profits by forming an unincorporated business. The business they have is most likely a
partnership
The debts of a company are called
liabilities
All of the following are disadvantages of forming a corporation except (increased government regulation, double tax, limited liability, difficult to start)
limited liability
Things that you must have in order to service
needs
What is the financial result when revenue is greater than expense
net profit
What is a job description?
detailed outline of the duties, qualifications and conditions to do a specific job
When a company focuses its market research and marketing mix strategies on the people most likely to buy its goods and services, the company is
target marketing
The most important skill needed by managers is the ability to
multi-task
A business may stop manufacturing a product because
there is a decreasing demand for it.
Which of the following is not one of the four basic marketing strategies?
procedure
An example of a franchise is
Chick-Fil-A
Only a fourth of all businesses in the US are sole proprietorships
False
Income from a corporation is taxed twice.
True
The chief operating officer or president of a company is a
top-level manager
What are some tasks a human resource manager would do?
training, evaluating employees and finding/selecting employees
To market a product successfully, a company has to
understand what people want to buy
The break-even point is when revenues exceed expenses
False
Unlike goods, services are performed for free.
False
salary
a fixed amount of pay for each week, month or year
Which is an example of an asset? (cash, equipment, inventory)
all of the above
Nonprofit organizations
focus on providing services rather than making a profit
Industries that produce raw foods include all of the following except ( forestry, fishing, frozen pies, agricultural)
frozen pies
The function of marketing that involves decisions about how much to charge for products and services is called
pricing
Most Businesses in the US are small businesses
true
To evaluate customer acceptance, once a product is introduced, marketers track customers and their responses to it.
True
to offer a product in a limited market for a limited time is referred to as a test market
True
A business plan is used by (potential investors to see if they want to invest in the business, top management involved in the start up of a new business, the entrepreneur to keep focused on the goals of the business)
all of the above
An advantage of a partnership is (that the partners made decisions together, that banks are often more willing to lend more money to a partnership than to a sole proprietorship, that the partners often bring different skills and talents to the business)
all of the above
Entrepreneurs is the process of ( recognizing a business opportunity, using market research to determine if there is a market for a product or service, gathering the resources needed to go into business)
all of the above
Financial records can be managed by (the owner, a qualified employee, a hired professional)
all of the above
Market Research provides information that can help a business ( identify opportunities, analyze demand, respond to market goods and services)
all of the above
Skills necessary for being an effective manager include which of the following(time management skills, skills dealing with people, problem solving )
all of the above
The company description section of a business plan helps investors understand( the size of the business, the scope of the business, the type of the business)
all of the above
The purpose of a financial plan is to ( project future income, describe all the assets that need to be purchased to start a business, see if there is enough money to start the business)
all of the above
For businesses to stay successful, they must offer
all of the above, ( Quality products, Outstanding service, competitive prices)
When developing a product or service, business must do all of the following except,(create a need for the product or service, evaluate the demand for the product or service, obtain start up and operating capital, keep records to satisfy government requirements)
create a need for the product or service
The process of planning, pricing, promoting, selling, and distributing ideas, goods, and services is known as
marketing
In the business plan, the description of the business's media plan is included in the
marketing plan
The main reason start-up capital can be hard to obtain is because
there is no track record to prove the venture will be successful.
Operating expenses include
utility bills
Most of a a manager's day is spent
interacting with people
The process of achieving company goals by planning, organizing, directing, controlling, and evaluating the effective use of resources is called
management
In a business plan, research about the business's customers is included in the
market analysis
A business that gives authority to a number of different managers has
decentralized organization
Most people enter the job market as a(n)
entry-level employee.
A wholesaler is an example of a
reseller
The basic needs of people include food, water, shelter and
clothing
Things that you do not have to have to survive, but would like to have
wants
Retailers get their goods from
wholesalers
Reasons people become entrepreneurs include all of the following except( doing what you enjoy, having a chance to be creative, working long hours, being your own boss)
working long hours
competition among business hurts the customer.
False
Which business is an example of a wholesaler
Sam's Club
SBA is an acronym that stands for the
Small Business Administration
A vision statement
establishes the scope and purpose of the company
An example of a public want is a family wanting a new car.
False
The 4 steps of selecting the right person for the job are
1.) Reviewing each candidates application and resume. 2.) Screening people for the job. 3.) Interviewing qualified candidates. 4.) Checking references
Statement of Cash Flows
A financial statement that provides financial information about the cash receipts and cash payments of a business for a specific period of time.
The account equation is
Assets= liabilities + owners equity
Jack is a manager at Pizza Palace restaurant. During a busy week, several customers returned, unhappy about their pizza. They said the pizza dough wasn't done. Jack discovers the heating element on the oven was not working properly. He calls a repair shop right away. Which management function is this an example of?
Controlling
A detergent company spends time working to create the perfect packaging for their product. Which of the 4 P's would this describe?
Product
A cash budget is a plan for the amount expected to be spent and earned over a given period of time.
False
A small business, as defined by the SBA, serves a limited geographic area and employs no more than 100 people
False
Leadership is no more than giving orders to your subordinates.
False
Marketing a CD requires the same strategy as marketing diamond earrings.
False
Middle managers are often responsible for only one department in a busisness
False
Once it has been determined that there is a demand for a product, there is no need to decide how and where customers will buy their goods and services.
False
There are 10 essential parts of a business plan.
False (15 essential parts)
The main reason people become entrepreneurs is to have the opportunity to be creative
False (To be their own boss is #1)
GAAP is an acronym that stands for
Generally Accepted Accounting Principles
To determine the price of a product, marketers must answer all of these questions except
How much inventory is in hand?
What is human resource management?
It is managing the people and resources in an organization. Employees
Why is a logo important?
It represents the company's brand and public perception.
Bruno is a project manager overseeing the construction of a new home. He delegates tasks to a team of people to help finish the project. He tells Rosie to paint, Luke to install a faucet, and John to sweep. Which management function is this an example of?
Leading
A good manger does what?
Leads, Plans, Controls, Organizes, shows loyalty, respects people and co-workers, shows loyalty, task orientated and does more than give orders.
A cosmetic company places an ad in a magazine to inform consumers about a new lipstick line. Which marketing function does this scenario represent?
Promotion
All of the following involve offering services except, (Banking, New shoes, Car repair, Haircut)
New shoes
Resources are items used to make and provide goods and services.
True
The most common type of business in the US are
Sole proprietorship
A financial plan can be used to attract investors.
True
A financial plan explains how a business will manage its records.
True
Account receivable is money owed to a business
True
If the owner of a sole proprietorship has more debt than income, then he/she is responsible for the difference.
True
Limited liability holds a firm's owner responsible for no more than the capital that they have invested in it.
True
Managers are usually task-oriented.
True
Marketing research involves gathering information on the size, location and makeup of a market.
True
Most people have unlimited wants for goods and services.
True
wage
an amount of money paid to an employee on an hourly basis
Which financial statements applies the account equation?
balance sheet
Any commercial activity that seeks profit by providing goods and services to others in exchange for money
business
A written description of a business venture that describes all aspects of the business is called
business plan
Insurance companies
can offer loans to businesses and consumers as well as protection against fire and theft
A person who uses goods or services
consumer
Management includes the processes or functions of planning, organizing, leading and
controlling
A brief account of the key point contained in a business plan is the
executive summary
A mission statement is
expresses the specific aspirations of a company, the major goals it will try to reach
A financial institution that offers short term loans to businesses and consumers at higher rates than banks is a
finance company
The act of gathering and analyzing information about the wants, needs, and preferences of consumers in a certain market
market research
Business provide goods and services to satisfy wants and
needs
In order to start a corporation, the first thing one must do is
obtain a corporate charter from the state government.
One of the biggest obstacles in starting a business is
obtaining financing
a franchise is a company that
offers similar products or services in many locations
A virtual business is a business that
operates on the internet
Processed goods include all of the following except (organic vegetables, white sugar, steel, gasoline )
organic vegetables
The management function that involves obtaining and coordinating resources so that a business's objectives can be met is
organizing
The line and staff authority structure can lead to
overstaffing
A business owned and run by two or more people
partnership
Three main financial statements that are important for any business include all of the following except
petty cash records
The 4 p's are
place, product, price and promotion
The process of creating goals and objectives as well as strategies to meet them is
planning
Which marketing mix involves predicting how to make the product so it will appeal to customers( swishing the packaging for example )
product
Improving upon a product that is already on the market is part of the marketing function called
product/service management
Competition is possible because companies have the freedom to produce
products they think will be most profitable
Market researchers commonly ask shoppers to
respond to surveys to discover their wants and needs
Consumers usually deal directly with
retailers
tasks that businesses perform for customers
services
Informal management structures usually exists in
smaller businesses
A budget can be used to help control
spending
