Business Principles Final
Checking accounts
- Also, called a demand deposit
The Federal reserve board FED
- Independent baking agency established in 1913 to regulate the nations banking and financial industry
Savings account
- also called TIME deposit - Probably need to make prior notice before withdrawal
Money market account
- similar to interest-bearing, checking accounts, but with more restrictions. - generally in exchange for slightly higher interest rates the owner of the money market account can write only a limited number of checks each month, and they may be restriction on the minimum amount of each check
5 main functions of the Fed
1. Conduct a monetary 2. Promote financial system stability 3. Supervising regulate financial institutions and activities. 4. Foster payment and settlement system, safety, and efficiency. 5. Promote, consumer protection, and community development.
Approximately what percent of small businesses are based out of home
50%
What's the difference between a bookkeeper and an accountant?
A bookkeeper typically is limited to the routine, day today, recording of business transactions. They are responsible for obtaining and recording the information that account is required to analyze a firms financial position. And accountant on the other hand, usually completes coursework be on the basic for five year college accounting degree, which allows them to not only record financial information, but understand and interpret and develop the sophisticated accounting system necessary to classify and analyze complex financial information.
What is the greatest determination of future ethical misconduct
A companies ethical culture
Which of the following statements describes and advantage of franchising, instead of building an independent business from scratch?
A franchise outlet often reaches the break even point faster than an independent business would.
S corporations are taxed as if they were (blank) to eliminate double taxation
A partnership
What is the recording, measurement, and interpretation of financial information?
Accounting
If the United State devalue its currency, the most likely result would be
An increase in its exports
Measure how well a firm uses his assets to generate each one dollar of sales
Asset utilization ratio
If a company has a current ratio of two, than this means that it has two dollars of assets for everyone dollar of liabilities
Asset utilization, ratio, example
Credit unions
Banks that are owned by their members to create a pool of money for low-interest loans.
The principles and standards that determine acceptable conduct in business organizations
Business ethics
How did the terms, business ethics and social responsibility differ from each other?
Business ethics relates to an individuals or a work groups, decisions that society evaluates is right or wrong, where is social responsibility, concerns the impact of the entire businesses activities on society.
What type of technology helps engineers, design components, products, and processes on the computer instead of on paper?
CAD or computer-assisted design
What type of technology is a specialized computer system to actually Gaiden control the transformation process?
CAM or computer system manufacturing
The financial statement that is most likely to be used to determine if a business is able to meet is short term obligations within the next month would be?
Cash flow statement
Which of the following is a true statement about a socialist system of economy?
Central planning determines what basic goods and services are produced
Who is an individual who has been state certified to provide accounting services ranging from the preparation of financial records in the filing a tax returns to complex audit of corporate financial records?
Certified public accountant or CPA
Set a formalized rules and standards that describes a company expects of its employees is called a
Code of ethics
What is the largest and oldest of all financial institutions in our commercial banks, which perform a variety of financial services?
Commercial banks
What is usually a permanent, formal group that does some specific task?
Committee
Which of the following statements is true regarding business, ethics and social responsibility?
Companies can be both profitable and socially responsible
To earn a profit, managers must acquire, coordinate, and control all of the following resources, except
Competitive products
What is the difference between the concentration, marketing approach and the multi segment marketing approach?
Concentration- company develops one marketing strategy for a single market segment Multi segment- company Ames is marketing efforts at two or more segments, developing a marketing strategy for each.
When a company hires foreign country to produce a specified volume of a product to specifications
Contract manufacturing (iPhones)
What is the process of evaluating and collecting activities to keep the organization on course?
Controlling
A (blank) is a legal entity, created by the state whose assets and liabilities are separate from its owners
Corporations
Managers are responsible for
Creating a work environment that helps the organization achieve is objectives, and fulfills it's responsibilities
Which type of plan deals with potential disasters?
Crisis management, or contingency planning
What type of operations process makes products to me a particular customers needs or wants?
Customization
Provide information about how much debt in organization is using relative to other sources of capital such as owners equity
Debt utilization ratios
Which of the following situations illustrates online fraud
Deceiving Internet users into revealing personal information
What do Nonbanking institutions not accept
Deposits
What is a reduction in the value of an asset with the passage of time?
Depreciation
Which of the following statements is true of the impact of digital media in the marketing mix?
Digital media has increase opportunities for businesses to target there promotions to the right audience.
What is motivating and leading employees to achieve organizational objectives?
Directing
Which of the following is true of the management function of directing are leading
Directing in leading involves determining and administering appropriate rewards and recognition
What are the steps in the accounting cycle?
Examining source documents, recording transaction, in an accounting, journal, posting recording transactions, and preparing financial statements
What do trade deficit mean?
Failure of businesses, lots of jobs, and lowered standard of living
What type of facility Layout brings all resources required to create a product to a central location?
Fixed position layout, used in project organizations
What is a program that allows companies to choose their working times as long as they're at work during a specific core.?
Flex Time
What type of accounting involves analyzing financial documents in search of fraudulent entries, or financial misconduct?
Forensic
Which of the following is a difference between high technology businesses in other small businesses?
High technology, businesses require a greater capital and have higher initial start up cost than other small businesses
What's it called when firms that make and sell similar products merge
Horizontal merger
Which group accounts for over 17% of the retail workforce?
Immigrants
Which of the following is a disadvantage of partnerships over soul proprietorships?
In partnerships, profits have to be shared, whereas, and soul proprietorships all profits belong exclusively to the owner
What makes a product available in as many outlets as possible?
Intensive distribution
What is a formal written explanation of a specific job that usually includes job title task, gonna be performed relationships with other jobs, physical and mental skills, required, duties responsibilities, and working conditions?
Job description
What describes the qualifications necessary for a specific job in terms of education, experience, personal characteristics, and physical characteristics?
Job specifications
What kind of company structure provides limited liability like a corporation but is taxed like a partnership?
LLC or limited liability company's
Which of the following is a key step in evaluating ethical decisions in business?
Learning how to recognize and resolve ethical issues
What is it called when one company allows another to use its company name, products, patents, brands, trademarks, raw materials, or production process in exchange for a fee or royalty?
Licensing
What type of organizational structure has direct lines of authority that extend from the top manager to employees at the lowest level of organization?
Like structure
Code of ethics, foster ethical behavior by
Limiting the opportunity to behave, unethically by providing punishments for violations of rules and standards
What type of organizational structure has a traditional line relationship between superiors and subordinance and specialized managers called staff managers are available to assist line managers?
Line and staff structure
On a balance sheet, all asset accounts are listed in descending order of
Liquidity
the availability of liquid assets (CASH) to a market or company.
Liquidity
Which financial ratios design to determine how well a business compared to short term obligations?
Liquidity ratio
Compares current, short term, assets to current liabilities to indicate to speed, with which company can turn its assets into cash to meet debts as they fall due
Liquidity ratios
All of the following are keys to a successful partnership, except partners must
Maintain effective communication skills
Who makes decisions about the use of an organizations resources, and are concerned with planning, organizing, directing, and controlling the organizations activities?
Managers
All of the following are true of the causes of ethical conflict, except
Many employees utilize the same ethical standards at work and at home
Why has outsourcing become a controversial practice in the United States?
Many jobs have moved overseas where these tasks can be accomplished for lower costs.
Which of the following is a true statement about barriers international business?
Many of the legal rights that Americans take for granted, do not exist in other countries
What is a group of activities designed to expedite transactions by creating distributing pricing and promoting goods and services and ideas?
Marketing
What is the channel of distribution that moves products from their producer to customers?
Marketing channels, they make products available to buyers when and where they desire to purchase them.
What is the plan of action for developing pricing distributing in promoting products that meet the needs of specific customers?
Marketing strategy
What type of organizational structure is also called a project management structure which sets up teams from different departments thereby creating two or more intersecting lines of authority?
Matrix structure
The American economic system is best described as a (economy)?
Mixed economy
What operation process involves building an item in self-contained units, or modules, that can be combined or interchanged to create different products?
Modular design
The Fed controls the amount of money available in the economy through
Monetary policy
The classical theory of motivation says that (blank) is the sole motivator for workers
Money
What type of organizational structure, organizes department until larger groups called divisions? with the structure there is inevitable work a duplication, which makes it more difficult to realize it economies of scale that result from grouping functions together
Multi divisional structure
What concept does the balance sheet really explain by looking at the information contained in it?
Net worth
Savings and loan associations
Often called thrifts, they are financial institutions that primarily offer savings account to make long term loans for residential mortgages
What is the development and administration of the activities involved in transferring resources into goods and services, and is of critical importance?
Operations management or OM
Which of the following statements is true of the management function of organizing?
Organizing helps, create synergy, whereby the effective a whole system equals more than that of its parts
What are the five variables of the consumers buying behavior?
Perception, motivation, learning, attitude, personality
Determining an organizations objectives in, deciding how to accomplish them, a management function known as
Planning
What is charging the highest possible price that buyers who want the product will pay?
Price skimming
What are the primary and secondary characteristics of diversity?
Primary- sexual orientation, age, gender, race, ethnicity, abilities Secondary- education, work background, income, marital status, parental status, military experience, religious beliefs, geographic location
What type of facility Layout organizes the transformation process into departments that group related processes?
Process layout, used in intermittent organizations
What type of facility Layout requires a production be broken down into relatively simple tasks assigned to workers who are usually positioned along an assembly line?
Product Layout, used in continuous manufacturing organizations
What type of group are a special type of project team formed to devise, design, and implement a new product?
Product development teams
Studies have found a direct relationship between social responsibility and (blank) in business
Profitability
What measures how much operating income or net income an organizations able to generate relative to its assets, owners equity, and sales?
Profitability ratio
What type of group of similar to task forces but normally they run their operation and have total control of a specific work project.
Project teams
Which of the following statements is true about tariffs and trade restrictions?
Protective tariffs allow more expensive domestic goods to compete with foreign ones
Which of the following statements is true about communist economy?
Provides for the production of a large variety of goods and services.
What is the order of Maslow's hierarchy of needs from bottom to top?
Psychological, safety and security, social, Stephen, and self actualization.
What is the five sections of the Google analytics dashboard?
Real time, audience, acquisition, behavior, and conversions
Which of the following indicates that a person has begun the process of resolving an ethical issue
Recognizing the ethical issue and openly discussing it with others
What's the type of psychological person called when lower price items are compared to higher price items in the same field?
Reference pricing
The (blank) act criminalized securities, fraud, and toughened penalties for corporate fraud
Sarbanes-oxley Act
Certificates of deposit (CDs)
Savings account that guarantee, a deposit or acid interest rate over a specific interval of time, as long as the funds are not with John before the end of the interval.
Exchange trade funds ETFS
Similar to mutual funds and that they invest in a pool of assets A these have very low management fees
Mutual savings bank
Similar to savings and loan association, but like credit unions their owned by their depositors
The term (blank) refers to a businesses obligation to maximize its positive impact and minimize it's negative impact on society.
Social responsibility
All of the following statements are true of the government regulation of sole proprietorships, except
Sole proprietorship must follow all laws, including federal state and local regulations security laws, an employee and consumer protection regulation.
The United States has a budget deficit of over $18 trillion. A budget deficit occurs when a nation?
Spends more than it takes in from taxes
What operation process makes identical, interchangeable components are even complete products?
Standardization
Which financial statement shows a detailed increase or decrease of transaction payment types?
Statement of cash flows
What are the three types of plans?
Strategic plan- which is stylish a long range objectives, usually cover periods of one year or longer. Tactical plan- short range and design to implement the activities and objective specified in the strategic plan. Usually cover 1 year or less Operational plan- a very short term plan that specifies what action specific individuals workers are departments need to accomplish in order to achieve the tactical plan and ultimately, the strategic plan usually spans one month or even a day.
What is the temporary group of employees responsible for bringing about a particular change??
Task force
What is the difference in value between exports and imports called?
The balance of trade
E-business differs from traditional business in that
The former carry's out the goals of business through the use of the Internet
How does mixed economy differ from pure capitalism?
The government intervenes in regulate businesses, some extent
Which of the following is one of the implications of trade deficits??
The import of more products
Examples of financial statements
The income statement: a financial report that shows in organizations profitability over a period of time, Be there in a month or a year. The balance sheet: presents a Snapshot of an organization's financial position at a given moment. The statement of cash flows: explains how the company's cash changed from the beginning of the accounting period to the end
What was established in 1947 to promote trade among member nations, and a similar to an international central bank?
The international money fund or IMF
What Are the four marketing activities of product, price,distribution, and information, called?
The marketing mix
Ethical decisions and an organization are influenced by individuals, moral standards, the influence of managers and coworkers, and
The opportunity to engage in misconduct
The reserve requirement
The percentage of deposits at banking institutions must hold in reserve
The discount rate
The rate of interest, the Fed charges to loan money, do any banking institution to meet reserve requirements
What was the result of the Hawthorne studies and what created the Hawthorne effect?
The workers they were studying basically just did well because they were receiving more attention.
What was the establish in 1946 by developed countries like the US to loan money to under developd countries?
The world bank
What management philosophy stresses the importance of employee participation in all aspects of company decision making?
Theory Z
All of the following are true regarding her marketers can use digital media to learn about consumers, except
Use Twitter and Facebook as substitutes for focus groups
There's additional balance sheet format, place assets on the left side with liabilities and equity is on the right, the more recently a (blank) form that has gained acceptance.
Vertical
When companies operating a different but related levels of an industry merge
Vertical merger
