Business test review #2

When a nation imports more than it exports, it has a positives balance of trade

F

if Yvette wants to start her own business, what might persuade her to open a retail operation?

1. Gaining experience in retail is a challenge, so her business would likely have less competition. 2. There are no costs associated with opening a retail business. 3. Retailing does not require interacting directly with consumers 4.Retailing requires low initial financing.* 5. Retailing limits a firm's need to focus on specific groups of consumers.

Trade deficits can help businesses succeed, create more jobs, and improve the standard of living

F

A global strategy involves standardizing products for the whole world

T

A drawback of franchising is the need for franchisees to strictly adhere to standardized operations.

T

Manufacturing businesses are attractive to entrepreneurs because of the low start-up costs required to establish a manufacturing business.

F

Multinational corporations(MNCS) are rarely targeted by activist because they provide so many benefits to the countries in which they do business

F

Small businesses, by their very nature, are small and therefore do not contribute significantly to job creation.

F

Sociocultural differences, such as variations in body language and personal space, rarely have an impact on international business

F

The Asia-Pacific Economic Cooperation(APEC) is a trade agreement between Asian countries and does not include the US

F

In the manufacturing sector, small business sometimes have an advantage over large firms because small businesses

1. are exempted from paying taxed in most countries 2. can customize products to meet specific customer needs and wants.* 3. have a better access to highly skilled workers 4. can mass produce and supply goods in bulk 5. have better access to funds and can invest on sophisticated equipment

Bolivia, South America is the only countries in the world that is able to grow a rare plant that is used to produce a healing ointment for arthritis patients. Because Bolivia is the only country with access to this plant, it has an

1. comparative advantage 2. comparative disadvantage 3. absolute advantage* 4. absolute disadvantage 5. domestic advantage

To earn a profit, managers must acquire, coordinate, and control all of the following resources EXCEPT

1. competitive products* 2. people 3. services 4. money 5. raw materials and equipment

Which scenario best illustrates a small business operating in a retail industry as opposed to wholesaling its products?

1. Geri bakes cookies and sells them to other restaurants and cafes in malls 2. Stellar Cards manufactures cards and sells them to gift shops and supermarkets. 3. Trendy Tees, an apparel company, sells its merchandise to Tshirts.com so they can be sold on its website. 4. The Case Place imports cell phone covers and sells them directly to customers through kiosks at the mall.* 5. Spare Parts Inc. manufactures component parts for appliances and sells them to appliance repair companies.

What is a difference between high technology business and other small businesses?

1. High technology businesses never start in garages, basements, kitchens, or dorm rooms, whole some other types of small business can start in these places. 2. High technology business require greater capital and have higher initial startup costs than other small businesses.* 3. High technology business are less innovative than other small businesses 4.High technology business are the only type of small business that uses technology. 5. High technology business have lower initial startup costs than other small businesses.

_______ is the transferring of manufacturing or other tasks - such as data processing- to countries where labor and supplies are less expensive

1. Importing 2. Exporting 3. Outsourcing* 4. Dumping 5. Insourcing

A person who is involved in the process of creating and managing a business to achieve his or her desired objectives is engaged in

1. Intrapreneurship 2. Capitalization 3. Economics 4. Philanthropy 5. Entrepreneurship*

What is the purpose of the Small Business Administration?

1. It protects consumers against unfair practices by businesses. 2. It offers managerial and financial assistance to small business* 3. It protects small businesses against competition from larger companies 4. It ensures that newly formed businesses adhere to the law 5. It regulates the issue of stocks by small businesses

Vince starts his own tutoring business. He wants to write a good mission statement that explains his company's reason for existence. What is one guideline he should follow in writing his mission statement?

1. It should be long and include complex details 2. It should be written in technical industry jargon 3. It should answer every question its customers could ever want answers to 4. It should be short and vague 5. It should be clear and concise*

Why has outsourcing become a controversial practice in the US?

1. Outsourcing takes away jobs that could be accomplished by workers in the US* 2. Outsourcing takes away a company's ability to develop a comparative advantage 3. Outsourcing has made US-based products significantly more expensive 4. Outsourcing increases the cost of labor and supplies needed to get the job done 5. The outsourced products end up having sub-standard quality because their producers lack expertise.

Marissa is a fitness expert who starts her own personal training company. She conducts fitness classes for women and provides personal training sessions for clients. Marissa can be regarded as a(n)

1. Shareholder 2. Entrepreneur* 3. Investor 4. Intrapreneur 5. Inventor

Robert's Music Center is a local music shop. Along with selling musical instruments, it also rents instruments to students in school band programs. Robert is the owner and he employs three full-time and five part-time employees. Robert's business is a

1. Social entrepreneurship 2. limited liability company 3. small business* 4. micropreneurship 5. conglomerate

Countries like China and Vietnam are flooded with counterfeit videos, movies, computer software, furniture and clothing. Why is this?

1. The counterfeit products are of better quality 2. The copyright laws of those countries are strict for domestic products 3. Those countries do not engage in any trade that is legal 4. Intellectual property laws in those countries are very strict 5. Copying is tradition in those countries*

Joey's jewelry business has grown from a small startup in his basement to a chain of outlets all over the state. His business has the potential to expand further, provided he has the resources. To attract investors and other resources, he creates a mission statement for his company. He highlights that his gems come from countries with fair labor practices. Which basic question of a well-developed mission statement is he addressing?

1. What are our responsibilities with respect to being a good steward of environmental, financial, and human resources?* 2. When do we plan to go international? 3. Who are our stockholders? 4. who are out competitors? 5. How will we sources our products?

Which question does the mission statement of an organization seek to answer?

1. What is business are we in? * 2. How do we expand our business? 3. What are our staffing requirements? 4. Why are we not cost effective? 5. How do we meet the annual sales target?

Which of these basic questions will be answered by a well-developed mission statement?

1. Who are our customers?* 2. How do we expand our business? 3. How do we acquire customers> 4. Who are our competitors? 5. What products do we sell?

What is true of wholesalers?

1. Wholesalers cannot be eliminated because their functions are too important 2. Wholesalers receive their products from retailers. 3. Wholesalers do not provide management or merchandising assistance to clients. 4. Wholesalers do not perform marketing activities. 5. Wholesalers are extremely important because of the marketing activities they perform.*

Randy owns a small, local catering business. He has been hired for company picnics, backyard barbecues, and family celebrations. As word of mouth has spread about his delicious food, good service, and fair prices, he has started getting more business. To handle this, he has hired three employees to help cook and serve food at these events. What kind of entrepreneur is Randy?

1. a macroentrepreneur 2. a social entrepreneur 3. a sharing entrepreneur 4. a gig entrepreneur 5. a microentrepreneur

Bob and Tom live and work in Texas, but they love vacationing in the Bahamas. After several years, they decided to buy a vacation home in the Bahamas. When they are not there, they rent the property to other people for $1,200 per week. This is an example of

1. a service business 2. direct selling 3. social entrepreneurship 4. the sharing economy* 5. retailing

The Electronics Warehouse wants to make sure its products are always available to customers. Since the company sells many electronic products, including computers, televisions, printers, and gaming equipment, it will need many diverse_______ to maximize efficiencies and provide creative solutions to help the company reduce expenses and reach its objectives.

1. customers 2. managers 3. investors 4. locations 5. suppliers*

Maria manages an online shoe store. She must determine what her company's warehouses and distributing facilities need and which type of automation can maximize order efficiency. What major phrase of the planning process does this example describe?

1. date gathering* 2. even forecasting 3. objective setting 4. action taking 5. option selecting

While Justin attends college, he is working part-time for a cutlery company. He goes door-to-door and offers consumers face-to-face presentations in their homes. This is an example of

1. direct selling* 2. direct marketing 3. wholesaling 4. manufacturing 5. telemarketing

Grace manages a beach rental kiosk. Her goal is to run this business in such a way that she achieves the desired result, making a profit and providing her customers with the items they need to enjoy their vacation. Thus, her primary managerial concern is

1. efficiency 2. effectiveness* 3. standardization 4. innovation 5. expertise

If a manager is concerned about doing the work with the least cost and waste possible, then his or her primary managerial concern is

1. efficiency* 2. effectiveness 3. delegation 4. hiring 5. expertise

Get Fit Gym wants to make the best use of its resources. As a result, the company hires college students to work at the front desk, so personal trainers can focus on helping members in the gym and teaching fitness classes. What type of objective is the most relevant to this example?

1. efficiency* 2. profit 3. growth 4. competitive advantage 5. sales

Hiring people to carry out the work of an organization is known as

1. factoring 2. bartering 3. staffing* 4. controlling 5. directing

Wes is manager at a large investment banking firm. The firm is expanding, and he is tasked with hiring more people to carry out the organization's increased workload. Wes must also determine what to pay the new hires and develop a plan to train them. Wes is engaged in

1. factoring 2. directing 3. organizing 4. staffing* 5. supplying

What type of business has been growing faster than other classifiable firms and represents almost 30 percent of all small businesses?

1. family-owned business 2. minority-owned business* 3. publicly-owned business 4. social entrepreneurship 5. small corporations

Naveen is part of the planning team in his organization that is working to develop the firm's mission statement. The team knows that along with describing the business and identifying its customers, the team should also articulate the business's operating philosophy and list any core competencies the business has. What other item should Naveen and his team include in the mission statement?

1. how the business will be financed 2. a detailed plan of how the firm plans to grow in the future 3. the firm's organizational hierarchy and management structure 4. the firm's responsibilities with respect to being a good steward of environmental, financial, and human resources* 5. a complete listing that answers every possible question that customers could have about the firm's processes and products

When a manager makes sure there is adequate funding to pay for essential activities, he or she is managing_________ resources.

1. human 2. intangible 3. financial* 4. production 5. biological

Growth objectives essentially relate to

1. making the best use of an organization's resources 2. coordinating an organization's resources smoothly 3. focusing on profit as the sole indicator of growth 4. adapting and releasing new products in the market* 5. building an organization's ability to promote diversity

Baubies and Bangies, an independent jewelry store, acquires jewelry and accessories from producers and wholesalers and sells them to consumers. Baubies and Bangies is a

1. manufacturer 2. wholesaler 3. retailer* 4. direct sales company 5. direct marketing company

Walt owns a business in which he offers standardized test preparation classes and individual tutoring for students. This is an example of a

1. manufacuring business 2. wholesaler 3. retailer 4. service business* 5. direct selling business

Mahie owns an Indian restaurant that employs around 20 people. She is solely responsible for the management of the restaurant. Her business competes with a larger chain of restaurants that offers the same cuisine. Mahei's restaurant can be classified as a

1. multinational corporation 2. conglomerate 3. franchise 4. micropreneurship 5. small business*

Which type of business has created a majority of net new jobs annually?

1. multinational corporations 2. publicly traded companies 3. small businesses* 4. conglomerates 5. public sector holdings

While growing up, Carlos noticed that many families in his community struggled to make ends meet and provide for their children's education. As a result, he started a business to provide low-cost tutoring and scholarship opportunities for low-income families in this community. As his company has grown, Carlos has been able to extend free tutoring and college scholarships to five impoverished students per year. Carlos is a

1. nonprofit entrepreneur 2. profit entrepreneur 3. social entrepreneur* 4. sharing entrepreneur 5. macroentrepreneur

A company objective related to ______ is generally stated in terms of percentage of sales increase and market share, with the goal of increasing those figures.

1. opportunity costs 2. efficiency 3. competitive advantage* 4. employee turnover 5. raising capital

Determining an organization's objectives and deciding how to accomplish them is the management function known as

1. planning* 2. controlling 3. staffing 4. organizing 5. factoring1

Which management function is crucial because it lays the foundation for all other management functions?

1. planning* 2. organizing 3. staffing 4. controlling 5. directing

Bradley is a manager at a company that has made the difficult decision to downsize. After his company eliminated 50 employees, what must Bradley do to effectively manage his remaining employees and help them through the situation?

1. promote optimism and positive thinking * 2. commiserate with his employees 3. make sure his employees know that the company, not him, is to blame 4. encourage his employees to look for employment elsewhere 5. give his employees expensive gifts to encourage them to stay

Many service providers are considered retailers because they

1. require a high initial start-up cost. 2. provide their services directly to consumers.* 3. sell their services from a single store location. 4. focus on large market segments and institutional buyers. 5 employ only a small number of people

Nellie's Sweet Shop, a large candy store, has historically sold a lot of chocolate and gummy candies. However, over the years, people have become more health conscious. As a result, Nellie's develops a new line of sugar-free candies that taste as good as the original but without the guilt. What type of objective does this exemplify?

1. sales 2. competitive advantage 3. profit 4. efficiency 5. growth*

Menami and Michael recently had their first child. As two working parents, they struggled to find good, economical childcare. As a result, they developed their own software to link parents with licensed, reasonably priced childcare providers. This is an example of teh

1. sharing economy* 2. market segment economy 3. service economy 4. retail economy 5. consumer economy

Ross is one of the senior managers of a large company. He is part of a team that determines the objectives of the company based on future trends in the industry and decides how to accomplish them. Ross is involved in the management function of

1. staffing 2. recruiting 3. planning* 4. directing 5. factoring

Jake starts his own catering business. He creates a website for the business, which states that his purpose is to provide his customers with delicious food at a fair price. For Jake's company, this is its

1. statement of operations 2. mission statement* 3. business plan 4. operating agenda 5. target statement

A declaration of an organization's fundamental purpose and basic philosophy is known as a(n)

1. statement of operations 2. mission statement* 3. referendum 4. operating agenda 5. goal statement

Suppose there are several countries that are efficient at producing coffee beans and Brazil is one of those countries. While Brazil is efficient at producing coffee beans, it in inefficient at producing electronics. Because of this, Brazil sells its coffee beans to other countries and buys electronics from other countries. This scenario exemplifies the concept of

1. supply and demand 2. absolute advantage 3. a monopoly 4. exchange controls 5. comparative advantage*

Before an organization can plan a course of action, it must first

1. take corrective action 2. develop a blueprint of the plan 3. decide on the people to be involved in the plan 4. determine what it wants to achieve* 5. allocate and organize the required resources

All of the following are true of direct selling EXCEPT

1. the cost of getting involved is low 2. It can be done part time 3. It required buying a lot of inventory* 4. those who do it can receive commissions on their sales. 5. those who do it have the opportunity to recruit other distributors

Melvin's fishing store has profit as an objectives. As a result, he wants to have

1. unlimited liability 2. money and assets left over after paying off business expenses * 3. the ability to promote diversity 4. time to release new products in the marketplace 5. the ability to evaluate opportunity costs

Fit Rite Fasteners, a firm based in the United States, buys metal parts from China to manufacture fasteners. In doing so, the company is engaged in exporting

F

A business that is engaging importing and exporting must be familiar with the ratio at which one nations currency can be exchanged for another. In other words, the business must be familiar with the balance of trade.

F

A common reason for establishing quotas or tariffs is to encourage dumping

F

As an international business opportunity, direct investment provides the least amount of control but is also the least expensive way to participate in foreign trade

F

Companies doing business internationally have traditionally used a globalization strategy

F

Export agents either purchase products outright or take them on consignment but are not responsible for storage and transportation of the product

F

What social and cultural issues should a manager consider before doing business in a foreign country?

It is important for the manager to understand the importance of social and cultural differences between countries. Because cultural norms are rarely written down, careful research is crucial. Social and cultural differences include differences in spoken and written language, body language, personal space, family roles, perceptions of time, national and religious holidays, local customs, and measurement systems.

Entrepreneurship is the process of creating and managing a business to achieve desired objectives

T

International Business involves the buying, selling, and trading of goods and services across national boundaries

T

Licensing is a good option for small manufacturers wanting to launch a well-known brand internationally

T

Many US companies have taken advantage of Mexicos low labor costs and proximity to the US to set up maquiladoras

T

Nations trade with other nations to obtain resources that would otherwise be unavailable to them

T

Political unrest in countries often creates a hostile environment for foreign businesses and can act as a barrier to international trade

T

The General Agreement on Tariffs and Trade(GATT) provided a forum for tariff negotiations and a place where international trade problems could be resolved

T

The International Monetary Fund promotes trade among members nations by eliminating trade barriers and fostering financial cooperation

T

Trevor lives in Florida during the winter months. While in Florida, he rents out his main home in Colorado to people traveling there for the skiing season. Trevor is participating in the sharing economy.

T