Entrepreneurship Chapter 10?
Beginning inventory + _____________________ - Sales = Ending inventory
Purchases
______________ includes all of the activities involved in obtaining, training, and compensating the employees of a business
staffing
A(n) _______________ is a paper inventory record for a single item
stock card
An organizational ___________________ is a plan that shows how the various jobs in a company relate to one another
structure
The stock _________________ rate is the rate at which the inventory of a product is sold and replaced with new inventory
turn over
Which of the following is NOT generally thought of as part of the organizing function? A. strategic planning B. allocating resources C. assigning tasks D. grouping tasks into department
A. Strategic planning
This type of budget shows the projections of your cash coming in and going out A. cash budget B. production budget C. sales budget D. general budget
A. cash budget
The person in a business who is responsible for planning, organizing, staffing, implementing, and controlling the operations of a business is the A. manager B. intern C. employee D. chairman of the board
A. manager
A management style in which employees are involved in decision making and the manager provides less direction is called A. mixed management B. democratic management C. autocratic management D. authoritative management
B. Democratic management
Outlines for appropriate employee behavior and actions are called A. procedures B. rules C. policies D. mandates
B. Rules
The process of setting standards for the operation of a business and ensuring thosr standards are met is called A. staffing B. controlling C. supervising D. implementing
B. controlling
Which of the following is a strategy a business can use to encourage faster payment A. increase the amount of time your customers have to pay their bills B. offer discounts on bills paid right away C. send shipments early to show customers you trust them D. all of the above strategies will encourage faster payment
B. offer discounts on bills paid right away
This inventory method keeps track of inventory levels on a daily basis A. manual inventory method B. point-of-sale inventory method C. perpetual inventory method D. periodic inventory method
C. Perpetual inventory method
The dollar amount of all sales with any returns subtracted is called A. Gross profit B. net income C. net sales D. gross sales
C. net sales
All of the following are concerns about inventory that managers must address EXCEPT A. not ending up with out of date items B. maintaining a wide assortment of stock C. reducing inventory turnover D. keeping stock levels as low as possible without sacrificing performance or service
C. reducing inventory turnover
T/F - As a business owner, it is important for you never to make exceptions to rules, policies, and procedures once they are established because, if you do, customers and employees will become confused
False
T/F - Increasing payroll can improve a business's cash flow
False
T/F - Rules are more specific than procedures
False
T/F - Rules, policies, procedures, and budgets are important components of strategic planning
False
T/F - The perpetual inventory method keeps track of inventory levels on a weekly basis
False
T/F - Two businesses with the same level of sales and expenses will have the same cash flow
False
T/F - Under no circumstances should the authoritative management style be used in today's modern workplace
False
T/F - the cost of insurance tends to decrease as the value of the inventory insured increases
False
T/F - the three most important elements of a company's financial strength are its revenues, profits, and human resources
False
___________________ sales is the dollar amount of all sales
Gross
what is management style? name three commonly used management styles
How a manager works w/ employees. 1. authoritative 2. democratic 3. mixed
Combining authoritative and democratic management style is called ___________ management
Mixed
T/F - Inspecting products and services to ensure they meet quality standards is an example of the controlling function of management
True
T/F - Offering discounts on bills paid right away is a good way to improve your business's cash receipts
True
T/F - Organizing involves identifying and arranging the work and resources needed to achieve business goals
True
T/F - Successful inventory management involved balancing the costs of inventory with the benefits of having inventory in stock
True
T/F - The minimum amount of merchandise a business wants to keep in inventory is often referred to as the reorder point
True
T/F - even if your business uses the perpetual inventory method, you will need to take a physical inventory at least once or twice annually
True
To ensure accuracy, on what should a cash budget be based?
actual past revenues and expenses
The _____________________ point is the volume of sales that must be made to cover all of the expenses of a business
break even
The costs of holding inventory are known as _______________ costs
carrying
A(n) __________________ manual contains all of the rules, policies, and procedures that a business should follow in order to function effectively
operations
What are two ways you can track inventory? Give a description of both
periodic - physical count at regular intervals perpetual - keeps track on a daily basis with a computer
What is management?
process of achieving goals by effective use of people and resources