Shared Flashcard Set

Details

Business 101 Final KBritt
Final review questions for Final test
128
Business
12/15/2009

Additional Business Flashcards

 


 

Cards

Term
In which economic system(s) does central government provide basic services?
a. Communism and socialism
b. Capitalism and socialism
c. Communism and capitalism
d. Socialism only
e. capitalism only
Definition
A. Communism and socialism
Term
Communist societies
a. Appear to be efficient and equitable, at least in theory
b. Have a high standard of living
c. Seldom have consumer shortages
d. Have only one class of people
e. Do not spend much on defense
Definition
A. Appear to be efficient and equitable, at least in theory.
Term
Businesses differ from nonprofit organizations in that a business's focus is on
a. price
b. goods
c. profit
d. organization
e. plans
Definition
C. profit
Term
The functions of organizing, staffing, planning and controlling are most closely associated with
a. employees
b. customers
c. managers
d. stockholders
e. accountants
Definition
C. managers
Term
A severe recession may turn into a(n)
a. economic expansion
b. black market economy
c. depression
d. economic contraction
e. more stable economy
Definition
c. depression
Term
In the history of the American economy, the period or stage following the Industrial Revolution was known for its emphasis on
a. service
b. technology
c. manufacturing
d. agriculture
e. information
Definition
C. manufacturing
Term
If a very successful professional football team has been ignoring the players' use of illegal muscle-building steroids, then the owners should begin focusing on improving the organization's
a. game plan
b. productivity
c. profitability
d. defense
e. ethics
Definition
e. ethics
Term
The Sarbanes-Oxley Act was passed to
a. punish those who committed accounting fraud in the late 1990's
b. improve corporate profits
c. help laid off employees get their jobs back
d. help investors recoup their losses
e. help restore confidence in corporate america
Definition
e. help restore confidence in corporate america.
Term
The best way to judge the ethics of a decision is to
a. ask a total stranger for an opinion
b. call your lawyer for an up-to-date legal opinion
c. look at the situation from a customer's or competitor's viewpoint
d. call a reporter from your local newspaper to get that viewpoint
e. assume everything will be okay as long as you don't get caught
Definition
C. Look at the situation from a customer's or competitor's viewpoint
Term
A set of formalized rules and standards that describe what a company expects of its employees is called a(n)
a. code of ethics
b. opportunity
c. moral philosophy
d. guideline
e. law
Definition
a. code of ethics
Term
the social responsibility of a business is important to
a. owners and investors
b. employees
c. governments
d. competitors
e. all of the above
Definition
e. all of the above
Term
many of the laws regulating safety in the workplace are enforced by
a. the FTC
b. The Department of Commerce
C. NAFTA
d. OSHA
e. the ADA
Definition
D. OSHA
Term
Which of the following is not highlighted in John F. Kennedy's 1962 consumer bill of rights?
a. the right to be heard
b. the right to choose
c. the right to minimum prices
d. the right to safety
e. the right to be informed
Definition
c. the right to minimum prices
Term
An absolute advantage exists when a country has a monopoly on a natural resource
true or false
Definition
true
Term
to reduce dollars flowing out of the country, the united states can limit the number of Japanese cars being imported by imposing a(n)
a. quota
b. exchange control
c. trade deficit
d. embargo
e. free trade zone
Definition
a. quota
Term
the translation of product names can be crucial in the success of a foreign marketing effort because of
a. political barriers
b. cultural barriers
c. legal barriers
d. export quotas
e. body language
Definition
b. cultural barriers
Term
which of the following is a major business resource that should be viewed as an asset to be developed and distributed to managers?
a. data
b. information
c. information technology
d. management information system
e. knowledge
Definition
b. information
Term
___ uses the Internet to carry out marketing activities including buying and selling activities conducted online
a. customer relationship management
b. e-commerce
c. intranets
d. extranets
e. supply chain management
Definition
b. e-commerce
Term
lack of control is a disadvantage of sole proprietorships
true or false?
Definition
false
Term
Corporations cannot be sued
true or false
Definition
false
Term
corporations distribute profits to their owners in the form of
a. tax-free dividends
b. interest
c. retained earnings
d. dividends
e. bribes
Definition
d. dividends
Term
when two companies combine to form a new company, it is called a(n)
a. merger
b. acquisition
c. tender offer
d. leveraged buyout
e. white knight
Definition
a. merger
Term
small businesses are the heart of the US economic and social system because
a. they are owner-operated
b. they allow for the development of new and better products
c. there are so few of them
d. they offer opportunities and express the freedom of people to make their own destinies
e. they offer entrepreneurial opportunities
Definition
d. they offer opportunities and express the freedom of people to make their own destinies
Term
Which of the following is not part of the definition of a small business
a. it employs more than 500 employees
b. it employs fewer than 500 employees
c. it is independently owned and operated
d. it is not dominant in its field
e. all of the above are part of the definition
Definition
a. it employs more than 500 employees
Term
which of the following is an advantage of small-business ownership?
a. lower cost of formation
b. high stress lever
c. high failure rate
d. lack of flexibility
e. poor reputation
Definition
a. lower cost of formation
Term
the lack of funds to operate a business is normally called
a. discounting
b. creative financing
c. financial pessimism
d. under capitalization
e. over capitalization
Definition
d. under capitalization
Term
many financial institutions decide whether to loan a small business money based on its
a. reputation
b. business plan
c. owners
d. employees
e. goals
Definition
b. business plan
Term
In a franchise business, the follwing generally happens
a. the franchiser pays a fee to the franchisee
b. the franchisee pays a fee to the franchiser
c. both the franchiser and the franchisee pay fees to the capital investors
d. each pays separate fees to the other
e. no one pays any fees to anyone
Definition
b. the franchisee pays a fee to the franchiser
Term
many experts think that the __ demographic is the market of the future
a. echo
b. ethnic
c. hispanic
d. counter-culture
e. boomer
Definition
e. boomer
Term
all of the following are typical resources that must be acquired by each organization in the pursuit of its objectives except
a. people
b. raw materials and equipment
c. money
d. information
e. laws and regulations
Definition
e. laws and regulations
Term
if a manger is concerned about doing the work with the least cost and waste, then her primary managerial concern is
a. effectiveness
b. accountability
c. delegation
d. hiring
e. efficiency
Definition
e. efficiency
Term
crisis management plans are the long-range plans developed by top management
true or false
Definition
false
Term
the type of planning conducted on a short-term basis to implement activities and objectives is called
a. strategic
b. static
c. tactical
d. comprehensive
e. timely
Definition
c. tactical
Term
when jane pointed out to the supervisor that the number of nails used by the table assemblers had increased by 20 percent from the preceding month, she was involved in
a. planning
b. organizing
c. staffing
d. controlling
e. directing
Definition
d. controlling
Term
describe the major functions of management
p. o. c. d. s.
police often create donut shops
Definition
p. planning
o. organizing
c. controlling
d. directing
s. staffing
Term
top management is most involved in
a. developing the organizations strategic plans
b. developing operational plans for a division
c. day-to-day operational decisions
d. regularly motivating assembly workers
e. controlling the firm's performance
Definition
a. developing the organizations strategic plans
Term
the specific operations of the organization, plan, division or department would most typicall involve
a. top management
b. middle management
c. first-line management
d. the board of directiors
e. stockholders
Definition
b. middle management
Term
the development of a performance-appraisal system is primarily the concern of
a. financial management
b. human resources management
d. marketing management
e. administrative management
Definition
b. human resources management
Term
when making a decision, selecting the best option is an objective procedure
true of false
Definition
false
Term
decision making in a medium-sized corporation is important
a. at all levels of management
b. only to top management.
c. primarily to administrative managers
d. to finance planners
e. to marketers
Definition
a. at all levels of management
Term
organizational culture cannot be expressed informally through work habits and stories
true or false?
Definition
false
Term
dress codes, work habits, extracurricular activities and stories are informal expressions of an organizations
a. grapevine
b. lack of organization
c. informality
d. culture
e. formality
Definition
d. culture
Term
organizational structure is defined as.
a. the arrangement or relationship of positions within an organization
b. a group of people working together to achieve an objective
c. the division of labor into small specific tasks
d. the grouping of jobs into working units
e. the grouping of working units into departments or divisions
Definition
a. the arrangement or relationship of positions within an organization
Term
a disadvantage of product departmentalization is that it does not focus on the organization's overall objectives.
true or false?
Definition
true
Term
the benefits of division of labor were described in The Wealth of Nations by
a. henry ford
b. john adams
c. adam smith
d. cyrus mccormick
e. sam walton
Definition
c. adam smith
Term
a company that has departments for marketing, finance, personnel and production is organized by
a. product
b. function
c. territory
d. customer
e. geographic region
Definition
b. function
Term
general motors is organized into these groups: GMC Trucks, Chevrolet, Pontiac, Oldsmobile, Buick, and Cadillac. Its type of departmentalization is
a. functional
b. process
c. customer
d. style
e. product
Definition
e product
Term
flat organizations have narrow spans of management
true or false
Definition
false
Term
the basis of all formal organizational structures is the concept of
a. free expression
b. profit making
c. delegation of authority
d. customer departmentalization
e. regular meetings
Definition
c. delegation of authority
Term
multidivisional structures
a. are temporary
b. organize departments into larger divisions, often based on geography, product, and/or customer
c. bring together specialists from a variety of areas to work on a single project
d. make slower decisions
e. are less innovative
Definition
b. organize departments into larger divisions, often based on geography, product, and/or customer
Term
teams
a. have individual and group accountability
b. create collective work projects
c. have a specific purpose that the team delivers
d. have shared leadership roles
e. all of the above
Definition
e. all of the above
Term
work groups
a. have shared leadership roles
b. have a specific purpose that the group itself delivers
c. create collective work products
d. have individual accountability
e. encourage open-ended discussion
Definition
d. have individual accountability
Term
if an employee is involved with transforming resources into goods and services, then he is in
a. marketing
b. financing
c. human resources
d. operations
e. budgeting
Definition
d. operations
Term
the transformation process is
a. the development and administration of activities that transform resources into goods, services and ideas
b. the conversion of human, financial and physical resources into goods, services and ideas
c. labor, materials, energy and money
d. goods and services
e. the development, promotion, pricing and distribution of products
Definition
b. the conversion of human, financial and physical resources into goods, services and ideas
Term
operations management includes responsibility for
a. customer service
b. inputs and outputs
c. product development
d. pricing
e. promotion
Definition
b. inputs and outputs
Term
if abc computer company is determining demand for its future products and how much consumers are willing to pay, the company will likely rely on
a. the economy
b. marketing research
c. the competition
d. the past
e. intuition
Definition
b. marketing research
Term
minimizing inventory by providing an almost continuous flow of items from suppliers to the production facility is referred to as
a. just-in-time management
b. economic ordering
c. material requirements planning
d. logistics
e. operations management
Definition
a. just-in-time management
Term
a planning system that schedules the precise quantity of materials needed for production is called
a. just in time management
b. material-requirements planning
c. economic order quantities
d. flexible scheduling
e. cycle time management
Definition
b. material requirements planning
Term
quality
a. is a concern only for manufacturing companies
b. is a concern only for service providers
c. refers to the price charged for a product
d. is a critical element of operations management
e. depends on employee's perceptions
Definition
d. is a critical element of operations management
Term
What is quality control?
Definition
quality control refers to the process and organization it uses to maintain its esablished
Term
human relations is important in business primarily because
a. it can prevent unions
b. it affects productivity and products
c. employees like it, although management doesn't
d. the government mandates it
e. all of the above
Definition
b. it affects productivity and goods
Term
good morale is likely to result in
a. loyalty
b. turnover
c. absenteeism
d. tardiness
e. mistakes
Definition
a. loyalty
Term
the hawthorne studies found that money was the primary motivator of employees.
true or false
Definition
false
Term
frederick taylor and other early twentieth-century management theorists believed which of the following would motivate employees to work hard?
a. satisfactory pay
b. adequate tools and long hours
c. satisfactory pay and job security
d. nice bosses and long vacations
e. all of the above
Definition
c. satisfactory pay and job security
Term
prior to the hawthorne studies, management theorists believed that the primary motivators of employees were job security and
a. recognition
b. money
c. awards
d. praise
e. punishment
Definition
b. money
Term
what were the hawthorne stuides
Definition
physical conditions in the workplace such as light and noise levels, would stimulate employees to be most productive
Term
herzberg's motivational factors correspond to maslow's physiological and security needs.
true or false?
Definition
false
Term
based on maslow's hierarchy, a homeless person will most likely work toward fulfilling which of the following needs?
a. self-actualization
b. esteem
c. social
d. security
e. physiological
Definition
e. physiological
Term
herzberg's two-factor theory proposes that
a. the absence of work setting factors may dissatisfy workers
b. factors such as comfortable working conditions will motivate employees to do a better job
c. factors such as job security will motivate employees to do a better job
d. higher wages will motivate employees to do a better job
e. lower wages will motivate employees to do a better job
Definition
a. the absence of work setting factors may dissatisfy workers
Term
theory z is less formal and more personal than traditional management approaches
true of false
Definition
true
Term
the assumption that expenditure of physical and mental effor in work is as natural as play or rest is mostly closely associated with
a. theory x
b. theory y
c. theory z
d. equity theory
e. behavior modification
Definition
b. theory y
Term
theory z includes many elements associated with
a. the chinese approach to management
b. the american approach to management
c. the european approach to management
d. the japanese approach to management
e. none of the above
Definition
d. the japanese approach to management
Term
Jane learned that, although she and June were both hired as part-time salesclerks at the same time and have similar backgrounds, June is paid 1 more per hour. Jane decided to stop cleaning dressing rooms on her shift because she thinks this is unfair. This is an example of which theory?
a. theory x
b. theory y
c. theory z
d. equity theory
e. expectancy theory
Definition
d. equity theory
Term
Job rotation attempts to reduce the boredom created by specialization of tasks by
a. laying people off for short periods
b. giving people longer breaks
c. giving workers a variety of tasks to do, moving from one to the other on a regular basis
d. adding new tasks to a job
e. all of the above
Definition
c. giving workers a variety of tasks to do, moving from one to the other on a regular basis
Term
which of the following adds tasks to a job instead of treating each task as a separate job?
a. job rotation
b. job enlargement
c. job enrichment
d. job design
e. job reduction
Definition
b. job enlargement
Term
which of the following is not a potential problem associated with telecommuting?
a. telecommuters may be left behind in today's fast pace of change
b. telecommuters may create a security risk
c. career advancement opportunities may be hindered for telecommuters
d. telecommuting may blur the barriers between office and home
e. telecommuting may increase job satisfaction and productivity
Definition
e. telecommuting may increase job satisfaction and productivity
Term
the planning function of human resources management includes determining the status of current personnel when planning human resource needs for the future
true or false
Definition
ture
Term
a human resources manager deciding how many positions an organizations will need is engaging in which of the following activities
a. recruiting
b. planning
c. training
d. selling
e. compensationg
Definition
b. planning
Term
applicants can ask questions about a job, its compensation, working conditions and more, during an interview
true or false?
Definition
ture
Term
the manager at a Kmart store is probably paid
a. a commission
b. time wages
c. piece wages
d. by units
e. a salary
Definition
e. a salary
Term
which of the following makes carrying out normal business operations difficult, if not impossible?
a. a strike
b. picketing
c. a boycott
d. the blue flue
e. an injunction
Definition
a. a strike
Term
what are some of the benefits associated with having a culturally diverse work force?
Definition
more productive use of human resources
reduce conflict among employees
more productive working relationships
increased employee commitment, innovation, creativity, and serve needs off a diverse customer base
Term
if an exchange is to occur, each participant must be willing to give up something of value to receive something the other has
true or false?
Definition
true
Term
james johnson has developed a new product, found a store willing to sell it and has agreed to help promote the product's sale. he is engaging in
a. retailing
b. marketing
c. researching
d. discounting
e. exchanging
Definition
b. marketing
Term
the exchange process is
a. value added to products
b. at the heart of all business
c. the price of a product
d. satisfaction of the sellers needs
e. the source of credit
Definition
b. at the heart of all business
Term
what is marketing?
Definition
activities designed
creating
distribution
promoting
pricing goods, services and ideas
Term
xyz inc. is surveying customers as to what kinds of services they would like the company to add. it is involved in the marketing function of
a. buying
b. storing
c. financing
d. marketing research
e. risk taking
Definition
d. marketing research
Term
trying to determine buyer's needs is easy because marketers fully understand what motivates people to buy things
true or false?
Definition
false
Term
to effectively implement the marketing concept, an organization must
a. meet its own objectives and satisfy customer needs
b. make a large profit
c. meet consumer needs and wants
d. perform all of the marketing functions
e. produce quality products
Definition
a. meet its own objectives and satisfy customers needs
Term
during the industrial revolution, new technologies fueled strong ___ for products
a. marketing research
b. advertising
c. marketing concept
d. supply
e. demand
Definition
e. demand
Term
the first major step of a marketing strategy is to
a. determine the price
b. select a target market
c. develop an appropriate marketing mix
d. add on a warranty feature
e. put the product on sale
Definition
b. select a target market
Term
if a company is focusing on delineating its market and developing the right combination of price, promotion, distribution and product,t he company is developing a
a. market niche
b. marketing strategy
c. marketing policy
d. marketing research experiment
e. marketing discount
Definition
b. marketing strategy
Term
after analyzing its own resources and unique abilities, a company is now trying to determine what group of customers it can satisfy with a good or service. It is in the process of choosing a
a. production strategy
b. target market
c. sales plan
d. geographical region
e. product line
Definition
b. target market
Term
which of the following is used to focus on a specific target markets so that a satisfactory marketing strategy can be developed?
a. concentration approach
b. total-market approach
c. customer segmentation
d. audience segmentation
e. market segmentation
Definition
e. market segmenation
Term
In addition to distribution, the main components of the marketing mix are
a. product, price profit
b. price, publicity, promotion
c. product, promotion, price
d. positioning, product, price
e. promotion, price, positioning
Definition
c. product, promotion, price
Term
the aim of ___ is to communicate directly or indirectly with individuals, groups and organizations to facilitate exchanges.
a. promotion
b. a marketing strategy
c. a marketing plan
d. a marketing approach
e. a marketing mix
Definition
a. promotion
Term
profits are negative in the growth stage
true or false
Definition
false
Term
if a nationwide sandwich shop company introduces a new sandwich in the midwest to try out its marketing strategy before offering the product across the country it is using
a. idea screening
b. commercialization
c. concept testing
d. menu experimentation
e. test marketing
Definition
e. test marketing
Term
a light bulb used to provide light for workers on an assembly line would be classified as what type of product?
a. mechanical
b. technical
c. business
d. commercial
e. consumer
Definition
c. business
Term
products such as furniture, audio equipment, bicycles and clothing are generally classified as
a. convenience goods
b. specialty goods
c. shopping goods
d. luxury goods
e. capital goods
Definition
c. shopping goods
Term
if a product is experiencing negative profits and the company is spending a great deal of money on advertising to make the consumers aware of the product, the product is most likely in the following life cycle stage:
a. growth
b. decline
c. introduction
d. maturity
e. intermediate
Definition
c. introduction
Term
when a computer company initially charged a low price for a new computer and then raised the price after gaining a large market share, it was using which pricing strategy
a. low ball
b. subterranean
c. psychological
d. skimming
e. penetration
Definition
e. penetration
Term
services are usually distributed through
a. direct marketing channels
b. indirect channels
c. a wholesale
d. an agent
e. a retailer and a wholesaler
Definition
a. direct marketing channels
Term
the level of market coverage for Liz Clairborne clothes could be described as
a. intensive distribution
b. exclusive distribution
c. selective distribution
d. coordinated distribution
e. none of the above
Definition
c. selective distribution
Term
when ford pays a television network to air its commercial, it is using
a. publicity
b. advertising
c. personal selling
d. sales promotion
e. packaging
Definition
b. advertising
Term
if a manufacturer offers a wholesaler a special incentive to carry a new product line, which strategy is being applied
a. pull
b. advertising
c. bribery
d. creative financing
e. push
Definition
e. push
Term
bookkeeping is only one aspect of accounting and involves the recording of routine, day to day business transactions
true or false
Definition
true
Term
if sara sidle is self employed, state-certified accountant who provides various types of accounting services for different companies and organizations, she is probably a
a. private accountant
b. certified management accountant
c. certified public accountant
d. non certified accountant
e. forensic accountant
Definition
c. certified public accountant
Term
liquidity is judged by how easily an asset can be turned into cash
true or false
Definition
true
Term
the financial document that has been likened to a snapshot of how the company's finances are doing at that moment is called a(n)
a. income statement
b. balance sheet
c. annual report
d. budget
e. statement of cash flow
Definition
b. balance sheet
Term
the owners contributions to a company and all earnings retained to finance continued growth and product deveopment are
a. owner's equity
b. assets
c. liabilities
d. revenue
e. profits
Definition
a. owner's equity
Term
money functions as all of the following except
a. a store of value
b. a medium of exchange
c. a measure of value
d. a portable fiat
e. none of the above
Definition
a portable fiat
Term
when used to accumulate wealth, money functions as a
a. yardstick of value
b. store of value
c. measure of value
d. medium of exchange
e. transaction
Definition
b. store of value
Term
in certain latin american countries, citizens spend their money as fast as they receive it in order to keep up with or stay ahead of the rapidly rising prices of consumer goods. under these conditions, money is said to lack
a. portability
b. divisibility
c. durability
d. stability
e. difficult to counterfiet
Definition
d. stability
Term
another name for a savings account is a(n)
a. interest deposit
b. space deposit
c. demand deposit
d. time deposit
e. certificate of deposit
Definition
d. time deposit
Term
to carry out its function of controlling the supply of money, the federal reserve board
a. uses financial policy
b. uses monetary policy
c. prints money
d. taxes issues
e. destroys old money
Definition
b. uses monetary policy
Term
the rate the federal reserve system charges banks for borrowing money from it is called the
a. prime rate
b. medium rate
c. mortgage rate
d. finance rate
e. discount rate
Definition
e. discount rate
Term
the major difference between banks and credit unions is that
a. credit unions are owned and controlled by depositors
b. banks distribute their profits to depositors
c. credit unions make large loans to corporations
d. bank depositors vote for the bank officers
e. credit unions have higher default rates than banks
Definition
a. credit unions are owned and controlled by depositors
Term
when the federal reserve buys securities, it
a. decreases the money supply
b. increased the money supply
c. increases the amount of insurance for accounts
d. clears up all of the checks in the system immediately
e. reduces the percentage of deposits that banks must hold in reserve
Definition
a. decreases the money supply
Term
another name for a checking account is a
a. demand deposit
b. money market account
c. time deposit
d. mutual fund
e. cash deposit
Definition
a. demand deposit
Term
the federal reserve system was established by congress in 1913 to
a. regulate the banking industry
b. allow huge swings in the economy
c. be dependent on congress politically
d. reduce the money supply
e. increase the money supply
Definition
a. regulate the banking industry
Term
cash, marketable securities, accounts receivable and inventory are also known as
a. current assets
b. current liabilities
c. long term assets
d. long term liabilities
e. fixed assets
Definition
a. current assets
Term
the market value of common stock is the price at which it is currently trading
true or false
Definition
true
Term
current assets include all of the following except
a. accounts receivable
b. accounts payable
c. marketable securities
d. inventory
e. cash
Definition
b. accounts payable
Term
short term debt obligations that must be repaid within a year are
a. long term assets
b. long term liabilities
c. current liabilities
d. current assets
e. fixed liabilities
Definition
c. current liabilities
Term
a bond
a. must be repaid according to the terms set in its indenture
b. may be defaulted without penalty
c. is the same as a stock
d. is a fixed asset
e. is a current liabililty
Definition
a. must be repaid according to the terms set in its indenture
Term
if a company retains all of its earnings then it will not pay
a. dividends
b. taxes
c. expenses
d. bills
e. suppliers
Definition
a. dividends
Term
the two biggest stock markets in the united states are
a. american stock exchange and new york stock exchange
b. chicago stock exchange and NASDAQ
c. new york stock exchange and NASDAQ
d. southeast regional stock exchange and new york stock exchange
e. tokyo stock exchange and nasdaq
Definition
c. new york stock exchange and nasdaq