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bus 101 final

Janet Yellen
_____ is the current chairman of the Federal Reserve.
As competition has become truly global, free trade has resulted in ____ prices and ____ quality across virtually every product category.
product or service, employees, revenue, sales, and a primary purpose of doing good
Which of the following features best describe a nonprofit?
central bank
The Federal Reserve is the _____ of the United States
Fiscal policy
_____ refers to government efforts to influence the economy through taxation and spending decisions designed to encourage growth, boost employment, and curb inflation
contraction and expansion
Two key phases of the business cycle are
Hank said, “We can charge whatever the market will bear.”
Which best describes the equilibrium price in the relationship between supply and demand?
freedom of guaranteed profits
All of the following are basic freedoms encouraging entrepreneurship EXCEPT
create benefits for others while seeking profit for themselves.
The Federal Deposit Insurance Corporation will only insure up to $250,000 in each account per customer, per bank. He would need more than one bank to ensure his money is federally protected in the event of an economic collapse of the banking system.
Michael has inherited $500,000 from the sale of a family business. His banker is advising him to find multiple banks to deposit his money. Why?
Government spending is of great concern, as well as its accompanying tax burden in a wild economic environment. But technology has not yet found a limit. The entrepreneurial spirit is alive and well in America, though competition has increased exponentially due to international trade agreements
Which of the following best describes the current business environment?
Business will incur a _____ when expenses are higher than revenue.
supply curve
The _____ shows the quantity of products that producers will offer at various market prices.
Businesses in the relationship era focus efforts on building long-term customer relationships. To accomplish this, a key tool for business development during this era is
standard of living
_____ refers to the quality and quantity of products and goods available to a population at a given time.
physical, intellectual, and creative contributions of individuals working within an economy.
Human resources include the
right to keep profits and not pay taxes
Which of the following is not a fundamental right of capitalism?
the major issues facing the national economy that may seem abstract, but directly affect an individual’s day-to-day life.
Macroeconomics focuses on ____.
gain a better understanding of past business choices in order to make better future decisions
From the business perspective, a key reason to study economics is to
A _____ is any activity that provides goods and services in an effort to earn a profit.
transportation, communication, energy
Key infrastructure challenges to consider when entering a foreign market include:
common market
What is the European Union?
less competition
Imports and exports enhance international trade, while creating growing opportunities for nations. Which of the following is NOT a benefit of global trade?
larger populations and more economic growth
Compared to the U.S., the nations of China and India have
binding on all parties involved in the dispute
Decisions of the World Trade Organization in settling trade disputes are
Canada, Mexico, USA
The three countries participating in the North American Free Trade Agreement (NAFTA) are
protect national security
Reasons to eliminate trade restrictions include all of the following EXCEPT
joint venture
A(n) _____ is an agreement among two or more two companies to join forces to pursue specific opportunities without actually merging their operations.
encourage worldwide trade
The purpose of the General Agreement on Tariffs and Trade (GATT) was to
world bank
The _____ influences the global economy by providing technical advice to the governments of developing countries for projects in a range of areas including infrastructure and education.
competition would increase, resulting in lower prices and increased choices for consumers
If trade restrictions among nations were eliminated, economists predict
In 2002, the U.S. steel industry lobbied the U.S. government to place a tax on the importation of foreign-produced
steel. The goal was to make imported foreign steel more expensive, thus giving economic relief to U.S. steel
producers through a(n) _____.
Foreign _____ is contracting with foreign suppliers to produce products usually at a fraction of the cost of domestic production
Nashika spent a two-week vacation in Africa and purchased more than $4,000 worth of African tribal art. Upon returning to the U.S., she was required to pay a(n) _____ on the artwork.
Relative to other nations, the United States appears to have more plentiful ____ available.
sociocultural differences
Language, customs, educational background, social values, and religious holidays need to be understood and respected by foreign businesses in considering
outsourcing, importing, exporting, licensing, franchising, and foreign direct investment
International trade provides businesses with access to new customers through
significant job loss for the US economy
What was the predicted result of NAFTA?
A trade ____ occurs when a country imports more goods and services than it exports.
opportunity cost
Ross has two different projects he would like to work on this weekend; he wants to paint the spare bedroom or perform some minor repairs on his old ’83 Chevy. Unfortunately, he doesn’t have time to do both this weekend. The fact that Ross must give up one thing in order to do something else illustrates the concept of
planned obsolescense
Deliberately designing a product to fail in order to shorten the time between consumer purchase and repurchase is known as
someone is forced to choose among bad options
In challenging business decisions, true ethical delimmas are when _____________.
Organic juice manufacturer Odwalla finds e.coli bacteria in its product, but not before it hits the market. Several people become ill, and one little girl dies. The CEO shuts down all production, recalls all product, conducts an investigation to fix the problem, resumes production, and attends the girl’s funeral all before FDA intervention occurs.
Which scenario is preferable, ethically speaking, for stakeholder groups?
sustainable development
The goal of _____ is to meet the needs of the current generation without harming the ability of future generations to meet their needs.
provide guidelines that apply to everyone across a broad spectrum of situations.
The goal of universal ethical standards is to
groups or individuals with a personal interest in the performance and actions of a business.
Stakeholders are
cause related-marketing
Recently, Estée Lauder announced that it will donate a portion of each sale of its Gwyneth Paltrow-endorsed perfume to breast cancer research. This is an example of
sets of belief about right and wrong
Ethics refer to __________.
bribery and corruption
_____ are among the most challenging issues faced by companies and individuals that are involved in international
from firms that never contribute to socially responsible causes to firms that choose to integrate social responsibility into their strategic plans.
The spectrum of how firms address issues concerning social responsibility ranges
legal and unethical
The Drof Motor Company has created an exciting new vehicle, the Terminator. One reason that the company is so excited about this vehicle is that once the 60,000-mile warranty ends, the vehicle will begin to experience mechanical problems generating more service income for the company. This behavior is
A person who reports illegal or unethical behavior within an organization is known as a
code of ethics
A unifying written document that articulates a firm’s ethical priorities is described as the company’s:
_____ is the social movement supporting the consumer’s right to be informed, to be safe, to choose, and to be heard.
has significant influence on the individual employee’s ethical behavior.
Research indicates that the organizational culture
Mary should decline to bring the client list with her, since this request is unethical.
Mary found out that there is a management position available at competitor’s store and has applied for it. During the interview process, the prospective new employer asks Mary if she has access to her company’s client list. The prospective new employer implies that Mary would be guaranteed the position with a sizable compensation package if she would be willing to bring the client list with her. Mary really could use the extra money. Mary has encountered an ethical dilemma, what should she do?
Ethical choices begin with ethical ________________.
the obligation of a business organization to contribute to society
In the business world, social responsibility refers to
Ethics; Ethical dilemna
_____ are the moral principles that govern behavior, while a(n) _____ occurs when the behavior results in a choice among alternatives, each of which has negative consequences.
to establish high ethical standards, clearly communicate these standards, and demonstrate a strong personal commitment to them.
The role of the CEO in setting the ethical tone for a company is
Small Business Administration
The _____ is the federal government agency dedicated to maintaining and strengthening the national economy by
aiding, counseling, assisting, and protecting the interests of small businesses.
view it as an opportunity to learn from their mistakes
When entrepreneurs fail they tend to
a detailed description of the firm’s contingency plans.
A business plan should include all of the following topics EXCEPT
provides a document to keep employees focused; necessary to seek outside funding.
The business plan has two main purposes
personal resources of the founder
Research suggests that many entrepreneurs find their new business with:
Some people just need a good challenge. As an entrepreneur they will find it; along with the independence to meet it however they see fit.
Which choice best describes some key reasons for starting up your own business?
Overhead costs for small businesses
are often lower than they are for big companies, giving small businesses a competitive opportunity.
manage money more wisely
One reason many small businesses fail is the founder’s inability to
aversion to risk
All of the following are entrepreneurial characteristics, EXCEPT
Countries that place extensive, complex regulations on business
Which of the following nations is likely to have the lowest percentage of entrepreneurs?
Small Business Development Centers
_____ are local offices affiliated with the Small Business Administration that provide comprehensive management assistance to current and prospective small business owners
Small Business Administration
Sheila loves taking care of animals and has thought about starting her own pet grooming business. However, she
doesn’t know much about the growth potential for this type of business or the amount of competition she would
face. She also wants to find out if there are any government regulations she would need to follow. A good starting
point to help her find answers to her questions is to contact the:
Small businesses generate about half of the U.S. gross domestic product.
Which of the following is true of small businesses?
Market niches
_____are small segments within a market that can offer profit potential to entrepreneurs who know how to serve them.
For research purposes, the Small Business Administration defines small business as companies with up to _____ employees.
how Noodle will reach its potential customers
Paige founded Noodle, an Internet search provider. In order to secure the first round of financing, she wrote a
business plan. Which of the following information would she include in her business plan?
Angel investors
_____ are wealthy individuals who invest in new and growing firms
Jill holds a BS in business and another in landscape architecture. While she works at a coffee shop to make ends meet, she cannot stop herself from staying up late into the night researching the landscape architecture industry and making a strategy.
Identify the entrepreneur.
a small new company with potential for rapid growth
A venture capitalist firm is most likely to be interested in investing in a
lack of business knowledge and expertise by the owners
Which of the following is an actual competitive disadvantage for many small businesses?
_____ is a system for recognizing, recording, organizing, summarizing, analyzing, and reporting information about the financial transactions that affect an organization.
generally accepted accounting principles (GAAP)
To provide external shareholders with relevant, reliable, consistent, and comparable financial information, the accounting profession has adopted _____ to guide the practice of financial accounting.
the value of what is given up in exchange for something.
Accountants define cost as
an independent auditor’s report
Which of the following is used to interpret financial statements of a firm?
_____ accountants provide services such as tax preparation, external auditing, or management consulting to clients on a fee basis.
_____ refer to the cash spent by a firm to carry out business activities and generate revenue.
prevent relationships that created conflicts of interest between CPA firms and the firms they audit.
One of the purposes of the Sarbanes-Oxley Act of 2002 was to
salaries payable
Which of the following does not classify as an asset of a company?
balance sheet
The _____ summarizes a firm’s financial position at a specific point in time (i.e., a specific quarter or year).
management accountant
As a _____ you work within an organization, preparing reports and analyzing financial information such as budgets and cost management.
annual reports
Investors are provided with _____ from the firms whose stock they own. These documents provide additional information about the firm’s practices and operations.
revenues and expenses
Profit is the difference between
Managerial accounting is primarily focused inward for benefit of the company.
In what key ways does managerial accounting differ from financial accounting?
must complete an accounting-related internship while in college
Candidates wishing to become certified public accountants must complete all of the following to reach certification EXCEPT
All of these statements are benefits of budgeting.
Preparing a good budget is beneficial because
assets= liabilities + owner’s equity
What is the accounting equation?
Cost of Goods Sold
All of the following are liabilities EXCEPT
check the accuracy of every transaction
The external audit process includes all of the following EXCEPT:
owner’s equity
_____ is/are what the firm owes its creditors.
_____ is the private, self-regulating, seven-member board established to develop generally accepted accounting principles used in the practice of financial accounting.
the right to repayment of principle
Common stockholders have all of the following rights EXCEPT
owners, creditors
Equity financing is provided by ____ while debt financing is provided by ____.
budgeted balance sheet
The _____ forecasts the types and amounts of assets a firm will need to implement its future plans as well as the amount of additional financing the firm must arrange in order to acquire those assets.
It means that it’s best to have money today, so it can be put to work sooner to make even more money.
Which of the following best explains the time value of money?
Individual investors are not permitted to directly trade stocks on the NYSE or NASDAQ. Therefore, individuals most seek the help of a(n) _____________.
In general, riskier investment strategies offer the potential for a higher return
Which of the following is true of personal investing?
an example of illegal insider trading
Jorge is a senior vice president for his company. He learned at a senior staff meeting today that the company’s research staff has made an amazing discovery that is almost certain to result in several profitable new patents. He is confident that once this information becomes public knowledge, the price of his company’s stock will soar. He calls his broker and places an immediate order to buy 5,000 additional shares of stock in the company. Jorge’s actions are
public offering
An initial _____ is the first time a corporation issues stock that may be purchased by the general public.
Securities and Exchange Commission
Before going public, a firm must file a registration statement with the
selling its merchandise more quickly
At Chips and Dips, a local convenience market, an increase in the inventory turnover ratio would indicate that it was
making decisions about the appropriate way to promote products.
Financial management includes all of the following functions EXCEPT
_____ is the functional area of business that is responsible for finding, among many alternatives, the best sources of funds and the best way to use them.
Federal Reserve Act of 1913
The _____ created the Federal Reserve System, with its primary responsibility being to oversee our nation’s banking system.
The exact date when the issuing firm must repay the principal to a bondholder is known as the bond’s _____ date.
____ consist(s) of the stocks of goods, materials, parts, and work-in-process that firms hold as part of doing business.
She should diversify her portfolio by investing in something other than cosmetics, like an up-and-coming tire manufacturer.
Jesse loves cosmetics. It is her passion; she performs makeover magic all day everyday for thousands of fabulously satisfied customers. As a result, she has invested in the stock of every solid-performing cosmetics manufacturer or distributor she could get her hands on. What’s the deal with her investment strategy?
often helps the firm increase value for its owners
Today’s financial managers generally believe that treating customers, employees, suppliers, creditors, and other stakeholders with fairness and respect
common stock, preferred stock, bonds
The three basic types of securities corporations issue to raise long-term financial capital are
maximizing the value of the firm to its owners
Historically the most widely accepted goal of financial management is
a distribution of profits that are paid only if approved by the company’s board of directors.
Dividends to common stockholders are
positioning statement
A firm’s _____ is a brief statement articulating how the marketer wants the target market to envision his or her product relative to the competition.
product life cycle
The _____ is a theoretical model that includes the stages of introduction, growth, maturity, and decline.
A product _____ is a group of products offered by a firm that are closely related to each other, either in terms of how they work, or the customers they serve.
idea screening
Which of the following stages of the new product development process involves weeding out ideas that don’t fit
with a company’s objectives and ideas that are too expensive to develop?
_____ is an organizational function and a set of processes for creating, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.
merchant wholesalers and agent/brokers.
Independent wholesalers fall into two categories:
Henry Ford’s famous quote that customers could have any color car they wanted “as long as it is black” best reflects marketing attitudes during the _____ era.
nonstore retailers
Online selling, direct response retailing, and vending machines are all examples of
channels of distribution
HP relies heavily on wholesale and retail channel partners to distribute its computers. Dell elects to sell most of its computers directly to consumers without using intermediaries. Clearly, these firms have different
Consumer behavior
_____ refers specifically to how people act when buying goods and services for personal consumption.
Who holds the record for the most humorous Super Bowl ads?
product must not only be different from those of competitors, it must also be better.
Successful product differentiation requires that the
get the right product to the right person at the right place and time.
The goal of distribution is to
communication intended to influence consumer purchase decisions through information, persuasion, and reminders.
In marketing, promotion refers to
multichannel marketing
The Creamy Cow is a maker of gourmet ice cream. The company uses _____ to sell its products by using a variety of venues, including grocery stores, online, and mail order.
_____ is the customer’s perception that a product has a strong, positive relationship between its cost and benefits.
public relations
In its broadest sense, _____ refers to an organization’s ongoing efforts to create positive relationships with its consumers, employees, suppliers, the community, the general public, and the government.
collect, manage, and apply the right data at the right time to the right customer.
A key to successful customer relationship management is to
underpromise, thus setting consumer expectations too low
A common error marketers commit when trying to generate customer satisfaction is to
measurable characteristics
Demographic segmentation divides the market by
has begun to impact high-tech, high-pay positions as well as low-end jobs.
The practice of outsourcing
Shane is engaged in strategic planning
Shane has worked for Alpha Fastener, LLC for over 20 years. He has worked his way up to the top management. He spends his time at work thinking about how the firm should execute a hostile takeover of its primary local competitor, Gamma Nuts & Bolts, Inc., so as to enrich its stake in the local marketplace. Which of the following kinds of planning is Shane engaging in?
this very large group is nearing retirement, raising the possibility that firms will lose many of their most talented and experienced employees.
A major challenge human resource managers face with their baby boom generation employees is that:
taking proactive steps to reintegrate women back into the workforce.
Human resource managers are trying to ease the “brain drain” in the workforce caused by highlyqualified, professional women leaving the workforce early—with specific retention plans and:
Strong orientation programs help to significantly reduce employee _____.
_____ is the achievement of the goals of an organization through planning, organizing, leading, and controlling organizational resources.
Offer bonuses to existing employees for successful referrals.
Carl McNamara is a human resources manager who believes that his company needs some fresh energy and new ideas. Rather than hire from within, he’s looking to fill some of the new openings in his company with qualified candidates from outside the company. Which of the following sources would probably provide him with the most effective way of locating potential employees who would be a good fit?
Lauren works at CDz, the local music store. Lately, she has noticed that Mike, the regional manager, is making more of the decisions for store displays and music selections than the store manager. When she asks Mike why he has picked up the added responsibility, he says, “Headquarters wants to ensure a more consistent approach for our customers, so they’ve decided to adopt a more _____ approach.”
The _____ function of management means creating a logical structure for people, their jobs, and their patterns of interaction.
Strengths and weaknesses include factors that would either build up or drag down the firm’s performance.
Which of the following statements is true of SWOT analysis?
often bring optimism and a proven ability to multitask to work.
One of the advantages of hiring younger workers is that they:
uses his/her power
A person’s leadership style is defined by the way one:
Cafeteria-style benefits
_____ would appeal to employees who want to have some flexibility in the choice of the benefits they receive.
They must have exceptional human skills
Which of the following statements is true of middle management?
The objective must be specific and measurable.
Which of the following is a characteristic of an ideal objective emerging out of the planning process?
a positive culture to motivate employees
The top companies in Fortune magazine’s 100 Best Companies to Work for in 2013 emphasize:
the self-actualization need
According to Maslow’s hierarchy of needs theory, which of the following describes the need for fulfillment?
it ensures that a highly qualified individual will get the job.
Firms that use internal recruitment to fill job openings are likely to benefit in all of the following ways EXCEPT:
have high expectations about pay and opportunities for advancement but low expectations about her employer’s loyalty to her.
Eileen is 23 years old and a recent college graduate who just accepted her first full-time position as a web designer. If Eileen is like most in her generation, it is likely that she will:
human resources
Promoting career development of employees is one of the duties of a company’s _____ department.
system software and applications software
The two broad categories of software are
graphical user interface
All of the following are forms of Internet traffic EXCEPT
A(n) _____ is a network confined to sites on internal web servers and only available to individuals within an organization.
encourages collaboration among employees
Cloud computing has many advantages over traditional computing. One advantage of cloud computing is that it
information technology department
The vital function of _____ involves transforming data into useful information for decision makers.
_____ is/are the raw facts and figures businesses collect.
decision support systems
In an effort to make better decisions, many companies develop _____ that give managers access to large amounts of data and processing power to covert data into high-quality information.
data mining
In an effort to make better decisions, many companies develop _____ that give managers access to large amounts of data and processing power to covert data into high-quality information.
_____ e-commerce involves businesses buying and selling supplies, components, machinery, equipment, or services from other businesses.
Customer relationship development
_____ is the marketing strategy of building relationships with customers. It has experienced a tremendous boost due to the growth of the Internet.
Viral marketing
_____ is an Internet marketing strategy that attempts to involve customers and others not employed by the seller in activities that promote a product.
electronic bill presentment and payment
In its statement stuffers, Comcast is advertising a new paperless statement program. With a few clicks of the mouse, you can now get your bill, pay it, and get a receipt. This is one example of a number of retailers now offering
_____ is software installed, often erroneously, on a computer that might log each keystroke in an effort to capture passwords and user names to accounts.
infected with a computer virus
Lucy Luddite is frustrated with her computer. Many files on the hard drive have been modified or erased, and now it takes forever for the computer to boot up. Based on this information, it appears her computer has been
spyware, computer viruses, and worms
______ are all examples of malware.
not click on the link and call his bank, because it is likely to be a phishing scam.
Brady received an email claiming that his bank’s records show some possible errors in his account and requesting that he click on a link to a site where he can confirm his password, social security number, and account numbers. The email looks official and contains his bank’s logo. Brady should
CAN-SPAM Act of 2003
The _____ requires senders of unsolicited commercial emails to label their messages as ads and to tell the recipients how to decline future messages.
_____ are skilled computer users who try to gain unauthorized access to other people’s computers.
Intellectual property
____ is the result of creative efforts such as books, musical works, inventions, and computer software.
protect your computer from viruses and online threats
Performing timely backups, updating operating systems regularly, and not opening emails or attachments from people you do not know are just a few suggestions to
Operations management
_____ is concerned with all of the activities involved in creating goods and services and the distribution of those goods and services to customers.
efficiency doesn’t guarantee success if other firms provide products of greater value
Back in the early 1980s TipeRite typewriters were popular among students, because they were solid but inexpensive. TipeRite was able to make a profit despite its low prices, because it kept its costs low. But in the late 1980s and 1990s, more and more students abandoned typewriters and began using personal computers and word processing software. Even though the new technology was much more expensive than typewriters, it was also much more versatile and powerful. Soon TipeRite couldn’t find anyone to buy its products despite their low prices. The company’s trouble illustrates that:
the flow of materials and finished goods through all firms involved in production and distribution, plus the corresponding flows of services, financial resources, and information.
From an operations management perspective, a manufacturing firm’s value chain includes:
she is preparing for a large sale and does not want to run out.
Deciding how much inventory to keep on hand can be a challenge. Jackie, a local toy store manager has ordered a large number of skateboards for the holiday season. Most likely, her reason for this tactic is:
Is the prospective location near customers and suppliers?
When the vice president of operations for McDonald’s looks for a new franchise location, what should he or she consider first?
Background music, lighting and the use of scents are all factors of ____________ in servicescape designs.
offering an incentive for customers to come at off-peak times.
Everyday at lunch time customers for Tran’s Asian cuisine are lined up outside the door. Tran can not afford to build a larger facility so in order to spread out demand Tran should consider
Robots are capable of manipulating materials, but they currently lack the ability to perform tasks that require them to “feel” or “hear”.
Which statement about robots is false?
how well a product satisfies the preferences of customers.
Robots are capable of manipulating materials, but they currently lack the ability to perform tasks that require them to “feel” or “hear”.
prevention, correction
One goal of TQM is to focus on _____ rather than _____ of problems.
reducing deficits
While TQM has several goals, Six Sigma is about _____
Lean production
_____ is the set of strategies and practices to eliminate waste.
Finding ways to meet an organization’s current objectives while protecting and preserving the environment for future generations is known as _____
keep inventories at a minimum
The purpose of just-in-time production is to:
enterprise resource planning
The goal of a(n)_____ system is to integrate the information flows of all aspects of a business’s operations.
ERP makes it easier for organizations throughout a value chain to coordinate their activities.
Which of the following statements is true of enterprise resource planning (ERP)?
Computer-aided manufacturing
____ software takes the electronic design for a product and creates the programmed instructions that robots must follow to produce that product as efficiently as possible.
They rely on teams of workers to carry out specific projects to improve quality.
Which of the following is a similarity between total quality management and six sigma?
lean production
Mary Harris heads a team of employees at Panther Creek Production. The goal of the team is to reduce or eliminate any function that uses resources that do not create value. Mary Harris and her team are charged with implementing:
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