Introduction to Business Exam

Which of the following is the leading cause of today’s small business failures.
Management Shortcomings
Many businesses fail during the early years of becoming of
Inadequate Financing
The franchiser provides all of the following services EXCEPT
On-site management
Greg buys a McDonald franchise. Greg is the
Franchisee, does not work
Franchising offers all of the following advantages EXCEPT
guaranteed level of profitability
If you are a highly independent individual used to having your own way the best business format for you to being as a
sole proprietorship
Sole proprietorship have all of the following advantages EXCEPT
Unlimited Life
The largest US corporation in terms of sales is
ExxonMobil
Corporations have all of the following advantages EXCEPT
Favorable tax treatment
The maximum number of shareholders is limited to (blank) for a firm to qualify as a sub chapter S corporation.
100
Anita established a corporation in Nebraska, but she recently moved to Colorado where she now conducts her business. What type of corporation does Anita own?
Foreign Corporation
A person who seeks a profitable opportunity and takes the necessary risks to set up and operate a business is an
entrepreneur
The primary reasons people become entrepreneurs include all EXCEPT which one of the following reasons?
To create employment opportunities for other people
Entrepreneurs possess all of the following traits except
lack of tolerance for failure
An overall idea for how to convert a business idea into a success is called
Vision
All of the following except (blank) are important characteristics of entrepreneurs
Vision to to make money
Logan is an entrepreneur who takes personal responsibility for the success of his actions rather than believing in luck or fate. Which characteristic best describes Logan’s entrepreneurs philosophy?
Internal locus of control
Rufina designs jewelry and created a Web site to sell the item from her home in Texas. How far can she potentially expand her business?
She can accept orders from all over the world.
The most important task for an entrepreneur is to create a business plan.
True
A small business owner who sells the goods or services of the supplier is known as the franchiser.
False
A sole proprietor faces unlimited liability
True
In a partnership, each partner is liable for the business-related debts of the other partners.
True
Class action lawsuits filed against drug manufactures are filed against the corporations themselves, not the owners of these corporations.
True
Owners of corporations may owe personal income taxes on dividends, which are paid from after-tax corporate profits. This is an example of double taxation.
True
A corporation operating outside its state if incorporation is known as a domestic corporation.
False
Lupe’s job duties include such tasks as deciding whether or not to introduce a new product or foreign market. Lupe is most likely a member of (blank) management.
Top
Which level of management is responsible for developing detailed procedure in order to improve the firms strategic plan?
Middle management
As someone moves up the managerial history, which skills become relatively less important
Technical skills
Damien is working on a project where he needs to anticipate future events and conditions costly mistakes. Damien is engaged in the (blank) management
planning
Rosetta classifies and divides work into manageable units by determining the species introduce a new product. Rosetta is involved in the (blank) managerial function.
Organizing
Marcus is responsible for guiding and motivating 10 other employees to accomplish objectives. Marcus handles the (blank) managerial functions.
Directing
Ramon’s job is to establish performance standards, monitor actual performance to the standards. Ramon’s is engaging in the (blank) managerial
Controlling
(blank) planning is the most general and far-reaching type of planning
strategic
Nearly a week before Hurricane Katrina reached New Orleans, Wal-Mart began moving trucks and supplies into positions , as specified in the companies (blank) plans.
Contingency
Senior Management usually spends the majority of their time on (blank)?
Strategic
Tactical planning is primarily the responsibility of (blank)
Middle managers
What is the first step in the strategic planning process?
Create a mission statement
A written explanation of an organization’s business intentions and aims is called a(n) (blank)
mission statement
Mario is part of a strategic planning team. He has identified that his company is the low-cost producer in its industry. This should be listed on a SWOT analysis as a(n)
strength
Serguis identifies several untapped marked….what letter rep in SWOT
opportunity
All of the following require non-programmed decisions EXCEPT (blank)
important problems
(blank) is the act of directing or inspiring others to perform activities designated to achieve organization objectivity.
Leadership
Autocratic leaders __________.
make decisions on their own, often without consulting others
The manager of Public Service at St. Clair Community College allows committees of faculty members to make most of the decisions for the department. The manager believes that her main role is to provide faculty with the resources they need to do an effective job in the classroom. The manager’s leadership style can best be described as ________.
Free-rein leadership
The function of attracting, developing, and retaining enough qualified employees to perform the activities necessary to accomplish organizational objectives is part of ________.
human resource management
Antonio is paid $55,000 per year as a research analyst. This type of compensation is called
salary
Robert’s company contracted with another business to provide technical and computer simulations shows an example of
Outsourcing
According to Maslow, an individual’s first priority is given to which level of need?
physiological
Helen an individual sales representative, bought a cellular phone to use is she ever had car trouble while traveling between appointments. Which level of Maslow’s need hierarchy is Helen addressing?
Safety
The desire to accept by family members and other individuals is what Maslows called (blank) needs
social
According to Maslows, the desire to receive attention and recognition from others is an (blank) need.
esteem
Job (blank) involves redesigning work assignments to give employees more authority to plan their activities and decide how work is to be accomplished.
enrichment
David is the head chief in a restaurant, and has decided to increase the number of tasks performed by the kitchen staff. The added tasks do not result in increased challenge or authority. Davids efforts are called (blank)
enlargement
Gloria, a supervisor of data entry, uses a time clock to document the attention of her employees believes that without the monitoring system, her employees attendance records would decline rapidly. Gloria assumption about worker behavior is based on her (blank)
Theory X
Hannah, a manager for ABC Construction believes that sharing decisions making abilities with employees increases productivity. what theory is this?
Theory Z
Which stage of team development is marked by conflicts over the team’s mission and the roles of team members?
storming stage
During which stage of team development does agreement about the role of the team leader and other participants occur?
Norming stage
Ingrid’s team is engaged in problem solving and appears focused on accomplishing tasks. Ingrid’s team is likely in which stage?
performing stage
Jeremy announced to his accounting team that the company’s financial reports should be completed “by next week.” Subsequently, members of his team had completely different ideas about when the reports were due. At which stage of communication are the team members?
message decoding
Amanda sends an e-mail to her assistant requesting information for an upcoming meeting. Since her team is working on a variety of projects, Amanda is very specific about the materials she needs in order to avoid confusion. As the sender, is Amanda is ________ .
encoding the message
an organizational function and a set of processes for creating, capturing, communicating, and delivering value to customers and for managing customer relationships in ways that benefit the organization and its stakeholders.
marketing
The marketing function creates all of the following types of utility EXCEPT ________ utility
form
Maria is campaigning for city council and talks with prospective voters in her ward about their concerns. Maria is engaged in ________ marketing.
person
Local officials in a mid-size town used ________ marketing to convince major businesses to move to the area, including advertisements that emphasized low tax rates and accessible transportation.
place
The Tour of Hope is a cross-country bike tour designed to raise awareness about cancer clinical trials. Dasani bottled water is one of the sponsors, which enables the company to utilize ________ marketing.
Event
Which of the following is both a consumer product and a business product?
computer
An organizations (blank) is the group of potential customers toward whom it directs its marketing efforts.
Target market
Companies use (blank) to focus a specific consumer market by combining product, distribution, promotion, and pricing strategies.
A marketing mix
The most common form of consumer market segmentation is based on (blank)
demographics
A bundle of physical, and symbolical attributes designated to satisfy customers wants is called (blank)
A product
Items that customers purchase frequently, immediately, with little efforts are
convenience
New Carpeting for a home falls into which of the following classifications of goods?
Shopping products
Mary owns a store that prepares gourmet chocolates, which are hand made and sold on the premises. What type of product is Mary selling?
Specialty
In a process called (blank) products pass through a series of stages from their initial appearance to their decline.
Product life cycle
In which stage of the product life cycle do sales reach a saturation level, making further sales expansion difficult?
Maturity stage
When Walgreens puts its own line of cough syrup on the shelf next to Robitussin, the store is promoting its ___ brand.
private
Dole Food Company uses a(n) ________ brand to market the company’s entire line of food products, including canned fruits and packaged salads.
Family
Procter & Gamble produces several brands of toothpaste, which constitute a :
product mix
Mercedes-Benz is an example of a company that benefits from the added value of its successful name. This brand ___ can result in financial gain due to large market shares and decreased price sensitivity.
equity
Lee purchased a new PC from Dell Computers Web site. He purchased his product via a (blank)
a direct distribution channel
The two main categories of marketing intermediaries are
retailers and wholesalers
A food producer’s goods are carried by thousands of grocery stores across the country. Which of the following distribution channels is the manufacturer most likely to use?
producer to wholesaler to retailer to consumer
The activities involved with the actual movement of goods from the producer to the user are part of the ________.
Physical Distribution
what method of transportation accounts for the majority of finished goods finding their way to costumers
trucks
When a firm tries to differentiate its products, it often applies a concept known as ________.
positioning
A paid, non personal sales communication usually directed at a large number of potential buyers is
advertising
companies that provide (blank) for NASCAR teams are eager to spend millions in exchange for a direct associations with the biggest spectator sport in the United States.
sponsorship
Setting a price relatively high compared to similar goods and then gradually lowering it is a pricing strategy called (blank) pricing.
skimming
Professionals who are responsible for gathering, recording, reporting, and interpreting the financial information of an organization are (blank)
Accountants
The procedure used by accountants to convert transactions into financial statements is called (blank)
the accounting process
The rules followed by accountants when preparing financial statements are referred to as (blank)
Generally Accepted Practices (GAAP)
All of the following are assets EXCEPT
bank loans
What is the accounting equation
assets= liabilities + owners equity
All of the following are liabilities EXCEPT
accumulated profits not paid in dividends
Camden products buys a $50000 machine by taking out a bank loan. the company’s assets will (blank) by $50000 while its liabilities will (blank)
rise, rise
Which of the following financial statements shows a firm’s financial position at a particular date?
Balance Sheet
Kate is the executive director of a local food bank and is assessing the financial situation of her not-for-profit organization. Kate uses an (blank) to determine whether revenues from contributions and other sources will cover operating costs
income statement
Kwane wants to assess his firms ability to meets its short term obligations. Which of the following ratios are the most relevant?
Liquidity ratios
All of the following are profitability ratios except
inventory turnover
(blank) ratios are designed to indicate how successful a firm is in terms of its earnings as compared with its assets or owners equity.
Profitability
Who is recognized worldwide as the body with the sole responsibility and authority to issue to have pronouncements on international accounting standards.
ISAC
Which of the following is the best definition of financial risks?
Risks is the uncertainty regarding the gain or loss from an investment.
The gain or loss that results from an investment over a specified period of time is known as
return
Anything generally accepted as a means for paying food goods and services is known as
money
When a company sells its stock to the investing public for the first time, it is known as
initial public offering
Savannah has (blank) in 3M and enjoys voting rights in major company decisions, as well as reaping capital gains when the stock value increases. However she only has residual claim on company assets after the creditors are appeased
common stock
Brandon holds (blank) in American Electric Power, which enables Brandon to receive first claim on assets and preference in dividend payments. However, the payments are set at a fixed amount, no matter how profitable the company becomes.
preferred stock
Penelope placed an order to buy 1,000 shares of Boeing at the best possible price. She has placed a (Blank) order.
market
Mitsuko placed an order to buy 500 shares of Amgen. He specified the maximum price that he is willing to pay for the stock. Mitsucko has placed a _____ order.
Limit
In terms of the dollar value of stocks trade, which of the following stock markets is the largest?
New York sock stock exchange