Bus 101 final – Flashcards
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_____ refers to the quantity of products that producers are willing to offer for sale at different market prices.
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Supply
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Microeconomics focuses on:
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individual businesses
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The economic system of the United States is called _____.
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capitalism
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Identify a true statement about macroeconomics.
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it is the study of a country's overall dynamics
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In the context of factors of production, which of the following is an example of a natural resource?
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land
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Legislation that supports enforceable contracts usually forms part of an organization's _____ environment
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economic
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During the_____, businesses began to develop brands to help customers understand the differences among various products
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marketing era
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The two key phases of a business cycle are:
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contraction and expansion
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Huge factories replaced skilled artisan workshops during the _____.
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industrial revolution
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Identify a true statement about e-commerce.
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business to business selling companies the vast majority of total e-commerce sales
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_________ is the rate at which a new product moves from conception to commercialization.
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speed-to-market
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Which of the following occurred during the entrepreneurship era?
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industrial titans created enormous wealth and dominated their markets
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The debt ceiling is:
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the maximum amount Congress lets the government borrow
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Which of the following is a true statement about profit in a business?
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it is the financial reward that comes for starting and running a business
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The core goal of successful firms is to:
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generate long term profits by delivering unsurpassed value to their customers
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Which of the following statements is a characteristic of entrepreneurs?
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the produce a ripple effect that enriches everyone around them
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When tax revenue is higher than government expenditures, the government incurs a _____.
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budget surplus
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Computers, digital tools, and telecommunications are most likely to be part of the _____ dimension of a business environment.
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technological
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_________ refers to Federal Reserve decisions that shape the economy by influencing interest rates and the supply of money.
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monetary policy
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Identify a true statement about nonprofit organizations.
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they employ people and take in revenue
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Vieorien, a Swedish company, has allowed Loineker, an American company, the rights to produce Vieorien's products and use the Vieorien trademark. However, Vieorien does not have the authority or the rights to dictate the business operations of Loineker. In this scenario, Loineker is the _____.
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Liscensee
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_____ include differences among countries in language, attitudes, and values.
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sociocultural differences
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_______ is the benefit a country has in a given industry if it can make products at a lower opportunity cost than other countries.
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comparative advantage
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The _________ expresses the value of one nation's currency in terms of another nation's currency.
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exchange rate
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Critics of the North American Free Trade Agreement (NAFTA) believe Mexico and Canada have contributed to the United States' trade deficit because:
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imports from Mexico and Canada have grown faster than exports in these nations
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Which of the following is the most costly form of foreign direct investment?
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offshoring
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Which of the following statements is true about the markets around the world?
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India's subscriber base for cell phones has grown explosively over the past 5 years
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Companies typically engage in _____ to meet the needs of customers that don't have access to hard currency or credit.
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countertrade
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Who among the following is most likely to benefit in a case where there is a strong dollar against a euro?
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Ron, and American who is touring Europe
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Which of the following is a disadvantage of foreign outsourcing?
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The risk of poor quality control becomes higher
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Quitor Inc., which is based in the U.S., contracts with Falconnien Suppliers, a small-scale supplier in Taiwan, to manufacture its computers and tablets across the world. This strategy by Quitor Inc. is an example of _____.
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foreign outsourcing
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Identify a true statement about exporting.
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it is the most basic level of international market development
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Identify a true statement about global trade.
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it offers companies an invaluable source of new ideas
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Requiring red-tape-intensive import licenses for certain categories is an example of a(n):
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nontariff
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Pyoiunalek's, a U.S. restaurant chain, markets and endorses its business in Germany by offering buyers the rights to launch and operate the restaurant in their own country. It lends financial and marketing assistance to the buyers. Pyoiunalek's is employing the strategy of _____.
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foreign franchising
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Compared to the U.S., China and India have:
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higher GDP growth rates
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Balance of payments deficit means that:
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more money flows out than in
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Which of the following is true of a partnership?
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it is a formal, long term agreement
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In the context of barriers to international trade, which of the following is an example of energy infrastructure in a country?
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Power plants
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Jessica Marshall, the CEO of ANS Oil Drilling Inc., has decided to set aside $10, 000 from the company's annual profit to donate to local nonprofit organizations. This donation is an example of:
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corporate philanthropy
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A clothing company, Patagonia, Inc., pledges one percent of its annual revenue to environmental causes around the world. Founders of the company believe they have an obligation to contribute to the world. This is an example of _____
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social responsibility
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Which of the following statements is true of ethical decisions?
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Personal empathy in ethical choices is an important predictor of ethical leadership.
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U..S. corporations are forbidden to offer bribes since 1977 under the _____.
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Foreign Corrupt Practices Act
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Which of the following is true in the context of the steps that need to be taken by top managers in executing the integrated approach to the implementation of a code of ethics in an organization?
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They should ensure that the company's ethics code is both local and global in scope.
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Socially responsible employers:
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Ensure that hard work, commitment, and talent pay off.
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Iris has been told by her boss that the company is planning to lay off some people and that only one employee in her department will be retained. In order to keep her job, Iris has to sabotage the professional image and good work of her colleagues or she will be laid off. This situation is an example of _____.
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an ethical dilemma
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Which of the following is the purpose of a written code of ethics?
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To provide guidance to help employees make sound ethical decisions across a range of situations
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The most socially responsible companies establish _____ for their vendors, setting clear policies for human rights, wages, safety, and environmental impact.
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codes of conduct
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Consumerism is a widely accepted social movement. Proponents of this movement believe that _____ is a right of all consumers.
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the right to be informed
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Ethics refers to:
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sets of beliefs about right and wrong
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David is the chief executive officer of Grand Rocks mining company. He has convinced the company's board of directors to implement a change in the mining procedures which will reduce the company's impact on the environment in which it operates. This will ensure that the abilities of future generations to meet their needs will not be harmed. By agreeing to David's suggestion, Grand Rocks has embraced the idea of _____.
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Sustainable development
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includes all business donations to nonprofit groups, including both money and products.
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corporate philanthropy
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Every year, the members of the managing committee at Willem Inc. systematically evaluate how well the firm meets its ethics and corporate responsibility objectives. This process is referred to as a(n) _____.
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social audit
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SeeStreet is a company that produces gourmet coffee. Its employees, coffee bean growers who supply raw materials to the company, people who drink the coffee, and the people who live in the community where the company produces the coffee are called SeeStreet's _____.
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stakeholders
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The nonprofit, nonpartisan Character Counts organization has worked with educators, community leaders, and experts to establish a set of:
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core ethical values that transcend political, ethnic, class, and religious differences.
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Which of the following is the goal of sustainable development?
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To meet the needs of the current generation without harming the ability of future generations to meet their needs
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The spectrum of socially responsible behavior of firms may vary from
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No contributions to proactive contribution
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Entrepreneurs find new solutions to old problems and develop new products that people didn't even realize they needed. These entrepreneurs are said to have _____.
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vision
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A _________ is a formal document that describes a business concept and outlines the core business objectives while detailing the strategies and timelines for achieving those objectives.
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business plan
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Which of the following firms supported by the Small Business Administration (SBA) provides free, comprehensive counseling for small businesses from qualified volunteers?
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The service corps of retired executives
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The primary reason many people become entrepreneurs is to:
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make more money
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In the context of the U.S. economy, small businesses:
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are often the first to contract when times are tough.
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Jacob is in urgent need of financing for his rapidly-growing online travel business, Travelmuch. Since Jacob does not usually pay off his loans on time, his credit score is very low. He feels overwhelmed and thinks that it would be ideal if he gets some guidance on how to run the business. Given his situation, which of the following key sources of funding would be ideal for Jacob?
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a venture capital firm
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Which of the following is a powerful contribution made by small businesses to the U.S. economy?
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vitalizing inner cities
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Which of the following pieces of information is found in the Small Business Administration (SBA) resources?
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industry specific statistics
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People with an external locus of control:
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Feel buffeted by forces such as random luck.
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Overhead costs for small businesses:
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are often lower than they are for big companies, giving small businesses a competitive opportunity.
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Which of the following is a drawback of buying a franchise?
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If the national brand suffers, so does the franchisee.
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Which of the following statements is true of necessity entrepreneurship in high-income countries?
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The rate of necessity entrepreneurship is low.
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While raising start-up funds from friends and family, it is:
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Essential to keep the relationship as professional as possible.
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Which of the following is an intimidating difficulty that small businesses face?
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High health insurance costs
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When a large company downsizes, some of the middle-aged and older workers who are laid off find it difficult to get another job. When such workers decide to start their own businesses, they are known as _____.
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Necessity entrepreneurs
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Ethan is in the process of launching his new business venture that specializes in electronic waste recycling. During this period, he is in constant touch with Lloyd, who has seen success in this niche market. Which of the following entrepreneurial development strategies is Ethan utilizing?
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learning from others
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Which of the following statements is true of the impact of federal regulations on entrepreneurship?
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Extensive regulations can impede entrepreneurship.
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Local offices affiliated with the Small Business Administration (SBA) that provide comprehensive management assistance to current and prospective small business owners are known as _________.
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Small Business Development Centers
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Which of the following bodies assists entrepreneurs by guaranteeing loans from local commercial lenders?
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The Small Business Administration
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Which of the following is a similarity between venture capital firms and angel investors?
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Both invest in start-up companies with high growth potential in exchange for a share of ownership.
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Which of the following bodies makes U.S. accounting practices more consistent with those in other nations along with the Financial Accounting Standards Board (FASB)?
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The International Accounting Standards Board (IASB)
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Annual reports include _____ that disclose additional information about a firm's operations and special circumstances that clarify and supplement the numbers reported on the financial statements.
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notes
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The balance sheet of Ranger Inc. shows its liabilities and owners' equity as $150,000 and $75,000, respectively. In this case, Ranger's _____.
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total assets are $225,000
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Through the generally accepted accounting principles (GAAP), the Financial Accounting Standards Board (FASB) aims to ensure that financial statements are _____.
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relevant, reliable, consistent, and comparable
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The _____ reports the financial position of a firm by identifying and reporting the value of the firm's assets, liabilities, and owners' equity
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balance sheet
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Benjamin works for a private firm that has been contracted to examine the books of accounts of the Luigi Corporation. After checking the figures and examining the company's accounting methods, he is required to prepare a report on his findings. The work that Benjamin is tasked with is the characteristic of a(n) _____.
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External auditor
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A(n) _____ opinion is issued if an external auditor does not find any problems with the way a firm prepares and presents its financial statements.
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unqualified
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Kyra Inc. has applied for a business loan in the United Bank. In order to best assess the loan case, the loan officer at the bank, Sirigu, decides to look at the company's net income figure. Sirigu will find this information in Kyra's _____.
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profit and loss statement
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Established by the Sarbanes-Oxley Act of 2002, it is the responsibility of the _____ to protect the interests of investors and further the public interest in the preparation of informative, fair, and independent audit reports.
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Public Company Accounting Oversight Board
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In order to preserve independence and impartiality, Financial Accounting Standards Board (FASB) members are required to:
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sever all ties with any firms or institutions they served prior to joining the board
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Managerial accounting:
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provides reports and analysis to managers to help them make informed business decisions
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Assets refer exclusively to:
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the resources owned by a firm.
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The heavy reliance on accounting information by business stakeholders has led to it sometimes being called the:
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language of business
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Which of the following statements is true of the Financial Accounting Standards Board (FASB)?
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Its members can be reappointed to serve one additional term
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Sebastian is an employee of Power Trans Inc. His duties include preparing reports and analyzing company accounting data. He also appraises financial performances, verifies the accuracy and validity of the company's internal records and accounting procedures. Sebastian's role is that of a _____.
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Management accountant
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Which of the following is a key external user of a company's accounting information?
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competitors
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Which of the following refers to the claims that stockholders have against their firm's assets?
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owners' equity
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The capital expenditure budget:
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identifies a firm's planned investments in major fixed assets and long-term projects.
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_____ is a branch of accounting that addresses the needs of external stakeholders, including stockholders, creditors, and government regulators.
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financial accounting
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Matt is asked by Clint Publishers to carry out an external audit of its books. He is also asked to prepare the tax returns for another client, Mrs. Zhirkov. Matt is a _____.
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public accountant
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The main disadvantage of financial leverage is that it:
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reduces the financial return to stockholders when times are bad
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Which of the following is a characteristic of debt financing?
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Tax-deductible interest payments
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A marketable security is a cash equivalent unlike _____.
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Trade credit
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The price at which shares of an open-end mutual fund are issued and redeemed is based on the fund's _____.
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net asset value per share
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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.
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budgeted balance sheet
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A(n) _____ is the first time a company issues stock that may be bought by the general public.
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initial public offering
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Dividends to common stockholders of a company are:
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a distribution of earnings that are paid only if declared by the company's board of directors
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A(n) _____ is a financial intermediary that specializes in helping firms raise financial capital by issuing securities in primary markets
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investment bank
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A(n) _____ is an example of a depository institution
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commercial bank
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In order to access stock information for a particular corporation on a financial website, an individual normally types in the corporation's _____.
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stock symbol
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insurance company
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They act as agents for investors who want to buy or sell financial securities
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Which of the following statements best describes a money market mutual fund?
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It pools funds from many investors and uses these funds to purchase very safe, highly liquid securities.
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_____ ratios measure the ability of an organization to convert assets into the cash it needs to pay off liabilities that come due in the next year.
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liquidy
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The stocks of firms that do not meet the listing requirements of stock exchanges are traded on the _____.
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over-the-counter market
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Financial capital refers to the:
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funds a firm uses to acquire its assets and finance its operations.
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Which of the following was a major outcome of the Banking Act of 1933?
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It banned commercial banks from competing with non-depository institutions
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The _____ of 2010 expanded the Fed's regulatory authority over nondepository financial institutions, such as hedge funds and mortgage brokers that had previously operated with little regulatory oversight or accountability
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Dodd-Frank Act
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Which of the following statements is true of angel investors?
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They typically provide funds to start-ups in exchange for a share of ownership.
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Andrew's parents want him to get a good education and, therefore, send him to the best school in the town. In this case, Andrew's education is the _____ his parents were looking for when they got him admitted in the school.
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core benefit
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_____ means establishing only one retail outlet in a given area.
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exclusive distribution
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A management consulting firm offers a management training program that instructs students on utilizing various tools for effective time management and aims to improve their risk management skills. Which form of product is the firm offering?
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pure services
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Hansel owns and runs a fruit juice manufacturing company. He decides that the company will sell packaged fruit juices through wholesalers and retailers. In this scenario, which of the following distribution strategies is Hansel planning to use?
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channel intermediaries
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_____ are the inexpensive goods and services that consumers buy frequently with limited consideration and analysis
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convenience products
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Neon Bolt is an energy drink manufacturer. The marketing strategies of Neon Bolt are focused on males in the age group of 16-25 years who enjoy sports and other outdoor activities. The company advertises its product at skateboard parks, basketball venues, and ski resorts. The customer group that Neon Bolt focuses on is called its _____.
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target market
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1. A specialty store:
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sells a wide selection of merchandise within a narrow category.
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The physical good or delivered service that provides a core benefit is called the _____ product.
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actual
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Which of the following business product categories refers to large capital purchases designed for a long productive life and the marketing of which emphasizes personal selling and customization?
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installations
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Which of the following marketing strategies can be best employed for attracting tourists?
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place marketing
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Which of the following is the scope of relationship of marketers who actively gather data and pursue a connection with customers who initiate contact?
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limited relationship
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The characteristics of a product that a marketer offers are known as _____.
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product features
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Which of the following statements is true of the distribution strategy?
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It is a plan for delivering the right product to the right person at the right place at the right time.
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_____ is the ongoing process of acquiring, maintaining, and growing profitable customer associations by delivering unmatched value.
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Customer relationship management
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Which of the following statements is true of the members of a distribution channel?
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The businesses that buy from wholesalers can be retailers, other wholesalers, or business users.
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The overall value of a brand to an organization—the extra money that consumers will spend to buy that brand—is called _____.
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brand equity
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Marketing of raw materials, one of the business product categories, primarily emphasizes:
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price and service
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The _____ is a philosophy that makes customer satisfaction the central focus of an entire organization.
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marketing concept
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During his tenure as the manager of a large toy store, Barry developed strong technical skills. He will soon be promoted to the position of regional manager for several branches of the toy store. Barry's boss informs him that in this new role, he will need to communicate, coach, and motivate other managers. In this case, which of the following management skills is his boss describing?
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Human skills
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According to a report in Fast Company, a major reason why many human resource managers struggle to add value to their firm is that they...
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lack business acumen in addition to strategic skills.
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Jessica, the chief human resources officer at GA Trading Company, is facing a problem at work. One third of the employees of the company, who belong to the Baby Boomer generation, will be retiring next year. In response to this problem, she introduces benefits like flextime and telecommuting. In this scenario, she is trying to retain _____.
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older coworkers
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In the context of human resource management challenges, which of the following statements is true of older workers?
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Many companies have started flexible schedules, training opportunities, and creative pay schedules to retain their best older employees
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A company that values its employees:
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strives to recognize the untapped potential of its employees.
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Nursing jobs usually have a high level of _____ due to the fact that the work performed by nurses has a large and direct impact on the welfare of others.
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task significance
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Juan, the CEO of a technological firm, believes that the firm's employees are intelligent, creative, and hardworking. He is convinced that they are passionate about their work, and they can be further motivated through rewards. In this scenario, Juan's views about his workers is consistent with _____ assumptions.
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Theory Y
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In the management hierarchy, _____ includes managers who set the overall direction of a firm, articulating a vision, establishing priorities, and allocating time, money, and other resources.
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top management
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Which of the following must be done by human resource managers to nurture their human investment so that it yields the highest possible return?
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Promoting career development
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At Blyrie Technologies, a leading spare parts manufacturing firm, a few workers were injured on the job. Following this, its management decided to implement certain changes in the workplace. It provided the workers with enough protective gears, health insurance plans, and life insurance. According to Maslow's hierarchy of needs theory, Blyrie Technologies is motivating its employees by meeting their _____.
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Safety needs
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Which of the following is an example of an internal recruitment method?
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promotions
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In the context of strategic planning, which of the following is true of mission statements?
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They provide a clear, long-term focus for an organization.
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_____ refers to planning for unexpected events, usually involving a range of scenarios and assumptions that differ from the assumptions behind the core plans.
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contingency planning
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_____ refer to expertise in a specific functional area or department.
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salaries
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Which of the following statements is true of expectancy theory?
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Employees will not be motivated if their efforts do not lead to reward.
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Which of the following is most likely to be true if a company adopts external recruitment methods?
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The external recruitment methods will tap into a range of different resources.
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_____ refer to expertise in a specific functional area or department.
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technical skills
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_____ refers to specific, shorter-term planning that applies strategic plans to specific functional areas.
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tactical planning
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Operations managers at UCON Industries Inc. agree that the company is trying to handle too many supply chain functions on its own, resulting in an inefficient use of resources. This suggests that the company may soon adopt the strategy of:
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outsourcing process
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Which of the following statements is true of robots?
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Robots perform jobs that human workers find dangerous or physically demanding.
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The _____ is a project management tool that illustrates the relationships among all the activities involved in completing a project and identifies the sequence of activities likely to take the longest to complete.
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critical path method
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In operations management, quality is defined in terms of:
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How well a product satisfies customer preferences.
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Which of the following is a characteristic of Six Sigma?
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It aims to reduce defects to no more than 3.4 per million opportunities.
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_____ is an approach to production that emphasizes the elimination of waste in all aspects of production processes
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lean production
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_____ software enables users to test, analyze, and optimize their designs through computer simulations.
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Computer- aided engineering (CAE)
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Which of the following statements is true of a product layout?
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It organizes machinery, equipment, and other resources according to the specific sequence of operations that must be performed.
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Which of the following statements is true of computer-integrated manufacturing (CIM) software?
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It allows firms to produce custom-designed products for consumers quickly and at a low cost.
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Which of the following is a difference between goods and services?
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Goods are produced independently of the consumer, while services often require customers to be actively involved in their production.
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Which of the following statements is true of enterprise resource planning (ERP)?
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ERP makes it easier for organizations throughout a supply chain to coordinate their activities.
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Paul, an employee at a well-established bank, offers free financial advice to account holders. Paul is offering a _____.
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service
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In operations management, using resources to create value by providing customers with goods and services that offer a better relationship between price and perceived benefits is known as _____.
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effectiveness
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Steaks & Grillz, a restaurant, uses pleasant music and lighting along with impressive decor to attract customers. In this scenario, the restaurant is attempting to enhance its _____.
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ambience
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David works in a small manufacturing firm that makes customized and ergonomically sound office furniture. He feels it is important to work directly with customers to design high-quality furniture that precisely meets their needs. From the given information, we can conclude that David tends to focus on _____
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effectiveness
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_____ 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.
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Computer- aided manufacturing
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When designing a retail facility, operations managers should be mindful of the _____, which is an environment where consumers and service providers interact.
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servicescape
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A(n) _____ is a set of related activities that transform inputs into outputs, thus adding value
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process
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A(n) _____ is a decision support system that helps managers make better decisions in an area where they lack sufficient knowledge
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expert system
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The benefit that cloud computing provides to individual users is that:
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it allows them to store large files without taking up valuable space on their computers' hard drives
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A(n) _____ is similar to a virus, except that it is an independent program that can be spread across computer networks without being attached to other files.
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Worm
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Firms create _____ by offering limited access to certain areas of their intranets to select groups of people
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extranets
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_____ refers to unsolicited commercial emails, usually sent to a large number of people with little regard for the users' interest in the product or its promotion.
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spam
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When a person buys stocks through an online broker such as Charles Schwab, he or she participates in _____ e-commerce
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business-to-consumer
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_____ are best described as specialized Internet sites, which provide a platform to interact for businesses, specifically those involved in business-to-business (B2B) transactions.
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E-marketplaces
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Documents stored on the World Wide Web are written and linked together using _____.
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Hypertext markup Language (HTML)
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_____ refers to marketing, buying, selling, and servicing of products over a network, usually the Internet
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E-commerce
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_____ is best described as an Internet advertising strategy that attempts to get customers to communicate a firm's message to friends, family, and colleagues
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Viral marketing
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____ is software that installs itself on a computer without permission and then tracks its behavior in some way.
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Spyware
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Which of the following statements is true of business-to-business (B2B) e-commerce?
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It involves business selling supplies, components, machinery, equipment, or services to other businesses
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Habib is a writer. He regularly uses Microsoft Word for his work so he can write, edit, and prepare his manuscripts for publication. In this scenario, which of the following computer products is Habib using?
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Applications Software
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The two broad categories of software are:
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system software and application software
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A(n) _____ gives managers access to large amounts of data and the processing power to convert the data into high-quality information quickly and efficiently.
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decision support system
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_____ is a technology that stores information on a microchip—such as a unique serial number—and transmits it to a reader when it is within range
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Radio frequency identification
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_____ is often referred to as the world's largest computer network.
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The internet
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Data become _____ when they are processed, organized, and presented in a way that makes them useful to a decision maker in a company
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information
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_____ refers to the physical components used to collect, input, store, and process data, and to display and distribute information
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Hardware
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_____ are files of related facts and figures organized according to a logical system and stored on hard drives or some other computer-accessible storage media.
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Databases
