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earn a profit.

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The goal of business is to

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managers.

answer

The functions of organizing, staffing, planning, and controlling are most closely associated with

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finance.

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The function concerned with obtaining and managing money and using it effectively is called

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Marketing

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Which of the following functions involves activities designed to provide goods and services that fulfill needs and desires of consumers?

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1) What goods and services, and how much of each, will satisfy consumers' needs? 2) How will goods and services be produced, who will produce them, and with what resources will they be produced? 3) How are the goods and services to be distributed to consumers?

answer

Which questions are addressed by all economic systems?

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the Free-Enterprise System.

answer

Private property, profits, independent business decisions, and choice are rights associated with

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it forces producers to offer the best products at the most reasonable price; those who fail to do so are not able to stay in business. Thus, competition should improve the quality of the goods and services available or reduce prices.

answer

Competition fosters efficiency because

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take risks

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The entrepreneur has been primarily associated with a willingness to

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tell you what you ought to do.

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Studying business ethics will not necessarily

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conflicts of interest.

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If a corporate manager makes a decision that results in personal financial benefit while the company's owners lose financially, this is an ethical issue related to

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code of ethics

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A set of formalized rules and standards that describe what a company expects of its employees is called a

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(a negative trade balance)—failure of businesses, loss of jobs, and a lowered standard of living. Happens when import more than export.

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The primary problem with a trade deficit is

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information technology

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relates to processes and applications that create new methods to solve problems, perform tasks, and manage communication.

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productivity

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The amount of output per hour of work is known as

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Management information system (MIS)

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used for transmitting and organizing data into information that can be used for decision making.

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an identifying string of text.

answer

What is a "cookie" in relation to the Internet

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sole proprietorship

answer

One of the most popular and easiest to establish forms of business in the United States is the

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Ease and cost of formation, secrecy, distribution and use of profits, flexibility and control of the business, freedom from government regulation, taxation (taxed at individual tax rates), and closing the business is easy.

answer

What are the advantages of a sole proprietorship?

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less than $75,000.

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The income earned by sole proprietorships is

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Partnerships

answer

Which form of business organization is the least used in the U.S.?

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Common stockholders

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Which stockholders usually have the right to vote and control the board of directors?

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limited liability

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An important advantage of a corporation is its

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500 people

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Your textbook uses the term small business to refer to an owner-managed business that employs not more than how many people?

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have independence

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One advantage that small businesses have over large businesses is that they

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High stress level, high failure rate (due to undercapitalization, managerial inexperience or incompetence, or inability to cope with growth).

answer

What are some of the disadvantages of small-business ownership?

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business plan.

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A precise statement of the rationale for a business and a step-by-step explanation of how it will achieve its goals is a

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a small business can be set up relatively quickly—franchises already have the advantage of a network of customers, suppliers, and distributors.

answer

One of the attractive features of franchising is that

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Travel, financial planning, and health care

answer

Which industries will likely continue to grow as baby boomers age?

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a process designed to achieve an organization's objectives by using its resources effectively and efficiently in a changing environment.

answer

Define Management:

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Production and operations management

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If a manager is organizing equipment within a factory setting, he is mainly involved in which resources?

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Financial management

answer

If a manager is analyzing several methods for obtaining the money needed to expand operations, she is involved with which resources?

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pyramid

answer

The levels of management form a __________.

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planning

answer

Top management is most involved in __________.

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Middle managers

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The specific operations of the organization, plant, division, or department would most typically involve which managers?

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First-line management

answer

Motivating assembly workers to achieve their goals each day would be the responsibility of which management level?

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Leadership, technical expertise, conceptual skills, analytical skills, and human relations skills.

answer

According to the text, all of the following are skills needed by managers:

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(1) recognizing and defining the decision situation; (2) developing options to resolve the situation; (3) analyzing the options; (4) selecting the best option; (5) implementing the decision; (6) monitoring the consequences of the decision.

answer

What are the steps of the decision-making process?

question

efficiency, or that people can perform more efficiently if they master just one task rather than all tasks.

answer

The rationale for job specialization is

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Adam Smith

answer

The benefits of division of labor were described in The Wealth of Nations by

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functional departmentalization.

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A company that has departments for marketing, finance, personnel, and production is organized by

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product departmentalization.

answer

General Motors is organized into these groups: GMC Trucks, Chevrolet, Pontiac, Oldsmobile, Buick, and Cadillac. Its type of departmentalization is

question

geographical departmentalization.

answer

A company that has a northeastern division is probably organized by

question

turn it to their advantage; using it as a "sounding device" for possible new policies, or obtaining valuable information to help with decision making.

answer

When managers recognize that a grapevine exists, they should

question

operations management

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The development and administration of the activities involved in transforming resources into goods and services is called

question

uniform

answer

For most organizations, the ultimate objective is for produced outputs to be

question

marketing research

answer

To facilitate operations planning, most firms use ______________ to determine the kinds of goods and services to provide and the features they must possess.

question

making identical, interchangeable components or even complete products

answer

The term standardization means

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just-in-time inventory management

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Minimizing inventory by providing an almost continuous flow of items from suppliers to the production facility is referred to as

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inspection procedures are expensive, use elaborate testing equipment, destroy products, and/or require a significant number of hours to complete.

answer

It is desirable to test only a sample of the product when

question

motivation

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An inner drive that directs behavior toward objectives is called

question

time and motion studies conducted at the turn of the century by Frederick W. Taylor and Frank and Lillian Gilbreth. (Classical Theory of Motivation)

answer

The birth of the study of human relations can be traced to

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Elton Mayo

answer

The person primarily associated with the Hawthorne Studies was

question

Abraham Maslow

answer

Who ranked people's five basic needs in order of importance?

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McGregor related Maslow's ideas about personal needs to management. He contrasted 2 views of management: the tradition view (Theory X) and the humanistic view (Theory Y). According to McGregor, managers who adopt Theory X assume that workers dislike work & must be forced to do their jobs; and Theory Y managers assume that workers like to work & that under proper conditions employees will seek out responsibility in an attempt to satisfy their social, esteem, and self-actualization needs.

answer

Herzberg's two-factor theory proposes what?

question

Maslow's Hierarchy of Needs

answer

Theories X and Y are most closely associated with

question

Theory Y

answer

Lisa called her work group together and presented a problem to them: They needed to accomplish some extra work in less time than usual. Her employees suggested a plan for handling the situation, and she accepted it. According to McGregor's Theory, Lisa could be described as what type of manager?

question

Equity theory

answer

Jane learned that, although she and June were both hired as part-time salesclerks at the same time and have similar backgrounds, June is paid $1 more per hour. Jane decided to stop cleaning dressing rooms on her shift because she thinks this is unfair. This is an example of which theory?

question

Expectancy theory

answer

Jim has learned that his company is offering a Hawaiian vacation to its best salesman. He almost won last year and really wants the trip. He is working very hard because he thinks he has a good chance to win. This exemplifies which theory?

question

Allowing employees to move from one job to another—allowing workers to undertake a greater variety of tasks and giving them the opportunity to learn new skills.

answer

Job rotation attempts to reduce the boredom created by specialization of tasks by doing what?

question

flextime

answer

A work system that allows employees to choose their starting and ending times as long as they are at work during a specified core period is called

question

a four-day (or shorter) period in which an employee works 40 hours.

answer

A compressed workweek is defined as:

question

Job sharing

answer

Two people sharing one position is called what?

question

Job analysis

answer

Determining, through observation and study, the specific tasks that comprise a job and the knowledge, skills, and abilities necessary to perform it is called what?

question

job description

answer

The document that contains an overview of a job's title, tasks, relationships with other jobs, physical and mental skills required, duties and responsibilities is referred to as a

question

that they fire employees fairly—warn employees when their performance is unacceptable and may lead to dismissal, document all problems and warnings in employees' work records, and provide clear, business-related reasons for any firing, supported by written documentation if possible. Employee disciplinary procedures should be explained carefully to all employees and should be set forth in employee handbooks.

answer

To avoid legal problems, before firing an employee, companies should ensure

question

a bonus

answer

If a government agency paid its workers additional compensation at the end of the year as a thank-you for good work, this would most likely be called what?

question

to deal with employers and to achieve better pay, hours, and working conditions.

answer

The major reason for forming a labor union is

question

allowing individuals and organizations to obtain what they need and want.

answer

Marketing creates value by

question

the idea that an organization should try to satisfy customers' needs through coordinated activities that also allow it to achieve its own goals.

answer

The marketing concept states

question

to select a target market.

answer

The first major step of a marketing strategy is

question

the four marketing activities—product, price, distribution, and promotion—that the firm can control to achieve specific goals within a dynamic marketing environment.

answer

The marketing mix is a combination of

question

Secondary data

answer

Which type of data is probably least expensive to collect?

question

Competitive and economic forces

answer

Purchasing power, recession, and inflation are associated with which forces?

question

test marketing

answer

If a nationwide sandwich shop company introduces a new sandwich in the Midwest to try out its marketing strategy before offering the product across the country, it is using

question

convenience products

answer

A gallon of milk is an example of what kind of product?

question

Introductory stage

answer

If a product is experiencing negative profits and the company is spending a great deal of money on advertising to make consumers aware of the product, the product is most likely in which life cycle stage?

question

Growth stage

answer

A product's profits grow, peak and start to decline during which of the life cycle stages?

question

price

answer

Which is the most flexible variable in the marketing mix?

question

price skimming

answer

The pricing policy that allows a company to cover the product's development cost most quickly is

question

Penetration price

answer

When a company sets a low price for a new product to discourage competition from entering the market, it is using which strategy?

question

Distribution (place)

answer

Which of the marketing mix elements is the least flexible?

question

push strategy

answer

When Bic asked supermarkets to give its new disposable shavers shelf space, it was using what type of strategy?

question

Pull strategy

answer

When Chiquita uses newspaper ads to introduce its new fruit drink to consumers before introducing it to supermarkets, it uses which strategy?

question

certified public accountant

answer

CPA stands for

question

(1) to aid in internal planning and control; and (2) for external purposes such as reporting to the Internal Revenue Service, stockholders, creditors, customers, employees, and other interested parties.

answer

Managers use accounting information to do what?

question

Liabilities

answer

The debts Anna's Flowers owes to the Small Business Administration and her company's suppliers are considered what?

question

transfers the information from her journal into a ledger (post transactions/posting).

answer

After gathering together and analyzing source documents and recording each financial transaction in a journal, a financial manager, bookkeeper, or accountant next

question

An organization's profitability over a period of time (i.e., month, quarter, or year)

answer

An income statement shows what?

question

Assets = Liabilities + Equity

answer

The information presented in an income statement could be described using which equation?

question

Balance sheet

answer

The financial document that has been likened to a snapshot of how the company's finances are doing at that moment is called what?

question

current assets

answer

A company's assets that can be easily converted into cash are called

question

the statement of cash flow.

answer

The financial statement that explains how a firm's cash changed from the beginning of the accounting period to the end is called

question

Store of value (buying power)

answer

When used to accumulate wealth, money functions as what?

question

Difficulty to counterfeit

answer

When a country uses either highly colored money or specially watermarked paper, it is probably to give the money which characteristic?

question

higher

answer

In general, the longer the term of a certificate of deposit, the _________the interest rate.

question

means of access to preapproved lines of credit granted by a bank or finance company.

answer

Credit cards are defined as:

question

It decreases it

answer

When the Fed increases the reserve requirement, it does what to the money supply?

question

To help stop bank failures throughout the country during the Great Depression (it insures individual bank accounts).

answer

The Federal Depository Insurance Corporation was created for what reason?

question

they are typically the lender of last resort for individuals and businesses whose credit limits have been exhausted and/or those with poor credit ratings (higher risk involved).

answer

Finance companies are able (legally) to charge higher interest rates than banks because

question

ATMs or EFTs

answer

What reduces the cost of handling bank transactions and is now found in banks, airports, and other public places?

question

current assets

answer

Cash, investments, accounts receivable, and inventory are also known as

question

Treasury bills (T-bills)

answer

Because having idle cash on hand is undesirable, a manager may choose to invest in

question

collateral (secured loans)

answer

Dan bought three new trucks with money borrowed from the First National Bank. If he fails to repay the loan, the bank will repossess the trucks. The trucks are considered

question

line of credit

answer

Sherry arranged for her business to borrow up to $10,000 whenever it was needed by writing a check on its account with the First National Bank. This is a _______________

question

capital budget

answer

The amount of money budgeted for the purchase of long-term assets is called the

question

bond contract, or indenture.

answer

A bond is regulated by terms set in its

question

junk bonds

answer

The last in line for the payment of profits are the

question

Preferred stockholders

answer

Stockholders who may receive dividends but cannot vote are called what?

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