question

_______ are people or organizations that buy products from a business? customers lenders suppliers retailers

answer

customers

question

A CEO is comparing actual quarterly results to forecasted quarterly results. What aspect of management is the CEO involved in? Executing Planning Comparing Reviewing

answer

Reviewing

question

For businesses to attract money, ____ must believe that the value they receive exceeds the value they are giving up. providers of the money employees customers all are correct

answer

Providers of the money

question

A manager who knowingly sells a defective product is _____. all are correct destroying value for the company acting unethically focusing on making short-term profits

answer

All are correct

question

Business makes a profit when _______. revenue exceeds cost it receives cash cost exceeds revenue none are correct

answer

Revenue exceeds cost

question

The _____ department or function is responsible for understanding the market (potential customers), making sure the product will meet customer needs, pricing the product, trying to show customers why the product adds superior value, and distributing the product. production or operations marketing finance (or treasury) research and development

answer

Marketing

question

Little Emily's lemonade stand has a net income of $7 and an interest expense of $14. What is her operating profit? $7 $2 $21 -$7

answer

$21

question

Cole has a cold. Although the brand-name drug is more expensive than the generic, he buys the brand-name one. Cole is familiar with the brand-name drug and knows exactly what to expect when taking the drug. Cole chooses the more expensive brand name drug because it has _______. more colorful packaging none are correct more risk less risk

answer

Less risk

question

_______ involves envisioning the future, finding opportunities, setting goals, determining the best alternative(s) to achieve these goals, and developing systems that will enable the business to execute the selected alternatives. Reviewing Planning Auditing Executing

answer

Planning

question

What is considered when estimating the value of something? The amount of benefits we receive The opportunity cost involved All are correct The timing of benefits we receive

answer

All are correct

question

A(n) ______ is an economic resource that a business owns and can use to operate a business. asset liability all are correct equity

answer

Asset

question

Forgetting taxes, revenue - _____ - ______ = Net Income Operating Expense, Interest Expense Operating Profit, Interest Expense Operating Profit, Operating Expense Interest Expense, Operating Expense

answer

Operating Expense, Interest Expense

question

Value is a function of what the owner expects to receive in the ______. present future present and future past

answer

Present and future

question

Google needs money to develop, produce, and sell the Android phone. Working with other departments in the company, the _____ needs to work with lenders and owners to acquire the money to invest in the phone. finance (or treasury) department production or operations department marketing department accounting department

answer

Finance (or treasury) department

question

_______ involves using systems to compare the desired outcomes to the actual results. Planning Executing Reviewing Auditing

answer

Reviewing

question

Employees are often called _______. real capital human capital scrubs owner's equity

answer

Human capital

question

What is the ideal purpose of any business? Maximize shareholder risk Maximize value Maximize income Maximize revenue

answer

Maximize value

question

_______ is/are product(s). Goods and services A service None are correct A good

answer

Goods and services

question

JoAnn buys a necklace from a jewelry store. She is buying a _______. When the necklace breaks, JoAnn pays to get it repaired. She is buying a _______. good, good good, service service, service service, good

answer

Good, service

question

A middle manager implementing a business plan primarily involves which aspect of management? Executing Reviewing Planning Implementing

answer

Executing

question

What do successful intermediaries do for business? Provide efficiency Lower the cost of goods and services Lessen efficiency Lower the costs of goods and services and provide efficiency

answer

Lower the costs of goods and services and provide efficiency

question

Customers get value from the _______ of products they buy when they use, consume, or enjoy them. help advertising harm utility

answer

Utility

question

The ultimate purpose of any business is to create _______. cash equity real capital value

answer

Value

question

Sylvia notices an attractive skirt while window-shopping at the mall. If she believes the value she'll receive from owning the skirt is ______ the value of the money she must pay for it, she will purchase it. greater than less than not associated with equal to

answer

Greater than

question

Proctor & Gamble (P) manufactures and sells toothpaste. They need a system to provide consistent product and projected cost. The ______ acquires and manages the facilities, equipment, materials, and people needed to make Crest toothpaste. finance (or treasury) department marketing department production or operations department accounting department

answer

Production or operations department

question

You lend your brother money at a 3% return. You believe the risk of your brother not paying your back is worth a 2% return. What is your risk-free rate? 3% 5% 2% 1%

answer

?

question

All of the following are considered to be part of a business's assets, except _______. accounts receivable cash payables inventory

answer

Payables

question

You and your friend Bob are both considering investing in your friend Ryan's band. You are willing to contribute $1,500 at a 4% required rate of return and your friend Bob is willing to contributed the same amount at a 5% rate of return. Which of the following is true? You are more risk averse than your friend Bob Your friend Bob is more risk averse than you Your friend Ryan is more likely to take the money from Bob none are correct

answer

?

question

When an owner makes great operating decisions, his/her ____ should be positive. operating profit none are correct net sales all are correct

answer

?

question

Which of the following is not part of a firm's value chain? Manufacturing Research & Development Competitors Marketing

answer

Competitors

question

A ___________ communicates the company's business model, strategy, and operating values. Most large corporations publish this for their stakeholders to see. mission statement business plan master plan operating plan

answer

Mission Statement

question

Because the business world is constantly changing, a business has to___________ to gain a sustainable advantage. stay the same emulate its competitors follow market trends innovate

answer

Innovate

question

Property, plant and equipment that is owned and used by a business is considered to be ______. fixed assets current assets inventory the foundation of the business

answer

Fixed Assets

question

The value of a business _______. is fixed at a certain market value moves up and down with the market is in line with its competitors is always positive

answer

Moves up and down with the market

question

Owners and managers that will be most successful will know how to ______. use money to acquire the best assets attract money at its lowest cost use money to hire the best employees all are correct and how to make them work together the best way possible.

answer

All are correct and how to make them work together the best way possible

question

You invest $45,000 in your friends sporting goods business and require him to pay you back $49,500 at the end on one year. What is your required rate of return? 5.0% 1.5% 9.1% 10.0%

answer

10.0%

question

You lend your best friend money at a 5% rate of return. Your risk free rate is 1%, what is your risk premium? 4% 5% 6% 1%

answer

4%

question

An important factor in sustaining a competitive advantage for a company is to keep _______. changing its business model hiring new employees innovating changing its mission statement

answer

Innovating

question

When a firm has an effective value chain, _______. its inputs are more valuable than its outputs its inputs equal the value of its outputs its stakeholders are worse off its outputs are more valuable than its inputs

answer

Its outputs are more valuable than its inputs

question

Which of the following statements is false? The value chain outlines how a business tries to create outputs more valuable than its inputs Mission statements try to differentiate a company Business systems play an important role in the value chain Two businesses can't have the same business model

answer

Two businesses can't have the same business model

question

A ______________ outlines how a business tries to compete against other businesses in the same industry and win the competition to create value. business strategy business plan business model mission statement

answer

?

question

Which of the following is a way for a business to differentiate itself from its competitors? Offer a better quality product all are correct Enter a niche market that isn't being served Focus on and improve the customer experience

answer

All are correct

question

Which aspect of the business ultimately adds the most value to a product or service? Assets Employees and managers Financing Fixed assets

answer

Employees and managers

question

Which of the following is an example of a fixed asset? Debt to suppliers Equipment owned by the business Accounts receivable Inventory

answer

Equipment owned by the business

question

Which of the following options would you prefer if you know you can invest any money you receive today at 5% per year? $220 in two years $200 today $210 in one year $240 in three years

answer

$240 in three years

question

If you are a value maximizer which of the following options would you prefer? Either $110 dollars in one year and $100 dollars now with a 10% annual rate of return $100 dollars now with a 10% annual rate of return $100 dollars in one year $110 dollars in one year

answer

?

question

Which of the following is not a way for a firm to differentiate itself positively from its competitors? Innovate Provide inferior products Enhance its business strategy Target a unmet need of customers

answer

Provide inferior products

question

You withdraw $50,000 form your savings account and borrow another $50,000 from a bank in the form of a 6% loan. You use the $100,000 to start your own pizza business. You are making _______. an investing decision an operating decision a financing decision both an investing and financing decisions

answer

Both an investing and financing decisions

question

In a free market economy, products and services are transferred through voluntary exchange. This means that the exchange is ______. beneficial to the customer but not the supplier a Zero-sum game for the customer and the supplier none are correct beneficial to both the customer and the supplier

answer

Beneficial to both the customer and the supplier

question

The longer we wait to receive money, ______________. depends on the inflation rate the more valuable it is has no impact on the value of money the less valuable it is

answer

The less valuable it is

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